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Book Review: Value Stream Mapping

Karen Martin and Mike Osterling are consultants that have been helping companies with seeing their business through a different lens.  Karen and Mike have co-authored two books in the past: The Kaizen Event Planner, a well written how-to guide for planning, executing and following up after a kaizen event and Metrics-Based Process Mapping, a how-to for using key metrics to analyze and improve processes.  Value Stream Mapping is their third book together and again they have done a fantastic job.

Name of the Book:  Value Stream Mapping: How to Visualize Work and Align Leadership for Organizational Transformation

Author: Karen Martin and Mike Osterling

Publication Date:  December 2013

Book description: what’s the key message?

Karen and Mike explain the in’s and out’s of understanding and completing a value stream map.  They discuss how a value stream map is a tool that can help senior leaders and executives see their business in a new way.  A transformative way.

Karen and Mike take the reader through all the steps.  They explain the importance of setting the stage prior to the starting the value stream map in order to enable success in changing the business.  Karen and Mike also walk the reader through the best ways to understand the current state of the business and the importance of understanding the current reality no matter how sobering it is.  Next they walk the reader through developing the future state and then the transformation plan.

This book is not just a “Go do it this way,” book.  The book is very complete and explains why the process they describe works.

What are the highlights? What works?

Most people miss the main point of value stream maps.  They are about changing the mindsets of an organization through building a strategic direction with a lean lens.  Karen and Mike do a great of reiterating this point throughout the book.

If you have never seen or been through a value stream mapping session this book is a great guide.  The explanations are spot on.  Karen and Mike hit on the most important metrics that can be used on a value stream map in order to get the most out of it.  They explain how the map is not complete without the metrics, which is something a lot of people will leave off when doing the map.

The examples of value stream maps in the back of the book can help a reader with guidance in building their own.  I know they are in the appendices but it is worth it to study all the examples.

The book also has a link to a downloadable charter and transformation plan templates.  I found them to be very helpful.

What are the weaknesses?  What’s missing?

The book is very well done.  Not only a step-by-step but a great explanation of why for each step.  There is one thought that I believe is missing in doing a value stream map.  That is the concept and discussion around ideal state.

When doing a value stream map, I find invaluable to have a discussion on the difference between ideal state (perfection) and future state (somewhere between current state and ideal state).  Usually, this discussion takes place after building the current state map.  The team writes out bullet points of what the ideal state would look like.  After that is completed, then build the future state.  The ideal state discussion helps to stretch the thinking of the team and as Karen and Mike put it “help change the DNA of the organization.”

Having a direct conversation around ideal state is a step that I feel is important and I wish Karen and Mike would have spent some time on in the book.

How should I read this to get the most out of it?

The book can be used in two ways.  One way is by someone that has been tasked to help an organization create a value stream map.  It can be used as a learning text book.  It can help the reader learn the in’s and out’s of creating a value stream map and give them guidance.  Or even as a refresher for an experienced value stream map facilitator.

Another way for the book to be used is as an education piece for executives and senior leaders that want to change their business.  It can help them understand their role in the value stream transformation process and how they can help the facilitator before, during and after a mapping session.

Kudos to Karen and Mike for another great book.

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Art Byrne’s Response to My Book Review

After writing the review of Art Byrne’s The Lean Turnaround, I sent him a copy of the review before posting the review.  That is my standard work.  Not because I want the author to have editorial rights (by the way, no one has ever asked me to change my review), but because I think it is a courtesy  to let them have a preview before it posts.

As part of my standard review, there is a section where I talk about what was missing from the book in my perspective.  Art read my review and responded.  He DID NOT ask me to change anything about the review.  In fact, he was pleased with the questions I posed.  Art  asked if he could respond to my questions and what was missing.  I said absolutely.

As a recap, here is the section from my review:

What are the weaknesses?  What’s missing?

This is a really good book, but I do see one thing missing.  Art speaks from a CEO or executive viewpoint, which is great, but what if you aren’t an executive?

One question I would like to see answered is how do lower level employees help executives want to do a lean turnaround?  Sure, one answer could be give them the book, but that probably won’t change everyone’s mind with just a single read.  How do you help an executive that seems to want to do it, do it?  Give them that final push and really start to see the benefits?

The book can also give the feeling that if you don’t have an executive leading and doing everything in the book then you might as well not go through with lean because you won’t be successful.  Art does not say that explicitly.  The book just gives that feeling.

With Art’s permission, here is his unedited response to my what’s missing from the book:

Matt, first of all let me thank you for your excellent review of my book, The Lean Turnaround. I really appreciate it and I was very happy to see that you got the main points of the book very well. You also had a couple of good questions that I would like to respond to just for clarity. Let’s take the softball question first. This wasn’t really posed as a question, but you say that I imply that if a company does not have the CEO (your term was “the executive”) leading the lean turnaround, then it might as well not start at all, since it won’t be successful. And my response is that your conclusion is correct. If the CEO won’t actively lead lean then my advice is don’t start with lean at all. That’s because you won’t get very far, and also because the entire campaign will just confuse everyone. There will be a huge gap between the things that are publicly said—and the actual commitment to lean and the actions that are taken. This has been a constant message of mine since way back in my Danaher days.

