Lean Quote: A Strategic Plan Comes To Life Through Discussion and Negotation

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"A strategic plan is nothing but a dead letter. It comes to life only through discussion and negotiation." — President Dwight D. Eisenhower

To reduce ambiguity and misinterpretation during the planning phase of Hoshin Kanri management uses a fact-based inter-level negotiation process known as “Catchball”. The word “catchball” denotes a simple social game in Japan in which a circle of young children throw a baseball back and forth. It metaphorically describes a participative process that uses iterative planning sessions to field questions, clarify priorities, build consensus, and ensure that strategies, objectives, and measures are well understood, realistic and sufficient to achieve the objectives.

Hoshin planning begins with the senior management identifying the strategic outcomes/goals to be achieved, complete with deadlines. Once determined, the ‘challenges’ are sent to the operational units who break them down and determine what each unit and person has to do to be able to achieve the management objective. They then bounce the ‘ball’ back to senior management who catches it and determines if the execution committed to will be satisfactory or not. If it is not, the ‘ball’ is bounced back to the operations folks again who catch it and respond accordingly.

The conversation about strategic objectives and means widens as top management deploys its strategy to middle management because managers throw ideas back and forth from one level of the organization to another. There are three major benefits to catchball. First, it opens up new channels of communication between company leaders and process owners, which greatly improves the quality of the organization’s shared knowledge about its processes, people and relationships. Second, it forges new relationships necessary to execute the strategy. Third, by engaging middle and even front line managers in genuine give-and-take negotiations—that is, by getting their buy-in—Hoshin dramatically reduces the cost of getting people to do what they’ve agreed to do.

In short, catchball is a disciplined multi-level planning methodology for “tossing an idea around.” It takes strategic issues to the grassroots level, asking employees at each level of management to “value add” to the plan based on data analysis and experience of their functional areas.

Catchball requires that the people who deploy downward engage in some kind of data-based conversation with the people who design the plans. There must be sufficient coupling and discussion during the planning process to ensure the strategic plan is clear and realistic otherwise it will be nothing but a dead letter.

 

5 Ways to Make Your Employees Happy At Work

No matter what type of business you run, you’re going to need your employees to perform well in order to be successful. If you get the most out of your employees, there is no limit on how far you could go. In order to get the most out of your employees, making them happy should be a priority. Here are five ways that you can help your employees be happy about work.

1. A sense of meaning: Whether on the widget-line or in the executive suite, every employee feels happier knowing that their hard work benefits not just the business but the larger world.
2. Opportunities for growth: People are happier when they are learning, and they are happier doing their jobs when they feel that they are enjoying continuous opportunities to grow.  A lot of those people are even happier when they know that growth is helping them get to the next rung on their desired career ladder… or lattice.
3. Offer autonomy to workers: Allowing workers to perform tasks related to their jobs in their own way will not only make workers happier. It will also make them more productive since they will not have to waste time waiting for approval from superiors.
4. Offer a good training program: Employers shouldn't underestimate the impact training has on employees and their future happiness. A company-sponsored mentorship or structured training sessions are likely to lead to engagement among employees.
5. Create a favorable office environment: Employees are happier if they like where they work. Simple things such as reducing the length of meetings, providing food to employees in the office, and recognizing employees after a job well done make employees happier. Communication with employees also helps to alleviate many concerns they may have about their job since it helps workers feel happier and more secure at work. Communication either in person, in an email or with a handwritten note all helped to make workers feel better at work.

In general, workplaces that make us feel included, valued, cared for, and competent bring out our best efforts. And while happiness alone may not cause productivity, it’s a pretty solid start. Happier workers stick around longer, bring more energy and enthusiasm to their tasks, and help maintain organizational morale.

No Time for Improvement Means No Improvement

Whether a company has just switched to Lean production or is still using a traditional manufacturing approach, if it does not establish an official improvement time policy, very little improvement will ever happen there.

We have seen this everywhere, even in companies which loudly proclaim their commitment to continuous improvement. Little or no actual time is set aside to do the very improvement the company says it wants.

It is an age-old battle — production time versus improvement time. Two worthy rivals attempting to occupy the same narrow 24-hour space. The issue is not which is more important. Production is! This is as it should be: a company is in business to sell its products and services. It must first make them. And that takes time. Production time always comes first.

Without an improvement time policy, however, the danger is that needed improvements will never happen.

Too often improvement is left to chance and the ingenuity of the willing to eke out small pockets of time — and make magic happen. We all know these people. They see the vision burning brightly before them and are determined to make it happen. Time and again, these people prove — with their own mental, emotional, and physical health — the familiar adage: Where there’s a will, there’s a way.

