Lean Success Methodology: How to Make Lean Solutions Stick!
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About this ebook
How to make Lean solutions Stick!
By Dutch Holland, PhD & Duke Rohe, BSIE
Why do most Lean projects fail to produce business value? They dont fail because of the Lean tools and techniques. They fail because the organization does not use a proven methodology for implementation!
This book provides a methodology for implementing Lean: a comprehensive roadmap, a set of methods, rules, and important ideas plus a set of step-by-step procedures for Implementing Lean. The book contains the following
1. An implementation road map with steps from problem analysis to Business Value.
2. The practical and integrated Implementation steps that have been proven to work.
a. What is each Step?
b. Why take this Step?
c. Who should lead this Step?
d. How do I accomplish this Step effectively & efficiently?
e. How do I keep track of all the steps needed for implementation of a Lean solution?
You dont have to be afraid of change any longer! Dutchs work offers entertaining simple solutions that will help you move swiftly and efficiently through the growing pains of organizational change, says Ken Blanchard.
Are you using a proven methodology for your Lean implementations?
Dutch Holland
Dutch Holland, PhD & Jim Crompton, MS ENG are highly regarded as “thought leaders” and as consultants who will tell it like it is. The authors’ collaboration combines management consulting experience in upstream with oil & gas domain expertise into important insights about creation of business value from digital technology. Jim and Dutch are both convinced that the Digital Engineer concept must be made a reality or the Big Crew Change will likely result in both “outdated roles” and replacements that may “fit the roles but not the digital future of the upstream business.”
Read more from Dutch Holland
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Book preview
Lean Success Methodology - Dutch Holland
Copyright © 2014 by Dutch Holland, PhD & Duke Rohe, BSIE.
Library of Congress Control Number: 2013923596
ISBN: Hardcover 978-1-4931-5748-8
Softcover 978-1-4931-5747-1
eBook 978-1-4931-5749-5
All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the copyright owner.
Rev. date: 03/04/2014
To order additional copies of this book, contact:
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1-888-795-4274
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TABLE OF CONTENTS
Preface: The Opportunity and the Challenges of Lean
a. The Lean Opportunity
b. The Challenges of Lean
c. The Solutions
d. An Overview of Organization-wide Lean Implementation
e. Introduction to Successful Implementation of Lean Projects
f. The Purpose of this Book: Successful Implementation of Lean Projects
Foreword: Implementing a Lean Solution
a. Implementing Lean Requires an Organizational Change
b. Understanding organizational change as a series of change projects
d. Identifying the change projects that will drive the organizational change
e. Identifying the change projects within the change projects
f. This book and how it might be used
Chapter One: Introduction to Organizational Change Management
a. The leader’s job is to guide organizational change
b. A universal metaphor for understanding organizational change
c. Understanding organizational change as changing the play
d. Using the theater metaphor to understand the formula for change
e. You know where you are
Chapter Two: Communicate the Vision
a. Construct the Detailed Vision for transition to Lean
b. Construct the Case for Change to Lean
c. Ensure Management Understanding and Expectation
d. Communicate the Vision the Right Way to the entire organization
e. Ensure Employee Translation of the Lean Vision
Chapter Three: Alter Work Processes and Procedures for a Lean Solution
a. Identify Process Alterations Needed for transition to Lean
b. Alter and Test Processes Critical for a Transition
c. Alter Process Measures, Goals, and Objectives to Fit the Vision
d. Alter and Test Work Procedures for Altered Processes
e. Eliminate Old Measures, Goals, Objectives and Procedures
Chapter Four: Alter Facilities, Equipment, and Technology (FET)
a. Identify the FET alterations needed for transition to Lean
b. Alter and test all the FET needed in each transition
c. Alter and test each and every FET control
d. Alter or create written guidelines for all involved FET
e. Eliminate old FET and operating guidelines
Chapter Five: Alter Performance Management
a. Identify / Alter Individual Roles / Goals Needed for transition to Lean
b. Complete One-on-one Contracting for Every Person affected by the Transition to Lean
c. Train All Employees in the Roles they will play in Lean
d. Identify and Alter the System for Monitoring Performance
e. Alter and Communicate Compensation Payoffs for New work
Chapter Six: Manage Change as a Project
a. Develop Project Charter for Executive Approval
b. Set and Communicate Master Schedule
c. Use Week-at-a-time Scheduling with One-on-One Assignments
d. Make One-on-one Transition Assignments
e. Regularly Measure Transition Progress and Re-schedule
f. Confirm, Stabilize and Celebrate the Completed Transition to the New Way of Working with the Lean Solution
Chapter Seven: Maybe the Most Important Chapter of Them All
a. The three Stages of a Lean Project
b. The Design Stage
c. The Implementation Stage
d. The Business Value Stage
Chapter Eight: And in Conclusion
a. The Management Imperative to Lead transition to Lean
b. The Requirement to Successfully lead Transition Projects
c. The message to Managers
Appendix A: Task List for Implementation of a Lean Project
Appendix B: Detailed Steps and Scripts for Selected Chapters
Contact Us
PRAISE FOR THE AUTHORS’ BOOKS
• Double Day Select Executive Program Book Club Alternate Selection
• "You don’t have to be afraid of change any longer!
