Kaizen critics on Innovation: Sustaining Innovation is not Kaizen!

The rapid change of the world makes innovation a lethal weapon to become a big part of solution to bring about countries, companies, or communities to a useful change that hopefully take them to the top the leading pack in the world. Little research on the topic could give many hints that innovation is the key. There are now disruptive innovation, cultural innovation, reverse innovation and other terms that use innovations as the key.

However, the overwhelming topic of innovation that filled the market has overshadowed some important not so radical, slow and not extreme change that comes from continuous improvement that actually be the backbone of many leading companies in the world. The power of kaizen culture which embedded in top leader of the pack has been uncover in the book The high-velocity edge by Steven Spear seems to be undermined by the amount of innovation books and its varieties on the market.

Java Printing

I am not against innovation because I understand that without innovation no companies could ever bare their existence let alone leading. innovation is the key. I really enjoy reading books on innovation especially books by Clayton M. Christensen which really is the result of his in-depth research and reflection about the world of innovation.

My argument about innovation is that most of the books on innovations discussed about big changes that will lead to strategic/big step. My take on current innovation paradigm is that innovation is not enough because we still need kaizen. Some people say that kaizen is innovation also, but it really is not. The rule of thumbs is what your mind perceived what innovation is, reduce it by factor of at least 100.

When for example Clayton M. Christensen tried to detail innovation into a more elaborate by dividing it further into Disruptive and Sustaining Innovation. People get confuse because first, where is then Kaizen? Second,  a strange combination of words is used (Sustaining Innovation!).

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The Innovator’s Dilemma (Christensen 1997) identified two distinct categories—sustaining and disruptive—based on the circumstances of innovation.

  1. Sustaining Innovation : when the race entails making better products that can be sold for more money to attractive customers—we found that incumbents almost always prevail.
  2. Disruptive Innovation :when the challenge is to commercialize a simpler, more convenient product that sells for less money and appeals to a new or unattractive customer set—the entrants are likely to beat the incumbents. This is the phenomenon that so frequently defeats successful companies. It implies, of course, that the best way for upstarts to attack established competitors is to disrupt them. (Low end disruption and New market disruption)

Confusion happen among the practitioner of whether Sustaining Innovation is Kaizen because it is also about making better products to attractive customers. Additionally, two words of sustaining and innovation are both contradictory in nature in a way that when innovation happen, change happen and it moves the object of innovation to some future state.Thus actually it is inappropriate to give the name “sustain”. Sustain means almost equally to maintain. Hence it means the innovation going nowhere but only maintain and hence going nowhere.

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History wise, the Kaizen term exist already since 1986 which is kaizen/continuous improvement which small incremental improvement. However, it seems that the founder of kaizen concept had predicted that confusion between Innovation and Kaizen will likely to happen.

This big misconception has been cleared before by Masaaki Imai in 1986, a notable quality philosopher and practitioner and the founder of Japanese consulting company namely Kaizen Institute or best known by the west as the father of Continuous Improvement. Misconception of innovation happen when people associate immediately innovation with improvement. The truth is that innovation indeed is improvement but improvement is not just innovation. Improvement consist of Kaizen and Innovation in which until the next innovation, kaizen will improve the system little by little.

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From the graph it is clear that Kaizen perfected Innovation. It means that any types of Innovation whether it is disruptive innovation, cultural innovation, reverse innovation will be make perfect by following through with Kaizen afterwards. Kaizen will target improvement until next innovation.

Hence it is very clear that innovation itself is insufficient to create a winning edge and that innovation coupled with relentless kaizen become the ultimate answer. This is why in my opinion, despite of the effort to rally with other companies toward Innovation from generating, managing, until applying innovation many firms still happen to be in the lower league. Because Innovation without Kaizen is just like “Pound Saving, Penny Foolish”. It seems good that you get to save many Pounds, but other companies take care also every Pennies possible with Kaizen and overtime they who cares for both thrives.

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Where productivity comes from? Relation between Quality, Lean, Efficiency

From my last post about over months ago, we have grasped the idea and underlying concept of Lean. That the divine purpose of Lean is to give value to customer. Lean means providing value to customer.

5 principles of Lean

In previous post also, we know that there are fundamentally 5 Principles of Lean which are:

  1. Specify value for the customer
  2. Integrate Value Stream
  3. Create Flow
  4. Pull from the customer
  5. Aim for perfection

Looking deeply between the initial definition and the 5 principles of Lean. It seems logically correct that providing value to customer is indeed will be achieved through all the 5 principles of Lean. However, this indeed is also a deception for many.

