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Jim Womack and John Shook are constantly reminding us of the importance of the balance between “Process”  (Technical) and “People” (Social)  to achieve our organisation’s “Purpose” as we implement Lean in our companies. John Shook has told us that in the eighties we generally had too much weight on the social side of the scale, and in the nineties and beyond the balance has swung to the opposite side with the emphasis now on the technical (or tools) side of the balance.

Also we hear all the time that Lean is more than “just” a set of tools. This is true, but if we are serious about implementing Lean in our organisations, how do we progress beyond the tools? Every organisation implementing Lean will need to go through the “tools” phase at some point in the process, but what should a Lean organisation look like when we have moved beyond the tools phase?

The important thing to remember during the early phase of a Lean implementation is to communicate the “real” reason for using Lean and why the tools are important. When all is said and done, the primary reason for every one of the Lean tools is to create robust systems for the exposure of waste and errors in realtime, and to link those systems to a widespread use of Root Cause Analysis and PDCA by shopfloor teams and management. In this way Lean will eventually transition from tools to a deeper cultural way of thinking with an emphasis on both the Social (people) and Technical (process) aspects of business improvement.

included courtesy of John Shook Lean Enterprise Institute 2009

So what do Womack and Shook mean by achieving a balance between “Process” and “People”? To give us a better understanding of how we can achieve balance, let’s explore these 2 important aspects for creating a Lean culture, by expanding on some thoughts from John Shook.

Process focus

• For every change we implement, make sure we consider how our whole process delivers value to our customers from product design to disposal / recycling. This will require a widespread use of Value Stream Mapping.
• Have a total focus on getting everyone involved with creating, using and improving well defined processes and systems that implicitly expose problems. These processes will be based on the pervasive use of visual systems and lead indicators.
• Make a habit of understanding and using PDCA at every level in the business in real time. This means having an unfaltering focus on finding and destroying root causes at every opportunity.
• Ensure decision making focuses on simultaneously improving customer service levels, reducing costs, improving quality and shortening leadtimes while increasing our capability to deliver variety for our customers.
• Use the reduction of Inventory and Work in Process (WIP) to expose and fix weaknesses in our processes. Like hard training for an athlete we will build strength by constantly testing the limits of our processes as we work on ways to get value to flow faster to our customers.
• Use the standardisation of processes as a basis for both “Systems” Kaizen and “Point” Kaizen. Improvement will be most effective when we can engage people to improve an already standardised process. How can we be sure we have improved the process using PDCA unless we are able to compare the “new” standard with the “old” standard for that process?
• Ensure we have a widespread use of metrics that are deployed in a way that encourages people to speak up about problems.

People focus

• Lean is centred on engaging and supporting people in the process to focus on improving their processes.
• If we are serious about creating an environment where people can solve their own problems and improve their own processes we will also need to be serious about developing people capability at all levels of our business.
• We must be prepared to lead by example with Leader Standard Work built into our daily schedules and routines.
• We cannot expect our people to be engaged in our improvement ethos unless we are all having regular (at least daily) visits to the “Gemba” to promote discussion around the important things happening in the process.
• Sustainable continuous improvement relies on embracing a culture of enquiry at all levels of the organisation and encouraging people to continually challenge the status quo. We can work towards a “Learning Organisation” if people in the business are actively encouraged to safely experiment with ways to improve processes.
• In the Lean culture respect for people is fundamental and often misunderstood. A good summary of what is needed here is - “Follow me and let’s work it out together”.  We should be using all the Lean tools as an opportunity to engage operators in the implementation of their solutions to problems they are experiencing.
• Every employee will be involved in improving process using a standard and structured problem solving process that seeks out solutions to root causes.
• Taking the time to constantly complete the PDCA cycle in everything we do. We can often forget to finish the cycle with the “Check” and the “Act”.  These final two steps in PDCA are critical as they enable us to standardise the change and create a platform for the next improvement.
• Using relevant visual performance measures for every team combined with some level of problem resolution process to provide clarity around giving people the responsibility for the health of their processes. These measures will provide an important opportunity to interact with and support team members to make the “right” improvements.
• We will create a more sustainable business model if our role as managers and team leaders is seen as more the role of “Steward” for the organisation with the operator as the “customer”. In this way our job is more about being a coach, offering support and facilitation for change.

