culture change
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Culture Change
Sustaining a Lean Enterprise
Transformation?
Presented byIndustrial Solutions, Inc
Industrial Solutions, Inc
Quick Diagnostic
•Answer the questions on the sheet in front of you.
•Calculate your score
•10 minutes
Industrial Solutions, Inc
Why is Change So Hard ?
•We focused on the externals of lean tools
•We missed the underlying dynamic of how an organization thinks and processes information
Industrial Solutions, Inc
Bad Assumptions
•People function on a rational level
•Change is good and automatic
•Company culture is easy to changer
Culture
5-S QCO Cells Pull
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Transformation Keys•Real change occurs at the process
level when people start to think differently
•Self interest must be linked to clearly defined key performance indicators (KPI)
•Performance must be measured in continuous, rapid feedback loops
•We have to create a “culture of learning”
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SS CC
First Line Managers/Supervisors
Mission Statement
Strategic Objectives
Strategy Deployment
The Processes
Present
FutureC E O
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What Changes Need to Occur?
•Management focus
•View of labor, reward and compensation
•Organizational structure/chain of command
•Methods of evaluating decisions/results
•Data collection and analysis
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In Other Words
The “Culture” is going to be affected if you try to
implement lean manufacturing
Industrial Solutions, Inc
What Is “Culture”?
The set of shared attitudes, values, goals, and practices that
characterizes an institution or organization
Industrial Solutions, Inc
Industrial Solutions, Inc
Industrial Solutions, Inc
What is the Evidence of Your Culture at Work
•People’s view of their work
•What is important to management
•How the place looks
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How Do You Change a Culture?•Strategy and Alignment
•Vision
•Communicate and motivate
•Empower employees
•Implement
•Transition to a Learning Organization
Industrial Solutions, Inc
Strategy and Alignment
Culture change requires a strategy and top level commitment or your efforts will fail
Culture change is hard and takes time. Only a long term strategy will keep you on track.
Industrial Solutions, Inc
Commitment and Alignment
The Management Team has to be pulling together
• Are you going to really own the new model
• Are you committed to each other’s success
The people will listen to what you say….
but they will only believe your actions
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The Lean Enterprise Vision
Creating “Flow” along “Value Streams” in response to customer demand
Eliminating “Waste” in the value stream
Encompassing a comprehensive approach to the entire organization - Changing the Culture
Primary Goals
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A Value Stream Flows Counter To the Current Culture
Flow in a value stream is fundamentally different than the processes in traditional organizations that are organized along functional boundaries.
Most of the effort in traditional companies is expended in managing the interface between the boundaries.
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Now…Create a Vision
Without a vision…..
the people will perish
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A Lean Enterprise Looks Different
Defining The Vision
Workplace Order and Cleanliness
JIT Production, minimum waste
Superior Quality
Continuous Improvement
Culture
Empowered Teams aligned with strategy
Visual Management
Industrial Solutions, Inc
How Do You Change a Culture?
•Strategy and Alignment
•Vision
•Communicate and motivate
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Communicate and Motivate
People must believe there is a need for change
• Training
• Communication
• Awareness
• Metrics
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Communication Tools
•Employee meetings
•Written media
•Continuous displays
•Embedded messages
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Effective Communications
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How Do You Change a Culture?
•Strategy and Alignment
•Vision
•Communicate and motivate
•Empower employees
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Empower•The best companies give all
employees 40-60 hours of training every year
•Management needs to develop a comprehensive training plan based on the lean strategy
•Let people be fully involved in change
Industrial Solutions, Inc
How Do You Change a Culture?
•Strategy and Alignment
•Vision
•Communicate and motivate
•Empower employees
•Implement
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Implementation
•There is not one right way
•You have to adapt to your own needs
•The goal is waste elimination, not figuring out a perfect way to get there!!
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Implementation
•Key on a strategic value stream
•Train and empower the key players
•Conduct Kaizen Events to jump start activity
•Find a simple way to measure
•Sustain activity continuously
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Strategic Value Stream
•Quickest way to affect the bottom line
•Focuses your resources while maximizing benefits
•Answers many questions about difficult issues
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The Maturity Path•Standardized Work, Visual
Control
•Cellular Flow
•Synchronous Production
•Pull Systems, Supply Chain
•Administrative Systems
•Value Stream Costing
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Deploy the Strategy
•Develop a Plan for Enterprise Conversion
•Establish a baseline with a good Assessment Tool
•Implement (Deploy the Strategy)
•Review Status Periodically
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Management TimeTo really change the culture will
require full time involvement!
• Participating in training
• Participating on kaizen teams
• Removing barriers
• Walking the talk
Industrial Solutions, Inc
How Do You Change a Culture?
•Strategy and Alignment
•Vision
•Communicate and motivate
•Empower employees
•Implement
•Transition to a Learning Organization
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A Learning Organization
•Identified as the key trait for a successful company
•What does that mean?
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A Learning Organization
•Systematic problem solving
•Systematic waste elimination
•Direct observation of processes
•High agreement on goals and objectives
The distinctive traits
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Systematic Problem Solving
•Plan-Do-Check-Act
•A3, 8D, 5-Y, 12 Step, etc., etc.
•Just do it!
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Systematic Waste Elimination
•7 deadly wastes
•Why can’t we see it?
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Direct Observation
•Activities, connection and flows
•Point to point relationships
•Deep understanding of what is really happening in the organization
Industrial Solutions, Inc
High Agreement
•What we do and how we do it
•Management team must be aligned and pulling for each other
•People will detect any misalignment and will revert to existing norms
Industrial Solutions, Inc
Concluding StatementsNothing of any significance will ever happen
without the commitment and drive of top management.
The landscape is strewn with the wreckage of companies that failed to understand the necessity of culture change.
Lean Manufacturing is as much a state of mind as it is a process for excellence in manufacturing
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