5 Ways to Create a People Centric Culture

Putting people first at a company, what I call being People-Centric, promotes the sharing of ideas, suggestions and improvements. People are at the core of every organization, and an organization’s employees – its people – are the most important investment it will make. Even as technology advances and capital shifts, it is the leadership and personal contributions of the individual employees who comprise an organization’s workforce that ultimately set it apart from competitors.

Companies that reap the benefits of an engaged workforce understand that people are their greatest asset. Great workplaces foster an environment of communication, fairness, respect, and trust - while creating opportunities for people to grow as employees, and as individuals. A work environment in which people feel valued, heard and a sense of camaraderie is critical to employee engagement.

Here are 5 ways to create a people centric culture:

1. Communication is the key to empowerment.

Give every employee equal and direct access to information. Many companies have developed a trickle-down style of communication that alienates those employees who may not be "in the loop." The more informed employees are and the more communication is open, honest, direct and complete, the more likely employees are to feel empowered and connected to the daily operations and overall goals of their company.

2. Allow employees to suggest better ways of getting their jobs done.

Ask for employee suggestions for other ways of getting the task or project accomplished. Listen and be willing to really hear the employees' comments. Employees hate to have no input and be told exactly how to perform their jobs, leaving no creativity.

3. Show you have trust in your employees.

Allow them to make mistakes as a form of learning. Show that it is really OK to make mistakes. Trust that people have the right intentions and will make the right decisions, even if they are different than your own. Let them know you really support their decisions.

4. Encourage and reward improvement and innovation.

Employees may be afraid to offer insight and new ways of doing things because the company culture doesn't support them. If you really want to empower employees, you'll need to create a company culture that encourages and rewards innovation. You may start by asking individuals to look for ways to improve efficiency, output, safety, etc. in the tasks they perform every day.

5. Create a learning environment. 

Learning is the key to success—some would even say survival—in today’s organizations. Knowledge should be continuously enriched through both internal and external learning. Developing your people shows respect for them.  Building explicit (book) and tacit (hands on) knowledge and distributing it is equally important.

Asking people to improve their work and giving them the tools to do it (e.g. Kaizen) shows the ultimate form of respect in my opinion. In other words management is saying that we trust and expect that you will take a hand in making things better in order to ensure our survival. The implied message is one of mutual trust and respect.

Lean Quote: There is No Substitute for Observation When Problem Solving

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"Nothing has the power to broaden the mind as the ability to investigate systematically and truly all that comes under thy observation in life." — Marcus Aurelius

All too often, attempts are made to solve problems without knowing anything about or are not being familiar with a particular area or process -- resulting in a misdiagnosis or failed solution. Answers come from the floor, from the 'gemba,' where the condition occurs. You need to go to the real place and experience these conditions for yourself before being able to take the next steps.

No matter what your position is or what you are working on you can not underestimate the importance of going to the Gemba. Gemba is the Japanese word for “actual place.” You can’t solve problems at your desk. Going to the Gemba is a great way to get the entire team involved in identifying and solving problems. It is grounded in fact finding using actual conditions from the actual workers who perform the work. This activity creates energy within the team solving the problem leading to experimentation, ideas, and discussion on improvements.

Lean leaders should go to the shop floor and get their hands dirty by working on process improvement. People expect their leaders to be innovative.  Allow others to see your creativity in action on the front lines.   Leaders need to do more and observe less.   Action is observation in full motion.

There is no better way to experience the flow of value (or lack thereof) than taking the same journey that an order, new product, patient or other takes through your processes. Start where the order, product or person enters your value stream and "go see" all the places they go from start to finish. Look for all forms of the 7 wastes and when you see them, think about "why" they exist. Do this often in order to gain a true understanding of your processes. What happens on Monday is not necessarily what happens on Friday.

