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All materials copyright 1992-2006 Lean Associates, Inc. all rights reserved. No part of this presentation may be reproduced without written permission from Lean

Associates, Inc.1000 Falcon Wood Way Lexington, KY 40511 (859) 552-5326

Leading the Change Process

David Meier

Lean Associates, Inc.

Book Manufacturers’ InstituteManagement Conference

Spring 2006

Book Manufacturers’ InstituteManagement Conference

Spring 2006

Thanks to Jeffrey Liker for some information

Copyright 2006 Lean Associates, Inc.859-552-5326

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The Toyota Way 4 P Model

Philosophy(Long-term Thinking)

People and Partners

(Respect, Challenge and Grow Them)

Process(Eliminate Waste)

ProblemSolving

(Continuous Improvement and Learning)

Source: Jeffrey Liker, Author: The Toyota Way

All materials copyright 1992-2006 Lean Associates, Inc. all rights reserved. No part of this presentation may be reproduced without written permission from Lean

Associates, Inc.1000 Falcon Wood Way Lexington, KY 40511 (859) 552-5326

Create a Long–Term Philosophy

“A journey of one thousand miles begins with a single

step…”Confucius“…Followed by about 2 Million

difficult, challenging, continuous steps.”

David Meier

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Lean Systems are a Matter of Philosophy

Lean Thinking “Learning to See” Waste “Thinking Production System” Good Thinking, Good Products

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Defining the Purpose of the Organization

Company Purpose

Learning Community

ST: Capable PeopleLT: Learning to Improve

Lean Systems

ST: Capable ProcessesLT: Value Stream

Improvement

Learning Enterprise

ST: Capable PartnersLT: Learning Enterprise

Value-Adding Contributor

ST: ProfitableLT: Growth and contributing to society

Key: ST=Short term LT=Long term

Internal External

People

Business

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PhilosophyWaste Elimination

Performance MeasureReduced Lead Time

PrincipleCreate Continuous

Process Flow

StrategyCreate Interdependent

"Connected" Processes

ReasonProblems are Surfaced Quickly and are Critical

EffectProblems Must be Corrected Quickly

Control MethodUtilize Visual Controls so

That no Problems are Hidden

ResultWaste is Reduced!Method

Pull System

Lean ToolsKanban, Supermarkets,

Defined FIFO Lanes

Start with Philosophy… end with desired results

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Establish a Long-term Vision

Why do lean? What is your personal motive? How will you create an environment

that goes beyond mere compliance? Are you committed to the journey?

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What is Leadership?

Getting people to go where they would not normally go

Getting people aligned to a common objectives

Having guts Being a talent scout and developing

talent

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Great Leadership Begins With Desire

More than a desire for the position or rank

Leadership skills can be taught, desire can not– Desire to learn– Desire to face the challenges– Desire to find the value in people– Willingness to persevere

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The Process Always Begins With Leadership

Are you willing to make short-term sacrifices for long-term benefit?

Can you make the tough decisions? Are you willing to stand against the

tide? Are you willing to face the challenges

of changing a culture? Really?

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Committed versus Involved

Cow, Chicken, and Pig How much will you learn about the

process?– How will you guide and coach if you do not

learn? How much time will you personally

invest?– Many people sense the commitment of the

leader and commit to the same degree

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Focus on the Desired Outcome…

…not just the roles and responsibilities of the position

Supporting Operations- Continuously improving process and results

Supporting and developing people (a leader develops other leaders)

Leading the people in the process of change

All materials copyright 1992-2006 Lean Associates, Inc. all rights reserved. No part of this presentation may be reproduced without written permission from Lean

Associates, Inc.1000 Falcon Wood Way Lexington, KY 40511 (859) 552-5326

People

“If it weren’t for the people this would be easy.”

“But, if it weren’t for the people this would be impossible.”

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Importance of People at Toyota

“We build people, not just cars.” Toyota is frugal on manufacturing

expenses, but lavish on people costs (development, incentives, rewards).

Thinking is a critical ability and it is expected. Without the ability to think and to improve the system is useless.

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Importance of People

Motivating Developing Challenging Getting the best thinking Getting the best effort Maximizing the return on human

investment

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The $64,000 Questions

How do you get people to “buy in” How do you convince the people who

don’t want to change? How do you get people motivated? What was wrong with the old way?

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Nucor Steel on the Art of Motivation

Employees will make an extraordinary effort if you reward them richly, treat them with respect, and give them real power.

The art of motivation is about an unblinking focus on the people on the front line of the business.

Nucor does not just create steel, they create knowledge.

“Our culture is a living thing. It will never die because we will never let it die, ever.”

Business Week 05/01/06

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Making the Work Meaningful

People want to know that what they do matters

People expect to have meaning in their work– Let’s face it, the task can be routine

There is a high priority on learning and development

People like to feel a sense of accomplishment

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The Key to Motivation- Know the People

Moving away from negative influence

Moving towards positive influence

Fear, Reprisal, Loss

Challenge, Reward, Achievement

Embarrassment, Failure

Money is not the

only motivator!

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Clarify Expectations

Above Expectation

Below Expectation

Not everyone needs to be a star

But no one can be below expectation

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Helping People Develop Capabilities

Identify interested people Know people

– What do they like and want? Find what is aligned with the needs of the

organization Specify your interests and needs Identify obstacles and need for change Provide Support Provide Guidance Achieve mutual objectives

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The People Bell Curve

C.A.V.E.

5%

W.A.V.E.

5%

W.A.S

90%

Where will you spend your time and effort?

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The People Curve

True C.A.V.E.

True W.A.V.E

. More Cave Tendencies

More Wave Tendencies

You need to find the 5% of the

population from the WAS group

who can influence the masses

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Reach the Critical Mass

Small percentage will influence the masses

Reach the unofficial leaders People don’t like to be left out of

something good People don’t want to stand alone from

the crowd

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Continuous Improvement

“Until you take the first step, it will not be possible to see the next step”

“Some days, big up”

“Every day, little up”

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Questions / Comments

Contact Information: David Meier

859-552-5326

[email protected]


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