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Copyright 2010 Lean Pathways Inc. www.leansystems.org Sept 2010

Copyright 2010 Lean Pathways Inc. www.leansystems.org 1

Getting the Right Things Done –A Leader’s Guide to Strategy Deployment

9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org 1

Pascal DennisLean Pathways Inc.

Lean Accounting 2010 –Las Vegas, Nevada

What is Hoshin Kanri?

ho shin kan ri

ho = direction kan = control, channeling


Hoshin Management = Strategy Deployment

World‘s most powerful planning & execution system..

“management”“policy, direction”

shin = needle

g

ri = reason, logic

Why Should You Care?

Nowadays we have little room for error


Can we risk the “random walk” approach?

SD addresses the ills of conventional planning The Rise & Fall of Strategic Planning

Henry Mintzberg, 1994



The Grand Fallacy

Conventional planning is all analysis (Left brain) But analysis alone is not strategy

Think Like a Grandmaster, by Alexander Kotov

Strategy is synthesis: Analysis + Intuition


Strategy is synthesis: Analysis Intuition Intuition

What is the mood in the plant?

Look on the customer’s face

Supplier’s tone of voice

We need to be able to tell persuasive stories

Our Collective Hangover

The “planning school” has been largely discredited (Mintzberg et al).

But we’re living with the hangover: Over-managed, overly complex systems,


Default to budgeting, plus

Dysfunctional mental models

Conventional Mental ModelsConventional Mental Models Lean Mental ModelsLean Mental Models

2. Leaders are too important to go to the floor.

1. Leader = Boss1. Leader = Sensei

2. Go See for yourself!

Pat

hway

s In

c

6www.leanpathwaysinc.org Copyright © 2009 Lean Pathways Inc. All Rights Reserved

4. Make the numbers-or else!

5. Problems are garbage-hide them!

6. Experts solve problems in complex ways.

3. We have some standards around here somewhere.

3. We have simple visual standards for all important things.

4. Don’t Ship Junk!

5. Problems are gold -treasure them!

6. Everyone solves problems using simple methods.

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9/10/2010 Copyright 2010 Lean Pathways Inc. www.leansystems.org



Mental Models1. Leadership

ConventionalConventional LeanLean

Pat

hway

s In

c

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Leader = BossLeader = Sensei

www.leanpathwaysinc.org Copyright © 2009 Lean Pathways Inc. All Rights Reserved

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Mental Models2. Leadership – Go See


Pat

hway

s In

c

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Leaders are too important to go to the

floor.Go see for yourself!


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Mental Models3. Standards


Pat

hway

s In

c

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We have some standards here somewhere… We have simple, visual standards

for all important things.


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Mental Models4. Quality at the Source


Pat

hway

s In

c

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Make the numbers –or else! Don’t ship junk!


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Mental Models5. Making Problems Visible


Pat

hway

s In

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Problems are garbage – hide them! Problems are gold –

treasure them!


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Mental Model6. Problem Solving


Pat

hway

s In

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Experts solve problems in complex ways Everyone solves problems using

simple methods


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Group Activity: Teach back

Prepare a presentation for the class on Mental Models

Bring the lesson to life Use as few written words as possible

Draw a picture. Do a skit

Have fun!

Mental Models


Have fun!

Time: 15 minutes

Teach the lesson back to the class

Models

Grasping the Situation

PLANADJUST

Grasp


DOCHECK

pthe

Situation

Implication for Leaders


P

DC

AGtS



We Begin by Defining…

Copyright 2010 Lean Pathways Inc. www.leansystems.org

16Source: The Remedy – Bringing Lean Out of the Factory to Transform the Entire Organization (Wiley & Sons 2010)

