Tuesday, October 4, 2016

Burning Toast: American Health System Style

Democrats and Republicans have created a health care system in the USA over the last 40 years that “burns toast” at an alarming rate. As the symptoms of their health care system are displayed they call in people to blame for burning toast.

Their participation in the “you burn, I’ll scrape” system is even worse than the normal burning then scraping process. They create a bad system over decades and ignore the burnt toast just telling people to put up with it. And when some burnt toast can’t be ignored any longer they then blame individuals for each piece of burnt toast.

They demand that those they bring before them to blame, scrape off the burnt toast. And they act shocked that the toaster burns toast. That is the same toaster they designed and maintain at the behest of those benefiting from burnt toast continues to burn toast.

We need to fix the decades old broken toaster that the Democrats and Republicans built and have maintained. Dr. Deming called excessive healthcare costs a deadly disease decades ago yet Democrats and Republicans allowed it to continue harming us year after year and decade after decade.

We don’t need distractions blaming a few individual for what the two parties have created and maintained for decades. We need leaders to address the real issues and stop the distraction that those benefiting from the current system want to continue to see from those in Washington.

You don’t fix the system if all you do is blame individuals for each piece of burnt toast. Fixing blame on each piece of burnt toast is exactly what those that have continued to make sure the system is designed to continually burn toast love to see. It is a good way to make sure the fixes needed to the design of the toaster are not addressed. Both political parties have done well by those they receive payments from to ensure that the current toaster isn’t changed.

For decades the data shows the USA health care system costs are nearly double that of other rich countries with no better results. And we are not comparing to some perfect ideal, those efforts we compare to need much improvement themselves. So how bad much the USA health care system be to cost nearly twice as much as those systems that have plenty of room for improvement themselves?

Related: EpiPen Maker Also Hiked Prices on a Slew of Other MedicationsUSA Health-Care System Ranks 50th out of 55 CountriesDrug Prices in the USA, a system continually burning toast (2005)USA Heath Care System Needs Reform (2009)2015 Health Care Price Report – Costs in the USA and Elsewhere


from Curious Cat Management Improvement Blog http://management.curiouscatblog.net/2016/10/04/burning-toast-american-health-system-style/

Thursday, September 29, 2016

Critique of “Dealing with Lean’s Crazy Relatives”

What follows is a critique of “Dealing with Lean’s Crazy Relatives” by James P. Womack published on Planet Lean, 26 September 2016 (Note: bold text is in the original article):

Dealing with Lean’s Crazy Relatives

Comment: Disrespectful title. Blame. Diminishes the important work of great contributors to the development of America, the creation of the discipline of industrial engineering, the science of process improvement, and industrial management. It ignores the fact that Taylor and Ford’s work were necessary steps on the way to Toyota’s Production System (but not Lean).

WOMACK’S YOKOTEN – The author reflects on how the legacy of Taylor and Ford still poses challenges to the lean movement, and why critics should move past a simplistic view of lean as mere standardization.

Comment: It is unlikely that critics will move past the legacy of Taylor and Ford. They are convenient excuses to assure the status quo is maintained.

Every family has a few members who are eccentric and problematic – like the proverbial crazy uncle locked in the attic. While this makes for fun conversations at family events – provided these folks don’t attend! – crazy relatives can become a real problem if their antics reflect on the whole family. In the lean movement my two candidates for crazy relatives are Frederick Taylor and Henry Ford, who continue to cause us trouble 101 and 69 years after passing from this life.

Comment: Poor analogy; mental health nothing to joke about. Taylor and Ford are not the ones causing trouble to the Lean movement. There are systemic contributors to the broad-based misunderstanding of Lean. These span social, economic, political, and historical factors, as I explained in Moving Forward Faster. The ills of Lean cannot rightly be attributed to two people, Taylor and Ford, as it is managers who struggle to put Lean (or any other idea) into practice, driven by their preconceptions which they do not question or are unable to destroy.

Frederick Taylor, most famous for The Principles of Scientific Management published in 1911, did one good thing – he focused on how people did their work. This was in contrast with big company practice in his time of managers paying piece rates to encourage workers to work as hard and fast as possible but without knowledge of or interest in how they actually did the work. Taylor wanted to change this by observing each job in an organization – typically in large manufacturing companies like Bethlehem Steel – to find out who performed the job the most effectively, what Taylor called “the one best way”. He then wanted to standardize this practice and direct everyone else to follow it while setting a higher production target to qualify for a bonus. He believed that everyone could make the bonus by following his standard work and everyone would be better off.

