lean leadership: helping leaders understand their role in the improvement process

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Lean Leadership: Helping Leaders Understand Their

Role in the Improvement Process

Your Instructor

2

Provides Lean transformation

support to non-manufacturing

settings.

Co-author, The Kaizen Event

Planner: Achieving Rapid

Improvement in Office, Service, and

Technical Settings

Co-Developer, Metrics-Based

Process Mapping: An Excel Solution

Lean Enterprise Program Instructor

University of California, San Diego

Karen Martin, Principle,

Karen Martin & Associates

© 2011 Karen Martin & Associates

Learning Objectives

Participants will learn how to help your leadership

team understand their role in the improvement

process, including:

Setting improvement strategy

Roles & responsibilities of project sponsors and A3

coaches

“Letting go” of tactical decisions

Briefing attendance

Authorizing the frontline to make improvements

Modeling lean behaviors

Assumption – you’re already familiar with Lean

principles and tools 3


Genesis for this webinar

Increasing numbers of improvement

professionals expressing frustration with the

level of leadership support they receive.

Increasing numbers of leaders expressing

frustration with their improvement teams.

“Help us help you.”

Personal experience working with leaders who

want direction and education about how they

provide the best support.

4


Evidence re: Leadership Commitment

– Observe the degree of:

Intellectual curiosity re: Lean / change

(number of books read, conferences

attended)

Integration into communications

Proclivity to advance change

“Walking the talk”

5


Our Vital (and often forgotten) Role

One of the key roles of an improvement

professional is to educate and coach

leadership to help them develop into

the improvement-minded leaders you

wish them to be.

6


Range of Leadership Commitment

Resistance

Active (overt) resistance

Passive (covert) resistance

Neutral – “lame duck”

Commitment

Intellectual

Understand & conversant about Lean

Believe the organization needs it

Emotional

Will expend “discretionary effort”

7


It All Begins with Education

8


Improvement Philosophy

A minimum of 10-20% organizational effort

spent working on the business

vs. in the business

There’s never a “good time” for improvement.

9

OR ?

Components for Effective Change

Effective

Change

Confusion

Anxiety

Gradual

Change

Frustration

False Starts

Vision Skills Resources Action Plan

Skills Incentives Resources Action Plan

Vision Incentives Resources Action Plan

Vision Skills Incentives Resources

Vision Skills Incentives Action Plan

Vision Skills Incentives Resources Action Plan

© 2003, Enterprise Mgmt Ltd.


Leadership’s Learning Needs

What is Lean?

How is Lean different?

What can we expect in terms of results?

What will it take to get them?

How long will it take?

What’s my role?

Education

Setting strategy

Assuring alignment

Participating / supporting

Modeling Lean behavior

11



What is Lean?





What’s my role?

Education

Setting strategy

Assuring alignment



12


What Lean Is….

A highly effective business approach that

results in fiscal strength, customer and

employee loyalty, and organizational agility.

13


What Leaders Must Understand

Lean isn’t merely a process design technique – it’s

a business management philosophy.

14


How is it Different?

Holistic – value stream-focused

Methodical – PDCA

Visual management

“Operational transparency”

High degree of frontline involvement

Requires significant cultural transformation

Learning to see waste and take action

Learning how to problem-solve

Learning how to engage the frontlines

15

Traditional vs. Lean Thinking

Traditional Lean

Revenue-focused Margin-focused

Improvement focus: optimizing value-added

work

Improvement focus: eliminating non-value-

added work

Fire fighting is rewarded Fire prevention is rewarded

Focus on financial metrics & lagging

indicators

Focus on operational metrics & leading

indicators

Suboptimization is rewarded Value stream performance is rewarded

Specialized workers organized by function Cross-trained workers organized by value

streams

Complexity is the norm Simplicity is the norm

Inspect in quality Build in quality

Non-visual workplace / management Visual workplace / management

Dynamic schedule and priorities Static priorities and schedule

Unclear ownership & accountability Clear ownership & accountability

Excessive reviews and approvals by

leadership

Decisions are made by those closest to the

work

Improvements identified by management Improvements identified by workers



Lean is 90% culture / people-based and 10%

tools-based.

17

Tools

People / Culture

© 2011 Karen Martin & Associates 18

Improvement Roles & Tools

Who? Accountability Tool

Senior

Leadership

What has to

happen

Value Stream

Mapping

Frontline

Workers

How it will

happen

Kaizen Events

Middle

Management

Str

ate

gic

Tacti

cal



What is Lean?





What’s my role?

Education

Setting strategy

Assuring alignment



19


Performance Measures

20

Quality

Cost

Delivery Safety

Morale Optimal

Performance


Lead Time Reduction

0 25 50 75 100

Typical Benefits Realized

Productivity Increase

WIP Reduction

Quality Improvement

Space Utilization


Mis-Use of Lean

Using Lean for headcount reductions

is a recipe for failure.

22

What Lean Isn’t…

Lean doesn’t

solve all

problems.

23


Transformation Takes Time

Lean requires long-term

thinking.