Copyright 2010 Lean Pathways Inc

9/10/2010

Plan – Telling Interesting Stories

A3’s are “currency” of SD One-page storyboard on 11” x 17” paper

We call it A3 thinking


The piece of paper is not the point…

The point is… story-telling approach to strategy

Lou Gerstner: Let’s talk about our business…

0

10

20

30

40

50

60

Gap = problem

Target

1 2


Action Plan

4 3



Focus: Delivery Achieving Excellence in Delivery Site/Dept. MP & L, Homestead

Last Year's Results/This Year's Targets/Mid-term Targets This Year's Action PlanSchedule

J F M A M J J A S O N D

A. Strengthen Maintenance 1. Design and pilot work order boardPlanning Process

2. Confirm process & launchTargets

Work Order board 3. Track % Projects Complete (PPC)in place by March 30

4. Weekly meetiing with Operations toreflect on last week's PPC & plan next week

B. Reduce Mtce Attrition & 1. Pilot "Grow with Us" incentive programThis Year's BTS Target = 90% Availability Targets = 80 % in both Paint and B & E Improve Versatility

2. Set up versatility boards & schedule each shopInventory Target = 40 days 3-Year Target = 90% (Best in Class = 95%) Targets

Mtce Attrition < 5% 3. Implement "Mentor" programFull back up on critical

Reflection on Last Year's Activities skills (each shift) Jun 30

Activity Rating Key Results/IssuesC. Implement Advanced 1. Identify vendors & make purchase

Implemented BTS metric G Problems now visible; Biggest constraints: Analytical Toolsmachine availability in Paint and B & E 2. Build in-house expertise

TargetsImplemented availability tracking G Hot spots now visible: Paint: drying ovens, Vibration & Spectrograph 3. "Full court press" on constraints in each area

spray booths; B & E: Berger Benders analysis by Jun 30

Goals Activities

0%

20%

40%

60%

80%

100%

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep Oct

Nov

Dec

0

20

40

60

80

100

Build to Schedule Inventory (days) R

BTS Target = 90%

Inventory Tgt < 40 days

0%

20%

40%

60%

80%

100%

Jan

Feb

Ma r

Ap r

May

Jun J u

l

Aug

Sep

Oct

No v

De c

Machine Availability - Paint Machine Availability - B & E

R

Target = 80%Critical business need

Reflection (hansei) on last year’s

Our plan to implement hypothesis


Maintenance cross-training R Tried to limit effect of maitenance turnoverLittle time for training; "too much firefighting" D. Improve Paint and B & E 1. Develop manual back-up plans for top 3 per shop

Machine CapabilityMaintenance prbblem solving (6 Sigma) Y Training too complex; "not usuable" 2. Train production team members in back-up

Targets3. Quick changeover training & implementation

50% reduction in C/O timeManual back-up for top 4. Focus problem solving on machine availability

Analysis/Justification to This Year's Activities 3 constraints per shop

5. Transfer basic mtce tasks to OperationsLast year we made our Delivery problems visible - but couldn't solve them.

Continuous firefighting hampers maintenance cross-training & system building Follow-up/Unresolved Issues

Biggest losses: changeover & breakdowns 1. How to reduce turnover in maintenance? Countermeasure: Incentives (e.g. Grow With Us, Mentor pgm)?

Next year we need to 2. Tension between Operations and Maintenance "prima donnas" hampers problem solving. How to diffuse?

1) Strengthen maintenance planning process by implementing Work Order scheduling board 3. Manual back-up and quick changeover requires good grasp of standardized work. Enhance training2) Buffer machine losses with manual back-up, where possible3) Improve maintenance versatility & reduce attrition 4. Making work order status visible is a major cultural shift. How to prepare the soil?4) Implement advanced tools (e.g. vibration analysis) to help us get to root cause in Paint & B&E5) Reduce changeover times in Paint and B & E

Signatures Author: MP & LManager

Version & date: V5

on last year s activities

Our grasp of the situation & hypothesis

What might go wrong & how we’ll

handle it

Do – Deploying the Plan

We can’t tell people what to do Soviet model

We need to translate our plans level by level And engage people thereby

Mental models: What do you think? vs. Thou shalt


Keep it simple Result: a Tree diagram

“Catchball”

