LEAN TRANSFORMATION WORKSHOP ACHIEVING CLARITY OF PURPOSE
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1 LEAN TRANSFORMATION WORKSHOP ACHIEVING CLARITY OF PURPOSE 1
2 AGENDA 1 2 What is a Transformation? Defining Your Transformation 3 4 Measuring it Recap and Call to Action 2
3 Level- Set Define Measure Take Action 1 Level Setting Transformation 3
4 Agile Lean Project Methodology Daily Scrum Kanban Burn Down CIP Process Process Management Gemba Walks Visual Management Continuous Improvement Problem Solving Methadology 4
5 Level- Set Define Measure Take Action Lean Transformations Fail 90% of the Time Everyone sees the external customer as the customer of their work. Everyone can describe how their work aligns to the North Star and how it affects the external customer. *reference source of 90% - WSJ 5
6 Level- Set Define Measure Take Action Jeff & Paige s Top 10 signs your transformation may be in trouble 10 - Lean is for you, not me Everyone sees the external customer as the customer of their work. Everyone can describe how their work aligns to the North Star and how it affects the external customer. 6
7 Level- Set Define Measure Take Action Jeff & Paige s Top 10 signs your transformation may be in trouble 10 - Lean is for you, not me 9 - Your visual management is an I love me board Everyone sees the external customer as the customer of their work. Everyone can describe how their work aligns to the North Star and how it affects the external customer. 7
8 Level- Set Define Measure Take Action Jeff & Paige s Top 10 signs your transformation may be in trouble 10 - Lean is for you, not me 9 - Your visual management is an I love me board 8 - We re already there 8
9 Level- Set Define Measure Take Action Jeff & Paige s Top 10 signs your transformation may be in trouble 10 - Lean is for you, not me 9 - Your visual management is an I love me board 8 - We re already there 7 Everybody is certified, we should be in good shape! Everyone sees the external customer as the customer of their work. Everyone can describe how their work aligns to the North Star and how it affects the external customer. 9
10 Level- Set Define Measure Take Action Jeff & Paige s Top 10 signs your transformation may be in trouble 10 - Lean is for you, not me 9 - Your visual management is an I love me board 8 - We re already there 7 Everybody is certified, we should be in good shape! 6 - We need a $3M savings by end of year (9 months out) 10
11 Level- Set Define Measure Take Action Jeff & Paige s Top 10 signs your transformation may be in trouble 10 - Lean is for you, not me 9 - Your visual management is an I love me board 8 - We re already there 7 Everybody is certified, we should be in good shape! 6 - We need a $3M savings by end of year (9 months out) 5- I ve told them what to do, I don t know why it isn t working! Everyone sees the external customer as the customer of their work. Everyone can describe how their work aligns to the North Star and how it affects the external customer. 11
12 Level- Set Define Measure Take Action Jeff & Paige s Top 10 signs your transformation may be in trouble 10 - Lean is for you, not me 9 - Your visual management is an I love me board 8 - We re already there 7 Everybody is certified, we should be in good shape! 6 - We need a $3M savings by end of year (9 months out) 5- I ve told them what to do, I don t know why it isn t working! 4- This process technology is going to solve all of our problems! Everyone sees the external customer as the customer of their work. Everyone can describe how their work aligns to the North Star and how it affects the external customer. 12
13 Level- Set Define Measure Take Action Jeff & Paige s Top 10 signs your transformation may be in trouble 10 - Lean is for you, not me 9 - Your visual management is an I love me board 8 - We re already there 7 Everybody is certified, we should be in good shape! 6 - We need a $3M savings by end of year (9 months out) 5- I ve told them what to do, I don t know why it isn t working! 4- This process technology is going to solve all of our problems! 3 - We have an expert to deliver the Lean transformation Everyone sees the external customer as the customer of their work. Everyone can describe how their work aligns to the North Star and how it affects the external customer. 13
14 Level- Set Define Measure Take Action Jeff & Paige s Top 10 signs your transformation may be in trouble 10 - Lean is for you, not me 9 - Your visual management is an I love me board 8 - We re already there 7 Everybody is certified, we should be in good shape! 6 - We need a $3M savings by end of year (9 months out) 5- I ve told them what to do, I don t know why it isn t working! 4- This process technology is going to solve all of our problems! 3 - We have an expert to deliver the Lean transformation Everyone sees the external 2 - Just do it, we don t need to take time to observe customer as the customer of their work. Everyone can describe how their work aligns to the North Star and how it affects the external customer. 14
15 Level- Set Define Measure Take Action Jeff & Paige s Top 10 signs your transformation may be in trouble 10 - Lean is for you, not me 9 - Your visual management is an I love me board 8 - We re already there 7 Everybody is certified, we should be in good shape! 6 - We need a $3M savings by end of year (9 months out) 5- I ve told them what to do, I don t know why it isn t working! 4- This process technology is going to solve all of our problems! 3 - We have an expert to deliver the Lean transformation Everyone sees the external 2 - Just do it, we don t need to take time to observe customer as the customer of their work. Everyone can 1 Wow, this transformation is creating disruptions, we need to slow describe how their work down! aligns to the North Star and how it affects the external customer. 15
