reducing resistance to change

Webinar

May 13, 2014

Reducing Resistance to Change

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Coach / Facilitator / Consultant / Trainer: Lean transformation & business performance improvement in all industries.

Teacher: University of California, San Diego

Author & Speaker:

Karen Martin, President

@KarenMartinOpEx

www.linkedin.com/in/karenmartinopex

3

2013 Shingo Prize winner!

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(or _handout.pdf)

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Coaching: The Art of Asking the Right Questions

Respect for People: The Lean Way

DATE CHANGE A3 Management:

Effective Problem Solving

Holding Effective Kaizen Events

You will learn…

• The power behind properly designed and socialized charters.

• Techniques for aligning all stakeholders around the need for change.

• How to assure that a proposed change is truly an improvement.

• Techniques for using psychology to reduce resistance.

People are Highly Predictable Creatures

© 2014 The Karen Martin Group, Inc. 8

Resistance is a Sign that You’ve Done

Something Wrong *

* With a few exceptions.

© 2014 The Karen Martin Group, Inc. 9

Why People Resist Change

1. They don’t understand why it’s needed.

2. They weren’t involved.

3. It’s a “change” vs. true improvement.

© 2014 The Karen Martin Group, Inc. 10

Why People Resist Change

1. They don’t understand why it’s needed.

2. They weren’t involved.

3. It’s a “change” vs. true improvement.

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Specific

Conditions Land-based

Value Stream

ChampionJanice Mitchell

Demand Rate 300 units (40 projects; 20 POs) per yearFacilitator Karen Martin

Value Stream Mapping CharterScope Accountable Parties Logistics

Value Stream Equipment type AExecutive

SponsorJoe Abrams

Event Dates

& Times

Mon, Tue, Wed

Feb 3, 4 & 5, 2014

8:00 am - 5:00 pm

Last Step Product shipped

Boundaries &

LimitationsMust use existing resources (people, IT, etc.) Briefing

Attendees

** required

*optional

** Frank L, Rick M, Cory C, Glen

S, Sinan, Ben, Jane, Sal,

Malaika, Andrew, AE's, Sales

Mgr's, Rachel, Adam, Dustan

Base-camp

LocationBldg B, Conf Room A

Trigger Customer submits RFQ

First Step Sales receives RFQ Logistics

CoordinatorGeorgette Winters

Meals

Provided

Continental breakfast, lunch,

snacks

Projects are not scoped accurately (voice of the customer). Function Name

Lack of consistent processes and execution. Operations John Morgan

Briefing

Dates

&Times

Feb 3, 4 & 5, 2014

4:00 - 5:00 pmImprovement

TimeframeFuture state realized by December 31, 2014

Current State Problems & Business Needs Mapping Team

Contact Information

On-going changes to project parameters (design, test dates, & supply chain). Supply Chain, purch, log, ware Tom Johnson

Consistently late delivery. CEO Mark Simpson

Increase average ontime delivery (to "ready to ship") from 17% to 60%. Quality Sally Jones

Reduce lead time (PO to ready to ship) from 12 mos to 8 mos. CFO Sharon Prince

No KPIs. Sales Ed Borge

Goals & Measurable Targets Engineering Joakim Gutan

Sales Kellie McMahon

Benefits to Customers & Business On-Call Support

Create variance tracking methodology. Program Mgmt Leia Chang

Standardize the change process to reduce the # of Change Orders. Manufacturing Robert Cashman

Finance Lori P

Capable processes that are repeatable (process focused). Design Manager Andrew M

Projects completed on time (customer) & under budget (business). Function Name

Reduced lead times & increased sales opportunities. IT Mars L

Contact Information

Budget-to-actual expenses per PO/project. Signature: Signature: Signature:

Date:

2013 average ontime delivery. Executive Sponsor Value Stream Champion Facilitator

Annualized quantity of change orders.

Profitably grow our business and open new markets. Prod Development Charlie F

Relevant Data Agreement

Reduce customer's warranty & LD exposure.

