Educating People in Lean Thinking

Discussion Workshop

Dr Nick RichCardiff School of Management

Nick Rich: Career History‘A frustrated Engineer!’

• Associate Dean Cardiff School of Management– Centre for Lean Education, Application & Research CLEAR– Honorary Associate Professor Warwick Medical School– Chief Industrial Engineer (2012 Olympic and Paralympic Medal 

Programme) – Co‐Founder at the Lean Enterprise Research Centre

• With Dan Jones– Toyota Motor Corporation Japan Senior Research Fellow 

– UK Government Reports & 5 Books

Our Workshop• LEARNING• What do we need to learn to improve business performance through Lean 

Thinking?• How do we apply the scientific method to our lean journeys?• How can we use Policy Deployment to learn the vital few performance gaps for the 

organisation to close?• EDUCATING• What alternatives ways are there to deepen both our organisational and individual 

skills to create value for customers?• How are the best lean organisations educating their people in lean?• How can we effectively coach, develop and mentor leaders and employees on the 

job?• SHARING• What do we need to share with our people in order to sustain and further 

improve?• How can we share and communicate our efforts?• What roles do Policy Deployment, coaching and the A3 process play in sharing?

What really works: The 4+2 Formula forSustained Business Success 

• Professor Nitin Nohria, Harvard Business School– Most management tools have little effect on results– Why? No meaningful link between new techniques and long‐term performance

– There is a strong correlation with good management practices using tools to help achieve a particular objective

– There is danger in focusing too intently on the tool. It leads to losing sight of the long‐term organisational objectives 

“Full speed in a least six critical areas”• All of the four primary features:

– a clear, focused, well‐communicated strategy– superb operational execution– a performance‐orientated culture– a flat, flexible organisational structure

• Plus two of the secondary features:– recruitment and retention of talented staff– strong demonstrable commitment from leaders– service transforming innovations– grow through mergers and partnerships

So Where Are You?

• Do you think at the system level or lower?

• Do you think beyond the current ‘voice of the customer’ and over the longer term?

• Optimised your current services? 

• Prepared to compete now and in the future?

So What Do We Need?

• Policy Deployment to set direction• Value stream management• A3s to control the rate of change

• Operational Excellence, standard work, and kaizen for tactical improvement (supply chain)

• Education, training, coaching & Mentoring for sustainability

Impr

ovem

ent

Are

as

Performance Indicators Targets &

M

easures

Target ForDepartmental Mgrs

TOTAL £1.108m

Reduce Stocks

Reduce InspectionSupplier Evaluation System

Other 1

Plant Effectiveness

Other 2

£3.3 m-£2.75m

OEE 50 -85%

Direction 2

Ave 55% -87%

-50%

Direction 1

£550,000

£375,000

£133,000

£40,000

£10,000

DepartmentIn B

uffe

rs

In P

oor D

eliv

ery

In S

uppl

ier F

ailu

re

In O

pera

ting

Cos

t

In In

spec

tion

cost

s

P.PlanningM

anufacturing

Quality C

ontrol

Maintenance

Adapted From Merli 1996

JFMAMJJ2006

Policy Deployment X Chart

Value Stream Mapping VSM

The A3 Journey

Value Stream Transformation

FutureFocused Business Case & 

Challenge

Mapping Indirect Processes• Lean should drive collaboration between departments 

• Departments focused on value generation will become more effective

• Knowledge will flow between departments

• Sharing goes beyond the boundaries of the organisation chart

Basic Discipline  SAFETY AND MORALE

QUALITY UP  = COST DOWN

DELIVERY UP + QUALITY GOOD = COST DOWN

PROCESS FLEXIBILITY UP = COST DOWN

COST  DOWN FOCUS (SCM)

TIME

The Competitive Keys For Complexity Exploitation

COST  DOWN FOCUS (by Design)

