The document focuses on lean psychology, emphasizing how understanding human behavior can enhance the improvement process in businesses. Participants are taught strategies to meet psychological needs, reduce resistance to change, and leverage human nature for optimal performance. The content includes insights on addressing employee concerns, fostering a motivated workforce, and the importance of effective communication and collaboration in driving change.

1. Lean Psychology:
Leveraging Human Nature to Achievee e ag g u a atu e to c e e
Optimal Improvement
Company
LOGO

2. Learning Objectives
Participants will learn:
 How psychology affects the entire improvement
process, from strategy to execution.
 What you can do to ensure both short- and long-
term success.
H t t th b i d l h How to meet the basic needs people have
through the improvement process.
Specific tactics that leverage human nature to Specific tactics that leverage human nature to
achieve optimal business performance.
© 2011 Karen Martin & Associates 2

3. Your Instructor
 Early career as a scientist; migrated to
quality & operations design in the mid 80’squality & operations design in the mid-80 s.
 Launched Karen Martin & Associates in
1993.
 Introduced to Lean in 2000.
 Specialize in applying Lean in non-
f i imanufacturing environments.
 Co-author of The Kaizen Event Planner;
co-developer of Metrics-Based Processco developer of Metrics Based Process
Mapping: An Excel-Based Solution.
 Instructor in University of California, San
Karen Martin
Principal, Karen
Martin & Associates
© 2011 Karen Martin & Associates
Diego’s Lean Enterprise program.
3

4. Why Lean Psychology?
Long term interest in human behavior.
Avid practitioner of hansei (reflection) –
began to notice trends and patterns.
Success in changing my own paradigms
and approach.pp
Growing concern that Lean isn’t being
properly appliedproperly applied.
© 2011 Karen Martin & Associates

5. The Win-Win
A well-executed improvement approach not
only serves the customer and generates
significant return for the organization, it also
meets the psychological needs of
individuals, creating a highly motivated
workforce.
© 2011 Karen Martin & Associates 5

6. Two Pillars of The Toyota Way
Respect for
H it
Elimination of waste
th h tiHumanity through continuous
improvement
Plan
DoAct
Check
© 2011 Karen Martin & Associates
Sakichi Toyoda (1867-1930)

7. The Change Agent’s Many
“Non-Technical” Hats
© 2011 Karen Martin & Associates 7

8. The Change Agent’s Most Important Hat:
Psychologist
Psychologist
Ab h M lAbraham Maslow
What motivates people?
What do they fear?
© 2011 Karen Martin & Associates

9. Maslow’s Hierarchy of Needs

10. Typical Work Needs
 To belong
 To be needed
 To understand
 To see progress
 To learn
 To create
 To be adequately
compensated To create
 To contribute
 T b h d
co pe sated
 To work in a pleasant
environment To be heard
 To be recognized
environment
 To be safe
Ph i ll
 To be competent
 Physically
 Emotionally (treated well)
10
To Succeed

11. When needs aren’t met…
Apathy
Turnover / absenteeism
Obstacle creation (overt and/or covert)Obstacle creation (overt and/or covert)
Lawsuits
S b tSabotage
© 2011 Karen Martin & Associates 11

12. Components for Effective Change
EffectiveEffective
ChangeChange
VisionVision SkillsSkills IncentivesIncentives ResourcesResources Action PlanAction Plan
ConfusionConfusionSkillsSkills IncentivesIncentives ResourcesResources Action PlanAction Plan
AnxietyAnxiety
GradualGradual
VisionVision IncentivesIncentives ResourcesResources Action PlanAction Plan
GradualGradual
ChangeChange
FrustrationFrustration
VisionVision SkillsSkills ResourcesResources Action PlanAction Plan
VisionVision SkillsSkills IncentivesIncentives Action PlanAction Plan FrustrationFrustration
False StartsFalse StartsVisionVision SkillsSkills IncentivesIncentives ResourcesResources
s os o SkillsSkills IncentivesIncentives ct o act o a
© 2003, Enterprise Mgmt Ltd.

