K C Gauldine interviewed Mike Hoseus, Lean expert, author, and international speaker. Executive Director for the Center for Quality People & Organizations and President of Lean culture Enterprise, Hoseus is on the faculty of the University of Kentucky’s Lean Manufacturing Program and the Lean Enterprise Institute, and founded the annual Lean HR Summit.
Gauldine:
Mike, at the Lean HR Summit in Florida this May, you made the following statement: “The question is not ‘What is Lean’s role in HR?’ but ‘What is HR’s role in Lean?’ What is the difference in how we ask the question?
Hoseus:
Asking what Lean’s role is in HR is all about the tools rather than transforming an organization. Asking what HR’s role in Lean is all about the people and how to link people to the business strategy. This is what led to my co-authoring the book Toyota Culture: the Heart and Soul of the Toyota Way. Business doesn’t always get that Lean is all about the people, and HR often doesn’t understand that its role in a Lean organization is selecting, developing and motivating people. Lean HR means going beyond the tools to align the entire organization to build trust, mutual prosperity and excellence.
Gauldine:
I have heard that transforming an organization into a Lean organization means HR needs to be restructured.
Hoseus:
Purpose, Process, People and Problem Solving – I learned first-hand while leading Toyota’s human resources for 13 years that success hinges on integrating these four elements for building and keeping quality people.
In building an innovative culture of continuous improvement, HR needs to align with four roles:
1. Strategy and Values — leading the purpose of the organization
2. Business Partner — establishing clear roles and responsibilities
3. Team Member Advocate — a top-down and bottom-up planning process
4. Administrative Expert — arbitrators of fair and consistent processes
Gauldine:
So, despite the many rumors to the contrary, process improvement isn’t synonymous with “headcount reduction”?
Hoseus:
(Laughter) The big joke around L.E.A.N. is that it stands for “less employees are needed”. True North means that we respect our people, focus on long term prosperity of all Stakeholders, and are committed to NOT laying off people. This is a foundational principle of building a culture of trust and respect.
Gauldine:
A people-centric culture focuses on finding the right employees, initiating them into the culture from the start, developing the right key performance indicators at every level of your organization, training your people to be problem solvers and continuous improvement stewards, developing leaders who live and teach your company’s philosophy, and rewarding top performance while offering help to those who are struggling.
Focus on your People and their capacity to deliver world-class Service and you get Profit.
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K C Gauldine is an accomplished leader with thirty years of C-level experience in business, social enterprise, entrepreneurial and nonprofit enterprises.