My New Look

Posted on June 27, 2011 by Larry Miller

For those who have read my blog for a while you will definitely notice my new look. I hope you like it.I hope it is easier to read, cleaner and easy to navigate.

I have become a bit dangerous because I have learned to manage WordPress all by my little old self. So, I can change the themes, modify them, etc. This theme eliminates the dark blue background that made the opening page hard to read on the previous theme. I also think the color scheme is less of a distraction.

If you are wondering, the above photograph of Pemaquid Point in Maine was taken by me. One of my hobbies is photography. Of course it has little to do with lean management, but why does it matter? I had to put some picture there and you don’t want to see my face elongated across the page! And, there are enough photos of book covers, etc.

If you have any comments or suggestions, please let me know.

Thanks,

Posted in General | 4 Comments

Please Participate in a Lean Culture and Leadership Survey

Posted on June 13, 2011 by Larry Miller

The following link is to a survey on Lean Culture and Leadership Factors. The purpose of this survey is to gather data on how you perceive the success of your organization in creating lean culture and how important you feel are each of the component factors (trust, problem solving, customer focus, process improvement, motivation, etc.). The survey is anonymous and I will publish the results for the benefit of all those who participate. It will provide data on which factors are most important and the progress that those engaged in implementing lean are making on each factor.

I estimate that it will take 15 minutes to complete the survey. On the first page, there are four demographic questions (are you in manufacturing, health care; how far along are you in your lean journey, etc?). These will enable me to sort the answers to determine whether those in manufacturing perceive their culture and priorities differently than those in healthcare, services, etc. Please hit the “NEXT” button at the bottom of this page to take you to the body of the survey.

On the second page there are about sixty multiple choice questions… but not really. There is a question that asks you to evaluate how well your company is doing on a factor, and then there is a question that asks how critical do you think this factor is to the success of your lean effort. In other words, there will be a question asking how well managers engage employees in problem solving, then a question that asks you to rate how important this factor is to the success of your lean effort. Once you have done one or two questions, it will go quickly. At the end there are a couple optional open-ended questions.

I think this survey will be helpful to you by providing data on which human or cultural factors are most important to your lean implementation. You can then use this to guide your internal managers or clients. I very much appreciate your contributing to this survey that will be of benefit to everyone.

http://www.surveymonkey.com/s/8XGHCQP

 

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To Believe or To Behave: Which Comes First?

Posted on June 6, 2011 by Larry Miller

In a response to my last blog post there were several very thoughtful comments. I want to use this blog post to respond to Jay’s comment which raises a number of important issues.

Commenting on the complexity of my model of culture presented in a previous post he said:

“To illustrate this point, I rely on the following quote from C.S. Lewis’ Mere Christianity. I believe it says a great deal about what’s required to catalyze an alteration in human behavior and the related consequences…

“The rule for all of us is perfectly simple. Do not waste time bothering [determining] whether you [believe you do or must] ‘love’ your neighbour; [simply] act as if you did. As soon as we do this we find one of the great secrets. When you are behaving as if you loved someone, you will presently come to love him.”

It’s in the context of bringing about rapid and lasting culture change that I take the translation of this passage/quotation to mean that inculcating a belief in whatever behavior or attitude is desired or expected of one individual toward another need not precede the “acting or doing”. Rather, the mere act of doing often leads to a transformation of the belief system…”

Ergo, it seems most logical to me that in an organizational transformation context, where culture change is a central issue, getting employees to act in the desired manner best precedes any attempt(s) to alter their belief system (which appears at the center of your framework).”

I think this is a great observation. It is true that my model has belief systems at it’s center and one might then assume that one may need to solidify these beliefs, establish “faith” first, then expect behavior to align with that belief system.

The issue of believing first, or feeling first; or on the other hand behaving your way into a new way of feeling and believing, is a debate that goes back to Plato and Aristotle. It is a difference in view that has separated entire schools of psychology – humanism, behaviorism, etc. I will certainly not attempt to argue that one is right and the other wrong. What I will argue is that the human system, like the system of a culture, and organization, or the human body, is a complex system with constant interactions, each affecting the other. And, people have diverse responses to their environments. We do not all learn or change in the same way.

As a practical matter I think it is important for organizations to define and communicate a strong set of beliefs. That does not mean that everyone must become a true believer in those values before they start engaging in “right” behavior. I think “loving thy neighbor” is very analogous to treating customers with respect, integrity and a desire to please. If I owned the company, I would not feel the need to convince everyone, to create faith in the belief of customer service, rather I would very frankly “tell” everyone that this was a requirement of their job. This is one of those “Just-Do-It!” moments. If you do it, you will learn to appreciate the value of putting the customer first. Similarly, if you exercise, you will learn the value of exercise. If you eat well, you will learn the value of a healthy diet.

I think it is the job of the leaders in the organization to align values and behavior. Based on your values, you then define behavior or competencies for all levels of management and employees. This “competency model” should be aligned with the organization’s values. This alignment makes sense of the requirements for behavior. It also leads to consistency of behavior in the culture.

In the United States we have a defined belief system enunciated in our Constitution and Bill of Rights. But, after several hundred years, there is constant testing of the alignment between behavior and beliefs. When can the police search and seize? Are there limits to free speech? Can the government mandate buying health insurance? In a sense, the Congress and Supreme Court are like the strategy team, or “design team” in an organization seeking to define behavior and competencies, systems, structure and symbols to be aligned with the core values of the organization. Just as in our country, I think the search for this alignment in an organization is something that will be an aspect of continuous improvement forever.

