15 Laws for Continous Improvement

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R. Keith Mobley, renowned practitioner and author o 22 books, shares his

experience and observations gleaned

rom a 46-year career devoted to

continuous improvement in manuacturing. Keith’s letters contain real examples

o what works – and what doesn’t – in the quest or excellence.

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R. Keith Mobley’s 15 Laws or

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At the cajoling o riends and associates, this is the rst in a series o

At the cajoling o riends and associates, this is the rst in a series o letters that will share my experience and observations gleaned romletters that will share my experience and observations gleaned rom a career devoted to continuous improvement in manuacturing

a career devoted to continuous improvement in manuacturing. I nothing else, almost 50 . I nothing else, almost 50 years o involvement at all levels o plant andyears o involvement at all levels o plant and corporate management has shown me what does not work and hopeully what is

corporate management has shown me what does not work and hopeully what is needed to be successul and competitiveneeded to be successul and competitive.. As the oldest son o a millwright, the ocial start

As the oldest son o a millwright, the ocial start o my career was working the night shit as o my career was working the night shit as a maintenance technician to pay or mya maintenance technician to pay or my education. I was introduced to the business world by stories my ather shared about his perception o management and how its “baling education. I was introduced to the business world by stories my ather shared about his perception o management and how its “baling wires and band aid”

wires and band aid” mentality destroyed equipment and morale. This perception seemed to be mentality destroyed equipment and morale. This perception seemed to be conrmed when viewed through the eyesconrmed when viewed through the eyes o an 18

o an 18 year old engineering student.year old engineering student.

Ater college, my career evolved much quicker than most

Ater college, my career evolved much quicker than most – growing rom – growing rom a rst job a rst job as a plant as a plant engineer to plant manager at engineer to plant manager at 25, V.P25, V.P.. Engineering and Manuactu

Engineering and Manuacturing at 30, and ring at 30, and E.VE.V.P and C.O.O. at 4.P and C.O.O. at 4 0. Looking or even more o 0. Looking or even more o a challenge, I have spent the past 27 yearsa challenge, I have spent the past 27 years helping clients around the world transorm and

helping clients around the world transorm and achieve their ull potential.achieve their ull potential.

TTwo actors are wo actors are responsible or my ast-track growth. First, a responsible or my ast-track growth. First, a God-given talent or seeing beyond the surace God-given talent or seeing beyond the surace conditions and trulyconditions and truly understanding the underlying cause o problems and actors that

understanding the underlying cause o problems and actors that limit perormance has been the cornerstone o limit perormance has been the cornerstone o my growth and success.my growth and success. I have dedicated my lie to honing what was given and using it to

I have dedicated my lie to honing what was given and using it to its best advantage.its best advantage.

The second actor was pure, dumb luck. When I needed it the most, I had the opportunity to meet and work with

The second actor was pure, dumb luck. When I needed it the most, I had the opportunity to meet and work with three gited men whothree gited men who also had the insight to

also had the insight to understand what companies need to succeed. Dr. Edwards Deming, Philip Crosby and understand what companies need to succeed. Dr. Edwards Deming, Philip Crosby and Joseph Juran helped me toJoseph Juran helped me to ocus my vision on

ocus my vision on how to create a how to create a sustainable, highly successul companysustainable, highly successul company. I . I treasure the education and mentoring that these gentlementreasure the education and mentoring that these gentlemen provided to a brash,

provided to a brash, perhaps egotistical, young man. Without them, my career would have perhaps egotistical, young man. Without them, my career would have been quite dierent.been quite dierent. Now, as I too quickly near the end o my

Now, as I too quickly near the end o my career, it is time to share as much as I can career, it is time to share as much as I can with others and this series o letters is one avenue orwith others and this series o letters is one avenue or sharing what I have learned. As you know, I live to

sharing what I have learned. As you know, I live to work—nothing gives me more pleasure. At 67 I must ace the realization that no one liveswork—nothing gives me more pleasure. At 67 I must ace the realization that no one lives orever, but I am still convinced that we can create legacies that do. While I don’t presume to be on the same

orever, but I am still convinced that we can create legacies that do. While I don’t presume to be on the same level as my mentors, creatinglevel as my mentors, creating a legacy is important to me.

a legacy is important to me. HopeullyHopeully, the lessons that I have learned the hard way , the lessons that I have learned the hard way will help and in some small way be will help and in some small way be my legacy.my legacy. In this series o

In this series o letters, titled Refections on Excellence, I will share my letters, titled Refections on Excellence, I will share my observations o the characteristics common to all highly successulobservations o the characteristics common to all highly successul companies; how they were able to overcome the myriad problems that limit perormance; and the pitalls that should be avoided in your companies; how they were able to overcome the myriad problems that limit perormance; and the pitalls that should be avoided in your journey to sustainab

journey to sustainable world-class status. I tle world-class status. I think that these hink that these characteristicharacteristics may surprise youcs may surprise you. They are not comp. They are not complex or sophisticatlex or sophisticated. In act,ed. In act, most are common sense and cost nothing to implement.

most are common sense and cost nothing to implement.

