Lead With Respect

Dr. Michael Ballé

michaelballe.org
We live in turbulent times,
external change is faster
than internal change
Q: How to cope with ever changing
business conditions?

Company’s
success

Individual
fulfillment

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Once upon a time…

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 And then: SALES & EBITDA
14000000 Loss of historical
market, start lean
12000000

10000000

8000000

Burning EBE

Total CA
6000000

4000000
platform!
2000000

0
2004 2005 2006 2007
?
2008 2009 2010 2011
?
2012 2013

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 Lean’s basic values

Monozukuri: Through
Hitozukuri:
Better products from JIT/JIDOKA Develop people’s
better processes skills in mutual trust

60 years of
suggestions, more
than 40 million
suggestions, 700 000
implemented yearly

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LEAN = KAIZEN + RESPECT
STRATEGY + CONTINUOUS
STRUCTURE IMPROVEMENT LEAN TOOLS
SYSTEMS INITIATIVE

IMPROVE:
SAFETY LEAN TOOLS to STRATEGY
QUALITY involve EVERY ORGANIZATION
FLEXIBILITY ONE EVERY DAY SYSTEMS
PRODUCTIVITY
COST

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Quality – days without returns

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 And then: SALES & EBITDA
14000000 Loss of historical
market, start lean
12000000

10000000

8000000
EBE

6000000 Total CA

4000000

2000000
?
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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Until…

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How?

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1. Lead from the ground up

2. The discipline of learning-by-doing

3. Intensify collaboration

4. So that everyone partakes in the joy of creation

5. So that you discover your own misconceptions

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1. Lead from the ground up

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 Go and see for
yourself to
experience facts first
hand

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 Stop, watch, listen and get
people to agree on what the
problem is

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Support kaizen and
learn from local
initiatives

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Link the customer’s smile
to OK vs. NOK in the
production process

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 LEAN = KAIZEN + RESPECT
KAIZEN RESPECT

Source: Toyota Source: Toyota

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=
Process People

INITIATIVE

=
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2. The discipline learning-by-doing

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 They learn, you learn:
challenge on safety, quality,
flexibility, productivity and
cost, and study how people
solve problems

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Overcosts are generated by the chosen
production method
Quality issue discovered by the
customer

Quality issue discovered at final
inspection

Quality issue discovered at line
inspection

Quality issue discovered at the
workstation

Quality issue discovered within
the process


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Overcosts are generated by the chosen
production method

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 The lake and the rocks

By reducing the water

in the lake
(inventories), problems
appear (rocks)

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 The discipline of pull and
one-piece-flow kanban
reveals problems and
supports learning-by-doing

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 Learning =
programmed learning (standards) +
insight questioning (kaizen)

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 T-development: develop
individual deep expertise
(deep roots) then broaden to
learn to lead across
boundaries (branching out)

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 Visualize
processes to Formulate
reveal problems
problems

Study Seek root

countermeasures cause

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3. Intensify collaboration

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 Agree on the problem,
brainstorm (build on
each other’s ideas)
and trystorm (try and
What they are doing
see, try and see)
is creating a Buddha
image and forgetting
to inject soul in it

Hajime Oba

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Dojos to have
regular
conversations
about
OK vs. NOK

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 Kaizen to work together at
solving cross-functional problems

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4. So that every one partakes in
the fun of creation

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 Good thinking,
good products:
Implemented
suggestions are the
ultimate proof or
employee
engagement and
management
respect

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 Create an
organization to
support every
person’s spark to
come up with a
new idea

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5. They learn, you learn

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 50% of what we think is wrong
Waste for customers
Misconceptions

Waste in the production

and delivery process

Overall waste in running

the company

37 michaelballe.org
Value flows through the people

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 Unless we stop it

Manpower Machine
Materials

Method
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The secret of the lean system

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 EXECUTION
SYSTEM

LEARNING
SYSTEM

CEO Manager Employee

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Your people?

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Your company?

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LEAN = KAIZEN + RESPECT
Sharp minds, warm hearts

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Michael Balle
@Thegembacoach

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