Chapter 1
In lieu of a foreword, an anecdote about belief:
’A thousand words will not leave so deep an impression as one deed.’ – Henrik Ibsen.
The concept of Kaikaku (改革, Japanese for ‘radical change’) encompasses more than a mere transformation; it can also signify a return to one’s core beliefs. Hence, radical change should not be misconstrued as radical renewal or the pursuit of something entirely new. Allow me to illustrate this with a true story.
Over nine years, I immersed myself in diverse esoteric domains – exploring astrology, numerology, enneagrams, feng shui, reiki, and more. At the time of this particular story, I had established a reputation as an expert in these unconventional fields. What adds a unique twist to the narrative is the protagonist’s longstanding commitment to Roman Catholicism spanning almost half a century, leading her to dub my pursuits as ‘unholy’. It is essential to note that the term ‘unholy’ is employed here not as a condemnation but rather to underscore the unconventional nature of these endeavours within the framework of traditional religious beliefs.
It may not surprise you that our paths did not always align. Despite our differing views, we maintained mutual respect. When our paths crossed, beliefs were never the central focus of our discussions.
Hence, I found myself quite surprised when she appeared at the doorway to my office, politely inquiring if I had a moment to spare. Upon entering, she closed the door behind her, her usually confident demeanour replaced by red eyes that hinted at recent tears. Sensing her distress, I gestured toward the chair opposite my desk, inviting her to sit. With visible struggle, she fought back tears while extending a piece of paper in my direction. My initial concern that it might be a resignation letter was alleviated upon inspection. Instead, it held two dates, unmistakably birthdates.
She took a deep, trembling breath, confessing that she had been an observant Roman Catholic since childhood, attending mass daily. What followed, she explained, was a delicate matter for which she felt compelled to consult someone like me. Despite my usual inclination to make light of serious subjects (earning me a customary ′Will you never grow up?′ from my wife, Marianna), I heeded an inner voice urging me to set aside any jests and listen attentively.
Anxiety tinged her expression as she requested my analysis of the individuals associated with the birthdates—individuals I had never encountered. Despite my apprehensions about the outcome, a blend of fear of failure and the possibility of uncovering something untoward, I composed myself. I proceeded to provide what she deemed an impressively accurate depiction of the two individuals.
As my insights unfolded, her anxiousness gave way to curiosity, evident in the eager glint in her eyes. With a newfound sense of intrigue, she sought further guidance, prompting her to inquire about my recommendations for her next course of action.
’Bake a cake, purchase a bottle of excellent wine, grab a bunch of flowers, and pay the happy couple a visit in their love nest,’ was my spontaneous suggestion. This off-the-cuff response triggered a mental note for me to refine my diplomatic skills and remind my inner voice to exercise more caution with my words. As the impact of my words settled in, a fiery intensity blazed in her eyes, and if glares could be lethal, I might not be here to share this tale. In a concerted effort to defuse the escalating tension and alleviate my unease about facing the consequences behind those stern eyes, I posed a rhetorical question,
’One of the pillars of your religion is forgiveness, isn’t it?’
Still reeling from the audacity of my suggestion, she could only manage a hesitant nod of agreement. In a lengthy monologue lasting half an hour, I laid out the potential consequences she might face if she chose not to follow my advice—nearly fifty years of devoutly attending mass and the jeopardy of her identity as a Roman Catholic. The very foundation of her belief system hung in the balance, and the decision she made would determine its fate. After concluding my verbal exploration of the issue, a profound silence enveloped us. Eventually, she met my gaze and uttered a simple,
’Thank you, Mr Carter,’
and rose from her seat, leaving my office. Confident in my belief that true devotees are a rarity on this planet, I swiftly dismissed the episode as a peculiar interlude. Therefore, I found myself quite astonished when, approximately three weeks later, she once again appeared in the doorway of my office. Entering with determination, she closed the door behind her, took the seat in front of my desk, and, with a radiant expression, exclaimed with sparkling eyes,
’I did it!’
My perplexed expression must have been evident because, with a hint of annoyance, she clarified, ’I followed your suggestion. I baked a cake, bought a bottle of wine and a bunch of flowers, then visited them in their new home.’ My eyebrows shot up, and I mentally scolded myself for impulsively sharing my thoughts. Displaying the intuition of a true Piscean, she sensed my unease and reassured me, saying, ’No need to worry, Mr Carter. Everything went remarkably well. Though they were initially sceptical and hesitant to believe in my good intentions, after enjoying the cake, sharing the wine, and engaging in a three-hour conversation, everyone was genuinely pleased that the situation had been diffused so amicably.’
Though not known for my speechlessness, all I could manage was a dumbfounded nod and a grin before regaining my awareness. I extended my hand, offering congratulations for her remarkable achievement. She expressed gratitude once again for the ’somewhat out-of-the-ordinary piece of advice’ and left my office happy as a cricket.