3 Purposes of Charters: Plan, Communicate, Build Consensus

Download: www.ksmartin.com/charter

© 2014 The Karen Martin Group, Inc. 12

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2 1

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2

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4 Date: Date:

Specific

Conditions Land-based

Value Stream

ChampionJanice Mitchell

Demand Rate 300 units (40 projects; 20 POs) per yearFacilitator Karen Martin

Value Stream Mapping CharterScope Accountable Parties Logistics

Value Stream Equipment type AExecutive

SponsorJoe Abrams

Event Dates

& Times

Mon, Tue, Wed

Feb 3, 4 & 5, 2014

8:00 am - 5:00 pm

Last Step Product shipped

Boundaries &

LimitationsMust use existing resources (people, IT, etc.) Briefing

Attendees

** required

*optional

** Frank L, Rick M, Cory C, Glen

S, Sinan, Ben, Jane, Sal,

Malaika, Andrew, AE's, Sales

Mgr's, Rachel, Adam, Dustan

Base-camp

LocationBldg B, Conf Room A

Trigger Customer submits RFQ

First Step Sales receives RFQ Logistics

CoordinatorGeorgette Winters

Meals

Provided

Continental breakfast, lunch,

snacks

Projects are not scoped accurately (voice of the customer). Function Name

Lack of consistent processes and execution. Operations John Morgan

Briefing

Dates

&Times

Feb 3, 4 & 5, 2014

4:00 - 5:00 pmImprovement

TimeframeFuture state realized by December 31, 2014

Current State Problems & Business Needs Mapping Team

Contact Information

On-going changes to project parameters (design, test dates, & supply chain). Supply Chain, purch, log, ware Tom Johnson

Consistently late delivery. CEO Mark Simpson

Increase average ontime delivery (to "ready to ship") from 17% to 60%. Quality Sally Jones

Reduce lead time (PO to ready to ship) from 12 mos to 8 mos. CFO Sharon Prince

No KPIs. Sales Ed Borge

Goals & Measurable Targets Engineering Joakim Gutan

Sales Kellie McMahon

Benefits to Customers & Business On-Call Support

Create variance tracking methodology. Program Mgmt Leia Chang

Standardize the change process to reduce the # of Change Orders. Manufacturing Robert Cashman

Finance Lori P

Capable processes that are repeatable (process focused). Design Manager Andrew M

Projects completed on time (customer) & under budget (business). Function Name

Reduced lead times & increased sales opportunities. IT Mars L

Contact Information

Budget-to-actual expenses per PO/project. Signature: Signature: Signature:

Date:

2013 average ontime delivery. Executive Sponsor Value Stream Champion Facilitator

Annualized quantity of change orders.

Profitably grow our business and open new markets. Prod Development Charlie F

Relevant Data Agreement

Reduce customer's warranty & LD exposure.

Common Components of the A3 Report

Theme: “What is our area of focus?” Owner: Person accountable for results.

Plan Do, Study, Adjust

Background

Current Condition

Countermeasures / Implementation Plan

Effect Confirmation

Follow-up Actions

• What?

• Who?

• When?

• Where? (if relevant)

Target Condition / Measurable Objectives

• Diagram of desired state

• Measurable targets – how will we know that the improvement has been successful?

• Diagram of current situation or process

• What about it is not ideal?

• Extent of the problem (metrics)

• Problem statement

• Context - Why is this a problem? How large is the problem?

Root Cause & Gap Analysis

• Graphical depiction of the most likely direct (root) causes

• What measurable results did the solution achieve (or will be measured to verify effectiveness)?

• Who’s responsible for ongoing measurement?

• Where else in the organization can this solution be applied?

• How will the improved state be standardized and communicated?

© 2014 The Karen Martin Group, Inc. 14

Why People Resist Change

1. They don’t understand why it’s needed.

2. They weren’t involved.

3. It’s a “change” vs. true improvement.

© 2014 The Karen Martin Group, Inc. 15

It’s Uplifting to Kaizen…

It’s traumatizing

to be kaizen’d.

© 2014 The Karen Martin Group, Inc. 16

The People Who Do the Work are the

Experts

© 2014 The Karen Martin Group, Inc. 17

Leaders determine strategy (what needs to happen)

Workers determine tactics (how it will happen)

