Manufacturing Leadership The importance and potential of effective people

management

Pablo Cussatti – VP Supply Chain Operations West

The Manufacturing Agenda

2

The Manufacturing Agenda

• Manufacturing is an equal balance of the right people, assets, and process

• Effectively building an World Class Manufacturing Team is the key to any plants success.

3

The People Challenge

• Define the leadership profile for the Manufacturing organization

• Diversity – Leading for the future.

• Build the Bench – assuring the right mix of talent on the team

• Strengthen existing team – Create processes to constantly calibrate against the leadership model (not just the results, but the how as well)

• Retaining talent in the organization – Rewarding through increasing responsibility

4

The Perfect Manufacturing Leader

5

The Engineer The Leader

Getting the right balance

• Balance functional capability and leadership capability

• We all want someone who can get our plants back up and running, but that might not be the right person to run the plant

• The challenge – Assuring the right leaders are in place may not always mean advancing our best technical people. But we need to assure our technical talent are valued as well.

6

Dean Standard Leadership Model

7

• Results Orientation

• Leading Change

• Innovation and Continuous Improvement

• Organization-wide Perspective

• Strategic Thinking

• Problem Solving and Decision Making

• Leading Talent

• Communicating Effectively

• Fostering Teamwork

• Accountability

• Flexibility and Adaptability

• Passion for Learning Guiding Principles

Integrity Company-wide POV

Excellence Communication

Personal Responsibility

Personal Leadership

Thought Leadership

Executional Leadership

Team Leadership

Technical Competency

• Technical Expertise • Work Standards • Ability to simplify

8

Fun

ctio

nal

Cap

abili

ty

Lead

ersh

ip C

apab

ility

Senior Leader or Executive (e.g. VP, SVP, EVP): A Senior Leader or Executive has at least one Senior Manager or Leader reporting to them, and has accountability for shaping and/or driving a function, platform or Dean-wide initiative

Senior Manager or Leader (e.g. Sr. Manager, Director): A Senior Manager or Leader has at least one Manager/Supervisor reporting to them

Individual Contributor (e.g. Specialist, Generalist, Analyst): An Individual Contributor is a member of a group or team and neither supervises nor is solely accountable for a process.

Manager or Supervisor (e.g. Plant, Sales, HR Manager): A Manager or Supervisor has direct accountability for people and/or processes

Leaders are made, they are not born. They are made by hard effort, which is the price which all of us must pay to achieve any goal that is worthwhile.

- Vince Lombardi

9

Summary of the Leadership Profile

• Defines the objectives of what you look for in a leader in your organization

• Creates a consistent message when calibrating your team on what they need to work on

• Eliminates the vague “leadership” reviews

10

DIVERSITY-

11

“It were not best that we should all think alike; it is difference of opinion that makes horse races.” Mark Twain

Diversity • Female Gap

– Over 50% of college recruits are female

– Availability of Manufacturing Pros are on decline

– Need to be cognizant of current environment

• Latinos – How many folks in your plants speak Spanish

exclusively?

– When you walk into the plants, do the frontline faces look like the management faces?

• Experience – Rookie – “Fresh perspective”

– Veteran – “Understands our business”

– Outside Pro – “Expertise we don’t possess”

12

Setting an example is not the main means of influencing another, it is the only means. - Albert Einstein

The Female Gap

• From 1970 to 2010 the percentage of females enrolling in college went from 36% to 58%. *

• Female percentage of the workforce during the “Great Recession” has risen to 50%!

• Manufacturing is trailing the trend.

13

14

6.49.0

12.5

15.517.8

20.122.3

24.4

4.7

1970 1980 1990 2000 2010* 2020* 2030* 2040* 2050*

Percent Hispanic of the Total Population in

the United States: 1970 to 2050

*Projected Population as of July 1

Projections Census

Source: U.S. Census Bureau, 1970, 1980, 1990, and 2000 Decennial Censuses; Population Projections, July 1, 2010 to July 1, 2050

Assuring Inclusion

• If you are to recruit the best talent, you must be inclusive

– You will not have the best talent if you exclude 50% of the population

• Inclusivity must be more than the interview process

– Exclusion is not always cognizant

• You must create a supportive culture

– Train leadership to be prepared

– Be open to understanding issues

• Candidates should be chosen on capabilities

– Diversity cannot be seen as a pass

15

16

It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change. - Charles Darwin

DIVERSITY - BUILDING THE BENCH

17

Building the Bench

18

High potential internal candidates

Experienced Players from the Outside

College Recruits

Building the Bench

• Veterans

– Identifying and growing current bench

• Communicate to the others gaps and how to get on the bench

• Don’t forget the frontline

• Rookies

– Campus Hire programs

• Free Agents

– Getting the right candidate

19

Building the Bench – The Veteran

Internal People Planning • Communicate the leadership model

• Let’s your team know you care about their career development

• Develop action plans to help team grow their careers

• Proactive approach to assure your position slates are identified before you have an opening

20

High potential internal candidates

Why it’s important

How to Keep Your Best Executives – Wall Street Journal • “The executives we surveyed

ranked opportunities to work on challenging tasks and to take on more responsibility higher than any other factor in career satisfaction.”

