Vishwanath Shankar asked:


Training in key business and professional skills in today’s competitive environment cannot be ignored if you want your employees to develop and help drive the growth of your company.

Need For E-Learning

New Values In the old days, corporate value and value creation were defined principally through material and financial assets. Nowadays a premium is put on intellectual capital. To retain their competitive edge, organizations have started to investigate which training techniques and delivery methods enhance motivation, performance, collaboration, innovation, and a commitment to life-long learning.

New Technologies The life of knowledge and human skills today is shorter than ever, mounting the pressure to remain up to date with ones education and training throughout a career. In the age of globalization and technological revolution, four-year degrees are just the start of a forty-year continuing education. Life-long learning is quickly becoming an imperative in today’s world.

Competitive Edge Corporations view learning as a competitive weapon rather than a bothersome cost factor. Business success depends increasingly on top-quality employee performance, which in turn requires top-quality training. Corporate executives now understand that developing employee skills is the key to creating a sustainable competitive lead.

Cost Effective In the run to remain competitive in today’s labor-tight market, companies are exploiting advances in technology to train employees rapidly, effectively, and at less expense.

GlobalizationAs trade borders become less significant, global competition intensifies. International expansion has led to larger and more complex corporations. Today’s businesses have more locations in different countries and employ larger numbers of workers with diverse backgrounds and educational levels.

Abundance Of Information More information has to be delivered in increasingly bigger organizations, testing internal planning, logistics, and distribution. Corporations worldwide are now in search of more innovative and competent ways to deliver training to their geographically dispersed workforce.

Types Of E-Learning

There are fundamentally two types of e-learning: synchronous training and asynchronous training.

Synchronous, means “at the same time,” involves interaction of participants with an instructor via the Web in real time. Asynchronous, which means “not at the same time,” allows the participant to complete the WBT at his own pace, without live interaction with the instructor. A new form of learning known as blended learning is emerging. As the name suggests it is an amalgamation of synchronous and asynchronous learning methods.

Asynchronous Methods

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Embedded Learning Embedded learning is information that is accessible on a self-help basis, 24/7. It can be delivered to the place of work, or to mobile learners. Electronic performance support system (EPSS) is a type of embedded learning. The advantage is that embedded learning offers learners the information they need whenever they need it.

Courses The clear advantage of a self-paced course is convenience. Participants can get the training they need at any time. This can include just-in-time training where a participant gets exactly the training he or she needs to perform a task.

Discussion groups A discussion group is a gathering of conversations that Goccur over time. They are also called message boards, bulletin boards and discussion forums. Discussion groups can be used to support a group of participants taking the same class or can be used to support participants performing related tasks. A discussion group is a very competent way to supply expert answers to a large group people. A single answer to a common question can help many.

Synchronous Methods

Virtual Classroom Virtual classroom duplicates the features of a real classroom online. Participants interact with each other and instructors online .instant messaging, chat, audio and video conferencing etc.

Blended Method Most companies prefer to use a mix of both synchronous and asynchronous e-learning methods according to their requirement.

Conclusion

All in all e- learning is here to stay and only you can decide the degree of involvement in e- learning your company may require and the best methods applicable to you and your employees



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Tobi Nagy asked:


What is Sustainable Health?

Sustainable health is a personal commitment to maintaining and taking responsibility for your own health, through preventative (proactive) means.

•    This means not only having regular exercise, and taking care of what we eat, but also maintaining a healthy and balanced state of mind.

For 4,500 years, Indian Aryuvedic medicine has taught us that illnesses are caused through an unhealthy or unbalanced mind.  Although modern science has disproved this, there is still some truth in the Aryuvedic approach.  However, science just does not have all the answers and doesn’t work for everyone.

Health is a three way balance of genetics, environment and state of mind.  Most often genetics and environment are out of our control. 

•    Ultimately the only thing we can control is our state of mind and the toxins we put into it, through what we eat.

If you take responsibility for your own health through preventative means, then ultimately you don’t place a burden on the people you love such as your family, relatives and society in general.  Taking care is the rule here.

Sustainable Health is:

•    A preventative approach

•    A balance of mind, body and spirit

•    Taking care of what we put into our bodies

•    Taking natural medicines to maintaining your health and hopefully preventing illnesses before they take shape.

•    Leading and maintaining a balanced life, by taking a “middle road” approach.  Not too little, not too much is the key.

What are its aims?

•    Taking responsible for one’s own health, through a proactive approach rather than a reactive approach.



Current Approach

Most doctors fail to realize this because they and the industry work on reactive approach, and they are trained to think in a reactive approach.  In western civilization this is how doctors make a living and pharmaceutical companies thrive.

•    In ancient China, the opposite was true.  If a patient was sick, then the doctor was fined for failing his or her duty.

•    Today we are ruled by pharmaceutical companies and health insurance companies, using a fear approach.

•    Nearly all reactive medicines have side effects, just ask any G.P.  Some have even been well documented by researchers and doctors.

Point in example is the arthritis pill Vioxx, which has reportedly killed over 100,000 people in the U.S since its introduction, and over 300 people in Australia.  Vioxx relieves pain of arthritis but triggers heart attacks and strokes. 

•    How many other medicines are there like that?

Sustainable Health Principles

•    Your health is fundamentally directly related to your mental condition and toxins we put into our bodies, through what we eat, drink and breathe.

