How Seeing Leads to Success, Part 2

The Universal Applicability of Genchi Genbutsu and Gemba Walks

In September 1956, US President Dwight D. Eisenhower delivered a speech at Bradley University in which he said “Farming looks mighty easy when your plow is a pencil, and you’re a thousand miles from the corn field.”  He was talking about the relationship between government and farmers, but he could just as easily been referring to the relationship between leadership and employees in any industry.  In essence, he was saying that from a distance, any problem can seem easy to solve.  Anyone who is removed from the workspace cannot fully understand the workplace and therefore cannot solve problems.  It is not until you step into the worker’s shoes — walk a mile in their boots, see what they see and hear what they hear — that it is possible to truly understand the daily challenges faced and think about how best to fix them. 

It was around this time that Toyota embraced a new philosophy for their manufacturing process.  They knew that it was one thing to identify errors or weaknesses in their business, but it was another to actually fix and improve them.  The crucial step in fixing an error, they found, was in deciding the right solution to implement.  Picking the wrong one simply created a different problem.  At a big company, it would be imperative to choose the right solution before implementing it across the entire corporate structure.  Because of this, investigating the problem as thoroughly as possible should be paramount. That is what led to Genchi Genbutsu.

Literally translated, Genchi Genbutsu means “real location, real thing”… meaning “the situation onsite”. In the U.S., it means “go see for yourself.”  It’s a concept that called for a first-person approach to problem-solving.   Taiichi Ohno – a Japanese industrial engineer, businessman and father of the Toyota Production System – would take new engineering graduates to the Toyota shop floor and draw a chalk circle on the floor. The graduate would be told to stand in the circle, observe and note what he saw in the Gemba… the workplace. When Ohno returned, he would check the graduate’s notes.  If the graduate had not seen enough, he would be asked to keep observing.  They were encouraged to also speak to workers to understand issues.  Ohno believed that if the problem existed on the shop floor, then it needed to be understood and solved at the shop floor.  Ohno was trying to imprint on Toyota’s future engineers that the only way to truly understand what happened on the shop floor was to go there.  That was where value was added and waste could be observed.  This was dubbed Genchi Genbutsu, and it became a key approach in problem-solving at Toyota. 

Beyond the Factory Floor:  The Universality of Genchi Gembutsu  

Today the Genchi Genbutsu principles have been shown to have universal applicability. From healthcare and finance to software development and customer service, any industry can benefit from directly observing work and engaging with frontline teams.  This applies equally to companies that produce a product and those that deliver a service.   There are many service industry companies that have embraced Genchi Genbutsu, and their invaluable Gemba Walks, to improve customer satisfaction and employee engagement.  Businesses from diverse sectors have embraced this powerful tool to uncover inefficiencies and drive improvement.

In service businesses, the “Gemba” translates to the heart of service delivery, be it a hospital ward, a call center, or a hotel lobby. By physically immersing themselves in these environments, leaders can observe firsthand the intricacies of service delivery. This direct observation goes beyond data, revealing:

• Hidden bottlenecks: Lengthy wait times at a restaurant might not be due to a lack of staff, but inefficient kitchen layout or ordering system.
• Communication gaps: A Gemba Walk in a hospital could reveal communication breakdowns between nurses and doctors impacting patient care.
• Customer pain points: Observing how customers interact with a streaming service’s interface can reveal unintuitive features leading to frustration.

Gemba Walks in Action

So how has it been applied in service settings?  Here are some examples in different service industries.

TRAVEL INDUSTRY

Ritz-Carlton Hotels – Renowned for six-star customer service, Ritz-Carlton empowers its staff to resolve guest issues up to $2,000 on the spot. This policy stemmed from a Gemba Walk where leadership witnessed a frustrated guest, unable to get a simple request for a late checkout fulfilled. Observing the lengthy approval process, they empowered employees to address guest needs directly.

Southwest Airlines – Renowned for its unique culture of humor and delight, Southwest Airlines prioritizes employee engagement. Their “Walk-Arounds”, as they call them, involve senior executives shadowing frontline employees at airports, onboard flights, and even in maintenance hangars. This firsthand experience allowed leadership to understand the daily challenges faced by employees, fostering a collaborative environment and leading to targeted solutions to improve customer service and operational efficiency.  It also impacted how they hired and trained staff.