In a sad and important way, these quiet heroes do their companies and the rest of us some bit of harm. When they make magic happen, in the absence of a clearly defined, improvement time policy, they unintentionally send the message that separate time is not needed. Wise, indeed, is the company that sees through this double-think and takes steps to establish the policy nevertheless.

Improvement doesn’t just happen.  It takes time, and in the pressure pot of our day to day activities, there is never enough time to improve our situation. The structure of Lean permits and requires time be set aside for improvement. If managers do not definitively provide time for the task of improvement, then people will know that they are not serious about making improvement a formal part of the work.

Most of us don't set aside time in the day, much less the week, just to improve. It doesn't take much time or skill, mainly just will. We need to be encouraged and reminded that it only takes a few minutes to do kaizen. Without assistance from management, people have no good way to make time for improvement within the workday.

There can be no improvement without the time and resource commitment from management to solve problems.

Jidoka: Automation With a Human Touch

There is no room for compromise in Lean when it comes to quality. Jidoka incorporates quality checks into every step of the production process by providing machines and operators the ability to detect when an abnormal condition has occurred and immediately stop work. This enables operations to build in quality at each process and to separate men and machines for more efficient work.

The term Jidoka used in TPS (Toyota Production System) can be defined as "automation with a human touch." At Toyota this usually means that if an abnormal situation arises the machine stops and the worker will stop the production line. Autonomation prevents the production of defective products, eliminates overproduction and focuses attention on understanding the problem and ensuring that it never recurs.

It is a quality control process that applies the following four principles:

1. Detect that something has gone wrong.
2. Stop.
3. Fix the immediate condition.
4. Investigate the root cause and install a countermeasure.

Jidoka highlights the causes of problems because work stops immediately when a problem first occurs. This leads to improvements in the processes that build in quality by eliminating the root causes of defects. In this way, Jidoka is often used in conjunction with structured problem-solving tools.

The implementation of Jidoka relies on a mix of cultural concepts and Lean tools that are summarized below.

Developing a Jidoka mindset. Many people are trained to react to problems and to put in place quick fixes. The concept is to keep things running for as long as possible and work around problems as quickly as possible. A Jidoka mindset is different in that it says that, in the long run, efficiency will come from addressing the root cause of problems and that investing time in solving problems is a valuable investment.

Empowering staff to ‘stop the line’. Do your staff feel that they are empowered to say ‘stop’ when they see an unsafe act or a problem occurring? Many organizational cultures, through the words and actions of managers, disempower staff from stopping a process. Developing a culture where people feel that they are able to raise a real issue – and that far from being penalized they will actually be thanked for raising the issue – is very important in jidoka.

Installing andons. Andons are audible, or more commonly visual, signals that something has happened.  The aim is that andons quickly alert managerial and technical staff to a problem having arisen so that they can get to the source of the problem and begin to investigate it.

Solving the root cause. Quick fixes are typically just that. Jidoka relies on the implementation of an immediate fix to stem the potential damage and on the longer-term fix that comes through root cause analysis.

Utilizing standard work. Having implemented the changes it is vital to document what has been done and to carry out any training required on the new process.

Selective automation. Selective automation is about investing in technology to detect – and more ideally prevent – errors arising wherever there is a business case to do so. This means wherever there is either a high probability that things will repeatedly go wrong, or where a problem arising has significant impact (such as the ability to cause harm), then it means investing in sensors and other systems to enable you to control the process and detect problems as early as possible.

As you can see, Jidoka combines the concepts of mistake proofing, TPM, standard work, structured problem solving and the creation of a Lean Culture – the clustering of concepts under one heading is a feature of many higher level Lean tools and concepts. Jidoka is about quality at source, or built in quality; no company can survive without excellent quality of product and service and Jidoka is the route through which this is achieved.

Lean Quote: Lean Manufacturing Provides Employees Freedom and Independence

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"Everything that is really great and inspiring is created by the individual who can labor in freedom." — Albert Einstein

Lean manufacturing provides your workforce the freedom that they need to own and maximize their productivity. In a Lean production plant, the "freedom to control one's work" replaces the "mind numbing stress" of mass production. Armed with the skills they need to control their environment workers have the opportunity to think actively even proactively to solve workplace problems.

Lean is more than the traditional metrics of improved efficiency, reduced costs and increased throughput. The people-centric approach to the application of Lean creates a better future, driven by empowered individuals working in teams, committed to continuous improvement. It is this culture of responsible freedom and trust that allows employees and their organization to realize the positive benefits of Lean and achieve a successful outcome.

