leanpaper for lean managers 2015

LEANPAPER 2015

What is a Leanpaper?

Laura Gerrits

Summer. 09:50 p.m. It is still bright outside, the voices of children

and chattering of neighbors can still be heard. The face is

slightly weather-beaten after half a day spent in Svenčelė.

On the window-sill there rest dusty books, which, despite

my promises, I couldn’t find the time to read in spring. I

had just started feeling guilty about not finding out

anything new and having this expensive collection of

books on my window-sill when my positive side realized

what great number of managers-teachers I had met

during the last six months.

Why not putting these experiences into short stories and

sharing them with the others?

This Leanpaper appeared out of desire to share managers’ stories to be heard by a lot of people.

Years go by and we learn something new, we start to see

things we have never seen before and realize the things

we have never even thought about…

Sometimes appropriate time, for example, summer, is

necessary so that we could share with You everything we

have learnt.

In the Leanpaper You will find 4 stories from 4 companies

about continuous improvement practices and:

What is “Lean board”?

“Customer changed the cooperation of the King and his subordinates”

“Today we changed the indicators again”

How strawberry farmer choose his performance indicators?

Method of selection of performance indicators

“I just started doing this remotely by myself”

5S integration onto the daily management board

How to distinguish PDCA actions against current tasks and escalation?

“TO PROVIDE THE TOOLS AND TO SHOW A SAFE PATH TO CHANGES”

Mindfulness practice for managers

Summer Leanpaper will be a great opportunity to convey

arisen reflections in writing. After all, what is visible

becomes noticeable.

Laura Gerrits, Continuous Improvement Coach at

IMPROVEMENT.

What is a “Lean board”? Laura Gerrits

It is a visual team tool, on which the team can assess its current performance indicators and results each morning, solve arisen problems and provide for corrective actions or performance improvements “Kaizen” in order to achieve its goals.

I like to compare a visual board with a basketball scoreboard, which indicates in green or red how far the team is from its pursued goal. Probably you have passionately been watching Lithuanian basketball team play with the opponent team at least once. Try to imagine how you would watch a basketball game without a scoreboard? First of all, you would have to watch each game move attentively to see who is with the ball, who is winning and who is losing, which player is the most efficient and which one does not play as well. And if you were the team coach in charge of the team’s victory how you would influence the game process effectively without a scoreboard?

Despite the team you are managing, every day you use Excel tables, CMR programs, Outlook calendars and other IT systems in order to assess the team’s daily result, efforts, process course, duration, etc. This daily assessment of performance results by compiling data from various systems is a waste of time in most cases because:

• To compile and enter data from different tables and IT systems every day in order to see performance results takes lots of Your time. • Daily result in different documents and IT systems is most probably observed only by You, i.e., the manager, whereas the team has not its scoreboard and employees cannot see their contribution to the achievement of a common team goal and is not willing to daily assessment of yesterday’s processes and provision of ideas for elimination of incurred losses. • Thus, You should be encouraged to take a challenge and involve all employees into the achievement of a common goal and daily performance assessment.

Photo: morning meeting by the “Lean board” in a service company, 2014

Visual management by using the board is an integral part of daily performance improvement “Kaizen”. In the company which practices “Lean”, both the manager and employees need to get daily knowledge of the success in carrying out the process so that the team could influence the quality, time and satisfaction of the clients. In short, this tool is hereinafter referred to as the “Lean board”. The “Lean board” may become an irreplaceable tool of the manager and the management standard due to various reasons: • By means of the board the manager summarizes yesterday’s results. • Each member has an opportunity to contribute to the achievement of the common goal as well as to assess oneself. • When the team is brought together, there appears the space for sharing the observed wastes of yesterday and ideas for their elimination. • The team observes and writes down its provided performance improvements and duration of their implementation. In this way the number of performance improvements “Kaizen” increases and performance indicators are improving. • Each day the manager has 15-20 minutes to arrange daily priorities, allocate tasks and give his/her support to the team for achieving common goals. •Employees get more involved into performance improvement and company’s strategic goals.

