Leadership
1
Three Attributes of Leaders
GO SEE:
• Visit the point where value is actually being created; verify the situation.
ASK WHY:
• What is the problem? What are possible countermeasures? Why is one
countermeasure the best?
SHOW RESPECT:
• Assign clear responsibility for every process & problem; ask questions about
people’s work.
• Never walk alone.
2
Foundation: Leadership
A LEADER
“Steers clear of simple
command in favor of
leading by being
knowledgeable, factbased, and strongwilled. ….yet flexible.”
3
Is not results-onlyoriented &
management by
numbers-only
focused. This is like
“driving while looking
through the rear view
mirror.”
Focuses on
responsibility
“manage the means,
the process itself that
actually leads to
results.”
An Operational
Environment…
…is a learning environment
• Innovative
• Disciplined
• Visual and clutter free
• Data driven decisions
• Inclusive
• Predictable and steady paced
• Adaptable and calm
4
Leadership Roles
PROCESS OWNERS
EXECUTIVE SPONSORS
Manages daily area operations.
Drives improvement solutions.
May be a team member.
PROJECT SPONSORS
Key Project stakeholder.
Aids in project scoping.
Owner of project results.
PROJECT TEAM
MEMBERS
Provides project-specific
support.
Can be Yellow or Green Belt.
Part-time on projects.
GREEN BELTS
Leads local improvement projects.
Participates in Black Belt teams and
projects.
Full-time position.
5
Owns vision, direction, integration,
business results.
Leads organizational change.
TOTAL EMPLOYEE
INVOLVEMENT
Understands the vision
Drives improvements in
their daily job
BUSINESS CHAMPIONS
Leads business unit in
process improvement.
Prioritizes projects.
Full-time position.
MASTER BLACK BELTS
Trains and coaches Green and
Black belts.
Manages DMAIC phase reviews.
Full-time position.
BLACK BELTS
Leads cross-functional improvement
projects.
Trains and coaches local project
team.
Full-time position.
Everyone shares the responsibility of
Continuous Improvement
• Better quality of work
• Better customer experience
Shared Goals
• Engaged employees with a voice
• Collaboration and communication
• Safety at work
• Training and development
Typical Roles and Responsibilities
•
Staff
Unions
Management
Business Analyst
Coaches
Voice of the process, employee
and customer
•
Participate confidently
•
Root cause problem solving
•
Collaborate within and across
departments
•
Voice of the employee
•
Seek out win-win opportunities
•
Collaborate within and across
departments
•
Feedback on risks
•
Collaborate within and across
departments
•
Resource management
•
Prioritization and selection of
improvements
•
Connect stakeholders across the
organization at all levels
•
Create forums for problem
solving (no blame!)
•
Lead, learn, mentor/coach
•
Measure process health
•
Collaborate within and across
departments
•
Teach and develop Lean/CI tools •
and techniques
Guide problem solving and
facilitate larger improvements
Change Management
and Engagement Plans
8
• The ability to manage and overcome
resistance to change is fundamental to any
successful project implementation.
Introduction
• This outlines and explains appropriate
techniques for managing the type of
resistance that can occur in any project
implementation.
• It also outlines the types of resistance that
can occur and why people typically resist
change.
• Finally, it explains how to understand change
resistance and outlines how best to manage
and overcome it.
Experiencing Change
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Types of Change Resistance
Cause delays to
overall
implementation
Not try to
understand
changes and
reasons for
changes
Ignore new
processes
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Disagree
with the
benefits of
the change
Not embrace
changes to
tools, practices
and techniques
How People Resist Change
Ignore new processes
Not want to try and
understand changes
that are being made
and the reasons for
such changes
Not embrace and work
with changes to
workplace tools,
practices, and
techniques
12
Disagree with the type
of benefits that they
are being told can
accrue from such
change
Cause delays to the
overall implementation
Reactions to Change
Change recipients can be categorized into the following groups:
13
Enthusiast
Quick adopters that fully embrace the changes being proposed
and the reasons for such changes
Pragmatist
Followers that will typically go along with any new changes and
avoid resisting such proposals
Cautious
Evidence seekers that will make their resistance to change
known at every possible opportunity until they are convinced the
change is good
Stages of Resistance
14
Denial
Anger
and
Resistance
Deny that the change
will take place
Realize changes are
going to happen
Express the feeling
that change will not
last
Exhibit strong
emotions such as fear,
anger, helplessness
and frustration
Exploration,
Acceptance,
and
Commitment
Try to accept the
changes in a positive
or negative fashion
Conditions for Change Acceptance
People will react to change in a positive manner based on the following
conditions:
Motivation
Environment
 People will accept change
in a positive manner when
they are confident that they
can undertake the tasks
involved in implementing the
change.
