LEAN CULTURE PRESENTED BY KRISTI ROWLAND, CITY OF RENTON SEPTEMBER 14, 2017

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1 LEAN CULTURE PRESENTED BY KRISTI ROWLAND, CITY OF RENTON SEPTEMBER 14, 2017 WFOA 62 nd Annual Conference Three Rivers Convention Center September 12-15, 2017 Slide 1

2 OBJECTIVES FOR THIS HOUR Introductions to: 1. What is Lean Culture? 2. Why does it matter? 3. How to get there Slide 2

3 WHAT IS LEAN CULTURE? Lean Culture refers to the combination of defining customer value, aligning around a common purpose, striving for perfection while at the same time respecting and developing employees. The idea is that there is more to process improvement than using a set of tools and concepts. Also, the people who do the work should be the ones who fix the processes. Lean Culture results when in the quest to provide customer value, the leadership supports and promotes the building of the problem solving muscle of the workforce. Slide 3

4 WHAT I LOVE ABOUT LEAN CULTURE Respect Compassion Humility Slide 4

5 VIDEO Inno-Versity Presents: Greatness by David Marquet Slide 5

6 EMBRACING LEAN IS (USUALLY) A CHANGE IN CULTURE Command and Control Finding/Assigning Blame We ve always done it that way Empowerment Respect/Learning Enthusiastic experimentation Slide 6

7 HOW DOES YOUR ORGANIZATION RESPOND TO CHANGE RIGHT NOW? Slide 7

8 MYTH: MOST CHANGE IS LIKELY TO FAIL 70% of change efforts fail From the article Stop Using the Excuse Organizational Change Is Hard, By Nick Tasler, HBR 7/19/2017 Slide 8

9 Management Leadership Engaged Workforce Successful Change Slide 9

10 THE LEADERS JOB? SET THE VISION Clarity of purpose Inspire Support Let s go there because We can do it! I m in this with you. Slide 10

11 THE MANAGERS JOB? MAKE IT HAPPEN Barriers to Empowerment Bosses discourage actions aimed at implementing the new vision Formal structures make it difficult to act A lack of needed skills undermines action Personnel and information systems make it difficult to act From: Leading Change by John Cotter Slide 11

12 THE MANAGERS JOB? ENGAGE! Empowering people to effect change Communicate the vision, often Align structure to be compatible with the vision Provide training and more training Align IT and HR with the vision Confront supervisors who undermine the vision From: Leading Change by John Cotter Slide 12

13 WHY BOTHER? Slide 13

14 CITY WORKERS IN THE U.S.THAT ARE UNHAPPY OR DISENGAGED WITH THEIR JOBS: 71% GALLUP May 16, 2017 Slide 14

15 I DON T CARE IF PEOPLE ARE HAPPY IF THEY ARE GETTING THE WORK DONE. Slide 15

16 I DON T CARE IF PEOPLE ARE HAPPY IF THEY ARE GETTING THE WORK DONE. A recent ADP study put the cost at $2,246 per disengaged employee per year. Let s do the math 650 FTE S X 71% 462 DISENGAGED EMPLOYEES $2,246/year x 462 $1,037,652/year From October 2013 article How Much Disengaged Employees Really Cost You James O'Brien, PhD; Contributor, Amex OPEN Forum Slide 16

17 THIS IS WHERE LEAN COMES IN Slide 17

18 GO AND SEE ENGAGE! Artifacts Behavior Environment Data Slide 18

19 WHY DOES YOUR CULTURE MATTER? Created by Stanley N. Herman, TRW Systems Group 1970 Slide 19

20 HOW TO UNCOVER YOUR COVERT PROCESSES Marshak s Covert Process Diagnostic Formula P = Patterns What sequences are evident? What do our relationships look like? What is repeated? C = Context Who are the players? What s our history? What is our pecking order? What are our procedures? Where are we in the system(s)? E = Emphases What is pursued? Loud? In-depth? Proclaimed? Pointed out? Prominent? O = Omissions What is played down? Avoided? Glossed over? Denied? Ignored? Soft? Covert Process Clue = F[(P)(C) x (E/O) *From Covert Processes at Work, by Robert J. Marshak Slide 20

21 HOW CAN I POSSIBLY.?! Create safety and trust! Extending trust and creating safety gives autonomy which, in turn, creates more trust. Seek progress, not perfection Measure progress, clarify outcomes without judgement (and celebrate learning!) Assume people are trying their best Make your support visible and obvious, show compassion and humble curiosity Look in the mirror Be self aware and seek feedback to explore your blind spots (Don t get defensive! Honest feedback is a gift!) Be consistent with your role Communicate communicate communicate; manage expectations constantly *From Covert Processes at Work, by Robert J. Marshak Slide 21

22 ASK WHY SHOW RESPECT Four types of inquiry Process-oriented Confrontational Diagnostic Humble Slide 22

23 ASK WHY SHOW RESPECT It takes some discipline and practice to access one s ignorance, to stay focused on the other person. If we learn to do this, the positive consequences will be: Better conversations Better relationships *From Humble Inquiry, by Edgar H Schein Slide 23

24 HUMAN RESPONSE TO CHANGE A critical factor affecting our perception of change as positive or negative is the degree of control we exercise over our environment. *From Managing at the Speed of Change, by Daryl R. Conner Slide 24

25 HUMAN RESPONSE TO CHANGE (D. CONNOR) People have a strong need for control This need can be met by dictating or anticipating their future Specific expectations are established based on what can be dictated or anticipated When reality matches expectation, a sense of control is achieved and equilibrium is reached When reality does NOT match expectations, the feeling of control is lost and people must adjust to the change they were unprepared to face. *From Managing at the Speed of Change, by Daryl R. Conner Slide 25

26 FAILING TO EMPOWER = NEGATIVE RESPONSE TO CHANGE v. *From Managing at the Speed of Change, by Daryl R. Conner Slide 26

27 EMPOWERING THROUGH CHANGE = POSITIVE RESPONSE v. *From Managing at the Speed of Change, by Daryl R. Conner Slide 27

28 SO WHY DOES THIS MATTER? THIS ISN T EASY! Slide 28

29 WHAT WE DO AT RENTON Weekly discussion group (open to all) Book clubs (executive and staff) Management discussion group Coaching, mentoring, guidance Facilitation Resource Library Training GPC Slide 29

30 WHO I LEARN (AND BORROW) FROM: Many thanks to: Larisa Benson, Government Performance Consortium Wendy Fraser, UW-Tacoma Megan Gregor, Renton Jennine Griffo, SAO LGPC Deb Needham, Renton Brian Willet, Vancouver Lean Six Sigma Black Belt Classmates at UWT Government Performance Consortium UW Tacoma Keybank Professional Development Center staff SAO Local Government Performance Center staff WSDOT Lean Program Slide 30

31 RESOURCES: Recommended Books: Humble Inquiry Edgar H. Schein Covert Processes at Work Robert J. Marshak Leading Change John P. Cotter Managing at the Speed of Change Daryl R. Conner Building the FIT Organization Dan Markowitz Toyota Kata Michael Rother Extreme Government Makeover Ken Miller Websites I use: SAO Local Government Performance Center Lean Enterprise Institute Government Performance Consortium hosted by MRSC Topics/Management/Performance-Management/Government- Performance-Consortium.aspx Minnesota Office of Continuous Improvement You can reach me at: KRowlandRentonwa.gov Slide 31