The transformation process

morphs over time as the

organization matures.

24


How Long Will it Take?

Lean is a journey, not a

destination.

2-5 years of “persistent

patience” to reach the

first “tier” of measurable

results.

The larger the

organization, the longer it

takes.

10 years to see

significant changes.

25



Transforming into a Lean Enterprise is disruptive.

26


Improvement Pacing

Evolution or revolution?

27


Critical Question

How will we define success?

28



What is Lean?





What’s my role?

Education

Setting strategy

Assuring alignment



29


Educating Leaders

Executive Overviews

Simulations help

Regular meetings with Leadership

Lean Steering Committee or Advisory Board?

Ongoing “Check-ins” / Training Sessions

How are we doing?

What needs to be adjusted?

What are our learning needs?

30

Building a Lean Enterprise

Establishing an Improvement Strategy –

The Value Stream Map

32

Value Stream Mapping Process

Define

Product Family

Design Future

State

Document Current

State

Implement!

3 Day

Event

Foundation (the basis) for the

future state; 70-80% accurate is

acceptable (directionally correct)

Create flow by eliminating waste

it is now obvious from your

current state map); typically 3-6

months out

Products (good or services) with

common process steps

Rep

eat

The goal of mapping!

Create

Implementation Plan

Include accountability and

timeframes for completion

Future State Value Stream Map

Outpatient Imaging Services

Referring

Physician

% C&A = 85 %

Send

Reports

(Imaging)

Cycle Time = 3 mins.

% C&A = 90 %

6

Hospital

Schedule appt

Pre-register


Lead Time = 45 mins.

% C&A = 98 %

6

CT=Cycle Time

LT=Lead Time

%C&A=% Complete & Accurate

0.0833 hrs.

1 mins.

0.583 hrs.

10 mins.

0.333 hrs.

10 mins.

0.0833 hrs.

2 mins.

2 hrs.

15 mins.

7 hrs.

1 mins.

0.0333 hrs.

1 mins.

0.5 hrs.

3 mins.

LT = 11.3 hrs.

CT = 43 mins.

CT/LT Ratio = 6.32%

Lead Time = 45 mins.Lead Time = 15 days

Prep

Patient

(Tech)


% C&A = 100 %

2

Check-in

Patient

(Imaging)


% C&A = 98 %

3

Complete

Exam

(Tech)


% C&A = 90 %

2

Transmit

Images

(Tech)


% C&A = 100 %

2

Read/Dictate

Exam

(Radiologist)


% C&A = 95 %

2

Review

Draft/Sign

(Radiologist)


% C&A = 95 %

2

Print

Reports

(Imaging)


% C&A = 99 %

220 mins. 5 mins. 120 mins. 420 mins. 2 mins. 30 mins.35 mins.

E Pay

Excel

Symposium

Internet

Waiting Room

Management

System

Fax Order

Solutions

PACS

5 mins.

Set-upReduction

Remove Check in

and ReduceSystem Access

Work Balancing

StandardWork

Pull System(Supplies Kanban)

VisualWorkplace

Voice Recognition

Batch Reductions

5S

Co-locate

StandardWork

Work Balance

ContinuousFlow

Value StreamAlignment

Auto Fax 80%

Us Mail 15%

MD Mailbox 5%

Rolled First Pass

yield = 40%

Rework Loop via Fax 10% of the time

Customer Demand:

15 patients per Day

(Takt Time 1920 seconds)

8 hours per day

12

3

45 6 7 8 9 10 11

Risk Reduction

(Joint Commision)

Meditech

Value Stream

1 2 3 4 5 6 7 8 9 10 11 12

2 Improve quality of referral KE Sean O'Ryan

3, 4Reduce lead time beween schedulingand

preregistration stepsPROJ

Dianne

Prichard

5, 6Eliminate the need for two patient check-

insKE

Michael

O'Shea

6 Eliminate bottleneck in waiting area KEDianne

Prichard

9Eliminate lead time associated with

transcription stepPROJ Sam Parks

10 Eliminate batched reading KE Sam Parks

7Reduce inventory costs, regulatory risk

and storage needsKE

Michael

O'Shea

12 Reduce delay in report delivery PROJ Martha Allen

12 Reduce delay in report delivery KE Martha Allen

Implement voice recognition technology

Reduce setup required

Cross-train and colocate work teams

Implement additional fax ports

Collect copays in Imaging

Balance work / level demand

5S CT supplies area; implement kanban

Value Stream Mapping Facilitator

Increase percentage of physicians

receiving electronic delivery (rather than

hard copy)

Approvals

Executive Sponsor Value Stream Champion

Signature:

Date: Date: Date:

Signature: Signature:

Block

#Goal / Objective Improvement Activity

Implement standard work for referral

process

Type OwnerImplementation Schedule (weeks) Date

Complete

Date Created

11/21/2007

Allen Ward

Sally McKinsey

Dave Parks 12/13/2007

10/18/2007 1/10/2008

Future State Implementation Plan

Executive Sponsor

Value Stream Champion

Value Stream Mapping Facilitator

Implementation Plan Review Dates

11/1/2007

Outpatient Imaging

Building a Lean Enterprise

37

Interim Briefings

Who: Improvement team and ALL involved

leadership

Purpose

Share discoveries

Process check – is the team moving in the right direction?

