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A developmental
pathway to lean
Change Management in Lean Processes
Drs. René L.M.C. Aernoudts
23th of June 2004
René Aernoudts
• Chairman of the Lean Management Institute in the
Netherlands
• Managing director of Sentary Coaching & Consulting
• Background in Business Economics, Sociology and
Organisational Behaviour
• Before founding the Lean Management Institute he was a managing
partner of a renowned consulting firm
• Ran lean projects in banks, cities, a brewery, NGO (WWF),
supermarkets, a commercial research organisation, a printing firm,
garbage recycling companies, governmental institutes, publishing
companies and different manufacturers (fridges, toilets, electronics)
• His objective since 1998 is to bring lean and the typical results that
come with it to service and non profit organisations
• Websites: http://www.leaninstituut.nl and http://www.sentary.com
A developmental pathway to lean
Where do I start?
How can I run a
successful lean
project?
What do I have to do
to achieve
sustainable results?
What are the typical
pitfalls?
What’s the best road
map for me?
Definition of Lean:
• It’s not about cost cutting…!
• It’s about creating more value for your customers,
stakeholders and employees!
• To do this we need resources, and therefore we
eliminate waste!
• Question to ask at the beginning
of a Lean Project: what are we
going to do with the resources
freed up by this Lean Project?
Lean: more than a toolbox
Paradigm, Philosophy
Leading principles
Fundamental concepts
Leadership
Change process
Methods and instruments
Indicators
Behaviour
A lot of change processes fail
• Research in the USA, the UK and the
Netherlands show that 70 to 75% of all change
processes fail…
• Main reasons? The participating persons and the
way change processes are designed
• Planned change is not enough to solve dynamic
and complex questions
• Leaders (and consultants!) need to be aware of
the fact that their own role and the way they steer
a change process are the crucial success factors
• What about Lean Change processes???
A lot of change processes fail
A lot of change processes fail
• Polarity Blueprint versus Developmental approach
• Blueprint approach chosen by more then 80% of
management. Fail rate: 80%! Success rate: 20%!
• Developmental approach chosen by less then 20% of
management. Fail rate: 17%! Success rate: 83%!
• Why do managers choose a blueprint method? Mainly
because it seems to create certainty, communicates (/sells)
easily and keeps the power at the top
• Is a blueprint method therefore worthless? No, it’s useful
when technical and instrumental aspects are involved
• A developmental approach is more effective when the
situation asks for a more radical change, not only in the
processes or structure but also in behaviour
A lot of change processes fail
Uhu, a bit sticky
though…
Good idea huh,
painting the floor!
Assumptions of PC
Planned Change
• Organizations as adaptive systems to market demands
• Human beings as social capital to perform objectives
• Employees motivated by personal advantage
• Managers using position power in steering changes
• Consultants as knowledge-driven experts
• Organization life as source of shortcomings
• Focus on economic measures of performance
• New design of business processes
• Top-down steering of change process
• Solution-oriented based on value chain
• Episodic change with stable end situation
• Single linear change process
• Techno-economical process rationality
• Strict norms and planning in change process
• Start with abstract business models
• Emphasis on expert knowledge
• Separation of design and implementation of changes
• Learning as reflection by change managers
• Knowledge development by using techniques
Assumptions of OD
Organizational Development
• Organizations as purposeful socio-technical system
• Human beings as creative and collaborative persons
• Employees motivated by developing human potential
• Managers using personal power in mutual collaboration
• Consultants as process-driven facilitators
• Organization life as source of experience
• Focus on improvement of effectiveness and working life
• Improvements based on the existing organization
• Utilization of knowledge and insight of personnel
• Problem-oriented based on working experiences
• Continuous change improvement
• Iterative change process
• Social-political process rationality
• Regard for ability to change in emergent change process
• Start with concrete working experiences
• Application of operational knowledge
• Smooth transition between phases in change
• Learning as a collective and ongoing activity
• Knowledge development by action research
A Developmental Pathway to Lean
Combining the knowledge
• We need Kaizen and Kaikaku: radical change
and continuous improvement
• Build a Lean Development Structure, because
it’s often difficult to create change through the
operational organisation
• Empower people at all levels by letting them
play an active and crucial role as change
agents or process owners
• Stimulate a Lean, Learning, Living culture
First thing to do: make a map
Vivid picture
of the future
Lean Team
Illustrative examples
Key questions
Leading lean principles
?
Objectives
(measurable
results)
Let’s make a start with a map!
