Lean Leadership:

Helping Leaders Understand Their

Role in the Improvement Process

Company
LOGO
 Your Instructor

 Provides Lean transformation

support to non-manufacturing
settings.

 Co-author, The Kaizen Event

Planner: Achieving Rapid
Improvement in Office, Service, and
Technical Settings

Co-Developer, Metrics-Based
Process Mapping: An Excel Solution

Lean Enterprise Program Instructor

University of California, San Diego

Karen Martin, Principle,

Karen Martin & Associates
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 Learning Objectives

Participants will learn how to help your leadership

team understand their role in the improvement
process, including:
 Setting improvement strategy
 Roles & responsibilities of project sponsors and A3
coaches
 “Letting go” of tactical decisions
 Briefing attendance
 Authorizing the frontline to make improvements
 Modeling lean behaviors
Assumption – you’re already familiar with Lean
principles and tools
© 2011 Karen Martin & Associates 3
 Genesis for this webinar

Increasing numbers of improvement

professionals expressing frustration with the
level of leadership support they receive.
Increasing numbers of leaders expressing
frustration with their improvement teams.
 “Help us help you.”
Personal experience working with leaders who
want direction and education about how they
provide the best support.

© 2011 Karen Martin & Associates 4

 Evidence re: Leadership Commitment
– Observe the degree of:

Intellectual curiosity re: Lean / change

(number of books read, conferences
attended)
Integration into communications
Proclivity to advance change
“Walking the talk”

© 2011 Karen Martin & Associates 5

 Our Vital (and often forgotten) Role

One of the key roles of an improvement

professional is to educate and coach
leadership to help them develop into
the improvement-minded leaders you
wish them to be.

© 2011 Karen Martin & Associates 6

 Range of Leadership Commitment

Resistance
 Active (overt) resistance
 Passive (covert) resistance
Neutral – “lame duck”
Commitment
 Intellectual
 Understand & conversant about Lean
 Believe the organization needs it
 Emotional
 Will expend “discretionary effort”
© 2011 Karen Martin & Associates 7
 It All Begins with Education

© 2011 Karen Martin & Associates 8

 Improvement Philosophy

A minimum of 10-20% organizational effort

spent working on the business
 vs. in the business
There’s never a “good time” for improvement.

OR ?

© 2011 Karen Martin & Associates 9

 Components for Effective Change

Vision Skills Incentives Resources Action Plan Effective

Change

Skills Incentives Resources Action Plan Confusion

Vision Incentives Resources Action Plan Anxiety

Vision Skills Resources Action Plan

Gradual
Change
Vision Skills Incentives Action Plan Frustration

Vision Skills Incentives Resources False Starts

© 2003, Enterprise Mgmt Ltd.

 Leadership’s Learning Needs

What is Lean?
 How is Lean different?
What can we expect in terms of results?
 What will it take to get them?
 How long will it take?
What’s my role?
 Education
 Setting strategy
 Assuring alignment
 Participating / supporting
 Modeling Lean behavior
© 2011 Karen Martin & Associates 11
 Leadership’s Learning Needs

What is Lean?
 How is Lean different?
What can we expect in terms of results?
 What will it take to get them?
 How long will it take?
What’s my role?
 Education
 Setting strategy
 Assuring alignment
 Participating / supporting
 Modeling Lean behavior
© 2011 Karen Martin & Associates 12
 What Lean Is….

A highly effective business approach that

results in fiscal strength, customer and
employee loyalty, and organizational agility.

© 2011 Karen Martin & Associates 13

 What Leaders Must Understand

Lean isn’t merely a process design technique – it’s

a business management philosophy.

© 2011 Karen Martin & Associates

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 How is it Different?

Holistic – value stream-focused

Methodical – PDCA
Visual management
 “Operational transparency”
High degree of frontline involvement
Requires significant cultural transformation
 Learning to see waste and take action
 Learning how to problem-solve
 Learning how to engage the frontlines
© 2011 Karen Martin & Associates 15
 Traditional vs. Lean Thinking
Traditional Lean
Revenue-focused Margin-focused
Improvement focus: optimizing value-added Improvement focus: eliminating non-value-
work added work
Fire fighting is rewarded Fire prevention is rewarded
Focus on financial metrics & lagging Focus on operational metrics & leading
indicators indicators
Suboptimization is rewarded Value stream performance is rewarded
Specialized workers organized by function Cross-trained workers organized by value
streams
Complexity is the norm Simplicity is the norm
Inspect in quality Build in quality
Non-visual workplace / management Visual workplace / management
Dynamic schedule and priorities Static priorities and schedule
Unclear ownership & accountability Clear ownership & accountability
Excessive reviews and approvals by Decisions are made by those closest to the
leadership work
Improvements identified by management Improvements identified by workers
 What Leaders Must Understand

Lean is 90% culture / people-based and 10%

tools-based.

