Transcript Making lean sustainable over time: culture and leadership

Making lean sustainable over
time: culture and management
Jose Ferro
Bangalore
November 2014
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Lean brings business results!!
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Significant manufacturing improvements
New products faster, better and more profitable
Higher profitability
Market share gains
Substantial growth
A continuous learning organization
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Performance
Initial stages of the lean transformation
Time
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Sitting on top of a pile of gold!
Double the production volume with the
same resources....
or.....
reduce the need for resources by half...
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Performance
But many times it is hard to sustain
Why does this
happen too often?
Time
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This may occur because of the way we
traditionally implement lean
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Lean tools are great for improving the
processes and develop capabilities
– VSM, A3, Problem Solving/Kaizen, Flow, Pull, SW,
Visual Management etc etc
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But if we want sustainable results,
we have to go beyond
 New leadership style and a new way
of thinking are essential if we want to
make it sucessful over time
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Changes in leadership, management
and culture should be considered up
front
• How do those issues usually appear in
the initial stages?
1. Senior management/CEO not engaged?
2. Middle management resisting the change?
3. Supervision not wanting to change their command
and control attitude?
4. Direct workers not wanting to do more and
different?
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1. Senior management/CEO not
engaged?
• Senior leadership and CEO engagement is essential
• But are the CEOs the real problem in your LT?
• If we rely too much on an overbearing CEO to be
successful, that might be
a problem
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We want to change the leadership
style
• So, if we rely on an authoritarian CEO to
promote the lean changes, that could be a
new problem in itself
• Perpetuating a leadership style we may want
to change......
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2. Middle management resisting the
change?
• If we rely on lean coordinators (or change agents) to
promote (and push) the transformation, they may resist
• Mid Management might not understand (and agree upon)
what is the problem being solved and may have different
priorities
• Middle managers don´t have the lean knowledge in the
beginning learn by doing
• They have to be engaged and take a core role
• They have to become lean coaches and develop their
people capabilities
• However, there may be some not willing to learn and
change.....
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3. Supervisors not wanting to change
their command and control attitude?
• It is usually hard for them to understand their
new roles
• They need the middle management support
and coaching
• But oftentimes they are proactive and
supportive (their lives improve as the results
and performance)
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4. Direct workers not wanting to do
more and different?
• I have rarely seen this, even in highly unionized
environment
• On the contrary, they tend to respond with
enthusiasm as they:
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have to focus on value adding activities
work conditions improve
have more voice
know what to do (work, solve problems, improve,
ask for help etc)
– are more respected
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What kind of leadership do you want?
• Lean Leadership  Follow me
• Not top down, not bottom up
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Organizational Structure
Process X
Costumer
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Lean Coaching: an essential practice
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Learning to ask the right questions
Learning to listen
Gemba and real practice oriented
Making people think
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Changing the culture
• The essence of culture: the basic assumptions
(invisible) and the values (what is said)
• Changing the culture is hard and slow
• But we can start implementing the new
practices and begin to expose some of the
basic thinking; and change what is blocking
our progress
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Practices
Values
Basic assumptions
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What kind of culture do you want?
• Hide or expose the problems?
• Short term or long term?
• Trust and believe in people or people are
bad?
• Use the scientific method or fight fires?
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Performance
How to take a company to a new level of
performance?
What needs to be done
in order to move the
organization to perform
better and better, all the
time?
Time
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What do we have to do in order to
make the lean transformation
successful in the long run?
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A transformation strategy that sticks
(LTM)
• Focus on the priorities of the business
(hoshin kanri)
• Improve the processes (VSM, SW, OBC, flow,
visual management etc)
• Develop people capability (A3,versatility
matrix, SW, kaizen)
• What type of leadership (lean coaching)
• Question the basic values and assumptions culture (lean coaching)
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THANK YOU!!
[email protected]