Toyota's management routines for continuous improvement; can QRM do with‐out?

Managers
Toyota Kata
Toyota's management routines for  What are the biggest frustrations in your work?
continuous improvement.
Can QRM do with-out?

For a better way to
lead
manage
develop people

continuous improvement
adaptation
survival
superior results

Organizing Partner
How to reach your
Lean
goals when you cannot
Management  see the road ahead?
Teachers

© Emiel van Est 2

Top 3 frustrations for managers Research 1

1. Not working together effeciently

2. Insuffient responsibility and initiative by employees

3. Lack of focus and direction

Responsibility
& Challenge
Initiative
Source: 30 juli 2013 -http://www.managersonline.nl/nieuws/13793/de-drie-grootste-frustraties-van-
leidinggevenden.html
Karin van Zuilen en Frans Bouman

© Emiel van Est 3 © Emiel van Est 4

Command & Control Research 2

 Manager trying to keep all the balls in the air

 Do you use this style of management?

 Are you being managed this way?

Responsibility
& Challenge
Initiative

© Emiel van Est 5 © Emiel van Est 6

 can QRM do with‐out? “Laissez Faire Management” “Laissez Faire Management”  Do you use this style of management?  What is your responsibility?  Why are you needed?  Are you being managed this way?  How do you influence? © Emiel van Est 7 © Emiel van Est 8 Dilemma Research 3 Tell xxx* people what to do when.nl/nieuws/13793/de-drie-grootste-frustraties-van- leidinggevenden.managersonline. OR Let xxx* people do what they want when they want. Lack of focus and direction  Are you being managed this way? Source: 30 juli 2013 -http://www. Not working together effeciently 2.Toyota's management routines for continuous improvement. Responsibility & Challenge Initiative * XXX = [number of people in your organization] © Emiel van Est 9 © Emiel van Est 10 Swopping styles Top 3 frustrations for managers  All balls on the floor.html Karin van Zuilen en Frans Bouman © Emiel van Est 11 © Emiel van Est 12 . 1. Insuffient responsibility and initiative by employees  Do you use this style of management? 3.

they’re busy acting out their unhappiness. putting time — but not energy or passion — into their work. 2 Not Engaged employees are essentially “checked out. They drive innovation and move the organization forward.” They’re sleepwalking through their workday. Every person takes initiative to solve problems and improve their work  People & Process OR 2. 1. these workers undermine what their engaged coworkers accomplish. Every day. The work of every y person p is aligned g to deliver value for the customer and prosperity for the organization  Purpose Let xxx* people do what they want when they want.Toyota's management routines for continuous improvement. Source: State of the Global Workplace Gallup © Emiel van Est 13 Source: State of the Global Workplace Gallup © Emiel van Est 14 Source: State of the Global Workplace Gallup © Emiel van Est 15 © Emiel van Est 16 Wouldn’t it be great if… This dilemma has a solution… Tell xxx* people what to do when. This is the big management challenge * XXX = [number of people in your organization] Adapted from John Shook © Emiel van Est 17 © Emiel van Est 18 . can QRM do with‐out? 1 Engaged employees work with passion and feel a profound connection to their company. 3 Actively Disengaged employees aren’t just unhappy at work.

a pitfall of habits can be that the past experiences that created them do not necessarily represent future situations.Toyota's management routines for continuous improvement. unconscious daily practicing Team or The power of habtis Organizational Culture Routines Teaches Mindset and Habits behavior Rituals Norms However.” ~ Daniel Kahneman. because it hates gaps. can QRM do with‐out? Lean Lean Management  Management  Teachers Teachers YOUR TEAM OR ORGANIZATIONʼS CULTURE PERPETUATES ITSELF EVERY DAY This is automatic. Then re-cross them the other way. not necessarily that the story is true. Our mind subconsciously fills in blanks. Thinking Fast and Slow © Mike Rother TOYOTA KATA 23 © Mike Rother TOYOTA KATA 24 . please cross your arms. But. rather than testing. “Declarations ec a at o s oof high g co confidence de ce mainly tell you that an individual has constructed a coherent story in his mind. once we think we know we set a course and go. which overwhelms our cognitive resources.. learning and adapting. Thatʼs where trouble begins. Gaps mean we have to think hard about each circumstance. © Emiel van Est 19 © Mike Rother TOYOTA KATA 20 A familiar illusion A familiar illusion © Mike Rother TOYOTA KATA 21 © Mike Rother TOYOTA KATA 22 WE LIKE TO BE CERTAIN IN OUR VIEW Thatʼs the way our brain is wired A QUICK EXPERIMENT Take a moment..

