Business901 » Lean

Quality through Individual Actions Presentation

business901 — Mon, 30 Jan 2012 03:42:48 +0000

Below is a presentation that I will be giving this week to the Plantmix Asphalt Industry of Kentucky. It will be during the winter training school and focus on Building a Quality Program through your Actions. This an hour long presentation and I noticed a few parts that the subject matter may seem to jump off course but it actually flows pretty well for me. What are your thoughts? Any improvement ideas?

Improving Quality

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Service Design Thinking Podcast with Marc Stickdorn

business901 — Tue, 17 Jan 2012 04:36:00 +0000

Service Design changes the way you think about business. No longer can companies focus their efforts on process improvements. Instead, they must engage the customer in use of their product/service rather than analyzing tasks for improvement. We no longer build and hope that there is a demand. We must create demand through our product/service and Service Design Thinking is the enabler of this process. It changes our mindset of thinking about design at the end of the supply chain to make it look good and add few appealing features (all within budget). Instead, it moves design and the user themselves to co-create or co-produce the desired experience to the beginning of the supply chain.

My blog and podcast for next few months will focus on these features with Business Strategists, Design Thinkers, Appreciative Inquiry Coaches, Architects and of course Lean Thinkers. I could not think of a better way to start this series than having a podcast with co-author Marc Stickdorn of This is Service Design Thinking. A preview of his book is below.

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About: Marc Stickdorn graduated in Strategic Management and Marketing and worked in various tourism projects throughout Europe. Since 2008 Marc is full-time staff at the MCI – Management Center Innsbruck in Austria, where he lectures service design and service innovation. His main areas of interest are service design and strategic marketing management particularly in a tourism context. This involves research such as the development of a mobile ethnography application for mobile phones, the Customer Journey Canvas and various publications and presentations. Marc is co-founder and consultant of “Destinable – service design for tourism” and guest lecturer at different business and design schools.

His Websites:
http://thisisservicedesignthinking.com/
http://www.servicedesignresearch.com

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Appreciative Inquiry instead of Problem Solving

business901 — Thu, 12 Jan 2012 04:55:00 +0000

Could this be the missing link between Lean and Sales and Marketing?

Appreciative Inquiry (AI) focuses on growing or increasing in value through exploration and discovery. It is a positive approach to change. It compliments Lean Thinking when you view Lean from a Value perspective versus a Waste Perspective. It is also relevant on how you use Lean. If you use Lean on the supply side of the equation ridding yourself of waste might be the predominant thought. If you use Lean on the demand side, you have a tendency to view it more as a value producing mechanism.

Lean vs Appreciative Inquiry

Lean you identify key problems vs AI you look for best experience or practice.
Lean analyzes causes vs AI create future vision.
Lean finds possible solutions vs AI shares values through dialogue.
Lean you create action plans vs AI creates the future.
Lean lends itself to linear understanding vs AI “leans” toward circular understanding.

So what are your thoughts?

What happens when you take a positive approach to Lean?
Does the same problem solving methods work?
Can Appreciative Inquiry co-exist with Lean?

I was introduced to Appreciative Inquiry by fellow blogger, Ankit Patel who can be found at The Lean Way Consulting.

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Lean Sales and Marketing works because of Leader Standard Work

business901 — Fri, 23 Dec 2011 03:32:00 +0000

People struggle with Lean in sales and marketing because they don’t believe that many of the fundamental concepts of Lean, such as Standard Work can apply to the S & M discipline. If you review the slide shows under the Lean Engagement Team section on Slide Share, I think you will find how much they are based on standard work. Think about Leader standard work, it is intentionally designed to focus multiple layers of attention on the same process. For example:

The Team Leader’s Standard Work might including adding new call scripts into a follow-up campaign for a certain webinar or trade show. The team leader also heads a brief daily stand-up meeting with the team which is part of the regular agenda to ensure that appropriate action has been taken or initiated. The Team Coordinator should attend but not head the meeting.

The Team Coordinator might then work with the team to go over playback of scripts for training. He may bring in additional trainers as part of a weekly program to improve delivery. The TC ensures that program has been coordinated with other actions in the marketing communication department.

The Marketing Communication department sends follow-up emails, auto-responders and/or direct mail.

