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Creating and Sustaining a Continuous Improvement Culture Rick Landin Brian Wellinghoff.

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1 Creating and Sustaining a Continuous Improvement Culture Rick Landin Brian Wellinghoff

2  Express our belief that business can be a positive force within our society  Dig deeply into concrete experiences that have defined our journey  Detail how we foster our L3 culture  Assist you in finding at least one idea you can implement on tomorrow morning Our Purpose

3 Living Legacy of Leadership fulfillment. We commit to a sustained leadership model that creates a culture where each of us returns home with a sense of fulfillment.

4  Daily Communication  Responsible Freedom  Empathy  Celebration “Everyone has the capacity to be a leader” Living Legacy of Leadership

5 “You introduced us to a new concept of a purpose-driven company. For most of us this was clearly a new and enlightened way to view and act out our roles as a CEO.” Dick Gochnauer, CEO United Stationers “You speak to a basic and heartfelt need found in every person. Thank you most of all for reminding me that leadership is to be, and can be inspirational in this regard…it is easy to lose sight of that basic and essential thought. “ Rob Colones, CEO McLeod Health Feedback to our Vision

6 L3 Journey MWU (Hunt Valley) Comparing FY ‘07 to FY ’08: 100% increase in OI 27% sales growth Increase in inventory turns from 6.3 to 7.3 These results are the by-products of our people-centric leadership focus

7 L3 Team

8  The L3 Team (or Lean Promotions Office) has the full- time responsibility to facilitate the change process along the L3 Journey L3 leaders  35 L3 leaders are engaged across a dozen North American locations, plus 2 international L3 leaders  An L3 Team member’s most important role is to be a change agent- L3 leaders become proficient in communication, recognition, and emotional intelligence  Local resources benchmark every other BW division for best practices Role of the L3 Team

9  Along our L3 Journey, we have new opportunities to identify and recognize outstanding leaders Nurturing Exceptional Leaders

10  In the last year, we have completed More than 200 Kaizen events More than 100 Lean projects More than 1000 person-days of training  More than 30 value streams enhance our communication and the responsiveness to our customers on a daily basis Exceptional People; Exceptional Results

11 “much of the world now face extraordinary challenges, “The American economy and much of the world now face extraordinary challenges, and confronting these challenges will continue to require extraordinary actions.” – Timothy Geithner, Treasury Secretary (March 23)  We are more committed than ever to enhancing our contribution to strengthen the future and fulfillment of all Barry-Wehmiller associates.  Given the overall economic environment, we are an integral part of the value proposition to create a future in harmony with each organization’s vision. Addressing the Economic Climate

12 L3 Journey  As we experience softness in the production schedules, we have launched Lean events focused on short and long-term value creation, creating productive work for team members who may otherwise be idle.  We are focused on investing in our people and our businesses to emerge from this period even stronger. I feel privileged to be a part of the Barry-Wehmiller family and to work for a company that I believe truly does care about the lives and well being of the people that are a part of it and has our best interest in mind to ensure a long and stable future for all of us. – Samantha Ramsey

13  Prioritized list of projects tied to the organizational strategy deployment (Hoshin Kanri) process. Prioritized based on need, justification, payback potential. Activities that will allow the organization to be more efficient and competitive coming out of the downturn in the economy. Keeping People Creating Value

14 Firsthand Stories Rick Landin

15 Firsthand Stories of our Culture  HayssenSandiacre is a 100 year-old manufacturer of form/fill/seal equipment  Combination of 2 acquisitions by Barry- Wehmiller in 1997 & 2006  A “good place to work” with a strong track record of performance

16 Firsthand Stories of our Culture  In 2002, our team members helped author the Guiding Principles of Leadership- which challenged our view of culture  We realized that our “traditional” manufacturing practices weren’t aligned to our new vision, and we began to make changes  Took out time clocks  Took out start/break/quit alarms  Flexible work schedules  Computer access to all team members  Touch meetings throughout the facility

17 Firsthand Stories of our Culture  In 2007, with the retirement of several key manufacturing leaders we moved to a new structure in manufacturing with 7 team leaders.  These hardworking individuals had a wealth of experience, but no formal leadership training.  Through BWU, we began to focus on communication skills and leadership training.

