Keynote 3 by John Shook - Lean Management Institute of India

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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

© Copyright Lean Enterprise Institute.

Lean Enterprise Institute and the leaper image are registered trademarks of Lean Enterprise Institute, Inc.

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.”

23

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.”

33

"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

38

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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

43

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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