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Applying Genchi Genbutsu to Even Complex Industries

For the last two weeks, we’ve been looking at Genchi Genbutsu, one of the building blocks of continuous improvement that is part of the thirteen pillars of the Toyota Production System for manufacturing cars.  The Japanese term means “go and see for yourself”.  “Genchi” means actual place, while “Genbutsu” means actual thing. It was established to empower people to solve the problem by seeing the issue for themselves.

The objective of the Genchi Genbutsu principle is to emphasize the importance of being on the job site where actual work is happening in order to fully understand the processes, examine the working environment, and determine what is wasteful, inefficient or ineffective.  It is a good practice because managers who have done Gemba Walks can advise the best possible solution immediately when problems arise. 

Although this originated in Japan for the manufacture of automobiles in a factory setting, the concept of Genchi Genbutsu and Gemba Walks have been widely embraced globally – including US businesses – across various industries and has proven effective in diverse settings.  These strategies can be implemented even in the most complex and dynamic industries to reveal challenges and identify opportunities.

A Proven Strategy even in Complex Industries

Genchi Gembutsu has even been embraced by complex and dynamic industries such as real estate, construction and property management.  Imagine project managers conducting Gemba Walks to identify safety hazards, reduce communication gaps on job sites, and address quality concerns in real-time.  It could also be used to deal with budget constraints and improve employee retention. 

In theory, an example of a Gemba Walk might be done by a project manager at a job site.  Observing delays in construction due to unclear drawings, scheduling conflicts of different vendors and material shortages, the project manager might work with engineers and suppliers to implement clearer communication protocols and improve scheduling and inventory management.  This would result in smoother project execution and reduced costs.  If this sounds a bit new-agey for the rough and tumble world of construction, think again.

While the world of real estate, construction, and property management might seem far removed from the origins of Lean manufacturing principles, the philosophy of Genchi Gembutsu has proven remarkably adaptable, finding application in these complex and dynamic industries.  Let’s explore the surprising intersection of Japanese management principles with the American built environment where real companies have leveraged Genchi Gembutsu and its companion practice, Gemba Walks, to address some of their most pressing challenges.

Genchi Gembutsu: A Foundation for Continuous Improvement

Since Genchi Gembutsu emphasizes the importance of firsthand experience in problem-solving and decision-making, it encourages leaders to step away from their desks and venture to the “gemba,” the actual place where the work is done. This direct observation allows them to gather unfiltered information, identify issues at their root cause, and develop solutions that are based on reality.

The Gemba Walks, then, are structured visits to the “gemba” led by managers or executives. These walks involve actively engaging with employees, observing processes, and asking questions to gain a deeper understanding of daily operations and challenges. By fostering open communication and collaboration, Gemba Walks empower frontline workers and provide valuable insights for continuous improvement.

Have real-estate, construction, and property management companies in the US harnessed the power of Genchi Gembutsu and Gemba Walks?  Yes.  Here are a few success stories.

1. Turner Construction

Turner Construction Company, a leading construction management firm, recognized the inherent risks associated with their industry. To address these risks and prioritize worker safety, they adopted a culture of Gemba Walks. Senior leaders, including the CEO, regularly visited construction sites and engaged directly with workers. These walks served multiple purposes:

• Identified safety hazards.  By observing the work environment firsthand, leaders could identify potential hazards such as unsafe equipment usage, improper fall protection, or cluttered work areas. This allowed for immediate intervention and corrective action.
• Improved communication.  Gemba Walks fostered open communication between leadership and workers. Workers felt empowered to voice concerns and offer suggestions, leading to a more collaborative safety culture.
• Built trust.  Seeing senior leadership take a genuine interest in their safety fostered trust and increased worker engagement in safety protocols.

The results were remarkable. Turner Construction experienced a significant decrease in workplace accidents and injuries, creating a safer work environment for all employees. Additionally, the improved communication and trust fostered by Gemba Walks led to a more engaged workforce, further contributing to project success.