Comment: Taylor did more than one good thing. Literature from the 1910s and 1920s contain examples from twenty or so of organizations that successfully “installed” Scientific Management – but never in its entirety, as Taylor saw it (about the same number of organizations today to practice TPS or Lean well). It is not factually correct to focus on “the one best way,” which is how Taylor saw things, because within about five years after Taylor’s death his followers began to speak of “continuous improvement” and “worker participation” in improvement.

What was wrong with Taylor’s approach? Just about everything.

Comment: Incorrect. Taylor’s work was the foundation upon which ideas and practices evolved. Large portions of Taylor’s work (and Gilbreth and others) – industrial engineering – remain as the foundation of TPS (and kaizen). It is inappropriate and unfair to judge Taylor’s thinking and actions then in today’s context, which benefit from 101 years of evolution in thought and practice.

Taylor was convinced that most workers hated to work and were therefore “soldiering”, pretending they were working as hard as they could. It was management’s job to make them work harder and this required a sharp distinction between those doing the work and the managers thinking about how to get them to do the work. Thus the need for the manager to actually understand the work by observing the work.

Comment: Taylor knew about “soldiering” first-hand, as he started on the shop floor and worked his way up to executive. He viewed soldiering, which exists today among both employees and managers, as greatly diminishing employer and employees’ economic and non-economic interests. In Taylor’s day, it made sense for an educated person to figure out how people should work. Don’t forget, in the late 1800s, some 90 percent of the U.S. population had less than a high school education, and therefore the English literacy and numeracy rate was very low by today’s standard.

This meant in practice that the person doing the work the “best” way would effectively have his knowledge appropriated for use by everyone else without any reward. And everyone else would be mindlessly and grumpily following the instructions of the manager-expert based on the best way of the best worker. A great formula for mass misery.

Comment: The “best” way of doing the work was merely an alternate expression, then, for the word “standard.” In TPS, standards remain of fundamental importance. “Mass misery” was not the result in the organizations where Taylor’s system was “installed” properly. It was the result in organizations where Taylor’s system was misunderstood and misapplied. In testimony to the U.S. Congress, Taylor said: “It ceases to be scientific management the moment it is used for bad.”

But Taylor didn’t stop there. He envisioned the work needed to create a completed product as a set of isolated, discrete steps, not as a continuous flow.

Comment: This is true. But implicit is the criticism that Taylor should have figured that work should be made a continuous flow. At the time, the need did not exist because most markets were sellers’ markets. Taylor did his part, and others who followed built upon his work which soon results in continuous flow (in assembly, but not in upstream processes).

So there was no need to align and tightly connect all of the work with everyone working at the same rate (known to us today as takt time.)

Comment: Frank George Woollard, who built on Ford and Taylor’s work, paced work according to a takt time in the U.K. automotive industry in the 1920s.

He concluded that process village layouts were fine if progress was monitored with accurate “travelers” and production schedules for each step (later automated as MRP) and that the really important task for managers was to make full use of the assets in each village, both technical and human.

Comment: That’s right. The reason why that made sense at the time is stated below.

This led to chronic overproduction to keep every machine and worker busy.

Comment: Back then (1880s through the 1930s), it was a sellers’ market. So, in general, overproduction was OK. When markets go from sellers’ to buyer’s, overproduction causes many problems, as we all now know.

To make the best of a bad thing, Taylor also invented standard-cost, absorption accounting, which judged managers on how fully they utilized labor and machines and then treated in-process inventories, no matter how unnecessary, as assets. And, as Dr. Deming pointed out, the focus on production without reference to the quality of the production was corrosive both to quality and to improvement.

Comment: Taylor did not invent standard cost absorption accounting. That distinction belongs to G. Charter Harrison. It was invented in relation to the sellers’ markets that existed at the time.

As for improvement beyond current best practice, this was to be done by experts making observations without consultation with workers or line managers and, in Taylor’s case, by external consultants. Indeed, Taylor invented the modern consulting industry as the first management consultant, in addition to being the first process consultant.

Comment: As noted earlier, in Taylor’s day it made sense for experts to think of new and better methods. But this way of thinking gave way soon after Taylor’s death. Yes, Taylor invented the modern management consulting industry. But, it’s worth noting the difference between Taylor’s consulting work and that of amazingly successful “charlatans and fakirs” such as Charles Bedaux.