Not that I say those principles are useless, on the other hand, people has to know those principles by heart. Despite of that, in my opinion, 5 Principles of Lean are not comprehensive enough in serving higher purpose of providing value to customer because it somehow lacks of comprehensiveness. If we look at those all 5 principles and pondering on those points, we can have assumptions that Lean is all about efficient of operations to provide value by means of faster, responsive and flexible operation by implementing integrated value stream, flow, pull and then aim for perfection.

Java Printing

These points have failed to serve the true comprehensive definition of lean which is providing value to customer because it simply do not pay attention to “quality” matter. In fact, none of the 5 principles seems to talk about quality (poka yoke, inspection, culture of quality).  This had led many to miss-understanding that lean is just efficiency (value stream, flow, pull). Lean comprise efficiency indeed, but not only that. It is also quality and all that is required to bring value to customers.

Because as we come back to the true definition of lean that is providing value to customer, we realize that Lean defintion is larger than 5 principles of lean itself.

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That ambiguous translation from basic definition of Lean into the principles of Lean, make a miss-conception about achieving Lean in relation with improvement culture. Improvement has twofold and people have always been mistaken when talk about improvement. Lean improvement as perceived by most people as working toward a more efficient operations is preferable in most case because it gives a sense of boost to ongoing operations and increasing productivity. On the other hand,   quality improvement sometimes not as popular because for many it just don’t seems boost their production quota. So, they tend to prefer efficient improvement compare to quality improvement.

People has mistakenly grasped the concept of improvement that they tend to associate improvement to efficiency because by and far, it will boost productivity quickly. This is bad in a long term because quality is stronger and has a bigger impact in a sense that on the long term, focus on quality improving productivity and increasing quality. Both quality and efficiency however have similarity in the need to specify customer value and strive for perfection.

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Sometimes we deeply understand about the need for efficiency improvement because it directly impact our output in short term. But those who forget to deal with improving quality is in the long term will be definite loser because while you neglect quality, others not. They improve productivity through both quality (inspection, poka yoke devices) and efficiency (integrate value stream, flow, pull)  improvements of operations which give them a twofold advantage to their productivity increase compare to those who only care about increasing efficiency.

So, I want to again stress that the 5 principles of Lean is in fact very important to remember. But one shall never forget the in-comprehensiveness of the principles and that the fundamental definition of lean is always comes first.

Lean is providing value to the customers.

How to built Quality into a process: a lesson from Shigeo Shingo

Lately, I am quite busy and overwhelmed because of so many things I have to do right now. From doing many reports in my workplace as well as continuing a research project for university. However, I really so into and passionate in doing the research project particularly because the topic that I work in is both my passion and my work. I am now researching theories about Quality especially how to create a culture of quality and found a classic book from Shigeo Shingo which I fall in love with. The book is titled Zero Quality Control. I admire the wisdom he has at that time that even many people or companies today might not know about it yet. Here I will share some of his important view on built-in quality.

Young business woman presenting colorful charts and diagrams

In summary, he elaborate on his journey on finding the most effective inspection method to built quality into the process. Those three inspection methods are all currently use all over the world right now, but as he said personally that sometimes people do not know what is the right one for them and in what situation they have to use it. Those inspection systems are:

    1. Judgment inspections (inspections that discover defects)
    2. Informative inspections (inspections that reduce defects)
    3. Source inspections (inspections that eliminate defects)

Next several weeks I will try to explain what is the really the difference among them. Additionally, it is worth to mentioned here that Shigeo Shingo give a basic recipe of how to built quality into your process.Those are:

  1. Use source inspection
  2. Always use 100 percent inspections rather than sampling inspections.
  3. Minimize the time it takes to carry out correction action when abnormalities appear.
  4. Human workers are not infallible. people are human and set up effective poka-yoke devices accordingly as control functions.

Small Changes, Big Achievement!

I just read a blog by Beyond Lean that is so insightful. In his post, with the title Small Change vs. Large Change, he highlighted about how Paul Akers at FastCap often talks about 2 seconds kaizen.

I have read Paul Akers’ Book about 2 Second Kaizen which describes his personal journey on creating kaizen culture in his small to medium size business (at that time). Following my current reading on Workplace Management by Taiichi Ohno, this post really spark a light for me to set out this post about small changes.

