Mike Rother Overview of Toyota Kata

This is a 5 minute edit of the presentation Mike Rother made at the UK Lean summit.

It is a succinct summary of interaction between a coach (leader) and learner (someone working on improving a process).

My thoughts are below the video…

OK – here are some things I have learned with these methods “in the wild.”

Most organizations I have been working with can’t take on 1-3 year challenges and stay the course for that duration. The horizons are too far for them to see what is possible within that kind of time frame and stay the course.

I have been trying 3-4 month time horizons for initial challenges in organizations where everyone is learning the basics at all levels. That gives them an opportunity to practice with a horizon that is less likely to be derailed by a sudden change in direction during that time. Eventually, as they develop capability, they can extend the time horizon and morph these practice challenges into something more formal, linked to the business plan.

Middle managers like to leap onto the coaching questions much too early – before they are capable of actually coaching. The coaching questions are seductive because they are written down and structured.

The PDCA process is much more nuanced, but it must be mastered before attempting to coach. Why? Because the coaching process is application of PDCA toward the learner’s development.

While it is OK to round-robin coaching and actual process improvement, everyone has to work together to reflect and learn.

In addition, those middle managers tend to try to leap into coaching before they have an internally set non-negotiable sense of “True North” – driving toward better and better flow.

When a middle manager is taking on the role of the “learner” there is a great temptation for him to delegate tasks to others, and get reports. This is status quo, and does nothing at all to develop capability.

Like everything else we do in the West, or at least in the USA, we try to get there fast by skipping the basics.

Make no mistake – you don’t “implement Toyota Kata.”

You use it as a structure to build foundational capability and new thinking patterns.

Those patterns are only developed through practice, and deliberate reflection on the management process itself.

I have also seen an organization that is “getting it” pretty quickly. The difference is that they are all overtly in “we are just learning this” mode, and willing to make mistakes and learn from them vs. trying to appear to be competent from the get-go.

Mike Rother has other videos on YouTube as 734Mike.

“True North” – Explicit or Intrinsic?

compassOne of the factors common to organizations that maintain a continuous improvement culture is leadership alignment on an overall direction for improvement – a “True North” – that defines the perfection you are striving for.

Steve Spear describes Toyota’s “Ideal” as:

An activity or a system of activities is IDEAL if it always produces and delivers:

(a) defect-free responses (those that meet the customer’s expectations),

(b) on-demand (only when triggered by the customer’s request),

(c) in batches of one,

(d) with immediate response times,

(e) without waste, and

(f) with physical, emotional, and professional safety for the supplier.

(From The Toyota Production System: An Example of Managing Complex Social / Technical Systems, Steven Spear’s PhD dissertation, 1999, Harvard University)

You (and I) can quibble about some of the semantics, but overall, this is a pretty good list.

Mike Rother (not coincidently, I am sure) puts up something quite similar in Toyota Kata:

…Toyota has for several decades been pursuing a long-term vision that consists of:

  • Zero defects
  • 100% value added
  • One-piece-flow, in sequence, on demand
  • Security for people

Toyota sees this particular ideal-state condition – if it were achieved through an entire value stream – as the way of manufacturing with the highest quality, at the lowest cost, with the shortest lead time. In recent years, Toyota began referring to this as its “true north” for production.

As I have tried to emphasize the importance of a leadership team having a clear sense of “True North” I have noticed that many of them get bogged down in trying to develop and articulate a concrete statement. (This is partly my fault, and I am revising my training materials to reflect what I am writing here.)

What I am realizing is that this is more of an “attractor” than a rule set. Let me explain through a bit of digression.

When we see something, we have an immediate emotional response. Generally it is attraction toward something we see as good (or are curious about); or avoidance of something we see as fearful or dangerous.

We construct a logical reason for that emotional reaction several tenths of a second after that emotional reaction is firmly anchored. Thus, our logic follows, rather than driving, our responses to things. This happens so fast that we are not usually aware, but two people seeing the same thing can respond very differently based on their individual background and experience. I don’t want to dive too deeply into psychology here, so I’ll pull back out of this.