•    Chronic and terminal illnesses doesn’t just happen. They happen for a reason. A sure sign that you and your body may be out of balance or “sync” with your environment.

The 10 principles of Sustainable Health:

1.    Maintain a balanced life, (middle road approach)

2.    Have a healthy diet

3.    Exercise regularly

4.    Sleep well

5.    Maintain a regular rhythm in life.

6.    Take preventative natural medicines to maintain health

7.    Engage in spiritual practices manifested through meditation, mind training and raising personal consciousness

8.    Learn to live and laugh more

9.    Building discipline in our selves through mind training and raising awareness

10.    Take a simpler approach to life

•    The result of this will reduce your stress level and the impact of stress upon your health and body.

Balanced life

What is a balanced life?  A balanced life means being in control of all aspects of our life, such as:

1.    Physical

2.    Mental

3.    Spiritual

4.    Family

5.    Financial

6.    Work and Career

7.    Social

It also means not to live to excesses, because we become attached to them.  When we become attached to them, we lose empowerment and they take over and control us.  Point in example is TV, drugs and gambling.

Preventative Medicines

•    Tribal societies have long known about preventative, which we are only starting to realise now.

•    Daily doses of preventative medicine may help you and boost your immune system.

What are natural preventive medicines?  Thinks like herbs, tonics, foods and drinks.  Things like fresh fruit or plants like St.Johns Wort, Aloe Vera or Mangosteen, just to name a few.

Spiritual Practices

Why do we need to maintain a spiritual approach?  What if I am an atheist or don’t believe in God?

•    Being spiritual doesn’t necessary mean believing in God.  Believing in oneself is far more important.  In essence you have God within, but most people fail to realise and acknowledge it.

Sleep

What is the importance of sleep?  Why is it so beneficial?

Hazrat Khan a famous Sufi teacher, lecturer, writer, and musician from India has described sleep as “food for the soul”.  Rumi another famous Sufi poet says in one of his poems, “O sleep, every night thou freest the prisoner from his bonds.”

“The prisoner when he is asleep does not know that he is in prison; he is free. The wretched is not wretched; he is contended.  The suffering have no more pain and misery.” 

•    Sleep frees and rests our mind, and ultimately our soul.

Being happy

Studies have shown that happy people are also healthier people.  Happiness is simply a state of mind.  Being happy truly comes when we are in control of our own thoughts and actions.

•    How can one be happy in the modern world with all the tragedies, violence and terrorism? 

One must remember that it’s not what happens to us that counts (because most often it is out of our control), but how we deal with it.  We can control how we react to it.  We have a choice.  The choice is to react to it in a negative way or positive way.

If we have a defeatist, negative attitude then we lose our empowerment.  If we take a positive, courageous attitude, then we can be empowered.

•    How is it that after the Boxing Day tsunami of 2004, children can still laugh and play and carry on with their day to day activities? 

The universe tells us that nature of life is to go on and the carrier of life is hope.

•    Perhaps we can take a lesson from these unfortunate people, to free our minds up, because we often find that we are prisoners of our own devices attached to comforts and material possessions we don’t really need driven by our insecurities and status anxiety.  These insecurities are manifested through modern day media which is driven by society’s capitalistic ideals.



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Dr. Dan Kaufman asked:


One of my favorite sayings is, “the trouble with communication is the belief that it actually occurs”, (unknown author).  In many organizations run by top down, command and control methods, this is particularly true. Information is parsed out based on need to know and, even more importantly, the input of those involved in the day to day operations of the organization is not requested, respected, or considered important to the overall functioning and identity of the organization.  From this view of leadership it is not surprising that far too often employees interpret for themselves the limited information that they receive and act on that information according to their own needs and values. When operations don’t proceed as expected leaders blame the workers and exert pressure on them to perform as expected which leads to resistance, further breakdowns in communication and most importantly wasted time and energy.

More and more, the success of any organization is based on the ability of that organization to develop a shared meaning about what the organization is and does, to establish networks of communication in which shared meaning is developed, communicated and evolves as differences within the organization signal the need for change. This is the emerging paradigm of leadership that Dr. Scott Mills refers to.  Difference in this paradigm is welcomed. Differences of perception and understanding are, like the story of people who only have access to only one part of an elephant, describing what they experience from their limited perspective, often the result of those involved not having all the information they need and only seeing the situation through their own frame of reference. These frames of reference are also called mental models.

Mental models are the lenses though which we view and respond to the world.  Our mental models begin developing early in our lives as master programs for dealing with situations and other people.  Our interpretation of the world is based on the health of our early relationships with our parents and later through our interaction with others in our lives. The more problematic our early relationships the more our mental models are designed to ensure that any early discomfort or pain does not reoccur in our current relationships. We learn to be critical, to be passive, to not trust others etc. It’s important for us to be aware of our blind spots so that we can recognize when our history is coloring the present and inhibiting our communication and our understanding. It’s also important to realize that the mental models we develop also block our own natural flow and essence barring our way from fully expressing the essence of who we are and what our part in the emerging universe truly is.

Our lenses color what we believe about the world and about others.  For example, do we believe that others are trustworthy?, do we believe that others are morally grounded and virtuous?,  do we believe that others are good natured or have evil or hurtful intentions? Do we believe that the world is a safe place or a scary one. How we answer these questions will guide how we communicate with and treat ourselves, and others, when in a leadership role.  Much of what we call leadership is expressed through our communication with others and the lens through which we view and think about our communication can have a powerful effect on our ability to lead and to learn, and to live.  Since organizations are largely about relationships, shared meaning, commitment, and communication, being clear about our own tendencies is extremely important for our health as leaders, for the health of our coworkers, and for the organization. We can build walls between us and our employees or bridges of understanding.

