Lean Culture

1. Lean Culture Organizational Readiness

2. Your Time to Relax

3. What is Organizational Culture? “The sum of habits people rely on to get things done. Culture also sums up things a member of a work group needs to know to comply with in order not to be seen as deviant by other members”-Creating a Lean Culture by David Mann The way we do things around here!

4. Share… What are some of the habits that describe your organization's culture?

5. Questions That Help to Define Culture What metrics tell task experts that they are meeting expectations? How often does management look at the status of work metrics? Who is involved in process-improvement activities in this area? What is the typical response when problems arise?

6. Why…. ….does culture need to change in a lean enterprise? Not because lean is so difficult but because lean is so different.

7. Cultures Contribution to Lean

8. Traditional versus Lean Culture:Primary Business Traditional Lean • Product-centric strategy • Focus on exploiting economies of scale of stable product or service • Customer-focused strategy • Focus on identifying and exploiting shifts in competitive advantage

9. Traditional versus Lean Culture:Organizational Structure Traditional Lean • Hierarchical structure along functional lines • Encourage functional alignments and following orders • Inhibits information highlighting deviations • Flat, flexible organizations along line of value creation • Encourages individual initiative • Encourages flow of information that highlights deviations

10. Traditional versus Lean Culture:Operational Framework Traditional Lean • Application of tools along division of labor • Follow orders • Few problem-solving skills • Application of tools assuming standardized work • Strength in problem identification, hypothesis generation, and experimentation

11. Traditional versus Lean Culture:Work Status Traditional Lean • Checked at end of shift • Checked by supervisor, higher level managers • Scrutinized monthly • Checked by team leaders several times per hour • Checked by supervisor four or more times per shift • Checked by Value Stream Manager once or twice per shift • All involved review previous day’s performance

12. Traditional versus Lean Culture:Process Improvement Traditional Lean • Made by technical project teams • Changes must be specifically “chartered” • No changes between “official” projects • Routinely initiated by anybody, including task experts • Regular, structured vehicle encourages both input and involvement • Improvement occurs more or less all the time, continuously

13. Mass versus Lean Culture:Problem Solving Traditional Lean • Do whatever it takes to take care of today’s numbers • Work around the problem; just meet the daily/weekly/monthly goals • Record immediate circumstances of the miss, interruption or breakdown • Put temporary countermeasures in place • Assign tasks to eliminate root cause of problems

14. Evaluate Which characteristic represents the greatest gap in your organization between current culture and lean culture? Working with partners identify specific actions that might be taken to close the gap.

15. Cultural Inertia “A body in motion tends to stay in motion” In what ways does culture tend to become self-sustaining within an organization? What happens to those in the organization not following the norms of the culture? What hints might this offer to changing culture?

16. Remember….. Just as a pig with lipstick is still a pig… ….an organization with a traditional culture using lean tools is still a traditional organization.

17. Questions…. How many of you have quit smoking or another habit? How many of you have quit only once? Why were initial efforts defeated?

18. Consider…. The same is true in changing habits of a traditional organization: • Breaking a habit implies sudden change, often with minimal or no support • Extinguishing a habit implies planned, paced change with ongoing support, and a clear new habit to replace the old habit

19. Remember… …..when problems arise or when confronting the first sign of trouble people will revert to old habits.

20. Habits That Are Difficult to Extinguish • Focus primarily on department efficiency and performance metrics. • Look to lay blame or “find the guilty party” when errors occur or problems arise. • Discuss performance metrics primarily with peers or “up” the organization. • Require task experts to work within their job descriptions and strictly adhere to chain of command. • Work around today’s problem and let tomorrow take care of itself. • Leave improvement to experts instead of listening to task expert suggestions.

21. Share…. What is the most difficult habit for your organization to extinguish? Why is this the case? What habit needs to replace it? How can change to new habit best be supported?

22. Defining a Lean Culture • Maintaining an unrelenting focus on providing customer value • Adopting a philosophy of continuous, incremental improvement • Providing exactly what is needed at the right time, based on customer demand • Keeping things moving (flow)-in a value-added effective manner • Using techniques for reducing variation and waste • Respecting people • Taking the long-term view Lean Culture

23. Share…. ….to what extent do these characteristics define your current culture? Lean Culture

24. Lean Culture Process Focus

25. Traditional Approach

26. Systems Approach Process A Process B Process C

27. Traditional versus Lean Focus Traditional Lean • Independent • “Leave me alone” • “We do whatever it takes to get the job done, I know who to rely on in crunch time • “I define my own methods”