This interaction between beliefs, behavior and organization is the illustration of the non-linear nature of complex systems. I agree that it is not necessary that belief precede behavior, or the reverse.

Jay also said that…

“…based on personal experience, it has been through the applied use of learning laboratories (i.e., intentionally created safe environments in which experimental learning, rapid/adaptive problem-solving, and modified behaviors can be put into effect) that rapid culture changes can be “seeded” into an organization. However, one of the keys to having such seedings take root is the ability to create and sustain a fertile environment. And maybe that’s where the complexity of your framework comes into play? It’s in the context of creating and sustaining such an environment, one that’s conducive to the desired behaviors and consequences, that I can see your framework functioning as a planning/assessment mechanism. Unless it’s clearly understood and demonstrable up front what behaviors are the desired ones and which existing ones need to be replaced and why (thereby defining a gap), it seems to me your framework alone would be rather difficult to leverage from the get-go in bringing about the desired cultural and associated behavioral changes. Your thoughts?”

What Jay is very well pointing out is the reality of how people learn. Managers and employees need a laboratory in which they can practice desired behavior without fear of ridicule. With most of my clients over the years I have assisted in the development of a top-to-bottom team process. Everyone is doing it. This makes it safe. The leadership team, middle management teams, and hourly teams, are all practicing the skills of problem solving, facilitation, process mapping, creating customer feedback loops, etc., etc. This is “programmed” and by that I mean that everyone is asked to engage in the behavior whether they believe in it or not. Then, and gradually, it becomes comfortable as they develop competence. Then they begin to see the positive results in performance. Then the managers and systems begin to reinforce the learned behavior. All of these elements need to be present for learning, or a change in the culture, to  take seed and be sustained.

Posted in Corporate Culture, Lean Culture, Organization Design and Process Improvement, Organizational Behavior Management | Tagged , , , | 10 Comments

When Small Things Make a Big Difference: Motivation by Tipping the Scales

Posted on June 2, 2011 by Larry Miller

Managing the “Balance of Consequences”

Even in a lean organization, with lean culture, you are confronted with the need to manage human behavior and performance, and address behavior problems. Sometimes old ideas, and even small ideas, can have a big impact. In every complex system, small changes can produce hugely significant consequences. Those who scoff at climate change research should be reminded that the great Ice Age resulted from only a six degree change in the average temperature in North America. Current climate chaos cannot be explained in a linear direct relationship between any two events. It can only be understood by understanding complex systems (or chaos) theory. Organization culture, like the natural environment, is a complex system in which slight changes in one sub-system can trigger changes in other sub-systems and can precipitate significant changes in outcome for the entire system.

As many of you know, I started my career working in prisons in North Carolina where I implemented a “token economy”, actually a checking economy, behind prison walls. This was an exercise in “behaviorism,” behavior modification, or organizational behavior management. One of the core beliefs of behaviorists is that “the data speaks”, or as B. F. Skinner said, “the pigeon is never wrong.” So, in my prison we kept data on almost every type of inmate and guard behavior we thought might be influenced by the implementation of our system of positive reinforcement for good behavior. I actually employed a college student to sit in the dormitories at night and record inmate-to-inmate and inmate-to-guard interactions, categorizing them into positive and negative, who initiated them, etc.

The Balance of Consequences

The result of this data was to conclude that while behavior in the work area had improved as a result of new forms of positive reinforcement for good work behavior, behavior in the dormitories had not improved. This was logical since the change in consequences to behavior was in the work areas. The good behavior did not generalize to the dormitories and interaction with guards. So… we came up with a scheme to cause the guards to interact more positively with the inmates. We gave them “bonus points” to hand out for agreed upon good behavior of inmates. These behaviors included helping other inmates; studying at night; cleaning the area, etc. It was a small thing. But, it tipped the “balance of consequences” for the guards. It resulted in a huge change in the behavior of both inmates and guards. Not only did the guards initiate more positive interactions, the inmates initiates more positive interactions with both guards and other inmates. In other words, the degree to which inmates were managing the guard’s behavior decreased and the degree to which the guards were managing inmate behavior increased.

The idea of a balance of consequences is that for every decision or behavior, there are likely to be consequences, both positive and negative, on both sides of the equation. Deciding to take job A or to take job B involves assessing the balance of consequences, potential rewards and potential negative events for either choice. It doesn’t require shifting all of the weight in one direction, it only requires a slight shift in consequences to tip the teeter-totter.

One reality of most work setting is that the first level of management works very closely with the work force. The front line supervisor or team leader is closely tied to the social system of the first level workers. It is natural that they want to get along with them, even seek there approval. It was clear in the prison that most guards had good relationships with most inmates and they were reluctant to punish bad behavior, thereby causing negative consequences that would come back to them. They “got-along” with the inmates by ignoring some behavior that they should not have ignored. Given the realities of the system, they were intelligently managing their relationships, those that mattered in their day-to-day world.

Tipping the Scales

Managers do the same. Often their behavior is managed upward. Employees have many ways of displaying approval and disapproval of the managers behavior and it is natural that they seek approval. This, however, can result in the front line manager ignoring or letting pass slow or sloppy work.

I am reminded of a research project done some years ago in a classroom. The researcher instructed the children, in the teachers absence, to “attend” to the teacher (give eye contact, lean forward, nod their heads) when the teacher was on the left side of the room, and to ignore the teacher when she was on the right side of the room. The classroom was video taped before and after and, not surprisingly, the teacher “learned” to stand to the left side of the classroom the majority of the day. The researcher then reversed the procedure and, again, the teacher responded by modifying her behavior to gain the attention of the students. To some degree, every manager is like that teacher, seeking approval from those they manage.

