These are the slides for the webinar delivered on 8-9-2016. The recording is available at http://www.slideshare.net/KarenMartinGroup/lean-leadership-part-1-of-3-webinars Over the 16 years that we've been providing support to organizations at nearly every stage of the Lean journey, leadership has consistently emerged as the single most important determinant of success. Those organizations with deep leadership engagement soar, while those who don't fail to experience significant transformation. In this first of three webinars, Karen shares the perspective and content that she and her team use when working with executives and senior leadership teams within the firm's clients. She review the system of Lean principles, management practices, and tools, and then focuses on 6 of the topics leaders most commonly misunderstand or are unaware of: 1. Three of the core values that underlie Lean management 2. Key performance indicators 3. Visual management 4. Work standardization 5. Go and see (Gemba) management 6. The one environmental "don't" that destroys all Lean effort Not a subscriber? To receive automatic notification of future webinars, gain access to our library of free assessments and templates, and receive our occasional newsletter with improvement tips: http://www.ksmartin.com/subscribe.

2. Today’s Agenda
© 2016 The Karen Martin Group, Inc. 2
• Components of Lean management
• Foundational core values, mindsets &
practices leaders need to adopt to support
the Lean journey
• What you can do (or help your leader do)
to adopt Lean leadership mindsets and
practices

3. Specific Topics Leaders Commonly
Misunderstand or Are Unaware of
1. Three of the core values that underlie Lean management
2. Key performance indicators
3. Visual management
4. Work standardization
5. Go and see (Gemba) leadership
6. The environmental "don't" that destroys Lean efforts
© 2016 The Karen Martin Group, Inc. 3

4. Everything rises and falls on
leadership. — John C. Maxwell

5. Effective
Leadership:
Nature or
Nurture?
© 2016 The Karen Martin Group, Inc. 5
Continuous learning,
challenging one’s mindsets,
experimentation & practice

6. The Lean Management Journey to Excellence
© 2016 The Karen Martin Group, Inc. 6
Lean
Thinkers
Lean
Management
Practices
Lean
Leadership
Lean
Processes

7. © 2016 The Karen Martin Group, Inc. 7
Lean
Management

8. Lean Management Components
Core Values / Principles / Philosophy
• Analytical tools
• Value stream analysis & mapping
• Metrics-based process mapping
• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA
• Waste Countermeasures
• Standard work
• Quality at the Source / Error proofing
• 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
Kanban
• Cells / co-location
• Level loading
• Work balancing
• Batch size reduction
• Setup & changeover reduction
• Work segmentation
• Autonomation
• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)
• Value stream management
• Key performance indicators (three levels,
including customer & operational metrics)
• Disciplined process management via clear
owners & KPIs
• Daily kaizen
• PDSA Problem Solving (& A3 management)
• Performance dialogues / huddles / standups
• Go & see (gemba) management
• Humble inquiry
• Continuously seeking voice of the customer
• Purposeful meetings & reporting
• Lean accounting
• Consensus management
• Humility
• Respect
• Curiosity
• Transparency
• Relentless pursuit for
perfection
• Customer value
• Flow / waste elimination
• Just in time
• Visual management
• Work standardization
Lean
Management
© 2016 The Karen Martin Group, Inc. 8

9. Lean Transformation:
People Development Needs
• Lean mindsets (humility, respect, curiosity, etc)
• Gemba-based leadership
• PDSA problem solving
• Strategy deployment
• Key performance indicators (including customer & operational)
Executives
• Lean mindsets (humility, respect, curiosity, etc)
• Gemba-based leadership
• PDSA problem solving
• Strategy deployment & basic Lean tools
• Process management & KPIs
Middle
Managers
• PDSA problem solving
• Waste identification
• Daily kaizen
Front Lines
• All of the above
• Advanced Lean analysis tools & countermeasures
• All else (disposition, business acumen, psychology, etc.)
Internal
Lean Team
© 2016 The Karen Martin Group, Inc. 9

10. Lean Management Components
Core Values / Principles / Philosophy
• Analytical tools
• Value stream mapping
• Metrics-based process mapping
• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA
• Waste Countermeasures
• Standard work
• Quality at the Source / Error proofing
• 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
Kanban
• Cells / co-location
• Level loading
• Work balancing
• Batch size reduction
• Setup & changeover reduction
• Work segmentation
• Autonomation
• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)
• Value stream management
• Key performance indicators (three levels,
including customer & operational metrics)
• Disciplined process management via clear
owners & KPIs
• Daily kaizen
• PDSA Problem Solving (& A3 management)
• Performance dialogues / huddles / standups
• Go & see (gemba) management
• Humble inquiry
• Continuously seeking voice of the customer
• Purposeful meetings & reporting
• Lean accounting
• Consensus management
• Humility
• Respect
• Curiosity
• Transparency
• Relentless pursuit for
perfection
• Customer value
• Flow / waste elimination
• Just in time
• Visual management
• Work standardization
Lean
Management
© 2016 The Karen Martin Group, Inc. 10

