<\/div>\n\n\n\n
The leadership team felt that lean management, with its focus on the behavior of leaders, would be both that differentiator and a way to align everyone in the company toward achieving the vision. For example, Cooper notes that lean leaders are problem-solvers; they don\u2019t react with knee-jerk responses that ultimately fail to resolve issues. Instead, they work with their teams to identify and solve the root cause of problems, so they\u2019re not solving the same problems repeatedly. Adopting those and other lean behaviors and creating a structure that supported them \u201cwas something we felt would be that differentiator,\u201d
Turner’s Lean Journey<\/strong><\/p>\n\n\n\n
As critical, the leaders realized that it was their job to help their staff understand how their work processes \u2014 and improvements \u2014 would help the company achieve its strategic objectives. \u201cWe talked about motivation, about making sure that people at the point closest to the work are connected with strategic planning,\u201d Cooper explains. \u201cSo, when we began our journey with LEI, we wanted to begin building commitment around lean practices. We didn\u2019t want to be just a construction company that was trying to be lean; we wanted to be a lean enterprise that also did construction.\u201d <\/p>\n\n\n\n
Laying the Groundwork for Change<\/strong><\/h4>\n\n\n\nAt the New York business unit (NYBU), leadership realized that the change must start with them, reasoning that if the leaders didn\u2019t follow \u2014 and model \u2014 the new processes, they couldn\u2019t expect their staff to adopt them. So, for the first step, the leadership team worked to build their A3 problem-solving capability with the help of LEI coaching and executive workshops. Then, the leaders at each level cascaded the training through each level of the organization to the frontline staff. Additionally, as they developed A3 problem-solving capability throughout the ranks, they encouraged everyone to take the time to solve problems in their work processes. <\/p>\n\n\n\n
\nWe didn\u2019t want to be just a construction company that was trying to be lean; we wanted to be a lean enterprise that also did construction.<\/p>\n\u2014 Doug Cooper <\/cite><\/blockquote>\n\n\n\nDuring fast-paced construction projects, strict timelines leave little room for identifying and solving the root cause(s) of problems \u2014 and missed deadlines often come with negative consequences. \u201cWe wanted to let them know that they could take that pause and honor that structure to be able to do A3 problem-solving, to use lean thinking in addressing problems and in a fact-based structure,\u201d Cooper explains. He adds that the leadership team felt that team commitment to lean thinking and practices and contributing to corporate objectives would grow as they became more engaged in improving their work.<\/p>\n\n\n\n
Once momentum for problem-solving was underway, NYBU leaders directed their attention to strategic planning and, unexpectedly, solving a problem of their own. To determine its current state, the company leaders had gathered the unit\u2019s five general managers together and asked them to write down the strategic priorities for the business unit for the previous year. The seemingly straightforward exercise delivered a gut punch: each leader had a different vision in mind and, presumably, were diligently working toward it, which exposed that, like many companies, strategy execution was a sticking point. More specifically, Cooper notes, we realized: \u201chow can we expect our line staff to be aligned with strategic priorities of the company if the senior leadership with a business unit of the company is not aligned?\u201d<\/p>\n\n\n\n
That insight caused the business unit leaders to conclude that \u201cfor our future state, we wanted to create clear alignment in communications of the strategic plan and vision from the president and CEO of the company to our line staff,\u201d Cooper recalls. \u201cAnd we would measure that [by whether] a priority issued by the CEO or the executive committee made it through the leadership.\u201d He adds that the true measure of success would be whether a plumber, carpenter, or electrician on a job site could demonstrate through their work that they knew of the company objectives and how they were expected to contribute.<\/p>\n\n\n\n
At the same time, Cooper added, business unit leaders wanted to continue empowering the people closest to the work to have the capability to identify and solve problems. <\/p>\n\n\n\n
Combining Hoshin Kanri and A3 Management<\/strong><\/h4>\n\n\n\n
