the flow system (tfs) the next level of lean · 3/4/2020 · tfs shares the lean customer focus...

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THE FLOW SYSTEM (TFS) The Next Level of Lean

March 4, 2020

Copyright The Flow Consortium llc and Nigel Thurlow 2017 onwards, Cognitive Edge https://cognitive-edge.com/ and Business Improvement Group All rights reserved. Confidential -- Distribution prohibited without permission.Graphics ⓒ by Nigel Thurlow

Notice

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A. Reproduction All manuals and other materials (whether in printed media, videos or diskette/CD form) provided by BIG (collectively the “Materials”) are solely owned by Business Improvement Group,LLC, herein referred to as “BIG” and are licensed solely for Customer’s exclusive use. Customer may not:1. Reproduce any Materials without BIG’s prior written consent; or2. Make use of any Materials except as permitted by this Agreement; or3. Disclose any Materials to any third party for any purpose; or4. Sublicense (for consideration or otherwise) any Materials; or 5. Allow any employee, agent, consultant or contractor access to the Materials without the written

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shall be remitted upon demand.B. Confidential Information All Materials are deemed confidential and proprietary whether or not so

designated or marked. As such, Customer shall adopt reasonable precautions and safeguards to ensure BIG’s proprietary rights to the Material.

C. ⓒ2017 onwards by The Flow Consortium llc and Nigel Thurlow and Business Improvement Group All rights reserved. Confidential -- Distribution prohibited without permission.Graphics ⓒ2020 by Nigel Thurlow.


CHARLIE PROTZMAN - CEO & Managing Partner

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• Brake pads and shock absorbers in Holland, Italy, China, Poland • Medical devices in the Caribbean • Aircraft Engines machining and assy in the US and Mexico • Banking in Puerto Rico • Railroad foundries and forgings in the United States • Hospitals, Labs and Clinics in the United States and Canada

A Glimpse At Our Portfolio:

Copyright The Flow Consortium llc and Nigel Thurlow 2017 onwards, Cognitive Edge https://cognitive-edge.com/ and Business Improvement Group All rights reserved. Confidential -- Distribution prohibited without permission.Graphics ⓒ by Nigel Thurlow 4

Two Time Shingo Prize Winning Author


• The Flow System™ provides a re-imagined system for organizations to understand complexity, embrace teamwork, and autonomous team-based leadership structures.

• Flow is a collective social motion in which individuals, or agents, learn to understand and react to their environment to obtain the goals of delivering value to the customer.

• Flow ultimately results in employees concentrating on the act of doing rather than combatting or succumbing to organizational friction.

The Flow System


The System Creators

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What is The Flow System™?It’s not a framework It’s not prescriptive

Unique for each organization

Holistic in its implementation

Designed for VUCA

Master’s UNT

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It’s All About Modifying Leadership Behaviors


The DNA of Organizations™

Implementing the Triple Helix of Flow™ will require a level of organizational transformation to take place.

TFS Flow DefinitionFlow is the seamless transition, from idea creation to

delivery, through the interconnectivity of the three

components of Complexity Thinking, Distributed Leadership, and Team Science.

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TFS Shares the Lean Customer FocusIncreasing customer value, by eliminating waste throughout

the value stream*

9Based on definition in the book Lean Thinking, Womack & Jones, Simon & Schuster

We Spend 75-95% of Our Time Doing Things

That Increase Our Costs and Create No Value for the

Customer!Product Flow Should Generate Money

People and Resources Cost Money


The Toyota Way

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And it produces:•Highest Quality

•Lowest Cost

•Shortest Lead-Time

A key approach is ‘Monozukuri wa hitozukuri’, translated as ‘developing products through developing people’. Monden


The DNA of Organizations™

Implementing the Triple Helix of Flow™ will require a level of organizational transformation to take place.

The Flow System CharacteristicsInterconnectivityInteractions

Evolving Emergence

AdaptiveAgile

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Core Principles of The Flow System1. Customer 1st

2. The FLOW of Value

3. The Triple Helix of Flow

• Complexity Thinking

• Distributed Leadership

• Team Science

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Complexity Thinking Distributed Leadership

Team Science

Be able to adapt to be more innovative and agile in complex environments


The Purpose of a Company

You’ll Find Them Here!