The Value Stream Manager might allocate budget for calling program and meet once a week to check progress and to lead a regularly-scheduled meeting with the TC, TL and MC to discuss the problems or opportunities.

It is this way that standard work is layered to ensure focus on the processes that produce the results. It is one of the most challenging aspect of the transition from a traditional results-only culture to a lean results-and-process-focused culture.

A quote from Dr. Michael Balle, “Lean is not a revolution; it is solve one thing and prove one thing.” Leader Standard work is the foundation of Lean Sales and Marketing and the fundamental process that replaces the "Silver Bullet" found in most typical marketing jargon.

What are your thoughts? Is your marketing efforts based on standard work?

Systems2win(who I work with) has an excellent description on the website, Leader Standard Work tool.and a new video out (below) that explains Standard Work.

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Blog Carnival Annual Roundup 2011: How to implement Lean Thinking in a Business

business901 — Thu, 22 Dec 2011 03:55:00 +0000

Tracey Richardson’s How to implement “Lean Thinking” in a Business is my third and final blog review for the John Hunter’s Curious Cat Management Improvement Blog Carnival. Tracey is a trainer, consultant and principal of Teaching Lean Inc. She has 22 years of Lean experience and worked at Toyota Motor Manufacturing KY as a team member, team leader and group leader in the Plastics Department from 1988-1998. She has over 460 hours training in Toyota Methodologies and Philosophy and currently is a trainer for Toyota, their affiliates in North America, and other companies upon request. Tracey experience in Toyota methodologies including: Lean Problem Solving, Quality Circles, Lean Manufacturing tools, Standardized Work, Job Instruction Training, Toyota Production System, Toyota Way Values, Culture Development, Visualization (Workplace Management Systems), Continuous Improvement (Kaizen), Meeting Facilitation/Teamwork, and Manufacturing Simulations.

Tracey also was the 2010 recipient of the Business901 Podcast of the Year! The podcast discussed A3 problem Solving.

Tracey likes to discuss the culture before jumping into problem solving but she takes a look at culture from a different perspective than others. It just about comes across as an attitude (in a very polite way) and there is type of swagger about the whole thing. Why not? When you become #1 in the world such as Toyota did and you are #1 methodology in the world which Lean probably is, why not have that swagger to your discussion? It is not pompous, it is an attitude that what you are doing works! She doesn’t write enough in my opinion because of her commitments as a trainer but her blog is one you should follow, you do not want to miss a word she says. You can also find her answering questions on the Lean Enterprise’s A3 Dojo Website.

What does the word “Lean” mean to you or your Company?

As I travel around the U.S. working with various companies that make a variety of different products, I realize a common denominator throughout them. How do they define the word “lean”, as well as the word “culture”? What I have realized is very interesting!

When I first started consulting I felt it was all about the “tools”, and that’s what companies seem to want, so of course, that’s what they got. As I have matured as an instructor/consultant I, like many, I have led and learned at the same time. In my experience at Toyota, especially back when we were led by the Japanese and their questioning approach; we all as new leaders were being led but at the same time leading others, so it was bringing about the “respect for people” and developing the workforce as a team. I can’t ever recall in my time at Toyota (Toyota Motor Manufacturing KY – TMMK 1988-1998), that we ever labeled what we were doing in a specific word like “Lean”, nor did we really think about our daily actions as a “culture”. It was just in the atmosphere. It wasn’t until I left Toyota to teach others, that those words started to surface. Somehow we felt the need to give it a name, and as I’ve experience the last 13 years as a consultant, I feel that can have somewhat of a hindering effect…..

Pathway to creating a “Lean Culture”

As I travel around to various clients they are always asking me, “How do you implement or create a culture like Toyota has”? I tell them that’s a very loaded question :). There are so many aspects of creating that culture it’s hard to give a short answer or even “wave a magic wand” to say… “Here is what you should do!!”. I wish I was that good . How I see it, you really need to differentiate the People side of Lean versus the Tool side. The People side will always be the most difficult aspect of the discipline needed to create this thing called Culture. The tools are just what they are, mostly countermeasures to change some discrepancy in our process. For the tools to be successful, People must understand their involvement or the purpose behind the tools. As I have stated in previous blog posts you must explain from the company perspective the WHAT, HOW and the WHY of any change or expectation within a persons work….