 can QRM do with‐out? QUICK EXPERIMENT In each case. For most of us the other way feels odd. © Mike Rother TOYOTA KATA 10 © Mike Rother TOYOTA KATA 26 OUR UNCONSCIOUS HABITS ARE FAST & POWERFUL Our brain creates habits and heuristics to conserve resources. © Mike Rother TOYOTA KATA 30 . through practice. © Mike Rother TOYOTA KATA 27 © Mike Rother TOYOTA KATA 28 Lean Lean Management  Management  Teachers Teachers What would happen if you practiced folding your arms the other way every day? Developing new habits It would become normal. while deliberate thinking is slow and intentional. second time compared to the first? Then clasp them the other way. performed almost without thinking Habits are behaviors that have been repeated regularly and Much of what happens in your organization is a consequence occur unconsciously. something you can do without thinking about it. The repeated behavior develops neural of the habits that people in the organization have learned pathways in the brain. Unconscious thinking is fast and instinctive. to free MUCH OF WHAT WE DO IS HABITUAL up capacity for when deliberate decision making is necessary Like crossing our arms. making the behavior easier to complete. how did it feel the Please clasp your hands.Toyota's management routines for continuous improvement. You have to consciously think about it and be more deliberate. whether deliberately or by happenstance. Unconscious Deliberate Thinking Thinking The subconscious can process billions of bits of information per second. Why do this? The brain weighs only 3 pounds but uses 20% of the bodyʼs energy! Unconscious thinking enables you to get through the day by taking care of routine decisions with minimum fuss. while our deliberate mind can only process a few thousand per second.

This is automatic. conscious unconscious Once the pattern youʼre practicing enters your daily practicing daily practicing unconscious it gets smoother and faster and becomes Team or the new normal.but thatʼs not 100% correct. The work of every ypperson is aligned g to deliver value for the customer and prosperity for the organization  Purpose Which habbits do we need? Adapted from John Shook © Emiel van Est 35 © Emiel van Est 36 . This is deliberate. and maybe even an entire society. habitual way you operate. KATA HELP YOU CREATE NEW CULTURE We may think that all skill is innate -. A pattern we practice to make it second nature A pattern we practice to make it second nature so we do not have to think about it anymore so we do not have to think about it anymore © Emiel van Est 33 © Emiel van Est 34 Own experience Wouldn’t it be great if… A kata is a routine you practice to make it a habit. WE CAN CHANGE OUR AUTOPILOT Humans have the ability to deliberately develop new habits! Thatʼs what the Improvement Kata & Coaching Kata are about. can QRM do with‐out? SO.. this way. You can rewire your thinking and habits by deliberately (consciously) practicing a targeted behavior pattern. © Mike Rother TOYOTA KATA 31 © Mike Rother TOYOTA KATA 32 What is a Kata? Proven effective pattern.Toyota's management routines for continuous improvement.. 1.that you are either born with it or not -. Every person takes initiative to solve problems and improves their work  People & Process 2. Practicing Affects Organizational Teaches specific Culture Mindset new Routines and behaviors Habits behavior Rituals Deliberate Norms Practice develops Unconscious Thinking You can change the culture of an organization.

