Lean Leadership

1. Lean Leadership

2. Summary of Topics to Be Covered • Understanding the impact of human relationships in the business world and how business leaders think today. • Understanding the lean challenge from a human relationship perspective • Understanding human motivation • Understanding group dynamics • Understanding Organizational Dynamics and Organizational Evolution • The Organizational Structure of Enlightened Leadership • Assessing and Fostering Teamwork in Organizations • Building Organizational Consensus and Overcoming Resistance to Change • Process Improvement and Re-engineering • Visioning • Benchmarking • Understanding Customers and What Customer Satisfaction is All About • Understanding Metric Maps • Recognizing and Rewarding Achievement • Understanding Pull System • Understanding Kanban Systems • Single Minute Exchange of Dies • What is Waste • Visual Management Systems • Lean Leadership on the Front Lines

3. The Lean Leader Code of Behavior • Implement a code of knowledge that taps the fundamental truths about human beings, organizations and processes in every industry and situation. • Embrace change and spend little time on rituals and move fast • Revel in victory, not in closing the deal! • Share commandership working within a brotherhood that values and involves all warriors. • Allow others to be creative, emotionally charged and let them gain recognition. • Never forsake your own personal joy over professional achievement. • Understand the theory of the carrot diet. • Remember that a world class organization is one that is defined as an organization that dramatically, reliably and continually increases there productivity over the long run without reducing self esteem and economic status of the people who work in these systems.

4. Today’s Business Leader Code of Behavior • Hover about the boss, but don’t be seen. • Bestow compliments on higher up bosses, but never on subordinates. • Seek additional assignments. • Learn how to politic well. • Policies and structure can fix all human behavior if they are forced to follow it. • Management by superstitious learning.

5. Three Primary Skills For Lean Leaders In Order of Priority • People Skills • Conceptual Skills • Technical Skills

6. Definition of the Skills • People Interpersonal interactions such as giving and receiving instructions,negotiating, conflict resolution, team work and group decision making. • Conceptual Skills Planning the future activities and monitoring current activities and reconciling the two. • Technical Skills Applying the set of standards and rules to solve a problem or to modify an outcome.

7. These (3)Basic Theories Must be Mastered to Create a Lean Organization • Individual Motivation and Behavior • Group Dynamics • Organizational dynamics and evolution

8. Five Basic Needs of People • Survival/Reproduction • Belonging/Love • Power • Fun • Freedom

9. Results from feeding the basic needs versus starving the basic needs Results from Feeding the Basic Needs: • Activities that benefit an organization Results from Not Feeding the Basic Needs: • Activities that compromise and organization

10. Every Behavior has (4) Elements • The physical action of the behavior. • The emotion that accompanies the behavior. • The physiological response that accompanies the behavior. • The thoughts that accompany the behavior.

11. Put People First and You Will Get Employees Who • Will be satisfied they will survive. • Will feel they belong and cared for. • Will have fun on the job. • Will feel they have control and power of situations. • Feel the have the freedom to be empowered .

12. Group Dynamics • For groups dynamics to benefit an organization,organizations must change to accommodate the basic elements of successful group behavior. • Group Behavior is driven by rules that are universal, which all people will follow. • All groups develop there own set of norms. • All groups develop a set of roles for each individual in the group. • Group Location and proximity is important. • Groups become dysfunctional with more than nine members in a group and work best when the group size is between 5-9 people.

13. Organizational Evolution • Most organizations start out as a small group working within close proximity of each other and people will develop “tight knit feeling towards each other”. • The close proximity allows the group to get to know each other every well. • The close proximity structure has shown to be were humans are most productive, secure, efficient and happy. • As organizations grow they force logical organizational changes to compensate for problems created by lack of group identity. • Layers of authority start to proliferate and sub organizations begin to build fences that separate their areas from the rest of the organization. • Without fences managers and supervisors feel the loss control and power of keeping their employees within the fence and to the ability to keep other managers out. • The enforced departmental segregation becomes damaging to the “tight knit” feeling among workers and cross functional work begins to erode. • Managers and employees begin to focus on process needs other than focusing in on the organization passion and vision.

14. Organizational Evolution “Cont” • Corporate staffs and technical experts begin to form and develop a department specific perspective and start to become isolated from the real world of product engineering, materials and manufacturing. • Upper management becomes increasingly isolated from the reality of day to day business and information begins to become filtered through the various management levels. • Top leadership will begin to surround themselves with support staff who were initially hired to help other areas but see there primary function as helping the top leadership by protecting them from unpleasant news, disturbances and irritations. • Leaders begin to fall prey to “distance related significance” and determine the validity of data according to how close the information source lies. • Lower level groups limit their efforts to sell programs because leadership listens to those most closely to them. • Lower level groups don’t want to get their projects rejected and they start to attempt to get things done without involving executive management which leads to further isolation and distrust.

