lean psychology: leveraging human nature to achieve optimal improvement

Lean Psychology: Leveraging Human Nature to Achieve e e ag g u a atu e to c e e

Optimal Improvement

Company

LOGO

Learning Objectives

Participants will learn: How psychology affects the entire improvement

process, from strategy to execution. What you can do to ensure both short- and long-

term success.H t t th b i d l h How to meet the basic needs people have through the improvement process.Specific tactics that leverage human nature to Specific tactics that leverage human nature to achieve optimal business performance.

© 2011 Karen Martin & Associates 2

Your Instructor

Early career as a scientist; migrated to quality & operations design in the mid 80’squality & operations design in the mid-80 s.

Launched Karen Martin & Associates in 1993.

Introduced to Lean in 2000. Specialize in applying Lean in non-

f i imanufacturing environments. Co-author of The Kaizen Event Planner;

co-developer of Metrics-Based Processco developer of Metrics Based Process Mapping: An Excel-Based Solution.

Instructor in University of California, San

Karen MartinPrincipal, Karen

Martin & Associates

© 2011 Karen Martin & Associates

Diego’s Lean Enterprise program.

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Why Lean Psychology?

Long term interest in human behavior.Avid practitioner of hansei (reflection) –

began to notice trends and patterns.Success in changing my own paradigms

and approach.ppGrowing concern that Lean isn’t being

properly appliedproperly applied.


The Win-Win

A well-executed improvement approach not only serves the customer and generates significant return for the organization, it also meets the psychological needs of individuals, creating a highly motivated workforce.


Two Pillars of The Toyota Way

Respect for H it

Elimination of waste th h tiHumanity through continuous

improvement

Plan

DoAct

Check


Sakichi Toyoda (1867-1930)

The Change Agent’s Many “Non-Technical” Hats


The Change Agent’s Most Important Hat: Psychologist

Psychologist Ab h M lAbraham Maslow

What motivates people?What do they fear?


Maslow’s Hierarchy of Needs

Typical Work Needs

To belong To be needed

To understand To see progress

To learn To create

To be adequately compensated To create

To contribute T b h d

co pe sated To work in a pleasant

environment To be heard To be recognized

environment To be safe

Ph i ll To be competent Physically

Emotionally (treated well)

10

To Succeed

When needs aren’t met…

ApathyTurnover / absenteeismObstacle creation (overt and/or covert)Obstacle creation (overt and/or covert)LawsuitsS b tSabotage


Components for Effective Change

EffectiveEffectiveChangeChange

VisionVision SkillsSkills IncentivesIncentives ResourcesResources Action PlanAction Plan

ConfusionConfusionSkillsSkills IncentivesIncentives ResourcesResources Action PlanAction Plan

AnxietyAnxiety

Gradual Gradual

VisionVision IncentivesIncentives ResourcesResources Action PlanAction Plan

Gradual Gradual ChangeChange

FrustrationFrustration

VisionVision SkillsSkills ResourcesResources Action PlanAction Plan

VisionVision SkillsSkills IncentivesIncentives Action PlanAction Plan FrustrationFrustration

False Starts False Starts VisionVision SkillsSkills IncentivesIncentives ResourcesResources

s os o SkillsSkills IncentivesIncentives ct o act o a

© 2003, Enterprise Mgmt Ltd.

Resistance toResistance toChangeg


Why people resist change

Poor understandingCynicism & skepticism (low trust / faith)Low involvementChange fatigueLack of consensusLack of consensusFear


Reducing Resistance – Improve Understanding

Clear strategy – established by leadership Hoshin kanri Value stream maps

Customer Demand:15 patients per Day

(Takt Time 1920 seconds)8 hours per day

Referring Physician

% C&A = 65 %

Hospital

ScheduleAppointment

Cycle Time = 11 mins.Lead Time = 12 mins.% C&A = 98 %

6

Pre-register Patient

Cycle Time = 30 mins.Lead Time = 990 mins.% C&A = 100 %

5 Lead Time = 12 mins.Lead Time = 990 mins.Lead Time = 24 days1234

CT=Cycle Time LT=Lead Time %C&A=% Complete & Accurate

E Pay

Excel

ADS

Symposium

Internet

Waiting RoomManagement

System

Fax OrderSolutions

PACS

Meditech

Auto Fax 50% Us Mail 25%MD Mailbox 25%

Rework Loop via Fax 25% of the time

Check-in Patient

(Admitting)

Cycle Time = 2 mins.% C&A = 90 %

5

Send Reports

(Imaging)


6

5 mins.

