“What Is Lean” – 2015

Mike Rother and Jeff Liker have refined the “What is Lean?” slideshare from earlier this year. I think they have filled things in pretty well. Take a look, then I’ll add my thoughts.

Responsibility of Leaders

The Jim Womack quote on Slide 4 is telling in a number at a number of levels:

“Most management decided they could outsource lean…

‘ Please go do it, here’s your budget, and please get some results, we won’t be too precise about that, and now I will be on to the next issue.’ And of course that is unlikely to produce much a result… It produces something, but it doesn’t produce what we had intended, which was that this would become the core way that managers think.”

I had a friend in the Army who (with a smile) would say “An action passed is an action completed.” These managers believe that as long as they have assigned someone to work on the problem, their responsibility is to getting updates on progress and authorize or question budget requests, then moving on to the next agenda item.

Even today I see very real “We have to do this to survive as a company” levels of urgency behind initiatives, but they are still assigned to mid-level staff people as though engineering a fundamental shift in the organization’s ways of working can be done with mere oversight of the top level leaders.

Actual Customers

While we (the lean teachers, community) have done pretty well over the years is talk about establishing flow. What we haven’t done as well is with the words “toward a customer.”

Never Ending Struggle

The problem with “lean implantation plans” is they, by their very nature, have a point when they are “done.”

Human cultures throughout history have their legends built on what Joseph Campbell called the Hero’s Journey, and our implementation plans are built around the same pattern.

  1. The need for change. (often first met with refusal or denial)
  2. Commitment / crossing the threshold.
  3. The Mentor Figure (“find a sensei”)
  4. Assembling the team.
  5. The Quest / Journey of Adventure
  6. Final Confrontation
  7. Returning with “the elixir” / the journey home
  8. A changed life and/or a changed world.

While there are lots of variations on how this is described, this is the pattern of just about every business novel, every script in Hollywood, and our most compelling stories.

But these stories always have an end – where things are “changed” and a new stability. And our “implementation plans” imply the same expectation – that there is a “new normal” where everyone can relax because we’ve gotten there.

The Problem as I See It

The model outlined in this slideshare runs against the grain of everything business executives are taught. I think it is great that we are starting to realize what is really behind truly great organizational performance, but it’s still too easy to dismiss as an outlier when it happens. The “Lean Community” has a lot of momentum behind the “implement the tools” paradigm, and the idea that establishing and enforcing standards for the improvement boards and forms is somehow the key to success.

Let’s challenge the paradigm. Right now the biggest “change” we need to make is us.

 

The Personal Challenge of One-by-One

I got a cool model kit of the 1903 Wright Flyer for Christmas, and am in the process of assembling it. Each wing (top and bottom) has two spars connected by 38 ribs. (To give you a sense of the size, the wingspan of the model is just over 30 inches).

FlyerModelWing

Each of the 38(x2) ribs requires the following steps:

  1. Cut the laser cut part from the sheet.
  2. Sand the ends smooth with an emery board. Fit check between the spar.
  3. Sand the burned wood from the top edge with an emery board (outside curve).
  4. Sand the burned wood from the bottom edge (inside curve) with a piece of fine sandpaper wrapped around a round hobby knife handle.
  5. Sand the burn marks off the flat side with the emery board.
  6. Glue the front end to the front spar.
  7. Glue the back end of the previously done rib to the rear spar. (give the front glue joint time to set)

It was amazingly tempting to just cut them all out, the sand all of the ends, then sand all of the top edges, then sand all of the bottom edges, then sand all of the flats, then glue them all into place. That would have felt like it was faster.

But no matter what order I did it in, I had to repeat steps 1-7 38 times, there wasn’t any way around that. And yes, I picked up, and put down, the tools and glue bottle 38 times by doing it 1:1. But I also picked up on mistakes that I had made only once, and could check and adjust my technique as I went to ensure everything was fitting together the way it should be.

I could also more easily cut things loose when a little glue stuck the spar to the jig. It’s easier to get the knife under one stuck rib. (I only glued my fingers to the wood a couple of times, and only just a little. *smile*).

I know this is old stuff to most of my readers, but sometimes it is good to come back to the fundamentals and experience that 1:1 feels slower even though it isn’t.

Smart People Making Good Decisions and Killing Growth

Probably without realizing it, Clayton Christensen takes us (the “lean community”) to task in this talk about investment and growth.

We have been “selling” continuous improvement – in all of its forms whether we call it “lean” or Six Sigma, or Theory of Constraints, or Total Quality Management as a cost reduction tool for so long that most managers out there believe that is all it is for.

In this talk, which I got from Mike Rother’s YouTube channel, Christensen makes the distinction between market creating innovations, which create demand where none existed; sustaining innovations, which improve the product, but don’t create new customers; and efficiency innovations which allow us to do more with less.

In Christensen’s view (which I happen to support), the only one of these which creates growth in the economy is a market creating innovation.

Growth stagnates because efficiency innovations show much better short-term return on key metrics.

Take a look at the video, then let’s discuss where we need to go with this.

In a market where there are two or three stable players, without breakthrough market creating innovations, they can only “grow” by taking market share from one another. This dictates a strategy of becoming very good at sustaining innovation (making your product better) and efficiency innovation (so you can sell it at a competitive price).  These are important, because they are required for survival which is, in turn, required to fund market-creating innovation.

Because the vast majority (not all, but most) of continuous improvement effort is focused inward, it tends to work in these areas – improving existing products, improving operations.

We do have the “Lean Startup” movement that is hacking out space for true market creating or disrupting innovation. The question (and I don’t know the answer) is how do established companies get past their completely rational financial decision making and pull that “seek new customers” thinking into their portfolios? The only companies I know who are doing this are privately held, and actually run by the owners (vs. private equity owners)… and I’ve seen a couple of privately held companies turn away game changing ideas as well for fear of cannibalizing their other products.

Apple has been the exception. It’s too early to tell if that exception was actually Apple or just Steve.

Maybe that’s the normal business cycle. What are your thoughts?