Lean Connections

I’ve been on the waiting list to attend the TED conference (subtitled: Ideas worth spreading“) for a while now and unfortunately I’m still pretty far down the totem pole.  So in the meantime I’ve had to make do with reading TED presentation transcripts and checking out their videos and podcasts.  This one struck me as timely and relevant to my work and to all the manic discussions now taking place in both the public and private sectors regarding executive compensation.

So, is money the ultimate job motivator? Here is the link to an awesome video of Dan Pink speaking at this year’s TED conference on exactly this issue.  Turns out that it depends highly on the kind of work that needs doing. And it looks to me like we might just want to revisit some of our basic asssumptions about how we pay people and the kind of performance we get in return.  Let’s do some out-of-the-box lean thinking on this one. What do you think?  Adam Zak

A critical principle underlying Lean (Toyota Production System and derivatives) is respect for the individual employee. How does this manifest itself? 

Well, the CEOs of at least a few Lean companies tell me that they measure the degree to which people in their organizations are truly engaged, both in the company itself and with the work they perform.  A new friend of mine tells me he just wants the people in his company to be happy.  And this happiness thing must be working because Zappos.com  debuted in 2009 on Fortune Magazine’s annual “100 Best Companies to Work For” list at number 23.  A pretty good coming out, eh?

I met Tony Hsieh last month at the Human Capital Institute Global Summit in Scottsdale where we had a chance to talk privately before and after his keynote presentation. Learning from his past “failed” experience (if you can call building a start-up and selling it to Microsoft after 24 months for $265 million a failure), Tony vowed that he would really focus on creating a culture of respect, engagement and empowerment (happiness?) when he joined and began to grow Zappos.com.

Take a look at the 10 core values which formally define the Zappos corporate culture.  And no, Tony and Alfred (college pizza entrepreneur and Zappos co-conspirator) didn’t sit around in a smoke-filled back room thinking these up by themselves. Every employee at Zappos was invited to participate in the process.

1) Deliver WOW Through Service
2) Embrace and Drive Change
3) Create Fun and A Little Weirdness
4) Be Adventurous, Creative, and Open-Minded
5) Pursue Growth and Learning
6) Build Open and Honest Relationships With Communication
7) Build a Positive Team and Family Spirit
Do More With Less
9) Be Passionate and Determined
10) Be Humble

I invite your comparison with the General Motors statement of values taken from GM’s March 10, 2009 corporate and social responsibility report. Notice any differences?

I saw Tony speak again in March at this year’s South by South West (SXSW), the film and music conference which takes place every spring in Austin, TX. Unlike at HCI (to my knowledge), this presentation was preserved on film and is available for your viewing pleasure. I think it pretty much mirrors Tony’s talk at HCI; the same key points are all there.  Take a look and see if you don’t think that Zappos.com might not be a serious contender (apologies to Amazon.com) for top Lean company in the e-commerce marketplace. Comments welcome here and at http://twitter.com/LeanThinker.

Thanks for reading.  Adam Zak

“There is a better way for everything. Find it.”

Thomas Alva Edison

Turbulent times provide ample opportunities for success, if we approach things with the right frame of mind.

by Adam Zak 

In my role as an executive recruiter specializing in helping companies with Lean transformation, I’ve been spending a lot of my time lately speaking with people all over the world who are wrestling with complex decisions. I thought I’d share some of my observations with you, and in turn, hope that you will share your thoughts with me. 

Everywhere we turn, there’s advice heralding “How to manage in a crisis,” or “New rules for surviving the crunch.” Just the other day I heard a discussion on PBS involving business writers trying to agree on a title for what the economy is going through. And there was no consensus (imagine that, from business writers). 

Crisis Breeds Opportunity 

Craig Barrett, recently retired CEO of Intel told Newsweek readers, “There is a general rule in business life: market share is won or lost during transitions. You cannot save your way out of a recession, you can only invest your way out.” No one is denying that cutting costs is essential to surviving 2009, but we Lean disciples have always practiced a different philosophical approach. As we look for ways to eliminate waste and improve productivity, we are always focused on getting better. In early February Muhtar Kent, Coca-Cola’s CEO told the Wall Street Journal “I’ve been through this movie in smaller versions a number of times in the past…times like these are not an excuse to sit back and ride out the storm.” And this week, at a global sustainability conference in Chicago, I spoke with Rick Frazier, Coke’s VP Supply Chain, who told me they were leveraging their Lean & Green efforts even more dramatically during this time of uncertainty. 

“A recession creates winners and losers just like a boom,” observed Mauro F. Guillen, a professor of international management at the University of Pennsylvania’s Wharton School in BusinessWeek. Let’s chose to be among the winners.  read more »