A3...

John Shook
What Makes an A3 a Good One?

2
 Lean Tools and Lean Learning
The tools bring obvious “mechanical” or tangible
benefits.

They are also frameworks to

• develop people
• make it:
– easy to see problems
– easy to improve
– easy to learn from
Questions
1.What is the purpose of the A3 thinking way and
tool you have been learning?

2. What would be some benefits to using it?

3. What are some challenges or barriers to using it?

4. How does your organization define what

problems to work on?

5. Is there a management system in place in your

company to nurture this A3 thinking way?

4
The A3 Mgmt Process THE PROCESS & THINKING
THE TOOL • Makes it easier for you
• A3 is just a paper size – To engage others
• Began in the 60’s as the – To understand others
Quality Circle problem • Fosters dialogue within the
solving format organization
• Tells a story, laid out from • Forces “5S” for information
upper left-hand side to • Leverages PDCA
lower right, which anyone • Clarifies the link between true
can understand problems & countermeasures
• All on one sheet of paper • Encourages front-line initiative
• Develops thinking problem
solvers
5
 Title: What are you talking about?

Full-Size 6
 Porter’s First A3 – Jump to a Solution

Full-Size
The A3 as Coaching and Mentoring Process
Porter’s Second Attempt

9
 Individual Initiative AND
Organizational Alignment!!

Initiative - Dialogue - Alignment - Authorization

 The A3 for Organizational and Personal
Development

Passionate
Advocate
Dispassionate
Investigator
Fixer

13
 Porter’s Journey

FIXER Let go of certainty and the need to

be “right”
INVESTIGATOR Be the dispassionate investigator

ADVOCATE Be the passionate advocate

14
Lean Thinking

• Principle of “Just Enough”

• Practice of Questioning and Experimenting
Three Common Problems in Problem Solving
1. Assuming you know what the problem is without
seeing what is actually happening.

2. Assuming you know how to fix a problem without

finding out what is causing it.

3. Assuming you know what is causing the problem

without confirming it.

In other words - Not Grasping the Situation.

(And where do we grasp the situation? At the gemba!)
The Problem with Problem Solving

Our Natural Human Tendency

PERCEPTION “BLACK HOLE” SOLUTION

OF A PROBLEM facts
facts The

facts
SOLUTION
facts
FACTS Theory
17
How We Can Solve Problems More Effectively?
Ask Questions to Help Ourselves SEE:
• What is actually happening?
• What do I actually know?

facts

The Real Problem SOLUTION

The
SOLUTION

Theory 18
Thinking, Fast and Slow
-Daniel Kahneman
Major Theme: Our brains are conceptually divided into
two systems (not functionally, not physically)
• System 1 - FAST • System 2 - SLOW
– Emotions & intuition – Rationalizes
– Instant and automatic
– Requires concentration
– WYSIATI
– Checks and over-rides
– Jumps to conclusions
System-1
– Doesn’t look for missing
information – Lazy

17x24=?
 System#1 Bias example
The following questions were asked of German
college students
• Group#1 • Group#2
– How happy are you these – How many dates did you
days? have last month?
– How many dates did you – How happy are you these
have last month? days?
Responses?
Zero correlation Highly correlated
WYSIATI
 Questioning Mind
• What do you actually know?

How do you know it?

• What do you need to know?

How can you learn it?
• Lean is not acting on assumptions
or jumping to conclusions.
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 Go See…and Listen
“Data is of course important, but I
place greater emphasis on facts.”
-Taiichi Ohno
And where do you find the FACTS of a situation?
At the Gemba – the place where the problem is
actually happening. Not in a conference room or
at a desk.
Grasp the actual condition firsthand
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 How to WHAT How to
improve is our
develop
the work? PURPOSE?
the people?
What situational problem
do we need to address?
WhatWhat
leader
leadership
behavior and
behavior and
management
management
system?
system do
we need?