Tracey’s website: http://teachingleaninc.com and email: tracey@teachingleaninc.com

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How a Jazz Quartet exhibits Pull

business901 — Sat, 17 Dec 2011 03:30:00 +0000

Stefon Harris: There are no mistakes on the bandstand – What is a mistake? By talking through examples with his improvisational Jazz quartet, Stefon Harris walks us to a profound truth: many actions are perceived as mistakes only because we don’t react to them appropriately. More importantly, Stefon description of how pull works in the middle of a jam session is outstanding. It is a great lesson for teamwork and customer engagement and besides that the music is good!

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Six Sources of Influence in Change

business901 — Fri, 16 Dec 2011 02:32:55 +0000

From my blog post, The Difficulty of Mastery = The Difficulty of Lean, I started discussing the book, Change Anything: The New Science of Personal Success . I found the work paralleling Lean in many of its approaches and put Lean practices in parenthesis. Their strategy is based on four simple steps:

Identify Crucial Moments (Identify Value)
Create Vital Behaviors (Map Value Stream)
Engage All Six Sources of Influence (Create Flow – Enable Pull)
Turn Bad Days into Good Data (Seek Perfection – PDCA)

I stopped short of discussing the six sources of influence and have included them here:

Personal Motivation
Personal Ability
Social Motivation
Social Ability
Structural Motivation
Structural Ability

I am going to use a different perspective on these influences looking at it from a perspective of an organization trying to change and using Lean and my own thoughts to orchestrate the change.

Organizational Motivation will never persist without the change being tied to the marketplace. Dan Jones recently wrote in the blogpost, How can Lean Survive that “The best chance for lean to survive a change in top management is if it is seen to be delivering significant results, not just point improvements in key processes but bottom-line results for the organization as a whole, which would be reversed if support for lean disappeared. I disagree with the statements that you just have to accept that it is going to work and not expect results. Results are the motivating factors.

Organizational Ability requires learning new skills if you are going to change. If change is difficult we will take the path of least resistance. Mastering a new set of tools is never easy and that is why Lean is so powerful. Lean is based on standards, knowing how the process should work because if it’s clear, then when we see a variation from the process we can react immediately. This allows us to choose one problem from the other and just solve them one by one. This is incredibly powerful because with lean systems we rely on increasing our competency, increasing our training without having to take people off line, without having to get to classrooms, but by building it into the way we work.

Social Motivation and Social Ability go hand in hand. Employees, Suppliers, and even Customers would rather you not change. They want to deal with the known. Even voters will vote for someone that they know and disagree with over the unknown. You have to re-define the norm for example through Value Stream Mapping or an A3. You have to get those around you on board with the new ideal or without you will fall victim to those old tired out ways that have become ineffective. Surround yourself with willing partners that will push you to this new ideal. This is sometimes where a consultant can play a role.

Structural Motivation can be difficult in organizations since external goals are difficult to recognize. We can see internal improvements sometimes immediately. But these internal improvements may not result in the needle being moved in the marketplace. An effective motivator may be the fear of loss. Can you tie lost market opportunities to your change efforts? Can you demonstrate even the smallest of wins? If you can, it will significantly increase the odds of success.

Structural Ability small changes in your environment have a surprising effect on your choices. This is where Lean plays such a huge role in change. Lean is not rigorous. It uses visualization and it’s a readymade tool set that reduces the resistance to change. What Lean does require though is rigorous use to be successful.

Lean is a change tool but it is not a cure all. Dr. Balle said in an interview with me, “Lean is not a revolution; it is find one problem and solve one problem.” I wish you the best on your journey of change!

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The Difficulty of Mastery = The Difficulty of Lean

business901 — Thu, 15 Dec 2011 04:15:00 +0000

Dan Pink’s book Drive: The Surprising Truth About What Motivates Us is an excellent description of modern day Lean practices. Just using the example of Mastery from the book will give you an idea on how powerful of a process Lean actually is. I would encourage you to visit the Mastery chapter in Dan Pink’s Drive book for more background. He states that mastery is based on three laws:

Mastery is a mindset
Mastery is a Pain
Mastery is an Asymptote

He also states that flow is essential to mastery: “But flow doesn’t guarantee mastery—because the two concepts operate on different horizons of time. One happens in a moment; the other unfolds over months, years, sometimes decades. You and I each might reach flow tomorrow morning—but neither one of us will achieve mastery overnight.”