Oh, and finally, Taylor was a notorious cheat who doctored his results regarding productivity gains. (See Matthew Stewart’s The Management Myth and Jill Lepore’s “Not So Fast” in the [sic] New Yorker, October 12, 2009, for the lurid details.) Good grief. A really bad relative.

Comment: Irrespective of these citations (no doubt cited as biased confirming evidence), industrial engineering – Taylor’s invention – which is the basis for kaizen, have proven successful in dramatically improving productivity. In the right hands, industrial engineering also improves worker’s lives and their economic condition.

Henry Ford had no use for Taylor. He observed that the hard work of Taylor’s classic worker, Schmidt the pig iron handler, would be unnecessary if the pigs were put down in the right place to begin with. If there was no in-process inventory between production steps and if everything from the previous step was delivered directly to the next step there would be no pigs or anything else to lift. Moving from process villages to cells and continuous flow for each product family was the solution, leaving out many wasteful steps altogether. And in the early days, until the Highland Park complex was completed in 1914, Ford’s line managers and workers consulted intensively about the best way to do each task in Ford’s new flow production system by working backwards from the work itself, not by observing many workers to see who did the work the best way. But as his company grew in size, managers began to simply tell workers what to do and how to improve their work based on the analysis of industrial engineers. Workers were to keep their heads down and keep working – Taylor had come in through the back door.

Comment: It is not Taylor who had “come through the back door.” Managers telling workers what to do pre-dates Taylor – by thousands of years.

Ford was one of those folks who lived beyond his time in other ways as well, thinking that he knew what customers needed, specifically a completely standardized product with no options offered for years on end with no change. And he loved political systems that could supply the stability needed to make his system run smoothly. He was awarded medals for boosting industrial productivity by both Hitler and Stalin. And he was notoriously anti-Semitic and anti-labor and anti- a lot of other groups as well. In short his reputation would have been better served, the world would have been a better place, and lean thinkers would have had an easier time if he had been run over by a Model T in 1914 rather than living another 33 years to be become progressively more eccentric and destructive.

Comment: I think it very unkind and inappropriate to wish for anyone’s premature death. It is up to people like us to sort out from one’s life work the useful from the useless.

Today, we suffer from Taylor and Ford when critics rely on pattern recognition to brand us as “Taylorists” or “Fordists”, always focusing on the issue of work design and management. They see one dimension of one small piece of lean’s tool kit – standardizing individual jobs – as the whole. But they never ask about how standardization can work when work content varies (it can) and they never ask about the total process of value creation and how work and the management of work can be connected from end to end (they can) for the benefit of everyone, through shared inquiry about the work.

Comment: As I have noted in one of my blog posts, Lean leaders such as James P. Womack would be wise to embrace Taylor and Ford, despite their professional and personal imperfections (which we all have), rather than run away from them – which is likely impossible to do anyway.

This critique seems to be heard more frequently as lean thinking is applied to professional work, where “professional” for many has meant the opportunity to do their work in their own way with no one else knowing what they are doing.

Comment: Professional’s, like most people, tend to seek or prefer zero-sum (win-lose) outcomes. Therefore, few will ask “how standardization can work when work content varies… the total process of value creation and how work and the management of work can be connected from end to end (they can) for the benefit of everyone, through shared inquiry about the work.”

I recently encountered a lovely example in a government organization that regulates drugs and medical devices critical to human health. The hundreds of doctors and PhD’s involved in making determinations about efficacy and toxicity worked in one-desk rooms behind closed doors. The senior management actually had very little knowledge of what they did, how the many steps were connected, why it took so long, and why many items authorized for use after years of analysis produced unanticipated side effects. I was called in for a second opinion after efforts to improve professional work by traditional management consultants had led to the development of standard operating procedures without actually understanding the work, KPIs for performance of each step, complaints of “speed ups”, and no improvement in results. I explained that managers and value-creators needed to begin by actually understanding the work and its impediments through intense dialogue.

Comment: This example illustrates the difficulty that people – whether employees or consultants – have in understanding work. We think we know what it is and how to improve it, but we do not. Shingijutsu is the best that I have ever seen when it comes to understanding work, and also people.

