Culture Change

Copyrighted 2005 by Fuss & ONeill, Inc.

Culture and Lean

Lean will Drive: Business Results Culture Change

Lean Requires:
Time Nurturing support from management

Culture and Lean

All too often attitudes encountered within an organization are based on past practices and experiences.
This culture can hinder efforts to change.

We tried that before and it did not work!!!

Why, thats impossible We dont do things that way here

Its against policy

Please leave it to the experts, they know

I always thought you were a little weird

We would be laughed at for trying that

Its too radical a change

Are you saying we are doing it wrong now?

If it were only that easy

The Absolute Humdinger Killer Response...

If you had been in this field as long as I have you would know that what you are suggesting is absolutely impossible and absurd.

Culture and Lean

Change is a multi-step process Change must be
driven by high quality leadership not just excellent management

Improvement Is Continual
Person who says, it can not be done, should not interrupt person who is doing it
Ancient Chinese Proverb

Improvement Is Continual
Think always in terms of continued improvement. To rest content with results achieved is the first sign of decay.
George Eastman

Reasons Why Change Fails

1) Complacency Too much past success Lack of visible crises Insufficient feedback Low or no expectations all add up to Yes, we have our problems, but they arent that terrible and I am doing my job just fine.
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Reasons Why Change Fails

2) Failing to create a sufficiently powerful leadership base.
Natural leaders from many levels of the organization, and who share the commitment to change. Task forces that are slow and politically fail.

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Reasons Why Change Fails

3) Under-estimating the power of vision.
The role of vision: to produce useful change by directing, aligning, and inspiring actions on the part of a large number of people.

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Reasons Why Change Fails

3) Under-estimating the power of vision (continued).

Without it, transformations dissolve:

Confusing projects Employee debates Tactical details dominate discussions

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Reasons Why Change Fails

4) Under-communicating the vision.
People will not make the sacrifices, even if they are unhappy with the status quo, unless they think the potential benefits of change are attractive and the transformation is possible. Without credible communication, and a lot of it, employees hearts and minds are never captured.
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Reasons Why Change Fails

5) Failing to create short-term wins.
Most people wont go on the long march unless they see compelling evidence within six months that the journey is producing expected results. Without short-term wins people give up.

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Reasons Why Change Fails

6) Neglecting to standardize the transformation firmly into the culture.
Change sticks only when it becomes The way we do things around here.
Show people how specific behaviors and attitudes improve their performance. Take the time to ensure that the next generation of management personify the new approach.

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Reasons Why Change Fails

7) Declaring victory too soon.
Changing a culture deeply takes three or more years. New approaches are fragile and subject to regression.

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Management
Is a set of processes that keeps a complicated system of people and technology running smoothly This is accomplished through:
planning, budgeting, organizing, staffing, controlling, and problem solving.

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Management
The top management of business must reform their consciousness and make up their mind to REVERSE the flow of conventional production, transfer and deliver. This faces lots of resistance and it takes courage.
Taiichi Ohno

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Leadership Management

Successful change is 70-90% leadership ... And only 10-30% management.

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Leadership
Is the capacity to get things done through others, by changing peoples mind-sets and energizing them to action.
The ability to inspire, confidence, respect, and enthusiasm among groups of individuals.

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Leadership

Leadership complements management; it doesnt replace it.

John P. Kotter

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Leadership: Three Models

Old Dictator StyleDo it my way

1990s Empowerment style Do it your way Lean StyleFollow me

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Lean Leadership
Dictator Leader of the old days
tried to tell everyone what to do no transfer, or cascade, of responsibility

Social-Work Leader
just set goals & let everyone do as they pleased loss of focus, direction, & control

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Lean Leadership
Lean Leaders lead in a very different way:

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by example by being knowledgeable by getting into the messy details by questioning by coaching & teaching by influence by building robust, sensible systems & processes that cascade responsibility without formal authority

Lean Learning Curve

Understanding theory in the head is NOT the problem. The problem is to remember it in the body, to make it instinctive. To have the spirit to endure the training is the road toward the winning in competition.
Taiichi Ohno

Everyone underestimates length of the learning curve

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Lean Learning Curve

Principles of LPS can be absorbed in the classroom, BUT:
The intellectual easy to grasp principles, such as one-piece flow, go against the training and practices of out whole prior manufacturing careers

Resistance from the production field was naturally strong ~ and they strongly resisted change.
Taiichi Ohno
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Vision
The vision must be CLEAR
If you cant describe a vision in 11 words or less and get a reaction that signifies understanding and interest you are in trouble.

