1 00:00:00,000 --> 00:00:02,430 The following content is provided under a Creative 2 00:00:02,430 --> 00:00:03,820 Commons license. 3 00:00:03,820 --> 00:00:06,030 Your support will help MIT OpenCourseWare 4 00:00:06,030 --> 00:00:10,120 continue to offer high quality educational resources for free. 5 00:00:10,120 --> 00:00:12,690 To make a donation or to view additional materials 6 00:00:12,690 --> 00:00:16,650 from hundreds of MIT courses, visit MIT OpenCourseWare 7 00:00:16,650 --> 00:00:17,688 at ocw.mit.edu. 8 00:00:25,788 --> 00:00:27,830 ANNALISA WEIGEL: Let's move on to our next module 9 00:00:27,830 --> 00:00:30,080 of the day, which called People: The Heart of Lean. 10 00:00:33,670 --> 00:00:35,350 What people who have studied Lean 11 00:00:35,350 --> 00:00:39,190 and the Toyota production system in general have found 12 00:00:39,190 --> 00:00:41,050 is that there's two major aspects 13 00:00:41,050 --> 00:00:42,500 of these kinds of systems. 14 00:00:42,500 --> 00:00:45,010 One is this kind of just-in-time production 15 00:00:45,010 --> 00:00:47,170 that we typically see, and which we talked about 16 00:00:47,170 --> 00:00:48,970 in the new balance plant tour. 17 00:00:48,970 --> 00:00:50,770 But the second and equally important 18 00:00:50,770 --> 00:00:52,600 component of these kinds of systems 19 00:00:52,600 --> 00:00:55,600 is the respect-for-human system that exists. 20 00:00:55,600 --> 00:00:58,060 And you heard, again in our new balance plant tour 21 00:00:58,060 --> 00:01:00,663 you heard Claudio talk about the immense respect 22 00:01:00,663 --> 00:01:02,080 that they have for their employees 23 00:01:02,080 --> 00:01:05,230 and how employee involvement is valued and encouraged 24 00:01:05,230 --> 00:01:08,800 in his organization. 25 00:01:08,800 --> 00:01:11,120 Now the trouble is for a lot of folks, 26 00:01:11,120 --> 00:01:15,090 and engineers in particular, is we think about the people part 27 00:01:15,090 --> 00:01:16,640 to the problem and we sometimes sees 28 00:01:16,640 --> 00:01:18,257 these as really challenging. 29 00:01:18,257 --> 00:01:20,590 And this is a quote from a gentleman at Northrop Grumman 30 00:01:20,590 --> 00:01:22,173 who's fairly high in their management, 31 00:01:22,173 --> 00:01:25,660 and he sums it up very nicely by saying "the soft stuff is 32 00:01:25,660 --> 00:01:26,885 the hard stuff." 33 00:01:26,885 --> 00:01:29,260 The soft stuff, which is usually thought of as the people 34 00:01:29,260 --> 00:01:31,540 issues, is often seen as some of the hardest 35 00:01:31,540 --> 00:01:32,920 challenges in an organization. 36 00:01:32,920 --> 00:01:34,210 He's very true. 37 00:01:34,210 --> 00:01:36,160 But it's one of those important items 38 00:01:36,160 --> 00:01:41,290 to work on when you think about making an organization lean. 39 00:01:41,290 --> 00:01:43,990 So in this section on people we want 40 00:01:43,990 --> 00:01:46,510 to have you achieve the following three learning 41 00:01:46,510 --> 00:01:47,750 objectives. 42 00:01:47,750 --> 00:01:49,240 The first is to be able to explain 43 00:01:49,240 --> 00:01:54,350 why people are key to improving productivity and organization. 44 00:01:54,350 --> 00:01:56,350 The second is to make you realize 45 00:01:56,350 --> 00:01:59,710 that effective communication, shared goals, and knowledge, 46 00:01:59,710 --> 00:02:03,010 and mutual respect lead to improved organizational 47 00:02:03,010 --> 00:02:04,570 performance. 48 00:02:04,570 --> 00:02:07,150 And third, we'd like you to be able to participate 49 00:02:07,150 --> 00:02:09,190 as a member of a team in order to achieve 50 00:02:09,190 --> 00:02:11,060 a productive and positive outcome. 51 00:02:11,060 --> 00:02:13,065 So to get us kicked off on this discussion, 52 00:02:13,065 --> 00:02:14,440 I'd like you to think and reflect 53 00:02:14,440 --> 00:02:17,920 on the most important things that contribute to your job 54 00:02:17,920 --> 00:02:18,778 satisfaction. 55 00:02:18,778 --> 00:02:21,070 So whether you're a student or whether you're currently 56 00:02:21,070 --> 00:02:25,120 working, think about what it is that makes you very satisfied 57 00:02:25,120 --> 00:02:26,770 with your job. 58 00:02:26,770 --> 00:02:29,680 And I'd like to ask for some volunteers 59 00:02:29,680 --> 00:02:32,197 to tell me first of all, what's the most important thing? 60 00:02:32,197 --> 00:02:33,280 Let's start off with that. 61 00:02:33,280 --> 00:02:35,238 I'm going to start to make a list on the board. 62 00:02:36,734 --> 00:02:38,942 AUDIENCE: Maybe feeling like you've made a difference 63 00:02:38,942 --> 00:02:40,379 at the end of the day. 64 00:02:40,379 --> 00:02:42,534 Whether it be to the customers or to the staff 65 00:02:42,534 --> 00:02:44,211 that you work with. 66 00:02:44,211 --> 00:02:45,650 ANNALISA WEIGEL: What else? 67 00:02:45,650 --> 00:02:46,398 Yes. 68 00:02:46,398 --> 00:02:48,190 AUDIENCE: Felt like I've learned something. 69 00:02:48,190 --> 00:02:51,957 OK, I've going to put something up. 70 00:02:51,957 --> 00:02:53,040 ANNALISA WEIGEL: Learning. 71 00:02:53,040 --> 00:02:54,840 Great. 72 00:02:54,840 --> 00:02:56,590 AUDIENCE: Having control over the outcomes 73 00:02:56,590 --> 00:02:57,548 you're responsible for. 74 00:03:01,984 --> 00:03:02,976 ANNALISA WEIGEL: Yes. 75 00:03:02,976 --> 00:03:05,460 AUDIENCE: I'd say having room for creativity. 76 00:03:05,460 --> 00:03:07,280 ANNALISA WEIGEL: Creativity. 77 00:03:07,280 --> 00:03:08,540 In the back. 78 00:03:08,540 --> 00:03:11,414 AUDIENCE: Feeling respected or valued. 79 00:03:11,414 --> 00:03:12,820 ANNALISA WEIGEL: What else? 80 00:03:12,820 --> 00:03:13,760 Yes. 81 00:03:13,760 --> 00:03:15,650 AUDIENCE: Making connections with individuals 82 00:03:15,650 --> 00:03:17,793 and the community at large. 83 00:03:17,793 --> 00:03:18,960 ANNALISA WEIGEL: Connection. 84 00:03:18,960 --> 00:03:21,890 So it's the relationships with your co-workers, customers, 85 00:03:21,890 --> 00:03:23,380 everybody? 86 00:03:23,380 --> 00:03:25,640 AUDIENCE: Yeah, with my patients and med students 87 00:03:25,640 --> 00:03:28,280 that I work with, but also connecting with the needs 88 00:03:28,280 --> 00:03:31,030 of the community in general. 89 00:03:31,030 --> 00:03:33,970 I guess with my colleagues, too. 90 00:03:33,970 --> 00:03:35,440 Though that seems secondary. 91 00:03:35,440 --> 00:03:36,910 ANNALISA WEIGEL: What else? 92 00:03:36,910 --> 00:03:37,890 Yes? 93 00:03:37,890 --> 00:03:39,850 AUDIENCE: Acknowledgement of a job well done. 94 00:03:42,790 --> 00:03:44,260 ANNALISA WEIGEL: Yes? 95 00:03:44,260 --> 00:03:48,180 AUDIENCE: I think a job you can work to your full potential. 96 00:03:48,180 --> 00:03:50,140 ANNALISA WEIGEL: OK. 97 00:03:50,140 --> 00:03:52,010 Anything else? 98 00:03:52,010 --> 00:03:53,344 AUDIENCE: Responsibility. 99 00:03:56,463 --> 00:03:57,296 ANNALISA WEIGEL: OK. 100 00:03:57,296 --> 00:03:57,796 In the back. 101 00:03:57,796 --> 00:03:58,910 Yes. 102 00:03:58,910 --> 00:04:01,725 AUDIENCE: I don't require that, but the financial incentives. 103 00:04:01,725 --> 00:04:03,600 ANNALISA WEIGEL: Financial incentive, salary? 104 00:04:03,600 --> 00:04:04,225 AUDIENCE: Yeah. 105 00:04:04,225 --> 00:04:05,020 Make money. 106 00:04:05,020 --> 00:04:06,853 ANNALISA WEIGEL: Let's call that what it is. 107 00:04:06,853 --> 00:04:07,620 Salary. 108 00:04:07,620 --> 00:04:08,260 Great. 109 00:04:08,260 --> 00:04:09,740 We've all got to eat. 110 00:04:09,740 --> 00:04:10,310 Go ahead. 111 00:04:10,310 --> 00:04:13,058 AUDIENCE: Having the time to do my job right the first time 112 00:04:13,058 --> 00:04:14,600 and feeling like I didn't wallow away 113 00:04:14,600 --> 00:04:17,760 in errors throughout the day. 114 00:04:17,760 --> 00:04:19,690 ANNALISA WEIGEL: So adequate time. 115 00:04:19,690 --> 00:04:20,200 What else? 116 00:04:23,310 --> 00:04:24,930 AUDIENCE: Working hours. 117 00:04:24,930 --> 00:04:27,180 ANNALISA WEIGEL: Your hours. 118 00:04:27,180 --> 00:04:30,180 So take a look at the list we have here. 119 00:04:30,180 --> 00:04:32,640 And think if the most important thing that contributes 120 00:04:32,640 --> 00:04:35,405 to your own job satisfaction isn't on this list, 121 00:04:35,405 --> 00:04:36,780 and you'd like to raise your hand 122 00:04:36,780 --> 00:04:38,010 and tell us about it, that'll be great. 123 00:04:38,010 --> 00:04:39,268 we'll add it to the list. 124 00:04:39,268 --> 00:04:41,060 Otherwise we might start to winnow it down. 125 00:04:41,060 --> 00:04:43,032 AUDIENCE: Lack of stress. 126 00:04:43,032 --> 00:04:44,740 ANNALISA WEIGEL: Stress free environment. 127 00:04:44,740 --> 00:04:47,490 AUDIENCE: Or reduced stress. 128 00:04:47,490 --> 00:04:49,100 ANNALISA WEIGEL: OK, so low stress. 129 00:04:49,100 --> 00:04:51,350 Reduced stress. 130 00:04:51,350 --> 00:04:52,180 Susan? 131 00:04:52,180 --> 00:04:54,678 AUDIENCE: Being part of a team. 132 00:04:54,678 --> 00:04:56,043 ANNALISA WEIGEL: Yes, in back. 133 00:04:56,043 --> 00:04:57,710 AUDIENCE: It's sort of related to hours, 134 00:04:57,710 --> 00:04:58,775 but work-family balance. 135 00:05:03,036 --> 00:05:04,729 ANNALISA WEIGEL: Yes. 136 00:05:04,729 --> 00:05:05,521 AUDIENCE: Feedback. 137 00:05:06,162 --> 00:05:08,670 ANNALISA WEIGEL: Feedback from your supervisor? 138 00:05:11,150 --> 00:05:11,650 OK. 139 00:05:11,650 --> 00:05:12,240 Great. 140 00:05:12,240 --> 00:05:14,920 Do we have any-- one more burning last suggestion? 141 00:05:14,920 --> 00:05:15,440 Matteis? 142 00:05:15,440 --> 00:05:16,357 AUDIENCE: Environment. 143 00:05:16,357 --> 00:05:18,648 Working environment. 144 00:05:18,648 --> 00:05:20,690 ANNALISA WEIGEL: OK, so take a read through these 145 00:05:20,690 --> 00:05:23,300 and what I'd like to ask you to do now 146 00:05:23,300 --> 00:05:26,960 is each person take a voting strip of dots they should 147 00:05:26,960 --> 00:05:29,120 be distributed on your table. 148 00:05:29,120 --> 00:05:30,800 What I'll ask you to do is just come up 149 00:05:30,800 --> 00:05:35,640 to the board and place one dot next to each of your top three 150 00:05:35,640 --> 00:05:36,140 items. 151 00:05:36,140 --> 00:05:39,740 So you get to vote for 3 as the most important things that 152 00:05:39,740 --> 00:05:41,742 contribute to your job satisfaction. 153 00:05:41,742 --> 00:05:43,700 So when you're ready, just head up to the board 154 00:05:43,700 --> 00:05:45,218 and place your dots on the line. 155 00:05:45,218 --> 00:05:47,510 And, yes, you do have to vote for three separate items. 156 00:05:47,510 --> 00:05:52,128 You can't put all your three dots on one particular row. 157 00:05:52,128 --> 00:05:53,920 So go ahead when you're ready just come up. 158 00:05:53,920 --> 00:05:56,490 [SIDE CONVERSATIONS] 159 00:06:05,263 --> 00:06:07,430 ANNALISA WEIGEL: Has everybody had a chance to vote? 160 00:06:11,390 --> 00:06:12,170 Very good. 161 00:06:12,170 --> 00:06:17,130 All right, let's see where our top vote getters were. 162 00:06:17,130 --> 00:06:21,220 So it looks like work-family balance is up there, 163 00:06:21,220 --> 00:06:23,120 as is making a difference. 