Chapter 4

Lean Team

The third element of lean management is the use of a team-based approach. The logic for utilizing teams can be summed up by Aristotle’s idea that “the whole is greater than the sum of the parts.”¹ Namely, a team ­possessing the correct camaraderie and esprit de corps will facilitate objective attainment. As noted by Taiichi Ohno, “A championship team combines good teamwork with individual skill.”² A team-based approach promotes system goals further than any group of individuals acting ­independently can. Baines and Langfield-Smith observe in their study of 151 organizations that a shift toward a strategy to differentiate the organization from competition typically results in an organization design that relies upon greater use of team-based structures.³

Lean is primarily about management, workers, and the trust that binds the two. These are the critical elements of a lean system.⁴ The ­Italian philosopher Machiavelli (1469–1527) has been attributed with the ­following observation:

There is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than the creation of a new system. For the initiator has the enmity of all who profit by the preservation of the old system and merely lukewarm defenders in those who would gain by the new one.⁵

The point to be understood from this observation is that lean implementations often change companies, threatening (or appearing to threaten) both corporate culture and customary ways of conducting work. This observation underscores the importance of a team-based approach and gaining 100 percent agreement and participation for achieving improvement objectives.

This chapter examines four key concepts regarding the use of teams. First, the identification of team members and team composition is ­discussed. Second, the leader’s role in approaching and developing a team is discussed. Third, a seminal team development process and ­maturation model is reviewed. Finally, effective teams require team member participation. Five approaches for gaining team member involvement are ­discussed to conclude the chapter.

Team Member Identification and Team Composition

There exists some thought-provoking and debatable insight into the development of a team.⁶ In an earlier chapter, it was noted that people have the capacity to learn or to alter their behavior and to add to their skills and capabilities. An interesting guideline for team construction is based upon this notion. Namely, one should first consider examining a person’s inherent traits and characteristics rather than the person’s ­specific educational background, practical skills, specialized knowledge, or work experience. Although these latter items can assist people to “hit the ground running,” they can also be learned. A person’s inherent traits and characteristics are difficult to change or to learn.

It has been suggested that people with desirable inherent traits and characteristics will require less managerial and motivational effort, will more easily and more quickly adapt to a changing world, will more likely support needed changes in direction, and will unify behind decisions, regardless of parochial interests.⁷ These qualities are clearly desirable as firms alter course from the current state to pursue objectives associated with an ideal state. Team member traits and characteristics are positively correlated with the ability to achieve improvement objectives.

It is important to establish your team prior to establishing the objectives and strategies for your team for five reasons.⁸ First, establishing your team and then setting the agenda with them creates team building, a “buy-in” consensus, motivation, and a longer list of options to consider, and it develops leaders for the future.

Second, if you begin with your team prior to establishing the plan and strategies, you can identify those team members who can more easily adapt to a subsequent changing team composition. There is a well-defined team development and maturation process (discussed in “Team Development Process and Maturation Model”). Changes in team member composition, especially in the form of the team leader, have significant consequences on team performance. Teams comprising people who easily adapt will find changes in team composition less disruptive.

Third, it is desirable for team leaders to spend less time motivating team members and more time pursuing improvement objectives. Inherent traits and characteristics will determine in part how much time is spent motivating team members. Some people are self-motivating. ­Furthermore, the savings of reduced absenteeism when workers look ­forward to going to work can be significant.

Fourth, even if an outstanding vision, plan, and strategies are outlined for a team, if the team is composed of the wrong members, the likelihood of success is greatly diminished. Great vision without an effective team is largely irrelevant. This is true for the duration of an improvement project as well. Namely, if you believe you need to make a personnel change, act and make a change. Otherwise, you will expend a lot of energy on and off the job dealing with the wrong person(s), and the right people will question your leadership abilities.

Finally, it may be prudent for a leader to put the “best” person(s) on the firm’s biggest opportunities, not the biggest problems. The reason for this suggestion is that if you put him on problems, you limit his abilities. The best that can happen is that the problem is solved and goes away. The limits of an opportunity, by its nature, are often unknown. By placing this person on the biggest opportunity, you can leverage his capabilities to the fullest extent and take advantage of the most the opportunity has to offer.

