Lean Leadership: Helping Leaders Understand Their Role In The Improvement Process

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Lean Leadership: Helping Leaders Understand Their Role In The Improvement Process

  1. Lean Leadership: Helping Leaders Understand Their Role in the Improvement Process Company LOGO
  2. Your Instructor  Provides Lean transformation support to non-manufacturing settings.  Co-author, The Kaizen Event Planner: Achieving Rapid Improvement in Office, Service, and Technical Settings Co-Developer, Metrics-Based Process Mapping: An Excel Solution Lean Enterprise Program Instructor University of California, San Diego Karen Martin, Principle, Karen Martin & Associates 2
  3. Learning Objectives Participants will learn how to help your leadership team understand their role in the improvement process, including:       Setting improvement strategy Roles & responsibilities of project sponsors and A3 coaches “Letting go” of tactical decisions Briefing attendance Authorizing the frontline to make improvements Modeling lean behaviors Assumption – you’re already familiar with Lean principles and tools © 2011 Karen Martin & Associates 3
  4. Genesis for this webinar Increasing numbers of improvement professionals expressing frustration with the level of leadership support they receive. Increasing numbers of leaders expressing frustration with their improvement teams.  “Help us help you.” Personal experience working with leaders who want direction and education about how they provide the best support. © 2011 Karen Martin & Associates 4
  5. Evidence re: Leadership Commitment – Observe the degree of: Intellectual curiosity re: Lean / change (number of books read, conferences attended) Integration into communications Proclivity to advance change “Walking the talk” © 2011 Karen Martin & Associates 5
  6. Our Vital (and often forgotten) Role One of the key roles of an improvement professional is to educate and coach leadership to help them develop into the improvement-minded leaders you wish them to be. © 2011 Karen Martin & Associates 6
  7. Range of Leadership Commitment Resistance   Active (overt) resistance Passive (covert) resistance Neutral – “lame duck” Commitment  Intellectual  Understand & conversant about Lean  Believe the organization needs it  Emotional  Will expend “discretionary effort” © 2011 Karen Martin & Associates 7
  8. It All Begins with Education © 2011 Karen Martin & Associates 8
  9. Improvement Philosophy A minimum of 10-20% organizational effort spent working on the business  vs. in the business There’s never a “good time” for improvement. OR © 2011 Karen Martin & Associates ? 9
  10. Components for Effective Change Vision Skills Vision Incentives Resources Action Plan Effective Change Incentives Resources Action Plan Confusion Incentives Skills Resources Action Plan Anxiety Resources Action Plan Gradual Change Action Plan Frustration Vision Skills Vision Skills Incentives Vision Skills Incentives Resources False Starts © 2003, Enterprise Mgmt Ltd.
  11. Leadership’s Learning Needs What is Lean?  How is Lean different? What can we expect in terms of results?   What will it take to get them? How long will it take? What’s my role?      Education Setting strategy Assuring alignment Participating / supporting Modeling Lean behavior © 2011 Karen Martin & Associates 11
  12. Leadership’s Learning Needs What is Lean?  How is Lean different? What can we expect in terms of results?   What will it take to get them? How long will it take? What’s my role?      Education Setting strategy Assuring alignment Participating / supporting Modeling Lean behavior © 2011 Karen Martin & Associates 12
  13. What Lean Is…. A highly effective business approach that results in fiscal strength, customer and employee loyalty, and organizational agility. © 2011 Karen Martin & Associates 13
  14. What Leaders Must Understand Lean isn’t merely a process design technique – it’s a business management philosophy. © 2011 Karen Martin & Associates 14
  15. How is it Different? Holistic – value stream-focused Methodical – PDCA Visual management  “Operational transparency” High degree of frontline involvement Requires significant cultural transformation    Learning to see waste and take action Learning how to problem-solve Learning how to engage the frontlines © 2011 Karen Martin & Associates 15
