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The Dynamics of Lean Implementation and Transformation
Knowing that lean makes so much sense, and that the fundamental principles of lean are so intuitively the right thing to do, why does lean work in some organizations and not in others? The difference is in cultural acceptance and the ability of an organization to accept change, not just lean change, but change in general.
While lean may seem to be a radical shift, the dynamics of successful lean transformation in most organizations rely on continuous small pushes on the flywheel of change, creating momentum and a cultural shift. To begin, however, a company often needs to employ organizational change and development tools to overcome barriers and resistance to change. Once breakthrough velocity occurs, the organization becomes open to using lean methods that support continuous improvement.
Wiremold, one company profiled by James Womack and Daniel Jones in the book "Lean Thinking," has been successful at implementing lean because its organization is one in which lean can thrive. It is an innovative and adaptive organization that continuously challenges its people to improve. People there are open to change, and have created an environment in which change is not only accepted, but in which resistance to change is considered a performance problem. The hiring process looks at the technical qualifications of individuals, but also at whether or not they will fit the team, whether the job is in management, the shop floor or the cleaning staff.
The company did a lot to train its leaders in organizational development principles, including effective communication, teaming, values training, and diversity training, among other tools and methods. Major decisions are made as a consensus with all of the organization's departments represented. At times it seemed to some like it took an inordinate amount of time to form consensus, but once achieved there was no undercutting the decisions.
Wiremold, and companies like it, showed that sustainable results are achieved when the culture of an organization accepts the technical changes being implemented. Failure has little to do with an organization's technical understanding of lean tools. It has everything to do with an organization's culture and its ability to recognize that, without addressing the culture, lean technical solutions won't work.
Toyota teaches a cultural change model (Figure 1) that considers an organization's willingness to accept change. Toyota says 2-4% of every organization is made up of innovative, adaptive people who are willing to drive and accept change. Another 2-4% are anchor-draggers who actively resist and impede change. The remainder of the organization is made up of fence-sitters waiting to see who will prevail.
Toyota suggests that, while traditional managers spend their efforts focusing on the anchor-draggers, they should be spending time with the early adapters, providing cover and support. The organization's focus is on positive reinforcement, which promotes a forward shift in the fence-sitters.
The same dynamic seems to operate in industries -- 2-4% of organizations in an industry are early adaptive and innovative. These organizations are able to accept the Japanese approach to lean transformation. Lean is accepted at face value because it fits their organizations. In adaptive, innovative organizations there is very little push-back from leadership or the workforce when it comes to implementing and sustaining improvements generated by lean activities. These innovative and adaptive organizations are the ones whose successes are documented in the lean books.
One approach to lean transformation is to begin by assessing an organization's willingness to change, often with the help of a consultant. From the assessment, a lean implementation plan is developed that addresses the technical elements of lean implementation, and organizational development tools are applied to improve teamwork and communication.
The approach is data-intensive on the front end, laying a foundation of knowledge, building consensus and promoting data-based decisions. New team structures promote communication and engagement. Lean experts are developed by teaching people the "how to" methods of lean and the theories behind them, and by working hands-on with them throughout the process. Training and practical application of organizational change and development tools help to improve their so-called "soft" skills.
The company's leaders develop the vision, often drawing on concepts from sources like Stephen Covey's "The 7 Habits of Highly Effective People," and Jim Collin's "Good to Great." They begin by using long-range planning tools. In strategy deployment sessions, leaders develop 3-5 year breakthrough objectives and annual improvement priorities.
Organizational development (OD) tools such as DISC, Meyers Briggs, PA/PT, and values systems are used for training in diversification, situational leadership, and effective communications. The JoHari Window and a myriad of other OD tools and concepts can break down barriers to change and help convert the organizational culture to one in which lean can not only survive, but thrive. All the while, teams are proceeding with lean implementation and transformation.
As Figure 2 shows, the change acceleration curve is somewhat flat in the beginning. As the organization's culture responds to training and achieving measurable results, the slope of change becomes steeper and its velocity increases. The idea is to train and supplement the organization until the pressure of the old system is overcome by pressure from the new one.
With skillful use of OD methods, often with the help of a consultant, cultural development provides the foundation for lean transformation and sustainability. Organizations using this process have found that as the culture changes, the rate of lean implementation accelerates.
In his book "Good to Great," Jim Collins talks about the flywheel effect. He says great organizations don't become that way overnight through radical change. They become that way because continuous small pushes on their flywheels create a breakthrough velocity that sustains growth. At the point where the momentum of change reaches breakthrough velocity, the organization moves forward along its lean journey with little or no support required from a consulting organization.
This approach to lean has been used by MainStream Consulting for two years at Hill Air Force Base, throughout the various repair and overhaul divisions of the Air Force Logistics Center Maintenance Directorate. View charts illustrating Hill AFB's lean transformation.
Tom Cluley is Director of Operations and a Partner at MainStream Consulting. Tom's experience in lean came under the tutelage of Japanese consultants during his 8 years as a director at the Wiremold organization, and later as a consultant at companies like Maytag, Michelin Tire, American Racing, and Kaiser Aluminum. The company's web address is www.mainstreamlean.com.
Copyright © 2010 Society of Manufacturing Engineers
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| April 8, 2005 Issue: |
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