Professional work – that of the engineer, the doctor, the app designer, the manager too – is particularly important for lean thinkers to tackle because over time office and professional work have become a larger and larger fraction of the total work done in society. And in the future, as automation proceeds, touch labor in manufacturing and other manual work will probably go the way of farm work to become a very small part of economic activity. So if we can’t improve professional work we reach a limit, perhaps the reason the world’s most highly developed economies are showing only slight gains in productivity in recent decades despite many new technologies.

How can we deal with this problem? First, let’s make sure that we are not secretly Taylorists or Fordists ourselves. In my visits to companies I sometimes hear members of our community slipping into “I will tell them how to do the work and I will also think about how to do the work better” mode. Block that urge. It’s disrespectful to people and it leads to bad results.

Comment: Rather than associate ourselves with these two great pioneers of industrial management in a negative way, it is better for us to say that we should make sure we are not complacent and commit ourselves to learning by trying new things.

Then let’s be clearer with everyone we meet about the nature of lean. We need to explain that it always involves intense collaboration between everyone – line managers, front-line value creators (from assembly workers to surgeons), contributors from support functions – to deeply understand the work and then to rethink and align complex streams of work involving many people with different skills. The objective must be to produce a better result for the customer, better work experience for employees, and better performance for the organization, all by removing waste. We must help organizations achieve all three objectives or we haven’t done our most important work as lean thinkers.

Comment: I would put it this way: Lean must produce non-zero-sum results for all stakeholders, and Lean must evolve from our current understanding to a solution for any information flow problem, and ultimately as a system for improving human health in organizations. My vision for Lean is simple: People leave work physically and mentally healthier than when they arrived.

The lean movement over 100 years has moved a long ways beyond our crazy American relatives, Taylor and Ford, by going to Japan and back and by adapting lean principles to practically every type of value-creating activity across the world. So let’s invite our critics to come along with us, beyond simple pattern recognition and kneejerk responses to the very notion of standardized work, to a higher level of understanding about the nature of human work and how to it make better.

Comment: Ultimately, this article succeeds in advancing misconceptions and mischaracterizations about Taylor and his work, rather than eliminating them. I invite you to learn more about Taylor’s life and work by clicking here. Finally, I hope you found this critique to be insightful and educational.

The post Critique of “Dealing with Lean’s Crazy Relatives” appeared first on Bob Emiliani.


from Bob Emiliani http://www.bobemiliani.com/critique-of-dealing-with-leans-crazy-relatives/

Thoughts on “Lean Thinking at 20”

The 20th anniversary of the book Lean Thinking was marked on 28 and 29 September 2016 by an interview of James P. Womack and Daniel T. Jones. Below are some thoughts and critiques of selected passages from the interview:

From Part 1 of the Interview

Jim: …organizations struggle to make good margins, customers report declining confidence in the ability of providers to solve their problems, and employees report low engagement and a lack of satisfaction in their work… Lean thinking was and is the best-known way to sustainably improve this situation.

Comment: There is a large body of empirical evidence that, when it comes to improvement via Lean, sustainability is elusive. It is akin to knowing how to play a music instrument; faltering physical practice results in a decline in capabilities. Likewise, a decline in curiosity to learn more about the instrument and music results in stagnant or declining capabilities. It is better to not seek or think in terms of sustainability. Instead, think as sensei Nagamatsu-san does: “You may think you are a good company today, but make no mistake you are not. You may become better tomorrow, but still you are toward the back. At any moment, somewhere in this world there is someone doing the same work better.  There is no end. You must continually seek to improve.”

Dan: Perhaps the biggest lesson is that there is much more to lean than they [top management] (and we) thought…

Comment: I am a bit perplexed by this comment. Womack and Jones’ association with Toyota leaders should have quickly taught them the infinite nature of kaizen. This realization was apparently late in coming and therefore inadequately conveyed to top managers.

Dan: The unique power of these practices is that they can’t be dismissed as not working – they are alive and working in our continuing reference model Toyota.

Comment: True, but they can be dismissed by top managers who have a dozen choices when it comes to the various methods they can use to “improve” the business. Lean is easily the toughest method and therefore easy to dismiss. Efforts to make Lean more user friendly, and thus diminish the degree of difficulty between it and other methods have proven unsuccessful thus far. Leaders do not see Lean as strategic, but rather as a tactical way for workers to improve processes.

Jim: But the creation of true lean enterprises combining lean techniques with lean management has hardly been achieved anywhere. We are still at the beginning of the lean transformation!

