Transformational Lean Leadership

John ShookLean Enterprise Institute

Lean Global NetworkSeptember 2014

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Lean India Summit 2014

Understanding Lean Transformation

Aligning:

•Purpose•Process•People

to create value

What leadership

behavior and management system do we need?

WHAT is our

PURPOSE?

What situational problemdo we need to address?

How to improve the work?

How to develop

the people?

What is our BASIC THINKING??What is our BASIC THINKING??

What leadership

behavior and management

system do we need?

What leadership

behavior and management

system do we need?

What is the role of leaders in a lean transformation?

• I frequently hear…

• “I can’t get my people to do this. How can I get people to do this…?”

• How to reply…?

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Change – the leader’s role…

•“How can you get others to “do this”…?

Only one way…

Lean Leadership

•…is obviously different from the old command and control dictator.

•It is equally different from the commonly accepted notion of the “enlightened modern manager”.

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But, What IS “Leadership” Anyway??

And where does it fit in with organizational and personal CHANGE or “transformation”?

What IS “Leadership” anyway??

•“The greatest leaders of the 20th century were Hitler, Stalin and Mao: If that is “leadership”, I want nothing to do with it.”

•- Peter Drucker

Lean Leadership•Practice of Leadership

•vs•Exercise of Power

“I could put a loaded gun to your head…”True leadership exists when people follow

when they don’t have to…”•- James MacGregor Burns

Lean is Personal and Organizational

New United Motor Manufacturing, Inc. – NUMMI – built its first car in December 1984 and its last in April 2010.

A Transformation Story: Toyota and General Motors

The Worst Factory in the World…

Certified

Worst!

From the Worst to the Best…

Certified!

Graphics slide. Place graphic within the white box.

NUMMI and the Role of Leadership

• “Establish mutual trust”• “No problem is problem”• “Lead as if you have no power”• “Before you build cars, build people”

Four lessons in leadership from NUMMI:

No Problem is a Problem

GEMBA

Data Analysis Room

WORK FLOW

DEFECT!!

DATA

TOOLS

Solving Problems at the Gemba HERE! NOT HERE

Kan Higashi to Gary Convis…(NUMMI’s senior Japanese and American leaders)

“ Lead the organization as if you have no power."

Lean LeadershipPractice of Leadership

vsExercise of Power

“I could put a loaded gun to your head…True leadership exists when people follow when they

don’t have to…”- James MacGregor Burns

“Lead as if you have no power.”- Kan Higashi to Gary Convis

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Matt Long of the Herman Miller company:

“We aren’t just solving problems…

We are developing problem solvers.”

The Key Factor of Key Factors: Developing People

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Get the job done and develop your people…and accomplish those at the same time

The Twin Responsibilities of a Lean Leader

How…?

Lean ManagementResponsibility vs Authority

• In my five years in Toyota City, almost never was I given solutions.

• Yet, I was not free to just do what I wanted.

• I was given clear responsibility to propose solutions to problems I owned.

Ownership of PerformanceResponsibility vs Authority

In a traditional hierarchical organization:

•Position establishes (or seems to) authority to make decisions.

•-> In cross-functional organizations, this causes confusion, frustration, and breakdown of the decision-making process.

In a Lean Organization:

•Position establishes responsibility to get decisions made.

Making Decisions andCreating Alignment

RESPONSIBILITY-BASED

Focus:

Decide the right thing

AUTHORITY-BASED

Focus:

The right to decide

Lean Management Control with Flexibility

•This way of managing provides extraordinary focus, direction, “control.”

•While at the same time providing maximum flexibility.

•This way of working can resolve the age-old dilemma that encumbers all large organizations: control vs. flexibility.

Change – the leader’s role…

•“How can you get others to “do this”…?

Only one way…

The challenge is not “getting other people to do this”…

The challenge is getting YOU (and me) to do this!

The Lean Leader’s Challenge

•Make objectives, outcomes, assignments clear enough that the subordinate can approach the task with confidence.

•Yet, open enough that responsibility is not taken away.

•So the individual doing the work has clear responsibility to propose solutions with a sense of entrepreneurial ownership.

Clear direction with clear ownership

The Lean Leadership Challenge

• Enable each person to take responsibility to solve problems and improve his or her work

• Align each persons’ work to provide value for the customer and prosperity for the organization

Get the work done and Develop Capability- at the SAME TIME!

Begin with Yourself!!

Chairman Fujio Cho of Toyota: Three Keys to Lean Leadership

Go See.• “Sr. Mgmt. must spend time on

the front lines.”

Ask Why.• “Use the “Why?” technique

daily.”

Show Respect.• “Especially the people doing the

value-creating work.”

"Lean management is less about providing the right answers than asking the right questions and trying things or encouraging

others to try things.

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The A3 as a Job Aid for Managers as CoachesThe A3 as a Job Aid for Managers as Coaches

Basic Thinking – Lean Thinking

• Principle of “Just Enough”

• Practice of Questioning and Experimenting– Structured Questions and Experiments

The A3 as a Job Aid to Ask Good QuestionsThe A3 as a Job Aid to Ask Good Questions

Get the job done and develop your people…and accomplish those at the same time

The Twin Responsibilities of a Lean Leader

How…?

Results and Process

• Manage by Results (MBO/MBA)

• Manage by Means (Process)- H. Thomas Johnson

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“Data is of course important,

but I place greater emphasis on facts.”

-Taiichi Ohno

“Go See”

Measures/KPI

• “There is no true value of any measurement” (Deming)

• The map is not the territory (SI Hayakawa)• What gets measured gets…

Measures/KPI

• “There is no true value of any measurement” (Deming)

• The map is not the territory (SI Hayakawa)• What gets measured gets…

…GAMED!

Assessment and Feedback

Carol Dweck gave different feedback to two groups of test takers. Group A: “You must be really smart at this!”

Group B: “You must have worked really hard!”

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Praise Results or Praise Effort?

“You must be really smart at this!”

Performance worsened!

“You must have worked really hard!”Performance steadily improved!

A 30% gap emergedjohn shook

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Results and ProcessP

RO

CE

SS

RESULTS

PR

OC

ES

S

RESULTS

Results and Process

PR

OC

ES

S

RESULTS

Results and Process

PR

OC

ES

S

RESULTS

Results and Process

KPI and KSF• Key Performance Indicator• Key (Critical) Success Factor

– The objective is what needs to happen– The KSF is determined by asking, “what needs to

happen for that to happen?”

• Leaders establish alignment around the vision and key objectives

• Then break those down into the processes that can deliver on the KSFs.

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KPI and KSF• Then, break those down into the processes that

can deliver on the KSFs…

• “Process” = The “work to be done”. What needs to be done and HOW to do it.

• Become obsessive about that. That’s the fun in all this.

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CURRENT CONDITION

GtS

Gap/

Problem/

OpportunityTools

LEARN TO SEE NEXT TARGETED CONDITION

TARGETED CONDITION

Tools

Tools

GtS

GtS

Leading Through Capability Development Through Collaborative Problem Solving

No Problem is a Problem!

Off We Go• The good news is that you can do this. • The other good news is that it is going to be

really hard work.• The troublesome news is that there is no

“roadmap”. (And beware of consultants who want to sell you one!)

• But – more good news – you are not floating adrift! You have the Lean Transformation Model as your compass, your GPS, to help guide you.

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