“True North” sets the direction of process improvement because there is high alignment on what kinds of process changes are attractive vs. those which should be avoided. When I say “attractive” I mean “we want to actively move toward them” meaning the organization will expend energy, ingenuity, and resources to do so. This is how continuous improvement is driven.

If I am right, then “True North” is more of an “I know it when I see it” kind of thing than it is a carefully articulated statement.

If I look at other businesses who are (or have been) pretty well aligned with their efforts, I can see the same kind of thing.

For example, though I doubt that it is articulated internally in this way, it has been pretty clear to me “Windows Everywhere” has been something that sets (or set) overall direction within Microsoft. (I’ll admit I don’t have as strong a sense of this as I did in the late 1990’s when my social circles included a number of people who worked there.)

A local hospital does articulate theirs, but it also makes sense: “No wait, no harm.”

Most organizations I have dealt with, though, don’t have a good sense of long-range perfection. They are mired in the details of today, tomorrow, this quarter.

They might have some kind of “vision” or “mission” statement, but often those are paragraphs that are carefully constructed to address constituencies (“Satisfying our customers while delivering maximum shareholder value and being a great place to work, blah, blah”)

Those “visions” though are rarely actively used to guide conversations or decisions, much less continuous improvement.

Since I believe this is a gap these teams need to close if they are to shift toward a continuous improvement culture, I need to improve how I am getting this across to them.

So… the next thing I am going to try is to rework my “True North” instruction and do a better job of framing it as something to actively move toward rather than something to try to logically articulate.

“True North” may be more of a feeling rather than a logical test.

This means that the job of the teacher / practitioner / change agent is to hold on to that “True North” during your coaching until the leaner “gets it” and starts actively seeking solutions that move in that direction.

Learning vs. Knowing (or not)

PC once again left a provocative post in the Lean Thinker’s Community, and gave us a link to this Tim Harford TED talk that drives home the point that learning and improvement is more about rapidly discovering things that don’t work than about designing things that do.

Trial and Error

Tom Wujec makes the same point in the Marshmallow Challenge. In that video, Tom talks about how 5 year old kids out perform most adult groups in a problem solving / learning game. While the adults engage in a single cycle of “know-build-fail” the kids engage in multiple cycles of “try-fail-learn-try again.” In the improvement world, we call this process PDCA.

Harford’s key point is that learning only happens through a process of trial of large numbers of ideas, followed by the selection and further trials on the best ones.

Hmmm… that sounds a lot like the 3P process of “Seven Ideas” as well as “Set Based Design.”

Don’t Outrun Your Headlights

I am finding good resonance with my management training sessions. Rather than doing an overview of the “tools of lean” I go in depth into the fundamental things that the leaders need to

  1. Learn to do, and do.
  2. Ensure are done.

in order to build this on a solid foundation.

But “resonance” seems to mean “in a hurry to get to the good stuff” and a temptation to skip some of the foundational work.

We need to start off in learning mode, working to build a foundation of stability and consistent execution.

Without consistent execution, all of the great plans are nothing but ideas. The first hoshin to work on is establishing a stable process of daily improvement. Once you have that, your improvement management process becomes an exercise in priorities and direction setting.

Without consistent execution, your improvement plan is application of brute force against the momentum of business as usual.

That isn’t “resistance to change” at work. It is “we barely have time to survive down here, so we’ll get to your improvements when we have time.”

You have to create that headroom first. Honestly, it is mostly about instilling confidence, both in themselves, and in you. They have to believe they can carry out the plan. They have to trust you to be consistent with your purpose and not cut their legs out by asking them to change course in the middle.

All of this takes practice. With the right kind of practice comes teambuilding. (That shouldn’t be a separate activity.)

Step by step. You can move quickly, but only if you embrace “smooth is fast.”

Leadership and Challenges

This post rambles a bit, and wraps up a few concepts. It was, however, inspired by a recent interview of Mike Rother on Lean Nation. (See below)

One of the many good points that struck me was that you can’t rally around an ROI.

Yet companies try to do just that. They set something ROI or margin objectives, and wonder why everyone doesn’t pick them up and run with them.

