An organization is a reflection of its leaders. So if the organization is not performing well, the leader does not have to look too far for answers. If safety performance is one of the core concepts that supports the vision, then how does leadership walk the talk? Do they talk about safety every day? Is it discussed at the beginning of every day, at the end of the day or not at all? Are the safety metrics visible for all to see or are they shared only in times of crisis? Do leaders hold team members accountable to follow safe work practices or do they turn a blind eye? Are systems like root cause analysis in place to support the vision of an injury free work environment? Are leaders engaged with the team every day, recognizing and congratulating good safety performance or are they visible only when an accident occurs?  Leading by example is a frequently overly used expression but it is critical to boost performance and to create a common vocabulary.

Think back in your career, how many times have you witnessed a contradiction of what is said to what is actually being done. For example, you visit an organization, go through the safety orientation, get equipped with your personal protective equipment (PPE) and then head out into the plant only to witness several team members not wearing their PPE. What does this say about the organization, about accountability, about leadership?  The bottom line, employees look to their leaders for direction and for leadership. If the leader’s words are in contradiction to his or her actions, employees will notice and respond accordingly. Great leaders recognize that “walking the talk” is a critical part of leadership.

An outstanding way for leaders to walk the talk and model the vision is by conducting a “gemba walk”. Gemba is a term in the Toyota Production System that means factory floor. From my perspective, this activity is the most gratifying, enjoyable and valuable part of the day. Over the course of my career, I have adopted this strategy and have determined it to be a critical component in transforming the culture and elevating performance. The walk is conducted on a daily basis, and at times accompanied by another manager or a team member from the production floor. A central theme is predetermined, derived from the tactical attributes that the team is engaged in to drive improvement and elevate performance. By selecting different themes for every walk, all the core concepts of the organization would eventually be covered. The intention of the “gemba walk” is to verify purpose and value of the various concepts that drive the vision both from the perspective of the company and also of the team.  The themes vary from quality, safety, cost savings, continuous improvement, 5S, people development, eliminating waste, culture and awareness, morale, communication etc. Throughout the walk, a series of questions are asked of the team leaders and team members. Questions are asked to gain clarity as to how the team use the concepts, what improvement suggestions they have, how often do they use the tools/charts etc. The greatest value is in listening to the responses, the sharing of ideas and encouraging the team to understand the importance of their work. In conducting these “gemba walks”, several things were accomplished: the creativity of the team was unleashed, a sense of contribution and purpose was established, an engaged team was created, and most importantly, a link to the overall goals and vision was demonstrated along with a common purpose and vocabulary.

In conclusion, when a leader takes an active interest in a given subject matter, the team in turn is interested in supporting the leader. The opposite is also true and if the leader shows no interest in an item, the team will generally think it is not important as well. Leaders set the tempo and set the example for the rest of the organization to follow. Walking the talk is the critical leadership link that enables organizations to achieve operational excellence and cultural transformation.

So how do great leaders bring out the best in their people? After all, business is all about making money, right? It’s about speed, bottom line, efficiency, cost, etc. Who can argue with that?  However, equally true and vital for long term, sustainable results are direction, vision, principles, purpose and effectiveness. In other words it’s about people and leadership. From my professional experience and from the mentorship I received throughout my career, bringing out the best in people is accomplished through a journey of vision, clarity, transparency, creativity and recognition. 

Creating a vision. The vision connects what customers care about to what the organization is passionate about giving. As mentioned in my last post, great leaders empower people to discover something the organization can be great at, something the organization can be passionate about and something the organization should focus on to maximize profitability. The vision is a view of what can be and what will be. The key is linking the vision to an inspiring, motivating direction and purpose shared by all who are involved.  Involving the team to answer the questions … how will we get there? what will we do when we get there? how will we act while we get there? is a great way to gain commitment and it directly affects how organizations secure buy-in to achieve its mission.

Creating organizational clarity. Ensuring that the whole system is working together and supporting the vision. This isn’t about slogans on the wall or flavour of the month vision statements. It is about leadership that fundamentally agrees on the core values, structure, people, processes, goals, metrics, communication, decisions, rewards,   and concepts that drive the vision. It is about leaders that walk the talk and constantly model and reinforce what is important to the organization. Organizational clarity provides employees at all levels with a common understanding, vocabulary and more importantly, it empowers teams with a true sense of autonomy and confidence.

