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The Art and Science Behind a Successful Lean Transformation


Published on

Presented by Sam MacPherson, hosted by Mark Graban & KaiNexus

August 23, 2016

In this webinar, you will learn:

- Science behind why some Lean transformations fail to get off the ground
- The three key elements of successful Lean transformation as a business model
- New discoveries in organizational behavioral science that are essential for leading a lean transformation and culture of excellence
- How to more effectively lead your organizations in this transformation

Published in: Business
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The Art and Science Behind a Successful Lean Transformation

  1. 1. Presenter: Sam MacPherson Lean Leadership Academy @LeanLeaderWay The Art and Science Behind Successful Lean Transformations Host: Mark Graban KaiNexus @MarkGraban
  2. 2. 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.
  3. 3. A Blueprint for Developing Highly Engaged Lean Leaders Sam MacPherson, Co-Founder The Lean Leadership Academy The Art and Science Of Leading a Successful Lean Transformation
  4. 4. 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 Transformation  Q&A
  5. 5. Current State of Lean Results <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. Years 1 3 5 7 9 A B C D 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 E F G * 2014 Shingo Prize Institute proprietary data by Art Smalley
  6. 6. Typical Transformation ApproachLeanTool/ProcessAdherence Actual Results L M H LMH 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
  7. 7. The 800 lbs. Gorilla in the Room Why 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
  8. 8. 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
  9. 9. Overcoming “The Dark Side” Organizational Change Behavior Resulting from Lean Transformation The Four Stages of Building a Lean Culture 1.Disruption 2.Orientation 3.Indoctrination 4.Assimilation
  10. 10. Lean Transformation Pyramid Leader Beliefs, Values, Principles, Thinking Structures, Behaviors, and Keystone Routines Lean Management System and Organizational Structure Brilliant Processes Management Tools And Techniques
  11. 11. Beyond Little’s Law Primarily a Just-in-Time/Lead-time Formula
  12. 12. “Lean Leadership is a discipline. It has its own unique principles, fundamental beliefs and values, thinking structures, expected behaviors and keystone routines.” Sam MacPherson The Lean Leadership Academy The Summit on Lean Leadership Lean Leadership is a Discipline
  13. 13. 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 Cho Meaning: Leader, Head, Chief, Director, Commander
  14. 14. Leaders Must Influence and Shape Shaping Principles 1. Shape the purpose 2. Shape the timeline 3. Shape the structure 4. Shape the thinking patterns 5. Shape the procedures / standards 6. Shape the behaviors 7. Shape the system / tools 8. Shape the environment 9. Shape the results 10. Shape the Culture Inside the team Outside the team The Organization Area of Influence Outside the Organization
  15. 15. President (Senior Leader On Site) Group Leader (Supervisor Level) VP of Operations (Senior Manufacturing And Functional Managers) Production Team (5-6 Team Members) Expandable to 10 Team Members Team Leaders (Hourly) Kaizen Team A voluntary Team assignment Made up of promotable Team leaders and led by a Senior 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
  16. 16. Toyota Leadership 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
  17. 17. Robin Dunbar’s Number and its Criticality to Your Lean Transformation
  18. 18. Robert Metcalfe’s Law of Exponential Network Value
  19. 19. Intel’s Gordon Moore’s Law and Lean Transformation
  20. 20. The Value of Metcalfe and Moore in a Lean Transformation Model
  21. 21. Accelerating Your Transformation through Obeya
  22. 22. Physically Change the Environment Use the Obeya Concept To Accelerate Lean Transformation Use 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.
  23. 23. What is an Obeya?
  24. 24. 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.
  25. 25. Interrupting Patterns at Grand Central Terminal
  26. 26. Daily Asaichi “First” in the Morning Meeting Set Priorities Coordination Daily Asaichi Stand-up Communications Meeting Mfg Ops Mgr Establish Top 5 Priorities Of the Day
  27. 27. Issue Resolution Status End of Day Production Status Check
  28. 28. The Critical Role of the Leader In Creating a Culture of Excellence
  29. 29. The Critical Role of the Leader In Creating a Culture of Excellence
  30. 30. Creating a Culture of Excellence First…Expect Excellence! Create a Common Language Create expected Beliefs, Values and Behaviors Create Keystone Routines Create your Culture’s Artifacts Create Rituals and Celebrations Tell your own “War Story”
  31. 31. Keystone Routines are Key to Your Transformation and Culture
  32. 32. • 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 of Daily 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
  33. 33. The Critical Role of the Leader In Creating a Culture of Excellence
  34. 34. Defeating the 800 Pound Gorilla 6 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 Response 3. Interrupt existing routines with physical changes – such as an Obeya - and keystone routines for new patterns 4. Lead by Example 5. Learn to speak the language of your ERP system; but, don’t go native 6. Provide every possible platform to allow others to participate in problem solving, kaizen, and to build team relations
  35. 35. Recommended Reading
  36. 36. Thank you for allowing me to share my Lean Leader Development Ideas, today. What Questions may I answer for you?
  37. 37. Webinars On Demand
  38. 38. Next Webinars – September Harry Kenworthy Erin Edwards
  39. 39. Q&A • Q&A is available through a podcast – See