Lean Leadership & the Lean Transformation Framework

– Lessons Learned from Lots of Experiments!

David Brunt, Lean Enterprise Academy, U.K.
Introductions & Agenda
• Introduction
• Setting the context
• Lean Thinking Principles & the Lean Transformation Framework
• Lead with respect
• Exercise: Grasping the situation – What happens today?
• Using the “Lean Transformation Framework” to “Lead With Respect”
• Exercise: Service Reception – “What is the problem to solve?”
• Setting the vision
• Understanding the work
• Capability development
• The role of management in a Lean environment
• Leadership behaviour
• Underlying thinking
• Summary & Questions

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 Purpose, Process, People
Purpose
Vision/Values
True North
Line of Sight
Strategy Formula;on and Deployment

People Process
Employees: PDCA
• Horizontal flow of value at
• Engaged and involved A3 Thinking the pull of the customer
in CI
• Con;nuously solve • Workplace Management
problems through standardiza;on &
• Teamwork Visualiza;on
Managers: • Relentless elimina;on of
• System thinkers waste, overburden and
• Problem solvers unevenness
• Learners • Lean Tools applied as
• Teachers/Coaches appropriate
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Lean Transformation Framework
What problem
are we trying Value-driven Purpose
Situational Approach
to solve? What problem are we trying to solve?
How do we
Management System
develop the
capability?
Process
Capability
Improvement
Development
Continuous, real,
Sustainable
practical changes to
improvement capability
improve the way the
in all people at all levels
work is done What
How do we do Leadership management
& improve the system and
work? Basic Thinking, Mindset and Assumptions leadership
That drive this transformation
e.g. Respect, Challenge, Kaizen, Alignment, PDCA, Science, Gemba, Problem-Solving behaviours do
we need?
What is our
basic thinking?
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The Role of Leadership in Implementing Lean

Set alignment around the

vision

Design and support processes

that provide value to
customers - value streams

Develop people to take personal

responsibility for solving problems
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In Other Words:
Lean Leaders do Two Things

§ Get each person to take

initiative to solve problems and
improve his or her job
§ Ensure that each persons’ job
is aligned to provide value for
the customer and prosperity for
the company

Get the work done and Develop Your People

- at the SAME TIME!
Ref: John Shook – Lean Leadership
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Three Keys to Lean Leadership
“Go See”
Management must spend time
on the front lines

Ask “Why?”
Use the technique daily

Show Respect
Respect your people
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Exercise #1: Grasping the Situation
§ What is the role of a leader in your organisation?
§ Is there a definition?
§ Are roles and responsibilities defined?
§ What do leaders currently do?
§ (WHAT?) How much of their time is spent:
§ Setting (and communicating) alignment around the vision?
§ Designing and supporting the processes that provide value to customers - value streams
§ Developing people to take personal responsibility for solving problems
§ (WHERE?) How much of their time is spent:
§ In a meeting room
§ At a desk/computer on their own
§ At the place where value creating work takes place (gemba?)
§ What do you think these numbers need to be?
§ You have 20 minutes

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Exercise #1: Grasping the Situation (% of Time)
Company: Leadership Se>ng alignment Designing & suppor5ng Developing people to Others?
ac5vi5es (WHAT) around the Vision value streams solve problems (Please explain)
#1 % % %

#2 % % %

#3 % % %

TARGET STATE?

Company: Leadership On-site mee5ngs At a desk or computer At the gemba Others?

ac5vi5es (WHERE) (on own) (Please explain)
#1 % % %

#2 % % %

#3 % % %

TARGET STATE?

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Respect for People
Focus on the operator
– Enable the operator
• To work safely
• To know his/her customer
• To be successful
• To be involved, engaged…to use his or her mind
– Operator-out or the Line-back principle
• You can build your operating system from the operator out
• Continually remove wasteful steps from his work, giving it to support
people (isolate the waste), so that nothing is left but value-creating steps
• Don’t waste the operator’s time and effort…or mind!
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The Case: Go to the Gemba - Customer Arrival
Grasping the Situation
Current Condition
– One entrance, one exit to the
workshop
– Long customer queue
– Service advisors go out to the
queue to get ahead
– 7 minutes to see a customer
What’s the Problem?

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Is there a problem if PURPOSE isn’t clear?

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The Case: Go to the Gemba - Customer Arrival
Grasping the Situation
Current Condition
– One entrance, one exit to the
workshop
– Long customer queue
– Service advisors go out to the
queue to get ahead
– 7 minutes to see a customer
What’s the Problem?

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Continuous Flow Processing
Batch & Queue (Push) Processing

Lead Time: 30++ minutes for total order. First part: 21 minutes

Continuous Flow “make one, move one”

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First Experiment: April 2015

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Experiment: May 2016

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Summary: Understanding & Improving the Work
Focus on the work
Experience the power of:
– Observation to understand the problem
– The difference between value and waste
– Meeting the customer demand
– Limiting Overproduction
– One-piece-flow
– Improved layout – spaghetti charts
– Creating stability
– Standardised Work

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Lean Transformation Framework
What problem
are we trying Value-driven Purpose
Situational Approach
to solve? What problem are we trying to solve?
How do we
Management System
develop the
capability?
Process
Capability
Improvement
Development
Continuous, real,
Sustainable
practical changes to
improvement capability
improve the way the
in all people at all levels
work is done

How do we do Leadership

& improve the

work? Basic Thinking, Mindset and Assumptions
That drive this transformation
e.g. Respect, Challenge, Kaizen, Alignment, PDCA, Science, Gemba, Problem-Solving