0.0833 hrs.

2 mins.

0.0833 hrs.

1 mins.

0.75 hrs.

10 mins.

0.5 hrs.

15 mins.

0.0833 hrs.

3 mins.

4.13 hrs.

15 mins.

6.08 hrs.

5 mins.

16 hrs.

1 mins.

1.83 hrs.

1 mins.

2 hrs.

3 mins.

LT = 32.5 hrs.

CT = 56 mins.CT/LT Ratio = 2.87%

PrepPatient(Tech)


2

Check-inPatient

(Imaging)


3

CompleteExam(Tech)


2

TransmitImages(Tech)


2

Read/DictateExam

(Radiologist)


2

TranscribeReport (MDI)


6

ReviewDraft/Sign

(Radiologist)


2

PrintReports

(Imaging)


230 mins. 5 mins. 248 mins. 365 mins. 960 mins. 110 mins. 120 mins.45 mins.5 mins.5 6 7 8 9 10 11 12 13 14

Rolled First Pass i ld 29%


yield = 29%


Clear communication Why is improvement needed? Establish a sense of urgency Data sells!

What’s our strategy? What do you expect from us? How will you support us?

You may need to coach your leadership team.


Pick your Crisis

Shrinking margins Regulatory pressure / li iCustomer dissatisfaction

Shrinking market share

compliance issuesRising litigation

Rising costsRising competition

Social, economic, environmental, or political pressures

Desire to absorb growth without adding typical

political pressuresDownward

performance trendscommensurate staffingImpending acquisition

performance trends (in speed and/or quality)


Staff burnoutq y)

Reducing Resistance – Why is Improvement Needed?

Data sells!Data sells!


V l St M i Ch t

Reducing Resistance – Improve UnderstandingClearly Communicate via Charters

Value Stream Mapping Charter Event Scope Leadership / Coordination Schedule

Value Stream Recruiting, Hiring, & Onboarding Process Executive Sponsor Sherrye Hutcherson Event Date(s) Oct 27, 28 & 29, 2009

Specific Conditions External hires Value Stream Champion N/A Start/End

TimesOct 27, 28 8:00 am - 4:30 pmOct 29 7:30 am - 2:00 pm

Customer Demand 100 per yearFacilitator Karen Martin Location 9 West SeminarFacilitator Karen Martin Location 9 West Seminar

Trigger Vacancy

First Step Hiring manager completes VPATeam Lead N/A Meals

Provided?Lunch, morning & afternoon snacksLast Step Employee completes NEI

Boundaries & Limitations N/A

Coordinator Andrew Peacock

Interim Briefing(s)

Oct 27 & 28 3:30-4:30 pmOct 29 1-2 pm

Improvement Timeframe Future state will be fully implemented by 2/15/2009 Briefing

AttendeesTim Burke, Sherrye H and other Division ManagersTimeframe Attendees Division Managers

Event Drivers Mapping Team1 Cumbersome process as perceived by the customer. Function Name Contact Information

2 Need to free capacity and operate more effectively. 1 Staffing Paula Pittman

3 2 FCS HR Patty Yager

4 3 Talent Management Tad Leeper

5 4 HRIS Chris Ritz

Measureable Objectives 5 HR Compliance Carl Olsen

1 Reduce LT from req to offer acceptance from 45-55 days to 30 days. 6 Comp & Benefits Nyla Cork

2 7 Recruiting Sheila Love

3 8 Diversity / Affirmative Action Joyce Cooper

4 9 Hiring Manager, Call Ctr Deb Emerson

5 10 Hiring Manager, Production Ops

Planned Deliverables On-Call Support1 Current State VSM Function Name Contact Information

2 Future State VSM 1 IT Gary Van Osdel

3 Implementation Plan 2 Fort Calhoun - Security Herb Childs

4 3

5 4

Potential Obstacles Approvals1 Executive Sponsor Value Stream Champion Facilitator

2

3 Signature: Signature: Signature:4 Date: Date: Date: 19


Waste is at the root of most workplace frustration d i t l d i t d t t l fli tand interpersonal and interdepartmental conflict.

