Recorded webinar: http://www.slidesha.re/1nFHE51 Subscribe: http://www.ksmartin.com/subscribe Confronting resistance to change is a common lament from improvement professionals, middle managers, and senior leaders alike. But organizations that approach improvement properly experience very little resistance to change. This webinar will unlock the keys to resistance-free improvement: You will learn: • The power behind properly designed & socialized charters. • Technique for aligning all stakeholders around the need for change. • How to assure that a proposed change is truly an improvement. • Techniques for using psychology to reduce resistance. Lean management includes all of the tools and practices you need to experience practically zero resistance to change. This webinar will show you how to fully leverage them.

1. Webinar
May 13, 2014
Reducing Resistance to Change

2. Welcome!
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• Canada
• Costa Rica
• Czech Republic
• Denmark
• Germany
• Ecuador
• France

3.  Coach / Facilitator / Consultant / Trainer:
Lean transformation & business performance
improvement in all industries.
 Teacher: University of California, San Diego
 Author & Speaker:
Karen Martin, President
@KarenMartinOpEx
www.linkedin.com/in/karenmartinopex
3
2013 Shingo
Prize winner!
www.ksmartin.com/subscribe
@karenmartinopex

4. After the webinar…
• Recordings:
– www.ksmartin.com/webinars
– www.vimeo.com/karenmartingroup
– www.youtube.com/karenmartingroup
– www.slideshare.net/karenmartingroup (+ slides)
Before the webinar…
• Materials available one hour prior:
– www.ksmartin.com/files/webinarmaterials/MM-DD-YYYY_slides.pdf
(or _handout.pdf)

5. 5
More Webinars!
11:00 am-12:15 pm PT
www.ksmartin.com/webinars
Coaching: The Art of
Asking the Right Questions
Respect for People:
The Lean Way
DATE CHANGE
A3 Management:
Effective Problem Solving
Holding Effective
Kaizen Events

6. You will learn…
• The power behind properly designed and
socialized charters.
• Techniques for aligning all stakeholders
around the need for change.
• How to assure that a proposed change is
truly an improvement.
• Techniques for using psychology to reduce
resistance.

7. People are Highly Predictable Creatures

8. © 2014 The Karen Martin Group, Inc. 8
Resistance is a Sign
that You’ve Done
Something Wrong *
* With a few exceptions.

9. © 2014 The Karen Martin Group, Inc. 9
Why People Resist Change
1. They don’t understand why
it’s needed.
2. They weren’t involved.
3. It’s a “change” vs. true
improvement.

10. © 2014 The Karen Martin Group, Inc. 10
Why People Resist Change
1. They don’t understand why
it’s needed.
2. They weren’t involved.
3. It’s a “change” vs. true
improvement.

