Lean leaders and those who manage change realize well that change is the only constant. In times of recession like today or times of great performance organizations can still learn a great deal from W. Edwards Deming.
Deming tells us, "Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business and to provide jobs."
Have you ever wondered what is inside the heads of lean "change masters"? Well Adam Zak, a lean executive talent recruiter, outlines six strategies that lean leaders should use to create a constancy of purpose and a constancy of change.
1. Embrace change, It’s inevitable. Be first, demonstrate personal commitment to serve.
2. Assume nothing and question everything. Challenge status quo, take action, and drive for results.
3. Get down in the trenches. Go to the Gemba, use teamwork, and learn see the whole situation.
4. Show integrity, always. Do the right things and be courageous in the face of challenge
5. Be transparent. Communicate well and get involved.
6. Inspire and recognize leadership in others. Great leaders know their primary role is to develop and motivate people.
Successful organizations require customer-centric purpose and continuous improvement around safety, quality, and innovation. And the catalysts for this are great leaders who understand the mechanism of change well.
Thursday, August 13, 2009
Wednesday, August 12, 2009
Another Example of Employee Engagement
Lean practitioners are looking for new ways to engage employees to freely challenge status quo in a systematic manner to build highly flexible and innovative organizations. A recent article in the Wall Street Journal highlights the story of how The Bank of New Zealand unshackled employees after 148 years.
In most languages, “control” is the first synonym for the word “manage.” Control is about spotting and correcting deviations from pre-defined standards; thus to control one must first constrain. Standards, policies and rules are important—no organization can exist or survive without them.
The problem is that traditionally management’s role is to regulate power. They are often incentivized to increase control to maintain job security. In lean organization we strive to manage at the level closet to the product as possible. The challenge is to provide the information, knowledge, and structure to support this level of decision making and empowerment.
So what started out as a simple conservation between a frustrated employee and a manager planted a seed for change. The manager turned the frustrated rant from an employee around by asking the employee “What they would do different?” That little question established employee empowerment. Once others in the company heard of the successful efforts in this bank the flood gates opened. There were many others who wanted to make improvements but created new challenges for the corporation.
While store managers were moving quickly to exploit their newfound freedom, there were many at head office who were fretting about the loss of control. While many of the objections were more political than practical, some were well-grounded and soon led to policy adjustments. What everyone learned,” says Blair, “is that when you treat people like adults, they act like adults.”
There are two important components to The Bank of New Zealand success. The first is creating team-based incentives linked to performance and customer satisfaction metrics. The second component is availability and access to data which gives a clear picture of their financial performance.
At BNZ, store employees have the incentives, the data, and the freedom that are typical of a small business owner. As a result, most regard themselves as more than mere clock-punchers; they’re folks who have a real stake in a real business—and they run it as if it was their own.
Are employees in your organization empowered to make decisions as if the company was their own? If not consider the incentives and data you use to evoke participation and improvement. Learn to encourage employees who bring opportunities for improvement to your attention to also bring a countermeasure. Then follow-up to ensure the countermeasure is implemented and effective.
In most languages, “control” is the first synonym for the word “manage.” Control is about spotting and correcting deviations from pre-defined standards; thus to control one must first constrain. Standards, policies and rules are important—no organization can exist or survive without them.
The problem is that traditionally management’s role is to regulate power. They are often incentivized to increase control to maintain job security. In lean organization we strive to manage at the level closet to the product as possible. The challenge is to provide the information, knowledge, and structure to support this level of decision making and empowerment.
So what started out as a simple conservation between a frustrated employee and a manager planted a seed for change. The manager turned the frustrated rant from an employee around by asking the employee “What they would do different?” That little question established employee empowerment. Once others in the company heard of the successful efforts in this bank the flood gates opened. There were many others who wanted to make improvements but created new challenges for the corporation.
While store managers were moving quickly to exploit their newfound freedom, there were many at head office who were fretting about the loss of control. While many of the objections were more political than practical, some were well-grounded and soon led to policy adjustments. What everyone learned,” says Blair, “is that when you treat people like adults, they act like adults.”
There are two important components to The Bank of New Zealand success. The first is creating team-based incentives linked to performance and customer satisfaction metrics. The second component is availability and access to data which gives a clear picture of their financial performance.
At BNZ, store employees have the incentives, the data, and the freedom that are typical of a small business owner. As a result, most regard themselves as more than mere clock-punchers; they’re folks who have a real stake in a real business—and they run it as if it was their own.
Are employees in your organization empowered to make decisions as if the company was their own? If not consider the incentives and data you use to evoke participation and improvement. Learn to encourage employees who bring opportunities for improvement to your attention to also bring a countermeasure. Then follow-up to ensure the countermeasure is implemented and effective.
