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Love and Lean

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What should a people-centric culture look like? George Saiz, current president and CEO of AME, shares insights on how you can approach that and gives examples of how employees have responded, including the development of a six pillar process to encompass the creation and sustaining of a people-centric culture. Hear how to equip your engaged employees with the tools of lean to achieve outstanding business results with examples of building A3 thinking into the DNA of the organization.

Publié dans : Business
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Love and Lean

  1. 1. Love & Lean George Saiz President & CEO Association for Manufacturing Excellence
  2. 2. Early Years • First Job – General Helper @ $2.00/hr. • Early management thoughts – “Create an environment where they don’t want to miss what’s going on” • Education at night (BSBA, MBA) • General Helper to General Management – (9 promotions in 17 years) $2.25/hr.!
  3. 3. Introduction to Lean • 1992: • Lot size of 1…Bottlenecks (Herbie) • Lego Simulation
  4. 4. Love & Lean - Overview • Journey towards developing a People-Centric Culture • Connecting the heart of engaged employees with the tools of Lean • Results you can see • Summarize what has been learned
  5. 5. Purpose To be a TEAM Dedicated Innovative Solutions Improve Customer Outcomes
  6. 6. June 2013 1st AME CEO Summit on People-Centric Leadership A culture where every day everyone goes home fulfilled by pursuing excellence and where everybody flourishes.
  7. 7. People-Centric Leadership 3 key takeaways + 1: 1. Very intentional efforts towards employees 2. “Entrusted” 3. PCL looked different at each company Overriding thought: we have their hands, but we could have had their minds & their hearts if we had just known how to ask
  8. 8. Self Examination 1. Great programs for employees – episodic in nature – Quarterly All Employee Meetings – Picnic, Halloween Party, Christmas Party, Chili Cook-off, Ice Cream Truck, Hot Dogs – Recognition – Company Bucks, Living Our Mission – Hands-on Product Training
  9. 9. Self Examination 2. Leadership training consisted of educating managers to go out and do something to our employees – 6 one-day trainings / year on leadership 3. We never asked our employees what they wanted!
  10. 10. The Trail after their Minds & Hearts
  11. 11. Leadership Training - February 2014 What will people-centric look like here? • 42 leaders gathered – top management to production leads • 3 components of the day – Colonel Arthur Athens: “What’s love got to do with it?” – Dissect his message and explore the behaviors of people-centric leaders – Go to the Gemba…ask the employees what should PCL look like here?
  12. 12. Synthesized the day’s data… • Communication • Care • Alignment • Development Goal Statement established: “Engaged when we are here… fulfilled when we go home
  13. 13. New Name “People-Centric Culture” • Why Culture: – Leadership is really a relationship – Goal is to educate both sides of the equation – Strove to make it daily…not episodic – Wanted it to be employee driven
  14. 14. Communication Skills Training Seven Interlaced Modules
  15. 15. How one leader reacted…
  16. 16. C A R E
  18. 18. Line of Sight Evolution Teams and Framework Company Culture, Strategic Framework, Teams and Functional Performance Plans Introduced Tracked, Functional Area Plans Driven by Routine Follow Up Focused on Results (Company, Operational, Individual) AME Hitting the Target!!! Independent Units Focused, Clear Business Direction Behaviors Identified and Organization Energized Smart and Sharp, Lean and Mean Vision and Mission Driven
  19. 19. Development, Benchmarking & Wellness Pillar • Development • Benchmarking the Best • Wellness Program • Mentoring & Coaching • Autoliv, Danaher, AME • Lincoln Industries Model Pillar • Development • Benchmarking the Best • Wellness
  20. 20. Minds & Hearts…to Hands • Equip all employees with a standardized problem solving tool – A3 • How? – Trained all employees in the A3 process – Hands on workshop with real problem tackled – 3 year incentive plan launched
  21. 21. A3 Incentive Plan & Evolution • Payout if overall company goal achieved and individual goal achieved • Year 1: One A3/employee/quarter – “On anything” • Year 2: Two A3’s/employee/quarter – Department identified focus area of improvement • Year 3: Three A3’s/employee/quarter – Introduced Team credit
  22. 22. Added in “2 Second Lean” • Department read “2 Second Lean” as a team • All team members – 15 minutes daily at beginning of shift • On my walks I reviewed their A3 submissions • Motivated me to start daily “2 Second Lean”
  23. 23. One of my “2 Second Lean” Improvements 2 Second Lean – 09/15/14 BEFORE AFTER Business cards in folder Cards stored electronically through App
  24. 24. A3 Results A3’s become the standard problem solving tool Everyone is thinking “root cause” and asking…”what problem are we trying to solve?” Over 1200 A3’s completed in Year 3!
  25. 25. Shining Example • Over that time period, reduced COGS by $1.8M annually on a single product through incremental improvements Minds…Hearts…Hands
  26. 26. Another Example of Results – Autoliv • 100,000 Kaizens in one year with 1100 employees – ~91 completed Kaizens per employee! • In 2012, largest plant had 5X Productivity of 1995 with 3X product complexity
  27. 27. Copyright © 2016 Gallup, Inc. All rights reserved. HERE’S HOW Engagement Links to Business Outcomes and why it Matters 28 -37% -25% -65% -28% -48% -41% -41% 10% 21% 22% -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% Business units in the top quartile of engagement have 21% higher productivity than their bottom quartile counterparts and 48% less safety incidents. Turnover Absen- teeism High- Turnover Orgs. Low- Turnover Orgs. Shrinkage Safety Incidents Patient Safety Incidents Quality (Defects) Customer Metrics Produc- tivity Profit- ability Meta Analysis Outcomes: Top vs. bottom quartile work units
  28. 28. Firms of Endearment (FoE) Investor Returns Over Time
  29. 29. Summary • People-Centric Leadership – where everybody everyday flourishes • Leaders are “entrusted” with these lives • People-Centric Leadership will look different in each company • Minds…Hearts…Hands
  30. 30. Summary (cont’d) • Current State of Leadership / Training: – Episodic engagement – Only educating half of the relationship – Never asked our employees what they wanted • Shared the 6 Pillar approach: – Communication, Care, Alignment, Mentoring & Coaching, Benchmarking the Best and Wellness
  31. 31. Summary (cont’d) • Equipping, Incentivizing, Turning Loose! • A3 Progression 1,200 completed in one year! • Business Results that differentiate you from the competition!
  32. 32. Wrap Up • Enterprise Excellence + People-Centric Leadership / Culture can transform your company and the lives of your employees • The transformation of your company cannot happen without the transformation of your employees!
  33. 33. One Last Quote “Employees are not our company’s greatest asset…they are our company!” Bob Pritzker The Marmon Group / Colson Associates
  34. 34. Thank You! Your opinion is important to us! Please take a moment to complete the survey using the conference mobile app. Session No: ThP/42 Love & Lean George Saiz AME gsaiz@ame.org