11. © 2016 The Karen Martin Group, Inc. 11

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13. 13

14. The #1
Foundational
“Must”:
NO FEAR
© 2016 The Karen Martin Group, Inc. 14
#8 of Deming’s 14 points in Out of the Crisis

15. “People aren’t your problem.
Your problem is that your
work systems and
processes don’t
allow people
to shine.”
© 2016 The Karen Martin Group, Inc. 15

16. The
People
Who Do
the Work
are the
Experts
16

17. Lean Management Components
Core Values / Principles / Philosophy
• Analytical tools
• Value stream mapping
• Metrics-based process mapping
• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA
• Waste Countermeasures
• Standard work
• Quality at the Source / Error proofing
• 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
Kanban
• Cells / co-location
• Level loading
• Work balancing
• Batch size reduction
• Setup & changeover reduction
• Work segmentation
• Autonomation
• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)
• Value stream management
• Key performance indicators (three levels,
including customer & operational metrics)
• Disciplined process management via clear
owners & KPIs
• Daily kaizen
• PDSA Problem Solving (& A3 management)
• Performance dialogues / huddles / standups
• Go & see (gemba) management
• Humble inquiry
• Continuously seeking voice of the customer
• Purposeful meetings & reporting
• Lean accounting
• Consensus management
• Humility
• Respect
• Curiosity
• Transparency
• Relentless pursuit for
perfection
• Customer value
• Flow / waste elimination
• Just in time
• Visual management
• Work standardization
Lean
Management
© 2016 The Karen Martin Group, Inc. 17

18. Purpose of Visual Management
© 2016 The Karen Martin Group, Inc. 18
1. Communicate work steps: who,
what, when, where & how
2. Communicate status
3. Communicate performance
4. Communicate abnormalities; make
problems visible

19. In a Lean organization…
19
…there’s no guessing about performance…visual management reigns supreme

20. Most businesses don’t know the true score. 20

21. © 2016 The Karen Martin Group, Inc. 21
Key Performance Indicators (KPIs): Three Levels
KeyPerformanceIndicators Corporate
Value Stream
Function / Dept
How are
we doing?

22. Key Performance Indicators (KPIs): Corporate Level
22

23. © 2016 The Karen Martin Group, Inc. 23
Key Performance Indicators: Value Stream Level

24. Key Performance Indicators: Value Stream Level
24

25. 25

26. In a Lean organization…
26
…there’s no guessing about abnormalities

27. © 2016 The Karen Martin Group, Inc. 27

28. In a Lean organization…
28
…there’s no guessing about who, what, where, when, what, how

29. 29

30. 30

31. Lean Management Components
Core Values / Principles / Philosophy
• Analytical tools
• Value stream mapping
• Metrics-based process mapping
• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA
• Waste Countermeasures
• Standard work
• Quality at the Source / Error proofing
• 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
Kanban
• Cells / co-location
• Level loading
• Work balancing
• Batch size reduction
• Setup & changeover reduction
• Work segmentation
• Autonomation
• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)
• Value stream management
• Key performance indicators (three levels,
including customer & operational metrics)
• Disciplined process management via clear
owners & KPIs
• Daily kaizen
• PDSA Problem Solving (& A3 management)
• Performance dialogues / huddles / standups
• Go & see (gemba) management
• Humble inquiry
• Continuously seeking voice of the customer
• Purposeful meetings & reporting
• Lean accounting
• Consensus management
• Humility
• Respect
• Curiosity
• Transparency
• Relentless pursuit for
perfection
• Customer value
• Flow / waste elimination
• Just in time
• Visual management
• Work standardization
Lean
Management
© 2016 The Karen Martin Group, Inc. 31

32. In a Lean organization…
© 2016 The Karen Martin Group, Inc. 32
…all work is standardized

33. Standard Work MUST Be Documented
© 2016 The Karen Martin Group, Inc. 33
• Process steps + job aids
• Highly visual step-by-step how to’s
• Process maps
• Check lists
• Cheat sheets / memory joggers
• Decision trees (If this, then that…)
• Flow charts
• All applicable work standards are included in
standard work

34. © 2016 The Karen Martin Group, Inc. 34

35. Lean Management Components
Core Values / Principles / Philosophy
• Analytical tools
• Value stream mapping
• Metrics-based process mapping
• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA
• Waste Countermeasures
• Standard work
• Quality at the Source / Error proofing
• 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
Kanban
• Cells / co-location
• Level loading
• Work balancing
• Batch size reduction
• Setup & changeover reduction
• Work segmentation
• Autonomation
• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)
• Value stream management
• Key performance indicators (three levels,
including customer & operational metrics)
• Disciplined process management via clear
owners & KPIs
• Daily kaizen
• PDSA Problem Solving (& A3 management)
• Performance dialogues / huddles / standups
• Go & see (gemba) management
• Humble inquiry
• Continuously seeking voice of the customer
• Purposeful meetings & reporting
• Lean accounting
• Consensus management
• Humility
• Respect
• Curiosity
• Transparency
• Relentless pursuit for
perfection
• Customer value
• Flow / waste elimination
• Just in time
• Visual management
• Work standardization
Lean
Management
© 2016 The Karen Martin Group, Inc. 35