2. Greystar

Greystar, a prominent property management company, faced challenges in ensuring consistent quality across their vast portfolio of residential properties. Traditional methods of quality control, relying solely on reports and inspections, often resulted in issues being identified after the fact, leading to delays and rework. To address this, Greystar implemented a Genchi Gembutsu approach.

• Empowered on-site teams.  Regional managers and property maintenance staff were encouraged to actively visit units during various stages of the resident turnover process. This allowed them to identify potential quality issues, such as faulty appliances, unfinished repairs, or cleaning inconsistencies, in real-time.
• Immediate corrective action. Upon identifying an issue, on-site teams were empowered to take immediate corrective action, preventing the problem from escalating, and stopping it from impacting the resident experience.
• Data-driven decision making.  Observations from Gemba Walks were documented and analyzed to identify recurring issues and trends. This data was then used to improve training protocols for other communities, update maintenance procedures, and ensure consistent quality standards across the entire portfolio.

The results were evident.  Greystar’s resident satisfaction ratings soared, resulting in consistently high scores. By proactively addressing quality concerns through Genchi Gembutsu, they minimized rework, improved operational efficiency, and delivered a superior living experience for their residents.

3. JLL

JLL, a global commercial real estate services firm, used Genchi Gembutsu to address quality concerns and budget constraints in construction projects. Project managers conducted regular Gemba Walks, collaborating with contractors and subcontractors on-site to identify potential quality issues early in the construction process. This proactive approach allowed for timely corrective action, preventing costly rework and ensuring project completion within budget. By fostering a collaborative environment based on mutual respect and open communication, JLL was able to improve both project quality and efficiency.

4.  Skanska USA

Skanska USA — one of the largest, most financially sound construction and development companies in the country, with expertise in construction, civil infrastructure, public-private partnerships and commercial development — faced the ever-present challenge of managing projects within budget constraints. To address this, they adopted a collaborative problem-solving approach based on Genchi Gembutsu principles.

1. Cross-functional teams.  Skanska established cross-functional teams comprised of representatives from various departments, including project management, design, construction, and procurement. These teams regularly visited project sites together.
2. Cost-saving opportunities.  By observing the work process firsthand, the team was able to identify potential areas for cost savings, such as optimizing material usage, exploring alternative construction methods, and negotiating better terms with vendors.
3. Real-time decision making.  Issues and opportunities identified during Gemba Walks were discussed and addressed collaboratively within the team, allowing for faster and more effective decision-making.  This approach has empowered Skanska to deliver projects consistently within budget, even in challenging economic conditions. The collaborative problem-solving fostered by Gemba Walks has led to improved communication, increased innovation, and a more cost-conscious company culture.
4. Employee retention.  The initiative also fostered a sense of ownership and participation among employees and a culture of continuous improvement.  This sense of pride and purpose led to improved morale and reduced turnover.

Wider Applications in the Built Environment

The potential applications of Genchi Gembutsu in real estate, construction, and property management are many, even beyond the examples mentioned above. The philosophy can be used to:

1. Improve customer service: By understanding resident or client needs and concerns directly, companies can tailor their services and address issues more effectively.
2. Boost innovation: By observing the “gemba,” leaders can identify opportunities for improvement and encourage frontline workers to share their ideas.
3. Optimize resource allocation: Through firsthand observation, companies can identify inefficiencies and redirect resources towards activities that add the most value.

A Continuous Journey

As the built environment continues to evolve, Genchi Gembutsu presents a valuable framework for continuous improvement. By embracing this philosophy and actively engaging with the “gemba,” real estate, construction, and property management companies can navigate the complexities of their industries, fostering a culture of safety, collaboration, and excellence. The journey of continuous improvement, however, is never truly complete. As new challenges arise and the landscape of the built environment shifts, the unwavering commitment to “go and see for oneself” will continue to pave the way for innovation and success.

Quote of the Week

“Continuous improvement is better than delayed perfection.” Mark Twain

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