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Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 1
Getting the Right Things Done –A Leader’s Guide to Strategy Deployment
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 1
Pascal DennisLean Pathways Inc.
Lean Accounting 2010 –Las Vegas, Nevada
What is Hoshin Kanri?
ho shin kan ri
ho = direction kan = control, channeling
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 2
Hoshin Management = Strategy Deployment
World‘s most powerful planning & execution system..
“management”“policy, direction”
shin = needle
g
ri = reason, logic
Why Should You Care?
Nowadays we have little room for error
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 3
Can we risk the “random walk” approach?
SD addresses the ills of conventional planning The Rise & Fall of Strategic Planning
Henry Mintzberg, 1994
Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 2
The Grand Fallacy
Conventional planning is all analysis (Left brain) But analysis alone is not strategy
Think Like a Grandmaster, by Alexander Kotov
Strategy is synthesis: Analysis + Intuition
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 4
Strategy is synthesis: Analysis Intuition Intuition
What is the mood in the plant?
Look on the customer’s face
Supplier’s tone of voice
We need to be able to tell persuasive stories
Our Collective Hangover
The “planning school” has been largely discredited (Mintzberg et al).
But we’re living with the hangover: Over-managed, overly complex systems,
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 5
Default to budgeting, plus
Dysfunctional mental models
Conventional Mental ModelsConventional Mental Models Lean Mental ModelsLean Mental Models
2. Leaders are too important to go to the floor.
1. Leader = Boss1. Leader = Sensei
2. Go See for yourself!
Pat
hway
s In
c
6www.leanpathwaysinc.org Copyright © 2009 Lean Pathways Inc. All Rights Reserved
4. Make the numbers-or else!
5. Problems are garbage-hide them!
6. Experts solve problems in complex ways.
3. We have some standards around here somewhere.
3. We have simple visual standards for all important things.
4. Don’t Ship Junk!
5. Problems are gold -treasure them!
6. Everyone solves problems using simple methods.
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010
Lean
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org
Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 3
Mental Models1. Leadership
ConventionalConventional LeanLean
Pat
hway
s In
c
7
Leader = BossLeader = Sensei
www.leanpathwaysinc.org Copyright © 2009 Lean Pathways Inc. All Rights Reserved
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Lean
P
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org
Mental Models2. Leadership – Go See
ConventionalConventional LeanLean
Pat
hway
s In
c
8
Leaders are too important to go to the
floor.Go see for yourself!
www.leanpathwaysinc.org Copyright © 2009 Lean Pathways Inc. All Rights Reserved
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Lean
P
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org
Mental Models3. Standards
ConventionalConventional LeanLean
Pat
hway
s In
c
9
We have some standards here somewhere… We have simple, visual standards
for all important things.
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Lean
P
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org
Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 4
Mental Models4. Quality at the Source
ConventionalConventional LeanLean
Pat
hway
s In
c
10
Make the numbers –or else! Don’t ship junk!
www.leanpathwaysinc.org Copyright © 2009 Lean Pathways Inc. All Rights Reserved
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9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org
Mental Models5. Making Problems Visible
ConventionalConventional LeanLean
Pat
hway
s In
c
11
Problems are garbage – hide them! Problems are gold –
treasure them!
www.leanpathwaysinc.org Copyright © 2009 Lean Pathways Inc. All Rights Reserved
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9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org
Mental Model6. Problem Solving
ConventionalConventional LeanLean
Pat
hway
s In
c
12
Experts solve problems in complex ways Everyone solves problems using
simple methods
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9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org
Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 5
Group Activity: Teach back
Prepare a presentation for the class on Mental Models
Bring the lesson to life Use as few written words as possible
Draw a picture. Do a skit
Have fun!
Mental Models
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 13
Have fun!