JetBlue Airways – Focused on customer experience, JetBlue encourages various teams, including leadership, to participate in “Customer Immersion Days”. During these days, individuals shadow customer service representatives, flight attendants, and even gate agents, experiencing the entire travel journey from check-in to baggage claim. This immersive experience allows leaders to identify areas for improvement in customer touchpoints, leading to changes like introducing self-service kiosks and streamlining in-flight entertainment options.

HEALTHCARE INDUSTRY

Mayo Clinic – Facing high patient readmission rates, Mayo Clinic implemented Gemba Walks in patient rooms. Leaders observed that patients often forgot discharge instructions due to information overload during a time of transition and stress. This insight led to redesigned discharge materials and follow-up calls the day after discharge.  These simple changes simplified communication and verified understanding, resulting in a significant decline in readmissions.

Cleveland Clinic – Another leading healthcare provider, Cleveland Clinic adopted “Gemba Walks” to enhance patient care and improve operational efficiency.  Leaders, including physicians, regularly shadow nurses on their rounds, observing patient interactions and workflow. This led to identifying inefficiencies in medication administration processes, resulting in streamlined procedures and improved patient safety. Additionally, observing a nurse struggling to explain complex medical information to a patient inspired the development of patient-friendly educational materials.

BANKING AND FINANCE INDUSTRY

Bank of America – Recognizing the changing needs of customers, Bank of America began “Branch Immersion Days.” During these days, executives visit local branches, observing and interacting with tellers, loan officers, and wealth managers. This allowed them to identify customer pain points, such as long wait times or difficulties navigating complex financial products. Based on those observations, Bank of America implemented changes like express lanes for simple transactions and simplified financial literacy programs, resulting in improved customer satisfaction and increased branch efficiency.

USAA – Famed for its customer-centric approach, USAA started “Member Experience Walks” where leadership representatives visit member homes, engaging in conversations about their financial needs and challenges. This personal interaction provided invaluable insights into the financial lives of their members, leading to the development of targeted products and services that better addressed their specific needs and goals.

TD Bank – Focused on streamlining processes, TD Bank utilized “Process Mapping Walks” where teams were tasked with observing customer journeys across various touchpoints, such as loan applications or investment account management. By witnessing the entire process firsthand, they identified delays, inefficiencies, and potential points of frustration. This approach led to the implementation of online loan application platforms and simplified account management tools, resulting in faster processing times and a more efficient customer experience.

Unlocking the Power of Gemba Walks

It is important to understand that beyond simply observing, effective Gemba Walks involve a series of five crucial steps:

1. Planning – Defining the purpose, scope, and desired outcomes.
2. Preparation – Involving relevant stakeholders and frontline staff.
3. Observation – Asking open-ended questions, actively listening, and taking notes.
4. Analysis – Reflecting on observations, identifying root causes, and brainstorming solutions.
5. Action – Implementing changes, monitoring progress, and iterating based on feedback.

Benefits for the Service Industry

There are a host of benefits to service industry businesses that embrace Genchi Genbutsu and Gemba Walks.  They enjoy an improved customer experience.  Gemba Walks empower leaders to identify and address customer pain points directly, leading to more efficient and empathetic service delivery.  They also benefit from enhanced employee engagement.  Engaging with frontline staff during Gemba Walks fosters trust, promotes open communication, and empowers them to contribute to improvement initiatives.  It also leads to more data-driven decision making.  Combining observations with existing data provides a holistic understanding of service delivery, enabling leaders to make better informed decisions about process improvements.  Last but not least, it results in more innovation and better problem-solving: By directly witnessing challenges, leaders can spark creative solutions that address the realities of service delivery.

While Genchi Genbutsu and Gemba Walks originated in manufacturing, their power extends to the service industry. By stepping beyond the confines of reports and data, leaders in many service industries have gained invaluable insights into the true nature of service delivery. This firsthand understanding has fostered not only problem-solving but also innovation, ultimately leading to a more efficient, customer-centric service experience.

In a world increasingly focused on customer satisfaction, the ability to “go and see for yourself” is a powerful tool for any service business seeking to thrive.  But, Gemba Walks are not just about quick fixes. They foster a culture of continuous improvement, empowering employees to identify and solve problems themselves. This leads to increased engagement, ownership, and ultimately, a more competitive and thriving organization.  What are you waiting for?  Go see for yourself.

Quote of the Week

“Don’t look with your eyes, look with your feet.  Don’t think with your head, think with your hands.” Taiichi Ohno

© 2024, Keren Peters-Atkinson. All rights reserved.

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