Comment: Thirty-five years after Frederick Winslow Taylor’s death, his associate, Harlow Person, said the following in the Foreword to the 1947 book Scientific Management: Comprising Shop Management, Principles of Scientific Management, Testimony Before the House Committee (by Frederick Winslow Taylor, Harper & Brothers Publishers, New York, NY), Harlow Person said (p. xii):

“In the course of his [1912] testimony before the House committee [to Investigate the Taylor and Other Systems of Shop Management], Taylor was asked how many concerns [companies] used his system in its entirety. His reply was: ‘In its entirety – none; not one.’ Then, in response to another question he went on to say that a great many used it substantially, to a greater or less degree. Were Mr. Taylor alive to respond to the same question in 1947 – thirty-five years later – his reply would have to be essentially the same.”

It seems we are re-living history.

Jim: I’ve said since Lean Thinking was launched with the thought that its most important contribution would be to give managers the courage to try their own experiments.

Comment: Business history informs us that few managers are courageous in the ways necessary for progressive management to thrive.

Jim: The two points we did make [in the book] – and that many lean adopters in senior management have ignored – are 1) that lean is not about cost-cutting but about providing more value by means of a better value-creating process and 2) that the work experience will improve when everyone can see the whole value stream and the consequences of their own efforts and get feedback continuously and instantly on how to improve the results while making work easier.

Comment: The subtitle of the book, “Banish Waste and Create Wealth in Your Corporation,” did not signal these two points to top managers. In fact, it signaled Lean as a means to increase stock price by improving processes, with the added boost of laying off employees.

Dan: “… ‘people-centric’ solutions are cheaper to start, cheaper to maintain, more exactly focused on the varied needs of users and waste far less resources, while at the same time they can easily adapt to changing circumstances. Lean provides an alternative voice to the relentless march of those seeking “people-free” solutions.

Comment: Well-said. I agree. But we must consider the possibility that Lean will be made irrelevant or eclipsed by the relentless (and increasingly rapid) advancement of technology. As the great Frank George Woollard said long ago, “We must always remember that men were not made for machines, but that machines were made for man… the motto must be… ‘Machines in the Service of Man’.”

From Part 2 of the Interview

Dan: First, lean has to be seen as strategic, and therefore top management has to be convinced about the business case for lean. In our enthusiasm to carry out proof of concept experiments to show how lean works we failed to give this sufficient attention.

Comment: The history of progressive management is littered with those who have attempted to convince top managers that progressive management is strategic. Womack, Jones, and the rest of us have largely failed, just as those before us have. Why? What are the root causes?

Dan: Is Kaizen the ultimate antidote to “big company” disease?

Comment. No, Toyota, the foremost practitioner of kaizen, succumbed to big company disease in the early- to mid-2000s, and they are still working to recover.

Dan: Developing capabilities of employees by learning-by-doing is a line management responsibility, not a staff function.

Comment: So true!

Jim: I hope it is simply that the life of lean is experiments, not dogma.

Comment: Dogma is built into Lean, and therefore inescapable. And so are its consequences, one of which is a failure to learn – particularly from others.

Jim: The problem is with “thinking.” That’s passive rather than active and we brought up this point with our editor as we were preparing the book for launch. “How about ‘lean transformation’ or something that conveys the necessity of learning by trying experiments?” To which the editor – looking at sales of the book rather than the effect of the book on managers – said, “People love to think, which has no risk. But they hate to act, which is dangerous. So let’s stick with lean thinking. That title will sell.” And at that time publishing contracts always stated “the publisher retains the right to title the work.” So…we got Lean Thinking.

Comment: Interesting insights into the motivation of publishers versus the motivation of authors. That is why I self-publish. I have always been more interested in my work having a good effect on managers than sales. Also, the subtitle, “Banish Waste and Create Wealth in Your Corporation,” was not mentioned as a problem, which it certainly was, because it cued top managers to recognize Lean as a means to increase the stock price – typically at employees’ expense (e.g. layoffs).

Dan: The more I think about it the more I think that Lean Thinking was the right title for the book, although I would now add “and Practice.” Practice in both senses of the word; practice as in the many hours learning to play the violin (daily Kaizen) and practice as the way your approach any problem in life.

Comment: Learning how to play music is an excellent analogy! Kaizen is indeed the key. The question is, why has kaizen has not been of greater prominence in the advancement of Lean? The emphasis has been on value stream maps, A3 reports, genba walks, and so on. The focus should be on kaizen and flow.

