Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

Managers
Toyota Kata
Toyota's management routines for What are the biggest frustrations in your work?
continuous improvement.
Can QRM do with-out?

For a better way to

lead
manage
develop people

continuous improvement
adaptation
survival
superior results

Organizing Partner
How to reach your
Lean
goals when you cannot
Management see the road ahead?
Teachers

EmielvanEst 2

Top 3 frustrations for managers Research 1

1. Not working together effeciently

2. Insuffient responsibility and initiative by employees

3. Lack of focus and direction

Responsibility
& Challenge
Initiative
Source: 30 juli 2013 -http://www.managersonline.nl/nieuws/13793/de-drie-grootste-frustraties-van-
leidinggevenden.html
Karin van Zuilen en Frans Bouman

EmielvanEst 3 EmielvanEst 4

Command & Control Research 2

Manager trying to keep all the balls in the air

Do you use this style of management?

Are you being managed this way?

Responsibility
& Challenge
Initiative

EmielvanEst 5 EmielvanEst 6
Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

Laissez Faire Management Laissez Faire Management

Do you use this style of management? What is your responsibility?

Why are you needed?

Are you being managed this way? How do you influence?

EmielvanEst 7 EmielvanEst 8

Dilemma Research 3

Tell xxx* people what to do when.

OR
Let xxx* people do what they want
when they want.
Responsibility
& Challenge
Initiative
* XXX = [number of people in your organization]

EmielvanEst 9 EmielvanEst 10

Swopping styles Top 3 frustrations for managers

All balls on the floor. 1. Not working together effeciently

2. Insuffient responsibility and initiative by employees

Do you use this style of management? 3. Lack of focus and direction

Are you being managed this way?

Source: 30 juli 2013 -http://www.managersonline.nl/nieuws/13793/de-drie-grootste-frustraties-van-

leidinggevenden.html
Karin van Zuilen en Frans Bouman

EmielvanEst 11 EmielvanEst 12
Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

1 Engaged employees work with passion and feel a profound connection to their company. They drive
innovation and move the organization forward.

2 Not Engaged employees are essentially checked out. Theyre sleepwalking through their workday,
putting time but not energy or passion into their work.

3 Actively Disengaged employees arent just unhappy at work; theyre busy acting out their unhappiness. Every
day, these workers undermine what their engaged coworkers accomplish.

Source: State of the Global Workplace Gallup EmielvanEst 13 Source: State of the Global Workplace Gallup EmielvanEst 14

Source: State of the Global Workplace Gallup EmielvanEst 15 EmielvanEst 16

Wouldnt it be great if This dilemma has a solution

Tell xxx* people what to do when.

1. Every person takes initiative to solve problems and
improve their work
People & Process OR
2. The work of every
y person
p is aligned
g to deliver value for
the customer and prosperity for the organization
Purpose Let xxx* people do what they want
when they want.

This is the big management challenge * XXX = [number of people in your organization]

Adapted from John Shook

EmielvanEst 17 EmielvanEst 18
Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

Lean
Lean
Management
Management
Teachers
Teachers YOUR TEAM OR ORGANIZATIONS CULTURE
PERPETUATES ITSELF EVERY DAY

This is automatic,
unconscious
daily practicing
Team or

The power of habtis Organizational

Culture
Routines
Teaches
Mindset
and
Habits behavior
Rituals
Norms

However, a pitfall of habits can be that the

past experiences that created them do not
necessarily represent future situations.

Emiel van Est 19

Mike Rother TOYOTA KATA 20

A familiar illusion A familiar illusion

Mike Rother TOYOTA KATA 21 Mike Rother TOYOTA KATA 22

WE LIKE TO BE CERTAIN IN OUR VIEW

Thats the way our brain is wired A QUICK EXPERIMENT
Take a moment... please cross your arms.
Our mind subconsciously fills in blanks, because it hates gaps. Then re-cross them the other way.
Gaps mean we have to think hard about each circumstance,
which overwhelms our cognitive resources.
But, once we think we know we set a course and go, rather than
testing, learning and adapting. Thats where trouble begins.