Condition Condition Condition  What are the unseen managerial Target ?! Condtion routines and thinking that lie behind Toyota's success with Im continuous improvement and adaptation? Coaching  How can other companies Coaching Kata Cycles develop similar routines and thinking in their organizations? ? Story Board ! 5Q © Emiel van Est 37 © Emiel van Est 38 The Improvement Kata Introduction You are here Understand Grasp the Establish Next PDCA Toward the Direction Current Target Target Condition Condition Condition ?! x Temptations around you Target Condtion • Problems • Waste • Improvement opportunities Adapted from Bill Constantino © Emiel van Est 39 © Emiel van Est 40 Threshold of Knowledge Threshold of Knowledge x Adapted from Bill Constantino © Emiel van Est 41 © Emiel van Est 42 .Toyota's management routines for continuous improvement. can QRM do with‐out? Meet challenges by using a proven What is Toyota Kata? effective pattern of thinking and acting  Published in 2010 Understand Grasp the Establish Next PDCA Toward mprovement Kata the Direction Current Target Target  Research ran from 2004-2009.

Toyota's management routines for continuous improvement. can QRM do with‐out? Waste walk. low hanging fruit Default What can we improve? x x Adapted from Bill Adapted from Bill Constantino Constantino © Emiel van Est 43 © Emiel van Est 44 The Improvement Kata 1 Understand the Direction A different approach Understand Grasp the Establish Next PDCA Toward the Direction Current Target Target Condition Condition Condition Target ?! x Challenge Vision for Custo e Customer Condtion Adapted from Bill Constantino © Emiel van Est 46 2 Grasp the Current Condition 3 Establish Target Condition x Challenge Vision for Custo e Customer x Target Co d t o Condition Challenge Vision for Custo e Customer Adapted from Bill Adapted from Bill Constantino Constantino © Emiel van Est 47 © Emiel van Est 48 .

2006) © Mike Rother TOYOTA KATA 40 © Mike Rother TOYOTA KATA 54 . risk free & certain. logical. rational. (which our brain tries to do) The way the adult brain functions. or us serving the customer. what do we need next? Adapted from Bill Constantino © Mike Rother TOYOTA KATA 52 © Emiel van Est 51 Mindset 1: A FIXED MINDSET * We derive a lot of our sense of security and confidence from BUT TRYING TO MAKE EVERYTHING CERTAIN certainty. and tend to seek it. With this mindset: • We expect that things will go as planned • We feel we have control and can predict Mystery Inside your current knowledge threshold Hereʼs y Uncertainty Implementation 3 Apparent Comfort Why! Certainty area And many things should be as certain as possible! Like the beam holding up a roof. *Terminology by Carol Dweck. familiar. we naturally strive to operate IS DANGEROUS in what I call a Zone of Apparent Certainty. can QRM do with‐out? 3 Establish Target Condition 4 PDCA Toward Target Condition What must we What must we Improve? Improve? x Target Condition Challenge Vision for Customer x Target Condition Challenge Vision for Customer Obstacles become visible Adapted from Bill Adapted from Bill Constantino Constantino © Emiel van Est 49 © Emiel van Est 50 Threshold of Knowledge Expanded LETS LOOK AT TWO MINDSETS What must we Improve? x x Target Co d t o Condition Challenge Vision for Custo e Customer So.Toyota's management routines for continuous improvement. Mindset (Random House. calculable. where things are as expected.

