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Building Organizational Culture on Correct Principles

Robert Miller Executive Director The Shingo Prize

Correct Principles Robert Miller Executive Director The Shingo Prize MWCC Mid-Atlantic Lean Conference 7-8 November, 2012

MWCC Mid-Atlantic Lean Conference 7-8 November, 2012

“Building Organizational Culture on Correct Principles” Robert Miller Executive Director, The Shingo Prize Copyright

“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

Shingo Prize Copyright © The Shingo Prize Administered by the Jon M. Huntsman School of Business
24 Years Ago
24 Years Ago
24 Years Ago Shigeo Shingo 1. A very high standard 2. A way to see reality

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

way to see reality 3. Had to be much deeper We began a journey to find
1. Tool-Based Architecture 2. Event-Based Deployment 3. Result-Based Orientation
1. Tool-Based
Architecture
2. Event-Based
Deployment
3. Result-Based
Orientation

What have we Learned?

EVENTS VSM TOOLS RESULTS
EVENTS
VSM
TOOLS
RESULTS
Architecture 2. Event-Based Deployment 3. Result-Based Orientation What have we Learned? EVENTS VSM TOOLS RESULTS
This is not bad or wrong…
This is not bad or wrong…
IT’S JUST NOT ENOUGH! EVENTS VSM TOOLS RESULTS
IT’S JUST
NOT ENOUGH!
EVENTS
VSM
TOOLS
RESULTS

WHAT ELSE HAVE WE LEARNED?

Tool, Event, Results-Based Architecture EVENTS VSM TOOLS RESULTS
Tool, Event,
Results-Based
Architecture
EVENTS
VSM
TOOLS
RESULTS
HAVE WE LEARNED? Tool, Event, Results-Based Architecture EVENTS VSM TOOLS RESULTS It has to be about
HAVE WE LEARNED? Tool, Event, Results-Based Architecture EVENTS VSM TOOLS RESULTS It has to be about

It has to be about the Culture!

HAVE WE LEARNED? Tool, Event, Results-Based Architecture EVENTS VSM TOOLS RESULTS It has to be about
HAVE WE LEARNED? Tool, Event, Results-Based Architecture EVENTS VSM TOOLS RESULTS It has to be about
HAVE WE LEARNED? Tool, Event, Results-Based Architecture EVENTS VSM TOOLS RESULTS It has to be about
HAVE WE LEARNED? Tool, Event, Results-Based Architecture EVENTS VSM TOOLS RESULTS It has to be about
HAVE WE LEARNED? Tool, Event, Results-Based Architecture EVENTS VSM TOOLS RESULTS It has to be about
HAVE WE LEARNED? Tool, Event, Results-Based Architecture EVENTS VSM TOOLS RESULTS It has to be about

We Cannot Merely:

Delegate Program Train Or Problem Solve Our Way Across the Bridge!

EVENTS VSM TOOLS
EVENTS
VSM
TOOLS
RESULTS
RESULTS
We Cannot Merely: Delegate Program Train Or Problem Solve Our Way Across the Bridge! EVENTS VSM
We Cannot Merely: Delegate Program Train Or Problem Solve Our Way Across the Bridge! EVENTS VSM
Culture
Culture
We Cannot Merely: Delegate Program Train Or Problem Solve Our Way Across the Bridge! EVENTS VSM
We Cannot Merely: Delegate Program Train Or Problem Solve Our Way Across the Bridge! EVENTS VSM

Architecting and Building Culture is Perhaps the Most Important Leadership Responsibility

Results EVENTS VSM TOOLS RESULTS
Results
EVENTS
VSM
TOOLS
RESULTS

Culture

and Building Culture is Perhaps the Most Important Leadership Responsibility Results EVENTS VSM TOOLS RESULTS Culture
and Building Culture is Perhaps the Most Important Leadership Responsibility Results EVENTS VSM TOOLS RESULTS Culture
and Building Culture is Perhaps the Most Important Leadership Responsibility Results EVENTS VSM TOOLS RESULTS Culture
and Building Culture is Perhaps the Most Important Leadership Responsibility Results EVENTS VSM TOOLS RESULTS Culture
and Building Culture is Perhaps the Most Important Leadership Responsibility Results EVENTS VSM TOOLS RESULTS Culture
Behavioral evidence
Behavioral evidence
Behavioral evidence C U L T U R E

CULTURE

Behavioral evidence C U L T U R E
CULTURE Values govern behavior behavior what we thinking/beliefs emotions/attitudes value (individually) The

CULTURE

Values govern behavior

behavior
behavior
what we thinking/beliefs emotions/attitudes
what we
thinking/beliefs
emotions/attitudes

value (individually)

The fundamental KEY in leading change successfully is NOT focusing on attitude. Instead, focus on behaviors.

de facto
de facto

CULTURE

KEY in leading change successfully is NOT focusing on attitude. Instead, focus on behaviors. de facto
ONLY A CULTURE BUILT ON CORRECT PRINCIPLES IS SUSTAINABLE Jon M. Huntsman Presidential Chair in
ONLY A CULTURE BUILT ON CORRECT PRINCIPLES IS SUSTAINABLE
ONLY A CULTURE BUILT ON CORRECT PRINCIPLES
IS SUSTAINABLE
Jon M. Huntsman Presidential Chair in Leadership…UTAH STATE UNIVERSITY
Jon M. Huntsman Presidential Chair in
Leadership…UTAH STATE UNIVERSITY
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 behavior
what we
value
thinking / beliefs
emotions / attitude
behavior
we value thinking / beliefs emotions / attitude behavior Anchored to Guiding Principles ideal desired CULTURE
we value thinking / beliefs emotions / attitude behavior Anchored to Guiding Principles ideal desired CULTURE

Anchored to Guiding Principles

ideal desired
ideal
desired

CULTURE

“If principles govern consequences, value principles.”