Declarations
ec a at o s oof high
g co
confidence
de ce
mainly tell you that an individual
has constructed a coherent story
in his mind, not necessarily that
the story is true.
~ Daniel Kahneman, Thinking Fast and Slow

Mike Rother TOYOTA KATA 23 Mike Rother TOYOTA KATA 24

Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

QUICK EXPERIMENT In each case, how did it feel the

Please clasp your hands. second time compared to the first?
Then clasp them the other way.

For most of us the other way feels odd.

You have to consciously think about it
and be more deliberate.

Mike Rother TOYOTA KATA 10

Mike Rother TOYOTA KATA 26

OUR UNCONSCIOUS HABITS ARE FAST & POWERFUL

Our brain creates habits and heuristics to conserve resources; to free MUCH OF WHAT WE DO IS HABITUAL
up capacity for when deliberate decision making is necessary Like crossing our arms, performed almost without thinking
Habits are behaviors that have been repeated regularly and Much of what happens in your organization is a consequence
occur unconsciously. The repeated behavior develops neural of the habits that people in the organization have learned
pathways in the brain, making the behavior easier to complete. through practice, whether deliberately or by happenstance.
Why do this? The brain weighs only 3 pounds but uses 20% of
the bodys energy! Unconscious thinking enables you to get
through the day by taking care of routine decisions with
minimum fuss. Unconscious thinking is fast and instinctive,
while deliberate thinking is slow and intentional.

Unconscious Deliberate
Thinking Thinking

The subconscious can process billions of bits of information

per second, while our deliberate mind can only process a few
thousand per second.

Mike Rother TOYOTA KATA 27 Mike Rother TOYOTA KATA 28

Lean
Lean
Management
Management
Teachers
Teachers
What would happen if you practiced
folding your arms the other way every day?

Developing new habits

It would become normal; something

you can do without thinking about it.

Mike Rother TOYOTA KATA 30

Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

SO... WE CAN CHANGE OUR AUTOPILOT

Humans have the ability to deliberately develop new habits!
Thats what the Improvement Kata & Coaching Kata are about. KATA HELP YOU CREATE NEW CULTURE
We may think that all skill is innate -- that you are either
born with it or not -- but thats not 100% correct.
You can rewire your thinking and habits by deliberately
(consciously) practicing a targeted behavior pattern. This is deliberate, This is automatic,
conscious unconscious
Once the pattern youre practicing enters your daily practicing daily practicing
unconscious it gets smoother and faster and becomes Team or
the new normal, habitual way you operate. Practicing Affects Organizational Teaches
specific Culture Mindset
new Routines and
behaviors Habits behavior
Rituals
Deliberate Norms
Practice
develops
Unconscious
Thinking

You can change the culture of an organization,

and maybe even an entire society, this way.

Mike Rother TOYOTA KATA 31 Mike Rother TOYOTA KATA 32

What is a Kata? Proven effective pattern.

A pattern we practice to make it second nature A pattern we practice to make it second nature
so we do not have to think about it anymore so we do not have to think about it anymore

EmielvanEst 33 EmielvanEst 34

Own experience Wouldnt it be great if

A kata is a routine you practice to make it a habit.

1. Every person takes initiative to solve problems and
improves their work
People & Process
2. The work of every
ypperson is aligned
g to deliver value for
the customer and prosperity for the organization
Purpose

Which habbits do we need?

Adapted from John Shook

EmielvanEst 35 EmielvanEst 36
Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

Meet challenges by using a proven

What is Toyota Kata?
effective pattern of thinking and acting
Published in 2010
Understand Grasp the Establish Next PDCA Toward

mprovement Kata
the Direction Current Target Target
Research ran from 2004-2009. Condition Condition Condition

What are the unseen managerial Target ?!

