March 2008 Scanlon Ezine

The Network is extremely to excited to announce the launch of its Integrated Leadership Team - read on to learn more about our plan to bring the Network, Scanlon Foundation and Scanlon Consulting Services into the future! We can also learn from the past - hear how an employee suggesetion led to a $100M industry for Lorin Industries in the Foundation's latest podcast, an interview with Board Member Buzz Kersman. Finally, learn more about how the Foundation and Consultancy are working for you, by reading about our Foundation Intern and newest Approved Consultants. In This Issue Board Approves New Network Leadership Team $100 Million Idea: Buzz Kersman Podcast Now Online Meet Adam Devries - Scanlon Intern Three Consultants Join the Scanlon Consultancy

Board Approves New Network Leadership Team As Scanlon Steward Carl Frost said, "Change is a given, and change is our only hope." The Scanlon Leadership Network Board has made a decision that is a prime example of Carl's statement with their creation of an Integrated Leadership Team, consisting of Paul Davis, Majel Maes, Larry Spears, and Wayne Lindholm. In many ways, this is a "Dream Team" for Scanlon Leadership Network. First a little background. Paul Davis, current President of Scanlon Leadership Network, has been openly planning his retirement for the last several years. He has planned to devote more time to support his elderly parents and to writing and consulting on Scanlon. A key part of his planning has focused on development of a succession plan that leaves the Network positioned for continued growth. Based on Paul's passion, advocacy, and stewardship for Scanlon Principles (formally recognized as a Scanlon Steward in May, 2007), who would have expected anything less from him? In a related Network development in the last couple of years, Paul, in consultation with many leaders, recommended and received Board approval of the "Three Circle" model that has been implemented. This "Three Circle" model resulted in the creation of the Scanlon Foundation and the Scanlon Consultancy as parallel, and interrelated, organizations with Scanlon Leadership Network. These three organizations are semi-autonomous, and, they overlap as the "Three Circle" image shows. In other words, there is a coordinated mission/vision of all three organizations in stewarding the Scanlon "Movement." About a year ago, the Scanlon Leadership Network Board formed a subcommittee to explore succession options. These included hiring a replacement for Paul, affiliating with a college/university, and dividing up leadership among independent contractors. In a thorough attempt to answer the question "What day is it?" for Scanlon Leadership Network, a number of realities were identified that will be addressed through adoption of this Integrated Leadership Team. Paul's retirement and his current duties will be distributed and covered by highly qualified and competent individuals. The financial and other challenges of the economy and level of company memberships in Scanlon Leadership Network (the largest source of revenues for the organization) will be addressed concurrently from all three "Circles" and their leaders. The financial health of the Network is enhanced with increasing the skill and competencies of leadership, while actually decreasing the dollars paid out for these services. Here is how the Integrated Leadership Team will operate. Majel Maes will continue as a full-time employee of the Network, serving Scanlon Leadership Network, Scanlon Foundation, and Scanlon Consultancy. In other words, she will represent the overlap of the three circles. She will continue to be responsible for all Network programming activities (such as the annual conference and other events), maintaining the office, order fulfillment, budgeting, bookkeeping, and the accounting system. In one sense, her responsibilities will change little, and, she will be the nucleus of a somewhat virtual shared leadership team. Paul Davis will head up the Scanlon Consultancy. His reporting connection to the Board will be through the consultant's board representative, Brad Hill. His responsibilities will include maintaining and enhancing the Network's computer systems, completing survey work required by the Network Members and developing the Scanlon Consultancy. Larry Spears (pictured left) will hold the title of Executive Director, Scanlon Foundation, connecting to the Board through his reporting relationship to Dwane Baumgardner, President of the Scanlon Foundation. Larry will focus on promoting the Scanlon Foundation, Scanlon related writing projects, and grant writing. Wayne Lindholm (pictured left) will become the Executive Director of Scanlon Leadership Network, reporting to the Board President. His responsibilities will be to grow the Network by seeking out new members and by better serving current members. Wayne has been designated as the "first among equals" of the Integrated Leadership Team. "First among equals" is the designation of the "go-to" person in a "council of equals", a concept developed by Robert Greenleaf. The Board approved the Integrated Leadership Team for a one year trial basis beginning July 1, much as member companies initially approve their Scanlon Plans for a trial period. That said, all indications point to this model as bringing together the best people possible to lead each function and, in Paul's words, "to take us to the next level." Majel describes it as "a pool of people who can each wear their favorite hat." So, who are Majel, Paul, Larry and Wayne? Many of you know Majel. What you may not know about Majel is that she arrived at Scanlon Leadership Network, as many Scanlon associates do, having experienced many of the negative effects on employees in traditional organizations. Scanlon was a breath of fresh air for her and she blossomed into her position. She has since gone on to become a Certified Association Executive (CAE). This is a very prestigious designation