Put simply, 5S is method of creating, maintaining and improving a clean and orderly workplace that exposes waste and errors.  5S helps identify unplanned levels of inventory either as tools, materials, work in progress or finished goods.  Often we can use simple visual processes to help us identify these problems quickly through systems that provide instruction, information and feedback on how well the operational process is working.  5S can be applied to any physical process in the factory and in the office.

5S is much more than just “housekeeping”.  Housekeeping and an organised workplace are the results of 5S, but the real purpose of 5S is to make problems more evident more quickly.

5S is a great place to start on our Lean initiative because it promotes an action oriented approach to change and allows people at all levels in the business to get involved and provide input with improving their workplace.

Here are some suggestions for implementing 5S:

Create a sense of urgency around our 5S activities. Let’s understand we are implementing 5S in our business and why we need to do this now and why we shouldn’t leave it for 12 months.  If 5S does not improve our operation and fix people’s frustrations why would we use it.

Have the senior management team develop a vision for how our business will be different once 5S has been implemented across the organisation.  Take the time to put some thought into how it will affect our Value Streams and the expected operational benefits that will result.

Implement in a pilot area first and then develop and execute the rollout plan for the rest of the organisation.  The rollout plan should include regular and achievable milestones and targets that are visible and unambiguous.  Each area should have visual 5S measures displayed in the work area, and celebrate the achievement of their targets at least every few months.

Make sure 5S is seen in the context of the whole Lean initiative and not as a stand alone tool, and make sure people know why we are doing 5S.

Make sure that our 5S activities are “successful”.  That means making sure that people actually solve some of their problems with the application of 5S.  Think about ways to set people up for success.

Don’t just implement 5S because it is easy - implement 5S to engage people in improving the flow of work and eliminating waste.  If you cannot clearly see how 5S is going to improve the operation, chose another tool that will drive real improvement first.

Plan for training and coaching of staff - we should not expect people to understand 5S without relevant training.  Think about ways to standardise the 5S training so that everyone receives the same information.  The training can be structured into the kaizen blitz’s that are planned for each area.

Insist that management lead by example by getting involved with 5S activities on the floor and implementing 5S in their own work areas.  Every time a manager condones or ignores a 5S issue that should be addressed we are eroding the whole program because it shows that we are not serious.  What is not said is often more powerful that what is said.  Build 5S reviews into management Gemba walks.

Build 5S standard work into our processes and daily activities at all levels in the business.  Don’t allow 5S to be something that we do only when we have spare time, or on a Friday afternoon.  We don’t approach Health and Safety this way.

Through the involvement of the team members in the work area, clearly define the expected 5S standards in all work areas and use visual standards to display and monitor these expectations.

Take the time to have the team members visit good examples of 5S in other parts of your organisation or outside the company.

Use structured problem solving techniques with the teams to solve specific 5S issues.  Use of a standard process will accelerate the uptake of the tools as people get more practice with the techniques.

Ensure that all work instructions reflect the 5S requirements for all activities and tasks, particularly for putting away materials, tools and product.

Take every opportunity to emphasise 5S by including it in all job descriptions and every meeting.  If we apply the same principles to the implementation of 5S as we have to Health and Safety then we are more likely to succeed.

Build 5S expectations into our performance measures, but ensure that audits and measures are designed to help people understand why we a doing 5S.  Sustainable results will not be realised if people are just finding ways to improve audit scores without fully understanding the real objectives of 5S.

Have the Leadership Team review progress on a regular basis and continue to set new targets.  As the new behaviours become habits, develop ways to continuously improve the 5S culture.  Consider rewarding and recognising teams for their level of improvement or innovative solutions to 5S issues.