164 00:06:26,720 --> 00:06:27,410 Let's see. 165 00:06:31,990 --> 00:06:35,180 So looks like salary gets up there, too as our top three. 166 00:06:38,210 --> 00:06:41,240 Excellent, so I think it's making a difference by quite 167 00:06:41,240 --> 00:06:47,570 a few lengths there, work family balance, and then salary. 168 00:06:47,570 --> 00:06:50,750 So let's see how some of your answers as a class 169 00:06:50,750 --> 00:06:53,660 compared to some studies that have been done. 170 00:06:53,660 --> 00:06:56,150 And this is just one sample that's 171 00:06:56,150 --> 00:06:58,060 actually been done by Boeing. 172 00:06:58,060 --> 00:07:01,010 It's some of their employee satisfaction surveys. 173 00:07:01,010 --> 00:07:03,290 And what you see here on the chart is-- 174 00:07:03,290 --> 00:07:07,010 the x-axis here and the placement of these items 175 00:07:07,010 --> 00:07:10,160 shows the correlation or the strength of association 176 00:07:10,160 --> 00:07:13,530 with a high performance work environment. 177 00:07:13,530 --> 00:07:15,950 Really, the things that are making employees 178 00:07:15,950 --> 00:07:17,930 perform really well. 179 00:07:17,930 --> 00:07:20,210 And you'll see things like encouraged 180 00:07:20,210 --> 00:07:23,150 to come up with new and better ways to do things, 181 00:07:23,150 --> 00:07:26,930 involving them in decisions, improving my skills 182 00:07:26,930 --> 00:07:29,840 or learning as we called it here in class, 183 00:07:29,840 --> 00:07:31,520 conditions allow me to be productive. 184 00:07:31,520 --> 00:07:32,810 We also talked about that. 185 00:07:32,810 --> 00:07:34,520 Someone made that suggestion. 186 00:07:34,520 --> 00:07:38,090 These are all things that have a much higher correlation 187 00:07:38,090 --> 00:07:41,870 with having high performance work environment than things 188 00:07:41,870 --> 00:07:43,200 on this side. 189 00:07:43,200 --> 00:07:47,000 And notice pay is sort of farthest from people's job 190 00:07:47,000 --> 00:07:48,343 satisfaction. 191 00:07:48,343 --> 00:07:49,760 So it just really goes to show you 192 00:07:49,760 --> 00:07:52,093 it's not just what you pay people and then job security. 193 00:07:52,093 --> 00:07:55,220 But it's a lot of these other important satisfaction 194 00:07:55,220 --> 00:08:01,383 items that contributes to people really doing a productive job. 195 00:08:01,383 --> 00:08:03,050 Now there are several different theories 196 00:08:03,050 --> 00:08:04,820 about how workers are productive. 197 00:08:04,820 --> 00:08:07,280 They relate to the brainstorming that we've been doing. 198 00:08:07,280 --> 00:08:09,127 The first is usually called Theory X 199 00:08:09,127 --> 00:08:11,210 and it was one of the original management theories 200 00:08:11,210 --> 00:08:14,060 and it's based on the premise that workers don't like to work 201 00:08:14,060 --> 00:08:15,780 so they must be made to work. 202 00:08:15,780 --> 00:08:18,680 So you have to enforce harsh rules and lots of motivation 203 00:08:18,680 --> 00:08:21,710 to get them to overcome this general human desire 204 00:08:21,710 --> 00:08:23,900 to not work. 205 00:08:23,900 --> 00:08:24,580 Yes? 206 00:08:24,580 --> 00:08:26,420 AUDIENCE: I have a thought. 207 00:08:26,420 --> 00:08:28,970 As you got salary and paid, I think 208 00:08:28,970 --> 00:08:34,299 why this one might be a bit different 209 00:08:34,299 --> 00:08:36,740 is because on the average, I guess 210 00:08:36,740 --> 00:08:39,950 that the bulk of the workers are already paid good enough 211 00:08:39,950 --> 00:08:43,370 to take care of themselves and their families and all of that. 212 00:08:43,370 --> 00:08:46,420 So if you're paying someone a salary that is not 213 00:08:46,420 --> 00:08:52,310 able to take care of himself, or not able to pay his bills, 214 00:08:52,310 --> 00:08:56,280 I don't think it won't be an issue. 215 00:08:56,280 --> 00:08:59,350 I think that this might not be a very good example, 216 00:08:59,350 --> 00:09:02,730 because if we look at the average pay and the lowest pay 217 00:09:02,730 --> 00:09:04,923 they get, it might be something very tangible. 218 00:09:04,923 --> 00:09:05,840 ANNALISA WEIGEL: Sure. 219 00:09:05,840 --> 00:09:07,400 And I think I would agree with you. 220 00:09:07,400 --> 00:09:09,950 That's a function of some base level of pay. 221 00:09:09,950 --> 00:09:13,640 And perhaps one of the reasons why salary sometimes shows up 222 00:09:13,640 --> 00:09:15,950 in this environment is more important than on some 223 00:09:15,950 --> 00:09:17,420 of these other surveys that have been done 224 00:09:17,420 --> 00:09:19,760 is because we have a number of students in the room, right. 225 00:09:19,760 --> 00:09:21,260 Raise your hand if you're a student. 226 00:09:21,260 --> 00:09:23,720 If you're not being paid much of anything. 227 00:09:23,720 --> 00:09:25,940 And hence, if salary is really important to you. 228 00:09:25,940 --> 00:09:28,730 But as you suggest, when you go out in the workforce 229 00:09:28,730 --> 00:09:31,580 and you are earning a salary and putting food 230 00:09:31,580 --> 00:09:34,100 on the table is not as concerning for you 231 00:09:34,100 --> 00:09:36,560 as it might be when you're not getting salary as a student, 232 00:09:36,560 --> 00:09:39,175 some of these other items really become important. 233 00:09:39,175 --> 00:09:40,550 So after a while if you're trying 234 00:09:40,550 --> 00:09:42,920 to create a high performing work organization, 235 00:09:42,920 --> 00:09:45,380 it's not so much increasing people's pay 236 00:09:45,380 --> 00:09:47,360 as it is focusing on making sure there are 237 00:09:47,360 --> 00:09:48,950 all of these other conditions. 238 00:09:48,950 --> 00:09:52,100 And sometimes people think it's easier to just pay people more 239 00:09:52,100 --> 00:09:55,060 and that doing this is harder but it pays off much higher. 240 00:09:57,960 --> 00:09:59,710 All right, so back to our worker theories, 241 00:09:59,710 --> 00:10:02,090 which comes into play a bit with your comment as well. 242 00:10:02,090 --> 00:10:03,910 So we started at early management theory 243 00:10:03,910 --> 00:10:06,130 with Theory X. So then to counter 244 00:10:06,130 --> 00:10:08,530 that after a little while of experimenting with it 245 00:10:08,530 --> 00:10:10,570 they really came upon Theory Y, which is 246 00:10:10,570 --> 00:10:12,790 reflected in Elton Mayo's work. 247 00:10:12,790 --> 00:10:15,040 Where they said, no, actually workers-- 248 00:10:15,040 --> 00:10:16,780 if you just make them happy then they're 249 00:10:16,780 --> 00:10:18,080 going to be really productive. 250 00:10:18,080 --> 00:10:20,050 So this theory out of that was born 251 00:10:20,050 --> 00:10:22,150 the whole focus on human resources 252 00:10:22,150 --> 00:10:24,190 and human relations in the workplace 253 00:10:24,190 --> 00:10:27,050 and trying to create a happy workplace. 254 00:10:27,050 --> 00:10:29,380 So that was about 1920, and then around the turn 255 00:10:29,380 --> 00:10:32,110 of this century, we have expressed 256 00:10:32,110 --> 00:10:35,020 by Dick Kleine at John Deere, his thought 257 00:10:35,020 --> 00:10:38,630 is that a productive worker is a happy worker. 258 00:10:38,630 --> 00:10:41,380 So we've got these three different competing theories. 259 00:10:41,380 --> 00:10:43,450 Of those three, which do you think most aligns 260 00:10:43,450 --> 00:10:46,040 with a Lean way of thinking? 261 00:10:46,040 --> 00:10:49,360 How many people think it's the first theory, Theory X? 262 00:10:49,360 --> 00:10:52,000 How many people think it's the middle one? 263 00:10:52,000 --> 00:10:54,550 How many people think it's the last one? 264 00:10:54,550 --> 00:10:55,780 Very good. 265 00:10:55,780 --> 00:10:57,250 That's the way we think, too. 266 00:10:57,250 --> 00:10:59,920 We think that Dick Kleine's thought 267 00:10:59,920 --> 00:11:01,480 about a productive worker being happy 268 00:11:01,480 --> 00:11:06,070 worker really is the way that things are. 269 00:11:06,070 --> 00:11:09,460 And to try to illustrate some of the links between employee 270 00:11:09,460 --> 00:11:11,990 productivity and company performance, 271 00:11:11,990 --> 00:11:14,998 we want to take a case study here on Southwest Airlines. 272 00:11:14,998 --> 00:11:17,290 And just to give you some brief background on Southwest 273 00:11:17,290 --> 00:11:19,780 as a company and put them in context, 274 00:11:19,780 --> 00:11:21,072 they are one of the best-- 275 00:11:21,072 --> 00:11:22,780 well they really are the best performance 276 00:11:22,780 --> 00:11:24,820 of the major US domestic airlines. 277 00:11:24,820 --> 00:11:29,590 And you can see their profitability metric here 278 00:11:29,590 --> 00:11:30,250 on the chart. 279 00:11:30,250 --> 00:11:33,160 Southwest is in blue, which is far above the red, which 280 00:11:33,160 --> 00:11:35,290 is an aggregate of all the major domestic airlines 281 00:11:35,290 --> 00:11:39,490 and their profitability over the past couple of decades. 282 00:11:39,490 --> 00:11:42,340 And in addition, Southwest has made an operating profit 283 00:11:42,340 --> 00:11:44,600 every year for over 30 years. 284 00:11:44,600 --> 00:11:47,140 Now this is a big achievement for an airline. 285 00:11:47,140 --> 00:11:49,870 No one else has this record and many, many times, many years, 286 00:11:49,870 --> 00:11:52,510 many airlines are at a net loss. 287 00:11:52,510 --> 00:11:54,250 A few more items about Southwest, 288 00:11:54,250 --> 00:11:57,340 they are one of the safest airlines around. 289 00:11:57,340 --> 00:11:59,080 They did have a very homogeneous fleet 290 00:11:59,080 --> 00:12:00,968 until they merged with AirTran, and that 291 00:12:00,968 --> 00:12:03,010 simplifies some of their training and maintenance 292 00:12:03,010 --> 00:12:04,650 and logistics items. 293 00:12:04,650 --> 00:12:06,700 They have never laid off any employees 294 00:12:06,700 --> 00:12:09,520 even after the events of 9/11. 295 00:12:09,520 --> 00:12:12,310 They are the most highly unionized US airline, 296 00:12:12,310 --> 00:12:13,810 even though there's some perceptions 297 00:12:13,810 --> 00:12:15,790 out there that there's no unions on Southwest. 298 00:12:15,790 --> 00:12:17,440 Because, after all, those Southwest employees 299 00:12:17,440 --> 00:12:19,607 are so happy and the company is doing so good surely 300 00:12:19,607 --> 00:12:20,710 they don't have unions. 301 00:12:20,710 --> 00:12:22,000 That's not true at all. 302 00:12:22,000 --> 00:12:26,560 They're highly unionized they have a point-to-point, which 303 00:12:26,560 --> 00:12:29,333 is different than a hub-and-spoke route structure. 