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Lean Leadership: Helping Leaders Understand Their Role In The Improvement Process
This document provides an overview of a webinar on helping leadership understand their role in the Lean improvement process. It discusses how improvement professionals often face frustration from a lack of leadership support, while leaders face frustration not knowing how to best provide assistance. The webinar aims to educate leaders on key Lean concepts and their vital role in enabling improvements. This includes setting an improvement strategy, coaching project teams, authorizing frontline changes, and modeling Lean behaviors. It also addresses managing expectations around the timeline and disruptive nature of transformation, emphasizing the need for long-term commitment.
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Lean Leadership: Helping Leaders Understand Their Role In The Improvement Process
- 1. Lean Leadership: Helping LeadersUnderstand Their Role in the Improvement Process Company LOGO
- 2. Your Instructor ProvidesLean 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 willlearn 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 thiswebinar 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: LeadershipCommitment – 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 (andoften 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 LeadershipCommitment 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 Beginswith Education © 2011 Karen Martin & Associates 8
- 9. Improvement Philosophy A minimumof 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 EffectiveChange 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 Whatis 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 Whatis 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…. Ahighly effective business approach that results in fiscal strength, customer and employee loyalty, and organizational agility. © 2011 Karen Martin & Associates 13
- 14. What Leaders MustUnderstand Lean isn’t merely a process design technique – it’s a business management philosophy. © 2011 Karen Martin & Associates 14
- 15. How is itDifferent? 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. LeanThinking 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 MustUnderstand 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 Whatis 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 © 2011Karen Martin & Associates Delivery 20
- 21. Typical Benefits Realized 0 25 50 75 100 LeadTime Reduction Productivity Increase WIP Reduction Quality Improvement Space Utilization © 2011 Karen Martin & Associates 21
- 22. Mis-Use of Lean UsingLean for headcount reductions is a recipe for failure. © 2011 Karen Martin & Associates 22
- 23. What Lean Isn’t… Leandoesn’t solve all problems. 23
- 24. Transformation Takes Time Leanrequires long-term thinking. The transformation process morphs over time as the organization matures. © 2011 Karen Martin & Associates 24
- 25. How Long Willit 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 MustUnderstand Transforming into a Lean Enterprise is disruptive. © 2011 Karen Martin & Associates 26
- 27. Improvement Pacing Evolution orrevolution? © 2011 Karen Martin & Associates 27
- 28. Critical Question How willwe define success? © 2011 Karen Martin & Associates 28
- 29. Leadership’s Learning Needs Whatis 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 Simulationshelp 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 LeanEnterprise
- 32. Establishing an ImprovementStrategy – The Value Stream Map 32
- 33. Value Stream MappingProcess 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 ValueStream 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 ImplementationPlan 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 LeanEnterprise
- 37. Interim Briefings Who: Improvementteam 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? Astructured 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 EventScope 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 theImprovement 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 Encourageleaders 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 Oneof 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 Factorsfor 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 willlearn 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 LeanEnterprise 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 7770Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Free monthly newsletter: www.ksmartin.com/subscribe Learn / Connect : 49