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4/2/2015
1
Lean Leadership
Presented by
Aaron W. Hughey
Lean Strategy & Implementation
Eli Whitney (Interchangeable parts)
Drawing conventions, TolerancesModern machine tool development
1850
1900Fredrick Taylor (Standardized work, time study & work standards)
Frank Gilbreth (Process charts, motion study)
Henry Ford (Assembly lines, flow lines, manufacturing strategy)
Deming & Juran (SPC, TQM)
1990
1950
Eiji Toyoda, Taiichi Ohno, Shigeo ShingoToyota production system, JITStockless production, World class manufacture
Lean Manufacture
American Civil War
World War I
World War II
History & Evolution
Before 1850 Craft manufacturing
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Main Features of Lean Manufacturing
* Greater Product Variety* Fast Response (Flexibility)* Stable Production Schedules* Supply Chain Integration* Demand Management* Broader jobs, highly skilled workers, proud of product* Excellent quality* Reduced costs* Ability to meet global market & competition
Lean Manufacturing:
5 principles:
� Specify what creates value from the
customers perspective
� Identify all the steps along the process
chain
� Make those processes flow
� Make only what is pulled by the
customer
� Strive for perfection by continually removing wastes
* Create precise customer value
- goods and services with higher quality and fewer defects
- with less human effort, less space, less
capital, and less time than the
traditional system of mass production
* Remove ‘waste’
- Consume ‘just enough’ resourses
- Do more with less
The Foundation
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Lean Tool Introduction Benefits
Kaizen Continuous Improvement
1. Increased Space utilization
2. Increased product quality
3. Better Use of capital
4. Communications
5. Production capacity
6. Employee retention
Total Productive Maintenance
A maintenance philosophy designed to integrate equipment
maintenance into the manufacturing process. The goal is to keep
equipment producing only good product, as fast as possible with no
unplanned downtime.
1. Improve Productivity
2. Reduce breakdown leading to Zero breakdown concept
3. Leads to multi-skilling of workers
4. Better safety
5. Improve quality of products
Kaizen & Total Productive Maintenance
Lean Tool Introduction Benefits
Standardized Process
Standardization is the process of developing and
agreeing upon technical standards.
1. Better decision making
2. Cost reduction and increase in efficiency
3. Effective information sharing
4. Easier international transfer of marketing skills
5. Simplifying the coordination and control between subsidiaries and business functions
Value stream Mapping
A tool for guiding
improvements by
identifying waste &
isolated processes
1. Enable Visualizing the production process
2. Identifies waste in each step of the production process.
3. Provides a plan for implementing improvements to the production process to reduce costs.
Standardized Process & Value Stream Mapping
Lean Tool Introduction Benefits
Pull system
A method of controlling the flow of resources by replacing only what
has been consumed
1. Reduce lead times
2. Minimize work in process
3. optimize floor space usage
4. Simplify production signals and improve on-time delivery to customers.
Pull System
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Defining Value and Waste
* Defining value - an item or feature for which a customer willing to pay.
* Every thing else – waste
* Waste - activities that consume time, resource and/or space but do not add value.
* Lean - Production of product to meet demand on daily basis with minimum lead time & non value added activities eliminated or minimized
Overproduction
Waiting
Inventory
TransportationMotion
Over Processing
Rework
1
6
7
5 4
3
2
To produce sooner,fasteror in greater quantitiesthan customer demand.
Raw material,work in progress
or finished goods which is not havingvalue added to it.
People or partsthat wait for
a work cycle tobe completed.
Unnecessary movementof people, parts or
machines withina process.
Unnecessary movement of peopleor parts between processes.
Non rightfirst time.Repetitionor correctionof a process.
Processing beyondthe standardrequired by thecustomer.
is the Japanese word for WASTE.MUDA
Seek it out and get rid!
1
2
34
5
6
7
An 8th wasteis the wasted
potentialof people
Seven Wastes
Eliminating Waste
7 steps
1. Reduce lead time
2. Cut operations costs
3. Improve business performance visibility
4. Speed time to market
5. Exceed customer expectations
6. Streamline outsourcing processes
7. Manage global operations
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5S: A method for organizing a workplace, and keeping it organized.
Benefits
1. Improve safety
2. Decrease down time
3. Raise employee morale
4. Identify problems more quickly
5. Develop control through visibility
6. Establish convenient work practices
Visual Management
* Visual management maintains an orderly work
environment.
* Employees have quicker and safer access to
items that are needed.
* Colour-coding is often used to remind
employees of where items belong.
* If order is not continually stressed, disorder will
result and create an unfriendly work
atmosphere.
Visual Control
Any communication device used in the work environment that tells
us at a glance how work should be done and whether it is deviating from the standard
Benefits
1. Increase productivity
2. Improve quality
3. On-time delivery
4. Reduce inventory
5. Increase equipment reliability
6. Boosts bottom-line profits
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Lean Strategy Approach
� Lean is an integrated operational system of mutually supporting organizational,
management, and technical practices.
� Approach
• Executive understanding and long term commitment.
• Develop in-house capability for employee education and training.
• Process implementation by employees.
Phase I. Management
Understanding and Commitment
� Understand nature of the lean enterprise
� Obtain long-term commitment.
� Develop shared strategic plan
� Form implementation steering committee. (Management Team)
� Develop customized implementation plan
� Supporting programs:• Lean simulations
• Leadership training in the organization
• Consultation on Implementation plans
Phase II. Employee Education
and Training
� Education and training is the major investment in the lean enterprise.