Monday, August 10, 2009
Lean Learning at Starbucks
There has been a lot of conversation in the Lean community in recent years about Starbucks’ Lean undertaking. This past week the Wall Street Journal had an article on Latest Starbucks Buzzword: 'Lean' Japanese Techniques.
In my experience it can often be more challenging to transform service segments to Lean thinking. Many times individuals in these areas can’t see they are performing steps within a process. The questioning of those steps as we work to eliminate waste and improve the way things are done can cause a feeling of personal criticism. I often say people are happy to be busy but the truth is “activity does not equal productivity”. This article and the subsequent online discussion in the lean community present a good learning experience and case study in lean transformations in retail and service type businesses.
Jon Miller talks about the lean buzz at Starbucks discussing their improvements in the process of making coffee while questioning the real intentions of this effort.
Mark Graban takes time for Defense of Lean and of Lean at Starbucks. He writes about the real of meaning of many of the Lean terms and techniques mentioned by the WSJ. Mark also sheds some light on comments online where some fear these Lean efforts go too far in automation saying Lean does not turn people into robots.
As with other articles from the WSJ on Lean they often don’t portray the real efforts well. Maybe it is from a lack of truly understanding Lean thinking. John Shook from the LEI has been working with Starbucks on their Lean transformation for some time. John writes in his management column about A Lean " Teachable Moment": Starbucks in the Wall Street Journal. He describes the truth behind Starbucks Lean initiative as unique transformation that other retailers and service companies may want to model.
As I would expect, many in the Lean community are optimistic about Starbucks’ improvements and willingness to try a new way of thinking while using this opportunity to learn and reflect on their own journey. You should consider the same.
In my experience it can often be more challenging to transform service segments to Lean thinking. Many times individuals in these areas can’t see they are performing steps within a process. The questioning of those steps as we work to eliminate waste and improve the way things are done can cause a feeling of personal criticism. I often say people are happy to be busy but the truth is “activity does not equal productivity”. This article and the subsequent online discussion in the lean community present a good learning experience and case study in lean transformations in retail and service type businesses.
Jon Miller talks about the lean buzz at Starbucks discussing their improvements in the process of making coffee while questioning the real intentions of this effort.
Mark Graban takes time for Defense of Lean and of Lean at Starbucks. He writes about the real of meaning of many of the Lean terms and techniques mentioned by the WSJ. Mark also sheds some light on comments online where some fear these Lean efforts go too far in automation saying Lean does not turn people into robots.
As with other articles from the WSJ on Lean they often don’t portray the real efforts well. Maybe it is from a lack of truly understanding Lean thinking. John Shook from the LEI has been working with Starbucks on their Lean transformation for some time. John writes in his management column about A Lean " Teachable Moment": Starbucks in the Wall Street Journal. He describes the truth behind Starbucks Lean initiative as unique transformation that other retailers and service companies may want to model.
As I would expect, many in the Lean community are optimistic about Starbucks’ improvements and willingness to try a new way of thinking while using this opportunity to learn and reflect on their own journey. You should consider the same.
Sunday, August 9, 2009
Total Employee Involvement
Lean is not a system of individuals but rather a mindset of engaging all our human resources on customer focused activities. Management is the key to achieving total employee involvement. The Campbell Soup Company is a great example of how engaging your employees can change the orgnaization culture resulting in extraordinary financial performance.
In a recent interview of Campbell's CEO, Douglas Conant he shared his thoughts and strategies on employee engagement.
The strategy isn't complicated. "To win in the marketplace," he has said, "we believe you must first win in the workplace. I'm obsessed with keeping employee engagement front and center and keeping up energy around it."
Conant explained the second pillar of TPS, “Respect for People” well with the Campbell Promise, "Campbell valuing people, people valuing Campbell." He applied the Broken Window Theory by removing the barb wire fence surrounding the facility. They made employee engagement everyone’s first priority and they reward high performers.
Gallup, the polling and research firm, studied the engagement levels of Campbell’s managers in 2002 and found that not only did 62% of them consider themselves not actively engaged in their jobs, a full 12% felt they were actively disengaged. Those numbers, Conant says, were the worst for any Fortune 500 firm ever polled. Today, the story is far different: 68% of all Campbell employees say they are actively engaged, and just 3% say they are actively disengaged. That's an engagement ratio of 23-to-1, and Gallup considers 12 to one to be world-class.
This is an inspiring example of total employee involvement. What is the engagement level of your organization? How do you engage employees?