Refers to the horizontal & vertical give & take required to Align activities

Translate & thereby engage


A “scrubbing” process which helps us understand what’s real



TRUE NORTH

Key Thinker Policy

General Manager Master A3


Dept. Manager Baby A3

Dept. Action Plans

Hunger in Ontario

Key Thinker Policy

Hunger in Toronto


Hunger among Toronto school children

Hot lunches for kids in local schools

Deployment Leader Concept


•Breakthrough goals are invariably cross-functional

•Unit efficiency does not equal overall efficiency



Deployment Leader Concept

Deployment leaders focus & align activity

“Key thinker” or “chief scientist”: Grasps big picture & makes diagnosis

Writes A3 & gains consensus for proposed remedies

Makes problems visible & supports problem solving


Makes problems visible & supports problem solving

Key Thinker Qualities

Passionate

Profound knowledge of “zone” Respected

Impatient with the status quo


p q Nothing is “given”

Tough, ornery yet able to forge Consensus through disagreement

Check – Making Problems Visible

Check entails Simple, connected meetings & go see activity so that the

problems become visible to all

Exception managementWh t th h t t ?


What are the hot spots?

What are you doing about them?

Mental model: Problems are gold – treasure them!

Image: a series of gears



Checking: a System of Gears

Site Check/Adjust

“Layered” Checking –

Leader STW


Check/Adjust Meeting

Department Check/Adjust

Section/Team Check/Adjust

Adjust – Solving Problems

Adjust phase requires simple, shared problem solving approach Six sigma and other advanced approaches are needed for ~10%


of problems

To make problems visible we need Clear, visual standards

Direct, binary connections

Simple, pre-specified flow paths

Very few big problems

Few medium i bl


size problems

Many small problems



Very few big problems

Few medium i bl

Strategic planning initiative


Kaizen event


Kaizen event

Action plan

Kaizen event


size problems

Many small problems

Daily individual problem solving

Action plan Kaizen

event

plan

Source: The Toyota Way by Like & Meier

Four-Step Problem Solving

9/10/2010 32Copyright 2010 Lean Pathways Inc. www.leansystems.org

Strategy Deployment Process

1. Develop the plan• Where are we going? (What’s True North?)• How do we get there?• A3 strategies

2. Deploy the planC t hb ll


• Catchball• Deployment leader (“Key thinker”) concept

3. Monitor the plan• Check/Adjust process• Management standardized work concept

4. Improve the system• Reflection & learning points• “Book of knowledge” or database concept



Obstacles to Getting Right Things Done

Obstacle Root Cause(s)Possible

Countermeasures

Weak hypotheses Key thinkers?

Go see?

Develop key thinkers

Leader STW

Too many activities Catchball?

Grasping situation?

Catchball standards



Grasping situation?

Key thinkers?


Recall Kasparov

We can’t sustain gains – org’n muscles weak

Have we built capability of team?

People development plan

Team not engaged Mental models?

Leadership?

Leader STW

Metrics – too many, too complex

Grasping situation?

Accounting?


Visual mgmt

Role of Finance Leaders

CFO & other Finance leaders often serve as Key Thinker for Cost


Finance leaders Understand the importance of the “story” behind the numbers

Grasp the annual PDCA cycle (which mirrors financial cycle)

Play critical role with respect to metrics & incentive structures Invisible governance obstacles

What are you going to do tomorrow?

Identify at least three things you will do to implement what you’ve learned

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Recommended Reading


www.lean.org

9/10/2010

Other Resources

Pocket Cards

Lean Thinking

Webinars

Lean Simplified Demystifying

Copyright 2010 Lean Pathways Inc. www.leansystems.org 389/10/2010

Lean Simplified – Demystifying the World’s Most Powerful Business System

www.leanpathwaysinc.com

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