15. Organizational Evolution “Cont” • Islands of group departmentalization begin to focus on the maintenance of the structure, instead of focusing on the business in itself. • Managers and supervisors start to develop relationships with a few key employees and starts to run the group through these employees. • Little teamwork and little conflict occurs because everyone has worked out a arrangement where they stay out of each others business • Key employees start to get rewarded with more status and hierarchies begin to develop with individual groups • Supervisors who start to develop an intimate relationships with team members and focuses his/her primary effort on the the team have tremendous negative career impacts for the perception that they are less managerial. • Each of the functional area groups develop similar norms, values and characteristics.

16. Act like everyone else in your group Keep your boss happy Make sure the authority figures like you Don’t make your group look bad Don’t deliver bad news Decisions are made at the top Don’t find fault; an authority figure will tell you in there’s a problem Don’t make any mistakes Characteristics of Traditional Organization Just get it done any way you can; we reward winners and punish losers Wait for someone else to act Know your place in the caste hierarchy and act accordingly Don’t make trouble with other groups, mind you own business Don’t attempt to change norms set by higher status groups, you can’t fight city hall

17. Sub Optimization Starts to Occur • When competition occurs between groups this is considered “evil” to a lean organizational effectiveness. • When there is competition, there are winners and losers. • The losers human need satisfactions of the losers do not get met. • Losers will attribute it’s losses to factors outside of it’s control and inequities will be perceived. The losing team will develop a loss of devotion and concern for the organizations goals and objectives. • When competition exist hostility between groups rises and group cooperation decreases. • Managers in the different groups begin to develop the “Abilene Paradox” which is the “failure to manage agreement”. • Group think can begin to occur in lieu of independent critical thinking.

18. Characteristics of Group Think • Intense loyalty to the group. • The group maintains isolation. • The group has little tolerance for criticism. • The group sticks with decisions in spite of bad results. • The group avoids conflict among group members. • Extreme conformity of members to the groups decision is expected. • Negative data is discounted. • Group activities are very stressful for all team members.

19. The Structure of Enlighten Lean Leadership • The challenge of a lean structure at the most basic level is to fully engage the full energy of the organization to achieve critical objectives. • Understand what makes people and groups tick and how to get them involved. • Understand the titanic forces of group and organizational dynamics working against them. • Lead in stead of being a caretaker of whatever develops. • Understand the inexorable operation of unconstrained organizational dynamics. • Outline what must be done strategically in day to day behavior to halt the evolution of a traditional organization. • Outline the first steps to begin to evolve the organization into a structure that’s focused on profit and productivity while at the same time people are fulfilled as they can be from the job they are preforming.

20. Structure of Enlighten Lean Leadership LEVEL 4 Use of the Tools, tactics, techniques and approaches for maximizing system and process efficiency and productivity ”Kaizen Events” LEVEL 3 Developing and implementing Strategies for focusing organizations for maximum productivity and empowerment LEVEL 2 Structuring the basic knowledge to engage the people in the organization “Creating the Vision” LEVEL 1 Understanding the basic knowledge upon which all human behavior efforts must be based

21. Level 1 Key Elements • The leader applies what he/she knows to make things happen. • Every element of the organization and the working environment is engineered to get the most out of the people by giving them optimal opportunities for work related need satisfaction. • Build a single, comprehensive and integrated system that compliments the basic dynamics of human beings.

22. Level 2 Key Elements • Develop the transition of the facts and relationships of level one into a set of consciously developed and internalized management and leadership principles and metrics. • Develop and enlighten philosophy of work belief within the leadership that the overwhelming majority of people, if given leadership, respect. • Provide opportunities for need satisfaction and a worthwhile goal that employees will attempt to succeed. • Develop a understanding of rapid adaptation to change. • Develop a visionary application of beliefs, expectations and direction that focuses everyone in the organization on critical objectives in an effective manner.