Even companies that do issue a good challenge often come up wondering why the organization doesn’t align around it. Rother mentions one good reason: Nobody is there to coach them through meeting their part of the challenge.

A similar fallacy is trying to rally people around an abstract vision. I have experienced this a couple of times. A company tries to apply general education to people – lots of it – in the (vain) hope that once people “understand” then they will pick up the ball and run. But without consistent direction toward a limited objective that is easily articulated, people freeze up. “What do we work on?” There are too many choices.

Chip and Dan Heath discuss the importance of a rallying point in their book about culture change, Switch. They talk about “Pointing to the Destination” and “Scripting the Critical Moves.” When we talk about an aligning challenge, we are saying the same thing. Remember – in these initial stages you are trying to infuse a fundamental behavior and culture change. You can’t just tell people what it is and expect things to change tomorrow.

Classroom training may teach people the words, but it does little to accelerate the process of learning on the shop floor. That takes leadership.

More after the video:

One of the concepts that Rother discusses in Toyota Kata is the concept of “True North.” Spear also talks about it as striving toward the ideal process. Same thing, different words.

But at another level, when we are trying to shape a different management system, it is equally important for the leaders to have a “true north” for the ideal leadership process. I think this is different (or should be expressed differently) from the True North of the ideal value-adding process.

As I develop my own practice, I am honing in on those key elements of “leadership true north” and making it the cornerstone of my engagements. Mainly I try to describe specific behaviors and critical elements that need to be in place. This seems to play better than abstract concepts like “servant leadership” because it tells people what they need to do. (See “Script the Critical Moves.”)

Lean Leadership: Kaizen is Management

Chapter 4 of The Toyota Way to Lean Leadership lays out the picture of a company where continuous improvement of operations is the primary focus of the management system.

Note here that I said “focus of the management system” rather than “focus of the managers.” I believe there is a crucial difference which I will explain in a bit.

Liker and Convis start out by explaining what “kaizen” isn’t. Sad that they have to do this, but the problem is summed up nicely:

Too often [kaizen] has come to mean assembling a special team for a project using lean of Six Sigma methods, or perhaps organizing a kaizen “event” for a week to make a burst of changes. We sometimes hear the phrase “doing a kaizen” as if it were a one-off activity. At Toyota, kaizen […] is how the company operates at the most fundamental level.

One of the persistent mysteries (to me) is why, after decades of knowing otherwise, so many businesses still consider “kaizen” or “improvement” to be a separate activity from “management.”

A few weeks ago I expanded on a great presentation by Bill Costantino that explained the relationship between challenges, targets, kaizen and the knowledge space of the company.

In that post, I created an animation of Bill’s graphic that illustrates progressive targets pushing the threshold of knowledge relentlessly toward the objective.

In this model, although we have a decent idea where we are, and what we want to end up with, the details of the path to get there are not known in advance.

Lean Leadership illustrates the same point quite well with the story of a factory kaizen team at TMMK (Toyota’s Georgetown, Kentucky facility). Of note is that this team is made up largely of production workers. It isn’t “the improvement team.” It isn’t an engineering department team. It is the people who have to live with the solution.

The team’s challenge was to improve a wasteful process for handling and moving sheet metal parts through the plant to the point of use on the assembly line.

They started by studying another company’s solution to the problem.

Did I mention that this team of factory workers from Kentucky spent two weeks in Japan studying this supplier’s system? Why make this kind of investment? Ponder that a bit, we’ll get back to this too.

Once back in Kentucky, the team had a clear sense of the challenge, and set out to progressively develop their own solution by experimentation, observation, and learning.

First they tried copying the benchmarked system on a small-scale test to deepen their understanding of what they had studied. Trying it on their parts surfaced differences that weren’t obvious at first, and they learned copying definitely wouldn’t work.

Key: The reason they tried to copy was to learn more about it. This was a small-scale concept test, not an attempt at wholesale implementation.

Even if it had worked, copying develops no skill other than reverse-engineering someone else’s solution that was developed for a different problem in different conditions. When people then say “See, it won’t work here” this is likely how they got to that conclusion. Too many companies “benchmark” and then try to do this. This team took a completely different approach.

