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The Toyota Way to Service Excellence: Lean Transformation in Service Organizations, by Jeffrey K. Liker Karyn Ross
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The world’s bestselling Lean expert shows service-based organizations how to go Lean, gain value, and get results―The Toyota Way.A must-read for service professionals of every level, this essential book takes the proven Lean principles of the bestselling Toyota Way series and applies them directly to the industries where quality of service is crucial for success. Jeff Liker and Karyn Ross show you how to develop Lean practices throughout your organization using the famous 4P model. Whether you are an executive, manager, consultant, or frontline worker who deals with customers every day, you’ll learn how take advantage of all Lean has to offer. With this book as your guide, you’ll gain a clear understanding of Lean and discover the principles, practices and tools needed to develop people and processes that surprise and delight each of your customers. These ground-tested techniques are designed to help you make continuous improvements in your services, streamline your operations, and add ever-increasing value to your customers. Fascinating case studies of Lean-driven success in a range of service industries, including healthcare, insurance, financial services, and telecommunications, illustrate that Lean principles and practices work as well in services as they do in manufacturing.Drawn from original research and real-world examples, The Toyota Way to Service Excellence will help you make the leap to Lean.
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Product details
Hardcover: 448 pages
Publisher: McGraw-Hill Education; 1 edition (September 20, 2016)
Language: English
ISBN-10: 1259641104
ISBN-13: 978-1259641107
Product Dimensions:
7.8 x 1.4 x 9.3 inches
Shipping Weight: 1.6 pounds (View shipping rates and policies)
Average Customer Review:
4.9 out of 5 stars
16 customer reviews
Amazon Best Sellers Rank:
#463,450 in Books (See Top 100 in Books)
Before reading this book I read Liker's "The Toyota Way." I loved the philosophy of the Toyota Way, but was less sure how to apply what I learned to my industry (service and entertainment).I wish I'd read this book first! It covers much of the same ground, but from a service organization's perspective. I particularly loved the examples of a lean transformation in a call center situation (though they were a little optimistic -- has anyone the authors worked with ever been that eager to make changes? No one I've ever worked with has).The bottom line is that if you're interested in lean thinking or the Toyota Way but work in a service organization THIS is the book you should read TO START. I still recommend "The Toyota Way" because it offers a little more information about some specific tools, but if you're just going to read one and you work in service this is the one for you. It covers philosophy more than tools, so it's a great introduction to the whole concept (something like the Toyota Way Fieldbook may offer more tools if that's what you're looking for).
“A culture of service excellence is a slow build, takes constant vigilance to sustain, but is the only true path to greatness.â€If your idea of a business book is 3 concepts stretched to fill 150 pages - this is not that book.Instead of an “airport speed-read,†The Toyota Way to Service Excellence is more of a graduate course - with great professors! This makes sense since Dr. Jeffrey Liker has been a professor for over 30 years. Co-author Karyn Ross brings real and imagined examples to life with her hands-on experience in the service sector. Together, these Shingo-Prize winners carefully and thoughtfully apply the principles and practices of Toyota to call centers, hospice care, mail order, taxi service, IT development and beyond.For those unfamiliar, Jeffrey Liker wrote the original The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer back in 2004. The Toyota Way was published internally in 2001, but his 2004 book codified the “secret sauce†inside Toyota City. His efforts were greatly honored by Toyota leadership who had been living the Toyota Way for many years...Fantastic Case StudiesThe authors use an imaginary case study to outline a clear path to applying The Toyota Way to a service process. They also weave in real examples from actual businesses they’ve both worked with. What’s fascinating about the real companies is how strikingly different their cultures are. They detail incredible success stories, but the organizations have done it their own way. You can get great ideas or just shots of inspiration from each one of them.Zingerman’s hilarious list of “Five Ways to Lose a Customer†will ring a warning bell for anyone who’s been an online customer (hmmm - that covers a lot of us)Menlo Innovations Their “mission as an organization is to end human suffering in the world as it relates to technology... “ - They’re so confident in the value they bring to their clients, they’ll take ½ their compensation in equity -They’ve made millions doing thatTyson and Sarah Ortiz: They applied “Improvement Kata†(using the scientific method as a routine practice) as a way to work with the hospital and doctors trying to save their newborn son - He’s now a happy, active little 3-year-oldThese and other stories bring The Toyota Way to life in the best way.What Exactly is “Service?â€The authors point out that the definition of service is tricky. If you consider the hospitality sector, there are processes that obviously qualify as service within a hotel - being checked in by a front desk clerk is a good one. But if you consider the banqueting process where hundreds of meals are constructed, served and then cleared, it resembles assembly line work.On the manufacturing side, once you look at their call centers you are back in a “service†process. They conclude that it’s better to “consider differences across functional groups within manufacturing and service systems, or even difference in individual jobs, than it is to treat manufacturing and service organizations as different animals.