Lean Leadership

Ken Flaherty

| San Diego, CA | February 24, 2014

Anchoring Organizational Values to Lean Principles

Agenda and Objectives

2

Introduction

Lean Transformation – Bridging the Gap

Anchoring Values to Lean Principles

Lean Leadership

Role of A Lean Leader

Managing for Daily Improvement

Q& A

Meeting ObjectivesToday’s Agenda

Understand what needs to change

Understand what to change to

How to cause the change

Closing the Gap

Culture Enablers

GUIDING PRINCIPLES SUPPORTING PRINCIPLES

Measure what MattersAlign Behaviors with PerformanceCreate Value for the CustomerIdentify Cause & Effect Relationships

See RealityFocus on Long TermCreate Constancy of Purpose Enterprise Align SystemsThink Systemically Alignment Align Strategy ?

RES

ULT

SStabilize ProcessRely on DataFocus on Process Standardize ProcessesEmbrace Scientific Thinking Insist on Direct ObservationContinuousFlow & Pull Value Focus on Value StreamImprovementAssure Quality at the Source Keep it Simple & Visual

Seek Perfection Identify & Eliminate WasteIntegrate Improvement with Work

Empower & Involve EveryoneLead with Humility Cultural Enablers Develop PeopleRespect Every Individual Assure a Safe Environment

“Ideal behavior”

“Idea

l beh

avior

”

GUIDING PRINCIPLES SUPPORTING PRINCIPLES

Measure what MattersAlign Behaviors with PerformanceCreate Value for the CustomerIdentify Cause & Effect Relationships

See RealityFocus on Long TermCreate Constancy of Purpose Enterprise Align SystemsThink Systemically Alignment Align Strategy

RES

ULT

SStabilize ProcessRely on DataFocus on Process Standardize ProcessesEmbrace Scientific Thinking Insist on Direct ObservationContinuousFlow & Pull Value Focus on Value StreamImprovementAssure Quality at the Source Keep it Simple & Visual

Seek Perfection Identify & Eliminate WasteIntegrate Improvement with Work

Empower & Involve EveryoneLead with Humility Cultural Enablers Develop PeopleRespect Every Individual Assure a Safe Environment

Leaders are rounding in the work place looking for opportunities to coach to a structured problem solving methodology

Managers share improvements & countermeasures to problems in other areas to minimize rework

Staff signal problems immediately and swarm to solve using a standard approach

DIGNITY EXCELLENCE SERVICE JUSTICE

PRINCIPLES OR VALUES ?

Measure what MattersCreate Value for the Customer Align Behaviors with Performance

Identify Cause & Effect Relationships

See RealityFocus on Long TermCreate Constancy of PurposeSERVICE Enterprise Align SystemsThink Systemically Alignment Align Strategy

Stabilize ProcessRely on DataFocus on Process Standardize ProcessesEmbrace Scientific Thinking Insist on Direct ObservationContinuousEXCELLENCE Flow & Pull Value Focus on Value StreamImprovementAssure Quality at the Source Keep it Simple & Visual

Seek Perfection Identify & Eliminate WasteIntegrate Improvement with Work

RES

ULT

S

Empower & Involve EveryoneLead with Humility Develop PeopleDIGNITY Cultural EnablersRespect Every Individual Assure a Safe Environment

ANCHORING

TEAMWORK(value)

IDEA SUGGESTION(system)

FOCUS HERE

behavior behavior “Ideal behavior”behavior behavior

TOOLS

SYSTEMSPRINCIPLES

Behavior can be…Frequency

• Observed Duration• Described Intensity

Scope• RecordedRole

Lean Leadership Model

3 Support Daily KaizenBuild local capability throughout for daily Management & Kaizen

2 Coach and Develop Others

4 Create Vision and Align Goals

Create True North visionand align goals verticallyand horizontally

1 Commit to Self DevelopmentLearn to live True North values through repeated Learning Cycles

TRUE NORTHVALUESChallenge

Kaizen MindGo and SeeTeamworkRespect

PD

CA

PD

CA

PD

CA

PD

CA

See and challenge true potential in others though self-development learning cycles

Let’sStartHere

Where is Your Time Spent

TopManagement

MiddleManagement

Supervisor

Front LineAssociate

Strategic Implementation(Breakthrough)

DailyManagement

Kaizen

0% 25% 50% 75% 100%

Percent of Time

Where is Your Time Spent

0% 25% 50% 75% 100%

Percent of Time

Physicians Face to Face with Patients

Administrative Functions

What Lean Leaders Need to Learn

• Managing from where the work takes place (gemba)

• Developing themselves and others– Live the core values and principles (example;

respect for people and continuous improvement)– Manage effectively from the gemba– Become a role model for discipline problem

solving– Become a teacher and coach for disciplined

problem solving

Daily Management System

• What is your daily system for:– Understanding performance?– Modeling principle based behavior– Seeing waste and eliminating waste? – Discovering problems and resolving

problems? – Continuously improving?– Coaching and developing staff?

Elements of a Daily Management System:

• Visual Controls

• Leader Standard Work

• Managing Daily Performance

• Managing Standard Work

• Daily Problem Solving and Continuous Improvement

• Employee Suggestion System

• Start Up Huddles and Escalation Systems

• Gemba Walks

• Developing People / Coaching

Putting it All Together

12/12 – Held 2 day leadership forum (Provided focus by developing 3 Wildly Important goals from 12/12 to 6/13)

01/13 – Provided lean fundamental training to entire staff (200 plus)

01/13 – Implemented an HHA Operational Counsel that meets weekly

02/13 – Built operational daily indicators that directly align to our focus. Building engagement centers

1. Create a Safe and engaging work environment for our staff

2. Give the most Effective care to our patients

3. Deliver our service in the most Efficient way

17

SEE

WIGS

Wig #1: Create a daily engagement system from 0 to 100% of all core departments by 6/30/13

Wig #2: Develop the capability to case manage all patientsFrom 5% to 100% by 6/30/13

Wig #3: Improve revenue capture from a monthly -200k to 0by 6/30/13

A Home Health Turn Around

Alignment & Focus

EMT weekly operationalhuddles

Daily staff operationalhuddles

Lagging

Indicators that

support the goals

Leading

Indicators that

support the goals

Questions?Ken Flaherty

kenf@emsstrategies.com