EFFECTIVENESS

Mastering Your Operating System 

Total Quality ManagementPractices and Problem 

Solving by Teams

Toyota Production System And standardised work 

Approach to flow

Total Productive MaintenanceAnd an approach to system 

Reliability for interrupted flow

A Single Organisational System‐ Consensus‐

QUALITY DELIVERY

RELIABILITY

Total Quality Management Approach

Lean Production System Design

Total Productive MaintenanceApproach

Workplace OrganisationCANDO/5S

Visual ManagementTeams

Six Sigma Statistical Process Control Design of Experiments

Taguchi Methods

Early Equipment ManagementReliability Centred Maintenance

Level ProductionSupplier Pull SystemsCells & LayoutQuick Changeover

Problem‐Solving

Problem‐Solving Problem‐Solving

Autonomous MaintenancePlanned MaintenanceQuality MaintenanceOEE Analysis

Mistake Proofing

Standardised Work

Mistake ProofingMistake Proofing

BrainstormingCause and EffectPareto

QualityFocus Delivery

Focus

CostFocus© Nick Rich 2000

Healthcare Operating Models

Beyond The Shopfloor

Characteristics Old Model Lean ParadigmStrategy Planned EntrepreneurialStructure Hierarchy Cross-Functional/NetworkSystem Rigid or C.I. Flexible within boundariesStaff Title + Rank HelpfulStyle Problem-Solving TransformingSkills To Compete To buildShared-Value Better-Sameness Meaningful-DifferenceFocus Process Management Institution and networkSource of Strength

Stability – Reduce Costs

Change and rate of adaption/Innovation/Profit

Leadership Dogmatic Inspirational/Listening

The ‘Glass Ceiling’ 

Business Results

TIME

Full Potential

The Improvement Stall Point 1

Profit Glass

Ceiling

Problem Solving

Doing Job

ProfitabilityGrowth &Innovation

Value StreamMapping

The Improvement Stall Point 2

DESIGN

• Value does not keep rising as you optimize processes

• You cannot rely on being just a bit better –you win orders and deliver value in a different way

• We believe we need knowledge workers and remain in buying graduates and retraining mode

• Some organizations believe we need boundary spanning workers

• Why compromise? Training and Education

Our Operating Models Will Fail!

Organisational Competence: There  is a difference

64%

66%

67%

67%

74%

74%

75%

75%

63%

64%

64%

64%

50% 75%

Foreign languages

Self-direction/Lifelong learning

Written communications

Ethics

Work ethic

Oral communications

Leadership

Handling diversity

Creativity/Innovation

Teamwork/Collaboration

Information technology application

Critical thinking/Problem solving

Percent of employers who believe skill will become more important over next five years

Broad competencies: Employers expect them to become more 

important

Source: Conference Board. (2006). Are they really ready to work? (p. 49, Table 12)

Time to Change                   Current

RoleTraining

Reporting & Auditing 

Checking and 

expediting

Problem Resolution

Data Chasing

NeededRole

business effectiveness Projects

Multi‐skilling to absorb new work 

demands

RESEARCH 

Cross functionalTeams QCD Focus

Training

Data Chasing

Valuable New

Activities

Adapted Sony Corporation

Supply chain specialists, Schedulers, designers, marketeers, and maintainers!Senior Management too!

Training and Education: The Differences

• Objective– Training—to improve job skills and performance– Education—to improve knowledge not connected to a job (a system)

• Focus– Training—about learning “how”  to do things – Education—about learning “what” underpins  doing

• Time Period– Training—short‐term and immediate– Education—long‐term and annuity

Educating People in Lean Thinking

Let’s start talking about the business model

Are You Hollowing Out The 

Competitive Advantage of Your 

Business or Client?

Operational focused training?

Education and knowledge? 

Which type of employee?Why do they need it? 

Who Needs Educating In Lean 

Thinking?

REACTIVE

CONDUCTINGROUTINEWORK

PREVENTPROBLEMS

50%

100% PROJECTS

CONDUCTINGStandard 

OPERATIONS

50%

100%IMPROVEMENT

PROJECTS

5S Autonomous Work

The middle Management‘Systems designers’

Specialists

Associates

Executive Management‘Direction Setters’

Who Knows How and What?

Education & Training Investment

Executives

Managers

Teams

Specialists Specialists

OrganisationalLevel

TopProfessionals & Executives

Department and section managers

Team Leaders

Associates

Key Contribution

Improvement

Innovation

Daily Maintenance

Source:  adapted from Toyota Motor Corporation (Japan)

Engagement & Meaning

Peculiarly British Disease?“Hello, My name is John and I am an actuary. I currently work for ABC Actuaries”. 

What does that tell you about John?

What does John Value? How important is his role in an organisation?

Quality 

ConstancyOf

Purpose

Break DownDepartmental

Barriers

Cease Doing Business On Price Alone

CreateLeadership

Drive Out Fear & ReportProblems

On The Job

Training

ExceedExpectations

Continuously Improve

EliminateSlogans

Create PrideIn Work

EliminateQuota Thinking

Adapted from Deming !

