Leading the Change Process Book Manufacturers’ Institute Management Conference Spring 2006 David Meier Lean Associates, Inc. Thanks to Jeffrey Liker for some information All materials copyright  1992-2006 Lean Associates, Inc. all rights reserved. No part of this presentation may be reproduced without written permission from Lean Associates, Inc. 1000 Falcon Wood Way Lexington, KY 40511 (859) 552-5326

The Toyota Way 4 P Model People and Partners Philosophy Problem Solving (Continuous Improvement and Learning) People and Partners (Respect, Challenge and Grow Them) Process (Eliminate Waste) Philosophy (Long-term Thinking) Source: Jeffrey Liker, Author: The Toyota Way Copyright 2006 Lean Associates, Inc. 859-552-5326

Create a Long–Term Philosophy “A journey of one thousand miles begins with a single step…” Confucius “…Followed by about 2 Million difficult, challenging, continuous steps.” David Meier All materials copyright  1992-2006 Lean Associates, Inc. all rights reserved. No part of this presentation may be reproduced without written permission from Lean Associates, Inc. 1000 Falcon Wood Way Lexington, KY 40511 (859) 552-5326

Lean Systems are a Matter of Philosophy Lean Thinking “Learning to See” Waste “Thinking Production System” Good Thinking, Good Products Copyright 2006 Lean Associates, Inc. 859-552-5326

Defining the Purpose of the Organization Company Purpose Learning Community ST: Capable People LT: Learning to Improve Lean Systems ST: Capable Processes LT: Value Stream Improvement Learning Enterprise ST: Capable Partners LT: Learning Enterprise Value-Adding Contributor ST: Profitable LT: Growth and contributing to society Key: ST=Short term LT=Long term Internal External People Business Copyright 2006 Lean Associates, Inc. 859-552-5326

Copyright 2006 Lean Associates, Inc. W a t e E m n r f c M u R d L T C F w S g I " b Q k U z V H ! K , D O Start with Philosophy… end with desired results Copyright 2006 Lean Associates, Inc. 859-552-5326

Establish a Long-term Vision Why do lean? What is your personal motive? How will you create an environment that goes beyond mere compliance? Are you committed to the journey? Copyright 2006 Lean Associates, Inc. 859-552-5326

Copyright 2006 Lean Associates, Inc. What is Leadership? Getting people to go where they would not normally go Getting people aligned to a common objectives Having guts Being a talent scout and developing talent Copyright 2006 Lean Associates, Inc. 859-552-5326

Great Leadership Begins With Desire More than a desire for the position or rank Leadership skills can be taught, desire can not Desire to learn Desire to face the challenges Desire to find the value in people Willingness to persevere Copyright 2006 Lean Associates, Inc. 859-552-5326

The Process Always Begins With Leadership Are you willing to make short-term sacrifices for long-term benefit? Can you make the tough decisions? Are you willing to stand against the tide? Are you willing to face the challenges of changing a culture? Really? Copyright 2006 Lean Associates, Inc. 859-552-5326

Committed versus Involved Cow, Chicken, and Pig How much will you learn about the process? How will you guide and coach if you do not learn? How much time will you personally invest? Many people sense the commitment of the leader and commit to the same degree Copyright 2006 Lean Associates, Inc. 859-552-5326

Focus on the Desired Outcome… …not just the roles and responsibilities of the position Supporting Operations- Continuously improving process and results Supporting and developing people (a leader develops other leaders) Leading the people in the process of change Copyright 2006 Lean Associates, Inc. 859-552-5326

“If it weren’t for the people this would be easy.” “But, if it weren’t for the people this would be impossible.” All materials copyright  1992-2006 Lean Associates, Inc. all rights reserved. No part of this presentation may be reproduced without written permission from Lean Associates, Inc. 1000 Falcon Wood Way Lexington, KY 40511 (859) 552-5326

Importance of People at Toyota “We build people, not just cars.” Toyota is frugal on manufacturing expenses, but lavish on people costs (development, incentives, rewards). Thinking is a critical ability and it is expected. Without the ability to think and to improve the system is useless. Copyright 2006 Lean Associates, Inc. 859-552-5326

Copyright 2006 Lean Associates, Inc. Importance of People Motivating Developing Challenging Getting the best thinking Getting the best effort Maximizing the return on human investment Copyright 2006 Lean Associates, Inc. 859-552-5326

Copyright 2006 Lean Associates, Inc. The $64,000 Questions How do you get people to “buy in” How do you convince the people who don’t want to change? How do you get people motivated? What was wrong with the old way? Copyright 2006 Lean Associates, Inc. 859-552-5326

Nucor Steel on the Art of Motivation Employees will make an extraordinary effort if you reward them richly, treat them with respect, and give them real power. The art of motivation is about an unblinking focus on the people on the front line of the business. Nucor does not just create steel, they create knowledge. “Our culture is a living thing. It will never die because we will never let it die, ever.” Business Week 05/01/06 Copyright 2006 Lean Associates, Inc. 859-552-5326

Making the Work Meaningful People want to know that what they do matters People expect to have meaning in their work Let’s face it, the task can be routine There is a high priority on learning and development People like to feel a sense of accomplishment Copyright 2006 Lean Associates, Inc. 859-552-5326

The Key to Motivation- Know the People Money is not the only motivator! Moving towards positive influence Moving away from negative influence Challenge, Reward, Achievement Fear, Reprisal, Loss Embarrassment, Failure Copyright 2006 Lean Associates, Inc. 859-552-5326

Copyright 2006 Lean Associates, Inc. Clarify Expectations Not everyone needs to be a star Above Expectation Below Expectation But no one can be below expectation Copyright 2006 Lean Associates, Inc. 859-552-5326

Helping People Develop Capabilities Identify interested people Know people What do they like and want? Find what is aligned with the needs of the organization Specify your interests and needs Identify obstacles and need for change Provide Support Provide Guidance Achieve mutual objectives Copyright 2006 Lean Associates, Inc. 859-552-5326

W.A.V.E. 5% W.A.S C.A.V.E. The People Bell Curve 90% 5% Where will you spend your time and effort? Copyright 2006 Lean Associates, Inc. 859-552-5326

Copyright 2006 Lean Associates, Inc. The People Curve You need to find the 5% of the population from the WAS group who can influence the masses True W.A.V.E. True C.A.V.E. More Wave Tendencies More Cave Tendencies Copyright 2006 Lean Associates, Inc. 859-552-5326

Reach the Critical Mass Small percentage will influence the masses Reach the unofficial leaders People don’t like to be left out of something good People don’t want to stand alone from the crowd Copyright 2006 Lean Associates, Inc. 859-552-5326

Continuous Improvement “Every day, little up” “Some days, big up” Please try Do your best “Until you take the first step, it will not be possible to see the next step” Copyright 2006 Lean Associates, Inc. 859-552-5326

Copyright 2006 Lean Associates, Inc. Questions / Comments Contact Information: David Meier 859-552-5326 Dmeier@leanassociates.com Copyright 2006 Lean Associates, Inc. 859-552-5326