As a taste o

As a taste o what is to come, let me what is to come, let me share a recent conversation with a colleague. We were discussinshare a recent conversation with a colleague. We were discussing the sources o limiting actorsg the sources o limiting actors that we all

that we all ace in business. To prove his point, he cited one ace in business. To prove his point, he cited one o Dr. Deming’s better-known sayings: “85% o o Dr. Deming’s better-known sayings: “85% o problems are caused byproblems are caused by management issues.

management issues.” My ” My colleague was arguing that management decisions, too oten based colleague was arguing that management decisions, too oten based on opinion, partial or on opinion, partial or skewed data, orskewed data, or emotions, are at the heart o our

emotions, are at the heart o our inability to be competitive and protable. Whinability to be competitive and protable. What do you think? Are 85% o at do you think? Are 85% o the problems that you acethe problems that you ace each day caused by aulty decision-making? From my

each day caused by aulty decision-making? From my perspectiveperspective, I , I think that Dr. Deming was an think that Dr. Deming was an optimist. The contribution o sel-inducedoptimist. The contribution o sel-induced limiting actors is much more than 85% -- perhaps 90% or

limiting actors is much more than 85% -- perhaps 90% or more.more. Let me share an example. A

Let me share an example. A ew years ago we evaluated the perormance o a ew years ago we evaluated the perormance o a ood processing plant and ound that their asset utilizationood processing plant and ound that their asset utilization was 27%. They controlled 70% market share, but with only a marginal operating prot. When we sat down to discuss these and other was 27%. They controlled 70% market share, but with only a marginal operating prot. When we sat down to discuss these and other issues, the client could not or would not accept that low utilization was a problem. Once this was

issues, the client could not or would not accept that low utilization was a problem. Once this was overcome, we tried to discuss possibleovercome, we tried to discuss possible solutions that would better utilize their installed capacity and improve

solutions that would better utilize their installed capacity and improve their operating prot. The client was adamant their operating prot. The client was adamant that nothing could bethat nothing could be done. We suggeste

done. We suggested private labeled products as a d private labeled products as a means to increase utilization; exporting to larger markets; means to increase utilization; exporting to larger markets; and consolidating plants toand consolidating plants to match their ootprint to demand. For each solution the client had 101 reasons it would not work.

match their ootprint to demand. For each solution the client had 101 reasons it would not work. It took two years o

It took two years o almost constant education, but the client nally moved away rom their “it cannot be done” attitude. They arealmost constant education, but the client nally moved away rom their “it cannot be done” attitude. They are exporting products, producing private brands or the domestic market and

exporting products, producing private brands or the domestic market and have consolidated plants to eliminate duplication. Thehave consolidated plants to eliminate duplication. The result is a much-improved operating prot and positive growth trend that

result is a much-improved operating prot and positive growth trend that should take them to should take them to the next level.the next level.

“All things are possible – i you are willing to roll up your sleeves and do it.”

i h ere  leer, i ll hre m erv

 he chrcerc cmm  ll hghl ccel

cmpe

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I I had a

I I had a nickel or every time a client has said, “…but you don’t understand, we’re dierent,nickel or every time a client has said, “…but you don’t understand, we’re dierent,” I would be ” I would be a rich man. While it is true thata rich man. While it is true that there are dierences, this is too oten an excuse we use or

there are dierences, this is too oten an excuse we use or not doing what we need to do—acknowledge our shortcomings and admit ournot doing what we need to do—acknowledge our shortcomings and admit our imperections. Then and only then can we

imperections. Then and only then can we overcome limitations and truly achieve our ull overcome limitations and truly achieve our ull potential.potential.

This is especially true when it comes to continuous improvement. I have lost count o the times when I have visited plants that have This is especially true when it comes to continuous improvement. I have lost count o the times when I have visited plants that have embraced or adopted Lean, Six Sigma, TPM or

embraced or adopted Lean, Six Sigma, TPM or one o the other alphabet soup o continuous improvement philosophies only to nd theyone o the other alphabet soup o continuous improvement philosophies only to nd they really have not. In many o

really have not. In many o these plants, the leadershipthese plants, the leadership, implementation team, and sometimes even the associates on the foor know all , implementation team, and sometimes even the associates on the foor know all thethe right words and can parrot all o

right words and can parrot all o the important words. But it quickly becomes clear they do not really understand what the words mean orthe important words. But it quickly becomes clear they do not really understand what the words mean or the real philosophy o continuous improvement.

the real philosophy o continuous improvement.

In a recent visit

In a recent visit to a large to a large discrete manuacturing plant, I heard the V.Pdiscrete manuacturing plant, I heard the V.P. o . o Operations espouse the merits o Lean Operations espouse the merits o Lean and the value o and the value o Kaizen.Kaizen. What he was really taking

What he was really taking about was Kaizen Blitz—short duration, high intensity improvements, not Kaizen—a about was Kaizen Blitz—short duration, high intensity improvements, not Kaizen—a methodical, long-termmethodical, long-term continuous improvement process. Wh

continuous improvement process. When asked, he armed en asked, he armed that their transormation rom almost that their transormation rom almost totally reactive to world-class would betotally reactive to world-class would be accomplished in a ew months and with no other eort than a

accomplished in a ew months and with no other eort than a ew teams implementing Kaizen. The instant gratication o Kaizen Blitz,ew teams implementing Kaizen. The instant gratication o Kaizen Blitz, even though gains are not

even though gains are not sustainable, was his and sustainable, was his and the company’s preerred solution, rather than a the company’s preerred solution, rather than a slower, steady journey to sustainableslower, steady journey to sustainable excellence. How one can expect brute orce

excellence. How one can expect brute orce changes, such as those created by blitz activities, will survive without changing the culturechanges, such as those created by blitz activities, will survive without changing the culture that enable the deciencies in the rst place

that enable the deciencies in the rst place escapes me. Unless and until the enabling culture is escapes me. Unless and until the enabling culture is changed, nothing is sustainable.changed, nothing is sustainable. As in this example, we have become a

As in this example, we have become a culture that is obsessed with instant gratication and short-terculture that is obsessed with instant gratication and short-term ocus. Read any trade magazinem ocus. Read any trade magazine or listen to the

or listen to the multitude o continuous improvement consultancies and you will be multitude o continuous improvement consultancies and you will be bombarded with proven solutions to your bombarded with proven solutions to your problems.problems. Although the solutions vary, most share a common

Although the solutions vary, most share a common theme: the solution is quick, cheap and painless. Some theme: the solution is quick, cheap and painless. Some ocus on maintenance; othersocus on maintenance; others on reliability and still others on

on reliability and still others on production improvement. Maybe it is just me, production improvement. Maybe it is just me, but none o but none o these solutions and their associated gains ringthese solutions and their associated gains ring true.

true.