In Lean terminology, I can restate these same three laws this way:

Lean is a culture
Lean is grounded in Standard Work
Lean is an Ideal

We also think of Lean in terms of creating flow. But just as flow does not guarantee mastery, flow does not allow us to become Lean. Flow happens along the way of becoming Lean. Many people think they are Lean companies once they have done 5S, Value Stream Mapping or held a few Kaizen Events. The truth is just like mastering anything, it does not happen overnight.

Why does it take so long? Why do so few achieve it? From Dan Pink again: “Mastery is a pain.” That is why it seldom is done. When implementing Lean, most people draw the wrong conclusion and assume it is Leadership. They blame leadership as being shortsighted. This view is not only wrong; it is dead wrong. Our primary problem is not leadership but a long standing culture that is engrained within our organizations. It’s the way we do things. But worse it is also the way others help us do things. The outside forces that surround us to include vendors, customers and for that matter our entire supply chain simply supports the way we have always done things. So, not only do we have to create change internally but externally as well. It is not only a pain but it has to be someone else’s pain. Or does it?

From my blog post, If less than 1% of companies are successful with Lean, why are we doing it?, I stated: What does work is the same thing for both people and organizations. It is the scientific process of trial and error. You don’t get it right at first, you have to break habits, personal habits as an individual and company cultures as an organization. Successful companies do it a little bit at a time. In Lean, we call this scientific method PDCA. We plan, do it, check the results and adjust. It is a purposeful experimentation.

In the book, Change Anything: The New Science of Personal Success the authors created a strategic, step-by-step guide to breaking longstanding bad habits introduce a system for adopting-and sticking to-better behaviors. I found the work paralleling Lean in many of its approaches and put Lean practices in parenthesis. Their strategy is based on four simple steps:

Identify Crucial Moments (Identify Value)
Create Vital Behaviors (Map Value Stream)
Engage All Six Sources of Influence (Create Flow – Enable Pull)
Turn Bad Days into Good Data (Seek Perfection – PDCA)

What people forget about Lean is that it is the change agent for an organization. In its simplest form, you first go and see the current state. Second, you visualize your process. You make your process steps visible. You visualize things in a way that reveals your problems, not in a way to hide problems. If you understand what standards are, how the process should work because it’s very clear, then whenever we see a variation from the process we react immediately. This allows you to choose one problem from the other and just solves them one by one. This is incredibly powerful, this vision we have with lean systems of increasing our competency, increasing our training without having to take people off line, without having to get to classrooms, but by building it into the way we work. It is this empowering aspect that is not easy. But it may be the only way an organization can master Lean.

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Business901 #1 Podcast of the Year

business901 — Tue, 13 Dec 2011 04:20:04 +0000

Jim (“Cope”) Coplien podcast, Coplien on Agile, Lean and Architecture was the most listened Business901 podcast of the year. In the podcast, we discussed his new book, Lean Architecture: for Agile Software Development. Cope’s view on Lean and Agile is quite interesting and his knowledge of the subject goes far beyond the software practices that he writes about. Whether you are in IT or not, I think this podcast really helps in understanding Lean as a methodology and/or culture.

This is a transcription of the podcast:

The Podcast…

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Cope is a speaker and author whose works range from programming and architecture to ethnography and organizational design. He is a founder of the Software Pattern discipline and of organizational patterns, which in turn were one of the foundations of Scrum. Though he writes for a technical audience, his works focus on the human element of product development. His latest work, “Lean Architecture” is as much about how architecture helps make software usable, as it is about software maintainability on the technical side.

Other books:
Organizational Patterns of Agile Software Development
Advanced C++ Programming Styles and Idioms

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Lean and Six Sigma training for deployed Soldiers

business901 — Sat, 10 Dec 2011 03:32:00 +0000

Just received a copy of an article, Resolute’ brigade provides Lean Six Sigma training to deployed Soldiers from Tim Fowler, a CPS Professional Services contractor assigned to Task Force Resolute at Kandahar Airfield, Afghanistan. Tim is teaching a group of U.S. Forces about Lean and Six Sigma. They are applying this training immediately through improving the logistics capabilities of the command. More information can be found in the article.

