Scanlon September 2004 E-zine
It isn't easy keeping organizations moving forward. This E-Zine shows how the Scanlon Leadership Network and its members work together to create competitive advantage. Tours of excellent organizations like the Magna-Donnelly Newaygo Plant provide real examples of what is working and what is not. Opportunities like our top-level leadership retreat provide leaders with peer-to-peer solutions for current challenges. Working with the Scanlon Foundation and the Hay Group, we were able to assess the current cultures and the desired cultures of Scanlon companies, providing over $200,000 worth of expert benchmarking help at no cost to our members. We are able to react before our competition because we can learn from experts like Dwane Baumgardner and Russ Scaffede even before their books are published. Thomson-Shore shows how our annual conference can be a source of inspiration and change. The "As I See It" column tells the impact of Scanlon from the perspective of those on the frontline. Put all this together and you can see why the Scanlon Plan and the Scanlon Network are where the best ideas come together.
Magna-Donnelly Newaygo Plant hosted Scanlon members and guests on a Lean tour on September 24th. Participants learned about standardized work through a participative simulation. They then toured the plant floor to see the various lean systems and how they are integrated together. We thank all those at Magna-Donnelly who helped to make the tour possible. They were excellent hosts.
Retreat to Offer Leaders Insight, Direction
The Network's annual Leadership Retreat, a unique opportunity for top leaders of Scanlon organizations to exchange views and information about management practices and the role of the Scanlon process in a changing business climate, is scheduled for November 11 and 12 at Brook Lodge. Located in southwest Michigan, this beautiful retreat center was the summer home of Upjohn founder, Dr. W.E. Upjohn and is conducive to relaxation and learning.
"Regardless of the business, leaders face similar challenges, such as satisfying stockholders, customers and employees, profitability, and globalization," said Bill Main, President of Landscape Forms Inc and the executive host of this year's event. "The Retreat focuses on relevant, thought-provoking topics in an informal setting designed for reflection and fellowship."
The 2004 agenda includes four primary discussions that were chosen based on feedback from previous attendees as to what issues are of interest to them. Two long-standing Scanlon advocates, Dwane Baumgardner, former President and Vice Chairman of Magna Donnelly Corporation, and Russ Scaffede, Senior Vice President of S2 Yachts Inc, will preview their upcoming book on leading in an age of lean manufacturing and discuss the correlation between lean manufacturing and the Scanlon Principles. Participants will also discuss the results of a corporate culture survey facilitated by Hay Group that was designed to enhance Scanlon members' understanding of corporate culture, leadership alignment, and the role of gainsharing within a corporate culture. Finally, executives will weigh in on the challenges of globalization and speed - what works, what doesn't and strategies to address these issues - during two panel discussions.
Designed in a convenient format, the Retreat begins with lunch on Thursday and wraps up Friday afternoon, providing a forum for corporate officers and industry heads to network. Top leaders from any Scanlon company are encouraged to attend. For more information, contact Bill Main at 269-381-0396 or billm@landscapeforms.com.
Lean Leads Scanlon Retreat
"Leadership must begin with the Board and the CEO, as they set a company's tone and determine what is important," said Baumgardner. "Senior level executives have a tremendous opportunity to positively influence company performance because they are able to capture the attention of the total organization. On the other hand, a lack of attention can negatively impact the company's results."
Baumgardner and Scaffede believe that many companies struggle with leading in an age of lean because many view lean as a cost-reduction approach that primarily affects manufacturing, rather than a broad-ranging business philosophy that encompasses the company as a whole, including the work of the Board.
As a result, corporations are lax in adopting a lean-thinking business philosophy, developing strong leadership at all levels, and developing and executing strategic and operational policies. The solution, according to Baumgardner and Scaffede, is to alter this way of thinking and address the ensuing triple threat.
"In this book, we will present an executive level framework for bringing these three areas together in a way that is intended to be useful to the company executives and leaders," said Scaffede. "This structure will also be beneficial for managers and employees, who are working hard to respond to myriad business challenges in a globally competitive environment."
Dwane Baumgardner is the former President and Vice Chairman of Magna Donnelly Corporation in Holland, Michigan. Russ Scaffede is currently Senior Vice President of S2 Yachts Inc, also located in Holland.
