The magic of self-directed work teams : a case study in courage and culture change

120 Pages·2006·1.141 MB·English

by  Paul C. Palmes

Palmes_Front-F.qxd 1/24/06 1:43 PM Page 1
The Magic
of Self-Directed
Work Teams
A Case Study in
Courage and Culture Change
Palmes_Front-F.qxd 1/24/06 1:43 PM Page 2
Also available from ASQ Quality Press:
Process Driven Comprehensive Auditing: ANew Way to
Conduct ISO 9001:2000 Internal Audits
Paul C. Palmes
The Team Effectiveness Survey Workbook
Robert W. Bauer and Sandra S. Bauer
Everyday Excellence: Creating a Better Workplace through
Attitude, Action, and Appreciation
Clive Shearer
Virtual Teams Guidebook for Managers
Herb Dreo, Pat Kunkel, and Thomas Mitchell
The Quality Toolbox, Second Edition
Nancy R. Tague
Quality Makes Money: How to Involve Every Person on the
Payroll in a Complete Quality Process (CQP)
Pat Townsend and Joan Gebhardt
Actionable Performance Measurement: AKey to Success
Marvin T. Howell
The Certified Manager of Quality/Organizational Excellence
Handbook: Third Edition
Russell T. Westcott, editor
The Path to Profitable Measures: 10 Steps to Feedback
That Fuels Performance
Mark W. Morgan
Business Performance through Lean Six Sigma: Linking the
Knowledge Worker, the Twelve Pillars, and Baldrige
James T. Schutta
To request a complimentary catalog of ASQ Quality Press publications,
call 800-248-1946, or visit our Web site at http://qualitypress.asq.org.
Palmes_Front-F.qxd 1/24/06 1:43 PM Page 3
The Magic
of Self-Directed
Work Teams
A Case Study in
Courage and Culture Change
Paul C. Palmes
ASQQuality Press
Milwaukee, Wisconsin
Palmes_Front-F.qxd 1/24/06 1:43 PM Page 4
American Society for Quality, Quality Press, Milwaukee, WI 53203
© 2006 by ASQ
All rights reserved. Published 2006.
Printed in the United States of America.
12 11 10 09 08 07 06 5 4 3 2 1
Library of Congress Cataloging-in-Publication Data
Palmes, Paul C., 1948-
The magic of self-directed work teams : a case study in courage and culture
change / Paul C. Palmes.
p. cm.
Includes bibliographical references and index.
ISBN-13: 978-0-87389-676-4
1. Self-directed work teams. 2. Total quality control. 3. Organizational change.
4. Corporate culture. 5. Northern Pipe Products Inc.--Case studies. I. Title.
HD66.P335 2006
658.4'022--dc22 2005035907
ISBN-13: 978-0-87389-676-4
ISBN: 0-87389-676-9
No part of this book may be reproduced in any form or by any means,
electronic, mechanical, photocopying, recording, or otherwise, without the
prior written permission of the publisher.
Publisher: William A. Tony
Acquisitions Editor: Annemieke Hytinen
Project Editor: Paul O’Mara
Production Administrator: Randall Benson
ASQMission: The American Society for Quality advances individual,
organizational, and community excellence worldwide through learning,
quality improvement, and knowledge exchange.
Attention Bookstores, Wholesalers, Schools, and Corporations: ASQQuality
Press books, videotapes, audiotapes, and software are available at quantity
discounts with bulk purchases for business, educational, or instructional use.
For information, please contact ASQQuality Press at 800-248-1946, or write
to ASQ Quality Press, P.O. Box 3005, Milwaukee, WI 53201-3005.
To place orders or to request a free copy of the ASQQuality Press Publications
Catalog, including ASQ membership information, call 800-248-1946. Visit our
Web site at www.asq.org or http://qualitypress.asq.org.