In a recent interview of Campbell's CEO, Douglas Conant he shared his thoughts and strategies on employee engagement.
The strategy isn't complicated. "To win in the marketplace," he has said, "we believe you must first win in the workplace. I'm obsessed with keeping employee engagement front and center and keeping up energy around it."
Conant explained the second pillar of TPS, “Respect for People” well with the Campbell Promise, "Campbell valuing people, people valuing Campbell." He applied the Broken Window Theory by removing the barb wire fence surrounding the facility. They made employee engagement everyone’s first priority and they reward high performers.
Gallup, the polling and research firm, studied the engagement levels of Campbell’s managers in 2002 and found that not only did 62% of them consider themselves not actively engaged in their jobs, a full 12% felt they were actively disengaged. Those numbers, Conant says, were the worst for any Fortune 500 firm ever polled. Today, the story is far different: 68% of all Campbell employees say they are actively engaged, and just 3% say they are actively disengaged. That's an engagement ratio of 23-to-1, and Gallup considers 12 to one to be world-class.
This is an inspiring example of total employee involvement. What is the engagement level of your organization? How do you engage employees?
Thursday, August 6, 2009
The Broken Windows Theory and 5S
While performing a 5S audit last week I was reminded of the importance of being mindful of the 'broken windows' theory.
The ‘broken windows’ theory was first enunciated in 1982 by James Wilson and George Kelling in the Atlantic Monthly. The theory suggests that if a window is broken and left unrepaired, people walking by will conclude that no one is in charge and soon more windows will be broken, which could result in the anarchy spreading from the building to the street. The authors propound that a successful strategy to prevent vandalism is to start when the problem is small.
If disorder goes unchecked then a vicious cycle begins. Our offices, production environments, and business processes are all susceptible to this theory. We need to attack disorganized areas and wasteful processes right away, don’t wait for the future. It is easier to sustain 5S (and lean for that matter) if you address the issue when it small and manageable.
I am sure many of you have examples where one piece of “litter” has escalated to a mess. It might be some unfiled papers on a desk that lead to piles of disorganization. Or maybe it is a messy draw or cabinet that causes the rest of the area to be complacent with returning items where they belong. Or perhaps it is a leaky part on machinery that causes a messy workplace.
Attention to the “broken windows” in our work environments will send a message to employees about the quality of their work which will prevent the defects, delays, waste and rework that can devour an organization’s profit margins.
Moral: “We cannot afford to overlook the small wastes in our workplaces and processes.”
It could be said that 5S is the broken windows theory applied to the shop floor.
The ‘broken windows’ theory was first enunciated in 1982 by James Wilson and George Kelling in the Atlantic Monthly. The theory suggests that if a window is broken and left unrepaired, people walking by will conclude that no one is in charge and soon more windows will be broken, which could result in the anarchy spreading from the building to the street. The authors propound that a successful strategy to prevent vandalism is to start when the problem is small.
If disorder goes unchecked then a vicious cycle begins. Our offices, production environments, and business processes are all susceptible to this theory. We need to attack disorganized areas and wasteful processes right away, don’t wait for the future. It is easier to sustain 5S (and lean for that matter) if you address the issue when it small and manageable.
I am sure many of you have examples where one piece of “litter” has escalated to a mess. It might be some unfiled papers on a desk that lead to piles of disorganization. Or maybe it is a messy draw or cabinet that causes the rest of the area to be complacent with returning items where they belong. Or perhaps it is a leaky part on machinery that causes a messy workplace.
Attention to the “broken windows” in our work environments will send a message to employees about the quality of their work which will prevent the defects, delays, waste and rework that can devour an organization’s profit margins.
Moral: “We cannot afford to overlook the small wastes in our workplaces and processes.”
It could be said that 5S is the broken windows theory applied to the shop floor.
Tuesday, August 4, 2009
The 5S Numbers Game
I was recently asked about some fun ways to teach 5S by the management of a plant looking to teach this concept to their team. There are probably a number of ways to do this. The simplest exercise is the 5S Numbers Game. This is a no cost exercise that can be done in any setting for any level within your organization. In this exercise you will experience how a disorganized work place can negatively affect productivity and quality.
If your type the 5S number game into any search engine on the internet you will likely come up with a number of good hits. The folks at SuperTeams, a Lean Six Sigma training firm have put the 5S numbers game on their web site. They have included a simple facilitators guide to make it easy for anyone to start teach this exercise right away.