Photo: 15 min. morning meeting by the “Lean board” in service companies, 2014 m.

Some companies that are practicing “Lean” faced the challenge of maintaining daily monitoring of indicators in the morning by using the board. Naturally, this happens because it is a new tool that requires some knowledge and daily practice in order to be used correctly. This section provides information about visual contents of the board and conduct of the meeting to help YOU create the team’s “Lean board” and start using it.

Time and place of a daily meeting Time: The “Lean board” is used in a meeting which takes place every morning at the arranged time. It might be used during other time of the day when one shift changes another and it is important to pass on information and tasks. You will also need 5 minutes to prepare for the meeting, update the data and information. 15-20 minutes of the meeting should be included into working hours of the employees, otherwise they may start wondering: “why should we come to work earlier if we are not paid for this?” Do not arrange the meeting after the working hours. After work there is no employee who would be focused on the performance. Your provided information would have to be repeated again in the morning of the other working day because the majority of employees would have forgotten everything. Talk to your team and decide what time of the morning is best for the meeting.

Place: Placement of the board has a huge impact on the team’s involvement. Very often the managers do not understand this factor and later, having understood the importance of the placement of the board, they hang it elsewhere. The most effective means to involve the team is to hang the board on the wall, which is not surrounded by office furniture, such as tables, manufacturing equipment, storage shelves and most importantly – no chairs. The meeting takes place while everyone, including the manager, is standing so that the manager would not take longer than 15-20 minutes and the meeting would not become an unproductive discussion. Hang the board in such a place, which is visible and accessible to all the employees. For example, next to each production line, in the manager’s office without clients, commonly used hall, etc. The most important thing is not to hang the “Lean board” in your manager’s office. Employees should have a possibility to access the board during their working hours, enter the information of their performed process, etc. However, only when the whole team is involved should the board become a “living” and useful tool.

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Example of an indicator board hung in a wrong place

In practice, several instances of similarly equipped “Lean boards” for morning meetings were observed. In this case the manager takes half as much time to involve the team in the use of the new tool because:

▪ When there is not much space for standing by the board, the manager feels committed to take the only

standing place. ▪ When there are chairs and tables nearby, the employees will habitually sit on the chairs, tables and

lean to other furniture. ▪ When the manager is standing and the employees are sitting, such arguments will be heard when

the manager asks employee(s) to write yesterday’s performance indicators or performance improvement ideas: “please, manager, write those down, you are standing close to the board”, or “it is hard to access the board now, I will write everything after the meeting”, “I feel so comfortable sitting right now”, etc.

All this aggravates the process of team involvement and may determine the failure of this initiative. Thus, Your first step is to find a right place for the board. If the premises are small, be simple: use the doors of cabinets or office. Hang the board on the outer wall of an archive cabinet and use the cabinet as a partition. Find a mobile board on wheels that you can roll in to the common space during the meeting and keep in a cafeteria or other place after the meeting.

Do not by any means change the furniture place of your colleagues’ workplace without talking to them first. Such behavior would be disrespectful and respect is one of the main “Lean” principles. Involve the team into making the decision of where to hang the board.

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CUSTOMER CHANGED COOPERATION BETWEEN THE KING AND HIS TEAM

UAB ECE Projektmanagement Vilnius

Number of employees: 22

Activity: Management of „OZAS” shopping center

Practices Lean: for 1 year

Interview given by: CEO Inga Navickaitė

In the company where I work, one of the managers could not deal with his subordinates who were the employees of our services supplier. We were not satisfied with the results and cooperation. Despite the fact that they were our colleagues, they still were from another company, from other culture. What is more, the supplier’s employees were constantly changing. Thus, we started to look for causes of the problem, there was a mutual need for both us and the supplier to find a way to improve the team work. We wanted to find a solution so that they could speak the same language, look the same direction, that is, to our common client – customers of the shopping center, tenants and the owner.