Change is the Rule offers entertaining and simple solutions that will help you move swiftly and efficiently through the growing pains of organizational change.
"Ken Blanchard, Co-author, The One Minute Manager and Leadership by the Book
• Just brilliant!
In his book Change is the Rule
Dr. Winford E. ‘Dutch’ Holland expands on the metaphor of the organization as a theater company—and it is brilliant! It’s brilliant because it simplifies understanding—it reduces the complexities of organization change to common sense with a very clear ‘picture’ to relate to. It is a very powerful metaphor that is very easily understood and ‘got’ by almost anyone who has ever been to any type of theater presentation.
Rick Sidorowicz From Best of The CEO Refresher on Leading Change
• "What a great uncluttered roadmap for understanding, embracing, and leading change. We have trained over 10 million leaders worldwide, and change is their biggest challenge. This book should be next on their reading list!"
Dr. Paul Hersey, Chairman
Center for Leadership Studies, Home of Situational Leadership
• Why didn’t I think of that
!"
Organization change—on target, on time and on budget… what a concept! How easy it is to forget these fundamentals when we leap off the cliff of organizational change! The basics aren’t new—but they’re organized in a way that you want to slap yourself on the forehead and say
why didn’t I think of that!
Katherine M. Tamer
Vice President and Chief Information Officer, United Space Alliance
• Red Zone Management pulls few punches
A Red Zone loss could mean irrecoverable losses for your company. Among conditions that flag a Red Zone: major shifts in competitive strategy, mergers, culture changes, and implementation of new computer systems. Principles for success under Red Zone conditions include practical advice such as, Put the Best Players in the Game.
Holland points out that if you select your organization’s best for the Red Zone and your key executives are not on that list, . . . you may want to do some re-staffing.
Red Zone Management pulls few punches, and its perspective is likely missing from many a boardroom.
Harvard Business School
Working Knowledge
• Rises above the rest.
These days we are constantly inundated with new books on the topic of management. However, Red Zone Management rises above the rest. It should be required reading for all managers, both to familiarize junior managers with the red zone management concept as well as to fine tune the inherent red zone management skills of senior managers.
Mark A. Wallace, President & CEO, Texas Children’s Hospital
• Must be ‘on the desk’ of a successful 21st century CEO.
Multiple rapid changes, successfully executed, will be the key to the 21st century business. ‘Dutch’ lays it out—change must be managed. To expect transformation without good management is a dream. This is a book that must be ‘on the desk’ of a successful 21st century CEO.
Major General John S. Parker, M.D., Commanding General
USA Medical Research and Material Command, Fort Detrick, Md
▪ A resounding success for the shareholders.
"Red Zone Management is a new, creative and comprehensive
treatment of a complex and seldom understood subject. I could not put the book down until I had finished reading it. The book is packed with case histories of business success and failures with comments for why the outcome was as it was. In the past while being involved in a major merger, my company successfully utilized the principles described by Dutch. The results were that the whole was greater than the sum of the parts—a resounding success for the shareholders.
M. P. Corky Frank, President Marathon-Ashland Petroleum
• Fundamental guidelines for survival
Red zone Management reads like the game plan for a space mission. I worked in the Red Zone for over 35 years and from the moment of launch through crew recovery. Failure in our work was not an option. I worked with Dutch Holland for several years; his new book, Red Zone Management provides the fundamental guidelines for survival in today’s fast moving and unforgiving world. I would recommend it as a basic textbook!
Gene Kranz, Author of Failure is Not an Option
∙ This Stuff Works!
