The Corning Journey to Performance Excellence: Innovation Spanning Three Centuries A discussion of new content in the ASQ Knowledge Center asq.org/knowledge-center This is presentation is part of a member meeting kit offered with assistance from the ASQ Knowledge Center. Find more information and resources here: http://asq.org/knowledge-center/member-meeting-kits.html. The purpose is to involve local Sections and other ASQ member groups in discussions occurring across the Society on key topics in quality. In case you don’t often check in with the ASQ website, the presentation will also point you to some of the content benefits you have access to with your membership through the Knowledge Center. The Knowledge Center is designed to be your front door to ASQ publications and other content resources. It contains editors picks that focus on new content, links to topics and types of publications, and a search function that allows you to search all ASQ publications by keyword. If you have questions or would like assistance before delivering this presentation, contact ASQ Knowledge Center editor Noel Wilson at 414-298-8789 x7304 or nwilson@asq.org. Thank you for delivering the key messages in this case study to your members!

Agenda Summary of key concepts from Corning case study Video clip: Corning performance excellence model Discussion Open networking The agenda is designed based on a 1- to 2-hour meeting, ending in discussion which should ideally lead to open networking. If you expect members to read the case study and view the entire video before attending your meeting, you may wish to eliminate some of the slides summarizing the case study. If you expect most members to be unfamiliar with the case study materials, you may wish to eliminate one or two of the conversation starter slides for discussion. The recommended video clip is 14 minutes long.

Access case study components http://asq.org/ knowledge-center/ case-studies-corning.html Here is a screenshot of the Corning case study homepage: Case study includes PDF article download, video, webcast, and more. All files either are open access or require free registration, so others in your organization will be able to read and view them. The case study is part of the Next Generation Quality Leadership series. More case studies like this are in planning and development, with Purina scheduled for publication in late 2013. Within the written case study, you will find information on: - History of Corning quality journey - How Corning redefined and transformed itself for competitive advantage - Corning’s culture of quality and homegrown scalable approach - Corning’s performance excellence model

Summary of Corning’s journey History of Corning’s journey - Leading company engaged in total quality in the 1980s. Joined Motorola, Ford, Xerox, Milliken, AT&T, Cargill, and other pioneering businesses in the pursuit of quality methodology to increase value. Key concepts included: attack on all fronts (everyone needs to be engaged - quality has to be a total effort), develop small teams that attack projects by fixing processes across company operations, tools of quality are taught to and used by many teams, complete support of the CEO.  - 1990 begins a boom period of world-class quality - Quality integration and Baldrige journey, received Malcolm Baldrige National Quality Award in 1995. - However, decline of market dominance due to market saturation for key products. Corning quality advantage becomes outdated, no innovation hits on the horizon. - Quality renewal begins. Re-assessment of values, strategy, culture, and leadership leads to reaffirmation of primary strategy of invention and innovation and renewal of commitment to being a top manufacturer as well as innovator. Corning redefined and transformed itself for competitive advantage Performance excellence initiative would: - Concentrate on cost advantage. - Preserve and enhance the culture of innovation. - Ensure that the continuous improvement system itself was the best in its class. Corning would use common quality tools such as Six Sigma, lean, and kaizen, and customize them for a unique approach to quality improvement. This approach would have to be imbedded in Corning’s global operations. 

The Corning Performance Excellence Model Corning has achieved its results through its performance excellence model that focuses on values, collaboration, execution, and improvement  The model supported the customization of quality tools and employee training within the new strategy. Corning's culture of quality and homegrown scalable approach enables employees in all functions to participate in improvement activities - Customization and expansion of Six Sigma define-measure-analyze-improve-control (DMAIC) training - eventually, materials were uploaded to the company Intranet website and translated into eight languages for use across the globe. Creation of individual DMAIC, an online offering allowing one person to learn and apply Six Sigma methods to a personal project DESGN, an advanced Design for Six Sigma tool to create new and innovative business processes Lean, a process of eliminating waste without affecting customer value. Corning used lean to reduce waste and improve business process flow. Innovation, a process to support new product and technology development. Corning’s innovation process included five stages, from building initial knowledge to life cycle management. Commercialization applications, the implementation of Six Sigma and other continuous improvement tools to the skills of sales and marketing.