There is a good deal of research to show that, in our culture, when faced with difficult and/or embarrassing situations, we respond with what Chris Argyris labeled defensive routines or Model I behavior.  Roger Schwarz and others have labeled the same behaviors the unilateral control model. The behaviors associated with these models are intended to maximize winning, to be right, and to minimize the expression of contrary information and feelings.

For the purpose of this article I will use the term unilateral control model (UCM) to describe those behaviors that limit learning and create mistrust.   This model has at its base a set of core values and assumptions that individuals operate from that generate specific behaviors and strategies and result in a particular set of consequences. The consequences are usually not those intended.  More often than not, individuals use this model without being aware of it and with the best of intentions. They are usually quite surprised when they realize that their espoused theory in action (what they say they will do) is very different from their theory in use (what they actually do) and are even more surprised and befuddled when unintended consequences result from their actions.  So, what are the values and assumptions, behaviors and strategies, and consequences associated with this mental model? 

The core values associated with the UCM include seeing conversations in terms of winning and not losing.  In other words, you are interested in making your point (wins) and minimizing points inconsistent with your point of view (losses).  Negative    feelings are discouraged as they are seen as creating problems and making things worse and you act rational believing that your understanding and presentation of an issue is absolutely logical.

The assumptions of this model flow from the core values and are consistent with the belief that you, more than anyone else, best understand the situation.  Those who disagree obviously don’t fully understand which is why they see things differently.  You are right, they are wrong!  If others have different understandings then you question their motives, seeing yours as pure and good for the organization, while theirs are seen as self-serving.  Lastly, it is clear to you that your feelings are justified and therefore you have a right to get angry when others are wrong and don’t understand the situation. In order to prove that your values and assumptions are correct you design your conversations in such a way as to accomplish your goal of controlling the conversation and winning. 

The strategies that emerge from this set of assumptions are aimed at maintaining a position, and saving face. I will advocate my position clearly from the perspective that I know what’s best. I will keep my reasoning private, for if I share the reasons for coming to the conclusions that I have, others might disagree which might lead to problems.  I will also not ask others about their point of view for the same reason, it might lead to disagreement with my own position. I’m sure that you can predict what the consequences of the UCM are.  Almost always the result is misunderstanding, defensiveness, conflict, mistrust, limited learning, reduced effectiveness, and a reduced sense of satisfaction at work.

Clearly this model is not consistent with learning, with trusting others, with valuing others creativity, with understanding the importance of sharing information in order to allow freshness and openness to change.  In today’s fast changing world the kind of stagnation that this kind of thinking epitomizes will often lead to the downfall of an organization whose boundaries, both between workers within, and without the organization, are like brick walls that keep it isolated and unable to change even when it is obviously necessary.  Dick Cavett once said that “It’s a rare person who wants to hear what he doesn’t want to hear”.  This typifies leaders with this perspective. 

In the emerging paradigm the flow of information leads to meaning making on the part of employees and the development of a shared vision and clear identity of who they are, what they do, and what they stand for. Information has been defined by some as the difference that makes a difference. When leaders share information and encourage workers to communicate across boundaries the result is new relationships, more information, and when necessary, a change in the identity of the organization.  The organic nature of this framework keeps an organization nourished, healthy, and responsive to the world around it.

So, what kind of communication model or mental model typifies this kind of organization? It is what Roger Schwarz calls the Mutual Learning Model (MLM).  We’ll now spend some time unpacking the core values, assumptions, strategies and consequences associated with this model.  There is ample evidence to suggest that in order for true change to occur one must be able to change the way that they think.  Problem solving from within the same framework or paradigm leads to the use of different strategies that most

often lead to similar results.

The four core values of the MLM are valid information, free and informed choice, internal commitment, and compassion.  Valid information means bringing all information to the table, whether it supports your position or not, so that it can be validated by all those involved in the decision-making.  Free and informed choice means that individuals agree to do things because, after having reviewed all available information, they believe that it makes good sense not because they’ve been sold a bill of goods by their boss or manipulated or coerced into it.  Internal commitment flows from the first two core values in that when people agree with and understand the decision being made and have had the opportunity to review all relevant information, it is likely that they will have a sufficient level of commitment to fully implement the decision.  Lastly, compassion means that when sharing perspectives we agree to suspend judgment and be empathetic to self and others.

From these core values naturally flow the beliefs that others may see things that you don’t, that differences are opportunities for learning, and that everyone, to the best of their ability, is trying to act with integrity and with the best interests of the organization.  Here, everyone has a part of the answer and, when those bridges of understanding are built between one another, they can get a glimpse of the whole picture together. 

Schwarz describes 3 key principles associated with the MLM.  Curiosity means having the desire to learn more about something and being interested in how others came to understanding of the situation without arguing over who’s right and who’s wrong.  Transparency is the result of sharing all your information including the reasoning you used to reach your conclusions.  Lastly, Joint Accountability means that everyone, including the leader, shares responsibility for the current situation including the consequences it creates. This includes individuals addressing directly with one another any issues that exist between them.