Not Very Impressive Progress! TQM

Where’s the gap?

Laboratory Staff

Maintainers

Trainers

H&S Staff

Which type of employee?Why do they need it? 

Who Needs Educating In Lean 

Thinking?

What Are The Barriers To Knowledge Transfer?

What Are The Enablers?

More collaboration in the workplace

In top 1,000 companies:Use of self-managing work teams rose from 28% in 1988 to 65% in 2005.

Work teams are increasingly global.

Teaching & Facilitating

• Teaching/Education – 1‐2‐1 or in groups involves telling (teacher leads)– Subject matter expert– Basic knowledge that underpins the business– Measured output

• Facilitation– Helping individuals and groups learn (to achieve an objective)

Barriers and Enablers?

• What prevents you from educating staff?

• How many staff would you need to have a critical mass to match your business competence?

• What would enable staff to maintain their knowledge? 

In What and How Should We Educate?How do we engage with 

them?What interest would they have in lean?Why haven't they engaged so far?

Mentoring

• A relationship between a more experienced staff member and to help a less experienced individual learn to be effective in their role/future role

• The mentor uses their experience and network of contacts to advise and develop the other person.  

• A mentor is a learning role model

A coach is someone to learn with – the coach helps the individual to reflect and learn from their experiences/build 

models with the individual.  Someone to learn with.

The Best Use of Coaching• Developing leaders• Support during lean transformations• For key staff when undergoing individual change

• Implementing new skills and lean practices (cultural and behavioural change management) 

• Improving team learning especially for ‘indirect’ staff

• Increasing organisational learning

The GROW Coaching Model

Will and Commitment

Goal

Reality

Options  

Whitmore, Sir John, 2009, Coaching For Performance. (4th Edition), Nicholas Brearley Publishing

Experiential Learning Cycle

Adapted from Kolb D.A. (1984) 'Experiential Learning experience as a source of learning and development', New Jersey: Prentice Hall

ConcreteExperience

Reflective Observation

Abstract Conceptualisation

Active Experimentation

Effective Educational Programmes

• John Bicheno Lean Enterprise MSc Programmes

• 20Twenty Programme• Sector Skills Pilots• Healthcare Improvement (Accredited) Programmes

• Corporate Degrees and distance learning degrees (Undergraduate and Masters)

• Professional Doctorates

Education At Sea

Introduction & Initial ThemeTHEME 2:The NHS: Political Context and Making a Difference   

THEME 4: The Principles of Service Improvement THEME 5: Defining Your 

System/Lean Principles

THEME 3:  Leadership that makes a difference

THEME 6: The Distinction Self

Thought Leadership Seminar 1

Initial  Identification/Review of Participants OD  Project

BlockOne: Day1

BlockOne: Day2

Reflection and Practice 1 MonthIntroduction & Review/PreviewTheme 7: Mapping Your System

Theme 9: Problem Solving Theme 10: Intervention Management (A3)

Theme 8:  Evaluating and Identifying with Leadership Styles

Theme 11:  Creating Capacity/Personal Change

Thought Leadership Seminar 2

Reflection and PracticeIntroduction & Review/PreviewTheme 12:  Measuring Success

Theme 14: Lean Solution Management 

Theme 13: Creating Capacity/Organizational Change

Participant OD Project Posters Agreement of Co‐Coaching Partnerships

Thought Leadership Seminar 3

Reflection and Practice

Introduction & Review/PreviewTheme 15: Creating Communities of Best 

Practice

Theme 17:  Complex Adaptive Leadership Master Class

Theme 16:  High Performance Coaching 

Theme 17: Complex Adaptive Master Class (Plenary)

Thought Leadership Seminar  4

Reflection and Practice

Introduction & Review/PreviewTheme 18:  Structures & Sustainability Participant Presentations (4 Groups) Participant Presentations (4 Groups)

Critical Reflections: Sustaining  & Embedding  Practices  Graduation 

Sustainable Change 

BlockTwo: Day1

BlockTwo: Day2

BlockThree: Day1

BlockThree: Day2

BlockFour: Day1

BlockFour: Day2

BlockFive: Day1

BlockFive: Day2

0900 to 1230 1330 to 1600 1730 to 1830

Refining and Agreeing Participants OD  Project

Summary and Your Organizational Audit

Thank You!

• Know how and Know why

• Learning and levels:– Do it right – Do it better – Do it differently

• What about your operating model?