The Three Imperatives to Achieve Organizational Excellence

Transcription

1 The Three Imperatives to Achieve Organizational Excellence July 16, 2015 LaGrange, Ga Presenter: Mike Stonecipher

2 Why are you here?

3 What makes these great organizations GREAT? 1. Transformational leadership and people centric 2. Organizationally aligned with a laser focus 3. A culture of accountability that is results driven

4 Imperative #1 Transformational Leadership

5 Are Leaders Born or Made? Or a Little of Both?

6 Gentry, W., Deal, J., Stawiski, S., & Ruderman, M. (2012). Are leaders born or made? Perspectives from the executive suite. Center for Creative Leadership.

7 Case Study

8 What Can We Learn From Nemo? Survival requires inspirational leadership It takes intellectually stimulating leadership to eliminate chaos Leadership requires getting into the net with your team Leadership facilitates the generation of a plan and cheers us on through execution We often have to let go - Dad s concern for NEMO Change is hard the net is moving one way, it takes all of us to behave in unison to get momentum Moving the net in the opposite direction (momentum) gives us hope Breakthrough gives us freedom Did Nemo Demonstrate Transformational or Transactional Leadership?

9 Ref: Bernard M. Bass & Bruce J. Avolio Full Range Leadership Model

10 So, where does one start? Ask your team members and peers about your leadership skills Take notes of your day. ID number of times in the effective/active quadrant vs ineffective/passive Focus on two areas to improve Develop a plan to improve Reach out to a mentor for coaching Remember: Great Leaders Develop More Great Leaders

11 Imperative #2 Organizational Alignment

12 Same Objective? Strategically Aligned?

13 Organizational Alignment If you could get all the people in an organization rowing in the same direction, you could dominate any industry, in any market, against any competition, at any time. - Patrick Lencioni

14 Traditional Top Down Approach Communication Top Management Strategy Middle Management Supervisors Message Received Associates Daily Execution WHAT TYPE OF RESULTS CAN BE EXPECTED?

15 5 Principles To A Successful Strategic Plan Deployment Process 1. Align the organization s goals with its Vision & Mission 2. Identify and focus on the vital few initiatives 3. Work with your team to develop measurable objectives 4. Specify the methods and measures to achieve the strategic objectives 5. PDCA Often Strategic Intent Reliable Execution Planned Results

16 Line of Sight Management Process Site Annual Plan 3-5 Yr. Strategic Plan Quarterly Functional Plans Leader: Quarterly Functional Department: Quarter: Key Result Area (KRA) Date: January February March Score Key Initiative Owner Objectives Objectives Objectives Wt Jan Feb Mar Status Leader: Quarterly Functional Department: Insource widget Johnny Quarter: stamping Onthespot Key Result Area (KRA) 20 Date: January February March Score Implement Supplier Key Initiative Owner Objectives Objectives Objectives Wt Jan Feb Mar Status Leader: Quarterly Functional 10 Department: Scorecard Insource widget Johnny Quarter: stamping Onthespot Key Result Area (KRA) 20 Date: Inventory Accuracy January February 10 March Score Implement Supplier Key Initiative Owner Objectives Objectives Objectives Wt Jan Feb Mar Status 10 Scorecard Add Consumables Insource widget Johnny to Kanban stamping Onthespot Key Measures Inventory Owner Accuracy 10 January Target February Target March Target Wt Jan Feb Mar Status Freight Costs Implement Supplier On-Time Delivery Scorecard Add Consumables Stock Outs to Kanban 10 Cycle Count 10 Key Measures Inventory Owner Accuracy 10 January Target February Target March Target Wt Jan Feb Mar Status Total Score Freight Costs 15 On-Time Delivery Add Consumables Stock Outs to Kanban 10 Cycle Count 10 Key Measures Owner January Target February Target March Target Wt Jan Feb Mar Status Total Score Freight Costs 15 On-Time Delivery 15 Stock Outs 10 Cycle Count 10 Total Score Team Gemba Board

17 Gemba, the place where value is created Displays key metrics for Safety, Quality, Delivery and Cost (SQDC) Metrics agree with annual plan goals and objectives Clearly identifies board owner and team members Captures variance to plan, assignable cause and corrective action Space reserve for A3, project plans, etc.

18 Closing the Loop: Dashboard ACT CHECK Leader: Quarterly Functional Department: Quarter: Key Result Area (KRA) Date: January February March Score Key Initiative Owner Objectives Objectives Objectives Wt Jan Feb Mar Status Leader: Quarterly Functional Department: Insource widget Johnny Quarter: stamping Onthespot Key Result Area (KRA) 20 Date: January February March Score Implement Supplier Key Initiative Owner Objectives Objectives Objectives Wt Jan Feb Mar Status Leader: Quarterly Functional 10 Department: Scorecard Insource widget Johnny Quarter: stamping Onthespot Key Result Area (KRA) 20 Date: Inventory Accuracy January February 10 March Score Implement Supplier Key Initiative Owner Objectives Objectives Objectives Wt Jan Feb Mar Status 10 Scorecard Add Consumables Insource widget Johnny to Kanban stamping Onthespot Key Measures Inventory Owner Accuracy 10 January Target February Target March Target Wt Jan Feb Mar Status Freight Costs Implement Supplier On-Time Delivery Scorecard Add Consumables Stock Outs to Kanban 10 Cycle Count 10 Key Measures Inventory Owner Accuracy 10 January Target February Target March Target Wt Jan Feb Mar Status Total Score Freight Costs 15 On-Time Delivery Add Consumables Stock Outs to Kanban 10 Cycle Count 10 Key Measures Owner January Target February Target March Target Wt Jan Feb Mar Status Total Score Freight Costs 15 On-Time Delivery 15 Stock Outs 10 Cycle Count 10 Total Score PLAN DO

