Change-Point-Management, the Toyota way

https://www.youtube.com/watch?v=av0Ze289Uc8

As it has been said; "Change" is the only constant these days and good managers can see it coming but the great ones, do something about it before it occurs!

Throughout my 20-year involvements with Toyota, its subsidiaries, partners and suppliers, it was evident that the "Change & Uncertainties" were treated a bit differently and sometimes even quite differently than the rest of the large organizations!

Here are the main assumptions & approaches:

* The nature of "Uncertainties" are unknown to us, however we know that they may occur. i.e. we don't know how we may lose the electric power but we know it might happen...

* If the Uncertainty occurs, it will definitely create some "Risks"! i.e. we won't have access to our Laptop, the Internet or the Projector

* Each Risk will bring about potential "Impacts (Damages or End Results). i.e. loss of productivity, c

There are normally 6 different areas that Change may occur in:

A.)  Change in Human Capital (When new Team Members are introduced to the process)

B.)   Change in Process (When an element or more of a process are changed, modified or deleted)

C.)   Change in the Environment (When the ambient pressure, temperature, dust level, noise level and/or etc. change)

D.)  Change in Material

E.)   Change in Equipment

F.)   Change in Customer’s Taste and/or Demand

Now, we should know about Uncertainties (Changes) & Risks (Impact).

Uncertainties are all around us and we don’t really know what they (the changes) may be, however we can predict their damage, if they occur (impact). Since that’s all we can do, we’d better be conclusive enough, when doing CPM.

The list above shows 6 areas that Change can occur, for which we must be prepared. We must anticipate the Impact and close the exit, so to speak.

It’s our responsibility as Leaders & Managers to present Changes as Positive, Beneficial and Pleasurable! To the extent that we succeed at this, people don’t resist them and if we notice that people around us resist the Changes that we introduce, the “Problem & the Solution” are both in the nearest mirror!!!

For CPM to be implemented correctly, one must understand Probability of Occurrence, and the Magnitude of Impact! The table below illustrates different scenarios:

Item Probability Consequence Time Frame

-------------------------------------------------------------------------------------------------------------?

Risk 0 < P < 1 C > 0 Future

Issue P = 1 C > 0 Future

Problem P = 1 C > 0 Now!

Opportunity Unclear Unclear Unclear

Source: E. H. Conrow, “Risk Analysis for Space Systems,” in Proceedings of the Space Systems Engineering and Risk Management Symposium 2008, Los Angeles, February 28, 2008. Copyright ? 2008, E. H. Conrow. Used with permission of the author.

Here are a few pointers for correctly executing the CPM:

1) Build a culture around "Change" with the Day-1 of the activities, meaning show rather than say that Change is inevitable but can be pleasant too!

2) Get the upper management ready! Remember; Bottleneck is at the TOP of the bottle!

3) Gauge and develop every Team Member, the Hoshin-Kanri way...

4) Identify UNCERTAINTIES, Define RISKS, Determine the IMPACTS and Devise PLAN B!

5) Drill & test, before the inevitable occurs!

Happy Changing and Godspeed!

Hormoz Mogarei

Get Kaizened, Inc.