“OK, cool, it didn’t work. Try something else.” And that is how learning happens.

They go back to grasping the original problem – damage from forklift handling. This is crucial. So many teams get bogged down on defining the “problem” as “making the fixed solution work” and end up expending a lot of effort in a tunnel with a dead-end. This is about exploring possible solutions to the actual problem.

They end up developing something quite different from what they benchmarked, that delivered the right parts, in the right orientation to the assembly operator. They knew this because they were their own customers – these were people who did this job.

Once they had it working on a sub-set of easier parts, they expanded the concept step by step (a few parts at a time) to handle the larger ones.

Key: Get the simple version working before trying to add complexity. Control your experiments. This is how learning happens vs. “just fiddling with it until it works.”

They proceed step by step – now sharing back and forth with the benchmark company who is seeing their solutions and building on them, until they have an AGV pulling a sequenced line of part carts that were loaded by robots, everything moving at takt.

Still, there was a lot of human interaction and they kept working to better synchronize everything.

Step by step, they worked their way back into parts that came from outside suppliers, dealing with one issue at a time.

Then a remarkable thing happened:

…at some point an hourly team member asked why the company was spending so much money to buy AGVs from external suppliers. Toyota manufactures vehicles, after all. Team members found they could buy the little robotic device that pulls the carts and custom-make the carts themselves.

But they didn’t stop there.

Later they discovered they could buy inexpensive, generic circuit boards of the type used in the AGV and program the boards themselves so that the AGVs would stop and wait at certain points along the line. Programming the AGVs themselves was a breakthrough, since it cut out licensing fees and added the flexibility to reprogram them. The original AGVs cost about $25,000 each; the ones built in-house cost under $4,000. With more than 100 AGVs in use, the team members kaizen initiative saved TMMK more than $2 million.

Let’s take a step back from this and look at what was really happening here.

What did these team members know at the end of this process that the didn’t know at the beginning?

What knowledge did they add to the company’s capability? Beyond the simple technical solution, what else did they learn? What confidence did they gain?

In other words, how did participating in this process improve the capability of the team members to improve other processes?

What would it be worth to your company to have team members who could think like this? (Hint – you already have them)

I promised to address a couple of points later. Here they are:

The role of managers vs. the management system.

The management system in any company is rightly focused on ensuring that operations are delivering the most customer value for the least cost. This is true of any value-creating operation, be it organized for profit or non-profit.

But the picture being painted by Liker and Convis is one where this management system works by ensuring the managers (that is, the individual people who are responsible for the operation) are focused on developing people’s capability.

To do this, Toyota has a specific process for developing leaders to embrace this responsibility.

This isn’t a new message. But it is emerging more clearly and more consistently in the popular literature in the last few years.

Which brings us to who made the improvements.

In this example, the improvements were made by production team members.

The company probably could have achieved similar (or at least similar looking) results with a project plan and a team of engineers. It might have even been faster.

But the production workers would have learned nothing other than to accept whatever the engineers gave them.

It is unlikely it would have occurred to anyone to build their own AGVs and save another couple of megabucks.

And the capacity of the company for improvements would have remained the same rather than increasing. At some point, the rate of improvement is constrained by the resources that can be dedicated to the task.

So, while an individual improvement task might take longer as people learn, in the end there is a multiplier effect as more and more people get better and better at making improvements. Sadly, it is really impossible to assign an ROI to that, so traditional management doesn’t allow for it.

This post is long enough. There is more in Chapter 4 to talk about, but I want to get this out there.

The Structure Behind Leader Development

Chapter 3 of The Toyota Way to Lean Leadership is titled “Coach and Develop Others.”

Where in Chapter 2 the authors were outlining the individual leader’s responsibility for self-development, now they are describing the environment and the process of supporting and focusing that drive.

Rather than just outline the chapter, I want to dig into some key elements of the context that Toyota creates for their leaders.

First is the expectation that leaders lead.

Leading vs. Delegating

Chapter 3 has a great story that exemplifies the key differences in management styles that I alluded to in the post about Chapter 2.