In data collection, impartial observations of how the process is currently running are critical in identifying waste with respect to time, materials, etc. You can observe a lot by simply watching, although in some environments it may be difficult to observe the work itself. This is because there are so many work products that are virtual, for example, emails, phone, computer inputs and reports. In these cases, process observation with trained observers can be powerful.

Many managers rely on gut instinct to make important decisions, which often leads to poor results. On the contrary, when managers insist on incorporating facts and evidence, gathered from direct observation at the source they make better choices and their companies benefit. Lean companies however strive to empower their employees to make decisions at all levels through access to data, knowledge of evaluation methods, and defined standard processes.

Supervisors and managers must continually walk through the factory to see that standards are being followed and to practice seeing waste. Operators need to continually examine their own operations to stay alert for new problems and new ideas for solving them that may come to mind as they do their jobs.

There is no substitute for observation when it comes to problem solving.

 

Lean Tips Edition #91 (1366-1380)

For my Facebook fans you already know about this great feature. But for those of you that are not connected to A Lean Journey on Facebook or Twitter I post daily a feature I call Lean Tips.  It is meant to be advice, things I learned from experience, and some knowledge tidbits about Lean to help you along your journey.  Another great reason to like A Lean Journey on Facebook.

Click this link for A Lean Journey's Facebook Page Notes Feed.

Here is the next addition of tips from the Facebook page:

Lean Tip #1366 - Keep Your Meetings Productive.

As the saying goes, time is money. So, of course, you should want to limit tangents and other time wasters during meetings. If you trust your team to do their job, there should be no need for micromanaging, and meetings can run swiftly.

Lean Tip #1367 - Never Stop Improving.

Great leaders -- indeed, great people -- are constantly learning and always trying to improve themselves. There’s always something that you can work on or a new skill to master. Be sure to keep your mind open to new ideas and possibilities.

Lean Tip #1368 - Offer Acknowledgment To Your Employees

Celebrating and publicly announcing the achievements and efforts of your employees is a great way to build their confidence and keep them motivated. Not every effort requires a huge celebration or award, but praise and positive feedback should be a part of your daily interactions with your team. Sending an email or handwritten note recognizing an employee for a job well done offers immediate feedback and serves as a record of their accomplishment.

Lean Tip #1369 - Create an Environment of Growth

Encouraging growth within your team is always beneficial. Support them in taking on new tasks and experimenting with new methods. When things don’t go as planned, rather than dwelling and focusing on their failures, use them as learning opportunities. This will inspire your employees to continue striving for new, innovative techniques.

Lean Tip #1370 - Seek to Understand and Learn

An effective leader doesn’t have all the answers but they do make good decisions (most of the time) based on input and information from others. Asking questions, listening, and taking the time to explore possibilities is important in relation to this.

The more senior the role, the more complex the situation, and the greater the impact of judgments will be.

• Realize you don’t have to have all the answers, acknowledge this and seek input from your team and others.
• Accept you will make mistakes and learn from these. Admit them. Don’t repeat them.
• Ensure you are seen to be open to the ideas of others.
• If you disagree with others, communicate the reasons why.
• If others disagree with you, don’t take it personally.
• Listen twice as much as you speak.
• Knowing the right question is usually more important than knowing the right
• Answer.
• Never assume.
• Sit back, observe, think, observe some more, ask questions and then maybe, after about three months, make a change
• Reinforce not jumping to conclusions
• Don't be afraid to ask the same questions in different ways to improve your understanding

Lean Tip #1371 - Establish an Impeccable Standard of Excellence.

Set high expectations at the outset and raise the bar on any crucial factors. The best way to establish a standard is by modeling the expected behavior yourself. Showcase excellence. When your actions have the potential to affect everyone around you and the bottom line, don't dabble in mediocrity. Reflecting excellence is critical to exercising effective leadership. This is ground zero for establishing influence.

Lean Tip #1372 - Value People and Nurture Relationships. 

Top-notch people skills are vital to sound leadership. Develop premium listening, communication and decision-making skill sets. Demonstrate integrity by being open, honest and fair.

