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

ITS 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

LeadershipUTAH 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 Greatto below average?

2001 - 2009

From Good to Greatto 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 dont dislike change,
they dislike uncertainty.
Leaders loath uncertainty.