Company has been the center of all attention for decades. But scaling further to a level of personal kaizen, big achievement by means of doing small changes can definitely be a roadmap to improvement. I would imagine if we are not only focus on doing productive works but in addition to that, we apply 2 seconds kaizen on how we went throughout our day.

BELIEVE

It has been acknowledged that doing the right things before doing things right will elevate productivity in our lives by preventing doing the wrong things. But truly I said that bigger achievement is attainable by performing small changes in doing things right. Now I invite you, my fellow travellers, let us set for ourselves to do everyday at least 2 achievements (productivity) but as complementary also do 2 seconds of kaizen ( improvement in method of doing things).

What can we learn from Indonesia’s Governor Jokowi : Leadership and System

Jokowi is a name that is probably unknown for people that lives outside Indonesia. It not uncommon that his name was not being heard, because even in Jakarta, the capital city of Indonesia, his name could only be heard for first time in the late of 2012 where people started to get awareness of him. Currently, he is a newly elected Indonesia’s Governor which for many people sparks a new light of hope in Jakarta City.

 

I am not interested to discuss about government or the best ways to manage a city. Instead, we will use him as an example of how a high velocity organization could arise not only in manufacturing, service industry, or military, but also in public administration system. Yes, yes,  I know that Jokowi has just been elected as a Governor of Jakarta around fourth quarter of year 2012. But we will later see, as I elaborate later, why I think that his management system will end successfully.

Watching people managing any systems is the same as watching a football match, you knew already who will win the match before the match over by watching both teams play. But you will still wait ‘till the end of the game to make sure that there is no coincidence that the other team unexpectedly win. Good managed team will win 90 % of the time while the rest of 10% is attributable to special variation.

In football game, those persons that often watch football match will know that a particular team will win against another before the game is ended. The way strategy is being executed in the football field will shows how the players play together, using each persons’ skills and combining strength to reach synergy that collectively create a good play. A good team come from a good manager. A good manager might not be the best player in the field. He could be the best player, but for sure he is at best at managing system. A good system will triumph most of the time, with some special minor exception of good system that failed to succeed. 

Companies in any industries has a role of managing its system. The unique things is that they all have different products as well as customers. Hospital, Manufacturing, Tourism, Public Administration. Thus, there are different ways to deal with managing system in each of these industries. However, managing a system is always have the same principal across industries, with some modifications to the industry we are trying to apply it in.  Here, I will present some facts across industries that mainly drawn out from my main industry of expertise which is automobile and try to show you how Jokowi acts matches with what has been a successful and proven philosophy in the world of automobile.

1. To change a system, you cannot be inside it.

Jokowi know this very well. He is not trying to change the system by being inside it, but he directly go “on top of it”. Unless we have one person that can changed the system on the top of organization’s pyramid, we cannot changed it by entering into it. We have to be above it. There is no use if you have an idea that could significantly changed the system when you are down below pyramid in a bad system. It is because in a bad system, your good idea considered as bad. because bad system nurtured bad ideas. Thus, only bad ideas goes into the top of the pyramid and got heard.

Jokowi is not trying to be hired as an employee, but he aimed for the top. He knew that if he want to changed the system, it has to be from the top. Many times good and diligent people got into a bad system and in no time these people tired of challenging bad inertia in the bad culture that has already ingrained and these good and diligent people become adapted to a bad system by producing bad ideas and doing unproductive activities.

Many cases that geniuses that have great academic records, or good carrier in foreign country, when they tried to come back to build their own country, they are shocked that they found their brilliant ideas are not working. People do not agree, not supporting it, or maybe no one believes it.

Mr. Habibie is so great at anything about airplane. He foretold “I want to make an airplane for my country”. He is more than a genius. But again,  in a bad system, he just not fit. He successfully created PT.Dirgantara, but it wasn’t successful because that time he has to interact with a bad system that exist in the country. Bad system is like a disease, it spreads to others around it so quick.

 

2. Create a system perspective for everyone

Everyone could work hard and do their best but still at the end the result is failed. As Dr.Deming said, it is no use to do your work as best as possible. We have to do the right things before we do our best. To make people able to evaluate themselves that they have already do the right things, people has to understand their position within a system and hence they know how to contribute to it.

In Toyota and in high velocity organization such as Pratt & Whitney’s, Southwest, Alcoa, and other leader in their own industries, knowledge of how a particular section or job fit into a whole system is very important to know for all the people inside the system. Toyota have always explained and educated a new employee about his role and responsibility. But in addition to that, Toyota makes sure that this new employee also know about how his role and responsibility will impact the whole system by explaining the whole system from manufacturing, quality , engineering ,design and so on.

