Transcript Keynote 3 by John Shook - Lean Management Institute of India
Lean India Summit 2014
Transformational Lean Leadership
John Shook Lean Enterprise Institute Lean Global Network September 2014
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Aligning:
•
Purpose
•
Process
•
People
Understanding Lean Transformation
to create value
How to improve the work?
WHAT is our PURPOSE?
What situational problem do we need to address?
What leadership behavior and management system do we need?
How to develop the people?
What is our BASIC THINKING??
What is the role of leaders in a lean transformation?
• I frequently hear… • “I can’t get my people to do this. How can I get people to do
this
…?” • How to reply…?
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Change – the leader’s role…
• “ How can you get others to “do
this
”…?
Only one way…
Lean Leadership
•
…is obviously different from the old command and control dictator.
•
It is equally different from the commonly accepted notion of the “enlightened modern manager”.
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But, W hat IS “Leadership” Anyway??
And where does it fit in with organizational and personal CHANGE or “transformation”?
W hat IS “Leadership” anyway??
• “
The greatest leaders of the 20 th century were Hitler, Stalin and Mao: If that is “leadership”, I want nothing to do with it.”
•
- Peter Drucker
Lean Leadership
•
Practice of Leadership
•
vs
•
Exercise of Power
“I could put a loaded gun to your head…” True leadership exists when people follow when they don’t have to…”
•- James MacGregor Burns
Lean is Personal and Organizational New United Motor Manufacturing, Inc. – NUMMI – built its first car in December 1984 and its last in April 2010.
A Transformation Story: Toyota and General Motors
The Worst Factory in the World… Certified Worst!
From the Worst to the Best…
Certified!
NUMMI and the Role of Leadership Graphics slide. Place graphic within the white box.
Four lessons in leadership from NUMMI:
• • • •
“Establish mutual trust” “No problem is problem” “Lead as if you have no power” “Before you build cars, build people”
No Problem is a Problem
Solving Problems at the Gemba HERE! NOT HERE
GEMBA Data Analysis Room
TOOLS DEFECT!!
Kan Higashi to Gary Convis… (NUMMI’s senior Japanese and American leaders) “
Lead the organization as if you have no power."
Lean Leadership
Practice of Leadership
vs
Exercise of Power
“ I could put a loaded gun to your head… True leadership exists when people follow when they don ’ t have to… ” - James MacGregor Burns “ Lead as if you have no power.
” - Kan Higashi to Gary Convis 22
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The Key Factor of Key Factors: Developing People Matt Long of the Herman Miller company: “We aren’t just solving problems… We are developing problem solvers.”
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The Twin Responsibilities of a Lean Leader Get the job done
and
develop your people… and accomplish those
at the same time
How…?
Lean Management Responsibility vs Authority
•
In my five years in Toyota City, almost never was I given solutions.
•
Yet, I was not free to just do what I wanted.
•
I was given clear responsibility to propose solutions to problems I owned.
Ownership of Performance Responsibility vs Authority
In a traditional hierarchical organization:
•Position establishes (or seems to)
authority to make
decisions.
•-> In cross-functional organizations, this causes confusion, frustration, and breakdown of the decision making process.
In a Lean Organization:
•Position establishes
responsibility made.
to
get decisions
Making Decisions and Creating Alignment RESPONSIBILITY-BASED
Focus: Decide the right thing
AUTHORITY-BASED
Focus: The right to decide
Lean Management
Control with Flexibility
•This way of managing provides extraordinary focus, direction, “control.” •While at the same time providing maximum flexibility.
•This way of working can resolve the age-old dilemma that encumbers all large organizations: control vs. flexibility.
Change – the leader’s role…
• “ How can you get others to “do
this
”…?
Only one way… The challenge is not “getting other people to do this”… The challenge is getting YOU (and me) to do this!
The Lean Leader’s Challenge
•
Make objectives, outcomes, assignments clear enough that the subordinate can approach the task with confidence.
•
Yet, open enough that responsibility is not taken away.
•
So the individual doing the work has clear responsibility to propose solutions with a sense of entrepreneurial ownership.
Clear direction with clear ownership
The Lean Leadership Challenge
• Enable each person to take responsibility to solve problems and improve his or her work • Align each persons’ work to provide value for the customer and prosperity for the organization
Get the work done and - at the SAME TIME!
Develop Capability
Begin with Yourself!!
Chairman Fujio Cho of Toyota: Three Keys to Lean Leadership
Go See.
•
“Sr. Mgmt. must spend time on the front lines.”
Ask Why.
•
“Use the “Why?” technique daily.”
Show Respect.
•
“Especially the people doing the value creating work.”
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"Lean management is less about providing the right answers than asking the right questions and trying things or encouraging others to try things.
The A3 as a Job Aid for Managers as Coaches
Basic Thinking – Lean Thinking
• Principle of “Just Enough” • Practice of
Questioning
and
Experimenting
–
Structured
Questions and Experiments
The A3 as a Job Aid to Ask Good Questions
The Twin Responsibilities of a Lean Leader Get the job done
and
develop your people… and accomplish those
at the same time
How…?
Results and Process
• Manage by Results (MBO/MBA) • Manage by Means (Process)
- H. Thomas Johnson
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“Go See”
“Data is of course important, but I place greater emphasis on facts.” -Taiichi Ohno
Measures/KPI
• • •
“There is no true value of any measurement” (Deming) The map is not the territory (SI Hayakawa) What gets measured gets…
Measures/KPI
• • •
“There is no true value of any measurement” (Deming) The map is not the territory (SI Hayakawa) What gets measured gets… …GAMED!
Assessment and Feedback
Carol Dweck gave different feedback to two groups of test takers.
Group A: “You must be really smart at this!” Group B: “You must have worked really hard!”
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Praise Results or Praise Effort?
“You must be really smart at this!”
Performance worsened!
“You must have worked really hard!”
Performance steadily improved!
A 30% gap emerged john shook
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Results and Process
RESULTS
Results and Process
RESULTS
Results and Process
RESULTS
Results and Process
RESULTS
KPI and KSF
• Key Performance Indicator • Key (Critical) Success Factor – The objective is what needs to happen – The KSF is determined by asking, “what needs to happen for that to happen?” • Leaders establish alignment around the vision and key objectives • Then break those down into the processes that can deliver on the KSFs.
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KPI and KSF
• Then, break those down into the processes that can deliver on the KSFs… • “Process” = The “work to be done”. What needs to be done and HOW to do it. • Become obsessive about that. That’s the fun in all this.
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Leading Through Capability Development Through Collaborative Problem Solving
No Problem is a Problem!
NEXT TARGETED CONDITION GtS
A C P D Tools
GtS
A C P D Tools
GtS
A C P D Tools
TARGETED CONDITION CURRENT CONDITION
Off We Go
• The good news is that
you can do this
. • The other good news is that it is going to be
really hard work
.
• The troublesome news is that there is no “roadmap”. (And beware of consultants who want to sell you one!) • But – more good news – you are not floating adrift! You have the Lean Transformation Model as your compass, your GPS, to help guide you. 51
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