304 00:12:29,333 --> 00:12:31,000 And many of the other airlines in the US 305 00:12:31,000 --> 00:12:33,010 operate on a hub-and-spoke route structure. 306 00:12:33,010 --> 00:12:34,552 You can think of it a little bit more 307 00:12:34,552 --> 00:12:37,920 like a batch and cue and continuous flow. 308 00:12:37,920 --> 00:12:39,990 A little bit different. 309 00:12:39,990 --> 00:12:41,740 They consistently offer some of the lowest 310 00:12:41,740 --> 00:12:43,180 fares that are around. 311 00:12:43,180 --> 00:12:45,940 They're liked by investors and employees and customers, 312 00:12:45,940 --> 00:12:47,010 I should say. 313 00:12:47,010 --> 00:12:49,000 And so you might ask what makes Southwest 314 00:12:49,000 --> 00:12:51,220 so successful in its business. 315 00:12:51,220 --> 00:12:54,250 And Professor Jody Hoffer Gittell in her book 316 00:12:54,250 --> 00:12:57,070 The Southwest Airlines Way which resulted out of her PhD 317 00:12:57,070 --> 00:12:59,170 work here at MIT, she argues it's 318 00:12:59,170 --> 00:13:03,990 because of Southwest's organizational competency. 319 00:13:03,990 --> 00:13:07,600 And it's characterized by shared goals, shared knowledge, 320 00:13:07,600 --> 00:13:09,910 and mutual respect. 321 00:13:09,910 --> 00:13:15,070 And she calls these three things relational coordination. 322 00:13:15,070 --> 00:13:18,760 And she says that shared goals helps the employees to align 323 00:13:18,760 --> 00:13:20,590 and prioritize the organization's 324 00:13:20,590 --> 00:13:25,610 success over doing their job or succeeding at just their job. 325 00:13:25,610 --> 00:13:27,670 The second item of relational coordination 326 00:13:27,670 --> 00:13:30,080 is this element of shared knowledge. 327 00:13:30,080 --> 00:13:32,140 So if everybody has the same kind of knowledge, 328 00:13:32,140 --> 00:13:35,110 then you have visibility of the overall work process 329 00:13:35,110 --> 00:13:36,610 and not just your little part on it. 330 00:13:36,610 --> 00:13:39,027 So you can help see the linkages between what you're doing 331 00:13:39,027 --> 00:13:40,660 and what someone else is doing and be 332 00:13:40,660 --> 00:13:45,170 able to create overall a more efficient and effective system. 333 00:13:45,170 --> 00:13:47,950 And lastly, this third element of relational coordination 334 00:13:47,950 --> 00:13:49,440 is mutual respect. 335 00:13:49,440 --> 00:13:52,990 And that helps to reduce some of the barriers between employee 336 00:13:52,990 --> 00:13:55,570 groups and helps them cooperate more effectively 337 00:13:55,570 --> 00:13:57,628 to get the job done. 338 00:13:57,628 --> 00:13:59,920 And all these three elements of relational coordination 339 00:13:59,920 --> 00:14:01,510 really couldn't happen if it weren't 340 00:14:01,510 --> 00:14:05,570 for the underlying practice of effective communication. 341 00:14:05,570 --> 00:14:08,410 This effective communication is particularly 342 00:14:08,410 --> 00:14:11,080 one where people are communicating about the problem 343 00:14:11,080 --> 00:14:14,380 itself and not really worried about assigning blame 344 00:14:14,380 --> 00:14:15,790 when something bad goes wrong. 345 00:14:15,790 --> 00:14:18,550 So if you think in your own work environment, 346 00:14:18,550 --> 00:14:20,530 you may be able to think about some people 347 00:14:20,530 --> 00:14:22,300 that you interact with perhaps who 348 00:14:22,300 --> 00:14:24,340 are very good at thinking just about the problem 349 00:14:24,340 --> 00:14:26,257 and trying to separate the people out from it. 350 00:14:26,257 --> 00:14:28,120 And then you may also know some people 351 00:14:28,120 --> 00:14:31,060 who tend to focus more on blaming somebody when something 352 00:14:31,060 --> 00:14:34,043 goes wrong and not really focusing on what went wrong 353 00:14:34,043 --> 00:14:34,960 and how we can fix it. 354 00:14:34,960 --> 00:14:37,300 But really who might be responsible for it. 355 00:14:37,300 --> 00:14:40,780 That's not as effective communication as we could be. 356 00:14:40,780 --> 00:14:43,150 Other elements of what makes communication effective? 357 00:14:43,150 --> 00:14:47,170 Frequent, timely, open, honest. 358 00:14:47,170 --> 00:14:49,270 Very, very simple description. 359 00:14:49,270 --> 00:14:53,710 Not as easy to achieve, but very simple to try to understand. 360 00:14:56,660 --> 00:14:58,940 Now when an organization has very high 361 00:14:58,940 --> 00:15:01,520 relational coordination, professor Hoffer Gittell 362 00:15:01,520 --> 00:15:04,850 found that high levels of relational coordination 363 00:15:04,850 --> 00:15:07,388 do correlate with performance for the airlines 364 00:15:07,388 --> 00:15:08,180 that she's studied. 365 00:15:08,180 --> 00:15:11,330 And this graph shows you some composite measure 366 00:15:11,330 --> 00:15:12,410 of airline performance. 367 00:15:12,410 --> 00:15:14,700 On the x, she took many different things into account, 368 00:15:14,700 --> 00:15:18,080 including on time departures, fewer 369 00:15:18,080 --> 00:15:20,010 lost bags, things like that. 370 00:15:20,010 --> 00:15:22,100 And then she has relational coordination as 371 00:15:22,100 --> 00:15:24,950 measured by another amalgam of a bunch of different measures 372 00:15:24,950 --> 00:15:26,870 that she created in her research. 373 00:15:26,870 --> 00:15:28,520 And each of these dots is a number 374 00:15:28,520 --> 00:15:30,828 of different airlines in different locations 375 00:15:30,828 --> 00:15:31,620 around the country. 376 00:15:31,620 --> 00:15:33,260 There are two here shown from Southwest 377 00:15:33,260 --> 00:15:35,810 and the others are for three other different airlines. 378 00:15:35,810 --> 00:15:37,190 But you see the general trend. 379 00:15:37,190 --> 00:15:39,410 As we increase relational coordination 380 00:15:39,410 --> 00:15:42,590 we tend to see the aggregate performance increase. 381 00:15:42,590 --> 00:15:45,710 So we've seen how relational coordination works 382 00:15:45,710 --> 00:15:47,810 and increases performance in airlines, 383 00:15:47,810 --> 00:15:49,700 but you can apply this concept well 384 00:15:49,700 --> 00:15:51,530 beyond the domain of airlines. 385 00:15:51,530 --> 00:15:54,380 And it really applies, she says, in any setting where 386 00:15:54,380 --> 00:15:56,670 there is task interdependence. 387 00:15:56,670 --> 00:15:59,090 So there may be hand-offs that take place requiring 388 00:15:59,090 --> 00:16:00,885 feedback and iterations. 389 00:16:00,885 --> 00:16:02,510 Or where there is uncertainty and there 390 00:16:02,510 --> 00:16:06,140 has to be continual adjustment of plans and updating. 391 00:16:06,140 --> 00:16:08,180 Or where there are time constraints, 392 00:16:08,180 --> 00:16:12,560 and so you can't just wait while you try to fix a problem. 393 00:16:12,560 --> 00:16:14,360 Now I want you to think about what 394 00:16:14,360 --> 00:16:17,390 you think of when your careers are going to unfold 395 00:16:17,390 --> 00:16:20,018 and the kinds of industries you all anticipate being in, 396 00:16:20,018 --> 00:16:21,560 and tell me if you think you are ever 397 00:16:21,560 --> 00:16:24,110 going to spend your time in an organization that does not 398 00:16:24,110 --> 00:16:27,410 have one or more of these elements in it. 399 00:16:27,410 --> 00:16:28,078 I suspect not. 400 00:16:28,078 --> 00:16:29,870 I suspect you're all going to find yourself 401 00:16:29,870 --> 00:16:32,330 in organizations where these are critical elements. 402 00:16:32,330 --> 00:16:34,640 And so this notion of relational coordination 403 00:16:34,640 --> 00:16:36,740 is one that would translate equally well 404 00:16:36,740 --> 00:16:39,560 into any environment where these items exist. 405 00:16:39,560 --> 00:16:42,920 So one example is health care, obviously. 406 00:16:42,920 --> 00:16:46,520 Another one that we talk about is product development. 407 00:16:46,520 --> 00:16:49,730 Product development is done by different kinds of engineers, 408 00:16:49,730 --> 00:16:50,300 typically. 409 00:16:50,300 --> 00:16:51,063 Lots of hand-offs. 410 00:16:51,063 --> 00:16:51,980 Lots of uncertainties. 411 00:16:51,980 --> 00:16:53,510 Lots of time constraints. 412 00:16:53,510 --> 00:16:56,510 And I'm sure that you can think of many other situations. 413 00:16:56,510 --> 00:16:57,530 Any come to mind? 414 00:17:00,770 --> 00:17:01,330 Yes, Fabrice. 415 00:17:01,330 --> 00:17:03,008 AUDIENCE: Government programs. 416 00:17:03,008 --> 00:17:04,800 Where the government invests in an industry 417 00:17:04,800 --> 00:17:07,420 to develop something and all of the sudden you have said, 418 00:17:07,420 --> 00:17:09,605 and then everybody has something different. 419 00:17:09,605 --> 00:17:10,730 ANNALISA WEIGEL: Excellent. 420 00:17:10,730 --> 00:17:11,230 Yeah. 421 00:17:11,230 --> 00:17:11,900 Great example. 422 00:17:11,900 --> 00:17:13,983 There's lots of different products being developed 423 00:17:13,983 --> 00:17:15,670 under those circumstances. 424 00:17:15,670 --> 00:17:18,430 All right well let's look at one particular example translating 425 00:17:18,430 --> 00:17:22,819 relational coordination into another particular environment. 426 00:17:22,819 --> 00:17:26,119 Professor Hoffer Gittell then went and said, 427 00:17:26,119 --> 00:17:28,030 well let me see if this really does translate 428 00:17:28,030 --> 00:17:29,193 into other environments. 429 00:17:29,193 --> 00:17:31,360 And so she went and studied health care environments 430 00:17:31,360 --> 00:17:34,270 to see if these same elements of relational coordination 431 00:17:34,270 --> 00:17:36,400 correlated with elements of performance. 432 00:17:36,400 --> 00:17:38,220 And just as you saw with the airline chart, 433 00:17:38,220 --> 00:17:40,720 the same kind of pattern starts to appear in the health care 434 00:17:40,720 --> 00:17:42,100 industry here. 435 00:17:42,100 --> 00:17:45,250 So it's not only do we suspect that this notion 436 00:17:45,250 --> 00:17:46,840 of relational coordination translates. 437 00:17:46,840 --> 00:17:48,370 We actually have yet another study 438 00:17:48,370 --> 00:17:50,230 in another domain, which does show 439 00:17:50,230 --> 00:17:53,740 that we see increased levels of performance with increased 440 00:17:53,740 --> 00:17:57,790 instances of relational coordination. 441 00:17:57,790 --> 00:18:00,430 So in order to achieve relational coordination, 442 00:18:00,430 --> 00:18:04,060 professor Hoffer Gittell looked at various practices that were 443 00:18:04,060 --> 00:18:05,830 in place at Southwest Airlines. 444 00:18:05,830 --> 00:18:09,010 And she identified and codified 10 different ones 445 00:18:09,010 --> 00:18:12,670 that underlied being able to create an environment where 446 00:18:12,670 --> 00:18:14,830 there was good relational coordination, which 447 00:18:14,830 --> 00:18:17,845 then led to having very good performance outcomes. 