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Toyota Kata Mobilizing our ingenuity through good management Mike Rother, February 2010 The practice of kata is the act of practicing a pattern so it becomes second nature. In its day-to-day management Toyota teaches a way of working -- a kata -- that has helped make it so successful over the last six decades. Toyotaʼs Improvement Kata is something we overlook in benchmarking and should learn more about in order to understand Toyotaʼs story. Copyright © 2010 Mike Rother, all rights reserved 1217 Baldwin Avenue / Ann Arbor, MI 48104 USA / tel: (734) 665-5411 / [email protected]
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Page 1: Toyota kata.

© Mike Rother TOYOTA KATA 1

Toyota KataMobilizing our ingenuity through good management

Mike Rother, February 2010

The practice of kata is the actof practicing a pattern so it becomes second nature.

In its day-to-day management Toyota teaches a way of working -- a kata -- that has helped make it so successful over the last six decades.

Toyotaʼs Improvement Katais something we overlook in benchmarking and shouldlearn more about in order to understand Toyotaʼs story.

Copyright © 2010 Mike Rother, all rights reserved1217 Baldwin Avenue / Ann Arbor, MI 48104 USA / tel: (734) 665-5411 / [email protected]

Page 2: Toyota kata.

© Mike Rother TOYOTA KATA 2

An organizationʼs processes, practices and results are an outcome of peopleʼs thinking and behavior.

If processes are an outcome, then itʼs important to ask, How do we influence our behavior in order to accomplish continuous improvement, adaptiveness, and innovation?

Toyotaʼs answer is through kata. Kata are practice routines, like dance steps, that develop particular skills and ways of thinking.

Page 3: Toyota kata.

© Mike Rother TOYOTA KATA 3

THE TOYOTA KATA DEFINITION OF MANAGEMENT

The systematic pursuit of desired conditionsby utilizing human capabilities

in a concerted way

We want to behere

We are here

Currentcondition

Desiredcondition

TargetconditionChallenge

Page 4: Toyota kata.

© Mike Rother TOYOTA KATA 4

A MANAGEMENT TASKThe task is not to introduce new techniques, principles, ethics or solutions, but to establish a culture of continuous improvement, adaptation and innovation by practicing a method or behavior pattern that develops improvement skills and habits.

This is very much like training in sports.

Page 5: Toyota kata.

© Mike Rother TOYOTA KATA 5

But leading people to implementing solutions doesnʼt make an organization adaptive and continuously improving. Hereʼs why:

• It caters to and strengthens our aversion to uncertainty,rather then developing exploratory mindset and skills

• Todayʼs solutions arenʼt the ones that will meet tomorrow's challenges

It's not solutions themselves that provide sustained competitive advantage. Itʼs the ability of the organizationʼs members to develop solutions.

HOW HAVE WE BEEN MANAGING?Leaders and managers have tended to focus on outcomes and solutions

A solution at Toyota... ...copied at a U.S. company

Page 6: Toyota kata.

© Mike Rother TOYOTA KATA 6

(1) Where we are(2) Where we want to be(3) By what means we should navigate the

unclear territory between here and there.

We want to behere

We are here

Unclear Territory

This is a grey zone!

Obstacles

DEVELOPING SOLUTIONSThere are only 3 things we can and need to know with certainty

We donʼt know in advance what all the steps will be

Page 7: Toyota kata.

© Mike Rother TOYOTA KATA 7

HOW DO YOU IMPROVE, ADAPT & INNOVATE?• How will you make your kanban system work?• How will you achieve 1x1 flow?• How will you achieve shorter value-stream lead time?• How will you achieve your objective?

The way forward is iterative & experimenting, aimed at a desired condition that we donʼt yet know how we will achieve.

Uncertainty / Learning Zone

NextTarget

Condition

Current KnowledgeThreshold

We wantto be here

next

Obstacles

Unclear

Territory

? ?

?

Page 8: Toyota kata.

© Mike Rother TOYOTA KATA 8

BUT THERE IS A DILEMMA(A) Our brain favors existing neural pathways (comfort area)

The way our brain works we seek certainty and try to avoid judgement and criticism. We prefer to operate inside our current knowledge threshold.

(B) Meeting challenges - improving and adapting - means developing new neural pathways (learning area)

Itʼs impossible to remove uncertainty from the processof improvement, adaptation and creation. The way forward lies outside our current knowledge threshold.