Dan: At its heart, lean is a cognitive revolution and not an organizational one. Lean thinking cannot be learnt from abstract thinking alone, but only through repeated, structured practice with “ah-ha” insights as to why common notions are wrong – in other words, “by acting our way to a new way of thinking.” This applies as much to top managers as it does to front-line teams, “you learn by helping others to learn.”

Comment: Lean is merely the current name for progressive management, which was pioneered by Frederick Winslow Taylor in the late 1800s. In his book, The Principles of Scientific Management, Taylor said: “…the really great problem involved in a change from the management of ‘initiative and incentive’ [conventional management] to scientific management consists in a complete revolution in the mental attitude and the habits of all those engaged in the management, as well as of the workmen.” It has therefore long been recognized that progressive management requires a mental or cognitive revolution. Note that Taylor said this applies to workers as well as managers. Both must experience a mental revolution. Hands-on practice by both managers and workers is necessary but not sufficient, as there are multiple dimensions to the mental revolution beyond the work itself. One dimension is economics, and it is perhaps the most powerful dimension in its ability to thwart the mental revolution.

The post Thoughts on “Lean Thinking at 20” appeared first on Bob Emiliani.


from Bob Emiliani http://www.bobemiliani.com/thoughts-on-lean-thinking-at-20/

Monday, September 26, 2016

Lean Leadership Training: From Batch to Flow

For nearly 20 years, I have been engaged in teaching the leaders of “brownfield” businesses about Lean leadership. As with all other trainers, we teach company leaders in batches and accept the many abnormal conditions that lay in front of our eyes:

  • Long queue time to align everyone’s schedule
  • Some leaders miss the training due to sudden emergencies
  • Training courses are too long
  • The training material is put on a shelf and never looked at again
  • There is a lack a buy-in and commitment
  • Leaders attend the training and then quickly forget about it
  • Leaders do not follow-up with managers who attended the training
  • The training is expensive and has low return on investment
  • The training fails to achieve its objectives

Not surprisingly, batch processing of leaders to learn the fundamentals of Lean leadership suffers from a large variation in results and a low overall success rate. Said another way, it takes too much time to develop basic competencies in Lean leadership.

Are there any benefits to batch processing for Lean leadership development? I can think of only one: Good conversations among leaders. However, conversations rarely drive Lean management forward. So are the conversations really of any benefit?

The purpose of Lean leadership training is many:

  • Develop a common understanding of Lean management
  • Inform people how Lean leadership differs from conventional leadership
  • Gain leadership team commitment
  • Develop new ways of thinking and new daily routines
  • Change the culture through daily practice
  • Accelerate the Lean journey
  • Leaders act as coaches

The last bullet point, “Leaders act as coaches,” is troublesome because leaders don’t know Lean well enough after a one- or two-day Lean leadership workshop to coach effectively. In addition, almost every business leader that I have ever trained greatly overestimates their knowledge of Lean. For them, the training is likely to tell them what they believe the already know.

640px-pollock_to_husseyThink about it this way: Imagine that I ask a group of 15 business leaders, “Have you ever played Cricket?” and that everyone says “No.” Then, I say, “OK, now each of you have suddenly been made the coach of a professional Cricket team. How will you coach the team and its individual members in their respective positions? What will you do?” That is what we are asking leaders steeped in conventional management to do: Coach a team of people in an activity whose mindset, practice methods, rules, and measures of success they know nothing about.

But it is even worse than that in business, compared to sport, because the employees (players) don’t know Lean management any better than their leaders (coaches). A department (team) staffed by both employees and a coach who do not know Lean management will struggle. Most leaders will give up within a day or two. Rather than accelerate the Lean journey, the training can slow down or stall the Lean journey.

Contrast this with how I teach Lean leadership in my university course, which comes closer to flow. This method requires students to engage the material a few times a week for 14 weeks, resulting in multiple learning cycles that build off of one another. This rapid cycle PDCA approach yields far better results than a one- or two-day Lean leadership workshop in terms of learning the fundamentals of Lean leadership. Putting that classroom knowledge into use, on the job, is a separate challenge to which students must also respond to.

After many years of thought, I have created a new method for Lean leadership training whose focus is on flow and features rapid daily learning cycles, for the purpose of compressing the time it takes to develop basic competencies in Lean leadership. It consists of one half-day of training class complemented by ten actions that together create an environment better suited for rapid on-the-job learning. It is a countermeasure to the batch training method and Cricket coach problems outlined above, and allows leaders to be more effective coaches and also teach several key elements of Lean management to associates.

