David Spong
Leading Organizations to Achieve:
Performance Excellence
Inspiring People to Take Actions for Success
David Spong
President, Boeing Aerospace Support (Retired)
1998/2003 Baldrige Recipient
2
Our Quality Journey
1991 – 2000
Boeing
Airlift & Tanker
Programs
1998 Baldrige Winner
2000 to 2004
Boeing
Aerospace
Support
2003 Baldrige
Winner
3
Starting Points
Airlift & Tanker
Programs
1998 Recipient
Organizational
Type
Organizational
Complexity
Starting Point
Crisis
Documented
Processes
Framework
Initiatives
Locations
Reason for
Baldrige
Approach to
Baldrige
4
Manufacturing
Primarily one
program
Chaos
Yes
Aerospace Support
2003 Recipient
Service
Complex:
Bus./Sites/Functions
Stable
Not recognized
No
None
Many
Primarily one
Turnaround
Integrating existing
approaches
Some
Yes
Some
Dispersed – 130+
locations
Improvement
Overall business
model
From Crisis to Success
Lack of
Confidence
Adversarial
Relationships
Quality
Problems
Cost Overruns
Late Deliveries
40 and No More …
Unless We Perform
1992
5
From Crisis to Success
Lack of
Confidence
Adversarial
Relationships
Quality
Problems
Cost Overruns
Late Deliveries
40 and No More …
Unless We Perform
1992
6
National Quality
Award Winners
1998
“The Law of Change”
The Law
If you always do what you have always done you will get what
you have always gotten!
The Corollary
If you want a different outcome, you must change either the
process, the product, or both.
7
Cultural Change
1992
1993
1994
1995
1996
1997
1998
1999
2000
180
150
120
90
60
Days
30
0
-30
-60
“Hold the Aircraft”
-90
-120
-150
-180
P5
P10
P15
P20
P25
P30
P35
Aircraft
8
P40
P45
P50
P55
P60
Aligning the Focus
Tactical Direction
Strategic Direction
Work Group
Individual
(’91)
1000 Unaligned
Projects
9
(’93)
Malcolm Baldrige
Principles
(Summer ’95)
Planned
Journey
Reinvented Relationships with Customers
On-Site
Customer
Oversight
Airlift
& Tanker
External Customer
One Team Committed to Program Excellence
10
Customer Satisfaction Model
Customer Satisfaction
Performance
Excellence
(Quality + Cost + Schedule)
11
Relationship
Excellence
+ Relationship = Satisfaction
Process Management
AN APPROACH TO. . .
