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Lean Leadership: Part 1 of 3

TKMG, Inc.
TKMG, Inc.
TKMG, Inc.President, The Karen Martin Group, Inc. at TKMG, Inc.

These are the slides for the webinar delivered on 8-9-2016. The recording is available at http://www.slideshare.net/KarenMartinGroup/lean-leadership-part-1-of-3-webinars Over the 16 years that we've been providing support to organizations at nearly every stage of the Lean journey, leadership has consistently emerged as the single most important determinant of success. Those organizations with deep leadership engagement soar, while those who don't fail to experience significant transformation. In this first of three webinars, Karen shares the perspective and content that she and her team use when working with executives and senior leadership teams within the firm's clients. She review the system of Lean principles, management practices, and tools, and then focuses on 6 of the topics leaders most commonly misunderstand or are unaware of: 1. Three of the core values that underlie Lean management 2. Key performance indicators 3. Visual management 4. Work standardization 5. Go and see (Gemba) management 6. The one environmental "don't" that destroys all Lean effort Not a subscriber? To receive automatic notification of future webinars, gain access to our library of free assessments and templates, and receive our occasional newsletter with improvement tips: http://www.ksmartin.com/subscribe.

Lean Leadership: Part 1 of 3

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Lean Leadership: Part 1 of 3
Today’s Agenda
© 2016 The Karen Martin Group, Inc. 2
• Components of Lean management
• Foundational core values, mindsets &
practices leaders need to adopt to support
the Lean journey
• What you can do (or help your leader do)
to adopt Lean leadership mindsets and
practices
Specific Topics Leaders Commonly
Misunderstand or Are Unaware of
1. Three of the core values that underlie Lean management
2. Key performance indicators
3. Visual management
4. Work standardization
5. Go and see (Gemba) leadership
6. The environmental "don't" that destroys Lean efforts
© 2016 The Karen Martin Group, Inc. 3
Everything rises and falls on
leadership. — John C. Maxwell
Effective
Leadership:
Nature or
Nurture?
© 2016 The Karen Martin Group, Inc. 5
Continuous learning,
challenging one’s mindsets,
experimentation & practice
The Lean Management Journey to Excellence
© 2016 The Karen Martin Group, Inc. 6
Lean
Thinkers
Lean
Management
Practices
Lean
Leadership
Lean
Processes

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Lean Leadership: Part 1 of 3

  • 2. Today’s Agenda © 2016 The Karen Martin Group, Inc. 2 • Components of Lean management • Foundational core values, mindsets & practices leaders need to adopt to support the Lean journey • What you can do (or help your leader do) to adopt Lean leadership mindsets and practices
  • 3. Specific Topics Leaders Commonly Misunderstand or Are Unaware of 1. Three of the core values that underlie Lean management 2. Key performance indicators 3. Visual management 4. Work standardization 5. Go and see (Gemba) leadership 6. The environmental "don't" that destroys Lean efforts © 2016 The Karen Martin Group, Inc. 3
  • 4. Everything rises and falls on leadership. — John C. Maxwell
  • 5. Effective Leadership: Nature or Nurture? © 2016 The Karen Martin Group, Inc. 5 Continuous learning, challenging one’s mindsets, experimentation & practice
  • 6. The Lean Management Journey to Excellence © 2016 The Karen Martin Group, Inc. 6 Lean Thinkers Lean Management Practices Lean Leadership Lean Processes
  • 7. © 2016 The Karen Martin Group, Inc. 7 Lean Management
  • 8. Lean Management Components Core Values / Principles / Philosophy • Analytical tools • Value stream analysis & mapping • Metrics-based process mapping • Root cause analysis: Five Why’s, Fishbone, Pareto, Problem tree, FMEA • Waste Countermeasures • Standard work • Quality at the Source / Error proofing • 5S / Visuals • Pull systems: One-piece flow, FIFO lanes, Kanban • Cells / co-location • Level loading • Work balancing • Batch size reduction • Setup & changeover reduction • Work segmentation • Autonomation • Cross-training / multi-functional workers • Strategy deployment (hoshin planning) • Value stream management • Key performance indicators (three levels, including customer & operational metrics) • Disciplined process management via clear owners & KPIs • Daily kaizen • PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups • Go & see (gemba) management • Humble inquiry • Continuously seeking voice of the customer • Purposeful meetings & reporting • Lean accounting • Consensus management • Humility • Respect • Curiosity • Transparency • Relentless pursuit for perfection • Customer value • Flow / waste elimination • Just in time • Visual management • Work standardization Lean Management © 2016 The Karen Martin Group, Inc. 8