A statement I hear oten is that maintenance is the sole reason a

A statement I hear oten is that maintenance is the sole reason a company cannot capture and retain market share. No matter how hard company cannot capture and retain market share. No matter how hard II try, the logic behind this escapes me. I

try, the logic behind this escapes me. I one really looks into one really looks into the “maintenance deciencies” that plague most plants, the true cause the “maintenance deciencies” that plague most plants, the true cause is notis not maintenance. Most deciencies, regardles

maintenance. Most deciencies, regardless o s o where they are generated, maniest as where they are generated, maniest as maintenance issues, e.g. breakdowns, unplannedmaintenance issues, e.g. breakdowns, unplanned cost and reduced output. The old s

cost and reduced output. The old s aw “One operator aw “One operator can wreck a machine aster can wreck a machine aster than ten mechanics can repair it” than ten mechanics can repair it” is true. To resolve theseis true. To resolve these “maintenance decienci

“maintenance deciencies” one must es” one must address the sources o the address the sources o the visible symptoms and that means deciencies in production, operations,visible symptoms and that means deciencies in production, operations, engineering

engineering, procurement and other unctions whose , procurement and other unctions whose combined decienciecombined deciencies create them. Anything short o s create them. Anything short o a holistic—a total approach toa holistic—a total approach to continuous improvement must result in partial, less than desired results.

continuous improvement must result in partial, less than desired results. I have learned with

I have learned with absolute certainty that there are no absolute certainty that there are no silver bullets—no quick solutions to the complex issues that must silver bullets—no quick solutions to the complex issues that must be resolved beorebe resolved beore any company can capture and

any company can capture and retain sucient market share and retain sucient market share and margins to assure continuance and protability. Once this simple act ismargins to assure continuance and protability. Once this simple act is accepted, one can begin the process o

accepted, one can begin the process o reengineering with some assurance o success.reengineering with some assurance o success. Where should you start? There can be

Where should you start? There can be only one answer—everywhere, but with production or manuacturing as only one answer—everywhere, but with production or manuacturing as the ocal point. Thethe ocal point. The interdepend

interdependency o plants and ency o plants and corporations orces a holistic approach. Think about how corporations orces a holistic approach. Think about how you would improve your you would improve your production organization.production organization. The best place to start is to eliminate variability in the way work

The best place to start is to eliminate variability in the way work is planned and executed. I one looks at the results o each operating teamis planned and executed. I one looks at the results o each operating team and shit on a day-to-day basis, the level o variability is clear. Next, eliminate the waste and losses by value-stream mapping all o the work and shit on a day-to-day basis, the level o variability is clear. Next, eliminate the waste and losses by value-stream mapping all o the work activities required to eectively produce the requisite output; create value-added standard processes and procedures and then enorce activities required to eectively produce the requisite output; create value-added standard processes and procedures and then enorce them.

them.

Continued on next page

MobLEy’s 2

ndnd

_Law:

“There are no silver bullets; change takes time.”

t

 relve

 relve hee “mece ecece”

hee “mece ecece”

e m

re he rce  he vle mpm  h

me ecece  prc, per, egeerg,

prcreme  her c...

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Continued from previous page

Continued from previous page As you go

As you go through the process, one thing should become clear—the ability to through the process, one thing should become clear—the ability to eectively produce or manuacture depends on the supplyeectively produce or manuacture depends on the supply chain, engineering

chain, engineering, maintenance, human resources, sales—in other w, maintenance, human resources, sales—in other w ords, the entire company. A holistic or totords, the entire company. A holistic or tot al approach is the onlyal approach is the only option that assures changes that eliminate the loss and

option that assures changes that eliminate the loss and waste in today’s environment, precludes recurrence o poor waste in today’s environment, precludes recurrence o poor practices, andpractices, and engrains a culture o continuous improvement.

engrains a culture o continuous improvement. Oh, beore I orget, there is one other small

Oh, beore I orget, there is one other small thing you must do to transorm—enorce policies and standards. When did compliancthing you must do to transorm—enorce policies and standards. When did compliance withe with company policy and adherence to established practices become optional?

company policy and adherence to established practices become optional?

A ew years ago, I

A ew years ago, I was asked to help a mid-western manuacturer o high-end automotive consumer products. In our initial conversation,was asked to help a mid-western manuacturer o high-end automotive consumer products. In our initial conversation, the General Manager laid out

the General Manager laid out the problem—they were losing a little more the problem—they were losing a little more than $2 per than $2 per unit shipped, resulting in a signicant annual loss.unit shipped, resulting in a signicant annual loss. He, and others, believed that a technology problem in their oundry was the reason or high scrap rates and low production rates. What we He, and others, believed that a technology problem in their oundry was the reason or high scrap rates and low production rates. What we ound was quite dierent. While their oundry technology was dated, the real

ound was quite dierent. While their oundry technology was dated, the real reason was simply ailure reason was simply ailure o their operators to o their operators to comply withcomply with standard procedures. Their procedu

standard procedures. Their procedures were near perect; they simply were not being used. As a result, throughput was less than 50% res were near perect; they simply were not being used. As a result, throughput was less than 50% oo capacity—not enough to cover xed costs and their scrap rate in excess o 25%. The truly amazing part o

capacity—not enough to cover xed costs and their scrap rate in excess o 25%. The truly amazing part o this story is that no one on thethis story is that no one on the management team had any idea that this was going on. Why? For the same reason the problem occurred in the rst

management team had any idea that this was going on. Why? For the same reason the problem occurred in the rst place: no one rom theplace: no one rom the management team, including the ront-li

management team, including the ront-line supervisors, were on the foor and no one ne supervisors, were on the foor and no one was looking at the perormance data. Because theywas looking at the perormance data. Because they already had valid standards and

already had valid standards and standard work procedures, solving the problem standard work procedures, solving the problem was straightorward. Get the supervisors back on was straightorward. Get the supervisors back on the foorthe foor and universally enorce the procedures. Within a month, the

and universally enorce the procedures. Within a month, the plant was consistently doubling their previous daily output—and making moreplant was consistently doubling their previous daily output—and making more than $4 per shipped unit.

than $4 per shipped unit. I can hear you now.