of association competence and is very unusual for an organization of the size of Scanlon Leadership Network. We are very fortunate to have her. Paul took the job of President of the Network IN 1993, at a time that survival was very questionable. Membership was sliding, the traditional leaders of the Network were retiring, and the Network was entirely dependent on dues and the annual conference. He has led the Network to develop economic stability by creating products like the Lean Sim. Machine™ and Hoshin Quick Start™. Most importantly, he began writing and encouraging others to write about the Scanlon Principles and the innovative practices of Network members. Many of you may also know, or at least know of, Larry C. Spears. From 1990 to 2007, Larry pioneered the Servant Leadership movement as President & CEO of the Greenleaf Center for Servant Leadership. In January, 2008 he established the Larry C. Spears Center for Servant-Leadership (www.spearscenter.org), where he serves as President & CEO, and where he is concentrating on producing books, essays, and a journal on servant-leadership. He is a highly accomplished book editor and author who has published nine books since 1995, as well as having experienced great success in grant writing over the past thirty years. His skills are an ideal match for continued development of the Scanlon Foundation. Wayne Lindholm brings a wealth of relevant experience to the Network. He is an accomplished networker, innovator, engineer, and consultant, having served at large and small manufacturers such as General Motors, Morton Salt, Warner-Lambert, and over 20 years at 3M Corporation. He has experience in international business, Lean Manufacturing, high level board experience, and experience with large and small not-for-profit organizations. Wayne helped Scanlon member Meier Tool in their implementation process and introduced Fraser to Scanlon. These four leaders see great things for the future of Scanlon. Larry talked in an interview for this article of the long standing intersections of Scanlon and Servant Leadership. He believes this more formalized association between Scanlon and The Spears Center will bring great benefits to both. He is excited to be able to contribute his skills to creating a much greater public awareness of Scanlon. "Something wonderful is unfolding, and I am excited to be a part of it." he states. "One of the first concrete outcomes is the forthcoming book that Paul Davis and I have put together," said Spears. Scanlon EPIC Leadership: Where the Best Ideas Come Together, will be published May 1, 2008. Wayne was "hooked" on Scanlon from the first time he was introduced to it, and is excited to be able to bring his skills, experience, and passion to this work. He is energized by the innovative tools and methods this Team will be working with, and with the high level skills and competence being brought to the table. He described it as an example of "1 + 1 + 1+ 1 = 10." Paul describes the Integrated Leadership Team as "a dream team, to carry on the dream of the steelworker, Joe Scanlon." The Network will not have access to as much of Paul's time, but what it does receive will be much more focused. Paul sees the clear and intense focus of each member of the team as being able to do wonderful things for the Network in all areas. In interviews with each of the four leader/members of this new Integrated Leadership Team, the excitement and hope for the future exuded is tangible. Each truly will, as Majel says, "wear their favorite hat." These are the best people at the right time to lead Scanlon into the future. $100 Million Idea: Buzz Kersman Podcast Now Online Buzz Kersman, the retired owner and CEO of Lorin Industries, is also a Scanlon Steward and sits on the Foundation Board of Directors. In the Foundation's latest podcast, Buzz tells of a Scanlon suggestion that resulted in $100 million in sales for Lorin! Lorin Industries is a world leader in the manufacture of continuous coil anodizing of aluminum. This automated process puts a decorative and protective coating on sheet aluminum used in building materials for windows, doors, and wall panels. When Buzz took over Lorin Industries in 1984, the business had 10 million in sales and no international customers. By 2006, Lorin Industries had grown to 45 million in sales with 25% of the sales coming from international customers. Podcast producer Ron Duffy of Inner Journey Productions said the following about his experience with Buzz: "As we prepared for the Scanlon Leadership interview, Buzz commented that his personal views on how to lead and work effectively with others fit nicely with the principles and philosophies of a Scanlon Plan. For Buzz, implementing the Scanlon process was a natural extension of his personality. The success of Lorin Industries under his leadership is a testament to the natural fit of his personality with Scanlon Principles." Check it out. The podcast is available now at http://www.scanlonleader.org/. Just click on the Podcast link to gain from the collective wisdom of the best Scanlon leaders. Meet Adam Devries - Scanlon Intern Scanlon Leadership Network is privileged to have the services of Adam Devries for several months, courtesy of the Scanlon Foundation's internship program. Adam is a Michigan State University Master of Labor Relations & Human Resources student. Adam has already learned a lot about Scanlon since starting his internship. One of the first things he did was to read and edit the soon-to-be published book, EPIC Leadership. His major work project has been contributioning to the Innovation Simulation, a new product that will be introduced to Scanlon Leadership Network Members this May at the Annual Conference. Adam will be moving to Houston upon completion of his degree this spring. He has landed a prestigious Labor Relations position with Shell Oil. When asked how his Scanlon experiences will affect and help him in his work with Shell, he cited a number