Toyota's management routines for continuous improvement. Prediction error leads you out of your assumptions and forces exploration. May 2009 This is because prediction error reveals a knowledge threshold. Surprise. Potential fMRI brain scan This brain is for new knowledge. of a person in a actively engaged in Error learning & discovery. You learn from making mistakes and correcting them. it has to be activated Scientific thinking is always provisional. © Mike Rother TOYOTA KATA 57 © Mike Rother TOYOTA KATA 58 Surprise! WHY IS THIS WAY OF THINKING AND ACTING SO DIFFICULT? Learning happens when reality does not meet the expectation. Our human capability to learn is often latent. fMRI brain scan This brain is of a person in a coasting on Strengthens memory it already Confirmed current thinking. Gerald Hüther Presented at Production Systems 2009 Conference. © Mike Rother TOYOTA KATA 59 © Emiel van Est 60 . fMRI Scans of brain activity by Dr. When a result is different than predicted you can learn something new. Munich. can QRM do with‐out? #1: WHAT IS AHEAD OF US TRYING TO DECIDE EVERYTHING IN ADVANCE SIMPLY ISNʼT CERTAIN IS INEFFECTIVE We can see only part way down the path to any challenging goal Canʼt see all the way there © Mike Rother TOYOTA KATA 55 © Mike Rother TOYOTA KATA 56 #2: THE SPECIAL LEARNING CAPABILITY OF OUR #3: UNEXPECTED RESULTS HELP YOU PROGRESS BRAIN GETS ENGAGED WHEN WE DONʼT KNOW You donʼt learn by doing something right. Predictable has (which uses Situation less energy) Like re-walking a Prediction path in the snow. wiring new circuits Challenging (which Situation uses more energy) Prediction confirmation keeps you in place. because you already know how to do it.

To reach new levels off performance f a knowledge threshold has to be there. 2) You see further by experimenting. Two points about knowledge thresholds: 1) You have to acknowledge them to see them. approach to facilitate Improvement Kata skill development in daily work. you teach the Improvement Kata thinking pattern. Create many surprises! © Mike Rother TOYOTA KATA 62 © Emiel van Est 61 Mindset 2: AN ADAPTIVE MINDSET How to learn and teach With this mindset you learn to operate in two zones simultaneously: an adaptive mindset The Zone of Apparent Certainty + the Zone of Uncertainty In the Zone of Uncertainty: Understand Grasp the Establish Next PDCA Toward mprovement Kata • There is a dilemma: We want to make the best possible plan. not conjecture. can QRM do with‐out? You learn most from small steps NOT KNOWING IS NOT DONE The Threshold of Knowledge is your Learning Edge The Knowledge Threshold is the point at which you have no facts & data and start guessing.Toyota's management routines for continuous improvement. the Improvement Kata and Coaching Kata comprise a system of management Photos from “The Karate Kid. The coach introduces corrections to ensure that The Coaching Kata gives managers a standardized the learner practices the right pattern the right way. the Direction Current Target Target but the optimum path will only be known in hindsight Condition Condition Condition • There are unanticipated obstacles • You acquire/increase your knowledge as you go Target ?! Condtion 1 Inside y your current Mystery Im knowledge threshold Uncertainty Expanded Coaching comfort 2 Apparent Coaching Kata Outside your current Cycles Certainty knowledge threshold area Learning Zone ? Story Board ! “Ingenuity” “Discovery” 5Q © Mike Rother TOYOTA KATA 63 © Emiel van Est 64 Practice Pattern 2: THE COACHING KATA A routine for teaching the Improvement Kata CORRECT PRACTICE MAKES PERFECT The learner will naturally default back to his or her The Coaching Kata is a coaching pattern to help existing ways of thinking and acting.” 1984 © Mike Rother TOYOTA KATA 65 © Mike Rother TOYOTA KATA 66 . Or here? Together.

. with their everyday words and actions all leaders and managers are teaching their Here the manager Here the manager people a mindset and way of operating. .   Improve AND With the Improvement Kata You are not free to do what Teach you want when you want.. is a coach who automatically deliberately teaches teaches and reinforces a new way the prevailing culture Team or Practicing P ti i Aff t Affects Organizational T Teaches h specific Culture Mindset new Routines and behaviors Habits behavior Rituals Norms © Mike Rother TOYOTA KATA 71 © Mike Rother TOYOTA KATA 20 . can QRM do with‐out? THE INTENTION IS NOT A different way to manage AUDIT AND COMPLIANCE Itʼs this.Toyota's management routines for continuous improvement. Adapted from John Shook © Mike Rother TOYOTA KATA 67 © Emiel van Est 68 Two Basic Roles Apparent contradiction Two Basic Routines Result Responsibility Doing Your manager will not tell you Propose What what to do by when..not this Tell xxx* people what to do when OR Let xxx* people do what they want Teaching the learner how to play when they want.. the sytematic and scientific continuous improvement game Once you develop proficiency with the Improvement * XXX = [number of people in your organisation] Kata and Coaching Kata you can evolve them into kata that suit your organization. Coach (Mentor) With the Coaching Kata Learner (Mentee) Approve How Responsibility ≠ Authority Authority Adapted from John Shook © Emiel van Est 69 © Emiel van Est 70 LEADERS & MANAGERS ARE TEACHERS. AND DELIBERATE versus AUTOMATIC TEACHING THEIR ACTIONS DETERMINE COMPANY CAPABILITY Whether consciously or not.