• WSJ October 29th 2009

21

Building the Bench – The Veteran

Frontline Development Program • Allows you to tap into a larger pool of talent

• Great pool for “contributes in place” personnel

• High retention rate of folks who move up from frontline

• High level of internal knowledge of process and culture

• Watch outs – Give feedback to those that apply

– Disciplined interview process to validate leadership capability

22

High potential internal candidates

Building the Bench – The Veteran

What they expect

• Understand the expectations

• Spend time thinking about their career desires

• Plan and support to get to the next level

• Treated fairly compared to new hires

23

How we deliver

• Define the leadership profile

• Robust People Planning process

• Individual Development Plans

• Openly available salary ranges

Building the Bench – The Rookie

Robust College Recruiting • Train recruits in your culture and

process from the ground up

• No “pre-defined” views of how things should work

• Great perspective from a fresh set of eyes

• Your leadership for tomorrow.

24

College Recruits

Fundamentals – Supervisory Skills Training, Continuous Improvement Training, Metrics and Measures Training, SOP Development Project Assignments – Each phase of the training should have a project and report out required to Senior Management

Building the Bench – The Rookie • Training for Success

– College recruit programs must be more than a week of on boarding

25

On Boarding

1 Month

• Plant Tour • Intro to Lab • Intro to

Maintenance • Plant Floor

Shadowing • Warehouse

Shadowing • Sales Call • Route Ride

with Driver

Lab Training

2 Months

• Basic Lab Testing • Testing incoming raw

materials • Line checks • Micros • CI Process

Maintenance Training

2 Months

• Shadow Line positions • Production Metrics • Line Efficiency • Processing Fundamentals • PM System Basics • Maintenance Planning and

Scheduling • Skill set training • CI Process

Warehouse Training

2 Months

• Service Metrics • Fundamentals of the order • Order Picking • Warehouse layouts • Route Rides • CI Process

Skill

s Le

arn

ed

Building the Bench – The Rookie

26

*Leadership

Skills

*Technical

Skills

Management

Skills

Year 1 Year 1 - 4 Year 6 - 8 Year 8 - 12

Functional Leadership

Year 4 - 6

• Quality Control Supervisor

• Maintenance Supervisor

• Production Supervisor

• Cooler Supervisor

• Plant Department Manager

- Production - Cooler Manager - Quality - Main. Manager

- Chief Engineer

• Network Ops Analyst

• CI Manager

• Engineering Manager

• HQ project roles in Engineering and Supply Chain

• Plant Designate

• Management Trainee

• Plant Manager

Plant Manager

Basic Operations

Skills

Accelerated Time Frame

Career Placement

Experience Gained

Position Titles

• Operations-Specific Functional Skills

• Team Management

• Broad leadership and technical management

• Broad leadership and influence management

• Complex field operational role or national initiative role

• Learning the Dairy Foundation

Skill Set Acquired

• Supply Chain Associate

• Written SOP and developed sustainment process

• Competent of performing each QC, Prod, Maint, and Whse Frontline Function

• GMP

• Datastream

• PM Process

• Frontline development and coaching

• Continuous Improvement Process

• FTE Mgmt.

• Proven Frontline Leadership

• Supervisor development and coaching

• Cost Mgmt.

• Capital Mgmt.

• Multi-departmental leadership

• Subject matter expert

• Develop Customer Focus

• Develop Leaders

• Drive Business Results

• Creates Organizational Impact

• Simplify the Agenda

Director

Year 12+

• Ops Director

• Engineering Director

• QA Director

• Director PMO

• CI Director

• Strategic Management

• Define Strategy

• Tactical deployment of strategy

• Development of Executives

Need to show them the path to success!

