The Ohio State University Center for Operational Excellence is celebrating its quarter-century milestone, which was formally recognized at a Sept. 15 seminar, where featured keynotes included LeanCor CEO Robert Martichenko and Goodyear executive Billy Taylor.
Check out the resources below to review recaps, video and photos from the event …
‘We have to connect the business’– LeanCor Founder and CEO Robert Martichenko draws from his more than 20 years in lean supply chain leadership to share insights on how businesses need to speak a “new language” to truly deliver customer value in an era of unprecedented disruption.
For COE members: Access a full-length and 15-minute highlight recording of Martichenko’s keynote in COE’s members-only Digital Content Archive (authenticated user account required).
‘Engaged, empowered people are your greatest asset’– Billy Taylor, who oversees all North American manufacturing for Goodyear Tire & Rubber Co., delivers a dynamic keynote address focusing on his experience as a plant manager, where he discovered the value of engaging employees and giving them a sense of ownership over corporate strategy. Check out a 15-minute highlight video of Taylor’s keynote below …
For COE members: In addition to the 15-minute preview above, access a full-length recording of Taylor’s keynote in COE’s members-only Digital Content Archive (authenticated user account required).
‘Our members lead the way’– COE Co-Director Peter Ward reflects on 25 years of the center partnering with the operational excellence business community and offers insights on what’s ahead. Ward, who has been with COE in some capacity since its founding in 1992, says the center quickly learned “our best ideas came when we listened.”
A quarter-century celebration – Get your photo with Brutus Buckeye during the celebratory lunch at COE’s September seminar? Check out an album of photos from Brutus’ visit and download your photo via our Flickr page. To download a photo: Click on the image and, on the page that appears, select the downward-facing arrow to the bottom-right of the photo.
The following is a lightly edited version of remarks COE Co-Director Peter Ward delivered at COE’s 25th anniversary celebration on Sept. 15, 2017.
We spend a lot of time as organizations preparing ourselves for the future, and that’s a smart move given the change we see all around us. But on the occasion of the Center for Operational Excellence’s 25th anniversary, let’s take a moment and look back.
In 1992, the then-new dean of today’s Fisher College of Business, Joe Alutto, visited the Department of Management Sciences with a compliment (of sorts) – and a challenge. The department, he said, was making strides in academic research and students loved the classes, but a disconnect existed with local industry. Can that change?
Our journey started there, with the founding of the Center for Excellence in Manufacturing Management, which the university recognized in the summer of 1992.
After our first four members signed on — Central States Can, Lennox Industries, Copeland Corp. and Ross Labs — we quickly realized a very important lesson that’s become central to everything we’ve done in the quarter-century since: Our best ideas came when we listened, rather than when we talked. Hearing our members’ needs has directed COE’s path from the beginning and that continues. Our members’ issues are our issues, and our members lead the way.
That same momentum from our members helped us understand in the center’s first years that operational excellence wasn’t solely for manufacturing. Leadership, problem solving and process improvement are key to all industries – and that’s what led us to change our name to the Center for Operational Excellence little more than a decade after being founded. As we welcomed into the fold companies from the banking, insurance and healthcare industries, our members once again helped set our course and, ultimately, bring meaning to our work.
In 25 years, we’ve racked up some impressive numbers: five summits; 95 quarterly meetings; 300 COE-sponsored research papers; 500 workshops, seminars and tours; 700 student internships secured through COE member companies; and more than 20,000 admissions to our events.
But the true measure of the impact our members have helped make, for me, is in the moments that don’t have a number: The manager who lost his job in tough economic times and leveraged his center relationships to bring new vitality to his career; the MBA student who struggled to define herself until she tapped into the world of operational excellence; or the executive struggling with a seemingly insurmountable problem who turned to center colleagues for a solution. Our journey is teeming with these stories.
The next 25 …
After 25 years, a big question looms: Where to from here? The pace of change increases every day, and it’s by no means a stretch to assume the business world will evolve more in the next five years than it has in the last 25. One thing will hold constant, though: We’ll still need problem solvers, we’ll still need leaders, and we’ll still need people like our members, who work at the intersection of problem solving and leadership.
As we begin our next 25-year stretch, it’s the ideas and challenges of our members that will determine our future. Thanks for making us a part of your journey – I can’t wait to see what’s next …
Peter Ward Co-Director, COE Senior Associate Dean, Fisher College of Business at The Ohio State University
The Center for Operational Excellence’s first event of 2017 is shaping up to be one of its biggest.
The Friday, Feb. 10 keynote featuring strategy expert Trish Gorman is nearly 80 percent full with weeks to go. The 1 – 2:30 p.m. session, open to employees of COE member companies and invited guests, is preceded by a noon networking lunch and is followed by a book-signing with Gorman and an optional debrief session.
