December 2007 Scanlon Ezine

Happy Holidays to all members and friends! Your support made 2007 a year where we were able to take the Scanlon EPIC message to new industries, in innovative ways. In this E-zine learn how your Network is involved in leading edge measurement work and how the Scanlon Foundation is creating books to help others learn about leadership. Meet Brad Hill and learn about our new Scanlon Consultancy. Learn about leadership from our newest free podcast featuring Dr. Dwane Baumgardner. Finally, if you are searching for the perfect gift for the holidays--give the gift of leadership. The Scanlon on-line store is ready to serve. We are looking forward to working with you in 2008.

Scanlon Leadership Network Represented at Services Performance Measurement Roundtable
	Paul Davis recently represented the Scanlon Leadership Network at a Service Measurement Roundtable convened by Dr. Dean Spitzer measurement thought leader at IBM Corporation and author of the groundbreaking book Transforming Performance Measurement (pictured). Spitzer brought together other thought leaders from industry, academia, and consulting to begin to, as his book title implies, transform the performance measurement of services worldwide. Scanlon was invited by Jahn Ballard of the Commons and Performance Management Institute, along with a number of other thought leaders and practitioners considered by Spitzer and Ballard to be vital additions to a group that was heavily weighted to the academic side, which also included Robert "Doc" Hall from the Assn. for Manufacturing Excellence (AME). In his book, Spitzer highlights major conclusions that created the need for focusing on Service Performance Measurement. Spitzer says service is 80% of our economy, and as high as 95% if we consider service functions within organizations that produce tangible goods. Couple that with our collective ineptitude in measuring less tangible aspects of our organizations and you arrive at a compelling need to change how we measure on a widespread basis. Spitzer hoped to accomplish several things with this kickoff meeting, which were quite successfully achieved. Identify issues and problems related to Service Measurement Identify critical success factors in measuring service Begin development of a framework to better understand Service Measurement Agree on next steps in the process of transforming service measurement Spitzer states that we have minimal skill in measuring intangibles, and, intangibles are the primary source of value in services and the increasing number of knowledge-based organizations. We need to be able to measure more than obvious, tangible service activities. We need to be able to measure higher level activities and resources such as talent, organizational capabilities, innovation, relationships, and human development. Most would agree these are things that create value, including tangible, financial value, but we don't know how to measure them. Therefore, we have a very difficult time managing them for growth and improvement. As Spitzer says, "Because people do what is measured, they won't do things differently if we don't measure differently." A powerful conclusion that surfaced for the 50+ participants at the event was that there is a great need to "Trust the Measures, and Trust the People." In other words, there is a deep need to develop what Spitzer refers to as, "a more positive context for measurement." The people of the organization need to be involved in evolving the measurement, measures need to be transparent, and we need to get beyond using measurement strictly to monitor and control. Perhaps this is one reason Scanlon Leadership Network is involved. As Davis states, "These are aspects that Scanlon companies and Scanlon Leadership Network have wrestled with for years." A key to the success of the event was the innovative meeting design and facilitation provided by Jahn Ballard. Spitzer asked Ballard to help design a collaborative process for the event that would be highly participative with a goal of generating new ideas and a new level of thinking. This was a large challenge, especially when you consider there were 50 very diverse participants who didn't know each other previously, and had no pre-existing identity. According to Davis, "Jahn did a fantastic job of bringing the group together and focusing our efforts." Ballard designed and led the process to support Spitzer's vision. He helped the group interact, dialogue, and produce group reports based on their individual and team passions. Spitzer said this face-to-face event was just the beginning, a kickoff. With such a diverse and far flung representation, including U.S. corporations and universities, non-profits like Scanlon Leadership Network, Association for Manufacturing Excellence, and international representation (Norway, Holland, Italy, and Mexico), it is not possible to gather face to face regularly. For that reason, remote collaboration via conference calls, and using online collaboration software, is beginning now to keep this effort continuing, growing, and achieving. Participants in the event volunteered to form working groups to focus on piecing together the big puzzle of transforming services measurement. With Scanlon Leadership Network's focus on innovation and measurement, this group will be an important source of ideas and practices going forward.

Scanlon Foundation Receives Major Donation for Book of John Donnelly's Writings on Leadership
	The Scanlon Foundation recently received an important donation to create a book of the leadership writings of John Donnelly (pictured), furthering the Scanlon Foundation's objective of helping others learn about leadership by publishing books, podcasts, and videos of major Scanlon thought leaders. The Scanlon Foundation hopes to have this book published in 2008. The Scanlon Leadership Network and the Scanlon Foundation in President Paul Davis' words, "saved these important writings from the landfill." Davis received help in sorting and screening the materials from Larry Spears, Scanlon Foundation Board member and President Emeritus of the Greenleaf Center for Servant Leadership. Larry has editied and authored many books on leadership. In going through the materials, Spears was excited to discover Donnelly's writings about Servant Leadership and believes the writings are a major contribution to the theory and practice of leadership. This donation and book project is the second book project the Foundation has begun. An anthology of Scanlon thought and practice has been written and will be published in 2008. The book titled "Scanlon EPIC Leadership: Where the Best Ideas Come Together" features historic writings from Joe Scanlon and Douglas McGregor as well as contributions from Warren Bennis, Max DePree, and other prominent business writers.
	To the Foundation web site...

Meet Brad Hill: Scanlon Consultant and Board Member
	A few years ago, to give the Consultancy a direct voice in the leadership of the association, the Scanlon Leadership Network Board decided to include a Scanlon consultant on the Board. Currently, that consultant representative is Brad Hill of Tandehill Human Capital Consulting, Inc. (pictured) Based in the Chicago area, Hill is a long-term compensation consultant. About 15 years ago he became interested in gainsharing, initially as a compensation strategy. As he learned more about it he discovered that successful gainsharing systems were not as much about the pay plan aspect as they were employee involvement systems that created a strong line-of-sight throughout the organization. In his words, "I discovered that gainsharing is the fuel of process improvement in an organization." In discussing the consulting presence on the Board, Hill talked of it being a bridge between the consultant community and the Member companies. Hill talks of the Scanlon Principles as a philosophy from which 5,000+ companies could greatly benefit. The benefits can potentially go much broader than the Member companies. The consulting "bridge" provides a connection to that much broader market. In other words, the Scanlon Consultancy can serve to spread the Scanlon word, and at the same time, be a feeder for growing the Network Membership. In his work with the Scanlon board he brings a different perspective, an outside view, compared to the Member company representation. He feels privileged to be working with a group of such top-notch people on the Board, and he says his consultant's perspective can sometimes be a thorn in their sides. He has a tendency to push toward the edge of other Members' comfort zones. All in all, it has been a great experience for him. Hill's relationship with Scanlon Leadership Network has benefited him in several ways. In his compensation and gainsharing work, he had long operated in what he describes as a "parallel universe" to Scanlon. He had operated under a value system very close to that of Scanlon companies. His discovery of the Scanlon Principles provided him with an articulation of these values in a way he had not accomplished on his own. The Scanlon Principles provide a clear framework from which to view and evaluate a client organization. Hill says that for a consultant to fit with the Scanlon consultancy, their motivation needs to come from a passion for the principles and values, rather than from a "quick-hit" in terms of direct sales. That said, he said his largest client from last year and much of his work in the coming year are the result of second hand Scanlon connections. Hill has a goal of continuing to create opportunities for consultants to integrate Scanlon into their work, whether that be compensation, process improvement, lean, open book management or whatever else their focus may be. There is room for many consultants, as long as they come with a passion for the values and Principles. He says there will be about a dozen Scanlon consultants by year end; he would like to see that grow to a couple hundred. Hill has worked to create opportunities for consultants to interact with each other, with the Scanlon Board, and with the Member companies. One of the keys to success of the relationship between the Scanlon Consultancy and Scanlon Leadership Network will be the extent that it is a "two way street." There must be a mutual benefit. Based on Hill's passion for the work and Scanlon Principles, it looks good for that mutual benefit to be realized.
	To the Scanlon Consultancy Web Site...

4,229 Podcasts Downloaded to Date; Dwane Baumgardner Interview Now Available
	Yes. You read that headline correctly. 4,229 podcasts of Scanlon interviews have been downloaded as of early December. Many of you have discovered this valuable opportunity to "learn for free." The latest addition to the Scanlon podcasts, an interview with Scanlon Steward, Scanlon Foundation President, and past CEO of Donnelly Corporation, Dwane Baumgardner (pictured), is now online. In this interview, Baumgardner discusses the importance of making investments in technology and innovation, even during lean times or economic recession. Baumgardner believes this philosophy was absolutely key to Donnelly's success. Donnelly doubled in size, on average, every 5 years for more than 20 years. Baumgardner also offers a detailed and illuminating analysis of the Scanlon Identity Principle. He breaks the Identity Principle into four parts: purpose; reality, right job, and job right; and shares some examples from Donnelly Corporation. The material discussed in the interview is contained in his forthcoming book, The Leadership Roadmap which is in the final stages of pre-publishing work and will be available in the first half of 2008. The Scanlon podcast interviews are done by Ron Duffy of Inner Journey Productions. Paul Davis says of Duffy, "He has a gift of bringing out the best in everyone. I believe these podcasts will be listened to and we will learn from them for a long time. Duffy's comments on the Baumgardner interview: "I have noted in all the Scanlon podcast interviews I have done, that all my guests have discussed the practice of the Identity principle in particular, (as well as the other Scanlon Principles of Participation, Equity, and Competence) creates a highly "business literate" workforce. Dwane and the other interview guests all agree this creates a significant competitive advantage for their company. It shows up in employees taking ownership of their job, working smart and being innovative. In a Scanlon company, it's not very often you hear the words "It's not my job," or "that's not my responsibility." Your opportunity to learn from a great business leader is just a few clicks away...
	Click on the link in the upper right of the Network home site to download the podcasts.

Holiday Shopping Solution: Scanlon Online Store
	Having trouble finding a gift for that "hard to buy for" person? Check out the Scanlon Online Store. Newly refurbished, the store is THE source for Scanlon related books, videos, training programs and support materials. In this site you'll find proven tools used to develop servant leadership, business literacy, lean organizations, innovative organizations, gainsharing/goalsharing/profitsharing, and high performance cultures. For example, who do you know that would love a copy of Principle-Based Participative Management by Terry VandeWater? Or, how about The Scanlon Pin, based on the Scanlon S logo by Robert Hugel? And if you don't find what you want directly on the Scanlon site, another feature of the store is a really easy link to Scanlon related books at Amazon.com. What could be easier? Sit back and click, and relax!
	Take me to the Scanlon Store...