I can hear you now. “Y“You just don’t understand. We’re dierent. ou just don’t understand. We’re dierent. We We know what’s going on in our plant, and besides we can’t aordknow what’s going on in our plant, and besides we can’t aord to make the kind o investment you’re talking about. It

to make the kind o investment you’re talking about. It takes too long.takes too long.” I once elt that way ” I once elt that way too, but ater striving or excellence or thesetoo, but ater striving or excellence or these past our plus decades, I

past our plus decades, I encourage you to reconsider your approach. Change takes encourage you to reconsider your approach. Change takes time and cannot be time and cannot be achieved by selective or partialachieved by selective or partial solutions. No matter how hard or how oten

solutions. No matter how hard or how oten you try, there are no silver bullets and no way to shortcut the change process. Approachyou try, there are no silver bullets and no way to shortcut the change process. Approach change with an open mind and patience to see it through. The results are certainly worth the eort.

change with an open mind and patience to see it through. The results are certainly worth the eort.

“There are no silver bullets; change takes time.”

...he l  eecvel prce r mcre epe 

he ppl ch, egeerg, mece, hm rerce,

le— her r, he ere cmp.

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How much time do you spend in your plant and with your

How much time do you spend in your plant and with your direct reports? Ydirect reports? Years ago, we were asked to ears ago, we were asked to lead the transormation o thelead the transormation o the second largest integrated steel mill in the world,

second largest integrated steel mill in the world, all 20,000+ hourly employees and all 20,000+ hourly employees and 13 labor unions. In 13 labor unions. In our initial meeting, the V.Pour initial meeting, the V.P. and. and General Manager, who was also the corporate “xer”

General Manager, who was also the corporate “xer”, asked what had to be , asked what had to be done to transorm this operation rom one that was losingdone to transorm this operation rom one that was losing key customers and hundreds o millions annually to one that could compete in the new global marketplace. At rst, he was stunned by key customers and hundreds o millions annually to one that could compete in the new global marketplace. At rst, he was stunned by our answer, which was simply that he

our answer, which was simply that he needed to change the way he needed to change the way he managed the operation. Ater recovering rom this managed the operation. Ater recovering rom this initial shock, weinitial shock, we discussed what these changes would be.

discussed what these changes would be.

When John was rst assigned to either x or shut down this ailing operation, he dedicated one ull day each week to spending time on When John was rst assigned to either x or shut down this ailing operation, he dedicated one ull day each week to spending time on the plant foor—listening to the workers and

the plant foor—listening to the workers and having open, honest communications that gave both parties an having open, honest communications that gave both parties an understanding o the businessunderstanding o the business and its drivers. In

and its drivers. In this heavily union environment, neither labor nor management trusted the other this heavily union environment, neither labor nor management trusted the other and through this “management by walkingand through this “management by walking around” style, he was able to break down

around” style, he was able to break down some o the barriers andsome o the barriers and open a dialogue that was

open a dialogue that was having positive impact on perormance.having positive impact on perormance. His time on the foor was

His time on the foor was essential or two reasons. First, theessential or two reasons. First, the simple act that John cared enough to spend his time on the plant simple act that John cared enough to spend his time on the plant foor listening and learning about the issues and

foor listening and learning about the issues and problems thatproblems that impacted the workorce’s ability to meet

impacted the workorce’s ability to meet perormance standardsperormance standards had a positive impact on everyone. The key to his success was that had a positive impact on everyone. The key to his success was that he really listened and learned.

he really listened and learned.

Second, the act that he allocated a measurable portion o his busy Second, the act that he allocated a measurable portion o his busy schedule to these regular plant foor visits sent a

schedule to these regular plant foor visits sent a message that themessage that the employees and their input were valued—what they do

employees and their input were valued—what they do has value tohas value to the company and their insights are important. I can remember my the company and their insights are important. I can remember my early mentors and how impressed I was with them when they would ask

early mentors and how impressed I was with them when they would ask me about my work. It me about my work. It really elt good to think they—as busy as theyreally elt good to think they—as busy as they were—took the time to check with me about my contribution to the company. Even ater I learned that this was a planned activity and that were—took the time to check with me about my contribution to the company. Even ater I learned that this was a planned activity and that they kept “tickler les” to remind them to ollow up on key

they kept “tickler les” to remind them to ollow up on key points, my admiration did not diminish.points, my admiration did not diminish. There is another reason that executive managers—especially the most senior—should spend time on the

There is another reason that executive managers—especially the most senior—should spend time on the foor. It is the foor. It is the only way he only way he or sheor she can have a actual understanding o the plant’s operations. One cannot rely on the reporting systems, no matter how good they are, can have a actual understanding o the plant’s operations. One cannot rely on the reporting systems, no matter how good they are, or theor the level o understanding needed to eectively lead and assure

level o understanding needed to eectively lead and assure sustainable competitive perormance levels. The only way to truly sustainable competitive perormance levels. The only way to truly understandunderstand what is or is not happening on the plant foor

what is or is not happening on the plant foor or within your span o control is to or within your span o control is to regularly spend time directly observiregularly spend time directly observing or participating inng or participating in its operations.

its operations. Wheth

Whether we recognize it er we recognize it or not, there is or not, there is a communications ltering system in place in a communications ltering system in place in all plants or all plants or corporations. These lters may becorporations. These lters may be inadvertent or intentional but eith

inadvertent or intentional but either way they distort reality as inormation fows rom the er way they distort reality as inormation fows rom the plant foor to the executive oce as well as romplant foor to the executive oce as well as rom the executive oce to the plant

the executive oce to the plant foor. When inadverfoor. When inadvertent, the ltering is the subconscious interpretation or skewing o tent, the ltering is the subconscious interpretation or skewing o inormation as it isinormation as it is passed up or down the hierarchy o the organization. This is compounded by the inherent desire or job security that leads us to put the passed up or down the hierarchy o the organization. This is compounded by the inherent desire or job security that leads us to put the best ace on any data or

best ace on any data or inormation that may be seen by our superiors.inormation that may be seen by our superiors. For those o you who are

