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“ Kaizen is to change your actions in order to create an environment where everyone can reach their true potential. - Taiichi Ohno (1990)” The ability to look at the greater picture beyond yourself is becoming one of the defining factors for ongoing success in any organization. Some industries have a mission that more obviously contributes to the greater good of society. We all know that healthcare is important, for instance. But eliminating ineffectiveness in any aspect of work or life contributes to solving the one of the most pressing issue in our society: sustainability. Over the last few decades a number of sustainability issues have forced us to reevaluate what is good for society. Throughout the history of human civilization, we have been on a search for abundance. Especially since the industrial revolution, most people have been able to agree that producing and supplying more goods and necessities would lead to a better life for everyone. This was more or less common sense across many cultural and political ideologies. The goal was to “make more, sell more.” But in the past few decades, a number of hot button issues from climate change, to peak oil, and even the obesity epidemic have begun to flip this common sense on its head. We are having to confront the idea that perpetual growth is not sustainable for society or the planet itself. For many in the developed world, the slogan for their personal life has changed to “consume less, save more.” They expect the products they buy to truly satisfy their specific needs. It's not just about commodities; it's it about their personal identity as well. This reinforces the need for industries to pursue Just-in-Time with the ultimate goals of producing only what is needed, when it is needed, in the quantity that is needed, and the quality that is expected. Changes of consumer demands have provided opportunity for new industries and forced large and powerful organizations to reform their strategy. This is more difficult for some industries, most notably large scale manufacturing. Mass production was a product of the push to “make more, sell more.” With changes in behavior among consumers, this will increasingly lead to unsold products and wasted resources if businesses do not adapt. If you make a profitable product with seemingly limitless demand, it is still possible to prosper under the mass production model, especially in developing countries. But how much longer can this continue? From a business perspective it might make sense in the short-term to churn out countless bits of disposable plastic, just as it makes sense in the moment for consumers to buy them. But in the long run, we will face decreasing supply of petroleum as well as the negative effects of pollution. This style of production will also fail to adapt to changes in customer preferences regardless of the availability of raw materials. Without a healthy planet, we cannot have a healthy economy, and without a healthy economy, we will not have the demand to maintain a healthy business if we focus on mass production. It is difficult to let go of things that brought success in the past. Mass production was certainly a successful practice in its time, bringing consumers, businesses, and the workforce a level of prosperity that would have been unimaginable in previous centuries. It is understandable that people are so resistant to try a new approach since their experience and education has been structured around practices that supported mass production, mass marketing, and mass consumption. These approaches rely heavily on specialization and division of labor. Under this model people are only expected to focus on improving their own individual efficiency. As a result people become extremely skilled at performing one job. For this reason it is often the most highly experienced, highly skilled, and highly educated members of an organization who resist change the most. This includes veteran engineers, department managers, and top executives including the business owners in many cases. Even when the business is struggling in the face of changing markets, these people habitually turn to the solutions that worked in the past. The high-mix low-volume demands of mature markets call for a more flexible multi-skilled workforce that is willing to learn and teach new skills. This can be a huge change for people who have succeeded in the past by only focusing on their own individual performance. It takes a tremendous amount of courage to admit that you need to change your approach, especially when that means learning new skills. This is even more challenging when you are a highly regarded member of the organization who people depend on. But this is why change must start at the top to set an example. If the most successful people within the organization can recognize the need to change their work patterns to better fit customer demands by focusing on the total effectiveness of the business’s value streams, others will know just how important it is. This also sends a clear message that even top people in the company have a lot at stake, and their livelihoods are tied to the ongoing survival of the company just like everyone on the frontline. Leadership teams that become aware of this reality, and take on the often intimidating task of overhauling their operational model to fully prepare for the changing market, will have a strong advantage over their competitors. Forward thinking companies like this can free up people and space by prioritizing total efficiency through self-managed collaboration of a multi-skilled workforce to produce much higher mixes in a sustainable manner. In this way they can adapt to the changing demands of consumers, provide a livelihood for their employees, and increase profit for their shareholder, all while preserving the planet and ensuring the future sustainability of their business. This might sound utopian, but the problems society faces are too great for us to aim at anything less than perfection. Respect for people, as a guideline for developing leadership, ultimately boils down to dedicating yourself to a greater cause. If you are only looking out for yourself all the time, you are not respecting other people. Like most aspects of human relationships, this is more complicated than it sounds. People respond negatively to selfish people, and therefore it is often in your personal best interest to put other people first. The challenge is knowing when and how your actions can mutually benefit yourself and those around you. To simplify this, many organizations rely on vision and mission statements. We all go to work in order to earn money with which to care for ourselves and our families (based on developing our logical thinking) , but we also want to know that what we are doing has a positive impact on society and not a negative one (based on developing our human nature). This reflects what we see in our definitions of the different types of leadership education. You need to develop your logical mind to look after your own needs, but you must also develop your rational human nature to look after the collective needs of society. In the long run, for both organizations and those who work within them, an ethical sense of purpose is vital for success. Mission statements can do that at the top level and naturally appeal to CEO’s and presidents, but people at every level all the way to the frontline need a sense of purpose. It’s not just about what the company sells. It is about what each individual contributes from moment to moment. This is why all levels of the organization need to communicate without fear of disagreement and conflict. Everyone comes with a different perspective and different goals, so some measure of disagreement is unavoidable. If we truly want to do what is right for the well-being of others, both in our company and in society, we must be willing to confront opposing viewpoints and interests in order to develop a strategy to provide the best outcomes for everyone involved. The first chapter of Ohno’s book “The Toyota Production System” is titled “Starting from Need.” This means the needs of each individual, the company as a whole, and society is based on changing conditions. For this reason, people must be prepared to stand up for their viewpoints while being open to the possibility that they could still be wrong while others’ might be right. You cannot truly know the value of an idea until you put it to the test. This brings us back to “physical” education — developing courage and strength to put collective ideas into action in order to learn from their successes and failures. Just as there is no shame in telling people they are wrong, there is no shame in being wrong, but there is shame in not putting ideas to the test or missing the opportunity to learn by doing. If you never except that you are wrong, you probably aren’t challenging yourself, and you probably aren’t aligned to the needs of the organization. Knowing this is the first step to putting aside your own ego to find the best approach for everybody involved rather than the solution that makes you look good as an individual. “Creating an organizational culture that is able to change and adapt is more important than having an abundance of resources. An organization’s strength is built upon this adaptability." - My mentor, Hitoshi Yamada Fully endorsed Sensei of the Ohno Method for Leadership Development, Organizational Reform, & Digital Transformation |
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