� Initial programs:
• Lean Simulations
• Lean Implementation Courses (First Steps)
• Introduction to Lean
• Lean Leadership
• Value Streaming Mapping & Standardization
• 5S & 7 Wastes
• Visual Factory Management
• Project Management
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Phase III. Initial Implementation
� Initial focus on one area capable of demonstrating significant improvement.
� Implementation by Implementation team and employees with strong management support.
� Supporting programs for implementation (Second Step):• Kaizen
• Kaizen Lab
Lean Enterprise - Team Training Step 3
Additional Areas of Support
� Team processes and lean principles interleaved.
- Team Building
- Effective Meetings
- Job Instruction
- Statistical Process Control (SPC)
� Instruction followed by application in organization.
� Through continuous improvement and training team members become the nucleus for spread of the lean enterprise to other areas within the organization.
Team Training - Prerequisites
� Commitment and support from Management Team
� Implementation Team in place
� Change agent/champion identified
� Lean training plan and implementation plan in place
� Identification of specific areas, scope, goals for team
� Preconditions for standardized work must exist:
•Human-centered, repetitive processes
•Consistent materials and equipment
� Team charter in place
� Commitments made to team members and trainers
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Team Training - Commitments
� No jobs will be lost due to productivity
improvements.
� Company will accept responsibility for spreading training in-house.
� Champion, in-house trainer, supervisor, and
production manager will meet regularly with team.
� Management Team will actively support team activity.
� Team will have adequate time and resources.
� Management will demonstrate commitment to Lean by example, expectations, resources,
encouragement.
Goals (Planning for Focus)
� Lean Charter/Vision
� Lean Champion
� Identification of Implementation Team
� Guidelines for Implementation Team (trip wires, resources, rewards, timeframe)
LEADERSHIP DEVELOPMENT
I
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Common Characteristics of
Organizations
Building Blocks
of Competitive Advantage
What makes leadership work?
1) Technical Competence/Skills
(Be task-oriented)
2) Human Relations Competence/Skills
(Be people-oriented)
3) Attitude/Motivation
(Have the desire)
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Leaders Play Many Roles
LeadershipRoles and
Responsibilities
LeadershipRoles and
Responsibilities
CoachCoach
ControllerController
SupervisorSupervisor
TrainerTrainer
PlannerPlanner
SchedulerScheduler
MotivatorMotivator RecruiterRecruiter
Essential Skills for Successful Leaders
Essential
LeadershipSkills
Essential
LeadershipSkills
Political SkillsPolitical Skills
Delegation SkillsDelegation Skills
Computer/Technology Skills
Computer/Technology Skills
Emotional Intelligence and Self-awareness
Emotional Intelligence and Self-awareness
Communication SkillsCommunication Skills
Entrepreneurial Thinkingand Creativity Skills
Entrepreneurial Thinkingand Creativity Skills
Decision-Making SkillsDecision-Making Skills
Technical SkillsTechnical Skills
Team-Building and Leadership Skills
Team-Building and Leadership Skills
Administrative SkillsAdministrative Skills
Time Management SkillsTime Management Skills
GlobalizationOutsourcing
Off-shoring
GlobalizationOutsourcing
Off-shoring
TechnologyTelecommuting, virtual
offices, employee privacy
TechnologyTelecommuting, virtual
offices, employee privacy
Diverse WorkforceAge, gender, ethnicity,
Work experience
Diverse WorkforceAge, gender, ethnicity,
Work experience
Organizations and Leaders
Organizations and Leaders
Trends Impacting Organizations
and Leaders
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Four Functions of Management
Relative Amount of Time That Managers
Spend on the Four Managerial Functions
Leadership Skills
� Conceptual skills
• The ability to analyze and diagnose a situation and distinguish between cause and effect.
� Human skills
• The ability to understand, alter, lead, and control the behavior of other individuals and groups.
� Technical skills
• Job-specific skills required to perform a particular type of work or occupation at a high level.
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Skill Types Needed
Organizational Performance
Efficiency • A measure of how well or how productively
resources are used to achieve a goal
Effectiveness• A measure of the appropriateness of the goals
an organization is pursuing and the degree to which they are achieved.
Efficiency and Effectiveness
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Leadership (Managerial) Cycle
IMPLEMENTING
SUPERVISING
MONITORING
EVALUATING
SITUATION ANALYSIS
PLANNING
DIRECTING
Performance Leadership
� Job Description
� Performance Standards
� Observation & Feedback
� Performance Appraisal
� Performance Development
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Performance Analysis Matrix
A
Motivation
B
Resource or Environment
C
Selection
D
Training
Does the employee have the proper attitude (desire) to perform the job?
High
High
low
low
Do
es t
he e
mp
loyee h
ave t
he
ap
pro
pri
ate
jo
b k
no
wle
dg
e a
nd
skills
?
Performance problems(Basic reasons why employees do not perform well)
� Lack of skills
� Lack of Information
� Motivational Issues
� Personal Issues
� Environmental Issues
LEADERSHIP DEVELOPMENT
II
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What is leadership?
Leading people
Influencing people
Commanding people
Guiding people
Fundamental Principles of
Effective Leadership
�1. Leadership is a Relationship
� 2. Leadership is Everyone’s Business
� 3. Leadership is a Set of Skills and Abilities
� 4. Leadership Development is Self
Development
Research Findings:
Lessons of Experience
�Learning is not random – different lessons are learned from different types of experiences.
� It is the challenge within an experience that drives the learning forward and makes an experience developmental.
�The lessons learned from experience can have a lasting impact on how a person manages and leads.
�Preferable to have a variety of experiences in order to achieve broad and balanced development.
