Lean Enterprise Management – A Leadership Path

“If you want to be a Lean Manager in a Lean Enterprise, you must follow the 14 principles of the Toyota Way.”  Why is that so important?  Why does it seem so difficult in American business?

First, let’s briefly explore the history of management theory.  The Toyota principles have their roots in many longstanding management theories.  If you pursued any formal management education, you might recognize the Scientific Management Theory.  It was introduced in the late-nineteenth century by Frederick Taylor and produced dramatic productivity improvements by carefully matching skills, tools, and movements to optimize tasks.  Many of Taylor’s principles survive today – fact-based decisions and applying the scientific method to solve problems. Unfortunately Scientific Management became linked with very autocratic impersonal leadership and the feared “time-study man.”  Many other management theories added detail to Taylor’s theory to produce what is now called the Classic Management Theory.

The next significant management theory grew out of Elton Hawthorne’s experiments of the 1930’s.  The Harvard studies of worker behavior and the work environment showed productivity improvements by involving the workers. Those studies launched the Human Relations Movement.  The approach emphasized behavioral issues such as job satisfaction, group norms, and supervisory behavior.  In the 1950’s, psychologist Douglas McGregor of MIT introduced Theory X and Theory Y.  These theories propose that a manager’s beliefs about the trustworthiness and work ethic of the workers influences productivity.

In 1981, William Ouchi proposed Theory Z that integrated McGregor’s theories with the Japanese management beliefs that were strongly influenced by those of J. Edwards Deming.  His management beliefs focused strongly on the use of statistical methods and trust in the workers.  He also introduced the Shrewhart Cycle (Plan, Do, Check, Act) to Japanese management.

Elements of the Toyota Way can be found in many of the theories developed over the past 150 years. Each idea was in pursuit of improved productivity.  Over the decades, each of the theories has been found useful and often wanting. Even the Toyota Way is being found by some to be less than perfect.

So, why don’t we just apply process analysis and the scientific method to correct the flaws in the management/leadership process?  Some would deny that it is a process because it is not very definable, predictable, and repeatable. I take that as a challenge.  We must start by defining the process.

My purpose in this discussion is to suggest that you can apply the concepts and tools of process analysis to bring your management and leadership skills into alignment with the needs of your organization and the methods that have been found to be most successful.
The second article will present a basic management/leadership process that can form the foundation for assessment, problem solving, and improvement.

Gerald T. Davies
gtdavies@lvsillc.com

Lean Value Solutions International, LLC

LVSI has expanded into a variety of industries and locations around the world. Each of our consultants has worked as both internal and external consultants in business, providing Lean Enterprise Management solutions at all levels of an organization from the shop floor to the executive suite.

As you and your company begin to work with LVSI's team, you will quickly realize why our clients continue to choose LVSI as their Lean Enterprise Management solution provider of choice.

Why choose LVSI?  One answer is EXPERIENCE.  When planning your next Lean project, please choose an experienced partner – a partner like LVSI.

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Note: This is the first of a series of articles discussing a manager’s role in a Lean Enterprise.  Your comments and questions are welcomed.