Vivid picture
of the future
Illustrative examples
?Key questions
Leading lean principles
Objectives
(measurable
results)
We’ve just started…
Designing the process between the key
questions and the vivid image of the future:
• Four phases and four levels
• Structure of a lean development
organisation (time structure with roles)
• Every development process needs a
process owner (change agent)
• What are the leading lean concepts for your
situation and how to apply them
Designing the
Lean Development Process
Some rules:
• Involve persons concerned and interested
parties in the process
• We only tackle problems that really arise
• We take every advice serious and give
feedback to the person that gave it to us
• From a discussion culture to an advice
culture
• The realisation is the main course - not the
dessert
Four phases
MOBILISE &
ORIENTATE
RESEARCH &
EXPERIMENT
REDESIGN,
IMPLEMENT
& EQUIP
INTEGRATE &
ESTABLISH
Ask process owners
Run an introduction
workshop
Choose a lean process
or a product family
Visit best practices
Set up the
infrastructure
Measure the
CS figures
Plan and targets Analyse customer
process and
interfaces
Draw a current
state map
Create “short
tracks” or
quick wins
Just do and see
what happens
Prepare a paper
Draw future
state maps
Make a plan for
implementation
Implement the
chosen future
state
Train personnel
in the new ways
of working
Measure the
improvements
New advice
culture
Establish
training
programmes
Standardize
meetings
Start with new
processes and
set up projects
Stimulate the
new culture
Four levels
MANAGEMENT
PROCESS
OWNERS
TEAM
LEADERS
INDIVIDUAL
EMPLOYEES
INTEGRAL LEAN DEVELOPMENT PROCESSES
IMPROVEMENT PROCESSES PER DEPARTMENT
KNOWLEDGE TRANSFER, SKILLS AND BEHAVIOUR
VISION, STRATEGY, EMPOWERING, COMMUNICATE
Development infrastructure
MANAGEMENT
PROCESS
OWNERS
TEAM
LEADERS
INDIVIDUAL
EMPLOYEES
KNOWLEDGE TRANSFER, SKILLS AND BEHAVIOUR
IMPROVEMENT PROCESSES PER DEPARTMENT
INTEGRAL LEAN DEVELOPMENT PROCESSES
VISION, STRATEGY, EMPOWERING, COMMUNICATE
MOBILISE &
ORIENTATE
RESEARCH &
EXPERIMENT
REDESIGN,
IMPLEMENT
& EQUIP
INTEGRATE &
ESTABLISH
Example Value Stream Map (1)
Description Value Stream Map
Current State
Analysis
Throughput time
Value Added
Non Value Added Necessary
Non Value Added Not Necessary
Type of process
Lay-out and
visualisation
Types of waste
Communication
Planning & Control
Levelling tasks
Return on investment
1,2,3 (A,B,C)
Bottleneck
conclusions
Data and indicators
Example Value Stream Map (2)
Description Value Stream Map
Future State
Analysis
Throughput time
Value Added
Non Value Added Necessary
Non Value Added Not Necessary
Type of process
Lay-out and
visualisation
Types of waste
Communication
Planning & Control
Levelling tasks
Return on investment
1,2,3 (A,B,C)
Bottleneck
conclusions
Data and indicators
Managing a lean process
Confusion
Fear
Slow
change
Frustration
False start
REAL
CHANGE
Vision Skills ResourcesAction
Plan
Incentive
Vision ResourcesAction
Plan
Resources
Action
Plan
Incentive
Vision ResourcesIncentive
Vision ResourcesAction
Plan
Incentive
Vision
Action
Plan
Incentive
Skills
Skills
Skills
Skills
Lean road maps
Lean road maps
Where do I start?
By asking yourself the right
questions! Why do I want to
achieve with this Lean
Project?
Create a crisis…
Communicate examples
Visit other organizations a few
steps ahead and way beyond
Transferring knowledge
Ask a team and start mapping!
How can I run a
successful lean project?
Follow the principles, start with
the first one, although it isn’t
always easy!
Get some help
Create a road map
Make your own instruments
and your own business
system
Incorporate people with
concrete tasks
What do I have to do to achieve
sustainable results?
Involve personnel
Create quick wins and
communicate results
Show the improvements from
the employees perspective
Create a supporting
infrastructure
You are the living example, be
aware of your own actions
Beware of the hype of the
month
What are the typical pitfalls?
Failing Leadership!