19 Imperative #3 Accountability

20 How do we develop an accountable culture? Start by creating the right environment.

21 Above the Line Culture Accountable Behavior The Line Unaccountable Behavior Ref: Smith and Conner, The Oz Principle

22 The Results Model What actions created the results? What beliefs drove the actions? What experiences created the beliefs? Keep or change experience based on results. Ref: Smith and Conner, The Oz Principle

23 Case Study Historically, what has been the consequences? Do they know how to do the job? Trained and Demonstrated Competency Clear success criteria / expectations Do they have the proper tools / equipment / resources to do the job? Maintained and accessible Do they have the information required to do the job? Do they know the job needs to be done Triggers to act Do they have time to do the job?

24 Results Driven 7 Steps to Create an Accountable Culture Consequences Consequences (+ Reinforcement) Constructive Performance Analysis Coaching Communication Clear Goals and Responsibilities Behavior Driven Capability Common Purpose

25 From involvement comes information, from information comes knowledge, from knowledge comes understanding, from understanding comes commitment, and from commitment comes consistent and efficient execution of the plan. - Michael Brassard, 1995

26 Need help focusing and achieving results? Then a RACI is for YOU!

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28 The Power of Positive Reinforcement

29 Performance Discretionary Effort (R+) Positive Reinforcement Get Something You Want Have to do Compliance Discretionary Effort (R-) Negative Reinforcement Avoid Something You Don t Want Time The Key to Success is Finding and Promoting Discretionary Effort. Ref: ADI

30 Thank You! Contact Information Derek Woodham: Mike Stonecipher: Website: gamep.org

31 Appendix

32 Financial Health Leadership Development Organizational Alignment Not evident Limited application Some effort Clearly evident Good example of best practice World Class Organizational Excellence Gap Assessment Company: Date: Assessor(s): Categories Vision, Mission, Values, Strategy Are the vision, mission, values well defined? Are the vision, mission, values clearly communicated? Is the strategy of the company known at all levels? Are company values posted and known at all levels? Strategy Deployment Does annual operating plan support vision and mission? Does functional departments have supporting KRA's? Does team activities support strategic plan? Metrics Are key performance indicators (KPI's) linked to strategy? Does each value stream and/or work cell have KPI's? Is a PDCA process used for addressing variences? Visual Management Are there clear and current visuals supporting Vision, Mission, Values? Are visuals convenient and easy to understand? 0 pts 1 pt 2 pts 3 pts 4 pts 5 pts Comments Does each visual have clear ownership? Leadership Structure Is the leadership structure clearly documented and communicated? Is the structure suitable for executing strategic plan? Is there evidence of forward thinking? Leadership Development Does each individual have a personalized development plan? Has staff and front line leadership been trained in accountability? Does leadership have effective coaching skills? Does leadership have strong communication skills? Is there a leadership succession plan? Leadership Effectiveness Are goals met on a regular basis? High employee satisfaction survery results? Evidence of teamwork? Is there a high salary workforce turnover? Leadership Cadence Does leadership participate in a daily Gemba walk? Does leadership have standard work? Does leaders lead by example and reinforce the values? Employee Involvement Are employees actively engaged in driving improvements? Do employees demonstrate ownership? Do employees know site VMV, key measures, financials? Finance Is there a strong, consistent, positive cash flow? Is revenue on a three year growth trajectory? Is accounts payable current? Are wage increases and incentive plan competitive? Growth Is growth trend aligned with industry trend? Is customer satisfaction measured? Is the VOC captured? Is there a current market analysis? Any signs of emerging technology or global competition? What percent of revenue goes into product development? Maintenance and Repairs Is there a strong TPM plan? Is facility and equipment is good condition? Are adequate MRO supplies available? Is there a good relation with vendors? Supply Chain Is company on favorable terms with suppliers? Are there signs of material shortages or price escalations? Suppliers have scorecards/ratings? Are they posted? Does the site lead or support a regular S&OP process? Material Management Is there evidence of material control? Kanban, MinMax, Inventory Audit When was last physical inventory and what were the results? Is material used on a FIFO basis? Is 5S practiced in material storage areas and warehouse? Are inventory turns measured?

33 Credits The Management Compass, AMA Management Briefing, Michele L. Bechtell Bringing Out the Best in People, Aubrey Daniels The Oz Principle, Connors, Smith and Hickman The benchmark measure of transformational leadership, Bernard M. Bass & Bruce J. Avolio