Building Organizational Culture on Correct Principles Robert Miller Executive Director The Shingo Prize MWCC Mid-Atlan
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Building Organizational Culture on Correct Principles
Robert Miller Executive Director The Shingo Prize
MWCC Mid-Atlantic Lean Conference 7-8 November, 2012
“Building Organizational Culture on Correct Principles” Robert Miller Executive Director, The Shingo Prize
Copyright © The Shingo Prize
Administered by the Jon M. Huntsman School of Business at Utah State University
24 Years Ago
Shigeo Shingo
1. A very high standard 2. A way to see reality 3. Had to be much deeper
We began a journey to find the best way to build excellence into organizations
What have we Learned? 1. Tool-Based Architecture
TOOLS
RESULTS
2. Event-Based
EVENTS VSM
Deployment
3. Result-Based Orientation
This is not bad or wrong…
TOOLS
RESULTS
IT’S JUST NOT ENOUGH!
EVENTS VSM
WHAT ELSE HAVE WE LEARNED? Tool, Event, Results-Based
TOOLS
RESULTS
Architecture
EVENTS VSM
It has to be about the Culture!
TOOLS
RESULTS
We Cannot Merely: Delegate Program Train Or Problem Solve Our Way Across the Bridge!
EVENTS VSM
Culture
Architecting and Building Culture is Perhaps the Most Important Leadership Responsibility
TOOLS
RESULTS
Results
EVENTS VSM
Culture
CULTURE
Behavioral evidence
CULTURE
what we value (individually)
Values govern behavior
thinking/beliefs emotions/attitudes
The fundamental KEY in leading change successfully is NOT focusing on attitude. Instead, focus on behaviors.
behavior
de facto
CULTURE
ONLY A CULTURE BUILT ON CORRECT PRINCIPLES IS SUSTAINABLE
Jon M. Huntsman Presidential Chair in Leadership…UTAH STATE UNIVERSITY
12
VALUES govern BEHAVIOR PRINCIPLES govern CONSEQUENCES
what we value
thinking / beliefs emotions / attitude
Anchored to Guiding Principles
ideal behavior
desired
CULTURE “If principles govern consequences, value principles.” - Steven R. Covey
PRINCIPLES NATURAL LAWS THAT ARE… Universal, Timeless, Self-Evident
GOVERN The Consequences (Outcomes) of Business
PRINCIPLES of… Science Gravity
Human Relationships Respect Every Individual
Business • Flow Value To Customers • Lead with Humility
“Risk” is the great variable What would it be worth to predict with near certainty the outcome of our actions?
POWER
of principles?
SEE INTO THE FUTURE!
Predict the outcome of ….GRAVITY
POWER
of principles!
SEE INTO THE FUTURE!
Predict the outcome of …. “respecting every person”
POWER
of principles!
SEE INTO THE FUTURE!
Predict the outcome of ….FLOW
The POWER of Principles
INSIGHT
PRINCIPLE Consequence
DISCOVER
BEHAVIOR
predictability
Principles govern a consequence.
We can predict the behavioral consequence
Sys.
Sys.
Sys.
predictability
We can adjust our systems to drive ideal behavior
“Think in terms of categorical principles”
results
Create Value for the Customer
RESULTS
- Shigeo Shingo
alignment
Create Constancy of Purpose Think Systemically
Enterprise Alignment
Focus on Process Embrace Scientific Thinking Flow & Pull Value Assure Quality at the Source Seek Perfection
Continuous Improvement
process
people GUIDING PRINCIPLES
SUPPORTING PRINCIPLES
Lead with Humility Respect Every Individual
Cultural Enablers
From Good to Great…to below average?
2001 - 2009
From Good to Great…to below average?
1 ISSUE… ARROGANCE
#
(Lack of Humility)
“Without constant attention, the principles will fade. The principles have to be ingrained, it must be the way one thinks.” - Taiichi Ohno
* CAUTION: Not Bullet Proof
Shingo Transformation Process
We are what we repeatedly do. Excellence, then, is not as act, but a habit. Aristotle Act our way into a new way of thinking… Uncertain
WHY
the need to focus beyond tools?
BRIDGING the GAP Principles clear the fog. Become what we envision! A new global dialogue! People don’t dislike change, they dislike uncertainty. Leaders loath uncertainty.