Monday, February 25, 2008

Jaded Julie learns what is needed to achieve nemawashi in the U.S.

“Shall we continue our discussion of nemawashi, Julie? Would you be so kind as to review what it is? I’m certain that you have become a Toyota Way zealot.”

“You know me; I can’t wait. Nemawashi is the Japanese term for the way Toyota makes decisions by consensus. They evaluate proposals based on their merits after critical review of all data by all stakeholders. Curmudge, in our last discussion you listed a lot of bad habits practiced in the U.S. as leftovers from our old command-and-control culture. I believe our path forward for today was to describe the characteristics that American organizations would have to develop in order to match Toyota’s nemawashi.”

“That’s it, Julie. Good job! Let’s start by making a list of required characteristics. The biggest item on the list is trust. Trust is the antidote for fear, and fear must go. Of course, we can’t just pronounce that everyone in an organization will trust everyone else in the organization. Trust—including that between individuals and also between individuals and the organization—must be earned. Incidentally, one earns trust by giving trust, just like the way one earns respect.”

“It sounds like a big task, especially if old wounds need to heal before the process can begin. There must be several other organizational and personal qualities that are necessary.”

“There sure are, Julie. Here is a back-of-the-envelope list:
· A compelling mission that captures the passion of the employees.
· Involved and committed top leadership who articulate the organization’s goals clearly and consistently.
· A transparent, no-secrets culture that communicates trust and confidence vertically and horizontally in the organization.
· Leaders at every level who provide purpose, direction, and motivation and who receive on-going leadership training.
· Empowered employees who acquire a sense of ownership.
· People who are motivated to perform in a superior manner when they are treated with fairness, respect, and dignity, and allowed to participate in decisions affecting them.
· Meetings characterized by mutual respect at which attendees leave rank at the door and speak with data.
· Highly motivated and capable people working together in teams to achieve outstanding results.
· Strategy deployment that combines centralized development of corporate goals with ‘bottom-up’ involvement of those with a detailed knowledge of the organization’s processes.
· Recognition and rewards for outstanding contributions.
· A learning organization: One skilled at creating and acquiring knowledge and at modifying its own behavior to reflect the new knowledge and insights.”

“An organization that meets all of these criteria should certainly match nemawashi. In fact, I think you just described the Lean culture. If an organization achieves the rest of Lean, nemawashi should take care of itself.”

“Good observation, Julie. If the rest of Lean encompasses nemawashi, nemawashi is not an independent Lean requirement. It’s just the Japanese version of the open communication that should exist in any Lean culture.”

“Hooray! Now I can drop nemawashi from my Japanese vocabulary.”

“You know, Julie, we could simplify our lengthy discussion if we just take to heart what Alexandre Dumas taught us in his 19th century novel, The Three Musketeers. When Athos, Porthos, Aramis, and their young friend D’Artagnan raised their swords (or goblets), they shouted…”

“…’All for one’, Curmudge.”

“…’and one for all’, Julie.”

Affinity’s Kaizen Curmudgeon

Monday, February 18, 2008

Nemawashi--How Toyota gets everyone on the same page.

“I hope you are ready for this, Julie. The subject of today’s discussion is nemawashi.”

Nemawashi! What did I do to deserve that? After genchi genbutsu and hansei, the Japanese compartment of my brain is overflowing. Can I take paid time off and leave right now?”

“I admit that nemawashi will never become a household word in Wisconsin, but it’s a critical part of the fourth ‘P’ of Liker’s pyramid. If an organization is going to achieve a Lean culture, it will have to develop something that matches Toyota’s nemawashi.”

“Okay, Curmudge, I surrender. But if you are ever a patient in my unit…”

“…I know. You’ll provide the extraordinary care for me that you give to all of your patients. Let’s do a quick review of our last couple of discussions. For genchi genbutsu the American cultural analogy was Lead from the Front, and for hansei it was After Action Review. Regrettably, there’s not a simple three- or four-word American analogy for nemawashi.”

“Not so fast, Curmudge. Before you get too engrossed in the topic, you should explain what this—how do you say it—nemawashi stuff is.”

“Of course. According to Liker, nemawashi means to make decisions slowly by consensus, thoroughly considering all options; then implement rapidly. Prior to a decision meeting at Toyota, an engineer will solicit input on his proposal from all stakeholders, modify the proposal as needed, and thereby develop a consensus. Final approval is often a formality.”

“From what we’ve learned about Toyota, I suspect that all data are examined critically; and the proposal is judged on its merits. But Curmudge, don’t we do that in the United States?”

“Some organizations do, but others don’t. Remember, Julie, U.S. industry—including health care—is working its way out of the old command-and-control culture. Let’s consider some of the old meeting-behavior and decision-making habits that need to be broken.”

“Please do, Curmudge. As the resident Old Guy, you’ve probably seen them all.”

