Supporting Top Leadership Through Technological Innovation

Technological breakthroughs like augmented reality, the internet of things (IoT), and machine learning through artificial intelligence are all over the news feeds and on the minds of business owners in many industries. Collectively, these technologies and their perceived impacts on society have been dubbed “Industry 4.0.” For many companies, leveraging this new technology is a part of their ideal future state, but this alone is short sighted. At the moment, very few companies have been able to design their own management processes to be augmented by Industry 4.0 in a meaningful way. Without evolving through the four levels of technology (prototype, optimize, synchronize, and connect) to foster the right leadership mindset and reliable management processes, Industry 4.0 will remain a shortsighted solution rather than a sustainable industrial revolution. If you have reached the level of enterprise-wide transformation, you will have the strategic perspective you need to apply the latest technology based on your actual needs. Only when you have this level of understanding when it comes to your future business, your customers, your value stream, and your processes should you start incorporating Industry 4.0, and this technology must be dynamic and scalable. 

Automating the Management of Work to Focus on Innovation

With the advent of Industry 4.0, working remotely and sharing seamless virtual space (AR and VR) have become increasingly popular visions for the future workplace. This initially seems to be at odds with the principle of genchi gembutsu, but it doesn’t have to be. As the previous examples of digital networks have shown, one of technology’s best uses is to connect people across long distances. This is creating new opportunities, but it is not a substitute for engagement. Even if we reach a point where all work is done remotely through virtual reality, the same genchi gembutsu principle (going to the source to check facts for yourself so you can be sure you have the right information you need to make a good decision) will apply. Top leaders need to be present to connect with their team and instill a collaborative mindset, but this doesn’t mean that leaders have to hover over the workforce at all times. Once the right leadership mindset and self-management process are in place, technology can allow leaders to effectively do their duties even when they cannot be physically present. 

To be clear, there is no substitute for genchi gembutsu. However, it is not possible to be on the shop floor all the time. This is especially true the higher you get in the hierarchy of leadership. For this reason, it is helpful to have a system that keeps leaders who are in remote locations connected to the ongoing challenges and successes of daily activities across the organization. Business owners in particular often wish they could lead their businesses without having to gather reports onsite everyday. They have to get involved to exemplify the right culture and management process first, but after that, they don’t have to constantly be physically present to collect information with which to set priorities for their workforce. Remote leadership like this is only possible when reliable self-management systems are in place at all layers of the organization, empowering the workforce to make the necessary decisions by themselves. With such a self-management system, top leaders no longer have to intervene and "firefight" internal problems. Once reliable self-management systems are in place, top leaders must be able to access the business’s comprehensive real-time KPIs on demand. With this ability, they can focus on their true roles and responsibilities away from the frontlines to do strategic planning and work closely with global affiliates, external suppliers, and future customers.

To provide more freedom for business owners and executive leaders, I have designed various digital corporate dashboards that are accessible outside of the company via cloud-based technology. This way, they can access and consolidate crucial real-time information about the health of the business including production lead-time, revenue, expenses, status of machines (operational availability), cashflow, inventory levels, future sales pipelines, marketing effectiveness, prices of raw materials, and so on. Before developing such a comprehensive corporate dashboard, I work with business owners and leaders of every key department of the business, including HR, engineering, facility maintenance, business planning, and sales. I coach the business owners to analyze what real-time information they need from each area of the business to proactively identify problems and opportunities by defining dependable problem solving and escalation processes. Most importantly, business owners mush first make sure that each department leader develops the necessary mindset and discipline to always communicate face-to-face with their teams. This ensures the accuracy and integrity of the information upon which corporate decisions will be made by business owners.

Business owners must first develop a leadership transparency and management processes before technology (photo).

Business owners must meet in person to prototype the user interface for their corporate dashboards that will automatically funnel each department’s information using physical media. This allows business owners to make sure that information is being collected from all departments in real-time based on the defined management processes and displayed in the most effective way for them to set accurate directions for their business.

Business owners must design the user interface for their corporate dashboards (photo).

Based on the face-to-face prototyping of the user interface and defining how information needs to be collected from all departments, new cloud-based corporate dashboards can be internally developed to ultimately synchronize the information from all branches of the enterprise as well as its customers. 

Cloud-based corporate dashboards synchronizing the key business information in real time (photo).

Work directly with the IT department, and provide them with clear requirements. Business owners must make sure that their chief technical officers understand the current and future business strategy and directions. Cloud-based corporate dashboards must be programed to always calculate deviations from the future business plans through establishing precise database formulas and queries so that the corporate dashboard will effectively visualize successes and challenges for business owners at all times. With the cloud-based dashboards, business owners can access real-time information to identify the current state, make critical decisions, and set priorities when needed for the entire organization from anywhere in the world. This is true empowerment for people at the very top level of the organization. It allows them to focus on their responsibility to discover new innovation while the MPT model continues to establish stability, break the stability, and challenge the entire workforce to keep uncovering the true value of the business.

The key lesson here is that technology should be used to enhance the leadership mindset and management processes. It is to be used in addition to these factors, not as a substitute for them. Technology plays an important role in any major reform to an organization. You must always leverage new opportunities provided by the latest and most sophisticated technological advancements, while integrating them into the existing frameworks of the MPT model (Mindset, Management Process, and Technology). Using technology to automate the management processes with full support from the top leaders will continue to serve the unique needs of your frontline employees, customers, and industries. To prosper in a digital age, you must align the use of technology with your overall business strategy, from the top-level vision to daily goals and metrics for frontline employees. This cohesive approach to establishing long-term business stability ensures future innovation by continuing to unleash the full potential of your organization to better serve its customers and society. 

“If we continue to ignore the importance of the people who use the technology, people will end up working for machines rather than their machines working for them. Even technology built around the right management processes will be useless if mindset is left out.” - Jun Nakamuro

Original content above from the upcoming book by Jun Nakamuro

About the Author:

Jun Nakamuro is the foremost expert in organizational design and re-design through applied knowledge. His top-level ability is exemplified in their leadership, quality work, and exceptional results. Jun Nakamuro is a master of leading business transformation who brings valuable knowledge and experience from many industries. He recognizes the power of engaging people to achieve organizational transformation and performance. Jun will realize your best return without additional investment by designing innovative management systems for your businesses supported by stronger leadership and modern technology.

Since 2007, Jun has undergone extensive training in Japan and received official certification from Ohno’s most successful protégé, Hitoshi Yamada (Canon, Sony, NEC, Toyota, and others), following the TPS guidelines officially approved by Taiichi Ohno in 1990. Hitoshi Yamada has recognized Jun’s achievement and endorsed him as a successor to Ohno’s TPS legacy outside of Japan. 

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