Why share this narrative, and what’s the Kaikaku effect?
The preceding story serves as a reminder for individuals with steadfast beliefs to stay true to their credo, even if it entails a radical shift to return to it.
The Kaikaku effect in this anecdote manifests as a positive force, albeit not immediately apparent. When her husband admitted to infidelity, her immediate response involved ejecting him from their home, an action that unduly prolonged her subsequent confessional visit. – Our spontaneous reactions are windows into our genuine beliefs, and our initial responses usually starkly contradict our deeply held convictions.
However, the transformative moment occurred when she decided to visit a flower shop and purchase a bouquet of forget-me-nots for her rival. This marked a radical shift in her beliefs, aligning them with her convictions and leading to a harmonious unity. The Kaikaku effect, in this case, is the profound transformation that ensued, unveiling the power of aligning one’s actions with one’s true beliefs.
Navigating a crisis is challenging enough, but when compounded by the presence of a wisecracking, smart aleck—such as an interim manager with an occasionally unbearable demeanour—it becomes a tremendous relief to rely on something familiar that has proven effective in the past. Therefore, by adhering to your genuine and sincere beliefs, you embody authenticity and align harmoniously with all facets of your being—mind, body, and essence. Achieving this state of holistic alignment is the ultimate goal of the Kaikaku process.
Chapter 1
A crisis seldom emerges unexpectedly; rather, it often stems from negligence, a lack of focus, and a shortage of discipline. Nearly all crises can be averted through the daily practice of Hansei (反省, Japanese for ‘self-reflection’) and kaizen (改善, Japanese for ‘continuous improvement,’ literally translated as ‘drive out the bad’).
Relying on kaizens during a crisis proves ineffective, as their success hinges on incremental, sometimes invisible, changes within the system to prevent disruptions and stress caused by radical alterations.
In times of crisis, applying Kaikaku becomes essential to return to a stable state swiftly. Additionally, embracing Kaikaku facilitates the introduction of lean management, a measure that safeguards against crises, excluding, of course, those triggered by major events like earthquakes, floods, pandemics, and more.
As I mentioned, seize the opportunity presented by a crisis to swiftly and effectively implement lean management. Why is a crisis an ideal gateway for lean management? Because lean management thrives on simplicity, established enterprises often harbour complex systems that are challenging to dismantle in non-crisis scenarios. However, when existence is threatened, these complexities can be shed with relative ease.
Complex systems often rely heavily on manpower, whereas simple systems operate with minimal human intervention or can even function autonomously. Consequently, resistance to change is more robust in a non-crisis environment. Stepping out of one’s comfort zone voluntarily demands exceptional willpower, akin to the challenges faced by those attempting to diet for reasons other than medical necessity. External forces serve as a compelling catalyst for addressing long-overdue tasks.
Nevertheless, regardless of the severity of a crisis, certain common obstacles persist and must be navigated:
1) Inner resistance -> Overcoming resistance necessitates radical measures.
2) Slow learning -> Instigating the survival instinct accelerates the learning process.
3) Fast forgetting -> It is challenging to erase the memory of a shocking experience.
Radical changes often induce significant stress. In such moments, recalling Churchill’s insight on change can serve as a valuable reminder: ’We must take change by the hand, or change will take us by the throat.’
Attempting to implement radical changes single-handedly is akin to pulling oneself up by the bootstraps—a most impractical and exceedingly difficult task. External assistance, such as a well-timed push, can provide the necessary impetus to initiate action. IMs (interim managers), adept at providing such motivation, are akin to professional ‘butt kickers’ and ‘arm twisters,’ functioning as martinet figures who compel action on long-considered plans. If you are fortunate enough to have such a person in your management team, pledging to heed their guidance can catalyse progress.
‘If one does not know to which port one is sailing, no wind is favourable.’ – Seneca.
Therefore, establishing a baseline for KPIs (key performance indicators) is a prudent move at the project’s inception, irrespective of the company’s current state. Tracking and transparently displaying progress, preferably through concise charts that illustrate trendlines, is essential. Succinct progress reports, minimising verbose explanations, ensure everyone remains informed about the ongoing developments. In times of crisis, information about the current state is a coveted commodity, and withholding it can inadvertently spark malicious rumours.
A cautionary note to stakeholders and management:
Resist the temptation to treat IMs as mere puppets tasked with implementing preconceived solutions to crisis management. If you find yourself seeking external assistance, it is likely because ample time has passed without effective action on your part. – When selecting an IM, prioritise impartiality above all else. Opting for a candidate who merely reinforces your stance does a disservice to yourself, the company, and the appointed IM in the long run.
In many cases, stubborn adherence to entrenched positions precipitates crises, as clashes of opinions—often fuelled by egos—devolve into entrenched battles resembling trench warfare. In such instances, the pursuit of victory in debate supersedes the imperative of preserving the company’s well-being.
