Konea LLC

Develop a Culture of Network Leaders

Stephen L. ChunLean Aerospace Initiative

San Antonio, TX April 2006

Konea LLC

TOPICS

• Who is Cirrus

• Defining the problem

• Go and See: Gather the facts

• Constraints

• Transformation tools

• Leadership model

• Success

• Lessons Learned

Konea LLC

WHO IS CIRRUS?

1. Designer and manufacturer of single engine piston airplanes

2. Recognized as global leader in personal aviation aircraft (over 2500 sold)

3. Full Composite construction and advanced avionics

4. CAPS: Cirrus Airframe Parachute System

Konea LLC

DEFINING THE PROBLEMIssues not solvedPerformance goals in jeopardy

Hard working, no gainTeam frustrated

Konea LLC

GO & SEE: GATHER THE FACTS

Internal Depts.

Mnfg.

Suppliers

• Performance expectations not aligned

• Specific functional tasks• Limited coordination

• Recipient, not customer of other processes

• Disconnected from needs: Not pulling

• Fire chasing, reactive

• Suppliers have limited visibility to internal operating needs

X

X

X

X

X Broken linkPush

SalesMkt. Eng IT HR QVA

Konea LLC

LEADERSHIP “NATURAL” CONSTRAINTS

• Limited Involvement in up/downstream functions

• Did not realize internal supplier/customer relations

• Unaware of impact to actual VA

• Perception of exposing department weaknesses

• Personal Agenda conflict: Mission, Team, Self

• Historically driven to be department focused, not VA

• While company vision was clear, the mission to make other departments successful were less transparent

• Many leaders have simply not been taught

Individual

System

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LEADERSHIP TRANSFORMATION TOOLS

“Go and See”Management

Daily, VP’s sponsored Line team ownership

Weekly Sales, Service & Operations alignment

Management metrics aligned to support value stream

Weekly Multi-function project update

On/off site supplier development and integration

Frequent metrics review

Functional roles: Supplier/Customer expectations Key Ingredient:

Formalizing forums to get leaders and players to continually solve problems

Konea LLC

LEADERSHIP MODEL

Internal Depts.

Mnfg. VA

Suppliers

• Coordinated Pull: ~Function to function ~Process to process

• Handover: Expectations and metrics aligned

• Seamless flow: Leaders break down barriers, connect resources at lightening speed

• Integrated: Extended across value chain

Touch node

Pull loop

SalesMkt. Eng IT HR Q

VA

Konea LLC

SUCCESS IN A NUTSHELL

• Higher Q, OTD, productivity• Healthy financial

performance• Increased stability

• Increased product innovation

• Resolution became fun• Each entity counts

Operating Performance

Problem Solving

Team coordinated

• Leaders trustfully sharing• Cultural shift to Pull• Problems solved naturally

by multi-function teams

Before After

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LESSONS LEARNED

• Don’t wait! be the top management champion today

• Take every opportunity to “go and see”

• Revolve every discussion around the value stream

• Strive to be empathetic!

Network Leaders flow…

… not float!

Konea LLC

Develop a Culture of Network Leaders

Stephen L. ChunLean Aerospace Initiative

San Antonio 2006