dialog whith their Mentees.Toyota's management routines for continuous improvement. The learnings from the experiment questions to make matters 3. What is your Next Step? (next PDCA/experiment) Experiment What do you expect? 5. In that we spoke about last time? way you stay up to date Target Actual PDCA Cycle Target Actual PDCA Cycle with the functioning of the Condition Condition Record Condition Condition Record process based on facts and data. notes Initiative Whenever necessary the 1. When can we go and see what we Have Learned from taking that step? * Youʼll often work on the same obstacle for several PDCA cycles. Wat hebben we geleerd? 1. Mentee uses the Only then the Coaching Dialog can start. PDCA CYCLI REGISTRATIE FORMULIER Datum Proces Meting Proces Stap Wat verwacht je? Resultaat Let goed op. The observation of the experiment Coach will ask clarifying 2. What Obstacles do you think are preventing you from reaching the target condition?   Which *one* are you addressing now?   Coaching cyclus 4. can QRM do with‐out? Research 4 Daily Dialog PDCA CYCLI REGISTRATIE FORMULIER The Five Questions Datum Proces Meting Proces Stap Wat verwacht je? Resultaat Let goed op. A proposal for the next experiment clear and to find out if the 4. The Coach uses the Coaching Kata and the Reflection Questions as a The Mentee uses the PDCA Registration Record to Pattern for the daily coaching become well prepared for the coaching dialog. What is the Actual Condition now?  (Turn Card Over)  3. Improvement Kata pattern properly. © Emiel van Est 73 © Emiel van Est 74 Lets start! Story Board of the Mentee 1 What is the Target Condtition? Focus Process: Challenge : Target Actual PDCA Cycle Ask this question each Condition Conditon Record coaching cyclus. This form is the heart of the Mentee’s Storyboard Responsibility These are not the only Before the start of the coaching dialog the Mentee & Challenge questions the Coach asks. Wat hebben we geleerd? discussions. Wat hebben we geleerd? Obstacle Parkinglot     Obstacle Parkinglot Coaching cyclus Experiment   © Emiel van Est 77 © Emiel van Est 78 . 2 What is the Actual Condtion now? What was your last step? Ask this question each What was the experiment Focus Process: Challenge: Focus Process: Challenge: coaching cyclus. Condition Condition Record Coaching cyc lus Experiment Obstacle Obstacle Parkinglot Parkinglot Adapted from Mike Rother © Emiel van Est 75 © Emiel van Est 76 Turn the card. with associated expectations. It provides Focus Process: Challenge: PDCA CYCLI REGISTRATIE FORMULIER focus and prevents endless Target Actual PDCA Cycle Datum Proces Meting Proces Stap Wat verwacht je? Resultaat  Let go ed o p. What is the Target Condition? Coaching Kata 2.