It is important for leaders to realize that a team possessing the ­correct camaraderie and espirit de corps will facilitate objective attainment. ­Leaders who instill successful change often do not first develop a plan and then identify the team. Rather, these leaders typically identify the team and then jointly develop the plan.

Leader’s Role in Developing Teams

Leaders do play an important role in developing a team. Many of the following suggestions were noted in the chapter devoted to lean leadership. First, the style of leadership is critical for promoting objective attainment. Good practices such as relying upon a participative approach, communicating an awareness of the task importance, encouraging members to focus on the team or organization goals rather than self-interests, and assisting subordinates to fulfill their potential should be utilized. Most people respond more favorably to positive methods of reinforcement. Highlighting the challenge and interest of the work goal(s), delegating and granting greater authority or the ownership of the work to team members, providing opportunities to learn and expand one’s skills, as well as an opportunity to demonstrate one’s value to the team are highly effective motivators for leaders to remember.

Team leaders must be cognizant of individual team member’s needs. People have differing needs regarding the extent of job structure, attention and contact, sharing ideas, as well as receiving praise and rewards. Initial team member identification is not sufficient. It is imperative that team leaders develop the team during initiatives as well.

Team leader attributes are important too. Leader attributes such as honesty, integrity, and character are vital for achieving an effective culture, team unity, an ability to resolve conflict, and leadership support. Team leaders play an integral role in evaluating, compensating, and promoting team members. These attributes will help to create a fear-free environment where nothing is sacred, questions can be asked often, and problems can be revealed. These attributes are critical for success.

Since lean is based upon improvement through change, it is imperative that leaders invest in team members’ training, education, and skills. This includes cross-training team members, which promotes flexibility and greater idea generation. These are prerequisites to facilitating tomorrow’s change, as tomorrow’s work needs to be performed better than it has been today. Recognition that the most important asset of any firm is its employees necessitates investing in the capabilities of this asset. Leadership must promote, encourage, and actually involve itself in the process for improving education and skills through continuing teaching, learning, and training. An organization that can effectively build quality into its people is more likely going to be able to produce quality in its products and services. Simply put, leaders must devise an effective system. This is not the vision of a single person but of the many who participate in it.

Knowledge management (KM) is an emerging area of commercial and academic research. Presently, it comprises a range of strategies and practices used in an organization to identify, create, represent, share, and preserve information. The information comprising the knowledge base of KM systems resides in the lessons learned by individuals. KM is employee capabilities. KM is embedded in organizational processes or practices. This knowledge base should be considered a valuable organizational asset. Similar to other organizational assets, leaders must recognize the importance of investing in employee capabilities as well as preserving and ­sharing this asset within value chain networks.

Similar to the process of implementing change referred to in earlier chapters, knowledge base develops in a phased manner. Initially, the information, insights, and experiences of an internal, localized transformation activity are created. The firm then typically seeks to integrate and coordinate this knowledge across a broader set of activities or systems within the firm. Subsequently, these capabilities are embedded within the processes and practices of the entire firm, making them ­multifunctional and organization based. Eventually, firms that have successfully deployed the knowledge base on a multifunctional scale will seek to have this knowledge base serve as a network-based asset reaching outside the limits of their transformation processes in order to encompass the value chain network.

The knowledge base of one’s team is critical to the attainment of lean objectives. Effective lean leaders understand its value for sustaining the organization. As it accrues, the sustainability of an organization should improve as long as the entrepreneurial spirit remains.

Team Development Process and Maturation Model

As noted in the section “Team Member Identification and Team ­Composition,” the development of a team should consider peoples’ ­inherent traits and characteristics, not simply their capabilities. People with superior or more desirable inherent traits and characteristics may require less managerial and motivational effort and may more easily and quickly adapt to a changing world. These people often unify behind ­decisions, regardless of their own self interests.