448 00:18:17,845 --> 00:18:18,970 And you can read them here. 449 00:18:18,970 --> 00:18:20,320 There in your notes. 450 00:18:20,320 --> 00:18:22,710 Lead with credibility and caring. 451 00:18:22,710 --> 00:18:26,110 Hire and training for relational competence, and not just 452 00:18:26,110 --> 00:18:27,670 for other factors. 453 00:18:27,670 --> 00:18:29,415 Bridging the work-family divide. 454 00:18:29,415 --> 00:18:30,790 Recognizing that that's something 455 00:18:30,790 --> 00:18:32,560 important for employees. 456 00:18:32,560 --> 00:18:33,970 Measuring performance broadly. 457 00:18:33,970 --> 00:18:36,790 Making unions your partners. 458 00:18:36,790 --> 00:18:39,520 Building relationships with your suppliers. 459 00:18:39,520 --> 00:18:42,850 Keeping jobs flexible at the boundaries. 460 00:18:42,850 --> 00:18:44,910 In addition, creating boundaries spanners 461 00:18:44,910 --> 00:18:47,500 who are crossing different parts of the organization. 462 00:18:47,500 --> 00:18:50,540 Using conflicts to build relationships 463 00:18:50,540 --> 00:18:51,640 and to learn and grow. 464 00:18:51,640 --> 00:18:54,610 And investing in front line leadership. 465 00:18:54,610 --> 00:18:57,310 That's not the leadership at the C-suite of the organization, 466 00:18:57,310 --> 00:19:01,750 but those who are right on the front lines of, for Southwest, 467 00:19:01,750 --> 00:19:04,090 maintaining your planes, manning the gates 468 00:19:04,090 --> 00:19:07,120 and interacting with customers and so on. 469 00:19:07,120 --> 00:19:10,450 And then the outcomes that professor Hoffer Gittell 470 00:19:10,450 --> 00:19:14,930 found relational coordination leads to is higher reliability. 471 00:19:14,930 --> 00:19:17,410 This was judged for airlines by better on time performance 472 00:19:17,410 --> 00:19:18,880 and fewer lost bags. 473 00:19:18,880 --> 00:19:22,630 As well as greater customer satisfaction and shorter 474 00:19:22,630 --> 00:19:25,690 turnaround time, which is really important in an industry 475 00:19:25,690 --> 00:19:28,780 like air transportation, where you have very expensive capital 476 00:19:28,780 --> 00:19:29,547 assets. 477 00:19:29,547 --> 00:19:31,630 And the more time they're used, the greater return 478 00:19:31,630 --> 00:19:32,980 you're getting on them, and the more time 479 00:19:32,980 --> 00:19:35,522 they sit idle at the gate while they're waiting to be cleaned 480 00:19:35,522 --> 00:19:37,900 and you're offloading and onloading passengers, 481 00:19:37,900 --> 00:19:41,770 it's not generating any revenue for the organization. 482 00:19:41,770 --> 00:19:44,980 To turn to an example from health care, 483 00:19:44,980 --> 00:19:48,985 this reflects back on that chart that I showed you 484 00:19:48,985 --> 00:19:51,430 two slides ago with the coordination 485 00:19:51,430 --> 00:19:54,690 between relational coordination and performance. 486 00:19:54,690 --> 00:19:57,280 It hypothesizes that if we were able to make 487 00:19:57,280 --> 00:20:01,000 a 100% improvement in various work practices 488 00:20:01,000 --> 00:20:03,550 that underlie relational coordination in hospitals-- so 489 00:20:03,550 --> 00:20:08,290 if we were to double our measure of relational coordination 490 00:20:08,290 --> 00:20:10,810 our improvement in these work practices-- 491 00:20:10,810 --> 00:20:13,870 we would have an almost 50% increase 492 00:20:13,870 --> 00:20:15,790 in relational coordination, which would then 493 00:20:15,790 --> 00:20:19,060 lead to significant increases in patient satisfaction 494 00:20:19,060 --> 00:20:21,430 and decreases in the length of stay. 495 00:20:21,430 --> 00:20:23,440 Which are all very good things because these 496 00:20:23,440 --> 00:20:26,380 are what hospitals and health care settings tend to measure, 497 00:20:26,380 --> 00:20:28,410 right health care folks? 498 00:20:28,410 --> 00:20:29,880 You're probably measured on those. 499 00:20:29,880 --> 00:20:31,600 It's also interesting to me to note that, 500 00:20:31,600 --> 00:20:34,480 well, just because we increase our relational coordination 501 00:20:34,480 --> 00:20:36,206 doesn't necessarily mean we're going 502 00:20:36,206 --> 00:20:39,400 to increase people's freedom from pain or their mobility. 503 00:20:39,400 --> 00:20:41,170 This is a joint unit that was studied 504 00:20:41,170 --> 00:20:43,378 in this particular focus area. 505 00:20:43,378 --> 00:20:44,920 Because these are really more related 506 00:20:44,920 --> 00:20:46,795 to the types of treatment that you're giving, 507 00:20:46,795 --> 00:20:50,560 but these are elements that are really being measured 508 00:20:50,560 --> 00:20:53,510 in the hospital setting. 509 00:20:53,510 --> 00:20:56,350 So just to conclude our discussion about Southwest 510 00:20:56,350 --> 00:20:58,852 and the power of workforce productivity, some 511 00:20:58,852 --> 00:21:00,310 of the benefits that you see, we've 512 00:21:00,310 --> 00:21:02,380 got bigger revenues that are generated 513 00:21:02,380 --> 00:21:04,420 from not only satisfied customers 514 00:21:04,420 --> 00:21:07,110 but better utilized capital assets here. 515 00:21:07,110 --> 00:21:09,880 And we have reduced costs from lower employee turnover. 516 00:21:09,880 --> 00:21:12,760 If they're productive and satisfied and not having people 517 00:21:12,760 --> 00:21:13,750 sit idle. 518 00:21:13,750 --> 00:21:15,400 Wasted human resources. 519 00:21:15,400 --> 00:21:17,870 It's a very bad thing. 520 00:21:17,870 --> 00:21:19,540 And lastly, increased productivity leads 521 00:21:19,540 --> 00:21:21,040 to happy, satisfied employees, which 522 00:21:21,040 --> 00:21:22,832 leads to more increased productivity, which 523 00:21:22,832 --> 00:21:24,590 leads to more happy, satisfied employees. 524 00:21:24,590 --> 00:21:25,930 A very virtuous circle. 525 00:21:29,450 --> 00:21:32,340 So now we'd like to turn from our case example of Southwest 526 00:21:32,340 --> 00:21:35,430 and linking employee satisfaction, essentially, 527 00:21:35,430 --> 00:21:40,560 and productivity to now talking about working in teams 528 00:21:40,560 --> 00:21:44,545 and thinking about how teams can better work together. 529 00:21:44,545 --> 00:21:46,920 And to start that off we want to do some active learning. 530 00:21:46,920 --> 00:21:49,180 We're going to have a class debate. 531 00:21:49,180 --> 00:21:50,730 So the objective here is you're going 532 00:21:50,730 --> 00:21:53,490 to have a time constraint, and you're 533 00:21:53,490 --> 00:21:56,120 going to have to articulate a clear and concise message 534 00:21:56,120 --> 00:21:58,050 on one side of the debate or the other. 535 00:21:58,050 --> 00:21:59,970 That's your overall objective. 536 00:21:59,970 --> 00:22:01,470 But while you're doing that, we want 537 00:22:01,470 --> 00:22:04,980 you to observe a couple of things about the team dynamics. 538 00:22:04,980 --> 00:22:07,560 We want you to think about how differing viewpoints 539 00:22:07,560 --> 00:22:09,960 in your team affect their work. 540 00:22:09,960 --> 00:22:11,970 We want you think about the processes used 541 00:22:11,970 --> 00:22:14,190 for your group decision making. 542 00:22:14,190 --> 00:22:17,730 And lastly, we want you to think about how completing the task 543 00:22:17,730 --> 00:22:20,160 depends upon the personal feelings 544 00:22:20,160 --> 00:22:22,632 of your group and the process. 545 00:22:22,632 --> 00:22:24,090 So there's two things you're doing. 546 00:22:24,090 --> 00:22:27,578 One is you're making this argument. 547 00:22:27,578 --> 00:22:30,120 And two, you're stepping back and observing the whole process 548 00:22:30,120 --> 00:22:33,730 while it happens and taking notes on both of those. 549 00:22:33,730 --> 00:22:36,730 All right so here is our debate. 550 00:22:36,730 --> 00:22:38,190 So the early bird may get the worm, 551 00:22:38,190 --> 00:22:41,790 but it's a second mouse that gets the cheese. 552 00:22:41,790 --> 00:22:44,720 So the birds proposition here in this debate, 553 00:22:44,720 --> 00:22:48,150 putting it in a Lean context, early adopters of lean thinking 554 00:22:48,150 --> 00:22:50,828 gain the greatest competitive advantage. 555 00:22:50,828 --> 00:22:52,620 But then there's another side of the debate 556 00:22:52,620 --> 00:22:53,870 that goes something like this. 557 00:22:53,870 --> 00:22:56,938 That the second followers, people who are not the first, 558 00:22:56,938 --> 00:22:58,480 the second followers of lean thinking 559 00:22:58,480 --> 00:23:01,630 gain the greatest competitive advantage. 560 00:23:01,630 --> 00:23:03,660 So either of those points could be true. 561 00:23:03,660 --> 00:23:05,490 And we're going to assign the tables 562 00:23:05,490 --> 00:23:06,930 to be various points of view. 563 00:23:06,930 --> 00:23:10,410 And you're going to have to argue for one of these two 564 00:23:10,410 --> 00:23:12,678 different propositions. 565 00:23:12,678 --> 00:23:14,220 So I'm going to go and assign tables. 566 00:23:14,220 --> 00:23:16,620 I'm actually going to make you birds. 567 00:23:16,620 --> 00:23:17,700 Mice. 568 00:23:17,700 --> 00:23:18,480 Birds. 569 00:23:18,480 --> 00:23:19,380 Mice. 570 00:23:19,380 --> 00:23:20,550 And birds in the back. 571 00:23:23,463 --> 00:23:24,880 And what do you have to do, is I'm 572 00:23:24,880 --> 00:23:26,860 going to give you eight minutes to work 573 00:23:26,860 --> 00:23:31,990 on formulating a 60 second or less argument in support 574 00:23:31,990 --> 00:23:34,960 of the proposition you've been assigned. 575 00:23:34,960 --> 00:23:38,050 And you also then have to come up with a 30 576 00:23:38,050 --> 00:23:40,540 second or less rebuttal. 577 00:23:40,540 --> 00:23:43,360 Because the format is going to go you get to make your point. 578 00:23:43,360 --> 00:23:45,850 The birds make their point, then the mice make their point, 579 00:23:45,850 --> 00:23:49,770 then the birds get to rebut, and then the mice get to rebut. 580 00:23:49,770 --> 00:23:52,090 So you have to write two things. 581 00:23:52,090 --> 00:23:54,940 Your proposition and then your rebuttal. 582 00:23:54,940 --> 00:23:57,820 And they can take no more than 60 seconds. 583 00:23:57,820 --> 00:24:00,490 And you have eight minutes in which to formulate both. 584 00:24:00,490 --> 00:24:03,400 And then we're going to have each team do one or the other. 585 00:24:03,400 --> 00:24:05,500 You won't know which until we get time and then 586 00:24:05,500 --> 00:24:08,980 we'll kind of roll dice and see who gets assigned what. 587 00:24:08,980 --> 00:24:14,832 All right, any questions about the task asked of you? 588 00:24:14,832 --> 00:24:15,540 All right, great. 589 00:24:15,540 --> 00:24:16,110 Go to it. 590 00:24:16,110 --> 00:24:17,818 I'll give you eight minutes on the clock. 