What was most difficult at the beginning of the implementation of this discipline?

I think that the most difficult thing was to “sell” it, that there will be opposition. Fortunately, there was not opposition because the supplier’s employees had already been familiar with “Lean”. We only had to adapt processes in the company. We decided to launch a pilot project in this department and if it proved to be successful to expand it to other departments.

What were working relationships between You and services supplier back then and what are they now?

I’d say that the relationship between the client and services provider was like that of the king and his subordinates. The subordinates would wait for the king’s communication and tasks.

On the other hand, there was no sense of initiative since it was convenient for the subordinates to wait for instructions and if no orders were given there were no actions as well. The atmosphere was not pleasant as the manager had gone to work in a separate office in this way distancing himself. However, after the discipline was created he came back and it was a huge psychological breakthrough. Previously, further development of a project or task was not clear, everything was messed up somehow. “Lean” tools allowed to see the whole process clearer as well as to visualize daily work. They started to work as a team and pursue one common goal, i.e., to meet the needs of common clients: the shopping center visitors, tenants and the owner of the premises. Head of the department changed his demanding tone. The supplier’s team took more active steps and improvement ideas, the things that originally did not exist in the team.

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During the meetings we talk about the most important project tasks of today. As we have to talk about the project tasks visualized on the board, it is easy to remember what you have to do or which subcontractor has to provide the anticipated answer.

How did the team choose indicators?

First of all, the supplier and we had to identify who our client is and what is important to him. Therefore, being the suppliers, we chose indicators that help us monitor our quality, reaction time and situation improvement.

How did you further develop the discipline after a pilot project?

Heads of departments were dedicated time for communication and understanding of the reason why we do this. There were no rejections or letters of resignation because of this.

During the first months it was difficult to meet in time, the meetings took 1-1,5 h and there were days when the meetings could not take place due to my business trips. Depending on the departments, some find it easier to establish indicators, however, in marketing there are more project activities and we observe the dates of project tasks to be performed, quality and obstacles that arise during the process. We manage to achieve good performance improvements. Managers and their teams independently dealt with problems and looked for solutions on by means of the board. We started organizing joint problem-solution meetings for departments, improved mutual cooperation in specific processes. There appeared a vision of a common result. Regular question “How will it be valuable to the client?” changed our focus point. It has probably broadened our horizons and made it clear why we all are here.

TODAY WE CHANGED AN INDICATOR AGAIN

UAB Kitron


Activity: engineering services center, production of electronic parts and equipment Practices Lean: for 5 years

Interview given by: Production manager Daumantas Barcas

What was daily management the first 3 years and how is it different today?

Previously, we used to come to meetings each day, however, it was only practiced by second-level managers, as this was how we reported to higher level managers. First-level employees, i.e., foremen and operators, were not involved even though they see the whole process, know details and may offer solutions.

In the past, our meetings were not so structured they often were confusing, thus we would waste time discussing minor issues that could, for example, be solved by an operator. Why did you decide to improve the quality of discipline even though you had one?

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We, middle-level managers, felt ready for it. We reached the point where we could not progress anymore with the management routine that we had. We were in need to involve the majority of employees, i.e., foremen, operators, planning, selling and other teams into daily solutions of problems and change management.

What did you change exactly in your discipline?

We developed a three-level system of meetings. First level: operators from each unit meet daily and discuss the expected situation of that day yesterday’s results, provide activities for that day. Second level: the unit managers meet after half an hour, report their indicators and discuss problems.

Later, higher-level managers gather in a third-level meeting, we notify higher-level managers about the upcoming process of that day. But most importantly, there emerged result-improving indicators that helped to get ideas and suggestions about the required changes from the operators; even potential obstacles during the process that the managers might not know could have been indicated. This changed out attitude towards operators as we have started to think that there is nothing interesting to them. However, having found a good process indicator we realized that they may get involved. We all wanted to appear well on the board and even the biggest “negatives” wanted to improve the process.

How did your managerial habits change?