28. Traditional versus Lean Focus (continued) Traditional Lean • Results are the focus, do what it takes • Managed by the pay or bonus system • Improvement is somebody else’s job, not mine

29. Traditional versus Lean Focus Traditional Lean • Independent • “Leave me alone” • “We do whatever it takes to get the job done, I know who to rely on in crunch time • “I define my own methods”

30. Traditional versus Lean Focus Traditional Lean • Independent • “Leave me alone” • “We do whatever it takes to get the job done, I know who to rely on in crunch time • “I define my own methods” • Interdependent

31. Traditional versus Lean Focus Traditional Lean • Independent • “Leave me alone” • “We do whatever it takes to get the job done, I know who to rely on in crunch time • “I define my own methods” • Interdependent • “I’m part of a team

32. Traditional versus Lean Focus Traditional Lean • Independent • “Leave me alone” • “We do whatever it takes to get the job done, I know who to rely on in crunch time • “I define my own methods” • Interdependent • “I’m part of a team • There’s defined process and procedure for pretty much everything, follow the process

33. Traditional versus Lean Focus Traditional Lean • Independent • “Leave me alone” • “We do whatever it takes to get the job done, I know who to rely on in crunch time • “I define my own methods” • Interdependent • “I’m part of a team • There’s defined process and procedure for pretty much everything, follow the process • Methods/procedures are standardized

34. Traditional versus Lean Focus (continued) Traditional Lean • Results are the focus, do what it takes • Managed by the pay or bonus system • Improvement is somebody else’s job, not mine

35. Traditional versus Lean Focus (continued) Traditional Lean • Results are the focus, do what it takes • Managed by the pay or bonus system • Improvement is somebody else’s job, not mine • Process focus is the key to consistent results

36. Traditional versus Lean Focus (continued) Traditional Lean • Results are the focus, do what it takes • Managed by the pay or bonus system • Improvement is somebody else’s job, not mine • Process focus is the key to consistent results • Managed by expectations

37. Traditional versus Lean Focus (continued) Traditional Lean • Results are the focus, do what it takes • Managed by the pay or bonus system • Improvement is somebody else’s job, not mine • Process focus is the key to consistent results • Managed by expectations • Improvement is everyone’s job

38. Share…. …..Where does your organization lie along the continuum? Why did you place the organization where you did? Lean Focus Traditional Focus

39. Something to Think About Why all the focus on process with lean; after all isn’t it results that pays the bills?

40. Capabilities of Lean • Capability #1: Work is designed as a series of ongoing experiments that immediately reveal problems • Capability #2: Problems are addressed immediately through rapid experimentation • Capability #3: Solutions are disseminated adaptively through collaboration • Capability #4: People at all levels of the organization are taught to become experimentalists Source: Lean Hospitals, Mark Graban

41. Capabilities of Lean • Capability #1: Work is designed as a series of ongoing experiments that immediately reveal problems • “Work is designed” means that work is not random, inconsistent, or haphazard, but is standardized • Standard work does not mean carved in stone, instead it means best known method currently known with expectation for frequent changes • Problems and non-standard work becomes highly visible Source: Lean Hospitals, Mark Graban

42. Capabilities of Lean • Capability #2: Problems are addressed immediately through rapid experimentation • Work arounds to mask the problems should be discouraged • When a problem is discovered it should be addressed immediately, at the source • A structured but simple approach (PDCA) is used to quickly address the problem Source: Lean Hospitals, Mark Graban

43. Capabilities of Lean • Capability #3: Solutions are disseminated adaptively through collaboration • Successful solutions in one unit must be shared across the organization • A mechanism for ongoing and rapid collaboration needs to be created • Collaboration can extend to other providers Source: Lean Hospitals, Mark Graban

44. Capabilities of Lean • Capability #4: People at all levels of the organization are taught to become experimentalists • Problems should be addressed and solved at the lowest level of the organization possible • Problem solving and team dynamic skills need to be developed Source: Lean Hospitals, Mark Graban

45. Consider…. What actions could your organization take to overcome identified challenges to developing the lean capabilities in your organization?

46. Elements of Lean Management System Standard Work Daily Accountability Visual Controls Discipline

47. definitions Value Stream: The flow of materials and information through a process to provide a product or service to a customer; including operations and equipment needed. Value Stream Manager: In an organization structure designed most fully to reflect lean philosophy, all the support groups related to making a value stream operate would report on a solid line to Value Stream Manager.

48. Value Stream Approach Value Stream A VSM A Value Stream B VSM B Value Stream C VSM C

49. Value Stream Approach Value Stream A VSM A

50. Create… …an organizational chart for your organization that incorporates a Value Stream Manager