  • 9. Lean Transformation: People Development Needs • Lean mindsets (humility, respect, curiosity, etc) • Gemba-based leadership • PDSA problem solving • Strategy deployment • Key performance indicators (including customer & operational) Executives • Lean mindsets (humility, respect, curiosity, etc) • Gemba-based leadership • PDSA problem solving • Strategy deployment & basic Lean tools • Process management & KPIs Middle Managers • PDSA problem solving • Waste identification • Daily kaizen Front Lines • All of the above • Advanced Lean analysis tools & countermeasures • All else (disposition, business acumen, psychology, etc.) Internal Lean Team © 2016 The Karen Martin Group, Inc. 9
  • 10. Lean Management Components Core Values / Principles / Philosophy • Analytical tools • Value stream mapping • Metrics-based process mapping • Root cause analysis: Five Why’s, Fishbone, Pareto, Problem tree, FMEA • Waste Countermeasures • Standard work • Quality at the Source / Error proofing • 5S / Visuals • Pull systems: One-piece flow, FIFO lanes, Kanban • Cells / co-location • Level loading • Work balancing • Batch size reduction • Setup & changeover reduction • Work segmentation • Autonomation • Cross-training / multi-functional workers • Strategy deployment (hoshin planning) • Value stream management • Key performance indicators (three levels, including customer & operational metrics) • Disciplined process management via clear owners & KPIs • Daily kaizen • PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups • Go & see (gemba) management • Humble inquiry • Continuously seeking voice of the customer • Purposeful meetings & reporting • Lean accounting • Consensus management • Humility • Respect • Curiosity • Transparency • Relentless pursuit for perfection • Customer value • Flow / waste elimination • Just in time • Visual management • Work standardization Lean Management © 2016 The Karen Martin Group, Inc. 10
  • 11. © 2016 The Karen Martin Group, Inc. 11
  • 12. © 2016 The Karen Martin Group, Inc. 12
  • 13. 13
  • 14. The #1 Foundational “Must”: NO FEAR © 2016 The Karen Martin Group, Inc. 14 #8 of Deming’s 14 points in Out of the Crisis
  • 15. “People aren’t your problem. Your problem is that your work systems and processes don’t allow people to shine.” © 2016 The Karen Martin Group, Inc. 15
  • 17. Lean Management Components Core Values / Principles / Philosophy • Analytical tools • Value stream mapping • Metrics-based process mapping • Root cause analysis: Five Why’s, Fishbone, Pareto, Problem tree, FMEA • Waste Countermeasures • Standard work • Quality at the Source / Error proofing • 5S / Visuals • Pull systems: One-piece flow, FIFO lanes, Kanban • Cells / co-location • Level loading • Work balancing • Batch size reduction • Setup & changeover reduction • Work segmentation • Autonomation • Cross-training / multi-functional workers • Strategy deployment (hoshin planning) • Value stream management • Key performance indicators (three levels, including customer & operational metrics) • Disciplined process management via clear owners & KPIs • Daily kaizen • PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups • Go & see (gemba) management • Humble inquiry • Continuously seeking voice of the customer • Purposeful meetings & reporting • Lean accounting • Consensus management • Humility • Respect • Curiosity • Transparency • Relentless pursuit for perfection • Customer value • Flow / waste elimination • Just in time • Visual management • Work standardization Lean Management © 2016 The Karen Martin Group, Inc. 17
  • 18. Purpose of Visual Management © 2016 The Karen Martin Group, Inc. 18 1. Communicate work steps: who, what, when, where & how 2. Communicate status 3. Communicate performance 4. Communicate abnormalities; make problems visible
  • 19. In a Lean organization… 19 …there’s no guessing about performance…visual management reigns supreme
  • 20. Most businesses don’t know the true score. 20
  • 21. © 2016 The Karen Martin Group, Inc. 21 Key Performance Indicators (KPIs): Three Levels KeyPerformanceIndicators Corporate Value Stream Function / Dept How are we doing?