First of all, I realized that it is more important to look forward rather than backwards. It turned out that you discuss the reason only to find out what you have to change tomorrow. We were not the company looking for someone to blame, but our main focus was on the past: why yesterday something happened one way or another, who was responsible for it.

It overshadowed the real reason and most importantly it overshadowed those small steps and improvements that we could have made that day. It changed a lot. The questions to the team: “what situation might be expected today and what are possible obstacles?” changed the course of our meetings and attitude completely. Our understanding about the indicators that should be on the board changed completely and now we work every day with those indicators. We know that once we reach an indicator it is time to look for another one. A simple example today - we changed an indicator again. People still wonder why there is a need to change an indicator – “it is still new, why do we have to change it again?”. It is normal because we will have to do something again to reach it. We all have to get used to it. Any suggestions for a manager who wants to create a management discipline in production?

First of all, there shouldn’t be any questions “why do I do this”. Second, of course, it is important to explain to the team why we do this and be armed with patience for the initial wave of resistance. At first meetings were held in an unusual way; it you tell people to escalate, they escalate everything and you get lost. If you are alone, you may go in a wrong direction. I experienced most significant moments having received a feedback as it helped me not to get lost. If one knows theory, it doesn’t mean that he will introduce it successfully as sometimes this flow of information or resistance lead to a wrong direction. “Lean” department manager and external consultants gave feedback on time. Beginners, I think, really need support. It is a very important factor for the development of new habits.

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HOW STRAWBERRY FARMER SHOULD CHOOSE HIS PERFORMANCE INDICATORS?

Imagine that you are a farmer who has a land plot of three hectares and grow perennial strawberries there. Your goal is to have a profitable annual strawberry harvest so that you could live from it the rest of the year and to reinvest part of profit to more efficient strawberry cultivation. You have all the necessary equipment and 10 employees during the season.

Price of strawberries

1 KG/ 2,5 EUR

What performance indicators will you choose to monitor daily in order make profit at the end of the month? If you discuss the quantity of strawberries sold, their price and margin every day with your staff, it will be difficult for the team to get involved into performance improvement because they have no impact neither on the price of strawberries nor on margin. However, they have an impact on the quantity and quality.

Therefore, a performance indicator: sold Kg/EUR/margin coefficient is an indicator that measures the result and reflects history. It is You who should monitor this indicator every week since You are responsible for pricing, sales channels and marketing.

The indicator – picked quantity/quality index is also an indicator that measures the result and reflects history. However, in this case the quantity and quality are impacted by the actions of the team. The team should really be interested in the results of their actions.

Indicators: number of beds, fertilization according to the schedule, number of beds weeded according to the schedule, number of beds watered according to the schedule, picked strawberries in kg/number of beds, defective strawberries in kg/number of beds are process indicators leading to results. They are impacted by daily work of the team. Process indicators reflect standard work of the team and are oriented to the client. For the client does not care if Your harvest is profitable, he cares about appearance of the strawberries, their taste, price and delivery in time. When process indicators are monitored, the team gets involved easily. It the farmer asks what problems the team faced yesterday when watering beds and what obstacles they may experience today while weeding beds, the team will get involved. The only thing left to do will be to ask the team what rapid actions or improvements may solve obstacles during the day and to discuss it in the “Lean board” meeting of the other day.

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WHAT ARE WE

TO REPORT

TO SEE UNSAFE

“MY SUPPLIER CARES

1. REPORTED DANGERS/ GOING TO MEASURE

ABOUT YESTERDAY’S THINGS TO REPORT ABOUT UNSAFE

TAKES CARE OF SAFETY, THUS HE WILL

NUMBER OF PROVIDED SAFETY CONSULTATIONS

NON-SAFETY CASES THINGS. TAKE CARE OF MY PER DAY.

EVERY DAY?

