Lean India Summit 2014
Transformational Lean Leadership
John Shook
Lean Enterprise Institute
Lean Global Network
September 2014
© Copyright Lean Enterprise Institute.
Lean Enterprise Institute and the leaper image are registered trademarks of Lean Enterprise Institute, Inc.
Understanding Lean
Transformation
Aligning:
•Purpose
•Process
•People
to create value
How to
improve
the work?
WHAT
is our
PURPOSE?
What situational problem
do we need to address?
What
What
leadership
leadership
behavior and
and
behavior
management
management
system do
do
system
we need?
need?
we
What is our BASIC THINKING??
How to
develop
the people?
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…?
john shook
5
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”.
Lean Enterprise Institute
8
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!
NUMMI and the Role of Leadership
Graphics slide. Place graphic within the white box.
Four lessons
in leadership
from NUMMI:
•
•
•
•
“Establish mutual trust”
“No problem is problem”
“Lead as if you have no power”
“Before you build cars, build people”
No Problem is a Problem
Solving Problems at the Gemba
HERE!
NOT HERE
GEMBA
Data Analysis Room
TOOLS
DEFECT!!
Kan Higashi to Gary Convis…
(NUMMI’s senior Japanese and American leaders)
“Lead the organization as if you have
no power."
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
“Lead as if you have no power.”
- Kan Higashi to Gary Convis
22
john shook
The Key Factor of Key Factors:
Developing People
Matt Long of the Herman Miller
company:
“We aren’t just solving problems…
We are developing problem solvers.”
23
The Twin Responsibilities of
a Lean Leader
Get the job done and develop your people…
and accomplish those at the same time
How…?
Lean Management
Responsibility 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 Performance
Responsibility 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 decisionmaking process.
In a Lean Organization:
•Position establishes responsibility to get decisions
made.
Making Decisions and
Creating 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.
33
The 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 Questions
The Twin Responsibilities of
a Lean Leader
Get the job done and develop your people…
and accomplish those at the same time
How…?
Results and Process
• Manage by Results (MBO/MBA)
• Manage by Means (Process)
- H. Thomas Johnson
38
john shook
“Go See”
“Data is of course important,
but I place greater emphasis
on facts.”
-Taiichi Ohno
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!”
42
john shook
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 emerged
43
john shook
PROCESS
Results and Process
RESULTS
PROCESS
Results and Process
RESULTS
PROCESS
Results and Process
RESULTS
PROCESS
Results and Process
RESULTS
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.
48
john shook
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.
49
john shook
Leading Through Capability Development Through Collaborative
Problem Solving
No Problem is
a Problem!
NEXT
TARGETED
CONDITION
GtS
GtS
GtS
A
P
C
D
A
P
C
D
CURRENT
CONDITION
P
C
D
Tools
Tools
Tools
A
TARGETED
CONDITION
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.
john shook
51