In that story, NUMMI has equipment reliability problems in the body shop. Mr. Ito, the President has instructed Convis to have each engineer prepare and present a one page report for every breakdown lasting over 30 minutes. The telling moment is Convis behavior in the presentations:

While Ito was critiquing the [A3] presentations and reports, Gary [Convis] simply stood to one side, marveling at Ito’s insight and amused at the struggles of the engineers’ efforts to learn this way of thinking.

This quote nails the core issue we have to deal with in any company that wants to succeed with lean production.

Convis was newly hired from the U.S. automobile industry, and was acting exactly as he was trained as a manager. He was acting as every manager in the USA is trained.

He has delegated the process of training the engineers to Ito, who he sees as the technical expert. Convis viewed his presence here as overseeing how well his engineers are responding to that training.

Ito, though, had other ideas.

After a few sessions, Ito asked Gary how he was coaching the engineers through the process before the presentations. Ito pointed out that there was still a lot of red on the reports, and if Gary had been teaching the engineers properly, there would be less red ink. […] problems with the reports were a reflection of Gary’s leadership, and he was more responsible for any failures than the engineers were.

Zing.

You can’t even cite “If the student hasn’t learned, the teacher hasn’t taught” here because the delegation paradigm was so strong that Convis didn’t realize he had responsibility for being the teacher.

Convis, of course, “got it” and began seeing the red ink as his failure, rather than the engineers’. The drive for self-development kicked in and worked. And of course, in the process of struggling to coach the problem solving process, he had to struggle to learn it well enough to do so.

Personally, I see the idea of delegating and then passively overseeing improvement and people development is a cancer that is difficult to excise from even the most well intentioned organization.

I have seen this with my own eyes – senior executives struggling with how to “implement lean.” What was their concern? What metrics they could use to gage everyone’s progress through reports to corporate headquarters. They simply saw no need to get personally involved in learning, much less going to see, and certainly not teaching, the messy details. Not surprisingly, that company still struggles with the concepts.

Of course it cascades down from there. The various sites’ leaders follow the example, and delegate to their professional staff people. The staff’s job? To come up with “the lean plan” and “drive improvement” while the leaders watch. At some point, someone in charge of the operation actually has to do something different, but that, it seems, is always the next level down.

I am not going to get into what stops leaders from stepping up to this responsibility or what do to about it because that would be a book in itself.

It doesn’t help that, with the revolving-door of leadership we often encounter, each new leader comes in with the old mindset. OK </rant> and back to the book. Smile

The Technical Support

This expectation of leaders leading does not operate in a vacuum. Toyota processes are deliberately set up to remove any ambiguity about what the next challenge is by surfacing problems immediately

In the words of Lean Leadership, these problems are framed as challenges for leader development.

In a much earlier post, I objected to our western euphemism of “opportunity” when we meant “problem.” My objection was treating this “opportunity” as an something that could be taken on, or not.

A challenge, especially in the context of leader development, isn’t optional. A top level athlete grasps the meaning of a challenge. He is driven to take it on and push himself to meet it. He improves in the process. It isn’t about the record, per se, it is about what he must develop and pull from within himself to get there.

Just as the world-class athlete has a stopwatch on every lap, the assembly line is set up to verify the timing of every cycle. Any discrepancy is immediately apparent to both the team member and the leaders. If the work can’t be done, the line is stopped and things are made right. Then we figure out why. And everyone learns.

TPS […] creates a never-ending stream of opportunities for on-the-job development and increased challenges. Toyota sensei do not need to create artificial training situations […]. The daily process of producing cars generates all the development opportunities and challenges that are needed.

If your organization has trouble finding problems, it isn’t because they aren’t there. It is because your processes are blind to them. That is why “No problem is a big problem.”

The key is that when we talk about “implementing the tools of lean” we are doing nothing more than setting up the baseline process to present the challenges for leadership development. That’s it. It is the difference between playing a casual game and deciding to keep score.

You can’t improve without keeping score, to be sure. But keeping score alone doesn’t cause things to get better. If anything, it increases people’s frustration because they see they are coming up short, but don’t have the support or opportunity to do anything about it.

