leading with lean: manufacturing excellence through ... · leading with lean only 13% of employees...

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Leading with Lean:

Manufacturing Excellence through

Employee Engagement Philip Holt

Head of Operational Excellence & Partnership Royal Philips


Founded

in 1891

HQ in

Amsterdam

NL

Sales of

circa.

€17Bn

Circa. 69K

Employees

R&D

Investment

of around

7% of

revenue

Present in

over 100

Countries

About Royal Philips


The Lone Violinist


The Leadership Problem: Leading with Lean

Only 13% of

Employees

worldwide are

engaged at work

Sources: Gallup 2013 Employee Engagement

Survey & Harvard Business Review 2013

24% of

Employees are

actively

disengaged

71% of Senior

Executives rank

Employee Engagement

as very important for

Organisational

Success

?


United Airlines: (Source: David Harder, President and Founder, Inspired Work, Inc.)

o Unhappy flight attendants routinely turn up the heat in the cabin.

- Why? If passengers are knocked out they have less work passing out peanuts and drinks.

o Pilots have lost virtually every financial incentive to do their best.

- Many purposely slow down flights to get bumped into overtime. The most cynical pilots have

figured out how to time a flight so that it arrives as late as possible without getting cited.

The Leadership Problem: What it can mean...


The Leadership Problem: A PR Disaster!


Toyota doubled its market share from 2000 to 2010 and became the no. 1 car

manufacturer a number of times from 2009 onwards.

Honeywell outperformed the S&P 500 Index by 126% over the last 10 years

(Aug ‘07 – ’17) using the Honeywell Operating System (HOS) as a major driver

of their Business.

Porsche, starting in the early 1990s, used a Lean Enterprise Strategy (End-to-

End) as a basis of its turnaround strategy and became the most profitable car

company in the world.

Danaher has grown profitably by almost 20% every year for the 20 years to

2013, using a CI based Business System (Share Price growth of 2,909%) and in

the last 5 years alone grew its stock price by 100% (S&P 500 = 75%).

Moved from a ‘factory based’ CI approach to a Business wide people system:

289% Share Price increase over 10 years (June 2003 – June 2013) and 94% in

the last 5 years (S&P 500 = 75%).

We started by understanding the ‘Why’...


Principle Driven

System Driven

Tool Driven

Embedding principles into culture

Embedding principles into culture

Embedding principles into the

culture

Structuring tools into a

systems context

Using specific methods to

create point solutions

Based upon the Shingo Institute Model

…and focussed on Lean thinking, rather than Lean Tools;


Lean thinking

1. Correctly specify value for the customer

2. Identify the value stream and remove waste

3. Make the product flow

4. So the customer can pull

5. By striving towards perfection

Which begins with understanding what the Customer values…


A Central Theme: Certification of 100% of our People in Lean Thinking…


…and a Lean Excellence Model to Transform our whole Enterprise


We utilised the Fundamental Lean Tools, combined with Lean Leadership…


Leadership Activism

provides the essential

elements of Role

Modelling and leading

by example

Mosquito

Leadership multiplies

the Leader’s impact

beyond their span of

control

Visible Leadership

ensures that the

employees see what the

Leader is doing and

helps to engage the

team members

Coaching

Leadership moves

from directive to

coaching leadership

and enables

sustainable

improvement

…to ensure that we are ‘Leading with Lean’ at every level of our Organisation


FROM:

Advocate /

Involved

To:

Activist /

Committed

- Set Targets

- Delegate

- Support

- Observe

- Achieve

Targets

- Lead

- Participate

- Role Model

Leading with Lean: Leadership Activism


o Living the Lean Principles

o Not just being seen;

supports Activist

Leadership

o Understanding the status

now

o Building Trust

o Check = Care

o Genchi Genbutsu (go see)

o At the Gemba (where

possible)

o Must be fact based

o Not just for

Manufacturing

o The Workplace as a

Showcase of Excellence

Leading with Lean: Visible Leadership


Leading with Lean: Coaching Leadership

FROM: Directive /

Telling

To: Coaching /

Asking

o Micro-Manager

o Expert

o Command &

Control

o Distrust

o Opinion Based

o Remote / Distant

‘Problem

Solving’

o Hire and Instruct

o Short-Term View

o Strategist

o Leader

o Agree & Expect

o Entrust

o Fact Based

o Problem Solving at

the Gemba

o Hire and Learn

o Long-Term Vision


Certification Program Kaikaku visits

Social Media Leader led Training

Leading with Lean: Mosquito Leadership


o Significantly increased Employee Engagement

o Bottom line impact in the Hundreds of Millions € range

o Time-to-Market improvements of between 30-70%

o Quality improvements of 30% Year-on-Year

o Inventory reductions of >30%

o Floor space reductions typically 20-30%

o Kaizen implemented >200K

o Thousands of certified Lean Practitioners

‘Getting Engaged’ delivered significant results


Thank You!

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Please take a moment to complete the survey using the conference mobile app.

Session No: ThS/67

Leading with Lean: Manufacturing Excellence

through Employee Engagement

Philip Holt

Royal Philips LinkedIn: Philip Holt

Twitter: @LeanMaster1

https://www.linkedin.com/in/philipholt

https://www.linkedin.com/in/philipholt

https://twitter.com/LeanMaster1

https://twitter.com/LeanMaster1

http://www.leadingwithlean.com/

leading with lean: manufacturing excellence through ... · leading with lean only 13% of employees...

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