36. Gemba-Based
Leadership
36

37. 37
3 Types of Gemba Walks
• Daily management (KPI-based
Leader Standard Work)
• Regular cadence
• 3 levels: supervisor, manager,
senior leader
• Coaching & problem solving
take place “off line”
• Coaching for specific
problem solving
• As needed
• Reactive
• Understand reality
• Understand the whole
• Keep “in the know”
• Identify improvement
priorities
• Being visible
• Proactive

38. Leader Standard Work (LSW): KPI Board Reviews
© 2015 The Karen Martin Group, Inc. 38
Supervisors & Team Leads Middle Managers Senior Leaders
Purpose
Share previous day’s results and
review that day’s plan
Monitor results; confirm that support
functions are meeting commitments to
address issues surfaced by frontline staff
Monitor results; obtain real-time,
objective information (vs. perception);
learn about issues & trends (better
decision making); provide visibility to
frontlines; drive toward rapid problem
resolution; identify coaching needs
Frequency
When
Where
Length
Daily
Beginning of each day or shift
Each work area or dept KPI board
10 minutes
Weekly
Regular cadence; consistent day/time
Each work area or dept KPI board
3-5 minutes per board
Monthly
Regular cadence; consistent day/time
Visit each division
10 minutes per board
Who attends
Supervisor or Team Lead and
frontline staff (max 20 people)
Managers for cross-functional areas
6-8 people
All senior leaders, including C-level
Agenda
• Yesterday’s performance
• Today’s plan (any constraints?)
• Issues or trends to be aware of
• Yesterday’s performance
• Status on requests for support
• Additional support needed
• Performance compared with targets
• Quick resolution of problems?
• Concerning trends? New developments?
Post Meeting
Escalate issues as needed Talk with staff about what surfaced;
assure commitments are kept
Adjust business plan? Provide coaching?
Consider org needs for transformation

39. © 2016 The Karen Martin Group, Inc. 39

40. Leader Standard Work: Gemba Walks
© 2016 The Karen Martin Group, Inc. 40

41. Additional Gemba Walks: Purpose
41
• Understand current reality
• Understand what the team is focused on (what their priorities are)
• Learn about obstacles to staff success
• Surface and correct misunderstandings
• Discover the need for additional improvement
• Communicate and reinforce organizational vision, goals &
priorities
• Assure alignment of department goals and improvement
activities

42. Your Action Plan
© 2016 The Karen Martin Group, Inc. 42
1. Help your teams develop 2-5 KPIs and create dashboards
that show their real-time score.
2. Remove fear from the equation. Problem are gaps. Be
matter-of-fact and non-emotional.
3. Institute regular Gemba walks in every area you oversee.
Discuss KPIs, improvement activities, and corrective action
(e.g., who, what, by when, who else is involved, etc.)
4. Have your teams create written standard work and job aids
for all key processes.

43. © 2016 The Karen Martin Group, Inc. 43
To Learn More…
Reading
• The Toyota Way to Lean Leadership (Liker & Convis)
• The Simple Leader (Meyer)
• The Lean CEO (Stoller)
• Out of the Crisis (Deming)
• The Effective Executive (Drucker)
• The Outstanding Organization (Martin)
Conferences
• Association for Manufacturing Excellence
• Lean Enterprise Institute
• Shingo Institute
Tours – especially outside your industry
Practice, practice, and more practice!

44. Lean Leadership Webinar 2 of 3:
Thursday, September 22 – 11:00 am PDT
Register Now: www.ksmartin.com/webinars
Core Values / Principles / Philosophy
• Analytical tools
• Value stream mapping
• Metrics-based process mapping
• Root cause analysis: Five Why’s, Fishbone,
Pareto, Problem tree, FMEA
• Waste Countermeasures
• Standard work
• Quality at the Source / Error proofing
• 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
Kanban
• Cells / co-location
• Level loading
• Work balancing
• Batch size reduction
• Setup & changeover reduction
• Work segmentation
• Autonomation
• Cross-training / multi-functional workers
• Strategy deployment (hoshin planning)
• Value stream management
• Key performance indicators (three levels,
including customer & operational metrics)
• Disciplined process management via clear
owners & KPIs
• Daily kaizen
• PDSA Problem Solving (& A3 management)
• Performance dialogues / huddles / standups
• Go & see (gemba) management
• Humble inquiry
• Continuously seeking voice of the customer
• Purposeful meetings & reporting
• Lean accounting
• Consensus management
• Humility
• Respect
• Curiosity
• Transparency
• Relentless pursuit for
perfection
• Customer value
• Flow / waste elimination
• Just in time
• Visual management
• Work standardization
Lean
Management
© 2016 The Karen Martin Group, Inc. 44

45. Questions or
comments?
45

46. Your Questions
1. What can lower level leaders within the organization
do to help drive the senior staff to take a more
proactive approach to lean leadership?
2. How do you recommend navigating leadership
changes/turnover (e.g., current leader support Lean,
but is leaving soon; next leader may not want to
embrace an initiative seen as tied to the last
administration)?
© 2015 Jacob Stoller
46

47. @karenmartinopex
www.ksmartin.com/subscribe
47