591 00:24:22,510 --> 00:24:23,460 All right, time's up. 592 00:24:26,160 --> 00:24:29,730 So now everybody's got their proposal or proposition 593 00:24:29,730 --> 00:24:32,490 and their rebuttal formulated. 594 00:24:32,490 --> 00:24:35,370 So we're going to have each. 595 00:24:35,370 --> 00:24:39,128 The birds and the mice are going to give their proposals 596 00:24:39,128 --> 00:24:40,920 and then we're going to hear the rebuttals. 597 00:24:40,920 --> 00:24:45,090 And since I don't have the right number of dice 598 00:24:45,090 --> 00:24:47,530 to roll for each of situations, I'm just going to pick. 599 00:24:47,530 --> 00:24:50,350 So I'm going to ask this table, you guys are birds? 600 00:24:50,350 --> 00:24:51,030 OK. 601 00:24:51,030 --> 00:24:53,980 I'm going to ask you to do your proposition. 602 00:24:53,980 --> 00:24:57,860 And you are birds in the back, too? 603 00:24:57,860 --> 00:24:59,670 I'll ask you to do your proposition. 604 00:24:59,670 --> 00:25:01,500 So we'll hear same thing from both teams. 605 00:25:01,500 --> 00:25:05,790 And I'll ask remainder birds that you guys do the rebuttal. 606 00:25:05,790 --> 00:25:08,510 And then I'll ask this team over here, mice? 607 00:25:08,510 --> 00:25:10,030 I'll ask you to do the proposition, 608 00:25:10,030 --> 00:25:12,030 and I'll ask this mouse team to do the rebuttal. 609 00:25:14,720 --> 00:25:15,220 All right. 610 00:25:15,220 --> 00:25:16,703 So let's have the birds go first. 611 00:25:16,703 --> 00:25:18,370 So we'll hear the two bird propositions. 612 00:25:18,370 --> 00:25:18,880 Go ahead. 613 00:25:18,880 --> 00:25:20,680 And I've got you on the clock. 614 00:25:20,680 --> 00:25:24,340 AUDIENCE: So, we think it's a good idea 615 00:25:24,340 --> 00:25:27,250 to start early because it's a continuous process, 616 00:25:27,250 --> 00:25:30,550 and takes time to implement and to change your company's 617 00:25:30,550 --> 00:25:31,120 culture. 618 00:25:31,120 --> 00:25:32,870 So we're talking about five years earlier. 619 00:25:32,870 --> 00:25:34,720 So the sooner you get started, the sooner 620 00:25:34,720 --> 00:25:38,130 you can realize your gains. 621 00:25:38,130 --> 00:25:41,230 You can use creativity to create the standard 622 00:25:41,230 --> 00:25:44,674 before other people really define it for you. 623 00:25:47,420 --> 00:25:51,200 If you start early and you find you run into some challenges, 624 00:25:51,200 --> 00:25:54,419 then you have time to go back and change things and make 625 00:25:54,419 --> 00:25:57,884 it more efficient or choose a different path. 626 00:25:57,884 --> 00:26:01,480 You can establish a reputation as being innovative, 627 00:26:01,480 --> 00:26:03,135 which will not only encourage people 628 00:26:03,135 --> 00:26:08,076 to invest in your company but may also excite your employees. 629 00:26:08,076 --> 00:26:11,654 Because they'll just be excited about being on the leading 630 00:26:11,654 --> 00:26:13,932 edge of something. 631 00:26:13,932 --> 00:26:16,372 And then it takes time to change the culture of a company, 632 00:26:16,372 --> 00:26:19,007 so that's also a good advantage of starting early. 633 00:26:19,007 --> 00:26:19,840 ANNALISA WEIGEL: OK. 634 00:26:19,840 --> 00:26:21,940 And just a few sentences to spare. 635 00:26:21,940 --> 00:26:22,630 Good job. 636 00:26:22,630 --> 00:26:24,640 Let's have the other proposition for birds. 637 00:26:24,640 --> 00:26:27,150 And please speak up so everybody can hear you. 638 00:26:27,150 --> 00:26:30,300 AUDIENCE: Well, I'm going to start with the graph 639 00:26:30,300 --> 00:26:31,060 that we have here. 640 00:26:31,060 --> 00:26:33,750 So this is time, and this is productivity. 641 00:26:33,750 --> 00:26:35,610 And if you start with this company right 642 00:26:35,610 --> 00:26:38,280 here, which would be the early bird adopting Lean 643 00:26:38,280 --> 00:26:42,150 and they improve their productivity and their employee 644 00:26:42,150 --> 00:26:44,350 satisfaction and their efficiency, 645 00:26:44,350 --> 00:26:47,460 there is virtually no way that this second company 646 00:26:47,460 --> 00:26:50,370 that starts at a later time can ever catch up to it. 647 00:26:50,370 --> 00:26:53,340 And while they start their innovations, 648 00:26:53,340 --> 00:26:56,670 we're moving on to our next innovations 649 00:26:56,670 --> 00:26:59,730 after we've already established some brand loyalty 650 00:26:59,730 --> 00:27:01,890 and got customer allegiance. 651 00:27:01,890 --> 00:27:06,000 We've had the market edge. 652 00:27:06,000 --> 00:27:07,770 At some point, the market gets saturated 653 00:27:07,770 --> 00:27:12,180 and we've already reached it, like this graph shows you. 654 00:27:12,180 --> 00:27:14,670 The same thing that our colleagues were saying 655 00:27:14,670 --> 00:27:16,960 is that because it takes five years 656 00:27:16,960 --> 00:27:19,100 and it's not just an end street. 657 00:27:19,100 --> 00:27:21,450 If we have ongoing continuous improvement, 658 00:27:21,450 --> 00:27:23,550 that it's something that continues moving 659 00:27:23,550 --> 00:27:26,030 on indefinitely in the future. 660 00:27:26,030 --> 00:27:29,550 In our patients, we have better recruitment and retention 661 00:27:29,550 --> 00:27:31,320 of satisfied employees. 662 00:27:31,320 --> 00:27:33,570 Our end product is better and we can respond 663 00:27:33,570 --> 00:27:33,885 to customer's needs-- 664 00:27:33,885 --> 00:27:35,100 ANNALISA WEIGEL: Times up. 665 00:27:35,100 --> 00:27:36,710 AUDIENCE: --quickly. 666 00:27:36,710 --> 00:27:37,830 ANNALISA WEIGEL: OK. 667 00:27:37,830 --> 00:27:39,930 Thank you. 668 00:27:39,930 --> 00:27:42,530 All right let's go to our mice. 669 00:27:45,967 --> 00:27:47,710 AUDIENCE: So, the first to make it 670 00:27:47,710 --> 00:27:50,260 work in a sense of the risk of failure and squander 671 00:27:50,260 --> 00:27:51,690 time and resources. 672 00:27:51,690 --> 00:27:54,030 Once a plan has been implemented that is advantageous, 673 00:27:54,030 --> 00:27:56,790 you see that the stated inefficiencies of that process 674 00:27:56,790 --> 00:27:59,090 can be corrected, redrafted, and implemented. 675 00:27:59,090 --> 00:28:01,050 Gain a competitive advantage. 676 00:28:01,050 --> 00:28:04,620 Also by starting up later, the standard 677 00:28:04,620 --> 00:28:05,940 had already been established. 678 00:28:05,940 --> 00:28:07,870 And that way the implementation time is less. 679 00:28:10,375 --> 00:28:11,500 ANNALISA WEIGEL: Very good. 680 00:28:11,500 --> 00:28:12,190 Very efficient. 681 00:28:12,190 --> 00:28:14,800 Much less than 60 seconds. 682 00:28:14,800 --> 00:28:16,330 All right, now we've heard arguments 683 00:28:16,330 --> 00:28:17,690 on both sides of the case. 684 00:28:17,690 --> 00:28:19,780 So let's hear some rebuttals. 685 00:28:19,780 --> 00:28:20,830 So the mice just went. 686 00:28:20,830 --> 00:28:22,330 So let's hear the bird's rebuttal 687 00:28:22,330 --> 00:28:25,782 to the mouse's proposition. 688 00:28:25,782 --> 00:28:27,490 AUDIENCE: So, certainly the mice proposed 689 00:28:27,490 --> 00:28:30,470 that they would learn from bird's mistakes. 690 00:28:30,470 --> 00:28:35,080 But so much of Lean is specific to individual enterprises 691 00:28:35,080 --> 00:28:37,510 as it relates to local politics, the culture 692 00:28:37,510 --> 00:28:40,270 that enterprise has in its space that we 693 00:28:40,270 --> 00:28:41,920 think that it's very specific. 694 00:28:41,920 --> 00:28:45,480 And what we learn in, say, BI might not necessarily 695 00:28:45,480 --> 00:28:48,945 be directly transferable to working with medicine. 696 00:28:48,945 --> 00:28:50,710 It defends the bird. 697 00:28:50,710 --> 00:28:56,880 And our second point is that by not being an early adopter, 698 00:28:56,880 --> 00:28:58,620 you're kind of adding some more time. 699 00:28:58,620 --> 00:29:01,270 You're kind of just sitting around and waiting and existing 700 00:29:01,270 --> 00:29:05,070 in a culture of efficiency that is doing harm to health care 701 00:29:05,070 --> 00:29:06,690 patients, potentially. 702 00:29:06,690 --> 00:29:08,560 And that's just unacceptable when 703 00:29:08,560 --> 00:29:14,585 you know that there is better ways of operating on the daily. 704 00:29:14,585 --> 00:29:15,710 ANNALISA WEIGEL: Very good. 705 00:29:15,710 --> 00:29:16,490 No pun intended. 706 00:29:19,310 --> 00:29:21,410 All right, let's hear the rebuttal 707 00:29:21,410 --> 00:29:24,230 to the mouse's proposition. 708 00:29:24,230 --> 00:29:28,580 AUDIENCE: So for the mice, it's better to be the second adapter 709 00:29:28,580 --> 00:29:32,690 because you have an easier time getting buy in. 710 00:29:32,690 --> 00:29:35,990 And that's one of the biggest hurdles, because people 711 00:29:35,990 --> 00:29:39,750 see how it's worked in other industries, other companies, 712 00:29:39,750 --> 00:29:41,450 so they say, Oh, we can do this. 713 00:29:41,450 --> 00:29:43,910 You can also pick and choose what you want 714 00:29:43,910 --> 00:29:45,740 and what you think will work best 715 00:29:45,740 --> 00:29:48,720 for your specific situation. 716 00:29:48,720 --> 00:29:50,480 You also have more experts to learn 717 00:29:50,480 --> 00:29:54,440 from because you can tap into the resources and the knowledge 718 00:29:54,440 --> 00:29:57,310 of the other companies and see what failed. 719 00:29:57,310 --> 00:30:01,630 And it's always the first time that takes the most. 720 00:30:01,630 --> 00:30:04,190 And then you're starting from a higher point 721 00:30:04,190 --> 00:30:08,410 so you can more easily reach and even surpass 722 00:30:08,410 --> 00:30:10,830 the point of the birds. 723 00:30:10,830 --> 00:30:12,930 AUDIENCE: And just to add to that, 724 00:30:12,930 --> 00:30:17,280 they shared with us a graph showing production. 725 00:30:17,280 --> 00:30:20,215 Today we learned that the US auto industry compared 726 00:30:20,215 --> 00:30:21,970 to the Japan auto industry. 727 00:30:21,970 --> 00:30:23,802 As 1947, Japan 728 00:30:23,802 --> 00:30:28,690 [LOUD LAUGHTER] 729 00:30:28,690 --> 00:30:31,040 AUDIENCE: In the space of about 40 years, 730 00:30:31,040 --> 00:30:33,890 they have way overtaken the US industry. 731 00:30:33,890 --> 00:30:36,212 So this is a clear example that there's always 732 00:30:36,212 --> 00:30:36,920 room to overtake. 733 00:30:36,920 --> 00:30:38,879 ANNALISA WEIGEL: All right, and that's actually 734 00:30:38,879 --> 00:30:39,790 your 60 seconds. 735 00:30:39,790 --> 00:30:40,980 OK. 736 00:30:40,980 --> 00:30:41,620 Very good. 737 00:30:44,440 --> 00:30:45,120 Excellent. 