journey to a lean enterprise: new frontiers
DESCRIPTION
Recorded webinar: http://slidesha.re/1fqHvei Subscribe: http://www.ksmartin.com/subscribe Karen’s Books: http://ksmartin.com/books This is material from a webinar regarding the problem with tools-centric approaches to Lean transformation, and where the opportunities lie for a more successful journey. Over the past two years we've begun to learn more deeply about what REALLY makes the Toyota Production System tick. We've learned that, while tools are necessary, they are not sufficient for creating a Lean enterprise. Leadership, culture, and problem-solving proficiency are common missing links that slow organizational transformation, creating the need to build new skills.TRANSCRIPT
Company
LOGO
Journey to a Lean Enterprise:
New Frontiers
Lean Webinar Series
May 5, 2011
© 2011 Karen Martin & Associates
Welcome!
To new friends and old across the U.S. (28
states)
Special welcome to our friends at the Veterans
Health Administration.
To our global friends in:
Australia
Canada
Romania
Switzerland
Uruguay
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© 2011 Karen Martin & Associates
Consider this…
Lasting 20%
Temporary 63%
None 17%
Success with Improvement Efforts
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The Economist, 2000
© 2011 Karen Martin & Associates
A decade later…
Some 45%
Minimal to None
55%
Financial Impact of Improvement Efforts
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Accenture, January 2010
OK as is 33% Re-eval
needed 67%
View of Existing Improvement Efforts
© 2011 Karen Martin & Associates
Industry Week’s
2007 Census of Manufacturing
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0%
10%
20%
30%
40%
50%
60%
70%
80%
Adopted Lean Seeing Anticipated Results
433 Respondents
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© 2011 Karen Martin & Associates
Our initial understanding was
tools-based
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The words “leadership”
and “culture” aren’t
listed the book’s index.
Toyota’s 4P Business Model
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Problem-Solving (Continuous Improvement &
Learning)
People & Partners (Respect, Challenge, & Grow
Them)
Process (Eliminate Waste)
Philosophy (Long-Term Thinking)
Jeff Liker
The Toyota Way,
2004
Where most
“Lean”
organizations
are
© 2011 Karen Martin & Associates
What is Lean?
“The pursuit of perfection by constantly
eliminating waste through problem-solving.”
— Jeff Liker, The Toyota Way to Continuous Improvement
“Lean isn’t about eliminating waste. It’s about
developing people and building organization-
wide problem-solving capabilities to enable us
to eliminate waste.”
— Mike Rother, Toyota Kata workshop
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Toyota’s 4P Business Model
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Problem-Solving (Continuous Improvement &
Learning)
People & Partners (Respect, Challenge, & Grow
Them)
Process (Eliminate Waste)
Philosophy (Long-Term Thinking)
Jeff Liker
The Toyota Way,
2004
The New
Frontier
“We build people before automobiles.”
– Toyota Motor Corporation
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May 2004
© 2011 Karen Martin & Associates
Effort Expended on Successful
Lean Transformations
Tools 20% Changing
leadership practices, behaviors, & mindset
80%
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Creating a Lean Culture, David Mann, 2010
© 2011 Karen Martin & Associates
The Role of the Sensei
“The relationship between the sensei
and the student (deshi) in Toyota is a
key success factor, and one that is
very much underappreciated in the
lean movement.”
“We see process improvement and
people development as two sides of
the same coin in organizations.”
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— Jeff Liker & James Franz, The Toyota Way to Continuous Improvement
© 2011 Karen Martin & Associates
If you want one year of prosperity,
grow seeds.
If you want ten years of prosperity,
grow trees.
If you want one hundred years of prosperity,
grow people.
— Chinese proverb
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© 2011 Karen Martin & Associates
What is the Role of the Manager?
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To develop his/her people into proficient problem-solvers.
Manager = Coach
© 2011 Karen Martin & Associates
New Understanding about how
Toyota Operates
Leaders coach
and mentor.
The workers
identify and solve
problems daily.
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Management’s job is to develop the workforce
(and help remove roadblocks to their success).
Mentoring Relationship Coaching Relationship
? ?
Focus: Asking questions Focus: Providing information
Wisdom Wisdom
Coach Coachee Mentor
?
? ? ?
Mentee
• Measure process performance.
• Adjust process as needed.
• Set new target condition.
• Continuously improve.
• Select countermeasures.
• Conduct mini-experiments.
• Implement the best countermeasures.
• Grasp a deep understanding of the current state.
• Set a target condition.
• Identify obstacles to achieving target condition.
Plan Do
Check (Study)
Act (Adjust)
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Everyone in the organization must practice PDCA
© 2011 Karen Martin & Associates
Managing the Business =
Problem-Solving
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© 2011 Karen Martin & Associates
A New Definition of Lean?
Engagement [en-geyj-muhnt]]
– noun
1. Enthusiastically providing value to
customers.
2. Enthusiastically solving problems.
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© 2011 Karen Martin & Associates 21
Improvement Roles
for Full Engagement
Who? Level of Authority
Senior Leadership What has to happen;
policies
Frontline Workers How it will happen;
procedures
Middle
Management
Str
ate
gic
Ta
cti
cal
What Should We Focus On?
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You need an
improvement
strategy that’s
aligned with
overarching
business goals
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TRUE
NORTH
Tying Improvement to
Overarching Business Goals
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One Option:
Hoshin Kanri (aka Strategy Deployment)
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© 2011 Karen Martin & Associates
What are the root causes for
resistance to change?
No clear vision re: what or why.
Employees have limited control
over their work and limited input
regarding improvements.
Leadership is stuck in old school
western management; directive;
low respect for workers.
Both leadership and the
frontlines lack problem-solving
skills.
© 2011 Karen Martin & Associates
Building a Lean Culture
Strategy
Define and communicate clear annual business goals.
People Development
Build problem-solving capabilities across the entire
organization. Value stream management, A3 Management, Toyota Kata
Leaders and managers are coaches.
Process Design & Management
Make problems visible.
Stop work when problems are discovered.
Continuously set new target condition & engage in PDCA.
Manage processes vs. people. 27
© 2011 Karen Martin & Associates
Cultural Transformation
Results
Actions
Beliefs
Experiences
The Results Pyramid
Partners in Leadership
We’ve Reached a Fork in the Problem-Solving Road:
The Choice is Ours
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Tools-based Lean
People-based Lean
It’s time to pass the improvement
baton from the elite few to the
common many
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© 2011 Karen Martin & Associates
Vision for the Future
Yes
100%
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Achieving significant results from
continuous improvement efforts?
© 2011 Karen Martin & Associates
7770 Regents Road #635 San Diego, CA 92122
858.677.6799 [email protected]
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For Further Idea Exchange
Connect & learn
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© 2011 Karen Martin & Associates
Your Questions
Are there criteria to determine organizational
readiness to adopt a Lean transformation?
What staff & financial resources does an
organization typically need to support a Lean
enterprise (e.g. rule of thumb for FTEs to devote to
continuous improvement)?
What is your take on the psychology of
improvement and what are your sources for that,
including experience?
NEXT WEBINAR – The Coach Is In – Tues May 24 11:00-12:00 PDT
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