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Lean leaning leadership


Ultimately, what Lean/CI yields in organizations is: ... reorganized, or reinvented people you can muster, cannot compensate for a dysfunctional system. ... – PowerPoint PPT presentation

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Title: Lean leaning leadership

Lean leaning leadership
  • A Managers role in implementing and sustaining
    continuous process improvement

  • Ultimately, what Lean/CI yields in organizations
  • Improved service delivery reduce time, improving
    quality (i.e reduced defects)
  • Improved employee morale
  • Increase capacity
  • Without the addition of people, equipment, or
  • To create and sustain a Lean/CI culture requires
    the knowledge and commitment of the leaders of
    the organization.

Is it improvementor just change?
  • All the empowered, motivated, teamed-up,
    self-directed, incentivized, accountable,
    re-engineered, reorganized, or reinvented people
    you can muster, cannot compensate for a
    dysfunctional system.
  • Peter Scholtes
  • The Leaders Handbook

Implementing Lean
  • Lean is a set of tools, but more importantly
    it is a philosophy that leaders must learn,
    exhibit and communicate to create and sustain a
    culture of continuous process improvement.

Creating a culture
  • Changing habits, behavior, and the way your
    people think

Culture exists on three levels
  • Espoused values what leaders say (mission,
    vision, values, etc.)
  • Artifacts What kinds of behaviors are punished
    or rewarded, encouraged, ignored or tolerated.
    How do leaders behave?
  • Assumptions the unwritten rules that usually
    evolve from a combination of espoused values and

We change culture by action at the top two levels
Espoused Values What do we tell our people
  • What you say matters
  • How you say it matters
  • Bringing about a transformation of culture is not
    the business of a program its the business of
  • So what are your core values?
  • Do people know what your core values are?

You wont change culture flying under the radar
Artifacts What do people see?
  • Action Do your actions match your words?
  • Accountability Do you hold yourself
    accountable? Do you hold others accountable for
    those things that are their responsibility?
  • Role-modeling - Do you demonstrate that learning
    and reasonable risk-taking are important to you?
  • When something goes wrong, do you examine the
    process first, or immediately look for who
    screwed up?
  • What types of people get promoted?

Shared assumptionsour culture really is..
  • This is the most powerful level of culture
  • Unwritten rules are very slow to change
  • Change comes from consistent, meaningful espoused
    values, and different behaviors starting with
  • The change you want to see in your area of
    influence starts with you.

Organizational Culture
The Organizational Culture exists where the
assumptions of its members overlap. This is what
makes culture change difficult and so powerful.
Shared Assumptions are the DNA of Cultures
Organizational Culture
Relatively Strong Culture
Relatively Weak Culture
Changing assumptions
  • Adults are big kids role-model the behavior you
    expect to see from your employees
  • If something goes wrong, first understand what in
    the process contributed to it.
  • Stop being Ranger Rick, and start being Smokey
    the Bear
  • Personally challenge the status quo
  • Leaders must learn, do, teach

Changing assumptions
  • Learn and apply the 5 whys
  • Learn how to measure process performance, as well
    as process outputs.
  • Hold people accountable stop enabling bad
    behavior. This is where the rules get validated
  • Reward thoughtful risk takers these are the
    people you promote
  • Understand the essential work of management

What is the work of management?
Three definitions of work in a Lean world
  • Value-added work that directly creates value
    for a customer
  • Incidental essential work that is necessary so
    others can perform value-added work
  • Non-value added work that neither directly
    creates value for a customer, nor is incidental
    to performing value-added work

What many modern managers do.
  • Very small amounts of value-creating work
  • Vast amounts of incidental work annual plans,
    budgets, hiring staff, performance reviews,
    information sharing meetings
  • Vast amounts of non-value added work rework
    (fixing and/or explaining process variations aka
    defects, meetings without clear objectives or
    specified outcomes, elaborate policy decisions
    without understanding the implications to
    existing processes, etc. etc. )

Modern vs Lean
  • Strong focus on vertical functions and
    departments, as mechanisms for control and
  • Strong focus on the horizontal flow of business
    processes (the value stream) across many units

Modern vs Lean
  • Clear grants of managerial authority by leaders
    to the next level of the organization (vertical
    downward delegation)
  • Clear grants of managerial responsibility from
    managers to the next higher level to solve
    cross-functional, horizontal problems within a
    vertical structure (upward delegation)

Modern vs Lean
  • Front line supervisors judged on end-of-process
    results only
  • Front line supervisors judged on the performance
    of their process
  • If the process is right, the results will be

Modern vs Lean
  • Decisions made by managers far from the point of
    value creation, by analyzing data (usually only
    end-of-process data)
  • Decisions made at the point of value creation (Go
    see, ask why do the Gemba walk)

The value creating work of Lean leaning managers
  • Gain agreement on what is important (usually
    senior leaders)
  • Create brilliant lean processes to achieve whats
    important (usually mid/upper level managers
  • Create stability and then continuously improve
    every process (front line managers)
  • Mentor and support subordinates, vigorously
    attack value stream roadblocks and waste (all

Internal controls QA vs. QC
  • Do we build, manage and monitor processes to
    produce predictable, consistent, desirable
    results? (i.e. the more complex a process the
    more likely it is to produce undesirable results)
  • Or do we assume all processes will deliver
    defects, and attempt to assure quality by
    end-of-process inspection?
  • One of Demings 14 points is to work tirelessly
    to eliminate the need for mass inspection of the
  • Statistically sample the input, and utilize
    in-process measures, to predict outputs, and
    reduce the need for mass inspection.

Common Cause vs. Special Cause
  • Common cause variation are errors/defects that
    relate to a short-coming in the process, or the
    inputs to the process. They can be predicted.
  • Special cause are those defects that lie outside
    the input, or process structure, and usually are
    not predictable.
  • Changing the process in response to special cause
    events will not eliminate the potential for
    defect, in fact it will usually create more
    common cause problems

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