Friday, May 30, 2008

May, 2008 Ezine

What Day Is It for the Scanlon Leadership Network? The biggest news is that the day has finally come for Paul Davis to retire as your President and assume a new role as a part-time contract employee. His letter below outlines our current realities and the Network's plan for the future.

Read on for a recap of the powerful learning experience that was the 2008 Scanlon Annual Conference, "Innovation: Catalyst for Growth". We take time out to congratulate the 2008 Frost Beacon Award winners, Bill Elrod (SGS Tool Co.) and Bob Mannon (Landscape Forms), as well as 2008 Master Entrepreneur Bill Demmer, CEO of Network Member Demmer Corporation. In this issue you will also learn more about our newest turnkey product, the Innovation Simulation.

It is an exciting time of change for the Scanlon Community, and we thank you all for your continued support!

In This Issue

A Final Word, by Paul Davis

Scanlon Conference 2008: Innovation from Start to Finish

Frost Beacon Awards Presented at Annual Conference

Innovation Simulation High-Flying Debut!

Demmer Corporation; Excellence and Entrepreneurial Spirit

A Final Word, by Paul Davis

Hoshin Five AlignmentsDear Scanlon Members and friends of the Scanlon Leadership Network,

Fifteen years ago, I became the President of the Network. The Network was at a crossroads, with the retirement of Dr. Carl Frost and Dr. Bill Greenwood. It was a fortuitous event for me, giving me a chance to work for a worthy cause with truly great business leaders. Now it is my turn to retire and to pass the torch to a new generation of Scanlon leaders. In this letter I would like to introduce you to the new team and to explain the direction that the Network is headed.

Max DePree has written that the first job of a leader is to define reality, the last is to say "thank you" and in between to be a servant and a debtor.

The reality of the Network is that we have made tremendous progress but we still have a long way to go. Scanlon is once again appearing in books and journals (we have chapters in the most popular compensation books, and have been featured in the Association for Manufacturing Excellence magazine Target). We recently published Scanlon EPIC Leadership: Where the Best Ideas Come Together. Our Members continue to be recognized as the most admired in their industries. We continue to add new programs and services. We continue to attract world-class organizations into our membership.

However several years ago we realized that our historic business model was becoming less effective, and it has been going through a gradual overhaul. The old model of operating on the membership dues and conference receipts became less stable. Our organization became increasingly spread out. Many of our Members in manufacturing were struggling, a symptom that has only worsened over the years. When our Members struggle, so do we. This is why your Board created our Three Circle Strategy to and to allow us to compete with other not for profit organizations.

The first part of this strategy was to diversify the Network's income. We started selling products and we continue to enjoy a worldwide income stream from sales of the Lean Sim Machine™, Hoshin Quick Start™ and books.

Part two was creating the Scanlon Foundation, a 501(c)(3) supporting charitable organization. The Foundation is able to accept tax-deductible donations and supports individual members. This year the Foundation published the first Scanlon anthology in over fifty years. It has received a major donation to publish the works of Scanlon business leader John F. Donnelly. It supported a paid intern who worked one day a week through the spring to develop our Innovation Simulation™ that was featured at the Conference. The Foundation continues to build its reserves and support the charitable work of the Scanlon movement. The Foundation's President is Dwane Baumgardner, former CEO of Magna Donnelly and Scanlon Steward.

The third part of our strategy is to develop Scanlon Consulting Services. I will be working one day a week to support this new area. Scanlon Consulting will offer consulting in leadership, corporate culture change, gainsharing, lean, financial literacy, and innovation. It will also house our first "Institute", the Leadership Roadmap Institute based on the book by Dwane Baumgardner and Shingo Prize recipient Russ Scaffede. The Institute will allow us to reach a new generation of leaders with the Scanlon message.

Our new Integrated Leadership Team will consist of Wayne Lindholm, Larry Spears, Majel Maes and myself. Majel will continue to be employed by the Network on a full time basis. The rest of the team will be independent contractors, working one day a week.

Wayne will be the first among equals. He is a former 3M Engineer, well versed in lean, Scanlon and innovation. He has experience with outsourcing, and global supply chain management. Wayne is tasked with growing and strengthening the Network.

Larry is the world authority on Servant Leadership. He has authored and edited numerous books on the topic. His Dateline interview with Stone Philips was seen by millions. He built the servant leadership movement into a worldwide force for good. Larry will work with Dwane to build the Scanlon Foundation.

Majel will continue to produce the Scanlon Conference and events, the Best Practices and other programs, handle the office logistics, answer your questions, and will be there for our Members and inquiries.

I will be working to build the Scanlon Consultancy, will handle the employee satisfaction surveys and keep the computers humming. When not working for Scanlon, I will be helping my 91-year old dad. My cell phone is (517) 410-0646.

