Culture Change


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The keys to sustaining a Lean transformation are found in the Culture of the organization

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  • The bottom portion of the graph represents suppliers inputting goods and services into any organization and those goods and services being absorbed into the everyday processes and the final outputs going out to the external customer. How good we are at the everyday processes determines the quality (good or bad) that goes out to the external customer Sitting on top of those processes is a management team, hopefully looking far into the future focusing on the strategic direction of the company and pressing for change by shaping a business plan that will be geared to positive change The farther up the management ladder, the farther into the future personnel will be looking But unless the good intentions of management get translated into positive changes in the everyday processes that go on below, we are wasting our time. The person nearest the everyday processes is the first line manager. They are the linchpin between all the good intentions and the everyday processes that make up what we do. MM focuses on helping the first line manager to improve the everyday processes and to deliver the business plan more effectively.
  • This is where to show the classic booklet on “Cost Accounting Principles”
  • Show hand-out of the maturity path There are some norms that we can use to benchmark progress. You want to see progress along this path.
  • We are going to apply the strategic vision on this value stream and begin to identify events that will move us along the maturity path
  • Culture Change

    1. 1. Culture ChangeSustaining a Lean Enterprise Transformation? Presented by Industrial Solutions, Inc
    2. 2. Quick Diagnostic• Answer the questions on the sheet in front of you.• Calculate your score• 10 minutes Industrial Solutions, Inc
    3. 3. Why is Change So Hard ?• We focused on the externals of lean tools• We missed the underlying dynamic of how an organization thinks and processes information Industrial Solutions, Inc
    4. 4. Bad Assumptions• People function on a rational level• Change is good and automatic• Company culture is easy to changer Industrial Solutions, Inc
    5. 5. 5-S QCO Cells Pull Culture
    6. 6. Transformation Keys• Real change occurs at the process level when people start to think differently• Self interest must be linked to clearly defined key performance indicators (KPI)• Performance must be measured in continuous, rapid feedback loops• We have to create a “culture of learning” Industrial Solutions, Inc
    7. 7. CEO Future Mission Statement Strategic Objectives Strategy DeploymentPresent First Line Managers/Supervisors The ProcessesS C Industrial Solutions, Inc
    8. 8. What Changes Need to Occur?• Management focus• View of labor, reward and compensation• Organizational structure/chain of command• Methods of evaluating decisions/results• Data collection and analysis Industrial Solutions, Inc
    9. 9. In Other WordsThe “Culture” is going to be affected if you try to implement lean manufacturing Industrial Solutions, Inc
    10. 10. What Is “Culture”? The set of shared attitudes,values, goals, and practices that characterizes an institution or organization Industrial Solutions, Inc
    11. 11. Industrial Solutions, Inc
    12. 12. Industrial Solutions, Inc
    13. 13. What is the Evidence ofYour Culture at Work• People’s view of their work• What is important to management• How the place looks Industrial Solutions, Inc
    14. 14. How Do You Change a Culture?• Strategy and Alignment• Vision• Communicate and motivate• Empower employees• Implement• Transition to a Learning Organization Industrial Solutions, Inc
    15. 15. Strategy and AlignmentCulture change requires a strategy and top level commitment or your efforts will failCulture change is hard and takes time. Only a long term strategy will keep you on track. Industrial Solutions, Inc
    16. 16. Commitment and Alignment The Management Team has to be pulling together • Are you going to really own the new model • Are you committed to each other’s success The people will listen to what you say…. but they will only believe your actions Industrial Solutions, Inc
    17. 17. The Lean Enterprise Vision Primary GoalsCreating “Flow” along “Value Streams” in response to customer demandEliminating “Waste” in the value streamEncompassing a comprehensive approach to the entire organization - Changing the Culture Industrial Solutions, Inc
