Bob Chapman Chairman and CEO People-Centric Leadership: Sustainable Lean Implementation

you impoverish yourself if you forget the errand.” You are here to enrich the world, and you impoverish yourself if you forget the errand.” - Woodrow Wilson Why, Why, Why, Why, Why? “You are not here merely to make a living. You are here in order to enable the world to live more amply, with greater vision, with a finer spirit of hope and achievement.

hands heads hearts We have been paying people for their hands for years, and they would have given us their heads and hearts for free - if we had just asked. The Power of People-Centric Leadership Business is the economic engine of our society and has the opportunity to impact our culture!

 Our Guiding Principles of Leadership are in concert with Lean philosophies can accelerate the process  By embracing Lean we can accelerate the process of bringing our Leadership principles to the organization focus on people  Through our focus on people, we unlock the true potential of Lean philosophies Why We Embrace Lean

The Foundation of Our L3 Journey  Barry-Wehmiller is a $1 billion, 120 year old, privately owned, capital goods company that became a platform for 42 related acquisitions over a 20 year period.  Barry-Wehmiller is ‘governed’ by a professional outside Board with public company disciplines with 11 divisions.  Our business model developed in the mid 80’s and was designed around the value focused fundamentals of ‘Achieving Principled Results on Purpose’  The results of the implementation of this ‘vision’ are a 21% compound growth in revenues and 23% compound growth in share value over a 20 year period.

The Foundation of Our L3 Journey $323 $248 $132 $95 $44 $425 $520 $772 $941 $1,059 21% Compound Growth Rate

The Foundation of Our L3 Journey 17% Compound Growth Rate

suboptimized The potential of Lean has been suboptimized by the focus on waste elimination. fully engage Achievement Fulfillment The real POWER of Lean is to fully engage people’s heads and hearts to create habits that result in Achievement and Fulfillment. The Power of People-Centric Leadership

 People-Centric Leadership  The Importance of Vision  Recognition creates Fulfillment The Power of People-Centric Leadership Creating and Sustaining a Lean Culture

primary focus The primary focus of leadership is creating an inspirational environment for people to embrace, implement, and live Lean concepts Leadership Journey People-Centric Leadership

vision People-Centric Leadership begins with our vision: We accelerated the power of our Guiding Principles of Leadership and Lean thinking through the articulation of our Living Legacy of Leadership People-Centric Leadership “We measure success by the way we touch the lives of people.”

fulfillment. We commit to a sustained leadership model that creates a culture where each of us returns home with a sense of fulfillment. People-Centric Leadership

Living Legacy of Leadership (L3)  Responsible Freedom- unleashing the power of people to take ownership  Continuous Improvement- completing meaningful work in teams  Recognition/Celebration- creating a sense of fulfillment in every team member People-Centric Leadership

It is important to focus first on people, changing PEOPLE - PURPOSE - PROCESS PURPOSE - PROCESS - PEOPLE TO People-Centric Leadership

The Importance of Vision Leadership Journey safety The experience of establishing our principled focus on safety demonstrated the true significance of the power of a vision

What is SAFETY? If we measure success by the way we touch the lives of people, then isn’t safety as easy as wanting each of our team members to return home safely ? The Importance of Vision

Therefore, our Safety Vision is as simple as “We have a sincere, consistent commitment to a culture where safety is more than a priority; it is a company value.” The Importance of Vision

by-product  When we began to focus on the principle of our team members going home safely, the by-product was …… Workers Comp Costs BW vs. Industry Avg Safety Covenant Implemented Safety Covenant Sustained

Recognition creates Fulfillment Leadership Journey communication True leaders sustain lean transformation through consistent, positive communication

Recognition creates Fulfillment most point to a lack of leadership as the reason why  Only 10% of employees look forward to going to work and most point to a lack of leadership as the reason why, according to a recent Maritz Research poll. while being respected  People fundamentally want to know that what they do matters while being respected, challenged and recognized for their roles.

Recognition creates Fulfillment I am talking to my wife more.” “With L3, not only my work life, but my home life has improved. I come home in a different frame of mind, and as a result, I am talking to my wife more.” - Steve Barlament, UAW, Green Bay

Recognition creates Fulfillment  Lean techniques allowed the team to complete 12 machines in record time for P&G by-products  Other by-products included 25% reduction in area and 35% increase in throughput

 In our culture, it is always important to ask: How does this make you feel? Recognition creates Fulfillment  Brandi prompted Steve M saying, “Tell Bob about your Dad.”  Steve M shared that he got more done with less stress and had more family time!

 People-Centric leadership was practiced and the by-product was...  Processing time has been reduced by 20%  The workspace required for receiving has been cut in half Recognition creates Fulfillment

Jaguar Leadership Award  Outstanding L3 achievers are given the use of the L3 Jaguar for one week each.  Dan proudly shared with his family and friends his leadership role in the L3 Journey. MyronDan

Recognition creates Fulfillment Larry Pierquet, Larry Pierquet, a 30-year PCMC/UAW team member, spoke with passion following his participation in an L3 event, “This is the first time anyone ever asked me what I thought.” HOPE “It created in me a sense of HOPE for the future!”

 We have achieved significant milestones while implementing the L3 Leadership Model l Organic Growth accelerated to 16% in 2007 l Value Growth- shareholder returns reached 27% in Fiscal Year 2007 and 23% compounded since 1987 l PCMC, our most rapid division in lean implementation, improved performance by 24% in Fiscal Year 2007 The Power of People-Centric Leadership

profound impact  The potential of Lean principles, when applied with People-Centric leadership, can have a profound impact on the culture of an organization and our society principled, inspiring, sustainable  Singular focus on waste elimination and profit improvement lacks a purpose that is principled, inspiring, and sustainable The Power of People-Centric Leadership

Through People-Centric leadership we align … head heart hands the head to a vision the heart through inspiration the hands to continuous improvement trust FULFILLMENTperformance The results are... extraordinary levels of trust, FULFILLMENT and performance.

Craig Compton Ken Coppens Scott Johnson Larry Pierquet Dick Ryan Brian Wellinghoff People-Centric Leadership Learn more about our Transformation in our Breakout Session