ellish henry - mas2011 presentation

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    Eilish Henry

    Head of Practitioner Services, The Manufacturing Institute

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    2

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    Todays economic realities are forcingmanufacturers to improve quality,

    delivery, and cost simultaneously and ata more rapid pace than ever before.

    UK USA

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    Competing Priorities of

    Quality, Cost & Delivery

    Delivery Quality

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    The Triple Bottom Line

    Customers want more:

    People- Ethical businesses where people are treated

    with respect

    Planet- Environmental impact is recognised andscarce resources are carefully managed

    Profit- How it is made and not just how much

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    THE ROOTS OF THE SHINGO PRIZE

    RECOGNIZING OPERATIONAL EXCELLENCE

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    The mission of The Shingo Prize is to

    create excellence in organisations

    through the application of timeless,

    universal and self-evidentprinciples

    of operational excellence, alignment

    of managementsystems and the

    wise application of improvement

    tools and techniques across the

    entire organisational enterprise.

    Our vision is to be the Standard ofExcellence for every organisation.

    MISSION VISION

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    A World Standard in a Global Economy

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    1988 Honorary Doctorate,Utah State University

    January 8, 1909 November 14, 1990

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    GUIDING PRINCIPLES SUPPORTING PRINCIPLES

    PRINCIPLES OF OPERATIONAL EXCELLENCE

    THE SHINGO MODEL

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    THE VALUE OF HAVING RECOGNITION

    ROOT

    S

    1. DEFINE EXCELLENCE

    2. BUILD SUSTAINABILITY

    3. FOCUS ON TRANSFORMATION

    4. TELL THE TRUTH

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    OPERATIONAL EXCELLENCE MUST BE BAKED

    INTO THE CULTURE

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    ORGANIZATION CULTURE IS

    THE SUM OF ALL THE FORMS OF BEHAVIOUR, WHICH, OVER THECOURSE OF TIME, HAVE COME TO DEFINE THE WAY WORK GETS

    DONE IN AN ORGANIZATION..WHOEVERINFLUENCESTHEBEHAVIOUR,CONTROLSTHECULTURE.

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    LEADERS MUST BUILD CULTURE ON

    THINGS THAT LAST!

    Personality

    Programmes

    Tools

    PersonalValues?

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    CHANGING A CULTURE REQUIRES:

    CHANGING ROLES AND RESPONSIBILITIES

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    Senior LeadershipSenior Leadership

    TOOLSTOOLS

    SSPP

    SYSTEMSSYSTEMS

    TTPP

    PRINCIPLESPRINCIPLES

    TTSS

    OPERATIONALOPERATIONAL

    EXCELLENCE FOEXCELLENCE FOCOMMON FOCUSCOMMON FOCUS

    Here & Now Short-term

    Strategy

    Driving Performance

    TOOLSTOOLS

    SYSTEMS &SYSTEMS &

    SYS. FAILURESSYS. FAILURESManagersManagers

    AssociatesAssociates

    THETHE

    URGENTURGENT

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    Leaders Must Understand Reality

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    ONLY A CULTURE BUILT ON CORRECT PRINCIPLESONLY A CULTURE BUILT ON CORRECT PRINCIPLESIS SUSTAINABLEIS SUSTAINABLE

    Jon M. Huntsman Presidential Chair inLeadershipUTAH STATE UNIVERSITY

    Principles: Natural lawsimpersonal, factual, objectivePrinciples: Natural lawsimpersonal, factual, objectiveand selfand self--evident. (Timeless & Universal) (Covey)evident. (Timeless & Universal) (Covey)

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    LEADERS MUST GO BEYOND DEFINING:

    1. MISSION

    2. VISION

    3. VALUES

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    LEADERSLEADERSMANAGERSMANAGERS

    ASSOCIATESASSOCIATES

    ??????

    Values: Social norms.personal, emotional,

    subjective and arguable. (Covey)

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    They were your height, but thinner and better looking.

    You havent caught them yet, so obviously theyre smarter.

    TEAM WORKLOYALTY

    PRECISION

    INNOVATION

    VALUES

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    They were your height, but thinner and better looking.

    You havent caught them yet, so obviously theyre smarter.

