a developmental pathway to lean
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A developmentalpathway to lean
Change Management in Lean ProcessesDrs. René L.M.C. Aernoudts
23th of June 2004
René Aernoudts• Chairman of the Lean Management Institute in the
Netherlands • Managing director of Sentary Coaching & Consulting• Background in Business Economics, Sociology and
Organisational Behaviour• Before founding the Lean Management Institute he was a managing
partner of a renowned consulting firm• Ran lean projects in banks, cities, a brewery, NGO (WWF),
supermarkets, a commercial research organisation, a printing firm, garbage recycling companies, governmental institutes, publishingcompanies and different manufacturers (fridges, toilets, electronics)
• His objective since 1998 is to bring lean and the typical results that come with it to service and non profit organisations
• Websites: http://www.leaninstituut.nl and http://www.sentary.com
A developmental pathway to leanWhere do I start? How can I run a successful lean project?What do I have to do to achieve sustainable results?What are the typical pitfalls? What’s the best road map for me?
Definition of Lean:• It’s not about cost cutting…!• It’s about creating more value for your customers,
stakeholders and employees!• To do this we need resources, and therefore we
eliminate waste! • Question to ask at the beginning
of a Lean Project: what are wegoing to do with the resourcesfreed up by this Lean Project?
Lean: more than a toolboxParadigm, Philosophy
Leading principles
Fundamental concepts
Leadership
Change process
Methods and instruments
Indicators
Behaviour
A lot of change processes fail• Research in the USA, the UK and the
Netherlands show that 70 to 75% of all change processes fail…
• Main reasons? The participating persons and the way change processes are designed
• Planned change is not enough to solve dynamic and complex questions
• Leaders (and consultants!) need to be aware of the fact that their own role and the way they steer a change process are the crucial success factors
• What about Lean Change processes???
A lot of change processes fail
A lot of change processes fail• Polarity Blueprint versus Developmental approach• Blueprint approach chosen by more then 80% of
management. Fail rate: 80%! Success rate: 20%!• Developmental approach chosen by less then 20% of
management. Fail rate: 17%! Success rate: 83%!• Why do managers choose a blueprint method? Mainly
because it seems to create certainty, communicates (/sells) easily and keeps the power at the top
• Is a blueprint method therefore worthless? No, it’s useful when technical and instrumental aspects are involved
• A developmental approach is more effective when the situation asks for a more radical change, not only in the processes or structure but also in behaviour
A lot of change processes fail
Uhu, a bit sticky though…
Good idea huh, painting the floor!
Assumptions of PCPlanned Change• Organizations as adaptive systems to market demands • Human beings as social capital to perform objectives• Employees motivated by personal advantage• Managers using position power in steering changes • Consultants as knowledge-driven experts• Organization life as source of shortcomings• Focus on economic measures of performance• New design of business processes • Top-down steering of change process • Solution-oriented based on value chain• Episodic change with stable end situation • Single linear change process• Techno-economical process rationality • Strict norms and planning in change process• Start with abstract business models• Emphasis on expert knowledge • Separation of design and implementation of changes • Learning as reflection by change managers• Knowledge development by using techniques
Assumptions of ODOrganizational Development• Organizations as purposeful socio-technical system • Human beings as creative and collaborative persons• Employees motivated by developing human potential• Managers using personal power in mutual collaboration • Consultants as process-driven facilitators • Organization life as source of experience• Focus on improvement of effectiveness and working life• Improvements based on the existing organization• Utilization of knowledge and insight of personnel• Problem-oriented based on working experiences• Continuous change improvement• Iterative change process • Social-political process rationality • Regard for ability to change in emergent change process • Start with concrete working experiences • Application of operational knowledge• Smooth transition between phases in change • Learning as a collective and ongoing activity • Knowledge development by action research
Combining the knowledge• We need Kaizen and Kaikaku: radical change
and continuous improvement• Build a Lean Development Structure, because
it’s often difficult to create change through the operational organisation
• Empower people at all levels by letting them play an active and crucial role as change agents or process owners
• Stimulate a Lean, Learning, Living culture
First thing to do: make a mapVivid picture of the futureLean Team
Illustrative examples
Key questions
Leading lean principles
?
