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Presenter: Sam MacPhersonLean Leadership Academy
[email protected] @LeanLeaderWay
The Art and Science Behind Successful Lean Transformations
Host: Mark GrabanKaiNexus
[email protected] @MarkGraban
Sam MacPherson
Sam MacPherson is an internationally recognized Lean Enterprise Transformation Leader and has dedicated over 28 years to developing organizational leadership, senior leadership teams, and designing lean enterprise management systems. Following the attacks of Sept. 11, 2001, Sam was recalled to active military service to serve as the Director of Special Operations Plans for the Elite United States Army Special Forces (The Green Berets) during Operation Enduring Freedom in Afghanistan. Sam was introduced to the Toyota Production System and the Shingo method in the mid-1980’s, while serving as the project leader for Dr. Shigeo Shingo. Sam led industry award winning Lean Transformations as a plant manager for Crown Cork and Seal.
As Director of Lean Operations and Marine Industry Executive Vice-President of Operations, Sam led Lean Transformations across the enterprise in operations, quality systems, manufacturing engineering, supply chain/logistics, and sales. Sam retired in 2004 as the Special Forces Director of Training and private sector operational leadership in 2007. In 2011,Mr. MacPherson co-found the Lean Leadership Academy® with TPS experts Art Smalley and Toyota Vice President and mentor Russ Scaffede to help organizations develop their organizational leadership pipeline and properly implement TPS as a comprehensive system to achieve business and organizational excellence.
A Blueprint for Developing Highly Engaged Lean Leaders
Sam MacPherson, Co-FounderThe Lean Leadership Academy
The Art and Science
Of Leading a Successful
Lean Transformation
Presentation Agenda
Introduction Current State of Lean The Prerequisites of a Successful Lean Transformation The Reasons why Leading a Lean Transformation Fail Current State of Lean Transformation approaches Beyond Little’s Law: The Science of the Exponential
Organization How to Harness Your Lean Transformation and Leader
Development to Create a Culture of Excellence X Strategies to Jumpstart your Lean TransformationQ&A
Current State of Lean Re
sults
<5%
According to Shingo Prize Institute data*, only about <5% of organizations, attempting Lean, continue to produce measureable results or continue to improve after 3-5 years.
In other words, 95% of organizations attempting lean either flat line in terms of performance or slowly regress back towards their original state.
In most cases, a reflection of management’s focus on “Lean Tools,” willingness or ability to lead, ability to connect to vital organizational needs, communication of a compelling need for change, non development of others, and lack of problem solving skills.
Years1 3 5 7 9
A
B
CD
Low Hanging Fruit Region
95%
Case A – Continued success
Case B – Flat lined trend
Case C – Slight decline
Case D, E, F – Major decline
Case G – Never got off the ground
EF
G
* 2014 Shingo Prize Institute proprietary data by Art Smalley
Typical Transformation ApproachLe
an To
ol /
Pro
cess
Adh
eren
ce
Actual Results
L M H
LM
H
Origin
Path A
Path B
LLA 2x2 Matrix
Question: Why do 95% of cases surveyed exhibit this problem and fail to sustain?
Path C
1) Path A “Lean Zealot” Route• Love of tools, methods, ways, etc.• Excessive buzzwords• No deep understanding of why, how, etc.• Limited problem solving ability• Stuck on trivial details• Endless training, workshops, or reflection• However limited results are produced• Eventual program decay
2) Path B “Charismatic Leader” Route• Top leadership driven by few key people• Low hanging fruit obtained easily• Problems solved by experts / outsiders• Limited team development• No comprehensive tool, method, system or
principle based approach• Results make everyone look and feel good• The great leader retires, transfers, leaves• Eventual results and program decay
The 800 lbs. Gorilla in the RoomWhy Lean Transformations Fail
• Underestimating the strength of existing leadership mindsets
• Weak belief in Lean as a Management System
• Underestimating the strength of existing management system
• Underestimating the strength of of reinforcing management system infrastructure on leader behavior, routines, and commitment
• Underestimating the strength of existing organizational mindset and culture
The Three Prerequisites of a Successful Lean Transformation
1. Strong, Clear Business Case
for Change
3. Highly Engaged and Capable Lean
Leaders
2. Lean Management
System
Overcoming “The Dark Side” Organizational Change Behavior
Resulting from Lean Transformation
The Four Stages of Building a Lean Culture1.Disruption2.Orientation3.Indoctrination4.Assimilation
Lean Transformation Pyramid
Leader Beliefs, Values, Principles, Thinking Structures,
Behaviors, and Keystone Routines
Lean ManagementSystem and
Organizational Structure
Brilliant ProcessesManagement
ToolsAnd
Techniques
Beyond Little’s LawPrimarily a Just-in-Time/Lead-time
Formula
“Lean Leadership is a discipline. It has its own unique principles, fundamental beliefs
and values, thinking structures, expected behaviors and keystone routines.”