But, what happens when the team members approve of the leader ignoring their poor or slow work? The question then comes, how do you create less dependence on the approval of the workforce, and more willingness on the part of the first level leader to both recognize good performance and to respond to poor performance? Here are a couple possibilities. I would like to hear your ideas:

1. Adherence to standards and standard work: In a traditional assembly line factory there are generally work standards and standard work. An employee is expected to produce X amount by doing Y tasks in the specified way. There are both standard work outputs and there are standardized tasks. Leader standard work generally includes the tasks of the leader to measure, observe and provide feedback on the degree of conformance to these standards. However, most work today is not of this assembly line or routine factory type. For example, the maintenance function in manufacturing involves a high degree of variability. How long does it take to fix different equipment under different conditions? It is often non-standard. In many cases it is possible for the team leader to use his or her judgment to determine how long repairing equipment should take. Getting them to assert that judgment in the face of pressure from employees is the problem.

2. Creating Connections to Larger Outcomes: We are often not able to see the direct connection between our work and larger outcomes for the organization. If I arrive to work on time, will the company be more profitable and will my job security increase? Probably, but the connections are too remove. Creating “line-of-sight” is one of management’s jobs. In other words, if I perform in X manner, that contributes to Y performance of the larger group. We have to make work important. A good example is the hospital worker who cleans halls and rooms. You can simply call him a “maintenance man.” Or, you can define his job as “reducing the risk of infection for patients.” He is part of the team, one whose work contributes to successful health outcomes for patients. This is similar to Disney’s practices of defining every employee at their theme parks as “members of the cast.” Maids cleaning room are taught that how they clean, how the talk to guests, is part of the total entertainment experience. They are cast members. These definitions help the employee understand the “line-of-sight” from their work to the more significant organization outcomes. What are some other ways of creating this “line-of-sight?”

3. Tip the Balance-of-Consequences for the Team Leader: You will never remove the potential of employees managing upward. Sometimes that is a positive force. But, sometimes that works against taking action against poor performers. Remember the balance of consequences. You don’t have to shift all of the consequences in on direction. You simply have to make a slight shift that tips the balance. How are team leaders rewarded for the good performance of their teams? If there is strong positive reinforcement for the manager, he or she is more likely to take action to enhance the performance of the entire team. You have to make performance matter for both first level employees and first level team leaders.

Ask yourself this question: “If the performance of the team increases, what is the so-what for the leader? Why does it matter for the leader?” And, what are the consequences if performance decreases? If there are no significant consequences for the team leader, then it is likely that the consequences of team member approval will outweigh the need to act on poor performance.

4. Tip the Balance-of-Consequences for the Entire Team: Never under estimate the power of peer approval or pressure. Team members often perform to please other team members. What happens if the entire team improves its performance? What are the consequences? How can you increase the positive consequences through recognition, incentives, opportunities, etc., for the entire team? Or, are there currently forms of reinforcement for the team slowing down their work? How can the system be changed to eliminate this reinforcement for poor performance? Here are just a few ideas for tipping the scales:

  • How is team performance measured so that records are set? It is always fun to compete for and set new records for any performance. This is a strong bias in our culture. When you watch any sport, think about how often records are discussed, competed for, and celebrated. How often does this happen at work? Why not?
  • Is there a team of the week, month or year award? How can you celebrate outstanding team performance?
  • Is there an award for team performance improvement or cost savings ideas?
  • Is there a system by which one team, who may be the customer of another internal team, can positively recognize the performance of that team? For example, if maintenance work is completed rapidly, can the the team who uses the equipment recognize the maintenance team? Can the maintenance team recognize line teams for doing preventive maintenance and causing fewer repairs?

What have you found to be effective in tipping the balance of consequences, the motivation for first level managers, so that they will confront poor performance and recognize the good performance of their front line teams? It would be useful to compile a list of things that have worked in one place and might then be tried in another.

Most important, experiment! Be the scientist, trying out different things until you find the system that works best in your organization. After all they are all different.

Managing the culture is the art of managing a complex system, managing through chaos. Analyzing human behavior and motivation is a key skill for all managers. But, no where is it more essential than in that first level relationship between team leaders and team members.

Posted in Corporate Culture, Lean Culture, Lean Manufacturing, Organization Design and Process Improvement, Organizational Behavior Management, Team Development | 14 Comments

Company Wide Lean Implementation

Posted on April 2, 2011 by Larry Miller

Lean Management of a Dispersed Organization

Many senior executives have struggled and failed to gain the advantage of a multi-site or dispersed organization. Instead of capitalizing on the potential value of multiple sites for learning, it seems that too often the same lessons have to be learned over and over again without any shared learning. This is a failure of senior management. In a lean organization, managing learning and improvement is the primary function of senior managers in addition to deploying capital.

Some years ago there was a case study article written about a very successful Sherwin-Williams paint plant that was a pioneer in implementing self-managed work teams in a manufacturing plant. We used to use this case study in our training. I was speaking at one of Norman Bodek’s Productivity conferences and I mentioned this case. After my talk three individuals who were in the audience came up to me. Each wore “Sherwin-Williams” badge. They also wore a puzzled look on their faces. They were surprised at the mention of this case study. They had never heard this case or about any such a success story in one of their plants.

This drives me crazy! Every experiment at improvement is just that – an experiment. It requires an investment. Whether the lessons learned are positive or negative, the entire organization should reap the benefits of those lessons. One of the core principles of the Toyota Production System is experimentation. Continuous improvement requires on-going experimentation and learning from those experiments. Too often we experiment and then hide the lessons learned.

