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Lean
Management
System
Agile Austin - Agile Leaders SIG
Leland Newsom
October 7, 2016
10/7/2016 1
True North
People
Systems
Standard Work
Visual Controls
Leader
Standard Work
Accountability /
Transparency
Systems
Lean
Ma...
Psychological Safety is #1
10/7/2016 3
VersionOne 10th Annual State of Agile Survey
10/7/2016 4
VersionOne 10th Annual State of Agile Survey continued
10/7/2016 5
SAFe House of Lean
10/7/2016 6
Lean Enterprise Academy – Lean Transformation Model
10/7/2016 7
True North
People
Systems
Standard Work
Visual Controls
Leader
Standard Work
Accountability /
Transparency
Systems
Lean
Ma...
The three leadership elements create a closed-loop system that creates
process focus and extends new habits to build a cul...
Making Lean Management Go
Original image taken from: Creating a Lean Culture, Third Edition by
David Mann
10/7/2016 10
True North
People
Systems
Standard Work
Visual Controls
Leader
Standard Work
Accountability /
Transparency
Systems
Lean
Ma...
Visual Controls – The Transmission
 The primary purpose of visual controls is to focus on the process and the flow
of val...
Tiered Visual Management Systems
 Team – Have the most power to affect component or “project” level metrics
 Manager/Dir...
SDPI - Balanced Metrics
10/7/2016 14
Get the report at:
https://www.rallydev.com/finally-get-real-data-about-benefits-adop...
Control Chart - LeanKit
10/7/2016 15
10/7/2016 16
Visual Controls
10/7/2016 17
True North
People
Systems
Standard Work
Visual Controls
Leader
Standard Work
Accountability /
Transparency
Systems
Lean
Ma...
Leader Standard Work – The Engine
VP Standard
Work
MD/Mgr.
Standard Work
Team Standard
Work
 Purpose: Provides a structur...
Leader Standard Work - Example
10/7/2016 20
True North
People
Systems
Standard Work
Visual Controls
Leader
Standard Work
Accountability /
Transparency
Systems
Lean
Ma...
Accountability/Transparency- The Steering Wheel and Gas
Pedal
 Sets direction and pace.
 Ensures that focus on process l...
Transparency/Accountability Board
10/7/2016 23
Discipline to Sustain
10/7/2016 24
True North
People
Systems
Standard Work
Visual Controls
Leader
Standard Work
Accountability /
Transparency
Systems
Lean
Ma...
True North
 True North defines the strategic objectives of an organization.
− defines the outcomes of the system and wher...
X-Matrix Hoshin Kanri
Strategy
Tactics
Process
Results
10/7/2016 27
X-Matrix Hoshin Kanri cont.
10/7/2016 28
X-Matrix Example
10/7/2016 29
Strategy deployment is a negotiation
process is known as “catchball,”
because the “ball” of strategy is
tossed back and fo...
True North
People
Systems
Standard Work
Visual Controls
Leader
Standard Work
Accountability /
Transparency
Systems
Lean
Ma...
People Systems
10/7/2016 32
Management by
Objective
Management by Objectives Strategy Deployment
Top Down (unidirectional) Built both top down and bot...
Facts about Appraisals
10/7/2016 34
Capability Matrix
10/7/2016 35
True North
People
Systems
Standard Work
Visual Controls
Leader
Standard Work
Accountability /
Transparency
Systems
Lean
Ma...
Standard Work
 Standard work answers the who, what, where, when, why, and how.
− Who operates this process?
− What are th...
Standard Work
Provides structure and routine to build the capabilities of the
organization that sustain and extend improve...
Standard Work Example
10/7/2016 39
PDCA Loop
True North
People
Systems
Standard Work
Leader Std.
Work
Visual
Controls
Accountability
Systems
10/7/2016 40
10/7/2016 41
Learn More
10/7/2016 42
https://blog.kainexus.com/
http://leankit.com/blog
https://www.lean.org/
http://www.leanuk.org/
ht...