ORDER TOO”

METHOD OF SELECTION OF PERFORMANCE INDICATORS

EXISTING

EXAMPLE 1

SAFETY

OBSTACLES

HABITS

HOW IS THIS INDICATOR

INDICATOR (WHAT OBSTACLES IMPEDE REACHING THE INDICATORS?)

(WHAT HABITS ARE FORMED BY THIS INDICATOR NOW?)

VALUABLE TO THE CLIENT?

WHAT ARE WE

NON-SAFETY • WE DO NOT CARE ABOUT SAFETY. ENCOURAGES TO DISCLOSE “IF MY SUPPLIER DOES NOT CASES • INTENSIVE CHANGE. AND NOT TO HIDE CARE ABOUT HUMAN

MEASURING NOW?

OF YESTERDAY.

• CONTRACTORS CARRY OUT

WORKS IN A FACTORY NON-SAFETY CASES

SAFETY, HOW WILL HE TAKE CARE OF MY ODER?”

WHAT NEW HABITS HOW IS THIS CONCLUSION: INDICATOR WOULD (WHAT NEW HABITS WILL BE INDICATOR PROCESS INDICATOR BE ORIENTED TO FORMED BY THIS VALUABLE TO ORIENTED TO OBSTACLES,

PROCESS OBSTACLES? INDICATOR?) THE CLIENT? CLIENT AND HABITS

ON THE BOARD

EXAMPLE 2

INCREASING THE MARKET SHARE % / EUR

EXISTING INDICATOR

OBSTACLES (WHAT PROCESS OBSTACLES

IMPEDE REACHING THE INDICATOR?)

HABITS (WHAT HABITS ARE FORMED BY

THIS INDICATOR NOW?)

HOW IS THIS INDICATOR VALUABLE TO THE

CLIENT?

WHAT ARE WE

INCREASING THE UNSYSTEMATIC WORK WHILE PROMOTES SEARCH FOR MARKET SHARE MARKET SHARE% SEARCHING FOR NEW CLIENTS. NEW CLIENTS IS NOT IMPORTANT. SVARBU MEASURING / NAUJOS SU- UNPLANNED MEETINGS WITH AND FAST CONCLUSION QUALITY, PRICE AND

NOW? TARTYS EUR. EXISTING CLIENTS OF CONTRACTS AGREED DELIVERY TIME

IS IMPORTANT.

WHAT NEW HABITS HOW IS THIS CONCLUSION: INDICATOR WOULD (WHAT NEW HABITS WILL BE INDICATOR VALUABLE PROCESS INDICATOR

BE ORIENTED TO FORMED BY THIS TO THE CLIENT? ORIENTED TO OBSTACLES, PROCESS OBSTACLES? INDICATOR?) CLIENT AND HABITS

WHAT ARE WE PLANNED AND / TO MAINTAIN RELATIONS WITH “I GET ATTENTION AND 1. HELD MEETINGS

GOING TO MEASURE

HELD MEETINGS WITH NEW AND

EXISTING CLIENT. PLAN MEETINGS WITH EXISTING

PROPOSALS IN TIME” / PROPOSALS SENT TO NEW AND EXISTING

ON THE BOARD EVERY DAY?

EXISTING CLIENTS. SIGNED CONTRACTS.

NEW CLIENTS, NOT TO FORGET TO SEND PROPOSALS AFTER THE MEETINGS.

CLIENTS PER DAY. 2. NUMBER OF PROPOSALS / NUMBER OF CONTRACTS PER WEEK.

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AND NOW TRY TO WRITE DOWN YOUR INDICATORS

EXISTING

INDICATOR

OBSTACLES (WHAT PROCESS OBSTACLES

IMPEDE REACHING THE INDICATORS?)

HABITS (WHAT HABITS ARE FORMED BY

THIS INDICATOR NOW?)

HOW IS THIS INDICATOR VALUABLE TO THE

CLIENT?

WHAT ARE WE MEASURING NOW?

