Truth Behind Lean Success

“You must turn it over to the people who do the work. Train them
and then let them run. The lean leader’s job is less command-and-control.
Set policy deployment, the targets, and turn it loose. Provide
the resources and — another big part of the job — take away the
obstructions and obstructive people.
The antithesis is when leadership is focused on posturing and
gaining status, engaging in “smart speak,” with executives talking to
one another and never really getting their hands dirty.”

“I believe it takes 30 kaizens to understand, 60 to lead, and 120
to strategically integrate the process from front to back.”

“Being lean is not a competitive advantage. It’s not an end state.
The competitive advantage is lean momentum: Are you moving
faster than your competitor and faster than the market. That’s the
competitive advantage.”

Excerpts from ‘The Truth Behind Lean Success’

Leadership & Strategy First

Approach summary on a website recently visited,

Our approach to helping clients’ transform their businesses rests on recognizing three vectors for change:

1. Leadership.

2. Strategy.

3. Operational and process excellence.

Leadership is where it all starts – where executive leadership sets the vision and establishes the purpose and direction of the business.

Strategy is the means whereby leadership has identified how the business will establish a competitive position in the marketplace and serve its customers from a position of strategic advantage.

Operational effectiveness builds the system and process capabilities required to satisfy the corporate strategy.

A key difference in our approach is our recognition that direction is needed before speed and quality. There is no point in having excellent speed and quality operationally if it is achieved with the wrong products and services targeted to the wrong markets and customers.

Decision Making

Human beings are hard-wired for bad decision making in complex situations.
We hone in on answers before examining all the facts, and then seek evidence to confirm our answers.
We are adversely influenced by emotion, loyalties, and group think.
However, decision making can be improved when we encourage conflict and question our assumptions.
A devil’s advocate review should be built in early to the strategy process, and again at the key design stages and when near completion for a last chance to review the full strategy.

http://www.evolvingexcellence.com/blog/2010/03/listen-to-the-naysayers.html

Execution over Ideas

The big idea is LESS important than good execution.
Most think that the big, NEVER BEFORE TRIED, idea is more important but there are lots of companies that do very well with good execution of fairly mundane things.

The only thing that is in infinite supply is ideas; There are probably more than 25 million smart Americans in their basements at any one time trying to come up with the next bid idea (like, say, Google). They are generating a huge volume of new ideas; that tends to suggest, in economic terms, a surplus of ideas while the skills to implement them are in much shorter supply and, hence, the latter will generally attract a higher price.

The market for new ideas, such as it is, tends to put a low price on them (just try to sell your BIG IDEA at a business model stage and you will see: a) how hard it is to do that and b) just how little you will get for it). Obviously, a startup that combines some type of innovation with good execution is better off than one with just sound execution.

http://www.dramatispersonae.org/UOttawaHomecomingSpeech16September2006_bilingual4.htm

Start by needing less

To reduce the impact we're having on the environment, the most effective thing is use less at the start.
Reduce waste from the get go. Then there won't be as much to recycle later on.
The focus is what to do with the waste at the end;
Focus on eliminating the waste at the beginning, and there will be less to worry about at the end.

Start by using less material,
start by disrupting less,
start by using less space,
start by needing less.

Difference Between Lean and six sigma

Lean and Six Sigma are in no way related. Anyone who thinks they are would benefit from a deeper understanding of lean and some background on six sigma’s origins at Motorola.

The term ‘Lean Sigma’ is an attempt to provide the best of both worlds and rarely produces the cultural changes necessary to support & sustain lean transformation.

SIX SIGMA is a tool used to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability.

6sigma programs are generally long duration and focus heavily on statistical methods & measurement;

A six sigma process is one in the products manufactured are statistically expected to be free of defects (3.4 defects per million).

It has its applications;
however the people involved do not necessarily employ a deep understanding of the processes they are improving.

The result is often lack of ownership by the people doing the actual daily work, so changes do not stick.

The “find it - measure it - analyze it - fix it” to save dollars fast approach often leads to point improvements that may even be CONTRARY TO LEAN PRINCIPLES.
- some 6sigma solutions have actually led the organization away from lean and increased total cost

LEAN is a management system, a culture, and a philosophy, focused on providing value to the customer and removing waste.
It requires the engagement of all employments and the transformation of how we manage.
It is NOT just a set of tools, or about workforce reductions and eliminating people.
Lean can be a growth strategy to create new opportunities based on Customer Focus to only provide value.

Most problems people apply 6sigma to can be solved at the root cause using common sense by an empowered front line worker - eliminating the need for any 6sigma statistical analysis.

There may be points in a lean organization where 6sigma can be used.
Organizations should not focus on any one quality improvement tool but on the appropriate tools for each specific problem. Too many company managers embrace popular programs, like SixSigma, ignoring waste reduction and other variability reduction methods that can also provide
huge improvements. Within a targeted area, a blended application of tools will have a much greater impact than focusing on a few select projects.

Lean philosophy focuses on overall system effectiveness; 6sigma focuses on point improvements.

Lean thinking is a way of operating an organization; 6sigma a tool.

There is no Six Sigma in Lean; just like there is no hammer in ___________.
A carpenter may require the use of a hammer if he has the need to strike some thing, however there are many other tasks he is responsible for that require his thinking.