Your transparency will reap clear rewards. If you treat people well, most will be encouraged to return the favor. By elevating the importance of people and relationships, you enhance your ability to relate to others in an authentic and meaningful way.

Lean Tip #1373 - Promote Strategic Cooperation.

People often produce higher quality, more efficient work products when collaborating. Commit to this by actively embracing opportunities for healthy cooperation. Make teamwork an attractive aspect of workplace culture. Less burnout, increased trust among peers and enhanced interpersonal relationships will result.

Lean Tip #1374 - Get Your Hands Dirty.

Do the work and know your trade. You don’t have to be the most advanced technician on the team, but you must have an in-depth understanding of your industry and your business. Leaders have many responsibilities, but it is important to work alongside your team. This is a great way to build trust and continue to develop your own knowledge and skills.

Lean Tip #1375 - Let the Team Do Their Thing.

Stop micromanaging. Communicate the mission, vision, values, and goals. Then step back and let the team innovate. Setting this example for the team will encourage your other managers to do the same.

Lean Tip #1376 - Lead By Example, Not By Being An Arrogant Jerk

"People want to be good. They want to be successful. They need help believing in themselves. Sometimes they just need help to get going...

You can’t expect people to read your mind. You need to lead by example, help them be successful and inspire them. You don’t have to be an arrogant jerk to get people to be successful. In fact, it’s just the opposite."

- Kevin O'Connor, chief executive of FindTheBest.com

Lean Tip #1377 - Be Passionate

This is one of the most important leadership skills. Would you look to someone for guidance and leadership if they did not truly care about the goals of the group? Of course not! Great leaders are not just focused on getting group members to finish tasks; they have a genuine passion and enthusiasm for the projects they work on. Start by thinking of different ways that you can express your zeal. Let people know that you care about their progress. When one person shares something with the rest of the group, be sure to tell them how much you appreciate such contributions.

Lean Tip #1378 - Maintain a Positive Attitude.

No one respects a grumpy or negative person. With a positive attitude you are looking at the bright side of life. People are naturally attracted to you when you have a positive attitude. By being positive, you will lead a happier life, as well as be surrounded by other positive people. You will also magically attract exciting offers and possibilities.

Lean Tip #1379 - Motivate Others to Greatness.

The greatest leaders are those who include everyone in their sphere of influence by recognizing each person’s greatest value. To be one of these leaders, look beyond the obvious and see others with insight and compassion. Many of history’s greatest leaders have admitted that they rose to the top because another leader recognized and harnessed their potential.

Lean Tip #1380 - Be Willing to Admit and Learn from Failures and Weaknesses.

Face it – No one is perfect, and everyone has made a mistake or two in their lives! The most successful leaders know that the key to success is not in avoiding falling or failing, but to learn from their mistakes. As a strong leader, you will also be able to communicate your weaknesses to your team, so that you and your team can appoint someone who excels at that particular task or activity.

Lean Quote: Embrace Transparency to Involve Employees

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"The price of light is less than the cost of darkness." — Arthur Nielsen

Good leadership is all about communication, and the best leaders are completely transparent with their staff. I believe that with knowledge comes power and the more information we share the quicker with can improve.  Creating a culture of openness and free-flowing information can be a competitive advantage.  Here are three reasons you should embrace transparency:

1. Transparency helps employees connect to the why. When employees are working in a vacuum, they can't see the financial "big picture," and decisions leaders make may seem ill-advised or unfair or simply inexplicable. Transparency connects them to the why—and that understanding propels them to act. You can ask people to change their work habits and established processes all day long. But if they don't know why they're being asked to change, they won't change—at least not for long.

2. Transparency leads to faster, more efficient execution. When times are tough, execution is everything. And the ticket to good execution is good alignment: All sectors of an organization must understand exactly what's required so they act in a coordinated and collaborative fashion. Transparency is what facilitates that kind of alignment. It's all about a shared sense of urgency.