For those o you who are into Lean, this “management by walking around” is called Gemba, which means “the real place” and isinto Lean, this “management by walking around” is called Gemba, which means “the real place” and is appropriate to this discussion in that the plant or actory foor is the most critical part o a

appropriate to this discussion in that the plant or actory foor is the most critical part o a ny operation. Regardless o what you call it,ny operation. Regardless o what you call it, this simple management tool aords company leaders, managers

this simple management tool aords company leaders, managers and supervisors a simple, easy and supervisors a simple, easy means o supporting overall continuousmeans o supporting overall continuous improvement and process standardization while helping to insure alignment o

improvement and process standardization while helping to insure alignment o the eorts o all the eorts o all teams.teams. What happened to John and the world’s

What happened to John and the world’s second largest integrated steel mill? It took time, second largest integrated steel mill? It took time, but the transormation was successul. Within abut the transormation was successul. Within a year, the mill was generating a

year, the mill was generating a substantial operating prot and regaining lost market share. substantial operating prot and regaining lost market share. One key to One key to this success was the active, willingthis success was the active, willing participation and involvement o the mill’s entire workorce—created by a

participation and involvement o the mill’s entire workorce—created by a mutual trust between labor and management driven by mutual trust between labor and management driven by John’sJohn’s weekly time on the

weekly time on the plant foor. Yplant foor. Yes there was es there was much more involved, including a new enterprise inormation management system, standardmuch more involved, including a new enterprise inormation management system, standard work processes and procedures that eliminated waste and

work processes and procedures that eliminated waste and losses, and culture that embraced continuous improvement. As John slosses, and culture that embraced continuous improvement. As John s aid, “Itaid, “It was like pulling an impacted wisdom tooth without Novocain, but it was worth it.”

was like pulling an impacted wisdom tooth without Novocain, but it was worth it.”

I you’re considering spending more time on the plant foor or with your direct reports, I would

I you’re considering spending more time on the plant foor or with your direct reports, I would caution you to do it right. Be opencaution you to do it right. Be open and sincere. Encourage everyone to be open and honest. Really listen to what you hear and always, always respond to questions and sincere. Encourage everyone to be open and honest. Really listen to what you hear and always, always respond to questions and suggestions. I you still need motivation to get out o your oce, remember Mobley’s 3rd Law.

and suggestions. I you still need motivation to get out o your oce, remember Mobley’s 3rd Law.

MobLEy’s 3

RdRd

_Law:

“People do what you inspect, not what you expect.”

the l   rl

er h  r 

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crl   reglrl pe

me recl ervg r

prcpg   per.

(6)

Over much o my career, discussions centeri

Over much o my career, discussions centering on how to change the work culture—viewed to be one o ng on how to change the work culture—viewed to be one o the roots o poor perormance—the roots o poor perormance— have been requent and oten quite heated. It seems everyone has an opinion or avored methodology to get the workorce to adopt new have been requent and oten quite heated. It seems everyone has an opinion or avored methodology to get the workorce to adopt new policies or work practices. These methods vary

policies or work practices. These methods vary depending on the organizational level and background o the depending on the organizational level and background o the individual.individual. Senior executives tend to believe that they can mandate chang

Senior executives tend to believe that they can mandate change. All that is needed is to tell the workorce what e. All that is needed is to tell the workorce what they must do to complythey must do to comply with changes developed solely by a core group

with changes developed solely by a core group o the management team o the management team and then hold the and then hold the workers accountable or success. They pointworkers accountable or success. They point to Hoshin Kanri, a

to Hoshin Kanri, a avored Japanese management concept, which is interpreted as an executive-developed policy deployment process.avored Japanese management concept, which is interpreted as an executive-developed policy deployment process. Hoshin Kanri does establish a

Hoshin Kanri does establish a discipline that helps an organization create and ocus discipline that helps an organization create and ocus on shared goals, eectively communicate these goalson shared goals, eectively communicate these goals to all leaders, involve all

to all leaders, involve all leaders in the planning, and hold leaders in the planning, and hold participants accountable or achieving their part o the plan.participants accountable or achieving their part o the plan. I believe they are

I believe they are interpreting the word “leaders”interpreting the word “leaders”. Leaders occur at . Leaders occur at all levels within the organization, not just all levels within the organization, not just in the raried strata in the raried strata o theo the executive wing. There are two primary

executive wing. There are two primary reasons that actory level leaders—including hourly and salaried employees—must be involved in thereasons that actory level leaders—including hourly and salaried employees—must be involved in the change process. First, only those on the actory foor have a true, practical understanding o actors that limit their ability to be eective and change process. First, only those on the actory foor have a true, practical understanding o actors that limit their ability to be eective and ecient. This practical knowledge o actory-foor limiting actors is inversely proportional to one’s

ecient. This practical knowledge o actory-foor limiting actors is inversely proportional to one’s position on the corporate ladder. As youposition on the corporate ladder. As you climb the corporate ladder, your rst-hand knowledge diminishes until you rely solely on

climb the corporate ladder, your rst-hand knowledge diminishes until you rely solely on reports and communications that oten distort act.reports and communications that oten distort act. Others believe that change is a straightorward, tactical

Others believe that change is a straightorward, tactical exercise. All one must do is make the workorce aware exercise. All one must do is make the workorce aware o theo the change, create a desire to change, have the

change, create a desire to change, have the workorce exhibitworkorce exhibit its ability to make the change and then everything will be better. its ability to make the change and then everything will be better. I you believe their logic, creating awareness is simply a matter I you believe their logic, creating awareness is simply a matter o one-way

o one-way communication. Again, management communicatescommunication. Again, management communicates that change is coming and the

that change is coming and the employee’s role in the change.employee’s role in the change. Sometimes, this communication will include