The Corning Performance Excellence Model Don McCabe, former senior VP, manufacturing & performance excellence, Corning For a closer look at the performance excellence system at Corning, show a video clip of Don McCabe, former senior vice president, manufacturing and performance excellence, Corning. McCabe speaks to students in the Master of Engineering Management program at Northwestern University. Full video is available at http://asq.org/2013/07/innovation/cornings-journey-to-performance-excellence-innovation-across-three-centuries.html And on YouTube at: http://www.youtube.com/watch?v=fe-x2SirMFc&feature=youtu.be McCabe’s complete address runs from 16:17 to 30:20.

Corning’s results Longevity: 160 years of leadership in innovation and manufacturing Savings: $1.5 billion in savings over eight years $300 million in savings in one year using four improvement methodologies   Participation and engagement: 3,000 Green Belts & Black Belts 4 individual improvements per year, per employee Following McCabe’s address, Kristine Dale, director, performance excellence, offers more details on deployment of the model and on the results Corning has achieved, which include: Longevity: 160 years of leadership in innovation and manufacturing   Savings: $1.5 billion in savings over eight years $300 million in savings in one year using four improvement methodologies   Participation and engagement: 3,000 trained Green Belts and Black Belts Nearly 1,000 formal improvement projects completed in one year (2011) 100,000 individual improvements across the company every year (average of four per employee)      Dale’s presentation begins at 30:20 and is about 20 minutes long

Conversation starter—business context What are the primary business challenges addressed by Corning’s performance excellence system? What are Corning’s approaches to these three imperatives for meeting today’s challenges … Strategy for growth? Execution? Sustainability? This conversation starter addresses the context for Corning’s performance excellence system and depends heavily on viewing the video of Don McCabe. Some possible business challenges/dynamics to discuss: Need to be the lowest-cost producer of its products Need to leverage total organization – globally diverse talent pool Become more customer and market focused Need for a rallying theme, fundamental strategy Focus on the long term – goal of lasting hundreds of years as “moral compass” rather than short-term stock prices Use of real-time information Collaboration Compressed time cycles Operate on global basis McCabe outlines these three imperatives: - Need to have a growth strategy: Corning grows through innovation - Need to execute: for Corning, this means executing globally, being the best at manufacturing what it invents, being the lowest-cost producer of its products - Need for sustainability: instill and support a culture for longevity, Corning’s seven core values provide a “moral compass” for performance excellence

Conversation starter—evolution of quality How did Corning’s definition of quality change over the years? Why did Corning’s initial approach, which had led to receiving the Baldrige Award, need to evolve?   Encourage discussion of total quality efforts in the US in the 1980s. Also ask what had to be different for Corning’s new approach to succeed. Given the strategic challenges Corning faced in 2002, what key factors needed to be considered in formulating a turnaround strategy? It may help to return to slide 4 to review details of the history of Corning’s journey toward performance excellence. McCabe also discusses the changing global landscape and the need for organizations to evolve, emphasizing quality as the “collaborative competitive advantage.”

Conversation starter—quality and collaboration McCabe calls quality the “collaborative competitive advantage.” Discuss the connection between quality and collaboration How can leaders motivate employees to work collaboratively to create competitive advantage? What are key motivators for employees to engage in collaboration? Can some quality initiatives actually be demotivating?  What role does leadership play in engaging employees? Also note that McCabe predicts “the Individual will be your competitive advantage” in the next ten years.

Conversation starter—leading transformation How can corporate leaders … Disseminate learning on common quality tools and embed quality principles in everyday operations? Assure that quality projects are designed to further strategic initiatives of the organization?   This conversation starter depends less heavily on specific material in the case study. Encourage participants to broaden the discussion to their own organizations and circumstances. How is it possible to design initiatives that don’t require employees to do peripheral non-productive activity, but focus on only the key strategies? You may also want to mention McCabe’s statement that leaders have to have the courage to ask for and expect breakthrough results. People will deliver.

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