    18. 18. A Value Stream Flows Counter To the Current Culture Flow in a value stream is fundamentally different than the processes in traditional organizations that are organized along functional boundaries. Most of the effort in traditional companies is expended in managing the interface between the boundaries. Industrial Solutions, Inc
    19. 19. Now…Create a Vision Without a vision….. the people will perish Industrial Solutions, Inc
    20. 20. A Lean Enterprise Looks Different Defining The VisionWorkplace Order Continuousand Cleanliness Improvement Culture JIT Production, Empowered minimum waste Teams aligned with strategy Superior Visual Quality Management Industrial Solutions, Inc
    21. 21. How Do You Change a Culture?• Strategy and Alignment• Vision• Communicate and motivate Industrial Solutions, Inc
    22. 22. Communicate and MotivatePeople must believe there is a need for change• Training• Communication• Awareness• Metrics Industrial Solutions, Inc
    23. 23. Communication Tools• Employee meetings• Written media• Continuous displays• Embedded messages Industrial Solutions, Inc
    24. 24. EffectiveCommunications Industrial Solutions, Inc
    25. 25. How Do You Change a Culture?• Strategy and Alignment• Vision• Communicate and motivate• Empower employees Industrial Solutions, Inc
    26. 26. Empower• The best companies give all employees 40-60 hours of training every year• Management needs to develop a comprehensive training plan based on the lean strategy• Let people be fully involved in change Industrial Solutions, Inc
    27. 27. How Do You Change a Culture?• Strategy and Alignment• Vision• Communicate and motivate• Empower employees• Implement Industrial Solutions, Inc
    28. 28. Implementation• There is not one right way• You have to adapt to your own needs• The goal is waste elimination, not figuring out a perfect way to get there!! Industrial Solutions, Inc
    29. 29. Implementation• Key on a strategic value stream• Train and empower the key players• Conduct Kaizen Events to jump start activity• Find a simple way to measure• Sustain activity continuously Industrial Solutions, Inc
    30. 30. Strategic Value Stream• Quickest way to affect the bottom line• Focuses your resources while maximizing benefits• Answers many questions about difficult issues Industrial Solutions, Inc
    31. 31. The Maturity Path• Standardized Work,Visual Control• Cellular Flow• Synchronous Production• Pull Systems, Supply Chain• Administrative Systems• Value Stream Costing Industrial Solutions, Inc
    32. 32. Deploy the Strategy• Develop a Plan for Enterprise Conversion• Establish a baseline with a good Assessment Tool• Implement (Deploy the Strategy)• Review Status Periodically Industrial Solutions, Inc
    33. 33. Management TimeTo really change the culture will require full time involvement! • Participating in training • Participating on kaizen teams • Removing barriers • Walking the talk Industrial Solutions, Inc
    34. 34. How Do You Change a Culture?• Strategy and Alignment• Vision• Communicate and motivate• Empower employees• Implement• Transition to a Learning Organization Industrial Solutions, Inc
    35. 35. A Learning Organization• Identified as the key trait for a successful company• What does that mean? Industrial Solutions, Inc
    36. 36. A Learning OrganizationThe distinctive traits• Systematic problem solving• Systematic waste elimination• Direct observation of processes• High agreement on goals and objectives Industrial Solutions, Inc
    37. 37. Systematic Problem Solving• Plan-Do-Check-Act• A3, 8D, 5-Y, 12 Step, etc., etc.• Just do it! Industrial Solutions, Inc
    38. 38. Systematic Waste Elimination• 7 deadly wastes• Why can’t we see it? Industrial Solutions, Inc
    39. 39. Direct Observation• Activities, connection and flows• Point to point relationships• Deep understanding of what is really happening in the organization Industrial Solutions, Inc
    40. 40. High Agreement• What we do and how we do it• Management team must be aligned and pulling for each other• People will detect any misalignment and will revert to existing norms Industrial Solutions, Inc
    41. 41. Concluding StatementsNothing of any significance will ever happen without the commitment and drive of top management.The landscape is strewn with the wreckage of companies that failed to understand the necessity of culture change.Lean Manufacturing is as much a state of mind as it is a process for excellence in manufacturing Industrial Solutions, Inc
    42. 42. Learn MoreIndustrial Solutions, Inc 918-637-0114