Bare in mind the while
managing: incentive, vision,
action plan, skills and
resources…
It’s a golden formula without
any hard work to do…
We have so many other things
to do that take up our time,
energy and money…
What’s the best road map for me?
You saw some but…
Make your own map!
Share this with a few
colleagues and consultants
Just go out, do it and have
fun while you’re at it!
Thank you!

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A Developmental Pathway to Lean

  • 1. A developmental pathway to lean Change Management in Lean Processes Drs. René L.M.C. Aernoudts 23th of June 2004
  • 2. René Aernoudts • Chairman of the Lean Management Institute in the Netherlands • Managing director of Sentary Coaching & Consulting • Background in Business Economics, Sociology and Organisational Behaviour • Before founding the Lean Management Institute he was a managing partner of a renowned consulting firm • Ran lean projects in banks, cities, a brewery, NGO (WWF), supermarkets, a commercial research organisation, a printing firm, garbage recycling companies, governmental institutes, publishing companies and different manufacturers (fridges, toilets, electronics) • His objective since 1998 is to bring lean and the typical results that come with it to service and non profit organisations • Websites: http://www.leaninstituut.nl and http://www.sentary.com
  • 3. A developmental pathway to lean Where do I start? How can I run a successful lean project? What do I have to do to achieve sustainable results? What are the typical pitfalls? What’s the best road map for me?
  • 4. Definition of Lean: • It’s not about cost cutting…! • It’s about creating more value for your customers, stakeholders and employees! • To do this we need resources, and therefore we eliminate waste! • Question to ask at the beginning of a Lean Project: what are we going to do with the resources freed up by this Lean Project?
  • 5. Lean: more than a toolbox Paradigm, Philosophy Leading principles Fundamental concepts Leadership Change process Methods and instruments Indicators Behaviour
  • 6. A lot of change processes fail • Research in the USA, the UK and the Netherlands show that 70 to 75% of all change processes fail… • Main reasons? The participating persons and the way change processes are designed • Planned change is not enough to solve dynamic and complex questions • Leaders (and consultants!) need to be aware of the fact that their own role and the way they steer a change process are the crucial success factors • What about Lean Change processes???
  • 7. A lot of change processes fail
  • 8. A lot of change processes fail • Polarity Blueprint versus Developmental approach • Blueprint approach chosen by more then 80% of management. Fail rate: 80%! Success rate: 20%! • Developmental approach chosen by less then 20% of management. Fail rate: 17%! Success rate: 83%! • Why do managers choose a blueprint method? Mainly because it seems to create certainty, communicates (/sells) easily and keeps the power at the top • Is a blueprint method therefore worthless? No, it’s useful when technical and instrumental aspects are involved • A developmental approach is more effective when the situation asks for a more radical change, not only in the processes or structure but also in behaviour
  • 9. A lot of change processes fail Uhu, a bit sticky though… Good idea huh, painting the floor!
  • 10. Assumptions of PC Planned Change • Organizations as adaptive systems to market demands • Human beings as social capital to perform objectives • Employees motivated by personal advantage • Managers using position power in steering changes • Consultants as knowledge-driven experts • Organization life as source of shortcomings • Focus on economic measures of performance • New design of business processes • Top-down steering of change process • Solution-oriented based on value chain • Episodic change with stable end situation • Single linear change process • Techno-economical process rationality • Strict norms and planning in change process • Start with abstract business models • Emphasis on expert knowledge • Separation of design and implementation of changes • Learning as reflection by change managers • Knowledge development by using techniques
  • 11. Assumptions of OD Organizational Development • Organizations as purposeful socio-technical system • Human beings as creative and collaborative persons • Employees motivated by developing human potential • Managers using personal power in mutual collaboration • Consultants as process-driven facilitators • Organization life as source of experience • Focus on improvement of effectiveness and working life • Improvements based on the existing organization • Utilization of knowledge and insight of personnel • Problem-oriented based on working experiences • Continuous change improvement • Iterative change process • Social-political process rationality • Regard for ability to change in emergent change process • Start with concrete working experiences • Application of operational knowledge • Smooth transition between phases in change • Learning as a collective and ongoing activity • Knowledge development by action research