Cascading the message. An environment of transparency is critical. Information flows and cascades repeatedly and simplistically throughout the organization so that all employees within every department remain aware, engaged, involved and committed. Goals and metrics that support the vision are communicated throughout the organization in various mediums, from daily departmental meetings to structured Town Hall meetings. Smaller group meetings are held throughout the organization to solve problems or come up with continuous improvement ideas. With this, employees share a common purpose and direction, know where the company is going and more importantly, know how they contribute to the success of the organization.

Unleashing the creativity. No matter the industry, give your teams the leadership they need to get started; a goal, a timetable and let them get to it.  The engagement, input and accountability of your teams is invaluable to drive the overall vision and the goals that support it. You will be amazed at the level of talent, ability, creativity and enthusiasm that is inherent in your teams. It is up to leadership to be patient, and to believe in the potential of their people. Different people develop at different rates and the best leaders are always on the lookout for hidden capacities.

Reinforcing and recognizing. Create systems and procedures that reinforce the behavioural model valued by the organization. This includes the hiring process, the succession planning process, the performance appraisal process, the performance management process and the recognition process. Celebrate successes, take time to recognize the achievements and reinforce the vision constantly.  The true value of bringing out the best in people is accelerated when the whole system is aligned to the vision. In other words, common purpose, common direction, common values and leadership that walks the talk consistently, everyday.

So how did Toyota rise from humble beginnings to a thriving global giant? According to David Magee, author of  How Toyota Became #1 , Toyota’s amazing twenty five year run was achieved by respecting their people and by maintaining a focus on a business structure that encourages every employee to be actively engaged to pursue the organization’s vision and goals. This is why Toyota not only produces great cars, but also great leaders. Toyota’s management philosophy is focussed on maximizing the strengths of their employees instead of criticizing their weaknesses.  Magee goes onto say that Toyota leadership expect their employees to go beyond what they are told and be creative in building quality into the process.

Bringing out the best in people is, without a doubt, the competitive edge for sustainable long term results of successful organizations.

Collins makes the excellent point that you must begin with the right people. It’s not only getting the right people on the bus but also getting the wrong people off the bus and getting the right people in the right seats on the bus.  He emphasizes that the people must come before you decide exactly how your company will achieve success. Collins’ research says the CEO’s at the time companies become great aren’t egotistical business leaders. Rather, they tend to be reserved people who focus their ego into building their companies. The belief is that, if you select the right people, they’ll do what’s best for the company rather than for themselves. Great leaders empower the right people to discover something the organization can be great at, something the organization can be passionate about and something the organization should focus on to maximize profitability. We learn that in great companies there is often heated debate about what’s best for the company. The culture of great companies is open in the sense that transparency prevails.

Some of the greatest organizations today have turned themselves upside down. They have found that the old top-down pyramid style management structure doesn’t work. Progressive companies have flipped the pyramid over, giving employees more say in what goes on. Some organizations call it “participative management” others call it “employee involvement” and Toyota calls it “respect for people” which is at the core of the Toyota Production System. And it works, as evidenced in improved morale, productivity, safety, quality, efficiency, delivery and customer satisfaction.

Interested in inverting the pyramid in your operation? Here are some helpful tips:

• Engage employees to find better, safer, easier ways to do their jobs. You will be pleasantly surprised at how valuable some of the suggestions are. 
• Employees from all levels of the organization should provide ideas not just those who have direct involvement. Sometimes the greatest ideas come from unlikely sources. 
• Treat employees with dignity, respect and honesty. Explain the reasons that underlie a decision or policy. Leaders that convey organizational clarity (what & why) and seek employee input (how) tap into something very powerful. 
• Empower employees. Spread authority around. If the largest part of the pyramid is at the top, then the top people should have more authority. Don’t sugar coat and dictate but rather, engage and collaborate.

It’s not uncommon for employees at Toyota or Johnson Controls who see a problem to shut down the whole assembly line until the problem is resolved. By giving employees more control and more involvement in their work environment, you tap into a valuable source of ideas that fuels continuous improvement efforts and enables organizations to grow and prosper.

One of those leaders is Jerry Beaubien, who mentored and coached me throughout my career at Johnson Controls and made me the leader that I am today.  Jerry retired from JCI in 2004 after an illustrious career of developing leadership, securing wide spread buy-in and driving performance.

His “Lessons in Leadership” were profound and were built on the foundation of respect & dignity and driving improvement through the engagement and commitment of all employees throughout the organization. His vision and implementation of the Johnson Controls Manufacturing System (JCMS; founded on the principles of the Toyota Production Systems), which utilizes manufacturing tools that enable a manufacturing plant (or process) to achieve production at the pace of customer demand with six sigma quality, was critical in the overall success of the organization. In essence, JCMS drove operational excellence in People, Quality and Cost and required a philosophy of absolute customer focus, zero tolerance of waste and a stable work environment. Jerry recognized that organizational change of this magnitude could not be successful without the commitment and buy-in from all employees but also without a recognition program that celebrated successes.