To mitigate this risk, always maintain a BATNA (Best Alternative To a Negotiated Agreement), as outlined in Getting to Yes by Roger Fisher and William Ury. Having a viable alternative plan ensures that you do not sacrifice the company’s interests on the altar of inflated egos.
Designate a room, often referred to as an obeya in lean management terminology (大部屋, Japanese for ‘big room’), where all teams involved in crisis resolution can regularly convene to discuss the optimal path forward. Displaying the latest KPIs in this space allows teams to catch up on collective achievements and fosters collaborative decision-making.
I consistently aim to ensure that this room remains accessible to all employees, particularly because, as previously emphasised, people yearn for information during a crisis. Allowing them to track progress not only saves their support but also minimises the likelihood of covert opposition by fostering open discussions. It is essential to maintain simplicity and transparency in all communications. – Despite sounding counterintuitive, transitioning to a complicated system is often easier than simplifying an existing one. Why? Complex systems typically evolve through a series of well-intentioned quick fixes rather than deliberate planning. However, it is vital to bear in mind the wisdom of Milton Friedman:
There is nothing so permanent as a temporary solution.
A central point to emphasise regarding KPIs:
It is imperative, without exception, to thoroughly understand the origins, compilation methods, and processing techniques of your figures before presenting them to the public. Simply asking the controller if they are satisfied with their data sources is insufficient. True assurance comes from personally scrutinising every aspect of the data sources, questioning even the minutest details.
The influence of figures is profound; whether accurate or not, people often accept them at face value and incorporate them into their arguments. Therefore, ensuring the accuracy and reliability of your KPIs is paramount to maintaining credibility and making informed decisions.
In contrast, a simple system emerges from the deliberate act of simplification, actively making processes more straightforward. Throughout your journey out of the critical situation, Einstein’s wise counsel echoes: If you can’t explain it, you don’t understand it well enough.
Embrace the power of visualisation. It is versatile and potentially the most effective tool in the lean management toolbox. Utilise it extensively, as too much is preferable to too little.
Visual representation is a compelling method for explaining anything. Similar to the child in Hans Christian Andersen’s tale, The Emperor’s New Clothes, who fearlessly pointed out the emperor’s lack of attire, it lays bare the truth without regard for status, politics, ideology, or any other face-saving measures.
Decisions are the cornerstone of success during crises. Failure to make any decisions at all guarantees a breakdown of progress. Indeed, there is scarcely a worse scenario than being caught in limbo due to indecision by those in authority. Consequently, department heads must be prepared to make critical decisions on the spot to keep momentum flowing. Stagnation must be avoided at all costs, as people quickly succumb to restlessness and apathy, paving the way for either lethargy or dissent.
A vital aspect to consider is the notion of saving face:
In times of crisis, the instinct to avoid blame and public humiliation is understandable. However, it is essential to recognise that true problem-solving requires full transparency, allowing issues to be addressed at their core. Psychology delves deeply into how individuals associate or dissociate themselves from events. Mentally healthy individuals, although a minority, possess the ability to discern when to align with or distance themselves from certain circumstances.
Those inclined towards depressive tendencies often lean towards associating with negative events, such as lamenting their misfortune in a cascading series of setbacks. Conversely, individuals prone to megalomania tend to over-associate with even the smallest successes while disassociating from failures, often deflecting blame onto others.
In the realm of kaizen, one of the fundamental principles is to refrain from blaming or shaming individuals and instead focus on dissecting the problem by asking ‘why?’ at least five times to uncover the root cause. – Alexander Pope’s insightful reflection on shame aptly concludes this discussion: ’No one should be ashamed to admit he is wrong, which is but saying, in other words, that he is wiser today than he was yesterday.’
In such circumstances, it is preferable to allow individuals to march forward, even if it is in the wrong direction, and then redirect their efforts rather than leaving them in a state of uncertainty. The task of maintaining order amidst frayed nerves when livelihoods hang in the balance or reigniting morale once despair sets in is a burden no manager wishes to bear during a crisis. – ’Action is the antidote to despair.’ – Joan Baez
A vital point for managers to consider:
Managers need to recognise that prioritising self-preservation is a short-sighted strategy, especially in times of crisis. Managers who fail to demonstrate courage in adversity risk being ridiculed at best or despised at worst for their incompetence. Reflect on the enduring portrayal of the British army in World War I as ’lions led by donkeys,’ a testament to the consequences of managerial ineptitude over a century later.
The substantial salaries of managers should reflect their capacity and readiness to shoulder responsibility rather than the magnitude of their egos. Humility, or even ‘servant leadership,’ is one of the ten core beliefs of kaizen. Why ‘servant’? Managers possess the authority to remove obstacles obstructing their direct reports, enabling them to leverage their expertise and thereby fully drive overall company success. Your direct reports recognise your authority; there is no need to assert it constantly. Instead, heed Albert Schweitzer’s wisdom on leadership: ’Example is not the main thing in influencing others. It is the only thing.’