  • 22. Key Performance Indicators (KPIs): Corporate Level 22
  • 23. © 2016 The Karen Martin Group, Inc. 23 Key Performance Indicators: Value Stream Level
  • 24. Key Performance Indicators: Value Stream Level 24
  • 25. 25
  • 26. In a Lean organization… 26 …there’s no guessing about abnormalities
  • 27. © 2016 The Karen Martin Group, Inc. 27
  • 28. In a Lean organization… 28 …there’s no guessing about who, what, where, when, what, how
  • 29. 29
  • 30. 30
  • 31. Lean Management Components Core Values / Principles / Philosophy • Analytical tools • Value stream mapping • Metrics-based process mapping • Root cause analysis: Five Why’s, Fishbone, Pareto, Problem tree, FMEA • Waste Countermeasures • Standard work • Quality at the Source / Error proofing • 5S / Visuals • Pull systems: One-piece flow, FIFO lanes, Kanban • Cells / co-location • Level loading • Work balancing • Batch size reduction • Setup & changeover reduction • Work segmentation • Autonomation • Cross-training / multi-functional workers • Strategy deployment (hoshin planning) • Value stream management • Key performance indicators (three levels, including customer & operational metrics) • Disciplined process management via clear owners & KPIs • Daily kaizen • PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups • Go & see (gemba) management • Humble inquiry • Continuously seeking voice of the customer • Purposeful meetings & reporting • Lean accounting • Consensus management • Humility • Respect • Curiosity • Transparency • Relentless pursuit for perfection • Customer value • Flow / waste elimination • Just in time • Visual management • Work standardization Lean Management © 2016 The Karen Martin Group, Inc. 31
  • 32. In a Lean organization… © 2016 The Karen Martin Group, Inc. 32 …all work is standardized
  • 33. Standard Work MUST Be Documented © 2016 The Karen Martin Group, Inc. 33 • Process steps + job aids • Highly visual step-by-step how to’s • Process maps • Check lists • Cheat sheets / memory joggers • Decision trees (If this, then that…) • Flow charts • All applicable work standards are included in standard work
  • 34. © 2016 The Karen Martin Group, Inc. 34
  • 35. Lean Management Components Core Values / Principles / Philosophy • Analytical tools • Value stream mapping • Metrics-based process mapping • Root cause analysis: Five Why’s, Fishbone, Pareto, Problem tree, FMEA • Waste Countermeasures • Standard work • Quality at the Source / Error proofing • 5S / Visuals • Pull systems: One-piece flow, FIFO lanes, Kanban • Cells / co-location • Level loading • Work balancing • Batch size reduction • Setup & changeover reduction • Work segmentation • Autonomation • Cross-training / multi-functional workers • Strategy deployment (hoshin planning) • Value stream management • Key performance indicators (three levels, including customer & operational metrics) • Disciplined process management via clear owners & KPIs • Daily kaizen • PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups • Go & see (gemba) management • Humble inquiry • Continuously seeking voice of the customer • Purposeful meetings & reporting • Lean accounting • Consensus management • Humility • Respect • Curiosity • Transparency • Relentless pursuit for perfection • Customer value • Flow / waste elimination • Just in time • Visual management • Work standardization Lean Management © 2016 The Karen Martin Group, Inc. 35
  • 37. 37 3 Types of Gemba Walks • Daily management (KPI-based Leader Standard Work) • Regular cadence • 3 levels: supervisor, manager, senior leader • Coaching & problem solving take place “off line” • Coaching for specific problem solving • As needed • Reactive • Understand reality • Understand the whole • Keep “in the know” • Identify improvement priorities • Being visible • Proactive
