Leading your talent acquisition team through change | Talent Connect 2016
The impact of a company's culture on Lean intiatives
1. The impact of a
company’s culture
on LEAN initiatives
Kirk Hazen
Continuous Improvement Manager
Lincoln Industries
2. Agenda
• Who we are
• Building a culture of trust
• Architecting a Talent Based Organization
• How a great culture impacts LEAN
• Closing remarks
3. 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
4. • Who we are
• Building a culture of trust
• Architecting a Talent Based Organization
• How a great culture impacts LEAN
• Concluding remarks
5. “No one cares how much you know until they know
how much you care.” Author Unknown
6. 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
7. 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
13. 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
14. 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
15. 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.
16. • Who we are
• Building a culture of trust
• Architecting a Talent Based Organization
• How a great culture impacts LEAN
• Concluding remarks
18. “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
19. Talent Based Organization
Vision:
“An organization with the right people,
in the right seats, fully engaged and
successful in what they do to achieve
great results.”
20. Lincoln Industries TBO Process
Beliefs
& Drivers
Identification
Selection
Integration
Learning &
Development
Measure &
Assess
Retention
21. 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
22. “Selection vs. Hiring”
Talent Based Organization
Individual Lincoln Plating Opportunities
1. 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
24. • 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
25. 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.
27. 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
28. • Who we are
• Building a culture of trust
• Architecting a Talent Based Organization
• How a great culture impacts LEAN
• Concluding remarks
29. 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
30. 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.
31. 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
32. • Who we are
• Building a culture of trust
• Architecting a Talent Based Organization
• How a great culture impacts LEAN
• Concluding remarks
33. 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
34. Going forward for LI
• LEAN Enterprise deployment
• TBO building
• LEAN training
• Continued success celebration
Good Morning, my name is Kirk Hazen. I work at Lincoln Industries which is located in Lincoln, Nebraska. I would like to take a second to provide you with my background and then get into the breadth of the presentation.
First of all, I would like to thank Jeff and the AME Council for putting the conference together and inviting me to be a part of this experience. I am always glad to speak to the experiences of Lincoln Industries regarding the business and our journey to become LEAN.
Like I said before, my name is Kirk Hazen, I am a licensed professional mechanical engineer. I graduated with a degree in Agricultural Engineering from the University of Nebraska-Lincoln in 1999 and have worked in the agricultural equipment industry or the metal finishing industry ever since. I have experienced LEAN transformations and understand the value of this transformation and many of the struggles that go with making the leap to change. My position with Lincoln Industries is Continuous Improvement Manager, in this role, I am charged with developing and implementing strategic plans for the organization to continue its LEAN journey and provide direction to leaders in the company regarding LEAN techniques and tools.
As we proceed with the presentation, we will follow the agenda that is outlined here. I would like to provide everyone an understanding of who Lincoln Industries is, have a discussion about our culture and how we are building our organization around talent. I will also provide examples on how culture is directly related to performance on LEAN objectives and close with some current and next step projects for Lincoln Industries.
First of all, you may notice that your program says Lincoln Plating and I have been saying Lincoln Industries since I began this presentation. The reason for this is quite simple. We changed our name!! Lincoln Industries has been known as Lincoln Plating for the past 55 years and the name has served the company very well. As the company grows and expands to new ventures, that name did not represent exactly who we are. Lincoln Industries is no longer just a PLATING shop, of course, we have finishing services, but we are also providing product design, product fabrication, assembly, packaging, and distribution.
In a snapshot, Lincoln Industries is a 55 year old company that has 550 people working in their facilities running a 24 hour per day, 7 day per week operation. This past year, we have surpassed the $100 million mark in sales revenue. One of the most fascinating business markers for Lincoln Industries is the fact that we are able to attain 20% annual growth year over year.
We are certified with quality and environmental systems and are very cognizant of the environment.
Just to give everyone a sneak peak into the customer list that Lincoln Industries serves, we have several BIG name companies that rely on us to provide products and services. Harley-Davidson, Pella Corporation, Maytag, Tenneco Automotive, PACCAR, and Freightliner are some of our larger customers.
As we proceed with the presentation, we will follow the agenda that is outlined here. I would like to provide everyone an understanding of who Lincoln Industries is, have a discussion about our culture and how we are building our organization around talent. I will also provide examples on how culture is directly related to performance on LEAN objectives and close with some current and next step projects for Lincoln Industries.
