Introduction to Lean leadership Masterclass by David Brunt

www.leanuk.org

David Brunt

Lean Enterprise Academy Workshop

Introduction to Lean Leadership

Lean Enterprise Academy1

www.leanuk.org

PurposeHelp leaders develop organisational & individual capabilities to sustain and expand lean transformation.

“Introduction to Lean Leadership” Articulate and engage leaders in understanding

the fundamentals of lean thinking and lean transformation process, and their role in taking an organisation to the next level

Engage leaders in thinking about their business problem situation and their role in addressing it

2 Lean Enterprise Academy

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Reflect on org.’s efforts to implement lean -actions & results; Did results match expect’ions?What worked and what didn’t work? What did the organisation learn?

Understand the nature of lean as a methodology of problem solving that helps organisations learn & develop capabilities for growth & improvement

Identify gaps between the current state of the org’n & the desired state

Reflect on individual efforts to implement lean

Understand the key roles, mindsets, behaviors & assumptions of lean leaders that support dev’t. of a sustainable culture of problem solving

Identify gaps between the current roles, mindsets, behaviors & assumptions & those of a lean leader


Reflection

Learn/ Target condition Gap Reflection

Learn Target

ConditionGap

How to close leadership & org.

gaps?

ORGANISATIONAL LEAN JOURNEY

INDIVIDUAL ROLES OF LEADERS

Programme Flow

OUTCOMESReview your gap statements, both organisational & personal, & identify one critical gap in each category. Describe:What you know about the gap & how you know it. What you need to learn about it & how you can learn it. Go back to your organisation & understand the gaps. Identify at least one new behavior that you will start practicing using PDCA.

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Introductions & Expectations

Who you are Your role Where you are in your lean journey (how long have you

been at it?)

Justgettingstarted

Somepractice

Practicingfor

some timeThis workshop will have

been a success & made good use of my time if…


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Ground Rules to make today a Success

Learning requires openness Sharing requires confidentiality What’s said in this room remains in

this room


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Reflection:Organisational Improvement Journey

Facilitated discussion guided by questions: What is your organisation’s purpose? What do your customers want that you are not

currently able to provide? What does your organisation need to survive and

prosper? What is your current strategy? How are the goals of the organisation deployed?


Reflection


Learn Target

ConditionGap


gaps?



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Organisational ReflectionWhat is your organisation’s purpose?

What do your customers want that you are not currently able to provide?

What does your organisation need to survive and prosper?

What is your current strategy?

How are the goals of the organisation deployed?


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Lean Organisation: Defining the Target for

Organisational Development

Facilitated discussion guided by questions: Discussion about various strategies companies use

to grow Introduction to the Purpose-Process-People model

of the lean organisation


Reflection


Learn Target

ConditionGap


gaps?



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Time

Perf

orm

ance

Training – lean experts?Tools – menu kit?System – point kaizen?

Let’s Talk about Your Experience Applying Lean or Other Improvement

Methodologies…


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Time

Perf

orm

ance

How do we Take a Company to a New Level of Performance?

Question: What needs to change in order to move the entire organization to perform above the limit line?


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What Strategies Do Companies Use to Continue Growing and Improving?

Reorganizing

What problem(s) are we addressing with these solutions?


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Are the efforts Focused on the Right Problem(s)?


Customer Delivery Value Stream

Your Company Your CustomerYourDelivery

Product orService

MeasurementsQuality

Customer satisfactionDelivery On time

Lead time, frequencyCost

SafetyMorale

Customer

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Purpose

People Process• Horizontal flow of value at

the pull of the customer• Workplace Management

through standardization & Visualization

• Relentless elimination of waste, overburden and unevenness

• Lean Tools applied as appropriate

Employees:• Engaged and involved

in CI• Continuously solve

problems• Teamwork

Managers:• System thinkers• Problem solvers• Learners• Teachers/Coaches

Vision/ValuesTrue North

Line of SightStrategy Formulation and

Deployment

Lean Management System

PDCA A3 Thinking

® Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved.

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The Lean Organization -Purpose

PDCA A3

Thinking



Deployment

Purpose

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Lean Vision & Values

5 Lean Thinking Principles Mutual respect and long-term

prosperity (employees, company, customer, community) “Customer first” focus Continuous Improvement (Kaizen) Never knowingly pass a defect to the

next process Problems are treasures Genchi Gembutsu (“go see for yourself”)Lean Enterprise Academy17

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True North

What it is A short phrase that

expresses the vision (hoshin)

It must have emotional impact

It must be accompanied by numerical targets

It must come out of our experience (visited customers,shopfloor, analysed data, SWOT, – grasp the situation)

It is a contract, not a wish list or marketing It expresses business needs that MUST be met; DRAWS people to action


Purpose

CurrentPerformance

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Having a Line of Sight to the Company Goals

What is the ultimate goal of your work? Understand what makes

your job “value creating” to the company—does it relate to the company’s goals and key performance indicators (Quality, Safety, Productivity and Cost)?