738 00:30:45,120 --> 00:30:51,390 So I'm glad that this has inspired some fires in you. 739 00:30:51,390 --> 00:30:54,020 So now that you've heard both sides of the argument, 740 00:30:54,020 --> 00:30:57,090 I actually would like you to step aside from your team 741 00:30:57,090 --> 00:30:58,860 propositions regardless of what you're 742 00:30:58,860 --> 00:31:00,498 asked to argue for your teams and I 743 00:31:00,498 --> 00:31:02,790 want you to think about the arguments and the rebuttals 744 00:31:02,790 --> 00:31:04,110 that you did here. 745 00:31:04,110 --> 00:31:07,080 And think about which side of the argument 746 00:31:07,080 --> 00:31:09,302 seemed more convincing to you personally. 747 00:31:09,302 --> 00:31:11,010 So if you could take out your green cards 748 00:31:11,010 --> 00:31:13,140 and your yellow cards, I'd like you 749 00:31:13,140 --> 00:31:17,210 to think if you really believe the bird argument or the mouse 750 00:31:17,210 --> 00:31:17,710 argument. 751 00:31:17,710 --> 00:31:19,530 So if you feel you believe the bird argument, 752 00:31:19,530 --> 00:31:20,430 raise up a green card. 753 00:31:20,430 --> 00:31:22,388 And if you feel you believe the mouse argument, 754 00:31:22,388 --> 00:31:23,560 raise up the yellow card. 755 00:31:23,560 --> 00:31:24,435 Go ahead raise it up. 756 00:31:24,435 --> 00:31:26,490 We just want to get a sense of the room. 757 00:31:32,334 --> 00:31:35,256 [LAUGHTER] 758 00:31:46,517 --> 00:31:48,850 ANNALISA WEIGEL: Do we have everybody making a decision? 759 00:31:51,430 --> 00:31:54,450 Somebody lost the green cards. 760 00:31:54,450 --> 00:31:56,200 All right, so it looks like-- look around. 761 00:31:56,200 --> 00:32:00,040 We've got more green cards than yellow cards. 762 00:32:00,040 --> 00:32:04,720 But still, we got maybe 4 to 1 green to yellow. 763 00:32:04,720 --> 00:32:06,520 So it seems like overall you all feel 764 00:32:06,520 --> 00:32:10,360 that the bird argument, the early adopters of Lean, 765 00:32:10,360 --> 00:32:12,550 have the greatest competitive advantage. 766 00:32:12,550 --> 00:32:14,690 And there's no right and wrong to this, 767 00:32:14,690 --> 00:32:17,410 and it's largely dependent on your context and situation 768 00:32:17,410 --> 00:32:19,720 and there may be circumstances where it's better 769 00:32:19,720 --> 00:32:21,070 for an organization to wait. 770 00:32:21,070 --> 00:32:23,710 The organization is, say, in the middle of big transition 771 00:32:23,710 --> 00:32:24,520 to a new product. 772 00:32:24,520 --> 00:32:26,870 That just might not be the right time to start. 773 00:32:26,870 --> 00:32:29,140 It may not be advantageous for them to think 774 00:32:29,140 --> 00:32:31,303 about being an early adopter. 775 00:32:31,303 --> 00:32:33,220 But there are certainly are lots of advantages 776 00:32:33,220 --> 00:32:36,710 for an organization who's ready to adopt Lean to adopt it. 777 00:32:36,710 --> 00:32:39,010 So you might say that if you're ready, if you're able, 778 00:32:39,010 --> 00:32:41,410 if it's a good time and if you don't adopt Lean, 779 00:32:41,410 --> 00:32:42,260 that's not so good. 780 00:32:42,260 --> 00:32:42,760 Right? 781 00:32:42,760 --> 00:32:44,920 But necessarily being an early adopter 782 00:32:44,920 --> 00:32:47,590 doesn't have to help you but it certainly 783 00:32:47,590 --> 00:32:50,950 can be a very good thing for an organization. 784 00:32:50,950 --> 00:32:53,200 So now let's turn from thinking about the outcome 785 00:32:53,200 --> 00:32:55,408 of this debate and whether you thought about yourself 786 00:32:55,408 --> 00:32:56,578 as a bird or a mouse. 787 00:32:56,578 --> 00:32:58,120 Let's think about the team experience 788 00:32:58,120 --> 00:32:59,710 itself, which was the other element 789 00:32:59,710 --> 00:33:01,252 I asked you to reflect upon as you're 790 00:33:01,252 --> 00:33:03,470 going through this exercise. 791 00:33:03,470 --> 00:33:04,960 So think about this common dilemma 792 00:33:04,960 --> 00:33:06,460 that we find ourselves in when we're 793 00:33:06,460 --> 00:33:08,980 working in teams of your personal views versus the team 794 00:33:08,980 --> 00:33:10,330 views. 795 00:33:10,330 --> 00:33:13,000 Think about your exercise here, was there 796 00:33:13,000 --> 00:33:15,610 adapting that you did or was there compromising you 797 00:33:15,610 --> 00:33:18,280 saw taking place in the team? 798 00:33:18,280 --> 00:33:20,860 How were the personal feelings, attitudes, and perceptions 799 00:33:20,860 --> 00:33:22,030 of others handled? 800 00:33:22,030 --> 00:33:23,830 How did you feel was handled for you? 801 00:33:23,830 --> 00:33:26,560 Did you feel anybody else maybe being 802 00:33:26,560 --> 00:33:29,120 uncomfortable in that situation? 803 00:33:29,120 --> 00:33:31,270 What about the wordings of statements? 804 00:33:31,270 --> 00:33:35,200 Did you, as a team, argue about how you worded things? 805 00:33:35,200 --> 00:33:36,790 Did that make a difference? 806 00:33:36,790 --> 00:33:38,590 What was the process used for your group 807 00:33:38,590 --> 00:33:41,697 to decide and discuss and present? 808 00:33:41,697 --> 00:33:42,530 Was there a process? 809 00:33:42,530 --> 00:33:43,488 Did you think about it? 810 00:33:43,488 --> 00:33:45,250 How did it unfold? 811 00:33:45,250 --> 00:33:47,870 And how satisfied were you with the team outcome? 812 00:33:47,870 --> 00:33:51,010 And I'd like to take maybe three minutes for each group 813 00:33:51,010 --> 00:33:52,660 to discuss it within their group. 814 00:33:52,660 --> 00:33:54,243 And then we'll take one or two minutes 815 00:33:54,243 --> 00:33:57,663 to kind of give some open commentary on these issues 816 00:33:57,663 --> 00:33:59,080 as you discuss them in your group. 817 00:34:01,987 --> 00:34:03,820 If I can have everybody's attention, please. 818 00:34:03,820 --> 00:34:06,850 We'll get back to sharing our discussions with the class 819 00:34:06,850 --> 00:34:09,135 so we can all benefit from the table discussions. 820 00:34:09,135 --> 00:34:10,510 Table discussions are a great way 821 00:34:10,510 --> 00:34:12,110 to get more people talking at once. 822 00:34:12,110 --> 00:34:13,929 So if we just had a class discussion, 823 00:34:13,929 --> 00:34:16,449 we would get one fifth the kind of conversation 824 00:34:16,449 --> 00:34:18,210 that we get going on with all the tables. 825 00:34:18,210 --> 00:34:20,627 So now I'd like to hear though, about some of the richness 826 00:34:20,627 --> 00:34:22,330 of the conversations you had. 827 00:34:22,330 --> 00:34:25,630 So first on items of the dilemma of the personal versus team 828 00:34:25,630 --> 00:34:26,170 views. 829 00:34:26,170 --> 00:34:28,300 Which tables felt that they experienced 830 00:34:28,300 --> 00:34:29,350 some of those things? 831 00:34:29,350 --> 00:34:31,411 Yes? 832 00:34:31,411 --> 00:34:32,994 AUDIENCE: Well at the start, I sort of 833 00:34:32,994 --> 00:34:35,770 had a different opinion from the rest of the team. 834 00:34:35,770 --> 00:34:41,280 Because we were assigned to a particular side of the coin. 835 00:34:41,280 --> 00:34:43,512 We just had to work together. 836 00:34:43,512 --> 00:34:47,302 We didn't-- ten seconds I was convinced I was in the group. 837 00:34:47,302 --> 00:34:48,219 ANNALISA WEIGEL: Tory? 838 00:34:48,219 --> 00:34:50,469 AUDIENCE: I think we came to a very similar conclusion 839 00:34:50,469 --> 00:34:54,280 of saying had it been maybe a topic like politics, where 840 00:34:54,280 --> 00:34:56,770 everybody has a view but you're just meeting people 841 00:34:56,770 --> 00:34:59,716 and you want to be respectful of other people. 842 00:34:59,716 --> 00:35:01,770 So you might have had a little more conflict. 843 00:35:01,770 --> 00:35:03,940 Whereas here, since we were given our conclusion, 844 00:35:03,940 --> 00:35:06,310 everyone was just trying to quickly find 845 00:35:06,310 --> 00:35:09,620 ways to support that conclusion together. 846 00:35:09,620 --> 00:35:11,370 ANNALISA WEIGEL: And this table over here? 847 00:35:11,370 --> 00:35:13,620 Where you guys had an even split of yellows and greens 848 00:35:13,620 --> 00:35:15,860 in your personal votes? 849 00:35:15,860 --> 00:35:16,970 AUDIENCE: No. 850 00:35:16,970 --> 00:35:18,504 AUDIENCE: We were all yellow. 851 00:35:18,504 --> 00:35:20,662 [LAUGHTER] 852 00:35:20,662 --> 00:35:23,120 AUDIENCE: We worked so well together that we were actually, 853 00:35:23,120 --> 00:35:24,120 truly, convinced. 854 00:35:28,055 --> 00:35:29,180 ANNALISA WEIGEL: Excellent. 855 00:35:29,180 --> 00:35:34,170 Let's talk about the process that you used. 856 00:35:34,170 --> 00:35:37,100 We just had a big lecture on process before this, right? 857 00:35:37,100 --> 00:35:38,930 And seeing life as a process. 858 00:35:38,930 --> 00:35:41,630 What process did you use? 859 00:35:41,630 --> 00:35:43,550 AUDIENCE: We had a good process. 860 00:35:43,550 --> 00:35:46,370 I mean, everyone had to give their opinion initially. 861 00:35:46,370 --> 00:35:50,370 We had input from everyone before coming to a consensus. 862 00:35:50,370 --> 00:35:52,280 So it wasn't like someone just came up 863 00:35:52,280 --> 00:35:53,330 with the final solution. 864 00:35:53,330 --> 00:35:56,520 I mean, we have to listen to everybody's point of view. 865 00:35:56,520 --> 00:35:58,760 And maybe because our group is small, maybe 866 00:35:58,760 --> 00:36:01,250 it was more effective, we were able to come 867 00:36:01,250 --> 00:36:04,280 to a very quick conclusion based on different input 868 00:36:04,280 --> 00:36:04,928 from everyone. 869 00:36:04,928 --> 00:36:06,845 ANNALISA WEIGEL: Other reflections on process? 870 00:36:11,430 --> 00:36:13,560 AUDIENCE: I guess it was not explicitly delineated, 871 00:36:13,560 --> 00:36:16,950 but we split up our time into three different sections. 872 00:36:16,950 --> 00:36:21,240 One was just anyone who just chimed in with their own answer 873 00:36:21,240 --> 00:36:22,250 supporting the case. 874 00:36:22,250 --> 00:36:25,290 Two was looking and anticipating rebuttals, 875 00:36:25,290 --> 00:36:27,227 and three was just writing it all down. 876 00:36:27,227 --> 00:36:28,352 ANNALISA WEIGEL: Excellent. 877 00:36:28,352 --> 00:36:32,080 And did you come up with a written statement? 878 00:36:32,080 --> 00:36:34,510 AUDIENCE: Yeah, we did. 879 00:36:34,510 --> 00:36:35,742 ANNALISA WEIGEL: Excellent. 880 00:36:35,742 --> 00:36:39,467 [CLASS TWITTERING] 881 00:36:39,467 --> 00:36:41,300 ANNALISA WEIGEL: How about your satisfaction 882 00:36:41,300 --> 00:36:43,700 with the team outcomes. 883 00:36:43,700 --> 00:36:48,816 Anybody unsatisfied or satisfied with the team outcome? 884 00:36:48,816 --> 00:36:50,528 I'm going to hazard a guess on balance. 885 00:36:50,528 --> 00:36:52,070 People seemed satisfied because there 886 00:36:52,070 --> 00:36:53,810 wasn't a lot of storming out of the room 887 00:36:53,810 --> 00:36:55,070 and yelling and shouting. 888 00:36:55,070 --> 00:36:59,210 But, if you had any complaints however small about your team 889 00:36:59,210 --> 00:37:00,200 outcomes. 890 00:37:00,200 --> 00:37:01,580 If you wanted to voice that. 891 00:37:01,580 --> 00:37:02,200 AUDIENCE: Don't get me wrong. 