Wat hebben we geleerd? Obstacle Parkinglot     Obstacle Parkinglot Coaching cyclus Experiment   © Emiel van Est 83 © Emiel van Est 84 . Datum Proces Proces Meting Stap Wat verwacht je? Resultaat Let goed op. Wat hebben we geleerd?     Obstacle Parkinglot Obstacle Parkinglot Coaching cyclus Experiment   © Emiel van Est 81 © Emiel van Est 82 Which one are you adressing now? 4 What is your next step? Focus on 1 obstacle.Toyota's management routines for continuous improvement. can QRM do with‐out? What did you expect? What actually happened? What did you expect to What are the observaties? Focus Process: Challenge: Focus Process: Challenge: come out of that Did the expectations come experiment? Target Actual PDCA Cycle true? Target Actual PDCA Cycle Condition Condition Record Condition Condition Record We can learn the most from PDCA CYCLI REGISTRATIE FORMULIER the expeactations that do PDCA CYCLI REGISTRATIE FORMULIER Datum Proces Proces Meting not come true…. Wat hebben we geleerd? Stap Wat verwacht je? Resultaat Let goed op. We want small Target Actual PDCA Cycle Target Actual PDCA Cycle quick experiments. Condition Condition Record Is this proposal concrete and does Condition Condition Record it have a chance to provide new knowledge? PDCA CYCLI REGISTRATIE FORMULIER Datum Proces Meting Proces Stap Wat verwacht je? Resultaat Let goed op. Wat hebben we geleerd?     Obstacle Parkinglot     Obstacle Parkinglot Coaching cyclus Coaching cyclus Experiment Experiment     © Emiel van Est 79 © Emiel van Est 80 Turn the card again What did you learn? 3 What obstacles do you think are preventing you from reaching the target condition? Learning is the purpose! Did we find new obstacles? Focus Process: Challenge: Focus Process: Challenge: Are the previously found Did the last experiment provide Target Actual PDCA Cycle obstalces still relevant? Target Actual PDCA Cycle new knowledge and did the Condition Condition Record Condition Condition Record mentee recongnize that? PDCA CYCLI REGISTRATIE FORMULIER Datum Proces Meting Proces Stap Wat verwacht je? Resultaat Let goed op. Prevent Is this a scientifically derived Focus Process: Challenge: Focus Process: Challenge: working on more issues proposal based on the learnings? simultaneously.

The work of every ypperson is aligned g to deliver value for 2 Apparent Outside O t id your currentt knowledge threshold Certainty area the customer and prosperity for the organization Learning Zone  Purpose “Ingenuity” “Discovery” This is the big management challenge Adapted from John Shook TOYOTA KATA © Mike Rother 89 © Emiel van Est 90 . Every person takes initiative to solve problems and improve their work 1 Inside your current knowledge threshold Mystery Uncertainty  People & Process Expanded comfort 2. Wat hebben we geleerd?     Obstacle Parkinglot Obstacle Parkinglot Coaching cyclus Experiment   © Emiel van Est 85 © Emiel van Est 86 Lean Lean Management  Management  Is QRM challenging? Teachers Teachers Does QRM venture into the unknown? Toyota's management routines for continuous x improvement. improvement Vision for Challenge Custo e Customer Can QRM do with-out? © Emiel van Est 87 Adapted from Bill Constantino © Emiel van Est 88 How does QRM handle this How does QRM handle uncertainty? challenge? How does QRM teach an adaptive mindset? 1.Toyota's management routines for continuous improvement. Is dit een verwachting die Target Actual PDCA Cycle Target Actual PDCA Cycle concreet is en wellicht niet Condition Condition Record Is the proposed term in line Condition Condition Record bewaarheid zou kunnen with the proposed experiment? worden? PDCA CYCLI REGISTRATIE FORMULIER Datum Proces Meting Proces Stap Wat verwacht je? Resultaat Let goed op. can QRM do with‐out? 4 Wat verwacht je daarvan? 5 When can we go and see what we have learned from taking that step? Leren is ons doel! We want short quick Focus Process: Challenge: Focus Process: Challenge: experiments.

* XXX = [number of people in your organization] © Emiel van Est 91 © Emiel van Est 92 More information? © Emiel van Est 93 .Toyota's management routines for continuous improvement. can QRM do with‐out? What is QRM’s solution for A winning combination? this dilemma? Tell xxx* people what to do when. OR Let xxx* people do what they want when they want.