Managing Culture and Change for Successful Quality and Lean Manufacturing Implementations
Download
1 / 66

Tonight’s Agenda - PowerPoint PPT Presentation


  • 189 Views
  • Uploaded on

Managing Culture and Change for Successful Quality and Lean Manufacturing Implementations presented to ASQ Section 702 October 15, 2003 by Cynthia Olson Systems Quality Consulting. Tonight’s Agenda. Why the Ability to Change is Important About Culture Is Your Culture Change-friendly?

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Tonight’s Agenda' - tait


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Managing Culture and Change for Successful Quality and Lean Manufacturing Implementationspresented toASQ Section 702October 15, 2003byCynthia OlsonSystems Quality Consulting


Tonight s agenda
Tonight’s Agenda Manufacturing Implementations

  • Why the Ability to Change is Important

  • About Culture

  • Is Your Culture Change-friendly?

  • Leadership for Change

  • Why People Resist Change

  • Management Strategies

  • Key Changes Required for ISO 9000 Implementation

  • Key Changes Required for Lean Implementation

  • Some Final Notes


Why the ability to change is important

Why the Ability to Change is Important Manufacturing Implementations


Winston churchill on change
Winston Churchill on Change Manufacturing Implementations

“To improve is to change; to be perfect is to change often.”


What darwin really said
What Darwin Really Said... Manufacturing Implementations

“It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.”

Charles Darwin


In Other Words... Manufacturing Implementations

Adapt or perish, now as ever, is nature's inexorable imperative.

H. G. Wells

What is true in nature, is also true in business.


There Are Those Who Adapt... Manufacturing Implementations

"I think there is a world market for maybe five computers."

- Thomas Watson, chairman of IBM, 1943

"We don't like their sound, and guitar music is on the way out.”

- Decca Recording Co. rejecting the Beatles, 1962

"640K ought to be enough for anybody."

- Bill Gates, 1981


And Those Who Do Not Adapt Manufacturing Implementations

Quickly Enough...

“Hey, we've got this amazing thing...we'll give it to you. We just want to do it. Pay our salary, we'll come to work for you.' And they said, 'No.’”

- Apple Computer Inc. founder Steve Jobs on attempts to get Atari interested in his and and Steve Wozniak's personal computer.


Where change fits in
Where Change Fits In Manufacturing Implementations

  • Quality

    • Continuous Improvement

    • Response to Customer Requirements

  • Lean

    • Replaces Traditional Manufacturing Approach

    • Seek Perfection

    • Response to Customer Needs

    • Change Becomes a Way of Life


Why is Change So Hard? Manufacturing Implementations

EGO

If we all know we need to improve, the question becomes: why don’t we?

It’s the people issues that make business hard!


About culture

About Culture Manufacturing Implementations


What is a Culture? Manufacturing Implementations

  • Culture is a way of describing how a group of people live together.

  • Culture includes;

    • the foods you eat

    • clothes you wear

    • rules of behavior

    • ideals and values

    • communication and more.

  • The culture is learned in everyday living.


What is a Workplace Culture? Manufacturing Implementations

  • Workplace culture is a way of describing how a group of people work together.

  • Workplace culture includes;

    • clothes you wear

    • attitudes and rules of behavior

    • ideals and values

    • communication and more.

  • The culture is learned in everyday working.

  • If management doesn’t create the desired culture, one will develop anyway.


Workplace Ideals and Values Manufacturing Implementations

  • Whatever management rewards, management will get.

  • Reward “yes men” and you will get obedience, but no creativity.

  • Reward squeaky wheels, soon all the wheels will squeak.

  • Reward those that would climb on the backs of others to reach the top, and you will have “politics” instead of production.


Philosophy Manufacturing Implementations

Technology

Culture

The Role of Culture in Lean Success

Culture is the most widely

neglected factor when

implementing Lean

Manufacturing.

Without addressing the

cultural issues, long term

Lean success is not likely.


Culture is the Foundation Manufacturing Implementations

Without the right culture, Lean tools will fail.

Buy-in, cooperation and involvement of all employees is critical to success.

Lean success requires a culture of capable, flexible, highly motivated people in an environment of enlightened experimentation.