892 00:37:02,200 --> 00:37:03,992 We were mice, but by the time we were done, 893 00:37:03,992 --> 00:37:07,243 we were all pretty much agreed on the bird view. 894 00:37:07,243 --> 00:37:09,410 AUDIENCE: I think we started out with the bird view. 895 00:37:09,410 --> 00:37:11,230 We forced ourselves to go to our mice view, 896 00:37:11,230 --> 00:37:12,855 and then we came back to bird view. 897 00:37:12,855 --> 00:37:14,480 AUDIENCE: Because as soon as we started 898 00:37:14,480 --> 00:37:16,733 talking about a rebuttal we realized, yeah. 899 00:37:18,912 --> 00:37:20,870 ANNALISA WEIGEL: Which is why good debate teams 900 00:37:20,870 --> 00:37:23,300 work on their rebuttals a lot. 901 00:37:23,300 --> 00:37:26,060 OK so let's use this exercise then to jump off 902 00:37:26,060 --> 00:37:29,240 into our last segment of slides here in our people 903 00:37:29,240 --> 00:37:34,010 module focusing on team elements and team skills. 904 00:37:34,010 --> 00:37:36,530 And this chart is our transition to just remind us how 905 00:37:36,530 --> 00:37:38,300 people are the heart of Lean. 906 00:37:38,300 --> 00:37:41,540 Because we have the tasks, which are what the people are doing. 907 00:37:41,540 --> 00:37:45,190 And you all just had a task in your exercise. 908 00:37:45,190 --> 00:37:47,315 The processes are how people are doing their tasks. 909 00:37:47,315 --> 00:37:49,482 And we talked about what your process may or may not 910 00:37:49,482 --> 00:37:49,982 have been. 911 00:37:49,982 --> 00:37:51,232 But it's all about the people. 912 00:37:51,232 --> 00:37:52,640 The people are doing the tasks. 913 00:37:52,640 --> 00:37:54,170 The people are doing the process. 914 00:37:54,170 --> 00:37:57,470 And they set within various organization structures 915 00:37:57,470 --> 00:38:00,020 that are what enable them to do their processes and tasks. 916 00:38:00,020 --> 00:38:02,270 And that's all embedded in a particular organization's 917 00:38:02,270 --> 00:38:08,690 culture, which has attributes about it that further influence 918 00:38:08,690 --> 00:38:13,410 and enable a person's ability to do their tasks and processes. 919 00:38:13,410 --> 00:38:15,980 Many of the work that people do are in teams 920 00:38:15,980 --> 00:38:17,480 and they're collaborating. 921 00:38:17,480 --> 00:38:20,300 And there's really three elements of collaboration. 922 00:38:20,300 --> 00:38:22,670 There's not just the thing you're doing, 923 00:38:22,670 --> 00:38:24,830 but there's how you're doing it and then there's 924 00:38:24,830 --> 00:38:28,718 this thing we call affect, which is the feelings about the work. 925 00:38:28,718 --> 00:38:30,260 And this is what the people bring to. 926 00:38:30,260 --> 00:38:32,720 And it's based on your prior experiences. 927 00:38:32,720 --> 00:38:34,220 It's based on the culture that you 928 00:38:34,220 --> 00:38:38,300 sit in, organizational, national, ethnic, et cetera, 929 00:38:38,300 --> 00:38:41,033 on your own biases that you bring to what you're doing. 930 00:38:41,033 --> 00:38:42,950 And it's also based on your current experience 931 00:38:42,950 --> 00:38:44,180 and where you are. 932 00:38:44,180 --> 00:38:47,930 And it's both the process as well as the feelings 933 00:38:47,930 --> 00:38:49,760 or the affect that are supporting 934 00:38:49,760 --> 00:38:52,400 the task actually getting done. 935 00:38:52,400 --> 00:38:54,080 When you're collaborating in teams, 936 00:38:54,080 --> 00:38:56,780 and you're bringing all these elements together of process, 937 00:38:56,780 --> 00:38:58,190 task, and affect. 938 00:38:58,190 --> 00:39:00,320 There's a lot of benefits to collaboration. 939 00:39:00,320 --> 00:39:03,020 You get-- I think most of you would recognize these-- you get 940 00:39:03,020 --> 00:39:06,230 more ideas, new ideas, multiple areas of expertise 941 00:39:06,230 --> 00:39:08,030 to bring to bear on the problem. 942 00:39:08,030 --> 00:39:09,320 Work is shared. 943 00:39:09,320 --> 00:39:11,600 It should result in some stronger problem solving 944 00:39:11,600 --> 00:39:14,540 abilities and should improve things like design work 945 00:39:14,540 --> 00:39:17,150 and other kind of creative tasks. 946 00:39:17,150 --> 00:39:20,900 But there's also a lot of challenges that are involved 947 00:39:20,900 --> 00:39:22,130 in collaborating with teams. 948 00:39:22,130 --> 00:39:23,672 And I'm sure you've all run into some 949 00:39:23,672 --> 00:39:26,173 of those over the course of your school and work time. 950 00:39:26,173 --> 00:39:27,590 So what are some of the challenges 951 00:39:27,590 --> 00:39:31,770 you run into when you're trying to collaborate? 952 00:39:31,770 --> 00:39:33,660 AUDIENCE: The workload isn't shared evenly. 953 00:39:33,660 --> 00:39:35,702 ANNALISA WEIGEL: Not shared evenly in a workload. 954 00:39:35,702 --> 00:39:36,610 What else? 955 00:39:36,610 --> 00:39:39,400 AUDIENCE: I think diversity can bring new ideas. 956 00:39:39,400 --> 00:39:42,040 But if our group size was larger, I mean, 957 00:39:42,040 --> 00:39:45,010 it's hard to accommodate everyone's ideas. 958 00:39:45,010 --> 00:39:47,810 So somebody might view that, oh my ideas 959 00:39:47,810 --> 00:39:50,390 didn't get into the process. 960 00:39:50,390 --> 00:39:52,900 ANNALISA WEIGEL: So it can be inefficient and unwieldy? 961 00:39:52,900 --> 00:39:53,990 AUDIENCE: Yeah. 962 00:39:53,990 --> 00:39:55,407 AUDIENCE: It takes time to develop 963 00:39:55,407 --> 00:39:56,948 a consensus in a big team. 964 00:39:56,948 --> 00:39:58,490 ANNALISA WEIGEL: More time consuming. 965 00:40:01,110 --> 00:40:01,610 Yes. 966 00:40:01,610 --> 00:40:03,830 AUDIENCE: We were talking about how as we go in, 967 00:40:03,830 --> 00:40:07,400 the people that we're working with may not be skilled. 968 00:40:07,400 --> 00:40:10,010 May not know how to work in this sort of model. 969 00:40:10,010 --> 00:40:12,260 That they're used to just being told what to do. 970 00:40:12,260 --> 00:40:14,120 I see that on a micro level with patients, 971 00:40:14,120 --> 00:40:17,960 but also if you try and ask your staff 972 00:40:17,960 --> 00:40:22,160 to be more of a contributor, and be more responsible 973 00:40:22,160 --> 00:40:23,940 and also take on more credit, they 974 00:40:23,940 --> 00:40:25,607 may be like, what are you talking about? 975 00:40:25,607 --> 00:40:27,620 I punch in, I punch out. 976 00:40:27,620 --> 00:40:29,280 I'm not a member in that way. 977 00:40:29,280 --> 00:40:30,700 So you have to retrain them. 978 00:40:30,700 --> 00:40:31,340 ANNALISA WEIGEL: People just may not 979 00:40:31,340 --> 00:40:34,130 have the skills to collaborate in teams that they need. 980 00:40:34,130 --> 00:40:37,833 Either by training or just by expectations. 981 00:40:37,833 --> 00:40:39,500 These are some of the common challenges. 982 00:40:39,500 --> 00:40:42,650 I'll just list for you on the rest of the slide ones 983 00:40:42,650 --> 00:40:44,930 that we think are prominent as well. 984 00:40:44,930 --> 00:40:46,517 Different goals and values. 985 00:40:46,517 --> 00:40:48,350 We just talked about not being skilled in it 986 00:40:48,350 --> 00:40:49,790 or practiced in it. 987 00:40:49,790 --> 00:40:51,680 Sometimes you run into ego issues 988 00:40:51,680 --> 00:40:54,350 and people are defensive about their particular work 989 00:40:54,350 --> 00:40:55,950 or their ideas. 990 00:40:55,950 --> 00:40:59,000 Their preconceived notions that get in the way of teamwork. 991 00:40:59,000 --> 00:41:00,710 And then there's differing work styles 992 00:41:00,710 --> 00:41:02,377 that you try to bring together in a team 993 00:41:02,377 --> 00:41:03,890 and that can be counterproductive 994 00:41:03,890 --> 00:41:05,240 to your efficiency. 995 00:41:05,240 --> 00:41:07,790 Or maybe somebody worked in a bad team situation before 996 00:41:07,790 --> 00:41:11,000 and that's just really hindering their ability to work together 997 00:41:11,000 --> 00:41:13,153 productively in future teams. 998 00:41:13,153 --> 00:41:14,570 So then, with all these challenges 999 00:41:14,570 --> 00:41:16,370 how do you meet them? 1000 00:41:16,370 --> 00:41:17,850 What are some of your thoughts? 1001 00:41:17,850 --> 00:41:20,840 AUDIENCE: I think setting out ahead of time 1002 00:41:20,840 --> 00:41:23,220 what the expectations of teamwork 1003 00:41:23,220 --> 00:41:26,900 are, and just kind of lay out for people 1004 00:41:26,900 --> 00:41:29,788 how do you work with a team? 1005 00:41:29,788 --> 00:41:31,270 Like respect others. 1006 00:41:31,270 --> 00:41:33,565 Listen first, speak later. 1007 00:41:33,565 --> 00:41:34,375 Things like that. 1008 00:41:34,375 --> 00:41:35,500 ANNALISA WEIGEL: Excellent. 1009 00:41:35,500 --> 00:41:38,395 So clear rules and education. 1010 00:41:38,395 --> 00:41:40,270 AUDIENCE: I think shared knowledge and shared 1011 00:41:40,270 --> 00:41:44,140 goals can add a lot to the relational coordination, 1012 00:41:44,140 --> 00:41:47,680 because this is how you share your goals with others 1013 00:41:47,680 --> 00:41:50,580 and try to convince them to come to the same conclusion. 1014 00:41:50,580 --> 00:41:53,775 Otherwise, I mean, everyone feels that I had my own ideas. 1015 00:41:57,810 --> 00:41:59,190 AUDIENCE: Something important. 1016 00:41:59,190 --> 00:42:01,410 The diagrams you always show about collaboration, 1017 00:42:01,410 --> 00:42:04,020 is always-- the puzzle pieces always fit perfectly, which 1018 00:42:04,020 --> 00:42:06,320 I think is a misrepresentation. 1019 00:42:06,320 --> 00:42:09,220 You have to accept that puzzle pieces won't fit perfectly, 1020 00:42:09,220 --> 00:42:12,570 and there's someone who's going to make a decision in the end. 1021 00:42:12,570 --> 00:42:14,510 And if there is a culture of mutual respect, 1022 00:42:14,510 --> 00:42:16,760 the person making the decision will respect the people 1023 00:42:16,760 --> 00:42:19,780 that brought in suggestions and vice versa 1024 00:42:19,780 --> 00:42:23,700 and that's just the nature of life. 1025 00:42:23,700 --> 00:42:27,950 ANNALISA WEIGEL: Establishing that expectation is important. 1026 00:42:27,950 --> 00:42:29,560 AUDIENCE: Things like ongoing training 1027 00:42:29,560 --> 00:42:32,200 and starting off with something small 1028 00:42:32,200 --> 00:42:37,390 that you can have an obvious, tangible result with guaranteed 1029 00:42:37,390 --> 00:42:38,000 success. 1030 00:42:38,000 --> 00:42:41,060 So that they can learn the process and feel good about it. 1031 00:42:41,060 --> 00:42:45,820 And then keep continuously doing ongoing training over time 1032 00:42:45,820 --> 00:42:52,320 to improve their ability to do it and remind them. 1033 00:42:52,320 --> 00:42:53,670 ANNALISA WEIGEL: Excellent. 1034 00:42:53,670 --> 00:42:56,010 Again really excellent ideas. 