A webinar presented on March 15, 2016. In this webinar, you will learn: Some of the defining characteristics of successful Lean leaders Three basic assumptions that differentiate Lean CEOs and leaders Pivotal moments for Lean leaders and their organizations In this webinar, author, speaker, and consultant Jacob Stoller will dive into the three basic assumptions about information process, and people that differentiate top lean leaders from conventional business leaders. Join us to learn as Jacob identifies these assumptions and highlights pivotal moments where influential leaders stood by them and changed the history of their companies.

1. Mark Graban
VP of Customer Success
mark@kainexus.com
Three Primary Assumptions of
Successful Lean Leaders
Jacob Stoller
Author, The Lean CEO
jacob@stollerstrategies.com

2. Agenda & Logistics
• Presentation (40 minutes)
• Q&A (15 minutes)
– Use the GoToWebinar
Meeting Panel to
submit a question at
any time
• Recording link & slides will be sent via email

3. Three Primary
Assumptions of
Successful Lean Leaders
Jacob Stoller
March 15, 2016

4. © 2015 Jacob Stoller 4
Saved by the dashboard

5. © 2015 Jacob Stoller 5
Primary Assumption: The safest way to get home is
to watch your instruments and do what they say.

6. © 2015 Jacob Stoller 6
Results ($)
Commands
Sloan’s Command and Control Dashboard
Gemba
Primary Assumption: Financial reports tell
the truth about the business.

7. What the financials don’t tell us…
© 2016 Jacob Stoller 7
Waste
Variation Employee
disengageme
nt
“3% of the problems have figures, 97% of the problems
do not.” W. Edwards Deming

8. The Lean CEOs
Mike Lamach, Ingersoll Rand
Bob Chapman, Barry-Wehmiller
George Koenigsaecker, Jake Brake
Bob Brody, Franciscan Health Care
Hugo Levente Bara, Supremia
Kevin Meyer, Specialty Silicon
Ed Byczynski, PLZ Aeroscience
Tom Everill, Northwest Center
Pat Lancaster, Lantech
Art Byrne, Wiremold
Paul Steffes, Steffes
Steve Brenneman, ATC
Karl Wadensten, Vibco
Pierluigi Tosato, San Benedetto
John Toussaint, Thedacare
Gary Kaplan, Virginia Mason
© 2016 Jacob Stoller 8
Mark Richards, Appvion
Jim Martin, Goodwill Industries
Jorge Pinto, Caetano Bus
Mary Andringa, Vermeer
Chris McBean, eLeather
Eric Ries, The Lean Startup
Jim Lancaster, Lantech
Brian Walker, Herman Miller

9. 9
People
Information
Process
© 2016 Jacob Stoller
Three
Primary
Assumptions
for Running
the Business

10. © 2015 Jacob Stoller 10
Bad Profits

11. © 2015 Jacob Stoller 11
Information
Primary Assumption # 1
Customer value is the
primary dashboard
for success.

12. It’s all about radical transparency.
12© 2016 Jacob Stoller

13. © 2015 Jacob Stoller 13
Leadership
Commands Results True North Problems
Leadership

14. “This is not for the weak of heart. This is
so hard every single doggone day. Lean
will surface all of your shortcomings and
force you to deal with all the details.”
Karl Wadensten, CEO, Vibco
© 2016 Jacob Stoller

15. © 2015 Jacob Stoller 15
Art Byrne’s Customer Value Dashboard
Customer
service %
Inventory
turns
ProductivityQuality
(defects)
Visual
control
(5S)

16. Letting go of the old way…
© 2015 Jacob Stoller 16
“You can write the
report if you like, but I
can guarantee you that I
won’t read it.”
“Don’t look past
the results.”
Art Byrne, Former CEO, Wiremold Mike Lamach, CEO, Ingersoll Rand

17. Order
Processing
Engineering Procurement
Value is horizontal.
© 2015 Jacob Stoller 17
Production Shipping
Customer Value

18. Re-thinking accountability
© 2015 Jacob Stoller 18
“Accountability is not about setting goals and then
shaming people who don’t hit the goals.
Accountability is about making sure that everybody
understands what we’re trying to do.”
Jim Lancaster, CEO, Lantech Inc.

19. © 2015 Jacob Stoller 19
Process
Primary Assumption # 2
Continuous improvement
of people and processes
towards an ideal state
leads to sustainable
results.

20. Continuous improvement as a strategy
Develop people so that people will improve
processes in order to drive results.
Capital Costs
Added Headcount
Waste
Cycle Times
Physical Space
Defects
Competitive Position
Gross Margins
Cash
© 2015 Jacob Stoller 20

21. A tough sell in the boardroom…
© 2015 Jacob Stoller 21
“..and then I opened the door.”
Brian Walker, CEO, Herman Miller

22. …and on the shop floor.
© 2015 Jacob Stoller 22
Jim Lancaster, CEO, Lantech Inc.
“It’s time for a
cookie.”

23. …and for professionals.
HR
Program
Designers
Problem Solving
Coaches
Accounting Bean
Counters
Financial
Advisors
IT
System
Builders
Providers of Real
Time Information
23© 2016 Jacob Stoller

24. Financial
Pressures
Unacceptable
Outcomes
24© 2016 Jacob Stoller

25. 25
“We should work on our process, not the
outcome of our processes.” – Deming
© 2016 Jacob Stoller

26. © 2015 Jacob Stoller 26
Primary Assumption # 3
People have a basic
human need to do
exceptional work, and
will do so when barriers
are removed.People

27. 27
Bob Chapman, CEO, Barry-Wehmiller
“All anyone asks for is a chance to work with pride.”
- Deming
© 2016 Jacob Stoller

28. The need for exceptional work
© 2015 Jacob Stoller 28

29. A lasting partnership
© 2015 Jacob Stoller 29

30. Now, over to you!
© 2015 Jacob Stoller 30
Is customer value seen
through gemba your primary
dashboard?
Are you on a continuous
improvement journey that
never ends?
Are your people empowered
to do exceptional work?
Information
People
Process

31. Our Next Webinar
• Michael Lombard
– “A management system
supported by KaiNexus”
– April 19, 1 pm ET
• KaiNexus.com/webinar

32. Other Resources
KaiNexus.com/webinars
blog.KaiNexus.com

33. Thanks!
• Web:
– www.kainexus.com
– blog.kainexus.com
– www.JacobStoller.com
• Past Webinars:
– www.kainexus.com/webinars
• Social media:
– www.twitter.com/kainexus
– www.linkedin.com/company/kainexus
– www.facebook.com/kainexus
Mark Graban
@MarkGraban
mark@KaiNexus.com
Jacob Stoller
@JacobStoller
jacob@stollerstrategies.com