Condtion
routines and thinking that lie
behind Toyota's success with

Im
continuous improvement and
adaptation?
Coaching
How can other companies

Coaching Kata
Cycles
develop similar routines and
thinking in their organizations? ? Story
Board
!
5Q

EmielvanEst 37 EmielvanEst 38

The Improvement Kata Introduction

You are here

Understand Grasp the Establish Next PDCA Toward
the Direction Current Target Target
Condition Condition Condition

?!
x Temptations around you
Target
Condtion Problems
Waste
Improvement opportunities

Adapted from Bill

Constantino
EmielvanEst 39 EmielvanEst 40

Threshold of Knowledge Threshold of Knowledge

Adapted from Bill

Constantino
EmielvanEst 41 EmielvanEst 42
Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

Waste walk, low hanging fruit Default

What can we
improve?
x x

Adapted from Bill Adapted from Bill

Constantino Constantino
EmielvanEst 43 EmielvanEst 44

The Improvement Kata 1 Understand the Direction

A different approach

Understand Grasp the Establish Next PDCA Toward

the Direction Current Target Target
Condition Condition Condition

Target ?!
x Challenge
Vision for
Custo e
Customer

Condtion

Adapted from Bill

Constantino
EmielvanEst 46

2 Grasp the Current Condition 3 Establish Target Condition

x Challenge
Vision for
Custo e
Customer
x Target
Co d t o
Condition Challenge
Vision for
Custo e
Customer

Adapted from Bill Adapted from Bill

Constantino Constantino
EmielvanEst 47 EmielvanEst 48
Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

3 Establish Target Condition 4 PDCA Toward Target Condition

What must we What must we

Improve? Improve?

x Target
Condition Challenge Vision for
Customer
x Target
Condition Challenge Vision for
Customer

Obstacles become visible

Adapted from Bill Adapted from Bill

Constantino Constantino
EmielvanEst 49 EmielvanEst 50

Threshold of Knowledge Expanded

LETS LOOK AT TWO MINDSETS

What must we
Improve?

x x Target
Co d t o
Condition Challenge
Vision for
Custo e
Customer

So, what do we need next?

Adapted from Bill

Constantino Mike Rother TOYOTA KATA 52
EmielvanEst 51

Mindset 1: A FIXED MINDSET *

We derive a lot of our sense of security and confidence from
BUT TRYING TO MAKE EVERYTHING CERTAIN
certainty, and tend to seek it. (which our brain tries to do)
The way the adult brain functions, we naturally strive to operate IS DANGEROUS
in what I call a Zone of Apparent Certainty, where things are as
expected, rational, calculable, logical, familiar, risk free & certain.
With this mindset: We expect that things will go as planned
We feel we have control and can predict

Mystery
Inside your current
knowledge threshold Heres
y
Uncertainty
Implementation 3
Apparent Comfort Why!
Certainty area

And many things should be as certain as possible! Like

the beam holding up a roof, or us serving the customer.
*Terminology by Carol Dweck, Mindset (Random House, 2006)

Mike Rother TOYOTA KATA 40

Mike Rother TOYOTA KATA 54
Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

#1: WHAT IS AHEAD OF US TRYING TO DECIDE EVERYTHING IN ADVANCE

SIMPLY ISNT CERTAIN IS INEFFECTIVE
We can see only part way down the path to any challenging goal

Cant see all

the way there

Mike Rother TOYOTA KATA 55 Mike Rother TOYOTA KATA 56

#2: THE SPECIAL LEARNING CAPABILITY OF OUR #3: UNEXPECTED RESULTS HELP YOU PROGRESS
BRAIN GETS ENGAGED WHEN WE DONT KNOW You dont learn by doing something right, because you already know
how to do it. You learn from making mistakes and correcting them.
Our human capability to learn is often latent; it has to be activated
Scientific thinking is always provisional. When a result
is different than predicted you can learn something new.
fMRI brain scan This brain is
of a person in a coasting on Strengthens
memory it already Confirmed current thinking.
Predictable has (which uses
Situation less energy) Like re-walking a
Prediction path in the snow.