Managing learning is one challenge of senior managers. Another challenge is balancing the need for developing a shared culture across the company and for allowing necessary local adaptation to diverse cultures and work processes. So, what does the leader of a global dispersed organization do to manage the implementation of lean and gain its advantages in the most economic means?

Let’s pretend that I am the CEO, COO or VP of Manufacturing for a large consumer products company with about thirty manufacturing plants and distribution centers across Europe, North and South America, as well as China and Japan. I am newly appointed and I want to introduce myself to the management of these thirty plants. In a face-to-face meeting, and in writing, I would say something like the following:

“As the newly appointed leader of the global manufacturing and distribution organization, you are probably wondering what my expectations are. I think it is important that I set clear expectations. So, here are some of the things I expect and that I believe in.

Continuous improvement: First, and perhaps most important, I believe that everyone, and that includes me, you, and everyone in your organizations, must be engaged in continuous improvement. We all must improve customer service, eliminate waste, and improve quality. None of us are there. None of us have achieved our potential. The important thing is that we are working hard to improve. We all should possess a “creative dissatisfaction” that drives us to the next level. So, when I visit your locations, which I intend to do often, I want to see a process of continuous improvement that involves every member of your organization.

Scorekeeping: Lean manufacturing requires managing by the facts and that means keeping score. I will have a balanced scorecard for the organization. This will include key financial measures, process improvement measures (such as reduction in in-process inventory), learning and development and customer satisfaction. Each location should have their own balanced scorecard with these same categories of measures.

Teamwork and Engagement: The world’s greatest experts are “on-the-spot”, where the core work gets done. It is your job to help them be expert. I believe that every frontline employee should be working on a team to improve the processes for which they are responsible. Your job is to enable them to be expert and to solve problems.

Experiment, and then experiment again: Most learning and improvement comes from simply trying things and measuring the results. When I visit you location I would like to see and learn from your experiments. There is no shame in a failed experiment. There is only shame in failing to experiment and learn from that experiment.

Standard work: When you try something and learn, you standardize what works. Work standards are not set in stone. They are the best way we know how to do something today. This is true for managers as well as front-line employees. I will have my own standard work and I will share this with you. I want to see your standard work. Every manager should have standard work that includes walks through the location, observations of safety practices, charts and graphs, etc.

Visual Display: No sport ever garnered a lot of fans without a scoreboard. No team ever achieved excellence without seeing their data every day, if not every minute. Every team, in every location, should have a visual display board with their key data measures graphed and up-to-date, process maps, problem solving visualized, and safety information. Visual displays will be standard practice in all of our locations.

Celebrate Success: One principle that I know leads to success is the simple idea of recognizing and rewarding good performance. This can be done in a hundred different ways. I would like to know how you are celebrating your heroes, those who set records, innovate, and contribute to our shared success. Remember that Generals make heroes of the common soldier whose actions on the battlefield determine the victory.

Interruption Free: I hate “walls”, fiefdoms, or the failure to share information or help your fellow team members. From the customer’s point of view, we are just one organization, one brand. If the product has a defect or is too expensive, they do not care which piece of the organization is responsible. I am responsible. You are responsible. We are all responsible for sharing information and lessons learned through the walls of the organization.

“In order to make this real, I plan to have a global leadership conference every six months. But, the first year, I will have it every quarter to speed the process. Every one of you will come prepared as both an expert teacher, and as a humble student. I want you to come with a two to five page description of what you are doing to implement a high performing lean organization and culture. I want this to include your analysis of what you have learned in your efforts. I want to hear what has worked and what has not worked. This is not a competition to impress me or anyone else. It is forum for learning. Your failures, or negative results, are important because they can save time and money on the part of others. Of course, your positive results can also be copied. Each of you will make a short presentation and answer questions from your “students.”  We are all going to “go-to-school” on the lessons that each of you is learning. We will all get smarter in the process.

“Please keep in mind that it isn’t where you are that is important. It is where you are going and your efforts to get there. This is what I am looking for and this is what you can expect from me. Oh, by the way, all of the above is just as relevant to our staff organizations as it is to the line manufacturing and distribution organizations.”

So, that is what I would propose as a beginning to implementing lean across a dispersed organization. Then, I would search for and develop the tools that would aid the organization in that implementation. But, as the leader, I would see my primary role as “Chief Learning Officer.” I would be very interested to hear what you would do in addition, or instead, of the above. What have you seen lead to success across a dispersed organization?

Posted in Corporate Culture, leadership, Lean Culture, lean management, Lean Manufacturing, Organization Design and Process Improvement | 6 Comments

Sustaining Lean – The Power of Beliefs

Posted on March 11, 2011 by Larry Miller

How to Sustain Lean Culture and Practices

This past week I was at one of my favorite clients, a Merck pharmaceutical plant in Pennsylvania. They have been on the lean journey for more than sixteen years, long before anyone called it “lean.” One issue that they are now addressing is the issue of sustainability. Every company faces this issue sooner or later. In our Western culture we are used to jumping on issues, methods or fads for a period of time, going through a training process, and then declaring ourselves DONE!

Of course, there is great satisfaction in being “done.” But, “done” is a direct contradiction to continuous improvement and lean is continuous improvement. Honda and Toyota are still seeking the next level of improvement. They are not done.