Quote from the article:

“Through Lean Six Sigma, soldiers and leaders will learn how to properly manage time and resources while delivering a top quality product the first time,” said Chief Warrant Officer Jackie Vuorinen, the TF-Resolute safety officer. “This is a program all soldiers can use to save Army resources while providing higher quality products.”

Tim appeared on the Business901 podcast, Are right brain thinkers better leaders? Tim is a University of Kentucky Certified Lean Master, a Goldratt Institute Theory of Constraint Supply Chain Expert, an ASQ-Certified Six Sigma Black Belt, and a Licensed Social Worker with a SECRET clearance and his website, BusinessLeadership.com is a popular venue for leading edge thinking.

Thanks Tim for passing this on and wish you and everyone else at Kandahar Airfield a safe and Happy Holiday!

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Don’t get rid of your waste, start utilizing it!

business901 — Thu, 08 Dec 2011 03:40:00 +0000

Do you always look as waste as something you should get rid of? In lean circles this would be an area that they would attack and as many call it get rid of the low-hanging fruit? That is supply side thinking. And it works when there is excess demand. We need to become more effective and efficient. We should even go beyond Lean and reach Six Sigma levels. Of course, we do! Or do we?

But wait a minute, is there excess demand? We live in a world that has excess supply and as a result we have to start viewing the market from the demand side. Do the same rules apply? What happens if we start looking at waste as a resource versus a constraint? Could it create other opportunities?

For example, how much time, money and knowledge are spent optimizing the supply chain on the inbound side versus the outbound? Do you consider developing the supply chain for a market advantage? The organizations that have specifically, Amazon for example has created business opportunities for themselves looking at excess capacity as a resource and developed products around it (Amazon Prime, selling used books, buying back books, cloud computing). They even have started creating a publishing empire as an outgrowth of their ability to deliver digital products.

Does your supply chain shy away from encouraging mass customization? This is an old term that is re-emerging as a result of a response to create demand. Supply Chain Technology should be leading the way in creating new products opportunities not just looking at getting rid of waste. Why can’t the supply chain lead in defining new ways of mass customization, collaboration and co-creation opportunities within their existing customer base?

Administrative functions may be another untapped goldmine. Why not create opportunity there for customers to utilize your purchasing power for example? The untapped goldmine is on the demand side of the equation, that’s where the need is? Waste may be your most underutilized resource within a company, it can very often be a way to accelerate or increase demand. Extend your services that you are good at and use them to gain competitive advantage by extending them to your customer. If we don’t, we are forgetting to maximize all of our opportunities.

Consider things that you do well internally and how they may provide additional value to your customer. I think we forget sometimes how embedded the culture of our company is in our product or service. You will find that culture extending into your customer’s place of business. Your internally practices may not be as internal as you may think. Getting your engineers and operational people into your customers place of business or in Lean terms going to Gemba could provide some very interesting conversations and as a result opportunities.

What are you doing in your business that might have value for others?

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Using an Integrated approach of Lean, Six Sigma, and TOC to deliver results in Healthcare

business901 — Tue, 15 Nov 2011 18:45:00 +0000

Bahadir Inozu, Ph.D., the Chief Executive Officer and Dan Chauncey, the Director of Deployment Services for NOVACES joined me in this podcast to discuss an integrated approach for using three industrially based methods, Lean, Six Sigma, and Constraints Management to transform hospital operations. They have just published a book, Performance Improvement for Healthcare that explains how using the right tool for the right problem at the right time from a systems perspective, the authors show how to deliver faster results and greater return on investment.

Scales to any size organization and aligns easily to varying needs
Shortens traditional execution time from adoption to results
Optimizes the utilization of resources required to accomplish the desired goals
Breaks organizational constraints and maximizes organizational efficiency
Sustains the gains and defines a path to self-sufficiency
Achieves a global impact through strategy alignment and focused project selection
Shows how to integrate Constraints Management with Lean and Six Sigma to create a “best of breed” approach
Explains how hospitals can deploy or re-energize their performance improvement program specifically for what’s most important for their particular organization

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About Novaces: A management consulting firm that provides performance management, continuous process improvement (CPI), and project management services to both public and private sector organizations. NOVACES helps its clients build capabilities in today’s most effective methodologies to achieve breakthrough operational and financial results.