1.0 Enterprise Management
Program Core Process Family
• Cover everything we do
• Manage and improve
through a single,
disciplined approach
2.0
3.0
4.0
5.0
6.0
8.0 Support and Services
Process Based Management
1
2
3
4
5
6
Closed Loop
• Empower Owners
12
7.0
Quality
Timeliness
Efficiency
Cycle Time
7
Employees Believe in Quality
Percentage
of Respondents
100
1998 - 88%
1999 - 95%
2000 - 90%
2001 - 93%
Percent of employees selecting one
priority over another
90
80
70
70 70 72
67
68
68 67
65
65 65 64
60
50
40
30
30 30 28
27
36
33 35 35
32 33
35
32
20
10
0
13
73
Quality vs. cost
Quality vs. schedule
Schedule vs. cost
Airlift & Tanker Improvements
700
600
Baldrige Mid-Range Score
600
550
500
500
450
TQMS-IE
Cal Qual
MB
400
400
400 Points!
300
300
200
200
100
0
1992
14
1993
1994
1995
1996
1997
1998
Leadership Required
“Projects are most successful when
top management takes ownership”
– Deming
How Good
Others
Think You
Are
3
2
1
How Good You Think You Are
15
The Journey to a Zealot
1991…
1996…
John McDonnell
CEO
Harry Stonecipher
CEO
Launched
TQMS-IE
“Go For It”
MBNQA
Baldrige Internal Assessment (TQMS-IE)
… Tied to Exec Compensation
… At each Business Unit
16
The Journey to a Zealot
1991…
1996…
John McDonnell
CEO
Harry Stonecipher
CEO
Launched
TQMS-IE
Award Ceremony
“Go For It”
MBNQA
Baldrige Internal Assessment (TQMS-IE)
… Tied to Exec Compensation
… At each Business Unit
17
1998…
And Beyond
Observations
• Baldrige winning organizations have great cultures:
– Collaborative
– Integrated
– Aligned
– Sharing
– Trusting
– Caring
• There are no ”Silver Bullets”
18
18
Accepted a
New Job in
11/2000!
19
Our Quality Journey
1991 – 2000
Boeing
Airlift &
Tanker
Programs
20
1998
Baldrige
Winner
2000 to 2004
Boeing
Aerospace
Support
2003 Baldrige
Winner
The Leader’s Role
Leadership
Management
Set of processes that creates/adapts
organizations to significantly change them
Set of processes used to keep people
and technology running smoothly
Captain
The “Leader”
Uncharted
Waters
Steering
Communic
ations
Engines
21
Navigation
Catering
Entertainm
ent
Leadership Communication
The first time you say something, it’s heard
The second time it’s recognized
And the third time, it’s learned
Relentless Repetition!
William H Rastetter, CEO, Idec Pharmaceuticals Corp.
22
Culture – A Set of Shared Vision/Values/Beliefs/Goals
Integrity
Learning
Shared Value
Filter
Corporate
Citizen
Quality
Stakeholder
Requirements
& Expectations
Diversity
The Organization
Teamwork
Safety
Innovation
Customer
Satisfaction
Sharing &
Supportive
Agility
The Leader establishes the culture to be shared by his/her behavior
23
State of the Inherited Leadership Team
• Prior Leader Autocratic
• Un-empowered
• Dispirited/untrusting
• Mostly Non-believers
• Did not understand my Leadership style
24
I Did All the Usual Stuff!
• Met with each member of the Leadership Team
• Met with the Customers
• Held meetings with the People
• Tried to understand the Business
PLUS
Launched Continuous Improvement!
25
Plus!
• Personal Commitment
• Knowledgeable
• Staffed BE Office with:
•Believers
•Experts
•Consultants
• Lot’s of personal time
• Dealt with non-believers
Consistent & Persistent with Passion
26
Business Excellence Office
AS
Business
Excellence
Debbie Collard
Businesses
Initiatives
Deploymen
t
Sites
Business Excellence Organization
Reporting to the Office of the President
27
Functions
Operating Principles
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
We insist on integrity, first and foremost
We tell it like it is
We communicate openly and candidly in all our dealings
We respect, honor, and trust one another
We work toward consensus
Disagreement is healthy and encouraged, but once a decision is made,
we proactively support it
We have one conversation at a time
Our silence is consent
We focus on issues and ideas rather than titles or personalities
We actively listen and question to understand
We do not attack the messenger
We identify clear objectives and expectations for our meetings
We start on time, observe time limits, and end on time
We praise in public, we coach in private
We have a bias for velocity
Have Fun. . . Enjoy the journey and each other
28
Convert Direct Reports
Spong
SLT
Bus & Site LT’s
All the way to the people who do real work!
29
Definition of a Zealot
A person who believes that using the
Malcolm Baldrige Criteria will drive an
organization to achieve world class
business results…
…and will lead their organization
in its use
30
“Conversion” to Zealots
100
“Sign on”
(10)
80
60
Percent
40
We’re
From
Missouri
Zealots (10)
(commitment)
+5.8
“Show Me”
(compliant)
(5)”
20
“OMDB”
(0)
Bye Bye !(0)
Let’s use our future leaders!
0
Day 1
31
The Journey
Day N
How best to achieve conversion to Zealots
• 2x4’s ?
• Get Trained ?
• Leadership Passion ?
• Quest for Excellence ?
• Start the Journey ?
