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LEAN Process Innovation & Sustainable Continuous Improvement… Our Most Formidable Competitive Weapons
Brought to you by:
Volume 02, Issue 10 May 18, 2015
CONTENT
THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE
5An important book
worth remembering
6Toyota to provide first
hydrogen-fueled pace car
7Helpful tips &
Building capability
2An introduction to
people-centred leadershipBob Chapman, president and
CEO of Barry Wehmiller shares the great realization that led to his remarkable success.
Produced by: Dave Hogg
Telephone: 519-741-9732
E-mail: [email protected]
Thank you to our partners:
The ATJTake…
Achieving sustainable results through peopleIt means knowing the difference between leadership and management
People, processes and technology! That’s all we have to work with to fashion our outcomes, and our wealth. And of
the three, the people element is the most critical. Within the realm of people, it is leadership — that ability to generate followers — that ultimately determines where we end up.
In conversations last week, it was verified yet again — that so many in responsible positions still use the words Leadership and Management interchangeably — when nothing could be further from the truth — their difference is as night is to day! For over two decades the Consortia movement has defined leadership simply as the ability to generate followers, and management as
the most effective way to integrate people, processes and technology (without waste) to achieve the organization’s vision (future desired state) and business objectives — while adding value as determined by the customer of course.
The differences are huge. Consider the focus of managers vs. leaders — it is: processes vs. people; facts vs. feelings; doing things right vs. doing the right things; doing things by the book vs. continuous improvement; lights fires under folks vs. stokes the fires within. We could fill the page with more stark differences, but Napoleon captured the essence of leadership best when he said, “Leaders are merchants of
It’s what we must get better at. It’s what will separate the winners from the losers in the future. And that future is immediately before us, shrouded with challenges like the mastery of: envisioning, continuously improving innovation, adaptability and sustainability led by leaders employing people-centred leadership
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THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE
hope”. It is leaders who give us hope by inspiring us with a vision of a future that’s expressed in words that give us a thirst for a new and better place.
Within LEAN, we must define words clearly to maximize the common understanding of them because we cannot afford misunderstanding and misalignment and the waste that it generates. When LEAN and Consortia thinking began to take hold — the most common definition of leadership that
emerged was the ability to generate followers. This is in line with the need for the simplest and clearest means of communicating to a wide range of people of different backgrounds, experiences, and origins, even though you may be speaking only one language.
At the Canadian AME/CME LEAN Manufacturing Conference in Winnipeg, MB this June, seven keynoters, who are accomplished leaders in their own right, will provide us with deeper insights to
help confirm or rebuild the visions we will need to align our resources to, so we can focus on winning in the increasingly global marketplace.
ATJ was given the opportunity to interview Bob Chapman, an internationally recognized manufacturing leader of 8,000 people. He is a unique individual who has put his belief in people-centered leadership into action. Read on to learn some of his intriguing perspectives.
An introduction to people-centred leadership Right now, let’s meet Bob Chapman, the president and CEO of Barry Wehmiller — a unique and very extraordinary $1.7B manufacturing company founded in St Louis in 1885 by Thomas J. Barry who opened a machine shop to provide conveying and transportation equipment to malt houses. Barry, and brother-in-law Alfred Wehmiller, soon expanded the product line with a machine that soaked and washed refillable bottles. From this beginning 130 years ago, the company now has 8,500 team members in 80 companies in 28 countries with over 100 locations
In sitting down to talk with Bob, ATJ did not know what to expect — but did understand that here is the leader
of a rare manufacturing company who has delivered a greater than 18 per cent Compound Revenue Growth return since 1987 — a company who refused to lay anyone off during the recession.
But why did he agree to speak at the Conference? A Conference targeted to SMEs? The answer came quickly, and revealed a crystal clear message rooted in human values and openness as he chuckled, “I am a practitioner”, and “You will find me where things are happening”. As we can see, from his comfortable seat aboard his tractor. It was stated so positively you could hear those internal voices that say things like ‘Hey, I under-stand this and it really makes sense’.
And at this point, no one thinks about the size of the organization — but just feels an eagerness to hear more of the genuine, simple and universal logic of his thinking.