The real power of Lean manufacturing is to fully engage our heads and hearts to create habits that result in achievement and fulfillment. This is accomplished by creating an inspirational environment in which people are encouraged to embrace, implement, and live Lean concepts. Lasting results are driven by the spirit of honesty, integrity, responsiveness, freedom, and creativity, built on a platform of committed relationships.

Lean Manufacturing is a business method that extends employees independence. It provides more employees with the tools, methods and authority to make decisions. It creates teams to measure progress and devise new techniques. This leads to higher employee motivation and productivity as workers are asked to come up with solutions to problems as opposed to having to work with flawed procedures. There is much to be said for greater worker independence in the execution of a Lean philosophy. We may not have a day to celebrate independence like the US but the message is no less important.

 

Happy Birthday, America!

Independence Day, commonly known as the Fourth of July, is a federal holiday in the United States commemorating the adoption of the Declaration of Independence on July 4, 1776, declaring independence from the Kingdom of Great Britain. Independence Day is commonly associated with fireworks, parades, barbecues, carnivals, fairs, picnics, concerts, baseball games, family reunions, and political speeches and ceremonies, in addition to various other public and private events celebrating the history, government, and traditions of the United States.

Today, we celebrate and enjoy the freedom that comes with the event that made this day so special. Independence Day is a patriotic holiday for celebrating the positive aspects of the United States. Above all, people in the United States express and give thanks for the freedom and liberties fought by the first generation of many of today's Americans.

The United States is truly a diverse nation made up of dynamic people. Every day thousands leave their homeland to come to the “land of the free and the home of the brave” so they can begin their American Dream. We invite all nations to celebrate with Americans on this Fourth of July.

Happy Birthday, America!

The Value of Transparency and Why You Should Embrace It

In Paul Borawski’s recent post on A View from the Q he asks if you are in favor of transparency and why.

Good leadership is all about communication, and the best leaders are completely transparent with their staff. I believe that with knowledge comes power and the more information we share the quicker with can improve.  Creating a culture of openness and free-flowing information can be a competitive advantage.  Here are five reasons you should embrace transparency:

1. People assume the worst when they don't hear from leaders. Silence from the executive office causes a lot of fear and resentment, which certainly doesn't contribute to a productive culture. Maybe the news is bad, but maybe it's not as bad as they are imagining. And even if it is, once they know the truth they can plan and act accordingly.

2. Transparency helps employees connect to the why. When employees are working in a vacuum, they can't see the financial "big picture," and decisions leaders make may seem ill-advised or unfair or simply inexplicable. Transparency connects them to the why—and that understanding propels them to act. You can ask people to change their work habits and established processes all day long. But if they don't know why they're being asked to change, they won't change—at least not for long.

3. Transparency allows for consistent messaging across the organization. When you commit to transparency, people don't have to get their (speculative, distorted) news through the company grapevine. They hear what's really going on, in a controlled and consistent way, from their managers. This, in turn, creates organizational consistency. When everyone is hearing the same messages from their leaders, everyone is motivated to respond in similar ways. And this consistency trickles down to the customers, who get the same basic experience regardless of who they're dealing with.

4. Transparency leads to faster, more efficient execution. When times are tough, execution is everything. And the ticket to good execution is good alignment: All sectors of an organization must understand exactly what's required so they act in a coordinated and collaborative fashion. Transparency is what facilitates that kind of alignment. It's all about a shared sense of urgency.

5. Transparency facilitates the best possible solutions. In transparent cultures, leaders encourage employees to solve problems themselves. And because those employees are the people closest to a problem, and because they must live with the outcome, they almost always design the most effective, efficient solution.  And, of course, they'll also have instant buy-in.

Be honest and open with your staff on matters that affect them and could ultimately put their mind at ease. It is important that you involve employees where you can with decision making to make them feel valued. As a manager, your aim is to have an open and honest working environment where your staff feels confident in coming to you with the truth about matters, whether they are big or small.

Let them in on what is going on within the company as well as how their jobs contribute to the big picture. When you keep you employees informed they tend to feel a greater sense of worth. Keep communication hopeful and truthful – do not be afraid to share bad news, instead be more strategic about how you deliver it. Improve performance through transparency – By sharing numbers with employees, you can increase employees’ sense of ownership.

As we have learned from Lean Thinking, this too cannot be a flavor of the month.  Being open and honest with your employees requires long term commitment if you want your organization to continuously improve.

I’m part of the ASQ Influential Voices program. While I receive an honorarium from ASQ for my commitment, the thoughts and opinions expressed on my blog are my own.