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16-11-16 1 Copyright Lean Management Ins3tuut © 2016 LEAN GLOBAL NETWORK UK Lean Summit 2016 Learning Lean, Lean Learning Wiebe Nijdam & Roberto Priolo E: [email protected] Practical Strategy Deployment What do we exactly understand by strategy deployment or hoshin? Create a con3nuous communica3on structure where we are breaking down abstract organiza3onal objec3ves into clear targets for value streams and processes Done by the whole organiza3on, everybody involved A3’s are “the pivot point” of effec3ve strategy deployment “think deeply” Engage everybody in improving the work and solving the problem on a daily basis

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Page 1: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

16-11-16

1 CopyrightLeanManagementIns3tuut©2016

LEAN GLOBAL NETWORK

UK Lean Summit 2016 Learning Lean, Lean Learning Wiebe Nijdam & Roberto Priolo E: [email protected]

Practical Strategy Deployment

Whatdoweexactlyunderstandbystrategydeploymentorhoshin?Createacon3nuouscommunica3onstructurewherewearebreakingdownabstractorganiza3onalobjec3vesintocleartargetsforvaluestreamsandprocesses•  Donebythewholeorganiza3on,everybodyinvolved•  A3’sare“thepivotpoint”ofeffec3vestrategydeployment•  “thinkdeeply”

Engageeverybodyinimprovingtheworkandsolvingtheproblemonadailybasis

Page 2: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

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2 CopyrightLeanManagementIns3tuut©2016

Frameworkandessen3alelements

3

Leadership Standardized Work

Visual Management Daily accountability

Processfocus

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Effec3vestrategydeploymentisalivesystem

Dialogueandgivingauthorityisessen3al:

DialoguebetweenthelayersCommontargets&problems

Page 3: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

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3 CopyrightLeanManagementIns3tuut©2016

Quickresponseonsmalldevia3ons

Solu'ons

Assignm

ents, projects, ...

Prob

lems

Sor

ry, c

an’t

do th

is, b

ecau

se...

Traditional management Lean management

Challenges

Vague concerns, performance gaps

Mentoring

on the 7 Elem

ents of A3 Thinking

Coun

term

easures

This

is a

gre

at s

olut

ion!

Solutions go down, implementation problems escalate up

Challenges go down, proposed countermeasures go up,

mentoring on sound Problem Solving goes down

sr mgt

shop floor

team leaders and group leaders

middle management

Page 4: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

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4 CopyrightLeanManagementIns3tuut©2016

TheboardstructureSitelevel&Departmentlevel

Startyourownstrategydeploymentjourney….

Thepaperfactory

Page 5: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

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5 CopyrightLeanManagementIns3tuut©2016

TheStructure

Firststep,breakingdownthestrategicalgoalsintogoalsfortheorganiza3on(SQDC)

Page 6: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

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6 CopyrightLeanManagementIns3tuut©2016

Secondstep,understandingthegap!•  Foreachofthe

goals:–  Howdidwedo

lastyear?–  Howdidwedo

thisyear–  Whatisour

target?

•  Dothiswithayearlytargetinmind

Getanideaoftherequiredac3on

•  Arewemovingtowardstarget?–  Makeaplanands3cktoit!

•  Areweontarget–  Fine,makesureyoustay(nextchallengeis….?)

•  Arewemovingawayfromtarget?–  Wearemovinginwrongdirec3on!Whatisourinterven3on?

Page 7: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

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7 CopyrightLeanManagementIns3tuut©2016

Whatistheplaninplacetoreachthetargets?•  Reviewtheexis3ngplansandseeiftheymatchwiththe

gapwehavejustseen.•  Ifnot,reviewtheA3´s

ADJUSTDO&CHECKPLAN

SAFETY

QUALITY

DELIVER

YCO

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Yearlygoalsfortheorganization Understandingthegap ImprovementA3s Measuringonamonthlybasis Problemsolving

Movefromredtogreen

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Clarify&BreakDowntheProblem:Participant#1Exactly what is the problem?

PROOF or EVIDENCE of the PROBLEM

When it is Mechanical(involving Things & Places)

When it is People who Don’t know – Can’t do – Don’t do – Won’t do

Behind schedule by Productivity is

Rework increased by Work habits are

Defects increased by Job interest is

Tool breakage increased by General attitude is

Machine down time is Workmanship is

Accident rate increased by Complaints are

Set-up time is Attendance is

Paperwork is increased by Job satisfaction is

EXPLORE the CAUSE

The above problems are caused by….. The above problems are caused by….

