1. 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  Lean Associates, Inc. all rights reserved. No part of this presentation may be reproduced without written permission from Lean Associates, Inc.
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2. 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.

3. 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  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 (859)

4. 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.

5. 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
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6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. “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  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 (859)

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.

19. 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.

20. 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.

21. 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.

22. 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?
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23. 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.

24. 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.

25. 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.

26. Copyright 2006 Lean Associates, Inc.
Questions / Comments
Contact Information:
David Meier
Copyright 2006 Lean Associates, Inc.