What is our BASIC THINKING??

 Define Your Purpose
Improve the Work, Develop the People
• Get each person to take
responsibility to solve
problems and improve his
or her job
• Ensure that each persons’
job is aligned to provide
value for the customer and
prosperity for the company

Begin with yourself!

24
 Leadership
Styles

25
 Leader as Coach…
• Many types of coaches or styles of coaching:
– Sports
– Executive or business
– Life
– Instructional
– Tweeting
– Other…
“Can I be a Master Teacher like Coach
Wooden or Ohno Sensei?”

EXPERT OPEN
COACHING
ZONE

DIRECTIVE
INSTRUCTION
ZONE

SIMPLE COMPLEX

NOVICE
EXPERT
OPEN
COACHING
ZONE

DIRECTIVE
INSTRUCTION
ZONE
NOVICE
SIMPLE COMPLEX
GTcS – Grasp the
Coaching Situation
— ASSESSMENT of LEARNER —

EXPERT

SIMPLE COMPLEX
NOVICE
— ASSESSMENT of CHALLENGE or PROBLEM SITUATION —
 GTcS – Grasp The
Coaching Situation

EXPERT
Assessment of learner’s skill

– COUNSELING -
— ASSESSMENT of
LEARNER —

- INSTRUCTING—
SIMPLE COMPLEX
NOVICE
— ASSESSMENT of CHALLENGE or PROBLEM SITUATION —
Requires deep problem-solving skills
GTcS – Grasp The
Coaching Situation

– COUNSELING -
EXPERT
— ASSESSMENT of LEARNER —
openness to being coached …by YOU
Assessment of learner’s skill and

- INSTRUCTING—
INSTRUCTING
SIMPLE COMPLEX
NOVICE
— ASSESSMENT of CHALLENGE or PROBLEM SITUATION —
-Requires deep knowledge, deep problem-solving skills-
 Developing Skills To
Become a Master Lean Teacher
EXPERT

– COUNSELING -
— ASSESSMENT of LEARNER —
Requires assessment of learner’s skill and
openness to being coached …by YOU

OPEN
COACHING

- INSTRUCTING—
ZONE

INSTRUCTING
DIRECTIVE
INSTRUCTION
ZONE
NOVICE
SIMPLE COMPLEX
— ASSESSMENT of CHALLENGE or PROBLEM SITUATION —
Requires deep problem-solving skills and often
deep knowledge of the subject matter
Worksheet:
plot yourself and a coaching situation

– COUNSELING -
EXPERT
— ASSESSMENT of LEARNER —
Requires assessment of learner’s skill

- INSTRUCTING—
INSTRUCTING
NOVICE

SIMPLE COMPLEX
— ASSESSMENT of CHALLENGE or PROBLEM SITUATION —
Requires deep problem-solving skills
and often deep knowledge of the subject matter
X = the need of the situation (assess learner and problem)
O = your response (assess yourself)
 In Many Companies
1. Top Down only
3. People development not deeply considered
4. Especially, fundamental problem solving skill does not exist
5. Different executives generate conflicting or
confusing priorities (lack of alignment)
6 . Targets (usually financial KPI) mainly drive the objectives
Key Questions to Consider:
1) How do strategic initiatives get started in an
organization?
2) What is important for an initiative to succeed?
3) How do those initiatives get broken down to
concrete actions?

35
You are Need to be
Here GAP Here

AP
CD
Target
AP Condition
CD
BARRIER
AP
CD
CONSTRAINT Remove
AP
CD
CAUSE Overcome
Current
36 Eliminate
Condition
 Individual Initiative AND
Organizational Alignment!!

Initiative - Dialogue - Alignment - Authorization

 Line of Sight Society
What is the ultimate goal of each Economy
person’s work? Company
– Understand what makes each job Group
“value creating” for the customer
and company—how does it relate
to the company’s goals and key Self
performance indicators
(Quality, Safety, Productivity and
Cost)?