Responsibilities Purpose Guiding Goals Company’s Goal


Society

Economy

CompanyGroup

Self

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Strategy Formulation & Deployment


Neede.g. FocusAlignment

Quick Response

1. Agreement on the “True North”The company’s strategic &

philosophical goal6. A3 Thinking – Thestorytelling

approach to planning

5. Deployment leaderconcept

4. Catchball – for focus

2. PDCA – the scientificmethod

3. Management process –comprising micro, annual

& macro PDCA cycles




Deployment

Purpose

PeopleEmployees:

• Engaged and involved in CI

• Continuously solve problems

• TeamworkManagers:

• System thinkers• Problem solvers

• Learners• Teachers/Coaches

Lean Organization -Process

PDCA A3

Thinking

Process• Horizontal flow of value at the pull

of the customer• Workplace Management through

Standardization & Visualization• Relentless elimination of waste,

overburden and unevenness• Lean Tools applied as appropriate


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Horizontal Flow of Value:Value Stream


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Workplace Management through Standardization & Visualization

When a Standard is created the foundation of a Process is present Awareness of Standard

(Expectation, Plan, Objective, Goal) by EVERYONE

Awareness of Actual Situation not meeting the Standard (Problem)

Elevation of Problem to increase visibility (no problems hidden) and provide Support

Combined effort to correct and improve


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Waste, Overburden & Un-evenness

Muri

Mura

Unreasonable burden on people or

machines…

Un-level workloads on people or machines...

Muda


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Lean Tools Tools of standardization (help

create standard in order to make problems visible) 5S, level scheduling, kanban system

Tool of analysis (used to understand the root causes of problems) VSM, spaghetti diagram, fishbone diagram

Tools of countermeasure (eliminate root causes) A3, PDCA

Tools of sustainability (help maintain standards) Visual mgmt, PDCA,

The role of tools is to support the implementation of concepts and effectively reveal and solve problems




Line of SightStrategy

Formulation and Deployment

Purpose

Lean Organization -People

PDCA A3

Thinking

Process• Horizontal flow of value at the pull

of the customer• Workplace Management through

Standardization & Visualization• Relentless elimination of waste,

overburden and unevenness• Lean Tools applied as appropriate

People

• Engaged and involved in CI

• Continuously solve problems

• Teamwork

26

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The “People” Value Stream


AttractSpec

AssessmentSelection

On Boarding

Aptitude

DevelopRoles

TrainingCoaching

O/D

Capable

EngageStandard work

Problem solvingProcess improvement

Identify w/ team

Perform

InspireEmbrace values

Community, familyEnvironment

Identify w/ company

Commitment

Commitment for Mutual Prosperity

Equitable Policies and Practices

Grow from WithinReward Teamwork

Hoshin Kanri(True North)

TeamProblem Solving

DesirableClean and Safe

WorkplaceVisual

CommunicationServant

Leadership

Respect for People and Continuous Process Improvement

InputsPhilosophy

ValuesPrinciples

XPS

OutputsCulture of continuous

improvement of customer value based

on XPS

PurposeLong Term Mutual

Prosperity

Human Resource Systems Management

Daily Process Management

Reinforce

Practice

PDC

A


Purpose












Deployment

Lean Organisation –PDCA

PDCA A3 Thinking


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A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

A PC D

Value Stream

Strategic

Value Added/Gemba

John Shook

Problem Solving by Level


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The A3 Tool as a Process for…

Problem Solving Proposing Improvements Standardizing Planning Reporting Reflection Project Management Change Management Alignment and Agreement Organizational Development Mentoring, coaching Developing people

All based on


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Reflection


Learn Target

ConditionGap


gaps?



Programme Flow


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Defining the GapOrganisational Lean Journey

Exercise: Define the organisation’s business gap(s) Identify gaps between the current state of the

organisation & the desired state


Reflection


Learn Target

ConditionGap


gaps?



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Reflection II:Leader’s Role in the

Organisational Transformation

Facilitated discussion guided by questions: What have YOU done as a leader that has made

a big impact on your business in the last X years? What worked and what didn’t work? Has the way you lead changed? What have you learned?


Reflection


Learn Target

ConditionGap


gaps?