Sometimes, this communication will include management’smanagement’s reason or the change—in the better attempts they try

reason or the change—in the better attempts they try to couchto couch the reasons in terms the employee can relate to or at

the reasons in terms the employee can relate to or at leastleast understand—in others it is

understand—in others it is just deployment communications.just deployment communications. I you are not too

I you are not too ar removed rom your days on ar removed rom your days on the actorythe actory foor or a true member o

foor or a true member o the workorce, try to remember what it was the workorce, try to remember what it was like to be on the receiving end o these mandated changes. How didlike to be on the receiving end o these mandated changes. How did you like being told that you must change the way to think, the way

you like being told that you must change the way to think, the way your work is to be your work is to be perormed, and how your worth would be measured?perormed, and how your worth would be measured? Couple this with your experience with all

Couple this with your experience with all o the previous changes that invariably led to o the previous changes that invariably led to workorce reductions, expansion o workload and workorce reductions, expansion o workload and aa myriad o other negative impacts on

myriad o other negative impacts on your work lie. your work lie. What do you think—will mandated change really change anything?What do you think—will mandated change really change anything? Over my career, I

Over my career, I have tried or been involved in have tried or been involved in every possible approach o eecting sustainable cultural change. Most o these earlyevery possible approach o eecting sustainable cultural change. Most o these early attempts, patterned ater my interpretation o popular methodology, ailed. While we could create short-term improvement and gain attempts, patterned ater my interpretation o popular methodology, ailed. While we could create short-term improvement and gain thethe appearance o change, the workorce would revert to its old habits as soon as management pressure was removed. As we

appearance o change, the workorce would revert to its old habits as soon as management pressure was removed. As we progressed, weprogressed, we tried everything rom threats to incentives to get

tried everything rom threats to incentives to get the workorce to accept the the workorce to accept the changes that we as management thought necessary to changes that we as management thought necessary to meetmeet business goals. Nothing seemed to gain traction with

business goals. Nothing seemed to gain traction with the workorce.the workorce.

Three epiphanies, one quickly ollowing the other, nally showed the way to

Three epiphanies, one quickly ollowing the other, nally showed the way to successul change:successul change:

Identiy true attributes o change:

Identiy true attributes o change:When I looked back at the changes we had attempted, it became clear that too oten we wereWhen I looked back at the changes we had attempted, it became clear that too oten we were attempting to change the wrong things. We were trying to x

attempting to change the wrong things. We were trying to x systemic or inrastructural problems by orcing cost reductions, eliminationsystemic or inrastructural problems by orcing cost reductions, elimination o overtime and other

o overtime and other cosmetic changes that did little other than alienate the workorce. cosmetic changes that did little other than alienate the workorce. I remember sitting in a I remember sitting in a leadership team meetingleadership team meeting years ago. Around the table sat 21

years ago. Around the table sat 21 vice presidents discuvice presidents discussing a reduction in the hourly workorce. Business had not been good and wessing a reduction in the hourly workorce. Business had not been good and we were alling below our business goals. The obvious solution was to reduce the hourly workorce to compensate—right? At that point in my were alling below our business goals. The obvious solution was to reduce the hourly workorce to compensate—right? At that point in my career, I was responsible or the manuacturing organization and knew we could not meet demand with the reduced workorce that was career, I was responsible or the manuacturing organization and knew we could not meet demand with the reduced workorce that was being suggested. As an alternative, I suggested that three o

being suggested. As an alternative, I suggested that three o us—the vice presidents—resigus—the vice presidents—resign instead o cutting the n instead o cutting the workorce. Eliminatingworkorce. Eliminating three vice presidents would have the same impact on our bottom line and still support our ability to meet customer demand. What do you three vice presidents would have the same impact on our bottom line and still support our ability to meet customer demand. What do you think happened?

think happened?

“Change cannot be mandated; the

“Change cannot be mandated; the workorce must acknowledge the need,

workorce must acknowledge the need,

create the means and embrace the changes.”

Leer ccr  ll level

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eecve g...cr level

leer—clg hrl 

lre emplee—m e

vlve  he chge prce.

(7)

Involve the workorce and natural leaders:

Involve the workorce and natural leaders:My second epiphany was i I cannot get the workorce to My second epiphany was i I cannot get the workorce to accept and adopt management’saccept and adopt management’s view o needed change, let them develop it. Think or one minute. When you have an idea, it is in your view logical and

view o needed change, let them develop it. Think or one minute. When you have an idea, it is in your view logical and totally viable; buttotally viable; but when you hear or

when you hear or read someone else’s idea you read someone else’s idea you can quickly see faws and can quickly see faws and aults that need changing. That’s simply human nature. Why notaults that need changing. That’s simply human nature. Why not leverage this trait and eliminate the resistance by

leverage this trait and eliminate the resistance by letting the workorce develop and create the letting the workorce develop and create the changes needed to eliminate waste andchanges needed to eliminate waste and improve eectiveness. The use o cross-unctional teams comprised o stakeholders in

improve eectiveness. The use o cross-unctional teams comprised o stakeholders in the change and at all the change and at all levels o the organization haslevels o the organization has proven to be highly eective. Leveraging natural work

proven to be highly eective. Leveraging natural work teams and leaders—at all levels o teams and leaders—at all levels o the organization—empowers the change processthe organization—empowers the change process and is

and is essential to sustainability.essential to sustainability.