18 Firsthand Stories of our Culture My own BWU experience-  Working for someone at the top who cares about my personal development  Bob leads by example- with genuine caring for us and the people we touch inside and outside work.

19 Firsthand Stories of our Culture


21 People-Centric Leadership Through people-centric leadership, we align... head heart hands the head to a vision the heart through inspiration the hands to continuous improvement trust FULFILLMENTvalue creation for ALL stakeholders The results are... sustainable levels of trust, FULFILLMENT and value creation for ALL stakeholders

22 Continuous Improvement Culture  Questions?

23 Practical Leadership Development Rick Landin Rhonda Spencer

24 Practical Leadership Development  The most important leadership development comes from experience.  We are committed to continuing to grow as a company, so that people have opportunities to grow through experience.  Our leadership culture, brought to life in the L3 journey, is critical to creating an environment for personal growth.

25 integrated, inspirational and sustainable  Barry-Wehmiller University is founded upon the conviction that it is our responsibility to develop an integrated, inspirational and sustainable way of living our L3 vision. power of business  It is our belief that we can use the power of business to dramatically impact the world in a positive way. Barry-Wehmiller University

26  If we want to change the world, we must change the way we lead. inspiring deep and lasting personal change.  We are committed to inspiring deep and lasting personal change. Barry-Wehmiller University

27  In our first two years, Created over 250 hours of unique teaching content Engaged 650 students in the BWU learning experience Certified 65 BW Leaders to share their gifts through professorship Delivered over 4,900 person-days of learning Launched online Learning Center to support access to the University across the organization Barry-Wehmiller University

28  What is Taught - (Curriculum) The distinctive Barry-Wehmiller Leadership brand.  Who Teaches - (Professors) Frontline leaders collaborating with BWU leadership on the creation and presentation of training.  How we Teach – (Process) Pre-work, inspirational training and supportive post-work that enables real leadership transformation. BWU’s Brand of Leadership

29  Who we teach - (Students) We target those individuals who have the greatest capacity to respond. Each student must demonstrate their desire and commitment through an application process. It is an honor to be selected. BWU’s Brand of Leadership  We do not have a top-down approach. We reach out to the natural leaders in the organization- regardless of role.

30 BWU Delivery Channels EnterpriseDivisionalVirtual Individuals apply Participants from various divisions Limited capacity, highly selective Emphasis on significant behavioral change Taught locally BWU certified professors Divisions drive capacity Emphasis on expanding a specific skill set Learning Center or via webinar Available “on- demand” Nearly unlimited capacity Emphasis on building understanding

31 Delivery Channels Enterprise Leadership Fundamentals L3 Fundamentals Professor Training Mentorship Leading in an L3 Culture Divisional Communication Skills L3 Continuing Education Virtual WebinarsOnline Modules

32 BWU Student Experience  Every aspect of the BWU experience is carefully designed to impact significant personal change. Nothing happens by accident!

33 BWU Student Experience Application Process Captures desire to learn Attendance is an honor Pre-Work Builds anticipation, awareness and knowledge Training Event Lays a foundation of understanding and knowledge Post Work Skill development and action

34 Pre-WorkeVokeMentorshipForums Occurs Weekly Personal Reminder Leverages Technology Invites Personal Action Refocuses Memory Occurs Pre-Class Set Personal Direction Leverages Course Objectives Focuses Mindset Pre & Post Training Process Elements Occurs via Conference Call Peer Relationships Invites Discussion & Practice Creates Community Peer Accountability Personal Relationship Leverages Mentor’s Experience Provides Guidance, Support Focuses on Personal Mastery

35 L3 Fundamentals

36  L3 Fundamentals was the first class we launched in BWU  Fundamental to living our visionConnecting why we are doing this to how to do it. L3 Fundamentals

37  Two week experience beyond the classroom Essential lean tools- process mapping, 7s, SMED Leadership behaviors- communication, leading change L3 Fundamentals


39 Leadership Fundamentals

40 I accept the awesome responsibility of leadership. Leadership Fundamentals

41 I practice stewardship of the Guiding Principles of Leadership through my time, conversations and personal development. Leadership Fundamentals

