The construction industry has been mired in an environment that has been siloed and antiquated for years. The view has been that things have always been done a certain way and there is no reason to change. Meanwhile, numerous industries have embraced lean methodologies and have significantly reduced waste, improved efficiency and delivered higher quality products which meet or exceed customer expectations. Surveys show that at least 50% of processes involved in planning and construction are wasteful. The industry has adopted lean construction methods, which are starting to change an industry that lagged behind others.

Learn more here about lean construction!

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Take a step back in time with a vintage Honda factory tour! Since 1959, Honda has been setting records. They are the largest manufacturers of motorcycles and internal combustion engines in the world. In 2001, they became the second largest Japanese auto manufacturer. Honda also manufactures garden equipment, marine engines, personal watercraft, power generators, and other products. Since its inception, Honda has applied the principles of Lean manufacturing, and this timeless video will take you back and show you how they do it.

Take some time and enjoy a flashback in Lean manufacturing!

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Since 1906, the name Rolls Royce has been recognized as quality and luxury in transportation. Throughout its legendary history, discerning people from around the globe have chosen Rolls Royce vehicles for their transportation. They are understood to be the finest example of luxury and comfort in motor vehicles. Take a few minutes and immerse yourself in the luxury of Rolls Royce.

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The concept of Hoshin Kanri provides clarity and focus to an organization, by aligning strategic goals through all levels of an organization. It creates an organic flow of information which runs through an organization, where goals run down from management, through the mid-level operation to the production floor. In return, the flow reverses and the production floors provides resulting actionable data flowing up through mid-level operations to management, thus providing alignment.

Taking the first step of implementing Hoshin Kanri begins with developing long-range strategic goals for the organization. A good rule of thumb is to limit the strategic goals applied to five or less to be truly effective. It also allows the focus of energy and resources on what efforts are most important to the organization. Remember, if everything is important, then nothing is important. They should also be either evolutionary or revolutionary. Evolutionary is incremental achievements through continuous improvement. Revolutionary is all about taking big strides, making breakthrough changes with dramatic scope. Both types of goals are crucial to the life of an organization.

The next step would be to develop the tactics for implementing the goals identified. This step is the purview of middle management operations. They are the experts at implementing and allocating resources. There should be a respectable period of thoughtful back and forth between management and mid-level management to ensure goals are clearly understood and that there is a strong alignment between tactics and goals. Over time, tactics can be adjusted and should be, as things changes. Results must be measured and calibrated.

In the final stage, production operations at the supervisory and team levels work out the details on strategy and clearly understand the strategic goals. This is where the action takes place and success will be measured. Management and leaders must stay connected with actions being implemented, mainly through Gemba walks and monitoring of production data flowing up from the production floor.

The flow created with Hoshin Kanri closes loops and ensures focus, clarity and highly efficient operations. It allows organizations to be agile and flex to changing situations in an efficient manner.

Learn more about Hoshin Kanri and download a template

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Key Performance Indicators (KPIs) can shape strategy and fact-based decision making inside businesses, only if those inside the organization act on them.  It doesn’t matter how brilliantly you’ve aligned your KPIs to your strategy, or even how brilliantly you have captured and presented the relevant KPIs, if they aren’t used as they were intended. If you aren’t using your KPIs to inform your decisions and drive performance, then you are wasting your time and effort.

Check out this informative video!

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In taking a cue from manufacturing, marketing departments are embracing the principles of lean agile practices. Research shows that over the past five years, 77% of marketing departments have embraced lean agile principles, and 67% of those have shown increases in both revenue and profits. Needless to say, lean agile principles are making an impact in the marketing community.

Please take some time and watch this informative video on the topic!

https://youtu.be/j-r5W_Eq4G4

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The true concept of lean and TPS has two main pillars. These two pillars are respect for people and continuous improvement. Many organizations who try and embrace lean thinking and TPS are often distracted by the tools, instead of focusing on the true strength of lean thinking. Accepting the concepts of the two pillars will allow organizations to challenge everything and embrace the mindset of change.

Check out this informative video on the Two Pillars of TPS and lean!

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The concept of collaborative leadership seems foreign to some professionals new to a leadership role. Most newly anointed leaders anticipate an environment where they are streaming orders down the line and their staff are jumping into action. Things are getting done as long as they seem to be in control, barking orders and expecting complete subordination of their authority.  It is an idealistic world that truly only can be successful in the most limited environments or in times of life-or-death situations. The practice of collaborative leadership can be crucial in times of uncertainty or turbulence, but is also a driving element in the lean manufacturing environment. Simply put, it creates a collaborative environment where people can unite with purpose, with clear vision and a solid set of values.

Leaders practicing in an environment of collaborative leadership have a purpose and vision, with character and values that are unwavering.  These elements blend together and create passion, but that passion must begin with the leader. Others will not follow a leader that lacks passion, simply because they lead by example. This element of passion in leadership creates the spark that drives others to initiate actions independently and step up to the challenge.They are will to take on ambitious responsibilities and accept the risks associated without  fear.