The book has an immediate attention grabber in the opening, What do you want from this book?
It then quickly goes on to give optional reading paths for what you are trying to accomplish. This is a breath of fresh air. The models present a framework that is concise, well devised and eminently re-purposed to just about every conceivable situation. The language is clear, frank and calls attention to a tremendous amount of experience in a non-pedantic fashion. Clearly this is stuff that works! Lean practitioners, traditionalists and agile adherents may debate this framework ever more but here is a plain exposition about something that worked. Bravo!!
∙ Great Change Guide
Excellent guide to Change Management and how to work through all the difficulties encountered. This is especially helpful during this time when remaking yourself is almost required due to the economy. Dutch has simplified without diluting. Highly recommended.
∙ An absolutely MUST read!
This book of Walter Viali and Dutch Holland gives the sensation from page one that the authors are not just writing about theories on how to run a successful organization but rather they take you into their world: Run the business and Change the business are two processes that must work and change together. In a way this is common sense but it is necessary that common sense organizational management changes happen today. The book guides you on what to do, what not to do and how to do each step in an engaging reading. It is obvious how the authors have an incredible experience in the field and a clear vision of what is needed in the future to answer our customers needs.
Their explanations, diagrams and tables are extremely helpful to support the text. Viali and Holland have the capacity to teach complex concepts in a simple way like only those who master the field can do. The Theater metaphor
alone is worth to read this book! I can’t wait to apply what I have learned from this revolutionary masterpiece in our health care setting. Thank you very much to the authors for sharing their knowledge with us and making a better world!
Stefano Sdringola, MD, MHA
∙ Insightful approach
For anyone looking for a simple formula for a rather complex issue, i.e. making change successfully in highly-matrixed organizations that healthcare entities are, look no further. I am impressed by the concise way in which a structured methodology is described which accounts for the very real dichotomy of running an organization: routine maintaining operations and the sustainability of the organization while planning for the future. I am quite aware that this balancing of present and future activities requires finesse at all levels and the roles and interrelationships between organizational tiers.
∙ Great Book
Dr. Holland’s work has been on the cutting edge for many years and the work contained in this new book is no exception. A must read!
∙ Don’t miss this!
Dutch Holland’s idea of two management systems, one for Run-the-Business and another for Change-the-Business, makes an incredible amount of sense. When I read the book, I could immediately see why so many change initiatives stall out or fail to produce. The whole OPM idea with its five functions will surely help companies get organized for Change. A must read… a must use!
∙ Brevity Is The Soul of Wit
The book has an immediate attention grabber in the opening, What do you want from this book?
It then quickly goes on to give optional reading paths for what you are trying to accomplish. This is a breath of fresh air. The models present a framework that is concise, well devised and eminently re-purposed to just about every conceivable situation. The language is clear, frank and calls attention to a tremendous amount of experience in a non-pedantic fashion. Clearly this is stuff that works!
Lean practitioners, traditionalists and agile adherents may debate this framework ever more but here is a plain exposition about something that worked. Bravo!!
∙ Excellent Practical Handbook on Organizational Change
Another practical handbook on organizational change from the masters, Dutch Holland and Deborah Salvo.
∙ Don’t Be Fooled by the Size . . . Big Lessons in a Small Package!
Dutch Holland’s status as a premier thought leader on change management was established in his classic book Red Zone Management
, the definitive resource for managers charged with leading their organizations through challenging business transitions. In Change Management: How to See Change
, Holland presents his proven Run the Business-Change the Business
methodology in a clear and concise format that even the busiest leader would have time to read cover-to-cover.
Of particular value to the reader is the emphasis Holland places on helping employees to see
the change in a personal way—why the change is important to them, how the change will impact their day-to-day activities, and what the change means for their future with the organization. In this book, Holland shows leaders how to move beyond the vague vision statements they often create for public consumption to craft detailed visions that describe how the future organization will need to look to be successful. The vision must have enough meat on the bones
so that any employee who reads it can immediately feel oriented to where they are going and what they must personally do to get there.
∙ Amazing read
"This book is an eye-opener. It allowed me to see the big picture of organizational change, not what we usually focus on, the change in behavior of the individuals in the organization. The authors’ use of the theater metaphor made their points absolutely clear to me… and I can now more clearly see why some changes I have been involved in have not worked!