13. Resistance toResistance to
Changeg
© 2011 Karen Martin & Associates

14. Why people resist change
Poor understanding
Cynicism & skepticism (low trust / faith)
Low involvement
Change fatigue
Lack of consensusLack of consensus
Fear
© 2011 Karen Martin & Associates 14

15. Reducing Resistance – Improve
Understanding
Clear strategy – established by leadership
 Hoshin kanri
 Value stream maps
Customer Demand:
15patients perDay
(Takt Time1920seconds)
8 hours per day
Referring
Physician
% C&A = 65 %
Hospital
Schedule
Appointment
Cycle Time = 11 mins.
Lead Time = 12 mins.
% C&A = 98 %
6
Pre-register
Patient
Cycle Time = 30 mins.
Lead Time = 990 mins.
% C&A = 100 %
5 Lead Time = 12 mins.Lead Time = 990 mins.Lead Time = 24 days
1
23
4
CT=Cycle Time
LT=Lead Time
%C&A=% Complete & Accurate
E Pay Excel ADSSymposium Internet
Waiting Room
Management
System
Fax Order
Solutions
PACSMeditech Auto Fax 50%
Us Mail 25%
MD Mailbox 25%
Rework Loop
via Fax 25% of
the time
Check-in
Patient
(Admitting)
Cycle Time = 2 mins.
% C&A = 90 %
5
Send
Reports
(Imaging)
Cycle Time = 3 mins.
% C&A = 90 %
6
5 mins.
0.0833 hrs.
2 mins.
0.0833 hrs.
1 mins.
0.75 hrs.
10 mins.
0.5 hrs.
15 mins.
0.0833 hrs.
3 mins.
4.13 hrs.
15 mins.
6.08 hrs.
5 mins.
16 hrs.
1 mins.
1.83 hrs.
1 mins.
2 hrs.
3 mins.
LT = 32.5 hrs.
CT = 56 mins.
CT/LT Ratio = 2.87%
Prep
Patient
(Tech)
Cycle Time = 10 mins.
% C&A = 100 %
2
Check-in
Patient
(Imaging)
Cycle Time = 1 mins.
% C&A = 98 %
3
Complete
Exam
(Tech)
Cycle Time = 15 mins.
% C&A = 90 %
2
Transmit
Images
(Tech)
Cycle Time = 3 mins.
% C&A = 100 %
2
Read/Dictate
Exam
(Radiologist)
Cycle Time = 15 mins.
% C&A = 95 %
2
Transcribe
Report
(MDI)
Cycle Time = 5 mins.
% C&A = 75 %
6
Review
Draft/Sign
(Radiologist)
Cycle Time = 1 mins.
% C&A = 95 %
2
Print
Reports
(Imaging)
Cycle Time = 1 mins.
% C&A = 99 %
2
30 mins. 5 mins. 248 mins. 365 mins. 960 mins. 110 mins. 120 mins.45 mins.5 mins.5 6 7 8 9 10 11 12 13 14
Rolled First Pass
i ld 29%
© 2011 Karen Martin & Associates 15
yield = 29%

16. Reducing Resistance – Improve
Understanding
Clear communication
 Why is improvement needed?
 Establish a sense of urgency
 Data sells!
 What’s our strategy?
 What do you expect from us?
 How will you support us?
You may need to coach your leadership team.
© 2011 Karen Martin & Associates 16

17. Pick your Crisis
Shrinking margins Regulatory pressure /
li iCustomer dissatisfaction
Shrinking market share
compliance issues
Rising litigation
Rising costs
Rising competition
Social, economic,
environmental, or
political pressures
Desire to absorb growth
without adding typical
political pressures
Downward
performance trendscommensurate staffing
Impending acquisition
performance trends
(in speed and/or
quality)
© 2011 Karen Martin & Associates
Staff burnout
q y)