Surprise. Potential
fMRI brain scan This brain is for new knowledge,
of a person in a actively engaged in Error learning & discovery.
wiring new circuits
Challenging (which
Situation uses more energy)
Prediction confirmation keeps you in place. Prediction error
leads you out of your assumptions and forces exploration.
fMRI Scans of brain activity by Dr. Gerald Hther
Presented at Production Systems 2009 Conference, Munich, May 2009 This is because prediction error reveals a knowledge threshold.

Mike Rother TOYOTA KATA 57 Mike Rother TOYOTA KATA 58

Surprise!
WHY IS THIS WAY OF THINKING AND ACTING
SO DIFFICULT?

Learning happens when reality does not

meet the expectation.

Mike Rother TOYOTA KATA 59

EmielvanEst 60
Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

You learn most from small steps NOT KNOWING IS NOT DONE
The Threshold of Knowledge is your Learning Edge

The Knowledge
Threshold is the point
at which you have no
facts & data and start
guessing.
To reach new levels
off performance
f a
knowledge threshold
has to be there.

Two points about knowledge thresholds:

1) You have to acknowledge them to see them.
2) You see further by experimenting, not conjecture.
Create many surprises!

Mike Rother TOYOTA KATA 62

EmielvanEst 61

Mindset 2: AN ADAPTIVE MINDSET How to learn and teach

With this mindset you learn to operate in two zones simultaneously: an adaptive mindset
The Zone of Apparent Certainty + the Zone of Uncertainty
In the Zone of Uncertainty:
Understand Grasp the Establish Next PDCA Toward

mprovement Kata
There is a dilemma: We want to make the best possible plan,
the Direction Current Target Target
but the optimum path will only be known in hindsight
Condition Condition Condition
There are unanticipated obstacles
You acquire/increase your knowledge as you go Target ?!
Condtion

1 Inside y
your current Mystery

Im
knowledge threshold
Uncertainty

Expanded Coaching
comfort
2
Apparent

Coaching Kata
Outside your current Cycles
Certainty
knowledge threshold area
Learning Zone ? Story
Board
!
Ingenuity Discovery
5Q

Mike Rother TOYOTA KATA 63

EmielvanEst 64

Practice Pattern 2: THE COACHING KATA

A routine for teaching the Improvement Kata
CORRECT PRACTICE MAKES PERFECT
The learner will naturally default back to his or her
The Coaching Kata is a coaching pattern to help existing ways of thinking and acting.
you teach the Improvement Kata thinking pattern.
The coach introduces corrections to ensure that
The Coaching Kata gives managers a standardized the learner practices the right pattern the right way.
approach to facilitate Improvement Kata skill
development in daily work.

Or here?

Together, the Improvement Kata and Coaching Kata

comprise a system of management
Photos from The Karate Kid, 1984

Mike Rother TOYOTA KATA 65 Mike Rother TOYOTA KATA 66

Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

THE INTENTION IS NOT A different way to manage

AUDIT AND COMPLIANCE
Its this... ...not this
Tell xxx* people what to do when

OR

Let xxx* people do what they want

Teaching the learner how to play
when they want.
the sytematic and scientific
continuous improvement game

Once you develop proficiency with the Improvement * XXX = [number of people in your organisation]
Kata and Coaching Kata you can evolve them into
kata that suit your organization.
Adapted from John Shook
Mike Rother TOYOTA KATA 67
EmielvanEst 68

Two Basic Roles

Apparent contradiction
Two Basic Routines
Result Responsibility Doing

Your manager will not tell you Propose What

what to do by when. Improve
AND With the
Improvement Kata

You are not free to do what Teach

you want when you want. Coach
(Mentor)
With the Coaching Kata
Learner
(Mentee)