Building the Bench – The Rookie

What they expect

• Well developed training and on-boarding plan

• Access to executive management

• Career path for future development

• Reward and recognition

27

How we deliver

• Campus Hire development program

• On boarding Project presentations

• Structure path to executive management

• Campus reunion events

Building the Bench – The Free Agent

Benefits • Quickly bring knowledge and experience in that

your team currently does not possess

• Proven leadership in similar roles

• Can be a catalyst to Change Leadership

• Has seen the end game

Watch outs • Needs to learn culture, process and reporting

systems

• May create strife in local ranks

• May try to change culture instead of processes

• “The grass is always greener”

• High cost of entry

28

Experienced Players from the Outside

Building the Bench – The Free Agent Minimizing the Risk

Identifying candidates

• Stretch internals with known potential

– Better message for the organization

• Go with someone you know

– You already know their potential and experience

• Define the experience requirements

– Dairy, Batch, High speed packaging,

– DSD, Warehouse Delivery,

– Continuous Improvement, Six Sigma, TPM,

– Plant Management, Multi Plant, Direct, Indirect

29

The Interview

• Validate their experience meets your needs

• Stay away from standard interview questions

– These candidates have probably been coached

• Look for results along with accountabilities

• Ask for specific examples (names and position) and dig

– Ask follow-up questions

• Interview more than once, the second time with someone else

It’s still a 50/50 shot!

Building the Bench – The Free Agent On Boarding Plan

• 90 Days before the investment pays back

• Make sure in the first 90 days they can learn: – Metrics and reporting systems

• Don’t have them struggle to search for data while trying to acclimate to a new culture

– Cadence of Management

– Capability of their team

– Full knowledge of how the organization works • Think outside your box

– Shadow the best

• They must own their 90 day plan

30

RETAINING TALENT IN YOUR ORGANIZATION Calibrate, calibrate, calibrate

31

Define the call (their stretch potential)

32

Abbreviated Designation

Definition Description

TN Too New to Determine This employee has been with Dean Foods for less than six months (regardless of time in position).

R Redirect Not demonstrating leadership nor achieving results consistently

Is or needs to be placed on performance plan

Redirect or move out if not improved in 90 days

IN Improvement Necessary

This employee has not been able to either a) achieve results or b) demonstrate leadership ability in a consistent manner and needs to improve in either area before the next people planning review session.

CiP Contributes in Place This employee demonstrates the ability to achieve results consistently.

Not on slate for larger roles at present.

SP Strong Performer Experienced subject matter expert. Significant contributor to the profession. Difficult and costly to replace. Demonstrates ability to learn and grow into a broader functional role.

P1 or P2 Promotable This employee demonstrates exceptional ability to lead others and drive results and has the potential of advancing one or more levels in the future.

33

Sally Silo Plant Manager

Charlie Caser Operations Manager

SP

Hank Hammer Maintenance Manager

SP

Harry Hook Production Supervisor

CiP

Rachel Resin Production Supervisor

CiP

William Wrench

Maintenance Supervisor P1

Mark Moo QA Manager

IN

Present the teams

Focus on the Red, Blues and Greens Call out Diversity, Degrees and Campus Recruits (the rookies)

Communicate and calibrate with the team their call

• Identify opportunities and strengths focused around the leadership model

• Identify the “one big thing” that person needs to do to improve

• Calibrate at the presentation

• Communicate with team member individually and develop an action plan to improve

• Calibrate constantly

34

Isn’t this HR’s job?

35

• Who is best to define the capability of your team?

• Who do you think has more influence in your career, your boss or HR?

• Does any career discussion with HR sound like something you want to do?

People Planning Summary

• Creates a fair and open process for determining who gets promotions

– Eliminates the perception of backroom deals and favorites

• Allows internal candidates to understand what they need to do to get to the next level

– They now have control of their careers

• Reduces the perception that the only way to advance is to go to another company

– Can see how to get there

36

GREAT, WE DON’T DO THAT, WHAT DO I DO?

37

Self Evaluate

38

Article from Nov. 8th Bloomberg Business Week Three Types of People to Fire Immediately Want a more innovative company? Get rid of these folks. Today

Three Types: 1. Victims 2. Non believers 3. Know-it-alls

Don’t be one of the three types!

Ask for Feedback

39

• Tips on getting great feedback

– Respect:

• “Next week, I’d like to talk about …”

– Candor:

• “How would you rank me on …”

– Sincerity:

• “Don’t sugarcoat it … I want to improve”

– Follow-up:

• “Two months ago, we talked about…”

The “One on One”

• Once per month with each Direct Report

• Dedicate 1 hour for them to review their results, project updates, etc.

– Undivided attention

– Don’t answer phone, don’t review emails

• Calibrate on performance

• Congratulate good performance and calibrate on expectations

• Give and receive feedback 40

The People Challenge

• Define the leadership profile for the Manufacturing organization

• Diversity – Leading for the future.

• Build the Bench – assuring the right mix of talent on the team

• Strengthen existing team - Create processes to constantly calibrate against the leadership model (not just the results, but the how as well)

• Retaining talent in the organization – Rewarding through increasing responsibility

41

QUESTIONS?

42