18. Reducing Resistance – Why is
Improvement Needed?
Data sells!Data sells!
© 2011 Karen Martin & Associates 18

19. V l St M i Ch t
Reducing Resistance – Improve Understanding
Clearly Communicate via Charters
Value Stream Mapping Charter
Event Scope Leadership / Coordination Schedule
Value Stream Recruiting, Hiring, & Onboarding Process Executive Sponsor Sherrye Hutcherson Event Date(s)Oct 27, 28 & 29, 2009
Specific ConditionsExternal hires
Value Stream
Champion
N/A
Start/End
Times
Oct 27, 28 8:00 am - 4:30 pm
Oct 29 7:30 am - 2:00 pm
Customer Demand 100 per year
Facilitator Karen Martin Location9 West SeminarFacilitator Karen Martin Location9 West Seminar
Trigger Vacancy
First Step Hiring manager completes VPA
Team Lead N/A
Meals
Provided?
Lunch, morning & afternoon
snacksLast Step Employee completes NEI
Boundaries &
Limitations
N/A
Coordinator Andrew Peacock
Interim
Briefing(s)
Oct 27 & 28 3:30-4:30 pm
Oct 29 1-2 pm
Improvement
Timeframe
Future state will be fully implemented by 2/15/2009
Briefing
Attendees
Tim Burke, Sherrye H and other
Division ManagersTimeframe AttendeesDivision Managers
Event Drivers Mapping Team
1 Cumbersome process as perceived by the customer. Function Name Contact Information
2 Need to free capacity and operate more effectively. 1Staffing Paula Pittman
3 2FCS HR Patty Yager
4 3Talent Management Tad Leeper
5 4HRIS Chris Ritz
Measureable Objectives 5HR Compliance Carl Olsen
1 Reduce LT from req to offer acceptance from 45-55 days to 30 days. 6Comp & Benefits Nyla Cork
2 7Recruiting Sheila Love
3 8Diversity / Affirmative Action Joyce Cooper
4 9Hiring Manager, Call Ctr Deb Emerson
5 10Hiring Manager, Production Ops
Planned Deliverables On-Call Support
1 Current State VSM Function Name Contact Information
2 Future State VSM 1IT Gary Van Osdel
3 Implementation Plan 2Fort Calhoun - Security Herb Childs
4 3
5 4
Potential Obstacles Approvals
1 Executive Sponsor Value Stream Champion Facilitator
2
3 Signature: Signature: Signature:
4 Date: Date: Date: 19

20. Reducing Resistance – Improve
Understanding
Waste is at the root of most workplace frustration
d i t l d i t d t t l fli tand interpersonal and interdepartmental conflict.
Use this reality to sell the need for improvement.
“Think about the last time you left work feeling
© 2011 Karen Martin & Associates
y g
frustrated? What was the real reason?”
20

21. Psychology 101
People resist change unless you address
“WIIFM.”
If change isn’t viewed as a personal
improvement for the worker it’s unlikely to
© 2011 Karen Martin & Associates
be embraced and sustained.
21

22. Reducing Resistance – Improve
Understanding
The entire workforce must eventually be exposed to
L i i l d t l d d t d h thiLean principles and tools, and understand why this
approach is different.
M d iMy advice:
 Provide as much upfront training and exposure as
possiblepossible.
 Include a simulation – let them experience a
transformation.
 Provide leadership overviews that include discussions
about their roles and responsibilities, and key success
factors Help them gain alignment
© 2011 Karen Martin & Associates
factors. Help them gain alignment.
22

23. “Going to the gemba” heightens
awareness and creates understandingg

24. Why people resist change
Poor understanding
Cynicism & skepticism (low trust / faith)
Low involvement
Change fatigue
Lack of consensusLack of consensus
Fear
© 2011 Karen Martin & Associates 24

25. Cynicism & Skepticism Goes with
the Terroritory
“How many improvement approaches
have been attempted here over the past
10-20 years?”
“Is the work environment fundamentally
more pleasant than it was 10-20 yearsp y
ago?”
 Lower stress
 More teamwork and comraderie
 Greater fulfillment
© 2011 Karen Martin & Associates
 Greater fulfillment
25

26. Tactics for Dealing with Cynicism
& Skepticism
Don’t expect people to check it at the door.
Draw it out – invite them to admit it.
Ask them to “get in the car one more time and
come along for a ride.”
Acknowledge that the “proof’s in the pudding.”
Make sure all changes are improvements and
not merely changes.
f ’ ’ If it doesn’t improve the worker’s ability to be
successful, it’s merely change.
© 2011 Karen Martin & Associates 26

27. Why people resist change
Poor understanding
Cynicism & skepticism (low trust / faith)
Low involvement
Change fatigue
Lack of consensusLack of consensus
Fear
© 2011 Karen Martin & Associates 27

