These methods require strong and empowering leadership to lay out the market constraints, make clear the threats from the changing environment and the opportunities that may arise, and provide the amnesty to take a risk to put ideas and observations on the table.
When, in the 1950’s, Taiichi Ohno led a delegation to visit Ford to learn how to build automobiles, he was dismayed by the inventory, the huge warehouses and sprawling production facilities, the staggeringly large workforces. Toyota had nothing like those resources to emulate that system. They lacked the capital for all that inventory and they lacked the space for those sprawling production facilities. They needed a much leaner system, and so they invented one – because they had to!
Another company observed that when their very survival was at risk, they began to implement a program of Continuous Improvement that called on everyone to contribute innovative implementable ideas. Because they had to develop new and better ways of operating, they did!
Similarly, a start-up company with few resources must innovate or quickly wither away. And it must be less scary to try something new and risk failure than it is to stay with the status quo. To create this condition, you must provide amnesty to reduce the risk of sharing new ideas; but it also helps if the status quo looks pretty untenable.
Outside the Box Thinking
Outsiders often come up with the best innovations, because they have no ties to the status quo. But outsiders often have a difficult time effecting real change because they are outsiders. A senior manager of a once innovative company wryly observed, “We say we like to bring in outsiders with fresh ideas, but when they share them we explain that’s not the way we do it here.”
To foster process innovation we must summon the courage to acknowledge the deep areas of waste that are part of our standard work. We all have this: inspection or rework or moving or waiting that is so intrinsically a part of the way we work that we cannot envision the work without it.
Because we cannot immediately think of any possible alternatives, we look the other way and thus we cannot innovate.
Summon the courage to put that waste on the table, calling it what it is. We have seen remarkable feats of innovation inspired by this simple act — recognizing waste for what it is. Go ahead and imagine the process without the steps that add no real value — that just compensate for a flaw somewhere in the process — and then take the time to search for ways to get to that vision.