“At the historical extreme were the nobles and the serfs. Then in the industrial revolution, there were the mill owners and the laborers. The boss made the decisions and issued the orders, and the workers responded out of fear.”

“I presume that that was a little before your time, Curmudge. Didn’t Dr. Deming say, ‘Drive out fear.’? It seems to have taken awhile.”

“More recently, members of management committees became involved in decision-making, but their actions were often governed by parochial interests. People protected their turf and the budget of their ‘silo’. Some became information black holes. Hidden agendas, mixed messages, adversarial labor relations, and corporate politics were all too common. There was a definite lack of trust, and fear still reigned.”

“What’s a mixed message, Curmudge? Can you give me an example?”

“Sure. The boss says, ‘I want to tell you about a developmental opportunity,’ and she is really thinking, ‘I want to get this guy out of my group, and I’ve found someone who will take him off my hands.’ That’s a mixed message.”

“Oo! Not nice, but probably not uncommon. How can an organization be as dysfunctional as your examples and still survive?”

“Probably not for long today. And even in our present enlightenment, we need to deal with our so-called defensive routines—our conscious and subconscious fear of appearing incompetent and our desire not to embarrass others. Sometimes critical issues are undiscussable, and people become resigned to their organization’s malaise. These might be considered second-order concerns, but they inhibit production of valid information and can keep an organization from reaching its full potential.”

“That’s quite a litany of transgressions, Curmudge. If the Japanese avoid them with nemawashi, it’s no wonder that they make good cars. So how can we Americanize nemawashi and overcome these problems? What is our goal, and how can we get there?”

“That will be the subject of our next discussion, Julie. Meanwhile, read the books that I recommended last month, including the Army’s Be, Know, Do, and the Best Damn Ship in the Navy.”

“Hoo-ah, Curmudge.”

Affinity’s Kaizen Curmudgeon

Friday, February 8, 2008

What's Hansei in America? It's an After Action Review.

“Curmudge, before we leave Liker’s fourth ‘P’ (Problem Solving), you promised to discuss hansei, whatever that is.”

Hansei is translated as ‘reflection’, Julie, but it means much more than that single word. Toyota is a learning organization, and that requires genchi genbutsu (as in our last discussion), kaizen (continuous improvement), and hansei. In this context, hansei means ‘learning from one’s mistakes.’ Here’s an example: At the end of a project, a hansei-kai (reflection meeting) is held with the boss. In the meeting, the project engineer describes in detail all of the things he could have done better. Traditional Japanese hansei requires feeling deeply sorry and admitting shame for one’s errors.”

“Golly, Curmudge, is that really necessary?”

“The folks at Toyota feel that it is essential to be honest about one’s weaknesses and to learn from one’s mistakes. It’s evident that learning from mistakes is critical if an organization is going to improve.”

“I agree, but I can’t envision an American standing before a VP and focusing on what he did wrong. He’s going to describe the good job that he did. Hansei is just too foreign a culture for us. It’s one part of the Toyota Way that’s not going to be used in the U.S.”

“You’re right, Julie. Pure Japanese hansei will require too much of a culture change for most Americans. But perhaps we can Americanize the concept of learning from mistakes by adopting the U.S. Army’s practice, the After Action Review (AAR).”

“You did it, Curmudge. I knew you’d come up with a military analogy. Tell me more about it.”

“An AAR is held immediately after every mission. Although leaders and subordinates are present, rank is left at the door. AARs include discussions of the performance of individuals, leaders, and units. No topics are off limits. An AAR doesn’t grade success or failure; there are always weaknesses to improve and strengths to sustain.”

“It sounds like the Army is a learning organization, just like Toyota. But I bet that leaving rank at the door would take some getting used to.”

“Right again, Julie. It’s interesting that that aspect of an AAR—achieving an open discussion among all people involved—is the most difficult for civilian organizations to adopt.”

“Does the Army have a standard format for its AARs?”

“Of course, just as you would expect. They start by reviewing the objectives and plans for the mission; then they note the actual events, i.e., what happened. Key issues are next analyzed in order to surface the strengths and weaknesses of the unit’s performance. Finally they develop corrective actions so that the unit will do better on its next mission.”

“Curmudge, that sounds just like an after-the-event Plan, Do, Check, Act. What was our plan? What did we do? How well did it work? How can we do it better next time? It appears that the Deming Cycle can be universally applied across the military as well as the civilian world.”

“Brilliant, Julie! You’re not only an excellent student—you can read my mind.”

“What a surprise. Are we going to Americanize any more aspects of the Toyota Way culture? I’m looking forward to getting off the summit of Liker’s ‘4P’ pyramid.”

“We’re nearing the end. Hang in there.”

“See you, Curmudge.”

“Dismissed, Julie.”


Affinity’s Kaizen Curmudgeon