Listening to a winning philosophyAs a leader, Bob is very quick to lay out the path ahead — the vision — of where our discussion will go. “We have worked hard to simplify the essence of the Barry Wehmiller philosophy and vision — and in my mind it states simply: everybody matters — with a pause for those words to sink in, he adds very deliberately “Extraordinary organizations treat people like family.”
What came next were five tag lines that did what good tag lines must do — and that is to illuminate the vision with even more clarity. When he finished,
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Brought to you by:Volume 02, Issue 10
May 18, 2015
THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE
the clarity revealed by the tag lines provided a complete package.
Everybody matters — Extraordinary organizations treat their people as family:
1. Everybody wants to do better — Trust them
2. Leaders are everywhere — Find them
3. People achieve good things big and small every day — Celebrate them
4. Some people wish things were different — Listen to them
5. Everybody matters — Show them
“I don’t know how to compress our message any more effectively than that but I believe that is the key message which fits with our belief in people, purpose and performance.”
Understanding the company“We’re more than just a successful capital equipment and engineering solutions firm. We’re an organization fiercely committed to improving the lives of our team members across the globe that we are entrusted with. By providing meaningful work in an environment of care and compassion, we send them home fulfilled by their time with us, rather than drained by it.
The image of an organization where everybody matters — truly — and everyone is treated like family, conjures up intriguing mystical images — so ATJ knew this would be more than just an interesting discussion. Bob’s been with the company for 46 years, and has been the President and CEO for more than 30 of those years. The Wehmiller culture is openly about people — with leaders who commit to care for, and touch and guide, the lives of those entrusted to the company. Their leaders welcome that responsibility as it brings everyone together around a purpose that inspires people to bring and share their gifts/talents to create value for all stakeholders. “It’s the fuel”, Bob asserts, “that allows us the opportunity to enable people to share their gifts and grow”.
The power of eulogy virtues vs. resume virtuesWhere did it begin? Bob’s awakening interest in ‘eulogy virtues vs. resume virtues’ occurred to him in university. It inspired him to focus on those things that impact life-quality, and impact the quality of the lives of others. To him, this was far more fulfilling and enabled him to suddenly see with clarity that the college curriculum was ‘all about me, my success, my education and my journey’ — the ‘resume virtues’. The concept of profoundly affecting others’ lives was never included in his college career. But he knew from his years of parenting experience that true success is actually measured by ‘how well one touched other people’s lives’. This gave him a new sense of meaning and purpose in life which is much of Barry Wehmiller today.
In his personal life, Bob remarried, which brought his three children into a new blended family with his new wife who had two children. He shares that when he and his second wife were blessed with another child — their new family of six became a great learning experience. As he put it “being a good steward, a good parent and a good husband — in a blended family, is yet another level of challenge to becoming a good parent to all.”
Understanding parenting and leadership Up to this point he harbored the traditional “business is business” and “family is family” thinking. But this came to an abrupt end in 2000 when it occurred to him that the leadership skills he needed within the company were identical to those he had learned in parenting. It was clear in his mind that what the business curriculum was teaching was wrong or incomplete.
“Everything I learned about parenting had to do with leadership. I realized that parenting was a stewardship given to us to care for the precious lives we were
blessed with through birth. In business it is no different as corporate leadership is about the stewardship of the lives that are entrusted to you every day. We prob-ably have a more profound effect on the lives of the people we work with because of the number of hours we are together.
“So I came to realize that it’s all about people — and with that — then came the realization from my management classes and my jobs in management, that our roles as leaders are not about managing. We can’t lead unless we inspire! The existing teaching is all about manage-ment and not about leading — because we are not taught how to inspire even though inspiring is a territory of leaders. Our role as leaders is not to manage anybody — it’s to inspire. And to do that, we create a vision (a future desired state) with a clear purpose for bringing people together where each is expected to bring their skills and talents to try to achieve something that’s meaningful to us all.
“Whether we work for the Metropolitan Sewer Company, St Joseph’s Hospital or a Pizza shop — coming together as a group with a purpose is where it all starts. It is urgent we share that purpose and encourage people to contribute their gifts and talents, because by so doing – and by openly appreciating them for doing that — we send them home fulfilled.”
