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28 June 2010

The Ideal Condition for Lean in North America

(This is the sixth part of this series on the condition of "lean" in North America.  To see the other five parts, check them out in the Archive for this month and last (May).  Thanks for the comments you've sent and the various tweets and comments on Facebook!)

Do you recall the last major emergency your top level team tackled?  I’m talking about an emergency that spanned the entire top level team and required each one of them to dig in to help. Let’s think about that and try to answer a few key questions.

1.            Were you all focused like a laser beam on the problem or issue?  Were some of them distracted or focused on their own agendas?  I would submit that they were not.  In fact, during crises, we tend to align well, setting aside personal agendas and pet projects to pull together with the rest of the team.

2.           What is the communication during this aligned "time" like?  Is it slow and inaccurate and laze faire?  Or, is it concise, rapid and robust?

3.           How is morale during the crisis?  Immediately after the crisis?

4.           How was teamwork as it is expressed in cooperation, collaboration and mission attainment?

5.           What happens when the crisis subsides?  Again, I submit that when the crisis has run its course, the team aligns around personal, departmental goals and objectives and concerns. 

From a human perspective the ideal for "lean" would be a culture of mutual trust and respect that is best represented by the way your team works in the midst of a crisis.   They are cooperating, collaborating, communication and working for the common goal.  Morale is high because they know what is important, the problem clarified their priorities for the moment.  You have engaged and satisfied employees.

From an operational perspective, the ideal for "lean" is satisfied customers, satisfied shareholders and a satisfied community where you do business.  Your processes run smoothly.  As problems occur, the human and operational system stops to contain then remove the root cause.

A short summary might be something like this: engaged, satisfied workforce achieves company goals while company satisfies need of the workforce who achieve company goals...and so on.  The community is a customer as it is the supporting player where your company exists.  From the community, you get great employees who are smart and clever and happy with life.  How can you expect world class if you aren’t working to make the supplier for your people better?

There are many examples of companies who fit the description above.  They are, in my humble opinion, world class companies.  I’ll just focus on two that are near and dear to my heart.  The first is Toyota.

Recent days have seen a flurry of negative sentiment towards Toyota.  Yet, the company just (in May 2010) posted their quarterly profit at $1.2 Billion. Ten years ago, they perfected a hybrid car that has seen three major enhancements prior to their competitors’ first release.  While the landscape at the company has changed because of externals, the internal landscape never changes.  They are consistent and steady.  Bank on them.

One of their best competitors is the Honda Motor Company.  Another consistent and steady force in the industry.

Both companies have lean production. But both companies have the culture of lean or operational excellence.  When you compare them to the big three, the differences are stark.  While GM and Ford have very lean production, lean is limited to the shop floor.  In rare cases, lean is implemented in other process areas, but I think it is safe to say that the heads of GM and Ford have no standard work.

For an example outside of the automobile industry, I often turn to Starbucks.  The business is iconic and started a movement towards coffee as an experience.  From top to bottom, their mission is clear and their culture is strong.  The result: consistent, stable, steady and excellent.

The hallmark of world class is excellence and stability.  Shouldn't "lean" get you to THAT?


Next time I'll explain why I keep putting "lean" in quotation marks.  Until then, pursue the ideal!


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