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Individual ReflectionWhat have you done as a leader that has made a big impact on your business in the last year or two?

What role did lean play in your effort as a leader?

What worked?

What didn’t work?

What did you learn and what have you changed as a leader? What can you do that you couldn’t do before? What capabilities do you have now?


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Lean Leadership:Defining the Leader’s Role in the Organisational Transformation

Facilitated discussion guided by questions: Understand the key roles, mindsets, behaviours &

assumptions of lean leaders that support the development of a sustainable culture of problem solving


Reflection


Learn Target

ConditionGap


gaps?



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The Lean Leadership Landscape


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Lean Leadership Landscape

38

Lean Leadership

5 PrinciplesAlign people & process to purpose

Purpose

People Process

PDCA A3

Thinking

Ohno:Waste (O/P)Flow & PullGenchi GenbutsuData/Facts

Minoura:“T”PS = “Thinking” Production System

Cho:Go seeAsk why?Show respect

Uchikawa: No problem is problem

WeberDruckerBurnsSengePetersCoveyCollinsScheinetc.

Influence of other

management thinkers

9. Grow leaders10. Develop people12. Go & see13. Decisions slowly14. Learning org.

etc.

Eiji: It ismuda towave your flag and have no one follow.

Lean Enterprise Academy

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The Role of Leadership in Implementing Lean

Design and support processesthat provide value to customers - value streams

Develop people to take personalresponsibility for solving problems

Set alignment around the vision


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In other Words:Lean Leaders do Two Things

Get each person to take initiative to solve problems and improve his or her job

Ensure that each persons’ job is aligned to provide value for the customer and prosperity for the company

Ref: John Shook – Lean Leadership

Get the work done and Develop Your People- at the SAME TIME!


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Three Keys to Lean Leadership

Ask “Why?”Use the technique daily

Show RespectRespect your people

“Go See”Management must spend timeon the front lines


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The Engine that DrivesLean Leadership: PDCA

Grasp the Situation


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How do you Build aCulture of PDCA?

Robust Problem Solving is What Makes the Organization Successful

Problems are a good thing Make abnormal from normal

visible right now Helps workers do their jobs well Helps workers know when to ask

for help Helps managers know what

questions to ask

Live and teach PDCA –frequent and complete cycles of reflective learning

Involve everyone in problem solving


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A Difficult Struggle at the Mid-managementand First Line Supervisory Level

FRONT LINES

SENIORMANAGEMENT

MIDDLEMANAGEMENT

MUST PROVIDE VISION AND INCENTIVE

MUST “DO”

MUST LEAD THE ACTUAL OPERATIONAL CHANGE

Likes the involvement

Likes the results

Wants to be successful

Role ImpactProblem:MURA & MURI

Muri: overburdenMura: variationMuda: waste

Problem:MURA & MURI

Problem:MUDA

Ref: John Shook

Basic problem to solve at different levels of the enterprise


PDCA Tool:Policy Management

PDCA Tool:VSM or A3

PDCA Tool:Standardised Work

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Problem Solving Focus by Level

45

Problem:MURA & MURI

Problem:MURA & MURI

Problem:MUDA

PDCA Tool:Policy Management

PDCA Tool:VSM or A3

PDCA Tool:Standardised Work

Lean Enterprise Academy

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Current State

PDC

A

PDC

A

PDC

A

GtS

Tools

NEXT FUTURE STATE

Future-State Vision

Tools

Tools

GtS

GtS

Lean Leadership


Design & support processesthat provide value to customers - value streams

Develop people to takepersonal responsibilityfor solving problems

Set alignment aroundthe vision

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Result-oriented

Fragmented Thinking

Command & ControlDefensive

Knower’s

• Focused on the final result, not on the problem solving

process

• Fragmented actions • Lack of organization

wide strategy• Silos

Assumptions of Leaders that Drive Continuous Improvement


Means-oriented

Systems thinking

Disturb & RespondInternalize

Learner

Focused on the means to achieve great results

Processes and people are aligned to

achieve organizational goals

Run small experiments on the system

• Take personal responsibility• No blame environment

Let’s Identify the problem and solve it together

Transformational Leadership Program ® Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved.

www.leanuk.org

• Metrics and status reports are the primary management tool• Deferring to the person of

highest rank

Result-oriented

Fragmented Thinking

Command & ControlDefensive

Knower

• Focused on the final result, not on the problem

solving process

• Fragmented actions • Lack of organization-

wide strategy• Silos

• Failure is not allowed• Employees feel the need to justify their

actions• Someone else caused

the problem• Rationalization of data

• Blanket solutions• Use of CI specialists to solve

organizational problems • Not building capability of

others• Missing opportunities for

learning

Unquestioned Assumptions of Leaders that Drive Complexity


Transformational Leadership Program ® Copyright 2009 Lean Enterprise Institute, Inc. All rights

reserved.