What happens then? They start seeing problems as “normal” and start blinding the system. They add padding to cycle times to “allow for variation.” They decouple processes and put in extra inventory. They start running two at a time, then four, and return to batching.

If a problem remains hidden below the surface long enough, it can stop being perceived as a problem and become part of normal operating procedure.

OK, so I’ve beaten that to death yet again. It is critical to structure the work so that we can see whether things are going as planned or not.

But it is just as critical to have the problem solving processes engaged immediately. If those processes don’t yet exist, you have no hope of your so-called improvements sustaining for long.

That’s not all. There is another standard that is just as critical – if not more: A standard for problem solving.

The A3

We just got done exploring how critical it is to have a process that is totally transparent. Why? So we can clearly see any difference between how it is and how it should be.

The purpose of the A3 is to provide that level of visual control to the problem solving process itself.

And yes, problem solving is a process. It follows standard work. It is perhaps the most critical thing to standardize. The only way to gain skill at something is to practice against a clear standard. It really helps to have a coach watching your every move and calling out small adjustments, things you need to pay more attention to the next time you do it (which should be immediately).

The A3 is the game film, the slow motion camera, the visual control of how problem solving is being done. It is not sufficient to find the solution. It is more important to develop a consistent approach to problem solving across the entire organization.

But outside of Toyota and a few companies that are starting to grasp what this is about, the A3 is, sadly, one of the more recent fads in the lean community.

An A3 isn’t something you tell someone else to do. It is a visual control, just like the moving line, that works only in the context of direct observation and participation by all parties involved. In the above story, Ito was setting an example, and expecting Convis to follow it. Once that started happening, Ito’s participation shifted from coaching the engineers to coaching Convis as he coached them.

Just as the tools of takt time, standard work, pull systems, etc. do not stand alone and “make you lean,” neither does filling out A3 forms. Even if you have “the tools” and a problem solving process, it doesn’t help if they are not intimately linked together.

All of these things are designed for 1:1 interaction. They are messy testaments to the fact that problem solving often loops back to previous steps as more is learned.

The Big Picture

This chapter provoked a lot of thought for me, and I have tried to share some of that. When / if you choose to read the book, I hope you have your own thoughts, and even share them here or in the forum (that could use some life right now).

Fundamentally, Chapter 3 is about the phenomenal support Toyota provides those leaders who have the self-motivation to learn.

  • Every operation is structured to provide challenges and opportunities for them to develop their skills. There is no shortage of things that obviously need improving.
  • Every leader is positioned to teach and mentor those who are willing to step up to the challenges that are there.
  • The problem solving process itself is structured as standard work so that a prospective leader can practice against a standard and improve skill through repetition and coaching.

Aside from a couple of case studies and examples, this chapter is a bit of a synopsis of Toyota Kata. I continue to bring Kata into this discussion because there is obvious overlap in topics, and I see these two books complimenting each other. Kata gets into the nitty-gritty of how problem solving and coaching happens. Lean Leadership is providing a context and case examples of the entire ecosystem.

More to follow.

The Annual Operating Wish

As we approach the end of the calendar year, many companies are starting to work on their Annual Operating Plans Wishes for next year.

Why do I say wish? Because all too often these plans dictate what they wish would happen. Throughout the year, performance is “measured” against the plan. Positive variances are rewarded. Negative variances are, well, not rewarded.

To make things more interesting, each department: Sales, Production, Purchasing, etc., is responsible to meet the plan independently of the others. That makes sense, it is the only way they can be “held accountable.”

So when sales fall short in 1st quarter, production keeps producing. They have to. Otherwise they wouldn’t meet their AOP numbers.

To make things more interesting, if the sales mix changes from the original plan, and there is a raw material shortage that prevents shifting the production to match sales, production just makes whatever the can, whether it is selling or not.

It is pretty easy to think this through to a process of running overtime on weekends to build a product that was sold at a discount to “make the numbers” in the AOP.

