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Foreword H. Eugene McBrayer xv
Preface xxi
Acknowledgments xxv
About the Author xxvii
Industrial Culture: The Human Side of Change 1
Improve the Performance of Your Business by Creating a New Industrial Culture 2
The Importance of a Culture of Rapid Improvement 4
How Your Culture Affects the Potential for Improvement 6
How Culture Is Influenced by Strategy 7
A Simple Model of Culture 8
Values 8
Beliefs 8
Behavior 9
Rituals 9
How to Use This Simple Model of Culture 10
Designing a Corporate Culture 11
Elements of a Culture of Rapid Improvement: An Overview of How This Book Is Organized 11
Summary of Chapter 1 12
Establish the Values and Beliefs of Your New Culture 15
Strategy: The Values and Beliefs of an Industrial Culture 19
Establishing Strategic Goals for Your Organization 20
Establishing Your Organization's Tactical Goals 21
Setting Strategic Goals Is the Responsibility of the Senior Leader 22
A Process for Establishing Strategic Goals 23
Look Outside Your Organization 23
Evaluate Your Customers and Competitors 24
Consider the Owners of Your Business 24
Do Not Forget to Consider Your Employees 25
Assess the Needs of Your Organization's Community 26
Next, Look Inside Your Organization 27
Analyze the Gap between Your Current Capabilities and Your Future Requirements 28
Write Your Goals 29
Strategic Goals Have a Simple, Memorable Statement of the Gap You Are Closing 30
Strategic Goals Have a Directionally Correct Statement of Future Needs 30
Strategic Goals Have a Credible Description of Current Capabilities 31
Strategic Goals Have a Few Objective Measures That Define Progress 31
Strategic Goals Have Interim Tactical Performance Targets to Be Achieved 32
Present Your Goals to Your Organization 32
Conclusion 36
Summary of Chapter 2 37
Making Your Cultural Values Personal 39
A Three-Level View for Translating Goals into Actions 43
The CEO's Three-Level View 45
The Division Managers' Three-Level View 45
Individual Department Managers' Three-Level View 48
A Case Study of the Three-Level View of Translating Goals to Actions 48
Keeping the Whole Team on Board 52
Refreshing Your Goals 52
A Final Word on Translating Strategic Goals into Tactical Goals and Tactical Actions 54
Summary of Chapter 3 55
Quality Stations: The Rituals of Your Culture 57
Rituals at Work 57
Using Quality Stations to Implement the Four Rituals of Improvement 59
Quality Stations Help Show Tactical Goals 59
Quality Stations Show Activities in Progress 60
Quality Stations Show Projects Completed and Measure and Communicate Results 60
Quality Stations Show Ideas for the Future 60
Details on the Four Rituals of Improvement 60
Show the Tactical Goals of the Team 61
Show the Projects in Progress 62
Measure and Communicate Results 62
Make Ideas for the Future Visible 63
Culturally Appropriate Small-Team Leadership 65
Communications at the Quality Stations 67
Appearance of a Quality Station 68
The Work of a Quality Station 73
Management Quality Stations 74
A Final Word on Quality Stations 75
Summary of Chapter 4 75
Engaging People in Your New Culture 77
The Objective Elements of Engaging People 81
Creating a Framework That Engages People to Help 84
People Need Goals to Achieve 85
People Need New Skills to Do New Things 86
Root Cause Analysis 89
People Need Time to Work on Improvement 90
People Need Access to Resources 93
Providing Funds 95
Small-Event Improvements 95
People Need a Structure for Action 96
Summary of Chapter 5 97
The Subjective Elements That Disrupt Engagement of People 99
What if Improvement Does Not Happen? 100
The Subjective Elements That Disrupt Engagement 101
Some Teams Do Not Trust Management 101
Some Teams Have Disruptive Members 105
Intentionally Disruptive Team Members 106
Direct Relationships with Management 106
Intentionally Disruptive Individuals 107
Unintentionally Disruptive Team Members 108
Summary of Chapter 6 110
The Social Design of Your New Culture 111
Understanding the Theory of Industrial Culture 115
Personalities and Personal Cultures at Work 116
Each Business Has a Culture That Defines the Workplace 117
Social Cultures at Work 119
Three Typical Responses to a Dominant Culture 120
People of Different Cultures Will Appear to Fit the Dominant Culture at Work 121
People of Different Cultures Will Adopt a Neutral Behavior while at Work 122
People of Different Cultures Will Resist the Dominant Culture at Work 122
What to Do about These Three Responses to Your Dominant Work Culture 123
Situational Cultures 124
Summary of Chapter 7 125
The Social Design of a New Culture 127
Social Design in Industry 128
Precision and Timeliness 129
How to Handle Routine Work 131
How to Handle Nonroutine Work 132
When to Begin 133
Collaboration and Teamwork 134
Communicating about Differences within a Team 136
Different Expressions of the Same Family Values 139
Different Interpretations and Assumptions of a Simple Task: Getting the Mail 141
How to Handle Aberrant Behavior 142
Inclusion and Contribution 142
Summary of Chapter 8 144
Valuing Individuals 147
Five Elements of Valuing Individuals 147