Time: 15 minutes
Teach the lesson back to the class
Models
Grasping the Situation
PLANADJUST
Grasp
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 14
DOCHECK
pthe
Situation
Implication for Leaders
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 15
P
DC
AGtS
Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 6
We Begin by Defining…
Copyright 2010 Lean Pathways Inc. www.leansystems.org
16Source: The Remedy – Bringing Lean Out of the Factory to Transform the Entire Organization (Wiley & Sons 2010)
Copyright 2010 Lean Pathways Inc
9/10/2010
Plan – Telling Interesting Stories
A3’s are “currency” of SD One-page storyboard on 11” x 17” paper
We call it A3 thinking
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 17
The piece of paper is not the point…
The point is… story-telling approach to strategy
Lou Gerstner: Let’s talk about our business…
0
10
20
30
40
50
60
Gap = problem
Target
1 2
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 18
Action Plan
4 3
Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 7
Focus: Delivery Achieving Excellence in Delivery Site/Dept. MP & L, Homestead
Last Year's Results/This Year's Targets/Mid-term Targets This Year's Action PlanSchedule
J F M A M J J A S O N D
A. Strengthen Maintenance 1. Design and pilot work order boardPlanning Process
2. Confirm process & launchTargets
Work Order board 3. Track % Projects Complete (PPC)in place by March 30
4. Weekly meetiing with Operations toreflect on last week's PPC & plan next week
B. Reduce Mtce Attrition & 1. Pilot "Grow with Us" incentive programThis Year's BTS Target = 90% Availability Targets = 80 % in both Paint and B & E Improve Versatility
2. Set up versatility boards & schedule each shopInventory Target = 40 days 3-Year Target = 90% (Best in Class = 95%) Targets
Mtce Attrition < 5% 3. Implement "Mentor" programFull back up on critical
Reflection on Last Year's Activities skills (each shift) Jun 30
Activity Rating Key Results/IssuesC. Implement Advanced 1. Identify vendors & make purchase
Implemented BTS metric G Problems now visible; Biggest constraints: Analytical Toolsmachine availability in Paint and B & E 2. Build in-house expertise
TargetsImplemented availability tracking G Hot spots now visible: Paint: drying ovens, Vibration & Spectrograph 3. "Full court press" on constraints in each area
spray booths; B & E: Berger Benders analysis by Jun 30
Goals Activities
0%
20%
40%
60%
80%
100%
Jan
Feb
Mar
Apr
May Jun
Jul
Aug
Sep Oct
Nov
Dec
0
20
40
60
80
100
Build to Schedule Inventory (days) R
BTS Target = 90%
Inventory Tgt < 40 days
0%
20%
40%
60%
80%
100%
Jan
Feb
Ma r
Ap r
May
Jun J u
l
Aug
Sep
Oct
No v
De c
Machine Availability - Paint Machine Availability - B & E
R
Target = 80%Critical business need
Reflection (hansei) on last year’s
Our plan to implement hypothesis
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 19
Maintenance cross-training R Tried to limit effect of maitenance turnoverLittle time for training; "too much firefighting" D. Improve Paint and B & E 1. Develop manual back-up plans for top 3 per shop
Machine CapabilityMaintenance prbblem solving (6 Sigma) Y Training too complex; "not usuable" 2. Train production team members in back-up
Targets3. Quick changeover training & implementation
50% reduction in C/O timeManual back-up for top 4. Focus problem solving on machine availability
Analysis/Justification to This Year's Activities 3 constraints per shop
5. Transfer basic mtce tasks to OperationsLast year we made our Delivery problems visible - but couldn't solve them.
Continuous firefighting hampers maintenance cross-training & system building Follow-up/Unresolved Issues
Biggest losses: changeover & breakdowns 1. How to reduce turnover in maintenance? Countermeasure: Incentives (e.g. Grow With Us, Mentor pgm)?
Next year we need to 2. Tension between Operations and Maintenance "prima donnas" hampers problem solving. How to diffuse?