The hilarious thing is that I have yet to meet a manager, at any level, who does not agree that this is exactly what happens, and that it is a poor way to run the business.

Yet we keep doing it over and over.

OK, so what to do about it?

The most important thing to grasp is that “the plan” is just that. It is not a fact. It is a working hypothesis, a prediction. It is wrong the day it is made. (If you can perfectly predict the future, why are you reading this?)

The purpose of making a plan is to identify the unexpected. If the sales mix and numbers start to depart from the plan, the entire system responds. This isn’t every department for themselves. (or shouldn’t be) This is about running the company to maximize total margins.

That means working together as a team with one plan, not a separate one for everyone.

‘Tis The Season for Management by Measurement

It must be that time of the year. I see traffic in the online forums asking about how to set key performance indicators for lean staff people so their performance incentives can be set.

If anyone were to ask my advice here, it comes down to one word:

Don’t.

Two reasons.

First, we have overwhelming evidence that these incentives not only don’t work, but they actually make performance worse in the kinds of work you are asking these people to do.

The Overjustification Effect

Dan Pink on motivation

All of this is consistent with what Deming told us decades ago, yet we keep doing it.

The second reason is inconsistency and misalignment.

Having the continuous improvement staff operating to separate metrics disconnects their efforts from line management’s. They become responsible for improving the operation while the line management processes are… what?

The message to the shop floor team is pretty clear here. They can read an organization chart. Do what the boss says, then, if we have time, and if the improvement guys can make the case, then maybe listen to what they have to say.

If you must have management-by-KPI, then the performance measurement for continuous improvement must be exactly the same as the line manager being supported. Why?

The question I would ask is “Who is responsible for the performance of the organization?” If it isn’t the line leader, then why does that position exist?

It makes no sense whatsoever to have the lean implementer working to a different agenda.

Our management traditions of de-aggregating and delegating are not serving us well. We need to take a systems view and realize that everything is inter-related. Further, we need to grasp that B.F. Skinner’s (dubious) research on rewards-based-behavior simply does not apply to management. Never has. Wishing otherwise isn’t going to change it.

The Tough Decision: What Not To Do

Today’s Dilbert strip highlights a situation that is only funny because it happens so often:

The idea that a company can focus on 25 key areas, or 125 key performance indicators (yes, I said 125 because I have seen it myself) is obviously ludicrous.

Of course a manager has a legitimate concern to ensure people don’t take their eyes off things that are important to focus on something else.

But the leader’s role here is to ensure there are processes and systems in place that anchor the routine things. Further, those processes and systems need to be designed to alert the appropriate people when something goes out of control, or past a boundary.

Without having any routines the manager has no choice but to make everything something to focus on.

Because there is no standard process, everything must be managed as an exception.

This stresses the organization because in reality they can only micro-manage a few things at a time. It is left up to the people to decide what isn’t going to get done. The bosses response at that point is going to be negative no matter what they accomplish. “Respect for people” does not play here.

Leader’s toughest job is deciding what we are not going to work on right now. It isn’t as tough as it seems because if a focus or challenge is selected well, it actually organizes the problem solving effort to pull just about everything else in behind it.

Let’s take an example from a previous post: On time delivery.

If we say “We are going to emphasize “on time delivery” as a theme or challenge this year, what kind of things might people end up working on?

  • Having every operation start on time.
  • Sources of delay.
  • Quality issues (which cause delays)
  • Safety issues (also cause delays)
  • Visual controls and good response to problems (to get on top of problems quickly)
  • Equipment reliability.
  • Setting a good operational takt time.

The list goes on. But by having a decent challenge, the local area can focus on the things that are impacting their ability to deliver on time. It isn’t necessary to make a laundry list of everything that could cause a delay and measure it from the top of the organization. If you do, everyone’s energy is dissipated working on problems that they don’t necessarily have.

Of course this is all based on having a leadership process that gets down to the work area, grasps what people are actually working on, and coaches them through the process of aligning their efforts and solving the right problems in the right way.

Hmmmm… so does that mean that the #1 thing to focus on if you want consistent on-time delivery might be leadership development?

I guess I need to get back to the Liker and Convis book.