Sam MacPhersonThe Lean Leadership Academy
The Summit on Lean Leadership
Lean Leadership is a Discipline
Toyota’s View Leader vs. Manager
工場長 Plant Manager (Plant Leader)部長 Department Manager (Department Leader)課長 Area Manager (Area Leader)
係長 Section Manager (Section Leader) 工長 Production Foreman (Leader)一般 Staff Employee 組長 Group Leader班長 Team Leader技能員 Team Member
長 Pronounced: Osa or ChoMeaning: Leader, Head, Chief, Director, Commander
Leaders Must Influence and ShapeShaping Principles
1. Shape the purpose2. Shape the timeline3. Shape the structure4. Shape the thinking patterns5. Shape the procedures / standards6. Shape the behaviors7. Shape the system / tools8. Shape the environment9. Shape the results10. Shape the Culture
Inside the team
Outside the team The
Organization
Area of Influence
Outside the Organization
Example of Toyota
OperationsLeadership
President(Senior LeaderOn Site)
Group Leader(Supervisor Level)
VP of Operations(Senior Manufacturing And Functional Managers)
Production Team(5-6 Team Members)
Expandable to 10Team Members
TeamLeaders(Hourly)
KaizenTeamA voluntaryTeam assignmentMade up of promotable Team leaders and led by aSenior Group leader
Area Manager(Assistant Managers)
Department Manager
Leads upstream Machine Intensive
batch operation Production Team
Leads Production Cells or Line
Production Teams
Single Minute
(Breakdown)Response
Team
ToyotaLeadership Structure Operations
工場長 Plant Leader 1
部長 Department Leader 5 課長 Area / Production Leader 25
組長 Group Leader 125
班長 Team Leader 625
技能員 Team Member 2,500
Sample Plant Head Count 3,281
In *general* there is a 1 to 5 leadership ratio
Main emphasis in leadership training and development is at G/L & T/L level
Robin Dunbar’s Number and its Criticality to Your Lean Transformation
Robert Metcalfe’s Lawof Exponential Network Value
Intel’s Gordon Moore’s Lawand Lean Transformation
The Value of Metcalfe and Moore in a Lean Transformation Model
Accelerating Your Transformationthrough Obeya
Physically Change the EnvironmentUse the Obeya Concept To Accelerate Lean
TransformationUse the open format of an Operations Center or Obeya (Big Open Room) to accelerate Lean Leader development, organizational learning, and re-enforce the shop-floor leadership culture of Lean.
The Obeya approach connects lean leader efforts to Lean and Business objectives through connecting daily activities with Hoshin activities.
The Obeya approach ensures communication, collaboration, and timely problem solving and improvement activities for Lean Leaders.
The Obeya approach provides a platform for Lean Leader accountability, A3 mentoring, and coaching.
Re-enforcing Structures: An Obeya approach physically changes the leadership environment, sustaining leadership expectations for the future.
What is an Obeya?
There is Always Room for Kaizen In Coordination!
• The Theory behind Obeya is based on a simple idea:“Dedicate Space and Time to Coordination and Problem-Solving, then organizational
barriers will be minimized.”
• The ability to maintain Proper Problem Awareness in Real-time,– Monitor Value Creation, Commitment, and Opportunities to Customers– listen to Team-member concerns, – Collaborate to make discoveries, resolve problems together, accelerate leader and team-member
development– We will reach our full potential, which is critical to a Lean Organization
• The Obeya promotes coordination, strategy and flexibility while leveraging the expertise and support of teammates from diverse areas.
• The Result: Effective solutions and actions that can be developed and implemented quickly.
Interrupting Patterns at Grand Central Terminal
Daily Asaichi“First” in the
Morning Meeting
Set PrioritiesCoordination
Daily Asaichi Stand-up Communications Meeting
Mfg Ops MgrEstablish
Top 5 Priorities Of the Day
Issue Resolution
Status
End of Day Production Status Check
The Critical Role of the LeaderIn Creating a Culture of Excellence
The Critical Role of the LeaderIn Creating a Culture of Excellence
Creating a Culture of Excellence
First…Expect Excellence!Create a Common LanguageCreate expected Beliefs, Values
and BehaviorsCreate Keystone RoutinesCreate your Culture’s ArtifactsCreate Rituals and CelebrationsTell your own “War Story”
Keystone Routines are Key toYour Transformation and Culture
• As a Senior Leader, establish and commit to a daily and weekly “Top 5” priorities and communicate them every morning.
• Ensure Lean Leaders aligned their daily Top Five priorities, accordingly, and brief their daily and weekly Top Five plan.
• At the end of the day, review accomplishment of Top Five priorities (Red or Green) with developing Lean Leaders.
• Discuss team member development observations and concrete actions for the next day.
• Following reflection of lessons learned, Lean Leaders develop the Top Five priorities for the next Day or next week.
Establish a Keystone Routine ofDaily and Weekly “Top 5”
as an Engagement and Coaching Tool
TOP Five Should Include: System Advancement
Priorities Problem Solving and
Improvement Priorities People Development Priorities
The Critical Role of the LeaderIn Creating a Culture of Excellence
Defeating the 800 Pound Gorilla6 Things You can do
1. Make a strong business case for your transformation to engage senior leaders and the organization
2. Organize for Engagement and Response3. Interrupt existing routines with physical
changes – such as an Obeya - and keystone routines for new patterns
4. Lead by Example5. Learn to speak the language of your ERP
system; but, don’t go native6. Provide every possible platform to allow
others to participate in problem solving, kaizen, and to build team relations
Recommended Reading
Thank you for allowing me to share my Lean Leader
Development Ideas, today.
What Questions may I answer for you?
Webinars On Demand
Next Webinars – September
http://www.kainexus.com/webinars
Harry Kenworthy
Erin Edwards
Q&A
• Q&A is available through a podcast– See http://www.kainexus.com/podcasts