Comfortarea

ApparentCertainty

Mystery

Uncertainty

Learningarea

Page 9: Toyota kata.

© Mike Rother TOYOTA KATA 9

The trick is to develop well-worn mental circuits not for solutions, but for a means by which we deal with dynamic, uncertain conditions.

Like training in sports: To prepare for contests with unpredictable paths, the focus of the training is not solutions, but practicing how to play.

A SOLUTION TO THIS DILEMMA

People can handle uncertainty, work iteratively, adapt and meet challenges...

...if they have practiced and learned a way of doing that.

This concept is the basis of the book Toyota Kata

Page 10: Toyota kata.

© Mike Rother TOYOTA KATA 10

The Toyota Kata Message:WE CAN MEET THE CHALLENGES FACING US

If we practice and learn an effective wayof navigating the learning zone

Page 11: Toyota kata.

© Mike Rother TOYOTA KATA 11

Establish the Next Target Condition

TargetCondition

PDCA Toward the Target Condition

The 5 Questions

GoandSee

PLAN

CHECK DO

ACT

C C

T C

Grasp the Current

Condition

Understandthe

Direction

What challenge are we striving to meet?

The step-by-step discovery process between where we are and where we want to be next.

What pattern do we want to have next?

What is the current pattern of working?

321 4

THE PATTERN THAT TOYOTA PRACTICES:- THE IMPROVEMENT KATA -

The Improvement Kata is a four-part routine. Itʼs a systematicand scientific way for people to successfully navigate

through unknown territory together.Itʼs the backbone practice in a Lean organization.

Page 12: Toyota kata.

© Mike Rother TOYOTA KATA 12

Fractal depiction by Mr. Emiel van Est

THE IMPROVEMENT KATA IS FRACTALBecause the Improvement Kata is content neutral

it can be practiced throughout an organization

Itʼs a decentralized yet aligned process of improvement, adaptation and innovation

Page 13: Toyota kata.

© Mike Rother TOYOTA KATA 13

AND THEREʼS A COACHING KATAFOR TEACHING THE IMPROVEMENT KATA

The Coaching Kata is a set of coaching routines to practice in order to develop effective coaching habits.  It's a coaching pattern to help you teach the Improvement Kata thinking pattern.

The Coaching Kata gives managers and supervisors a standardized approach to facilitate Improvement Kata skill development in daily work.

The coach needs to know both the Improvement Kata and the Coaching Kata!

Page 14: Toyota kata.

© Mike Rother TOYOTA KATA 14

HOW DO YOU CHANGE MINDSETAND ORGANIZATION CULTURE?

From one of implementing pre-defined solutions,to one of actively developing new solutions

Psychology and brain research are clear:Humans have the ability to alter their mindset. Our brain is equipped for learning new rules, patterns and habits.

Page 15: Toyota kata.

© Mike Rother TOYOTA KATA 15

Dendrites (receiver)Cell

BodyAxon (sender)

The human brain is estimated to contain 100 billion neurons. Neurons form circuits within the brain, which underlie perception and thought.For communication between two neurons to take place, an electrical impulse travels down an axon to a synapse, or gap, where transmission occurs.Both the strength of connection between neurons (ease of information transmission) and the number of connections increase with use. Whatever you focus on and practice - with associated emotions - weaves a habit or pattern into your thinking. (Emotion helps determine what to imprint.)

MINDSET = NEURAL PATHWAYS OR CIRCUITSItʼs physiological

“Every time you do something,you are more likely to do it again.”

~ Alvaro Pascual-Leone

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© Mike Rother TOYOTA KATA 16

TO CHANGE MINDSET AND DEVELOP NEW SKILLS FOCUS ON THESE ELEMENTS

PRACTICERepetition

COACHINGCorrective feedback

KATAStructured routine

to practice

MASTERYOvercoming

obstacles

To develop new habits through practice, aLearner will have to experience success.It will be the responsibility of the Coach to give the Learner procedural guidance that makes the Learner successful in overcoming obstacles on the way to their target condition.

Page 17: Toyota kata.

© Mike Rother TOYOTA KATA 17

THIS LEADS TO A NEW CONSIDERATIONFOR LEADERSHIP AND MANAGEMENT

In order to practice you need to know what to practiceTo change mindset and culture through deliberate practice, the organizationʼs leaders should specifythe pattern that is to be practiced and coached.The organizationʼs managers should learn the pattern and how to coach it.Thatʼs exactly what Toyota does... Toyotaʼs managers teach a common means for developing solutions: The Improvement Kata.