There are some other exercises I have seen that involve two kits, one kit not organized in 5S methodology and the other kit organized with 5S. The goal is to contrast the time it takes to do a set of tasks in the organized kit versus the disorganized kit. This could be done with Legos where you build an object (house, airplane, or car). The disorganized kit may have difficult instructions to follow, a disorganized layout, and extra parts to contrast a clear, well organized layout and instructions in the other kit. This can also be done with extra tools you find in your facility. Create a disorganized tool box and an organized tool box and then time the team or teams on how long it takes to get specific tools.
What are some of the fun ways you have taught 5S to others?
If your type the 5S number game into any search engine on the internet you will likely come up with a number of good hits. The folks at SuperTeams, a Lean Six Sigma training firm have put the 5S numbers game on their web site. They have included a simple facilitators guide to make it easy for anyone to start teach this exercise right away.
There are some other exercises I have seen that involve two kits, one kit not organized in 5S methodology and the other kit organized with 5S. The goal is to contrast the time it takes to do a set of tasks in the organized kit versus the disorganized kit. This could be done with Legos where you build an object (house, airplane, or car). The disorganized kit may have difficult instructions to follow, a disorganized layout, and extra parts to contrast a clear, well organized layout and instructions in the other kit. This can also be done with extra tools you find in your facility. Create a disorganized tool box and an organized tool box and then time the team or teams on how long it takes to get specific tools.
What are some of the fun ways you have taught 5S to others?
Sunday, August 2, 2009
A Formula for Success
Recently, there have been a number of posts on various visual scheduling boards like Jon Miller's agile kanban board or Xaiver's kanban boards for example. With all these visual task ques it makes me wonder how we prioritize. There are several prioritization tools you can use to prioritize your day-to-day tasks and goal specific action items.
Note that it is commonly recognized that 20% of your activities will account for 80 percent of your success (The Pareto Principle). Hence, if you have 100 tasks in your task list, probably about 20 of those will be the key ones to focus on. Hence, whatever prioritization method you use, you should ensure it helps you pinpoint these tasks.
Stephen R. Covey the author of The 7 Habits of Highly Effective People described a high-level prioritization scheme by assigning a level of ‘urgency’ and ‘importance’ to all tasks.
It is human nature to instinctively act on tasks that are ‘urgent’, whether these are tasks are important or not. Dr. Covey notes that highly effective people make time for the QII activities and that doing so can reduce the time spent in other quadrants.
After you identify what quadrant your tasks belong in you can prioritize your tasks by working from QII to QI to QIV to QIII like this:
Based on Covey’s Urgent/Important Priority Matrix there is a simple priority planning model that everyone can use for success:
IMPORTANCE (I) * URGENCY (U) = SUCCESS (S)
Follow these five steps to prioritize your tasks for Success:
1) List your tasks or activities.
2) Identify the IMPORTANCE (I) for each task, with 1 being the most important.
3) Assign a numerical value for the URGENCY (U) of each task (1=Urgent, most time-sensitive; 2=Important, needs to be done; 3=Important, but can wait).
4) Multiple IMPORTANCE time URGENCY to determine the SUCCESS (S) factors for each task.
5) Rank each task from highest to lowest by SUCCESS factor.
What techniques/tools do you use to prioritize your day-to-day task and goal orientated activities?
Note that it is commonly recognized that 20% of your activities will account for 80 percent of your success (The Pareto Principle). Hence, if you have 100 tasks in your task list, probably about 20 of those will be the key ones to focus on. Hence, whatever prioritization method you use, you should ensure it helps you pinpoint these tasks.
Stephen R. Covey the author of The 7 Habits of Highly Effective People described a high-level prioritization scheme by assigning a level of ‘urgency’ and ‘importance’ to all tasks.
It is human nature to instinctively act on tasks that are ‘urgent’, whether these are tasks are important or not. Dr. Covey notes that highly effective people make time for the QII activities and that doing so can reduce the time spent in other quadrants.
After you identify what quadrant your tasks belong in you can prioritize your tasks by working from QII to QI to QIV to QIII like this:
Based on Covey’s Urgent/Important Priority Matrix there is a simple priority planning model that everyone can use for success:
IMPORTANCE (I) * URGENCY (U) = SUCCESS (S)
Follow these five steps to prioritize your tasks for Success:
1) List your tasks or activities.
2) Identify the IMPORTANCE (I) for each task, with 1 being the most important.
3) Assign a numerical value for the URGENCY (U) of each task (1=Urgent, most time-sensitive; 2=Important, needs to be done; 3=Important, but can wait).
4) Multiple IMPORTANCE time URGENCY to determine the SUCCESS (S) factors for each task.
5) Rank each task from highest to lowest by SUCCESS factor.
What techniques/tools do you use to prioritize your day-to-day task and goal orientated activities?
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