What Works for GE May Not Work for You Using Human Systems Dynamics to Build a Culture of Process Improvement WWhhaatt WWoorrkkss ffoorr GGEE MMaayy NNoott WWoorrkk ffoorr YYoouu Using Human Systems Dynamics to Build a Culture of Process Improvement Lawrence Solow and Brenda Fake Productivity Press Taylor & Francis Group 270 Madison Avenue New York, NY 10016 © 2010 by Taylor and Francis Group, LLC Productivity Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed in the United States of America on acid-free paper 10 9 8 7 6 5 4 3 2 1 International Standard Book Number: 978-1-4398-2599-0 (Hardback) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. 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HD58.9.S66 2010 658.4’013--dc22 2010000672 Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the Productivity Press Web site at http://www.productivitypress.com This book is dedicated to my parents, Paul and Sheila Solow. They provided the DNA, motivation, and solid foundation that made my contribution to this book possible. Larry Solow This book is dedicated to my clients across industries and companies for enriching my work and understanding of the world. Thank you for the experiences and validation that people are the most important asset of any organization. Brenda Fake Contents Foreword ................................................................................................xi Preface .................................................................................................xiii Acknowledgments ...............................................................................xix Introduction .........................................................................................xxi SectIon I What? chapter 1 Introduction to “What?” ....................................................3 Consequences of Failure .............................................................3 Don’t Implement LSS for the Wrong Reasons .........................5 Other Complicating Factors .......................................................8 Human Systems Are Different .................................................10 Our “Simple Rules” in Writing This Book ..............................10 chapter 2 Lean Enterprise ................................................................13 Evolution of Lean Enterprise ...................................................14 A Typical Lean Implementation ..............................................17 More Advanced Lean Implementations .................................18 Sustaining a Lean Implementation ..........................................19 chapter 3 Six Sigma ...........................................................................21 History of Six Sigma ..................................................................21 Implementing Six Sigma ...........................................................23 Reasons Six Sigma Implementations Are Not Sustained......24 Other Business Improvement Models ....................................25 chapter 4 Human Systems Dynamics ..............................................27 A Brief Timeline of Leadership and Organizational Development Theory ......................................................27 Differing Assumptions ..............................................................29 vii viii • Contents Section I Summary ..............................................................................33 Case Study Interview .................................................................33 Panel Discussion: The Current Condition ............................34 SectIon II So What? chapter 5 Introduction to “So What?” .............................................43 chapter 6 Introduction to TryinHard Marine .................................47 chapter 7 The Project Begins ...........................................................57 chapter 8 The Training Begins ........................................................61 chapter 9 The Training Drags On ...................................................67 chapter 10 The Projects: An Update ..................................................69 chapter 11 A Staff Meeting ................................................................73 One Year Later ............................................................................76 Three Years Later.......................................................................80 Section II Summary ............................................................................81 SectIon III So What?—take 2 chapter 12 The TryinHard Marine Case Story Retold ......................85 chapter 13 The Next Staff Meeting ....................................................89 Contents • ix chapter 14 Choosing a Consultant ....................................................93 chapter 15 Establishing the Initial Projects ......................................97 Summary of Themes ................................................................109 chapter 16 The Training ...................................................................113 chapter 17 Another Leadership Team Meeting ..............................117 chapter 18 Meanwhile, Back at the Projects … ..............................123 The Ship Date Team ................................................................123 The Accounts Receivable Variation (ARV) Team ................129 chapter 19 One Year Later ................................................................133 Questions for Consideration ..................................................137 SectIon IV now What? chapter 20 Now What? .....................................................................141 Readiness ..................................................................................143 Leadership ................................................................................145 Selecting a Consultant .............................................................146 Selecting and Training Black Belt Candidates and Project Team Members ................................................149 Initial Project Selection ...........................................................150 Adaptive Action .......................................................................152 chapter 21 What Next? .....................................................................161 Recommended Reading ......................................................................167 Index ....................................................................................................169 Foreword As founder of the field of human systems dynamics (HSD), my mission is to build capacity for individuals and organizations to be effective and productive, even when they cannot predict or control the future. Applying complexity, chaos, and other nonlinear sciences to human systems—indi- viduals, teams, and organizations—HSD provides a new way to address critical needs in today’s challenging global environment. Nowhere is the opportunity for this approach greater than in the area of process improvement. People everywhere strive to do better, be better, and achieve better results for the organizations to which they commit them- selves. There is nothing more heartbreaking than to see these efforts either fail completely or only partially achieve their potential. Larry Solow and Brenda Fake bring the best of three different worlds to this book. First, both have invested their time and energy in under- standing the concepts, models, and tools of HSD. Second, both have first- hand knowledge of process improvement. Larry is a Six Sigma Black Belt and has created his own innovative problem-solving process. Brenda has worked with world-class organizations to understand the human side of process improvement and organizational change. Finally, both are sea- soned, experienced change agents. They have worked with a wide variety of organizations that span profit and nonprofit, industry segments, and geographies. They write from first-hand experience, sharing their stories of what has and has not been effective in making change happen. Throughout their book, Larry and Brenda emphasize that adaptive action is not intended to replace existing process improvement tools, but rather to complement them. I could not agree more. Viewing organiza- tions as complex adaptive systems invites focus on patterns and the recog- nition that influencing critical dimensions of these patterns creates a shift in them. It is a different mindset than the mechanistic, cause-and-effect thinking that permeates so much of today’s leadership thinking. Not bet- ter and not worse; there are many places where viewing systems as linear is both true and useful. It is in those other places, where flexibility, rapid change, and the need for adaptive action are called for, that HSD-inspired constructs and tools shine. xi xii • Foreword I found What Works for GE May Not Work for You: Using Human Systems Dynamics to Build a Culture of Process Improvement to be theoretically sound, practical, and easy to read and understand. Blending traditional models and new thinking, the authors have certainly provided food for thought for those struggling to make process improvement a way of life in their teams and organizations. I believe these ideas and tools can help you build capacity for yourself, your team, and your organization to respond creatively and effectively to complex change. Glenda H. eoyang Founding Executive Director Human Systems Dynamics Institute Circle Pines, Minnesota Preface If you can imagine a system … comprised of individual agents … each with the freedom to act in unpredictable ways … yet whose actions are inter- connected, but not known to any of the agents in the system … then we can begin to explain how this book evolved. From a strictly linear, “cause and effect” standpoint, the chances of Brenda Fake and Larry Solow join- ing forces was astronomically small, yet it happened. Three people—three seemingly unrelated stories—came together and resulted in the story you are about to read. We begin with Dr. Glenda Eoyang’s story. Her groundbreaking work in applying nonlinear dynamics to human systems created the field of Human Systems Dynamics (HSD). It was HSD that would ultimately serve as the catalyst for Larry’s and Brenda’s collaboration on this book. Dr. GlenDa eoyanG Eoyang never outgrew the two-year-old’s question, “Why …?” Growing up in a string of small towns in West Texas, she wondered why a church continued to exist even after the building burned down. She wondered why one little community celebrated different holidays than others. She wondered why sports were a passion for some, a pastime for others, and an irrelevancy to her. She wondered why some people could build words and sentences into a work of art and others barely made themselves under- stood. She wondered. St. John’s College in Santa Fe, New Mexico, turned her curiosity toward classics of the Western World. In reading and discussing great works, she discovered that Euclid, Plato, Aristotle, Galileo, and Newton also wondered, and that they did it very, very well. Studying history and the philosophy of science inspired her to reflect in new and surprising ways on her own experience with individuals and groups. She taught physics and chemistry, designed early computer-based training, started her own companies, and supported others as they implemented computer systems xiii