Printed on acid-free paper
Palmes_Front-F.qxd 1/24/06 1:43 PM Page 5
Contents
List of Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
Preface: “It’s Always the Same…Or Is It?” . . . . . . . . . . . . . . . . . . . . . xi
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xvii
Organization Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix
Part I: The Old Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chapter 1: Welcome to Northern Pipe . . . . . . . . . . . . . . . . . . . 3
Chapter 2: Wrong Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Chapter 3: The Failure of Half Measures . . . . . . . . . . . . . . . . . 27
Part II: Out of the Darkness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Chapter 4: The A-Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Chapter 5: In Their Own Words . . . . . . . . . . . . . . . . . . . . . . . . 49
Part III: ANew Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Chapter 6: There is No Plan B . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Chapter 7: Servant-Leaders . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Chapter 8: Return on Investment . . . . . . . . . . . . . . . . . . . . . . . 83
Chapter 9: The Climb to the Top . . . . . . . . . . . . . . . . . . . . . . . . 89
Appendix: Quality Council Charter . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105
v
Palmes_Front-F.qxd 1/24/06 1:43 PM Page 6
Figures
Figure 1.1 The Three-Tier System. . . . . . . . . . . . . . . . . . . . . . . 5
Figure 1.2 The Critical Path. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Figure 1.3 Worker Free Time. . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Figure 1.4 The Four-Tier System. . . . . . . . . . . . . . . . . . . . . . . . 10
Figure 2.1 Commitment and Change over Time. . . . . . . . . . 14
Figure 2.2 Letting Go . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Figure 3.1 Changing the Future . . . . . . . . . . . . . . . . . . . . . . . . 28
Figure 4.1 Necessity of Values, Vision, and Mission. . . . . . . 39
Figure 4.2 Lowest Hanging Fruit. . . . . . . . . . . . . . . . . . . . . . . 41
Figure 4.3 Letting Go . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Figure 7.1 The Process of Watering a Plant. . . . . . . . . . . . . . . 79
Figure 8.1 2000 Cost of (poor) Quality
Percentage Breakdown . . . . . . . . . . . . . . . . . . . . . . 84
Figure 8.2 2004 Cost of (poor) Quality
Percentage Breakdown . . . . . . . . . . . . . . . . . . . . . . 85
Figure 8.3 Cost of (poor) Quality as a
Percentage of Pound of Resin. . . . . . . . . . . . . . . . . 85
Figure 8.4 Conversion Efficiency . . . . . . . . . . . . . . . . . . . . . . . 86
Figure 8.5 Annual Efficiency Savings . . . . . . . . . . . . . . . . . . . 86
Figure 8.6 Pounds per Work Hour. . . . . . . . . . . . . . . . . . . . . . 87
vi
Palmes_Front-F.qxd 1/24/06 1:43 PM Page 7
Foreword
Feeling alive came naturally when we were kids—childhood is
a time when we live a life of learning and adventure as we
explore and master our worlds. We venture out bravely not
knowing the rules, adapt as we go, and have fun living out our
fantasies of being brave heroes and heroines who do good for others.
Somewhere along the way, conformity and compliance become the
rules—about the time we go to school, I imagine. From then on, most
of us sacrifice much of our courage and authenticity as we try to fit
in to be accepted by others in order to “succeed.”
As a college student at the University of Minnesota in the late
60s, I found part of that special energy in the love of study and
learning. I majored in sociology and psychology, and my school work
was my play. As a Secret Service agent who chased counterfeiters in
Chicago and protected presidents, vice presidents, and foreign
dignitaries around the world, I found more of the aliveness as I lived
a compelling mission and was a member of a great team. As a
recovering alcoholic for more than 30 years, I found power in the
12 Steps of Alcoholics Anonymous—a spiritual guide perfect for
leaders and followers alike in today’s chaotic world. I learned that
there are no quick fixes in life and that deep spiritual principles can
guide our lives better than rule books. In nine management positions
over 18 years at the Star Tribunenewspaper in Minneapolis, I found
the strength of conviction, the power of truth, and the courage
required to live a value-driven life in a dysfunctional corporate world
where “inauthenticity” remains the first rule of survival and where
ethics are often an inconvenience. I learned to stand alone when
necessary. In my last leadership position, I led a 4500-employee
business unit through transformational change (a fundamental shift
of values, culture, and operating practices). When I left the corporate
world in 1994, the CEO of the company said my leadership had
vii
Palmes_Front-F.qxd 1/24/06 1:43 PM Page 8
viii Foreword
changed the organization forever. I don’t know about that, but I was
certainly changed forever.
Now, with more than a decade of consulting experience, I realize
more than ever how difficult it is to lead change and how invested
many remain in ways of doing things that no longer bring forth the
results we want. Always on the lookout for what is genuine, I listened
to a group from Northern Pipe Products of Fargo, North Dakota as they
spoke at an ethics luncheon sponsored by The Center for Ethical
Leadership at Concordia College in Moorhead, Minnesota. They spoke
of their success in using new tools like self-managed work teams, open-
book management, and continuous learning, as well as the various tools
of the quality movement. Paul, the quality guy, was high energy and
exuded enthusiasm. Wayne, the president of the company, was humble,
soft-spoken, and easy to be around. Their colleague, Kristin, was being
prepared by them to lead in the future.