“But the other key we learn”, added Bob, is “The way we lead in our organiza-tions affects the lives of those entrusted to us — and we must remember these people are leaders in their families. We know this, because as we begin teaching leadership, almost 90 per cent
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THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE
of the feedback is all about how their new skills will affected their family life! The dis-cussions generate tremendous emotional outbursts when we teach leadership classes. But you get very little emotion in management classes — because it does not touch your heart.”
Bob spoke slowly and with meaning, “Until then, it never occurred to me that the way in which we engage people, train people, allow people to express themselves, affects the way in which they go home which then affects their families. I used to believe that ‘business was busi-ness’ and ‘family was family’ — and there was no bridge! I felt back then that almost everyone else did too, and many were counseled that way during their careers.”.
This brings us back to the foundational concept that everybody matters — which summarizes the essence of the book Bob is the working on for release at the AME International Conference in Cincinnati this October.
The Wehmiller take on LEANATJ asked Bob, “Does LEAN not drive us in a similar direction?” To which he paused and said – “In some ways no. People want to know who they are, and know what they do matters – LEAN is powerful if it’s deployed from the right reasons and it constantly shows them that they matter.”
He first experienced LEAN when Jerry Solomon was initiating LEAN in one of the Wehmiller plants. “When Jerry said, ‘LEAN is about people — all about people,’ we listened and adapted the guiding forces of leadership in our organization — to use the concepts of LEAN as he said — with the understanding it was not focused to: improve quality; reduce waste; improve quality, reduce waste, improve lead times and not to enhance productivity. We embraced it for one reason only, and that was because it was to be all about people. After all, that’s what Jerry had told us.”
“The first steps into LEAN were about improving processes and eliminating waste — to improve quality, cut costs
and improve profitability to have a competitive advantage over others. Unfortunately I think everyone is embrac-ing it for the wrong reasons. Jim Womack said 97 per cent of the companies who engage in LEAN fail to become LEAN companies, and he cannot understand why LEAN ‘hasn’t changed the world’.
“LEAN is a very powerful idea — but he should’ve called it ‘Listen’ — because, the power of LEAN is that it creates a process by which we can listen to our people; to allow them to express their thoughts and be a part of making things better so they can go home at night with a sense that they matter.”
Bob continued, “We have paid people for years for their hands — and they would have given us their heads and their hearts for free if we had only asked them. But we did not know how to ask them. We are not taught how. LEAN creates a way to ask people — and it cannot be about waste elimination, it has to be about ‘human thriving’ because people desperately want to feel valued! LEAN gives us a process by which we can value people.
“Back in 1997 I was raising the question of why can’t business be fun? Why do we play soccer and kick a ball — when it doesn’t make the world a better place? Although it is an outlet for fun and competition with an all-important score-board everyone understands. And we need to know the score. In business, so often a tarp is placed over the scoreboard while folks are expected to ‘just do their jobs’. However, the real key was found with when we brought parenting principles into the concepts of leadership. And that includes, caring, transparency, sharing, celebra-tion and recognition of achievement, as well as modeling behavior, tough love, honesty, trust etc. It is not about driving waste out of your business — it’s about the right human measures that inspire people to greater heights.”
Consortium members may recall the 1992 book by Jack Stack, The great game of business because he was one of
the early pioneers of open-book man-agement which Bob Chapman and Barry Wehmiller have carried so much further in their unique culture as they too share their results with everyone so everyone knows the company scoreboard, where they are and where they stand in an environment of support and growth.
“Think a moment,” Bob asked, “Who goes to work motivated to eliminate waste?” In his view there is no question that a lot of people go to work to be vali-dated. He feels there is a desperate need in the world for validating people. “People want to know who they are, and what they do matters! And LEAN is a powerful way, if it’s deployed from the right reasons, to show people that they matter.”
ATJ regrets we can’t cover all of the approaches that make people-centered leadership work and be sustainable. Those attending the conference will hear the full presentation by Bob and will have an opportunity to corner him. Below there are two links to Berry Wehmiller where much of this discussion exists and a lot more. There are also links to the CME/AME Conference — and a very thought provoking link to a TED Talk on resume value vs. eulogy values. In closing here is Bob Chapman’s take-away message.
