Slide share presentation - building a people-centric culture

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PCL WEBINAR Presented by:The AME PCL Team PEOPLE-CENTRIC LEADERSHIP

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• Introductions • Crisisin leadership • AME vision • Respect for people and continuous improvement • House of PCL • PCL elements • How to get more information & QA PCL WEBINAR

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7 out of10 employees are disengaged or actively disengaged 30% of population is engaged and inspired at work. 50% of population is not engaged. 20% of population is actively disengaged. It is estimated that disengagement costs the US $450 billion to $550 billion annually. Gallup Poll 2013 “State of the American workplace: Employee Engagement Insights for US Business Leaders.” CRISIS IN LEADERSHIP

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Engaged teams • 50%fewer accidents • 41% fewer quality defects • 65% less turnover • Lower healthcare costs • 37% less absenteeism • Come up with the most innovative ideas • Have the most entrepreneurial energy • Create most of the company’s new customers • 21% higher productivity • 22% higher profitability • 10% higher customer satisfaction scores Gallup Poll 2013 “State of the American workplace: Employee Engagement Insights for US Business Leaders.” CRISIS IN LEADERSHIP

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CRISIS IN LEADERSHIP 87%of C suite executives recognize that disengaged employees are the #1 threat to their business. To win customers and a bigger share of the marketplace companies must first win the hearts and minds of their employees.

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EMPLOYEE ENGAGEMENT Employee engagementis a property of the relationship between an organization and its employees. Highly Engaged: Emotionally connected to the mission and purpose of their work. Not engaged: Indifferent toward their jobs – or worse, outright hate their work, supervisor and organization – and can destroy a work unit and a business.

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EMPLOYEE ENGAGEMENT COMPANY EMPLOYEE Weprovide a good paying job with benefits. We care about the health and well being of each individual employee. The growth, development and success of the individual is critically important to the organization. I show up to work on time and do what they tell me to do. Emotionally connected to the mission and purpose of their work. A mutual commitment between the company and the employee

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WHAT CAN WEDO? You can only provide an environment which will inspire people. “The truth of the matter in business is that you don’t do anything by yourself. You create an atmosphere in which people want to do their best. You don’t order anybody to do their best. You couldn’t order Beethoven to compose the 9th Symphony. He’s got to want to do it. And so the head of business is an enabler rather than a doer.” J. Irwin Miller, CEO Cummins, Inc.

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PEOPLE-CENTRIC LEADERSHIP Association for Manufacturing Excellence,(AME), Vision: A manufacturing renaissance driven by people-centric leadership coupled with enterprise excellence. People-Centric Leadership A culture where everyday everyone goes home fulfilled by pursuing excellence and where everybody flourishes. Enterprise Excellence Excellence in people, process and products through the extended value stream, in pursuit of eliminating business waste and creating value for customers.

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ACE METAL CRAFT AERAENERGY ARIENS BARRY-WEHMILLER CASCADE ENGINEERNG COGENT COHEN WOODWORKING CRAIG TECHNOLOGIES DYMATIZE INNOTECH CORP LINCOLN INDUSTRIES OMNIDUCT PANTHEON CHEMICALS SPECTRUM AEROMED STARBUCKS SUR-SEAL TENERE VENTURA MANUFACTURING WOODFOLD

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Lean toolkit in pursuitof safety, quality, cost and delivery Through profound cultural and organizational change THE COUPLING OF PEOPLE-CENTRIC LEADERSHIP & ENTERPRISE EXCELLENCE CI tools People-centric leadership

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RESPECT FOR PEOPLE TheHouse of people-centric leadership Leader Standard Work • Goes to Gemba • Kata Coaching Celebration & Recognition Reflective Listening Visioning Goal Setting • Feedback • Transparency Alignment Reflection Building Relationships Acceptance & Inclusion Inspiration Community & Environmental Stewards Growing Developing Humility FLOURISHING Business / People / Communities Emotional Intelligence Trust • Implicitly Trust • Build Trust

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VISIONING • Ability toimagine the future. • Craft a compelling image or picture of the impact the organization wants to make on the lives of its stakeholders. • What do we value? • Why are we doing what we do? • Where do we want to be in 30 years? • A great cultural vision will: • Drive behavior in the organization. • Make work meaningful. • Propel people to accomplish great things.

