Friday, February 24, 2012

Lean Transformation - 3 Clues You're Not There Yet

Any major transformation is going to take time, resources, working together, and a whole lot of hard work. But a Lean transformation requires a change in the way people think, and that is why only 2% of Lean adopters prevail.  As noted in the previous post, companies typically focus on the culture or the tools, and usually not on both together. This can lead to confusion, dis-engagement, and the belief that "Lean has failed." Don't give up just yet, but if you think your company is headed there, look for these 3 clues:

Lean is referred to as "lean" (quotations included) and/or LEAN
Lean is not an acronym nor is it some magical potion that will solve all your problems in a 2 hour meeting, so please don't refer to it that way. Lean is a business practice and a way of thinking across all levels of the organization. There is no "lean team" - we are all working together to improve what we do, everyday. In fact, some of the best organizations don't even call it Lean because it has become something every employee does in their everyday work. The Virginia Mason Production System is one of the more famous examples.

Goals are not SMART. Actually, they're not even goals.
The core fundamental of PDSA (continuous improvement) is being able to measure your test of change to see if there was indeed an improvement. In order to do so, goals must be SMART (Specific, Measurable, Attainable, Realistic, and Timely). Most organizations don't have SMART goals at their highest levels. Come to think of it, most companies don't even have goals, they have "initiatives."  For example, if your initiative is to "provide efficient, high quality care to all patients," how could you possibly know you've done so? Now, what if it said, "By the end of FY11, we will provide efficient, high quality care to all patients by decreasing ED to inpatient-care flow time by 30% and reducing the number of re-admits by 50%. That type of goal infuses accountability into each and every staff member in the hospital, creating that "clear line of sight."

Human Resources is not involved
People are not the cause of problems, bad processes are. But most people need help seeing that, they need to learn about value and waste and how a problem is an opportunity. People. Development. Isn't there a department that deals with that... oh yea, Human Resources. A lot of organizations somehow don't see that connection, and can sometimes lead to stepping on others' toes.  By including HR up front, details about Lean thinking can be integrated into employee orientation, training can be more efficient, and the culture change from "firefighting" to "waste surfacing" can be a bit smoother when the department whose major responsibility is people, is involved.

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