Transcript Slide 1

People-Centric Leadership:
Sustainable Lean Implementation
Bob Chapman
Chairman and CEO
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.
You are here to enrich the
world, and you impoverish
yourself if you forget the
errand.”
- Woodrow Wilson
The Power of People-Centric Leadership
Business is the economic engine of our
society and has the opportunity to
impact our culture!
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.
Why We Embrace Lean
 Our Guiding Principles of Leadership are
in concert with Lean philosophies
 By embracing Lean we can accelerate
the process of bringing our Leadership
principles to the organization
 Through our focus on people, we
unlock the true potential of Lean
philosophies
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.
Fiscal Year
FY '08b
$1,200
FY '07
$1,000
FY '06
$800
FY '05
$425
FY '04
FY '03
$600
FY '02
FY '01
FY '00
FY '99
FY '98
$400
FY '97
FY '96
FY '95
$95
FY '94
FY '93
$44
FY '92
FY '91
FY '90
$200
FY '89
FY '88
FY '87
$ Millions
The Foundation of Our L3 Journey
$1,059
$941
$772
$520
$323
$248
$132
$0
The Foundation of Our L3 Journey
Share Price Trend
$80
$70.14
$55.15
$60
$50
$40
$25.09
$10
$32.05
Se
p07
Se
p06
Se
p05
Se
p04
Se
p03
Se
p02
$0
Se
p01
$14.82
Se
p00
$20
$50.11
$21.08
$17.67
Se
p99
$30
$36.08
$32.19
Se
p98
$ / Share
$70
The Power of People-Centric Leadership
The potential of Lean has been
suboptimized by the focus on waste
elimination.
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
Creating and Sustaining a Lean Culture

People-Centric Leadership

The Importance of Vision

Recognition creates Fulfillment
People-Centric Leadership
The primary focus of leadership is
creating an inspirational environment
for people to embrace, implement, and
live Lean concepts
Leadership Journey
People-Centric Leadership
People-Centric Leadership begins with our vision:
“We measure success by the way
we touch the lives of people.”
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 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
PURPOSE - PROCESS - PEOPLE
TO
PEOPLE - PURPOSE - PROCESS
The Importance of Vision
The experience of establishing our
principled focus on safety
demonstrated the true significance of
the power of a vision
Leadership Journey
The Importance of 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
 When we began to focus on the principle of
Safety
Covenant
Safetysafely,
Covenant
our team
members
going home
the
Implemented
Sustained
by-product
was ……
Workers Comp Costs
BW vs. Industry Avg
$200
Industry
$200
Avg
$150
$150
$100
BW Avg
$100
$50
$50
$0
2002
2003
2004
$0
2007
Recognition creates Fulfillment
True leaders sustain lean transformation
through consistent, positive
communication
Leadership Journey
Recognition creates Fulfillment
 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.
 People fundamentally want to know that what
they do matters while being respected,
challenged and recognized for their roles.
Recognition creates Fulfillment
“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
 Other by-products included 25% reduction in
area and 35% increase in throughput
Recognition creates Fulfillment
 In our culture, it is always important to ask:
How does this make you feel?
 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!
Recognition creates Fulfillment
 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.
Myron
Dan
 Dan proudly shared with his family and friends
his leadership role in the L3 Journey.
Recognition creates Fulfillment
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.”
“It created in me a sense
of HOPE for the future!”
The Power of People-Centric Leadership
 We have achieved significant milestones while
implementing the L3 Leadership Model

Organic Growth accelerated to 16% in 2007

Value Growth- shareholder returns reached 27% in
Fiscal Year 2007 and 23% compounded since 1987

PCMC, our most rapid division in lean
implementation, improved performance by 24% in
Fiscal Year 2007
The Power of People-Centric Leadership
 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
 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 …
the head to a vision
the heart through inspiration
the hands to continuous
improvement
The results are ... extraordinary levels of trust,
FULFILLMENT and performance.
People-Centric Leadership
Learn more about our Transformation in our
Breakout Session
Craig Compton
Ken Coppens
Scott Johnson
Larry Pierquet
Dick Ryan
Brian Wellinghoff