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Lean Management System

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Most lean-agile transformations are missing a critical ingredient to sustain their improvements: a Lean Management System. A Lean Management System is an approach to running an organization that can not only sustain the improvements from their lean transformation but continuously improve as well.

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Lean Management System

  1. 1. Lean Management System Agile Austin - Agile Leaders SIG Leland Newsom October 7, 2016 10/7/2016 1
  2. 2. True North People Systems Standard Work Visual Controls Leader Standard Work Accountability / Transparency Systems Lean Management System 10/7/2016 2
  3. 3. Psychological Safety is #1 10/7/2016 3
  4. 4. VersionOne 10th Annual State of Agile Survey 10/7/2016 4
  5. 5. VersionOne 10th Annual State of Agile Survey continued 10/7/2016 5
  6. 6. SAFe House of Lean 10/7/2016 6
  7. 7. Lean Enterprise Academy – Lean Transformation Model 10/7/2016 7
  8. 8. True North People Systems Standard Work Visual Controls Leader Standard Work Accountability / Transparency Systems Lean Management System 10/7/2016 8
  9. 9. The three leadership elements create a closed-loop system that creates process focus and extends new habits to build a culture of continuous improvement. • Focus of leadership shifts from delivery only to delivery + growing the capabilities of the organization. DELIGHTED CUSTOMERS Process / Value Flow Visual Controls Transparency/ Accountability Leader Standard Work Changing Culture with Lean Leadership 10/7/2016 9
  10. 10. Making Lean Management Go Original image taken from: Creating a Lean Culture, Third Edition by David Mann 10/7/2016 10
  11. 11. True North People Systems Standard Work Visual Controls Leader Standard Work Accountability / Transparency Systems Lean Management System 10/7/2016 11
  12. 12. Visual Controls – The Transmission  The primary purpose of visual controls is to focus on the process and the flow of value to the client. − show process abnormalities and opportunities so the teams can take appropriate action. − Should provide error proofing. − Measure and show progress of how valuable software flows through the process. 10/7/2016 12
  13. 13. Tiered Visual Management Systems  Team – Have the most power to affect component or “project” level metrics  Manager/Director – Have the most power to affect tactical execution and influence LOB product direction  Executives – Have the power to affect organizational issues, budgets, and strategy 10/7/2016 13 Agile Metrics in Action Christoher W. H. Davis 2015
  14. 14. SDPI - Balanced Metrics 10/7/2016 14 Get the report at: https://www.rallydev.com/finally-get-real-data-about-benefits-adopting-agile?nid=6201
  15. 15. Control Chart - LeanKit 10/7/2016 15
  16. 16. 10/7/2016 16
  17. 17. Visual Controls 10/7/2016 17
  18. 18. True North People Systems Standard Work Visual Controls Leader Standard Work Accountability / Transparency Systems Lean Management System 10/7/2016 18
  19. 19. Leader Standard Work – The Engine VP Standard Work MD/Mgr. Standard Work Team Standard Work  Purpose: Provides a structure and routine that helps shift from a sole focus on value delivery to a dual focus on value delivery and building the capabilities of the organization. − Allows leaders to get the routine tasks taken care of with less mental energy, leaving them free to focus on improvements and building the capabilities of the organization. − Provides a way to sustain and extend improvements by updating the standard work as kaizen events occur. − Overlapping elements in leader standard work across levels supports the integrity of the process.  Guidelines 1. Focus on activities and behaviors that demonstrate leading with respect. 2. Make development and coaching a central theme. 3. The higher the level of the manager, the more strategic the focus will be. Strategic Focus Tactical Focus 10/7/2016 19
  20. 20. Leader Standard Work - Example 10/7/2016 20
  21. 21. True North People Systems Standard Work Visual Controls Leader Standard Work Accountability / Transparency Systems Lean Management System 10/7/2016 21
