Change management
Kaizen
2015-05-12
Antti Salonen
Change management
Criteria for facilitating change
Vision
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Skills
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Skills
Vision
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Vision
+
Incentives
+
Resources
+
Incentives
+
Resources
+
Incentives
+
Resources
+
Resources
+
Skills
+
Vision
+
Skills
Vision
+
Skills
+
Incentives
+
+
Incentives
+
Resources
+
Action
plan
= Change
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Action
plan
= Confusion
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Action
plan
= Anxiety
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Action
plan
= Resistance
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Action
plan
= Frustration
+
= False starts
Change management
Kotter’s eight step model:
1.  Establishing a sense of urgency.
2.  Creating the guiding coalition.
3.  Developing a vision and strategy.
4.  Communicating the change vision.
5.  Empowering employees for broad-based action.
6.  Generating short term wins.
7.  Consolidating gains and producing more change.
8.  Anchoring new approaches in the culture.
Kotter, JP (1996) Leading Change, Harward Business School Press, Boston
Change management
Prerequisites for change:
•  The right organization
•  Management by participation and visible support
•  Improvements through small-group efforts
•  Established, good communication
•  Motivation, empowerment, and work environment
•  A learning culture
Nord, C. Pettersson, B. Johansson, B. (1997) TPM – Total Productive
Maintenance med erfarenhet från Volvo, IVF, Mölndal
Change management
Three phases of personal development during change implementation
Participation
Convinced
Prioritizing
Forgetting
Repressing
Wellcoming obstacles
Search for excuses
Thaw phase
Change phase
Stabilizing phase
Time
Nord, C. Pettersson, B. Johansson, B. (1997) TPM – Total Productive Maintenance med erfarenhet från Volvo, IVF, Mölndal
Change management
Cultural obstacles to change:
•  “The past was better”
•  “We have tried that before”
•  “We have not tried that before”
•  “That may work in other places, but not here”
•  “Not Invented Here”
•  BOHICA (Bend Over, Here It Comes Again)
Nord, C. Pettersson, B. Johansson, B. (1997) TPM – Total Productive Maintenance med erfarenhet från Volvo, IVF, Mölndal
Change management
Management obstacles to change:
•  “We have too much work to find time for
improvements”
•  “We can not work harder”
•  “We don’t see any results”
•  “My staff are not ready for the responsibilities”
Nord, C. Pettersson, B. Johansson, B. (1997) TPM – Total Productive Maintenance med erfarenhet från Volvo, IVF, Mölndal
Change management
Driving Forces for change:
•  Visible and participating management
•  Information and training
•  Competence and insight
•  Continuity and persistence
•  Long-term thinking
•  Communication
•  Visible results
•  Participation
•  Motivation
Lycke, L. (2000) ”Implementing Total Productive Maintenance, Driving Forces and Obstacles, Luleå, Luleå University of Technology
Change management
Success factors for change:
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A common vision of the future
A thorough gap-analysis
Focus the change on one or two central themes that align with the
proposed change
A strong leadership that empowers the change and guide the cultural
change
Create engaged co-workers, especially in middle management
Ensure that the organizational structure supports the wanted culture
Ensure that KPIs and reward systems supports the change
Work, pro-actively with education and training to ensure that the staff
has the needed knowledge and skills
Secure the needed technical support
Develop an implementation plan for the change to ensure a common
view of the work
Bechtel, R.L., Squires, J.K., (2001), “Tools and techniques to facilitate change”, Industrial and Commercial Training, Vol. 33 No. 7 pp. 249-254. Kaizen – Kaikaku
Kaizen: Continuous, incremental improvements
Kaikaku: Radical improvements
Process performance
Kaizen – Kaikaku
Kaikaku:
•  Radical improvement
•  Top-down initiative
•  Fundamental rethinking of the system
•  Stretched goal setting
Kaizen:
•  Incremental improvements
•  Bottom-up initiative
•  Improvementsa of the existing system
Time
Kaizen
Process
Finding
problems
Generating
solutions
Taking
actions
Eight guidelines for problem solving in Kaizen
(G1)
Observe Gemba with severe eyes
(G2)
Never be satisfied with current operation
(G3)
Repeat why when one sees abnormalities
(G4)
Do not blame operators but blame system or standard
(G5)
Use wisdom thoroughly before using money
(G6)
Create temporary solution even if the optimal solution is unknown or takes time to be implemented
(G7)
Initiate change immediately when a solution is available
(G8)
Initiate change even if there is an uncertainty, more improvements will be found after change
Yamamoto,Y. Bellgran, M. (2010), ”Improvements towards lean production”, Assembly Automation,Vol. 30, No. 2, pp. 124-130.
Next lecture, Tuesday19/5: Investment analysis
Reading:
•  Kotter, J.P. (1995), “Leading change: Why transformation efforts fail”, Harvard Business Review, March-April, 1995 pp.
59-67.
•  Yamamoto,Y. Bellgran, M. (2010), ”Improvements towards lean production”, Assembly Automation,Vol. 30, No. 2, pp.
124-130.
Extra reading for the interested:
•  Ljungström, M. (2005), ”A model for starting up and implementing continuous improvements and work development
in practice”, The TQM magazine,Vol. 17, No. 5, pp. 385-405
•  Kotter, JP (1996) Leading Change, Harward Business School Press, Boston
•  Nord, C. Pettersson, B. Johansson, B. (1997) TPM – Total Productive Maintenance med erfarenhet från Volvo, (in
Swedish), IVF, Mölndal
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