Resources and gender pay inequality

Transcription

1 Gary Kapanowski Moeller Manufacturing CLSSMBB 1 Resources and gender pay inequality 7/31/2015

2 7/31/2015 2

3 The 8 th Waste Examples in Silicon Valley American Association of University Women s Study Gender Pay Inequality s Financial Impact Violation of Toyota Production System (TPS) SAP: Internet of Things Manufacturing 4.0 Action Plan: Lawrence Technological University PDC Women s Forum What Can We Do? 7/31/2015 3

4 4 Why is this still occurring? 7/31/2015

5 7 wastes in the Toyota Production System (TPS) o Transportation o Inventory o Motion o Wait o Over-Production o Over Processing o Defect 7/31/2015 5

6 The 8 th waste is the use of Resources or Talent o De-motivating of the workforce o Not incorporating your team members in the input phases of the process o Not recognizing success 7/31/2015 6

7 People Focused o Know what the expectations are for the task o Method to keep problems from returning o Influence & correct problems Establish mutual trust o People development o Promote team work o Voluntary continuous improvement o Create positive environment for problem solving 7/31/2015 7

8 Why LEAN is not a One Size Fits All application o Implementation is what is expected (adjust) in the current culture o Environment o Social o Economic o As explained in the book: The Machine that Changed the World, Womack, Jones, & Roos LEAN is not a singular culture driven methodology It can be implemented in any situation Adjusted to your environment with people as the focus for continuous improvement LEAN will change over time 7/31/2015 8

9 The 8 th waste is the use of Resources or Talent o Knowledge worker named by famed management consultant Peter Drucker o Management s responsibility to align the tasks with the resources 7/31/2015 9

10 The 8 th waste is the use of Resources or Talent o If performed properly, the knowledge workers will be more motivated to accomplish their tasks and the organization will produce profits 7/31/

11 The results on equal pay for women o There have been many studies to indicate the wage inequality o The only issue is really by how much 2% to 4%, segmented data +20%, macro view o Coaching the Alpha Male, Harvard Business Review study Teams and collaboration management style more favorable to produce positive results in today s business environment More common with women managers than men Metrics should improve for women in future 7/31/

12 Results from within the organization on equal pay o Over the past 25 years, women have outpaced men in earning college degrees by 60% to 40% o However, the top management and board positions held by women are 20% and 25% respectively o The variance still exists after 50 years of the Equal Pay Act o Why do we see such a large variances? 7/31/

13 13 One industry example 7/31/2015

14 Empirical and Statistical results on equal pay for women o The Lean In book by Facebooks COO Sheryl Sandberg demonstrated the issue on a hiring experiment within Facebook 7/31/

15 Twitter funds frat party for employees, highlighting Silicon Valley bro culture: By Jennifer Booton : 7/22/15 Exposed by female Twitter employee then activist group Global Tech Women using #diversitymatters and #brogrammers 7/31/

16 Non-diverse work culture in Silicon Valley Among the top tech companies, glaring percentages Twitter: Facebook: Apple: 70% staff male, 90% tech jobs male 69% male 70% male What is the diversity percentage at your workplace? 7/31/

17 Non-diverse work culture in Silicon Valley Current class action lawsuits for discrimination: o Twitter: March 2015 Complaint by former software engineer Glass ceiling culture o Google: March 2015 Complaint by former software engineer Secret spreadsheet highlighting gender & minority wage inequalities Venture capital firm Kleiner Perkins Caulfield & Byers won a discrimination lawsuit filed by Ellen Pao considered as a landmark decision, 3/2015 7/31/

18 Non-diverse work culture in Silicon Valley Utilizing US Department of Labor data from 2014 Female software developers were paid 83.9% when compared to their male colleagues 7/31/

19 Can you provide examples of the gender pay inequality? In your industry? At your company? At your volunteer organization? Discuss with another or as a team 7/31/

20 /31/2015

21 A national study by American Association of University Women and National Partnership on Women and Families o Equal pay is critical to families economic security With a record number of women in the workforce 2/3 of women functioning as the primary earner in the family o Women experience a 7% pay inequality or earn 93 cents when compared to men for college graduates just one year after graduation After controlling for factors known to affect earnings: Occupation College major Hours worked 7/31/

22 A national study by American Association of University Women and National Partnership on Women and Families o As of 2013, women earned 77 cents compared to every dollar by a man The inequality was larger for women of color Pay inequality appears early in a woman s career After one year out of college, working full time, paid on average 82% of male counterparts 7/31/

23 A national study by American Association of University Women and National Partnership on Women and Families o The difference between the 93 cent and 77 cent pay inequality indicates: Different distributions for women and men, why? What do the distributions look like? (bimodal / skewed) Correlation between the data of men and women? What does the short and long term data tell us bout the process capability? 7% not explained, why? 7/31/

24 A national study by American Association of University Women and National Partnership on Women and Families o Wage inequality disappears in 2086 for the state of Michigan o Higher paying careers had larger disparity o Average loss by women in career is $530,000 This is the Cost of Poor Quality (COPQ) for this variance or waste What does this represent for the economy? Is this a zero-sum game? 7/31/

25 25 Market value impact on organizations 7/31/2015

26 If we assume for our hypothesis test: Talent / skills are distributed evenly across genders Gender pay inequality and glass ceiling at C-suite exits If there is a misallocation of resources, the economic impact would indicate a market that is not in equilibrium and not maximizing profits 7/31/

