the impact of a company's culture on lean intiatives
TRANSCRIPT
The impact of a company’s culture
on LEAN initiativesKirk Hazen
Continuous Improvement ManagerLincoln Industries
Agenda
• Who we are• Building a culture of trust• Architecting a Talent Based Organization• How a great culture impacts LEAN• Closing remarks
Who we are• One of the largest US independent finishing company
• Founded in 1952 • 550 PEOPLE in a 24/7 operation• Revenue in excess of $100 million• A decade of 20% annual growth• 40+ finishing processes
• Process and quality driven• TS 16949 and ISO9001 certified• ISO14001 certified
• Blue chip customer list:• Harley-Davidson• Pella Corporation• Maytag• Tenneco Automotive• PACCAR• Freightliner
• Who we are• Building a culture of trust• Architecting a Talent Based Organization• How a great culture impacts LEAN• Concluding remarks
“No one cares how much you know until they know how much you care.” Author Unknown
Wellness Program
• “Go Platinum” – medal categories for wellness achievement including a platinum invite for 14,000 ft mountain climb
• Wellbucks – financial incentive for wellness participation
• Weight management (continuous offering)
• Tobacco cessation (continuous offering)
• Mayo Clinic newsletter for all people
• “Wellness Wednesday”
• Gym reimbursements
• Consumer driven health care
• Tobacco-free health insurance discounts
Communication
• One Company - One Voice meetings
• Roundtable meetings
• CHAMPS Newsletter
• Profit Sharing Letter
• Daily Plater
• Pre-shift meetings
Photo from one company one voice or roundtable
Measurement tools
• Individual Opinion surveys
• Departmental surveys
• Strategic supplier survey
• Gallup customer survey
• Great Places To Work® Trust survey
Recognition programs
• Monthly Champions events• Annual Night of Champions• Bright Ideas• Service recognition• Safety recognition• Environmental• Wellness• Quality• Birthdays and anniversaries
Personnel growth
190
475
550
450425
350300
240
160
0
100
200
300
400
500
600
1999 2000 2001 2002 2003 2004 2005 2006 2007
Personnel Growth
Projected
Sales growth
102
82
18.2
7770.1
53.645.5
35.328.3
23.919.815.9
0
20
40
60
80
100
120
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Sales Growth
Projected
In M
illion
s
Financial results
Companies with great cultures out-perform
other companies.
Financial results“100 Best” vs. Stock Market 1998-2005
0%
5%
10%
15%
20%
"100 Best"Reset
Annually
"100 Best"Buy and Hold
S&P 5000 Russell 3000
What makes a LEAN culture?• Innovation
• It’s not only a “Just do it!” mentality – it takes thought, too
• Prioritize changes• Start with what you can change or affect• Understand problems before debating solutions
• Teamwork and Education• Teach rather than just solve problems yourself
• Passion for Culture• Every individual is engaged and able to see the goal
LEAN Enterprise
LI LEAN Vision Statement:LEAN is the relentless pursuit of eliminating waste as
characterized by the ability to SEE it, the courage and willingness to CHANGE it, and the discipline to SUSTAIN improvements.
LI LEAN Mission Statement:LEAN Enterprise will be accomplished through Educating
to SEE waste, providing the System to CHANGE it, and the Leadership to SUSTAIN improvements.
• Who we are• Building a culture of trust• Architecting a Talent Based Organization• How a great culture impacts LEAN• Concluding remarks
Lincoln Industries people
“People making a difference.”
“Those who build great companies understand that the ultimate throttle on growth is not markets, or technology, or competition, or products. It is one thing above all others: the ability to get and keep enough of the right people.”
Jim Collins, Good to Great
Talent Based Organization
Vision:
“An organization with the right people, in the right seats, fully engaged andsuccessful in what they do to achievegreat results.”
Lincoln Industries TBO Process
Beliefs& Drivers
Identification
Selection
Integration
Learning &Development
Measure & Assess
Retention
Company Beliefs & Drivers• Beliefs
– Our people and their unique individual talents are valued– Appropriate recognition motivates our people to be successful– Leaders create value– Innovation creates continuous improvement– Profitability ensures the survival of our company– Positive relationships build loyalty– Honesty is essential in all transactions– We create value for our customers– Wellness and healthy lifestyles are important to our success
• Drivers– Quality in everything we do– Productivity improvement is a continuous process– On Time Delivery because our customers depend on us– A safe working environment is our commitment to each other– Environmental responsibility is our commitment to our communities– People development because our people create success– Company growth is the result of providing a superior service– Value-added service means doing more for our customers
“Selection vs. Hiring”
Talent Based Organization
Individual Lincoln Plating Opportunities1. Fit = Culture: Beliefs & Drivers
2. Talent = Hardwiring, Natural Strengths
3. Skill = Teachable, Experience, Education
Project Engineer“Miss”
Business Development“Miss”
Area Leader“Hit”
Individual Opportunity
Area Leader
• Fit, talent and skill – in that order• Select before hiring – all the time, every time• Become obsessed with getting and developing talent• Develop a talent mind set with those you manage• Play offense
Talent Based Organization
Weak Talent Literacy Strong
Talent Audit
• A formal process and tools for conducting an audit of Fit, Talent and Skill for all Lincoln Industries people.
• Drive decisions and actions that better align people to positions to increase organizational effectiveness.
• “Fit” with other people systems – Selection, Performance Management, Vision College – skill training and talent development.
HT
HK/S
HT
LK/S
LT
HK/S
LT
LK/S
Low High
High
Talent Based Organization
Talent
Kno
wle
dge/
Ski
llsTalent Audit - Human Capital Balance Sheet
HT
HK/S
HT
LK/S
LT
HK/S
LT
LK/S
Hardwiring talent audit
• Right seat discussions
• Aggressive Performance Improvement Plans
• Manage out
• Leverage skills
• Technical/Functional
development
• Teacher
• “Step Up”
• PPAT
• IDP’s
• Plan next move(s)
• Compensation
• Skill training and development assignments
• Who we are• Building a culture of trust• Architecting a Talent Based Organization• How a great culture impacts LEAN• Concluding remarks
How does a great culture impact LEAN?
• Right people on the bus — people that fit and can bring innovative ideas to the
table
• Strengths-based management – provide people with the ability to do what they do
best
• People engaged at all levels
• People ready to make a difference — ready to implement LEAN tools
• No fear of displacement due to improvements – managements commitment to our
people
• Collaborative commitment to Teamwork
• Open Door/Open Book
• Removal of Assumed Constraints
LEAN tools used
• Value stream (3 day event)• Formal week (5 day event)• Informal huddle (shop floor get together)• Fast break team (1 day event)• Continuous Improvement Project (CIP) Teams (months)
Kaizen could be a group of people looking for any creative solution to a particular problem; or it may be a week long event focused on a particular BCI element.
Method of deployment• Determine product families – Similar products or product flow
paths
• Value Stream Map– From receipt to cash
• Identify Kaizen bursts – Put implementation plan in place
• Perform ALL Kaizen events identified – Document, Document, Document
• Follow Through – 30/60/90 day reviews and countermeasures
• REPEAT PROCESS
• Who we are• Building a culture of trust• Architecting a Talent Based Organization• How a great culture impacts LEAN• Concluding remarks
Critical success factors• Right people in the organization
• Right position for each individual
• Allocation of resources and support
• Right people involved on LEAN event
• LEAN training
• Recognition and celebration
• Follow-through and sustainment
Going forward for LI
• LEAN Enterprise deployment
• TBO building
• LEAN training
• Continued success celebration
Conclusion
Questions or Discussion