Also by Greg Lane Made to Order Lean – Excelling in a High Mix, Low Volume Environment Mr. Lean Buys and Transforms a Manufacturing Company – The True Story of Profitably Growing an Organization with Lean Principles Co-authored by Greg Lane Toyota by Toyota – Reflections from the Inside Leaders on the Techniques That Revolutionized the Industry Copyright © January 2013 Greg Lane All rights reserved. ISBN: 0615731597 ISBN-13: 9780615731599 eBook ISBN: 978-1-63001-799-6 Library of Congress Control Number: 2012954459 Strategic-Leaders.com, Stockton, CA This book contains information obtained from authentic and highly regarded sources. Reprinted material is quoted with permission, and sources are indicated. A wide variety of references are listed. Reasonable efforts have been made to publish reliable data and information, but the author and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system without permission in writing from the publishers. The publisher makes no representation, express or implied, with regard to the accuracy of the information contained in this book and cannot accept any legal responsibility or liability in whole or in part for any errors or omissions that may be made. For my father’s advise and devotion to editing and critiquing. For the support and understanding of my wife Sonia and my daughters Sofia and Rebeca. Table of Contents Introduction Executive Summary Practically Speaking Chapter 1: Most Fail Why Lean Fails Is Leadership Responsible for Success? Defining a Successful Lean Transformation Reasons for Lean Failures Taking a Tools Approach Lack of Consistency in Purpose without Strategy Deployment Missing the Cultural Transformation Plan Not Changing the Metrics and Expectations Managing Rather than Leading Leadership Not Understanding the Commitment Not Creating a New Support Structure Confusion Between Implementing Lean and Maintaining Existing Expectations Not Creating Stakeholder Consequences Distrust Cookie Cutter Approach Leads to Unsuccessful Transformations Summary Chapter 2: Properly Deploying Your Strategy Steps to Cultural Transformation Strategy Deployment: What It’s Not Strategy Deployment: What It Is An Overview of Strategy Deployment Typical Reasons for Failure to Deploy a Strategy Why Use the Strategy Deployment Matrix? Realistic versus Ideal Implementation Additional Reasons Strategy Deployment Fails Summary Chapter 3: Implementing the Strategy Deployment Matrix Roles and Responsibilities Strategy Deployment Matrix: a How-to Guide Drafting the Top Portion of the Strategy Deployment Matrix The Objectives Row You Must Have at Least One Growth Objective The “Why” is Vital to the Organization The Metrics Row Inventory Receivables Overall Equipment Effectiveness The Indicators/Processes Row Involving the Departmental Managers Department Managers’ Involving Their Teams Advantages of the Strategy Deployment Matrix Over Other Methodologies Possible Links with the Strategy Deployment Matrix Criticality of Follow-up on Culture Change Summary Chapter 4: Cultural Considerations Society’s Culture Organizational Culture An Example of Cultural Disconnect Rewriting Job Descriptions Properly Communicating Private Offices Restrict Open Communication A Word on Coaching Summary Chapter 5: Your Cultural Transformation Plan Quantifying Resistance to Change Defining Mentality How Cultural Change Succeeds How Cultural Change Can Fail How to Create Awareness Feedback Analysis Hands-On Workshops Book Reviews Awareness of Psychological Make-up Summary Chapter 6: Analyzing Your Current Culture and Defining Your Desired Culture Concepts Defining an Organization’s Culture How to Analyze Current Culture Subcultures within a Culture Identifying Habits that Hold You Back Determining the Desired Mindset Defining the Desired New Culture Objectives Written into the Cultural Transformation Plan Summary Chapter 7: Analysis for the Cultural Transformation Plan Personal Awareness Created through Self-Assessments Key Areas for Creating Awareness CEO Characteristics versus Organizational Culture Utilizing Behavior and Personal-Effectiveness Assessments Big Five Personality Inventory (Goldberg): The Link Between Personality and Behavior DISC Assessment: Behavior in Environments and Situations The ROPELOC: Review of Personal Effectiveness Myers-Briggs Type Indicator: Assessing a Team for a Balance of Traits and Behaviors Other Assessment Tools for Consideration Possible Actions/Solutions for Personality Traits Possible Actions/Solutions for Decision-Making Traits Evaluating Open versus Closed Mindset Committing to a Plan (Awareness/Analysis and Planned Actions) Summary Chapter 8: Intuitive versus Analytical Thinking Defining Intuitive and Analytical Thinking Why Is Intuitive versus Analytical Thinking Important? When Is Expert Intuitive Thinking a Risk? Deciding When Analytical thinking Is Necessary Cultural Change Affected by the Style of Decision-Making Finding the Balance for Your New Culture Presentation of Information Affects Decision-making Transforming Ideas Into Your Cultural Transformation Plan Summary Chapter 9: Leading Without Power Leadership Is All About the Words