42 My personal communication cultivates meaningful relationships. Leadership Fundamentals

43 I reflect to lead my team in Achieving Principled Results on Purpose. Leadership Fundamentals

44 I exercise responsible freedom, empowering each of us to achieve our potential. Leadership Fundamentals

45 Professor Experience

46 Practical Leadership Development  Questions?

47 Measurements: Winning the Game Rick Landin Brian Wellinghoff

48 What it Means to Win  How do you define winning?  Why can’t the game of business be fun, challenging and rewarding?

49 What it Means to Win  This is what it means to win at Barry-Wehmiller

50 Winning in Operations: Service Parts Value Stream

51 Service Parts Value Stream Raw Matl Supermarket Machining Cell Kanbans (VIS) Pack and Ship “80/20 Rule” Parts Staging Administrative Cell Customer

52  25% Reduction in Lead Times  Empowered and Fulfilled Associates Service Parts Value Stream

53 Continuous Improvement!

54  It’s is amazing to see how far we came on our journey in such a short period. Who would of thought asking people ‘What do you think’ would have brought us so far in 2 years? - Manufacturing Team Leader  The three most powerful words I say to myself on a daily basis are “We own it!”. We own the successes and the failures, the culture and the processes, and we do it together as a team. Each team member feels they have the right and responsibility to make a positive impact. -Administration Team Leader  The SPVS has given me the opportunity to advance and now I like coming to work. -Manufacturing Team Member Team Member Feedback

55  “It would be malpractice if every prospective customer did not receive a tour of the SPVS” – PCMC Sales Engineer  Only a handful of our suppliers have on- time shipping performance that comes close to PCMC – Customer Comment  FY08 results as measured by this customer: 97.2% of Shipments On-Time as Requested 99% of Parts Arrive in 5 days or less Customer Feedback

56  The WIN line Winning at Hayssen

57 Winning in the Office: Org Empowerment Team

58 Within our unique business strategy, we commit to grow leaders, foster a culture and develop organizational systems that inspire people to achieve their full potential--to build the foundation of a living legacy of leadership. Org Empowerment Team Vision

59  Every morning at 8:15am CT  Define what it means to win for that day  Include project goals and personal connection Daily Touch Meeting

60  Discuss priorities for the team  Chart team involvement on projects  Establish milestones for accountability Matrix Meeting

61 Winning in the Office- HayssenSandiacre  InforXA implementation at an acquired business in Nottingham, England  The team leader put her Leadership Fundamentals skills to work in her project management role  Daily “Reflect to Lead” to check her alignment to the GPL and 12 practices.  Team decision making

62 Winning in the Office- HayssenSandiacre “ Lisa introduced many different GPL and L3 ideas to the group to help us work together through the difficult task. Lisa, as a leader, guided the team towards the end goal, keeping morale high even when we were faced with difficult challenges and confrontations. As the youngest member on the team, Lisa extracted the best from me and helped me improve and grow as an individual. With Lisa’s encouragement, I began to voice my ideas and came out of my shell to become a respected member of the team.”

63 Winning in our Culture: H3 Award Program

64  Our special vehicle programs create unique reactions for our everyday leaders  Based on nomination or selection, those who exemplify the culture have the chance to drive a special vehicle for a week H3 Award Program The ability to share this honor with family and friends is priceless!

65 H3 Award Program The H3: Head, Heart, and Hands program is an award to recognize outstanding instances or continuous excellence in L3, our Living Legacy of Leadership. It is based around the concluding sentence in our L3 Document: “As we move forward on this journey, we will be inspired to engage our head, heart, and hands, to create habits that result in extraordinary levels of achievement and fulfillment.”

66 Believe with yourCreate with yourDeliver with your HEARTHEADHANDSH 3 Congratulations to John Kondratuk

67 H3 Award Program

68 Measurement: Winning the Game  Questions?

69  We believe business can be a positive force within our society, and we hope you will join us  Lean, when applied in a people-centric manner has the power to create sustainable businesses and impact lives  Effective continuous improvement focuses more on coaching, change, and communication then lean tools Our Message

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