To address the sustainability of the lean process we are looking at this model that defines the different components of a culture. At the core is the system of beliefs among the members of the organization. On the outside is the external environment with changes in technology, economics and other trends to which every company must adapt. The sustainability of any system is based on both its ability to adapt to a changing environment and its ability to stay on the course of its core values.

A key issue faced by this client is how to maintain a system of beliefs that encourages and motivates its members to engaged in the work of continuous improvement.

Promoting or maintaining beliefs or a value system of an organization is a key function of leadership. If you were to recommend actions to leaders, or the organization in general, what would you recommend?

Here are a few actions that leaders can take:

1. Promote Creative Dissatisfaction:

In behavioral psychology it is understood that a level of dissatisfaction is required for motivation. In other words you can satiate a behavior. Someone may be motivated to work for ice cream, for example. If you give someone enough ice cream, as much as they might love ice cream, after a period of time of gorging themselves, they will yell “Enough!” They will achieve a state of satiation. If we are satisfied with the state of ourselves or our company, we are likely to slow down our improvement efforts. Some level of dissatisfaction is required.

There is always a gap between where we are and where we could be. No matter how smart, how successful we are, there is always a higher level of achievement. To the degree that we are aware of the gap between current and potential state, we are not satisfied. We become creatively dissatisfied. In other words we have a drive to improve and move toward the better condition.

Leaders have to do two seemingly contradictory things at the same time. They must reinforce the good work and success of improvement efforts. At the same time, they have to raise the bar, and point to the gap between where we are and where we could be and state clearly that we will close that gap by practicing our core beliefs.

2. Learn from Church – The Need and Power of Repetition:

I was with the president of a major transportation company and we were discussing his role in managing the culture. He said that he had communicate the desired culture and values more than once and didn’t understand why employees couldn’t “get it.” Without thinking deeply, I spontaneously asked, “How often do you go to church?” The moment it came out of my mouth I realized it was probably a dumb thing to say. He looked stunned also.

Every religion, in every part of the globe, throughout all human history, has had a Sunday church service. It may not have been Sunday and it may have been in a synagogue, mosque, tent, or home. But, every religion has a regular drum beat, a regular meeting to remind people of their core values and “right” behavior. God must know that it takes us about seven days to forget what is important. If every religion does this same thing, it must say something about our human nature. Why would it be different in large or small organizations?

As bothersome as it may be to leaders, beating the drum, conducting regular “church services” is your job. It is your job to frequently and regularly remind your followers that putting the customer first is a core value; or that continuous improvement is a core value. There are a hundred ways this can be done, through public meetings, company newsletters or video broadcasts, you can communicate what is important. If we can’t remember the Ten Commandments (can you?) why do you think employees will remember your ten core values?

3. I Once Was Lost, But Now I am Found – The Power of Testimony

I know some readers may cringe at this, but think about it. In many churches, and in other religions, there is a practice of “testifying.” I was blind, but now I see. I sinned, but now I am redeemed. Why was this important? What about it worked?

If you have studied social learning theories, particularly of Albert Bandura, you know that there is a great deal of research about modeling, learning from the behavior and consequences of others. If we see that someone was in a bad situation, then they did something to change, then they experienced success and happiness, we learn from that sequence and we are more likely to be motivated to do the same thing. This is what it means to be a model. And it is why the preacher called upon the person who was once the town drunk to stand and testify to the evils of his ways and his new found life. If he can do it, I can do it.

How can this apply to sustain lean?

At my Merck client they have regular “face-to-face” gatherings at which the plant manager addresses and updates employees. This is a good occasion to promote the core beliefs of lean. As we formed the team structure around work processes, we found that there were a number of administrative people who did not fit on natural work teams. So, they were formed into an admin team. At first, they didn’t understand why they were a team, or how scorecards, process mapping or others lean methods applied to them. However, they discovered opportunities to improve processes and they did. At a recent face-to-face their story was told and they were recognized for their effort and success.

Other teams have wondered whether there was any real contribution they could make. This example, this testimony, is motivating to the doubting Thomases sitting in their pews in the back row.

4. Define the Game – Declare the Heroes and Heroines:

Everyone is trying to figure out the rules of the game and what will define winning in their situation. As a leader in your organization it is your job to define the rules of the game. But, more important it is your job to recognize, celebrate, shout about, the winners or heroes of the game.

Can you imagine the broadcast of a Super Bowl and it comes to end with the announcers pointing to the score and saying, “Well that’s it folks.” That wouldn’t be very entertaining or motivating. The broadcast crew is always ready with camera and microphones to immediately interview the most valuable player, someone who set a record, or scored the winning touchdown. We want to see their faces. We want to hear from them what happened and how they experienced it. We want to share in their emotions. Without that, its boring!

In your plant or your company, who are the heroes? Who set a record recently? Who won the game? How were they celebrated? Believe it or not, you are the broadcaster. You are the producer and announcer of the show. It is your job to celebrate the winners and put them on TV for everyone to see. If there is no celebration of heroes, do not expect heroic efforts from your people.

We all learn vicariously. We learn from the success and celebration of others. It is the job of leadership to make it matter for all employees. This reinforces the core beliefs of the organization.

How have you sustained lean by promoting the core beliefs in your organization? What have your leaders found to be successful (or not)?

 

Posted in Corporate Culture, leadership, Lean Culture, lean management, Lean Manufacturing, Organization Design and Process Improvement | Tagged , , , , | 12 Comments

Operations Management Review

Posted on March 9, 2011 by Larry Miller

Jay Heizer and Barry Render, both professors of Operations Management, publish the blog Jay and Barry’s OM Blog. It is a good source of continuous operations management knowledge and source information.