Once a team has been formed, there is a well-defined team development and maturation process.⁹ We have all experienced it. This process model merits discussion as we can benefit from a clear understanding of it. The process is best described by the following four stages.

The first stage of the team development and maturation process model has been referred to as forming. In this initial stage, team member introductions occur and initiative objectives are shared. This stage represents a discovery process. Therefore, during this stage, team member behavior is typically cordial, reserved, and formal.

The second stage of the process is not typically characterized by such cordial and formal behavior. Rather, it is during this stage that confrontational behavior often begins. This stage is commonly referred to as the storming stage. Here, members begin trying to establish a “pecking order.” Members often attempt to establish a dominance hierarchy, which is believed to reduce the incidence of conflicts. Civil people subconsciously understand that conflicts represent the potential for a greater expenditure of energy.

The third stage of the process is referred to as the norming stage. Effective work patterns begin to emerge during this stage because team members have developed a familiarity with one another. It is during this stage that team members begin to tackle improvement efforts and problems rather than personal issues. During this stage, mutual respect develops; so joint decision making may begin to emerge.

The fourth stage of the process represents mature group development. This stage is often referred to as performing. In it, a high level of respect and trust has been achieved, and consequently there is the potential for effective and efficient team performance to emerge.

An understanding of this process model suggests that lean leaders adapt their leadership styles to account for team member behaviors and development along this model’s path. Earlier development stages suggest that a directive style may be more appropriate. Later development stages suggest that a delegating style may be more appropriate.

The consequences of functional teams include greater initiative and team member commitment, higher job satisfaction and morale through a sense of belonging, fewer conflicts, and more successful initiatives. The consequences of dysfunctional teams include lower motivation, frequent conflict and disagreement, greater lack of respect, poor communication, and an increased likelihood for initiative failure.

Furthermore, whenever there is a change in team composition, the development stages typically start over again. This is one reason why it is so critical to have the right team and why leadership is the most important lean element.

Team Member Involvement: Hoshin Kanri, Quality Circles, Kaizen Events, and Suggestion Programs

Team member involvement is the heart of lean production. The most important asset of any firm is its human resources. Using teams represents an understanding by leaders that people are the firm’s most important asset. Team member involvement is aimed at nurturing a company’s human resources.

For decades, Toyota’s Production System has referred to its team-based approach as respect for people. In order to gain employee involvement, leadership must demonstrate respect for the worker by sharing the vision and communicating the need for employee involvement. ­Leadership must instill confidence in workers that continuous improvement efforts are necessary and will not result in job losses but rather deployment. ­Otherwise, mistrust will prevail and employees will withdraw and ­possibly even sabotage improvement efforts. The leadership skills and motivation concepts previously addressed are absolutely critical for achieving employee involvement.

Not only must leaders share the vision and communicate the need for employee involvement but there must also be an understanding by team members of the necessity for improvement changes. One of the best sources for improvement ideas is the factory floor. Various tools are used to achieve greater involvement, including group planning (hoshin kanri), quality circles (QCs), kaizen events, and employee suggestion programs.

Although it is time-consuming, the hoshin kanri process (discussed in Chapter 3) can turn skepticism and resistance into support, create cross functional cooperation, fully engage the workforce in developing executable strategies, link improvement and corrective actions with financial results, and better enable the team to respond to changes and setbacks.

Furthermore, effective use of teams tends to offer a self-regulating ­feature. Teams commonly promote norms of productivity and behavior in a horizontal manner. Individual team members are expected to adhere to these norms through informal peer pressure or formal assessment mechanisms. Teams possessing strong identities can serve as ­powerful horizontal incentive mechanisms, with the possibility of rendering ­sanctions, enforceable side contracting, as well as peer pressure resulting in enhanced performance.¹⁰

A QC is tool used to generate direct employee involvement in the improvement process. It is typically a small group of 3 to 10 employees doing related work that meets at regular intervals. QCs represent a decentralization of leadership’s responsibility for continuous improvement. QCs offer numerous benefits, including the opportunity to provide substantial individual motivation and confidence, improve managerial decision making as two heads are usually better than one, provide an opportunity to promote a sense of teamwork, a tendency to enforce group norms or expectations, as well as an opportunity to improve morale and meet social needs.

