Scanlon January 2005 E-Zine
Scanlon Welcomes Two New Members
The Scanlon Leadership Network welcomes two new members: United Building Centers of Winona, Minnesota and the Watermark Credit Union of Seattle, Washington.
United Building Centers (UBC) grew from a single raft-load of lumber 150 years ago when the West was being developed before the Civil War, to a privately held company with more than $1.2 billion in sales in 2004.
It is owned by 300 to 400 of the descendents of the original founders and has 4,500 employees in 170 lumber yards, seven distribution centers, 12 truss plants, eight millwork facilities and five wall panel plants in 17 Midwest and Mountain states.
Doug Ossefoort, UBC Area General Manager said, "People are the most important part of any business and that's why we want to apply the Scanlon principles in our manufacturing plants. We believe this will enable us to tap the abilities and ideas within our entire staff and continue to grow and remain a leader in our industry."
The Watermark Credit Union is a $450 million financial institution with 160 employees in five branches. It provides a full range of financial services to more than 70,000 members in the Seattle metropolitan area.
Founded 55 years ago to provide financial services to telephone employees and their families, Watermark expanded its membership in the past 10 years to anyone working or living in Washington State.
Chuck Cockburn, President/CEO said, "We believe that implementing a Scanlon Plan will help Watermark reach its long term goals of $1 billion in assets and a 9% capital ratio. We have a strong commitment to participative management and the power of intrinsic motivation and implementing a Scanlon Plan fits well with our corporate culture and strategic plans. Joining the Scanlon Leadership Network will provide us with the structure, resources and guidelines to implement the plan successfully."
Scanlon President Paul Davis welcomed the two firms to the Network and said, "You will find all of our member firms willing to share information about their Scanlon Plans and other programs they have implemented to support participative management."
The Network also offers an extensive number of services and programs for member firms as well as limited information for non-members. Firms interested in applying for membership should contact Paul Davis at pdavis@scanlonleader.org.
ITT Uses Modified Lean Sim For Teaching, Customer Satisfaction
Since September 2004 when ITT Industries began training employees worldwide using Scanlon's Lean Simulation, the educational workshops have already helped more than 150 ITT employees grasp the concepts of Lean Manufacturing and Six Sigma through hands-on, day-and-a-half sessions. ITT Rule, a division of ITT Motion and Flow Control in Gloucester, Massachusetts, manufactures primarily marine pumps and other marine products including float switches, compasses, winches and boat care products.
ITT Rule implemented its Scanlon Plan, Friends United Together Undertaking Rewarding Endeavors (FUTURE), in January 2000. ITT Rule first used Scanlon's Lean Sim to train its workforce in support of the FUTURE program. Now ITT has incorporated the Lean Sim in its worldwide Lean Six Sigma workshops. So far ITT has used the Lean Sim Machine to train employees in China, Europe and in the US.
While ITT is using Scanlon's Lean Sim to demonstrate the benefits of Lean Manufacturing, the company has also added transactional aspects to the system, representing 'paper flow' elements of the business such as customer orders and work orders with plans to also add purchase orders, quality work papers and engineering change orders.
"Employees who have participated in the workshops experience Lean from the manufacturing side, but we needed more transactional examples," said Mel Eaton, Director of Value Based Six Sigma, ITT Industries, Motion and Flow Control. "Our goal is to achieve superior customer satisfaction, and Scanlon's Lean Sim helps us do that," he added. By applying Lean to all aspects of the business, ITT has effectively cut cycle times, reduced inventory and cut costs drastically by going to a one-piece flow.
ITT began with a Lean training program for executives, but the demand for the workshops has grown and the workshops are now being used to train all levels in the organization.
"With 39,000 employees," said Eaton, "the message needs to be spread to as many people as possible," said Eaton. ITT plans to train between 500 and 600 employees on Lean Sim in 2005 as it expands its efforts throughout its global operations.
"We felt that Scanlon's Lean Sim did the best job," said Eaton. "It's straightforward and simple, and it caters to our needs by allowing us to alter the process and simulate the paper flow side of our business," he added. "The joining of our training focus and Scanlon's Lean Sim has been a great marriage - instead of teaching just formulas, it teaches concepts." The hands-on system, said Eaton, lets them experience Lean and helps them visualize the steps.
"As we educate more and more employees using Lean Sim, we increase the focus on the customer by reducing cycle times, improving reliability, quality and delivery, and we enhance our ability to both react quickly to their requests and introduce new products," said Eaton.
"Overall Scanlon's ideals support ITT Rule's management philosophy, which is based on a dedication to an empowered organization, the rewarding of positive behavior and finding a common business approach within ITT Industries."
Coaching Yields Personal Accountability, Hones Leadership Skills
The Scanlon Leadership Network recently added a Coaching program to its many resources for member companies, which will allow managers to seek professional assistance on personal productivity, leadership development, corporate culture, succession planning and the assimilation of new employees. Coaching, said Keystone Coaching and Consulting President Mark de Roo of Holland, Michigan, focuses on having key individuals and high-potential employees set new targets for themselves and their organizations through a series of self-designed action plans and most importantly, accountability.