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Specific
Conditions
Land-based
Value Stream
Champion
Janice Mitchell
Demand Rate 300 units (40 projects; 20 POs) per year
Facilitator Karen Martin
Value Stream Mapping Charter
Scope Accountable Parties Logistics
Value Stream Equipment type A
Executive
Sponsor
Joe Abrams
Event Dates
& Times
Mon, Tue, Wed
Feb 3, 4 & 5, 2014
8:00 am - 5:00 pm
Last Step Product shipped
Boundaries &
Limitations
Must use existing resources (people, IT, etc.) Briefing
Attendees
** required
*optional
** Frank L, Rick M, Cory C, Glen
S, Sinan, Ben, Jane, Sal,
Malaika, Andrew, AE's, Sales
Mgr's, Rachel, Adam, Dustan
Base-camp
Location
Bldg B, Conf Room A
Trigger Customer submits RFQ
First Step Sales receives RFQ Logistics
Coordinator
Georgette Winters
Meals
Provided
Continental breakfast, lunch,
snacks
Projects are not scoped accurately (voice of the customer). Function Name
Lack of consistent processes and execution. Operations John Morgan
Briefing
Dates
&Times
Feb 3, 4 & 5, 2014
4:00 - 5:00 pmImprovement
Timeframe
Future state realized by December 31, 2014
Current State Problems & Business Needs Mapping Team
Contact Information
On-going changes to project parameters (design, test dates, & supply chain). Supply Chain, purch, log, ware Tom Johnson
Consistently late delivery. CEO Mark Simpson
Increase average ontime delivery (to "ready to ship") from 17% to 60%. Quality Sally Jones
Reduce lead time (PO to ready to ship) from 12 mos to 8 mos. CFO Sharon Prince
No KPIs. Sales Ed Borge
Goals & Measurable Targets Engineering Joakim Gutan
Sales Kellie McMahon
Benefits to Customers & Business On-Call Support
Create variance tracking methodology. Program Mgmt Leia Chang
Standardize the change process to reduce the # of Change Orders. Manufacturing Robert Cashman
Finance Lori P
Capable processes that are repeatable (process focused). Design Manager Andrew M
Projects completed on time (customer) & under budget (business). Function Name
Reduced lead times & increased sales opportunities. IT Mars L
Contact Information
Budget-to-actual expenses per PO/project. Signature: Signature: Signature:
Date:
2013 average ontime delivery. Executive Sponsor Value Stream Champion Facilitator
Annualized quantity of change orders.
Profitably grow our business and open new markets. Prod Development Charlie F
Relevant Data Agreement
Reduce customer's warranty & LD exposure.
3 Purposes of Charters:
Plan, Communicate, Build Consensus
Download: www.ksmartin.com/charter

12. © 2014 The Karen Martin Group, Inc. 12
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2 1
3 2
4 3
5 4
1
2
3
4 Date: Date:
Specific
Conditions
Land-based
Value Stream
Champion
Janice Mitchell
Demand Rate 300 units (40 projects; 20 POs) per year
Facilitator Karen Martin
Value Stream Mapping Charter
Scope Accountable Parties Logistics
Value Stream Equipment type A
Executive
Sponsor
Joe Abrams
Event Dates
& Times
Mon, Tue, Wed
Feb 3, 4 & 5, 2014
8:00 am - 5:00 pm
Last Step Product shipped
Boundaries &
Limitations
Must use existing resources (people, IT, etc.) Briefing
Attendees
** required
*optional
** Frank L, Rick M, Cory C, Glen
S, Sinan, Ben, Jane, Sal,
Malaika, Andrew, AE's, Sales
Mgr's, Rachel, Adam, Dustan
Base-camp
Location
Bldg B, Conf Room A
Trigger Customer submits RFQ
First Step Sales receives RFQ Logistics
Coordinator
Georgette Winters
Meals
Provided
Continental breakfast, lunch,
snacks
Projects are not scoped accurately (voice of the customer). Function Name
Lack of consistent processes and execution. Operations John Morgan
Briefing
Dates
&Times
Feb 3, 4 & 5, 2014
4:00 - 5:00 pmImprovement
Timeframe
Future state realized by December 31, 2014
Current State Problems & Business Needs Mapping Team
Contact Information
On-going changes to project parameters (design, test dates, & supply chain). Supply Chain, purch, log, ware Tom Johnson
Consistently late delivery. CEO Mark Simpson
Increase average ontime delivery (to "ready to ship") from 17% to 60%. Quality Sally Jones
Reduce lead time (PO to ready to ship) from 12 mos to 8 mos. CFO Sharon Prince
No KPIs. Sales Ed Borge
Goals & Measurable Targets Engineering Joakim Gutan
Sales Kellie McMahon
Benefits to Customers & Business On-Call Support
Create variance tracking methodology. Program Mgmt Leia Chang
Standardize the change process to reduce the # of Change Orders. Manufacturing Robert Cashman
Finance Lori P
Capable processes that are repeatable (process focused). Design Manager Andrew M
Projects completed on time (customer) & under budget (business). Function Name
Reduced lead times & increased sales opportunities. IT Mars L
Contact Information
Budget-to-actual expenses per PO/project. Signature: Signature: Signature:
Date:
2013 average ontime delivery. Executive Sponsor Value Stream Champion Facilitator
Annualized quantity of change orders.
Profitably grow our business and open new markets. Prod Development Charlie F
Relevant Data Agreement
Reduce customer's warranty & LD exposure.