Approve How
Responsibility Authority
Authority
Adapted from John Shook

EmielvanEst 69 EmielvanEst 70

LEADERS & MANAGERS ARE TEACHERS, AND DELIBERATE versus AUTOMATIC TEACHING
THEIR ACTIONS DETERMINE COMPANY CAPABILITY

Whether consciously or not, with their everyday words

and actions all leaders and managers are teaching their Here the manager Here the manager
people a mindset and way of operating. is a coach who automatically
deliberately teaches teaches and reinforces
a new way the prevailing culture

Team or
Practicing
P ti i Aff t
Affects Organizational T
Teaches
h
specific Culture Mindset
new Routines and
behaviors Habits behavior
Rituals
Norms

Mike Rother TOYOTA KATA 71 Mike Rother TOYOTA KATA 20

Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

Research 4 Daily Dialog

PDCACYCLIREGISTRATIEFORMULIER
The Five Questions Datum ProcesMeting
Proces
Stap Watverwachtje? ResultaatLetgoedop. Wathebbenwegeleerd?
1. What is the Target Condition?

Coaching Kata
2. What is the Actual Condition now?
(Turn Card Over)
3. What Obstacles do you think are preventing you
from reaching the target condition?

Which *one* are you addressing now?

Coachingcyclus
4. What is your Next Step? (next PDCA/experiment)

Experiment
What do you expect?
5. When can we go and see what we Have Learned
from taking that step?
* Youll often work on the same obstacle for several PDCA cycles.

The Coach uses the

Coaching Kata and the
Reflection Questions as a The Mentee uses the PDCA Registration Record to
Pattern for the daily coaching become well prepared for the coaching dialog.
dialog whith their Mentees. This form is the heart of the Mentees Storyboard

Responsibility These are not the only Before the start of the coaching dialog the Mentee
& Challenge questions the Coach asks. notes
Initiative Whenever necessary the 1. The observation of the experiment
Coach will ask clarifying 2. The learnings from the experiment
questions to make matters 3. A proposal for the next experiment
clear and to find out if the 4. with associated expectations.
Mentee uses the Only then the Coaching Dialog can start.
Improvement Kata pattern
properly.
EmielvanEst 73 EmielvanEst 74

Lets start!
Story Board of the Mentee 1 What is the Target Condtition?
Focus Process: Challenge
:
Target Actual PDCA Cycle
Ask this question each
Condition Conditon Record coaching cyclus. It provides
Focus Process: Challenge:
PDCACYCLIREGISTRATIEFORMULIER

focus and prevents endless Target Actual PDCA Cycle

Datum ProcesMeting
Proces
Stap Watverwachtje? Resultaat Letgo edo p. Wathebbenwegeleerd?

discussions. Condition Condition Record

Coachingcyc lus
Experiment

Obstacle Obstacle
Parkinglot Parkinglot

Adapted from Mike Rother

EmielvanEst 75 EmielvanEst 76

Turn the card.

2 What is the Actual Condtion now? What was your last step?

Ask this question each What was the experiment

Focus Process: Challenge: Focus Process: Challenge:
coaching cyclus. In that we spoke about last time?
way you stay up to date Target Actual PDCA Cycle Target Actual PDCA Cycle
with the functioning of the Condition Condition Record Condition Condition Record
process based on facts and
data. PDCACYCLIREGISTRATIEFORMULIER
Datum ProcesMeting
Proces
Stap Watverwachtje? ResultaatLetgoedop. Wathebbenwegeleerd?

Obstacle
Parkinglot Obstacle
Parkinglot
Coachingcyclus
Experiment

EmielvanEst 77 EmielvanEst 78
Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

What did you expect? What actually happened?

What did you expect to What are the observaties?

Focus Process: Challenge: Focus Process: Challenge:
come out of that Did the expectations come
experiment? Target Actual PDCA Cycle true? Target Actual PDCA Cycle
Condition Condition Record Condition Condition Record
We can learn the most from
PDCACYCLIREGISTRATIEFORMULIER the expeactations that do PDCACYCLIREGISTRATIEFORMULIER
Datum
Proces
ProcesMeting
not come true. Datum
Proces
ProcesMeting

Stap Watverwachtje? ResultaatLetgoedop. Wathebbenwegeleerd? Stap Watverwachtje? ResultaatLetgoedop. Wathebbenwegeleerd?