  • 13. Combining the knowledge • We need Kaizen and Kaikaku: radical change and continuous improvement • Build a Lean Development Structure, because it’s often difficult to create change through the operational organisation • Empower people at all levels by letting them play an active and crucial role as change agents or process owners • Stimulate a Lean, Learning, Living culture
  • 14. First thing to do: make a map Vivid picture of the future Lean Team Illustrative examples Key questions Leading lean principles ? Objectives (measurable results)
  • 15. Let’s make a start with a map! Vivid picture of the future Illustrative examples ?Key questions Leading lean principles Objectives (measurable results)
  • 16. We’ve just started… Designing the process between the key questions and the vivid image of the future: • Four phases and four levels • Structure of a lean development organisation (time structure with roles) • Every development process needs a process owner (change agent) • What are the leading lean concepts for your situation and how to apply them
  • 17. Designing the Lean Development Process Some rules: • Involve persons concerned and interested parties in the process • We only tackle problems that really arise • We take every advice serious and give feedback to the person that gave it to us • From a discussion culture to an advice culture • The realisation is the main course - not the dessert
  • 18. Four phases MOBILISE & ORIENTATE RESEARCH & EXPERIMENT REDESIGN, IMPLEMENT & EQUIP INTEGRATE & ESTABLISH Ask process owners Run an introduction workshop Choose a lean process or a product family Visit best practices Set up the infrastructure Measure the CS figures Plan and targets Analyse customer process and interfaces Draw a current state map Create “short tracks” or quick wins Just do and see what happens Prepare a paper Draw future state maps Make a plan for implementation Implement the chosen future state Train personnel in the new ways of working Measure the improvements New advice culture Establish training programmes Standardize meetings Start with new processes and set up projects Stimulate the new culture
  • 19. Four levels MANAGEMENT PROCESS OWNERS TEAM LEADERS INDIVIDUAL EMPLOYEES INTEGRAL LEAN DEVELOPMENT PROCESSES IMPROVEMENT PROCESSES PER DEPARTMENT KNOWLEDGE TRANSFER, SKILLS AND BEHAVIOUR VISION, STRATEGY, EMPOWERING, COMMUNICATE
  • 20. Development infrastructure MANAGEMENT PROCESS OWNERS TEAM LEADERS INDIVIDUAL EMPLOYEES KNOWLEDGE TRANSFER, SKILLS AND BEHAVIOUR IMPROVEMENT PROCESSES PER DEPARTMENT INTEGRAL LEAN DEVELOPMENT PROCESSES VISION, STRATEGY, EMPOWERING, COMMUNICATE MOBILISE & ORIENTATE RESEARCH & EXPERIMENT REDESIGN, IMPLEMENT & EQUIP INTEGRATE & ESTABLISH
  • 21. Example Value Stream Map (1) Description Value Stream Map Current State Analysis Throughput time Value Added Non Value Added Necessary Non Value Added Not Necessary Type of process Lay-out and visualisation Types of waste Communication Planning & Control Levelling tasks Return on investment 1,2,3 (A,B,C) Bottleneck conclusions Data and indicators
  • 22. Example Value Stream Map (2) Description Value Stream Map Future State Analysis Throughput time Value Added Non Value Added Necessary Non Value Added Not Necessary Type of process Lay-out and visualisation Types of waste Communication Planning & Control Levelling tasks Return on investment 1,2,3 (A,B,C) Bottleneck conclusions Data and indicators
  • 23. Managing a lean process Confusion Fear Slow change Frustration False start REAL CHANGE Vision Skills ResourcesAction Plan Incentive Vision ResourcesAction Plan Resources Action Plan Incentive Vision ResourcesIncentive Vision ResourcesAction Plan Incentive Vision Action Plan Incentive Skills Skills Skills Skills
  • 26. Where do I start? By asking yourself the right questions! Why do I want to achieve with this Lean Project? Create a crisis… Communicate examples Visit other organizations a few steps ahead and way beyond Transferring knowledge Ask a team and start mapping!
  • 27. How can I run a successful lean project? Follow the principles, start with the first one, although it isn’t always easy! Get some help Create a road map Make your own instruments and your own business system Incorporate people with concrete tasks
  • 28. What do I have to do to achieve sustainable results? Involve personnel Create quick wins and communicate results Show the improvements from the employees perspective Create a supporting infrastructure You are the living example, be aware of your own actions Beware of the hype of the month
  • 29. What are the typical pitfalls? Failing Leadership! Bare in mind the while managing: incentive, vision, action plan, skills and resources… It’s a golden formula without any hard work to do… We have so many other things to do that take up our time, energy and money…
  • 30. What’s the best road map for me? You saw some but… Make your own map! Share this with a few colleagues and consultants Just go out, do it and have fun while you’re at it!