1. Lean India Summit 2014
Transformational Lean Leadership John Shook Lean Enterprise Institute Lean Global Network September 2014
© Copyright Lean Enterprise Institute.
Lean Enterprise Institute and the leaper image are registered trademarks of Lean Enterprise Institute, Inc.

2. Understanding Lean Transformation
Aligning:
Purpose
Process
People
to create value

3. What situational problem do we need to address? How to improve
is our
PURPOSE?
What situational problem
do we need to address?
How to
improve
the work?
How to
develop
the people?
What
leadership
behavior and
management
system do
we need?
What
leadership
behavior and
management
system do
we need?
What leadership behavior and management system do we need?
What is our BASIC THINKING??

5. What is the role of leaders in a lean transformation?
I frequently hear…
“I can’t get my people to do this. How can I get people to do this…?”
How to reply…? 5
john shook

6. Change – the leader’s role…
“How can you get others to “do this”…?
Only one way…

7. Lean Leadership
…is obviously different from the old command and control dictator.
It is equally different from the commonly accepted notion of the “enlightened modern manager”.

8. Lean Enterprise Institute

9. But, What IS “Leadership” Anyway??
And where does it fit in with organizational and personal CHANGE or “transformation”?

10. What IS “Leadership” anyway??
“The greatest leaders of the 20th century were Hitler, Stalin and Mao: If that is “leadership”, I want nothing to do with it.”
- Peter Drucker

11. Practice of Leadership
Lean Leadership
Practice of Leadership vs
Exercise of Power
“I could put a loaded gun to your head…”
True leadership exists when people follow when they don’t have to…”
- James MacGregor Burns
Types of lean leadership- kaizen and kaikaku too

12. Lean is Personal and Organizational
New United Motor Manufacturing, Inc. – NUMMI – built its first car in December 1984 and its last in April 2010.

13. A Transformation Story: Toyota and General Motors

14. The Worst Factory in the World…
Certified Worst!

16. From the Worst to the Best…
Certified!

17. NUMMI and the Role of Leadership
Graphics slide. Place graphic within the white box.

18. Four lessons in leadership from NUMMI: “Establish mutual trust”
“No problem is problem”
“Lead as if you have no power”
“Before you build cars, build people”

20. Solving Problems at the Gemba
No Problem is a Problem
Solving Problems at the Gemba
HERE! NOT HERE
GEMBA
Data Analysis Room
DATA !
WORK FLOW
TOOLS
DEFECT!!

21. Kan Higashi to Gary Convis… (NUMMI’s senior Japanese and American leaders)
“Lead the organization as if you have no power."

22. Practice of Leadership
Lean Leadership
Practice of Leadership vs
Exercise of Power
“I could put a loaded gun to your head…
True leadership exists when people follow when they don’t have to…”
- James MacGregor Burns
“Lead as if you have no power.”
- Kan Higashi to Gary Convis
Types of lean leadership- kaizen and kaikaku too
john shook
John Shook

23. The Key Factor of Key Factors: Developing People
Matt Long of the Herman Miller company:
“We aren’t just solving problems…
We are developing problem solvers.”

24. The Twin Responsibilities of a Lean Leader
Get the job done and develop your people…
and accomplish those at the same time
How…?

25. Lean Management Responsibility vs Authority
John Shook * David Verble
Lean Management Responsibility vs Authority
In my five years in Toyota City, almost never was I given solutions.
Yet, I was not free to just do what I wanted.
I was given clear responsibility to propose solutions to problems I owned. 21

26. Ownership of Performance Responsibility vs Authority
John Shook * David Verble
Ownership of Performance Responsibility vs Authority
In a traditional hierarchical organization:
Position establishes (or seems to) authority to make decisions.
-> In cross-functional organizations, this causes confusion, frustration, and breakdown of the decision-making process.
In a Lean Organization:
Position establishes responsibility to get decisions made. 21

27. Making Decisions and Creating Alignment
RESPONSIBILITY-BASED
AUTHORITY-BASED
Focus: Decide the right thing
Focus: The right to decide

28. Lean Management Control with Flexibility
This way of managing provides extraordinary focus, direction, “control.”
While at the same time providing maximum flexibility.
This way of working can resolve the age-old dilemma that encumbers all large organizations: control vs. flexibility.

