Lean leaning leadership

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Lean leaning leadership

• A Managers role in implementing and sustaining
  continuous process improvement

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Summary

• Ultimately, what Lean/CI yields in organizations
  is
• Improved service delivery reduce time, improving
  quality (i.e reduced defects)
• Improved employee morale
• Increase capacity
• Without the addition of people, equipment, or
  space
• To create and sustain a Lean/CI culture requires
  the knowledge and commitment of the leaders of
  the organization.

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Is it improvementor just change?

• All the empowered, motivated, teamed-up,
  self-directed, incentivized, accountable,
  re-engineered, reorganized, or reinvented people
  you can muster, cannot compensate for a
  dysfunctional system.
• Peter Scholtes
• The Leaders Handbook

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Implementing Lean

• Lean is a set of tools, but more importantly
  it is a philosophy that leaders must learn,
  exhibit and communicate to create and sustain a
  culture of continuous process improvement.

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Creating a culture

• Changing habits, behavior, and the way your
  people think

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Culture exists on three levels

• Espoused values what leaders say (mission,
  vision, values, etc.)
• Artifacts What kinds of behaviors are punished
  or rewarded, encouraged, ignored or tolerated.
  How do leaders behave?
• Assumptions the unwritten rules that usually
  evolve from a combination of espoused values and
  artifacts

We change culture by action at the top two levels
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Espoused Values What do we tell our people

• What you say matters
• How you say it matters
• Bringing about a transformation of culture is not
  the business of a program its the business of
  leaders
• So what are your core values?
• Do people know what your core values are?

You wont change culture flying under the radar
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Artifacts What do people see?

• Action Do your actions match your words?
• Accountability Do you hold yourself
  accountable? Do you hold others accountable for
  those things that are their responsibility?
• Role-modeling - Do you demonstrate that learning
  and reasonable risk-taking are important to you?
• When something goes wrong, do you examine the
  process first, or immediately look for who
  screwed up?
• What types of people get promoted?

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Shared assumptionsour culture really is..

• This is the most powerful level of culture
• Unwritten rules are very slow to change
• Change comes from consistent, meaningful espoused
  values, and different behaviors starting with
  you
• The change you want to see in your area of
  influence starts with you.

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Organizational Culture
The Organizational Culture exists where the
assumptions of its members overlap. This is what
makes culture change difficult and so powerful.
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Shared Assumptions are the DNA of Cultures
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Organizational Culture
Relatively Strong Culture
Relatively Weak Culture
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Changing assumptions

• Adults are big kids role-model the behavior you
  expect to see from your employees
• If something goes wrong, first understand what in
  the process contributed to it.
• Stop being Ranger Rick, and start being Smokey
  the Bear
• Personally challenge the status quo
• Leaders must learn, do, teach

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Changing assumptions

• Learn and apply the 5 whys
• Learn how to measure process performance, as well
  as process outputs.
• Hold people accountable stop enabling bad
  behavior. This is where the rules get validated
• Reward thoughtful risk takers these are the
  people you promote
• Understand the essential work of management

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What is the work of management?
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Three definitions of work in a Lean world

• Value-added work that directly creates value
  for a customer
• Incidental essential work that is necessary so
  others can perform value-added work
• Non-value added work that neither directly
  creates value for a customer, nor is incidental
  to performing value-added work

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What many modern managers do.

• Very small amounts of value-creating work
• Vast amounts of incidental work annual plans,
  budgets, hiring staff, performance reviews,
  information sharing meetings
• Vast amounts of non-value added work rework
  (fixing and/or explaining process variations aka
  defects, meetings without clear objectives or
  specified outcomes, elaborate policy decisions
  without understanding the implications to
  existing processes, etc. etc. )

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Modern vs Lean

• Strong focus on vertical functions and
  departments, as mechanisms for control and
  organization

• Strong focus on the horizontal flow of business
  processes (the value stream) across many units

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Modern vs Lean

• Clear grants of managerial authority by leaders
  to the next level of the organization (vertical
  downward delegation)

• Clear grants of managerial responsibility from
  managers to the next higher level to solve
  cross-functional, horizontal problems within a
  vertical structure (upward delegation)

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Modern vs Lean

• Front line supervisors judged on end-of-process
  results only

• Front line supervisors judged on the performance
  of their process
• If the process is right, the results will be
  right

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Modern vs Lean

• Decisions made by managers far from the point of
  value creation, by analyzing data (usually only
  end-of-process data)

• Decisions made at the point of value creation (Go
  see, ask why do the Gemba walk)

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The value creating work of Lean leaning managers

• Gain agreement on what is important (usually
  senior leaders)
• Create brilliant lean processes to achieve whats
  important (usually mid/upper level managers
• Create stability and then continuously improve
  every process (front line managers)
• Mentor and support subordinates, vigorously
  attack value stream roadblocks and waste (all
  managers)

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Internal controls QA vs. QC

• Do we build, manage and monitor processes to
  produce predictable, consistent, desirable
  results? (i.e. the more complex a process the
  more likely it is to produce undesirable results)
• Or do we assume all processes will deliver
  defects, and attempt to assure quality by
  end-of-process inspection?
• One of Demings 14 points is to work tirelessly
  to eliminate the need for mass inspection of the
  output.
• Statistically sample the input, and utilize
  in-process measures, to predict outputs, and
  reduce the need for mass inspection.

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Common Cause vs. Special Cause

• Common cause variation are errors/defects that
  relate to a short-coming in the process, or the
  inputs to the process. They can be predicted.
• Special cause are those defects that lie outside
  the input, or process structure, and usually are
  not predictable.
• Changing the process in response to special cause
  events will not eliminate the potential for
  defect, in fact it will usually create more
  common cause problems

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Questions?