• Positive Results ?
• Go for an award
• Have a Plan ?
Yes to all of the above, except no 2x4’s and especially
go for an award to get Feedback
32
Employee Involvement (EI)
 Is it a Culture?
 Is it Teams?
 Is it a Belief?
 Is it Belonging?
 Is it a Way of Life?
 Is it a Process?
"It is not a new program, project or process. EI is a cultural
change in the way we treat each other and work together. It
is a journey in which people apply their skills to improve
individual, team and organizational performance
continuously. This leads to employee satisfaction and
improved business results.“
Raj Kanungo
Leadership Drives the
Employee Satisfaction Index
90
80
ESI Percent Positive
78
73
70
71
66
Good Leadership
Results in Okay
Satisfaction
62
60
58
60
52
50
47
Poor Leadership
Results in Low
Satisfaction
40
39
30
1
2
3
4
5
6
7
8
Leadership Effectiveness Deciles
34
Great
Leadership
Results in Top
Quartile
Satisfaction
9
10
Executive Champion Requirements
• Learn & understand the criteria for your assigned element
• Identify needed improvements
• Work with Business Excellence Office to drive improvements
• Communicate throughout the organization
• Champion world-class approaches & lead by example
• Make a personal commitment to the Leadership Team for the
improvement of your element
35
Focused Offsites
• Not a Business Performance Review
• Business Model
• Internal Assessment
• Gaps
• Process to close gaps
• Progress
36
Focused Survey
37
IDS
Aerospace Support
– 58 Questions
–1 Narrative question
– 58 Questions
– 3 Narrative questions
+
– 28 Focused questions
– Results to only the Business,
Function, Department? Level
– Results to the Business, Program,
Function, Site, to the manager level
with 5 or more D/R
– Results not actionable
– Results actionable
Summary for 17 key issues
Exec summaries for each Bus,
Site, & Function
Aerospace Support Improvements
200
2001
BASC
Aerospace Support Baldrige Win
Oklahoma City
BASC
2002
Ft Walton Beach
So Cal
St L
Wichita
Oklahoma City
300
Philadelphia
400
0
100
38
Mesa
500
BASC
Baldrige Mid-Range Score
600
AS Baldrige-based
Assessment Score
State/Local/Baldrigebased Score by
Major Site
Award Recipient
BAL
700
400 Points!
2003
We Did It Again!
39
Boeing Aerospace Support’s
Revenue Performance
Started Baldrige
2000
2001
PLAN
40
ACTUALS
2002
AVG GROWTH
2003
Boeing Aerospace Support’s
Earnings Performance
Started Baldrige
2000
2001
PLAN
41
ACTUALS
2002
2003
Boeing Aerospace Support’s
Employees are more Motivated
66
62
Started Baldrige
ESI
EI
50%
58
54
50
42
1999
2000
2001
2002
2003
Summary
43
Summary
Don’t study it long – Don’t change it! – Just Do it!
44
CC40170002.ppt
Where Do You Go from
Here ?
The Making of a World-Class Organization
E. David Spong and Debbie J. Collard
Using a unique blend of stories, tips, charts, and tables that can be adapted to
any organization, this book shares the stories, wisdom, and “silver bullets”
gained by two divisions of the Boeing Corporation as they won the Malcolm
Baldrige Quality Award. The “silver bullets” are the kernels of management
wisdom that set this book apart and provide the simple insights that anyone can
adopt. This book uses a systems perspective to provide solutions that will inspire
leaders to champion such approaches, while also providing tried and true details
and “how-to” applications to the in-house practitioners and consultants.
Whether you are looking for tools and techniques to make your organization
and processes more effective, or you are starting from scratch, this book
provides you with a set of proven approaches to achieving excellence. The
insights into excellence and the Baldrige journey that Spong and Collard have
mastered have allowed their organizations to celebrate with great processes,
loyal customers, engaged employees, high quality products and services, and
significant profitability.
45
QUESTIONS?
46
Thank You for
Listening