Minimize surprises; gain consensus

Discuss policy issues

Leadership may not veto tactical decisions Give them the “rules” upfront

Schedule improvement activities around leadership

schedules.


What is A3?

A structured method for applying the PDCA (plan-do-check-act) approach to problem-solving. Workforce development into Lean thinkers

International designation for 11 x 17” paper.

A concise “storyboard,” which visualizes the problem solver’s discoveries and thought process along the way. Communication

Consensus building

Organizational learning

38 © 2010 Karen Martin & Associates

I.T.R. Project – A3 Report

39

METHODS MACHINE PEOPLE

Multiple entry methods IT access to equipment / user Customer/user process traning

no standard means

Support resources (not enough staff)

1 stop shop ITR Form Inventory hard to manage Only 8 techs to complete the work

call friend fly by

Inconsistent work close-out activities

Manual processing / tracking

Inability to define specific needs

Lack of req'd product and

accounting info

Limited process tracking License procurement

Accessibility Time until completion Support resources

(due dates, completion dates)

Work location

ENVIRONMENT MEASURES MATERIALS

Software installation takes too long to

complete and close out


A3 Roles & Responsibilities

Problem Owner – Person(s) accountable for results; authorized to engage any and all parties needed

Problem Coach – Person(s) “developing” the process owner into a skilled problem-solver; typically leadership.

They must be proficient problem-solvers first!

Requires leadership development

Workforce

Training

1

2 1

3 2

4 3

5 4

5

1 6

2 7

3 8

4 9

5 10

1

2 1

3 2

4 3

5 4

1

2

3

4 Date:Date: Date:

Contact Information

Signature: Signature:

Name

FacilitatorValue Stream Champion

Name

Dates

Start & End

TimesSpecific Conditions

Value Stream

Champion

FacilitatorProcess Trigger

Kaizen Event CharterEvent Scope Leadership Schedule

Last Step

First Step

Executive SponsorEvent Name

Team LeadInterim

Briefings

Location

Value Stream

Event Drivers / Current State Issues Team Members

Final

Presentation

Event Boundaries &

LimitationsEvent Coordinator

Function

Event Goals and Objectives

Potential Deliverables On-Call Support

Function Contact Information

Possible Obstacles Approvals

Signature:

Executive Sponsor

42

Role of the Improvement Sponsor

Authorize the activity, scope, objectives, and boundaries

Participate in Charter formation

Authorize resources (negotiate with peers, as necessary)

Attend briefings

Remove obstacles to the team’s success

Gain leadership alignment

Mediate policy debates

“Negotiate” for resources (if needed) with peers and Execs

People, time, funding, materials/technology, space

Authorize modifying the objectives if the organization can’t

support the improvement

Accountable for results

Regular check-ins to assure appropriate progress and re-direct if

needed © 2010 Karen Martin & Associates

Gather improvement ideas from across the enterprise.

Evaluate & prioritize improvement opportunities (closely tied to annual business goals).

Enable alignment across leadership team.

Communicate upcoming improvements and outcomes.

Aid in necessary culture shift.

Assure ongoing process measurement and continuous improvement is occurring.

Determine ongoing workforce development needs.

Stay informed about competing priorities and shift improvement focus accordingly.

Allocate resources.

Assess progress and adjust as needed.


Lean Steering Committee /

Advisory Team’s Role

Modeling Lean Behaviors

Encourage leaders to:

Go to the Gemba

Clearly define problems and conduct thorough

root cause analysis

Allow workers time for improvement

Stick to the strategy that’s been set


Take the Lead

One of the things that I’ve noticed is…

Would you be open to…?

I was reading …. and they mentioned that…

Could we get together to discuss…?


Key Success Factors for

Achieving Results

Tenacity

Strategic improvement tied to business

goals

Value Stream Mapping

Dedicated resources

More on this in next month’s webinar

Heavy use of Kaizen Events initially

With the goal of maturing to “daily kaizen”

46

Learning Objectives

Participants will learn how to help your leadership

team understand their role in the improvement

process, including:

Setting improvement strategy

Roles & responsibilities of project sponsors and A3 coaches

“Letting go” of tactical decisions

Briefing attendance

Authorizing the frontline to make improvements

Modeling lean behaviors

Assumption – already familiar with principles and tools

47

Resources

Leadership-Focused

Leading the Lean Enterprise Transformation,

George Koenigsaecker

The Lean Manager, Michael & Freddy Ballé

(business novel)

Toyota Kata, Mike Rother

The “Classics”

The Toyota Way, Jeff Liker

Lean Thinking, Jim Womack


49

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San Diego, CA 92122

858.677.6799

[email protected]

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lean leadership: helping leaders understand their role in the improvement process

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