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Love and Lean
George Saiz, president and CEO of the Association for Manufacturing Excellence, discusses his journey in leadership, emphasizing the importance of a people-centric culture in organizations. Key takeaways include the intentional focus on employee engagement and communication, and the implementation of the A3 problem-solving tool that led to significant business improvements. The document highlights that successful leadership fosters an environment where employees feel fulfilled and contributes to overall company effectiveness.
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Love and Lean
- 1. Love & Lean GeorgeSaiz President & CEO Association for Manufacturing Excellence
- 2. Early Years • FirstJob – General Helper @ $2.00/hr. • Early management thoughts – “Create an environment where they don’t want to miss what’s going on” • Education at night (BSBA, MBA) • General Helper to General Management – (9 promotions in 17 years) $2.25/hr.!
- 3. Introduction to Lean •1992: • Lot size of 1…Bottlenecks (Herbie) • Lego Simulation
- 4. Love & Lean- Overview • Journey towards developing a People-Centric Culture • Connecting the heart of engaged employees with the tools of Lean • Results you can see • Summarize what has been learned
- 5. Purpose To be aTEAM Dedicated Innovative Solutions Improve Customer Outcomes
- 6. June 2013 1st AMECEO Summit on People-Centric Leadership A culture where every day everyone goes home fulfilled by pursuing excellence and where everybody flourishes.
- 7. People-Centric Leadership 3 keytakeaways + 1: 1. Very intentional efforts towards employees 2. “Entrusted” 3. PCL looked different at each company Overriding thought: we have their hands, but we could have had their minds & their hearts if we had just known how to ask
- 8. Self Examination 1. Greatprograms for employees – episodic in nature – Quarterly All Employee Meetings – Picnic, Halloween Party, Christmas Party, Chili Cook-off, Ice Cream Truck, Hot Dogs – Recognition – Company Bucks, Living Our Mission – Hands-on Product Training
- 9. Self Examination 2. Leadershiptraining consisted of educating managers to go out and do something to our employees – 6 one-day trainings / year on leadership 3. We never asked our employees what they wanted!
- 10. The Trail aftertheir Minds & Hearts
- 11. Leadership Training -February 2014 What will people-centric look like here? • 42 leaders gathered – top management to production leads • 3 components of the day – Colonel Arthur Athens: “What’s love got to do with it?” – Dissect his message and explore the behaviors of people-centric leaders – Go to the Gemba…ask the employees what should PCL look like here?
- 12. Synthesized the day’sdata… • Communication • Care • Alignment • Development Goal Statement established: “Engaged when we are here… fulfilled when we go home
- 13. New Name “People-Centric Culture” •Why Culture: – Leadership is really a relationship – Goal is to educate both sides of the equation – Strove to make it daily…not episodic – Wanted it to be employee driven
- 15. Communication Skills Training SevenInterlaced Modules
- 16. How one leaderreacted…
- 17.
- 18. ALIGNMENT LINE OF SIGHTMANAGEMENT - PDCA CYCLE
- 19. Line of SightEvolution Teams and Framework Company Culture, Strategic Framework, Teams and Functional Performance Plans Introduced Tracked, Functional Area Plans Driven by Routine Follow Up Focused on Results (Company, Operational, Individual) AME Hitting the Target!!! Independent Units Focused, Clear Business Direction Behaviors Identified and Organization Energized Smart and Sharp, Lean and Mean Vision and Mission Driven
- 20. Development, Benchmarking & Wellness Pillar •Development • Benchmarking the Best • Wellness Program • Mentoring & Coaching • Autoliv, Danaher, AME • Lincoln Industries Model Pillar • Development • Benchmarking the Best • Wellness
- 21. Minds & Hearts…toHands • Equip all employees with a standardized problem solving tool – A3 • How? – Trained all employees in the A3 process – Hands on workshop with real problem tackled – 3 year incentive plan launched
- 22. A3 Incentive Plan& Evolution • Payout if overall company goal achieved and individual goal achieved • Year 1: One A3/employee/quarter – “On anything” • Year 2: Two A3’s/employee/quarter – Department identified focus area of improvement • Year 3: Three A3’s/employee/quarter – Introduced Team credit
- 23. Added in “2Second Lean” • Department read “2 Second Lean” as a team • All team members – 15 minutes daily at beginning of shift • On my walks I reviewed their A3 submissions • Motivated me to start daily “2 Second Lean”
- 24. One of my“2 Second Lean” Improvements 2 Second Lean – 09/15/14 BEFORE AFTER Business cards in folder Cards stored electronically through App
- 25. A3 Results A3’s becomethe standard problem solving tool Everyone is thinking “root cause” and asking…”what problem are we trying to solve?” Over 1200 A3’s completed in Year 3!
- 26. Shining Example • Overthat time period, reduced COGS by $1.8M annually on a single product through incremental improvements Minds…Hearts…Hands
- 27. Another Example ofResults – Autoliv • 100,000 Kaizens in one year with 1100 employees – ~91 completed Kaizens per employee! • In 2012, largest plant had 5X Productivity of 1995 with 3X product complexity
- 28. Copyright © 2016Gallup, Inc. All rights reserved. HERE’S HOW Engagement Links to Business Outcomes and why it Matters 28 -37% -25% -65% -28% -48% -41% -41% 10% 21% 22% -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% Business units in the top quartile of engagement have 21% higher productivity than their bottom quartile counterparts and 48% less safety incidents. Turnover Absen- teeism High- Turnover Orgs. Low- Turnover Orgs. Shrinkage Safety Incidents Patient Safety Incidents Quality (Defects) Customer Metrics Produc- tivity Profit- ability Meta Analysis Outcomes: Top vs. bottom quartile work units
- 29. Firms of Endearment(FoE) Investor Returns Over Time
- 30. Summary • People-Centric Leadership– where everybody everyday flourishes • Leaders are “entrusted” with these lives • People-Centric Leadership will look different in each company • Minds…Hearts…Hands
- 31. Summary (cont’d) • CurrentState of Leadership / Training: – Episodic engagement – Only educating half of the relationship – Never asked our employees what they wanted • Shared the 6 Pillar approach: – Communication, Care, Alignment, Mentoring & Coaching, Benchmarking the Best and Wellness
- 32. Summary (cont’d) • Equipping,Incentivizing, Turning Loose! • A3 Progression 1,200 completed in one year! • Business Results that differentiate you from the competition!
- 33. Wrap Up • EnterpriseExcellence + People-Centric Leadership / Culture can transform your company and the lives of your employees • The transformation of your company cannot happen without the transformation of your employees!
- 34. One Last Quote “Employeesare not our company’s greatest asset…they are our company!” Bob Pritzker The Marmon Group / Colson Associates
- 35. Thank You! Your opinionis important to us! Please take a moment to complete the survey using the conference mobile app. Session No: ThP/42 Love & Lean George Saiz AME gsaiz@ame.org