- Steven R. Covey

to Guiding Principles ideal desired CULTURE “If principles govern consequences, value principles.” - Steven R. Covey

PRINCIPLES

PRINCIPLES NATURAL LAWS THAT ARE … Universal, Timeless, Self-Evident GOVERN The Consequences (Outcomes) of Business

NATURAL LAWS THAT ARE

PRINCIPLES NATURAL LAWS THAT ARE … Universal, Timeless, Self-Evident GOVERN The Consequences (Outcomes) of Business

Universal, Timeless, Self-Evident

GOVERN The Consequences (Outcomes) of Business

GOVERN The Consequences (Outcomes) of Business PRINCIPLES of … Human Relationships • Respect Every

PRINCIPLES of

Human Relationships •
Human
Relationships

Respect Every Individual

Science
Science

Gravity

Business
Business

Flow Value To Customers

Lead with Humility

Relationships • Respect Every Individual Science Gravity Business Flow Value To Customers • Lead with Humility
“Risk” is the great variable
“Risk” is the great variable

What would it be worth to predict with near certainty the outcome of our actions?

“Risk” is the great variable What would it be worth to predict with near certainty the
“Risk” is the great variable What would it be worth to predict with near certainty the
P O W E R of principles ? SEE INTO THE FUTURE! Predict the outcome

POWER

of principles?

SEE INTO THE FUTURE!

Predict the outcome of ….GRAVITY

P O W E R of principles ? SEE INTO THE FUTURE! Predict the outcome of
P O W E R of principles ? SEE INTO THE FUTURE! Predict the outcome of
P O W E R of principles ! SEE INTO THE FUTURE! Predict the outcome

POWER

of principles!

SEE INTO THE FUTURE!

Predict the outcome of …. “respecting every person”

P O W E R of principles ! SEE INTO THE FUTURE! Predict the outcome of
P O W E R of principles ! SEE INTO THE FUTURE! Predict the outcome of
P O W E R of principles ! SEE INTO THE FUTURE! Predict the outcome

POWER

of principles!

SEE INTO THE FUTURE!

Predict the outcome of ….FLOW

P O W E R of principles ! SEE INTO THE FUTURE! Predict the outcome of
P O W E R of principles ! SEE INTO THE FUTURE! Predict the outcome of

The POWER of Principles

INSIGHT PRINCIPLE BEHAVIOR Consequence predictability Sys. Sys. predictability Sys.
INSIGHT
PRINCIPLE
BEHAVIOR
Consequence
predictability
Sys.
Sys.
predictability
Sys.
DISCOVER
DISCOVER

Principles govern a consequence.

Sys. DISCOVER Principles govern a consequence. We can predict the behavioral consequence We can adjust our
Sys. DISCOVER Principles govern a consequence. We can predict the behavioral consequence We can adjust our

We can predict the behavioral consequence

We can adjust our systems to drive ideal behavior

govern a consequence. We can predict the behavioral consequence We can adjust our systems to drive
“Think in terms of categorical principles” - Shigeo Shingo results Create Value for the Customer
“Think in terms of categorical principles”
- Shigeo Shingo
results
Create Value for the Customer
alignment
Create Constancy of Purpose
Think Systemically
Enterprise
Alignment
process
Focus on Process
Embrace Scientific Thinking
Flow & Pull Value
Assure Quality at the Source
Seek Perfection
Continuous
Improvement
people
Lead with Humility
Respect Every Individual
Cultural Enablers
GUIDING PRINCIPLES
SUPPORTING PRINCIPLES
RESULTS
Lead with Humility Respect Every Individual Cultural Enablers GUIDING PRINCIPLES SUPPORTING PRINCIPLES RESULTS

From Good to Great…to below average?

From Good to Great… to below average ? 2001 - 2009

2001 - 2009

From Good to Great… to below average ? 2001 - 2009

From Good to Great…to below average?

From Good to Great… to below average ? # 1 ISSUE… ARROGANCE (Lack of Humility) “Without

#

1 ISSUE… ARROGANCE

Good to Great… to below average ? # 1 ISSUE… ARROGANCE (Lack of Humility) “Without constant

(Lack of Humility)

“Without constant attention, the principles will fade. The principles have to be ingrained, it must be the way one thinks.”

* CAUTION:

Not Bullet Proof

- Taiichi Ohno

The principles have to be ingrained , it must be the way one thinks.” * CAUTION:

Shingo Transformation Process

Shingo Transformation Process We are what we repeatedly do. Excellence, then, is not as act, but

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

then, is not as act, but a habit. - Aristotle Act our way into a new
W H Y the need to focus beyond tools? BRIDGING the GAP Principles clear the

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.

we envision! A new global dialogue! People don’t dislike change, they dislike uncertainty . Leaders loath

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