  • 38. Leader Standard Work (LSW): KPI Board Reviews © 2015 The Karen Martin Group, Inc. 38 Supervisors & Team Leads Middle Managers Senior Leaders Purpose Share previous day’s results and review that day’s plan Monitor results; confirm that support functions are meeting commitments to address issues surfaced by frontline staff Monitor results; obtain real-time, objective information (vs. perception); learn about issues & trends (better decision making); provide visibility to frontlines; drive toward rapid problem resolution; identify coaching needs Frequency When Where Length Daily Beginning of each day or shift Each work area or dept KPI board 10 minutes Weekly Regular cadence; consistent day/time Each work area or dept KPI board 3-5 minutes per board Monthly Regular cadence; consistent day/time Visit each division 10 minutes per board Who attends Supervisor or Team Lead and frontline staff (max 20 people) Managers for cross-functional areas 6-8 people All senior leaders, including C-level Agenda • Yesterday’s performance • Today’s plan (any constraints?) • Issues or trends to be aware of • Yesterday’s performance • Status on requests for support • Additional support needed • Performance compared with targets • Quick resolution of problems? • Concerning trends? New developments? Post Meeting Escalate issues as needed Talk with staff about what surfaced; assure commitments are kept Adjust business plan? Provide coaching? Consider org needs for transformation
  • 39. © 2016 The Karen Martin Group, Inc. 39
  • 40. Leader Standard Work: Gemba Walks © 2016 The Karen Martin Group, Inc. 40
  • 41. Additional Gemba Walks: Purpose 41 • Understand current reality • Understand what the team is focused on (what their priorities are) • Learn about obstacles to staff success • Surface and correct misunderstandings • Discover the need for additional improvement • Communicate and reinforce organizational vision, goals & priorities • Assure alignment of department goals and improvement activities
  • 42. Your Action Plan © 2016 The Karen Martin Group, Inc. 42 1. Help your teams develop 2-5 KPIs and create dashboards that show their real-time score. 2. Remove fear from the equation. Problem are gaps. Be matter-of-fact and non-emotional. 3. Institute regular Gemba walks in every area you oversee. Discuss KPIs, improvement activities, and corrective action (e.g., who, what, by when, who else is involved, etc.) 4. Have your teams create written standard work and job aids for all key processes.
  • 43. © 2016 The Karen Martin Group, Inc. 43 To Learn More… Reading • The Toyota Way to Lean Leadership (Liker & Convis) • The Simple Leader (Meyer) • The Lean CEO (Stoller) • Out of the Crisis (Deming) • The Effective Executive (Drucker) • The Outstanding Organization (Martin) Conferences • Association for Manufacturing Excellence • Lean Enterprise Institute • Shingo Institute Tours – especially outside your industry Practice, practice, and more practice!
  • 44. Lean Leadership Webinar 2 of 3: Thursday, September 22 – 11:00 am PDT Register Now: www.ksmartin.com/webinars Core Values / Principles / Philosophy • Analytical tools • Value stream mapping • Metrics-based process mapping • Root cause analysis: Five Why’s, Fishbone, Pareto, Problem tree, FMEA • Waste Countermeasures • Standard work • Quality at the Source / Error proofing • 5S / Visuals • Pull systems: One-piece flow, FIFO lanes, Kanban • Cells / co-location • Level loading • Work balancing • Batch size reduction • Setup & changeover reduction • Work segmentation • Autonomation • Cross-training / multi-functional workers • Strategy deployment (hoshin planning) • Value stream management • Key performance indicators (three levels, including customer & operational metrics) • Disciplined process management via clear owners & KPIs • Daily kaizen • PDSA Problem Solving (& A3 management) • Performance dialogues / huddles / standups • Go & see (gemba) management • Humble inquiry • Continuously seeking voice of the customer • Purposeful meetings & reporting • Lean accounting • Consensus management • Humility • Respect • Curiosity • Transparency • Relentless pursuit for perfection • Customer value • Flow / waste elimination • Just in time • Visual management • Work standardization Lean Management © 2016 The Karen Martin Group, Inc. 44
  • 46. Your Questions 1. What can lower level leaders within the organization do to help drive the senior staff to take a more proactive approach to lean leadership? 2. How do you recommend navigating leadership changes/turnover (e.g., current leader support Lean, but is leaving soon; next leader may not want to embrace an initiative seen as tied to the last administration)? © 2015 Jacob Stoller 46