    TEAM WORKLOYALTY

    PRECISION

    INNOVATION

    VALUES

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    LEADERSLEADERS

    MANAGERSMANAGERS

    ASSOCIATESASSOCIATES

    Ideal

    Principles: Natural lawsimpersonal, factual,Principles: Natural lawsimpersonal, factual,

    objectiveobjective and selfand self--evident. (Timeless &evident. (Timeless &

    Universal)Universal) (Covey)(Covey)

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    SUSTAINABILITY REQUIRES PRINCIPLES BE

    EMBEDDED INTO

    THE WAY WE THINK

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    (Keel)GUIDING PRINCIPL

    Mission

    Vision

    Core Values

    Strategic

    Metrics (KPI)

    (Rudder)

    Any Sailors?

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    Alignment

    Process

    People

    Results

    Lead with Humility

    Respect every Individual

    Focus on Process

    Embrace ScientificThinking

    Flow & Pull Value

    Assure Quality at the SourceSeek Perfection

    Create Constancy of Purpose

    Think Systemically

    Create Value for the Customer

    Think in terms ofcategorical

    principles.

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    Know-how" alone isn't enough!You need to

    "Know-why"!All too often, people visit other

    plants only to copy their tools and methods.

    -- Shigeo ShingoShigeo Shingo

    PRINCIPLESPRINCIPLES SYSTEMSSYSTEMS TOOLSTOOLS

    How weTHINK Know why

    How weBUILD/RESULTS Know how

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    THINKING

    Systems Drive Behaviour

    3 NEW Paradigms

    Relationship between Principles, Systems andTools

    Focus must be on BOTH Performance & Behaviour

    Systems Drive Behaviour

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    2nd Chance

    I am going to show you the combinations again in a

    slightly different arrangement and see if you can do

    better.

    1

    987

    65

    3

    4

    2

    The Value of a Systems Perspective

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    The Persistence of Systems

    Arocdnicg to rsceearch at Cmabrigde Uinervtisy, it

    deosnt mttaer in waht oredr the ltteers in a wrod are,

    the olny iprmoatnt tihng is taht the frist and lsat ltteer

    are in the rghit pcale. The rset can be a toatl mses and

    you can sitll raed it wouthit pobelrm. Tihs is buseace the

    huamn mnid deos not raed ervey lteter by istlef, but the

    wrod as a wlohe.

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    Alignment

    Process

    People

    Results

    Lead with Humility

    Respect every Individual

    Focus on Process

    Embrace ScientificThinking

    Flow & Pull Value

    Assure Quality at the SourceSeek Perfection

    Create Constancy of Purpose

    Think Systemically

    Create Value for the Customer

    Think in terms ofcategorical

    principles.

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    RESPECT EVERY INDIVIDUAL

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    LEAD WITH HUMILITY

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    SEEK PERFECTION

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    ASSURE QUALITY AT THE SOURCE

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    FLOW VALUE FOR CUSTOMERS

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    Results

    ?

    Leaders must develop a truly balanced scorecard

    - Results and Behaviours

    - Equal accountability for both

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    Ideal BehaviorIdeal Behavior

    GUIDINGGUIDING

    PRINCIPLESPRINCIPLES

    ANCHOREDANCHORED

    VALUESVALUES

    Ideal Behavior

    misaligned Behavior

    The Shingo Prize

    (Go & See)

    Objective Subjective

    Mission/Mission/

    VisionVision

    Objectives &Objectives &

    GoalsGoals

    misaligned Metric

    misaligned Metric

    Strategic Subjective

    Key Metric/s [Quality]

    Key Metric/s [Cost]

    Key Metric/s [Delivery]

    Key Metric/s [Morale]

    BEHAVIOR PERFORMANCE

    Actual Culture (Reality)

    misaligned Behavior

    (Go & See)

    DesiredCulture

    Actual Performance (Reality)

    Balanced

    Scorecard

    SystemsSystems

    SystemsSystems

    DRIVENDRIVEN

    Ideal BehaviorIdeal Behavior

    Ideal Behavior

    Key Metric/s [Quality]

    Key Metric/s [Cost]

    Key Metric/s [Delivery]

    Key Metric/s [Morale]

    OperationalExcellence

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    Learn How to Measure Culture Tell theTruth

    Go to the Gemba and learn to see (culture)

    Learn to ask the right questions Recognise Cause and Effect & teach others

    Annual assessment (Perhaps replace Attitude

    Surveys)

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    Without constantattention, the principles

    will fade. The principles

    have to be ingrained, itmust be the way one

    thinks.

    - Taiichi Ohno

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    There is no silver bullet! Rather thetransformation journey requires consistent,

    committed leadership and a deep

    understanding of the principles ofoperational excellence.

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    www.shingoprize.co.uk

    www.shingoprize.org