WHAT NEW HABITS HOW IS THIS CONCLUSION: INDICATOR WOULD (WHAT NEW HABITS WILL BE INDICATOR PROCESS INDICATOR BE ORIENTED TO FORMED BY THIS VALUABLE TO ORIENTED TO OBSTACLES,

PROCESS OBSTACLES? INDICATOR? THE CLIENT CLIENT AND HABITS

WHAT ARE WE GOING TO MEASURE ON THE BOARD EVERY DAY?

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I JUST STARTED DOING THIS REMOTELY BY MYSELF

UAB Mano Būstas LT

Number of employees: 1.045

Activity: maintenance and administration of buildings

Practices Lean: for 5 years

Interview was given by director of commerce Tomas Sujeta

What were the meetings of Your department like? Our meeting took place in a classical manner, i.e., once per two weeks. First meetings were more comprehensive, but later the meeting protocol got bigger and the list of tasks got longer. Out meeting would last for 2–2,5 h. All were tired and in fact we all only talked about the past: why something happened like that, why something didn’t happen at all. It is obvious that it took my managers one or two days to prepare for the meeting rather than week. Therefore, it was a fake report “drawing” for the purpose of the meeting.

The protocol with a lot of global problems became too long and it was not oriented to objective points and priorities. As the priorities were not clear, employees would rather choose a task which is easier to do within 2 weeks rather than a task which is valuable to the client. We had performance indicators and integrated motivational system. My managers realized the relation of indicators with motivational system, but their subordinates didn’t. There was a huge gap in understanding why these indicators are necessary and how they are related with bonuses.

How have your meetings changed? We can calculate mathematically my work time with people as the manager. Previously, meetings took place twice a day and now they are held each day, hence, the work with people and processes is ten times more intensive; also, we use “Coaching Kata” methodology, which, in part is a development of employees. The least amount of time is devoted to discussing the past because it is history, it is a result of yesterday, which in most cases cannot be changed. You can only decide to do something differently, better. We discuss what we have to do today to reach our daily goal. Personally, I do not talk much by the board. The number of global tasks “we have to do our job well today”, “things should be different from today” decreased. We look at everything through a smaller scale. Now we know it is impossible to take a global task and expect to fulfill it in two days. Therefore, we discuss the ongoing process during the meetings. For example, some employees made 5 visits to the clients, the others made 6 visits. We improve proposals to the clients according to their needs and report problems to other company departments. Discussing small steps brings better results every day rather than meetings that take place once or twice per month.

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People got involved into the search of new indicators. Within a relatively short period they grasped the entire pyramid of department indicators and how it is related with bonuses.

You are a director of commerce who does not have much time. What encouraged You to hold daily meetings?

My managers are scattered throughout Lithuania, and I am located in Vilnius. Managers had daily performance indicators and visual boards. I used to say “hold daily meetings by the boards, communicate with people more often”. The distance made it difficult to see how often this happens and if it is efficient, and it annoyed me.

Later I realized that I demand that they’d do it every day while I do it only twice a week. Nevertheless, they are my reflection. If I held meetings twice a week, I should not expect them to do it every day. Maybe there can be some exceptions, but usually there aren’t any.

When I asked myself – “if I had to save the company, what would I do?”

I decided to launch daily meetings remotely via Skype.

I stopped asking myself if they do it or not. I just started doing it myself. We agreed upon the performance indicators to be observed and their best positioning on the board. Each morning managers report their situation, performance indicator and I write it down on the board.

Now I am sure that my managers involve employees into the daily process as indicators and PDCA actions reflect employee’s ideas.

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5S INTEGRATION ONTO THE DAILY MANAGEMENT BOARD

Managers often ask how to apply 5S, KANBAN and other Lean tools to the daily “Lean board”. An example of visualizing 5S auditing on the board may be given. For example, daily work of the warehouse staff starts by visitation of the warehouse zones and assessment of warehousing standard. The team having returned to the board, cover up the date box in red or green. If the warehouse is arranged in accordance with the standard, the marking is green and if not, the marking is red. If any drawbacks are found according to the standard, the team provide for rapid actions or improvements that will be done during their shift.