28. Reducing Resistance – Invite / Require
Involvement from All Stakeholders
The workers know best!
All i t t b hi hl f ti lAll improvement must be highly cross-functional.
Cross-functional problem-solving builds a sense of
b l i id th t it t b tibelonging, provides the opportunity to be creative,
and generates a feeling of accomplishment.
© 2011 Karen Martin & Associates 28

29. Maslow’s Hierarchy of Needs
Aided by cross-functional
improvement activities

30. Improvement Roles
Who? Accountability ToolWho? Accountability Tool
Senior What has to Value Stream
rategic
Leadership happen Mapping
Middle
Management
Str
Frontline
Workers
How it will
happen
Just-do-its
Kaizen Events
P j t
Management
actical
Projects
Ta
© 2011 Karen Martin & Associates

31. Improvement Roles and
Responsibilities
Leadership – set strategy (what needs to
happen)
Frontline workers – determine tactics (how(
it will happen)
Improvement professionals – CoachImprovement professionals Coach,
Teacher, Facilitator.
Not Toyota like: “Getting your employeesNot Toyota-like: Getting your employees
to buy into the change that you want to
implement to improve the operation ”
© 2011 Karen Martin & Associates
implement to improve the operation.
31

32. Why people resist change
Poor understanding
Cynicism & skepticism (low trust/faith)
Low involvement
Change fatigue
Lack of consensusLack of consensus
Fear
© 2011 Karen Martin & Associates 32

33. Change Fatigue
© 2011 Karen Martin & Associates 33

34. It’s a marathon, not a sprint
Help leadership develop realistic expectations
regarding results and the resources needed to getregarding results and the resources needed to get
there.
 “How long has this been a problem? It may not get How long has this been a problem? It may not get
solved overnight.”
Allow “absorption time”; schedule regular hanseip g
sessions.
Pacing is key - avoid “organizational implosion” by
attempting too much too fast.
Check in with the customer (workforce) frequently
© 2011 Karen Martin & Associates
and adjust accordingly.
34

35. Why people resist change
Poor understanding
Cynicism & skepticism (low trust/faith)
Low involvement
Change fatigue
Lack of consensusLack of consensus
Fear
© 2011 Karen Martin & Associates 35

36. Consensus-Building Tactics
Alignment around strategy.
Improvement is well-defined and well-
communicated.
Cross-functional teams.
Upfront and periodic input from teamUpfront and periodic input from team
member’s peer groups.
R i d t ti t id th tReview and testing outside the team.
Interim briefings between teams and
© 2011 Karen Martin & Associates
leadership.
36

37. Interim Briefings
Periodic updates
 Discoveries
 Direction team is taking – process check
Minimize the surprises; get buy-in as the
team moves along; reduces rework by theg; y
team
Venue for challenging policiesVenue for challenging policies
© 2011 Karen Martin & Associates

38. Why people resist change
Poor understanding
Cynicism & skepticism (low trust/faith)
Low involvement
Change fatigue
Lack of consensusLack of consensus
Fear
© 2011 Karen Martin & Associates 38

39. Types of Fear & Countermeasures
Fear Countermeasure
Job loss • “No one will lose a paycheck due to
improvement ”improvement.
• “Your job may change but your
paycheck is assured.”
• Job loss only due: to 1) poor
f 2) k t d tperformance, 2) market downturns.
Incompetence • Training, training, training
• Confidence leads to competence
Loss of control (leadership) • Adequate workforce skill development.
• Help them see how freed time will
enable them to be more effective
leadersleaders.
Improvement won’t be adequately
resourced (workforce)
• Leadership commitment
Chaos sustainability permanence • Pilots; experiments
39
Chaos, sustainability, permanence,
failure
• Pilots; experiments
• Monitoring
• Continuous improvement

40. A Spirit of
ExperimentationExperimentation
Reduces Resistance
t Ch d tto Change due to
“Fear of Permanence”
Plan
PDCA reduces risk of
failure
Do
Check
Act
© 2011 Karen Martin & Associates

41. Cultural Transformation Process
Results
Actions The Results Pyramid
Partners in Leadership
Beliefs
p
Experiences
© 2011 Karen Martin & Associates
Experiences