The strategies associated with the MLM are called Ground Rules.  If you look closely you’ll see that the ground rules are ways of ensuring valid information.  The ground rules include testing whether your assumptions about others are true, sharing all relevant information, using specific examples to explain your reasoning, describing the reasoning that led to your conclusions, and explaining your underlying interests in desiring a particular solution. In addition to sharing your conclusions, you ask others to add anything that you might have missed, you jointly design next steps with others and make it safe to discuss undiscussable issues.  Spend some time thinking about the consequences that arise from the MLM vs. the Unilateral Control Model.  It’s clear that in this model everyone involved learns more, makes better decisions, has a greater commitment to decisions, and the quality of relationships improves. 

This model is consistent with Dr. Mills’ description of leaders who lead within the framework of the emerging paradigm.

“Leaders who live in the new story help us understand ourselves differently by the way that they lead. They trust our humanness; they welcome the surprises we bring to them; they are curious about our differences; they delight in our inventiveness; they nurture us; they connect us. They trust that we can create wisely and that we seek the best interests of our organization and our community, that we want to bring more good into the world”

Though the ground rules are helpful tools to use they are most valuable when one is able to “see” the world through new eyes and when we, as leaders, are able to embody this new world view in our work and in our interactions with others. William James said, “A great many people think they are thinking when they are really rearranging their prejudices”.  The emerging model of leadership requires a paradigm shift, one that can only occur through trusting, engaging with others, seeking understanding, and believing that through working together our organizations and our world will change for the better.

Self-Observation Exercise:

For the next week, let your focus be on simply noticing how you enter into conversations with others.  Is your intention to convince them of your perspective or to learn together?  Are you directing information at them or are you creating a space for them to openly share ideas and information?                     

At the end of the day, pick three conversations that you had during the day.  You may also use this exercise with emails if you do a lot of emailing.  In a few sentences describe the interaction, your intention behind it and the outcome.  Notice if there are any patterns that emerge for you throughout the week. Be prepared to share your observations with the group.

Author:  Dr. Dan Kaufman

www.spiraltohealth.com



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Richard G. Ligus CMC CPCM asked:


Introduction

Lean Manufacturing is an operational strategy oriented toward achieving the shortest possible cycle time by eliminating waste. It is derived from the Toyota Production System and its key thrust is to increase the value-added work by eliminating waste and reducing incidental work. The technique often decreases the time between a customer order and shipment, and it is designed to radically improve profitability, customer satisfaction, throughput time, and employee morale.

The benefits generally are lower costs, higher quality, and shorter lead times. The term “lean manufacturing” is coined to represent half the human effort in the company, half the manufacturing space, half the investment in tools, and half the engineering hours to develop a new product in half the time.

The Issues

Lean Manufacturing is in direct opposition with traditional manufacturing approaches characterized by use of economic order quantities, high capacity utilization, and high inventory. In changing from a traditional environment to one of lean production, cultural issues emerge quickly, as well as resistance to change. A managing change program is needed to accompany the effort.

But becoming a lean, world class company requires overcoming organizational inertia. Often overlooked are outdated cultures, ineffective management skills, untrained workers, bureaucratic red tape, and traditional pay and reward systems that do not fit. In a Lean Manufacturing transition, factories, systems, and organizations have to be streamlined. Lines of communications have to be opened. Barriers between departments have to be dismantled, and you must put an end to the “we’ve always done it that way” argument. To be successful, employees must be highly involved in assuming new skills and responsibilities. Consider the following:

(1)Organization culture is a major factor in success. Culture is to an organization as personality is to an individual. Said simply, its the “way things are done.” Culture greatly influences many facets of daily productivity and improvement: the way employees work, their attitudes toward work and change, their relationships with each other and management. The way change is introduced, embraced and tackled is defined by a company’s culture. All of it contributes greatly to a company’s health.

Experts estimate that 80 percent of becoming a lean enterprise is culture-related. Without employee support, a company can’t make many, if any, changes in the organization. Making any changes sustainable can be an uphill battle without the right company culture. For instance, a company with a bureaucratic and controlling management culture will likely have the most difficult time transforming itself to a Lean culture or a team-based organization.

(2)Traditional pay systems are structured through periodic reviews. The criteria for each employee are loosely defined, often generic in nature and hardly in consonance to a Lean environment. Rewards for taking additional responsibilities are not defined, nor for mastery of skills. There is little incentive for learning additional skills and virtually nothing for cross training, a must in lean manufacturing.

Individual pay systems pay for the job, and do not differentiate skills or contribution sufficiently. Over time they result in pay outstripping employee contribution, making employees complacent, self-inflated and difficult to work with. Contribution higher than pay, in contrast, results in disillusioned employees with high turnover and drop in performance over time. The challenge in devising a pay system is one where contribution and pay for each employee continuously grows parallel over time.

(3)Traditional performance reward systems are, for the most part, subjectively evaluated. This exposes the workforce to evaluation by opinions, popularity, or politics, thus creating the foundation for unfairness in judging a worker’s performance and individual contribution to achieving the organization’s goals.

(4)Traditional performance measurement systems frequently work in opposition to lean. Traditional companies measure manufacturing by monthly output (hours), and utilization. There is an old adage in manufacturing “You get what you measure.” If a plant manager is measured on plant throughput in hours, then that manager will strive to maximize the hours, building products that are not needed. The same holds true for equipment utilization.