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Skills Learned by Experience
� Resourcefulness
� Being a Quick Study
� Doing Whatever it Takes
� Decisiveness
� Leading Employees
� Confronting Problems
� Managing Change
� Career Management
� Differences Matter
� Building and Mending
Relationships
� Putting People at Ease
� Compassion and
Sensitivity
� Straightforwardness and
Composure
� Balance between Life and
Work
� Self-Awareness
Leadership Components:
Major Tasks of Organizational Leadership
� Vision – Establish general tone, direction
� Management – Set goals and focus resources
� Empowerment – Select and develop subordinates
� Diplomacy – Forge coalitions
� Feedback – Observe, listen, share information
� Entrepreneurialism – Find future opportunities
Types of Leaders
� Leader by the position achieved
� Leader by personality, charisma
� Leader by moral example
� Leader by power held
� Intellectual leader
� Leader because of ability to accomplish things
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Managers vs. LeadersManagers
� Focus on things
� Do things right
� Plan
� Organize
� Direct
� Control
� Follows the rules
Leaders
� Focus on people
� Do the right things
� Inspire
� Influence
� Motivate
� Build
� Shape entities
New Leaders Take Note
� General Advice
• Take advantage of the transition
period
• Get advice and counsel
• Show empathy to predecessor
• Learn leadership
� Challenges
• Need knowledge quickly
• Establish new relationships
• Expectations
• Personal
equilibrium
New Leader Traps
� Not learning
quickly
� Isolation
� Know-it-all
� Keeping existing team
� Taking on too
much
� Captured by
wrong people
� Successor
syndrome
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Seven Basic Principles
� Have two to three years to make measurable financial and cultural progress
� Come in knowing current strategy, goals, and challenges. Form hypothesis on operating priorities
� Balance intense focus on priorities with flexibility on implementation….
Seven Basic Principles, con’t
� Decide about new organization architecture
� Build personal credibility and momentum
� Earn right to transform entity
� Remember there is no “one” way to manage a transition
Core Tasks
� Create Momentum
� Master technologies of learning, visioning, and coalition building
� Manage oneself
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Create Momentum
� Foundation for change
• Vision of how the organization will
look
• Build political base to support change
• Modify culture to fit vision
� Learn and know about company
� Securing early wins
• First set short term goals
• When achieved make a big deal
• Should fit long term strategy
Create Momentum
� Build credibility
• Demanding but can be satisfied
• Accessible but not too familiar
• Focused but flexible
• Active
• Can make tough calls but humane
Master Technologies
� Learn from internal and external sources
� Visioning - develop strategy
• Push vs. pull tools
• What values does the strategy embrace?
• What behaviors are needed?
� Communicate the vision
• Simple text - Best channels
• Clear meaning - Do it yourself!
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Enabling Technologies
� Coalition building
• Don’t ignore politics
• Technical change not
enough
• Political management isn’t same as being political
• Prevent blocking coalitions
• Build political capital
Conflict Resolution
“If two people always
agree, one of them is
unnecessary.”
-- Robert Frost
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IMPORTANT Note:
Dealing with people is different from
dealing with things. When working with a
technical problem, it is often beneficial
to focus on its source. When dealing
with people, however, experience has
shown that the focus must be on
solutions.
Conflict cannot be successfully managed in an
atmosphere of distrust. Distrust causes people
not to share ideas. Success in the group
decision-making process depends on utilizing
the creativity of each group member to solve
problems. Unlocking this creativity is
contingent on providing a climate of trust
where individuals do not fear the
consequences that may result from the sharing
of ideas.
The Importance of Trust
Causes of Distrust
In order to deal with a lack of trust, its causes must be
understood and minimized. Distrust results from the
"fears" that exist in all organizations. These often
include fears related to:
• Reprisal
• Failure
• Providing information
• Not knowing
• Giving up control
• Change
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“Conflict is a form of interaction among
parties that differ in
interest, perceptions,
and preferences.”
Redefining “Failure”
�Some teams think “conflict = failure”
�Conflict is natural in the context of a team with a deadline
�A true “failure” is an event where everyone agrees that something went wrong and should be avoided in the future
�All failures should be examined/analyzed by the group BEFORE the next phase of the project is started.
�This way a mistake should only happen ONCE.
�To show continued trust in the individuals involved in the original error, delegate the solution agreed upon by the team to these individuals.
Commonalities of Behavior
• People choose to act as they do.
• Rules do not change behavior.
• The ultimate goal of behavior is to fulfill the need to belong and feel worthwhile.
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Signs THAT tell you conflict is heating
up ON YOUR TEAM:
• Too much strong feeling attached to seemingly trivial topics.
• Rapidly shifting eyes or glaring.
• Name-calling and personal attacks.
• Implied or expressed threats.
• Expressions of panic, desperation, or despair.
• Needless harping on the same point.
• An obvious effort to gather allies and set up opposed camps on an issue.
• Inappropriate use of biting humor and sarcasm.
When Teams are Experiencing
CONFLICT:
• Unwillingness to discuss anything except "safe" topics.
• Letting others “carry the ball.”
• Silence from usually talkative people.
• Failure to move on to the next logical steps.
• Unwillingness to share information.
• “Knowing” glances and nonverbal cues.
• Recycling of old ideas.
• Premature agreement just to "keep the peace."
Types of Conflict
• Healthy
• Unhealthy
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Causes of Conflict
• Personalities
• Schedules
• Differing Priorities
• Competition for Resources
• Technical Opinions
• Performance Trade-offs
• Administrative Procedures
How is Conflict Manifested in the
Team?
�Team conflict can be manifested in any or all of the following ways:
•Attitudes: almost always poor
•Behaviors: unreliable, inconsistent
•Structure: team infrastructure is not
working (meetings, communication frequency, jobs are not getting done)
Examples of Team Conflict
�Describe:
• Factual situation
• Effects on team members
• How the conflict was handled
• Effects of Resolution on Team Member(s)
�“Why is conflict so difficult to deal with?”