Job method Incorrect job assignment

Layout Faulty instruction & follow up

Tools, gauges etc. Insufficient skill & experience

Machines & equipment Poor human relations

Materials Personality situation

Design Basic wants threatened

Housekeeping & working conditions Health & physical fitness

Unsafe conditions Unsafe acts

This problem concerns: QUALITY q QUANTITY q COST q PEOPLE q

CONCLUSION: This problem is: MECHANICAL q or it involves PEOPLE q or BOTH q30

Clarify&BreakDowntheProblem:Participant#1Exactly what is the problem?

PROOF or EVIDENCE of the PROBLEM

When it is Mechanical(involving Things & Places)

When it is People who Don’t know – Can’t do – Don’t do – Won’t do

Behind schedule by Productivity is

Rework increased by Work habits are

Defects increased by Job interest is

Tool breakage increased by General attitude is

Machine down time is Workmanship is

Accident rate increased by Complaints are

Set-up time is Attendance is

Paperwork is increased by Job satisfaction is

EXPLORE the CAUSE

The above problems are caused by….. The above problems are caused by….

Job method Incorrect job assignment

Layout Faulty instruction & follow up

Tools, gauges etc. Insufficient skill & experience

Machines & equipment Poor human relations

Materials Personality situation

Design Basic wants threatened

Housekeeping & working conditions Health & physical fitness

Unsafe conditions Unsafe acts

This problem concerns: QUALITY q QUANTITY q COST q PEOPLE q

CONCLUSION: This problem is: MECHANICAL q or it involves PEOPLE q or BOTH q30

Clarify&BreakDowntheProblem:Participant#1Exactly what is the problem?

PROOF or EVIDENCE of the PROBLEM

When it is Mechanical(involving Things & Places)

When it is People who Don’t know – Can’t do – Don’t do – Won’t do

Behind schedule by Productivity is

Rework increased by Work habits are

Defects increased by Job interest is

Tool breakage increased by General attitude is

Machine down time is Workmanship is

Accident rate increased by Complaints are

Set-up time is Attendance is

Paperwork is increased by Job satisfaction is

EXPLORE the CAUSE

The above problems are caused by….. The above problems are caused by….

Job method Incorrect job assignment

Layout Faulty instruction & follow up

Tools, gauges etc. Insufficient skill & experience

Machines & equipment Poor human relations

Materials Personality situation

Design Basic wants threatened

Housekeeping & working conditions Health & physical fitness

Unsafe conditions Unsafe acts

This problem concerns: QUALITY q QUANTITY q COST q PEOPLE q

CONCLUSION: This problem is: MECHANICAL q or it involves PEOPLE q or BOTH q30

Clarify&BreakDowntheProblem:Participant#1Exactly what is the problem?

PROOF or EVIDENCE of the PROBLEM

When it is Mechanical(involving Things & Places)

When it is People who Don’t know – Can’t do – Don’t do – Won’t do

Behind schedule by Productivity is

Rework increased by Work habits are

Defects increased by Job interest is

Tool breakage increased by General attitude is

Machine down time is Workmanship is

Accident rate increased by Complaints are

Set-up time is Attendance is

Paperwork is increased by Job satisfaction is

EXPLORE the CAUSE

The above problems are caused by….. The above problems are caused by….

Job method Incorrect job assignment

Layout Faulty instruction & follow up

Tools, gauges etc. Insufficient skill & experience

Machines & equipment Poor human relations

Materials Personality situation

Design Basic wants threatened

Housekeeping & working conditions Health & physical fitness

Unsafe conditions Unsafe acts

This problem concerns: QUALITY q QUANTITY q COST q PEOPLE q

CONCLUSION: This problem is: MECHANICAL q or it involves PEOPLE q or BOTH q30

Clarify&BreakDowntheProblem:Participant#1Exactly what is the problem?

PROOF or EVIDENCE of the PROBLEM

When it is Mechanical(involving Things & Places)

When it is People who Don’t know – Can’t do – Don’t do – Won’t do

Behind schedule by Productivity is

Rework increased by Work habits are

Defects increased by Job interest is

Tool breakage increased by General attitude is

Machine down time is Workmanship is

Accident rate increased by Complaints are

Set-up time is Attendance is

Paperwork is increased by Job satisfaction is

EXPLORE the CAUSE

The above problems are caused by….. The above problems are caused by….

Job method Incorrect job assignment

Layout Faulty instruction & follow up

Tools, gauges etc. Insufficient skill & experience

Machines & equipment Poor human relations

Materials Personality situation

Design Basic wants threatened

Housekeeping & working conditions Health & physical fitness

Unsafe conditions Unsafe acts

This problem concerns: QUALITY q QUANTITY q COST q PEOPLE q

CONCLUSION: This problem is: MECHANICAL q or it involves PEOPLE q or BOTH q30

Clarify&BreakDowntheProblem:Participant#1Exactly what is the problem?

