Post on 19-Jan-2017
Mark GrabanVP of Customer Successmark@kainexus.com
Three Primary Assumptions of Successful Lean Leaders
Jacob StollerAuthor, The Lean CEO
jacob@stollerstrategies.com
Agenda & Logistics• Presentation (40 minutes)• Q&A (15 minutes)– Use the GoToWebinar
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• Recording link & slides will be sent via email
Three Primary Assumptions of
Successful Lean Leaders
Jacob StollerMarch 15, 2016
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Saved by the dashboard
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Primary Assumption: The safest way to get home is to watch your instruments and do what they say.
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Results ($)
Commands
Sloan’s Command and Control Dashboard
Gemba
Primary Assumption: Financial reports tell the truth about the business.
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What the financials don’t tell us…
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Waste
Variation
Employee disengagem
ent“3% of the problems have figures, 97% of the problems do not.” W. Edwards Deming
The Lean CEOsMike Lamach, Ingersoll RandBob Chapman, Barry-WehmillerGeorge Koenigsaecker, Jake BrakeBob Brody, Franciscan Health CareHugo Levente Bara, SupremiaKevin Meyer, Specialty SiliconEd Byczynski, PLZ AeroscienceTom Everill, Northwest Center
Pat Lancaster, LantechArt Byrne, WiremoldPaul Steffes, SteffesSteve Brenneman, ATCKarl Wadensten, VibcoPierluigi Tosato, San BenedettoJohn Toussaint, ThedacareGary Kaplan, Virginia Mason
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Mark Richards, AppvionJim Martin, Goodwill IndustriesJorge Pinto, Caetano BusMary Andringa, VermeerChris McBean, eLeatherEric Ries, The Lean StartupJim Lancaster, LantechBrian Walker, Herman Miller
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People
Information
Process
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Three Primary Assumptions for Running the Business
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Bad Profits
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Information
Primary Assumption # 1
Customer value is the primary dashboard for success.
It’s all about radical transparency.
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Leadership
Commands Results True North Problems
Leadership
“This is not for the weak of heart. This is so hard every single doggone day. Lean will surface all of your shortcomings and force you to deal with all the details.” Karl Wadensten, CEO, Vibco
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Art Byrne’s Customer Value Dashboard
Customer service %
Inventory turns
ProductivityQuality (defects)
Visual control
(5S)
Letting go of the old way…
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“You can write the report if you like, but I can guarantee you that I won’t read it.”
“Don’t look past the results.”
Art Byrne, Former CEO, Wiremold Mike Lamach, CEO, Ingersoll Rand
Order Processing Engineering Procurement
Value is horizontal.
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Production Shipping
Customer Value
Re-thinking accountability
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“Accountability is not about setting goals and then shaming people who don’t hit the goals. Accountability is about making sure that everybody understands what we’re trying to do.”
Jim Lancaster, CEO, Lantech Inc.
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Process
Primary Assumption # 2Continuous improvement of people and processes towards an ideal state leads to sustainable results.
Continuous improvement as a strategy
Develop people so that people will improve processes in order to drive results.
Capital CostsAdded Headcount
WasteCycle TimesPhysical SpaceDefects
Competitive PositionGross MarginsCash
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A tough sell in the boardroom…
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“..and then I opened the door.”Brian Walker, CEO, Herman Miller
…and on the shop floor.
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Jim Lancaster, CEO, Lantech Inc.
“It’s time for a cookie.”
…and for professionals.
HR Program Designers
Problem Solving Coaches
Accounting Bean Counters
Financial Advisors
IT System Builders
Providers of Real Time Information
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Financial Pressures
Unacceptable Outcomes
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?“We should work on our process, not the outcome of our processes.” – Deming
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Primary Assumption # 3
People have a basic human need to do exceptional work, and will do so when barriers are removed. People
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Bob Chapman, CEO, Barry-Wehmiller
“All anyone asks for is a chance to work with pride.” - Deming
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The need for exceptional work
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A lasting partnership
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Now, over to you!
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Is customer value seen through gemba your primary dashboard?Are you on a continuous improvement journey that never ends?Are your people empowered to do exceptional work?
Information
People
Process
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Other Resources
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Thanks!• Web:
– www.kainexus.com– blog.kainexus.com– www.JacobStoller.com
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Mark Graban@MarkGraban
mark@KaiNexus.com
Jacob Stoller@JacobStoller
jacob@stollerstrategies.com