Everybody matters — Extraordinary organizations treat their people as family.1. Everybody wants to do better — Trust them2. Leaders are everywhere — Find them 3. People achieve good things big and small
every day — Celebrate them4. Some people wish things were different —
Listen to them5. Everybody matters — Show them
At Wehmiller, Bob says without any hesitation, “We believe in people, purpose and performance.”
Bob’s Keynote: 8 a.m., June 3rd Canadian Regional AME/CME LEAN Conference, Winnipeg
Website: www.LEAN2015.com
Resources: 1) http://www.barrywehmiller.com/ 2) http://trulyhumanleadership.com
3) http://www.ted.com/talks/david_brooks_should_you_live_for_
your_resume_or_your_eulogy
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THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE
An important book worth remembering In Search of Excellence?If you do, you will remember Tom Peters as the man who got many leaders started. And he is still around today over 30 years after co-authoring the book In Search of Excellence with Robert H. Waterman, Jr. Yes, he is still travelling the world inspiring people and was in Edmonton, AB last year doing just that. Now if you are ever looking for quotes — and free access to Tom’s PowerPoints, you are welcome. He has just the website for you and me at: http://excellencenow.com/. Take some time to sit quietly and think about each of the 19 E’s of Excellence he sets out. But be careful, for by the time you get beyond the first dozen, they may begin to blur. It’s like what happens when you visit too many plants and read too many books before actually doing something.So scan these for the value they bring and especially for those that resonate with you. Some have committed, before they start, to come away with only one action item. So listen for the one that will make a difference that matters — and attack it. Focus on it every day in some way for a month. You will still have time to get your 16 tons of coal out. When you think you have good value from it, go get another
If not excellence, what? — If not excellence now, when?Here are Tom Peters’ “19 E’s” of Excellence today!1. Enthusiasm ............ Be an irresistible force of nature!
2. Energy .................... Be fire! Light fires!
3. Exuberance ............ Vibrate — cause earthquakes!
4. Execution ............... Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”
5. Empowerment ....... Respect and appreciation! Always ask, “What do you think?” Then: Listen! Liberate! Celebrate! 100 per cent innovators or bust!
6. Edginess ................ Perpetually dancing at the frontier, and a little or a lot beyond.
7. Enraged ................. Determined to challenge and change the status quo!
8. Engaged ................. Addicted to MBWA/Managing by wandering around. In touch. Always.
9. Electronic .............. Partners with the world 60/60/24/7 cycle (60sec/60min/24hr/7 days — every second of every week counts) via electronic community building and entanglement of every sort. Crowd sourcing/doing power!
10. Encompassing..... Relentlessly pursue diverse opinions — the more diversity the merrier! Diversity per se “works”!
11. Emotion ............... The alpha. The omega. The essence of leadership. The essence of sales. The essence of marketing. The essence. Period. Acknowledge it.
12. Empathy .............. Connect, connect and connect with others’ reality and aspirations! Walk in the other person’s shoes — until the soles have holes!
13. Experience .......... Life is theater! Make every activity-contact memorable! Standard: “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.
14. Eliminate ............. Keep it simple!
15. Error-prone .......... Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff and make some more booboos — all of it at the speed of light!
16. Evenhanded......... Straight as an arrow! Fair to a fault! Honest as Abe!
17. Expectations ....... Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” Amen!
18. Eudemonia .......... Pursue the highest of human moral purpose — the core of Aristotle’s philosophy. Be of service. Always.
19. Excellence ........... The only standard! Never an exception! Start now! No excuses! If not excellence, what?
If not excellence now, when?
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THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE
Toyota to provide first hydrogen-fueled pace car
MSN: Fri, 04/24/2015 — 10:28 a.m., The Associated Press
It is here. This is the new game-changer that we talked about in the December 15 Issue of the ATJ eNewsletter. With
little doubt it will provide more stress for the energy sector and add yet another component to the energy transformation underway. Now with Honda and Hyundai’s Tuscan (FCV)’s being realities, the bar is rising.
A hydrogen-fueled vehicle will lead the field at a NASCAR race for the first time when a 2016 Toyota Mirai serves as the of-ficial pace car Saturday night at Richmond.