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Constructive (functional) Conflict…
� Forces members/subgroups to discuss their differing viewpoints
� Often results in mutual understanding
� Helps a team achieves its goals• Example: Member A wants to use Method I
while Member B wants to use Method 2 to
design a necessary component
• Resulting discussion clarifies A & B’s viewpoints
and a decision is reached
Not all conflict is
negative
Destructive (dysfunctional) Conflict…
�Is a hindrance to the team
�Leads to reduced productivity and morale
�Should always be addressed and never ignored
•Example: Member A wants to exclude Member B from future meetings because Member B often is late to meetings
•Resulting discussion reduces team resources for project completion
�
Conflict that
reduces effectiveness
is negative
Three Alternative Strategies
for Managing Conflict
• The Power-Play
• Bargaining
• Collaboration
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The Power-Play
• Seeks a win/lose solution.
• Assumes people always act primarily in their own self-interest.
• Characterized by secrecy/distortion.
• Unilateral manipulations.
• Power inequities accepted.
Bargaining
• Seeks a compromise or win/lose solution.
• Assumes people are united for a “common good.”
• Involves strategic sharing of information and resources.
• Trade-offs.
• There is a struggle
� for power parity.
Collaboration
• Seeks a win/win solution.
• Assumes people are (or have the inherent potential to be) open and honest.
• Characterized by an open sharing of information.
• Joint problem-solving.
• Power parity is accepted.
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Managing Conflictfor Productive Results Requires:
• Establishing a positive atmosphere that encourages people to discuss conflict freely.
• Focusing on goals and objectives (outcomes).
• Utilizing constructive confrontation when appropriate.
• Emphasizing a "win-win" solution.
• Clarifying the lines of authority.
• Resorting to external assistance as a last resort.
Recommendations
for Dealing With Conflict
� Plan how you are going to address the problem.
� Address the problem to the appropriate person.
� Limit yourself to one problem at a time.
� Limit yourself to a current problem.� Don't deal with problems that are impossible
to change.
� Don't worry about reasons & motives.� Avoid the use of comparisons.
How Teams Deal
with Difficult Individuals
• Gain agreement that a problem exists.• Discuss alternative solutions.
• Mutually agree on action.
• Identify consequences.• Follow-up and measure progress.
• Recognize and reward any achievement.
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Five Rules
for CONSTRUCTIVE
Confrontation
�Be honest.
�Take the initiative.
�Timing is crucial.
�Be specific.
�Mean it.
Goals, Objectives
& the Planning Process
Introduction
Of all the functions involved in lean
leadership, planning is one of the most important. As the old saying goes, “Failing to plan is planning to fail”.
Setting goals and objectives is the first and most critical step in the planning process. Employers need to be sure all
employees are well trained in how to set these important performance
measurements.
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Values determine
Goals...
Goals determine
Priorities
The Bullfight
The Bullfight
� In five words or less, describe the
outcome of a bullfight.
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The Bullfight
� Who is stronger, the matador or the bull?
� The Bull!
� Who is faster, the matador or the bull?
� The Bull!
� Who is deadlier, the matador or the bull?
� The Bull!
The Bullfight
� It is a matter of goal orientation.
The Bullfight
� “Forget the cape, go after the guy in the
funny pants”
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The Bullfight
Importance of Setting Goals &
Objectives
� Planning is the most important
management function.
• As the old quote goes, “Failing to plan is planning to fail”
� Setting goals and objectives is important
because it is the first and most critical step in a company’s planning process.
Goals
� Goals are what is to be achieved.
They are generally broad in scope
and represent the purpose to be
achieved by the organization or the
work unit.
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� If the purpose of the organization is to
sell food prepared into tasty meals for
local customers,
• then a goal may be to increase the number of meals sold or increase market share.
• Another goal may be to increase customer satisfaction by providing excellent service.
Goals
Goals may be classified as either
OPERATIONAL
or
NONOPERATIONAL.
GOALS
Goal Setting
� Specific
� Meaningful
� Accepted
� Realistic
� Time – Framed
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Goals vs. Objectives
Goals� General
� Intangible
� Broad
� Abstract
� Strategic – long-range
direction, set by top executives
Objectives
• Specific
• Measurable
• Narrow
• Concrete
• Tactical – short-range, set
by mangers to accomplish goals
• Clear
• Challenging but
achievable
Although the terms “goals” and “objectives” are often used interchangeably, there is a difference between them:
Measurable Objectives
� Measurements for objectives help you
know when you have accomplished
them.
� If you set an objective that is
measurable, when you complete it you have tangible evidence of completion.
Specific Objectives
Specific objectives are:
� Concrete
� Detailed
� Focused
� Well-defined
� Straight-forward
� Action-oriented
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Standards
� Measures of what is expected.
� Products and services are based upon
some standard that meets the organizational goals or customer
expectations.
� Performance or outcomes can be measured against these standards to
determine it expectations are being met.
Controlling
� The management function of making
sure that work goes according to plan.
� The planning function sets the goals; the controlling function monitors
performance.
� Planning and controlling can be on the organizational level, department level,
and on specific products and services.
Types of Controls
� The three types of control are
• feedback
• concurrent
• precontrol
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Goals and objectives relate
directly to how a team goes
about reaching consensus.