Be innovative about how 5S can be applied to other processes in other parts of the organisation.  Every organisational process will benefit from 5S thinking.

For successful Lean leadership we need to separate responsibility and authority. This seems strange because we normally think that authority and responsibility are linked together. Could this be another Lean thinking paradox!

The focus in a Lean organisation has shifted from “who has the authority” to “what is the right thing to do”. This is achieved by getting each person to take initiative to actually solve problems that improve his or her job, by placing individual responsibility at the lowest possible level where the work is actually done. and ensuring that every person’s job is aligned with providing value for the customer that ultimately leads to prosperity for the company.

Our job as a Lean leader is to help expose problems and then make sure people have the skills and the tools to solve these problems. It is more a philosophy of “let’s figure this out together” and creating an environment where learning from mistakes is an accepted part of our continuous improvement process.

To help expose problems we must spend more time in the process asking why, and then focus on giving people the responsibility and ownership for developing and implementing the solution. Lean leaders avoid relying on authority, instead leading by influence and example, as if they have no authority.

Continuing our theme of better ways to lead organisational change, how can we ensure that our Lean initiative is not just the introduction of a set of “tools”?  Tools on their own will not translate into a sustainable Lean culture.  A Lean culture will require at least a combination of effective leadership and tools.  If the leadership in our organisation is hitting the mark this will result in high levels of engagement. and improve our chance of successfully achieving an enduring Lean culture.

Toyota prepare their leadership people for up to 2 years prior to establishing a new plant, and even then they say it still takes 3 to 5 years to fully embed Lean into the culture of the organisation.  The leadership style that is commonly used in organisations like Toyota is sometimes known as “servant leadership” or “stewardship”.  This topic has been well documented in the literature and the following notes on servant leadership are sourced partly from an excellent paper by Paul T. P. Wong, 2003.

Servant leadership is typically characterised by the desire to serve and empower followers, and supporting the belief that the best way to achieve organisational goals is through developing the potential of workers. The primary aim of servant leadership is “service to others” (Greenleaf, 1977).  The idea of leaders as servants has gained increasing acceptance in the leadership and organisational literature e.g., (Covey, 1994; Farling, Stone, & Winston, 1999; Laub, 2003; Russell & Stone, 2002; Wheatley, 1994), and there is consensus among modern management theorists (Avolio, 1999; Bennis, 1990; Hammer& Champy, 1993; Rinzler & Ray, 1993; Senge, 1990) that autocratic leadership needs to be replaced by leadership that empowers workers.  The advantages of servant leadership over autocratic leadership have also been well documented in the literature (Farling, Stone, & Winston, 1999; Laub, 2003; Page & Wong, 2000; Russell & Stone, 2002; Sendjaya & Sarros, 2002).

The key differences between servant leaders and more autocratic styles can be summarised as follows:

Motives. A servant leader uses their power to develop followers and growing the company through the development of the full potential of the workforce, rather than using their power to control and exploit employees.

Preferences. Servant leaders prefer inspirational and transformational power, because they seek to influence and transform followers, rather than using positional, political and coercive powers to control subordinates.

Outcome. If we define power as the ability to influence followers, then servant leadership is more effective, because “the arm of control is short, while the reach of influence has no limits”.

Orientation. Servant leaders are sensitive to individual and situational needs, because they exist to serve others; therefore, they are relation-oriented and situational, rather than being only concerned about their own authority and power.

Skill level. Servant leadership requires a higher level of leadership ability and skills, because it takes more interpersonal skills and positive inner qualities to inspire and influence workers.  On the other hand, authoritarian leaders only need obedience and coercive power to enforce compliance and conformity from their subordinates.

Attitude to vulnerability. Servant leaders are willing to risk making themselves vulnerable by trusting and empowering others, rather than being afraid of vulnerability.