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Defining the GapLean Leadership Journey

Exercise: Identify gaps between your current roles,

mindsets, behaviours & assumptions & those of a lean leader


Reflection


Learn Target

ConditionGap


gaps?



www.leanuk.org








Reflection


Learn Target

ConditionGap


gaps?



Programme Flow


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Closing Organisational and Personal Gaps

Assess the gaps between where things are now and where they should be for the following: Your major customer delivery stream Your organization’s approach to problem solving Your approach to developing/supporting problem solving capability

(Refer to the questions on “Define the gaps for leadership”) For each category (customer delivery stream, problem

solving method, leadership approach to developing problem solving capability), complete a Problem Situation Form.


Reflection


Learn Target

ConditionGap


gaps?



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Problem Situation


What I Know – the Problem How to Confirm

What I Need to Know How to Learn it

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Closing Organisational and Personal Gaps

“Homework”: Select one problem from those that you identified as gaps on

the organisational side and go to the gemba to better understand it. Use the form below to capture your learning

How did your leadership behaviour affect the problem?Lean Enterprise Academy55

Reflection


Learn Target

ConditionGap


gaps?



What do I know about the problem?

How do I know it?

What do I need to know? How can I learn it?

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David Brunt

Lean Enterprise Academy Workshop



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Defining the Business Gap(s)Appendix



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Organisational Lean Gap

Identify gaps between the current state of your organisation and the desired state

Use your initial reflections and discussions as a guide

Record your “gaps” on the following sheets


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Rating – Key ValuesHow would you score the predominant values in your unit?


Conventional C2 C1 L1 L2 Lean1 Adversarial (company,

employees, customers)Mutual respect (company employees, customers)

2 “Profit first” focus “Customer first” focus

3 Reactive fire-fighting, limited root cause analysis, problems re-occur

Every employee actively pursuing continuous improvement daily

4 Reliance on inspection catch defects before they reach customer

Never knowingly pass a defect to the next process

5 Problems are hidden. Blaming starts if they are uncovered.

Problems are treasures. Praise the messenger.

6 Reliance on intuition to decide solutions.

Go see, ask why, show respect to develop problem solvers.

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Rating – True NorthHow would you score true north in your unit?


Conventional C2 C1 L1 L2 Lean1 Many scattered targets Few focussed targets

2 Not measured, or measures drive counter-lean behaviour.

Measures focus on improving the process

3 It is a wish list It is a contract to be fulfilled, expressing business needs that must be met

4 Not understood or valued by people

Motivates people to ACTION

5 Biased to company goals to detriment of customer or employee goals

Creates wins for all stakeholders.

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Rating – Line of SightHow would you score line of sight in your unit?


Conventional C2 C1 L1 L2 Lean1 People have no idea how their

activities relate to company goals

People understand precisely how their activities help achieve company goals

2 Progress against goals is not transparent

Progress is tracked visually in the workplace

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Rating – Strategy FormulationHow would you score strategy formulation in your unit?


Conventional C2 C1 L1 L2 Lean1 Assumes strategy will work as

plannedFocussed on quick response to problems

2 “True North” dictated from the top

Develop & alignment of strategy through many levels using “catchball”

3 Based on Plan Do, Do, Do Embodies PDCA and is constantly evolving.

4 Based on annual financial budget cycles

Based on achieving True North objectives through learning

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Rating – Lean ProcessesHow would you score lean processes in your unit?


Conventional C2 C1 L1 L2 Lean1 People operate in disconnected

departments, with sub-optimisation common

Horizontal flow of value across org. to customer understood & managed

2 Waste, overburden & variation leads to frequent workarounds.

The flow of work is continually improved by eliminating waste, overburden and variation

3 Produce as much as possible and stockpile

Pace of work synchronised with customer requirements

4 Long lead times accepted as “the result of the system”

Focus on constant reduction in lead time

5 We may have some standards for how the work is done, but not sure if they are followed

Standard Work is owned, followed and continually improved by the work teams.

6 Deviations from standard reported weekly or monthly

Out-of standard state visible in real time, work teams respond rapidly to problems.

7 We carry on with broken processes until there is time to fix them

We stop the process to fix the problem in real time

8 Improvements are prioritised “top down” and implemented by specialists

People are engaged in improvement at many levels using structured methods

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Discussion – PeopleHow would you score treatment of people in your unit?