23. Level 3 Key Elements • Value people first • Pursue Continuous Improvement • Focus on Micro processes • Create lean organizational structures

24. Level 4 Key Elements Implement the Lean Tools, Tactics, Techniques and approaches for maximizing system and process efficiency. • Metric Maps • Pareto Charts • Check Sheets • Focused Communicated Planning • Consensus Decision making • Flow charts • Structured team oriented problem solving • Process re-engineering • QFD • One by one piece flow • SMED • DOE • SPC • Extensive Sharing of Cost and Performance data at all levels • Pokayoke • Empowered, well trained employees • FMEA • Concurrent Engineering

25. Properly lead people who want to work hard Competition within the group or organization is never encouraged Work groups are encouraged to work closely with other groups Disagreements are not bad, they surface issues that are not yet resolved Management stays close to workers on all dimensions (minimize propinquity) Decisions are made at the appropriate level Strong bonds are encouraged within work groups Characteristics of Lean Organization Work is organized around small groups Sub optimization is minimized through relentless and constant communication across all groups Managements role is to coach, teach, plan, communicate and lead, not make decisions for employees about their processes. Hierarchical status is minimized (ischeal tuberosites are seldom displayed) People feel good about achievement and must be given opportunities to excel

26. Assessing and Fostering Teamwork • Understand the difference between groups and teams. • Know the difference between Intact and Ad hoc teams and how they should be treated different. • Focus and educate the teams on the interpersonal side of teamwork. • Understand the stages of team development. • Understand the characteristics of an effective team. • Understand the impacts of the team efforts on group processes. • Make sure the team has defined measurable to achieve. • Diagram team communication. • Institute a team balance index system. • Institute a team directionality/responsiveness Index. • Develop a team communications profile. • Reward the team for job’s well done and objectives accomplished.

27. Building Organizational Consensus and Overcoming Resistance to Change • Understand the (3) key natural progression steps of organizational change • Equilibrium • Chaos • Reintegration

28. Building Organizational Consensus and Overcoming Resistance to Change (cont) • Read case studies on how resistance to change was overcome at other companies. There is no one single answer. • Understand what organizational consensus is. Organizational Consensus is when: • Employees understand a situation • Employees have been listen to by others in a group where the individuals have given there input • When employees listened to others • When team members agree to support whatever the team decides • When the team or group agrees to support the decision, not because it agrees with it, but because each member is committed to the group itself

29. (2) Key Elements to Successful Process Improvement • Process Improvement is best accomplished when the focus is on improving micro processes day in and day out. • Process Improvement requires a proactive attitude approach to problem solving versus results orientation approach

30. Process Elements • People • Information • Materials • Machines • Computers • Energy • Policies • Procedures • Skills • Forms • Environment • Corporate Culture Inputs Events Outputs Work Motion System Changes Changed Materials Finished Products Scrap New Information New Systems Less energy

31. Processes Prevent problems Planning, Patience Evolutionary Employees Do Small Steps Everybody Helps Characteristics of Process versus Results Orientated Attitude Results Fix Problems Fight Fires Revolutionary Management Does Giant Leap Dirty Harry Syndrome

32. Types or Levels of Processes • Mega Processes ( Label for a collection of Macro Processes) • Macro Processes (A Process that has a Few Thousands of Micro Processes) • Micro Processes (Small Processes)

33. How are Mega and Macro Processes Improved? • By letting the micro process workers define the micro process details. • By letting the micro process decision making to be done by only those who know enough to do it correctly, the micro process workers.

34. Facts about Processes Improvement? • Processes are improved or changed on a continuum. • Process changes will effect both micro and macro process systems. • Process improvement happens step by step.

35. Micro Process Orientation (Management Leads/Employees Do) Focus organization on low technology and conventional methods. Small constant improvements, attention to detail, focus on adaptability. Management teaches and coaches empowered employees while focusing on the next source of mega process innovation. Values people and group effort and insures that the use of teams and groups are the basis for on-going improvement. Paradigms of Leadership Styles Micro Process Oriented versus Macro Process Oriented Macro Process Orientation (Management Does) Focuses on high technology and cutting edge methods. Grand plans with disruptive changes, focus on management creativity. Employees treated as worker drones who must be controlled and watched while management brainstorms salvation. Looks to technology for big gains, prefers to buy answers rather than eat carrots.

36. Difference Between When Process Improvement Becomes Re-Engineering • When the change begins to impact both micro and macro processes units. • When changes move beyond affecting only the elements of a single process or two. • Reengineering is more associated with management led, but worker implemented wholesale changes in macro processes.

37. (2) Philosophies of Dealing with Errors • Wait for them to occur and then react • Implementing a defect prevention approach to attack errors before the occur

38. How to Implement a Defect Prevention Values in Your Organization • Planning ahead to design your product or service for low cost, high quality, defect free manufacture for delivery. • Rigorously training employees in job skills so they will not make technical errors. • Continuously focusing on the elimination of all sources of micro process errors and flaws. • Working to improve the overall efficiency of the total system.

39. How to Implement a Defect Prevention Values in Your Organization • Planning ahead to design your product or service for low cost, high quality, defect free manufacture for delivery. • Rigorously training employees in job skills so they will not make technical errors. • Continuously focusing on the elimination of all sources of micro process errors and flaws. • Working to improve the overall efficiency of the total system. • To design the organizational structure to demand, expect, coach, structure and facilate each and every employee to find ways to more effectively preform day to day processes. • Don’t denigrate the impact of cumulative small improvements on competitiveness and defect elimination.