Combining A3 problem-solving with hoshin kanri helps individuals at each level of the organization \u2014 corporate, departmental, work team, and individual \u2014 improve their capability to identify and solve problems based on organizational priorities established through hoshin kanri. Additionally, the A3 management process supports staff alignment to achieve objectives through consistent communication between leaders and staff at every level of the organization.<\/figcaption><\/figure><\/div>\n\n\nCreating the Management System<\/strong><\/h4>\n\n\n\nThe New York leaders decided to adopt hoshin kanri as its approach to strategy deployment and work to \u201cstitch that together\u201d with the problem-solving practices into a management system. <\/p>\n\n\n\n
So, with its first hoshin, Turner New York sought \u201cto create a structure that would allow us to honor our strategic priorities, which at the time was to create the right [work] environment,\u201d Cooper explains. \u201cWe wanted to make sure we had the full engagement with all of our employees, all of our team members, all of our trade partners. We wanted to continue to create that lean culture that exhibited the behaviors that we were looking for \u2014 continuous improvement, problem-solving, and respect for each other and people we come in contact with \u2014 and that we work every day to take that closest to where the work is being done.\u201d <\/p>\n\n\n\n
\nWe wanted to continue to create that lean culture that exhibited the behaviors that we were looking for \u2014 continuous improvement, problem-solving, and respect for each other and people we come in contact with \u2014 and that we work every day to take that closest to where the work is being done.<\/p>\n\u2014 Doug Cooper<\/cite><\/blockquote>\n\n\n\nTurner\u2019s NYBU leaders translated the broad corporate-level goal of \u201cCreating the Right Environment\u201d into a business-unit goal to achieve rigorous alignment in the communication of the strategic plan and vision from the company president and CEO to their frontline staff. <\/p>\n\n\n\n
Cooper explains that Turner\u2019s executive leadership hoshin (strategic plan) sets \u201cbroad and aspirational\u201d enterprise goals. Then, leaders at each level \u2014 senior vice presidents, general managers, and department heads \u2014 create hoshin plans specific to their area of responsibility, including objectives and specific activities, that help the company achieve its company-wide objectives.<\/p>\n\n\n\n
\u201cIt\u2019s like a funnel,\u201d Cooper says. \u201cYou\u2019re taking those broad-based strategic priorities, and the idea is to [at each level of the organization] attach some objectives, activities, targets, and measures that could be implemented to move the ball toward achieving that goal.\u201d With this approach, Turner creates a continuum where frontline tactical objectives support corporate-level strategic ones. Also, the four types of problems are addressed appropriately, handled by those closest to the customers impacted by the issue, with support from others as needed.<\/p>\n\n\n\n
\u201cThrough that funnel, we\u2019re getting to very finite points \u2014 a very narrow and deep consideration of singular problems that can be solved at the job site, the final level, through the use of A3 thinking and problem-solving,\u201d Cooper explains. <\/p>\n\n\n\n
Understanding the Importance of Alignment and Transparency<\/strong><\/h4>\n\n\n\nAt first glance, Turner\u2019s management structure may not seem much different from traditional management, but it is. Though Turner\u2019s organizational chart appears to be a conventional hierarchy, the company\u2019s leadership practices are fundamentally different. Significantly, management decisions and communications flow not only top-down; they flow top-down and bottom-up. Leaders do not simply send a list of objectives to their direct reports. Instead, each level closely collaborates with the manager they report to and their direct reports to agree on priorities and targets, creating transparency and alignment. <\/p>\n\n\n\n
Significantly, with hoshin kanri, \u201ccommunications\u201d means more than just the traditional approaches: the annual company-wide meeting presentations, newsletters, and the like. Instead, hoshin communication incorporates specific frequent leadership practices that consistently reinforce a focus on organization priorities while continually building everyone\u2019s ability to improve their work processes. Within that framework, A3 management and problem-solving support efforts to remove obstacles or address issues that complicate everyone\u2019s ability to do their part in helping the company achieve its vision. <\/p>\n\n\n\n