of things. The Scanlon concept of applying the Principles personally, professionally, and organizationally will provide him a good foundation and framework to work within. Douglas McGregor's Theory X/Theory Y will be a useful perspective to apply to his work, and gainsharing principles are quite enlightening in Labor Relations endeavors. Adam reflects that "Scanlon is not for everyone, but it is a great way to do business for those organizations where it fits." He is grateful for his opportunity to be a part of it for a while before beginning his career in Labor Relations. Best of luck, and a hearty thank you for your contributions Adam! Three Consultants Join the Scanlon Consultancy Three consultants have recently become the newest members of the Scanlon Consultancy. Jahn Ballard, Praveen Gupta, and Pete Hovde were recently approved the Scanlon Leadership Network board as Approved Consultants. Read on for an introduction to each of them. Jahn Ballard Why did you join the Scanlon Consultancy? What Joe Scanlon initiated is the historical precursor of everything I have come to focus on and value in my professional life. I believe that the network should have hundreds of member companies, because what it stands for is the hope of making workplaces in the US healthy, vibrant and meaningful places to give one's vocational energy. I worked with Paul Davis on Innovation Tour #3 focused on Measuring What Matters Most for Growth and Innovation. I feel certain we have just scratched the surface on what is possible in transforming performance measurement and organization design in support of applying the Scanlon Principles. I think Scanlon is one of the greatest untapped market resources and 'best-kept secrets' I have ever seen. I am excited to bring in new companies, and assist the current members where I can in achieving their visions. What does Jahn Do? Click to Find Out! What do you hope to accomplish? Some outcomes commonly achieved in organizations are: Unification of Business Intelligence & Value Stream with Financial Management. Giving senior leadership a comprehensive problem-seeing and problem-solving capacity, plus simple methods to spread self-management to their people. Set in motion a collaborative performance management group that can guide the overall direction and design of the enterprise in 2-4 hours a month, saving time by integrating conversations that are often fragmented across the layers and levels. Analyze and refine the KPIs that are currently being used to more directly provide feedback on resolving constraints and enhancing critical success factors Provide the foundation for making the financial statements a useful tool for operating leaders to fulfill their daily mandates, plus figure out how to measure their success, and the success of everyone else. I am commited to helping more organizations realize many of these benefits. I am also actively educating my spheres of influence on Scanlon Principles, and fully expect to support the growth of the Scanlon Leadership Network as a result. Praveen Gupta Why did you join the Scanlon Consultancy? I found Scanlon Leadership Network about five years ago and was excited to discover our shared philosophies. I have a strong belief in the potential of the people of organizations, which is, in my interpretation, the foundation of the Scanlon Principles and Processes. I work to bring out the best in people, as Scanlon does. The creation of the Scanlon Consultancy provides another avenue for helping more organizations to be successful using those principles. What does Praveen Do? Click to Find Out! What do you hope to accomplish? In short, I hope to help Scanlon companies achieve sustained, profitable growth. Any company that does this will have the foundation and environment to be able to practice the Scanlon Principles to their fullest. In turn, application of the Scanlon Principles assures sustained, profitable growth. Pete Hovde Why did you join the Scanlon Consultancy? I spent a number of years working in good, but traditional, software corporations as a manager of training and training development functions. My management style and philosophy was highly participative even though I had never studied such practices. It simply made the most sense to me to allow and encourage employees to participate in the deepest and most meaningful ways possible. This approach was highly successful, but I found myself needing to hide some of my practices in the traditional, bureaucratic environment. About 10-12 years ago, I happened upon Scanlon Leadership Network. I was amazed and excited to learn that there was a group of companies that intentionally managed in a manner similar to mine, and that they had studied it, documented it, and continuously worked to make it better. I was hooked. Since then, I have worked with Paul Davis and the Network on a number of projects, such as speaking at your conferences, developing the first version of the Hoshin QuickStart tool, and more. Most recently, I became the editor of this monthly ezine. When the decision was made to formalize the Scanlon Consultancy, I was excited to become a part of it as another avenue to spread the word and change the environment in organizations to become more participative and respectful of people. What does Pete Do? Click to Find Out! What do you hope to accomplish? There are several things I hope to accomplish through my relationship with the Scanlon Consultancy. From a broad perspective, I want to spread the word of the Scanlon way as far and wide as possible. Stepping down from that perspective, I hope to find more of the work that I do to allow me to integrate the Scanlon Principles, thereby helping organizations be more participative and successful. I also want to begin to lead companies through the process of implementing a Scanlon Process in their organizations.

Until April... Sincerely, Paul Davis and Majel Maes Scanlon Leadership Network Ph. 517.332.8927 www.scanlonleader.org