Taking complex system, then divided it into parts, try to manage each part as best as possible is absolutely false. Because it tries to improve each part taken separately and destroyed the system. It is like taking a big mirror from store and you break the mirror into parts for optimization in carrying it to your house and when you reach your house, you reassemble the mirror again, and you are then shock that the mirror looks different, it do not work when you want to look at yourself and the parts seems not fit together as it was in the store. Because It simply have broken.

Jokowi tries to fit everyone to the whole picture by not only making everyone realizes their role and responsibility within a system of public administration, but also that he shows to all employees about the whole system. For example, he put out a YouTube channel that could be seen by all employees so that employees know what really governor do and what really happening in other sections of public administration so that they can really contribute by doing the right things at their best.

3. Going to “Gemba” and “Genchi Genbutsu”

Gemba is a Japanese term that means real place while Genchi Genbutsu means to look by yourself the particular physical things that being a concern. People in automobile always use this concept of management extensively. Managing from office is not enough because paper based management neglect real concerns. By the time the problem is translated into paper and travel to office as a report, many things has already been happened and information may also lost in the way or got distorted by the time it reached office. Additionally, information, if not getting distorted it will somehow go perish and by the time people from the office try to reconstruct the problem, all people connected to it has forgot about it or the environment has already simply changed. It is because Information has a characteristic of sensitive to distortion and perishable. 

Thus, going to Gemba will means getting problem found from the right persons in timely manner, isolate as quickly as possible before spreading, and solve as soon as it arise. Going to Gemba also means Genchi genbutsu or seeing the real thing as it is.

Jokowi really knows the values of going to Gemba and Genchi Genbutsu. He first of all realizes that civilian in Jakarta is his customers and the success of his organization is the satisfaction of customers. Therefore, getting the customers’ concern is a top priority. He knows very well that customers is where he could really get the real problem on time without distortion and therefore despite of all the accusation that he is wasting time, he still do go to Gemba.

 

In addition, Jokowi’s success in Solo city where he lead for several years as Governor before he became governor of Jakarta is not merely because of he is a superpower person or a very genius person. He might be one of them, but alone, only destructive change that could result ( firing, hiring, penalty, force procedures). Instead, he manages the system with constructive change that can only be achieved through collaboration and cooperation that obviously not a work of a single hero. Thus, those leader that could really turn the situation is good at managing collaboration and cooperation as a vehicle to constructive change. Instead of using power to generate policy that is destructive to system. These leaders can use it to create collaboration that will be fruitful as these leaders believe that change should come from collaboration that arise from a system management. This will make a lasting change even after the leader is not anymore responsible for the system because the system has already built, run, and improve itself.

Leader’s Job is to lead not merely giving orders.

One fun and Inspiring Night with Neuro Linguistic Programming (NLP) Community

I currently lived in Brussels for sometime and it now feels like going to work and back home again has already become pretty much ordinary for me. First of all, because I get to know well the transportation network, traffic situation and could adapt well to a very significant different climate than my home country. In addition to that, I can now better managed the work load in a company that I am in now. Not that it is less work there, but even also with some new problems it just feels I could managed it better due to having done many tasks and did learn things quite regularly and thus becoming common with procedures and culture.

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This stability situation makes me uncomfortable. In Lean philosophy, we believe that achieving stability is a priority. However, there is another superior aim that is larger than that. Challenging stability with improvement. Lean philosophy believe that to increase the standards/stability that we have now in our lives, an improvement has to be made. This philosophy has a divine logical reason behind that a stability/standards situation, if it has already been achieved and not being challenge in order to improve it, it will without a doubt decrease and deteriorate or in simple words, making your life actually little by little below your actual standards/stable condition.

Meetup

With this concept at hand, I am searching for new things to improve myself. One night, after work, I came across a website called Meetup. It is the world’s largest network of local groups. it makes it easy for anyone to organize a local group or find one of the thousands already meeting up face-to-face. More than 9,000 groups get together in local communities each day, each one with the goal of improving themselves or their communities. So, I registered as a member and look for recent events.

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As I stumble in this new website, I encounter an interesting even about NLP or Neuro Linguistic Programming. Remarkably, this is a very affordable NLP event and it just happen to be around me. I love to learn psychology by reading some books because I love to learn and understand about people around me. So, then I went to this event and put myself out there to see how NLP workshop is.

