“As we approach the (35th) anniversary of Lean, we see that Lean is both everywhere and nowhere. It is seemingly everywhere in terms of its tools and methods, but virtually nowhere in terms of its use as a comprehensive system of management in large corporations.” Bob Emiliani, Ph.D.
Businesses and non-profit organizations alike have used Lean to improve their performance and reach new heights of excellence. When you ask leaders of these organizations how they are going about improving their companies, many will tell you that they are in the middle of a “Lean implementation” or “doing Lean”— and be very happy with the results.
Lean Culture
For those hoping to implement Lean in an organization or business, thinking of it as something you “do” and being happy about your results are two red flags that can derail the transformation process. This fits the classical management philosophy, where the focus is on results and getting things done, rather than process improvement or learning.
When assessing organizations based on their signs of “being Lean” versus just doing “a quick fix,” look for a deployed, intertwined long-term strategy of continuous improvement and people development, working to create an ideal state (or flow) in which the needs of all stakeholders are met — not only shareholders.
It is estimated that only 1-5% of large organizations are considered "Lean." The actual strategy, however, lies in how they manage their corporate culture.
Why are these improvement efforts so unsuccessful? How is it possible that such a popular transformational approach yields no sustainable changes?
Because many leaders rely on classical management thinking, they apply this method while trying to practice lean — instead of building a new culture. As a result, the organization and its culture remain essentially unchanged.
A New Way of Thinking
“Many organizations who are practicing Lean are doing different things, but they are not doing things differently!”
Many Lean practitioners make the mistake of applying traditional management techniques to their new environment, but they should focus instead on how best to apply Lean thinking. When I started my career in the automotive industry almost thirty years ago, I quickly learned how the culture of “the boss is always right” conflicted with my intentions to solve process problems at shop floor, based on facts. Later as a consultant, our Lean program efforts often failed to lead to a sustained new way of doing things — particularly when management changed.
At first, I thought this was a cultural phenomenon of production and that it was inherent to factories. But later I discovered that the classical management thinking is found everywhere — even in health care. This human-centred sector is also managed by such classical management values as "making the budget."
Virginia Mason Medical Centre
In the first years of its Lean transformation, Virginia Mason Medical Center focused on creating flow in processes for patients and health care professionals, which greatly improved quality, lead times and productivity.
However, that was not enough to ensure safety at VMMC. In November 2004 one of their patients, Mrs Mary McClinton, died because of a medical error: she had been injected with the wrong substance, chlorhexidine instead of a contrast medium, both fluids are transparent and were in similar stainless-steel containers. This incident completely changed the way they looked at patient safety within VMMC.
The leaders of VMMC reacted differently than hospital administrators typically do when faced with a problem. They used this incident as an opportunity to learn how they could improve patient safety in the future and did the following:
They gave full disclosure about the problem, not only to their patients, but also in public.
They were blaming their system, but not health care professionals, who had made the mistake.
They installed a patient safety alert system, aimed at identifying discrepancies and other abnormalities in advance of any incident that could put patients or staff at risk. This was unlike the past, when an analysis would be carried out only after something had gone wrong.
Every year, they commemorate Mrs. Mary Clinton as a symbol of the new safety culture of VMMC. As a result, their safety culture has improved dramatically, and the number of incidents that take place is significantly lower. In addition to these benefits, VMMC have saved millions by avoiding claims due to medical errors.
Hidden Strategy
This taught me that the challenge for a successful Lean transformation is no different for any organization: avoiding old habits of thought as you try to develop new processes and culture.
To avoid this mistake, you need to challenge your organization’s way of thinking and make a deliberate shift toward Lean principles. This should be the primary objective of any lean transformation. This is the hidden strategy of these True Lean organizations.
They invest enormous amounts of time and resources in developing leaders who possess the right mindset at all levels of their organization.
Changing the Thinking
“It is easier to act your way into a new way of thinking, than it is to think your way into a new way of acting” - John Shook, former CEO of the Lean Enterprise Institute.
The best way to teach people Lean thinking is by giving them first hand experiences, training them in new routines designed around Lean principles. By participating in hands-on improvement activities under the guidance of a teacher, you can experience success in new ways and deliberately practice what worked best.
The educational process, which ensures that people gain the right experiences and practice correct routines by changing their thinking over time, is a cyclical one. Each new cycle of activity within the Lean system enables deepening and broadening of thinking about, as well as working on, issues related to that particular process.
Start and Never Stop Practicing
“Show them your back!” - Ritsuo Shingo, former President Toyota China
As a leader, you’re the teacher. That means both practicing Lean personally and coaching others to do so as well — with each iteration of your team solving bigger problems than before.
If you want your leadership development process to be successful, make these three practices part of the culture at all levels in your organization. Then never stop observing and revamping as needed.
Transform the way you lead by implementing Lean in your own workplace
The way leaders behave is the most important determinant of how their organizations will change. Leaders can say that learning and growth are important, but behaviours speak louder than words — it's more effective for a leader to ask "what did you learn today?" each time he or she returns from an away trip rather than making statements about what people should be doing.
Key behaviours that exemplify great leaders in Lean organizations include:
Visit the factory floor to see for yourself. Learn more about your processes and make better, informed decisions.
If you’re trying to understand a problem, ask open-ended questions that encourage the other person to give more information and help you get at root causes.
Demonstrate your respect for the people doing the work by showing them that they matter most, and make decisions accordingly.
Develop a management system to identify and solve problems
A Lean management system consists of the various processes and methods needed to set goals, visualize performance, stabilize operations and improve quality, lead times and efficiency. The goal is to make problems visible in order that they may be solved quickly.
To convince people that they are the most important, you will have to design your management system so that it reflects this. This means setting goals with them, from their perspective and based on what's relevant to them, rather than for them.
Make performance visible. Use a dashboard or report to let your team know how they are doing in real time — and challenge them to fix problems quickly if and when they occur. Provide support for the team and make it easy for members to get back on track. Make sure that problems are addressed at higher levels.
Design your improvement processes so that employees can learn by doing
How you lead and execute improvement processes has a lot of influence on how people think about them. Involve every stakeholder from the beginning: get people thinking, let them experiment and make mistakes, then apply what we've learned to create sustainable change.
Give them enough time to make improvements, preferably a predetermined amount each day or week. That way, it's clear that improvement is an integral part of their job and not just another project.
When you hire outside help to develop your team's skills, be sure to collaborate with them. But do not give up ownership of either the transformation process or its outcome, give that responsibility only to yourself.
Learning a new way of thinking means that you must be willing to embrace it. This includes following the new method, sharing problems and receiving feedback, as well as using your creativity to come up with solutions beneficial for all concerned.
About the author: Arnout Orelio has been working in the field of Lean management for more than 25 years and is now a specialist trainer, coach and consultant. He owns his own business called The Lean Mentor. Arnout’s approach to lean leadership focuses on teaching individuals how to bring top performance and high levels of productivity into their own lives. His mission is simple: make time for better healthcare, one life at a time.
References
Byrne, A., The Lean turnaround. How business leaders use Lean principles to create value and transform their company. Mcgraw-Hill, USA (2013).
Emiliani, B., The triumph of classical management over Lean management. How traditions prevail and what to do about it. Cubic LLC, RI, USA (2018).
Kenney, C., Transforming Health Care. Virginia Mason Medical Center’s pursuit of the perfect patient experience. CRC Press, Boca Raton (2011).
Liker, J. with G. Convis, The Toyota way to Lean leadership. Achieving and sustaining excellence through leadership development. Mcgraw-Hill, United States of America (2012).