PROOF or EVIDENCE of the PROBLEM

When it is Mechanical(involving Things & Places)

When it is People who Don’t know – Can’t do – Don’t do – Won’t do

Behind schedule by Productivity is

Rework increased by Work habits are

Defects increased by Job interest is

Tool breakage increased by General attitude is

Machine down time is Workmanship is

Accident rate increased by Complaints are

Set-up time is Attendance is

Paperwork is increased by Job satisfaction is

EXPLORE the CAUSE

The above problems are caused by….. The above problems are caused by….

Job method Incorrect job assignment

Layout Faulty instruction & follow up

Tools, gauges etc. Insufficient skill & experience

Machines & equipment Poor human relations

Materials Personality situation

Design Basic wants threatened

Housekeeping & working conditions Health & physical fitness

Unsafe conditions Unsafe acts

This problem concerns: QUALITY q QUANTITY q COST q PEOPLE q

CONCLUSION: This problem is: MECHANICAL q or it involves PEOPLE q or BOTH q30

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Wehavetomakemoreprofit.Howdoweunderstandwhatthecausesareofcostswehave?.

TheimportanceoftheA3

Page 8: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

16-11-16

8 CopyrightLeanManagementIns3tuut©2016

I.Background•  Whataretherealreasonsforourorganiza3ontochange(whathappensifwedecidenottochange)?

•  Lookingatwhichconcretechangesthatappearinourorganiza3oninthecomingyear,canweseethatweareeffec3ve(thinkofyearendreport,changedwayofthinkingandworking,structuresandini3a3ves)

A3Title

II.Currentsitua3on• Wherearewetoday?•  Getinforma3onoutofourdailyprocesses.Whatisreallyhappeninginourprocessesandhowdothepeopleintheprocessesexperiencethis?Doesmanagementhastheperspec3veasthepeopleintheprocesses?

III.Measurablegoals• Whichmeasurablegoalsdowehavetoseeifwearesuccessful?•  Howandwheredowecollectdatatoseeifwearesuccessfulandevaluate?

IV.RootcauseAnalysis• Whatistherootcauseoftheproblem?•  Keepongoingbacktothecurrentsitua3on(andgatheringnewnecessaryinforma3on)un3lyouhaveestablishedtherootcause.

•  Dis3nguishsymptomsfromproblems•  Ogenproblemshavemul3plecauses.Thinkofexperimentsthatyoucanperformtoestablishcauseandeffect.

VI.Plan• Whichini3a3vesshouldwedeployinordertoclosetheperformancegaps?• Whocouldberesponsibleforwhichini3a3vesandworkwiththeproposedcountermeasures?

VII.Followup• Whichissuescanwean3cipatethewillblocksuccessandhowcanwedetecttheminanearlystage?

•  Ensurecon3nuousPDCA•  Capturelearning'sandsharethem!• Whichothervaluestreamscouldbenefitfromtheselearning's?• Whatdoweneedtodoinordertoembedthisimprovementsinthewayweperformourdailybusiness?

V.Proposedcountermeasures• Whatisourproposaltoaddresstheissuesandreachthefuture(target)situa3on)?•  Inwhichvaluestreamsdoweneedtoachieveconcreteimprovements?•  Howdowecreatethenecessarycapabili3esinordertorealizetheimprovementsinthesevaluestreams?

Expresstheprobleminoneline

18

LeanLeadership

TheKeyValueStreams

Opera'onalManagement

LeanCulture

• Wherearethecurrentperformancegaps(causedgaps)?

• Wheredoweneedtoimproveinrela3ontothecurrentperformance(createdgaps)?

Issues Countermeasures Expectedimpact

LeanLeadership

TheKeyValueStreams

Opera'onalManagement

LeanCulture

• Whatisourstandardizedworktomentor?

•  Howcanweseeifwearesuccessful?

RolesintheA3Process:

OnstrategicA3’sCoachCoachee

OnVSMA3’sCoachCoachee

OnstrategicA3’sCoachCoachee

Remark,thisisanexampleandnota“100%rule”.Forinstance,problemsolvingisdoneoneverylevelandtheCEOcanbecoachedbypeoplefromotherlayersoftheorganiza3on

Page 9: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

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9 CopyrightLeanManagementIns3tuut©2016

TheDo&Checkphase(doourcountermeasureswork?)•  Breakyearlytargetsdowninmonthlysteps

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Output Target

Thisisthestartoftheaccountabilityprocess•  Controlthehour = Controltheshig•  Controltheshig = Controltheday•  Controltheday = Controltheweek•  Controltheweek = Controlthemonth•  Controlthemonth = Controltheyear•  Controltheyear = Reachyourtargets!