(5)Traditional organization structures, usually functional in design, and bureaucratic in nature, are stifling, often impeding open communications and focusing on the job function, rather than the individual, and what the individual is able to fully contribute to the organization. Natural and functional conflicts create internal adversarial relationships which prevent the sharing of ideas. Instead our organizations should be conducive to velocity, and innovation: on the shop floor, and in the office. To make this happen, our emphasis needs to be around the tasks that need to be performed, and the skills required to perform them.

(6)Most managers fail to include and lead a change process, leaving subordinates with mixed agendas to carry the banner of change. Many managers fail to recognize that any significant change process requires a long-term, structured approach that is consistent in both direction and leadership. Many change managers fail to develop, communicate, and implement tactical plans to guide and monitor their vision for change to Lean Manufacturing.

In the absence of addressing these elements, Lean Manufacturing implementations can suffer through lack of worker interest and buy-in to the company initiatives.

The Missing Link

Organizational Development is a process by which behavioral science knowledge and practices are used to help organizations achieve greater effectiveness, including improving quality of work life and productivity. Included in the realm of organizational development are organization culture, values, and norms; employee personality and behavior; motivation, group interactions, performance measurement, education and learning, skills, pay systems, reward systems, and change management.

Today, we think of organizatonal development as the “glue” that binds the company together in pursuing focused initiatives, such as Lean Manufacturing. Yet we often discover these elements missing in Lean Manufacturing efforts. Implementing Lean Manufacturing without finding a means to motivate workers bogs down the initiative.

But how do you motivate workers to accept and practice the principles of a new manufacturing strategy? Workers are motivated when:

(1) Rewards are perceived tied to performance

(2) Rewards that are tied to performance are valued

(3) Effective performance is perceived to be achievable

(4) Workers experience achievement

(5) Workers perceive/experience personal or professional growth

(6) Workers are involved in teamwork

(7) A worker has control over one’s work

(8) Recognition is provided

(9) Advancement is achievable and experienced

(10) A friendly working environment is provided

(11) Workers are challenged, and

(12) Workers have fun and enjoy what they do

What is suggested here is, if all of the motivational factors can be integrated as part of the initiative, then the organization can be moved forward with much less resistance, creating an enhanced opportunity for success. Critical to moving the organization forward at the shop floor level are six key elements that we shall address here. There are more, but we will focus on the most overlooked:

(1)Lean Organization Cultures

(2)Lean Pay Systems

(3)Lean Performance Reward Systems

(4)Lean Performance Measurement Systems

(5)Lean Workforce Organization, and

(6)Lean Change Management Processes

(1)Lean Organization Cultures

A Lean culture focuses on sustaining change through leadership, empowerment, and communication. The dominant principle of organization has shifted, from management in order to control an enterprise to leadership in order to bring out the best in people and to respond quickly to change. A Lean culture can be defined as containing the following elements:

(1)A shared vision among all the employees

(2)A participative leadership style

(3)Teamwork

(4)Open two-way vertical and horizontal communications

(5)Collaboration

(6)Highly skilled workers

(7)Empowered workers

(8)Shared gains

This type of style includes employees in the decision making process. Employing knowledgeable and skillful employees allows them to become part of the team and allows a manager to make better decisions.

(2)Lean Pay Systems

When transitioning the organization to a Lean Manufacturing environment, new skills are required by the workforce for success. Defining those job skills and the associated performance standards is the starting point for an acceptable pay system. The combination of these two lead to the foundation for a Lean pay system. The forms of Lean Workforce Pay in use are Knowledge/Skills-Based pay, and Group-Based Performance pay.

With Knowledge/Skill-based pay,the idea is very simple. If you want employees to learn more skills and become more flexible in the jobs they perform, pay them to do it. Skill-based Pay is a method of payment that supports team work and fosters a learning organization. Individuals progress in pay according to the breadth and depth of skills they possess. Workers are paid for the skills they are capable of using, not for the job they are performing at a point in time.

Skill-based pay plans provide a major benefit in that they foster a climate of learning and adaptability. Employees with a broader view of the production process and organization are in a better position to participate in decision-making and make constructive suggestions for significant improvement in productivity and quality. Some characteristics are:

Skill-based pay systems are different from classification ladders

They provide incentives for focused technical growth by individual workers

They reward individual initiative, knowledge and skill, and high individual performance

They reward desired behaviors that foster new culture, norms, values, skills, performance goals, and cooperative team efforts

Skill-based pay systems supports lean workforce design by rewarding behavior required to implement work team designs

(3)Lean Performance Reward Systems

Group and organizational-based pay plans encourage cooperation among workers, more than individual plans. In a manufacturing plant, it is generally to everyone’s advantage to work well together because all share in the financial rewards of high performance. They are in principle:

Different from merit pay

Provide incentives for team collaboration toward pre-established goals

Reward high organizational performance

They reinforce goal setting by rewarding people for achieving their goals

Gain sharing is a form of group-based performance pay. Gain sharing plans pay bonuses based upon improvements in the operating results of an organization. Gain sharing plans, when designed correctly, can contribute to employee motivation and involvement. The plans tie goals of the workers to the organization’s goals. It is to the employee’s advantage to co-operate with each other, and when the plan is implemented properly, organizations can expect specific improvements. Typical results reported are enhanced coordination and team-work, cost savings, acceptance of new methods, reductions in overtime, and greater employee satisfaction.

