Transformational Lean Leadership
John ShookLean Enterprise Institute
Lean Global NetworkSeptember 2014
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Lean India Summit 2014
Understanding Lean Transformation
Aligning:
•Purpose•Process•People
to create value
What leadership
behavior and management system do we need?
WHAT is our
PURPOSE?
What situational problemdo we need to address?
How to improve the work?
How to develop
the people?
What is our BASIC THINKING??What is our BASIC THINKING??
What leadership
behavior and management
system do we need?
What leadership
behavior and management
system do we need?
What is the role of leaders in a lean transformation?
• I frequently hear…
• “I can’t get my people to do this. How can I get people to do this…?”
• How to reply…?
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Change – the leader’s role…
•“How can you get others to “do this”…?
Only one way…
Lean Leadership
•…is obviously different from the old command and control dictator.
•It is equally different from the commonly accepted notion of the “enlightened modern manager”.
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But, What IS “Leadership” Anyway??
And where does it fit in with organizational and personal CHANGE or “transformation”?
What IS “Leadership” anyway??
•“The greatest leaders of the 20th century were Hitler, Stalin and Mao: If that is “leadership”, I want nothing to do with it.”
•- Peter Drucker
Lean Leadership•Practice of Leadership
•vs•Exercise of Power
“I could put a loaded gun to your head…”True leadership exists when people follow
when they don’t have to…”•- James MacGregor Burns
Lean is Personal and Organizational
New United Motor Manufacturing, Inc. – NUMMI – built its first car in December 1984 and its last in April 2010.
A Transformation Story: Toyota and General Motors
The Worst Factory in the World…
Certified
Worst!
From the Worst to the Best…
Certified!
Graphics slide. Place graphic within the white box.
NUMMI and the Role of Leadership
• “Establish mutual trust”• “No problem is problem”• “Lead as if you have no power”• “Before you build cars, build people”
Four lessons in leadership from NUMMI:
No Problem is a Problem
GEMBA
Data Analysis Room
WORK FLOW
DEFECT!!
DATA
TOOLS
Solving Problems at the Gemba HERE! NOT HERE
Kan Higashi to Gary Convis…(NUMMI’s senior Japanese and American leaders)
“ Lead the organization as if you have no power."
Lean LeadershipPractice of Leadership
vsExercise of Power
“I could put a loaded gun to your head…True leadership exists when people follow when they
don’t have to…”- James MacGregor Burns
“Lead as if you have no power.”- Kan Higashi to Gary Convis
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Matt Long of the Herman Miller company:
“We aren’t just solving problems…
We are developing problem solvers.”
The Key Factor of Key Factors: Developing People
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Get the job done and develop your people…and accomplish those at the same time
The Twin Responsibilities of a Lean Leader
How…?
Lean ManagementResponsibility vs Authority
• In my five years in Toyota City, almost never was I given solutions.
• Yet, I was not free to just do what I wanted.
• I was given clear responsibility to propose solutions to problems I owned.
Ownership of PerformanceResponsibility vs Authority
In a traditional hierarchical organization:
•Position establishes (or seems to) authority to make decisions.
•-> In cross-functional organizations, this causes confusion, frustration, and breakdown of the decision-making process.
In a Lean Organization:
•Position establishes responsibility to get decisions made.
Making Decisions andCreating Alignment
RESPONSIBILITY-BASED
Focus:
Decide the right thing
AUTHORITY-BASED
Focus:
The right to decide
Lean Management Control with Flexibility
•This way of managing provides extraordinary focus, direction, “control.”
•While at the same time providing maximum flexibility.
•This way of working can resolve the age-old dilemma that encumbers all large organizations: control vs. flexibility.
Change – the leader’s role…
•“How can you get others to “do this”…?
Only one way…
The challenge is not “getting other people to do this”…
The challenge is getting YOU (and me) to do this!
The Lean Leader’s Challenge
•Make objectives, outcomes, assignments clear enough that the subordinate can approach the task with confidence.
•Yet, open enough that responsibility is not taken away.
•So the individual doing the work has clear responsibility to propose solutions with a sense of entrepreneurial ownership.
Clear direction with clear ownership
The Lean Leadership Challenge
• Enable each person to take responsibility to solve problems and improve his or her work
• Align each persons’ work to provide value for the customer and prosperity for the organization
Get the work done and Develop Capability- at the SAME TIME!
Begin with Yourself!!
Chairman Fujio Cho of Toyota: Three Keys to Lean Leadership
Go See.• “Sr. Mgmt. must spend time on
the front lines.”
Ask Why.• “Use the “Why?” technique
daily.”
Show Respect.• “Especially the people doing the
value-creating work.”
"Lean management is less about providing the right answers than asking the right questions and trying things or encouraging
others to try things.
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The A3 as a Job Aid for Managers as CoachesThe A3 as a Job Aid for Managers as Coaches
Basic Thinking – Lean Thinking
• Principle of “Just Enough”
• Practice of Questioning and Experimenting– Structured Questions and Experiments
The A3 as a Job Aid to Ask Good QuestionsThe A3 as a Job Aid to Ask Good Questions
Get the job done and develop your people…and accomplish those at the same time
The Twin Responsibilities of a Lean Leader
How…?
Results and Process
• Manage by Results (MBO/MBA)
• Manage by Means (Process)- H. Thomas Johnson
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“Data is of course important,
but I place greater emphasis on facts.”
-Taiichi Ohno
“Go See”
Measures/KPI
• “There is no true value of any measurement” (Deming)
• The map is not the territory (SI Hayakawa)• What gets measured gets…
Measures/KPI
• “There is no true value of any measurement” (Deming)
• The map is not the territory (SI Hayakawa)• What gets measured gets…
…GAMED!
Assessment and Feedback
Carol Dweck gave different feedback to two groups of test takers. Group A: “You must be really smart at this!”
Group B: “You must have worked really hard!”
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Praise Results or Praise Effort?
“You must be really smart at this!”
Performance worsened!
“You must have worked really hard!”Performance steadily improved!
A 30% gap emergedjohn shook
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Results and ProcessP
RO
CE
SS
RESULTS
PR
OC
ES
S
RESULTS
Results and Process
PR
OC
ES
S
RESULTS
Results and Process
PR
OC
ES
S
RESULTS
Results and Process
KPI and KSF• Key Performance Indicator• Key (Critical) Success Factor
– The objective is what needs to happen– The KSF is determined by asking, “what needs to
happen for that to happen?”
• Leaders establish alignment around the vision and key objectives
• Then break those down into the processes that can deliver on the KSFs.
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KPI and KSF• Then, break those down into the processes that
can deliver on the KSFs…
• “Process” = The “work to be done”. What needs to be done and HOW to do it.
• Become obsessive about that. That’s the fun in all this.
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CURRENT CONDITION
GtS
Gap/
Problem/
OpportunityTools
LEARN TO SEE NEXT TARGETED CONDITION
TARGETED CONDITION
Tools
Tools
GtS
GtS
Leading Through Capability Development Through Collaborative Problem Solving
No Problem is a Problem!
Off We Go• The good news is that you can do this. • The other good news is that it is going to be
really hard work.• The troublesome news is that there is no
“roadmap”. (And beware of consultants who want to sell you one!)
• But – more good news – you are not floating adrift! You have the Lean Transformation Model as your compass, your GPS, to help guide you.
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