Individual Guiding
Purpose Company’s Mission
Responsibilities Objectives

® Copyright 2009 Lean Enterprise Institute, Inc. All rights reserved. 38

 A3 & Hoshin relationship
• Hoshin, a strategic framework for managing an organization, and
the A3 process are highly interdependent concepts

• The purpose is to have

Adjust Plan Objectives PDCA occurring at all
Check Do
levels.

Adjust Plan

Check Do

Adj Pla
ust n

39 Ch
eck
Do
Building Skills for Problem-Solving and Innovation
Reactive – Root Cause – Targeted – Emergent

leap! Emergent

Targeted

Root Cause

Reactive

CAREFUL HERE! FOUNDATION HERE

Thinking Historically Future Thinking

Backward-looking Forward-looking
40
Building Skills for Problem-Solving and Innovation
Reactive – Root Cause – Proactive – Emergent
leap!
Emergent
Innovation,
Proactive exploratory
discovery, “nigh
Skill and mindset science” (trying to
Root Cause established for invent one, inventing
continuous something
Not much improvement and unexpected),
Reactive innovation here innovation, “10,000 ways that
don’t work” (which
Only random can also occur at
innovation Levels 2-3)

GO HERE
CAREFUL HERE! FOUNDATION HERE WITH
CAUTION
Thinking Historically Future Thinking
Backward-looking Forward-looking
Building Skills for Problem-Solving and Innovation
Reactive – Root Cause – Targeted – Emergent
leap!
Emergent
Problem-solving/
Targeted continuous
innovation that
Forward-looking recognizes each
Root Cause problem-solving or new condition as
continuous ripe with new
Problem-solving improvement/innova problems/challenges
Reactive that is focused on tion that identifies that suggest new
eliminating the and removes countermeasures/so
Responding to cause(s) through barriers through lutions; open-ended
problems as they inductive root deductive analysis problem-solving that
occur. Structured cause analysis (5 and experimentation moves proximally
learning or knee- whys). (quick PDCA cycles) toward an ideal
GO HERE
jerk firefighting? to achieve targeted condition.
CAREFUL HERE! FOUNDATIONconditions.
HERE WITH
CAUTION
Thinking Historically Future Thinking
Backward-looking Forward-looking
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Capability Development Through Collaborative Problem Solving

No Problem is
a Problem!

NEXT
TARGETED
CONDITION

GtS
A P
GtS C D
TARGETED
A P
GtS C D CONDITION
A P Tools
C D
Tools

Tools
CURRENT
CONDITION
PDCA
t
LEARNING CYCLES
• It is an Organizational and
• A Personal Transformation.
Three Common Problems in Getting Proposals
Approved and Objectives Achieved
1. Assuming that once you think you have the “best solution,”
 Everyone will agree, and
 Therefore – problem solved, job done.

2. Thinking that defining the solution well is a “plan.”

3. Assuming that, once you’ve got a plan, everything will go according to that
plan.
 Throwing the plan out the window when things go wrong.
 Trying to stick to the plan no matter what.

In other words - Not completing the PDCA cycle.
What Does it Take to Actually
Resolve a Problem?
• The real problem solving begins rather than ends with
implementation of the plan.

• You usually have to solve a lot of problems to actually* solve a

problem.

• That’s where the “continuous” part comes in.

* Actually means you see what you did made a
difference (moved the needle) in the way you
intended.
Enterprise System as Science

as something to improve, just like an individual job

Macro enterprise system level

Value stream level

Factory level

Micro level of each individual job

Lean vs Traditional Leadership
RESPONSIBILITY-BASED AUTHORITY-BASED
Focus: Focus:
Make the Right Decision The Right to Make the Decision
Lean Leaders Do Two Things
• Get each person to take
responsibility to solve
problems and improve his
or her job
• Ensure that each persons’
job is aligned to provide
value for the customer and
prosperity for the company
Get the work done and Develop Your People
- at the SAME TIME!
49
Lean Thinking & Practice

Embracing the challenge of systematically

develop people and continuously improving
processes to provide value and prosperity
while consuming the fewest possible
resources.
What Makes an A3 a Good One?

