Book Review: The Lean CEO

There has been a lot of literature on Lean implementations over its initial 25 years but now there is a book providing new insight. The Lean CEO: Leading the Way to World-Class Excellence by Jacob Stoller is the result of in-depth conversations with over 30 individuals who have been expanding the borders of Lean thinking both within their organizations and in their wider communities. The power of lean to build world-class performance requires a corporate-wide commitment to long term continuous improvement that very few organizations have made. The Lean CEO explores the state of lean in the world today from the perspective of top executives who are leading the charge, and in the process generates a collection of insights both familiar and new.

The book starts with a cursory overview of Lean but as the author states is no a primer so Lean knowledge is a pre-requisite. The first two chapters set the scene for how lean came to be in the 20th century, and the unusual way in which it was introduced to the West. The author definitively summarizes this history while providing the reader with an introduction in a core set of lean tools, methods and principles.

Stoller then chronicles how 28 CEOs faced crises which led them to adopt the management principles pioneered by Toyota. You will hear from Lean CEOs from companies of all sizes and sectors – including makers of snow blowers, oil field and heating systems, metal tabulators, furniture, windows, healthcare, and so many more. No matter the sector, the requirements of Leaders are so similar because everyone is dealing with people. What we learn is that ultimately, people are the key to the long-term success of any organization.

Chapters 3 through 13 are organized by various themes under the term burning platforms. Lean was adopted in response to a pressing business need. So you’ll find chapters on “Putting People First,” “Capacity Without Capital Expenditure,” or “Reducing Dependence on the CEO.” Within each are examples from public or privately held industrial or service companies, or nonprofits. Two chapters are reserved for healthcare and government, respectively.

CEOs, C-level executives, and change agents who led well-known Lean efforts at Wiremold, Lantech, Ariens, ThedaCare, and Virginia Mason among several others are highlighted. Stoller quotes his executive subjects often and extensively. The result is first-hand testimony from business leaders contesting traditional management practices about everything from accounting to batch size, employee involvement, motivation, leadership, economies of scale, and a raft of other conventional methods.

Even if you are familiar with some of the Lean transformations covered in The Lean CEO, Jacob Stoller’s new book will yield fresh insights.

The Lean CEO bridges the gap between Lean and conventional management practices in a way that addresses the specific needs of executives. Out of these interviews come very clear and challenging themes, actions, and common threads. The companies chosen are pioneers of Lean, and have shown outstanding success with hugely increased productivity, profitability, and both product and operational quality. Every one of them focuses on the people and understands customer value.

This is a great book about how it feels to practice Lean for real and a definitely MUST READ for all CEOs, managers, and Lean practitioners.

IndustryWeek Manufacturing & Technology Conference Review

Last week I spent several day in Chicago, IL, at IndustryWeek Inaugural Manufacturing and Technology Conference and Expo. IndustryWeek, MESA International and the Smart Manufacturing Leadership Coalition (SMLC) collaborated to provide the event on Smart Manufacturing, best practices from best plant winners, lessons learned from business leaders and practitioners.  

Summary: 
I would rate the Conference a 3 out of 5, or average.  There were about 500 attendees with 70 exhibitors so it is considered a small or regional conference. The conference did include a plant tour and a workshop session which was beneficial. The location was very convenient close to O’Hare where the convention hall was connected to the hotel.

Much of the conference was centered on IT and software integration in business. 

Plant Tour:
I visited Camcraft, a 2015 Industry Week 2015 Best Plant Winner, who manufactures precision-machined components for automotive fuel systems and hydraulics. Key points of tour:

• E2B2 (Everybody Every day getting Better and Better) continuous improvement program engages 100% of employees, producing over 5,000 completed improvements in 2015.
• A cadence of daily, weekly, monthly, quarterly, and annual meetings used to repeatedly measure performance, identify gaps, highlight waste, and encourage thousands of improvements from our empowered employees.
• Extensive robotics and automation paired with the latest machining and measurement technology. 10% of Sales reinvented in business annually.
• Real-time machine monitoring software (Mattec) used to measure and improve machine performance. Operator interface at machine.

Workshop:
I attended “How to Facilitate Effective Problem Solving (PDCA)” by Michael Thelen. The session focused on facilitation skills for leading a RCA team. This was a hands-on session with everyone taking roles within the team from Facilitation, Driver, Passenger, Navigators, and Pedestrians.

Conference Highlights:
Billy Taylor, Director at Goodyear, had a motivating keynote on engaging and empowering people in organization. Make business results visible and easy to understand. Train people in basic tools. Empower them to make improvements. Reward success. It is not about the source of the ideas but the quality of the solutions. 

Hoshin Kanri session – Develop break through objectives with SWOT analysis. Develop VSM to identify opportunities. Create a “STOP DOING” list of initiative. Hoshin Kanri is a selection process to the vital few. Monthly, Quarterly, Annually review cadence.