© 2014 The Karen Martin Group, Inc. 18

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5 10

1

2 1

3 2

4 3

5 4

1

2

3

4 Date: Date:

Specific

Conditions Land-based

Value Stream

ChampionJanice Mitchell

Demand Rate 300 units (40 projects; 20 POs) per yearFacilitator Karen Martin

Value Stream Mapping CharterScope Accountable Parties Logistics

Value Stream Equipment type AExecutive

SponsorJoe Abrams

Event Dates

& Times

Mon, Tue, Wed

Feb 3, 4 & 5, 2014

8:00 am - 5:00 pm

Last Step Product shipped

Boundaries &

LimitationsMust use existing resources (people, IT, etc.) Briefing

Attendees

** required

*optional

** Frank L, Rick M, Cory C, Glen

S, Sinan, Ben, Jane, Sal,

Malaika, Andrew, AE's, Sales

Mgr's, Rachel, Adam, Dustan

Base-camp

LocationBldg B, Conf Room A

Trigger Customer submits RFQ

First Step Sales receives RFQ Logistics

CoordinatorGeorgette Winters

Meals

Provided

Continental breakfast, lunch,

snacks

Projects are not scoped accurately (voice of the customer). Function Name

Lack of consistent processes and execution. Operations John Morgan

Briefing

Dates

&Times

Feb 3, 4 & 5, 2014

4:00 - 5:00 pmImprovement

TimeframeFuture state realized by December 31, 2014

Current State Problems & Business Needs Mapping Team

Contact Information

On-going changes to project parameters (design, test dates, & supply chain). Supply Chain, purch, log, ware Tom Johnson

Consistently late delivery. CEO Mark Simpson

Increase average ontime delivery (to "ready to ship") from 17% to 60%. Quality Sally Jones

Reduce lead time (PO to ready to ship) from 12 mos to 8 mos. CFO Sharon Prince

No KPIs. Sales Ed Borge

Goals & Measurable Targets Engineering Joakim Gutan

Sales Kellie McMahon

Benefits to Customers & Business On-Call Support

Create variance tracking methodology. Program Mgmt Leia Chang

Standardize the change process to reduce the # of Change Orders. Manufacturing Robert Cashman

Finance Lori P

Capable processes that are repeatable (process focused). Design Manager Andrew M

Projects completed on time (customer) & under budget (business). Function Name

Reduced lead times & increased sales opportunities. IT Mars L

Contact Information

Budget-to-actual expenses per PO/project. Signature: Signature: Signature:

Date:

2013 average ontime delivery. Executive Sponsor Value Stream Champion Facilitator

Annualized quantity of change orders.

Profitably grow our business and open new markets. Prod Development Charlie F

Relevant Data Agreement

Reduce customer's warranty & LD exposure.

© 2014 The Karen Martin Group, Inc. 19

Who Needs to be Involved? Function Activity

Marketing 1. Generates sales leads

Sales 2. Calls on and qualifies customers

Customer 3. Submits RFQ to sales

Sales 4. Reviews RFQ

Estimating 5. Generates quote

Sales 6. Approve quote

Customer 7. Accepts quote; submits a PO

Sales 8. Approves PO

Customer service 9. Creates SO; compiles spec package

EE/ME design 10. Designs product; generates BOM

Customer 11. Approves design

EE/ME design 12. Forwards design to SW dev

Software Dev 13. Writes code

Purchasing/Planning 14. Releases WO; schedules production

Supplier (external) 15. Delivers materials

Production 16. Manufactures & ships product

Customer 17. Installs equipment

Field service 18. Conducts 90-day follow-up

Problem: Product Quality

Available on the CD that Accompanies The Kaizen Event Planner (www.bitly.com/TKEP)

The Power of Periodic Briefings

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Purpose: Deepen understanding, gain commitment, help people “grow” with change, surface hidden issues.

© 2014 The Karen Martin Group, Inc. 22

Why People Resist Change

1. They don’t understand why it’s needed.

2. They weren’t involved.

3. It’s a “change” vs. true improvement.

© 2014 The Karen Martin Group, Inc. 23

Beware of Process

Tampering!

© 2014 The Karen Martin Group, Inc. 24

Develop hypothesis

Conduct experiment

Measure results

Refine Standardize

Stabilize

© 2014 The Karen Martin Group, Inc. 25

Begin at the Beginning, Not the End!

1. What’s the problem?

2. How big is the problem?

3. Why is it a problem?

4. What’s the root cause?

© 2014 The Karen Martin Group, Inc. 26

What About the One Resister That You Can’t Turn?

1. Determine root cause via candid conversation.

2. They may need to find a new “home.”

© 2014 The Karen Martin Group, Inc. 27

In Summary…

• Use well-designed charters.

• Socialize the charters.

• Use robust problem solving (PDSA) to make true improvement.

• Involve the people who do the work being improved (or who work in the environment being improved).

– Include upstream suppliers and downstream customers.

• Hold periodic briefings.

© 2014 The Karen Martin Group, Inc. 28

Change Doesn’t Have to Be As Hard as We Make It

© 2014 The Karen Martin Group, Inc. 30

Your Questions

• What are some examples of the hardest resistance to change you’ve encountered & how did you overcome them?

• When does one decide that a company has a totally hopeless culture to change? Examples?

• How do you deal with people who are close to retirement?

© 2014 The Karen Martin Group, Inc. 31

Karen Martin, President 858.677.6799

@karenmartinopex

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