  16. Traditional vs. Lean Thinking Traditional Lean Revenue-focused Margin-focused Improvement focus: optimizing value-added work Improvement focus: eliminating non-valueadded work Fire fighting is rewarded Fire prevention is rewarded Focus on financial metrics & lagging indicators Focus on operational metrics & leading indicators Suboptimization is rewarded Value stream performance is rewarded Specialized workers organized by function Cross-trained workers organized by value streams Complexity is the norm Simplicity is the norm Inspect in quality Build in quality Non-visual workplace / management Visual workplace / management Dynamic schedule and priorities Static priorities and schedule Unclear ownership & accountability Clear ownership & accountability Excessive reviews and approvals by leadership Decisions are made by those closest to the work Improvements identified by management Improvements identified by workers
  17. What Leaders Must Understand Lean is 90% culture / people-based and 10% tools-based. Tools People / Culture © 2011 Karen Martin & Associates 17
  18. Improvement Roles & Tools Strategic Who? Senior Leadership Accountability Tool What has to happen Value Stream Mapping How it will happen Kaizen Events Tactical Middle Management Frontline Workers © 2011 Karen Martin & Associates 18
  19. Leadership’s Learning Needs What is Lean?  How is Lean different? What can we expect in terms of results?   What will it take to get them? How long will it take? What’s my role?      Education Setting strategy Assuring alignment Participating / supporting Modeling Lean behavior © 2011 Karen Martin & Associates 19
  20. Performance Measures Quality Morale Cost Optimal Performance Safety © 2011 Karen Martin & Associates Delivery 20
  21. Typical Benefits Realized 0 25 50 75 100 Lead Time Reduction Productivity Increase WIP Reduction Quality Improvement Space Utilization © 2011 Karen Martin & Associates 21
  22. Mis-Use of Lean Using Lean for headcount reductions is a recipe for failure. © 2011 Karen Martin & Associates 22
  23. What Lean Isn’t… Lean doesn’t solve all problems. 23
  24. Transformation Takes Time Lean requires long-term thinking. The transformation process morphs over time as the organization matures. © 2011 Karen Martin & Associates 24
  25. How Long Will it Take? Lean is a journey, not a destination. 2-5 years of “persistent patience” to reach the first “tier” of measurable results.  The larger the organization, the longer it takes. 10 years to see significant changes. © 2011 Karen Martin & Associates 25
  26. What Leaders Must Understand Transforming into a Lean Enterprise is disruptive. © 2011 Karen Martin & Associates 26
  27. Improvement Pacing Evolution or revolution? © 2011 Karen Martin & Associates 27
  28. Critical Question How will we define success? © 2011 Karen Martin & Associates 28
  29. Leadership’s Learning Needs What is Lean?  How is Lean different? What can we expect in terms of results?   What will it take to get them? How long will it take? What’s my role?      Education Setting strategy Assuring alignment Participating / supporting Modeling Lean behavior © 2011 Karen Martin & Associates 29
  30. Educating Leaders Executive Overviews  Simulations help Regular meetings with Leadership  Lean Steering Committee or Advisory Board? Ongoing “Check-ins” / Training Sessions    How are we doing? What needs to be adjusted? What are our learning needs? © 2011 Karen Martin & Associates 30
  31. Building a Lean Enterprise
  32. Establishing an Improvement Strategy – The Value Stream Map 32
  33. Value Stream Mapping Process Products (good or services) with common process steps Document Current State Repeat Define Product Family Foundation (the basis) for the future state; 70-80% accurate is acceptable (directionally correct) Design Future State Create flow by eliminating waste it is now obvious from your current state map); typically 3-6 months out Create Implementation Plan Implement! 3 Day Event Include accountability and timeframes for completion The goal of mapping!