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GE CMO sheds her view on Design Thinking

business901 — Sat, 12 Nov 2011 03:30:00 +0000

In a rare interview, GE’s SVP and Chief Marketing Officer Beth Comstock talks to Behance’s Scott Belsky about what it takes to keep great ideas alive in a big company. Offering essential insights for creative leaders, the conversation touches on the power of passion and storytelling in getting ideas off the ground, why we should make heroes out of failures, and the challenges of driving change amidst bureaucracy.

Beth Comstock: Make Heroes Out of the Failures from 99% on Vimeo.

Her discussion is quite interesting when viewed on the future of Design in business and how we look at value. I do not think organizations are expecting designers to design business models but with the acceptance of the Business Model Generation Template by Alex Osterwalder it is becoming quite clear that it may be something that is being considered.

Thoughts from this conversation: Every organization says that they are customer centric but few are. They are still selling features and benefits. As the next stage of development into user-centric organizations takes place, it will take quite a jump for organizations to bridge that gap. If they think they had trouble at customer centric levels, look out. When organizations start shifting that direction the Business Savvy Designer will have a great opportunity. It is already being seen and driven not only the BMGen Template but the understanding that the supply chain has shifted to favor the customer. We live in a world of excess supply and the value in use concepts are becoming the driver of design and business.

The host of the program, Scott Belsky is the founder of Behance and author of the book, Making Ideas Happen. This next week when I discuss Standard Work for Lean Sales and Marketing teams, you will see how it has influenced my thoughts about project management. The methodology is based on boiling down projects to the most basic elements with an emphasis on action. The approach is called The Action Method. and is my task management planner of choice. It is extremely simple and highly intuitive for a single person and/or team. I use the paper, online and the app for my iPhone all in combination with very little of redundant work.

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Lean Canvas for Lean EDCA-PDCA-SDCA

business901 — Wed, 09 Nov 2011 18:45:00 +0000

SALES PDCA is the framework I use for the process that takes place in the customer sales and marketing cycle. It is a standard PDCA cycle except the SALES part of the framework is where the sales team gets its directions and coaching from the team coordinator and value stream manager. Within the actual PDCA stage the sales team is empowered to make their own choices and determine their own direction to accomplish the goals of that cycle. This framework is introduced in the Marketing with PDCA book.

Continuing with my Lean journey and the development of the Lean sales and Marketing platform, many of the PDCA cycles became standardized and SDCA was introduced. Graham Hill had mentioned the concept of EDCA (Explore-Do-Check-Act). Graham was the head of CRM at Toyota Financial Services. He stated that:

Marketing in highly competitive markets is about exploring new propositions on the innovation fitness landscape. The environment determines where to start and complex marketing environments need EDCA. EDCA = Explore, PDCA = Plan, SDCA = Standardize, marketing operations are all about moving along the EDCA>PDCA>SDCA pathway.

As a result it was refine into three separate distinctive cycles of SALES EDCA, SALES PDCA, SALES SDCA. Viewing your value stream/marketing cycle in this manner creates endless opportunities for improvement. It is also easier to handle the team concept of sales and marketing with this outline.

The Lean sales and marketing team is a cross-functional group whose number and expertise are derived from the decision-making path of the customer. You must first have established directives for a particular marketing cycle and a structure to match it. Are you looking for creativity (EDCA), problem resolution (PDCA), or tactical execution (SDCA)? Once you have established the objectives, you choose a team structure to match it. Without this process you may have creative teams working on tactical execution or on the other hand a problem-solving team working on a creative solution.

The question remained how do we make this knowledge explicit? Several years ago, I would have just framed this as an A3 report and placed the SALES on the left side and the ECA/PDCA/SDCA on the right side. However I have decided to use the terminology of a canvas versus an A3 following the concept developed in the Business Model Generation by Alexander Osterwalder. The BMG Canvas has its roots in Design Thinking which I believe is a better conduit for focusing outside the organization.

Lean Canvas for SALES EDCA/PDCA/SDCA

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In the upcoming week, I will blog about the individual Lean Canvases and Standard Work templates. This slide show is meant to be the introduction to the concept.

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