Culture Manufacturing Implementations

Key Lean Workplace Attitudes

Empowerment

Fearlessness (trust in management)

Pride in work

Customer focus


Culture Manufacturing Implementations

Key Workplace Ideals and Values

Focus on elimination of waste

Belonging (member of team)

Responsibility to team and teammates

Delighting the customer

Sharing of information

Flexibility

Capability


Is your culture change friendly

Is Your Culture Manufacturing ImplementationsChange-friendly?


Culture Manufacturing Implementations

Examples of Cultural Hurdles

Culture of Blame - Lean makes problems visible, emotional reactions will be devastating if the culture is not in line with the Lean philosophy

Culture of Mistrust - Fear can paralyze

employees, make them unwilling to “stick their necks out”

Culture of Hierarchical Dividing Lines - Unless employees are invested in the success or failure of the company, its survival is “management’s problem.”


Do you have a change friendly culture

Look for who is to blame? Manufacturing Implementations

Focus on the process, not the people.

Do You Have a Change-Friendly Culture?

When something goes wrong, do you and your

managers;

OR

Mass Production Culture

Change-friendly Culture

Lean and ISO make problems visible so they can be

fixed, when this happens, your people should be

focused on fixing processes not dodging bullets.


Do you have a change friendly culture1

Raise the bar for next months numbers without investigating the cause?

Reward the team, discover the cause, and institutionalize the change.

Do You Have a Change-Friendly Culture?

When something goes right, do you and your

managers;

OR

Mass Production Culture

Change-friendly Culture

You get what you reward. Finding out what caused the

upswing and making it a permanent part of the process

allows you to keep the gains you make.


Do you have a change friendly culture2

Are all replaceable? the cause?

Are the company’s most valuable asset.

Do You Have a Change-Friendly Culture?

Do you and your managers believe that employees;

OR

Mass Production Culture

Change-friendly Culture

Feeling valuable and knowing one can “make a difference” are some of the most powerful motivating forces for employees. Remember, Lean works because of the people, not because of the tools.


Do you have a change friendly culture3

Cancel the project and cut your losses? the cause?

Encourage the employees to learn from their mistakes and try again.

Do You Have a Change-Friendly Culture?

When a plan or project is failing, do you and your

managers;

OR

Mass Production Culture

Change-friendly Culture

Lean Manufacturing requires an atmosphere of experimentation. Failures are expected and planned for. Employees must know they will not lose their job

simply because they tried and failed.


Do you have a change friendly culture4

Ignore it, (or worse, steal it) they’re not paid to think. the cause?

Great! Let’s give it a try.

Do You Have a Change-Friendly Culture?

When an employee has a suggestion, your (or your

manager’s) response is;

OR

Mass Production Culture

Change-friendly Culture

Toyota provides training, tools, and boundaries, then solicits and implements 95% of all employee ideas for improvement. Toyota employees average 75 ideas per year, the typical American employee; only one every other year.


Can Workplace Culture Change? the cause?

  • Cultures are not static, they are constantly changing.

  • The leaders of an organization set the tone for the culture.

  • Change requires a strong commitment and daily follow through on the part of top management.

  • When the leaders change their behavior and attitudes, the rest of the organization will follow.



The leader as bus driver
The Leader as Bus Driver the cause?

The leader’s job is to “drive the bus”

  • Get the right people on the bus

  • Get the wrong people off the bus

  • Make sure the right people are in the right seats

  • Know where the bus is going

  • Be committed to getting the bus to its destination

  • Provide resources to ensure trip’s success


Leadership
Leadership the cause?

Being a great leader means knowing;

  • When to use a mirror or a window

  • Your employees and what motivates each of them

  • That people change only when they choose to (WIIFM)

  • That communicating change requires absolute honesty

  • That vision is essential


Leadership1
Leadership the cause?

Being a great leader means knowing;

When to use a mirror or a window

  • When things go wrong, use a mirror

    • Look inward to discover what you did not do correctly or what you could have done to prevent the problem.

    • Take responsibility for failures (In a Lean culture, --IT rolls uphill)


Leadership2
Leadership the cause?

Being a great leader means knowing;

When to use a mirror or a window

  • When things go right, use a window

    • Look outward to the shop floor to acknowledge and reward achievement

    • Give credit (loudly, often, and meaningfully) to those who improve the success of the company

      Suggested reading; Good to Great by Jim Collins


Leadership3
Leadership the cause?