  34. Future State Value Stream Map Outpatient Imaging Services Standard Work Work Balance Customer Demand: 15 patients perDay (Takt Time1920 seconds) 8 hours per day Co-locate Schedule appt Pre-register Referring Physician Hospital 3 Lead Time = 15 days 2 6 1 Lead Time = 45 mins. Cycle Time = 11 mins. Lead Time = 45 mins. % C&A = 98 % % C&A = 85 % Risk Reduction (Joint Commision) Symposium E Pay Excel Internet Waiting Room Management System Work Balancing Standard Work 3 35 mins. 4 Cycle Time = 1 mins. % C&A = 98 % 0.0833 hrs. 2 Complete Exam (Tech) 5 20 mins. Cycle Time = 10 mins. % C&A = 100 % 0.583 hrs. 1 mins. 2 Transmit Images (Tech) 6 5 mins. Cycle Time = 10 mins. % C&A = 90 % 0.333 hrs. 10 mins. Visual Workplace Set-up Reduction Prep Patient (Tech) Check-in Patient (Imaging) Fax Order Solutions PACS Auto Fax 80% Us Mail 15% MD Mailbox 5% 5S Value Stream Alignment Pull System (Supplies Kanban) Remove Check in and Reduce System Access 5 mins. Meditech CT=Cycle Time LT=Lead Time %C&A=% Complete & Accurate 2 7 120 mins. 2 Review Draft/Sign (Radiologist) 420 mins. Cycle Time = 15 mins. % C&A = 95 % 2 hrs. 2 mins. 8 Batch Reductions Voice Recognition Read/Dictate Exam (Radiologist) Cycle Time = 2 mins. % C&A = 100 % 0.0833 hrs. 10 mins. Continuous Flow 2 Print Reports (Imaging) 9 2 mins. Cycle Time = 1 mins. % C&A = 95 % 7 hrs. 15 mins. Rework Loop via Fax 10% of the time 2 30 mins. Cycle Time = 1 mins. % C&A = 99 % 0.0333 hrs. 1 mins. 10 Send Reports (Imaging) 6 0.5 hrs. 1 mins. 11 Cycle Time = 3 mins. % C&A = 90 % LT = 11.3 hrs. 3 mins. CT = 43 mins. CT/LT Ratio = 6.32% Rolled First Pass yield = 40%
  35. Future State Implementation Plan Value Stream Outpatient Imaging Implementation Plan Review Dates Executive Sponsor Allen Ward 11/1/2007 Value Stream Champion Sally McKinsey 11/21/2007 Value Stream Mapping Facilitator Dave Parks 12/13/2007 Date Created 10/18/2007 Block # 2 Goal / Objective Improve quality of referral Improvement Activity Type KE Implement standard work for referral process Owner Sean O'Ryan PROJ 1/10/2008 Implementation Schedule (weeks) 2 3 4 5 6 7 8 9 10 11 12 Dianne Prichard 3, 4 Reduce lead time beween schedulingand Cross-train and colocate work teams preregistration steps 5, 6 Eliminate the need for two patient checkins Collect copays in Imaging KE Michael O'Shea 6 Eliminate bottleneck in waiting area Balance work / level demand KE Dianne Prichard 9 Eliminate lead time associated with transcription step Implement voice recognition technology PROJ Sam Parks 10 Eliminate batched reading Reduce setup required KE Sam Parks 7 Reduce inventory costs, regulatory risk and storage needs 5S CT supplies area; implement kanban KE Michael O'Shea 12 Reduce delay in report delivery Implement additional fax ports PROJ Martha Allen 12 Reduce delay in report delivery Increase percentage of physicians receiving electronic delivery (rather than hard copy) KE 1 Martha Allen Approvals Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator Signature: Signature: Signature: Date: Date: Date: Date Complete
  36. Building a Lean Enterprise
  37. Interim Briefings Who: Improvement team and ALL involved leadership Purpose     Share discoveries Process check – is the team moving in the right direction? Minimize surprises; gain consensus Discuss policy issues Leadership may not veto tactical decisions  Give them the “rules” upfront Schedule improvement activities around leadership schedules. © 2010 Karen Martin & Associates 37
  38. What is A3? A structured method for applying the PDCA (plando-check-act) approach to problem-solving.  Workforce development into Lean thinkers International designation for 11 x 17” paper. A concise “storyboard,” which visualizes the problem solver’s discoveries and thought process along the way.    Communication Consensus building Organizational learning © 2010 Karen Martin & Associates 38
  39. I.T.R. Project – A3 Report METHODS MACHINE Multiple entry methods no standard means PEOPLE IT access to equipment / user 1 stop shop ITR Form call friend fly by Customer/user process traning Inventory hard to manage Support resources (not enough staff) Only 8 techs to complete the work Inconsistent work close-out activities Manual processing / tracking Inability to define specific needs Lack of req'd product and accounting info Software installation takes too long to complete and close out Limited process tracking Accessibility Time until completion (due dates, completion dates) License procurement Support resources Work location ENVIRONMENT MEASURES MATERIALS 39