Tools

People / Culture

© 2011 Karen Martin & Associates 17

 Improvement Roles & Tools

Who? Accountability Tool

Strategic

Senior What has to Value Stream

Leadership happen Mapping
Middle
Management
Tactical

Frontline How it will

Kaizen Events
Workers happen

© 2011 Karen Martin & Associates

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 Leadership’s Learning Needs

What is Lean?
 How is Lean different?
What can we expect in terms of results?
 What will it take to get them?
 How long will it take?
What’s my role?
 Education
 Setting strategy
 Assuring alignment
 Participating / supporting
 Modeling Lean behavior
© 2011 Karen Martin & Associates 19
 Performance Measures

Quality

Morale Cost
Optimal
Performance

Safety Delivery

© 2011 Karen Martin & Associates 20

 Typical Benefits Realized

0 25 50 75 100

Lead Time Reduction

Productivity Increase

WIP Reduction

Quality Improvement

Space Utilization

© 2011 Karen Martin & Associates

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 Mis-Use of Lean

Using Lean for headcount reductions

is a recipe for failure.

© 2011 Karen Martin & Associates 22

 What Lean Isn’t…

Lean doesn’t
solve all
problems.

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 Transformation Takes Time

Lean requires long-term

thinking.
The transformation process
morphs over time as the
organization matures.

© 2011 Karen Martin & Associates 24

 How Long Will it Take?

Lean is a journey, not a

destination.
2-5 years of “persistent
patience” to reach the
first “tier” of measurable
results.
 The larger the
organization, the longer it
takes.
10 years to see
significant changes.
© 2011 Karen Martin & Associates 25
 What Leaders Must Understand

Transforming into a Lean Enterprise is disruptive.

© 2011 Karen Martin & Associates 26

 Improvement Pacing

Evolution or revolution?

© 2011 Karen Martin & Associates 27

 Critical Question

How will we define success?

© 2011 Karen Martin & Associates 28

 Leadership’s Learning Needs

What is Lean?
 How is Lean different?
What can we expect in terms of results?
 What will it take to get them?
 How long will it take?
What’s my role?
 Education
 Setting strategy
 Assuring alignment
 Participating / supporting
 Modeling Lean behavior
© 2011 Karen Martin & Associates 29
 Educating Leaders

Executive Overviews
 Simulations help
Regular meetings with Leadership
 Lean Steering Committee or Advisory Board?
Ongoing “Check-ins” / Training Sessions
 How are we doing?
 What needs to be adjusted?
 What are our learning needs?

© 2011 Karen Martin & Associates 30

Building a Lean Enterprise
Establishing an Improvement Strategy –
The Value Stream Map

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 Value Stream Mapping Process
Define Products (good or services) with
Product Family common process steps

Foundation (the basis) for the

Document Current future state; 70-80% accurate is
State acceptable (directionally correct)

Create flow by eliminating waste

Design Future it is now obvious from your
3 Day
Repeat

State current state map); typically 3-6

Event months out

Create Include accountability and

Implementation Plan timeframes for completion

Implement! The goal of mapping!