Solution How todevelop solution

OurManagement

SystemGiven / Directed

ToyotaʼsManagement

SystemSpecified

Guided & directedLeft open

Left open

Page 18: Toyota kata.

© Mike Rother TOYOTA KATA 18

MAKE THE PRACTICING PART OF NORMALDAILY WORK, NOT A SPECIAL EVENT

If we only periodically conduct training events or only episodically work on improvement -- and the rest of the time itʼs business as usual -- then according to neuroscience what weʼre actually teaching is business as usual.

If we want a Lean revolution, then we need to shift emphasis from staff-led, episodic improvement efforts, to daily efforts led by middle managers.

A slice of each day should be focused on iterating toward the next target condition by applying & coaching the Improvement Kata.

Supervisor

AreaManager

Daily

Page 19: Toyota kata.

© Mike Rother TOYOTA KATA 19

ONE CONCLUSION IS BECOMING CLEARWeʼre not going to be successful by copying Toyotaʼs solutions

We should be copying how Toyota develops solutions.(Which is a universal, not Toyota-specific, science-based approach.)

The Improvement Kata and Coaching Kata are practice routines for teaching and transferring that approach.

Once you develop proficiency with the Improvement Kata and Coaching Kata you can evolve them into kata that suit your organization.

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© Mike Rother TOYOTA KATA 20

NextTarget ConditionTarget

Condition

CurrentCondition

Illustration by Dr. Lutz Engel

The more people in an organizationwho get to higher skill levels with the Improvement Kata pattern:• The more challenges the organization

can take on• The bigger the challenges it can take on• The more knowledge it can build• The faster it can move ahead

INCREASING YOUR ORGANIZATIONʼS CAPABILITYPracticing the Improvement Kata = expanding peopleʼs comfort zone

ApparentCertainty

Mystery

Uncertainty

Comfortarea

Page 21: Toyota kata.

© Mike Rother TOYOTA KATA 21

We confused the visible content of what we benchmarked at Toyota withthe less visible method Toyota uses to pursue objectives.

We called what we observed Lean, which suggests always minimizing or maximizing. This idea easily fits into our existing thinking in business, making it harder for us to see the different management approach Toyota is taking.

As I see it now, Toyotaʼs extraordinary successes came from Lean practices combined with Toyotaʼs way of working toward any challenging objective.  Toyotaʼs improvement kata is about solving problems and adapting as you strive to move from where you are to where you want to be next.  That can involve minimizing, optimizing, or whatever you wish to achieve.

WE MISUNDERSTOOD THE SOURCEOF TOYOTAʼS SUCCESSES

• Solve a problem• Lean practices• Develop a product• Market a product / service• etc.

This is content and situation specific

How we go about it TheImprovement Kata

This is content free and universal

What we work on

The pivotal change proposed by study of Toyota is not in whatan organization does, but in how the organization does it

Page 22: Toyota kata.

© Mike Rother TOYOTA KATA 22

WHAT IS MANAGEMENTʼS TASK?

TraditionalManagement

Toyota KataManagement

• Establish targets

• Describe solutions

• Provide incentives

• Get out of the way and periodically check results

• Establish targets

• Develop, via practice with coaching, the capability in people to develop new solutions......by having people practice a common way of working, like the Improvement Kata

Focus on solutions Focus on howsolutions are developed

Page 23: Toyota kata.

© Mike Rother TOYOTA KATA 23

MANAGERS ARE TEACHERS, ANDTHEIR ACTIONS DETERMINE COMPANY CAPABILITY

Whether consciously or not, with their everyday words and actions all managers are teaching their people a mindset and approach.

So it makes sense to ask: “What patterns of behavior and thought do we want to be teaching in our organization?”

Page 24: Toyota kata.

© Mike Rother TOYOTA KATA 24

How do we make a transition from our prevailing management approach, to systems thinking?

We change by practicing a different behavior. That, over time, leads us to think about things differently.

What pattern of acting and thinking-- what teachable, transferrable routine -- can we practice?

With the Improvement Kata and Coaching Kata we have routinesthat can be applied and practicedin any setting, in order to develop capability and behavior consistent with systems thinking.

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