The elements of purpose, character and values brings a leader forward in the work environment. One of the hardest lessons learned in that environment is that they are really never in control. It is understood that people comply with authority when the leader is present. The real key to success is what they do in the absence of authority. Collaborative leadership principles demand leaders that can lead without the safety net of a title, position or authority of a superior. This doesn’t mean that you cut deals or accept substandard performance. It simply means that your drive, passion and commitment inspire others to follow your lead. 

Finally, collaborative leadership focuses on developing people and other leaders at all levels. It instills the concept that everyone is a leader.  Everyone has voice that is respected and that they are expected to take the responsibility for their actions. This means that mistakes are no longer there to be documented and considered as punishable infractions. They become opportunities for learning and development. You must take your people outside of their comfort zones and encourage them to succeed.

There are many elements involved in collaborative leadership. They require a leader to give up their authoritative tendencies, get out of their office and join the work environment they are responsible for. It requires character, passion and the establishment of trust. It is truly the foundation of a successful team and the collaborative process. It is all about the people. 

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Is it time to change the culture of blame in your organization? If you think so, then understand that change only comes when accountabilities change. That means there has to be accountability, from the top to the bottom. Everyone must not only accept being accountable, but be willing to hold people accountable. This is not a culture of blame or hostility. It is simple based on clear cut facts and metrics, that you are either making the numbers or you are not. It’s simple! The change comes when you no long offer excuses or accept excuses, for periods of sub-standard performance.

Jocko Willink is a decorated retired Navy SEAL officer, author of the #1 New York Times bestselling book Extreme Ownership: How U.S. Navy SEALs Lead and Win, host of the top-rated Jocko Podcast, and co-founder of Echelon Front, where he is a leadership instructor, speaker, and executive coach. Jocko spent 20 years on the U.S. Navy SEAL teams, starting as an enlisted SEAL and rising through the ranks to become a SEAL officer.

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No other industry places such a high a premium on quality of service as healthcare. Given the essential requirement of quality in the healthcare industry, consumers expect providers to lead the way in innovation and quality efforts in the services they provide. As a percentage of its gross domestic product (GDP), we spend more on healthcare than any nation in the world. In a study conducted by the Institute of Medicine, preventable medical errors are estimated to result in as many as 98,000 patient deaths each year, with a projected annual cost as high as $29 billion. These errors are believed to be one of the leading causes of death in the US. There has never been a more ripe environment for the innovative and quality improvement methods of lean practices.

Healthcare institutions are implementing lean principles and practices pioneered at Toyota and other industrial companies. The industry is currently undergoing an unprecedented change, as providers are engaged in efforts to bring their practices into compliance with the requirements of the 2011 Patient Care and Affordable Care Act. As a result, healthcare providers are under significant pressure to increase access and reduce costs while improving the quality of patient care. Because of these significant pressures, the industry is seeking innovative ways to improve quality of service and reduce costs. Lean principles and practices are now being implemented in medical environments. We know that Lean offers significant advantages over other quality improvement models by increasing efficiency and reducing waste while simultaneously improving quality of patient care.

Lean practices and principles have the potential to help balance the cost associated with healthcare, increase the job satisfaction of professionals, and fundamentally improve the health of our communities. In the current environment, there has never been a more crucial time for healthcare to operate in the most efficient manner possible, while delivering the highest quality care in a safe manner.

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It is not the strongest or the most intelligent who will survive but those who can best manage change.

• Leon C. Megginson

The modern global economy is fast and dynamic. It is in a constant state of change. The greatest challenge facing leaders and their organizations today is to be able to quickly respond to market change. They must be the catalyst of organizational change that will guide their businesses to market leadership. An organization that is agile and resilient will be equipped to experience sustained success. Sustainable innovation and growth involves solutions to problems that reflect a commitment to economically, environmentally, and socially sound business practices.

In this TED Talk, organizational change expert Jim Hemerling of BCG inspires leaders with smart ways to deal with dynamic change in today’s global business climate.

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Change is a good thing. Leading in an era of constant change can be infuriatingly frustrating. Change is a big part of being successful. Not only is change good, but it’s accelerating at an increasingly rapid pace. Change means that you need to keep adapting. It’s both a survival skill and a success skill. Change is difficult for people. For some of us, it is out of pure laziness. For others, we don’t like the lack of control or the uncertainty of worse outcomes, bruised egos, embarrassment or failing. People also seem to hate losing more than they love winning.

In this TED Talk, organizational change expert Jim Hemerling thinks adapting your business in today’s constantly evolving world can be invigorating instead of exhausting. He outlines five imperatives, centered around putting people first, for turning company reorganization into an empowering, energizing task for all.

Check out this lighting TED Talk on change:

Interested in change management? Check out “When Leading Change Management Initiatives, Watch Out for Complacency“

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Organizing the Deployment

Sigma Sigma deployment is about organizing and planning the implementation of the strategy. If you look to the military as an example, planning and preparation for a deployment is scientific and methodic. Forward thinking planners have studied and visualize the deployment. They have experts that use standards and table of data that have been proven over time to be accurate. Resources and staffing are assigned based on the mission. Timetables for the deployment are established, and sources are put into motion in order to meet the objectives of deployment with perfect precision. Personnel understand the mission and are trained to the highest standards prior to deployment. When the date arrives, all elements come together in perfect harmony and deployment plans are precisely executed. Leaders expect the unexpected and have allowed for flexibility to adeptly pivot to meet the mission of the deployment. In the end … mission is accomplished in the deployment phase.