27 Predictive result: This dilutes talent at the C-suite Organizations with diverse C-suites has the ability to produce abnormal growth / profits when compared against male dominated C-suite organizations In our case, incorrect decisions would occur to devalue the market value of the non-diverse organization Market inefficiencies produce higher consumer prices and greater risk for recessions 7/31/

28 28 Toyota production system (TPS) and gender pay inequality 7/31/2015

29 The heart of lean is eliminating waste (muda) Waste can be defined as anything that does not add direct value to the end service or product from the customer s perspective 7/31/

30 Talent De-motivating the workforce by not asking for input or recognizing success Motion Unnecessary movement of people; multiple hand-offs Waiting Elapsed time between processes when no work is being done Transportation Unnecessary movement of material or product Over-production Making or manufacturing in excess of customer requirements; providing a service that is not really needed Inventory Material or product that is used to cover for inefficiencies Defects Anything that does not meet the acceptance criteria Over-processing Adding unnecessary steps to a process; redundancies between processes 7/31/

31 LEAN Principles: Toyota Production System (TPS) 1. Long Term Philosophy base your decision on long-term goals 2. Continuous flow bring problems to the surface Quality is Free Hoshin Kanri: Long-term meets shortterm goals 14. learn reflect - measure and improve - kaizen 13. Slow - Fast approach Nemawahsi make decision slow, implement fast 3. Use pull system produce only what s needed 4. Level workload balance need - heijunka Industry Does Not Matter The Toyota way can be applied to every process 12. Go and See experience the situation 11. Respect Partners help and challenge supplier 5. Quality right first time stop, fix, do it right - jidoka 6. Create standards ensure continuous improvement Use customer input to improve your products and services. 9. Grow your own leaders understand, live and teach work 7. Visualize TYPES OF MUDA: I. Long Term don t hide information TIM WOODS Philosophy 8. Keep it simple II. Right Process Right Results III. IV. Senior Management Leads the Charge Solve root causes Not why did you fail, but why did the process fail 1. Transportation: 2. Inventory: 3. Motion: 4. Wait Time: 5. Over-Processing: 6. Over-Production: 7. Defects: 8. Separated From Employee Creativity: Big Waste 10. Develop Teams success is based only on teams reliable and standard processes, structure, and technology 7/31/

32 The principles violated by not eliminating the pay inequality o 1. Long Term Philosophy: base your decision on long-term goals o 5. Quality right first time: stop, fix, do it right - jidoka o 6. Create standards: ensure continuous improvement o 7. Visualize: don t hide information o 9. Grow your own leaders: understand, live and teach work o 10. Develop Teams: success is based only on teams o 11. Respect Partners: help and challenge supplier o 12. Go and See: experience the situation o 14. Learn: reflect - measure and improve - kaizen 7/31/

33 33 Manufacturing 4.0 7/31/2015

34 In Manufacturing 4.0, business will be run using cyber-physical systems to monitor, analyze, and automate business 7/31/

35 In Manufacturing 4.0, business will be run using cyber-physical systems to monitor, analyze, and automate business 7/31/

36 In Manufacturing 4.0, business will be run using cyber-physical systems to monitor, analyze, and automate business The benefit: o o o o New insight New business opportunities Strategic cooperation Smart network connecting the manufacturing process to the customer The demand on workers will favor women o o o o Additional analytics, college educated labor Flexible management of work content and time More worker autonomy Work-life environment that will place women equal with their male counterparts for the first time in manufacturing history Provide for another level to eliminate the wage inequality 7/31/

37 37 Corrective measures initiated by Lawrence Technological University Professional Development Center (LTU PDC) participants 7/31/2015

38 As lean professionals, we are chartered to identify and eliminate waste when we can o Identified several continuing educational professional students having a difficult time finding work even after completing classes o After placing the individuals on a spreadsheet, I realized that the segment having trouble were women transitioning from a nonmanufacturing to a manufacturing environment o The group of nine women were contacted and asked to participate in a women s forum to discuss their issues regarding employment 7/31/

39 As lean professionals, we are chartered to identify and eliminate waste when we can o During this Lean Huddle, we identified the necessary skills needed for employment and met the following week in a Kaizen blitz to improve each professional s resume, LinkedIn profile, and elevator speech o All completed in one session with industry experts for each area o The results were impressive with seven of the nine women receiving job offers within 30 days and all nine receiving job offers within 60 days o Mentor program, either formal or informal, works 7/31/

40 Results supported by research from UCLA Women's Law Journal by Schipani, Morehead Dworkin, & Ramaswami o This is not a supply problem Workforce is represented by 42% men and 58% of women 53% increase since 1963 Number of working mothers have grown to 70% from 54% (1962) A record number of Title VII sex discrimination cases were filed in % of women completed High School or more 37% of women completed four years of college 11% of women completed graduate school compared to 8% of men Overall gender breakdown: Women with master degrees: 60% to 40% men Women with PhD degrees: 52% to 48% men 7/31/

41 41 How can we make an impact? 7/31/2015

42 If we can agree that the gender pay inequality is waste, we need to utilize our Lean Eyes to eliminate it This can be performed during the yearly performance review 7/31/

43 Start informal or formal mentor program to overcome challenges to networking for women with dependents Supported by research from UCLA Women's Law Journal by Schipani, Morehead Dworkin, & Ramaswami 7/31/

44 REMEMBER: LEAN = PEOPLE 7/31/

45 Pass the Paycheck Fairness Act (S. 84/2199 and H.R. 377) Pass the Fair Pay Act (S. 168/H.R. 438) Supported by the American Association of University Women 7/31/

46 7/31/