Develop Corporate Awareness That Individuals Are Different and Valuable 149
Recognize That Many Personal Qualities Are a Mixed Blessing 152
Provide Emotional and Social Support during Cultural Changes 154
Dealing with "Heritage" Issues 155
Establish Affinity Groups 156
Facilitate Meetings of Affinity Groups 157
Unexpected Affinity Groups 157
Establish a Group of "Diversity Pioneers" 158
Establish New Policies and Practices for Your New Culture 158
Enforcement of Your New Culture's Policies and Practices 160
Celebration of Your Cultural Change 161
Summary of Chapter 9 163
Managing Emotion at Work 165
Exploring Emotions at Work 166
Listen to What Your People Tell You about Their Feelings about Work 169
Everything Is Not Good When Real Change Is Happening 170
Interpreting the Emotions of Change 171
If You Cannot Interpret Emotions at Work, Find Someone Who Can 174
Interpreting Emotions Is Key to Implementing Successful Change 175
Summary of Chapter 10 176
Managing and Sustaining Cultural Change 179
How Communication Reflects Your Culture 181
Three Types of Messages from Management 183
Delivering News 183
Making Statements of Belief and Support 185
Giving Instructions for Action 187
Organizational Implications of Communication: The Role of Senior Management 189
The Role of Middle Managers in Communicating 191
People Do Not Get Your Message 192
Middle Managers Are Disenfranchised 192
Manage and Measure the Communication 194
Summary of Chapter 11 197
Measuring the Performance of Small Events 199
Principles of Measuring Small-Event and Autonomous Improvement 200
Measuring How Engaged Your People Are in Improving Your Business 202
Using Bulk Measurements to Ensure You Are All Working toward the Same Goal 204
Measuring Visible Results Reinforces an Intuitive Understanding of Performance 206
Make Sure Your Measures Are Consistent and Credible to the People Being Measured 208
Make Your Measurements Direct and Exact 208
Keep Your System Fair and Accurate 209
Create a Subject Matter Expert for Measurement 210
Other Interesting Measurements 211
Useful and Nearly Objective Assessment of Subjective Data 211
Use Bulk Measures When Individual Data Are Not Available 212
Look for Useful Trends in Meaningless Data 213
Defend Your Measures 215
Summary of Chapter 12 216
Managing the Competence of Your Employees, Especially in Business-Critical Roles 219
Early Assessments of Individual Employee Competence 220
Recognizing the Importance of Critical Positions to the Overall Performance of the Organization 222
The Basis of Data Gathering to Assess Employee Competence 223
Measure the Percentage of Critical Positions Occupied by Highly Competent People 223
Measure the Overall Performance of the Organization 224
The Process of Data Gathering to Assess Employee Competence 225
Identify the Critical Positions in Your Organization 225
Assess the Individuals Working in Your Critical Positions 226
Correlating Personal Competence with Organizational Performance 226
Management Lessons from Competence Assessment 227
Focus Your First Personnel Development Actions on Critical Positions 227
Begin Promptly 228
Spread the Word about Competence Management 230
Recognize That Not All Managers Need to Be Highly Competent 231
Many Critical Positions Are Underappreciated 231
Lessons to be Learned from the Exceptions 233
Summary of Chapter 13 234
Getting Started in Your Organization 237
Phase I: The First Six Months 239
Create Strategic Goals For Your Business 239
Give Your People New Capabilities or Tools to Practice Improvement 240
Single Minutes Exchange of Dies 242
Total Productive Maintenance 242
Reliability Engineering 243
Value-Stream Mapping 243
Establish the Basis for a New Social Culture That Is More Inclusive and More Autonomous 243
Conduct Your First Pilot Project 246
Sustain Your Gains 249
Summary of Chapter 14 250
Phase II: The Second Six Months 251
Complete the Process of Deploying and Translating Your Goals 252
Initiate a Second Round of Pilot Projects 253
Take Formal Steps to Include Individuals in Your Culture Change 254
Implement New Tools and Methods in Your New Pilot Projects 256
Use Quality Stations 257
Sustain Your Gains in Communication and Performance 258
Summary of Chapter 15 259
Phase III: The Third Six Months 261
Create Quality Stations That Small Teams Will Use to Advance Your Goals 262
Establish Pilot Projects on the Front Line 264
Select New Tools That Support Autonomous Action 265
Create Affinity Groups to Ensure Inclusion of All Individuals 266
Sustain Your Gains by Establishing New Formal Practices 267
Summary of Chapter 16 268
Phase IV: The Fourth Six Months 271
Ensure That the Goals You Are Implementing Are the Goals You Deployed 271
Select Only Projects That Improve Performance 272
Train People to Use the Specific Tools That Will Meet Your Goals 273
Make Sure All Individuals Are Included in Your Culture Change 273
Communicate Your Belief and Support of Your Culture Change 275
Sustain Your Gains into Year Three and Beyond 275
Looking toward the Future 276
Beginning the Third Year 277
Summary of Chapter 17 278
Index 279
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