3. Transparency facilitates the best possible solutions. In transparent cultures, leaders encourage employees to solve problems themselves. And because those employees are the people closest to a problem, and because they must live with the outcome, they almost always design the most effective, efficient solution.  And, of course, they'll also have instant buy-in.

Be honest and open with your staff on matters that affect them and could ultimately put their mind at ease. It is important that you involve employees where you can with decision making to make them feel valued. As a manager, your aim is to have an open and honest working environment where your staff feels confident in coming to you with the truth about matters, whether they are big or small.

 

Leading by Example is a Trait of a True Lean Leader

One of the most important qualities of a good leader is for you to lead by example, to be a role model, to be the kind of person that everyone else looks up to and wants to be like. One of the characteristics of leaders is that they carry themselves at all times, even when no one is watching, as if everyone was watching.

For an organization to grow, the people within it also must grow. The way for leaders to bring a team to a higher standard is by committing to a greater challenge themselves. The abilities, talents and characteristics of leaders provide a larger foundation on which those around them can grow, both as individuals and as a group. By being the example of greater discipline and greater drive, a leader encourages those who follow him to adopt a higher standard as well.

Leading by example sounds easy, but few leaders are consistent with this one. Successful leaders practice what they preach and are mindful of their actions. They know everyone is watching them and therefore are incredibly intuitive about detecting those who are observing their every move, waiting to detect a performance shortfall.

All managers are teachers, and their actions determine company capability. Whether consciously or not, with their everyday words and actions all managers are teaching their people a mindset and approach.

Leaders must lead with their actions as well as their words. Leaders can effectively translate intention into reality by acting on the concepts and messages they teach and the things they say to those around them. Leadership is the act of setting the right example for those who follow. Leadership is about actively demonstrating your belief, not just talking about it. People who say one thing but do another eventually lose credibility.

Leaders are not afraid to jump into the ‘trenches’ and do some of the work themselves. They also encourage team members to take risks and support them when they do. Being a hands on manager will inspire and motivate the team to achieve greater things.

The level of involvement in Lean by the management team often shapes the Lean implementation and those who may lead it. In my experience the less knowledgeable the management about REAL Lean (Bob Emiliani’s term) the more they think of it as a set of tools the more they want you to just do it. These are the managers that are usually hands-off with Lean and want to see the short term gains to demonstrate they are improving the process. They are focused on the results and outcomes and not the means by which we achieve them. This task oriented approach to management unfortunately is only sustainable while the doer is doing.

When you “walk the talk,” your behavior becomes a catalyst for people’s trust and faith in you. And it also emphasizes what you stand for. Leading by example shows people exactly what you expect and gives them living proof that it can be done. On a deeper level, leading by example and being as good as your words builds trust. It’s a sign that you take what you say seriously so they can, too.

Lean is Not a Hunt for Waste it is a Journey to Add Value

Courtesy: http://www.allaboutlean.com/muda/

Undoubtedly, you have seen the narrow minded definition of Lean as a waste elimination tool. If you search the internet for a definition of Lean you will find many different suggestions, ranging from a few sentences to others that run many pages. Most miss the main point of Lean; they on the whole define lean as being a process of waste elimination. Unfortunately, this misses some of the major and most important parts of Lean.

It is difficult to define Lean in just a few sentences as Lean encompasses so much. To me it is:

Lean is all about respecting people while eliminating Muri (overburdening), Mura (unevenness), and Muda (non value added activity) in all business processes. It is a philosophy which embodies a culture of continuous improvement based on setting standards aimed at providing value through participation of all employees.

Lean Thinking is comprised of five fundamental principles:

1) Specify Value – End-use customer view
2) Indentify Value Stream – Activities that create value
3) Flow – Make value flow
4) Pull – Respond to customer demand
5) Perfection – Zero waste

Lean is Customer First, what is value in the eyes of the customer? What features and services does the customer want? When do they want them and what price do they want to pay? Without this information how can you design your ideal system?

