lean leadership: part 1 of 3

Today’s Agenda

© 2016 The Karen Martin Group, Inc. 2

• Components of Lean management• Foundational core values, mindsets &

practices leaders need to adopt to support the Lean journey

• What you can do (or help your leader do) to adopt Lean leadership mindsets and practices

Specific Topics Leaders Commonly Misunderstand or Are Unaware of

1. Three of the core values that underlie Lean management2. Key performance indicators3. Visual management4. Work standardization5. Go and see (Gemba) leadership6. The environmental "don't" that destroys Lean efforts


Everything rises and falls on leadership. — John C. Maxwell

Effective Leadership:

Nature or Nurture?


Continuous learning, challenging one’s mindsets, experimentation & practice

The Lean Management Journey to Excellence


Lean Thinkers

Lean Management

Practices

Lean Leadership

Lean Processes


Lean Management

Lean Management Components

Core Values / Principles / Philosophy

• Analytical tools• Value stream analysis & mapping• Metrics-based process mapping• Root cause analysis: Five Why’s, Fishbone,

Pareto, Problem tree, FMEA• Waste Countermeasures

• Standard work• Quality at the Source / Error proofing• 5S / Visuals• Pull systems: One-piece flow, FIFO lanes,

Kanban• Cells / co-location• Level loading• Work balancing• Batch size reduction• Setup & changeover reduction• Work segmentation• Autonomation• Cross-training / multi-functional workers

• Strategy deployment (hoshin planning)• Value stream management• Key performance indicators (three levels,

including customer & operational metrics)• Disciplined process management via clear

owners & KPIs• Daily kaizen• PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups• Go & see (gemba) management• Humble inquiry• Continuously seeking voice of the customer• Purposeful meetings & reporting• Lean accounting• Consensus management

• Humility• Respect• Curiosity• Transparency• Relentless pursuit for

perfection

• Customer value • Flow / waste elimination• Just in time• Visual management• Work standardization

Lean Management


Lean Transformation: People Development Needs

• Lean mindsets (humility, respect, curiosity, etc)• Gemba-based leadership• PDSA problem solving• Strategy deployment• Key performance indicators (including customer & operational)

Executives

• Lean mindsets (humility, respect, curiosity, etc)• Gemba-based leadership• PDSA problem solving• Strategy deployment & basic Lean tools • Process management & KPIs

Middle Managers

• PDSA problem solving • Waste identification• Daily kaizen

Front Lines

• All of the above• Advanced Lean analysis tools & countermeasures• All else (disposition, business acumen, psychology, etc.)

Internal Lean Team




• Analytical tools• Value stream mapping• Metrics-based process mapping• Root cause analysis: Five Why’s, Fishbone,








perfection


Lean Management


The #1 Foundational

“Must”:

NO FEAR


#8 of Deming’s 14 points in Out of the Crisis

“People aren’t your problem. Your problem is that your

work systems andprocesses don’t

allow people to shine.”


The People

Who Do the Work are the Experts

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perfection


Lean Management


Purpose of Visual Management


1. Communicate work steps: who, what, when, where & how

2. Communicate status3. Communicate performance4. Communicate abnormalities; make

problems visible

In a Lean organization…

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…there’s no guessing about performance…visual management reigns supreme

Most businesses don’t know the true score.20


Key Performance Indicators (KPIs): Three Levels

Key

Perf

orm

ance

Indi

cato

rsCorporate

Value Stream

Function / Dept

How are we doing?

Key Performance Indicators (KPIs): Corporate Level

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Key Performance Indicators: Value Stream Level

Key Performance Indicators: Value Stream Level

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…there’s no guessing about abnormalities


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…there’s no guessing about who, what, where, when, what, how











perfection


Lean Management




…all work is standardized

Standard Work MUST Be Documented


• Process steps + job aids• Highly visual step-by-step how to’s• Process maps• Check lists• Cheat sheets / memory joggers• Decision trees (If this, then that…)• Flow charts

• All applicable work standards are included in standard work











perfection


Lean Management


Gemba-Based Leadership

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3 Types of Gemba Walks

• Daily management (KPI-based Leader Standard Work)

• Regular cadence• 3 levels: supervisor, manager,

senior leader• Coaching & problem solving

take place “off line”

• Coaching for specific problem solving

• As needed• Reactive

• Understand reality• Understand the whole• Keep “in the know”• Identify improvement

priorities• Being visible• Proactive

Leader Standard Work (LSW): KPI Board Reviews


Supervisors & Team Leads Middle Managers Senior Leaders

Purpose Share previous day’s results and review that day’s plan

Monitor results; confirm that support functions are meeting commitments to address issues surfaced by frontline staff

Monitor results; obtain real-time, objective information (vs. perception); learn about issues & trends (betterdecision making); provide visibility to frontlines; drive toward rapid problem resolution; identify coaching needs

Frequency

When

Where

Length

Daily

Beginning of each day or shift

Each work area or dept KPI board

10 minutes

Weekly

Regular cadence; consistent day/time

Each work area or dept KPI board

3-5 minutes per board

Monthly

Regular cadence; consistent day/time

Visit each division

10 minutes per board

Who attends Supervisor or Team Lead and frontline staff (max 20 people)

Managers for cross-functional areas 6-8 people All senior leaders, including C-level

Agenda• Yesterday’s performance• Today’s plan (any constraints?)• Issues or trends to be aware of

• Yesterday’s performance• Status on requests for support• Additional support needed

• Performance compared with targets• Quick resolution of problems?• Concerning trends? New developments?

Post MeetingEscalate issues as needed Talk with staff about what surfaced;

assure commitments are keptAdjust business plan? Provide coaching?Consider org needs for transformation

Leader Standard Work: Gemba Walks


Additional Gemba Walks: Purpose

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• Understand current reality• Understand what the team is focused on (what their priorities are)• Learn about obstacles to staff success• Surface and correct misunderstandings• Discover the need for additional improvement

• Communicate and reinforce organizational vision, goals & priorities

• Assure alignment of department goals and improvement activities

Your Action Plan


1. Help your teams develop 2-5 KPIs and create dashboards that show their real-time score.

2. Remove fear from the equation. Problem are gaps. Be matter-of-fact and non-emotional.

3. Institute regular Gemba walks in every area you oversee. Discuss KPIs, improvement activities, and corrective action (e.g., who, what, by when, who else is involved, etc.)

4. Have your teams create written standard work and job aids for all key processes.


To Learn More…Reading

• The Toyota Way to Lean Leadership (Liker & Convis)• The Simple Leader (Meyer)• The Lean CEO (Stoller)• Out of the Crisis (Deming)• The Effective Executive (Drucker)• The Outstanding Organization (Martin)

Conferences• Association for Manufacturing Excellence• Lean Enterprise Institute• Shingo Institute

Tours – especially outside your industryPractice, practice, and more practice!

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Lean Leadership Webinar 2 of 3:Thursday, September 22 – 11:00 am PDT

Register Now: www.ksmartin.com/webinars










perfection


Lean Management


http://www.ksmartin.com/webinars

Questions or comments?

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Your Questions1. What can lower level leaders within the organization

do to help drive the senior staff to take a more proactive approach to lean leadership?

2. How do you recommend navigating leadership changes/turnover (e.g., current leader support Lean, but is leaving soon; next leader may not want to embrace an initiative seen as tied to the last administration)?

© 2015 Jacob Stoller 46

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lean leadership: part 1 of 3

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