  40. A3 Roles & Responsibilities Problem Owner – Person(s) accountable for results; authorized to engage any and all parties needed Problem Coach – Person(s) “developing” the process owner into a skilled problem-solver; typically leadership.   They must be proficient problem-solvers first! Requires leadership development © 2010 Karen Martin & Associates 40
  41. Kaizen Event Charter Event Scope Value Stream Leadership Schedule Executive Sponsor Dates Specific Conditions Value Stream Champion Start & End Times Process Trigger Facilitator Location Team Lead Interim Briefings Event Name First Step Last Step Event Boundaries & Limitations Workforce Training Event Coordinator Event Drivers / Current State Issues Final Presentation Team Members Function 1 2 3 3 5 Contact Information 2 4 Name 1 4 Event Goals and Objectives 5 1 6 2 7 3 8 4 5 9 10 Potential Deliverables On-Call Support Function 1 2 2 4 Contact Information 1 3 Name 3 5 4 Possible Obstacles 1 Approvals Executive Sponsor Value Stream Champion Facilitator 2 3 4 Signature: Date: Signature: Date: Signature: Date:
  42. Role of the Improvement Sponsor  Authorize the activity, scope, objectives, and boundaries   Participate in Charter formation Authorize resources (negotiate with peers, as necessary)  Attend briefings  Remove obstacles to the team’s success    Gain leadership alignment Mediate policy debates “Negotiate” for resources (if needed) with peers and Execs  People, time, funding, materials/technology, space  Authorize modifying the objectives if the organization can’t support the improvement  Accountable for results  Regular check-ins to assure appropriate progress and re-direct if needed © 2010 Karen Martin & Associates 42
  43. Lean Steering Committee / Advisory Team’s Role  Gather improvement ideas from across the enterprise.  Evaluate & prioritize improvement opportunities (closely tied to annual business goals).  Enable alignment across leadership team.  Communicate upcoming improvements and outcomes.  Aid in necessary culture shift.  Assure ongoing process measurement and continuous improvement is occurring.  Determine ongoing workforce development needs.  Stay informed about competing priorities and shift improvement focus accordingly.  Allocate resources.  Assess progress and adjust as needed. © 2010 Karen Martin & Associates 43
  44. Modeling Lean Behaviors Encourage leaders to:     Go to the Gemba Clearly define problems and conduct thorough root cause analysis Allow workers time for improvement Stick to the strategy that’s been set © 2010 Karen Martin & Associates 44
  45. Take the Lead One of the things that I’ve noticed is… Would you be open to…? I was reading …. and they mentioned that… Could we get together to discuss…? © 2010 Karen Martin & Associates 45
  46. Key Success Factors for Achieving Results Tenacity Strategic improvement tied to business goals  Value Stream Mapping Dedicated resources  More on this in next month’s webinar Heavy use of Kaizen Events initially  46 With the goal of maturing to “daily kaizen”
  47. Learning Objectives Participants will learn how to help your leadership team understand their role in the improvement process, including:       Setting improvement strategy Roles & responsibilities of project sponsors and A3 coaches “Letting go” of tactical decisions Briefing attendance Authorizing the frontline to make improvements Modeling lean behaviors Assumption – already familiar with principles and tools 47
  48. Resources Leadership-Focused    Leading the Lean Enterprise Transformation, George Koenigsaecker The Lean Manager, Michael & Freddy Ballé (business novel) Toyota Kata, Mike Rother The “Classics”   The Toyota Way, Jeff Liker Lean Thinking, Jim Womack © 2010 Karen Martin & Associates 48
  49. For Further Questions 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Free monthly newsletter: www.ksmartin.com/subscribe Learn / Connect : 49

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