This value needs to be made to flow from raw materials through to the consumer, this value stream needs to produce product at the pull of the customer. This is Just In Time manufacturing (JIT), producing what the customer wants when they want it!

Once you have the customer defined value flowing at the pull of the customer you strive for perfection, improving everything that you can about the product and process.

This is done by all within your organization, Lean values respect for people, involves everyone in the company to help meet customer value.

In some ways is could be said that Lean is more about preventing waste. By implementing the Lean principles above you identify those actions that add value and make them flow at the pull of the customer, this prevents the waste from occurring.

Lean follows a set of rules to provide value what I refer to as “Lean Rules-in-Use”:

1) Activity Rule – Specify all work to content, sequence, timing, and outcome.
2) Connection Rule – Customer-supplier connections must be direct & unambiguous.
3) Pathway Rule – Pathways for product/service must be simple & direct.
4) Improvement Rule – Improvements are made using scientific method (PDCA) at place of activity (Gemba) under the guidance of a teacher (Sensei)

If you follow this process you will not be going through a process of waste elimination and reduction but a more important process of waste prevention! So if you want to implement Lean manufacturing you must not just focus internally to impress your shareholders and make short term gains, but focus on the customer to make sustainable changes that will help your company flourish in today's world, not just struggle to survive.

If you only focus on an internally focused drive to eliminate waste, a process generally of cost reduction and labor elimination to reduce costs and increase profits, you forget the first and most important part of lean; what is value to the customer? The selfish drive to reduce costs wrongly assumes value on the part of the customer and the organization tends to become not Lean but anorexic! They remove the ability to be able to react to customer changes, to adapt when there are supplier and internal problems. Because of this companies that "have done lean" quickly revert to the way they were before the improvements, bringing back old inefficient processes to cover over other issues and rehiring the labor that they removed, Lean being put on the discard pile of management fads.

Lean Manufacturing is a business improvement philosophy that has developed over many years. Whilst Lean has a huge toolbox of tools and techniques you cannot define Lean from those tools. Lean is more than the sum of all of those tools, applying tools in isolation will not necessarily give you the benefits that you would expect and want to see. Lean is a method to better focus your business on the true needs of the customer to help you prevent waste from being built into your system.

Lean is not a hunt for waste it is a journey to add value.

Lean Quote: Kaizen Can’t Exist in State of Fire Fighting

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"We are too busy mopping the floor to turn off the faucet." — Author Unknown

Unfortunately, a far too common management style in many companies is the reactionary style commonly referred to as fire fighting. But fire fighting consumes an organization's resources and damages productivity. Fire fighting derives from what seems like a reasonable set of rules--investigate all problems, for example, or assign the most difficult problems to your best troubleshooter. Ultimately, however, fire-fighting organizations fail to solve problems adequately. Fire fighting prevents us from getting to the root cause. And if we don’t get to the root of problem we will be right back to fire fighting soon.

The idea of fire fighting is to let a problem fester until it becomes a crisis, and then swoop in and fix it. Fire fighting is popular because it is exciting. Furthermore, it is a win-win situation for the fire fighter. If the fix works out, the fire fighter is a hero. If it doesn’t, the fire fighter can’t be blamed, because the situation was virtually hopeless to begin with. Notice that it is to the fire fighter’s advantage to actually let the problem become worse, because then there will be less blame if they fail or more praise if they succeed.

But the real problem is the people in charge. Fighting fires instead of developing a plan to stop fire fighting and making sure it will not happen again is the job of management. Most of us deplore the firefighting style, yet many managers and organizations perpetuate it by rewarding firefighters for the miraculous things they do. In fact, it may be the absence of a vision and plan that cause your organization to be so reactive, and spend a lot of time fire-fighting rather than proactively meeting the needs of your customers. This is all easier said than done, of course, but if you get things right the first time, there's usually not much fire-fighting later.