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Copyright © Philip Holt STRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION Leading with Lean Philip Holt Head of Operational Excellence Accounting Operations

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Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

Leading with Lean

Philip HoltHead of Operational Excellence

Accounting Operations

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

Founded in 1891HQ in

Amsterdam NL

Sales of circa. €17Bn

Circa. 69K Employees

R&D Investment of around 7% of

revenue

Present in over 100 Countries

About Royal Philips

Leading with Lean

“Our goal is to improve the lives of 3 billion people a year by 2025”

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

The Leadership Problem

Leading with Lean

Only 13% of Employees

worldwide are engaged at work

Sources: Gallup 2013 Employee Engagement Survey & Harvard Business Review 2013

24% of Employees are actively disengaged

71% of Senior Executives rank

Employee Engagement as very important for

Organisational Success

?

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

A Work day like an episode of Scooby Doo

Leading with Lean

5. The mystery is solved, usually by Velma

1. The 'gang' arrive at a location for some, often unknown, reason

4. Scooby and Shaggy are chased by a ghoul or spectre of some form

3. The gang find themselves embroiled in the problem and observe the same superficial cause

2. It appears that some strange things have been occurring, with some apparently supernatural cause

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

The Mindset

Leading with Lean

“Be a Yardstick of Quality. Some people aren’t used to an environment where excellence is expected”

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

Leading with Lean

Leading with Lean

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

Leadership Activism

Leading with Lean

FROM:Advocate /

Involved

To:Activist /

Committed

- Set Targets- Delegate- Support- Observe

- Achieve Targets- Lead

- Participate- Role Model

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

Virginia Mason

Leading with Lean

Start of the 21st Century:• Survival • Poor retention • Leadership Change• A Defective Product

(34% rate)

The Challenge:• Who is our Customer?• Processes designed around

staff, not Patients• Patients’ care too low

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

Virginia Mason

Leading with Lean

“…you need to have visible and committed Leadership; not advocacy leadership…” – Dr. Kaplin

The VMPS(Virginia Mason Production System)

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

Genchi Genbutsu (go see) At the Gemba (where possible) Must be fact based Not just for Manufacturing The Workplace as a Showcase of

Excellence

Living the Lean Principles Not just being seen; supports Activist

Leadership Understanding the status now Building Trust Check = Care

Visible Leadership

Leading with Lean

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

Visible Leadership

Leading with Lean

1.Who is this?

2. What is wrong with the Photo?

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

Mosquito Leadership

Leading with Lean

Infects the Organisation with Change

Influences beyond their sphere of control

Takes a Thought Leadership role

Disruptive not a nuisance

Challenges the Status Quo

Lives the Culture that the Organisation wants

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

Coaching Leadership

Leading with Lean

FROM:Directive /

Telling

To:Coaching /

Asking

Micro-Manager Expert Command & Control Distrust Opinion Based Remote / Distant

‘Problem Solving’ Hire and Instruct Short-Term View

Strategist Leader Agree & Expect Entrust Fact Based Problem Solving at

the Gemba Hire and Learn Long-Term Vision

Copyright © Philip HoltSTRICTLY CONFIDENTIAL – DO NOT USE OR REPRODUCE WITHOUT WRITTEN PERMISSION

Lean Leadership

Leading with Lean

Leadership Activism provides the essential

elements of Role Modelling and leading

by example

Mosquito Leadership multiplies the Leader’s

impact beyond their span of control, which will usually, even in the case of Senior Leaders,

be quite small

Visible Leadership ensures that the

employees see what the Leader is doing and helps to engage the team members

Coaching Leadership moves from directive

to coaching leadership and enables sustainable

improvement