Gorman’s keynote, “From Strategic Thinking to Strategic Leadership,” explores how strategic thinking is essential to competitive success – but it’s not enough. Strategic leadership, Gorman assets, is needed to energize yourself and others to convert ideas and analysis into coordinated and timely action. Especially in dynamic, uncertain environments, it’s leadership powered by analysis that ensures firms can respond with agility and resilience to challenges in real time.
Gorman is a renowned speaker and consultant currently working as an innovation expert for the Ohio State Center for Innovation and Entrepreneurship at Fisher College of Business. She is the founder of an online assessment firm, KEASkills, and serves as an advisor and subject matter expert for early stage investors and leaders of growth-focused organizations. Gorman also co-wrote What I Didn’t Learn in Business School: How Strategy Works in the Real World, which she’ll be selling and signing following her talk. Five registrants at the event also will win a copy of the book in a drawing that will take place the day before.
Click here to register for this event, which is expected to reach full capacity by the end of January.
As a researcher, Prof. Aravind Chandrasekaran doesn’t hang his hat in one particular industry.
In the 12 years he’s been contributing to our knowledge on issues such as innovation, knowledge creation and health-care delivery, he’s walked the floor in manufacturing plants, chased high-tech electronics as they move through the R&D pipeline, and scrutinized discharge instructions for kidney transplant recipients.
At the heart of his research is the question of handoffs: How can we move information more efficiently? How can we bring products to market more rapidly? How can we discharge patients and ensure they won’t be readmitted days later?
Prof. Chandrasekaran is bringing key insights from his research across this variety of industries to the Center for Operational Excellence’s Dec. 2 seminar, where managers can learn how they can collaborate across departments – even across their supply chains – and avoid common roadblocks such as employee burnout, intellectual property leaks, and scope creep. His 10:30 a.m. presentation is followed by a 1 p.m. keynote from Pete Buca, a top executive at manufacturer Parker Hannifin who’s giving an inside look at the company’s remarkable collaboration with Cleveland Clinic.
COE spoke to Prof. Chandrasekaran about his research and what attendees can expect at his Dec. 2 keynote.
COE: This summer, you led a three-part “Innovation Summer” series for COE. How does your upcoming keynote build on that?
AC: We focused this summer specifically on product and process innovation by looking at companies such as 3M and Johnson & Johnson. This keynote is meant for the R&D folks that attended this summer but a much broader audience, as well. I’ll be sharing keys to the “perfect handoff” by looking at examples in manufacturing, health care and IT services, not just R&D. There’s not a single COE member that wouldn’t benefit from it.
COE: Let’s talk about health care, specifically what non-health care companies can learn from your extensive research in that field.
AC: A lot of discussion in recent years has centered on what health care can learn from other industries, particularly manufacturing. I think the reverse is true, too: In health care, you have specialists – physicians, nurses – who are extremely skilled at what they do. At the same time, you have a complex ecosystem with tons of variation across patients, even caregivers. Those two components are present in just about any industry. As a result, many of the tools and processes I’ve worked with caregivers to apply in health care can be easily transferred to other settings.
COE: Speaking of handoffs, what are some of the biggest mistakes companies make when collaborating across departments or the supply chain?
AC: I think a really common one is that departments or companies take for granted that the other party has a clear understanding of the process. This is at the root of so many problems I’ve seen in R&D and health care. There’s also a misconception that the rules and requirements established at the beginning of a process don’t change. They can, sometimes in a way that can take us by surprise. I’ll be sharing insights in my keynote that can help managers address both of these common missteps.
COE: What’s causing more of these surprises?
AC: The increasingly global nature of business plays a not insignificant role here. More than ever, companies are dealing with language and cultural barriers, regulations and political risks – and the stakes for success have never been higher.
To register for Prof. Chandrasekaran’s keynote and the entire Dec. 2 seminar, click here.
Being a top hospital in the country, Cleveland Clinic is home to countless great ideas poised to transform into life-altering, even life-saving, medical advancements.
Getting those ideas out of the heads of its top-ranked physicians and onto the market has been the focus of a remarkable collaboration between the hospital and one of its neighbors in the Cleveland economic scene: Manufacturer Parker Hannifin Corp.
This partnership, which began quietly nearly a decade ago and was formally announced in 2014, is the focus of the afternoon keynote at the Center for Operational Excellence’s Dec. 2 seminar. At the event, Parker Hannifin VP Pete Buca will share details on the Cleveland Clinic collaboration, which has become a bustling pipeline of medical device ideas the company is working to bring to life using its own product development process, dubbed “Winovation.”