Precision in Six Sigma Deployment

When you look at it, there is very little difference between a military deployment and the deployment of a Six Sigma program. Six Sigma is a methodology that is rooted in accuracy and precision, much like the military. Six Sigma uses tools and methodologies that are tried and true, known to achieve success when practiced appropriately. Experts agree that implementing a successful Six Sigma deployment strategy requires planning and training, based on an effective infrastructure. Deployment strategies and structure are based on the DMAIC (Define, Measure, Analyze, Improve, Control) methodology:

D: Define the strategic direction of the organization
M: Set measures for the strategic objectives of the organization
A: On a continual basis, collect data on the measures set and analyze using Six Sigma tools and techniques
I: Identify the opportunities for improvement and convert them to Six Sigma projects for improvement
C: Set up a management control action of continuous reviews on the improvements made on Six Sigma projects

Executing the Plan

Once you have executed the DMAIC methodology, your deployment will be on track and focused on accomplishing the mission. Just like in military planning, you have ensured that all Six Sigma resources and personnel are trained and prepared for deployment. All of the tools available to a Six Sigma professional have been rehearsed and are fully implemented. As the deployment is implemented, everyone from the Champion through the leaders are fully engaged to ensure that success is achieved and you can declare … MISSION ACCOMPLISHED!

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Scorched Earth Policy

Are you really focusing on the details in your business? So many leaders and entrepreneurs are missing the details that make a difference. Business is a “games of inches” and success is measured in fine increments. Unfortunately, many business and leadership models encourage you to stay focused on the “big picture” and the little things will take care of themselves. Some believe that the small details are time wasters and not worth paying attention to. This style unfortunately is leaving scorched earth across the landscape of the business or industry. Is it time to make a change and try the Kano Model?

Redefining the Process Using Kano Model

If you’re open to a different approach that could bring a new energy to your business, the Kano Model is worth considering. The Kano Model is a technique developed by Dr. Noriaki Kano to help understand the varying levels of value that customers place on different features of a product or service. Dr. Kano, alongside with his colleagues at the University of Tokyo, established a framework that can be used to assess customer satisfaction. By using this model and focusing on the smallest of detail in every aspect of your business, you can actually address problems before they present themselves and cause disruption.

Elements of Success with the Kano Model

There are three elements of consideration when using the Kano Model. When using this system or model, everyone is involved in finding improvement ideas. That is being proactive with the Kano Model. You don’t wait for an issue to present itself, before you bring forward the issues and the answers need for resolution. Here are the 3 elements to consider:

1. Dissatisfiers – These are products or services that are expected by the customer and when not fulfilled, they create significant disappointment.
2. Satisfiers – These are elements of service or a product that can either increase or decrease customer satisfaction.
3. Delights – These are features that absolutely delight customers. These features add premier or custom value to the product or service.

The biggest challenge that businesses face is how to delight the customer with a product or service, without spending much money.

Turning the Tide with the Kano Model

Businesses and leaders that are firmly committed to improving quality and customer service utilizing the Kano Model must be able to identify challenges by one source alone – the customer. Understanding the challenge leaves you no other recourse but to implement change that reduce or eliminate the challenges addressed by the customer. You can now turn the tide of your “scorched earth” leadership and focus on what is most important. Pay attention to the smallest detail and focus on the customer.

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When you gather a room full of Lean Six Sigma practitioners discussing projects, the one word that always creeps into the conversation is culture. If you discuss the reasons why projects succeed or fail, culture seems to be the point that makes a difference. Without much debate, it can be agreed that an organization’s culture has a major impact on Lean Six Sigma projects and is crucial to quality. The problem comes to mind that we cannot really accurate measure or even define what exactly culture is. Without being able to put our hands on it or scientifically define it, it becomes an elusive factor, which has significant impact.

Corporate culture is defined as the pervasive values, beliefs and attitudes that characterize a company and guide its practices. To some extent, a company’s internal culture may be articulated in its mission statement or vision statement. Whether we align our strategy with our existing culture or seek to change our culture to fit our agreed strategic plans will depend on what view we take of culture. Trying to measure culture, we can look at it from two different perspectives:

1. External – The culture is derived from a variety of roots and is largely unchangeable. It is influenced by factors brought into the workplace, such as religious beliefs, family beliefs and company lore embedded in the values.
2. Internal – Based on the behavior of the people in the organization, who can be led and changed as often as possible to achieve the desired results when there is a need for major change.

Understanding people’s behavior is a necessary prerequisite therefore whichever view we take of culture.

For a Lean Six Sigma practitioner, understanding the culture of a corporation and what influences it is crucial to success. Our practice is based upon facts and scientific outcomes, but understanding the intangible is just as important. There will continue to be lengthy debates about the impact of culture in our practice, but it can be agreed that culture impacts outcomes greater than any other factor we face.

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