DELIBERATE INNOVATION: ITERATIVE LEARNING TOWARD A CLEAR VISION

By Jim Morgan and Jeff LikerAugust 2014

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More and more companies are engaged in creating new working patterns in product creation that engage people and functions across the organization.

Every organization should have strong routines for effective innovation to keep moving forward!

It’s not so complex, but it is a challenge to introduce new

behavior routines into a team or organization.

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Notice... Your core product or service is the one thing your entire organization has in common.

Delivering a new product or service and creating a better value stream involves every function in the organization.

Focusing on the value you add for your customer is a way to align and engage any enterprise.

A Unique Opportunity

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Delivering the right Productor Service = Growth

Plus 60 – 70% of operating costs are determined in the design phase of a product & process

Lean Product-Process Development is aboutcreating great products and reducing cost

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VALUE ENGINEERING

VISUAL Management

ErrorPROOFING

Knowledge Database

So Many Tools???

Standard Architecture

Value Stream Mapping

Obeya (big room)

Specifications Development

Concept Development

DetailedDesign

ProductionPreparation

Launch

Time

Value-Added Flow

Rework & Churn

Non-Leveled Processing

Common Waterfall Process of Specialists Not Working Together: Uneven Flow & a Lot of Rework

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Much of Waste in Product Development comes from Functional Bureaucracy: Making our own Numbers with No Overall Focus

Value Delivery Process

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Engin

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Time

One Result is Reduced Lead Time

Creating FLOW in Product

Development

Leveled Processing

Specifications Development

Concept Development

DetailedDesign

ProductionPreparation

Launch

What we want is Coordinated Specialists Working at a Leveled Pace to Get it Right the

First Time

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It Takes an Integrated System of People, Processes and Tools to Achieve Leveled Flow

Focused on the Customer

PEOPLE

PROCESS TOOLS

A sustainable system

13 Lean Development Principlesall enable the continuous flow of value

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“We could talk about Toyota’s engineering process and TPS and all these different systems. But just talking about them is not going to necessarily make another company better. It is rooted much deeper in the culture in things like obeya, the Chief Engineer system, kaizen, etc. It is the totality of it working together in the culture established across many years that make it all work.”

Uchiyamada,

First Chief Engineer, Toyota Prius

It’s People Working Together Toward a Common Goal who Turn Lifeless Tools

into Innovation

PEOPLE

PROCESS TOOLS

What do you See?Isolated Individuals or Collaboration?

(Software Design at Menlo Innovations)

• Introduction

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Innovation Does Not Have to be ChaoticWork Authorization Board:

The Daily Visual Work Schedule - Simplicity & Clarity!

The joy of getting things done!

• Time actual completion of each card vs. planned• Red, green, yellowMenlo Innovations, LLC

The Scientific Method of Plan-Do-Check-Act is how we should Learn our Way toward Innovation

that Works

PLAN

DOCHECK

ACTGrasp

the Situation

• Understanding• Agreement• Buy-in• Clear Action

Creative

Problem

Tension

Solving

Grasp The

Situation

Gap = Challenge

Target

Target

Target

Business & People

Purpose

CurrentState

Grasp The

Situation

Grasp The

Situation

Grasp The

Situation

Target

CHALLENGE& VISION

Results and

Condition

KEY ELEMENTS FOR DELIBERATE INNOVATION AREA CLEAR DIRECTION, UNDERSTANDING WHERE WE ARE NOW, AND

ITERATIVELY LEARNING STEP BY STEP TOWARD THE CHALLENGE

SOLUTION

Unfortunately We Often Jump to Quickly to Solutions because we think we know

Jumping from “problem” to “solution” without clear understanding and analysis

PROBLEM

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It’s LearnedBornOK... HOW?

DesignThinking

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VIDEO - A Way the Brain Learns(2 minutes)

https://www.youtube.com/watch?v=ELpfYCZa87g

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We’re striving for aLearning Organization

HABITS

Knowledge(What, Why)

Skills(How)

Desire(Want)

HABITS

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The Lone Inventor with one Brilliant Ideais a Myth

• Challenge: A working electric Light bulb• Hypotheses: 3000 different filaments• Tested every version• 2 successes/3000

“Genius is one percent inspiration, ninety-nine percent perspiration.”

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It is Many Ideas that Through Experimentation Turn into One Winner!

Experimenting our way forward

Increasing Knowledge

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Visible

LessVisible

Lean tools and techniques to improve quality, cost and delivery

• A systematic, scientific way of thinking and acting

• Managers as the teachers of that way

WE SEE TOO MUCH FOCUS ON IMITATING THE TOOLS AND PRACTICES OF GREAT COMPANIES LIKE TOYOTA AND NOT

ENOUGH SCIENTIFIC THINKING

This less visible part is a contextfor making the Lean tools and practices work

SOURCE: Mike Rother

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We need a way for Team of People to Learn A Systematic Approach To Achieving a Challenging Goal:

THE IMPROVEMENT KATA MODEL PROVIDES THIS

Understandthe Directionor Challenge

Grasp theCurrent

Condition

Establish theNext TargetCondition

CC

TC

1 2 3 4Iterate

Toward the Target Condition

Planning Executing (PDCA)

This pattern is designed for learning a systematic approach to innovation

SOURCE: Mike Rother

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WHAT ARE KATA?Kata are structured routines you practice

deliberately, especially at the beginning, so their pattern becomes a habit and leaves you with new abilities

KATA:• Are typically for learning

fundamentals, to build on.• Are a way of transferring skills and

developing shared abilities and mindset in a team or organization.

“Let’s begin by practicing it this way for a while.”

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SOURCE: Mike Rother

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THE IMPROVEMENT KATA IS A WAY OF DELIBERATELY PRACTICING THE SCIENTIFIC LEARNING CYCLE

This cycle gives you a practical way to reach a target condition, by providing a systematic way of working through the grey zone between here and there.

SOURCE: Mike Rother

Developing Exceptional Leaders and Engineers takes On-the-Job development by teacher-coaches Who

Ideally are the Managers, not Outside Teachers

Master Chef & StudentsSoccer Coach going over plays

Coaching Girl’s Basketball TeamTeaching Violin

Exceptional Teams need Exceptional People: Toyota Engineers go through an inverted T career getting some breadth then going deep within a specialty

Breadth of Experience Acrossthe Organization (1-2 years)

Deep Knowledge within a Specialty Domain (5-10 years)

A) T-Type Managers: Deep knowledge then go broad across jobs

B) Inverted T-Type Engineers: Broad exposure then go deep in technical specialty

Deep Knowledge within Technical Specialty throughout Career (rest of career)

Breadth of Experience Across the Organization (rest of career)

THE KEYS TO LEARNING DELIBERATE INNOVATION

• Common Vision for the Product and Process based on Deep Understanding of the Customer

• Specialists are learning technical knowledge deeply• Specialists are also learning through daily practice how to

improve (a kata)• Managers are skilled at the scientific method for

improvement and how to coach and teach others• Leverage abilities of all employees— Everyone is an

Innovator!