1. LeanSigma ® Fundamentals Module 8 –Lean Leadership and Getting Started

2. Agenda Lean Leadership – The Social Architecture The Toyota Way Rules in Use Getting Started © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 2

3. Lean’s success will depend on tools and people. Tools are important, but the unspoken rules that are built into an organization are more fundamental. What is actually being practiced, is what’s “IN USE”? 3 © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

4. Toyota suggests the best way to develop the social architecture. The right approach will yield the right results Develop people as leaders Solving root problems drives organizational learning © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 4

5. Trust the Lean tools to drive results. Create continuous process flow to bring problems to the surface Use “pull” systems to avoid overproduction Level out the workload Build a culture of stopping to fix problems to get quality right the first time Standardize tasks are the foundation for continuous improvement and employee engagement Use visual controls so no problems are hidden Use only reliable, thoroughly tested technology that serves your people and processes © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 5 Reference: Liker, The Toyota Way, 2004

6. Develop leaders who can inspire others. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others Develop exceptional people and teams who follow your company’s philosophy. Respect your extended network of partners and suppliers by challenging them and helping them improve © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 6 Reference: Liker, The Toyota Way, 2004

7. Solving root problems drives organizational learning. Go and see for yourself to thoroughly understand the situation (genchi genbutsu) Make decisions slowly by consensus, thoroughly considering all options; implementing decisions rapidly. (nemawashi) Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen) © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 7 Reference: Liker, The Toyota Way, 2004

8. Successful Lean companies act differently. Everyone is a “Supplier” to some “Customer”. Everyone is a “Customer” to some “Supplier”. Everyone is focused on serving the ultimate customer. Everyone agrees on how things are done. Everyone is a respected contributor. Everyone keeps finding improvements. 8 © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

9. Suppliers and customers can be both internal and external. Supplier Customer Information Product or Service Ultimate Customer 9 © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

10. Lean companies follow some basic rules. Rule 1 – Work should be standardized for each individual. Rule 2 – Understand the connections between all “Suppliers” and “Customers” Rule 4 – Improvements should be led by a Lean leader and performed with front-line employees. Rule 3 – Flow Paths should be simple followed as designed. 10 © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

11. Take no action and nothing will happen (not seeing is not knowing) First, try it with the knowledge available Improve upon the results Base analysis on the facts (data) The germ of the next action (kaizen) will sprout from it This leads to quick and elegant solutions 11 “Quick and simple is better than slow and elegant” © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

12. One of the best ways you can help Lean at IMS is to manage resistance to change. Management attention Increasing resistance Increasing cooperation Neutral Early adopters Anchor draggers "Uncommitted Mass" Critical mass Management attention Increasing resistance Increasing cooperation Neutral Strong pull from early adopters Traditional Situation Forcing Change © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 17

13. Overcoming Resistance requires a definite plan: Communicate the initiative & rationale Set Goals and define roles Measure key performance Identify and close performance gaps Create Incentives and Celebrate Differentiate: Define / Execute consequences The plan must be supported by Company-wide Values, Behaviors and Leadership! Some resistance is managed at the program level. © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 18

14. Stakeholder Analysis Begin to Build a Common Vision 14 © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

15. How will you become a Lean evangelist when you go back to your organizations? © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. 19

16. Just do it. “The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting on the first one.” - Mark Twain 16 © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

17. Thank You © 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group. Guidon Performance Solutions, LLC 2550 N. Thunderbird Circle, Suite 317 Mesa, AZ 85215 866-986-4414 www.guidonps.com 17