Benefits of Clear Goals and
Objectives
- increased productivity
- effective use of resources
- clarified roles and
responsibilities
- increased motivation
- objective appraisal criteria
Key Result Areas
(KRAs)
Subject areas within which activities will
take place:
-- market standing
-- products and services
-- customers or clients
-- innovation and research
-- productivity
-- financial and physical resources
-- human resource management
-- profitability
-- social responsibility
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GOALS
- statements of purpose and
direction
- condition/situation desired
- long term (1-15 years)
- an end
- general in nature
- broad in scope
- provide framework for defining
objectives
One can achieve a goal, but one cannot do a goal.
>> Goals should be IN WRITING.
>> Goals should be both SHORT-TERM
and LONG-TERM.
>> Short-Term Goals must be COMPATIBLE
with Long-Term Goals.
>> The Number of Goals must be
MANAGEABLE.
>> Goals should be translated into
implementable steps (OBJECTIVES).
Goals
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Objectives
I/We will + action word +
key result area
+ target date + conditions
>> Objectives should be
EVALUATED
(Progress should be Monitored)
Objectives
You must be willing to MODIFY both goals and objectives if necessary.
Goals & Objectives
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A plan that lists specific actions
that
will be carried out to make an
Objective
a reality within a time schedule.
Action Plan
Accountability
Commonalities of Behavior
• People choose to act as they do.
• Rules do not change behavior.
• The ultimate goal of behavior is to fulfill the need to belong and feel
worthwhile.
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Employee Performance
� Task performance – How well employees perform their formal job duties.
� Contextual performance –The extent to which employees perform extra role behaviors (that is, discretionary duties or duties not in one’s job description).• Examples of contextual performance include
informally mentoring a new employee or “going the extra mile” to help a customer.
What it is: Purpose:
� A report card for employees and management
� Goal setting tool
� Often misused tool for determining salary adjustment
� Dreaded activity for both employers and employees
� To help the person being appraised to do better
� To motivate employees
� Acknowledge a job well done
� A way of showing that management appreciates personal commitments
Why have a Performance
Management Process?
� Clear Expectations of the Individual � Aligned Goals� Clear Performance Understanding
� Career Development Plan � Plan for Individual Improvement in the
position� Evaluate Corporate Resources (individuals)
� Individual Income Management� Manage individual Expectations� Open two-way Communication
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What is a Summary
Discussion?
� Leader and employee discuss:
• performance against goals
• summary of feedback collected, how that information was applied
• strength/development area identification
• career growth (short and long term)
• development needs and plan
� Formal documentation once per year
(based on reviews during the year)
Problems with traditional
appraisals:
� Often point to excellent or poor
employees, leaves out the vast middle
ground
� Employee rated by a single person
� Political or Personal Reasons
� Halo effect
New Types of Appraisals
� Peer Reviews
� Self-Reviews
� Upward Assessments
� 360 Degree Feedback (360 Review)
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Peer Review
� Peers are asked to evaluate each others performance, set goals, and objectives
� Peers understand each others’ work and air grievances in a non-threatening manner
� Reduces the amount of office politics and allows concentration on work
� Works best if all parties know that the reviews will NOT be used for setting pay, promotion possibilities, or disciplinary actions.
Self-Reviews
� Employees rate themselves on certain criteria and suggest improvements
� They clarify their own goals and expose areas of weakness
� Manager becomes more of a counselor than a judge
� People may not see their own deficiencies as others do, so this method needs to be used with another method to be effective
Upward Assessments
� Usually administered by outside
consultants with experience, needed
skills, and an “objective outsider” image so people can open up to them without
fear of reprisal.
� Used at least every two years
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360 Degree Feedback
� Most costly type of appraisal
� Includes self ratings, peer review, and upward assessments
� Feedback is sought from everyone
� Gives people a chance to know how they are seen by others
� Has high employee involvement and credibility
� Has strong impact on behavior and performance
Process of Performance
Appraisal Step 1
� Establish and communicate expectations for performance.
• List three to five major responsibilities of each position.
• Focus the appraisal on these responsibilities.
• Be sure employees know and understand
what is expected of them.
• Employee are most likely to understand and
be committed to objectives they helped develop.
Step 2
� Establish and communicate
standards for measuring
performance.
• Each expectation should be measurable.
• A supervisor’s task includes deciding how to
measure employees’ performance and then
making sure employees know what will be
measured.
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Step 3
� Observe and measure individual
performance against standards.
• A supervisor should continuously gather
information about each employee’s
performance.
• When preparing a performance appraisal, a
supervisor compares this information with
the standards for the employee being
appraised.
Step 4
� Reinforce performance or provide
remedies.
• Point out to employees where they have
performed well.
• Asking an employee to help solve a problem
is often more effective than the supervisor
simply stating a remedy.
Be Objective!
• Everything we say should relate
to the job or job performance
• Don’t get caught up in
personalities
• Judge the work, not the
individual
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“How can I avoid upsetting my employees with the appraisal
process?”
• Treat them consistently.
• Keep good documentation.
• Address performance problems when they occur. Don’t wait until the interview to inform them. No surprises!
• Be supportive. Remain objective. Don’t play favorites.
•Be prepared for the interview.
“How can I measure whether my Team members are meeting
expectations?”
You might use these:- valid compliments and complaints from
customers, - customer satisfaction surveys, and- your own observations.
Whatever measures you use, the employee needs to clearly understand what your standards are at the beginning of the evaluation period.
“I have an employee with
an attitude problem.” How do I reflect that on their appraisal?”
How do you know that your employee has an attitude problem? Probably because of certain behaviors: rudeness to co-workers or customers or not performing duties in a timely manner.
Rate the employee based on those behaviors. Not only is this more objective, but is it far more descriptive than saying the employee has an attitude problem. And it allows the employee to know specifically what he or she needs to know to improve.