This is a big change for all of us. I ask that you support the new team as you have supported me in the past.

Life Magazine said that Scanlon Plans will no longer be news when we have licked the machine for liberty and democracy. We live in a time when most employees are not engaged at work, where investors question the integrity of the market, and where customers are not sure of the safety of toys and medicines. Scanlon offers a better way for us all to benefit from our free enterprise system.

It's been an honor serving as your President. Thank you for all you have taught me. I continue to be a Steward and Advocate for the Scanlon way. I wish you the very best, and thank you for your continued support!

Sincerely,

Paul Davis

"Change is a given - and is our only hope!" Dr. Carl Frost

Scanlon Conference 2008: Innovation from Start to Finish

Hoshin Five AlignmentsDearborn, MI was the site of the 2008 Scanlon Leadership Network Annual Conference "Innovation: Catalyst for Growth", held at the Ritz-Carlton May 5-7. What could be a more appropriate site to wrap up a year of focus on innovation than Dearborn, home to Henry Ford as well as Thomas Edison's Menlo Park Lab?

Scanlon Member companies have historically been some of the most innovative in each of their industries. Building on this foundation, the conference thoroughly explored innovation. Sarah Miller Caldicott (left), a great grand niece of Thomas Edison, presented a fascinating reception keynote based on her in depth research on Edison.
Hoshin Five Alignments
Charlie and Maria Girsch of Creativity Central set the tone for the next day with a Conference opening keynote that immersed and engaged all participants in creativity. (Charlie pictured right in favorite Einstein tie!)

The energy level was ratcheted up in time for a broad menu of breakout sessions all with a heavy dose of innovation. Then, all participants went to work innovating for Lockheart Martian, via the "hot-off-the-press" Innovation Simulation created by Scanlon Leadership Network. Wow!! From a family connection to Thomas Edison to building spaceships for Lockheart Martian, this conference was truly a unique and powerful experience!

Celebration was another feature of the conference, as it is each year. At the reception, awards were presented for the Best Practices and Frost Beacon Awards. ALL of the best practices submitted are being compiled and published in the 2008 Best Practices book, available to all Member companies. The Frost Beacon Award is presented to people who have demonstrated outstanding application of the Frost Scanlon Principles in their work. Read more about this year's deserving recipients below.

During the conference, this year's Scanlon Stewardship Award was presented to Bill Main, President of long-term Member Landscape Forms. In his acceptance speech, Main demonstrated the humility so often found in Scanlon leaders, as evidenced by his deep belief in the competence and potential of the people of his organization. And in the mold of a true Scanlon Steward, he talked of the future of Scanlon and how it needs to be shepherded by the people working in the organizations in addition to Stewards like himself.

Hoshin Five AlignmentsCompany tours are another hallmark of the annual conference and this year was no exception. This time, participants had the opportunity to tour Greenfield Village on a preconference "Inventor's Tour." Right is shown Edison's main lab at Menlo Park.

In addition, post conference tours took place at the Ford Rouge Factory and Scanlon Member Thomson-Shore.

Another important component of the conference was the introduction of SCANLON EPIC LEADERSHIP: WHERE THE BEST IDEAS COME TOGETHER, edited by Paul Davis and Larry Spears. The book is an anthology of Scanlon thought and practice. Find out how EPIC Leadership can become an indispensable tool for learning Scanlon thought and practices by downloading the Fact Sheet, found in the side bar.

The Scanlon Leadership Network Annual Conference 2008 was yet another example of the innovation and continuous drive to grow and improve of Scanlon Members and the Scanlon Community.


Frost Beacon Awards Presented at Annual Conference

Congratulations to Bob Mannon of Landscape Forms and Bill Elrod of SGS Tool Co. on receiving Frost Beacon Awards at the 2008 Scanlon Leadership Network Annual Conference.

The Frost Beacon Award honors associates who have shown significant commitment to the Scanlon Principles and have made notable contributions to the success of the enterprise that employs them. This award recognizes those associates who demonstrate Joe Scanlon's assertion that, "The person doing the job knows it better than anyone else."

The Frost Beacon Award winners are determined by each individual Member Company. Named after Dr. Carl Frost, the award recognizes those associates who shine like a beacon and lead the way for their fellow associates to follow.

Here's more on this year's winners:

Hoshin Five AlignmentsBob Mannon of Landscape Forms (left) participates in continuous improvement activities and leads his team to do the same. In his nomination, it was said that he "sets the pace" for his team and leads by example. He lives the Scanlon Principles on a daily basis by challenging his people to step out of their comfort zone and participate in continuously more meaningful ways. He praises his team members and helps them to learn from their mistakes. He thinks of his team before himself.