29. Change – the leader’s role…
“How can you get others to “do this”…?
Only one way…
The challenge is not “getting other people to do this”…
The challenge is getting YOU (and me) to do this!

30. The Lean Leader’s Challenge
John Shook * David Verble
The Lean Leader’s Challenge
Make objectives, outcomes, assignments clear enough that the subordinate can approach the task with confidence.
Yet, open enough that responsibility is not taken away.
So the individual doing the work has clear responsibility to propose solutions with a sense of entrepreneurial ownership.
 Clear direction with clear ownership 21

31. The Lean Leadership Challenge
Akzo Nobel SCA II December 2011
The Lean Leadership Challenge
Enable each person to take responsibility to solve problems and improve his or her work
Align each persons’ work to provide value for the customer and prosperity for the organization
Get the work done and Develop Capability - at the SAME TIME!
 Begin with Yourself!!

32. Chairman Fujio Cho of Toyota: Three Keys to Lean Leadership
Go See.
“Sr. Mgmt. must spend time on the front lines.”
Ask Why.
“Use the “Why?” technique daily.”
Show Respect.
“Especially the people doing the value-creating work.”

33. "Lean management is less about providing the right answers than asking the right questions and trying things or encouraging others to try things.

34. The A3 as a Job Aid for Managers as Coaches

35. Basic Thinking – Lean Thinking
Principle of “Just Enough”
Practice of Questioning and Experimenting
Structured Questions and Experiments

36. The A3 as a Job Aid to Ask Good Questions

37. The Twin Responsibilities of a Lean Leader
Get the job done and develop your people…
and accomplish those at the same time
How…?

38. Results and Process Manage by Results (MBO/MBA)
Manage by Means (Process)
- H. Thomas Johnson
john shook

39. “Go See” “Data is of course important,
but I place greater emphasis on facts.”
-Taiichi Ohno

40. Measures/KPI “There is no true value of any measurement” (Deming)
The map is not the territory (SI Hayakawa)
What gets measured gets…

41. Measures/KPI “There is no true value of any measurement” (Deming)
The map is not the territory (SI Hayakawa)
What gets measured gets…
…GAMED!

42. Assessment and Feedback
Carol Dweck gave different feedback to two groups of test takers.
Group A:
“You must be really smart at this!”
Group B:
“You must have worked really hard!”
john shook

43. Praise Results or Praise Effort?
“You must be really smart at this!”
 Performance worsened!
“You must have worked really hard!”
Performance steadily improved!
A 30% gap emerged
john shook

44. Results and Process
GOOD
GOOD
PROCESS
BAD
GOOD
RESULTS

45. Results and Process
GOOD
GOOD
PROCESS X
BAD
GOOD
RESULTS

46. Results and Process
GOOD
GOOD
PROCESS ? ? X
BAD
GOOD
RESULTS

47. Results and Process GOOD GOOD Potential to improve Lucky! X BAD GOOD

48. KPI and KSF Key Performance Indicator Key (Critical) Success Factor
The objective is what needs to happen
The KSF is determined by asking, “what needs to happen for that to happen?”
Leaders establish alignment around the vision and key objectives
Then break those down into the processes that can deliver on the KSFs.
john shook

49. KPI and KSF
Then, break those down into the processes that can deliver on the KSFs…
“Process” = The “work to be done”. What needs to be done and HOW to do it.
Become obsessive about that. That’s the fun in all this.
john shook

50. NEXT TARGETED CONDITION
Leading Through Capability Development Through Collaborative Problem Solving
No Problem is
a Problem!
L E A R N I N G
C O L L A B O R A T I V E
NEXT TARGETED CONDITION
LEARN TO SEE
GtS P D C A
GtS
TARGETED CONDITION P D C A
GtS
Tools P D C A
Tools
Gap/Problem/Opportunity
Tools
CURRENT CONDITION

51. Off We Go The good news is that you can do this.
The other good news is that it is going to be really hard work.
The troublesome news is that there is no “roadmap”. (And beware of consultants who want to sell you one!)
But – more good news – you are not floating adrift! You have the Lean Transformation Model as your compass, your GPS, to help guide you.
john shook