Culture and Leadership Chapter 2 Review Culture and Leadership

Culture and Leadership Chapter 2 Five key attributes of Leadership 1. Charisma 2. Competence 3. Communications 4. Energizing people 5. Vision Leadership Support Creating vision / mission Resources availability Empowering people Individual /group goals alignment with corporate vision Viewing training as investment in developing people Leadership is a key enabler in creating a culture (reliability culture) by providing direction and resources

Culture and Leadership Chapter 2 Organizational Culture Culture refers to an organization’s values, beliefs, and behavior. Behavior and success are two key enablers in creating the culture. Culture change is difficult to achieve. Most people think they have done things for years a certain way, why should they change. As a leader at sometime you will be required to make culture changes. Once you get one person to do something a different way and they find the new way easier and they meet with success in doing the task different and the new way becomes the norm you just changed a culture. There is a circular flow of the organization, behavior, success and culture as shown below. Behavior Culture Success

Culture and Leadership Chapter 2 Two key elements of any successful effort to change the culture are: 1. Influencing the behavior to change 2. Overcoming resistance to change To influence the behavior to change, the following actions are suggested Increase understanding (explain why the changes is needed and how it relates to vision) Goal setting and expectations (set goals that are obtainable and explain what is to obtained when the goals are reached) Praise, reward, and celebration (tell people how good they are doing, if possible provide awards or cash for doing a good job and if the entire group achieved or over-achieved provide some type of celebration) Role definition and clarification (make sure everyone knows what to do and how to do it) Procedures and standards (make sure they are clearly written and are followed) Persistence, tenacity and discipline To overcome resistance to change, the following actions are suggested Listen and communicate Create awareness Educate and train to create understanding Get team members involved and let them see some success Empower team members to improve, tailor the process

Culture and Leadership Chapter 2 Strategic Framework A vision for the future – where are we and the organization going A mission that defines what we are planning to do – what will be accomplished Values that shape our actions – why are we going in this direction Strategies that zero in on key successful approaches – how will we get there Goals and Action Plans to guide our daily, weekly, and monthly actions – when will we get there Vision Mission Strategies Goal Action Plan

Culture and Leadership Chapter 2 What is a Vision Statement A short inspiring declaration of what the organization intends to become or to achieve at some point in the future What is a Mission Statement and what should it say Mission statements and vision statements are very different. A mission statement should be a short and concise statement of goals and priorities. A mission statement should answer four questions 1. What do we do? What is the purpose of the origination 2. How do we do it? What’s unique about the origination 3. For whom do we do it? Who is our customers and stakeholders 4. What are our values and beliefs? Three main benefits attributed to a mission statement 1. They help companies focus their strategy by defining some boundaries within which to operate 2. They define the dimensions along which an organization performance is measured and judged 3. They suggest standards for individuals ethical behavior

Culture and Leadership Chapter 2 Strategy Strategy is a very broad term which commonly describe any thinking that looks at any bigger picture It is the way in which an organization orients itself towards the market in which it operates and towards the other companies in the marketplace against which it competes Strategy Objectives Focused on a result, not an activity Consistent Specific Measurable Related to time Attainable

Culture and Leadership Chapter 2 Goals The major outcome of strategic planning, after gathering all necessary information, is the setting of goals for the organization based on its vision and mission statements. A goal is a long-range aim for a specific period. It must be specific and realistic. Action Plans Once everything is in place, your vision, mission statement, strategic planning and goals are all in writing how do you accomplish them. Set action plans that are detailed, easy to follow. Distribute them and start working them to achieve your vision.

Culture and Leadership Chapter 2 Reliability Culture In a reliability culture, prevention of failures become an emphasis at every level of the organization. The entire work force – operators, maintainers, engineers – think and act to ensure : Assets are available to produce when needed Assets are maintained at a reasonable cost Optimized PM plan (RCM/CBM based) An effective facility maintenance plan – 80/20 principle applied to prioritized to work. Most of the work is planned and scheduled. If an asset fails, it gets fixed quickly, the root cause is determined and action is taken to prevent fixture failures. Read and understand the three examples on pages 39, 40 & 41.