"Coaching is clearly different from consulting. Consulting usually analyzes a specific issue and prescribes a solution," said de Roo. "Coaching relies on the premise that an individual has the solutions within themselves. Coaching helps draw them out. Even Michael Jordan, the greatest basketball player of all time, didn't reach his full potential until he was coached by Phil Jackson," he added.
de Roo, who has more than 20 years of human resources experience including positions with two Scanlon companies, Herman Miller, Inc. and Trans-Matic Manufacturing, Co., meets with clients for a series of 50-minute coaching sessions with key leaders, front line management and newly hired executives.
Through coaching he asks clients where they are compared to where they'd like to be - as leaders or organizations. The issues vary from development of a specific leadership trait to personal productivity. In terms of an organization, the challenge might be in making the culture more dynamic or developing the next generation of leaders.
"We compare what could be to what actually is, and there's usually a gap - I coach people on these gaps," he said. de Roo explains that coaching strives to hold employees more accountable to the Scanlon principles, such as competence, and helps them make better decisions, achieve unprecedented results, increase their professional mastery, experience more fulfillment and overcome gaps that hinder performance and career advancement. Family-owned businesses that are intent on grooming their next generation for leadership positions can especially benefit from the coaching sessions, said de Roo.
E-Zine readers interested in participating can sign up for a free first coaching session by contacting the Scanlon Leadership Network at Office@scanlonleader.org or (517) 332-8927.
Give Them Enough Rope...
In this case give them enough rope and customized training in the Scanlon Principles and this will help build an effective team. Ropes Courses Inc., a unique business venture launched 16 years ago by Jim Liggett of Martin, Michigan, will introduce a new program the firm developed at the Scanlon Leadership Network's Coordinators Conference February 15 at Spring Engineering in Canton, Michigan. A long time Scanlon member, Spring Engineering is hosting this year's Conference.
The team building program includes a high ropes course on a patent pending beta version of a device called the Sky Trail and team training "in the air and on the ground" that teaches and reinforces the Scanlon Principles. Ropes Courses will also demonstrate the new program in May at the Network's annual conference.
Liggett has built customized rope courses all over the world for both team building and for entertainment in countries such as Dubai, Kuwait, Germany, Austria and all across the United States and Canada. Liggett has conducted ropes team training courses for many major corporations including Philip Morris where some 3,500 employees participated, Caterpillar, and General Motors.
"We started out with rope courses in trees," Jim said, "and then we used wood telephone poles, then steel and that developed into our new portable unit, the Sky Trail. This enables us to take the training to companies where we can set up the Sky Trail in a grassy area or a parking lot. Employees can participate in the course on site and don't have to travel. This saves companies time and employees can report to work before or after their participation."
The Sky Trail was a huge hit as entertainment on Chicago's Navy Pier at their Christmas Festival in December where they had more than 18,000 participants in the 20-day event. The Sky Trail has also been booked by the IX Center in Columbus, Ohio as entertainment March 25 through April 17.
The US Army plans to use it for a one-day recruiting program in San Antonio where it will also be used as entertainment at the Pro America Bowl for high school football players.
Anyone interested in learning more about the Sky Trail for entertainment or for customized basic or intensive team building, using Scanlon principals, may contact Jim Liggett, Ropes Courses Inc at 269-673-0016, or via e-mail at jim@ropescoursesinc.com.
As I See It - Kirk Sheets
Kirk Sheets, Maintenance at Smith Dairy in Orrville, OH, has been involved with the company's Scanlon Plan, Quality Using Education, Suggestions and Teamwork (QUEST), since it began in September 2001. Kirk, who has worked at the family-owned Smith Dairy for 12 years, serves on the QUEST suggestion committee and is one of the last remaining employees from Scanlon's original foundation at the company.
"Through my involvement with our QUEST program I've come to appreciate the jobs and responsibilities of my co-workers," said Kirk. "I learn more about how other people feel and I get to see things from their point of view." Kirk explains that through the Scanlon Plan he's been able to meet and interact with lots of other employees. Smith Dairy's QUEST team includes a sampling of employees from various departments such as maintenance, sales, accounts receivable, human resources, ice cream loadout and senior management.
"I'd like to see even more people get involved," said Kirk, who contributes about 15-20 suggestions per year. "We've been able to save Smith Dairy a significant amount of money through our QUEST suggestions. Kirk notes that safety suggestions are the most commonly proposed ideas. "The safer we can make Smith Dairy and the more money we can save, the better off everyone is.
"I believe Scanlon is good for any company," said Kirk. "Anyone who doesn't have a program like this is just hurting themselves."
As I See It - John Schmid
John Schmid, Human Resources at Smith Dairy in Orrville, OH, started working with Scanlon four years ago. Smith Dairy launched its Scanlon Plan, Quality Using Education, Suggestions and Teamwork (QUEST) in September 2001.
"We have departments here at Smith that are truly living the Scanlon principles," said John. Although Smith Dairy is still working to expand QUEST and would like to enlist more employees to help promote the program, John said that those already involved truly demonstrate synergy and are extremely receptive to the Scanlon philosophy.
"Personally QUEST has helped me focus and build more overall awareness," he said. "I like the challenge of reaching a higher ground to improve different aspects of our company. The departments in which Scanlon is most present are showing some real progress.
"I believe heart and soul in the Scanlon principles," said John. "I'd love to see our company grow even more by using the Scanlon tools."
posted by Scanlon Leadership Network @ 4:40 PM
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