Books

Managing to Learn by Toyota veteran John Shook, reveals the thinking underlying the vital A3 management process at the heart of lean management and lean leadership. Constructed as a dialogue between a manager and his boss, the book explains how “A3 thinking” helps managers and executives identify, frame, and then act on problems and challenges. Shook calls this approach, which is captured in the simple structure of an A3 report, “the key to Toyota’s entire system of developing talent and continually deepening its knowledge and capabilities.”

The A3 Report is a Toyota-pioneered practice of getting the problem, the analysis, the corrective actions, and the action plan down on a single sheet of large (A3) paper, often with the use of graphics. A3 paper is the international term for a large sheet of paper, roughly equivalent to the 11-by-17-inch U.S. sheet.

Executives and managers at all levels in the organization will benefit from the book. An A3 can be used wherever there is a need for people to work together to get clarity on a problem or proposal and then to create a set of realistic and effective countermeasures. A3s can be prepared by individuals, teams, or any leader and his or her report.

When faced with problems many business leaders and teams mechanically reach for a familiar and standard problem-solving methodology, creating unnecessary struggle, frustration, delay, and ineffectiveness in solving the problem – if it is ever solved at all! In other words, they keep reaching for the same old hammer as if every business problem were a nail.

In Four Types of Problems, continuous improvement expert and author Art Smalley shows you how to break the “hammer-and-nail” trap.  He demonstrates that most business problems fall into four main categories, each requiring different thought processes, improvement methods, and management cadences:

1. Troubleshooting: A reactive process of rapidly fixing abnormal conditions by returning things to immediately known standards.
2. Gap-from-standard: A structured problem-solving process that aims more at the root cause through problem definition, goal setting, analysis, countermeasure implementation, checks, standards, and follow-up activities.
3. Target-state: Continuous improvement (kaizen) that goes beyond existing levels of performance to achieve new and better standards or conditions.
4. Open-ended and Innovation: Unrestricted pursuit through creativity and synthesis of a vision or ideal condition that entail radical improvements and unexpected products, processes, systems, or value for the customer beyond current levels.

Understanding A3 Thinking: A Critical Component of Toyota’s PDCA Management System

The book demonstrates how dynamic A3 Thinking can positively impact corporate culture. It also explains why the A3 report is especially effective tool when implemented in conjunction with a PDCA-based management philosophy. It Includes a number of examples and practical advice on how to write and review A3 reports.

Notably flexible and brief, the A3 report has proven to be a key tool In Toyota’s successful move toward organizational efficiency, effectiveness, and improvement, especially within its engineering and R&D organizations. The power of the A3 report, however, derives not from the report itself, but rather from the development of the culture and mindset required for the implementation of the A3 system.

In Understanding A3 Thinking, the authors first show that the A3 report is an effective tool when it is implemented in conjunction with a PDCA-based management philosophy. Toyota views A3 Reports as just one piece in their PDCA management approach. Second, the authors show that the process leading to the development and management of A3 reports is at least as important as the reports themselves, because of the deep learning and professional development that occurs in the process. And finally, the authors provide a number of examples as well as some very practical advice on how to write and review A3 reports.