They were kind enough to post this review of my new book:

Professor Jay Heizer

“For those faculty with some background in management theory, leadership, and organization behavior, Larry Miller’s new book, Lean Culture, The Leader’s Guide, is an excellent refresher in a very applied way…. that is, how to build lean organizations. For faculty (and students) with limited exposure to these topics, it is a great survey book.  The strong applied nature of the book makes it good supplemental reading regardless of background.  Miller has done a great job of tying management literature to lean literature. One can tell from the presentation that Miller has fought the culture wars necessary to bring about organizational change.  And successful implementation of lean often means fighting those wars. Miller, has indeed, provided the ‘leader’s guide’ for the battle.

“The book is an easy read and full of great figures, many of which focus on lean topics, while others deal with management and behavioral issues.  The lean topics of his text are excellent reinforcement of material covered in the Heizer/Render text. Supplementing your course by adding the structure and applied approach of Lean Culture, either as outside reading or via lectures, may help students identify  what is to be done and how to do it. There is no way to be an effective manager or a change agent as we seek lean organizations without understanding leadership, organization culture, and the tools of lean. Here is the plan.

“I think you will find that the book really is  The Leader’s Guide for implementing lean and that it will help you and your students make lean work.”

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Beyond Tahrir Square: Managing Large Scale Change

Posted on February 19, 2011 by Larry Miller

In my previous post on this subject I suggested lessons from the Egyptian revolution to the world of corporate leadership. Now I do the reverse.

I would like to address the ruling military officers of Egypt and the other leaders who are now finding themselves in the midst of turmoil in the Middle East. They all are confronted with the problem of “managing large scale change.” This is not a new thing. It is also not something military men are likely to be good at because it is not about command. It is about the psychology of democracy. It is about creating a feeling of ownership and participation by a very large number of people. Many company and countries have been through this before. So… here is an open letter to the Generals of Egypt, and to all others to whom it may apply.

Dear Generals of Egypt: What Now?

Your country has passed through the beginning phase of a large scale change in culture and management practices – we sometimes call this “creative destruction.” Yes, I know. The youth and other protesters in the square think they did the hard part. But, they actually did the easy part and left you with the great challenge of creating a new system, a new culture. It won’t feel as exhilarating as marching and chanting in the square.

As it happens, I have been involved in changing the culture of large corporations over the past thirty-five years. I’ve messed it up quite a few times and succeeded at other times. In doing so, I have learned a few lessons that might prove useful. I offer them for your consideration.

1.       Communicate, Communicate, Communicate

Did I repeat myself? I said communicate… often. It will seem an unnecessary waste of time since you have serious work to do. They should be more patient, shouldn’t they? But, patience is a rare commodity when there is the excitement of major change. Your followers will want to know what the plan is. Where are we going? How are we going to get there? Where are we in the process now? Communicate by television, radio, newspapers, and… have you heard of Facebook and Twitter? Use them all! I hear that some of your citizens log in occasionally. Those who gain their news from the Internet expect to hear something new every few days. It doesn’t seem that it should be your problem. But, it is!

2.       Engage as Many as Possible – Let them Own It!

This will be very difficult for any well trained and rational military officer. You know how to make decisions. That is why you were promoted. So, why shouldn’t you make the decisions? The answer is simple. The citizens won’t just obey commands like good soldiers in an army. They think it is their revolution. They made it happen. Now, they want to participate.

I know this will seem strange advice. But, I suggest you form participative conferences in every village, in every district of city. Have someone facilitate. Have someone take notes (not on who said what, but on the recommendations that come forth). Believe it or not, I worked with one of the largest oil companies and helped them design their organization. They involved thousands of employees, gaining their input into the design.  Did they all know the right answers? No. But, by contributing, they felt that the final outcome was in some measure their own work. And because of this they were eager to implement the final design.

Your problem will be less designing the ideal system of governance, than gaining acceptance, commitment, and ownership of that system by the people. The “mess” of involving thousands of people will pay off as they agree to adhere to the final result.

3.       Think Whole-Systems: Everything Will Interact With Everything Else

This sounds like something complicated, but it is really very simple. Organizations, and countries, are like the human body. The larger system is comprised of sub-systems. For example, something going on in the brain may affect the stomach. You might be experiencing this now. In other words the human body is a system, made up of several different “sub-systems.” The digestive system, the cardio-vascular system, the nervous system are all different, yet all constantly interacting with one another. The human body cannot function in the best way unless all of the sub-systems are healthy and assisting one another.

Similarly, this thing we call democracy is a system comprised of a lot of different sub-systems. Of course, we think about the election system. Yet, this is only one sub-system of the whole-system, the culture of a democratic nation. I know this is very complicated. But, you must align all of the subsystem to the same principles if they are going to function well.

What principles? You can start with freedom of expression, freedom of religion, freedom of the press, and freedom from injustice. I am sure you can think of others, but those are good ones to start with. Now, the election process must conform to these principles. But so to must the education system, the communications systems of the press, television and Internet. The justice system of the police and courts must conform to the same principles. Business and commerce will thrive under these principles. But, you must seek alignment of your systems. You cannot have free elections, democracy, and not have a system of free press and free expression. You cannot have either of these in the absence of a justice system that operates on similar principles.

So, building this “whole-system” is a big job. It takes time in large companies. It will take a long time in your country. But, my recommendation is that you form a “steering team” to oversee the entire process of designing the new Egypt. Then this steering team can appoint “design teams” to design each of the sub-systems. You can involve a lot of very smart people in this process. And, communicating this process to your citizens, making it transparent, will encourage them. This will create trust between you and your citizens, and there is nothing more important to a leader than gaining and keeping this trust.