Attitude to humility. Servant leaders view themselves as servants and stewards, and voluntarily humble themselves in order to serve others, rather than blaming others for failure and claiming credit for success.

The various differences listed above are based on range of literature (e.g., Lewin, 1951; Fleishman & Harris, 1962, Likert, 1961; McMahon, 1976; Stogdill & Coons, 1957; Yukl, 2002) that compares task-oriented, directive, and autocratic leadership and people-oriented, relational and empowering types of leadership.

Clearly all this means that we need to establish high levels of trust to allow open and honest feedback in both directions, this will then support a culture of exposing and fixing problems, as early as possible.  The level of trust required to make this happen is not something that will happen quickly, and it will need total patience and commitment from leadership giving people the authority to both run processes and fix them. Also we will need a leadership style that is totally focused on growing and developing people over a period of time, with the objective of building a “culture of enquiry” based on repetitive practice and learning through “doing”.

The Toyota culture has a strong foundation of respect for people which is critical for the development of a  high trust environment.  This makes total sense as it will be fundamental to achieving open dialogue and high levels of trust.  In Toyota this means that leaders are expected to help people solve their own problems, rather than solving the problem for them.  In this way Toyota promotes a leadership philosophy of “follow me - let’s figure this out together”.  It is considered disrespectful to solve a problem for an employee because when we do that we are robbing that person of the opportunity to “learn”.  In this way the “learning organisation” is built on a culture that relies on high levels of engagement and constantly challenging the established way using experimentation and a robust root cause problem solving process.

So how do we achieve all this?  Well here are a few points to consider in our quest to move our organisations towards this style of leadership:

• Listen to what is being said and not said - take the time to really listen.  Gemba walks are a great way to build this into leader standard work.  Please see a previous blog article for a more detailed exploration.

• Empower others by giving them opportunities to lead - there is more to this than meets the eye.  Does the environment in our organisation support this?  Have we provided training for our front line leaders covering both the Lean tools but also facilitation and leadership skills?  Do our front line leaders have what they need (including good data, skills, tools and our support) to engage their teams in structured problem solving?

• Attitude is contagious, keep it positive.  We cannot expect others to be positive if we are negative.  If we take interest in our people’s achievements they will respond positively.  If we show interest in certain aspects of the operation that our teams can influence, our people will respond by buying-in to this focused attention.

• Give and seek honest feedback because it builds trust - without it we will not achieve a high trust culture.

• Escalate issues to solve problems quickly - this will not happen by itself - we will need good visual management systems that ensure problems are exposed effortlessly and seen as “good” opportunities for learning.

• Resolve to get the best results - never be satisfied with mediocrity.  Constantly push for better.  people feel good when they are learning, not just when they are winning.

• Serve because it gives us the ability to influence - this is the paradox and the real focus of this article.  Servant leadership is the most powerful leadership style because it should result in duplication throughout the organisation.

• Lead by example - demonstrate a daily focus on increasing customer value and waste elimination.  Speak the language, know the tools and practice the techniques.

• Be prepared to invest for the long term - it’s OK to implement a process that is less than perfect and use the tools to improve it over time.

Jim Womack is constantly talking about how we are all leaders in our organisations, and that it is not good enough to simply say “this will never work here because we don’t have the right leadership”.  In lean organisations everyone is involved with the improvements, even if it is only improving the flow and eliminating waste in the small piece of the value stream that we are familiar with.

In their book The Hitchhikers Guide to Lean, Jamie Flinchbaugh and Andy Carlino offer some words of wisdom for Leaders in organisations embarking on Lean.  Here is a short extract from their book.

Why is leadership such an important topic in Lean transformation? Because Lean is not something you engineer. When done right, Lean changes the way you think, talk, see, act, and react. It’s a battle for employee minds and hearts, and such battles require leadership.  Toyota told Harvard Business Review this about its success: “Lean helped us focus our reflection on how we can get closer to True North.”