 People are more likely to
accept change if the
environment in which the
change is being introduced is
appropriate.
 They feel that they fully
understand the likely
outcomes of the change and
they value those outcomes.
 Such an environment
should allow these people the
leeway to take risks during
change implementation and
not be afraid of failure.
 The appropriate people
should be selected to help
facilitate the change.
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Relationship
 The relationship between
those people responsible for
bringing about and
introducing change – the
change agents – and those
who are expected to
implement the change –
change targets – is vital in
fostering a positive change
reaction.
 Change targets should feel
that they can trust change
agents and that the change
agents empathize fully with
them and have their best
interests at heart.
How People Behave during Change
16
Change Readiness Theory
NEED FOR
CHANGE
• Imminent threat
or challenge to
the company
and its staff
• Recognition by
leadership and
staff of that
threat
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ABILITY TO
CHANGE
WILLINGNESS
TO CHANGE
• Knowledge of
change skills
• CEO and top
team
• Ability to lead
yourselves and
others through
the change
• Executive
sponsorship
• Customers
• Suppliers
• Employees
>
EMOTIONAL/
PERSONAL +
FINANCIAL
COSTS
• Transition costs
• Personal costs
of individuals
impacted
Perspectives
Forces for Change
FUTURE STATE
CURRENT STATE
(pushing towards)
Forces for Status Quo
(pushing away)
The Five Building Blocks of successful Change
1
Awareness: of the need for change
2
Desire: to participate and support the change
3
Knowledge: on how to change
4
Ability: to implement required skills and behaviors
5
Reinforcement: to sustain the change
Change Management Tools
Connecting individual and organizational change management
Change Management
Tools
Individual Phases of
®
Change (ADKAR )
Communications
Awareness
Sponsorship/leadership
Desire
Coaching
Knowledge
Resistance management
Ability
Training
Reinforcement™
Mobilizing Commitment
21
Mobilizing Commitment for
Transformational Change
6 STEPS
1.
Establish the specific drivers for change
2.
Develop Change Leaders /CI controllers
3.
Create a CI vision and associated
strategy for achieving that vision
4.
Communicate the change effectively
5.
Train people to embrace and implement
changes effectively
6.
Develop and sustain a CI culture and
climate
What are the specific drivers for change in
your organization?
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• Establish need and urgency for change
#1
Establish the
Specific Drivers
for Change
23
• Identify negative results of maintaining status
quo
• Outline potential opportunities and benefits
Sets context to help employees understand
reasons for change
#2
Develop Change
Leaders /
Controllers
24
• Led by a group of people with enough power
to drive the initiative
• These people should be at management level
in all of the areas/departments that will be
affected
• They should have an extensive knowledge of
the entire organization and in particular, the
areas and people that will be impacted by the
change.
#3
Create a Vision
and Associated
Strategy
25
• Develop a vision that will help drive efforts to
implement changes
• Ensure vision is clear, flexible and easy to
communicate
• Develop strategies to achieve that vision
• Obtain employee opinion and feedback
#4
• Communicate as early as possible the vision
and urgency of the change
Communicate
the Change
Effectively
• Describe future state
26
• Outline differences between current state and
future state
• Outline negative aspects of employee roles in
the current systems and processes and how
these aspects can be reduced and improved
#5
Train People to
Embrace and
Implement
Changes
Effectively
27
• Success is dependent upon cross-functional
implementation teams
• Team working, interpersonal, and problemsolving skills are vital
• Initial training should focus on developing
interpersonal and team working skills to build
confidence and motivation to become an
active participant in continuous improvement
and problem-solving activities
• Provide training prior to implementation to
reduce insecurities and ensure that the
implementation is sustainable
#6
Develop and
Sustain a Lean
Culture and
Climate
28
• Communicate, train and coach
• Change daily procedures, practices, roles,
and responsibilities to empowering
employees
• Reassign senior people with solid leadership
skills from their regular duties to focus on
implementing the Lean initiative
• Select and train suitable employees for
specific implementation projects based on a
roadmap
Control Planning
29
A control plan is a method to document
the necessary elements to monitor to
ensure the project improvements show
long term sustainability
• The following diagram illustrates the areas
necessary to consider when developing a
control plan
Control Planning
Process
Documentation
Risk FMEA
Assessment
Standard Work
Process
Ownership and
Accountability
Visual
Management
Control Planning
Review Cycle
Decision Rules
Performance
Measures
Process
Control Limits
and Targets
It is essential to have accurate and
complete process documentation of the
improved process to be sustained.