I went there and I was exceptionally amazed on what I saw and experienced. Both from the participant, the ambience, the event and the coachers (I use coach as they weren’t really speakers but actively engaging us with activities). I met a various kind of person there and what inspired me is that all these people has different background than me both either in their working life and their family life and they all gather to improve themselves. There was a musician, a painter, a consultant, an IT security guy, a factory management employee (me!), and a bunch other interesting people that I will never meet outside of this event simple because our world is too far apart from being able to meet each other.

My experience in attending this event was wonderful. Mainly because the positive ambience that build up by everyone of us that have spirit of making ourselves better that projected toward helping others be better.  there is also a time where we make a circle and shout a loud with fun. The coach taught us some NLP method and at the end,each and everyone of us has to perform a short practical presentation that basically utilizing all the tools we learned that day.

For you who do not really know what NLP could bring you, below is the video of how significant NLP could change a mind of a person by injecting ideas to subconscious mind.

I definitely will attend the next NLP workshop again and may also some useful and practical techniques to enhance our performance in daily life or business.

Managing by Heart: What Leaders Should Learn from Toyota

Toyota has come into test by recall of its vehicle all around the world. From the lens of customers, recall means a bad action because it looks like Toyota has so many defects. In fact, not in all recall Toyota found defective parts. But why Toyota do recall that actually give a bad impression to customers?

For those who oversimplify business and looking only into short term action, this bad impression will persist. However, the actual reason of this recall is to better satisfy customer in the long term. I would not talk here about recall issues in specific, instead, the focus on the long term and the focus on the satisfaction of customers, even when the customers still do not know that the action will satisfy them in the long term because it disappoint them in the short term.

Toyota-Logo

This ideal principal of Toyota is not only mere a tag line to make its company looks professional, but it is a living system that proves it consistency on focusing on satisfying customers in the long term.

This is the reason that Toyota is one of the leader in Automotive Industry. To be a leader, we have to focus on satisfying customers and on the other hand those who do not focus on satisfying customers in the long term will soon enough perish. This great ideal philosophy has been around us for decades.

In the Bible for example those who will be a leader has to be a servant.

Matthew 20:25-26
25Jesus called them together and said, “You know that the rulers of the Gentiles lord it over them, and their high officials exercise authority over them. 26Not so with you. Instead, whoever wants to become great among you must be your servant,

In addition, Scientifically, This term has been coined by experts to be called servant leadership.

Servant leadership is a philosophy and set of practices that, together, enrich the lives of individuals, build better organizations and ultimately create a more just and caring world. A servant-leader focuses primarily on the growth and well-being of people and the communities to which they belong. While traditional leadership generally involves the accumulation and exercise of power by one at the “top of the pyramid,” servant leadership is different. The servant-leader shares power, puts the needs of others first and helps people develop and perform as highly as possible.

Pillar of Toyota which is Respect for People and the principle to contribute to society has make Toyota a serving leader among all Automotive companies. Additionally, this behavior of serving leader not only shown in the big area as a company but also reflected in the response of the CEO Akio Toyoda when storms face Toyota.

The video below shows how servant leadership of Akio Toyoda to many segment of communities.

 

This video declare his intention on being a servant companies to the public. Not enough doing this, he also made 2 additional steps to deliver the message to customers by doing apologize talk show in television and also making a TV commercial which will incur additional cost for Toyota.

 

Surprisingly, what many customers do not know is the truly profound act from Akio Toyoda that proves his quality as a Servant Leader. Instead of getting mad and talking about profit and losing money, he went to America team and greet the assembly workers. He also delivered a really deep gratitude to all his employee to support him in the difficult situation. He knew that he is a servant to a customer. but he also knew that he is a servant of his employees and therefore he is the leader.

The servant leader will says thank you to all who support him, but an ignorant leader will get mad to all his subordinate in order to get profit get into the company back. Ignorant leader will obviously get back the profit on the short term but not in the long term due to his ignorance to all employee that experience additional suffering in the crisis from their leader. But the servant leader will get back slowly but certain. The company not only will getting back on its foot, but all employee will go forward together because the culture of servant leader is embedded and spread inside the company with its CEO as a living guide. The effect is an enormous viral movement inside the company that makes everyone in the company to try hard to be a servant leader and in the end helping in serving customers and bring the company into number 1.