Thursday 3 September 2009

The Lean Manager

Where can you experience what it feels like to be a lean manager and where can you learn about the personal and organisational changes involved in leading a lean transformation? Listening to the stories of pioneers can be inspiring and visiting lean examples can open your eyes. But for most ordinary folks that is rarely enough. Some of the toughest lessons are learnt from things that did not work.

We are all familiar with the lean tools and analysing and mapping value streams. More and more organisations are recognising that the crucial missing element that makes lean really successful is management. If managers don’t recognise the need to change the way they work and the way they lead then lean is doomed to fail. So the question is of utmost importance.

The answer is to be found in the most unlikely place! Over the summer I read several novels. But the one that stood out head and shoulders for me was The Lean Manager by Michael and Freddy Ballé. J read it from cover to cover, even getting up in the middle of the night to read it! Despite the fact that I had read some of the earlier drafts!

It tells a compelling story that I am sure every plant manager will relate to. A new lean CEO arrives and threatens to close the plant for very good reasons — costs are too high and they let their customers down on a regular basis. But the plant manager rises to the challenge and gradually, step by step wins the respect and support of the CEO to turn the plant round. But he has to learn to do it himself.

The novel is a great device and worth reading for the story alone. However what makes this truly powerful and will make you read it again and again is the wisdom and experience that lies behind it. Scattered throughout are nuggets and really useful checklists that summarise the different aspects of lean management.

This book is the first really comprehensive distillation of the transformation methods developed over the years by Taiichi Ohno’s own department at Toyota, which became the Operations Management Consulting Division, the guardians of the most advanced lean knowledge in the organisation. Freddy Balle, the father of lean at Valeo and several other French auto suppliers, is a lifelong disciple of OMCD and he and his son and author Michael have been reflecting on what they learnt from OMCD in helping many organisations since Freddy retired.

John Shook in a recent blog reflected that probably the most significant breakthrough that Toyota has made is in reversing Frederic Taylor’s separation of thinking and doing. Instead of giving experts at HQ the responsibility for developing and rolling out ever more complicated systems to manage greater complexity they recognised that the real prize lay in engaging everyone in the organisation in improving the processes in which they worked. Toyota calls this “developing people before making products” and “respect for people”. In other words turning every employee into a scientist, using the scientific method to analyse and improve their own work and how they work with their upstream and downstream colleagues.

A process or value stream that is tightly synchronised so that vaiue is createci with minimum delay and waste actually makes all the interruptions visible. It can only work ¡f the staff running the process have the ability to see what is happening so they can respond to it immediately and then over time improve the process by tracking the root causes of persistent interruptions. This in turn changes the role of management from fire-fighting to mentoring the skills of their subordinates and guiding them to think about the right things in the right way. This is the beginning of a very different form of management.

What The Lean Manager does so well is to illustrate why each of the old mental models about the way we manage that we all have in our heads do not work, including telling people what to do. It traces the step by step realisation that lean managers learn by acting their way into a new way of thinking. The lessons are tough but the results are very rewarding. This landmark book will I am sure become a valued guide for every lean manager.

Yours sincerely
Professor Daniel T Jones