Objectives (measurable
results)
Let’s make a start with a map!Vivid picture of the future
Illustrative examples
?Key questions
Leading lean principles
Objectives (measurable
results)
We’ve just started…Designing the process between the key questions and the vivid image of the future:
• Four phases and four levels• Structure of a lean development
organisation (time structure with roles)• Every development process needs a
process owner (change agent)• What are the leading lean concepts for your
situation and how to apply them
Designing the Lean Development Process
Some rules:• Involve persons concerned and interested
parties in the process• We only tackle problems that really arise• We take every advice serious and give
feedback to the person that gave it to us• From a discussion culture to an advice
culture• The realisation is the main course - not the
dessert
Four phasesMOBILISE &ORIENTATE
RESEARCH &EXPERIMENT
REDESIGN,IMPLEMENT
& EQUIPINTEGRATE &
ESTABLISH
Ask process ownersRun an introduction
workshopChoose a lean process
or a product familyVisit best practices
Set up the infrastructureMeasure the
CS figures
Plan and targets Analyse customerprocess and
interfacesDraw a current
state map
Create “short tracks” or quick wins
Just do and seewhat happens
Prepare a paper
Draw future state maps
Make a plan forimplementationImplement thechosen future
stateTrain personnelin the new ways
of workingMeasure the
improvements
New advice culture
Establish training
programmesStandardize
meetingsStart with newprocesses andset up projectsStimulate the new culture
Four levels
MANAGEMENT
PROCESS OWNERS
TEAM LEADERS
INDIVIDUALEMPLOYEES
INTEGRAL LEAN DEVELOPMENT PROCESSES
IMPROVEMENT PROCESSES PER DEPARTMENT
KNOWLEDGE TRANSFER, SKILLS AND BEHAVIOUR
VISION, STRATEGY, EMPOWERING, COMMUNICATE
Development infrastructure
MANAGEMENT
PROCESS OWNERS
TEAM LEADERSINDIVIDUALEMPLOYEES KNOWLEDGE TRANSFER, SKILLS AND BEHAVIOUR
IMPROVEMENT PROCESSES PER DEPARTMENT
INTEGRAL LEAN DEVELOPMENT PROCESSES
VISION, STRATEGY, EMPOWERING, COMMUNICATE
MOBILISE &ORIENTATE
RESEARCH &EXPERIMENT
REDESIGN,IMPLEMENT & EQUIP
INTEGRATE &ESTABLISH
Example Value Stream Map (1)Description Value Stream Map
Current StateAnalysis
Throughput time
Value AddedNon Value Added NecessaryNon Value Added Not Necessary
Type of process
Lay-out and visualisation
Types of waste
Communication
Planning & Control
Levelling tasks
Return on investment1,2,3 (A,B,C)
Bottleneckconclusions
Data and indicators
Example Value Stream Map (2)Description Value Stream Map
Future StateAnalysis
Throughput time
Value AddedNon Value Added NecessaryNon Value Added Not Necessary
Type of process
Lay-out and visualisation
Types of waste
Communication
Planning & Control
Levelling tasks
Return on investment1,2,3 (A,B,C)
Bottleneckconclusions
Data and indicators
Managing a lean process
Confusion
Fear
Slow change
Frustration
False start
REALCHANGE
Vision Skills ResourcesActionPlanIncentive
Vision ResourcesActionPlan
ResourcesActionPlanIncentive
Vision ResourcesIncentive
Vision ResourcesActionPlanIncentive
Vision ActionPlanIncentive
Skills
Skills
Skills
Skills
Lean road maps
Lean road maps
Where do I start?By asking yourself the right questions! Why do I want to achieve with this Lean Project?Create a crisis…Communicate examplesVisit other organizations a few steps ahead and way beyondTransferring knowledge Ask a team and start mapping!
How can I run a successful lean project?
Follow the principles, start with the first one, although it isn’t always easy!Get some helpCreate a road mapMake your own instruments and your own business systemIncorporate people with concrete tasks
What do I have to do to achieve sustainable results?
Involve personnelCreate quick wins and communicate resultsShow the improvements from the employees perspectiveCreate a supporting infrastructureYou are the living example, be aware of your own actionsBeware of the hype of the month
What are the typical pitfalls?
Failing Leadership!Bare in mind the while managing: incentive, vision, action plan, skills and resources… It’s a golden formula without any hard work to do…We have so many other things to do that take up our time, energy and money…
What’s the best road map for me?
You saw some but…Make your own map!Share this with a few colleagues and consultantsJust go out, do it and have fun while you’re at it!
Thank you!
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