  22. 22. Accountability/Transparency- The Steering Wheel and Gas Pedal  Sets direction and pace.  Ensures that focus on process leads to action to improve it.  Daily Standup  Kanban Board  Gemba walk – Go see, ask why, show respect − Have a purpose for the walk − Focus on flow and value delivery − Look for wastes (Defects, Over Production, Waiting, Non-utilized talent/resources, Transportation, Inventory, Motion and Excess Processing)  Observations from the visual controls and Gemba walks are converted to assignments for action − Follow up occurs regularly (daily standup) to track progress 10/7/2016 22
  23. 23. Transparency/Accountability Board 10/7/2016 23
  24. 24. Discipline to Sustain 10/7/2016 24
  25. 25. True North People Systems Standard Work Visual Controls Leader Standard Work Accountability / Transparency Systems Lean Management System 10/7/2016 25
  26. 26. True North  True North defines the strategic objectives of an organization. − defines the outcomes of the system and where we want the system to take us in the future − define direction, purpose and values  Hoshin Kanri and “catch ball” − Hoshin Kanri is a strategic planning process.  "Hoshin" meaning shining needle or compass.  Kanri means management or control − Is a process for embedding strategy and aligning an organization toward common goals. − “Catch ball” is a negotiation process where goals, strategies, action items, and measures are tossed back and forth between management and employees to gain consensus and focus. 10/7/2016 26
  27. 27. X-Matrix Hoshin Kanri Strategy Tactics Process Results 10/7/2016 27
  28. 28. X-Matrix Hoshin Kanri cont. 10/7/2016 28
  29. 29. X-Matrix Example 10/7/2016 29
  30. 30. Strategy deployment is a negotiation process is known as “catchball,” because the “ball” of strategy is tossed back and forth from team to team until a final consensus is reached about what needs to be done and how to do it. 10/7/2016 30
  31. 31. True North People Systems Standard Work Visual Controls Leader Standard Work Accountability / Transparency Systems Lean Management System 10/7/2016 31
  32. 32. People Systems 10/7/2016 32
  33. 33. Management by Objective Management by Objectives Strategy Deployment Top Down (unidirectional) Built both top down and bottom up (catchball) Focuses on rear-view mirror results Concentrates resources on key priorities Little effort to understand or improve the system or process Controls means and methods, not just results Usually based on calendar for performance review cycles (annual, bi- annual, quarterly reviews) Continuous/Frequent reviews up & down the org chart. Not based on the calendar Often unlinked (individual goals not tied to strategic objectives) Linked to the strategic objectives Tied to performance appraisals (carrot or whip) Not tied to performance appraisals Focus on profits/delivery. Adding value to shareholders. Voice of the Customer (VOC), not just profit/delivery goals 10/7/2016 33 Strategy Deployment
  34. 34. Facts about Appraisals 10/7/2016 34
  35. 35. Capability Matrix 10/7/2016 35
  36. 36. True North People Systems Standard Work Visual Controls Leader Standard Work Accountability / Transparency Systems Lean Management System 10/7/2016 36
  37. 37. Standard Work  Standard work answers the who, what, where, when, why, and how. − Who operates this process? − What are the quality check points? What does the final product look like? − Where is this process completed? − When will it be done? − Why is this step necessary? Why is this a quality check point? Why is this a value- adding? − How is the process followed? How do I know the process is followed? How do we measure success?  Standard work is a collection and implementation of best practices known at that point. − Update Standard work as improvements are made.  Update work instruction documents, training, onboarding, and practice.  Standard work incorporates what is needed to start the process and the finished state of the process.  Standard work should always be questioned and improvements sought.  5S – Sort, Set in Order, Shine, Standardize, Sustain 10/7/2016 37
  38. 38. Standard Work Provides structure and routine to build the capabilities of the organization that sustain and extend improvements. Without standardization, incremental improvements may be lost with time. 10/7/2016 38
  39. 39. Standard Work Example 10/7/2016 39
  40. 40. PDCA Loop True North People Systems Standard Work Leader Std. Work Visual Controls Accountability Systems 10/7/2016 40
  41. 41. 10/7/2016 41
  42. 42. Learn More 10/7/2016 42 https://blog.kainexus.com/ http://leankit.com/blog https://www.lean.org/ http://www.leanuk.org/ http://www.scaledagileframework.com/lean-agile-mindset/

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