1035 00:42:56,010 --> 00:42:58,527 Let me spell out some others, some 1036 00:42:58,527 --> 00:43:00,360 that are duplicate of what we just discussed 1037 00:43:00,360 --> 00:43:02,070 and some which are new. 1038 00:43:02,070 --> 00:43:04,110 So long the lines are trying to make it explicit 1039 00:43:04,110 --> 00:43:06,540 and trying to train people and set expectations, 1040 00:43:06,540 --> 00:43:09,250 you may want to try to do those also in writing and not just 1041 00:43:09,250 --> 00:43:09,750 verbally. 1042 00:43:09,750 --> 00:43:11,167 Sometimes seeing things in writing 1043 00:43:11,167 --> 00:43:14,880 can really help people understand what's going on. 1044 00:43:14,880 --> 00:43:17,010 Considering alternate ideas or solutions 1045 00:43:17,010 --> 00:43:18,990 and not jumping to consensus prematurely 1046 00:43:18,990 --> 00:43:22,590 can be one way to meet the challenges of collaboration. 1047 00:43:22,590 --> 00:43:25,020 Paying careful attention to process is really important. 1048 00:43:25,020 --> 00:43:28,770 If people understand the process is very clear and very fair, 1049 00:43:28,770 --> 00:43:31,500 then when they express opinions that are counter to what 1050 00:43:31,500 --> 00:43:33,390 the rest of the group does want to do, 1051 00:43:33,390 --> 00:43:34,740 and the group goes in a different direction, 1052 00:43:34,740 --> 00:43:36,490 at least that person has felt that they've 1053 00:43:36,490 --> 00:43:41,250 had their due process and they haven't been short changed. 1054 00:43:41,250 --> 00:43:43,860 The next point voicing disagreements constructively, 1055 00:43:43,860 --> 00:43:46,320 directly, and explicitly is really important. 1056 00:43:46,320 --> 00:43:48,270 Because you're not all going to agree 1057 00:43:48,270 --> 00:43:50,930 except for certain groups in this particular exercise, where 1058 00:43:50,930 --> 00:43:52,380 you've all coalesced on a certain point. 1059 00:43:52,380 --> 00:43:53,815 But in your work environments, you 1060 00:43:53,815 --> 00:43:55,565 are going to have times when you disagree. 1061 00:43:55,565 --> 00:43:57,280 And learning how to do that productively. 1062 00:43:57,280 --> 00:43:59,510 So that you're focusing just on the disagreement 1063 00:43:59,510 --> 00:44:02,250 not on the person that you're having that disagreement with 1064 00:44:02,250 --> 00:44:05,880 will help you get to a solution more productively. 1065 00:44:05,880 --> 00:44:09,630 Lastly, give positive feedback directly and explicitly too. 1066 00:44:09,630 --> 00:44:12,150 So how many times a day do you say to a colleague, 1067 00:44:12,150 --> 00:44:13,712 that was a great job. 1068 00:44:13,712 --> 00:44:16,170 And then think of how many times you make critical comments 1069 00:44:16,170 --> 00:44:18,570 about a peer's or colleague's work or suggestions 1070 00:44:18,570 --> 00:44:19,840 for improvement. 1071 00:44:19,840 --> 00:44:22,590 Especially at MIT, we have a reputation 1072 00:44:22,590 --> 00:44:25,170 for being a praise free zone here. 1073 00:44:25,170 --> 00:44:28,170 Lots of criticism. 1074 00:44:28,170 --> 00:44:29,550 It's very important that you also 1075 00:44:29,550 --> 00:44:31,843 reinforce the positives in collaboration, 1076 00:44:31,843 --> 00:44:34,260 because that's going to foster the team being able to work 1077 00:44:34,260 --> 00:44:35,230 productively together. 1078 00:44:38,670 --> 00:44:40,360 Now in organizations, you're going 1079 00:44:40,360 --> 00:44:43,260 to find many entities are organized 1080 00:44:43,260 --> 00:44:44,930 in teams of various sorts. 1081 00:44:44,930 --> 00:44:46,800 And this diagram helps orient you 1082 00:44:46,800 --> 00:44:49,200 to some of the previous as well as current structures 1083 00:44:49,200 --> 00:44:54,000 that we find in a lot of the complex engineering system 1084 00:44:54,000 --> 00:44:56,520 kinds of industries. 1085 00:44:56,520 --> 00:45:00,320 Usually, the organization is broken down functionally. 1086 00:45:00,320 --> 00:45:01,890 There may be a design function, there 1087 00:45:01,890 --> 00:45:03,390 may be an operations function, there 1088 00:45:03,390 --> 00:45:05,580 may be a maintenance function. 1089 00:45:05,580 --> 00:45:07,980 Or it may be a structure function, a thermal function, 1090 00:45:07,980 --> 00:45:09,750 and so on. 1091 00:45:09,750 --> 00:45:13,028 And it used to be that groups worked independently, 1092 00:45:13,028 --> 00:45:14,820 and whenever you had yo collaborate somehow 1093 00:45:14,820 --> 00:45:16,860 between, say, function one and function two, 1094 00:45:16,860 --> 00:45:19,740 the interface took place between the top people. 1095 00:45:19,740 --> 00:45:21,330 But it was usually the folks down here 1096 00:45:21,330 --> 00:45:23,070 who were doing all the work and needed 1097 00:45:23,070 --> 00:45:24,397 the answers from these people. 1098 00:45:24,397 --> 00:45:26,730 But they had to work all the way up through their bosses 1099 00:45:26,730 --> 00:45:28,313 to communicate with that person's boss 1100 00:45:28,313 --> 00:45:30,170 to work all the way down through the chain. 1101 00:45:30,170 --> 00:45:33,180 So that's kind of the old style, the way organizations worked. 1102 00:45:33,180 --> 00:45:35,460 And then a couple decades ago, we 1103 00:45:35,460 --> 00:45:38,340 introduced the concept of integrated product and process 1104 00:45:38,340 --> 00:45:41,250 teams, which really took essentially the folks doing 1105 00:45:41,250 --> 00:45:44,070 the work down here and put them into a team 1106 00:45:44,070 --> 00:45:46,890 so the communication could happen directly between people 1107 00:45:46,890 --> 00:45:49,350 who were doing the tasks and not really up and down 1108 00:45:49,350 --> 00:45:50,820 a chain of communications. 1109 00:45:50,820 --> 00:45:53,130 There, it really didn't matter that this person knew 1110 00:45:53,130 --> 00:45:54,180 what the question was that they're 1111 00:45:54,180 --> 00:45:55,520 asking had to be passed along. 1112 00:45:55,520 --> 00:45:56,570 They're just relaying it. 1113 00:45:56,570 --> 00:45:58,950 It's much better if you can have direct interaction 1114 00:45:58,950 --> 00:46:00,372 between people. 1115 00:46:00,372 --> 00:46:02,080 So this kind of an organization structure 1116 00:46:02,080 --> 00:46:05,400 has helped increase the effective communications 1117 00:46:05,400 --> 00:46:08,190 and the ability for teams to work together 1118 00:46:08,190 --> 00:46:11,500 in these complex enterprises that we see today. 1119 00:46:11,500 --> 00:46:16,260 But being on an IPT or an IPPT, you're 1120 00:46:16,260 --> 00:46:19,530 now asking people who are in this part of the organization 1121 00:46:19,530 --> 00:46:23,700 to have teamwork and leadership skills that they might not 1122 00:46:23,700 --> 00:46:26,850 have needed to have in our old kind of organization 1123 00:46:26,850 --> 00:46:29,768 where the leadership was largely done at the top. 1124 00:46:29,768 --> 00:46:31,560 So this helps us understand why introducing 1125 00:46:31,560 --> 00:46:33,623 the concepts of teamwork and leadership 1126 00:46:33,623 --> 00:46:35,040 and developing skills around those 1127 00:46:35,040 --> 00:46:37,410 is really important to do really from day one. 1128 00:46:37,410 --> 00:46:39,030 When you join an organization and not 1129 00:46:39,030 --> 00:46:43,400 waiting until you get to be at the top of that org chart. 1130 00:46:43,400 --> 00:46:46,317 Now teams progress through a number of different stages. 1131 00:46:46,317 --> 00:46:48,150 And there is a lot of literature about this, 1132 00:46:48,150 --> 00:46:50,490 but in essence when you first start out with a team 1133 00:46:50,490 --> 00:46:52,865 there's a lot of challenges we just discussed and working 1134 00:46:52,865 --> 00:46:53,460 together. 1135 00:46:53,460 --> 00:46:55,470 And teams take a little while to grow 1136 00:46:55,470 --> 00:46:57,180 from beginning teams to what we'd really 1137 00:46:57,180 --> 00:46:58,950 call high performance ones. 1138 00:46:58,950 --> 00:47:01,050 And the degree of management necessary for those 1139 00:47:01,050 --> 00:47:03,630 decreases over time as we get towards a more high performing 1140 00:47:03,630 --> 00:47:04,293 team. 1141 00:47:04,293 --> 00:47:06,210 And their empowerment and ability to do things 1142 00:47:06,210 --> 00:47:07,540 increases as well. 1143 00:47:07,540 --> 00:47:09,480 We find that when we look at high performing 1144 00:47:09,480 --> 00:47:11,520 teams in a Lean environment, they have 1145 00:47:11,520 --> 00:47:12,860 these attributes about them. 1146 00:47:12,860 --> 00:47:14,970 And we've mentioned most of them so far. 1147 00:47:14,970 --> 00:47:18,660 They have mutual respect for all people and all jobs. 1148 00:47:18,660 --> 00:47:21,100 They encourage contribution by all the team members. 1149 00:47:21,100 --> 00:47:24,660 We heard Claudio talk about that in our tour today. 1150 00:47:24,660 --> 00:47:26,730 Different opinions are not only valued 1151 00:47:26,730 --> 00:47:29,010 but they're sought after and brought out. 1152 00:47:29,010 --> 00:47:32,250 There is open and honest communication and feedback. 1153 00:47:32,250 --> 00:47:35,340 The goals of the team are aligned. 1154 00:47:35,340 --> 00:47:38,400 There is continuous improvement of both the individuals 1155 00:47:38,400 --> 00:47:39,540 and the team. 1156 00:47:39,540 --> 00:47:41,730 Always seeking to do a better job. 1157 00:47:41,730 --> 00:47:44,040 And there is a high degree of synergy and cooperation 1158 00:47:44,040 --> 00:47:45,618 among the members. 1159 00:47:45,618 --> 00:47:47,160 So if you're striving to put together 1160 00:47:47,160 --> 00:47:48,743 a team that is high performing, you're 1161 00:47:48,743 --> 00:47:52,442 really trying to work on these seven particular attributes 1162 00:47:52,442 --> 00:47:54,150 and try and increase those for your team. 1163 00:47:56,670 --> 00:48:00,300 So lastly we'll just conclude with our chart here. 1164 00:48:00,300 --> 00:48:03,210 People are the heart of Lean. 1165 00:48:03,210 --> 00:48:04,620 With our shared goals, our shared 1166 00:48:04,620 --> 00:48:07,560 knowledge, mutual respect, communication, teamwork, 1167 00:48:07,560 --> 00:48:08,190 and leadership. 1168 00:48:08,190 --> 00:48:13,208 All the hallmarks of a high performing Lean team. 1169 00:48:13,208 --> 00:48:15,000 And by way of summary from what you've just 1170 00:48:15,000 --> 00:48:17,280 heard over the past module on people, 1171 00:48:17,280 --> 00:48:20,730 I'd like you to take out one of your white index cards 1172 00:48:20,730 --> 00:48:23,850 and take out a pen and write down 1173 00:48:23,850 --> 00:48:26,160 for us what's the most important thing you learned 1174 00:48:26,160 --> 00:48:29,730 from this module on people. 1175 00:48:29,730 --> 00:48:32,070 And on your way out to the break, 1176 00:48:32,070 --> 00:48:35,930 you can drop that on the back desk so we can take a look.