4.Lean Transformation

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• Lean Transformation Companies that abandon B&Q practices and adopt Lean principles and practices across the enterprise.
• Batch-and-Queue (B&Q) material is processed in large batches which result in long queue times between operations
• Implementing Lean Organizational ambidexterity, Structural ambidexterity, Contextual ambidexterity
• Contextual ambidexterity Micro processes based on collective and individual behaviors
• Contextual ambidexterity in Lean Entrust lean implementation to line managers and their teams. Facilitates the adoption of lean practices and a deeper long lasting behavioral change.
• Structural ambidexterity Creating separate organizations or structures. Some focus on exploration (innovation) others on exploitation (efficiency).
• Structural ambidextirety in Lean Allocating lean implementation to lean specialists.Segregating lean implementation roles
• Organizational ambidexterity Implementing lean programs to innovate while continuing to operate efficiently.
• Why does Lean Fail Senior managers implement “continuous improvement” and forget the “respect for people part”
• Why does Lean Fail. Lack of Management attitude and commitment, Lack of Employee engagement
• How Do Organizations Learn Governing Variable, Action Strategy, Consequences
• How do leaders act in a crisis New leaders from outside have no emotional connection and shake up the executive level
• What is needed in a crisis situation Patiently develop leaders over decades, Companies dealing with life-or-death crisis do not have decades and must act immediately
• Natural Response in Crisis Executives Shake up, Restructuring & Layouts
• Lean Responses for developing company Leaders Self-development, Coach and Develop Others, Support Daily Kaizen, From Vision, Deep Leadership Capability
• Hybrid Response to a crisis Shake up Executive level → Top level enable lean philosophies → Cost reduction through lean approach →Long-term investment in leadership and OE
• Step 1 in Toyota Building Leadership in Crisis Executive Shake-up, Identify Future leaders, Restructuring & Layouts
• Three Priorities set in a hybrid approach to managing crisis Survival, Building a new culture of accountability, Building a foundation for future excellence
• Things companies require when transforming Capable Leaders to Lead Team Members eliminate waste and develop capacity for continuous improvement., Common metrics to see progress and where to focus attention
• Effects of Contextual ambidecterity Less efficient but more sustained behavioral change. More of a learning process.
• Effects of Structural ambidexterity Preferred if higher efficiency is the goal, but much segregation generates de-responsibilization.
• Wrong understanding of Respect for people Understood as adding cost when in fact it reduces costs.
• Why lean fails Weak link between lean and strategic objectives
• Why Lean fails Wrong selection of lean tools, Narrow view of lean
• Why Lean fails Lack of training and education, Lack of resources
• Why Lean fails Lack of implementation know-how, Resistance of culture change
• Why lean fails Poor communication, Lack of leadership skills and supportive leadership
• Why Lean fails Backsliding to old ways of working, Failure of past Lean projects, Regarding Lean as the “flavor-of-the-mont”
• In a Crisis Radical restructuring, Aggressive cost reduction, culture changes and valuable employees are lost
• Traditional Leaders in Crisis Aggressive Cost Reduction, Stabilize Businesses, Attempt to Regrow Business with Weakened Organization and Few Leaders
• Step 2 in ToyotaBuilding Leadership in Crisis Future leaders equip Leaders with Training, Coaching, tools. Aggressive cost reduction
• Step 3 in Toyota Building Leadership in Crisis Build Operational Excellence through Daily Kaizen and Continued Leadership Development
• Step 4 in Toyota Building Leadership in Crisis Regrow Business with Growing Leaders

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