Another crucial difference from the traditional strategic planning approach is that teams at the gemba \u2014 at the worksites closest to the customer \u2014 inform the hoshin. So, for example, Turner\u2019s priorities \u2014 to create the right environment, achieve full engagement, promote a lean culture, and live injury-free every day \u2014 all aim to help frontline workers.<\/p>\n\n\n\n
Cascade of Hoshin at Turner Construction<\/strong><\/p>\n\n\n\n
The hoshin, or strategic, plans, are developed at each level of the organization through top-down, bottom-up discussions that maintain alignment and transparency of the organization\u2019s broad strategic objectives at every level. Such collaboration ensures everyone can focus their efforts on helping the organization achieve its objectives.<\/em><\/figcaption><\/figure><\/div>\n\n\nIn Turner New York\u2019s case, the senior vice president works with corporate leadership to whom he reports and the general managers to set the business unit\u2019s hoshin, or strategic plan. In turn, each of the general managers works with their department heads to clarify the linkage of their work, ensuring it supports the business unit objectives. Then, the department heads develop and execute the GM-level hoshin, working with their frontline staff to identify and resolve specific problems through structured problem-solving (A3). As a result, leaders at each level align their teams to participate in explicit activities that move the company closer to achieving a strategic objective.<\/p>\n\n\n\n
Supporting this organizational structure is a small group of leaders who advise and coach lean practices. For example, a regional lean manager (RLM) helps the senior vice president create and manage the top-down, bottom-up management system. The RLM also facilitates the general managers\u2019 efforts to develop and execute the business-unit-level hoshin with their leadership teams. An LEI Coach supports the RLM and coaches everyone on the management process, which combines hoshin kanri and A3 thinking and practices. <\/p>\n\n\n\n
With this organizational structure, \u201cWe have consistency, [a plan] that\u2019s driven from the top of the organization through the general managers to their leadership teams and, ultimately, problem-solving at the project level,\u201d Cooper explains.<\/p>\n\n\n\n
A cadence of monthly meetings, where each level reviews and reports progress, maintains strong alignment and focus on the business unit\u2019s \u2014 and the company\u2019s \u2014 top objectives. Turner New York has experimented with various meeting cadences, but, currently, the meetings are held January through October, when next year\u2019s hoshin planning commences. <\/p>\n\n\n\n
\u201cWhen we have these meetings, we talk about those A3s \u2014 about the problems we\u2019re trying to solve,\u201d Cooper explains. \u201cAnd problems are not something that\u2019s dreaded within the organization; they are opportunities for us to improve,\u201d he asserts. \u201cThey are opportunities for us to challenge our current systems and standards, to ask really, really good probing questions, and to be able to learn collectively and socialize that learning out to the organization.\u201d<\/p>\n\n\n\n
Improving Safety Performance<\/strong><\/h4>\n\n\n\nA closer look into one of the business unit\u2019s objectives demonstrates how Turner maintains this top-down, bottom-up alignment. Another of Turner\u2019s strategic priorities is \u201cLiving Injury-Free Every Day,\u201d which emerged in response to the problem at the gemba. Tradespeople were getting hurt. (Recall that at the \u201ctop-of-the-funnel,\u201d these goals are aspirational.) As the goals and plans are translated at each level, from corporate to job sites, they become increasingly specific, often targeted to a particular construction project. Cooper explains that as they become more precise, using A3 problem-solving, the goals become more actionable and measurable. For example, translating \u201cLiving Injury-Free\u201d from the corporate to the business-unit level, the New York SVP and Cooper set a goal to achieve zero on-the-job injuries by improving the situational awareness of everyone entering job sites. In turn, the GMs, working with the SVP and Cooper, set safety-related tactical objectives, deciding to have the frontline crew focus on reinforcing its \u201cLadders Last\u201d policy and \u201cA-frame Cart\u201d guidelines, among other efforts. <\/p>\n\n\n\n
\u201cWe were very specific, very purposeful\u201d in choosing projects because, as someone once said, \u2018a problem well-stated is a problem half-solved,\u2019\u201d Cooper notes. Once stated, specific activities and countermeasures are taken to resolve the problems by achieving a specific target. The process of selecting projects, setting targets, and determining actions to achieve them is guided by the discipline of A3 problem-solving. <\/p>\n\n\n\n