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Employee Performance
To maximize employee performance,
the following strategies should be employed:
� 1. Communicate performance goals at hire.
� 2. Perform periodic performance
appraisals.
� 3. Allow employees to participate, to the extent possible, in the formulation
of their performance goals.
What is Continuous
Feedback?
� Collect feedback from managers, peers, co-workers, customers, and suppliers to assess
performance against goals, customer satisfaction, and developmental needs
� Collected on an on-going basis via informal and formal means
� Captures both
• what was achieved
• how was it accomplished
Benefits of Continuous Feedback
� Collect specific, actionable information directly from individuals with whom employee works most closely. This information can be used to improve:
• individual performance
• work processes
• relationships with others
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Common Types of Problem
Behavior
� In general, problem employees fall into two
categories:
� (1) employees causing problems,
for example by starting fights or leaving early, and
� (2) employees with problems,
such as an employee whose money worries are a distraction
from work.
Common Performance
Deficiencies
� Absenteeism
� Tardiness
� Poor attitude/insubordination
� Poor task performance
� Poor contextual performance
Alternatives to Traditional
Disciplinary Processes
� Informal verbal counseling–Sometimes merely talking with an employee regarding performance issues may increase performance.
� Training/re-training– An employee’s performance and conduct may be improved by additional training.
� Performance improvement plans–While not generally considered discipline, these plans offer employees a roadmap for improving their performance.
� Employee assistance programs (EAP)–These programs offer employees help in dealing with problems from their personal lives that might negatively affect performance.
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Recommendations
for Dealing With Problem Behaviors
• Plan how you are going to address the problem.
• Address the problem to the appropriate person.
• Limit yourself to one problem at a time.
• Limit yourself to a current problem.• Don't deal with problems that are
impossible to change.
• Don't worry about reasons & motives.• Avoid the use of comparisons.
Remember:
Performance Appraisals aren’t just
another task….
….they deal with people’s lives and futures!
� How you handle appraisals has huge impact on employees
� Good appraisals really motivate good
employees
� Good appraisals can turn around employees
who need help
� Good appraisals help build good relationships
Change Management
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The Change Management Curve
Being a Change Management Leader
� INITIATING CHANGE: Creating business relevance and
meaning for a change is essential for success.
� MOBILIZING COMMITMENT: Managing the human
element of change is central to the success of the change.
� TRANSITIONING: Create the conditions within which the
change can occur successfully.
� MAKING CHANGE LAST: Managing change is a process,
not an event.
The Adaptive Organization
� Willingness to make change
� Identifies problems quickly• Internal and external
looking
� Implements solutions rapidly
� Focus on innovation• Upward communication
� Trust
� Risk taking is rewarded
� Candidness
� Open to feedback
� Enthusiasm
� Long-term focus
� Skill Development
� Learning Organization
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Prerequisites for Change
� Vision: Develop, articulate and communicate a shared vision of the desired change
� Need: A compelling need has been developed and is shared
� Means: The practical means to achieve vision: planned, developed and implemented
� Rewards: Aligned to encourage appropriate behavior compatible with vision and change
� Feedback: Given Frequently
The Nature of Change
Change in business is not new — it’s just accelerating due to…
� New technology.
� Global competition.
� Growth & increased complexity.
� The result: Change or die
What to Expect from Change
� Sense of loss, confusion.� Mistrust and a “me” focus.� Fear of letting go of that which led to success in
the past.
� People hold onto & value the past.� High uncertainty, low stability, high emotional
stress� Perceived high levels of inconsistency.� High energy — often undirected.� Control becomes a major issue.
� Conflict increases — especially between groups.
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Individual Prerequisites for Change to Occur
Thinking & Understanding
Emotional/ Motivational
Behavioral
Why should I change?
What’s in it for me?
What do I do differently?
Change Management
Effective Change
Equals
Altering
Mind-set
Harnessing
Motivation
Shaping
Behavior
Stages of Change Management
“Coming to Grips with the Problem”“Coming to Grips with the Problem”
“Working through the Change”“Working through the Change”
“Attaining and Sustaining Improvement”“Attaining and Sustaining Improvement”
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Understanding What Stage of Change They’re In
Questions Stage
� Do they see a need for change?
� How uncomfortable are they with the status quo?
� Do they have any sense of urgency about
changing?
� Are they struggling with making the change work?
� Are they looking for ways to make it work?
� Are they communicating with others involved in the change, to get salutations to problems, share Best Practices, etc.
� Are they looking for ways to leverage the
change? To enhance it?
One:
Coming to grips with the problem.
Two:
Working through the
change.
Three:
Attaining & sustaining improvement.
One:
Coming to grips with the problem.
Two:
Working through the
change.
Three:
Attaining & sustaining improvement.
Addressing Behaviors
� Identify training needs & communicate
upwards.
� Create goals to work toward: a vision of success.
� Help people create specific, concrete
behavior-change plans as needed.
� Communicate in multiple forms.
A Stepped
Approach to
Change
StartX
A journey of a thousand
miles occurs one step at a time.
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Summary
� You have to be comfortable with the change before you can get others to change.
� People can’t (or don’t want to) change when they don’t understand.• What, why, how, WIIFM.
� You can’t intervene until you understand the situation.
� Resistance is part of the change process.• Work with it.
� Address change at all three levels to be successful.
� Sustainable change occurs in steps.• Define your priorities. Don’t take on too much at once.
Problem-Solving/Decision-Making
LET’S TALK ABOUT:
� Why don’t we think creatively more often?
� What are the barriers that get in our way?
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BARRIERS THAT GET IN OUR WAY
� Time
� Why change?