“We had monthly plant manager forums when we introduced JCMS,” says Jerry Beaubien, a vice president and general manager at JCI and a Team Rally founder, “but we needed more volunteers within the plants and buy-in from the employees to take it across-the-board quickly.”Pricing and quality pressures from automakers were taking their toll, and putting the plants on edge. Implementing JCMS, it was thought, would alleviate some of the pressure, and provide a base from which further gains could be made while placing every plant on the same quality footing. Only no one was in a hurry to adopt this new way of doing things. That’s when Beaubien and his team came up with an idea that offered plants an opportunity to celebrate their successes in implementing JCMS, and share their knowledge with others. The team doing the best job of communicating their knowledge of the JCMS tools, accounting for the annual savings, and sharing their knowledge would receive a modest trophy. “The whole thing was local at first, with a total of eight teams participating,” says Beaubien, “but the demand came from the plants to do more, and from the company to expand the concept.” “From there it went global,” he says.

Jerry’s coaching and mentorship has helped me aspire to and succeed in the various leadership roles that I have held over the course of my career.  He has taught me invaluable lessons in being value driven, solution oriented, team builder, change agent along with having sense of urgency, focus and purpose.  I attribute my leadership style of energizing teams, optimizing processes and accelerating performance to the influence and philosophies of Jerry Beaubien.

So, without further ado, I would like to share with you some of Jerry’s “Lessons in Leadership” that he so passionately shared with me.  The following hangs in my office and is a constant reminder of the influence Jerry has had in the journey of my career.  Thank you Jerry! Enjoy…..

A “Real” Leader the “Boss” …

                … Coaches, trains, motivates & inspires; doesn’t just drive

                … Merits goodwill & respect; doesn’t need positional power and authority

                … Arouses creativity & enthusiasm; doesn’t use fear and intimidation

                … Uses we, us and ours; doesn’t need the ego “I”

                … Promotes the team, trust & collaboration; doesn’t empire build

                … Has and makes the job- game fun; doesn’t sport the responsibility

                … Instills freedom, confidence & commitment; doesn’t rain on parades

                … Anticipates & prevents; doesn’t detect & react emotionally

                … Laughs loudest when the joke’s on him/her; doesn’t lack self confidence

                … Learns from & admits mistakes; doesn’t need infallibility

                … Pursues excellence & growth; doesn’t accept failure and complacency

                … Recognizes & acknowledges; doesn’t steal the thunder of others

                … Gathers facts & data; doesn’t rely on opinions and judgements

                … Decides, plans & takes action; doesn’t dilly-dally

                … Listens, cares & assert; doesn’t need to hear himself

                … Says let’s go win/win; doesn’t settle for win/lose

In my next few blog posts I will expand on the concepts of JCMS and on the recognition program of Team Rally.

  http://bit.ly/XsEfT

Imagine that you have been asked to visit two facilities. The following describes what you observed on these tours.

Orange County

You enter the reception area. The receptionist is on the telephone, but smiles and indicates to you that she will be with you in a moment. She is able to quickly finish her conversation and hangs up the telephone. She greets you warmly and asks how she can help you. You explain that you have an appointment with the General Manager. She tells you that he is on the production floor and says that she will page him for you. She offers you a coffee while you wait.

The GM takes only a few minutes to come to greet you in the waiting room. Together you head out onto the plant floor. You notice the plant is clean and organized. Everything is in its place and a place for everything. You pass by the Operations Manager who is updating the production board with hourly statistics. The GM stops and greets him by name and talks for a few minutes about various opportunities. You look around and see many examples of visual management in the area. It is easy to see if things are in a normal or not normal situation.

You and the GM continue your tour and pass a small group of people in a conference room. The GM explains that they are new hires. When you arrived, he had just finished talking with them about the organization’s vision, mission and goals. Their supervisor was now reviewing various work rules and other information they would need to understand before receiving on-the -job training.

As you walk through the operations, you notice that the production team are working hard and everyone seems to have a sense of purpose. People smile and greet each other, the team spirit and camaraderie is apparent. The GM points out a small cross-functional problem solving team working on an issue. He also shares two examples of the latest team continuous improvement efforts which resulted in providing increased value to the customer while enhancing the profits.