When interviewed, Bob displayed the humility commonly found in Scanlon leaders. He said, "I have a great team. They make me look good." When asked what receiving this award means to him, he said merely "Someone saw we were doing a good job." He also described how he has learned leadership both on the job and in his personal life in serving as a coach for his children's sports teams.

Hoshin Five AlignmentsBill Elrod of SGS Tool works in the maintenance area of the company. (Pictured on right - left is Tom Haag, SGS President/COO) Bill's nominator said, "Bill is being asked to take care of other associate's maintenance requests all day, every day. Bill understands the needs of other associates and makes the effort to assist so that they can have a safe, professional environment. He understands that to an associate, their job is the most important job at that time." Bill understands the importance of his job and how it affects other associates and departments. He knows that whether it is a small job, or something that requires more effort, it is very important to the one requesting the work.

Bill, like Bob, displays a high level of humility. "Many people here deserve the award more than me," he said. When asked what the award means to him, he enthusiastically replied, "Someone appreciated me! It's a great feeling to be recognized." He went on to talk about his job in ways that made it clear that he is a worthy recipient. Bill tries to smile and be nice to everyone. He treats people the way he would like to be treated, and discussed how he is constantly looking out for the needs of the owners/investors, customers, and employees. Without using the word "equity," he clearly demonstrated that the Equity Principle is in play at all times on his job. Bill shared the following quote, which sums up what Scanlon means to him: "Teamwork-Together we achieve the extraordinary."

Congratulations to both Bill and Bob on their well-deserved Frost Beacon Awards!

Innovation Simulation High-Flying Debut!

Hoshin Five AlignmentsThe Innovation Simulation, the newest product created by Scanlon Leadership Network, had a high profile debut at the Annual Conference in Dearborn this month. All conference participants were organized into teams to learn more about innovation through work for "Lockheart Martian", designing and building spaceships. The teams were expertly lead by volunteers from the Conference Planning Committee, workshop facilitators, and the 3M Grass Roots Innovation Team.

The simulation was enjoyed by all as they learned important aspects of innovation such as the difference between creativity, invention, and innovation. Other objectives addressed by the simulation include the idea that synergy drives innovation, how the customer often provides innovation clues, the 10 types of innovation, and 12 leader actions that create a culture of innovation.

The simulation includes video, teamwork, and other exercises to teach innovation concepts in a fun and engaging way. The product is turnkey in that it includes all of the videos, participant handouts, and a facilitator's manual that contains handouts and templates. In about 4 hours of training time, all of your employees will learn their roles in innovation.

And best of all, the simulation is available free to all Scanlon Leadership Network Members, and Scanlon Foundation Members receive a discount. Non-Members can purchase the simulation for $695. Contact the Network office to get your copy today!

Demmer Corporation; Excellence and Entrepreneurial Spirit

Demmer Corp.Bill Demmer, owner of Scanlon Leadership Network Member Demmer Corporation, has been awarded Master Entrepreneur 2008 by the Greater Lansing Business Monthly. Demmer Corp., headquartered in Lansing, MI, also received the Entrepreneurial Award for Manufacturing.

On the strength of their outstanding business practices, Demmer Corporation's workforce grew from 350 to 1500 in one year's time, December 2006 to December 2007. Sales increased tenfold in the same time to almost $600 million. Now that is growth!

Demmer Corporation has a history of changing and adapting. The company was founded in 1951 by Bill's father, John, focusing on designing and building tools, dies, and special machinery. The company grew in size and complexity as they developed a higher level of competence in building larger special machines and automotive stamping dies. By the late 1960's, 90% of its sales were to the automotive industry. The 1970's and 1980's was a time of diversification into military production, which continues today, with Demmer being an industry leader in the production of heavy components for military vehicles. Future expansion markets include aerospace tooling and NASCAR, where they are already working with a group to design and build a common chassis and body system for entry-level racing teams. Demmer now operates nine plants in six different locations.

Demmer is clear that growth and success of the magnitude they have experienced is only possible through a group effort. "If we're not a team, we're nothing" he states emphatically. The company develops skilled tradesmen, as well as training people in lean manufacturing systems, Total Quality Management and immersing people in process improvement.

Bill Demmer has a high level of involvement in community and business organizations such as Rotary, Chamber of Commerce, Michigan Manufacturers Association (board member), and the Lansing CEO Roundtable. He clearly has a lot to offer all of these organizations.

Demmer exemplifies Scanlon excellence and values, and makes a worthy contribution to the Scanlon Community. Congratulations on your well-deserved recognition, Bill!

Sincerely,

Paul Davis and Majel Maes
Scanlon Leadership Network
2875 Northwind Drive, Suite 121 East Lansing, MI 48823
Phone 517.332.8927 Fax 517.332.9381
Email office @scanlonleader.org www.scanlonleader.org

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