Contact me if you would like to begin this new Lean leadership training practice in your organization.

The post Lean Leadership Training: From Batch to Flow appeared first on Bob Emiliani.


from Bob Emiliani http://www.bobemiliani.com/lean-leadership-training-from-batch-to-flow/

Wednesday, September 21, 2016

Thoughts On “Lean Thinking – The Making of a Book”

The 20th anniversary of the book Lean Thinking was marked by an interview of James P. Womack and Daniel T. Jones. The interview was interesting from a number of perspectives. Below are some thoughts and critiques of selected passages from the interview:

Jim Womack: Our aim was to give people a license to try something new. That’s why we structured the book the way we did, in three parts: a simple explanation of what lean is (the five principles)…

Comment: The 5 principles of Lean (Thinking) are a different expression of principles than either TPS or The Toyota Way. Lean is certainly a useful interpretation or derivative of the Toyota Production System (TPS) and The Toyota Way, but they are not the same thing.

Dan Jones: I believe that the book succeeded in particular because it spoke to people who were struggling with the challenges brought forward by globalization (like Chinese competition, for example) and with making things better at work to engage a new generation of employees with different expectations about involvement.

Comment: The subtitle of Lean Thinking is “Banish Waste and Create Wealth in Your Corporation.” Wealth creation – increasing the stock price – is what resonated with managers in the mid- to late-1990s (and thereafter). Globalization led to rapid outsourcing and offshoring (and widespread layoffs), not the detailed and painstaking work of improving the company’s internal processes and human capabilities. Managers did not care about what the new generation of (then) employees wanted.

Dan Jones: At first, people plowed through the tools and, for a long time, they believed that the toolbox was all there was to lean… But I think this was a necessary step to establish the movement and later come to the realization that it is up to management to make lean a success. Now we have gone further, talking about lean as a strategy and a learning process for leaders. We are on the cusp of answering a lot of questions, and we couldn’t have done it without this movement, or without its mistakes.

Comment: The problem, in my view, is the timescale. These important realizations should have come much sooner to Womack and Jones and their respective organizations. The transition from Lean production to Lean management and Lean leadership was too slow. Lean as a strategy is a “slow burn” for stable long-term growth and survival, which is unappealing to leaders who seek fast results. If Lean is now a learning process for senior leaders, one needs to step back and recognize the reality of what that means. I have met many leaders. Few think they have much new to learn. For sure, Womack and Jones know this as well.

Jim Womack: We didn’t give people any advice on how to sustain either. For example, there is no discussion at all about creating the basic stability that is the necessary foundation for sustainable kaizen Dan and I had never been managers and assumed that managers in most organizations would have the energy and ability to sustain results. It turned out they couldn’t, and that the management systems of most companies were designed to do re-work on top of chaos, not to sustain kaizen gains. We didn’t give any advice on this problem because we weren’t aware of it.

Comment: Sustainability is a myth. Leaders can never sustain results (in anything) because things change every day, managers come and go, and organizations are merged or sold. One can never reach a state where Lean resides within the company’s DNA. Lean resides in people. Non-Lean thinking is like gravity, constantly pulling you down. It is only through daily hard work that Lean moves forward over time. Think of it like a musician’s practice. Capabilities decline if one does not practice, and practice, itself, is difficult to sustain long-term.

Dan Jones: As writers rather than managers, Jim and I could only write what we saw other managers do during our research. Indeed, we assumed people would want to figure lean out by themselves; instead, we discovered they wanted us to tell them what to do.

Comment: The modern history of management (ca. 1880 forward) is littered with examples of managers wanting for others to tell them what to do. And if you succeed, they often ignore it. Most managers focus their attention on figuring out the things that are of immediate interest – the metric, the competitive threat, etc. Lean is not well suited for people whose interest in thinking is limited or who are unwilling to abandon their preconceptions.

Dan Jones: Absolutely. Lean is a people-centric solution, not a people-free solution. Taylorism was about building a system, designed by experts, which any fool could operate, while lean is a management system centered on people and growing out of the gemba.

Comment: This is a common mischaracterization of Frederick Winslow Taylor’s work, and also fails to recognize how Taylor’s work evolved in his time and thereafter, and its role (as well as Frank and Lillian Gilbreth’s work) in laying the foundation for TPS.