Research findings reveal that results are best when the following are practiced:

Workers are focused on specific goals

Bonuses to be achieved are at least $2000 per year per worker

The goals are achievable as perceived by the workers

Objective measurement is deployed and visible



(4)Lean Performance Measurement Systems

One of the critical elements of Organizational Development in Lean Manufacturing initiatives often omitted is the aligning of performance metrics with team-based and individual reward systems. Performance metrics define the expectations. For a Team-based Performance Pay system to work effectively, numerical measurements must be used and visible to everyone on a Visual Team Board. The performance metrics must be uniform across all teams, and must be vertically aligned with plant goals. Since the workforce is organized in teams, similar team performance standards should be prepared, which will define the metrics relevant to the team.

While preparing the performance standard for the teams, some important points need to be borne in mind. A team performance standard must be related to the overall performance standard. It should focus on what the team can achieve. Measurements must be visible preferably on a team board, trends over a period should be plotted and everyone on the team should be involved in the measurement.

The team performance scorecard should include one very important aspect: the lean transformation task list and it should be displayed. Finally the team performance standard should focus on building the team via frequent feedback.

Just as the team performance scorecard is tied to the operational score card, the individual (team member) score card must be tied to the team’s scorecard. Important points include defining what is expected from a world-class employee. The performance standard must focus on what the individual can directly affect, provide him with frequent feedback and it must drive accountability. Typical Lean Performance Metrics are as follows:

Customer satisfaction

Output target vs. actual

Supplier quality defects per million

Operations quality defects per million

Days worked safe

Set-up time target vs. actual

Changeover time target vs. actual

Total cycle time order-to-ship

Process cycle time target vs. actual

Total manufacturing throughput time

Receiving cycle time

Replenishment cycle time

On-time customer deliveries

% Value-add time/Total throughput time

% Warranty Cost per Sales $

% Equipment Utilization

Cost per unit as $ of Sales

Days supply raw inventory

Days supply work in process inventory

Days supply finished goods inventory

% Value-add floor space to total

Inventory accuracy

(5)Lean Workforce Organizations

Multi-functional, flexible team-based organizations have been successful in Lean Manufacturing implementations in the U.S. since the 1980’s when we were designing and developing cells and cell teams. The idea of increasing the skills of operators by enabling them to perform multiple functions within a group of pieces of equipment (cells) has improved performance and worker satisfaction. This is why teams are one of the basic building blocks of Lean Manufacturing.

Flexibility adds another dimension to a company’s workforce capabilities. Not only can workers in this type of organization perform on different pieces of equipment, but also across departments and plants. This provides resource flexibility to Lean Manufacturing managers, and enables them to manage an operation much more smoothly.

In a Lean Manufacturing culture, decisions, previously made by foremen and supervisors, are driven down in the organization to the workforce. Workers are held accountable for their own performance, and have the privilege of determining how to make improvements.

Employees feel responsible not just for doing a job, but also for making the whole organization work better. The Lean worker is an active problem solver who helps plan how to get things done and then does them. Secondly, Teams work together to improve their performance continually, achieving higher levels of productivity.

In general, workers feel like they make a difference, they are responsible for their results, they are part of the team, they can use their full talents and abilities, they have control over how they do their jobs, and they take initiative. An empowered workplace is one where teams of people work together, collaborating on getting the job done. This is quite different from the traditional competitive workplace, where each individual employee is engaged in a race with others to get things done. In an empowered workplace, people can count on each other, rather than just work on their own.



(6)Lean Change Management Processes

The most important asset of any company are its human resources. To stay competitive, companies need to be in a constant state of refinement. We’ve learned from the last ten years that change does not successfully occur if the people who are to be affected by change are not involved. People are the organization, and can help define the change effort, which must be integrated throughout the organization.

The following are best practices in managing lean change:

(1)Create a sense of urgency and communicate it to the whole organization

(2)Develop and communicate a vision and Master Plan for the new Lean factory and organization that everyone can relate to

(3)Create a Lean Steering Committee to oversee the Lean Initiative

(4)Assign a program Director and local “champion”, with the sole responsibility to implement the Lean Initiative

(5)Analyze the organization’s readiness for change and

(6)Develop and communicate a vision and Master Plan for the new Lean factory and organization that everyone can relate to

(7)Educate and train managers, staff and workers

(8)Develop and implement Lean performance metrics

(9)Get everyone highly involved in determining how it can be accomplished to gain authorship, ownership, and buy-in

(10)Develop a detailed Lean implementation plan

(11)Provide adequate resources to accomplish the vision

(12)Align the culture, performance reward systems, pay system, performance measurement systems, and workforce organization with the Lean vision

(13)Empower action and remove obstacles to success

(14)Develop a pilot and make it a success

(15)Celebrate and broadcast the success

(16)Extend a series of Lean successes across the factory and organization until all is accomplished

(17)Don’t back-off

(18)Be relentless; Imbed the changes in formal policies, procedures, processes, work standards, job descriptions, and skill classifications

Summary

Often omitted from Lean Manufacturing implementations are the Organizational Development aspects that provide the “glue” to holding everything together. Including a change management process, that aligns the culture, performance reward systems, pay system, performance measurement systems, and workforce organization greatly enhances the chances of a successful implementation for achieving world-class performance in the 21st century through Lean Manufacturing transformation.



