Danaher: DBS Office Operational Strategy

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What are they?

We have voice of the customer, value stream mapping, standard work, TPI, - transactional process improvement - Kaizen event basics, 5S problem-solving process, and visual and daily management. These apply to all areas of growth, lean and leadership. That's why they are called fundamentals, as you build your lean system, your DBS system, on these. Some are complex, while others are more straightforward. For instance, value stream mapping involves a one or two-hour training. The problem-solving process, however, requires a two-day training for certification. Visual and daily management tools are not very complex, but the problem-solving process is the most complex. The Kaizen event is not lengthy; it describes organizing a Kaizen event, the typical agenda, and sequence planning. The rest of the training is relatively quick.

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So, if I were the CEO of Videojet and reported to the product ID platform, which was Veralto, back in the day, as the CEO of Videojet and the platform CEO, we would decide on the annual strategy for Videojet. If R&D or manufacturing was a big focus, the platform manager would present this to the executive committee, and I would be able to get support for those focus areas. How do you manage the capacity to ensure you can get the necessary support?

That's a very good question. John had the knowledge to evaluate the starting point and understood what it would generally take to bring the business to the expected level. He would calibrate himself and, as an expert, might seek some help. He was able to determine the level of support required for each company to achieve their goals. He didn't check on everyone but would say, "Okay, you work for them. It's going to take two to three Kaizens to get there." A Kaizen event is like the unit of measurement. Typically, a Kaizen event lasts four and a half days, which is a general rule. Depending on the subject, you could allocate how many events would be needed, allocate resources accordingly, identify bottlenecks, and reallocate resources as necessary.

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How effective is this operating model? How effective is the DBS Office?

I think it's very effective because it's a pull model, not a push model. The opcos ask for help. When there's an objective in an opco, they request help because it's super efficient. You don't have to reinvent solutions. You have a problem, and there's a toolbox to solve it. When you want to deliver results, you avoid reinventing things because reinventing means you don't have everything right. You miss out on the benchmarking included in the tool. Reinventing leads to falling into traps, losing time, and efficiency. This model allows you to ask for help and receive it from very skilled people, which accelerates progress. That's why, for me, the DBS Office is the secret sauce of Danaher. It's a culture that's difficult to copy, almost impossible. You have concentrated knowledge, and with 25 to 30 opcos in the portfolio, you build tools with extensive benchmarking. These tools are bulletproof and have been tested in many organizations, improving over time. There's a lot of knowledge captured in them, and there are people whose job is to help you run Kaizens efficiently. The system's watchdogs make it very efficient.

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