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Developing Capability

§ Knowledge of the work – value and waste

§ To do the skill
§ Promote kaizen
§ Develop people
§ Build teamwork
§ A way to behave to get the best from people

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How to Teach?
Target Condition – To build capability so people “can do & improve” (themselves)

Levels of ability Suitable to teaching in a

1. Knowledge classroom in “Off-JT” manner

2. Understanding Better taught with actual problems

3. Capable and situations through “OJT” with
4. Do well mentoring from capable superiors.
Skill can not be developed in a
5. Can do and improve
classroom alone

Training Basic awareness Can carry out Can carry out Able to train
Training Matrix:
identified of process task supervised task unsupervised others in task

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 Teaching & Learning

Levels of ability
1. Knowledge
Off-JT
OJT
Concepts suitable to
some degree of
“classroom teaching”
Skills best learned 2. Understanding
through experience, from
actual problems and
3. Capable
situations 4. Do well
5. Can do and

Source: John Shook

OJD improve

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Toyota Training and Development
Distinguishing Characteristics
1. Begin from need
2. Make people before making cars
3. Leaders job is to develop team members
4. OJT is primary, Off-JT secondary
5. Bring gemba into the classroom, extend classroom education to the
gemba
6. Aim training one level above the organisational training need
7. Focus on
1. Problem-solving (scientific method)
2. Role throughout career
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What do we know About How People Learn?
Conceptual understanding through
– books, lectures, discussion
Behavioural change through:
– Experience
– Mistakes
– Experimentation and trial & error

Build structured opportunities for people to learn

the way they learn most naturally

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Standardized Work as Structured Learning
for the Operator & the Leader
What is Standardized Work? What is Kaizen?

They are two sides of the same coin – if you try to have one
without the other, you will encounter one of two types of very
serious problems:

1. Standardized Work without Kaizen;

2. Kaizen without Standardized Work.

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Standardised Work – Vehicle Reception

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Experiment: October 2016

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Define the Skills Required & Set a Plan

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Lean Transformation Framework
Value-driven Purpose
Situational Approach
What problem are we trying to solve?

Management System

Process
Capability
Improvement
Development
Continuous, real,
Sustainable
practical changes to
improvement capability
improve the way the
in all people at all levels
work is done What
Leadership management
system and
Basic Thinking, Mindset and Assumptions leadership
That drive this transformation
e.g. Respect, Challenge, Kaizen, Alignment, PDCA, Science, Gemba, Problem-Solving behaviours do
we need?

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Leadership Behaviours & Management System

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© 2017 Lean Enterprise Institute. All rights reserved.
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Lean Leadership

VISUAL PROCESS NEXT FUTURE

STATE

GtS

GtS A P
C D
Future-State
GtS A P
C D
Vision
A P Tools
C D
Tools Set alignment around
the vision

Tools Design & support processes

that provide value to
customers - value streams
Current State
Develop people to take
personal responsibility
for solving problems

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Lean Transformation Framework
Value-driven Purpose
Situational Approach
What problem are we trying to solve?

Management System

Process
Capability
Improvement
Development
Continuous, real,
Sustainable
practical changes to
improvement capability
improve the way the
in all people at all levels
work is done

Leadership

Basic Thinking, Mindset and Assumptions

That drive this transformation
e.g. Respect, Challenge, Kaizen, Alignment, PDCA, Science, Gemba, Problem-Solving

What is our
basic thinking?
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How do you Build a Culture of PDCA?
Robust Problem Solving is What
Makes the Organization Successful

Problems are a good thing

Make abnormal from normal visible right now
– Helps workers do their jobs well
– Helps workers know when to ask for help
– Helps managers know what questions to ask
Live and teach PDCA – frequent and complete cycles of reflective learning
Involve everyone in problem solving

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 Assumptions of Leaders that Drive Continuous
Improvement
Let’s Identify the problem Focused
• Focusedononthe means
the final result,to
and solve it together not on thegreat
achieve problem solving
results
Means-
Result- process
oriented
oriented

Learner
Knower’s Systems
Fragmented
Thinking
thinking

Processes and people

• Fragmented actions
are aligned to achieve
• Lack of organization
organizational
wide strategy goals
• Take personal • Silos
responsibility Disturb &
Command &
• No blame environment Internalize
Defensive
Respond
Control

Transformational Leadership Program Run small experiments on

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 Unquestioned Assumptions of Leaders that Drive
Complexity
• Blanket solutions
• Use of CI specialists to solve
• Focused on the final result,
organizational problems Result- not on the problem solving
• Not building capability of others
• Missing opportunities for oriented process
learning

Fragmented
Knower Thinking

• Failure is not allowed • Fragmented actions

• Employees feel the need • Lack of organization- wide
to justify their actions strategy
• Someone else caused the • Silos
problem Command &
Defensive Control
• Rationalization of data

• Metrics and status reports are the

Transformational Leadership Program
primary management tool
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rank
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Summary: Lean Leadership = Mentorship
The Lean Leader leads:
– By setting the vision (more why than how)
– By building systems and processes that cascade responsibility
– By influence, persuasion, example
• by walking the talk
• by being knowledgeable
• by getting into the messy details
• by coaching and teaching
– through PDCA learning cycles
– through questioning

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Lean Leadership & the Lean Transformation Framework
– Lessons Learned from Lots of Experiments!
David Brunt, Lean Enterprise Academy, U.K.