Transforming Culture One Leader at a Time

Tuesday, November 15, 2011

ONLINE EXCLUSIVE: Transforming Culture One Leader at a Time

Lea Tonkin, editor in chief

Top organizational performance begins with commitment to sustained leadership that creates a culture where each individual gains a sense of fulfillment. That’s the view of three Barry-Wehmiller presenters at the recent Association for Manufacturing Excellence (AME) Inside Excellence Dallas conference. Brian Wellinghoff, director of the company’s Living Legacy of Leadership (L3) journey; Dick Ryan, corporate lean journey (L3) leader; and Ken Coppens, L3 development coach and specialist, shared suggestions for “Transforming Culture, One Leader at a Time.” Barry-Wehmiller, a $1 billion+ company, is a global provider of capital equipment. The St. Louis-based company primarily serves packing, packaging, corrugating, and converting markets.

In the company’s L3 philosophy, every associate has the capacity to be a leader. All employees are encouraged to develop their capabilities and understanding through daily communication, responsible freedom, empathy, and celebration, said Wellinghoff. He explained that Barry-Wehmiller’s Guiding Principles of Leadership spells out the company’s commitment to individual as well as organizational benefit.

The Phillips, WI, plant, for example, reflects performance gains built on facility-wide personal and organizational development. The facility’s operating income rose 250 percent since fiscal year 2008, despite the recession. Meanwhile, sales climbed to pre-recession levels, inventory turns doubled (shaving $13 million from inventory), and on-time performance increased from less than 50 percent to more than 90 percent. Ryan also cited performance improvements in new product development (through a dramatic decrease in warranty costs and increased sales of innovative products — more than 50 percent of sales the previous year resulted from products introduced within the past four years) and the Mods/Rebuilds value stream. These results are by-products of the company’s people-centric leadership focus, he said.

Strategy deployment, or hoshin kanri, aligns strategies across different departments. Related communications specify resources needed to complete projects as well as the structure to prioritize and monitor projects. Cross-functional management enables leaders and all stakeholders to manage and support cross-department projects, said Coppens.

“A key in our organization to achieving results on a day-to-day basis is accepting responsibility,” Coppens said. “I accept responsibility by asking, ‘What can I do to help people achieve what they need to do?’” Associates work toward improvements in safety, on-time performance, and other areas using their skills and understanding. “Understand your value stream and daily production goals,” said Coppens. “Know your supply and capacity. Standard work should be developed and posted.” Leader standard work and visual controls support these initiatives.

Celebrating achievements also encourages high performance, Wellinghoff said. For example, employees nominate fellow workers for recognition in the company’s special vehicle programs. Award recipients drive a Hummer or other selected vehicle for a week, sharing the honor with family and friends.

“We believe business can be a positive force within our society, and we hope you will join us,” said Ryan. “Lean, when applied in a people-centric manner, has the power to create sustainable businesses and impact lives.” He added that effective continuous improvement must be sustained over time.

Editor’s note: For additional information on effective leadership, people development, recognition, and cultural change, see “Shared Trust and People-Centric Leadership."