4. Introduce Continuous Improvement

The people of Egypt have proven that they are not children. They have proven that they have a great deal of understanding about how the world really works. It is a childish idea, that you or anyone, can design the one best and right way that things should be done in the future. My own United States Constitution was designed for continuous improvement, not for a one right final solution. Remember that the way it was originally written did not include women as full citizens and denied full rights as human beings to a large portion of our population. In truth, the Founding Fathers didn’t get it right the first time. But, they assumed that it would be improved and provided the mechanism for that improvement.

What your people want from you now, is not the final solution. They want a starting point and they want the ability to gradually improve your system of governance as people mature and gain greater understanding. You can give them this.

Well, dear generals, these are just a few ideas that have worked well in large corporations. These are essential ideas to creating lean management and culture, I think they will work in Egypt, too.

Most Sincerely,

Lawrence M. Miller

Posted in Corporate Culture, General, leadership, Lean Culture, lean management, Organization Design and Process Improvement, Politics | Tagged , , , , | Leave a comment

Publication Announcement: Lean Culture – The Leader’s Guide now available on Amazon

Posted on February 16, 2011 by Larry Miller

I am pleased to announce that Lean Culture – The Leader’s Guide is now published and available on Amazon.

From the Back Cover:

Lean Culture – The Leader’s Guide provides a road map to implementing lean culture within your organization. This guide represents the knowledge gained through thirty-five years of field experience implementing large scale change in the culture of organizations. This guide presents the principles and process of changing organization culture to capitalize on the competitive advantages of lean.

Lean culture is a lot more than the tools and techniques of lean. It is the framework of values, daily habits and relationships within which those techniques can succeed and be sustained. Without the support of the culture, the techniques often fail. The sustainable value is in the culture and management process in which continuous improvement becomes a daily habit at every level. The purpose of this book is to help you build this culture.

The Leader’s Guide will show you how to…

… Instill the habits, values and management process of daily life in a lean organization.
…Engage all members of the organization, from top-to-bottom, in a consistent and organized process of improvement.
…Be the change! Model the behavior you expect from others.
…Align systems, structure, skills, style  and symbols to the new culture.

The Preface:

Lean management and culture has become the standard setting model of modern management. However, effective management did not begin and will not end with what we now think of as lean. Many previous methods and theories have contributed to today’s best practices. If you are managing a business you are too busy to sort out all the hype around various techniques and buzz words. I have tried to help by integrating best practices into a single unified process that deals with both the habits of daily life in the organization and a more strategic view of developing organizational capabilities.

When Shoichiro Irimajiri came to the United States to lead the startup of Honda America Manufacturing in Marysville, Ohio he happened to buy a book in the Tokyo airport before his flight. This book, American Spirit: Visions of a New Corporate Culture, proposed that there were eight cultural principles inherent in the American culture upon which a new corporate culture could be build. “Mr. Iri”, as Irimajiri would come to be known, thought that “If this is what Americans believe, we can succeed.” This book was then used in the training of all of Honda’s managers for some time. Scott Whitlock, the Executive Vice President of Honda America Manufacturing, taught the course on the Honda Way. He would periodically call me to clarify some obscure point in my book that I had completely forgotten about!

Honda's Shoichiro Irimijiri

Several times I went to Honda to study their culture and speak to their managers and suppliers. What was clear was that Honda was not simply copying what they had done in Japan. They were not focused on any one method or technique. They were creative pragmatists. They were carefully adapting American cultural principles to their own and synthesizing the best of both worlds. They had a firm dedication to principles and a belief that those principles had to be lived by all associates at every level of the organization. Mr. Iri was himself a model of the behavior and the culture he was trying to build. They were just as focused on creating the optimum social system as they were the technical system or work flow. The leadership he provided was not imitative, but creative. It was not something delegated to others, but was his personal mission.

What I am proposing to you in this book is that you adopt a similar approach. Respect and learn from what others have done. Model the principles and behavior you seek in others – be the change! And, be creative. Thoughtfully design the organizational systems and structures, social and technical, which support and reinforce your desired culture. This is the hard work of lean leadership.

This book is divided into two parts: Part One is a strategic process to align the organization to lean culture. Think of it this way – a culture of democracy cannot exist without the systems and structures that enable democracy. Most of the systems and structures of your organization were created in a previous culture, based on that culture’s assumptions and values. They reinforce and sustain the old culture, not the new one. They must be reconsidered and aligned to reinforce the behavior you want now and in the future. Part One provides an outline of a process to align your organization to lean culture. This is the job of leaders!

Part Two is about “being the change.” Lean is a culture of continuous improvement at every level of the organization. If the daily habits of continuous improvement are to be instituted as the normal way of life in your organization, you must be the change, model the behavior. The importance of modeling the behavior you desire cannot be overemphasized. Many lean implementations focus on techniques on the shop floor and fail to address the behavior and daily practices of managers. This is the primary cause of failure.

Part Two is drawn from my training manual, Lean Team Management and presents the core material on building an effective lean management team without the accompanying exercises and some of the skill building material.

I have also included two additional chapters that present what I believe to be useful perspectives on strategic leadership.

Posted in Corporate Culture, General, Lean Culture, lean management, Lean Manufacturing | 2 Comments

Five Leadership Lessons from Tahrir Square

Posted on February 12, 2011 by Larry Miller

It is impossible to watch the dramatic events in Egypt without meditating on the lessons for leaders, whether of countries or companies. I would like to share five leadership lessons that stand out and should not be ignored by leaders.