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Vision
Kodak cameras. You push the button. We do the rest.
George Eastman

Precision Optics in 1 Week

Mike & Rick

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Characteristics of an Effective Vision

Imaginable
Conveys picture of what future looks like

Desirable
Appeals to long-term interest of employees

Feasible
Comprises realistic, attainable goals
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Characteristics of an Effective Vision

Focused
Is clear enough to to provide guidance in decision making

Flexible
Is general enough to allow individual initiative and alternative responses

Communicable
The supportive context for the vision can be successfully communicated within 5 minutes.
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Vision: Supportive Context

The one fatal error that we must avoid is the reduction of prices to the point where we can not make any money we should not go into a slaughter house competition with other manufacturers, but go out and hustle for the trade we ought to make Quality our fighting argument.
George Eastman January 30, 1904
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Short-Term Wins
People often complain about being forced to deliver short-term results. They are necessary to create URGENCY, VISIBILITY, & CREDIBILITY
Not an Evolution it is Revolution Slow progress kills change transformations
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Characteristics of Short-Term Wins

Help fine-tune vision & strategiesshortterm wins give concrete data on viability of ideas Undermines cynics & self-serving resisters clear improvements make it difficult for people to block needed change

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Characteristics of Short-Term Wins

Keep bosses on boardprovides those higher in the hierarchy with evidence that the change is on track Increase supportturns neutrals into supporters, reluctant supporters into active helpers

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Change
Insanity: doing things the same way youve always done them, yet expecting different results. Deming

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Effective Change
Even if people see a need for change the transformation can fail because of:
1) an inwardly focused culture 2) paralyzing bureaucracy 3) political and turf wars 4) lack of trust 5) lack of teamwork 6) lack of leadership in middle management.

Fear
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Effective Change: Barriers to Empowerment

Formal structures make it difficult to act
Bosses discourage actions aimed at implementing the new vision

Employees understand the vision & want to make it reality but they are boxed in Personnel and information systems make it difficult

A lack of skills undermines action

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Effective Change

To be effective, a method of transformation must address these barriers.

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8 Steps to Producing Effective Change

John P. Kotter

1) Establish a sense of Urgency Create a Crisis Bombard with information Send more data Hold people responsible for broader level performance measures Set targets so high they cant be easily reached

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8 Steps to Producing Effective Change

John P. Kotter

2) Create a Guiding Coalition

Find the right people
expertise, attitude, leadership

Create trust so they work as a team. Develop a common goal thats sensible and appealing to the heart.

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8 Steps to Producing Effective Change

John P. Kotter

3) Develop a vision and strategy

Vision to direct the transformation sensibly & appealingly. Strategy to achieve the vision.

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8 Steps to Producing Effective Change

John P. Kotter

4) Clearly communicate the changed vision

Use every vehicle possible Have the leadership base
role model the expected behavior.

Simple & free from jargon Use examples Multiple forums Repetition ...
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8 Steps to Producing Effective Change

John P. Kotter

4) Clearly communicate the changed vision

Lead by example Explain seeming inconsistencies Communication is two-way

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8 Steps to Producing Effective Change

John P. Kotter

5) Empower Broad-based Action

Get rid of obstacles Change systems or structures that undermine the change vision. Encourage risk taking, non-traditional ideas, actions, and activities.

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8 Steps to Producing Effective Change

John P. Kotter

6) Generate short-term wins

Provide evidence that sacrifices are worth it Build momentum Visibly recognize & reward the people who made the win possible.

To generate short term wins you must baseline when you start and measure results.
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8 Steps to Producing Effective Change

John P. Kotter

7) Consolidate Gains to produce more change

Use increased credibility to change all systems structures and polices that dont fit. Reinvigorate with new ideas, projects and change agents.

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8 Steps to Producing Effective Change

John P. Kotter

8) Standardize the new approaches in the culture

Articulate the connection between new approach and success Develop succession plans

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Continuous Improvement
Sustaining improvements requires
Organization-wide involvement Ownership Enthusiastic participation Confidence & trust Teamwork Best way to deal with change is to be actively creating it!

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If you think you can or you think you cant, youre absolutely right.

The choice is yours...

Henry Ford

W I IF M
Whats in it for me??
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