\nProblems are not something that\u2019s dreaded within the organization; they are opportunities for us to improve.<\/p>\n\u2014 Doug Cooper<\/cite><\/blockquote>\n\n\n\nTurner had implemented \u201cLadders Last\u201d in May 2011, and the policy had significantly reduced the business unit\u2019s ladder-related safety incidents. However, current data indicated that incidents had started to rise. So, using A3 problem-solving, the team dug into more detailed project data, discovering that project crews were not following the policy consistently for various reasons, including that many didn\u2019t fully understand the policy or its importance to the company. As a result, they weren\u2019t holding themselves accountable to enforce the policy or communicate it to the subcontractors. To address this, \u201cwe provided additional training that would consistently build understanding among the team about why the policy is important and make clear that \u2018Ladders Last does not mean ladders no,\u2019\u201d Cooper says. Then they set specific measures to track progress and a cadence for follow-ups. <\/p>\n\n\n\n
New York Business Unit Records Incident Rates<\/strong><\/p>\n\n\n\n
The New York Business Unit leaders credit improvements in its primary safety measure to their new management system, with hoshin kanri practices keeping everyone focused on safety goals andThe \u201cA-frame Cart\u201d A3 called for reducing injuries caused by the use of drywall carts, where \u201cwe found that we had in excess of over 200 incidents relating to this particular conveyance system,\u201d Cooper says. Further investigation identified when and how cart-related injuries occurred, prompting the team to implement specific countermeasures that crews should take to avoid those situations. \u201cSo that resulted in some countermeasures of socializing the hazards that are related to [these carts], about how to safely utilize them,\u201d Cooper explains. He adds that the business unit shared the countermeasures company-wide and, \u201cas a result, we\u2019ve seen a decrease in the number of A-frame cart-related incidents.\u201d<\/p>\n\n\n\n
Cooper notes that, taken individually, the results of the frontline A3s don\u2019t achieve 100% of the business unit\u2019s safety goals or corporate\u2019s strategic priority, but they contribute to doing so. \u201cThese two A3s, the A-frame Cart and the Ladders Last, improve[d] our performance as related to our \u2018building life\u2019 program,\u201d he says.\u201d Further, within a management system where dozens of these tactical frontline efforts are in process, the combined results ultimately help the business unit and the company meet their strategic priorities.<\/p>\n\n\n\n
Understanding the Broader Benefits<\/strong><\/h4>\n\n\n\nAchieving goals and objectives of any sort are significant wins, but for Turner\u2019s NYBU leaders, more critical is the progress the group has made toward building a system that creates and supports transparency and alignment. \u201cNow, we\u2019re solving new problems and have more people using the [problem-solving] structure [of A3s],\u201d Cooper says. \u201cWe are using the structure for incident and near-miss review, and we\u2019re holding ourselves accountable for really digging into the root cause of the issues as it relates to what\u2019s happening in our jobs.\u201d <\/p>\n\n\n\n
Though Turner can\u2019t claim yet to be a lean company that does construction, Cooper asserts, \u201cwe\u2019re working diligently and intentionally toward that goal, and we\u2019re beginning to see fostered commitment to it.\u201d<\/p>\n\n\n\n
As for whether practicing lean has created a competitive advantage, Cooper can\u2019t site specific proof. However, he notes: \u201cWe\u2019ve had a number of clients that we do a lot of work with say that they respected and appreciated what we\u2019ve been doing.\u201d<\/p>\n\n\n\n
\u201cAs a matter of fact, recently, we had a client ask us to provide a proposal for a project, and rather than giving them that onerous three-ring binder proposal, they wanted it in an A3 format,\u201d he adds. \u201cThey wanted to see what their project would look like as an A3 \u2014 there were certain processes, certain problems that they wanted us to address in that fact-based problem-solving structure. So yes, in short, I think lean has a lot to do with what differentiates us.\u201d<\/p>\n\n\n
\n
About Turner Construction:Turner Construction uses hoshin kanri (strategy deployment)
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