Thanks to the Shingo Institute for allowing me to present this webinar recently:

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Introduction

Hello, everyone; I’m Mark Graban. I’m excited to share some insights with you today about how mistakes can drive continuous improvement and innovation. Let’s dive into this topic by exploring how we can turn mistakes into opportunities for growth.

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Recognizing and Correcting Mistakes

Thank you, Mary, for the warm introduction. I’ll start with a slight correction – the “Gemba Walks” book isn’t mine. My works include “Lean Hospitals” and “Healthcare Kaizen,” which have been recognized by the Shingo Institute. This initial correction serves as a perfect example of our topic: we all make mistakes, and how we handle them is crucial.

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The Importance of Psychological Safety

A fundamental aspect of leveraging mistakes for improvement is creating an environment where people feel safe to speak up. This concept is known as psychological safety. At Toyota, for example, the Andon cord system allows team members to stop the production line to address problems. However, this system only works because the culture encourages and supports such actions.

For an organization to thrive, it must ensure that employees feel safe to pull the cord or voice concerns without fear of punishment. This principle aligns with the Shingo principles of quality at the source and respect for every individual. Creating this kind of culture requires constructive responses to mistakes, reinforcing that speaking up is valued.

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Psychological Safety in Practice

Organizations across industries are working to enhance psychological safety. For instance, at a hospital near Toyota City, Dr. Yasuda (the CMO, I believe) and her team focused on encouraging incident reporting. The increase in reported incidents indicated that staff felt safer to speak up, leading to better overall safety and quality.

Similarly, in the U.S., hospitals have adopted processes like “safety stops” to encourage reporting and addressing concerns. As these processes were implemented, the number of reported safety concerns rose. In contrast, serious safety events declined, demonstrating that fostering psychological safety can lead to significant improvements when effective problem-solving is taught and practiced.

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Defining and Embracing Mistakes

We often define mistakes as actions or judgments that turn out to be misguided or wrong. Recognizing a mistake usually happens in hindsight, and it’s essential to react constructively. Instead of viewing mistakes as failures, we should see them as opportunities for learning and growth. This mindset shift helps in turning negative experiences into positive outcomes.

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Creating a Culture of Improvement

Building a culture that embraces mistakes involves several key behaviors from leaders:

1. Modeling Candor: Leaders should openly admit their mistakes and encourage others to do the same.
2. Encouraging Candor: Regularly inviting feedback and diverse perspectives helps in identifying potential mistakes early.
3. Rewarding Candor: Positive reinforcement when employees speak up about mistakes encourages ongoing transparency.

A practical example comes from Toyota, where leadership encourages employees to share problems openly. This approach is not just about avoiding punitive responses but actively fostering a learning environment.

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Conclusion

In summary, turning mistakes into drivers of continuous improvement requires a cultural shift towards psychological safety, where employees feel safe and supported to speak up. Leaders play a crucial role in modeling and encouraging this behavior. By embracing mistakes and learning from them, organizations can foster a culture of innovation and excellence.

Thank you for your time, and I’m happy to take any questions.

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Q&A Session

Mary Price: Thank you so much, Mark. We have a couple of questions from the audience.

Question: How do you sidestep the concern of the futility factor in organizations?

Mark Graban: Great question. The futility factor, where employees feel that speaking up won’t lead to any change, can be addressed by ensuring that leaders not only listen but also act on the feedback. Regularly showing how employee input leads to tangible improvements can help overcome this barrier.

Question: What are some key behaviors leaders should demonstrate to create psychological safety?

Mark Graban: Leaders should model vulnerability by admitting their mistakes, encourage open dialogue by actively seeking out differing opinions, and reward transparency by recognizing and appreciating employees who speak up.

Question: How do you gauge psychological safety in a company?

Mark Graban: Psychological safety can be gauged through surveys that ask about employees’ comfort in speaking up, as well as through indirect measures like the number of reported incidents or suggestions. Regular feedback sessions and open forums can also provide insights into the level of psychological safety.

Thank you again for your questions and participation. Let’s continue to foster environments where mistakes are seen as opportunities for growth and learning.