The workorce encompasses the entire

The workorce encompasses the entire organization:organization:The third epiphany changed my ocus rom downward The third epiphany changed my ocus rom downward to the actory foor. Oneto the actory foor. One reason or these early

reason or these early ailures was that we ailures was that we ignored required changes in the executive, senior and middle level management strata ignored required changes in the executive, senior and middle level management strata o theo the organization. One allacy o management-created change is that we

organization. One allacy o management-created change is that we tend to overlook the tend to overlook the deciencies within our own span o deciencies within our own span o control. It’scontrol. It’s simply too easy to

simply too easy to xate on the xate on the perceived weaknesses in the execution o the production and perceived weaknesses in the execution o the production and maintenance unctions and not see that theymaintenance unctions and not see that they are the result o policies that we created.

are the result o policies that we created.

One thing that I have learned is that change is not easy, but it is not as hard

One thing that I have learned is that change is not easy, but it is not as hard as we too oten make as we too oten make it. Yit. You can ght the workorce and try toou can ght the workorce and try to orce them to adopt your view o

orce them to adopt your view o change or you can lead them through the process o recognizing the need or change, dening how theychange or you can lead them through the process o recognizing the need or change, dening how they can best eect the needed change and nally enable them to succeed. Change can be easy—i you just let it be. Use your workorce. Let can best eect the needed change and nally enable them to succeed. Change can be easy—i you just let it be. Use your workorce. Let them make you a hero.

them make you a hero.

MobLEy’s 4

tHtH

_Law:

“Change cannot be mandated; the

“Change cannot be mandated; the workorce must acknowledge the need,

workorce must acknowledge the need,

create the means and embrace the changes.”

the e  cr-cl em cmpre  kehler 

he chge   ll level  he rgz h prve  e

hghl eecve.

oe llc  mgeme-cree chge  h e e 

verlk he ecece h r  p  crl.

(8)

Last week I attended a workshop on change management—even old dogs can learn new tricks, or at least renew old lessons. One o Last week I attended a workshop on change management—even old dogs can learn new tricks, or at least renew old lessons. One o thethe rst topics discussed was how you

rst topics discussed was how you change the work culture in a change the work culture in a plant or company. As you can plant or company. As you can imagine, the discussion quickly migratedimagine, the discussion quickly migrated to organizational behavior, getting people involved and tipping point. All o the more

to organizational behavior, getting people involved and tipping point. All o the more popular theories were espoused in great detail popular theories were espoused in great detail butbut everyone immediately xated on the mechanics o getting everyone involved in

everyone immediately xated on the mechanics o getting everyone involved in the change process by creating cross-unctional teams,the change process by creating cross-unctional teams, building a change inrastructure comprised o natural leaders and change management proessionals, and a

building a change inrastructure comprised o natural leaders and change management proessionals, and a variety o other methodologiesvariety o other methodologies designed to get as many

designed to get as many people as possible involved in the mechanics o people as possible involved in the mechanics o change management.change management.

As I listened to these discussions, at times quite passionate, my mind—as it tends to do more and more oten lately—wandered o to As I listened to these discussions, at times quite passionate, my mind—as it tends to do more and more oten lately—wandered o to what change really means. Thinking back, I thought about

what change really means. Thinking back, I thought about all o the all o the transormations and their requisite culture changes in which I havetransormations and their requisite culture changes in which I have participated over almost ve decades. Some succeeded and some

participated over almost ve decades. Some succeeded and some ailed. What made the dierence?ailed. What made the dierence?

TTo be eective, change must be o be eective, change must be at the individual level. Each member o at the individual level. Each member o the workorce—no matter how the workorce—no matter how signicant their role—must choosesignicant their role—must choose to change the way they think and behave beore the work culture can change. Change is a very personal thing and all culture change must to change the way they think and behave beore the work culture can change. Change is a very personal thing and all culture change must start with one

start with one individual and continue until all individuals within the culture you are individual and continue until all individuals within the culture you are trying to change have made that trying to change have made that personal decision topersonal decision to change. Impossible? No, it is quite possible. Let me

change. Impossible? No, it is quite possible. Let me give two simple examples.give two simple examples.

First, every major religion began with one individual who had a vision, passion and an absolute commitment to a set

First, every major religion began with one individual who had a vision, passion and an absolute commitment to a set o values and belies.o values and belies. That individual shared this unique vision with others who chose to

That individual shared this unique vision with others who chose to become disciples and then helped others choose to embrace theirbecome disciples and then helped others choose to embrace their shared vision. From this simple beginning, hundreds o millions o

shared vision. From this simple beginning, hundreds o millions o people share the same people share the same vision, passion and commitment to thesevision, passion and commitment to these religions—but in each religion it started with one

religions—but in each religion it started with one individual who made a individual who made a decision—a personal choice—tdecision—a personal choice—to embrace certain values o embrace certain values as a as a wayway o lie.

o lie.

I you want urther proo, look

I you want urther proo, look to Japan, which grew rapidlyto Japan, which grew rapidly rom a devastated country to become one o

rom a devastated country to become one o the world’sthe world’s manuacturing leaders. This remarkable transormation manuacturing leaders. This remarkable transormation beganbegan with a ew

with a ew visionaries, like Dr. Edwards Deming, Philip Crosby,visionaries, like Dr. Edwards Deming, Philip Crosby, and later, James Womack, who were able to

and later, James Womack, who were able to share their visionsshare their visions o eective manuacturing and management with the people o eective manuacturing and management with the people who would become the

who would become the leaders o today’s leading Japaneseleaders o today’s leading Japanese companies. These three men, and a ew others, were able to companies. These three men, and a ew others, were able to help hundreds o thousands share a common vision and strive help hundreds o thousands share a common vision and strive together as a team

together as a team to become successul.to become successul. A more mundane example is a

A more mundane example is a plant transormation that weplant transormation that we led over a decade ago. The plant, an integrated steel mill led over a decade ago. The plant, an integrated steel mill consisting o more than 20,000

consisting o more than 20,000 employees, had a culture that had employees, had a culture that had passed on management responsibilities to successive generationpassed on management responsibilities to successive generationss o amily members. Combine that culture with 13 unions and an almost total

o amily members. Combine that culture with 13 unions and an almost total lack o standard processes and procedures and you havelack o standard processes and procedures and you have a guaranteed ormula or ailure. As you would expect, this plant was losing money—more than $150

a guaranteed ormula or ailure. As you would expect, this plant was losing money—more than $150 million annually—as well as keymillion annually—as well as key customers because o quality and late delivery issues. Even

customers because o quality and late delivery issues. Even the Japanese experts, who spent six the Japanese experts, who spent six months evaluating the plant, thought thismonths evaluating the plant, thought this plant was beyond hope and

plant was beyond hope and should be shut down. In should be shut down. In everyone’s view this was a everyone’s view this was a hopeless cause. Within three years, this hopeless planthopeless cause. Within three years, this hopeless plant was protable, had been certied as a preerred vendor by its major customers and was

was protable, had been certied as a preerred vendor by its major customers and was well on its way to success. What changed?well on its way to success. What changed?