51
What Makes an A3 a Good One?

– It contains objective facts, data…

– It tells a story…
– It “resolves” a problem…

52
 What Makes an A3 a Good One?

– It tells a story
– It contains objective facts, data
– It “resolves” a problem
But being technically “right”
” is only half the battle…
–It engages and aligns the organization

53
 What Makes an A3 a Good One?
– It tells a story
– It contains objective facts, data
– It “resolves” a problem
But being technically “right” ” is only half the battle…
– Engages and aligns the organization
What really makes an A3 a “great one” isn’t the specific
collection of facts and data that tell a perfect problem-
solve. A good A3 is a reflection of the dialogue that
created it.
54
Leading as if you have no power…
Get the work done (design-build-ship-sell)
while developing people at the same time

55
Problem-Solving = Capability Development =
Respect for People
Solving Problems at the Gemba
HERE! NOT HERE

GEMBA

Data Analysis Room

TOOLS

DEFECT!!

56
 Please refer to Porter’
’s
Second A3:
Page 34 in your book & printed 8.5”x11” in
the handout deck

57
 1. How
4.
2.
3. Whatis
does
did
pitfalls
Porter’s
Porter
heinneednd to and
problem
2learn do
next?didthinking
how
solving
attempt better
he learn
problem
does
it?
Porter avoid
solving than this st
his 1time?
attempt?

58
Full-Size
 A Good Problem Statement
Is NOT IS
▲ The simple reverse of your  A problem in performance.
proposed solution. “The bearing wears out too
“No one oils the machine”. frequently.”
”
 Stated as concretely in measurable
▲ A lack of something, such as lack performance terms as possible.
of a specific countermeasure. “50% of the time bearings do not
“There is no standard work in last through the standard of 300
place.” hours.””
 Goal/Target
Important Factors for setting the Goal/Target
• How much
• By When
• Action words – Reduce, Increase, Eliminate
• Keep in mind what portion of the Target/Goal you are trying to
reduce with the smaller problem selection.

Avoid words like – Create, Implement, Develop
Is your goal clear and
measureable?
 Targets, Objectives

NO YES
▲ The simple restating of your proposed  Addresses a problem in performance.
solution. “Will prevent the bearing from
“Workers will oil the machine every wearing out too frequently.””
day”.  Stated as concretely in measurable
performance terms as possible.
▲ A simple statement of a tool or “Bearing will perform as required
countermeasure. through the standard of 300 hours
“Implement standard work.” 100% of cases.
Current 50%
Goal 100%”
”

61
 Helpful Coaching
Less Helpful More Helpful
▲ Is that really the problem you need to  Exactly what’s the problem are you
solve? trying to solve?
▲ Why do you think that’s a problem?  Can you describe what’s happening
vs. what should be?
▲ Why don’t you look at _____?  What have you looked at or heard?
▲ How is that your root cause?  What makes you sure you’ve got a
cause/effect link?
▲ Have you thought about trying ____?  What have you thought of trying?
▲ Are you sure that’s going to work?  What impact do you expect that CM
to have?
Title/Theme: What Changes or Improvement Are You Talking about?
Background: What are you talking about & why? Recommendations: What do you propose & why?
Purpose: What is the business reason for choosing this issue? What are the options for addressing the gaps & improving performance
Overall Situation: What is the strategic, operational, historical or in situation?
organizational context of the situation? How do they compare in effectiveness, feasibility & potential impact?
What are their relative costs and benefits?
Which do you recommend and why?
Current Situation: Where do things stand now? Show how your proposed actions will address the causes of the gaps or
What is the Problem or Need- the Gap in Performance? constraints in the situation.