Page 10: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

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10 CopyrightLeanManagementIns3tuut©2016

Howarewedoing?

•  Seeifweareonamonthlybasisworkingtowardstheyearlytarget

•  Dothecheck,fillinbyhandandputinthegreenareaorintheredarea.

Green&Red•  Greenmeansrecogni3on&reward•  Redmeansproblemsolving:

–  Whyareweinred–  Whatisthecausethatweareinred–  Whatisourcountermeasuretogobacktogreen

•  Focusonsolvingtwoissuesperweek

Page 11: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

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11 CopyrightLeanManagementIns3tuut©2016

Nowwehaveanobeyaboardfortheorganiza3onNextstepistocreateaboardperdepartment,processetc.Goalsarebreakingdownfromyearlytomonthly,frommonthlytoweekly,fromweeklytodaily.

Boardmee3ngandKatacoaching

•  Dailyrhythmpreferred•  Alwayswith2organiza3onallevelstogether•  Movingformredtogreenonlyonceamonth•  Katacoaching The Five Questions

1. What is the Target Condition?2. What is the Actual Condition now?

Turn card over 3. What Obstacles do you think are preventing you

from reaching the target condition? Which *one* are your addressing now?

4. What is your next step? (next PDCA/ experiment) What do you expect?

5. When can we go and see what we have learned from taking that step?

*You’ll often work on the same obstacle for several PDCA cycles

COAC

HIN

G K

ATA Reflect on the Last Step Taken

Because you don’t actually know what the resultof a step will be!

1. What was your Last Step?2. What did you Expect?3. What Actually Happened?4. What did you Learn?

Return

COAC

HIN

G K

ATA

COAC

HING

KAT

A

Page 12: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

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12 CopyrightLeanManagementIns3tuut©2016

TheFiveQues3ons

The Five Questions 1. What is the Target Condition?2. What is the Actual Condition now?

Turn card over 3. What Obstacles do you think are preventing you

from reaching the target condition? Which *one* are your addressing now?

4. What is your next step? (next PDCA/ experiment) What do you expect?

5. When can we go and see what we have learned from taking that step?

*You’ll often work on the same obstacle for several PDCA cycles

COAC

HIN

G K

ATA Reflect on the Last Step Taken

Because you don’t actually know what the resultof a step will be!

1. What was your Last Step?2. What did you Expect?3. What Actually Happened?4. What did you Learn?

Return

COAC

HIN

G K

ATA

COAC

HING

KAT

A

The Five Questions 1. What is the Target Condition? 2. What is the Actual Condition now? Turn card over 3. What Obstacles do you think are preventing you from reaching the target condition? Which *one* are your addressing now? 4. What is your next step? (next PDCA/ experiment) What do you expect? 5. When can we go and see what we have learned from taking that step? *You’ll often work on the same obstacle for several PDCA cycles

COAC

HIN

G K

ATA Reflect on the Last Step Taken

Because you don’t actually know what the result of a step will be! 1. What was your Last Step? 2. What did you Expect? 3. What Actually Happened? 4. What did you Learn? Return

COAC

HIN

G K

ATA

SeniorManagement

Management

Team-&Lineleaders

Process

Alwaystwoorganiza3onallevelsinvolved

Strategy Deployment

Kaizen / daily PS

VSM / A3

WhoistheKatacoach?

Page 13: LEAN GLOBAL Practical NETWORK Strategy … Culture •What is our standardized work to mentor? • How can we see if we are successful? Roles in the A3 Process: On strategic A3’s

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13 CopyrightLeanManagementIns3tuut©2016

Prac3calstrategydeployment:hqp://planet-lean.com/how-to-deploy-hoshin-kanri-successfullyExampleofPrac3calStrategyDeploymentattheDutchMinistryofInfrastructure:hqp://planet-lean.com/two-years-of-hoshin-at-the-dutch-ministry-of-infrastructureTeam&Leadershipdevelopment,impera3veforPrac3calStrategyDeployment:hqp://planet-lean.com/the-step-by-step-lean-development-of-teams-and-leaders

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Somear3clesonPrac3calstrategydeploymentandLeadership/teamdevelopment

Doyouwanttoknowmore,contactusorvisitthePlanet-leanwebsitetolearnmoreaboutthesubject.WiebeNijdamEmail:[email protected]:+31626458256

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Strategydeploymentispartofourleadershipprogram