TRANSFORMATIONS OF COMPANIES ON THE BASIS …€¦ · TRANSFORMATIONS OF COMPANIES ON THE BASIS OF...

ГРУППА КОМПАНИЙ 1

TRANSFORMATIONS OF COMPANIES ON THE

BASIS OF LEADERSHIP, LEAN APPROACH

AND 6 SIGMA

V.Lapidus

Centr Prioritet, Director General

prof., d.s., IAQ Member


Scale of changes requires company transformations, and not just implementing

Lean – 6 «σ».

Transformation of organizational structures, management principles, production

systems and culture is possible only with change of leadership type and with

correctly chosen direction of transformations.

A company applying Leadership principles to management can benefit in career

management, goal-setting, growth of company intellectual capital. This practice

has already shown a promising effect.

This report deals with a product called «Leadership as a system. School of

leadership».

It is based on transformations to «Lean – 6 «σ»» models using project

multiplicative approach and revealing leadership of managers and employees.

Many companies in Russia, with a large amount of production, need to reduce

their resources, such as land, premises, equipment, energy consumption,

number of personnel.


MODEL: ORDERS, PRODUCTION, MANAGEMENT (LEAN + 6 «σ»)

Production, value stream

Plant management

before implementation of LEAN

Embedded management

processes into production

flows (Kanban, J-I-T,

supermarket, etc.)

Resources

Sales:

inflow of orders

Sales

funnel

Plant management

after implementation of LEAN

Resource

leveling

An important part of Lean-transformations is simplification, flattening (decreasing the hierarchy) of the

management system, delegation of some of its functions to production and embedding into processes

(Kanban, J-T-I, Supermarket). Russian companies often possess excessive assets (buildings, land,

infrastructure, etc.), and their compaction becomes essential for success of transformations.

Compaction

Product

flow

ГРУППА КОМПАНИЙ

«Lean + 6 σ»

4

JAPAN

«Tu r t l e p a t h»

Start environment: Small assets; Reliable knowledge; Small market;

Mass production

Start environment: Huge, excessive assets, old-

fashioned technologies; Fundamental special knowledge; No young loyal personnel; Guilt and accusation culture; Communal self-defense culture;

Mass

non-market

production

RUSSIA

«Wa r r i o r p a t h»

Efforts mobilization and dissipation method. Big steps forward (capture) and slowdown (reclaiming).

Way of small changes (Kaidzen). Smooth small steps on the right track.

Culture of trust; Social contract; Long life recruitment; Horizontal trade

unions.

Ability for mobilization; Toleration of difficulties; Ability to trust; Trainability.

DIFFERENCIES IN TRANSFORMATION PATHS

TRANSFORMATIONS PATH TPS


Japan Russia

OP TC

TC

OP

Operation costs (OP) versus Transaction costs (TC)

Japan Russia

Keiretsu (uniting business

manufacturers, suppliers and

financial institutes into one

structure).

Cross holding of assets.

Managers control over business.

State corporations,

concentration of assets in one

hands.

Corporalization, new

privatization.

Bureaucrats control over

management.

Comparative characteristics of corporate management

CROSS-ECONOMIC ASPECTS OF LEAN-TRANSFORMATIONS


Japan Russia

Life-long staff recruitment.

Corporate trade unions.

Payment for time in service.

Collective agreements (annual),

labor code “focused” on

employees.

Weak trade unions.

No single approach to

remuneration of labor.

Work relation basics

CROSS-ECONOMIC ASPECTS OF LEAN-TRANSFORMATIONS

Japan Russia

Small assets, markets growth,

competition

Assets growth

Lean, TPS

Big assets, markets reduction,

restrictions, competition,

redistribution of incomes

Assets compression,

compaction + Lean

Difference in initial economic environment


Japan Russia

Visual culture.

Respect to older people.

Attention to details.

Trust is higher than efficiency.

Team (community) leadership, obedience of

the working class.

Ethic norms are based on self-respect, trust.

Consensus (social) leadership.

Kaizen – improvements, improving selection.

Verbal culture (word at the beginning).

Abidance to governance. Hierarchy.

Attention to general view.

Control – base of manufacturing relations.

Community defense. Obedience of the

working class.

Ethic norms are based on justice, dividing into

“ins” and “outs”.

Dominant (biological) leadership.

Community (small groups) encapsulation from

corporate environment. Intolerance to non-

ordinary people («all like all»).

Japan Russia

Down-up, up-down.

Kanban, value stream, supermarket.

Development of personnel initiatives, first

of all, employees.

Up-down, cascades.

Development of corporate planning

institutes, stream, resources, quality,

safety managements.