Perfection isn’t a goal to conquer; it’s a compass indicating in what direction to advance. Daily pursuit toward perfection is vital to successful Lean transformation. A vision of True North, and a clear view of current reality, creates a tension in the organization that, in turn, feeds creativity. We usually relieve that tension in one of two ways. Option one is we lower the vision: “We don’t have to be that good—no one else is.” Option two is to artificially raise our perception of current reality: “You know, we really are pretty good.” But neither of these helps us move forward as much as a clear view of current reality, and a vision of the ideal state.

Flinchbaugh and Carlino continue their discussion with five leadership moves, or actions, a leader can perform to provide leadership on the Lean journey:

Leadership Move 1: Leaders Must Be Teachers
In a Lean organization, learning is critical, and line management’s direct responsibility. Lean is based on how people think; simply defined, Lean is shared thinking. Management and employees need common philosophy, ideas, and principles. Leaders can’t just put workers into situations, and hope they learn the right things. They should take responsibility for the message, combining real-life experience with direct coaching. An organization’s principles should become guideposts to help people make tough decisions. Studies indicate almost half of large U.S. corporations feature “respect” and “integrity” as corporate values. These are effective principles, but they don’t help employees make tough decisions.

Leadership Move 2: Build Tension, Not Stress
A Lean leader needs to be the source of energy that compels the organization toward action. Too often, leaders create stress instead of tension. Workers feel stress when conditions are nearly impossible, and the path forward is shrouded in fog. By contrast, tension is experienced when they sense a gap between current reality and the ideal state. With resources and support from leadership, employees see a clear path to move forward on. Unproductive pushing leads to stress; productive pushing paves the way for tension. Three elements turn stress into tension: a vision of the ideal state; a clear grasp and hatred of current reality; and the right skills, capability, and actions to close the gap between the two. A leader must provide all three elements, or productive tension won’t be created. Every person, function, and process should have an ideal state. Ideal states are not documents, but ongoing dialogues that take place as leaders teach, coach, and encourage workers every day. To provide a compass for the journey, participants in Lean transformation must have a clear sense of where they are currently, as well the ideal state to which they are heading. They must understand their relevance to the big picture and long-term success. Some say it’s difficult to develop a hatred for the current state, but it’s not really that hard. Take a group of employees on a waste-walk and focus on what frustrates them, and they’ll see opportunities. The most financially successful companies are filled with people who are disgusted by the current condition, but believe they have no control over it.

This brings to light the third element of creating tension: presenting a clear path forward. After creating pictures of ideal and current states, leaders can’t passively hope employees will act. To drive change, a leader must give people the right skills and knowledge to close the gap, and make tough decisions about things such as organizational structure. If leaders provide no direction, employees will look at the chasm to be crossed, then at each other to see who will act. Everyone has his or her own ideas about how to cross the chasm, but no one will make that leap alone. A leader must pull people together (through consensus or dictatorship), and provide a way to cross.

Leadership Move 3: Eliminate Fear and Comfort
Lean culture requires action, experimentation, and new thinking—all of which involves risk. Many organizations, even innovators known as risk-takers, are risk-averse internally. Leaders need to eliminate fear of innovation and comfort in the status quo. Learning occurs when employees leave the comfort zone that’s been providing them with safe haven from changes they think are out of their control. A Lean leader must eliminate the comfort zone, and direct employees to the learning zone, changing the conditions and rules under which they operate. This does not mean chaos and unorganized change. Stepping out of the comfort zone should be purposeful, continuous, and multidimensional, setting clear goals and providing mechanisms. It’s not about setting higher targets; it’s about requiring individuals and organizations to purposefully experiment. If a leader asks a worker every day about experiments he or she has performed toward improvement, the worker eventually has to conduct some experiments to answer the question.