Conference Inspires Thomson-Shore To Act
Employees at Thomson-Shore Inc, located in Dexter, Michigan, have challenged each other to take lessons learned at the 40th annual Scanlon Conference and put them into action - keeping the Scanlon principles alive and well in their everyday lives. Spearheaded by Process Improvement Coordinator Carl Trisdale, who represented Thomson-Shore on the Conference's 2004 events planning committee for the first of a two-year term, the company has enacted three initiatives to encourage co-workers to utilize the principles.
"Carl really took a leadership role," said Myron Marsh, President/CEO of Thomson-Shore. "When employees returned for the closing meeting, he challenged the committee to brainstorm about what they learned and how those lessons could be applied to our daily operations."
The first and current project is Scanlon Squares, a game posted on the company's Intranet designed to educate and increase employee participation. Every two weeks, Scanlon Squares features a new principle and, through its online response area, encourages employees to ask questions to gain a stronger understanding of the business.
"We received a significant number of questions at the end of the first week alone," said Marsh. "Approximately 20 business-related issues, such as how much money did the company save during a recent shutdown due to lack of work, were directed to the leadership team to answer. We posted three responses every three days for the first few weeks."
To ensure participation continues at this level, employees are eligible for a small gift each week they submit a question or answer. Those who participate are eligible for the grand prize of a $100 gasoline gift certificate. The program began on August 9 and will conclude at the end of October.
The second group established a new way to post Thomson-Shore's business metrics, including incoming business plus quality and cycle-time performance, and increase employee awareness on re-work. For this project, employees will be treated to a company cookout if they improve re-work and performance metrics by 20 percent during the remainder of year.
The final initiative is a toss-across game that is conducted throughout the plant on all three shifts. Employees toss beanbags toward a letter that, when it flips over, reveals one of the Scanlon principles. Participants must then answer a question related to that principle and the team with the most points wins. This brief game averages between five and eight minutes and is designed to educate and increase awareness.
"This has been a successful venture because of the dedicated employees who attended the Conference," Trisdale said. "They were all very enthusiastic about what they learned and created the projects on their own. We have become stronger company owners in the process."
"This is the first time since I've been with Thomson-Shore or worked with any Scanlon company that a group of people have returned from a conference and, on their own initiative, decided what the company needed based on their new knowledge, took ownership and responded," Marsh added. "Carl Trisdale deserves the credit for initiating this and has our thanks."
These three projects are staggered in order to have a steady level of participation among Thomson- Shore's 280 employees and will continue until the next Conference. The company is in the process of establishing new criteria to determine who attends future Scanlon Conferences and expects that the next round of employees will use these programs as a model for 2005.
As I See It - Vicki Miller
Vicki Miller, Midwest Team Cover Artist at Thomson-Shore Inc in Dexter, Michigan, has been with the company for nearly 12 years and credits attending the Scanlon Conference with improving her understanding of the Principles.
"I always knew that we used the Scanlon Principles, but it wasn't until I went to the Conference and learned more about them that I realized just how much they are a part of our daily routine," Vicki said. "I would hear comments, both good and bad, about the changes being made at the company, but the Conference opened my eyes to the fact that we must change in order to stay competitive and produce the best product we can.
"When I saw the picture of a tree with the Scanlon Principles as its roots, what we needed to do to grow as a company really started to make sense. Once you change your thinking and realize that you can change just as the leaves do each season, it becomes a given that the Principles can and will work.
"At Thomson Shore, we have many teams made up of employees and managers that find ways to improve a process so that we can all be proud of the end result - a top quality product. By getting input from the employees who do the work, we are able to understand, discuss and make those necessary adjustments. It's nice to be with a company that is willing to listen and change."
As I See It - Garry Wild
Garry Wild, Master Mechanic, has been with Thomson-Shore Inc in Dexter, Michigan for 32 years and involved with the company's Scanlon Plan since its launch some 27 years ago.
"Over the years, Scanlon has showed us all the best of the company and the worst," Garry said. "It has been instrumental in getting employees involved. I think the suggestion process is one of the biggest advantages of having a Scanlon Plan in place because it gives employees a voice in what's happening.
"While there will always be some people who have a hard time accepting new things, the overall feedback about Scanlon is positive, especially lately. We've had better training on the Scanlon Principles and that seems to get people interested again.
"Scanlon has really showed me how I could make improvements to my job - that I had the ability to see a potential problem and was given the opportunity to resolve it. That has been very beneficial to me. I've also enjoyed seeing our profit numbers grow and taking part in the bonus system."
posted by Scanlon Leadership Network @ 9:56 AM
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