1. The Greater the Control, The Greater the Tendency to Instability

It is a paradox. Mubarak maintained every form of control he could imagine over his opposition and his people. But the corollary to this absolute control is that this creates a closed system, one that failed to process feedback from its environment and this led to the ultimate instability.

This is a “whole-system” problem.  In my previous blog post I present a whole-system model that includes the internal environment, the extended environment and the external environment. Improvement comes from the feedback loops and the process of adaptation from these environments. Mubarak’s internal environment was comprised of his inner circle of trusted associates. His extended environment was the Interior Ministry and Army. The external environment was the mass of Egyptian people.

Companies expect to control, and therefore process feedback, within the internal environment. They see that as their job. In lean manufacturing, the walls between the internal and extended environment (suppliers, partners)  become extremely porous, almost non-existent.

Some time ago I was at the Honda Marysville plant and we then went to visit the Stanley plant that supplies headlight and taillight assemblies to Honda. Deliveries were made every two hours. There were “two hour piles” or inventory. Honda engineers were in the Stanley plant every day! The feedback from one to another was measured in minutes. Although a different legal entity, they acted as one organism. The more rapid the inventory turnover cycle, the more rapid must be the feedback loop, or the more “open” must be the system.

What often sinks companies (and countries!) is the failure to create “porous” walls, high rates of feedback and response to the external environment. The leaders are not reading Facebook!

There is a social law: The more successful, secure or dominant the organism (person, company or country) the higher the wall grows between it and it’s environment. The more dominant a leader like Mubarak, the less he felt a need to listen, respond, or respect those outside of his dominant circle. He wasn’t reading Facebook and didn’t take seriously the calls for reform. It is the illness of arrogance. Arrogance is the greatest enemy of learning and quality. The more arrogant, the less responsive to the external environment. History has proven this over and over again with the downfall of once great companies and countries.

2. Don’t Underestimate the Power Of Self-Organization

Those in power tend to believe that their followers will be lost without their guidance and control. Tahrir Square over the past weeks has been an incredible demonstration of the power of “self-organization.” The protesters entered Tahrir Square with no apparent leader, no organization, and no assigned responsibilities. But, given a common purpose, they organized themselves. They formed organization and took responsibility for checking those who entered the square to assure they weren’t carrying weapons. They organized sanitation. They organized medical services. They organized security and protection within the square. The developed a complex and highly effective system of communication. They were highly self-organized and this organization, done with dignity and restraint, set an example that could not be ignored. They did not elect formal leaders and no one sought to assume the role of leader. They acted with incredible maturity. And, most important, their organization was focused on clear goals and achieved those goals.

The power of self-organization is present in every organization. It is too often dismissed as a chaotic disruption to the formal lines of authority. Those who are “on-the-spot,” whether in a factory, a school, or on the streets, when empowered to solve problems most often have the capacity to self-organize. Social media, or networked intelligence, is an enabler of self-organization. Within companies we need to encourage the power of self-organization rather than fear its disruption.

3. The Worst Speech in the History of the World!

As a student and practitioner of public speaking I have attempted to learn from effective political speeches. No leader should underestimate the potential influence of an effective public presentation. There is much to be learned from Mubarak’s disastrous speech to the nation the night before his final resignation.

The demonstrators had been joyously celebrating what they believed would be his final resignation. They were horribly disappointed. Not only did he not resign, but his speech talked down to his “children” in the most condescending tone. He appeared not to understand that it was families, doctors, lawyers, workers, as well as students who had taken to Tahrir Square to protest his rule. They were tired of being treated and spoken to as if they were his children.

Mubarak’s speech was about his own dignity, his own self-importance. His speech displayed no recognition or empathy for the concerns of his followers. This is when followers cease to follow. Leaders lead by creating a sense of shared purpose, shared values and common vision that can inspire their followers. Leader’s never motivate followers by talking down to them, by expressing their own self-importance. Leaders lead by expressing empathy and creating bonds of unity with their followers. To the degree that you fail at this task, you fail as a leader.

4. Tipping Points Emerge at the Speed of the Internet

The current revolutions in the Middle East are perfect examples of tipping points. Sentiments and habits change at first as small minority views, dismissed and rejected. They slowly gain adherents. And suddenly, they have sufficient momentum to tip over the old order and create a new one.

The Egyptian revolution was in the making for thirty years. But, the power of Facebook, as Google executive Wael Ghonim has explained, enabled fifty to a hundred thousand Egyptians to collaborate instantaneously and form a consensus to action. The power of the Internet has never been demonstrated more clearly.

Every organization survives by its ability to adapt to change in the external environment. The ability to hear, to sense, to respond and adapt to changes taking place, only to be seen on the Internet, will determine your ability to survive the next tipping point in your marketplace.

5. In Purpose there is Unity; In Unity there is Power

For me, the most moving picture of all pictures coming from Tahrir Square was the picture of the mass of Muslims bowed down in daily prayer. But, it wasn’t those in prayer that moved me. Surrounding those bowed in prayer was a circle of men holding arms and facing outward, protecting the worshipers from attack. Who were these defenders? They were Christians! What more can one say?

Never underestimate the power of purpose to unite people in a common pursuit. No single group could have succeeded in this revolution. It was the power to unite diverse people in common purpose that tore down the walls of dictatorial authority. That power is latent in every organization if leaders would only call upon it.

Posted in Corporate Culture, General, leadership, Lean Culture, lean management | Tagged , , , , | 16 Comments