What is happening now versus What Needs to be happening or What

you want to be happening?
Plan: Specifically how will you implement?
What are the specific conditions that indicate you have a problem or
need, where and how much? What will be main actions & outcomes in the implementation process &
Show the facts visually with charts, graphs, maps in what sequence?
Goal: What specific outcome is required? What support & resources will be required?
What is the specific improvement in performance you need to close Who will be responsible for what, when & how much?
the gap?
When will progress & impact be reviewed & by whom?
Show how much, by when, with what impact visually.
Use a Gantt chart to display actions, steps, outcomes, timelines & roles.
Analysis: Why does the problem or need exist?
What do the specifics of the issues in related work processes Follow–up: How will you assure ongoing PDCA?
(location, patterns, trends, factors) indicate about why the When and how you will know if plans have been followed & the actions
performance gap or need exists?
have had the impact needed?
What conditions or occurrences are preventing you from achieving
the goals? What related issues or unintended consequences do you anticipated
& what are your contingencies?
Use the simplest problem analysis tool that will suffice to show
cause-effect down to root cause. From 5 Whys, to 7 QC tools (fish- What processes will you use to enable, assure & sustain success?
bones, analysis trees, Pareto charts) to sophisticated SPC or other
tools as needed. Full-Size
 The Leadership continuum

A3 Leadership
Follow me and
we’ll figure this
out together

Dictator Empowerment
Leadership Leadership
Do it my
way Do it your
way

Let’s look at what is meant by each of these 64

The “Dictator”: What happens when
we tell people what to do?
We will hold the world
ransom for one MILLION
dollars!

1. We deprive them of the opportunity to think.

2. You take the responsibility away.

65

3. They might do it (and you might be wrong!).

The “Empowerer”: What happens when we
provide results targets and get out of the way?

1. Sub-optimization
2. Waste resources (positive harm)
3. Short-term benefits if any
4. Loss of direction and control
66
The A3 style and achieving organizational goals

• I will help you find the way

• But you are still going to have to do the work
67
Follow me and we will figure this out together
 The Leadership continuum

A3 Leadership
Follow me and
we’ll figure this
out together

Dictator Empowerment
Leadership Leadership
Do it my
way Do it your
way

Let’s look at what is meant by each of these 68

The “Dictator”: What happens when
we tell people what to do?
We will hold the world
ransom for one MILLION
dollars!

1. We deprive them of the opportunity to think.

2. You take the responsibility away.

3. They might do it (and you might be wrong!). 69

 The Leader’s challenge
• Too specific
– Dictator
– No ownership

• Too vague
– Empowerment
– No direction
70
The Lean Leader’s Challenge

• Make assignments clear enough that the

subordinate can approach the task with confidence.
• Yet, open enough that responsibility is not taken
away.
• So the subordinate has clear responsibility to
propose solutions with a sense of entrepreneurial
ownership.

Clear direction with clear ownership

71
Lean Management
Control with Flexibility

• This way of managing provides extraordinary

focus, direction, “control.”

• While at the same time providing maximum

flexibility.

• This way of working can resolve the age-old

dilemma that encumbers all large 72

organizations: control vs. flexibility.

Lean Management
Responsibility ≠ Authority

• Not “bottom-up” or “top-down”.

• Processes well-defined and responsibility clear.

• From debate about “authority” (rights) to dialogue

around “doing what’s right”

73
74
Three Common Problems in Getting Proposals Approved
and Objectives Achieved

1. Assuming that once you think you have the “best solution,”
 Everyone will agree, and
 Therefore – problem solved, job done.
2. Thinking that defining the solution well is a “plan.”

