the role of the ceo in developing a lean culture
TRANSCRIPT
The role of the CEO when developing a Lean Culture in
large organisations
August2016
Topics
• WhatisLeanandaLeanCulture?• WhatisWaste?• Iden8fyingtheneedformoreefficiency• WhatdotheHeadsofDepartmentthink?• WhatarethemainthreatstoaLeanCulture?• HowcantheCEOsuccessfullysupportthestrategytowardsaLeanCulture?
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WHATISLEANANDALEANCULTURE?
Leanisasystema+capproachofelimina+ngwasteso
everystepaddsvaluefortheCustomer
ALeanCultureisonewheretheen+reteamfromtoptobo;omareintolerantofwaste,strivingto
con+nuouslyimprovequality,reducingcostandfocussedondeliveringvaluetotheCustomer.
ExperimentandLearn,replaces‘Blame’.
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WHATISWASTE
Wasteisanyac+vitythatconsumes+me,
resources,orspacebutdoesnotaddanyvaluetotheproductorservice.
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Iden8fyingtheneedformoreefficiency
ThereissurelynotaCEOorBoardontheplanetthathasn’tatsomepointoffluctua8ngtrading,growth,decline,economic,investororcompe88vepressuresetc.iden8fiedtheneedtogeneratemuchmoreefficiency,inordertodriveperformance.OOenthismoment(s)getsaccompaniedwithastrategytoachievesuchaposi8on.Astrategy,thatquiteoOenturnsintoaseriesoftac8calmeasures(reduceinventory,decreaseover-produc8onorextraprocessing,evenreducingemployeemo8onand8metodeliver).
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Iden8fyingtheneedformoreefficiency(cont)
Manyhowever,alsos8ckstead-fasttoimplemen8ngtheimprovementstrategyasawhole.Realisingthataseriesof‘tac8calimprovements’wouldbejustatemporarys8ckingplasteroveradeepwound.ButeventhensomeCEOsandBoardsgoontodelegatetheimplementa8onanddevelopmentofthestrategy,intoaseniorteam,beforetakingaback-seatrole.Inlarge,complexorganisa8ons,theCEO’sroleispivotaliftherequiredchangesarea)goingtoworkandb)goingtos8ck
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LET’SCONSIDERWHATTHEHEADSOFDEPARTMENTTHINK?
Inarecentsurveyofthetop1000companiesintheUK,HeadsofDepartmentwereaskedwhattheyconsidertobethemainconstraintsonperformanceimprovement:• LackofFunds 43%• LimitedResources 42%• LackofTime 40%• LackofQualifiedPersonnel 32%
NowconsiderthosesameHeadsofDept.above,beinghandedanefficiencystrategybytheBoard/CEOtodeliver!Onewouldassumethatwouldbelike‘pouringpetrolontotheblame-culturefire!’
WHATARETHEMAINTHREATSTODEVELOPINGASUCCESSFULLEANCULTURE
• Awaste-tolerant,blameculture• Dis-engaged,change-resistantanddemo8vatedstaff• Lackofknowledgeregarding(evolving)customerneeds
andexpecta8ons• Generalstructureandprocesses‘setinthereways’• Lackofinvestmentintokeytechnologicaladvances• Lackofstaffdevelopment• Lackofleadership,direc8onandcommunica8onof
visionintothenewcompanygoals/targets–‘CEO/Board’
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HOWCANTHECEOSUCCESSFULLYSUPPORTTHESTRATEGYTOWARDSALEANCULTURE
TheC-LevelExecu8veswithinanorganisa8onseekingtoimplementaLeanculturecanguaranteeonething:theywillmeetresistance.Tosucceed,theywillneedtheteamwiththem.AcultureisonlyeverLean,ifithasachievedit’sgoals(improvedquality,eliminatedwaste,reduc8onin8meandoverallcosts)ANDissustainable.Employeesneedtounderstand,co-operate,getinvolvedandbeopentoimprove,foraculturetochangeposi8velyandindefinitely.
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HOWCANTHECEOSUCCESSFULLYSUPPORTTHESTRATEGYTOWARDSALEANCULTURECONT)
TheCEOandBoard’sroleatthispointdefineswhetherthevaluestreamsiden8fiedandleanculturetransforma8oncanbearealityornot.Aclearprogrammeofimplementa8onneedstodeliver:• Keystakeholdersandseniormanagementselectedonto
thestrategicimplementa8onteam• Clearcommunica8onofWhytheLeanCultureis
required(theHowandtheWhatarethereturnsmustbedeterminedinconjunc8onwiththeimplementa8onteam)
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HOWCANTHECEOSUCCESSFULLYSUPPORTTHESTRATEGYTOWARDSALEANCULTURECONT)
• Acollabora8veandinterac8veenvironmentisrequiredtogaintrustandinvolvement,includingfullengagementintodeliveringtheoverallGoal.
• TheCEO,whilstretainingthecollabora8veimplementa8onteam’sopenandengagedworkflow,needstoreleasethereignstothekeystakeholdersintermsofresponsibilityandaccountabilityfortheirareasofdelivery
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HOWCANTHECEOSUCCESSFULLYSUPPORTTHESTRATEGYTOWARDSALEANCULTURECONT)
• ThestrategyofdevelopingtheLeanCulturerequiresaprojectplaninvolvingexcellentcommunicatorstointroduce,engageanddeveloptheworkforce,tothechangesrequiredwithinthestrategytodelivertheGoal.TheCEOhasahugeresponsibilitytomakesurethispartoftheplanoperatessmoothly,asitisinthiskeyareawherethemajorityofLeanStrategiesfalldown,duetoeithertheCEO/Boarddistancingthemselvesatthecrucialmomentornothavingdevelopedthemanagement,tothelevelrequiredtoengageanddeveloptheirownstaff.
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