The midsize sedan uses no gasoline and emits only water vapor. The electric vehicle is powered by hydrogen, refuels in about five minutes and travels up to 300 miles on one tank. It goes on sale in California later this year, with expansion planned.
Ed Laukes, vice president of marketing for Toyota Motor Sales US, said the manufacturer continues to use NASCAR as a vehicle to “showcase our innovation and environmental leadership.”
The Toyota Camry Hybrid was the first hybrid vehicle to pace a full NASCAR race when it was used at Charlotte in 2009.
CANADIANLEANAME/CME 2015
CONFERENCE
• 7 KEYNOTES • 18 TOURS • 16 WORKSHOPS
LEAN2015.COM
JUNE 1-4 WINNIPEG MANITOBA
Value Stream 3: PeopleEngaging your people. Hear how to create an environ-ment in which team members find fulfil-ment and inspiration.
Value Stream 4: PerformanceLearn from real-life success stories of how organizations have dramatically improved operational performance.
Value Stream 1: LeadershipHear examples how strong leadership led to success-ful lean enterprise transformation.
Value Stream 2: ProcessesLearn how to gain the involvement of every team member, through daily improvement activities linked to business strategy.
• 36 PRACTITIONER PRESENTATIONS • 4 VALUE STREAMS
For more information visit: www.LEAN2015.com
Over 500 now Registered!
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BUILDING CAPABILITY
Brought to you by:Volume 02, Issue 10
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THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE
Thought adjustments often come from quotes that resonateRead and think
Ü If your commitment is not to simplicity, then you are deliberately limiting the number of people who can participate. To be world class we need everyone.
98 AME Simplicity Conference
Ü “Just imagine the improvements you could make if everything was made so simple that everyone could understand.”
Robert Kerr
Ü Be willing to learn from others… You cannot live long enough to make all the mistakes yourself.
Ü “Think processes — think data.” But understand, that data is the voice of the process speaking to you… if you would only listen. And every defect is delivered from a process perfectly designed to deliver that defect. Moral? Attack processes — not people!
Ü “Change the thinking - and the processes will look after themselves.”
J Kirby
Ü LEAN thinking means changing the thinking from focusing on the results… to focusing on the right process because they will provide the right results.
Books: ..............................1.The Great Game of Business: The Only Sensible Way to Run a Company, Expanded and Updated 2013. Any book that Jim Collins proclaims as “Inspired and inspiring — A classic” is worth looking at — especially one that advocates cultural transformations founded on trust, openness and transparency. This book began the Open Book management style in the mid 90’s where he taught employees to read his financial data to reveal to them the state of the company. It was a new kind of transparency and openness that involved his entire workforce. http://www.amazon.com/
2.The Goal: A Process of Ongoing Improvement, Eli Goldratt, 1984. This book is recognized as one of the most important business books ever written with over 3 million sold. It is a novel about a plant manager facing the closure of his plant. Managers and leaders at all levels are still buying this book. Bob Kerr, a keynoter for the Winnipeg conference identifies it as the publication that most impacted his thinking as a manufacturer. If you have not read this book yet — get it! You will always be meeting people who will refer to it plus you will use the skills it delivers. www.ocapt.com — ATJ Rating: 5
Events: ..............................1.2015 AME/CME Canadian LEAN Conference, June 1–4, Winnipeg, MB Companies will be sending teams to this practitioner-to-practitioner LEAN conference to bring home real change to their plants. Best Practices, Plant Tours, Workshops and Networking with each other will help many to find the answers they seek. The program is now complete — check out the opportunities at: www.LEAN2015.com
2.October 8–9, 2015 10th Annual LEAN Accounting Summit – And – With the inaugural LEAN Management Summit, Jacksonville, FL. Two integrated conference for the prices of one http://LEANaccountingsummit.com/
3.October 19-23, 2015 Annual AME International LEAN Conference, Cincinnati, OH With John Ratzenberger of Cheers, as the Honorary Conference Chair (He is not the Cliff you remember, he is a manufacturer). http://www.ame.org/cincinnati Check out the Canadian ShawCor video for the value one Canadian company found at this event in the past. This is now the largest LEAN conference in the world.