13. Common Components of the A3 Report
Theme: “What is our area of focus?” Owner: Person accountable for results.
Plan Do, Study, Adjust
Background
Current Condition
Countermeasures / Implementation Plan
Effect Confirmation
Follow-up Actions
• What?
• Who?
• When?
• Where? (if relevant)
Target Condition / Measurable Objectives
• Diagram of desired state
• Measurable targets – how will we know that the
improvement has been successful?
• Diagram of current situation or process
• What about it is not ideal?
• Extent of the problem (metrics)
• Problem statement
• Context - Why is this a problem? How large is the
problem?
Root Cause & Gap Analysis
• Graphical depiction of the most likely direct (root)
causes
• What measurable results did the solution
achieve (or will be measured to verify
effectiveness)?
• Who’s responsible for ongoing measurement?
• Where else in the organization can this solution
be applied?
• How will the improved state be standardized
and communicated?

14. © 2014 The Karen Martin Group, Inc. 14
Why People Resist Change
1. They don’t understand why
it’s needed.
2. They weren’t involved.
3. It’s a “change” vs. true
improvement.

15. © 2014 The Karen Martin Group, Inc. 15
It’s Uplifting to Kaizen…
It’s
traumatizing
to be
kaizen’d.

16. © 2014 The Karen Martin Group, Inc. 16
The People
Who Do the
Work are the
Experts

17. © 2014 The Karen Martin Group, Inc. 17
Leaders determine strategy
(what needs to happen)
Workers determine tactics
(how it will happen)

18. © 2014 The Karen Martin Group, Inc. 18
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3 2
4 3
5 4
5
1 6
2 7
3 8
4 9
5 10
1
2 1
3 2
4 3
5 4
1
2
3
4 Date: Date:
Specific
Conditions
Land-based
Value Stream
Champion
Janice Mitchell
Demand Rate 300 units (40 projects; 20 POs) per year
Facilitator Karen Martin
Value Stream Mapping Charter
Scope Accountable Parties Logistics
Value Stream Equipment type A
Executive
Sponsor
Joe Abrams
Event Dates
& Times
Mon, Tue, Wed
Feb 3, 4 & 5, 2014
8:00 am - 5:00 pm
Last Step Product shipped
Boundaries &
Limitations
Must use existing resources (people, IT, etc.) Briefing
Attendees
** required
*optional
** Frank L, Rick M, Cory C, Glen
S, Sinan, Ben, Jane, Sal,
Malaika, Andrew, AE's, Sales
Mgr's, Rachel, Adam, Dustan
Base-camp
Location
Bldg B, Conf Room A
Trigger Customer submits RFQ
First Step Sales receives RFQ Logistics
Coordinator
Georgette Winters
Meals
Provided
Continental breakfast, lunch,
snacks
Projects are not scoped accurately (voice of the customer). Function Name
Lack of consistent processes and execution. Operations John Morgan
Briefing
Dates
&Times
Feb 3, 4 & 5, 2014
4:00 - 5:00 pmImprovement
Timeframe
Future state realized by December 31, 2014
Current State Problems & Business Needs Mapping Team
Contact Information
On-going changes to project parameters (design, test dates, & supply chain). Supply Chain, purch, log, ware Tom Johnson
Consistently late delivery. CEO Mark Simpson
Increase average ontime delivery (to "ready to ship") from 17% to 60%. Quality Sally Jones
Reduce lead time (PO to ready to ship) from 12 mos to 8 mos. CFO Sharon Prince
No KPIs. Sales Ed Borge
Goals & Measurable Targets Engineering Joakim Gutan
Sales Kellie McMahon
Benefits to Customers & Business On-Call Support
Create variance tracking methodology. Program Mgmt Leia Chang
Standardize the change process to reduce the # of Change Orders. Manufacturing Robert Cashman
Finance Lori P
Capable processes that are repeatable (process focused). Design Manager Andrew M
Projects completed on time (customer) & under budget (business). Function Name
Reduced lead times & increased sales opportunities. IT Mars L
Contact Information
Budget-to-actual expenses per PO/project. Signature: Signature: Signature:
Date:
2013 average ontime delivery. Executive Sponsor Value Stream Champion Facilitator
Annualized quantity of change orders.
Profitably grow our business and open new markets. Prod Development Charlie F
Relevant Data Agreement
Reduce customer's warranty & LD exposure.