40. True Employee Empowerment From A Enlighten Lean Leader Perspective • Providing employees with the resources necessary to pursue Continuous Improvement. • Allowing employees to be involved in decisions that affect their work areas and jobs. • Allows all levels of employees to have autonomy to make the appropriate decisions about their micro processes. • Providing the employees with the training and coaching needed so that their technical and interpersonal skills are at the top of the level to excel in their jobs. • To treat employees with the same respect and assumption of intelligence and motivation that management accords to itself .

41. Enlighten Problem Solving • The use of Deming's Plan, Do Check Act Cycle. • Understanding that Problem Solving and Process Improvement is a never ending cycle. • All process changes must be carefully planned (PLAN), tested (DO), evaluated (CHECK) before they are implemented (ACT).

42. Plan-Do-Check-ActIt’s a (12) Step Plan (1) Key Step Act Plan (9) Key Steps (1) Key Step Do Check (1) Key Step

43. Plan-Do-Check-ActIt’s a (12) Step Plan Not a (4) Step Plan!!! • Identify Outputs • Identify Customers • Identify Customer Requirements • Translate Customer Requirements to Specifications • Flowchart the “As Is” Work Flow • Identify the Key Parameters and Select Metrics • Determine Process Capability • Identify Benchmarks • Identify Improvement Opportunities • Implement Improvements on a Test Basis • Evaluate Effectiveness • Institutionalize Improvements and or Cycle Back to Step (9)

44. The (7) Quality Control Tools That are Used with The PDCA System for Process Improvement • Run Charts • Histograms • Control Charts • Cause and Effect Diagrams • Flowcharts • Pareto Charts • Scatter Diagrams

45. Process Improvement “Poka-yoke” Concepts • The incorporation of devices in a process that detect-sense and identify errors before they occur. • Have an assumption that a re-occurring error has either happened or will happen. • Focus on predicting the occurrence of the error before it occurs so corrective action can be ready and waiting. • Always provide a warning that an error is occurring so that immediate response is possible.

46. Types of “Poka-yoke” Devices Used Guide pins Limit Switches Timers Photocells Checklist Alarms Shut Off Switches Left Over Part Baskets Scales Counters Templates Knock Out Jigs

47. Visioning • The plan that outlines the transformation from management by crisis to enlightened leadership at some indeterminate but foreseeable future. • A currently conceived end sate of the organizations hopes and dreams. • A statement to provide employees with a personal, emotional connection to the bigger picture of what the organization is striving to achieve. • Something that allows the employees to stretch and make the emotional connection so they can connect it with a “Pride of Ownership”. • Unique to every organization as there is no one exact approach that right for every situation, organization, industry or leader.

48. Recommended Steps to Follow When Implementing a New Company Vision • The vision is not required to have immediate implementation when management changes. • The Leader must first bring the compassion for other people, before outlining the vision. • The leader must understand the battle to be fought before designing his/her army. • The vision must be connected to the day to day operation • The vision should be defined and stated to employees about six months after taking over and organization. • The vision should not be judged not on it’s wording, grammatical correctness or inspirational content but on how well it becomes accepted, assumed and practiced element of the organizational culture, management system and leadership philosophy.

49. Key Characteristics of a Good Vision • It’s demonstrated by the behavior of the leaders and employees. • Behavior that supports the vision is rewarded. • It is Emotionally Inspiring. • It creates Group Belonging and Need Satisfaction. • It Demands Excellence. • It provides guidance for Behaviors in Unforeseen Situations and Empowers Employees to Act. • It is connected to the marketplace and its Customers. • It is enduring but not flexible. • It must recognize that the organization is full of hard working, creative, determined people who are just waiting to be lead to excellence. • The must be a realization that the organization the vision is to be presented to is rife with cancer of traditional management.

50. Key’s To Making Vision Work • Ensure that you have examples of the unspoken vision in action and reward and praise them loudly, prominently and aggressively. • Be consistent in rewarding new vision supporting behaviors. • Discourage and punish counter vision behaviors immediately and consistently from day one. • Get honest feedback as to how well the leader is “walking the walk” after having “talked the talk”. • Look for two or three outspoken radicals for feedback as they are usually brutally candid, cannot suppress candor and will even risk alienating executives. However these folks usually see a lot at a very real level and are not afraid to talk about it. • Meet with employees in small groups on a regular basis to obtain feedback. • Go out into the organization and give short informal five to ten minute campaign “stump speeches” to various groups in the organization to share the vision.