3. Assuming that, once you’ve got a plan, everything will go

according to that plan.
 Throwing the plan out the window when
75
things go wrong.
You are Need to be
Here GAP Here

AP
CD
Target
AP
CD
Condition
BARRIER
AP
CD
CONSTRAINT Remove
AP
CD
CAUSE Overcome
Current
76 Eliminate
Condition
77
What Does it Take to Actually
Resolve a Problem?
• The real problem solving begins rather than ends
with implementation of the plan.

• You usually have to solve a lot of problems to

actually* solve a problem.

That’s where
*• Actually means “continuous
theyou part did
see what” you comes in. a
made
difference (moved the needle) in the way you
78
intended.
 The A3 Tool as a Process for…

• Problem Solving
• Proposing Improvements
•
•
Standardizing
Planning
All
•
•
Reporting
Reflection
based
• Project Management on
• Change Management
• Alignment and Agreement PDCA
• Organizational Development
79
• Mentoring, coaching
• Developing people
 Tool vs. Process

• Think of the A3 as less of a tool

• And more of a process that:
– Gains alignment & agreement within the organization
– Develops thinking & effective problem solvers while
getting the work done
– And solves problems

80
 81
Full-Size
82
83
Lean Transformation Aligning
People – Process – Purpose
Lean Transformation
Aligning:

•Purpose
•Process
•People

to create value
 Lean Transformation
Enterprise transformation is the process of an
organization shifting its “business” model to a
desired future state. A lean transformation
requires learning a new way of thinking and
acting, characterized not by implementing a
series of steps or solutions but addressing key
questions of purpose, process and people.
 Lean Transformation
FIVE DIMENSIONS Model
SITUATIONAL APPROACH
- Value-
Value-Driven Purpose -
“WHAT PROBLEM ARE WE TRYING TO SOLVE?”
Responsible
PROCESS Leadership CAPABILITY
IMPROVEMENT DEVELOPMENT

Continuous, Sustainable
real, practical improvement
changes to capability
improve the way in all people
the work is done at all levels

Basic Thinking, Mindset, Assumptions

MANAGEMENT
SYSTEM
That drive this transformation
Transformation Questions
1. What is our purpose or what problem are we trying
to solve, what value to create?
2. How do we improve the actual work?
3. How do we develop the people?
4. What role must leadership take and how does the
management system support the new way of
working?
5. What basic thinking or assumptions
underlie this
transformation?
 Lean Transformation
-- Why a house?
Aligning:

•Purpose
•Process
•People

to create value
 WHAT
How to is our How to
improve PURPOSE? develop
the work? the people?
What situational problem
do we need to address?
What
leadership
behavior and
management
system do
we need?

What is our BASIC THINKING??

 The Toyota
HousesProduction
of LeanSystem
Best Quality - Lowest Cost - Shortest Lead Time
Through Shortening the Production Flow By Eliminating Waste

Just in Time Jidoka

“The right part
“Built--in Quality”
“Built
at the right time
in the right amount”

Production Lines
HEIJUNKA That Stop for
Abnormalities
Stability and Kaizen
 The Toyota Way
Houses of Lean
Customer First

Continuous RESPECT
Improvement For
PEOPLE

Challenge – Kaizen – Genchi Genbutsu

Respect - Teamwork
 LeanHouses
Transformation Model
of Lean
SITUATIONAL APPROACH
- Value-
Value-Driven Purpose -
“WHAT PROBLEM ARE WE TRYING TO SOLVE?”
Responsible
PROCESS Leadership CAPABILITY
IMPROVEMENT DEVELOPMENT

Continuous, Sustainable
real, practical improvement
changes to capability
improve the way in all people
the work is done at all levels

Basic Thinking, Mindset, Assumptions

MANAGEMENT
SYSTEM
That drive this transformation
Lean Transformation Fundamentals
• Basic Approach: PDCA – The Art and Craft of Science
• Specific Approach in Each Case: Situational, Determined by Asking
– “What problem are we trying to solve?”
• TWO Pillars: Process Improvement and Capability Development
– Process Improvement
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