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ALIGNMENT / GOAL SETTING Ameans of translating priorities into a plan that is easily communicated so that all people can engage in meeting the organizational goals.

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4 BREAKDOWNS IN EXECUTION

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CREATE A COMPELLING SCOREBOARD Employees need to see simply and visually that the work they do makes a difference Key points • SMART goals • Highly Visible • Immediately tells if winning or losing (celebrate or adjust to get back on track!) What should be happening? What is actually happening? Gap = Problem

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REFLECTIVE LISTENING Listening is notan innate skill. It is learned. “Is anyone anywhere taught how to listen? How utterly amazing is the general assumption that the ability to listen well is a natural gift for which no training is required. How extraordinary is the fact that no effort is made anywhere in the educational process to help individuals learn to listen well.” American Philosopher: Mortimer Adler “For many of us, the opposite of talking isn’t listening. Its waiting.” Daniel H. Pink, “To Sell is Human” “Listening is the most helpful thing a person can do.” Barry Wehmiller University, Communication Skills Training When we listen, we allow people to solve their own problems.

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CELEBRATION & RECOGNITION Recognize People/Teams! Celebrate Success! REWARDS

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IMPLICITLY TRUST “People arealready empowered. People-centric leaders give people the voice and authority to exercise the empowerment they naturally have.” David Marquet, Turn the Ship Around “In order for people to be engaged they must have Latitude of Control, the feeling that if the occasion requires it, the individual involved has the necessary skills to set new strategies to meet the ultimate goal.” Mihaly Csikszentmihalyi, Good Business Believe in the Goodness of People • Relinquish control: Give people control over the work that they do and the environment in which they work. • Push decision making down so that decisions are made by those closest to the information.

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Reliability • Deliver oncommitments Acceptance • Accept people for who they are and honor differences • Other-oriented Openness • Be willing to hear what others have to say • Be honest and truthful • Allow others to see the real you Congruence • Align thoughts, feelings, words and actions with values • Walk your talk 4 elements of trust BUILD TRUST

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HUMILITY • Personal Grounding Beconfident and secure in your values. • If you’re insecure, it is difficult to be humble. • Part of it is transparency, which breeds accountability because everyone can see.

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HUMILITY • Believe thateveryone has unique contributions/ideas • Acknowledge mistakes/missteps • Intentionally give away decision making (subtle but advisory way) • Intellectual humility – without it you are unable to learn “In a global marketplace where problems are increasingly complex, no one person will ever have all the answers.”

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EMOTIONAL INTELLIGENCE SELF SOCIAL RECOGNITIONREGULATION Daniel Goleman, EIModel

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INSPIRATION Purpose “The two mostimportant days in your life are the day you are born and the day you find out why.” Mark Twain Optimism “Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence.” Helen Keller Passion “Passion is the genesis of genius.” Galileo

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GROWTH AND DEVELOPMENT “You gointo flow when your highest strengths are deployed to meet the highest challenges that come your way.” Martin E. P. Seligman, Flourish “Good leaders realize that one of their main tasks is to provide increasing variety and challenge to their workers to prevent stagnation. One way to do this is through growth of the business itself.” Mihaly Csikszentmihalyi, Good Business Engagement Challenge

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• Individuals drivetheir own path for growth and development • Leaders cultivate, encourage and nurture • Defining Goals and target conditions • Defining business needs • Providing “skill appropriate” challenges • Providing variety and opportunities for people to discover their passions and talents • Providing flexible paths for progression • Supporting training • Coaching and mentoring • Providing structure GROWTH AND DEVELOPMENT “If you want to grow your company, grow your people.” Mark Lewis, CEO, Woodfold Manufacturing, Inc.