� Usually don’t need to be creative
� Habit
� Routine
� Haven’t been taught to be creative
What are some other barriers that get in our way?
MENTAL BLOCKS
Mental blocks are
reasons (attitudes) why we don’t “think something different.”
MENTAL BLOCK # 1
1. The right answer.
Only one?
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MENTAL BLOCK # 2
1. The right answer.
2. That’s not logical.
MENTAL BLOCK # 3
1. The right answer.
2. That’s not logical.
3. Follow the rules.
Why rules should be
challenged:
�1. We make rules based on reasons that make a lot
of sense.
�2. We follow these rules.
�3. Time passes, and
things change.
�4. The original reasons for the generation of these
rules may no longer exist,
but because the rules are still in place, we continue
to follow them.
MENTAL BLOCK # 4
1. The right answer.
2. That’s not logical.
3. Follow the rules.
4. Be practical.
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MENTAL BLOCK # 5
1. The right answer.
2. That’s not logical.
3. Follow the rules.
4. Be practical.
5. Play is frivolous.
“Get SERIOUS!”
MENTAL BLOCK # 6
6. That’s not my area.
MENTAL BLOCK # 7
6. That’s not my area.
7. Avoid ambiguity.
AMBIGUITY
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MENTAL BLOCK # 8
6. That’s not my area.
7. Avoid ambiguity.
8. Don’t be foolish.
MENTAL BLOCK # 9
6. That’s not my area.
7. Avoid ambiguity.
8. Don’t be foolish.
9. To err is wrong.
MENTAL BLOCK # 10
6. That’s not my area.
7. Avoid ambiguity.
8. Don’t be foolish.
9. To err is wrong.
10. I’m not creative.
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STEP 1. State what appears to be
the problem.
The real problem may not surface until facts have been gathered and analyzed. Therefore, start with what you assume to be the problem,
that can later be confirmed or corrected.
CREATIVE PROBLEM SOLVING PROCESS
STEP 2. Gather facts, feelings
and opinions.� What happened?
� Where, when and how did it occur?
� What is it’s size, scope, and severity?
� Who and what is affected?
� Likely to happen again?
� Need to be corrected?
� May need to assign priorities to critical elements.
CREATIVE PROBLEM SOLVING PROCESS
STEP 3. Restate the problem.
The real facts help make this possible, and provide supporting data.
The actual problem may, or may not be the same as stated in Step 1.
CREATIVE PROBLEM SOLVING PROCESS
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CREATIVE PROBLEM SOLVING PROCESS
STEP 4. Identify
alternative solutions.
Generate ideas. Do not
eliminate any possible solutions until several have been discussed.
CREATIVE PROBLEM SOLVING PROCESS
STEP 5. Evaluate alternatives.
� Which will provide the optimum solution?
� What are the risks?
� Are costs in keeping with the benefits?
� Will the solution create new problems?
CREATIVE PROBLEM SOLVING PROCESS
STEP 6. Implement the decision!
� Who must be involved?
� To what extent?
� How, when and where?
� Who will the decision impact?
� What might go wrong?
� How will the results be reported and verified?
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CREATIVE PROBLEM SOLVING PROCESS
STEP 7. Evaluate the results.
� Test the solution against the desired results.
� Make revisions if necessary.
How To Do Problem Solving
Facts / data available
Facts / data selected
Inferences made
Judgments made
Decisions made
Actionstaken
Problem Solving&
Decision Making
Challenges
Goals
Opportunities
Suitable
Feasible
Flexible
Define the Problem
Gather Information
DevelopAlternatives
WeighAlternatives
Facts & Data
Boundaries
StakeholdersOpinions &Assumptions
Brainstorm
Openness
Identify importantCriteria
Identify advantages& constraintsSelect the
alternative
ImplementSolution
Develop a plan
Inform stakeholders
Compromise
Results
Procedure & Process
MonitorProgress
Review/Learn from your
Experience
Evaluate &
Prioritize
If results do not meet
expectations reconsider
Data analysis
Standardize
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TOOLS
QC techniques are methods for establishing control by discovering problems, arranging and interpreting information, analysing factors, taking corrective
actions, and making improvements K. Hosotani
1. Check sheet
2. Pareto diagram
3. Cause-and-effect diagram
4. Histogram
5. Control chart
6. Scatter diagram
7. Graph
1. Relations diagram
2. Affinity diagram
3. Matrix diagram
4. Systematic diagram(Tree diagram)
5. Matrix data analysis
6. Process Decision Program Chart (PDPC)
7. Arrow diagram
Seven Management ToolsSeven QC Tools
• Flowcharts• Sampling methods• Testing and estimation• Design of experiments
• Correlation and regression analysis• Reliability engineering (FTA,FMEA,Weibull..)
• Multivariate analysis
• Optimisation methods (Linear Programming etc)
Other tools
WORKING WITH FACTS AND DATA
• Being reality oriented, not just concept oriented
The Three Reals
1. The real workplace
2. The real object
3. The real fact
• Distinction between facts and opinions (or interpretation).
Use of language tools
• Precise use of language is related to thinking with facts
• Where there are a number of complex interrelations between
causes statistical treatment is essential
Control ChartPareto Chart
Data CollectingScatter Plot Ishikawa Chart
HistogramStratification
* **
***
***
The Seven tools
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Techniques For Improvement
Inputs Outputs
Input-Output analysis
Flow Charts
x
xx
x
x
xx
x
Scatter Diagrams
Cause-Effect Diagrams
Pareto Analysis Why - why analysis
Why?
Why?
Why?
WHY Analysis
� When confronted with a problem, have you ever stopped & asked why five times ?