I’m going to respond now to what I believe is the basic question contained in your next comments—which, believe me, is a very good question that I get all the time in one form or another. To be more specific, I can’t remember a presentation that I have done to a national conference on lean where the first question from the audience is along the lines of “gee, that was great, but how do I get my management team to embrace lean, which I really believe is the right way to go?” This is of course a shame because it just serves to highlight the fact that most of the people attending the conference are mid-level managers or engineers who couldn’t get their senior management to attend in the first place. My answer to them is always the same. You have two choices. One, you can implement lean aggressively in the plant, division, product line or whatever you are responsible for. Go about it quietly though—you don’t want anyone above you to hear about it too early as they might try and stop you. While I was at Wiremold I introduced one of GE’s Aircraft Engine Plants to lean, and to the Japanese Consultants that I had been using (and that they are now using). At the time GE was all about Six Sigma, a very unfortunate diversion in my mind, and as a result, although they had great success with lean and became the best plant in Aircraft Engine, they were very careful to never mention the word lean and to just swear up and down that they were getting the results through Six Sigma. Once you have achieved great success and have a model line or model factory then you can show it off. Use that as leverage to get the CEO and the rest of the company to adapt it everywhere. Seeing success in your own company makes it harder for the CEO or the rest of the management team to say, “oh that lean stuff will never work here”.
Now, if this doesn’t work then your second choice is easy: quit and go work for a company that is really interested in lean. You’ll recognize this easily since the company will be aggressively pursuing it from the top down.

As to the other part of this question, “ how can I help an executive who seems to want to do it, do it?” Part of the answer here of course is exactly what I just said. In addition, I would recommend that you start by reading several key books on lean such as Lean Thinking by Jim Womack and Dan Jones, Toyota Production System by Taiichi Ohno, A Study of the Toyota Production System by Shigeo Shingo, Better Thinking, Better Results by Bob Emiliani, Real Numbers by Orry Fiume and Jean Cunningham, and Gemba Kaizen (2nd Edition) by Masaaki Imai. Then go visit some lean companies in their area, and ask to participate in their kaizens. You should also contact a high level lean consultant who teaches the Toyota approach and have them come and do a walk about in your company, and then share what they saw and what the opportunity is. Next, you should run a few kaizens in your facility (with you on the team of course) so you can start to see the opportunity and how people react; and then, and of course….take the lean leap. You can only learn by doing so at some point you have to start doing.

Thanks so much for giving me a chance to share my thoughts.

Regards, Art.

WOW!  My respect for Art grew even more with the response.  He took the questions, head on and didn’t hold any thoughts back.

What are your thoughts about Art’s response?  I am interested in hearing any feedback you have on it.

Book Review: The Lean Turnaround

Art Byrne is an execute that has been implementing lean in several companies around the world.  He started our with GE and gained experience with Danaher Corp before becoming the CEO of Wiremold where their lean turnaround is featured in the book “Better Thinking, Better Results“.  Since leaving Wiremold Art has used lean to turnaround companies as a partner with J.W. Childs Associates.  Art brings his vast experience to the readers.

Lean_Turnaround_CoverName of the Book:  The Lean Turnaround: How Business Leaders Use Lean Principles to Create Value and Transform Their Company

Author: Art Byrne

Publication Date:  2012

Book description: what’s the key message?

Art really drives home the message about a company can only be truly lean if the leaders are setting an example and leading the way.  A lean executive does not dictate what others need to go do.  A lean executive does it himself.

Also, the executives have to transform the people.  Get everyone to buy-in from the shop floor to the executive suite.  There is no room for people that won’t buy-in.  In order to do this, as the leader you need to engage in the change and lead it.  Not support it.

Art lays out his principles to follow to becoming lean:

  • Work to Takt Time
  • Create one piece flow
  • Utilized Standard Work
  • Connect Customers to Work by Using a Pull System

What are the highlights? What works?

Art does a fantastic job of giving multiple examples of how he engaged employees and led the change even as a CEO.  This brings to life how it can be done and the thought isn’t some dream a consultant made up.

I really like how Art lays out obstacles to achieving his lean principles.  Accounting and standard costing is the biggest obstacle because it can show a negative result or cause bad decisions when doing things that are helping.  He then explains the changes that are needed and gives examples of the changes and how the finances would look different.

There are more examples of other metrics that Art recommends for a lean company.

Another powerful section of the book is how he used lean to grow businesses and profits even during tough economic times. Art even lays out a strategy for looking at companies when thinking about acquisitions.

The real life examples as a CEO and board member of companies really drives how a lean turnaround can be achieved.  A CEO must do a 180 from the traditional methods to do it and a leap of faith will be needed, but the reward is very high.

What are the weaknesses?  What’s missing?

This is a really good book, but I do see one thing missing.  Art speaks from a CEO or executive viewpoint, which is great, but what if you aren’t an executive?

One question I would like to see answered is how do lower level employees help executives want to do a lean turnaround?  Sure, one answer could be give them the book, but that probably won’t change everyone’s mind with just a single read.  How do you help an executive that seems to want to do it, do it?  Give them that final push and really start to see the benefits?

The book can also give the feeling that if you don’t have an executive leading and doing everything in the book then you might as well not go through with lean because you won’t be successful.  Art does not say that explicitly.  The book just gives that feeling.

How should I read this to get the most out of it?

I recommend this book for anyone but especially high level level executive or CEO.  Art lays out a great game plan and a compelling case for the executives to transform their work and create a lean turnaround.  Read the book straight through and then re-read it as you develop a plan to change your company.

I would also recommend it for more Wallstreet and finance people.  It would enlighten them on how to look at companies that deliver long term value to their customers.  Not just short term gains.