womackmodernvsleanmanagement-1282741420-phpapp01

7/27/2019 womackmodernvsleanmanagement-1282741420-phpapp01

1/27

The Challenge of

Lean Management

10th Lean Manufacturing Conference

Wroclaw, Poland

James P. Womack, Chairman, Lean Enterprise Institute

June 22-23, 2010


2/27

2

What Does Lean Need Now?

To think about the type of manage-ment system we need in order to

make lean deployment sustainable.

A good place to start: Comparingmodern with lean management.

(As we do this, please ask yourself

what type of management systemyour organization has and what type it

needs for a lean transformation.)


3/27

3

Two Choices for Managers:

Modern management

(The Alfred Sloan School of Management)

versus

Lean management

(The Eiji Toyoda Gemba School of Management)

Lets perform a side-by-side comparison of

the principles of these schools.


4/27

4

Modern vs. LeanManagement

Primary focus on vertical functions

and departments, as mechanisms of

optimization and control.

Primary focus on hor izontalflow of

value across organizational units to the

customer.


5/27

5


Clear grants of managerial author i tyby

leaders of organizational units (vertical

delegation).

Clear grants of managerialresponsib i l i tyto solve problems (especially cross-

functional, horizontal problems) over

which managers have no authority, within

vertical organizations (including Toyota.)


6/27

6


Line managers judged on end-of-the-period results for their span of control,

increasingly financial in recent times.

Line managers judged onthe state oftheirprocess, with rapid feedback loops

with next-level management.

If the process is right the results will be right.

Manage by process instead of results.


7/277


Planning & direction from top down,with bosses giving answers:Leads to compliance focus: Make your plan or explainthe variances.

Plann ing & direct ion in c ircu lar feed-back loop s, with bosses asking questions:

What do you think the important issue is? Is there a problem?

Whats the root cause of the problem?What do you think the potential solutions (countermeasures) are?

What countermeasure do you think we should select?

Who must do what when where to test this countermeasure?


8/278


Conviction from the top that a good plan,once properly implemented, produces the

desired results. (Justifying the

compliance focus.)

Conviction that allplans are exper iments

and can only be evaluated through the

scientific method in the form of PDCA,followed by appropriate countermeasures.

Planning is invaluable; plans rapidly become worthless.


9/279


Generalist line mangers, rotated

frequently with weak process

knowledge, supported by deeply

knowledgeable technical staffs(including finance.)

Line mangerson extended assignments,

w ith deep p rocess know ledge, lacking

the need for extensive staff support.


10/2710


Managers developed through formaleducation, often ex-company (e.g.,

management schools, consulting firms) or

sink-or-swim rotations.

Managers developed throughin-

companygemba learningthrough

repetitive A3 analysis embedding PDCA,led by mentors throughout their careers.


11/2711


Decisions made far from the pointof value creation, by analyzing data.

(Conference room management.)

Decis ions made at the po int of

value creat ion, by converting data

into facts (Go see, ask why, show

respect gemba management.)


12/2712


Problem solving and improvementconducted by staffs, often through

programs.

Problem solv ing and improvementconductedby l ine managers, often

respons ib lefor cross-function teams,

with staffs reserved for unique technicalproblems.


13/2713


Standardization (if any) of activitiesconducted by staffs, often with little

gemba interaction and little auditing.

Standardizat ionof (all) activitiesconductedby l ine managersin

collaboration with work teams, with

frequent auditing by directly observingactual work not just work standards.


14/27

14

Modern vs. LeanManagement Go fast as a general mandate:

Jump to solutions (with the consequence ofgoing slow through the complete cycle ofproduct & process development, launch &fulfillment.)

Go slow as a general mandate:

Start with the problem and consider many

potential counter-measures in parallel (withhigher costs & more time at the beginning,followed by lower costs, less time & happiercustomers at the end.)


15/27

15


Strong emphasis on the vertical flow ofauthority, looking upward toward the CEO.

Performance usually evaluated at single points.

Strong emphasis on the horizontal flow ofvalue, looking toward customers.

Performance evaluated in terms of optimizing

the whole process (all of the points).

Contro l reconc i led w ith f lexib i li ty !


16/27

16

Conclusion from This Comparison

Modern management isnt conducive tocreating sustainable lean enterprises.

We need to transition to lean

management (or something better!)through PDCA.

How can we you do this?


17/27

17

What Is the Value-Creating

Work of Management?

Gaining agreement across the

organization on whats important for

customers and the enterprise (purpose),

through strategy deployment (a process).

Deploying on important strategy

deployment initiatives, solving problems

(every day), & evaluating proposals from

lower levels, with A3 analysis (a process).


18/27

18

What Is The Value-Creating

Work of Management?

Creating basic stability throughout the

organization, by means of standardized

work with standardized management (a

process).

Educating the next generation of

managers, by enaging direct reports in

endless cycles of strategy deployment,A3 analysis, & standardized management

(a process!)


19/27

19

Methods of Lean Management

To employ at different levels:

Strategy deployment to align and

engage employees on the few critical

issues the value-creating work of top

management in particular.

Note: The transition from modern to lean

management might be an objectiveidentified by strategy deployment!


20/27

20

Strategy Deployment X-Matrix


21/27

21


A3 analysis to deploy top-level mandates,

solve daily problems as they arise, and

(very important) evaluate proposals from

lower levels of the organization the value-

creating work of mid-level management inparticular.

Never a solo assignment; always done in

vertical and horizontal dialogue. (An excuseto have a constructive conversation about

where you are and where you need to go.)


22/27

22


23/27

23


Standardized management of

standardized work with continuous

kaizen to stabilize the organization

and permit steady improvement thevalue-creating work of front-line

management in particular.


24/27

24


Educating the next level ofmanagement to create lean managers

through continuing dialogue the value-

creating work of every level ofmanagement every day!

Indeed, the most important value-

creating work of managers?


25/27

25

In the Absence of Lean Methods

The predominant work ofmanagement is re-work work-

arounds for things gone wrong.

In other words, most of the work ofmodern managers is actually waste!


26/27

26

An A3 Project for

Your Management Team

Analyze your organizations

management system.

Characterize its current condition. Determine the ways it hinders lean

deployment. (The Gap.)


27/27

27

An A3 Project for

Your Management Team

Identify the most promising

countermeasures. (The Plan.)

Test these countermeasures. (The Do.)

Assess the results. (The Check/Reflect.)

Make changes as necessary. (The

Act/Adjust.)

womackmodernvsleanmanagement-1282741420-phpapp01

Documents