â€Adapting The Toyota Way for service processes turns out to be important for the country. They point out that based on U.S. Bureau of Labor Statistics, “by 2022 the service sector will account for 90 percent of the jobs that will be added to the American economy.†Lean is not just for manufacturing (see the review of We Don’t Make Widgets), and this book helps to further dispel that myth while at the same time providing guidance for how to support our growing economy.The 4 Ps of the Toyota Production System Adapted for ServiceThe framework builds on Dr. Liker’s 2004 book by adding adaptations for service organizations.Philosophy: It’s key to clarify the purpose of the organization. What is the thing of value they are providing to customers? Money is just a by-product so organizations must take the long view - focusing on quarterly success won’t help build service excellence.Process: Create an ideal process through the eyes of the customer. Create a macro-view of the ideal value stream and then break it down to the micro-level and apply Plan-Do-Check-Act to achieve success.People: Actively develop people by challenging them to continuously improve themselves and the process while simultaneously coaching them to success. Work horizontally across functional boundaries to maintain customer focus.Problem Solving: Systematically work toward the ideal state of the process as opposed to reactively fixing process issues as they arise. Use Plan-Do-Check-Act at all levels- enterprise and organizational units - to maintain alignment.Based on Organic vs. Mechanistic ThinkingMuch of the philosophy behind the Toyota Way can summed up this way. Mechanistic thinking is short-term, linear and requires experts to find the right solutions. Organic or systems thinking refers to taking a long-term approach, treating organizations as complex, interconnected networks where everyone is involved in experimenting to learn and evolve. “There is no generic ‘recipe’ or ‘best-practice way’ to mechanically ‘install’ or ‘implement’ lean in an organization.â€The systems thinking approach is, not surprisingly, complex. There’s no easy fix and it requires dedication, focus and time. “Senior leaders must understand that improvement is not a ‘program’ but a philosophy that connects their people, processes, systems, and customers together in an organic, living system.†The authors see the downside of mechanistic thinking all around them in failed improvement efforts.Golden “Nuggetsâ€There are lots of “ahas†throughout the book. These nuggets are true and useful regardless of the size of the improvement effort.Waste is Stagnation - This ties the idea of removing waste to the goal of improving process “flow.†Look for where the flow is “stagnating†and then look for ways to remove what’s blocking itCurrent Best Way - The idea is that labeling a routine as a “Best Practice†makes it sound as if there’s nothing more to be done. If you change the label to “Current Best Way†then the method is temporary - you can always do betterMeet Leaders in the Workplace (Gemba) - Karyn Ross developed this technique to help leaders transition from managing at a distance to truly understanding how value is created for their customers. They have to “get amongst it.â€What Not to DoBelow are some of the reasons organizations fail when trying to duplicate Toyota’s success.Using Tools for Tools Sake: Focusing on “waste†as the enemy as opposed to clarifying how that will enable the organization to fulfill their purposeFocusing on the ROI: Implementing a fast, efficient Lean rollout (usually at the hands of a “big box consulting firmâ€) instead of establishing a successful pilot effort and growing organically from thereFocusing on Training Alone: Using training alone to teach people instead of applying the tools and concepts in the workplace to drive home learningSeparating Leaders from Improvement: Leadership running Lean efforts at a distance as opposed to becoming integral parts of the process improvementTrying to Replicate Toyota: Trying to imitate specific solutions instead of working to determine what’s best for a specific organization or process - you can’t imitate a culture, you have to develop your ownAlong with cautionary tales, the authors offer lots of helpful advice on what does work and great examples of how it happened elsewhere. They caution against pre-packed solutions but they offer a good high-level, generic approach:Generic Approach to Adopting the Toyota Way:Be sure that senior leadership is serious about the need for change - Is there a burning platform or a leader who simply believes in improvement?Understand senior leadership vision - How does leadership want to use Lean as a way to reach their objectives?Grasp the situation - How is the business performing and what’s the current culture?Understand the current state - What’s the main business challenge to leverage?Identify gaps and prioritize - What are the manageable pieces to start working on right away?Strive for the future state through small cycles of learning - Keep using Plan-Do-Check-Act to interactively learn, grow and develop the habit of improvementThe book is a wonderful education full of the authors’ experience with typically frustrating corporate behavior. This will resonate with anyone trying to build an improvement culture in their workplace. But for every failed attempt at Lean, they provide you with a glimpse of greatness. The culture of Menlo Innovations will truly lift your spirits. Zingerman’s will make you laugh. You’ll come away with dozens of new ideas, you’ll be ready for some “slow†thinking... and maybe a gift basket.