Jim Womack: Our approach was to never be too prescriptive. As exasperating as this was to our orthodox Toyota friends, we have always believed that experimentation and an open mind to try new things are more important than having read the Scriptures. Instead we’ve said, “Let’s go to the gemba, collect some data and let the evidence speak”. And that’s what the examples in Lean Thinking did.

Comment: It seems to me that Womack and Jones could not be too prescriptive even if they wanted to because they lacked first-hand experience with TPS, generally, and kaizen in particular. Nevertheless, experimentation and going to then genba come directly from TPS.

Jim Womack: The Shingijutsu guys were very interesting for a number of reasons. To begin with, they had worked directly with Taiichi Ohno. Secondly, they had done brownfield transformations of Toyota suppliers in Toyota’s mad rush to bring its supply base up to its lean standard after sales took off with the Corolla in 1966. So they had both the lean knowledge and a tested transformation method! The latter came in the form of the magical five-day kaizen. They would take an area of a factory or office and transform it within a week by introducing cells and one-piece flow (so it was kaikaku more than it was kaizen). It was a brilliant technique, but it was incomplete – you have to kaizen and kaikaku both the value stream and the management at the same time if you are going to succeed, but there was no method for the latter… The Shingijutsu team achieved impressive if often unsustainable results every time, which made them very popular consultants.

Comment: Shingijutsu kaizen consultants had TPS knowledge, not Lean knowledge. Kaikaku is the one-time gain going from batch-and-queue to flow (or flow limited by supermarkets). The ongoing, day-to-day kaizen after Shingijutsu departs is the responsibility of management, which Shingijutsu makes clear, but which management often fails at. This is not Shingijutsu’s fault. No single method exists to get senior managers to do what they do not want to do. Shingijutsu-kaizen is not incomplete. Shingijutsu-kaizen workshops teach people about kaizen – the heart, the mind, and the method. It is there if one accepts it. As with any consultant, it is not Shingijutsu’s responsibility to sustain their client’s results. It is always management’s responsibility. To think otherwise reveals a perceptual gap.

Dan Jones: Lean is all about practice and experiments, which we wrote about and interpreted. I think that the fact that academia is only now picking up on Lean Thinking says a lot.

Comment: Lean is indeed an interpretation of TPS (and later, of The Toyota Way). Not all academics are behind the times.

 Jim Womack: Sadly, academia was much more comfortable with theory and with studies using large numbers of examples for statistical analysis. This means there is always a perceptual gap and a time lag with reality in their work. The view from the rearview mirror.

Comment: True as a generality, but not all academics suffer from perceptual gaps and time lags with reality.

Dan Jones: There is much more to lean than we originally thought and, so long as we keep digging and learning, we can rest assured that the movement will keep growing.

Comment: If Lean is understood to be the generic term for TPS and The Toyota Way, then there is indeed much to learn, especially through direct experience.

The post Thoughts On “Lean Thinking – The Making of a Book” appeared first on Bob Emiliani.


from Bob Emiliani http://www.bobemiliani.com/thoughts-on-lean-thinking-the-making-of-a-book/

Tuesday, September 13, 2016

Lead by Build Organizational Capability

The result of a recently interview with me has been posted: How to Lead From Any Level In the Organization

2. Help people solve their problems.

Similar to helping other people grow their careers is the idea of helping other people to solve their problems. Again, this starts with a clear understanding of your sphere of influence. “It determines what strategies you can pursue, and building your sphere of influence should be part of your decision making process.”

What it comes down to is proving yourself in this way—and doing so consistently. “It isn’t some secret sauce. Prove yourself to be valuable and you will gain influence. Help people solve their problems. They will be inclined to listen to your ideas.” And helping people to solve their problems doesn’t mean you are giving them the answer. It may mean you asking empowering questions.

John says if you focus on building the capability in the organization to understand variation and to appreciate how to use data—then you are on the right path, and can increase your influence in addition.

“You need to build into the organization things like a focus on pleasing the customer instead of pleasing your boss.” When combining all of these methods, that is when your leadership is going to be most effective.

Hopefully you will find the entire post worthwhile.

More links related to interviews with me about improving management: Leadership While Viewing the Organization as a System, Business 901 Podcast Deming’s Management Ideas Today, Meet-up: Management Improvement Leader John Hunter.


from Curious Cat Management Improvement Blog http://management.curiouscatblog.net/2016/09/13/lead-by-build-organizational-capability/