� It is difficult to do even though it sounds easy. For example, suppose a machine stopped functioning:
Question 1 : Why did the machine stop?
Answer 1 : Because the fuse blew due to an overload
Question 2 : Why was there an overload?
Answer 2 : Because the bearing lubrication was inadequate
Question 3 : Why was the lubrication inadequate?
Answer 3 : Because the lubrication pump was not pumping sufficiently
Question 4 : Why wasn’t the lubricating pump working right?
Answer 4 : Because the pump shaft was worn and rattling
Question 5 : Why was it worn out?
Answer 5 : Because there was no strainer and the metal scrap got in
� By repeating “why” five times, it was possible to identify the real cause and hence the
real solution: attaching a strainer to the lubricating pump.
� If this procedure were not carried through one might as well have replaced the fuse or the pump shaft. In that case, the problem would recur within a few months.
The path to skill in decision making
Unconsciousincompetence
Consciousincompetence
Consciouscompetence
Unconsciouscompetence
Rules of thumb recipes
Myriad specific situations
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ConsensusDecision-Making
• KnowKnowKnowKnow
• StateStateStateState
• ListenListenListenListen
• AvoidAvoidAvoidAvoid
• RecognizeRecognizeRecognizeRecognize
Organizational Assessment
Organizational (Corporate)
Culture
“a pattern of basic assumptions that are considered valid and
that are taught to new members as the way to perceive, think, and feel in the organization”
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Levels of
Organizational
Culture
Artifacts – symbols ofculture in the physical
and social work environment
ValuesEspoused: what members of an organization say they valueEnacted: reflected in the way
individuals actually behave
Assumptions – deeply held
beliefs that guide behavior and tell members of an organization how to perceive and think about things
Functions of Organizational
Culture
� Culture provides a sense of identity to members and increases their commitment to the organization
� Culture is a sense-making device for
organization members
� Culture reinforces the values of the organization
� Culture serves as a control mechanism for shaping behavior
Strong Culture
“an organizational culture with a consensus on the values
that drive the company and with an intensity that is recognizable even to
outsiders”
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• They are characterized by goal alignment
• They create a high level of
motivation because of shared
values by the members
• They provide control without the
oppressive effects of bureaucracy
Strong Cultures Facilitate
Performance
Three particular industry
characteristics affect culture:
1.Competitive environment
2.Customer requirements3.Societal expectations
Fit Perspective
Adaptive Culture
“an organizational culture that encourages confidence and risk
taking among employees, has leadership that produces change, and focuses on the
changing needs of customers”
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Most Important Elements
in Managing Culture
� What leaders pay attention to
� How leaders react to crises
� How leaders behave
� How leaders allocate rewards
� How leaders hire and fire individuals
Organizational Socialization
“the process by which newcomers are transformed
from outsiders to participating, effective members of the organization”
1. [Anticipatory Socialization] – all of
the learning that takes place prior to the newcomer’s first day on the job
2. [Encounter] – newcomer learns the
tasks associated with the job, clarifies roles, and establishes new relationships at work
3. [Change and Acquisition] – newcomer begins to master the demands of the job
Socialization Process
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Outcomes of Socialization
Newcomers who are successfully
socialized should exhibit:
• Good performance
• High job satisfaction
• Intention to stay with organization
• Low levels of distress symptoms
• High level of organizational commitment
Cultural Changes
With rapid environmental changes such as globalization, workforce diversity and technological innovation, the fundamental assumptions and basic values that drive the organization may need to be altered.
Beyond the Book:Six Guidelines to Creating a Global Culture
1. Create a clear and simple mission statement
2. Create systems that ensure an effective flow of information
3. Broaden managers’ minds to allow them to
think globally
4. Develop global career paths
5. Use cultural differences as a major asset
6. Implement worldwide management education and team development programs
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Pulling It All Together
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Lean Leadership on the Front
Lines
• Don’t expect that you can change your organization unless you’re
the CEO/President but your area of responsibility will improve.
• Change happens in the trenches but must be lead from the top.
• You can almost guarantee world class success in those areas of the organization that you lead.
• Lead change only in those areas where you can exert significant
and long lasting influence. It helps spread the word to other areas.
• If you wish to change an organization you must be intimately
aware of group dynamics and resistance to change and must appreciate that you’re up against a an unthinking, self organizing
system.
Eight Key Rules to Follow When Attempting to
Lead an Organization Into a Lean Culture
1. You cannot exactly predict every outcome and paying attention to the details can spell the difference between success and disaster.
2. Control from the bottom up as complex systems operate as the sum of the
actions and interactions of individual entities operating in real time.
3. Focus on teaching new rules rather than measuring outcomes. Remember most of what happens in a complex system goes unreported or unnoticed.
4. Entity excellence comes only from challenge and achievement. Entities or people only change and improve when they are challenged.
5. Grow by chunking. Change often fails because the initiator tries to hard, too
fast and with two large a part of the organization.
6. Encourage errors. Mistakes are going to happen, but be afraid to fail a few times.
7. Complex systems cannot be accurately characterized by one measure. There is no one measure of organizational health.
8. It is impossible to optimize every measure of a complex system..
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Nine Key Things Not to Do when trying to
become A Lean Leader
1. Don’t let yourself get talked out of doing it.
2. Don’t give it a name.
3. Don make a speech or a company wide
announcement
4. Do not launch a massive training program.
5. Do not hire a consulting group to “do It.”
6. Do not make it the responsibility of “ one area.”
7. Do not isolate it from the day to day business.
8. Do not order coffee cups, banners, etc.
9. Do not worry if you are not sure what you are doing.
Case Study
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Primary Sources
Primary Sources
Primary Sources