CUT OUT AND USE:

Such a visualization of 5S is playful and the team gets involved into its marking much easier. The tool seems to become an indicator supporting 5S: green color – the standard is followed, red color – we found standard shortcomings.

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HOW TO DISTINGUISH PCDA ACTIONS AGAINST CURRENT TASKS AND ESCALATION?

We noticed this year that PDCA actions in most cases become the list of current tasks. We tried to find and apply onto the board the tools that allow the manager to group the flow of information into current tasks, escalated problems and PDCA actions.

PDCA ACTIONS CURRENT TASKS ESCALATION

PDCA is an act by which the

team tries to improve current

situation themselves. By

performing PDCA actions we

find out and learn more about

the process. One PDCA actions

leads to another one.

For example, to improve 5S

arrangement on the first shift.

Current action is a one-time

action that must be remembered

to be performed.

This action usually does not lead

to other actions.

For example, to arrange time of

the meeting, to order printing

paper, etc.

We escalate obstacles/problems

arising during the process that

should be eliminated with the

help of other subdivisions/

departments. Escalation should

be supported by facts instead of

assumptions. For example, the

logistics department notifies

warehouse about delays in

transport arrival.

The examples provide category tables of three actions, the principle of which might be used to Your “Lean board”.

PD

CA

AC

TIO

NS

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“TO PROVIDE THE TOOLS AND TO SHOW A SAFE PATH TO CHANGES”

“Lithuanian power plant”, AB


Activity: electricity and thermal energy production, electricity trade

Practices Lean: for 2 years

Interview was given by: Head of the Process

Development Department Aušra Juodgudytė

“Lithuanian power plant” is a company of great operating history, the majority of employees have been working here for several decades and the management principles were well established. What challenges did you face when initiating management changes based on Lean system?

When I started working in the company I planned choosing some important processes, discuss them with the team, increase their efficiency and introduce them as a good example. I thought that such an example would be enough for colleagues to start improving their processes. Following my plan I realized that these some processes is just a small part in comparison with activities of the entire large company. Therefore, we were looking for a way to initiate changes as soon as possible and to arrange processes in such a manner that the managers themselves could maintain their sustainability and improve performance without waiting for the encouragement form the Processes Department. Before proposing changes to the company I identified three obstacles. The first one is closely related with the company’s specifics, people’s communication and logistics. “Lithuanian power plant” is a large company with three geographically remote production units and administrative staff working in Vilnius. Secondly, I was concerned if the managers will able to see the benefits during a short introduction period of the program. Well, and finally I was thinking if the chosen system will be long-lasting in this company, if it still be working after a year.

As I knew that employees mostly trust their immediate managers, I decided to firstly “sell” the idea to them. We let the managers start using the chosen “Lean” tools in their units independently and encouraged doing this every day. Of course, the whole team was together: we were looking for the best tools and relevant indicators together.

What people were involved into this process? What helped to increase the rate of change?

First of all, I talked with senior management and their colleagues, Lean support team. I wanted to encourage them to apply this change by avoiding confusion. I explained that we may change and the benefits of change. I assessed risks and predicted preventive actions in advance. As a result, in one unit we initiated a change working together with the managers while in another unit we had some outside assistance. Now I can say that due to this a change could take place while maintaining the company’s performance stability.

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There was no pressure, we did not ask everyone to monitor performance indicators, create identical boards, etc. A lot of time was dedicated to the managers so that they could get familiar with various visual management tools, we helped them recognize and understand what an adequate indicator is and which indicator is not worth monitoring. We encourage trying the tools and adapting them in their discretion. It takes a lot of time, but it is the only way to guarantee that the change will be sustainable.

I think that the factor of success was the involvement of unit managers, who are strong leaders. The fact that managers became the masters of this process accelerated the change across the company. It was a big discovery to me that each unit and manager had their own vision. There are no identical meetings in the company, even though we follow the agreed principles.

How did the management process change in the company in particular?