42. Creating New Experiences
Scientific method (PDCA)
Leadership setting clear strategy via hoshin
kanri and value stream maps.
Leadership staying out of the weeds – frontline
workforce designs and implements tactical
solutionssolutions.
Cross-functional collaboration.
D di t d ti f ki i tDedicated time for making improvements.
Rapid, consensus-driven improvement.
R l t ti iti ff ti t i i
© 2011 Karen Martin & Associates
Relevant, time-sensitive, effective training.
42

43. If you expect resistance,
ill t i tyou will get resistance
© 2011 Karen Martin & Associates 43

44. Miscellaneous Thoughts
and Observationsand Observations
© 2011 Karen Martin & Associates 44

45. Psychology 101
We seek pleasure and avoid pain.
© 2011 Karen Martin & Associates

46. Observation #1
If it’s too hard to do, we will
delay or avoid doing it
 Builds up work-in-process
 Prolongs lead times
Aim for work simplification –p
make it easy to be
successful, difficult to fail.,
© 2011 Karen Martin & Associates 46

47. Observation #2
The more you create ay
“safe haven” for
people to tell thep p
truth and share their
feelings, the fasterg
the improvement, the
greater the results,g
and the deeper the
organizational healing.
© 2011 Karen Martin & Associates
g g

48. Observation #3
When processes
are monitored, we
perform differentlyperform differently
Post metrics!
 Especially leading
indicators
© 2011 Karen Martin & Associates 48

49. Observation #4
Most inspection (reviews, approvals, audits,
t ) i d d i l k f t t fetc.) is grounded in lack of trust or fear.
 Low faith in process reliability
 Low confidence in people performing the work
 Fear of losing control
 High “need to know”
 Risk aversion
 Fear re: outcome
© 2011 Karen Martin & Associates 49

50. Observation #5
People want to perform well
Most people will do
h t it t k twhatever it takes to
get their jobs done,
hi hwhich may cause
them to:
 Ignore policies and
procedures
I l i Ignore regulations
 Cut corners
© 2011 Karen Martin & Associates 50
The right process will produce the right results.

51. Observation #6
Poorly designed processes are typically
behind interpersonal and interdepartmental
tension – not personalities.
Poorly designed processes are behind poor
© 2011 Karen Martin & Associates
process performance.

52. Observation #7 – Words Matter
Words greatly impact “group think” and
i di id l h lindividual psychology.
 Help staff transform their thinking and speech
f “N b ” t “Y if ”from “No, because…” to “Yes, if…”
 Sensitize people about the word “can’t”:
/ “ ” Disempowers / creates “victim thinking”
 Closes off possibilities
 Stifles innovation and creativity Stifles innovation and creativity
 They (and possibly you) will need to break
habits
© 2011 Karen Martin & Associates
habits.

53. In Summary
If used properly, Lean principles and tools
are 100% grounded in leveraging human
nature to achieve:
 high functioning organizations
 that perform optimally, and
 that everyone wants to work for
 and do business with.
© 2011 Karen Martin & Associates 53

54. What can you do to become a
better psychologist?
Reflect
Be fully present
 Listen deeply – use every sense
 Observe
ExperimentExperiment
Be an active learner
Read Read
 Take classes
I l d h l i k di i
© 2011 Karen Martin & Associates
 Include psychology in work discussions
54

55. Learning Objectives
Participants will learn:
 How psychology affects the entire improvement
process, from strategy to execution.
 What you can do to ensure both short- and long-
term success.
H t t th b i d l h How to meet the basic needs people have
through the improvement process.
Specific tactics that leverage human nature to Specific tactics that leverage human nature to
achieve optimal business performance.
© 2011 Karen Martin & Associates 55

56. Lean Resources
The Toyota Way, Jeffrey Liker
Lean Thinking, Jim Womack
Lean Hospitals, Mark Grabanp ,
The Kaizen Event Planner, Karen Martin &
Mike OsterlingMike Osterling
© 2011 Karen Martin & Associates 56

57. Recommended Resource
© 2011 Karen Martin & Associates 57

58. For Further Questions
7770 Regents Road #635
San Diego, CA 92122
858 677 6799858.677.6799
ksm@ksmartin.com
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