Obstacle
Parkinglot Obstacle
Parkinglot

Coachingcyclus

Coachingcyclus
Experiment

Experiment

EmielvanEst 79 EmielvanEst 80

Turn the card again

What did you learn? 3 What obstacles do you think are preventing
you from reaching the target condition?

Learning is the purpose! Did we find new obstacles?

Focus Process: Challenge: Focus Process: Challenge:
Are the previously found
Did the last experiment provide Target Actual PDCA Cycle obstalces still relevant? Target Actual PDCA Cycle
new knowledge and did the Condition Condition Record Condition Condition Record
mentee recongnize that?
PDCACYCLIREGISTRATIEFORMULIER
Datum ProcesMeting
Proces
Stap Watverwachtje? ResultaatLetgoedop. Wathebbenwegeleerd?

Obstacle
Parkinglot
Obstacle
Parkinglot
Coachingcyclus
Experiment

EmielvanEst 81 EmielvanEst 82

Which one are you adressing now? 4 What is your next step?

Focus on 1 obstacle. Prevent Is this a scientifically derived

Focus Process: Challenge: Focus Process: Challenge:
working on more issues proposal based on the learnings?
simultaneously. We want small Target Actual PDCA Cycle Target Actual PDCA Cycle
quick experiments. Condition Condition Record Is this proposal concrete and does Condition Condition Record
it have a chance to provide new
knowledge? PDCACYCLIREGISTRATIEFORMULIER
Datum ProcesMeting
Proces
Stap Watverwachtje? ResultaatLetgoedop. Wathebbenwegeleerd?

Obstacle
Parkinglot Obstacle
Parkinglot
Coachingcyclus
Experiment

EmielvanEst 83 EmielvanEst 84
Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

4 Wat verwacht je daarvan? 5 When can we go and see what we

have learned from taking that step?

Leren is ons doel! We want short quick

Focus Process: Challenge: Focus Process: Challenge:
experiments.
Is dit een verwachting die Target Actual PDCA Cycle Target Actual PDCA Cycle
concreet is en wellicht niet Condition Condition Record Is the proposed term in line Condition Condition Record
bewaarheid zou kunnen with the proposed experiment?
worden? PDCACYCLIREGISTRATIEFORMULIER
Datum ProcesMeting
Proces
Stap Watverwachtje? ResultaatLetgoedop. Wathebbenwegeleerd?

Obstacle
Parkinglot
Obstacle
Parkinglot

Coachingcyclus
Experiment

EmielvanEst 85 EmielvanEst 86

Lean
Lean
Management
Management Is QRM challenging?
Teachers
Teachers Does QRM venture into the
unknown?

Toyota's management
routines for continuous
x
improvement.
improvement
Vision for
Challenge Custo e
Customer

Can QRM do with-out?

Emiel van Est 87 Adapted from Bill

Constantino
EmielvanEst 88

How does QRM handle this

How does QRM handle uncertainty?
challenge?
How does QRM teach an adaptive
mindset?
1. Every person takes initiative to solve problems and
improve their work
1 Inside your current
knowledge threshold
Mystery

Uncertainty People & Process

Expanded
comfort 2. The work of every
ypperson is aligned
g to deliver value for
2
Apparent
Outside
O t id your currentt
knowledge threshold
Certainty
area the customer and prosperity for the organization
Learning Zone
Purpose
Ingenuity Discovery

This is the big management challenge

Adapted from John Shook

TOYOTAKATA MikeRother 89 EmielvanEst 90

Toyota'smanagementroutinesforcontinuousimprovement;canQRMdowithout?

What is QRMs solution for

A winning combination?
this dilemma?

Tell xxx* people what to do when.

OR
Let xxx* people do what they want
when they want.

* XXX = [number of people in your organization]

EmielvanEst 91 EmielvanEst 92

More information?

EmielvanEst 93