1) Strengthen maintenance planning process by implementing Work Order scheduling board 3. Manual back-up and quick changeover requires good grasp of standardized work. Enhance training2) Buffer machine losses with manual back-up, where possible3) Improve maintenance versatility & reduce attrition 4. Making work order status visible is a major cultural shift. How to prepare the soil?4) Implement advanced tools (e.g. vibration analysis) to help us get to root cause in Paint & B&E5) Reduce changeover times in Paint and B & E
Signatures Author: MP & LManager
Version & date: V5
on last year s activities
Our grasp of the situation & hypothesis
What might go wrong & how we’ll
handle it
Do – Deploying the Plan
We can’t tell people what to do Soviet model
We need to translate our plans level by level And engage people thereby
Mental models: What do you think? vs. Thou shalt
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 20
Keep it simple Result: a Tree diagram
“Catchball”
Refers to the horizontal & vertical give & take required to Align activities
Translate & thereby engage
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 21
A “scrubbing” process which helps us understand what’s real
Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 8
TRUE NORTH
Key Thinker Policy
General Manager Master A3
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Dept. Manager Baby A3
Dept. Action Plans
Hunger in Ontario
Key Thinker Policy
Hunger in Toronto
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Hunger among Toronto school children
Hot lunches for kids in local schools
Deployment Leader Concept
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 24
•Breakthrough goals are invariably cross-functional
•Unit efficiency does not equal overall efficiency
Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 9
Deployment Leader Concept
Deployment leaders focus & align activity
“Key thinker” or “chief scientist”: Grasps big picture & makes diagnosis
Writes A3 & gains consensus for proposed remedies
Makes problems visible & supports problem solving
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 25
Makes problems visible & supports problem solving
Key Thinker Qualities
Passionate
Profound knowledge of “zone” Respected
Impatient with the status quo
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 26
p q Nothing is “given”
Tough, ornery yet able to forge Consensus through disagreement
Check – Making Problems Visible
Check entails Simple, connected meetings & go see activity so that the
problems become visible to all
Exception managementWh t th h t t ?
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 27
What are the hot spots?
What are you doing about them?
Mental model: Problems are gold – treasure them!
Image: a series of gears
Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 10
Checking: a System of Gears
Site Check/Adjust
“Layered” Checking –
Leader STW
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 28
Check/Adjust Meeting
Department Check/Adjust
Section/Team Check/Adjust
Adjust – Solving Problems
Adjust phase requires simple, shared problem solving approach Six sigma and other advanced approaches are needed for ~10%
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 29
of problems
To make problems visible we need Clear, visual standards
Direct, binary connections
Simple, pre-specified flow paths
Very few big problems
Few medium i bl
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 30
size problems
Many small problems
Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 11
Very few big problems
Few medium i bl
Strategic planning initiative
Strategic planning initiative
Kaizen event
Strategic planning initiative
Kaizen event
Action plan
Kaizen event
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 31
size problems
Many small problems
Daily individual problem solving
Action plan Kaizen
event
plan
Source: The Toyota Way by Like & Meier
Four-Step Problem Solving
9/10/2010 32Copyright 2010 Lean Pathways Inc. www.leansystems.org
Strategy Deployment Process
1. Develop the plan• Where are we going? (What’s True North?)• How do we get there?• A3 strategies
2. Deploy the planC t hb ll
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• Catchball• Deployment leader (“Key thinker”) concept
3. Monitor the plan• Check/Adjust process• Management standardized work concept
4. Improve the system• Reflection & learning points• “Book of knowledge” or database concept
Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 12
Obstacles to Getting Right Things Done
Obstacle Root Cause(s)Possible
Countermeasures
Weak hypotheses Key thinkers?
Go see?
Develop key thinkers
Leader STW
Too many activities Catchball?
Grasping situation?
Catchball standards
Develop key thinkers
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 34
Grasping situation?
Key thinkers?
Develop key thinkers
Recall Kasparov
We can’t sustain gains – org’n muscles weak
Have we built capability of team?
People development plan
Team not engaged Mental models?
Leadership?
Leader STW
Metrics – too many, too complex
Grasping situation?
Accounting?
Develop key thinkers
Visual mgmt
Role of Finance Leaders
CFO & other Finance leaders often serve as Key Thinker for Cost
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Finance leaders Understand the importance of the “story” behind the numbers
Grasp the annual PDCA cycle (which mirrors financial cycle)
Play critical role with respect to metrics & incentive structures Invisible governance obstacles
What are you going to do tomorrow?
Identify at least three things you will do to implement what you’ve learned
…..
9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 36
…..
…..
…..
…..
Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010
Copyright 2010 Lean Pathways Inc. www.leansystems.org 13
Recommended Reading
Copyright 2010 Lean Pathways Inc. www.leansystems.org 37
www.lean.org
9/10/2010
Other Resources
Pocket Cards
Lean Thinking
Webinars
Lean Simplified Demystifying
Copyright 2010 Lean Pathways Inc. www.leansystems.org 389/10/2010
Lean Simplified – Demystifying the World’s Most Powerful Business System
www.leanpathwaysinc.com