Case Studies

 

    CASE STUDY: BJC HEALTHCARE

    “During our lean deployment, I found Destra to be not only technically competent, but more importantly for our purpose of ‘learning to fish’, very effective as teachers and mentors.  Their approach to the deployment taught us what we needed to know and how to implement and own what we learned.”

    - Colleen Sutherland, Group Manager - Learning and Development, Center for Clinical Excellence

    BUSINESS NEED
    Context
    BJC HealthCare system has 13 independent hospitals and community health centers in St. Louis, MO. BJC selected Destra to assist with the re-deployment of a Lean Six Sigma initiative (Operational Excellence, OpEx) since an earlier effort had lost momentum.

    Business Need
    Impending changes in Medicare reimbursement would have a dramatic impact on BJC’s operating budget.  BJC wanted to ensure that all their medical centers were operating “lean” to minimize any financial consequences of these changes

    DESTRA APPROACH
    Alignment:  We began with an executive alignment session to confirm the need for a renewed OpEx effort and garner full CEO support. We agreed on the need to integrate Destra’s Accelerating Change and Transitions methodology into the OpEx deployment and training. We also created an internal Deployment Team, which focused on project selection, Champion support, and coaching.
     
    Training:  We cascaded training and in sequence delivered Executive Alignment, Champions, and Green Belt sessions for almost 600 people.  It was conducted in an action-learning format, and we used Destra’s ZapQuote™ lean simulation to give everyone a hands-on experience with lean concepts and tools.

    RESULTS AND BENEFITS
    Project Results:
    Admitting: The amount of time to admit a patient was reduced by nearly 40%.

    Bed Assignment: The development of an electronic bed board ensured that 75% of the patients admitted receive a bed assignment in 5 minutes or less. An additional 15% receive a bed assignment between 6-10 minutes.

    Discharge Process: Discharge time decreased by over 90 minutes and patient complaints decreased by over 60%.

      • Other Benefits:

        • Overall cost savings of $100,000.
        • The culture is shifting to “One BJC” where they share information, resources, and project results.

     

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    CASE STUDY: BHP BILLITON MINERALS

    “Through our Operating Excellence initiative and other cost savings opportunities we’ve achieved $780 million of efficiency gains over the last three years. By institutionalizing our methodology through the organization, we create a sustainable base from which to find efficiencies to improve the overall performance of our company.”
    - Chip Goodyear, CEO BHP Billiton

     

    BUSINESS NEED
    Context
    BHP Billiton is one of the world’s largest diversified natural resources companies with 100 operations across 25 countries. They are a leading supplier of copper, energy coal, nickel, aluminum, oil, and gas.

    Business Need
    A sense of urgency existed due to a period of financial turmoil combined with a lack of a unified culture where many of the operational functions were not meeting their business imperatives.  There was a major restructuring and sell-off of several businesses, and a target of $1B cost reduction was set.

    DESTRA APPROACH
    Culture Change:  We began by providing training to develop the senior management team’s capabilities, and alignment on the need to hold people accountable for meeting the cost reduction target.  The overall initiative was termed Operational Excellence to help ensure everyone felt part of a larger whole. We also integrated the technical (six sigma) initiative with our change management deployment practices.
     
    Training:  We offered a range of training to employees at all levels, from a two-day overview to three weeks of Black Belt Training.  Projects were selected strategically and each Black Belt (BB) had a goal of $250k cost savings.

    RESULTS AND BENEFITS
    Project Results: First Year:

      • 108 BB trained and 115 Projects begun with $65M saving
      • $424.3M auditable savings in the first four years.
      • Improved recoveries at the Ekati Diamond Mine™ saved $29.5M.
      • Optimum Mine improved throughput of energy coal for a $2.1 savings.

    Other Benefits:
    Since the beginning of Operating Excellence at BHP, hundreds of projects using teams from all parts of the business have been undertaken. Using the OpEx and Change methodologies, projects in safety, maintenance, mine operations, supply, mine planning, and processing have unified BHP’s activities and people and changed the culture into one of knowledge sharing and continuous improvement. 

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    CASE STUDY: TELSTRA

    “We have implemented a number of change programs in the last 10 years or so, but this is the one that is the most embedded. The tools have helped drive cultural change, built alignment across the organization and has delivered productivity and customer service improvements from day one..” 
      
    -- Ziggy Switkowski,  CEO Telstra

    BUSINESS NEED
    Context
    Telstra found their market share and profitability eroding. Increased competition in areas such as mobile phones was placing increasing pressure on traditional revenue streams. Telstra needed to reduce costs by $300 million while establishing a sustainable competitive advantage.
    Business Need
    The case for cost reduction was not seen as compelling by the employees. The company was not experiencing an immediate threat, nor was there a single event to rally the 38,000 employees. Current cost reduction strategies included headcount reduction and consolidation, involved less than 100 employees and encountered so much resistance that execution bogged down.

    DESTRA APPROACH
    Engagement:  Destra created a system of engaging multiple audiences in process improvement (PI) efforts. We integrated compelling reasons for growth and cost reduction into the “Seduction Strategy” that built grassroots enthusiasm and support.
    Initiative:  We created a set of implementation principles including:

      • Commitment from key stakeholders so other functions join in.
      • Sr. leaders set the expectation that this would be a primary driver of the company’s progress.
      • Publicly praised examples of success.
      • Offered an extensive suite of tools and methodologies to involve more people.
      • Integrated the PI tools with Destra’s change management methodology.
      • Rigorously measured progress and results.
     

    RESULTS AND BENEFITS
    Results came from all over Telstra:

        1. 50% reduction in spare parts Inventory, saving $3.8M in one year.
        2. 87% reduction of leads referral process time, resulting in $6.2M in additional service revenue.
        3. 13,400 fewer Customer Fault Visits per month, saving $13.6M in two years.
        4. Savings of $3.0M in the first year and $5.0M in the second - shortened time for signing up new customers.
        5. Free cash flow was up 150% despite increased capital investments.
        6. Overall savings were $300M, at an estimated cost of $62M for an ROI of 380%.

        Other Benefits:
        All in all, over 5,000 Telstra employees, (13%), received process improvement training, making PI “the way we do things.” This broad exposure from the Destra approach embedded the discipline of execution, and created a more competitive workforce.

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