Use this reality to sell the need for improvement.“Think about the last time you left work feeling


y gfrustrated? What was the real reason?”

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Psychology 101

People resist change unless you address “WIIFM.”

If change isn’t viewed as a personalimprovement for the worker it’s unlikely to


be embraced and sustained.21


The entire workforce must eventually be exposed to L i i l d t l d d t d h thiLean principles and tools, and understand why this approach is different.

M d iMy advice: Provide as much upfront training and exposure as

possiblepossible. Include a simulation – let them experience a

transformation. Provide leadership overviews that include discussions

about their roles and responsibilities, and key success factors Help them gain alignment


factors. Help them gain alignment.

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“Going to the gemba” heightens awareness and creates understandingg

Cynicism & Skepticism Goes with the Terroritory

“How many improvement approaches have been attempted here over the past 10-20 years?”“Is the work environment fundamentally

more pleasant than it was 10-20 years p yago?” Lower stress More teamwork and comraderie Greater fulfillment


Greater fulfillment

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Tactics for Dealing with Cynicism & Skepticism

Don’t expect people to check it at the door.Draw it out – invite them to admit it.Ask them to “get in the car one more time and

come along for a ride.”Acknowledge that the “proof’s in the pudding.”Make sure all changes are improvements and

not merely changes.f ’ ’ If it doesn’t improve the worker’s ability to be successful, it’s merely change.


Reducing Resistance – Invite / Require Involvement from All Stakeholders

The workers know best!All i t t b hi hl f ti lAll improvement must be highly cross-functional.Cross-functional problem-solving builds a sense of

b l i id th t it t b tibelonging, provides the opportunity to be creative, and generates a feeling of accomplishment.


Maslow’s Hierarchy of Needs

Aided by cross-functional improvement activities

Improvement Roles

Who? Accountability ToolWho? Accountability Tool

Senior What has to Value Stream rate

gic

Leadership happen MappingMiddle Management

Str

Frontline Workers

How it will happen

Just-do-itsKaizen EventsP j t

Management

actic

al

ProjectsTa


Improvement Roles and Responsibilities

Leadership – set strategy (what needs to happen)Frontline workers – determine tactics (how (

it will happen)Improvement professionals – CoachImprovement professionals Coach,

Teacher, Facilitator.Not Toyota like: “Getting your employeesNot Toyota-like: Getting your employees

to buy into the change that you want to implement to improve the operation ”


implement to improve the operation.

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Poor understandingCynicism & skepticism (low trust/faith)Low involvementChange fatigueLack of consensusLack of consensusFear


Change Fatigue


It’s a marathon, not a sprint

Help leadership develop realistic expectations regarding results and the resources needed to getregarding results and the resources needed to get there. “How long has this been a problem? It may not get How long has this been a problem? It may not get

solved overnight.”Allow “absorption time”; schedule regular hanseip g

sessions.Pacing is key - avoid “organizational implosion” by

attempting too much too fast.Check in with the customer (workforce) frequently


and adjust accordingly.34

Consensus-Building Tactics

Alignment around strategy.Improvement is well-defined and well-

communicated.Cross-functional teams.Upfront and periodic input from teamUpfront and periodic input from team

member’s peer groups.R i d t ti t id th tReview and testing outside the team.Interim briefings between teams and


leadership.36

Interim Briefings

Periodic updates Discoveries Direction team is taking – process check

Minimize the surprises; get buy-in as the team moves along; reduces rework by the g; yteamVenue for challenging policiesVenue for challenging policies


Types of Fear & Countermeasures

Fear CountermeasureJob loss • “No one will lose a paycheck due to

improvement ”improvement.• “Your job may change but your paycheck is assured.”• Job loss only due: to 1) poor

f 2) k t d tperformance, 2) market downturns.Incompetence • Training, training, training

• Confidence leads to competenceLoss of control (leadership) • Adequate workforce skill development.