Conventional C2 C1 L1 L2 Lean1 Failure not allowed.

Need to justify actions.Someone else caused the problem.

Take personal responsibility.“No blame/no excuse” environment

2 Only specialists solve problems, because it’s a complex process

Everybody is trained in, uses, and learns from the PDCA approach

3 Specialists develop better ways of working

Everybody takes the initiative in improving the way they work

4 Leaders manage by the numbers

Leaders focus on the process to achieve great results

5 Leaders are “directors” Leaders are mentors

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Defining the Individual Gap(s)

Appendix



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Individual Role Gap

Identify gaps between your current roles, mindsets, behaviors and assumptions and those of a lean leader

Use your initial reflections and discussions as a guide

Record your “gaps” on the following sheets


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Rating – Your AssumptionsHow would you honestly score your own assumptions?


Conventional C2 C1 L1 L2 Lean1 Improvements to work are best

developed by experts in continuous improvement techniques.

The people who do the work know it best and are the most capable of making improvements to it

2 Most employees need to be told exactly what to do and how to do it

All employees should be respected for their ability to think and take responsibility

3 I make plans within my level of competence and expect them to work. If there is a problem I get into trouble-shooting mode.

I assume that plans never work as intended, and that we need the capability to react immediately & systematically when they don’t

4 Problems are often caused by other people/departments

Problems occur because the processes we use are imperfect

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Rating – Your MindsetHow would you honestly describe your personal mindset?


Conventional C2 C1 L1 L2 Lean

1 Do this! Leader = dictator.

What do you think? Leader= mentor.

2 Only “grunts” goto the shop floor.

Go and see for yourself.

3 We have certain standards. We are not sure where they are or if they are followed.

We have simple visual standards for everything of importance.

4 Do not halt production. Keep up the numbers.

Stop production so that it does not come to a standstill. Don’t send out rubbish.

5 Do not be caught with a problem on your hands.

Make problems visible

6 Experts solve problems using complex methods.

Everyone solves problems using simple methods

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Rating – Your RolesHow do you view your role in your job?


Conventional C2 C1 L1 L2 Lean1 I concentrate on doing my allotted

tasks to meet my personal KPIs and checking that my subordinates are doing the same

I take responsibility for finding solutions to problems affecting the organisation’s ability to satisfy the customer

2 I concentrate on doing my allotted tasks to meet my personal KPIs and allocating tasks to my subordinates

My main role is to develop my subordinates so they can solve problems that prevent us meeting customer requirements

3 I focus on planning and implementing changes that I have developed

I teach my subordinates the PDCA approach by example

4 I check the MIS daily to see whether we met our targets yesterday

I visit daily the place where the work is done to check whether any employees or supervisors are having difficulty performing their standard work

5 One of my main roles is trouble-shooting. People call on me to be decisive in crises.

I develop standard work for my own activities to ensure I can fit in the essential tasks and as an example to others

6 I solve problems that my people bring to me.

I develop the problem solving skills of my people

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Rating – Your BehaviourHow would you honestly describe your behaviour in your job?


Conventional C2 C1 L1 L2 Lean1 Do what I have decided Follow me – we’ll work on this

together

2 When I can spare the time I get out of my office to show the flag. I delegate authority to my people to fix any problems

I spend most of my time where the work is done, to understand the detail, identify all types of waste, & mentor my people in systematic problem solving approaches

3 I focus on planning and implementing changes that I have developed

I teach my subordinates the PDCA approach by example

4 I check the MIS daily to see whether we met our targets yesterday

I visit daily the place where the work is done to check whether any employees or supervisors are having difficulty performing their standard work

5 If there are problems I ask people to tell me about them so I can tell them the solution.

I coach people by asking questions which prompt them to ensure that they really do “grasp the situation”

6 I hold daily or weekly meetings in my office or conference room with all my reports, to check problems and plan action.

I attend daily “stand-up” meetings at visual display boards on the shop floor to see any problems in following the processes.

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Rating – Your Behaviour (continued)How would you honestly describe your behaviour in your job?


Conventional C2 C1 L1 L2 Lean7 In dealing with problems I

decide solutions based on my previous experience, or on the advice of experts.

In dealing with problems, I follow a standard process to gain consensus from stakeholders about what the problem is, the root causes, the proposed countermeasures, and how to check the effectiveness

8 I answer questions I ask questions

Introduction to Lean leadership Masterclass by David Brunt

Education

Transcript of Introduction to Lean leadership Masterclass by David Brunt