Value Stream Maps
Current State Value Stream Map (VSM)
Small Business Loan Application Process
8 hours
Takt Time = 160 mins
3 apps
Centralized
Lending
Client
Process
Documentation
Paper Application
interoffice mail
3 applications/day
Paper Application
Interoffice mail
Approval
30 applications
1 Branch Rep
1 Loan Officer
1 day
Cycle Time = 142 mins
% NVA = 22 %
Batch Size = 3 apps
480 mins
Loan Decision
Bi Weekly Meeting
Processing
Cycle Time = 208 mins
% NVA = 30 %
Batch Size = 1 app
4800 mins
142 mins
Loan Documents
Interoffice Mail
30 applications
1 Loan Officer
1 Branch Rep
10 days
Decision
Mail
Disbursements
14 days
Cycle Time = 56 mins
% NVA = 8 %
Batch Size = 1 app
Client
Regulatory Filing
Mail
60 applications
1 Branch Rep
6720 mins
208 mins
Regulatory
Body
Branch
1 Branch Rep
20 days
Cycle Time = 172 mins
% NVA = 70 %
Batch Size = 60 apps
NVA = 21600 mins
9600 mins
56 mins
Swimlane Diagrams
Regulatory
Administration
172 minutes
VA = 578 mins
Lead Time = 22178 mins
Spaghetti/ Layout Diagrams
31
Sustaining & Continuous
Improvements
32
Operational Performance
Measures & Improvements
New
Programs
& Strategic Projects
Strategic
Measures
Strategic
Plan
Master Plan
Business Plan
Process
Improvements
Services
Manage with Measures
Service
Performance
Measures
Performance Improvement Cycle
A
P
Lean
C
D
3. Adjust &
Improve
1. Program
& Service
Delivery
2. Monitor
Performance
Measures
Working Backwards from Perfect
Start with the end, working back through the means
Perfect Result


Define the goal of the service
How customers are better off when the program works the way
it should (customer/client value)
Means


Identify the relevant indicators for the service delivery
“How much?”, “How well?”, “Is anyone better off?”

Monitor and measure the baseline to assess how well we are
doing
Improve trending areas of opportunity
Performance
Improvement
Cycle

A
P
Lean
C
D
Continuous Improvement: “Turning the Curve”
H
M
L
Turning the Curve
Point-to-Point
History
Forecast
Baselines allow us to define success as turning the
curve not point-to-point improvement
Source: Results-Based
Accountability Guide, 2010,
Results Leadership Group LLC.
36
Common Mistakes and Misuse of Baselines
In a Request to County Council for More Teen Pregnancy Prevention
Funding
Teen Pregnancy Rate
Forecast without
new funding
Forecast with
new funding
Forecast
08
Source: Results-Based
Accountability Guide, 2010,
Results Leadership Group LLC.
37
09
00
01
02
03
04
05
06
Lean Improvements
From Talk to Action
The step-by-step PDCA process starts with a team of partners focussed on the
customer experience
• Customer Focussed view of the
service or product delivery
• Team based problem solving &
innovation based on facts (data and
observations)
A
P
Lean
C
D
• Small incremental improvements
through measured experiments
A
P
Lean
C
D
• Low to no cost ideas
• Pursue perfection by eliminating
problems and seizing opportunities
38
A
P
Lean
C
D
Key Takeaways
• Project and continuous improvement involves
every person and process in the organization,
including leadership.
• There are behaviours required from
leadership for projects & business analysis to
be successful
Key Takeaways
39
• Measurement and change management are
key