As we proceed with the presentation, we will follow the agenda that is outlined here. I would like to provide everyone an understanding of who Lincoln Industries is, have a discussion about our culture and how we are building our organization around talent. I will also provide examples on how culture is directly related to performance on LEAN objectives and close with some current and next step projects for Lincoln Industries.
One of the challenges that is present in our business is managing growth. We just spoke about our annual sales increase being over 20% year over year and now you get a glimpse of our employment history. We are exploding in personnel numbers and this is to handle much of the NEW business that we are bringing on. This in and of itself presents many challenges. The Lincoln job market is very tight with unemployment number hovering around 2.5%. In a city of 250,000 people, an unemployment number in this range means that it is difficult to find people to fill positions in a growing company, but yet we are finding ways to do that.
Here is just a snapshot of our financials and what growth trend has been present at Lincoln Industries for the past 11 years. This tremendous growth also presents great opportunities to develop strategies to manage our profitability from both ends. We are driving new business into the organization through business development and customer services to increase the top line sales dollars, at the same time, we are focused on driving cost savings towards the bottom line to effectively increase our efficiencies and lower our waste liability.
If we look at the top 100 companies as defined by the Fortune 100 listing, these are the return on investment numbers that you would have realized in the 4 different situation presented here. If every year, you purchased stock of the top 100 companies to work for, your return would be nearly 15%. In contrast, if you followed the S&P over the same timeframe, you would have realized a return of just shy of 5%. These numbers demonstrate that great companies are built by great people and cultures. These companies achieve much higher results as a matter of their care and concern for the people of their organizations.
Our beliefs and drivers are key in every decision that is made in the organization. Through our TBO selection process, we utilize the beliefs and drivers to direct how the process will proceed. The first step is identification of talented people. From this point we go through our selection process, we DO NOT hire people at Lincoln Industries. We then integrate this talent into the organization into the role that fits this persons talent wheelhouse. We continually educate and provide benefits and services to help retain this talent. Another item of interest, we have NO employees at Lincoln Industries, we ONLY have people. We constantly measure and assess our culture and the talent pool that we have.
First of all, you may notice that your program says Lincoln Plating and I have been saying Lincoln Industries since I began this presentation. The reason for this is quite simple. We changed our name!! Lincoln Industries has been known as Lincoln Plating for the past 55 years and the name has served the company very well. As the company grows and expands to new ventures, that name did not represent exactly who we are. Lincoln Industries is no longer just a PLATING shop, of course, we have finishing services, but we are also providing product design, product fabrication, assembly, packaging, and distribution.
In a snapshot, Lincoln Industries is a 55 year old company that has 550 people working in their facilities running a 24 hour per day, 7 day per week operation. This past year, we have surpassed the $100 million mark in sales revenue. One of the most fascinating business markers for Lincoln Industries is the fact that we are able to attain 20% annual growth year over year.
We are certified with quality and environmental systems and are very cognizant of the environment.
Just to give everyone a sneak peak into the customer list that Lincoln Industries serves, we have several BIG name companies that rely on us to provide products and services. Harley-Davidson, Pella Corporation, Maytag, Tenneco Automotive, PACCAR, and Freightliner are some of our larger customers.
Review this information for accuracy
Jason has been with Lincoln Industries for 8 months now. He was recognized as a person with the right talent to be an Area Leader in our organization. In his previous work, Jason managed a produce department at a local supermarket. His talents include a high level of concern for people and an integrity to do the right thing in all situations. People with these talent sets fit well into our business model as leaders.
Review this information for accuracy
Review this information for accuracy
As we proceed with the presentation, we will follow the agenda that is outlined here. I would like to provide everyone an understanding of who Lincoln Industries is, have a discussion about our culture and how we are building our organization around talent. I will also provide examples on how culture is directly related to performance on LEAN objectives and close with some current and next step projects for Lincoln Industries.
As we proceed with the presentation, we will follow the agenda that is outlined here. I would like to provide everyone an understanding of who Lincoln Industries is, have a discussion about our culture and how we are building our organization around talent. I will also provide examples on how culture is directly related to performance on LEAN objectives and close with some current and next step projects for Lincoln Industries.