19. © 2014 The Karen Martin Group, Inc. 19
Who Needs to be Involved?
Function Activity
Marketing 1. Generates sales leads
Sales 2. Calls on and qualifies customers
Customer 3. Submits RFQ to sales
Sales 4. Reviews RFQ
Estimating 5. Generates quote
Sales 6. Approve quote
Customer 7. Accepts quote; submits a PO
Sales 8. Approves PO
Customer service 9. Creates SO; compiles spec package
EE/ME design 10. Designs product; generates BOM
Customer 11. Approves design
EE/ME design 12. Forwards design to SW dev
Software Dev 13. Writes code
Purchasing/Planning 14. Releases WO; schedules production
Supplier (external) 15. Delivers materials
Production 16. Manufactures & ships product
Customer 17. Installs equipment
Field service 18. Conducts 90-day follow-up
Problem:
Product
Quality

20. Available on the CD that Accompanies
The Kaizen Event Planner (www.bitly.com/TKEP)

21. The Power of Periodic Briefings
21
Purpose: Deepen understanding, gain commitment,
help people “grow” with change, surface hidden issues.

22. © 2014 The Karen Martin Group, Inc. 22
Why People Resist Change
1. They don’t understand why
it’s needed.
2. They weren’t involved.
3. It’s a “change” vs. true
improvement.

23. © 2014 The Karen Martin Group, Inc. 23
Beware of
Process
Tampering!

24. © 2014 The Karen Martin Group, Inc. 24
Develop
hypothesis
Conduct
experiment
Measure
results
Refine
Standardize
Stabilize

25. © 2014 The Karen Martin Group, Inc. 25
Begin at the Beginning, Not the End!
1. What’s the problem?
2. How big is the problem?
3. Why is it a problem?
4. What’s the root cause?

26. © 2014 The Karen Martin Group, Inc. 26
What About the One Resister
That You Can’t Turn?
1. Determine root cause via
candid conversation.
2. They may need to find a
new “home.” 

27. © 2014 The Karen Martin Group, Inc. 27
In Summary…
• Use well-designed charters.
• Socialize the charters.
• Use robust problem solving (PDSA) to
make true improvement.
• Involve the people who do the work being
improved (or who work in the
environment being improved).
– Include upstream suppliers and downstream
customers.
• Hold periodic briefings.

28. © 2014 The Karen Martin Group, Inc. 28

29. Change Doesn’t Have to Be
As Hard as We Make It

30. © 2014 The Karen Martin Group, Inc. 30
Your Questions
• What are some examples of the hardest
resistance to change you’ve encountered
& how did you overcome them?
• When does one decide that a company
has a totally hopeless culture to change?
Examples?
• How do you deal with people who are
close to retirement?

31. © 2014 The Karen Martin Group, Inc. 31
Karen Martin, President
858.677.6799
@karenmartinopex
Blog & newsletter: www.ksmartin.com/subscribe