LEAN CULTURE Debra Setman Group Exercise Part 1: What Is Organizational Culture? Corporate culture is the personality of an organization. It guides how employees think, act, and feel. Johnson (1988) identified a number of elements that can be used to describe or influence organizational culture. What is your culture? Fill in items under each heading. The Paradigm Stories and Myths Rituals and Routines Culture Control Systems Organizational Structures Symbols 2 Power Structures SOURCE: http://www.managementhelp.org/org_thry/culture/culture.htm; Johnson, G. (1988). Rethinking incrementalism. Strategic Management Journal, 9, 75-91. 2 Lean Thinking Lean has a variety of tools used to enable the culture. They are designed to reduce waste and increase customer value. Below are some tools used in lean thinking. Value-Stream Mapping KPIs MistakeProofing Kaizen Our Approach to Lean Thinking Kanban Standard Work Rapid Changeover ME2 Visual Workplace and 5S 3 3 Lean Culture The Paradigm Elements of culture from Johnson (1988) can be linked to a lean culture: Stories & Myths Rituals & Routines • • • • • • • • • • • • • Deming Taylor Ford Toyoda Ohno PDCA Hansei Gemba walks Team huddles Problem-solving Waste (muda) elimination Effective meetings Constant improvement (every improvement is worthwhile, no matter how small) • Both recognition and constructive, helpful Symbols • JIT criticism • Std work • VSM • Visual workplace • Kanban • Layout—FIFO racks • Colors • Customer first after • 5 whys safety • Teamwork • Vision and values • Kaizen embraced by all (Relentless • Hansei focus on waste) • Jidoka Control Systems • Goal alignment (Hoshin Kanri) • Red is not necessarily bad • No-blame environment • Never give up attitude • Trial and error • Challenge and failure • KPIs • Compliance with safety and government regulations Lean Culture Organizational Structures Power Structures • • • • Long-term focus Triangle Servant-leader mentality Consistent and clear titles • Team ideas rule • Action oriented • Change oriented • Employee accountability and empowerment 4 SOURCE: http://www.managementhelp.org/org_thry/culture/culture.htm; Johnson, G. (1988). Rethinking incrementalism. Strategic Management Journal, 9, 75-91. 4 Group Exercise Part 2: What Is Organizational Culture? Exercise: Go back to the output from Part 1 and compare it to a lean culture. Identify areas under each category that you could/should work on improving to move toward a leaner culture. Use a different color marker on the same flipchart paper from the first exercise. Stories and Myths The Paradigm Control Systems Culture Culture Rituals and Routines Organizational Structures Symbols 5 Power Structures SOURCE: http://www.managementhelp.org/org_thry/culture/culture.htm; Johnson, G. (1988). Rethinking incrementalism. Strategic Management Journal, 9, 75-91. 5 References Bridges, W. (2003). Managing transitions. New York: Perseus Publishing. Convis, G. Role of management in a lean manufacturing environment. Automotive Manufacturing & Production, July 21. Ford, H. (1988). Today and tomorrow. New York: Productivity Press. Johnson, G. (1988). Rethinking incrementalism. Strategic Management Journal, 9, 75-91. Kotter, J.P. (1996). Leading change. Boston, MA: Harvard Business School Press. Liker, J.K. (2003). The Toyota way. New York: McGraw-Hill. Mann, D. (2005). Creating a lean culture. New York: Productivity Press. Schein, E.H. (1988). Organizational culture. Cambridge, MA: Sloan School of Management, Massachusetts Institute of Technology. Womack, J.P., & Jones, D.T. (2003). Lean thinking. New York: Free Press. Womack, J.P., Jones, D.T., & Roos, D. (1990). The machine that changed the world. New York: Scribner http://www.brainyquote.com/quotes/authors/h/henry_ford.html http://www.chapters.indigo.ca, About the Book http://www.coe.montana.edu/ie/faculty/sobek/ime458/BR/Sp02/partainBR.htm http://www.despair.com http://www.emsstrategies.com/dm070104article2.html http://www.entarga.com/stratplan/culture.htm, enTarga (Ross A. Wirth, Ph. D.) http://www.eyewitnesstohistory.com/ford.htm http://www.fordforums.com/showthread.php?t=36364 http://www.lean.org/THE MACHINE THAT CHANGED THE WORLD http://www.managementhelp.org/org_thry/culture/culture.htm http://www.strategosinc.com/training_cult1-h1.htm CHANGE MANAGEMENT RESOURCE: ask JJPE for internal resource suggestions. Also, take the CM online module offered through the JJPE website. 6 6