LEAN CULTURE Debra Setman Be sure there is an additional room available for the three break-out exercises. You will need two flipcharts per room and three different color markers per room. as well as an overhead projector for your laptop. Please distribute the PowerPoint file of Japanese terms and acronyms and the link to the Lean Lexicon to the learners before class. If people do not know one another, use name tents on the tables. Also, facilitate introductions. Suggestions: play “Two Truths and a Lie” or have learners introduce the person sitting next to them with the answers to four questions: Name?, Role?, Biggest accomplishment at J&J?, and Something you are proud of in your personal life?

What is your culture? Fill in items under each heading. Group Exercise Part 1: What Is Organizational Culture? Corporate culture is the personality of an organization. It guides how employees think, act, and feel. Johnson (1988) identified a number of elements that can be used to describe or influence organizational culture. What is your culture? Fill in items under each heading. The Paradigm Stories and Myths Control Systems Culture Rituals and Routines INSTRUCTIONS: Break the group into two or three smaller groups (3-8 people per group) and have the groups identify the CURRENT culture in their organization by identifying examples under each category. Give the groups 20 minutes to complete this task. Make sure they use a flip chart and use only one color marker. Each group needs to choose a facilitator to explain the findings to the large group when reconvening. DEFINITIONS: Paradigm – What does your company see as its guiding principles? How does it view itself in the marketplace? Examples, customer focused, employee focused, safety, financial success, focused on profit, valuing employees, etc. Control Systems – How does your company create organization within and between groups. Also what are the attitudes of your employees and how are things measured and monitored? E.g.- OGSMs, dashboards, firefighting the norm, single person heroics. Organizational Structure – How is your company organized to make your products or deliver your services. E.g.- Hierarchical, flat, matrixed, team-based, functionally organized. Power Structures – How does your company make decisions? E.g.- All decisions made at top levels, decisions made by department heads, accountability throughout the organization. Symbols – What are some visual symbols, icons, communications, etc. that are associated with your company. E.g.- boards, Credo, OGSMs, dashboard, safety logo, company logo, colors. Rituals and Routines – Name some common tasks, meetings, activities, events, etc., that are done on a repetitive basis. E.g. - Daily operations meetings, town hall meetings, credo survey, annual awards ceremony. Stories and Myths – what are some stories that define what your company stands for. E.g.- Tylenol story at J&J. Organizational Structures Symbols Power Structures 2 SOURCE: http://www.managementhelp.org/org_thry/culture/culture.htm; Johnson, G. (1988). Rethinking incrementalism. Strategic Management Journal, 9, 75-91.

Lean Thinking Lean has a variety of tools used to enable the culture. They are designed to reduce waste and increase customer value. Below are some tools used in lean thinking. Mistake- Proofing Kanban Visual Workplace and 5S Standard Work Kaizen KPIs Value-Stream Mapping ME2 Rapid Changeover Our Approach to Lean Thinking Even though lean IS a culture, there are indeed tools to use in order to achieve the culture. 3

Lean Culture Lean Culture The Paradigm Elements of culture from Johnson (1988) can be linked to a lean culture: Customer first after safety Vision and values embraced by all Hansei 5 whys Teamwork Kaizen (Relentless focus on waste) Jidoka Stories & Myths Deming Taylor Ford Toyoda Ohno Control Systems Goal alignment (Hoshin Kanri) Red is not necessarily bad No-blame environment Never give up attitude Trial and error Challenge and failure KPIs Compliance with safety and government regulations Rituals & Routines PDCA Hansei Gemba walks Team huddles Problem-solving Waste (muda) elimination Effective meetings Constant improvement (every improvement is worthwhile, no matter how small) Both recognition and constructive, helpful criticism Lean Culture This is the most important slide in the deck! It is critical here to show how lean is a culture! Ask the group: Are there any other items that can be added to the lists? Make the point that this relates back to the Exercise Part 1 slide and this shows what a lean culture looks like. Jidoka = in-station process control. Allowing people to detect when an abnormal condition has occurred and immediately stop work in order to prevent defects from passing on. Gemba, - where the activity takes place. Symbols Organizational Structures JIT Std work VSM Visual workplace Kanban Layout—FIFO racks Colors Long-term focus Triangle Servant-leader mentality Consistent and clear titles Power Structures Team ideas rule Action oriented Change oriented Employee accountability and empowerment 4 SOURCE: http://www.managementhelp.org/org_thry/culture/culture.htm; Johnson, G. (1988). Rethinking incrementalism. Strategic Management Journal, 9, 75-91.

Culture Culture Group Exercise Part 2: What Is Organizational Culture? Exercise: Go back to the output from Part 1 and compare it to a lean culture. Identify areas under each category that you could/should work on improving to move toward a leaner culture. Use a different color marker on the same flipchart paper from the first exercise. Stories and Myths The Paradigm Control Systems Culture Culture Rituals and Routines Make sure the participants return to their original groups from Part 1 (preferably divided in different rooms). USING A DIFFERENT COLOR MARKER, write the parts of a lean culture (found on page 21), that they would like to improve on in their own organization’s culture. Identify at least two items in each category and write them on the same flipchart used in Part 1. Select a facilitator/presenter to guide the group and present to the larger group when reconvening. Allow 15 minutes in the subgroup and 10 minutes in the larger group for discussion. Organizational Structures Symbols 5 Power Structures SOURCE: http://www.managementhelp.org/org_thry/culture/culture.htm; Johnson, G. (1988). Rethinking incrementalism. Strategic Management Journal, 9, 75-91.

References Bridges, W. (2003). Managing transitions. New York: Perseus Publishing. Convis, G. Role of management in a lean manufacturing environment. Automotive Manufacturing & Production, July 21. Ford, H. (1988). Today and tomorrow. New York: Productivity Press. Johnson, G. (1988). Rethinking incrementalism. Strategic Management Journal, 9, 75-91. Kotter, J.P. (1996). Leading change. Boston, MA: Harvard Business School Press. Liker, J.K. (2003). The Toyota way. New York: McGraw-Hill. Mann, D. (2005). Creating a lean culture. New York: Productivity Press. Schein, E.H. (1988). Organizational culture. Cambridge, MA: Sloan School of Management, Massachusetts Institute of Technology. Womack, J.P., & Jones, D.T. (2003). Lean thinking. New York: Free Press. Womack, J.P., Jones, D.T., & Roos, D. (1990). The machine that changed the world. New York: Scribner http://www.brainyquote.com/quotes/authors/h/henry_ford.html http://www.chapters.indigo.ca, About the Book http://www.coe.montana.edu/ie/faculty/sobek/ime458/BR/Sp02/partainBR.htm http://www.despair.com http://www.emsstrategies.com/dm070104article2.html http://www.entarga.com/stratplan/culture.htm, enTarga (Ross A. Wirth, Ph. D.) http://www.eyewitnesstohistory.com/ford.htm http://www.fordforums.com/showthread.php?t=36364 http://www.lean.org/THE MACHINE THAT CHANGED THE WORLD http://www.managementhelp.org/org_thry/culture/culture.htm http://www.strategosinc.com/training_cult1-h1.htm CHANGE MANAGEMENT RESOURCE: ask JJPE for internal resource suggestions. Also, take the CM on- line module offered through the JJPE website. 6