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Simon Mitchell asked:


There are many ways we can use our human energy to lighten the load on natural resources and tread lightly on our home planet. Check how many of these you do already:

1. Recycle and re-use Wherever possible, separate waste into compost material, bottles, tins, paper, clothing etc and make sure that these get recycled. See if your local council has a policy for recycling, food reclamation to fuel or even methane extraction from waste. If they don’t – start one. Ask your neighbours to contribute to a local composting station.

“The UK has one of the worst recycling records in Europe (12.4%) compared with 64% in Austria, 52% in Belgium, 50% in Germany and 47% in the Netherlands. In the UK we bury 80% of our rubbish in landfills, compared to the Swiss who only landfill 7% of their rubbish.” (The Observer 2004)

2. Shop locally or order a veg box Give your local farmers a boost by buying direct – either by visiting farms, farmer’s markets or through vegetable box schemes – which are usually organic. This saves transport costs in ‘food miles’ and guarantees, fresh, local, un-polluted and healthy, in-season food. Try and avoid supermarkets and shop locally when possible to enhance your own local micro-economy.

“The average household [in UK] spends £470 a year (or one sixth of its total food budget) on packaging. In a typical Asda or Tesco shopping basket only 26% of the cost is accounted for by food; the rest is packaging, processing, transport, store overheads, advertising and the mark-up of supermarkets which is sometimes as high as 45%.” (National Farmers’ Union)

3. Make more of your own food from fresh Stop buying ready-meals and throw away your microwave. Take the time to make healthy, balanced and delicious meals and condiments from wholesome raw ingredients. Be like the French and live to eat – rather than eat to live ! Eating food is the only activity apart from sex that involves all of our senses.

4. Promote community exchange If you can exchange skills, items or energy direct with other people without the use of money – this makes your activities more efficient. If you can share resources with people around you – then you don’t have to earn so much to buy things and you don’t have to work as much.

5. Improve local diversity of nature See what you can do to provide the right ecosystems to promote local biodiversity. Bring butterflies, moths, birds, wild flowers and so on into your local environment by providing the resources they need.

6. Review domestic energy use Check whether you can save energy by cutting down consumption or being more efficient. There are government schemes in the UK to help with heating efficiency and insulation. Even switching off at the plug at night saves power -those little red ‘power on’ lights add up to over £4 million of electricity used in the UK each year ! Look at how your home uses energy and where it can be saved, even if it means putting a jumper on occasionally.

7. Start a local investment scheme If you want to save for a future – doesn’t it make sense to invest in something you can see and touch – like a local investment system that brings a return on your money and improves your own locality ? Invest money where you can see what it is doing – and where you can lend a hand if needs be. Community companies, local co-operatives and credit unions are a growing resource for sustainable local investment. What better way is there than to invest your energy directly into your local micro-economy where you can cherish it ?

8. Use an ethical banking system Just what does your money do when you invest it a bank? Do you invest in the land mines that blow off children’s legs ? Do you support armaments manufacturing, the over-exploitation of rainforests, globalised cartels intent on raping the planet ? Does your default investment in a bank endorse child slavery and prostitution, international drug running and money laundering ? Check the investment policies of your bank to see just where they are putting your energy as an investment. If you don’t like what you see, at least consider using an ethical bank that might invest in things you want in the world. Even better – reach for a lifestyle that doesn’t include a bank account at all.

Did you invest in this ? “Japanese physicist Professor Yagasaki calculated that the 500+ metric tonnes of depleted uranium (DU) that the US unleashed on Afghanistan was the radioactive equivalent of 51,875 atomic bombs of the size dropped on the Japanese city of Nagasaki. During the 2003 Gulf War the amount of DU used was the equivalent of 103,750 atomic bombs the size of that dropped on Nagasaki. DU fallout will travel from the Middle East to the UK, US and parts of Asia.” (International Physicians for the Prevention of Nuclear War)

9. Review car use and petrol consumption The real price of petrol, if you apply economic principles to its production – that includes the time the earth has taken to make it – comes in at over £1 million per gallon. Its use produces awful chemical pollution and extreme noise. Most internal combustion engines run at an incredibly low efficiency (usually about 20%). The logic of having something that weighs over a ton to transport a single person defeats me. Yes, I know they’re incredibly convenient compared to the alternatives and that many motors have cult status but – come on – there has to be a better way than this ! Boy am I looking forward to hydrogen / oxygen fuel cells. Cycling is great!

10. Start a local energy collective Your roofs are a resource ! Take a look at some of the rooftop energy panels available today. Chat with your neighbours about a collective approach to local energy needs. Sell your excess energy back to the grid ! Intermediate technology combined with modern technology in wind, solar or water power has come of age so start your own power supply.

11. Learn more about the nature in your local environment Which wild animals and plants live in your environment? Share some time with them and see what they can teach you. Become a direct ‘friend of nature’ and explore how other species see the world we share. You could even adopt some wild nature near you and ‘look out’ for it.

12. Make things from found or recycled materials Do you remember the fun you had whittling wood when you were younger? Keep an eye out for interesting wood you can prepare to make useful things. So much stuff is just thrown away or destroyed that could be useful again given a little T.L.C. Wild wood can make attractive coat hangers, boxes, shelves, even furniture. Waste skips often have objects that can easily be given a ‘new life’. Working with your hands to make things ‘new’ can be a deeply satisfying experience.

13. Make your own Christmas and birthday presents Take time out to make things that you enjoy and give them away to people you love. These have a value way over anything you can buy. If you have a creative hobby – use it to make gifts instead of buying them. If you don’t – find a hobby or activity that puts you in touch with natural things.

