Hamel uses Nobel Prize-winning economist Friedrich Hayek’s concept of two types of knowledge to support the rationale with which he approaches
lean.
1. Aggregate knowledge (big dots): Macro-level data and financial and operational performance information and analysis.
The purpose of these data is to be able to absorb the big picture, set direction and formulate strategy. They are usually the realm of top leaders.
Hamel makes the point that even a sufficient aggregate of such knowledge in the hands (or
head) of leaders will have limitations if they lack a key lean ingredient -- humility -- which is also necessary for any leader truly and deeply committed to transformation to true excellence.
If humility is beneath me, leadership is beyond me. -- John Miller (the QBQ!
guy)
There is a distinct danger that relying solely on this type of knowledge can create the grand illusion that leaders know best. As President Dwight D. Eisenhower once said in the 1950s: To an engineer in his office with pencil and paper, farming looks pretty easy.
[And if improvement "leaders" aren't careful, they can easily fall into this trap as well (Mea
culpa!)]
2. Knowledge of the particular circumstances of time and place (little dots).
This type of knowledge is derived from real-life, consistent immersion in the actual daily work.
People who possess this knowledge do the actual work at the actual place and are grounded with an astute conscious awareness of the daily realities of their environment.
Note: not all people sufficiently grasp the reality of their situation – their lean (or improvement) thinking may be immature or perhaps they’re not interested in acknowledging reality. It’s up to the leaders to help this along.
In any event, with proper coaching and a good lean management system to facilitate problem identification and the targeting and flow of ideas, the people with this second type of
knowledge are the proper and most effective force to conduct kaizen (continual daily incremental improvements). More about this in my next newsletter.
• The best lean teaching emphatically insists that leaders should religiously go see, ask why, and show respect, which should also be true for any serious improvement approach. To be ultimately effective, it must be a formal component within the context of
mandatory, well-developed leader standardized work.
[Where is the time going to come from to do this?
See Chapter 2 of Data Sanity -- up to half of leadership time spent in routine meetings can be freed up!
Click here for a summary.]
• Leaders need to periodically participate in kaizen activities firsthand with the stakeholders. This will force leaders to go directly to the gemba (actual workplace where the value is added), rigorously observe reality, earn some of the necessary insight, and, only then, share in local PDSA.
Similarly, the front-line “particular knowledge folks” should obtain a least a modicum of aggregate knowledge to expand
their line of sight. The incorporation of frequent regular visual process performance metric reviews -- measures related to people, quality, delivery, cost, and rate of continuous improvement -- should become part of their natural work team huddles.