16 The measurement system is tied to the What Alignment with the top Understanding what it takes Measure Shared Perspective Shared Skills, Behaviors & Beliefs Gauging Progress 16
17 How do you define what is a Lean Environment? 1 Level- Set Define Measure Take Action Local Process Performance Problem Solving & Continuous Improvement Value Chain Alignment 17
18 Level- Set Define Measure Take Action 2 Defining Your Transformation 18
19 Critical Components Level- Set Define Measure Take Action MANAGEMENT SYSTEM PROCESS SHARED MINDSET 19
20 What type of Transformation are you driving? GRASS ROOT Level- Set Define Measure Take Action Targets managers of pre- determined areas. Provides local goodness Addresses pain points that require immediate attention. Aim: deliver end to end (E2E) focus. Driven by Middle Management VALUE CHAIN ORGANIZATION WIDE TRANSFORMATION Focus on the external customer to provide alignment between work and the organization s North Star. Promoted by Executive Talking the talk, but not walking the walk. This will maintain the same results and problems you have today. STATUS QUO 20
21 Why do we need to know? Alignment with the top Understanding what it takes Measure Shared Perspective Shared Skills, Behaviors & Beliefs Gauging Progress 21
22 Transformation Strategy Pros & Cons Level- Set Define Measure Take Action Typically Seen Pros Cons GRASS ROOT» Focus on 8 forms of waste» Isolated 5 S events*» Team/Department level improvements» Local learning» Local improvements» Process design & results awareness» Vulnerable to flavor of the month» Leadership not typically involved/committed» Unsustainable VALUE CHAIN» Involves multiple departments» Focus on customer back outcomes» Opt- In Lean adoption» Improvements measured & seen» Movement from function to value flow» Increased awareness to how value is created» Inconsistent management models» Still may not have leadership involved» Higher effort» No system to sustain ORGANIZATION (WIDE)» Top of house forcing function» Maniacal focus on the customer» Problem Solving at all levels» Everyone knows the direction» Everyone knows the priority» Everyone knows the path» Everyone knows the destination» Can lead to over- certification» Leadership shift can thwart the movement» Patience & commitment is required STATUS QUO» LT may use the verbiage, Lean, Agile, etc. for the sexy word complex» Same problems» Same results» Same problems» Same results *5S Event Lean Tool Used to clean up and organize work spaces; both virtual and physical
23 Defining Exercise Level- Set Define Measure Take Action What is your current approach & why? Direction Training Management Activities Improvements Change Management Communications Recognition [Discuss with your tables] 23
24 What type of transformation are you part of? Level- Set Define Measure Take Action Typically Seen Pros Cons GRASS ROOT» Focus on 8 forms of waste» Isolated 5 S events*» Team/Department level improvements» Local learning» Local improvements» Process design & results awareness» Vulnerable to flavor of the month» Leadership not typically involved/committed» Unsustainable VALUE CHAIN» Involves multiple departments» Focus on customer back outcomes» Opt- In Lean adoption» Improvements measured & seen» Movement from function to value flow» Increased awareness to how value is created» Inconsistent management models» Still may not have leadership involved» Higher effort» No system to sustain ORGANIZATION (WIDE)» Top of house forcing function» Maniacal focus on the customer» Problem Solving at all levels» Everyone knows the direction» Everyone knows the priority» Everyone knows the path» Everyone knows the destination» Can lead to over- certification» Leadership shift can thwart the movement» Patience & commitment is required STATUS QUO» LT may use the verbiage, Lean, Agile, etc. for the sexy word complex» Same problems» Same results» Same problems» Same results *5S Event Lean Tool Used to clean up and organize work spaces; both virtual and physical
25 Level- Set Define Measure Take Action 3 MEASUREMENT 25
26 How do you decide what to measure? Level- Set Define Measure Take Action Define what will be different once the transformation happens Agree on the outcome Establish what needs to be true to meet the outcome Create your scorecard 26
27 Define the Outcomes This is what we optimize and focus on TARGET OUTCOME (TRANSFORMATION) = Y = f(x1,x2,..,..,.. Xu) Things that get us to the outcome 27
28 The MEASUREMENT APPROACH reinforces alignment Level- Set Define Measure Take Action DEFINE THE OUTCOME SET EXPECTATIONS DETERMINE IF THE APPROACH FITS CREATE CLEAR MEASUREMENTS 28
29 Level- Set Define Measure Take Action MEASUREMENT EXCERCISE Choose one transformation Create a scorecard Share back 29
30 How do you decide what to measure? Level- Set Define Measure Take Action Define what will be different once the transformation happens Agree on the outcome Establish what needs to be true to meet the outcome Create your scorecard 30
31 Transformation is a journey, measure it well Level- Set Define Measure Take Action MANAGEMENT SYSTEM PROCESS SHARED MINDSET 31
32 4 RECAP AND CALL TO ACTION 32
33 ProTec Call to Action Level- Set Define Measure Take Action Take this back and do this exercise it with your main internal customer and stakeholders In 2-4 weeks: Check in with your Class Team In 4-6 weeks check in with us: Conference call for the class to share learnings One- on- ones 33
34 We employ people that LOVE what they do to create VALUE that customers will LOVE, while transforming the organization to ensure your Associates LOVE to come to work. 34
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