• Quantity does not equal quality of objectives
• Break through objectives are not continuous improvement – radical change

Lean Transformation Session – Lean failure comes from 1) too focused on tools 2) results focused not process 3) Forgetting companies past 4) Silos within organization 5) not communicating
7 must haves for Lean Transformation:

1. Fit for Purpose – alignment of objectives across organization
2. Pull vs Push  - manufacturing processes
3. Process focused – Focus on process and results will come
4. Value Stream Alignment vs Silos – Think horizontal across organization not vertical
5. Leverage vs Create – Leverage your best practices, what you do well
6. Principles vs Tools – Focus on the why not on the what
7. Clarity/Capability/Reinforcement – Answer the what’s in it for me question – keep reinforcing

Key Take-A-Ways from Conference: 

1. IT infrastructure and software are critical investments to data collection and analysis for improvements
2. Training employees of basic tools/problem solving is necessary but allowing them time to solve problems is critical. This is where behavior changes.
3. Hoshin Kanri process is about alignment, selection, and execution of objectives with a specific cadence.
4. Most of companies have own assessment model for operational excellence to compare facilities and assess progress on journey.
5. Continuous learning is vital for improvement. Benchmark others, especially outside your industry. A coach or mentor can be extremely helpful.

Lean Quote: Every Worker Should Be On A Team

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.

"Every worker should be on a team." — Taiichi Ohno

We all have roles in our organizations but it is the power of teamwork that makes our endeavors successful. It takes everyone working together on a common goal to be successful in Lean.

A team of people can achieve far more than the sum of the total of the individuals skills alone. In business teams can achieve:

They can generate a wider range of ideas and innovation than individuals;
They are able to motivate themselves;
They can bounce ideas off each team member;
They often take more risks than individuals;
They have a range of personalities such as workers, thinkers, leaders who contribute the right balance of skills necessary to achieve high performance;
They support each other and are not just task-orientated;
They can be a support mechanism which provide mentoring and allow others to grow in self-confidence.

Teamwork is important to the success of an organization, but as the saying goes: “it’s like getting rich or falling in love, you cannot simply will it to happen.” Teamwork is a practice. Teamwork is an outcome. And teamwork leverages the individual skills of every team member.

Collaboration and team work create an environment that allows the collective knowledge, resources and skills of each team member to flourish. When people work together they can complete tasks faster by dividing the work to people of different abilities and knowledge. Teamwork can lead to better decisions, products, or services.

 

Lean Tips Edition #94 (1411-1425)

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 #1411 – Make Suggestions Public

If you have a locked box for suggestions, please take it down. They are a symbol of a failed system from the past and they represent much that is wrong with American suggestion systems. Why locked? To hide participation, to hide ideas, to submit in secrecy, to not share ideas, … Make your Idea System public so participate or lack thereof is visible to all.

Lean Tip #1412 - Focus on Singles not Home Runs

Encourage small ideas that can be implemented quickly by the employee versus large changes that require external resources such as engineering, IT and facilities. While some of these types are inevitable, they need to be balanced with many more that can be completed within the unit.

Lean Tip #1413 - Encourage All Ideas

Don’t limit the number of suggestions by putting too many constraints. Let your employees know that you’re interested in any suggestions that they think will help the organization. As the Nobel Prize-winning chemist Linus Pauling said… “The best way to have a good idea is to have lots of ideas.”

Lean Tip #1414 - Show Active Interest in Employee Suggestions

Most employees wouldn’t continue to submit suggestions if their manager didn’t show interest in the suggestions. Showing active interest in their suggestions can encourage your employees to submit more suggestions that can benefit your organization.

Lean Tip #1415 - Share More, Not Less.

Even in a small company, silos emerge. A policy of more sharing will help everyone stay in touch with what others are doing, and create a collective expectation. Keeping everyone pointed in the same direction is hard; sharing more about what’s going on, how you’re doing things, reasoning behind decisions, etc. will help.

Lean Tip #1416 - Don’t Automatically Blame the Tool.

It’s not the hammer’s fault if the person swinging it uses the wrong end. It just won’t work well. Most tools are decent enough, they’re just used incorrectly. Rushing to change a tool because things aren’t working well may be a mistake.

Lean Tip #1417 - Process isn’t a Bad Word.

Lean can certainly get too heavy-handed and top down in its implementation, but without good processes in place your transformation will sputter along instead of hum smoothly. Good processes and a way of continuously improving them serves as a constant, in an environment of frantic change.

Lean Tip #1418 – Leverage Leadership to Create Change

In most organizations, employees follow leadership’s example. To create change, executives, directors, and managers must be the champions of knowledge sharing, transparency, and worker engagement. Dedicated personnel may give advice and direction, such as internal communications managers. But senior execs, department directors, and team managers need to back them up. This has to be a collaborative effort.