“Change is a personal choice and must be implemented one person at a time.”

t e eecve, chge

m e 

he vl

level. Ech memer  he

r

kr

ce

—

m

e

r h



gc her rle—m

che  chge he 

he hk  ehve ere

he rk clre c chge.

(9)

The simple answer is that 20,000 employees made a personal choice to embrace new ideas, to work together as a

The simple answer is that 20,000 employees made a personal choice to embrace new ideas, to work together as a team to make theteam to make the plant successul. O course it wasn’t

plant successul. O course it wasn’t quite that simple. It was quite that simple. It was imperative that all employees change their thought and action patterns, butimperative that all employees change their thought and action patterns, but we never lost sight o the simple act that each employee had to make a

we never lost sight o the simple act that each employee had to make a personal choice to embrace the changes and to join the teampersonal choice to embrace the changes and to join the team eort to succeed. Starting with a ew select disciples including executiv

eort to succeed. Starting with a ew select disciples including executives and plant foor employees, we were able to help a es and plant foor employees, we were able to help a core groupcore group see the vision, the opportunities and the possibilities that the plant

see the vision, the opportunities and the possibilities that the plant could enjoy. They chose to embrace the vision and pursue the could enjoy. They chose to embrace the vision and pursue the dream.dream. Through them, more and more o the employees were able to embrace the vision until all 20,000

Through them, more and more o the employees were able to embrace the vision until all 20,000 were unied into a team that could not bewere unied into a team that could not be dissuaded. This team reversed the nancial losses and created a

dissuaded. This team reversed the nancial losses and created a plant that anyone could be plant that anyone could be proud o. Todayproud o. Today, more , more than a decade later, thisthan a decade later, this plant is still presenting papers at trade conerences touting their drive or

plant is still presenting papers at trade conerences touting their drive or continuous improvement—tcontinuous improvement—their constant search or perection.heir constant search or perection. My wie o 47 years always includes a scripture or quote as part

My wie o 47 years always includes a scripture or quote as part o her signature block on emails and correspondence. Her most recento her signature block on emails and correspondence. Her most recent quote rings true to this discussion. It is one o Edmund Burke’s better comments, “Nobody made a greater mistake than he w

quote rings true to this discussion. It is one o Edmund Burke’s better comments, “Nobody made a greater mistake than he w ho didho did nothing because he could do only a little.” In the context o change management, think about what Burke is saying. I change is dependent nothing because he could do only a little.” In the context o change management, think about what Burke is saying. I change is dependent on one individual making a choice to do something dierent, then is he right? Is our greatest ailure the ailure to take

on one individual making a choice to do something dierent, then is he right? Is our greatest ailure the ailure to take that rst step towardthat rst step toward change—be

change—because we can cause we can only do so only do so little?little?

To quote one o my heroes—Yoda rom Star Wars—who, when asked, “Can one ray o light change the universe?” responded “It depends To quote one o my heroes—Yoda rom Star Wars—who, when asked, “Can one ray o light change the universe?” responded “It depends on who is holding it.” Each o us can make a dierence. We can change our culture, our society, our world—but rst we must change on who is holding it.” Each o us can make a dierence. We can change our culture, our society, our world—but rst we must change ourselves and be willing to exhibit our

ourselves and be willing to exhibit our passion and commitment to change. Being the prophet o passion and commitment to change. Being the prophet o change can be career limiting—not allchange can be career limiting—not all will view it as a

will view it as a good thing. But once you have made the decision to be a change leader it becomes a straightorward, constant process.good thing. But once you have made the decision to be a change leader it becomes a straightorward, constant process. All you need to do is help a

All you need to do is help a ew o your coworkers or ew o your coworkers or members o your group share the same vision and members o your group share the same vision and passion; or change that youpassion; or change that you eel; they in turn will help others and beore you know it,

eel; they in turn will help others and beore you know it, change will happen. It’s not instant gratication. Change will take time, but withchange will happen. It’s not instant gratication. Change will take time, but with perseverance and commitment all things are possible.

perseverance and commitment all things are possible.

In the beginning o this letter, I started talking about the tools and methodologies o change and I don’t want to leave you with

In the beginning o this letter, I started talking about the tools and methodologies o change and I don’t want to leave you with the wrongthe wrong impression. A process, complete with tools and

impression. A process, complete with tools and guidelines, is essential or eective and sustainable cultural change. I would guidelines, is essential or eective and sustainable cultural change. I would not attemptnot attempt any substantive change without my toolbox

any substantive change without my toolbox. My warning, i it . My warning, i it is a warning, is to never lose is a warning, is to never lose ocus on the simple act that each individualocus on the simple act that each individual within the culture you are

within the culture you are attempting to change must make a attempting to change must make a personal decision to either ignore or personal decision to either ignore or embrace the proposed change orembrace the proposed change or changes. Keep your ocus and change will happen. Become enamored with

changes. Keep your ocus and change will happen. Become enamored with the tools, audits, and pretty graphs the tools, audits, and pretty graphs and you are and you are destineddestined to ail.

to ail.

MobLEy’s 5

tHtH