CUSTOMER

Source: various including Harvard Business review 1988 - https://hbr.org/1988/09/management-and-the-worlds-work 13

Customer Results Exist Only On The Outside… There is only one valid definition of business purpose:

to create a customer

Peter Drucker - The creator of Management by Objectives (MBO) 1954


The Shifting Perspective

Company

Customer

Customer

Company

The Copernican Revolution in Business

Steve Denning The Age of Agile 2018

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The Customer is Now the Center of the Universe!


Stakeholders vs Shareholders

Source: https://www.nytimes.com/2019/08/19/business/business-roundtable-ceos-corporations.html August 19th 2019

Shareholder Value Is No Longer Everything, Say Over 200 C.E.O.s

Delivering value to our

customers.

Investing in our employees.

Dealing fairly and ethically with

our suppliers.

Supporting the communities in

which we work.

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• Team Science

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Team Science



What is Flow?

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P DCA

P DCA

PDC

A

PD

CA

Data

Repeated use of the PDCA cy

cle

Lean ThInking, Womack and Jones

“Costs do not exist to be calculated. Costs exist to be reduced.”-- Taiichi Ohno

Motion is not value added - Ohno


What is the Flow of Value?

Can we truly see all the WASTE in our organizational structures and our behaviors?

• Customer is willing to pay for it• Physically or emotionally changes the

thing or person for the better

• Done right the first time

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Flow = ∑of ValueAdded Activities


Outcomes of The Flow System

Cost of Sales Trend

YTD Trend – Last 3 Quarters

Enables Growth

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Reduces Cost Changes Behaviors







• Team Science

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Team Science



Copyright The Flow Consortium llc and Nigel Thurlow 2017 onwards. All rights reserved. Confidential -- Distribution prohibited without permission.Copyright 2017. Toyota Connected. Confidential -- Distribution prohibited without permission.

What is Complexity?


Complexity Thinking

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Complexity is a phase shift on how we think about management. Dave Snowden


Cynefin Framework

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COMPLICATED

CLEAR

COMPLEX

CHAOS

UNORDERED ORDEREDL I

M I N A L

DISORDER

The Cliff

Scrum

(C) Cognitive Edge - https://cognitive-edge.com/


Cynefin Framework

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COMPLICATED

CLEAR

COMPLEX

CHAOS

UNORDERED ORDERED L I

M I N A L

DISORDER

Scrum

The Cliff(C) Cognitive Edge - https://cognitive-edge.com/


Cynefin Framework

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COMPLICATED

CLEAR

COMPLEX

CHAOS


M I N A L

DISORDER

Scrum

The CliffAct - Sense - Respond

Probe - Sense - Respond Sense - Analyze - Respond

Sense - Categorize - Respond(C) Cognitive Edge - https://cognitive-edge.com/


Cynefin Framework

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COMPLICATED

CLEAR

COMPLEX

CHAOS


M I N A L

DISORDER

Scrum

The CliffNo Constraints

Emerging Constraints Governing Constraints

Fixed Constraints(C) Cognitive Edge - https://cognitive-edge.com/


Cynefin Framework - Usefullness?

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COMPLICATED

CLEAR

COMPLEX

CHAOS


M I N A L

DISORDER

Scrum

Surveys Standard Work Traditional Project Management

Strategic Planning Agile Culture & Safety R&D Distributed Leadership & Teams

Manufacturing Lean Practices / TPS Traditional Leadership - Command and Control PDCA / Root Cause

The Cliff

Can be used for Innovation

Terrorism, Competitors(C) Cognitive Edge - https://cognitive-edge.com/


Sensemaking

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Methods Patterns

UNDERSTANDING OF

In Complexity We Use Narratives!


Complexity and Safety Culture• I believe MY COMPANY is truly committed to the

health and safety of employees• Incidents and accidents are investigated quickly in order

to improve workplace health and safety• I see health and safety is a focus every day in my [work

area / team / department]• I am comfortable voicing concerns or making

suggestions about workplace health and safety• Workplace health and safety is considered to be at

least as important as production and quality

29Culture Cannot Be Measured or Have a KPI!


“Real” Safety Culture Feedback

30You Will Never Get to Zero Accidents with Humans

https://medium.com/@Alibaba_Cloud/conways-law-a-theoretical-basis-for-the-microservice-architecture-c666f7fcc66a


Weak Signal Detection

Recession December 2007• Sub Prime Market - signals started as early as 2001• Impending housing bubble• Derivatives

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The Goldman Sachs Group Inc. warned that “nominal U.S. home prices may be headed for an outright decline in 2007. And in early 2007, his colleague

further warned that “there are signals of a decrease in mortgage lending criteria and initial signals of financial troubles from subprime lenders.

