Developing a Lean Culture Presentation

Your Gateway to Operational Excellence
© PSL 2010 All Rights Reserved
Developing a Lean Culture
Sustained Performance Through Engagement and Metrics

•“Applying lean management principles exposes problems in traditional business systems,
which often is threatening to middle managers in the problem areas,” said Chet
Marchwinski, LEI communication director. “To get middle managers on board with the lean
transformation, organizations must transform the metrics and behaviors for judging their
performances.”
•“A true culture of continuous improvement” is what is required. Jeffery Liker has identified
the primary problem most organizations face in implementing large scale change, weather it
is Lean, Six Sigma or some other company wide initiative. What is called for is a new
culture, a culture of continuous improvement, a culture that embraces change. The
primary reason most companies fail in their Lean implementation is because they fail to
successfully change the culture.
•Programs, by definition, end. Conversely, the ancient origin of the word philosophy
(philosophía) means “love of knowledge” or “love of wisdom.” And true love, as the good
book tells us, never ends. So, make sure your lean and/or six sigma activities are part
of an overall business philosophy and not a flavor of the month program.
Lean experts say:
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Some basic assumptions
• Lean tools work
• People will change when there is
need to change
• Greater than 50% of change efforts
fail to meet expectations

So where does culture come from?
Remember the definition
(Culture : the set of shared attitudes, values,
goals, and practices that characterizes an
institution or organization <a corporate culture
focused on the bottom line>)
LeadersThis document is a partial preview. Full document download can be found on Flevy:

• Are Passionate about their job, company , community and
their boss
• Treat others honorably and respectfully
• Show enthusiasm and energy and energize others
• Develop a strategy for their business and keep refining it
• Communicate the strategy
• Keep learning – are teachable, non-defensive
• Teach others
• Motivate others
• Encourage feedback
Leaders…………………….

• Make dramatic leaps in guest service
• Implement effect, structured processes for getting work done
• Explore, probe and know what is going on in your
organization and act upon the information
• Actively observe and react to the performance of your direct
reports. Take time for recognition, coaching and counseling
• Expand and Act Upon Knowledge and Experience of the Best
Service Available Anywhere!
Great Leader Strategies (con’t)

Culture Statement
• We will respect each other and treat each other with dignity
regardless of position within the company. The Golden Rule will
extend to our customers, suppliers and our communities.
Diversity will be embraced.
• We will make and keep commitments.
• We will maintain the highest levels of integrity. We will not lie or
bend the truth. We will not allow non-compliance to any of the
various regulations to which we must adhere.
• We will place the needs of the team above our own. We will do
what is right regardless of our personal desires. We will do this
while maintaining a balance in our lives.
• We will strive for excellence in everything we do. There are times
we will fail but not because we didn’t give our best efforts.
An Example

Organizational cultures
Organizational cultures form for a reason.
Perhaps the current organizational culture
matches the style and comfort zone of the
company founder.
Culture frequently echoes the prevailing
management style.
Since managers tend to hire people just
like themselves, the established
organizational culture is reinforced by new
hires.

Using Lean to change culture is great
but…..
It Is Just An Enabler Not
The Answer

The answer???
Engagement!

In a Gallup Study 2008
15% are actively
disengaged (unhappy and
spreading their discontent)
61% are not engaged (just
putting in time)
Only 23% of the NZ working
population is engaged (they work
with passion, feel a profound
connection to their organisation,
are advocates for their
organisation's products and
services, drive innovation and
move the organisation forward)
$5.6 billion per annum in
lost productivity
* In USA, every employer is wasting approximately 10% of their
payroll dollars on lost productivity due to disengagement

So the next question is how do you
achieve the level of engagement
where your employees are truly
influencing your financial performance
and customer satisfaction?

Organizational Alignment Basics
• Starts with Vision, Mission, Values, Culture
• Follow up with Strategic Plan
• Flowed down with Policy Deployment
• Executed with Lean tools
• Communicated with a Balanced SCORE card.

What About?
• Creativity training
• Leadership training
– Performance reviews
– Win-Win negotiating
– Active Listening
– Empowerment
• Problem Solving trainingThis document is a partial preview. Full document download can be found on Flevy:

We MUST remember these are the
tools of execution, the enablers.
It’s easy to have the hammer strike
the nail, wrench turn the nut, screw
driver turn the screw, but it takes time,
planning, communication, and
leadership to build a house!
In conclusion ...

Let us start a cultural revolution for you!
Keep it Clean, Green and Lean

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