There are several caveats regarding the use of QCs. First, although one objective for the tool is to encourage greater involvement, QCs should operate on a voluntary basis. This is the reason why it is important to communicate the need for employee involvement. It is also important for leadership to convey expectations for this involvement tool. Its regular agenda should be confined to improvement objectives. Similarly, it is important to manage members’ expectations. Most improvement comes in small incremental steps. Rarely are significant improvement leaps encountered. Managing expectations attempts to keep motivation higher as leadership and team members alike may become frustrated with small and infrequent improvement achievements.

Similar to QCs are the use of kaizen events or kaizen circle activities. Although kaizen itself recognizes never-ending, continuous improvement, a kaizen event is typically a short-term activity aimed at achieving small, incremental improvement commonly in a localized aspect of a process.

Suggestion programs should be an integral element of any kaizen program. A suggestion program is a tool that solicits ideas for improvement directly from employees. It recognizes that many improvement ideas are generated by employees themselves. Suggestion programs focus on continually engaging employees.

Suggestion programs that have been the most successful over the long term possess the following characteristics. First, management response time to suggestions must be standardized. For example, a response must be forthcoming within a week of the suggestion. It can be demoralizing if effort is put forth, with no response being offered.

Second, the response offered must provide constructive feedback. It must acknowledge the value of the suggestion, provide an explanation of what will be done with the suggestion, explain why the chosen course of action is being taken, and note when the action is to be taken.

Third, any changes implemented as a result of improvement initiatives should become standardized practice. Standardization of practices (discussed in Chapter 5) reduces variation.

Fourth, suggestion programs must provide a mix of rewards, both individual and group rewards as well as rewards that go beyond financial incentives. If an individual receives an award that ignores the contribution by several others, those not recognized will find the process demoralizing. If a group receives an award when a member(s) did not make a contribution, as a minimum, frustration by deserving recipients will ensue. Suggestion programs should also be aimed at intrinsic and extrinsic motivators. Remember, the single best motivator for most people is challenging work goals. Suggestion program rewards ought to have a process focus in addition to a results focus.¹¹ For example, it is important to emphasize the extent of involvement such as the number of participants and the number of suggestions, not simply the value of the suggestions.

Fifth, suggestion programs must not overlook the contributions made by the evaluators themselves. A prompt and thorough assessment program of the hopefully numerous suggestions can represent a valuable but significant workload. Rewards for evaluators should not be overlooked.

Metrics and Rewards

The design of metrics and reward systems are also important for encouraging involvement. As noted earlier, metrics affect decisions and actions as well as influence behavior. Rewards are used to encourage improvement and to reinforce good behavior. Aligning rewards with desired ­behaviors is important for integrated team-based systems.¹² Guidelines for ­establishing metrics and reward systems were identified in the previous ­chapter. In order to reduce repetition, these guidelines are simply reiterated in Table 4.1.

Table 4.1 Guidelines for metric and reward systems design

Summary

Individuals often perceive the change resulting from lean implementations as threatening. It may be as benign as a change in the standard methods for performing a task, possibly changing the organizational culture itself, or more dramatically, threatening one’s employment.

This chapter examines four key concepts regarding the use of teams. The concepts addressed are

1. The identification of team members and team composition. Five observations are offered for identifying team members.
2. The leader’s role in approaching and developing a team. Suggestions are offered for the role leaders can play in developing effective teams over time.
3. A seminal team development process and maturation model is reviewed.
4. Effective teams require team member participation. Five approaches for gaining team member involvement are discussed.

It is imperative that the leader align team member efforts. The leader must create the conditions so that all of the team members are working toward organizational goals. This necessitates communicating the vision by words and actions so subordinates understand and pursue shared goals. It is important to remember that a team possessing the correct ­camaraderie and espirit de corps will facilitate objective attainment.