The writing style is straight forward and easy to ready. There is no new vocabulary to understand before you can get the points in this book! (Hurray! No new acronyms!). The book is not an easy-to-scan mini—book… but a technical book on organization change written in simple and understandable terms. I want every manager working for me to know this stuff!
∙ A Change Management Approach That Works!
Dutch Holland has been involved in major organizational change initiatives for over 40 years. He understands what it takes to succeed at competing for the future. This excellent book provides practical, straight-forward guidelines for leading organizational change. Dr. Holland not only clarifies the role of executives and senior managers, but also stresses the importance of getting everyone involved in both running the business
and changing the business
.
This is a change management approach that works!
∙ Excellent read
Every big system implementation I have been around in my two decades of IT and Operations organizational and people issues that seemed to both bog us down and create hard feelings and frustration. After reading this book with its explanation of
Business Value Architecture," I now realize why we always had trouble! There are many more organizational moving parts that have to be adjusted for a smooth system implementation than I ever realized. Each of those moving parts is explained in simple and practical language. In fact, I didn’t know that some of the organizational stuff I have been around really does have a name and a purpose… and can be influenced.
Dedication by Duke Rohe
This book is dedicated my daughter-in-law Katie: who keeps is the queen of training my grandchildren up in the way they should grow.
Dedication by Dutch Holland
This book is dedicated to the kids in my life: the little kids, Hope, Win, David, Dean and Everett (E.J.) as well as the big kids, Eric, Wendy, and Bear. May they continue to flourish—and God Bless!
A NOTE TO THE READER
Each of us wants content served up
in the way that best works for us. Deep down many of us wish to get the answers in a few clever and memorable sound bites (
If the glove don’t fit, then you must acquit . . . ! or
If they just don’t get it, keep yelling until they regret it!") Sorry, but the explanation of the weighty and important concepts of successful implementation of Lean takes more than sound bites. We have, however, written the book to be as accommodating as possible with four options for gaining value from our content. Good luck!
Option One: I just want the meat,
please!
If you are looking for a proven, easy-to-understand, easy-to-use model for successful implementation of Lean projects, this is the right book. Just read the Foreword to get the idea that successful organizational change is all about breaking change into projects and then completing those projects… on target on time, and on budget. Then read Chapter One to get the key idea that changing an organization is like a theater company stopping an old play and transitioning to a new one… on target, on time, and on budget. And that’s the meat? Yep, that’s all there is to it… except for a few million details we will cover in the following chapters. (Not really, we will only cover a couple of dozen important action steps.)
Option Two: I just want to know about the people-side
of change, please!
That seems to be a reasonable request and we will try to help you out, although we will do so with some reluctance. As you read in Option One above, you should read the Foreword to get the change projects ideas.
Read Chapter One to get the theater company transitioning to a new play idea
. If after reading those two chapters, you still want to restrict your learning to the people side of change, if you just want to know how to transition actors to a new play without worrying about all the trivial and irrelevant stuff like the script, the roles, the sets, props, and the contracts (since none of the aforementioned items affect the actors in a play or workers in an organization.) read Chapter Five: Transitioning the Performance Management System. (If you want to read one more relevant chapter, even though such a chapter will cover stuff that’s a little beyond the people side of change, read Chapter Six which is all about using project management for transition (e.g., people) projects.
Option Three: I want everything, big picture down and the details!!
If that is your goal, just read the book straight through. Take in all the logical steps for what to do, what not to do, and how to do each step
for successful implementation of Lean. Readers will get all the goodies they need to be able to nail the many projects that must be completed for successful implementation of Lean.
Option Four: I am a man on the move and I don’t have time to go through 250 pages. You got to be kidding!
We understand your need for speed, your need to stay above all the details. Just for you and your special case, you can skip the first 150 or so pages and go directly to Chapter Seven. If that chapter doesn’t move you to read more of the first 150 pages, you probably won’t take Lean very far anyway!
PREFACE
The Opportunity and the Challenges of Lean
• Lean, the techniques and culture of removing waste, has been described as The Next Big Thing
for improvement of performance in organizations around the globe.
• However, Lean has a poor record of implementation and a very patchy history of organization-wide adoption in many organizations across multiple industries.
The Lean Opportunity
O RGANIZATIONS ARE LOOKING for ways to improve performance. Of late, the focus for many organizations has been on process improvement with Lean
as the popular strategy for making gains. Lean is a powerful organization and manufacturing model that most experts agree could be the dominant process