Building Organizational Culture on Correct Principles

Robert Miller Executive Director The Shingo Prize

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

Copyright The Shingo Prize Administered by the Jon M. Huntsman School of Business at Utah State University

Building Organizational Culture on Correct Principles

Robert Miller

Executive Director, The Shingo Prize

We began a journey to find the best way to build excellence

into organizations

24 Years Ago

Shigeo Shingo

1. A very high standard 2. A way to see reality 3. Had to be much deeper

VSM

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What have we Learned?

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1. Tool-Based Architecture

2. Event-Based Deployment

3. Result-Based Orientation

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This is not bad or wrong

ITS JUST NOT ENOUGH!

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WHAT ELSE HAVE WE LEARNED?

Tool, Event, Results-Based

Architecture

It has to be about the Culture!

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We Cannot Merely: Delegate Program

Train Or Problem Solve

Our Way Across the Bridge!

Culture

Results

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Architecting and Building Culture is Perhaps the Most Important Leadership Responsibility

Culture

CULTURE Behavioral evidence

what we value (individually)

thinking/beliefs emotions/attitudes behavior

CULTURE

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

de facto

CULTURE Values govern behavior

ONLY A CULTURE BUILT ON CORRECT PRINCIPLES IS SUSTAINABLE

Jon M. Huntsman Presidential Chair in LeadershipUTAH STATE UNIVERSITY

12

what we value

thinking / beliefs emotions / attitude behavior

CULTURE

ideal

VALUES govern BEHAVIOR PRINCIPLES govern CONSEQUENCES

If principles govern consequences, value principles. - Steven R. Covey

Anchored to Guiding Principles desired

NATURAL LAWS THAT ARE Universal, Timeless, Self-Evident

PRINCIPLES

GOVERN The Consequences (Outcomes) of Business

Respect Every Individual

Flow Value To Customers Lead with Humility

PRINCIPLES of

Gravity

Science Human Relationships Business

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

POWER of principles?

Predict the outcome of .GRAVITY SEE INTO THE FUTURE!

POWER of principles!

Predict the outcome of . respecting every person

SEE INTO THE FUTURE!

POWER of principles!

Predict the outcome of .FLOW SEE INTO THE FUTURE!

BEHAVIOR INSIGHT

DISCOVER

Principles govern a consequence.

The POWER of Principles

PRINCIPLE Consequence

We can adjust our systems to drive ideal behavior predictability

Sys.

Sys.

Sys.

We can predict the behavioral consequence predictability

Think in terms of categorical principles - Shigeo Shingo

Lead with Humility Respect Every Individual

Focus on Process Embrace Scientific Thinking Flow & Pull Value Assure Quality at the Source Seek Perfection

Create Constancy of Purpose Think Systemically

Create Value for the Customer results

alignment

process

people GUIDING PRINCIPLES SUPPORTING PRINCIPLES

Cultural Enablers

Enterprise Alignment

RES

ULT

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Continuous Improvement

From Good to Greatto below average? 2001 - 2009

From Good to Greatto below average?

* CAUTION: Not Bullet Proof

- Taiichi Ohno

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

1 ISSUE ARROGANCE # (Lack of Humility)

We are what we repeatedly do. Excellence, then, is not as act, but a habit. - Aristotle

Shingo Transformation Process

Act our way into a new way of thinking - Uncertain

BRIDGING the GAP

People dont dislike change, they dislike uncertainty. Leaders loath uncertainty.

WHY the need to focus beyond tools?

Principles clear the fog. Become what we envision! A new global dialogue!

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