It can now be said that we have a routine of meetings. In some units morning meetings of 10-20 minutes take place daily and in some units they take place three times a week. It brings more clarity: we know clearly where we are now, we agree about our goal and most importantly we record on the board everything we have done. In this way not only the manager, but also the whole team is involved. Then the whole team sees its processes in the same manner and it helps to predict their losses and overcome process disturbance easier; if necessary, bring them to the top and get a quick response. I am glad that there is a clear feedback path and that information can easily travel from an employee to the CEO and back way.

As there are constant changes in the company, these morning meetings, daily feedback, assistance in problem solving become a safe area.

How are you going to ensure that this is safe are will remain like that? How are you going to maintain the established system?

First of all, this board routine should not become a tool of control. There is such a risk that the line may be crossed. Therefore it also becomes a matter of the culture formation. It is such kind of culture where one cannot punish, humiliated for the opinion, where all ideas are welcome and solutions are proposed, where criticism is always respected, balanced and impeccably reasoned. The Lean support team will continue to participate in the unit meetings, observe behavior of managers and teams and give feedback to the managers about how they involve or isolate the employees. We hope to help them see if an indicator is still valuable or if it may be rejected and changed with another one oriented to expectations and needs or internal or external client. So we will continue working with the same managers. After all, they are my clients.

What would you like to wish for Lean managers of the other companies?

Patience and courage, because they will have to deal with various people and situations.

There are no identical reactions or identical feedback of employees or managers. The units even have chosen different tools. So don’t be afraid to talk, sit at the same table, or even better, to stand by the board and look together with the managers and the team what is most suitable to them. Everything will not be successful immediately, but those who do not give up will succeed immediately. The determined ones will have the best ideas!

SUMMER LEANPAPER

BRAND NEW IN LITHUANIA! MINDFULNESS PRACTICE FOR MANAGERS

Today the requirements for You, the Manager, are the highest ever. You have to be able to control yourself and others and on top of this, you are also responsible for “safe” sailing of your ship in an unpredictable market. You still have requirements for your competence, entrepreneurship and employee development. As you are constantly meeting external requirements, you realize that you have forgotten your inner personal needs.

Are you familiar with the situation where:

▪ You finish your colleagues’ sentences during the meetings?

▪ You drive a car on “autopilot” passing by your destination? ▪ You forget who you are calling on the phone?

▪ You do not finish reading an e-mail and answer without

giving it too much thought? ▪ You work from holiday until holiday? ▪ Your blood pressure is too high or too low? ▪ Rushing and tension has become your natural state? ▪ How can You make adequate decisions when you are

rushing and tensed and do not have time to go deeper into the causes of problems?

MINDFULNESS at work practice helps the managers develop their vigilance and attentiveness while looking for the causes of problems as well as focus on solution of problems. At Harvard University, Mindfulness Based Stress Reduction MBSR has been practiced as a compulsory lecture for future managers, lawyers and medical practitioners since 1979 when dr. Jon-Kabbat Zinn successfully applied this program and proved by medical research that mindfulness based stress reduction is beneficial to the human brain.

OPEN PROGRAMS IN 2016 SUMMER LEANPAPER

Certification in ISO 31000 (3 day masterclasses). This course enables participants to become certified risk management professionals (Foundations level). The training and exam are based on the ISO 31000 risk management standard which can be used by organizations of any size, any industry, and any sector. Program 2016 will take place: April 20-22 in Vilnius Registration by e-mail: [email protected]

KATA COACH is an open program for all level managers.

Program 2016 will take place:

MODULE I – 6-7 October, Kaunas MODULE II – at the company of October and November participants (workplace) MODULE III – November 24, Kaunas.

Registration by e-mail: [email protected]

Three people registered will pay only for two!

Contact us:

UAB IMPROVEMENT

www.improvement.lt

[email protected]

Vilnius

Klaipeda

mailto:[email protected]


http://www.improvement.lt/

http://www.improvement.lt/



leanpaper for lean managers 2015

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