Introduction to Obeya Method

What is Obeya?

• Obeya is a visual management method used for cross-functional communication, cooperation, and decision-making.
• The term "Obeya" is Japanese for "big room," meaning an open office space with no interior walls.
• The main purpose is to share information about a project or business operation to enable rapid decision-making and collaboration.
• Not just about having charts on walls; involves principles, processes, and routines.

Origins of Obeya

• Originated from lean product development, particularly notable in Toyota in the 1990s.
• Toyota used Obeya to speed up design and launch of new automobiles, reducing costs and problems post-launch.

Use Cases

• Lean project management
• Lean product development
• General business operation management

Benefits of Obeya

1. Reduces unnecessary or repeated discussion
2. Reduces information defects between functions
3. Exposes assumptions and uncertainties
4. Enables faster consensus
5. Creates an environment for leadership development

Principles of Obeya

• Focusing on vital priorities
• Keeping commitments to customers
• Setting clear targets
• Meeting based on well-defined agendas and routines
• Making problems visible and addressing root causes
• Making decisions based on facts and reasoning
• Learning from mistakes and capturing lessons learned

Mechanism and Process

• **Agenda of a typical Obeya meeting: **
  1. Check current situation (target vs. actual)
  2. Identify gaps/problems (red status metrics)
  3. Review problem analysis or issue breakdowns
  4. Present decision-related issues and recommended actions
  5. Commit to actions to address top priorities
  6. Record decisions and lessons learned
  7. Close with thanks and continue cross-functional exchange

Best Practices

• Meetings should be held in a structured space with information on walls
• Should manage to bring people together for information sharing, fostering relationships, and trust
• Not merely about digital transition but reinforcing in-person communication
• Meetings typically last 1 hour, less than 2% of a 40-hour work week, improving productivity for the remaining time

Final Thoughts

• Obeya should be more than just holding a meeting in a big room; it involves adhering to shared values and principles
• No organization is perfect, but practicing the Obeya process will improve belief in these principles
• Useful to make guiding principles visible at the start of your Obeya process

Next Lesson: Specific Example of Obeya Process

• Focus on product development team, layout of room, type of information, and meeting progress