 Future State Value Stream Map
Outpatient Imaging Services

Standard Customer Demand:

Work Co-locate
Work 15 patients perDay
Balance (Takt Time1920 seconds)
Schedule appt
Pre-register 8 hours per day
Referring
Hospital
Physician
3 1
Lead Time = 15 days 6 2 Lead Time = 45 mins.
Cycle Time = 11 mins. % C&A = 85 %
Lead Time = 45 mins.
% C&A = 98 %
Risk
Reduction
(Joint CT=Cycle Time
Commision) LT=Lead Time
%C&A=% Complete & Accurate

Symposium E Pay Excel Meditech Internet Fax Order PACS Auto Fax 80%
Waiting Room Solutions
Management Us Mail 15%
System MD Mailbox 5%

Pull System Value Stream 5S Rework Loop

(Supplies Alignment via Fax 10% of
Kanban) the time
Remove
Check in
and Reduce Work Batch
System Access Balancing Visual Reductions
Standard Workplace Voice
Work Set-up Continuous Recognition
Reduction Flow

Prep Complete Transmit Read/Dictate Review Print Send

Check-in
Patient Exam Images Exam Draft/Sign Reports Reports
Patient
(Tech) (Tech) (Tech) (Radiologist) (Radiologist) (Imaging) (Imaging)
(Imaging)

5 mins. 35 mins. 5 20 mins. 6 5 mins. 7 120 mins. 8 420 mins. 9 2 mins. 10 30 mins. 11
3 4 2 2 2 2 2 2 6

Cycle Time = 1 mins. Cycle Time = 10 mins. Cycle Time = 10 mins. Cycle Time = 2 mins. Cycle Time = 15 mins. Cycle Time = 1 mins. Cycle Time = 1 mins. Cycle Time = 3 mins.
% C&A = 98 % % C&A = 100 % % C&A = 90 % % C&A = 100 % % C&A = 95 % % C&A = 95 % % C&A = 99 % % C&A = 90 %

0.0833 hrs. 0.583 hrs. 0.333 hrs. 0.0833 hrs. 2 hrs. 7 hrs. 0.0333 hrs. 0.5 hrs. LT = 11.3 hrs.
1 mins. 10 mins. 10 mins. 2 mins. 15 mins. 1 mins. 1 mins. 3 mins. CT = 43 mins.
CT/LT Ratio = 6.32%

Rolled First Pass

yield = 40%
 Future State Implementation Plan
Value Stream Outpatient Imaging Implementation Plan Review Dates
Executive Sponsor Allen Ward 11/1/2007
Value Stream Champion Sally McKinsey 11/21/2007
Value Stream Mapping Facilitator Dave Parks 12/13/2007
Date Created 10/18/2007 1/10/2008
Block Implementation Schedule (weeks) Date
Goal / Objective Improvement Activity Type Owner
# 1 2 3 4 5 6 7 8 9 10 11 12 Complete
Implement standard work for referral
2 Improve quality of referral KE Sean O'Ryan
process

Reduce lead time beween schedulingand Dianne

3, 4 Cross-train and colocate work teams PROJ
preregistration steps Prichard

Eliminate the need for two patient check- Michael

5, 6 Collect copays in Imaging KE
ins O'Shea

Dianne
6 Eliminate bottleneck in waiting area Balance work / level demand KE
Prichard

Eliminate lead time associated with

9 Implement voice recognition technology PROJ Sam Parks
transcription step

10 Eliminate batched reading Reduce setup required KE Sam Parks

Reduce inventory costs, regulatory risk Michael

7 5S CT supplies area; implement kanban KE
and storage needs O'Shea

12 Reduce delay in report delivery Implement additional fax ports PROJ Martha Allen

Increase percentage of physicians

12 Reduce delay in report delivery receiving electronic delivery (rather than KE Martha Allen
hard copy)

Approvals
Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator
Signature: Signature: Signature:

Date: Date: Date:

Building a Lean Enterprise
 Interim Briefings

Who: Improvement team and ALL involved

leadership
Purpose
 Share discoveries
 Process check – is the team moving in the right direction?
 Minimize surprises; gain consensus
 Discuss policy issues
Leadership may not veto tactical decisions
 Give them the “rules” upfront
Schedule improvement activities around leadership
schedules.
© 2010 Karen Martin & Associates 37
 What is A3?

