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ManagingCultureandChangeforSuccessfulQualityandLeanManufacturingImplementationspresentedtoASQSection702October15,2003byCynthiaOlsonSystemsQualityConsultingTonight’sAgenda•WhytheAbilitytoChangeisImportant•AboutCulture•IsYourCultureChange-friendly?•LeadershipforChange•WhyPeopleResistChange•ManagementStrategies•KeyChangesRequiredforISO9000Implementation•KeyChangesRequiredforLeanImplementation•SomeFinalNotesWhytheAbilitytoChangeisImportantWinstonChurchillonChange“Toimproveistochange;tobeperfectistochangeoften.”WhatDarwinReallySaid...“Itisnotthestrongestofthespeciesthatsurvive,northemostintelligent,buttheonesmostresponsivetochange.”CharlesDarwinAdaptorperish,nowasever,isnature'sinexorableimperative.H.G.WellsWhatistrueinnature,isalsotrueinbusiness.InOtherWords...Ithinkthereisaworldmarketformaybefivecomputers.-ThomasWatson,chairmanofIBM,1943Wedon'tliketheirsound,andguitarmusicisonthewayout.”-DeccaRecordingCo.rejectingtheBeatles,1962640Koughttobeenoughforanybody.-BillGates,1981ThereAreThoseWhoAdapt...“Hey,we'vegotthisamazingthing...we'llgiveittoyou.Wejustwanttodoit.Payoursalary,we'llcometoworkforyou.'Andtheysaid,'No.’”-AppleComputerInc.founderSteveJobsonattemptstogetAtariinterestedinhisandandSteveWozniak'spersonalcomputer.AndThoseWhoDoNotAdaptQuicklyEnough...WhereChangeFitsIn•Quality–ContinuousImprovement–ResponsetoCustomerRequirements•Lean–ReplacesTraditionalManufacturingApproach–SeekPerfection–ResponsetoCustomerNeeds–ChangeBecomesaWayofLifeIfweallknowweneedtoimprove,thequestionbecomes:whydon’twe?WhyisChangeSoHard?It’sthepeopleissuesthatmakebusinesshard!AboutCultureWhatisaCulture?Cultureisawayofdescribinghowagroupofpeoplelivetogether.•Cultureincludes;•thefoodsyoueat•clothesyouwear•rulesofbehavior•idealsandvalues•communicationandmore.•Thecultureislearnedineverydayliving.WhatisaWorkplaceCulture?Workplacecultureisawayofdescribinghowagroupofpeopleworktogether.•Workplacecultureincludes;•clothesyouwear•attitudesandrulesofbehavior•idealsandvalues•communicationandmore.•Thecultureislearnedineverydayworking.•Ifmanagementdoesn’tcreatethedesiredculture,onewilldevelopanyway.WorkplaceIdealsandValuesWhatevermanagementrewards,managementwillget.•Reward“yesmen”andyouwillgetobedience,butnocreativity.•Rewardsqueakywheels,soonallthewheelswillsqueak.•Rewardthosethatwouldclimbonthebacksofotherstoreachthetop,andyouwillhave“politics”insteadofproduction.TheRoleofCultureinLeanSuccessCulturePhilosophyTechnologyCultureisthemostwidelyneglectedfactorwhenimplementingLeanManufacturing.Withoutaddressingtheculturalissues,longtermLeansuccessisnotlikely.CultureistheFoundationWithouttherightculture,Leantoolswillfail.Buy-in,cooperationandinvolvementofallemployeesiscriticaltosuccess.Leansuccessrequiresacultureofcapable,flexible,highlymotivatedpeopleinanenvironmentofenlightenedexperimentation.KeyLeanWorkplaceAttitudesEmpowermentFearlessness(trustinmanagement)PrideinworkCustomerfocusCultureKeyWorkplaceIdealsandValuesFocusoneliminationofwasteBelonging(memberofteam)ResponsibilitytoteamandteammatesDelightingthecustomerSharingofinformationFlexibilityCapabilityCultureIsYourCultureChange-friendly?ExamplesofCulturalHurdlesCultureofBlame-Leanmakesproblemsvisible,emotionalreactionswillbedevastatingifthecultureisnotinlinewiththeLeanphilosophyCultureofMistrust-FearcanparalyzeCultureemployees,makethemunwillingto“sticktheirnecksout”CultureofHierarchicalDividingLines-Unlessemployeesareinvestedinthesuccessorfailureofthecompany,itssurvivalis“management’sproblem.”DoYouHaveaChange-FriendlyCulture?•Lookforwhoistoblame?•Focusontheprocess,notthepeople.Whensomethinggoeswrong,doyouandyourmanagers;ORLeanandISOmakeproblemsvisiblesotheycanbefixed,whenthishappens,yourpeopleshouldbefocusedonfixingprocessesnotdodgingbullets.MassProductionCultureChange-friendlyCultureDoYouHaveaChange-FriendlyCulture?•Raisethebarfornextmonthsnumberswithoutinvestigatingthecause?•Rewardtheteam,discoverthecause,andinstitutionalizethechange.Whensomethinggoesright,doyouandyourmanagers;ORYougetwhatyoureward.Findingoutwhatcausedtheupswingandmakingitapermanentpartoftheprocessallowsyoutokeepthegainsyoumake.MassProductionCultureChange-friendlyCultureDoYouHaveaChange-FriendlyCulture?•Areallreplaceable?•Arethecompany’smostvaluableasset.Doyouandyourmanagersbelievethatemployees;ORFeelingvaluableandknowingonecan“makeadifference”aresomeofthemostpowerfulmotivatingforcesforemployees.Remember,Leanworksbecauseofthepeople,notbecauseofthetools.MassProductionCultureChange-friendlyCultureDoYouHaveaChange-FriendlyCulture?•Canceltheprojectandcutyourlosses?•Encouragetheemployeestolearnfromtheirmistakesandtryagain.Whenaplanorprojectisfailing,doyouandyourmanagers;ORLeanManufacturingrequiresanatmosphereofexperimentation.Failuresareexpectedandplannedfor.Employeesmustknowtheywillnotlosetheirjobsimplybecausetheytriedandfailed.MassProductionCultureChange-friendlyCultureDoYouHaveaChange-FriendlyCulture?•Ignoreit,(orworse,stealit)they’renotpaidtothink.•Great!Let’sgiveitatry.Whenanemployeehasasuggestion,your(oryourmanager’s)responseis;ORT