THE ABC S OF CREATING LEAN LEADERS. Jeff Adams, Managing Director Consequence Leadership

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1 THE ABC S OF CREATING LEAN LEADERS Jeff Adams, Managing Director Consequence Leadership

2 of all change initiatives fail. Source: John Kotter, Harvard Business School 2

3 First, About Canadian Pacific Incorporated in 1881 Icon in Canadian history Brand visibility throughout the world $40B market capitalization Operates 14,700 miles 6 Provinces & 13 States

4 About CP Continuous Improvement Effective Production: On-time Service, then Assets & Productivity Attack waste, build std work & visual mgmt Engage front line to find the best way Bottom-Up Effective Leadership: Q4 Leaders who reinforce behavior & consequences Leader Standard Work to keep production in control Strategy Execution to cut across functional silos Top-Down Lean Continuous Improvement: Real work problem solving on-the-job Sustain gains & ongoing improvement Re-shapes culture Both

5 Effective Change Execution Process & Tools Behaviours & Consequences

6 Sound Familiar? Change creates improved process, supported by enthusiastic leaders! but as time passes New process is not sustained! Why aren t they doing it?

7 We Have Tools in Place!?! We ve got Job Briefings! We ve got SOPs! We ve got Visual Management! So, what are we missing?

8 ABC s of Human Behaviour A trigger or prompt What people do or say What happens to them A B C Antecedent Behaviour Consequence Consequences Drive Behaviours

9 Example of Your Own Behaviours What do you do and why? It all depends on consequences

10 Power of Consequences Positive consequences strengthen behavior Negative consequences weaken behavior B B B B

11 Power of Consequences MOST POWERFUL When immediate When certain Most weak When in the future When unlikely

12 The Key to Using ABC PICNIC Leaders applying consequences through effective feedback

13 Performance Impact of Effective Leader Feedback Positive and Constructive Feedback People Give Discretionary Effort Negative Feedback Only Minimum Requirement Poor Feedback Time

14 Positive & Constructive Feedback, Simply: Catching someone doing something right: Describe observed behaviour precisely Say why it s important to our business Thank and ask them to keep doing it Catching someone doing something wrong: Describe observed behavior objectively Impact of self, others and business Describe/show the desired behaviour Get commitment and follow-up

15 Impact on Workgroups Negative Leaders 5% 10% 70% 10% 5% Negative Followers Neutral Majority Which Way Do I Go? Positive Followers Positive Feedback reinforces desired behavior Positive Feedback isolates negative leadership/followers Constructive Feedback highlights undesired behaviour Positive Leaders Source: Peter Edwards, Co-Author Switchpoints and VP, Human Resources, Canadian Pacific

16 Q4 Leadership: Maximum Results (what is produced by Leader Behaviours) Q3 Q1 Q4 Q2 Minimum Negative Leadership Behaviours (what you say and do) Positive

17 Q4 Leadership Maximum Results (what is produced by Leader Behaviours) Minimum Q3 Good short-term results Fearful, uncommitted employees Positive feedback poor Q1 Poor results going out of business Disengaged employees Feedback poor Q4 Sustainable results Engaged & committed employees Feedback rich Q2 Marginal results Frustrated employees Deals & non-compliance Feedback poor Negative Leadership Behaviours (what you say and do) Positive

18 Q4 Leadership Maximum Results (what is produced by Leader Behaviours) Minimum Q3 Leaders get results at any cost and burn out their people Q2 leaders struggle to take action to deal with non-compliance Negative Leadership Behaviours (what you say and do) Positive

19 Performance Effective Leader Feedback Positive & Constructive Feedback People Give Discretionary Effort Negative Feedback Only Minimum Requirement No or Poor Feedback Time

20 Feedback Changes Everything BEHAVIOR Positive Feedback Constructive Feedback Unwanted behavior decreases Desired behavior increases Desired behavior increases Q4 Leaders Negative Feedback Unwanted behavior decreases Q3 Leaders Poor or No Feedback? No Leadership Q1 & Q2 Leaders

21 Core Q4 Behaviours at CP 1. Communicate pinpointed expectations 2. Actively observe 3. Ask questions and actively listen 4. Provide pinpointed positive & constructive feedback 5. Request and act upon personal feedback 6. Apply balanced consequences 7. Drill down to root cause & confront those who don t Actively coaching and assessing these leader behaviours

22 Making it Real at CP Cascades from the top down Leader progress assessed on behaviors Individual Action Plan created Target behaviors set and practiced Evaluation of performance CI Coaches expert in ABC and Q4 Behaviors Leader receives days coach support Feedback from observations in field Tightly managed with line executives

23 Making it Real at CP Leader progress assessed & consequences are applied Consistent Performance to Desired Q4 Behavior Continue in current role Eligible for promotion Unable / Unwilling to Perform Desired Q4 Behavior Demoted to lesser role, Transfer to staff role, or Cannot work here

24 Effective Change Execution Restated: Leverages Tools & Behaviours together A B C Recognizes that Consequences drive Behaviours Pinpoints & measures behaviours including effective consequence leadership Reinforced with consequences down the chain of command

25 Call to Action Become fluent in ABC and Effective Feedback Design change execution with these attributes Give someone effective feedback today

26 Questions?

27 Thank You! Please complete the session survey at: Session: TP/11 The ABC s of Creating Lean Leaders Jeff Adams Canadian Pacific Railway jeff_adams@cpr.ca