Lean Tip #1419 - Encourage Risk-Taking

Give your employees the freedom to experiment, learn from their mistakes, and succeed. Encourage them to take risks and think outside-of-the-box. Supporting your employees for taking risks further encourages them to be creative.

Lean Tip #1420 - Don’t Be Afraid of Mistakes

Mistakes help you learn what works and what doesn’t. Let your employees know that it’s totally okay to make a mistake. For many employees, the fear of making a mistake stops them from sharing their ideas or even thinking up great ideas. Letting your employees know that mistakes are okay, encourages them to share the great ideas they may have.

Sure, there will be mistakes. But some of those mistakes will turn into great innovations.

Lean Tip #1421 - Think of How To Do It, Not Why It Cannot Be Done.

The pessimist will create all kinds of reasons that something can't be done. The optimistic, forward thinker, on the other hand, knows that "if the why is strong enough, the how will come."

Focus on the outcome. Then, come up with all the ways that the outcome could possibly be accomplished.

Lean Tip #1422 - Do Not Seek Perfection.

Do it right away even if for only 50% of the target. If we all waited for perfection, we'd still be reading by candlelight and riding horses to work. Once you get to a certain point (whether it's 50% or 80%, or another number that makes sense), then run with it. In other words, take action. Then, adjust as you go along.

Lean Tip #1423 - Ask "Why?" Five Times and Seek Root Causes.

The question "why?" is extremely powerful. If a person has a strong enough "why", he or she can accomplish anything. The question "why?" can serve to either strengthen our conviction about something, or help us to discover that it really wasn't as important as we thought it was. At a minimum, it helps us to get to the root of the issue.

Each time you ask "why?", you reveal a new layer. You go deeper, and deeper. Then, after four or five answers, you'll get to the real one. Try it!

Lean Tip #1424 - Do Not Just Spend Money for Kaizen, Use Your Wisdom.

It is not enough to simply buy a tape set to learn skills, or to merely attend a workshop or seminar. These are wonderful (and essential, in my opinion) first steps, but action is key. Learn, yes. But then take action based on what you have learned.

Lean Tip #1425 - Seek The Wisdom Of Ten People Rather Than The Knowledge

Of One.

Much has been written about the power of group thinking. Whether it involves seeking one or two other people's opinions, holding a meeting with others, or more formal brainstorming or mastermind groups, there is power in numbers.

If you want to find out how to be successful at something, as someone who has already done it. Better yet, gather several people who have already done it. With libraries, the internet, and other resources available today, we have more opportunities than ever to gather the wisdom of others.

Lean Quote: Don’t Wait, Start Now

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.

"Don't wait. The time will never be just right." — Napoleon Hill

I am often asked when the best time to start your Lean Journey is. Well, the short answer is now.  There is never a convenient or inconvenient time for change.

Sometime, I hear “we are not ready for lean”. This is a rather circular argument, because effectively what the management is saying is that business processes are too bad and therefore it can’t implement improvement. Of course this means that the business will never improve! I have never seen a business where the processes where too bad to start improving.

Many organizations are waiting for the optimum time to change.  Unfortunately, tomorrow never comes.  If you allow it you will always find another distraction.  There is never a better time to start than now.  We really must invest every day in our future since you can't get back lost time.

Don’t spend your time trying to wait till things are perfect. Perfection is elusive. It is more important to get started. And it's better to get something done imperfectly than to do nothing perfectly.

 

Book Review: Lean Culture Change – Using a Daily Management System

There are many books that explain the why, the what, the when and the where. These are all very important. However without the how - the needed execution to achieve - high performance will not take place. Lean Culture Change does an amazing job all tying all the tools together to deploy and practice a lean management system.

Steven Leuschel, Lean healthcare practitioner pens book, Lean Culture Change Using a Daily Management System. This new book reveals decades of organizational transformation knowledge deeply rooted in the Toyota Production System and Toyota's culture. He covers the importance of daily huddles to develop respect for all employees, problem solving to stop firefighting, utilizing a balanced scorecard to drive performance improvement, strategy deployment to ensure all stakeholders are aligned to one purpose, how to improve the system vice sub-optimization, a safety system to ensure patient safety is priority, and how to sustain for the long haul.

The book is packed with principles, practices, and tools at a tactical level. It is a helpful resource for you to know the countermeasures to problems many organizations have in implementing Lean management.

Lean Culture Change is designed to be a training manual for team leaders and Senior Leaders who wish to study and adapt the Transformation Curve. This hands-on field book contains over 200 pages, 100 images/examples, and 6 case studies.

The target audience for this book is healthcare professionals looking to implement Lean however I believe all industry management can learn from this book. I would recommend Lean Culture Change to leaders looking to coach cultural transformation and continuous improvement.