Being a great leader means knowing;

People change because they choose to

  • If you tell someone, they might remember

  • If you show someone, the might remember better

  • If you involve someone, they will become invested in it. Then “It’s” success is important to them

  • Don’t forget the power of WIIFM


Leadership4
Leadership the cause?

Being a great leader means knowing;

Communicating change requires honesty and openness

  • Secrecy is a bad strategy; if people don’t know the details, they will invent them (and not for the better!) rumors will fly.

  • If they don’t know what’s really going on, they cannot help make it come out right.


Leadership5
Leadership the cause?

Being a great leader means knowing;

Communication is a two-way street.

  • Formula for change leadership communication:

    • Step 1: Give accurate and complete information

    • Step 2: Ask questions

    • Step 3: Discuss until all parties understand/agree

    • Repeat steps 1 - 3 often and with everyone, indefinitely.


Leadership6
Leadership the cause?

Being a great leader means knowing;

Vision is essential

  • Change comes when we intensely envision the desired future state. Once the vision is clear in our minds, we intuitively take the necessary steps to make it reality.

  • Without a vision, the bus has no place to go; no change will occur.



Why people resist change1
Why People Resist Change the cause?

  • There is a basic human need to be right.

    On a primal level:

    Being right = surviving

    Being wrong = being dead

  • To accept change means to accept that you might have been wrong in the past

  • If one is surviving now, then what one is doing now is right, to change means to risk being wrong, and not surviving.


Why employees resist change
Why Employees Resist Change the cause?

Each person has a different capacity or willingness to accept change based on;

1. Personality - especially; the strength of the “I am right” characteristic

2. Past experiences with change

3. Degree of perceived “loss”

4. Level of change the person is currently experiencing.


Why employees resist change1
Why Employees Resist Change the cause?

1. Personality

Most companies employ a few workers and/or managers that could be called concrete-heads.

Their belief is that survival depends on resisting any change. They have the ability to single-handedly kill a Lean initiative. To be successful, an organization must get these people out of the way of “the bus.”


Why employees resist change2
Why Employees Resist Change the cause?

2. Past Experience With Change

Even if your employees have never been laid off due to some “re-engineering” project or another, they know someone who has. The here and now is comfortable, the future is unknowable, frightening. Employees can be expected to embrace a change initiative only to the extent that they trust the management.


Why employees resist change3
Why Employees Resist Change the cause?

3. Degree of Perceived “Loss”

Your employees have built empires within the company. The change may signify a loss of one or more things:

  • status

  • close working relationships with particular employees

  • recognition for past work

  • experience level

Mine!


Why employees resist change4
Why Employees Resist Change the cause?

4. Level of change the person is currently experiencing

Three general classifications of change are;

  • Global change

    technology, politics, inflation, etc.

  • Organizational change

    initiatives and changes in the workplace

  • Personal Change

    relationships at work and home, finances, health, bad hair days, etc.



Management strategies for change
Management Strategies for Change the cause?

  • For managers, negotiating change successfully is a matter of displaying excellent leadership skills and knowing when to use each of these four strategies:

    • Pummel

    • Push (Now hear this!)

    • Pull (What do you think?)

    • Pamper


Pummel
Pummel the cause?

  • Characterized by an attitude of, “Do what I say or you will die (be fired).”

  • Organizations that rely mainly on Pummel as a management strategy use fear as the motivating emotion.

  • Employees are viewed at best as cogs in the works, at worst, slaves.


Push the cause?

  • Characterized by an attitude of, “Do what you must or the company will die.”

  • Organizations that rely mainly on Push as a management strategy use force and fear (but not brutality) to accomplish positive action

  • Employees are viewed as workers with a conscience.


Pull the cause?

  • Characterized by an attitude of, “Do what you must to achieve the future you dream of.”

  • Organizations that rely mainly on Pull as a management strategy use inspiration and empowerment for people to motivate themselves.

  • Employees are viewed as human beings with free will.


Pamper
Pamper the cause?

  • Characterized by an attitude of, “Do what you feel like doing.”

  • Organizations that rely mainly on Pamper as a management strategy hope that the workers will perform but do not hold them accountable.

  • Employees are viewed as “entitled” which leads them to act like children and eventually renders them useless or worse.


Using the four management strategies
Using the Four Management Strategies the cause?

Pummel has virtually no use in a “change” culture.

A metaphor for Push is the burning oil platform. Push is best used to spur people into action to save themselves. Change (jump into the water) or die (company fails). It is the second most useful strategy in a “change” culture.


