Thursday, April 19, 2007

Systemic Failure

Welcome to the next instalment in our series of posts about why Lean fails and in this short post we explore the way that organisational systems contribute to Lean projects either falling short of expectations or failing completely.

Systems cause failures through three things:

1. Rigid computerised systems that are built to support faulty processes
Many computerised systems are built around 'common' processes and are difficult to customise for specific changes after installation, and anyway the training required to learn how to operate these systems creates problems with resistance to changes and organisational inertia. This is not an easy thing to overcome and after creating a 'Future State' for your organisational processes may need some additional investment to modify the system to make it 'fit for purpose' and able to support the proposed 'Future State'.

2. Faulty operating procedures which degrade improvements
In making changes to an organisation's value streams you will often find procedures, operating conventions and procedures which need to be changed either by changing what is written or changing behaviours. Obviously there is a need to ensure standards of compliance are maintained but many procedures and practices were designed to operate under the 'Current State' and need to be changed to be suitable for the 'Future State'. Failure to address these issues will bring the change programme to a halt with a bump.

3. Measurement and reward systems that are designed for the 'old way' not the 'new way'
The way that processes are measured and people are rewarded/recognised can severely hamper organisational success with Lean. This is a particular problem within larger groups where corporate finance teams impose certain reporting restrictions that force a certain type of behaviour whilst it is not uncommon to find that Lean can be seen as a penalty or a cause of teams finding it harder to achieve key performance measures - something that will kill it stone dead!

Anyway, if the terms 'Current State', 'Blue Sky State' or 'Future State' are new to you - drop me an email to markeaton(a)amnis-uk.com and I will send you some notes on Value Stream Analysis.

No comments: