January, 2008 Ezine
|
· Scanlon/Credit Union Event a Great Success | |||||||||
|
Scanlon was the topic of a conference for Credit Union Leaders in December. The event, sponsored by Filene Institute, featured Scanlon Leadership Network Members Watermark Credit Union and Landscape Forms. The event was hosted by Dr. Dow Scott at Loyola-Chicago. It was yet another example of how Scanlon Principles have application beyond manufacturing. Filene Institute is a "think tank" serving credit unions throughout the U.S. and Canada. George Hofheimer, Chief Research Officer at Filene, said his organization's focus is to do research for credit unions, in particular around consumer finance issues. With the intense competition faced in the financial services marketplace, credit unions are constantly challenged to find new and better ways to serve their customers/owners. Thus arises the pertinence of exploring Scanlon. Hofheimer names credit unions' structure of a cooperative as both a challenge and a strength. It is a challenge in that the purpose of a credit union is less clear than that of a bank. Historically conservative, the impetus has been to "stay the same" in the drive to serve their customers/owners. With the increased competitive environment, there has become a need to create a culture of innovation and creativity. The "team" aspect of a cooperative lends itself well to that objective, and is a key reason Scanlon can be a powerful model for credit unions. Chuck Cockburn, CEO of Watermark Credit Union in Seattle, presented a case study of their experiences operating under a Scanlon Process. Watermark had operated under a philosophy conducive to Scanlon prior to their implementation, having studied Deming in depth. In particular, they had focused in heavily on how they treat their people. Moving to a Scanlon model was a "natural" progression for them. Cockburn says they have diverged from traditional credit union management/leadership models in many ways. They don't do performance evaluations or offer individual incentives. Rather, they do ongoing coaching to address development of their people. And, gainsharing is their incentive system, and one that fits really well for them. In an interview for this article, Cockburn discussed the need for intrinsic motivation. He said "people in the workplace need three things; to know how they are a part of the big picture, to have input into how the organization operates, and to be listened to." Scanlon Leadership Network member Landscape Forms' presentation confirmed what Cockburn said. A key point they made is the necessity of truly listening to employees, and to do so in a systematic way. This is what formalized suggestion systems offer. In addition, they made the point that a Scanlon Process needs to be constantly fine tuned to keep it, and the organization, vital. Hofheimer observed that the event really challenged and opened the eyes of a number of financial services executives. The importance of intrinsic motivation and how to implement and operate systems to develop it was an important takeaway, as well as the source of some intense discussions among the participants. While Cockburn's presentation of Watermark's experiences portray an impressive organization, he says, "We're not special. This is just a common sense way to run an organization." Filene will be publishing proceedings of the event for the credit unions they serve, further broadening Scanlon's exposure in the credit union industry throughout the U.S. and Canada. | |||||||||
| · Timber Roots Achieves Approval of Scanlon Plan | |
|
Timber Roots, based in Wadena, Minnesota recently achieved approval for their COOL (Customers, Owners, and Operators on a Level Playing Field) Scanlon Plan. They had operated their trial plan for a couple of years and, when the vote came to approve it ongoing, the vote came in at 81% in favor, missing the 85% threshold that had been established to go forward. This led to a communication and feedback process that deepened the understanding of what the COOL plan meant to the people of Timber Roots. In Scanlon terms, the Identity Principle guided the process in achieving the level of commitment necessary to go forward with the process ongoing. Timber Roots has an intranet electronic bulletin board where anyone in the company can post questions anonymously. This medium was used by many of the dissenting employees to ask questions about concerns they had with the plan. Also, a focus group was held to address concerns face to face. In addition, Erwin Barney, Timber Roots' Scanlon Coordinator, held a number of semi-formal and informal discussions to bridge the gap of different understandings of what the plan would mean ongoing. In discussions with Paul Eidenschink, General Manager of the Wadena plant, and Barney for this article, both stated that the initial failed vote proved to be quite valuable because of the knowledge and understanding that resulted from working through it. In other words, the conflict brought to light a lot of information that otherwise would have remained buried. Timber Roots is a manufacturer of wood construction components including roof and floor trusses, prefabricated wall sections, and pine paneling. The downturn in the construction industry, and their location in a cold climate results in some unique challenges. In Barney's words, they have to "make hay when the sun shines." In the warm seasons, orders come in en masse and then they drop off drastically when freeze up occurs, resulting in seasonal layoffs. This means it is often difficult to break away from production in the busy seasons to hold Scanlon meetings. And, because so many employees are laid off in the winter, there are not many people around to hold the meetings during those months. This is a reality for Timber Roots and they work with it as best they can. Eidenschink also discussed the seasonal aspect of their business as creating a training challenge. First, it is challenging to break people free for training during the busy seasons. Second, because of the winter layoffs, they experience more turnover than many manufacturers do. Some employees find other jobs when they are laid off. This means that new employees are hired in time for the busy season resulting in a need to get them trained very quickly, and at a time when the work is really taking off. They are addressing this by working toward development of more flexible crews via cross training. Implementation of their Scanlon Process has significantly raised the awareness of the seasonal realities of their business, providing them with many more ideas and commitment toward addressing the realities. Another cultural aspect of Timber Roots that came more fully to light through the implementation process, and in particular, the initial failed vote, were long-standing, perceived inequities in the pay structure. Barney served as a conduit in the process of uncovering these perceptions, evaluating the perceptions at the management level, creating proposals of pay structure changes, and ultimately coming to a satisfactory resolution of the issues. This was a key accomplishment in helping the vote to be ultimately successful. An "Aha" moment occurred for Barney and many employees during some of these discussions. Barney would often hear the term "The Company" from employees, often in the context of "The Company" did this or "The Company" won't change, etc. At one point, Barney realized and said, "The Company is US." This was a breakthrough for many in being able to commit and take responsibility for their individual part in moving forward. Another point of contention that arose in their process was to question the validity of an 85% threshold required for approval. Discussions ensued and the consensus was that having it at 85% put the power in the hands of a MINORITY, as opposed to a majority. The design team adjusted the approval threshold down to 66%. In spite of that, the final vote to approve the plan came in at 90%, well above the original 85% threshold. Barney says they have certainly not "arrived" in their Scanlon Process and the positive culture change they desire at Timber Roots. They are, however, definitely on the right path. Barney finds it rewarding to see change and growth happen within individuals, which in turn means "The Company" is growing and changing. He says it is a very delicate balance and that management's commitment to the Scanlon Process is a key, ongoing ingredient in the mix. | |
| · Awards Season: Submit Your Best Practices and Nominations | |
|
The Scanlon Leadership Network Awards Season is in full swing! Remember to get your Best Practice ideas in soon. What a great way to recognize employees for their great ideas, and to share innovative practices with other Scanlon members. Best Practices can be submitted by downloading the form at www.scanlonleader.org. All submitted practices are published and the "best of the best" receive gold, silver and bronze recognition at the Annual Conference. The Network is also accepting nominations for both the Scanlon Stewardship Award and the Frost Beacon Award. The Scanlon Stewardship Award recognizes outstanding Scanlon leadership. It is given to a deserving individual who has contributed significantly over time to the Scanlon Principles and the Scanlon Network, and has also demonstrated the Scanlon Principles in their profession and community. All Stewardship nominations are confidential and can be submitted to the Network office at office@scanlonleader.org. For the 2nd annual Frost Beacon Award, Network members choose an employee to sponsor. This award honors those who have worked to bring Scanlon Principles into companies and who serve and guide others, much as Dr. Carl Frost did. As Dr. Frost states it, these people have "helped others become something they never were before". Member companies may sponsor one Frost Beacon recipient per year. Organizations that wish to have the Award given to one of their employees must submit a letter of explanation as to why the person should receive the award and agree to sponsor the recipient by sending them to the annual conference to receive their award. Nominations and submissions for the Best Practices and Stewardship Award must be submitted by January 31, 2007. Those wishing to sponsor one of their employees as a Frost Beacon recipient have until February 28 to send their letter to the Network office. | |
| · Scanlon Pioneer Retires | |
|
Dr. Charles Koenig of Limerick Veterinary Hospital, Inc. has retired. Well, more or less retired. He used to say retirement would mean slowing down to a 40 hour week. He's done better than that and is working two days a week at present, in addition to a number of other things. Dr. Koenig got connected with Scanlon 14-15 years ago via a management group of veterinarians. Scanlon came up in a discussion of gainsharing and employee input. The ideas intrigued him. He researched Scanlon and got connected with Dr. Carl Frost. Through this exploration, he discovered that even though his is a "service" business, the Scanlon Principles applied just as well as to a manufacturing or other more tangible organization. Dr. Koenig said, "It may be harder to measure what we do, but there are many more similarities than differences between us and manufacturing companies." This has been a key learning for Dr. Koenig; Scanlon will work for any organization. In particular, he really has liked the suggestion system aspect of their Scanlon Plan. He says that Joe Scanlon's quote that "The employee knows his/her job better than anyone else" certainly applies to a veterinary hospital as well as it does to any other type of organization. Dr. Koenig was very complimentary of Dr. Frost, who was a spry 75 when they met. Dr. Koenig said, "He's an amazing man." Over the years in his business, they have sometimes forgotten to go to Dr. Frost, and Scanlon Leadership Network when they have problems. He says Dr. Frost's influence and Paul Davis' ongoing leadership in that vein has provided invaluable resources to his business. It became clear in talking to Dr. Koenig that he has integrated Dr. Frost's question, "What day is it today in our organization?" He said that one thing they have not done as well as he wishes is in educating their employees about Scanlon, and the idea that they always have room for improvement. They have missed valuable ideas and suggestions from their people as a result. Asked what life lessons he has learned from Scanlon, with no hesitation he said, "Change is inevitable, and Scanlon is the way to handle change." He raves about the Scanlon Principles and suggests they apply in any organization, whether that be a veterinary hospital, a manufacturing organization, a church, or any other. Change is inevitable and every organization will do much better if they handle it well. Dr. Koenig expressed his hope that Limerick Veterinary Hospital has been indoctrinated enough with the Scanlon Priniciples that it will continue on that path. He says it is a simple system, but it takes commitment. "If it is used as intended, it is as good as any management system out there." So, in addition to continuing to work 2 days a week in the veterinary hospital, Dr. Koenig is deeply involved in Rotary, Heifer International, and Christian Veterinary Mission. Through his involvement, he and his wife have made trips to Haiti, South Africa, Nepal, and Zambia. Looks like there will be no grass growing under his feet! Congratulations and thank you to Dr. Koenig. | |
| · Innovation Authors Battle: Lots of Light, Little Heat | |
|
On Saturday January 19th, over 80 Indian Institute of Technology Alumni braved zero degree temperatures to travel and learn about Innovation. Billed as "the battle of the Innovation Authors" Praveen Gupta, Adam Hartung, Sarah Caldicott and Paul Davis served on a panel exploring innovation. A last minute cancellation created a need for another panel member. Scanlon's Paul Davis was invited to attend. According to Paul "I always jump at the chance to learn from Praveen Gupta. Adam Hartung did a fantastic job during the Motorola Scanlon innovation tour. He is someone that has a lot to teach. Sarah is related to Thomas Edison and has written "Innovate Like Edison: The Success System of America's Greatest Inventor." It was an honor to be included on the same panel with them. I was asked to participate because of the Innovation white paper I have drafted." The IIT group's members range from new engineers to company presidents and owners. They are all alumni of the excellent technical training schools of India. They are now living in the Midwest and continue to enjoy learning together. The Network's Innovation white paper was created to capture what the Scanlon Network has been learning about Innovation from organizations like 3M, Motorola, and Southwest Airlines. It is meant to make innovation simple and understandable. This white paper is being made freely available to Scanlon Network members and friends. | |
posted by Scanlon Leadership Network @ 4:32 PM
0 comments