A structured method for applying the PDCA (plan-

do-check-act) approach to problem-solving.
 Workforce development into Lean thinkers
International designation for 11 x 17” paper.
A concise “storyboard,” which visualizes the
problem solver’s discoveries and thought process
along the way.
 Communication
 Consensus building
 Organizational learning

© 2010 Karen Martin & Associates 38

 I.T.R. Project – A3 Report

METHODS MACHINE PEOPLE

Multiple entry methods IT access to equipment / user Customer/user process traning

no standard means
Support resources (not enough staff)
1 stop shop ITR Form Inventory hard to manage Only 8 techs to complete the work
call friend fly by
Inconsistent work close-out activities
Manual processing / tracking
Inability to define specific needs
Lack of req'd product and
accounting info Software installation takes too long to
complete and close out
Limited process tracking License procurement

Accessibility Time until completion Support resources

(due dates, completion dates)
Work location

ENVIRONMENT MEASURES MATERIALS

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 A3 Roles & Responsibilities

Problem Owner – Person(s) accountable for

results; authorized to engage any and all
parties needed
Problem Coach – Person(s) “developing” the
process owner into a skilled problem-solver;
typically leadership.
 They must be proficient problem-solvers first!
 Requires leadership development

© 2010 Karen Martin & Associates 40

 Kaizen Event Charter
Event Scope Leadership Schedule
Value Stream
Executive Sponsor Dates
Event Name
Value Stream Start & End
Specific Conditions
Champion Times

Process Trigger Facilitator Location

First Step Interim

Team Lead
Last Step Briefings
Workforce
Event Boundaries & Training
Event Coordinator
Limitations Final
Presentation
Event Drivers / Current State Issues Team Members
1 Function Name Contact Information
2 1
3 2
4 3
5 4
Event Goals and Objectives 5
1 6
2 7
3 8
4 9
5 10
Potential Deliverables On-Call Support
1 Function Name Contact Information
2 1
3 2
4 3
5 4
Possible Obstacles Approvals
1 Executive Sponsor Value Stream Champion Facilitator
2
3 Signature: Signature: Signature:
4 Date: Date: Date:
 Role of the Improvement Sponsor

 Authorize the activity, scope, objectives, and boundaries

 Participate in Charter formation
 Authorize resources (negotiate with peers, as necessary)
 Attend briefings
 Remove obstacles to the team’s success
 Gain leadership alignment
 Mediate policy debates
 “Negotiate” for resources (if needed) with peers and Execs
 People, time, funding, materials/technology, space
 Authorize modifying the objectives if the organization can’t
support the improvement
 Accountable for results
 Regular check-ins to assure appropriate progress and re-direct if
needed
© 2010 Karen Martin & Associates 42
 Lean Steering Committee /
Advisory Team’s Role
 Gather improvement ideas from across the enterprise.
 Evaluate & prioritize improvement opportunities (closely
tied to annual business goals).
 Enable alignment across leadership team.
 Communicate upcoming improvements and outcomes.
 Aid in necessary culture shift.
 Assure ongoing process measurement and continuous
improvement is occurring.
 Determine ongoing workforce development needs.
 Stay informed about competing priorities and shift
improvement focus accordingly.
 Allocate resources.
 Assess progress and adjust as needed.
© 2010 Karen Martin & Associates 43
 Modeling Lean Behaviors

Encourage leaders to:

 Go to the Gemba
 Clearly define problems and conduct thorough
root cause analysis
 Allow workers time for improvement
 Stick to the strategy that’s been set

© 2010 Karen Martin & Associates 44

 Take the Lead

One of the things that I’ve noticed is…

Would you be open to…?
I was reading …. and they mentioned that…
Could we get together to discuss…?

© 2010 Karen Martin & Associates 45

 Key Success Factors for
Achieving Results
Tenacity
Strategic improvement tied to business
goals
 Value Stream Mapping
Dedicated resources
 More on this in next month’s webinar
Heavy use of Kaizen Events initially
 With the goal of maturing to “daily kaizen”

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 Learning Objectives

Participants will learn how to help your leadership

team understand their role in the improvement
process, including:
 Setting improvement strategy
 Roles & responsibilities of project sponsors and A3 coaches
 “Letting go” of tactical decisions
 Briefing attendance
 Authorizing the frontline to make improvements
 Modeling lean behaviors
Assumption – already familiar with principles and tools

47
 Resources

Leadership-Focused
 Leading the Lean Enterprise Transformation,
George Koenigsaecker
 The Lean Manager, Michael & Freddy Ballé
(business novel)
 Toyota Kata, Mike Rother
The “Classics”
 The Toyota Way, Jeff Liker
 Lean Thinking, Jim Womack

© 2010 Karen Martin & Associates 48

For Further Questions

7770 Regents Road #635

San Diego, CA 92122
858.677.6799
[email protected]

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