14. Stop using pharmaceutical drugs and chemicals and go natural We are in a culture where medical consumerism is the norm. Explore some of the alternatives like using your food as preventative and curative medicine, or learn about the herbs and spices that have traditionally boosted mankind’s health for millennia. There are many gentle ways to find, promote and maintain health and you will find some excellent examples at the StarFields Network.

15. Join an environmental group Express your energy in a collective way by joining a group that voices your concerns. Put your energy into changing the situation for the better by directly sponsoring a specific environmental cause.

16. Use natural materials from a sustainable source over synthetic materials The more natural a product is – the less pollution is usually incurred in its production. Support your environment by valuing natural materials over synthetic, for example (organic) cotton over polyester. Think about where building materials or other resources have come from and the processes it takes to make them.

17. Feed your neighbour A quick story based on Dante’s Inferno: Dante (or someone like him) visits Hell and finds a room of ‘food torture’. The inhabitants are glued to chairs round a large table covered with food, but they all have their arms replaced by 10 foot chopsticks. They lift bits of food high over their heads and drop it down onto their faces in a pathetic attempt to feed themselves. Later, our hero visits heaven and finds exactly the same situation except for one thing. The people in heaven are feeding each other across the table !

18. Dance, sing and laugh. Look after yourself and have fun If you are happy, fulfilled, in good humour, enjoying life’s journey and so on – the chances are that others around you will be able to feel that way too. This moves us all along.

19. Don’t fly in airplanes If possible, take a ship or train for long hauls or holidays. Aircraft are extremely expensive in pollution terms. Enjoy the sensation of travelling more slowly. Accept the journey as part of the trip.

20. Take an action holiday Why not donate your energy to a cause like helping indigenous people set up sustainable economies ? There are many companies offering the experience of useful voluntary work overseas. This is a most direct way to contribute to a sustainable world and gives you face-to-face contact with other cultures.

21. Grow more plants indoors Enhance your pact with nature by turning your home into a plant haven. Even simple spider plants can improve your space by bringing nature in and cleaning the air. Plants are pretty undemanding compared to pets and they bring life in and produce air. Go the whole hog and grow some trees.

22. Consider changing your employment What does your ‘means of income’ do in energy terms ? If the ‘ethics’ of your employment is distant from your own values then you have essentially sold your soul for money. Think carefully about the consequences of your employment. Consider finding employment that is near to your core values and you will find a more fulfilled ‘you’.

23. Review how you are investing in your own future Concerned about pensions ? It is certainly looking like someone has pulled the plug on that one. Anyone under 45 should be looking to exactly what they want in older years and finding ways to achieve it that may not involve money. There are serious flaws in our investment systems that are becoming more and more evident. Co-operative or communal solutions to support in older years will be an increasing solution to lack of money.

24. Review your usage of water If you have metered water, review how much you use and where savings might be made. For example bath water (without chemicals) can be used to water plants, a brick in the water cistern saves flush water. Can you use the water that lands on your roof that you pay for the privilege of having removed ? Water butts are cheaper than ever and some local councils offer price reductions to residents. There are many water filters on the market that improve the quality of tap-water and water is a key issue in health, we are mostly made of it ! Water is a key issue on planet earth in the 21st century.

” Nearly 97% of the world’s water is sea water or otherwise undrinkable. Another 2% is locked up in ice caps and glaciers. This leaves 1% to meet all of humanities growing needs, including agriculture, manufacturing, community and personal household needs. Of that 1%, one quarter of the world’s fresh water is found in Canada’s lakes, rivers and streams.” (CPS June 2004)

25. Cut down on noise and light pollution Many birds in cities sing at night as it’s the only way they can make themselves heard. Generally birds in cities have to sing louder and the stress this causes gives them shortened life spans. Listen for a moment now – what can you hear beyond the hum of computer fan? How much of this noise is really needed? Wouldn’t just some ‘quiet times’ be nice? Get together with your neighbours and see if you can negotiate a local ‘quiet time’, like a Sunday morning. Unnecessary light also interferes with wildlife and even worse – it blocks out the stars – a source of wonder till the end of time.

26. Start your own herb garden Grow your own medicinal and culinary herbs. Many of these are easy to grow on a windowsill, in a window box or tub somewhere. The direct growing and use of plants ties you into natural cycles and rhythms – you could even learn about ‘moon gardening’ cycles and biodynamics !

27. Grow your own food Even simple growing such as mustard cress or delicious sprouting seeds contributes to a good diet. A surprising amount of your own food can be grown in a little space by using ‘potato stacks’ or climbing fruits. There is no better feeling than harvesting your own crop and eating it with friends. There are many dwarf bush varieties of fruit, some even have more than one fruit type on the same bush.

28. Downsize Think about how you can work less and keep a good quality of life. Balance quality of life with standard of living. Contribute less to GDP and the national/global economy and more to a wholesome local and global ecology. Think global and act local.

29. Go organic Whatever you consume, source it from a place that values natural processes over industrial ones. There are many enterprises providing organic food, drink, clothing or materials from sustainable sources. Take pride in tracking these down and using them in preference to more exploitative practices.

30. Spend time with nature Take the time to visit nature and spend time relating with it. Find and adopt special places where you can go to feel the cycles and forces of nature and know that it is an aspect of you, and you of it. Many people are forming ‘collectives’ to protect or improve special places they value



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