Afew months later, I participated in a book discussion group led by
Paul, Wayne, and Kristin. At the end, Wayne invited me to visit the
company. We all met in the conference room with project leader Ken
Doggett. We talked with high energy for two hours, and they gave me
a tour of their plant. I thought, “These people are for real.” They are in
the midst of a special experience: It is evident in the way they talk, what
they talk about, their appreciation for the difficulty of true and
sustainable change, and the unwavering nature of their vision. They
have a grace and compassion about them, possessed by people in
pursuit of noble goals. They exude the quiet pride of true adventurers.
They have found their life’s work.
In the late 90s, the leaders of change at Northern Pipe Products
realized that the linear, mechanical process and quality tools of a
manufacturing plant were not the whole picture; they were embedded
in a living and dynamic system of high energy filled with creative
potential. Most of what is important in life is found in the grays that the
black-and-white “machine” model ignores. At Northern Pipe, the meta-
phor of the organization as a machine was replaced by the organization
as a dynamic system with a lot of machines in it.
The leaders at Northern Pipe Products still lead, but differently.
Instead of telling people what to do, they ask them questions and
provide them with information. They give employees time to be in
relationship together so the wisdom embedded in the system can
emerge. They give people freedom to make decisions and take action
about the work they do, while still holding them accountable. They
teach others how to do things for themselves and require them to do so.
Palmes_Front-F.qxd 1/24/06 1:43 PM Page 9
Foreword ix
They listen instead of talking (well, Wayne listens; Paul loves to talk).
Most of all, they model the change they want to see in others.
The changes in employees at Northern Pipe were immediate and
obvious. Those who had been among the walking dead for years came
alive and made important new contributions. Leaders recognized
unnoticed talent in people. People took new initiative, and teams
performed great feats. The organization’s performance improved in
dramatic and unpredictable ways. Great employees now stick around
instead of quitting after hours or days on the job.
The courageous rebels and artists at Northern Pipe Products are at
the vanguard of organizational evolution. They rebel against the old
rules and create new forms to capitalize on human potential. But they
aren’t perfect. They know they will make mistakes as they march toward
their vision. They proceed with the confidence that they can learn and
adapt along the way. When they make a mistake, they say, “We are sorry.
Let’s fix it.” And then they move on with greater mutual trust.
As you read Northern Pipe’s story and learn from its journey, keep
in mind that you cannot copy what they did. You must take your own
journey; your personal and organizational reality is uniquely yours. You
can, however, learn about the process of change and many of the
experiences you can expect.
Why would anyone want to do this difficult and risky work?
Because we want to be truly human, we want meaning in our lives, and
we want a sustainable and safe world for all of our children. Venture out
bravely, make new rules, adapt as you go, and have fun living out your
fantasies of being heroes and heroines doing good for others. Should
you fail in a material sense, in a few years, no one will remember the
disappointment and at least the time spent will have been fulfilling. But
should you lack the courage to live your life’s adventure, you will regret
your cowardice for all of eternity. Which legacy do you want to leave?
Tom Heuerman, Ph.D.
aMoreNaturalWay.com
Palmes_Front-F.qxd 1/24/06 1:43 PM Page 11
Preface
IT’S ALWAYS THE SAME
Eight men arrive at 11:45 to start their workday. They will be relieved
12 hours later by another group of eight men to round out a 24-hour day
of continuous PVC pipe production. Quarter to noon or fifteen minutes
to midnight, it makes no difference. Invariably, someone will be late, call
in sick or decide—either consciously or unconsciously—to self terminate
employment by simply not showing up for work. Tensions mount
throughout the crew as one or two normally reliable workers—people
with experience and capable of running a line on their own—are
uncharacteristically late. Each worker knows that if he doesn’t show up
soon, the night is sure to be that much harder on everyone.
As the minutes pass, the supervisor looks through performance
data of each line, from time to time talking to the outgoing supervisor
and taking an occasional reading or two. It’s all part of getting adjusted.
He’s thinking mostly about the potential “no-shows” and how he’s
going to operate the plant without them. The pipe doesn’t care who’s
working the line. It just keeps coming in a steady flow, as regular as
clockwork. Too bad the same isn’t true of the workers he needs to
manage the process during the next 12 hours. It’s always the same.
And where is that kid that started two weeks ago like a house of
fire? Nothing got in his way, and the rest of the crew was starting to
think he just might become the next regular member. He caught on fast
and had a way about him that made you feel like he was actually
enjoying the work. He’s not here yet and hasn’t called in. That’s not
good, not good at all.
Jack’s here, but that’s about it. Probably drunk or stoned. He’s
hiding it well enough, but it’s just his style to get a little high before he
drives into the parking lot. He’s in no shape to run Line 2, that’s for sure!
That small diameter needs watching, and it moves fast enough so that if
xi