• Help them see how freed time will enable them to be more effective leadersleaders.

Improvement won’t be adequately resourced (workforce)

• Leadership commitment

Chaos sustainability permanence • Pilots; experiments

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Chaos, sustainability, permanence, failure

• Pilots; experiments• Monitoring• Continuous improvement

A Spirit of ExperimentationExperimentation

Reduces Resistance t Ch d tto Change due to

“Fear of Permanence”

Plan

PDCA reduces risk of failure

Do

Check

Act


Cultural Transformation Process

Results

Actions The Results Pyramid

Partners in Leadership

Beliefs

p

Experiences


Experiences

Creating New Experiences

Scientific method (PDCA)Leadership setting clear strategy via hoshin

kanri and value stream maps.Leadership staying out of the weeds – frontline

workforce designs and implements tactical solutionssolutions.

Cross-functional collaboration.D di t d ti f ki i tDedicated time for making improvements.Rapid, consensus-driven improvement.R l t ti iti ff ti t i i


Relevant, time-sensitive, effective training.

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If you expect resistance, ill t i tyou will get resistance


Miscellaneous Thoughts and Observationsand Observations


Psychology 101

We seek pleasure and avoid pain.


Observation #1

If it’s too hard to do, we will delay or avoid doing it Builds up work-in-process Prolongs lead times

Aim for work simplification –pmake it easy to be successful, difficult to fail.,


Observation #2

The more you create a y“safe haven” for people to tell the p ptruth and share their feelings, the faster gthe improvement, the greater the results, gand the deeper the organizational healing.


g g

Observation #3

When processes are monitored, we perform differentlyperform differentlyPost metrics!

Especially leading indicators


Observation #4

Most inspection (reviews, approvals, audits, t ) i d d i l k f t t fetc.) is grounded in lack of trust or fear. Low faith in process reliability Low confidence in people performing the work Fear of losing control High “need to know”

Risk aversion Fear re: outcome


Observation #5People want to perform well

Most people will do h t it t k twhatever it takes to

get their jobs done, hi hwhich may cause

them to: Ignore policies and

proceduresI l i Ignore regulations

Cut corners


The right process will produce the right results.

Observation #6

Poorly designed processes are typically behind interpersonal and interdepartmental tension – not personalities.

Poorly designed processes are behind poor


process performance.

Observation #7 – Words Matter

Words greatly impact “group think” and i di id l h lindividual psychology. Help staff transform their thinking and speech

f “N b ” t “Y if ”from “No, because…” to “Yes, if…” Sensitize people about the word “can’t”:

/ “ ” Disempowers / creates “victim thinking” Closes off possibilities Stifles innovation and creativity Stifles innovation and creativity

They (and possibly you) will need to break habits


habits.

In Summary

If used properly, Lean principles and tools are 100% grounded in leveraging human nature to achieve: high functioning organizations that perform optimally, and that everyone wants to work for and do business with.


What can you do to become a better psychologist?

ReflectBe fully present

Listen deeply – use every sense Observe

ExperimentExperimentBe an active learner

Read Read Take classes

I l d h l i k di i


Include psychology in work discussions

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Learning Objectives

Participants will learn: How psychology affects the entire improvement

process, from strategy to execution. What you can do to ensure both short- and long-

term success.H t t th b i d l h How to meet the basic needs people have through the improvement process.Specific tactics that leverage human nature to Specific tactics that leverage human nature to achieve optimal business performance.


Lean Resources

The Toyota Way, Jeffrey LikerLean Thinking, Jim WomackLean Hospitals, Mark Grabanp ,The Kaizen Event Planner, Karen Martin &

Mike OsterlingMike Osterling


Recommended Resource


For Further Questions

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858 677 [email protected]

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lean psychology: leveraging human nature to achieve optimal improvement

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