Using the four management strategies1
Using the Four Management Strategies the cause?

Pull is the most useful strategy for managing in a “change” environment. It challenges workers to come to their own rescue. Top management provides a strong vision to which they are committed and empower the workers to make it real. Pull can permanently change “workers” into “movers and shakers.”

Pamper, like Pummel, has no significant value in a “change” culture.


What does change require
What Does Change Require? the cause?

Vision - Where are we going?

Skills - The knowledge (tools) to get the job done

WIIFM - Why should the employees care?

Resources - The time and equipment to get the job done

Action Plan - The detailed how-to to get from here to there


Vision the cause?

Skills

WIIFM

Resources

Action

Plan

Good

Change

+ + + + =

Skills

WIIFM

Resources

Action

Plan

Confusion

+ + + =

Vision

WIIFM

Resources

Action

Plan

Anxiety

+ + + =

Vision

Skills

Resources

Action

Plan

Slow/No

Change

+ + + =

Vision

Skills

WIIFM

Action

Plan

Frustration

+ + + =

Vision

Skills

WIIFM

Resources

False

Starts

+ + + =



Typical organizational changes
Typical Organizational Changes the cause?

  • Company-wide involvement in quality.

  • Management commitment to--and involvement in-- the quality system.

  • Management by data

  • Customer focus



Overcoming “Reality” the cause?

The philosophy is counter-intuitive and Lean principles fly in the face of long-held traditional beliefs. Not only will you change the way you do business, but like Alice in Lewis Carroll’s books, you and your employees will sometimes find your world turned up-side-down.


The “Alice in Wonderland” Aspects of Lean the cause?

  • In a Lean culture;

    • Waste is the enemy, not your competitors

    • (or management)

    • Job security comes from sharing what you know

    • The better people around you do, the more money you will earn

    • More is not better

  • Do or make things when they’re needed, not before

  • Your job is to think, not to just do what you’re told

  • Slow things down to speed them up

  • And especially this one: Problems are good!


Problems are good
Problems are Good?!! the cause?

  • You cannot eliminate problems if you can’t find them. Problems are seen as positive opportunities to make significant improvements. Shoot Reward the messenger.


Culture of Waste Elimination the cause?

Be careful what you reward, as you will surely get more of it.

Does your culture reward fire fighters instead of problem preventers? Most do.

Rewarding fire fighters makes near disasters not only acceptable, but desirable to those in

middle and lower management - more opportunities to be a hero.

“Smokey the Bear” types are overlooked.


Culture of Waste Elimination the cause?

In your business, waste elimination activities (Lean implementation activities) must be highly valued and rewarded.


Some final notes

Some Final Notes the cause?


Getting started on the right cultural foot
Getting Started on the Right Cultural Foot the cause?

  • Delay roll-out of Lean until enough of the right people are ready to accept it.

  • Perform assessment to determine whether elements of trust, communication, and willingness to change are present.

  • Resolve any deal-breaker issues that are revealed from the assessment.

  • Know which employees are most willing and able to embrace the initiative and lead peers.

  • Reward those so identified (with appropriate motivation for that individual)


Excess People the cause?

When you find you can do it better, faster, with less people;

Find more work for the people you have

Train and reassign workers to Continuous Improvement Teams

Use workers whose jobs have become obsolete to expand the Lean Enterprise to include suppliers and customers.

Philosophy

Technology

Culture


Re: Reducing Workforce the cause?

Best to lose staff only through attrition but if reduction of workforce is a necessity;

One time only, prior to roll-out

Eliminate concrete-heads, dead weight, and truly un-redeemables, ie, those completely disaffected.

Communicate with remaining staff about reasons for lay-off. Reassure them that only employees who do not “get on the Lean bus” will be let go in the future.

Never lay off as a result of lean improvements.

Philosophy

Technology

Culture


Re-Enforce The Lean Culture the cause?

  • There will be hiccups along the way

  • expect them,

  • learn from them and

  • communicate, communicate

  • Make ‘lean behaviour’ part of the selection and promotion criteria within the firm.

  • Help the Lean thinkers become the dominant opinion formers.


Conclusion
Conclusion the cause?

  • It is the cultural and change issues (people issues) that cause the vast majority of Lean and Quality initiatives to fail.

  • Once you have established a culture that is conducive to positive change, the rest is easy!


ad