You pass another display board and he stops to proudly show you the latest quality figures and other evidence of customer satisfaction data clearly posted on the board. He tells you about other efforts taken to ensure that the employees understand customer expectations and know how the plant is performing. In all, you leave the organization very impressed. Orange County is a productive and well- run organization that is striving to meet operational excellence.

Lemon City

You enter the reception area. The receptionist is working at the computer and does not look up until you speak to her. She looks irritated at the interruption but asks how she can help you. You explain that you have an appointment with the General Manager. She calls his office and leaves a voicemail message and goes about her work. You wait about 10 minutes and ask if she can page the GM. She does so without speaking a word to you.

It takes about another 15 minutes for the GM to come to the waiting room. Together you head out onto the plant floor. You notice the plant seems disorganized as there is inventory stacked on the floor in various locations. The plant does not look clean; there is paper on the floor in the aisle ways and trash is overflowing the bins.

You and the GM pass a few employees and neither the GM nor the employees greet each other. As the tour continues you notice an employee sorting scrap in a rework area. Employees seem to constantly run out of needed parts and there is a fair amount of work-in-progress.

You also see several people operating machinery without safety glasses or gloves. You see other apparent safety issues but the GM does not stop to talk with the people involved and seems not to notice.

You ask the GM how production statistics are communicated to employees. He looks surprised at your question and tells you that the employees just need to do their jobs and don’t really need to know anything else. You ask about the latest quality or customer satisfaction metrics and he says that he will have to get that information from the Quality Manager and Operations Manager.

The two of you go to the Quality Manager and he gives the GM a long list of customer issues. Some of which seem to surprise the GM. In fact, both the GM and the Quality Manager begin to complain about the customer.

The Human Resources Manager approaches the three of you and joins in the complaint session. She then tells the GM that a group of new and temporary employees had started working that day. She was not able to give them an orientation or offer any training because of the large number of people absent that day. The Operations Manager put them right on the assembly line to ensure adequate coverage.

In all you came away from your tour feeling that Lemon City was a very stressed and frantic workplace.

If you were touring these facilities for the purposes of an acquisition, which of the two would you select? How long would it take you to determine the level of leadership at these two organizations? 

A truly remarkable book on this topic is Good to Great by Jim Collins. A great read which illustrates how businesses can transform to greatness. In addition, How Toyota Became #1 by David Magee is a must read. “Toyota not only produces great cars, it produces great leaders.” Also, The Four Obsessions of an Extraordinary Executive by Patrick Lencioni sums it up very well. He illustrates the 4 disciplines to healthy organizations: 1. Build and maintain a cohesive leadership team. 2. Create organizational clarity. 3. Over communicate organizational clarity. 4. Reinforce organizational clarity through human systems.

It is all about Leadership. It’s about vision, engaging employees, developing teams, innovation, strategic planning, goal setting, performance management, continuous improvement, accountability, values and “walking the talk.” Leadership is the absolute key differentiator that transforms organizations to greatness and accelerates revenue growth and profit.

Not every organization will survive this period. Some will go forward, more will be left behind. Those companies that cannot adapt and change will not survive. General Motors has recently decided to adapt and change. Their recent ads talk about the “New General Motors.” It is interesting that “New General Motors” is adapting principals and philosophies that have been around for decades and are the fundamental pillars of the Toyota Production System. As such, the survivors will emerge as changed and strengthened organizations that are able to deal with the market place of the 21st century. They will be living a system of continuous improvement to ensure customer satisfaction, market share, profit growth and long term survival.  

The competitive advantage  for successful organizations is the cultivation of a culture of Operational Excellence. It is the relentless pursuit of excellence each and every day. It is not a slogan on the wall but rather a way of life that requires Vision, Values, Leadership, Communication and Accountability.  At the core of this culture is the engagement and the active participation of team members at all levels of the organization, with an underlying focus on “respect for people.” Progressive organizations understand that an essential part of business strategy and competitive edge depends on the ability to transform the entire organization, at every level, to a customer driven business.  

The concept of customer satisfaction is not new. The ability to create and increase value for our customers is a key differentiator of good to great companies.  It is the fundamental component of the Toyota Production System or also know as Lean Manufacturing. Lean starts with customer service and ends with customer service. It is exceeding customer expectations by delivering to them exactly what they want, exactly when they want it, in the right quantity and in the right quality at the lowest possible cost. 

Cultivating a culture of Excellence is the challenge.  Energizing teams and holding them accountable is the way.  Exceeding customer’s increasing expectations is the answer.