In addition to eliminating the comfort zone, the Lean leader must eliminate fear. When employees step too far outside their comfort zones, they enter fear zones. To eliminate that, leaders should provide safety in three distinct forms: physical, emotional, and professional. Workers need to feel safe before they’ll try new things. Employees who suggest new ideas in staff meetings and are ridiculed will think twice before speaking out again. Lean leaders have to squelch criticism and provide emotional safety. Attacks often come in subtle, passive-aggressive forms, but the leader must address them head-on, or employees will get the message that failure must be avoided—even at the expense of not improving. While workers who repeat the same mistakes should be disciplined, those who take risks, and learn, should be rewarded.

A Lean leader can move employees out of comfort zones by modeling proper behavior. Many leaders model “knower” instead of “learner” behavior, creating the impression they know everything. “Knower” leaders hide gaps in their knowledge, which they consider to be signs of weakness. But workers have greater respect for leaders with integrity, who know their limitations, and are willing to become vulnerable. “Learner” leaders acknowledge failures and publicly learn from them. Building creative tension is not a one-time, organization-wide event. It’s everyday behavior, based on dialogue and coaching—not featured in brochures, but in actions.

Leadership Move 4: Lead Through Visible Participation, Not Proclamation
Perhaps the greatest falsehood in change management is the myth of “management buy-in.” But buy-in, or being behind an initiative, is different than being in “front” of it. A major element of Lean manufacturing is pulling product through process, not pushing it through. When a leader is pushing, people don’t know if they’re being pushed toward something better, or off a cliff. They don’t have this concern if leaders are out in front, pulling.

Too many leaders think that by allocating resources, attending reporting sessions, and writing a few company-wide e-mails, they’ve done their part in leading Lean, but that’s not enough for cultural and operational transformation. Management buy-in must turn into leadership commitment, or the organization will never reach full potential.

What does commitment look like? Think: active engagement. Leaders often believe they don’t have time to commit to active participation, that it’s sufficient to proclaim the importance of Lean. Employees watch everyday actions of leaders, and if leaders spend their time on financial reviews, status reports, and decision-making, workers will mimic those priorities. When leaders participate in (or ideally, lead) waste-walks and problem-solving coaching, employees understand Lean warrants priority status. Coaching entails side-by-side engagement, encouragement, and support. Setting a good example is not the only reason to actively participate in Lean. By participating, leaders observe how Lean is understood and applied. Teams solving problems and identifying, and eliminating waste tell a leader more about the Lean transformation’s current state than reports.

Leadership Move 5: Build Lean Into Personal Practice
Leaders who view Lean as something that only applies to others make a critical mistake. They should take a good look at their own practices—starting with standardization—developing clearly structured processes for certain activities, designing a structured flow for their own time, and becoming more predictive. Standardization, despite its sound, is not static, but dynamic, changing with conditions, needs, and improvements. Leaders should build on standardization with learning, or the scientific method. They need to make decisions, solve problems, and deliver improvements with a deliberate sense of accomplishment. Suppose there is an improvement idea to reallocate resources out of quality, and back into line management. The scientific method would begin with a hypothesis, the linchpin for learning. The hypothesis might be to make line management more responsible for quality—that 50 percent more defects will be found in process vs. inspection, for example. The hypothesis can be tested, resulting in valuable information, which aids learning. Scientific method and process improvement are at the heart of Lean culture. Leaders and managers become more effective by aggressively applying Lean to their job functions. Applying Lean to leaders’ and managers’ job functions conveys legitimacy, so it’s important for leaders to broadcast their use of Lean to those around them.

To teach, a leader has to learn, and learning Lean is more than a cerebral exercise. A leader can read a few slides on Lean, but won’t be able to coach employees to apply Lean thinking daily. By applying Lean to everything, a leader becomes a more effective teacher. Remember what leadership is really about: It’s not a job; it’s an act. Leaders have to learn how to teach, build creative tension, and eliminate fear and comfort. Leaders need to actively participate in the transformation of the business, and apply Lean to their own jobs.

Jamie Flinchbaugh and Andy Carlino are founders of the Lean Learning Center and can be contacted at www.leanlearningcenter.com.