We traditionally see an organisation as a collection of departments or
activities, each managed separately and each separated from the rest by
inventories or time buffers between them. Performance is improved by
setting targets and budgets. When these are not met we change the
managers and if that does not work we restructure the organisation. We
instinctively reach for structural solutions because they are quick and
relatively easy. However the underlying processes and cost structures
remain more or less unchanged.
When I walk round any organisation I see it as a collection of customer
processes (if it is a service delivery organisation like a hospital), design
and production processes (creating the value the customer is paying for)
and many support processes that enable these value creating processes to
flow. The task is to identify the value in each of these processes, to see
and manage the end-to-end flows and to synchronise the support flows.
If I can not see the end-to-end flow through production, then neither can
employees and managers. So the first task is to help them see their
processes and to uncover the reasons why they do not flow. Quite often
this means looking at the impossibly complex mix of products they are
attempting to flow through their processes. It also means challenging the
batch logic of their planning systems trying to schedule every product or
batch through every operation. Getting over this hurdle creates the
conditions where we can begin to flow most products through the entire
process. It also creates the stability necessary to develop standard
operations in every process step, which is the baseline for continuous
improvement.
As well as looking down at individual processes, I also want to fly a little
higher and look down at the organisation as a whole. What are the major
flows through the organisation and how do all these processes interrelate?
I have in mind a fishbone diagram, overlaid on the organisation chart. The
value creating processes form the backbone and all the support processes
are the fins. Once we can see how an organisation flows then I am sure
we will see even more opportunities for improving it.
The distinctive thing about lean thinking is that it derives from observing
best practice organisations and not from theory (which is why academics
have such a hard time understanding lean). The lean principles distil the cumulative experience of thousands of people who have spent their
working lives solving the problems that enable processes to flow, and to
do so in line with customer demand.
The core expertise required to create and improve processes is a scientific
approach to problem solving close to its source. Every problem is an
opportunity to improve the process and every problem is also an
opportunity to develop your people. The two go hand in hand.
So the second thing I look for is how good the organisation is at seeing
and surfacing all the interruptions and hiccups in their processes. Are
these recorded as they occur and what are the processes for responding
to them? Are they delegated to an expert group to solve or is everyone
involved in some kind of problem solving activity?
If so, is there a common approach to problem solving across the
organisation and a common language for communicating the diagnosis
and the results? Is there a policy deployment framework for aligning and
prioritising problem solving activities in line with the business goals of the
organisation?
More than anything else do managers lead by developing the abilities of
their staff to solve problems, at every level in the organisation and
throughout their career? Do employees look up to their superiors for the
answers to problems or do managers guide their staff to find the right
solution by asking the right questions?
Answers to these questions reveal the real management challenge and
opportunity from lean thinking. Process thinking is fundamental to
delivering increased value to customers at lower cost. But this in turn
relies on an infrastructure for communication and problem solving and a
management committed to continually developing the problem solving
capabilities of its people, from the top to the bottom.
Yours sincerely
Professor Daniel T Jones
