the impact of a company's culture on lean intiatives

The impact of a company’s culture

on LEAN initiativesKirk Hazen

Continuous Improvement ManagerLincoln Industries

Agenda

• Who we are• Building a culture of trust• Architecting a Talent Based Organization• How a great culture impacts LEAN• Closing remarks

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

• Who we are• Building a culture of trust• Architecting a Talent Based Organization• How a great culture impacts LEAN• Concluding remarks

“No one cares how much you know until they know how much you care.” Author Unknown

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

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

Measurement tools

• Individual Opinion surveys

• Departmental surveys

• Strategic supplier survey

• Gallup customer survey

• Great Places To Work® Trust survey

Recognition programs

• Monthly Champions events• Annual Night of Champions• Bright Ideas• Service recognition• Safety recognition• Environmental• Wellness• Quality• Birthdays and anniversaries

Personnel growth

190

475

550

450425

350300

240

160

0

100

200

300

400

500

600

1999 2000 2001 2002 2003 2004 2005 2006 2007

Personnel Growth

Projected

Sales growth

102

82

18.2

7770.1

53.645.5

35.328.3

23.919.815.9

0

20

40

60

80

100

120

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Sales Growth

Projected

In M

illion

s

Financial results

Companies with great cultures out-perform

other companies.

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

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

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.

Lincoln Industries people

“People making a difference.”

“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

Talent Based Organization

Vision:

“An organization with the right people, in the right seats, fully engaged andsuccessful in what they do to achievegreat results.”

Lincoln Industries TBO Process

Beliefs& Drivers

Identification

Selection

Integration

Learning &Development

Measure & Assess

Retention

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

“Selection vs. Hiring”


Individual Lincoln Plating Opportunities1. 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

Area Leader

• 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


Weak Talent Literacy Strong

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.

HT

HK/S

HT

LK/S

LT

HK/S

LT

LK/S

Low High

High


Talent

Kno

wle

dge/

Ski

llsTalent Audit - Human Capital Balance Sheet

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

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

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.

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

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

Going forward for LI

• LEAN Enterprise deployment

• TBO building

• LEAN training

• Continued success celebration

Conclusion

Questions or Discussion

the impact of a company's culture on lean intiatives

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