Transformation of corporate cultures

Between group aggression.

Comparison of corporate cultures

Main reforming activities

CROSS-CULTURE PROBLEMS OF «LEAN + 6σ»

TRANSFORMATIONS


Japan Russia

Absence of punishment for an

mistake.

Focus on loyalty and responsibility of

executors.

Punishment for mistakes.

Focus on guilt and inspection.

Opportunism.

Error management

Japan Russia

High responsibility of management for

employees life.

Life commonness.

Moderate and transparent correlation

of salaries.

Obstacles in relations.

Responsibility of management for

wage payment on time.

Intolerance, vigilance to changes.

Vertical relation

CROSS-MANAGERIAL ASPECTS

Japan Russia

Community as the base for teams of

improvement, kaidzen-teams.

Respect to change leaders.

Leadership consensus.

Community as the base for self-

defense and balance with

environment.

Hostility to change leaders, orientation

on conservative leaders.

Non-transparent and unjust salaries

correlation.

Communal work organization


Change leaders Define objectives and change directions,

organize change projects.

Start of transformations

Aristocratic leaders ─ system

transformers Ensure integrity of the system, develop culture,

change development stages through alternation

of mobilization and dissipation phases.

Conservative leaders

Mobilization

Mobilization

Mobilization

Dissipation

Dissipation

Mobilization stages:

• Concentration of efforts on changes

under control of change leaders

(performed via transformation projects).

• Big objectives, scales, future vision,

involvement into changes.

Dissipation stages:

• Concentration of efforts on

standardization, stabilization, standards

trainings (tuning, adjustment), kaizen.

• Dissipation leaders address their efforts

to stabilization, adjustment, process

improvement, clarification of rules and

orders, pay attention to variations, their

decrease, details; involvement into

stabilization processes.

Sustainability

WARRIOR PATH: CYCLES OF CAPTURE AND STRENGTHENING

Direct their efforts on stabilization, adjustment,

process improvement, rules and order

clarification; pay attention to variations, their

decrease; personnel involvement into

stabilization processes.

«Lean + 6σ»


Knowledge Tools Spare improvement

projects Involvement Motivation

Strategy Knowledge Spare and managed

improvement projects Involvement Motivation

Strategy Knowledge Managed transformation

projects Involvement Motivation Compulsion

Spare projects Spare projects Managed projects Managed projects

Spare projects

Educational Transformational

Three projects types of “Leadership as a system”

10

LEAN-TRANSFORMATION TECHNOLOGY

“LEADERSHIP AS A SYSTEM. SCHOOL OF TRANSFORMATIONS” PROJECT


Strategy

Key projects Implementation

projects

System

acceptance Improvements

Business strategy; Transformation strategy; ISM; Functional strategies

per directors.

Model; Development and implementation programs; Tools; Motivation and involvement; Planning (goal-setting, requirements); Problem solving (8D; 3 ppm); Improvement programs.

Audits ; Efficiency evaluations.

3 PPM system.

1

Strategy development,

goal setting.

2

Knowledge. Lean. TQM.

System sustainability

and tools.

3

Mobilization, Involvement into transformations

(motivation, leadership, leaders selection, creating

opportunities for improving selection

support.

4

Internal and external projects management.

System, projects administration. Project charter.

Projects structure. Customer - performer.

Work monitoring. Synchronization.

“Leadership as a system.

School of transformations” PROJECT

5 FUNCTIONS OF PROJECT TEAM

5

Projects consulting Technology:

Lectures (group work, presentations (maintaining an electronic base).

Discussions (summary of results).

Project selection, consulting. Projects fulfillment. Monitoring. Projects defense. Project implementation. Each key project ends with results

and draft proposal for 2nd cascade projects.

11

“LEADERSHIP AS A SYSTEM. SCHOOL OF TRANSFORMATIONS” PROJECT


Team – organizer of transformations Transformation Policy Management

School of leadership Cascade 1

CJSC Center «Prioritet»

Teaching Training

Motivation Consulting


Output ~ 40 trainers Practical Course projects with economic effect

Output ~ 300 trainers practical projects with economic effect


Output 1000 Kaidzen group leaders, Lean practical projects with economic effect

~ 4-5 months

~ 4-5 months

~50 people

SYSTEM DEPLOYMENT THROUGH “LEADERSHIP AS A SYSTEM” PROJECT

Mobilization: transformations stream up-down.

Dissipation: direction of people efforts on stabilization, sustainability, standardization, continual improvements.

M O B I L I Z A T I O N

D I S S I P A T I O N

~ 4-5 months

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Thank you

for your attention

13

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