With this book Jeff and Karyn proofs that Lean does work in the service organizations! Moreover you get introduced to an array of tools and Lean concepts - and how they work in the service organizations. You even get introduced to A3 and Kata thinking - really a wealth of great knowledge and inspiration!A must read for anyone in service!
Liker’s first book, The Toyota Way, was a game changer for me. The points he made kept me up at night. Seriously!When I saw his new book, The Toyota Way to Service Excellence, co-written with Karyn Ross, was about to be released, I knew I had to get it. I was excited to see it was geared toward the service industry.I wasn’t disappointed. The book is full of nuggets that got me thinking. Looking back over my notes, I have tick marks, stars, and the word “interesting†in the margins all over. Here are some of my favorites:This book talks a lot about change management. That in itself was a good reason to get it. Liker explains the difficulties with American vs. Japanese paradigms and why Lean type of management makes sense to the Japanese but is harder for Americans to grasp. Part of this is Mechanistic (Americans) vs Systems (Japanese) thinking. He included a cool graph showing the differences. He also pointed out that the Japanese are better at organizational learning than Americans (we are better at individual learning).Related, Liker states its been his experience we cannot change a person’s paradigms with logic, facts, motivational speeches, and intense classroom training. Liker said there are too many defense mechanisms for the brain. It takes time and practice and corrective feedback from skilled coaches. In short “you cannot order, buy, or quickly achieve changes in philosophy.†This is exactly the opposite of what American management wants to hear. We want things NOW. This makes it very tough to change a Western-style organization.He shared researcher Geert Hofstede’s website that shows comparisons of world cultures indicating our emphasis on Individualism, Long term orientation, and Risk avoidance. Americans are highly individualistic, think short term, and take risks. The Japanese are collective thinkers, think long term, and are risk adverse. I’ve shared this website with my own company. Because we are international, I thought it might help us understand each other better and how we work.He has a section titled “Changing Senior Management Thinking.†Liker says senior managers get where they are because they are confident, passionate, convincing and believe they are right. This makes a very tough nut to crack, especially when they are stuck in a traditional American/Western mindset. His advice for midlevel professionals on this matter:“Do your best to learn and grow and make your team the best in the business. The worst that will happen is that lower performers will resent you. But in the long term you will win because you are learning and developing your team and will be rewarded at your current or next employer. Taking on the kingdom and attempting to transform the culture of a multinational corporation is self-defeating. Do what you can with what you’ve got. Start by changing yourself and then find ways to positively influence others, one person at a time.â€He gives a really good example of PDCA in action and shows how it can be rapidly deployed. It really got me to better understand how PDCA works and I’m looking to see where I can apply it with my own work.He talks about how Toyota carefully chooses and grows its partners. He has a section warning on the risks of outsourcing services. I’d been drawing this conclusion myself because if one does not have a partner that does not share your values and doesn’t embrace continuous improvement, you are in for a lot of pain. I’ve experienced this in my own company.So, why does it get 4 stars instead of 5? Admittedly, some of this stuff just didn’t make sense to me. The book is very nuts and bolts and if it made my head begin to hurt, I skipped the section (the part about A3 particularly made me cross-eyed). Perhaps I’m not ready for some parts yet and need to come back and study it when my understanding matures. Also—the book switches to a narrative/fiction like style to explain a typical Lean transformation at a fictional service industry. While the point was certainly made (and I applaud Liker for trying something different), at times this format came off a little too hokey for me. It started sounding a little too “rainbows and unicorns.†I’d like to have seen these dialed back a little.Despite this being an excellent book, I think it may be a little too advanced for the beginner. Liker references Toyota Kata throughout the book. I’m wondering if one should start there or perhaps read The Toyota Way.Overall, though—excellent book. Glad its in my library. I’ll be referring to it.
Good condenced summary of Continuous Improvement concept (vs mechanistic way of thinking ) for ordinary Lean consulting :).Thank you, Jeffrey,You are master of generalizations!
Everyone that is desiring to create a Robust Management System should read this book, then read it again, and start experimenting your way forward!
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