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ACCEPTANCE & INCLUSION Employees cancontribute to the success of the company as their authentic selves, while the organization respects and leverages their talents and gives them a sense of connectedness. • Better ideas vs. immediate agreement when team is homogeneous • Great source of creativity and innovation • When you include people, they’re naturally going to feel valued • Keeps in touch with customer base “When internal diversity and inclusion scores are strong, and employees feel valued, they will serve our customers better and we’ll be better off as an organization.”

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BUILDING RELATIONSHIPS “I tried toestablish a relationship with each new crew member. I wanted to link our goals, so that they would see my priority of improving the Benfold as an opportunity for them to apply their talents and give their jobs a real purpose.”….“Something happened to me as a result of those interviews. I came to respect my crew enormously. No longer were they nameless bodies at which I barked orders.” Captain D. Michael Abrashoff, It’s Your Ship: Management Techniques from the Best Damn Ship in the Navy. Build Relationships between – employees Warriors who understand one another and who communicate well with each other, who are a cohesive group, who like one another and work well together, who take advantage of differences rather than use those differences to avoid one another, and who put themselves at risk for one another are the most likely to survive and emerge victorious.” Martin E. P. Seligman, Flourish Build Relationships with each and every employee – Everybody has a story

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LEADER STANDARD WORK GOES TO GEMBA

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GOES TO GEMBA LEADERSCHALLENGE Role of the Leader 1) Coach and mentor employee development 2) Develop relationship with the whole individual 3) Encourage problem solving 4) Celebrate and recognize 5) Reflectively listen 6) Force reflection 7) Help team members see Remove Obstacles Role of the leader is to remove systematic obstacles that team members do not have control over.

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LEADER STANDARD WORK GOESTO GEMBA Farming looks mighty easy when your plow is a pencil and you're 1,000 miles from the corn field. Check your motive! • Treat problems like gold • Don’t hunt for things that are wrong Show humility • Get people to solve their own problems / part of growing and developing Respect • Show you care about the individual and value their contribution Alignment • Connect their contribution to the vision and provide positive reinforcement

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REFLECTION & SELF ASSESSMENT Areyou living the organizational values/cultural vision? • Continuous process of understanding and evaluating values, goals and objectives and how congruently behaviors and others perceptions of our behaviors match those values, goals and objectives. • Capacity to self adjust. “Management has a lot to do with answers. But leadership is a function of questions. And the first question for a leader always is: Who do we intend to be? Not What are we going to do? But… Who do we intend to be?” Captain D. Michael Abrashoff, It’s Your Ship: Management Techniques from the Best Damn Ship in the Navy.

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COMMUNITY & ENVIRONMENTAL STEWARDS • Planetis most important business partner. • Deep respect for the environment. • Way they operate, design and develop products. • Community outreach. • Emergence of companies, that fully incorporate a mission to make a social impact into the company’s business objectives. • Companies that act as good stewards take care of the communities they touch and take care of the planet.

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RESPECT FOR PEOPLE TheHouse of people-centric leadership Leader Standard Work • Goes to Gemba • Kata Coaching Celebration & Recognition Reflective Listening Visioning Goal Setting Alignment Reflection Building Relationships Acceptance & Inclusion Inspiration Community & Environmental Stewards Growing Developing Humility FLOURISHING Business / People / Communities Emotional Intelligence Trust

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AME Website: www.ame.org/PCL AME PCLRESOURCES

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Thank You! Maria ElenaStopher Lead AME PCL Team President, Ultimate Lean Inc. mstopher@ultimatelean.com Cell: 240-671-6044 Lisa Weis Co-Lead AME PCL Team Lean Program Director, DEMEP lweis@demep.org Cell: 302-547-8159

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PCL WEBINAR Presented by: TheAME PCL Team

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For more about people‐centric leadership, be sure to check out the 2017 AME International Conference in Boston this fall! For more information, visit the #AMEBostonwebsite, www.ame.org/boston.

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