Warren Buffett foresaw that complex derivatives would multiply and mutate until “some event makes their toxicity clear.”

Source: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3964612/


Inattentional Blindness

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Lung Nodule - Eye Tracking Results - 24 Radiologists - 83% Missed The 48x Gorilla!Microwave Oven - Anti Microbial Peptides


Copyright The Flow Consortium llc and Nigel Thurlow 2017 onwards. All rights reserved. Confidential -- Distribution prohibited without permission.

Distributed Leadership

The behavior patterns of those who lead people and teams.Distributed Leadership

The behavior patterns of those who lead people and teams.


Intent Based Leadership

Having one point of command was not only limiting to the efficiency of operations of the sub.

It was downright dangerous!

Turn Followers into Leaders!https://www.davidmarquet.com

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Santa Fe


Establishing Psychological Safety

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BlamingOthers

Less Likely to Share Different Views

Common Knowledge

Effect

Fear of Admitting Mistakes

Psychological Danger Psychological Safety

Learning from Failure

Everyone Openly Shares Ideas

Better Innovation & Decision Making

Comfort Admitting Mistakes


Cognitive Bias

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How many of you have biases in decisions you make every day?


Shared Mental ModelsExercise

Think about the first word that comes to mind when you hear:

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Flower

Color

Furniture


Shared Mental Models

39So… We like to think we are all independent Thinkers


Its all about Leadership Behaviors1. Personalizing2. Mindreading3. Negative predictions4. Underestimating coping ability5. Catastrophizing6. Attention Biased 7. Negatively biased recall of social encounters8. Thinking an absence of effusiveness means something is wrong9. Unrelenting standards10. Entitlement beliefs11. Justification and moral licensing12. Belief in a just world13. Seeing a situation only from your own perspective14. Belief that self-criticism is an effective way to motivate yourself toward better future behavior15. Recognizing feelings as causes of behavior, but not equally attending to how behavior influences thoughts and feelings16. All or nothing thinking17. Shoulds and musts

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18. Using feelings as the basis of a judgment, when the objective evidence does not support your feelings19. Basing future decisions on “sunk costs”20. Delusions21. Assuming your current feelings will stay the same in the future22. Cognitive labeling23. The Halo Effect24. Minimizing25. Magnifying (aka cognitively exaggerating)26. Cognitive conformity27. Overgeneralizing28. Blaming others29. Falling victim to the “foot in the door” technique30. Falling victim to the “door in the face” technique31. Focusing on the amount saved rather than the amount spent32. Overvaluing things because they're yours33. Failure to consider alternative explanations34. The self-serving bias35. Attributing strangers' behavior to their character and not considering situational/contextual factors

36. Failure to consider opportunity cost37. Assumed similarity38. In-group bias39. "You don't know what you don't know"40. The tendency to underestimate how long tasks will take41. The belief that worry and overthinking will lead to problem-solving insights42. Biased implicit attitudes43. The peak-end rule44. The tendency to prefer familiar things45. The belief you can multi-task46. Failure to recognize the cognitive benefits of restorative activitIes and those that increase positive emotions47. Positively biased predictions48. Cheating on your goals based on positive behaviors you plan to do later49. Repeating the same behavior and expecting different results (or thinking that doubling-down on a failed strategy will start to produce positive results)50. "I can't change my behavior" (or "I can't change my thinking style")

50 Common Cognitive Distortions -Alice Boyes, Ph.DWe Have to Learn To Work With Them


Human Factors

41Source: http://danariely.com/2008/05/05/3-main-lessons-of-psychology/


Human Factors

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Check this box if you want to participate in the organ donor program

Check this box if you DO NOT WANT to participate in the organ donor program

How You Ask Impacts Decision Making!


Copyright The Flow Consortium llc and Nigel Thurlow 2017 onwards. All rights reserved. Confidential -- Distribution prohibited without permission.


The behavior patterns of those who lead people and teams.Team Science

The science of teams, their interdependencies and interactions.


Team Science

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Why Team Science

It’s Not This…

45Image from https://828escaperoom.com/2018/10/27/team-building/


KSA’s and Others

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Team Members Need to have the KSAs to provide the value necessary to meet the customer value.

{Devine, 2002 #8056}


Hierarchy & Span of Control

Stop Managing People and Manage the Work Instead47Industrial Management - Alford 1951


Questions? Charlie Protzman

www.biglean.com

[email protected]

the flow system (tfs) the next level of lean · 3/4/2020 · tfs shares the lean customer focus...

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