The document discusses difficulties with transitioning to a Lean culture from a traditional corporate culture. It notes that culture change will be the most difficult obstacle to success, and if an organization only talks about Lean initiatives but does not fully implement them, the initiatives will fail. Traditional metrics can also cause conflicts with Lean methods by focusing on short-term goals rather than continuous improvement. True Lean success requires long-term commitment from all levels of an organization, especially executive management, and a shift toward valuing people and problem-solving over rigid productivity targets.

1. Difficulties with Changing to a Lean Culture: Part II
Believing Lean Culture {align metrics from the onset}
Where will the “human-side” of Lean hit you? Mike Thelen shares experiences with talking LEAN vs. walking LEAN
in Part II.
As is the case with any Lean implementation in a Traditional environment, culture (or more specifically
culture change) will be the most difficult obstacle to success. While a company can hire consultants,
develop work teams, and even begin Lean initiatives, if the company only "talks the talk", the initiative
soon becomes just that, talk.
The transformation to a Lean Enterprise is not easy. Senior management while being driven by the labor
force must lead the process. Goals must be established up front, so all are working toward the same
future state. The difficulty is, Lean isn’t your parents’ algebra. More accurately, it’s the geometry you
always tried to avoid.
Consider this
Our favorite algebra equation is: The area of a triangle is:
H
X+Y=Z ½B*H
B
Think of algebra as traditional corporate metrics. Appearing to be simple and straightforward, industry-
accepted, black-and-white. Terms such as absorption, capacity and cycle-time should come to mind. In
this environment, goals are set which require machines to be run constantly in order to absorb minutes,
regardless of the fact that needed product cannot be run on those machines. This translates into running
product that is not needed, consuming valuable material and increasing finished goods inventory to
reduce variances on metrics.
At month-end (or quarter-end, year-end) the focus suddenly shifts to inventory levels and instantaneous
inventory reduction is mandated. In this mentality, 2-1=1, no questions asked. People, materials,
tools…all have the same weight.
Now consider our triangle. Here, 2-1 1, the whole is greater than the sum of the parts. Lets say “B”
represents the “tools” of lean – Kaizen, Jidoka, Heijunka, Kanban, 5S, etc and “H” represents our people.
Half the knowledge of tools combined with total commitment of the people will get you the area of our
triangle, or true Lean Culture Change. If your focus is only on the Lean tools, you will not achieve
success. The people part of Lean is more critical.
With Lean metrics, details are truly simple and straightforward. Measurements such as Delivery based on
TAKT (true customer demand), Overall Equipment Effectiveness, Inventory Turns, and Level-Loading are
consistently monitored to achieve continuous improvement in all areas. Inventory is not built up without
(or by artificial) demand. There is no “mad rush” to deliver product at the end of the financial cycle.
Accounting, the dreaded A-word
So, here you are. You’ve sent managers off-site for hands-on Lean training. You believe they return as
experts in Lean after only 40 hours of training. You might have even conducted some overview training
with your direct labor.
Now, “lets get LEAN”. Using the 7 wastes and 5S guidelines, you immediately see room for
improvement. Everyone jumps on board when you project cost savings. Your first project organizing
work areas and connecting disjointed processes is in full stream.
“Did you know Bob’s machine is sitting idle today?” asks your Operations Manager. “Yep, sure is. We’re
ahead on that machine, so we moved Bob down to help in Assembly.” Good response, Lean thought,

2. cross-training staff, better utilization of the operator. “But that machine is costing us money, it needs to
run!”…
The A-word strikes again. Corporate executives all agreed that Lean is the savior to the business. They
may have even brought in consultants to educate everyone on LEAN MANUFACTURING. The problem?
Lean is not a manufacturing tool, it is an ENTERPRISE tool, it is a BUSINESS SYSTEM. The
manufacturing workforce is not the only group that needs to change how they do business.
Is there a solution?
Developing an A3 (business case), with all goals clearly defined, is a start. The A3 should follow the
PCSAM method (Problem/Cause/Solution/Action/Measure). Remember the 5 keys to Lean Initiatives:
Delivery, Quality, Cost, Safety and Morale, when creating a business case (defining the problem). Clearly
define the current state, identifying wastes in the system (cause). Draw the future state using Rules In
Use: highly defined work, clear and binary connections and simple and direct pathways (solution).
Conclude the A3 with actions and measurements, including due dates and responsible parties.
Be upfront with executive management and ask the hard questions, such as “will there be problems if
machines are shut down when not needed?” This will determine how many machines you use, how
many shifts you schedule and how large your FIFO or Kanban systems need to be to achieve balance.
Perhaps most importantly, be prepared to re-write yearly goals to co-exist with Lean Initiatives. This
should even require executive management’s commitment to re-writing the company’s goals as well.
Companies that have unsuccessful Lean programs try to measure Lean Initiatives with Traditional
metrics. Lean requires long-term vision, not the standard quarter-by-quarter evaluations and corrections.
Executive management must adapt the Traditional long-term of “1-2 years” to the Lean long-term of “10+
years”. There will certainly be short-term impacts, some negative (specifically when dealing with stock
valuations and implications). But, if you have the long-range plan, those short-term impacts will come
and go too quickly to jeopardize corporate performance.
Believing in Lean is critical for success. Traditional metrics can cause conflict, but metrics aren’t the only
cause. A mentor of mine was fond of this analogy: there are rabbits, turtles, and foxes. Rabbits learn
Lean, live Lean and love Lean. They jump on the process and run with it. Turtles are slow to change.
They are patient, maybe even resistant. But once they see Lean in action, they will move in that direction
and be as valuable (if not more valuable) as the rabbits. Foxes are the ones to watch. They pretend to
believe in Lean, but never make the conversion. Foxes talk the talk. When times get tough, they won’t
walk the walk.
There is no magic pill for Lean initiatives. The Lean process requires time, commitment, and
determination. Companies that cannot envision the long-term commitment to Lean, and only use the
tools for short-term gain, will achieve some limited success. However, without the culture supporting
those tools, the Lean initiative will fail, becoming the "flavor of the week" that everyone knew would not
last.
Albert Einstein once said it best, before Lean ever became a buzzword, “"Without changing our patterns
of thought, we will not be able to solve the problems that we created with our current patterns of thought."
Mike Thelen is Lean Facilitator at Aberdeen, SD based Hub City, Inc., a subsidiary of the Regal-Beloit Corporation,
Beloit, WI. He has led Lean Initiatives in positions from Front-Line Supervisor to System Facilitator in various
corporations since 2001. Mike can be reached at mike.thelen@regalbeloit.com.