Recently ranked the No. 2 hospital in the country, Cleveland Clinic sees more than 5 million patient visits a year and employs more than 3,000 caregivers. That same U.S. News & World Report ranking called it the No. 1 hospital in the country for cardiology and heart surgery and one of the top five for diabetes and endocrinology, gastroenterology, orthopedics and pulmonology, among others.
Parker Hannifin, meanwhile, is an $11 billion-a-year maker of motion and control technologies that spent about $360 million on research and development in its latest fiscal year. It’s a supplier to more than 400,000 customers that span just about every significant manufacturing, transportation and processing industry in the economy: Food and beverage, life sciences, renewable energy, agriculture and aerospace, just to name a few.
Parker and Cleveland Clinic began collaborating several years ago in an effort to connect the engineering and product development prowess of the former with the critical insights into health-care challenges at the latter. To translate these two capabilities into action, Parker employees sat in on surgeries and communicated with surgeons, leaders told Crain’s Cleveland Business. Interactions like these spawned the 100-plus ideas that initially populated the partnership’s pipeline.
One product seeking to eventually make its way to the market is what’s called the Cleveland Multiport Catheter (CMC), a bold attempt to advance the treatment of brain cancers. Gliomas – a type of tumor in the glue-like supportive tissue of the brain – are resistant to radiation and other common therapies, largely because of the natural barrier in the body that keeps circulating blood out of the brain.
Surgical catheters that pump cancer drugs directly into the brain have been used on a trial basis for the past few decades, according to an October 2015 article by a CMC inventor, but have key limitations. Two in particular, according to the article, must be used in a special operating room, and left in only for several hours. The CMC, which began development in 2009, can be implanted in any neurological OR then be left in place for several days, ultimately delivering more cancer drugs, wrote inventor Dr. Michael Vogelbaum.
Cleveland Clinic partnered with Parker Hannifin to manufacture the CMC and treated its first patient with the device about two years ago. A March update revealed seven patients have undergone treatment with the CMC, which now has an Investigational New Drug application formally on file with the U.S. Food and Drug Administration. Dr. Vogelbaum said in a CMC update video that the device ultimately could help treat other neurological conditions such as Alzheimer’s Disease, Parkinson’s Disease and epilepsy.
At COE’s Dec. 2 seminar, Buca will share other exciting developments with Cleveland Clinic and detail how other organizations can learn from their collaborative innovation efforts. The featured keynote at the seminar’s morning session is Fisher College of Business Prof. Aravind Chandrasekaran, an award-winning researcher who will be sharing keys to collaboration.
Even as an icon in leadership circles who’s built a thriving, multibillion-dollar retail business, L Brands Founder, Chairman and CEO Les Wexner stays true to his roots – and is quick to acknowledge them.
“But for The Ohio State University, I wouldn’t have been able to go to college and get the basic education that helped me so significantly in my career,” he said, opening his featured keynote at the Center for Operational Excellence’s September seminar. “Every time I come back on campus, I smile to myself.”
Wexner came back on campus to headline a leadership seminar that attracted nearly 300 attendees, making it the largest in COE’s nearly 25-year history. Here’s a look back at some of his best insights over a wide-ranging discussion that covered his personal philosophy on leadership – what he called “a lifetime executive education program you have to master for yourself” – along with his outlook on the retail business and his verdict on crucial past decisions he’s made:
On the value of leadership education: “I firmly believe leadership is not just an important thing – it’s the most important thing, and it’s undervalued in high schools, colleges and universities. If there’s a single thread of teaching and learning that I try to influence at our university, and influence other educators to think about, it’s the importance of leadership as a subject.”
On what makes a great leader: “Leaders come in all shapes and sizes with virtually every characteristic and kind of personality, but they all have the ability to influence, and influence is the foundation of leadership – whether it’s by pushing from behind, coalescing the middle or being an insurgent, General Patton-type. I always default to the front; I like to churn things up and say, ‘We can take that hill, let’s charge.’”
On the virtue of adaptability: “Leaders that continue to grow are optimistic but they’re professionally curious about society and they think about adapting, trying new things, and understanding things they can’t so they can be continually relevant in their own lives. … In my thinking, the only way to test my adaptability is to do something different. It’s very important mid-career not only to have a good understand of yourself, but to think about how to exercise that curiosity muscle between your ears and be adaptive.”
On why brick-and-mortar retail is here to stay: “We’re pack animals. People like to be with people; that’s part of the human condition. It’s what they buy that changes, and one of the things that’s interesting to us is how the Internet has changed lifestyles, communication, and the consumer. … Still, we find that shopping has to be fun and interesting, and we’ve been experimenting with that for several years.”
On his game-changing decisions to spin off brands such as Abercrombie + Fitch, The Limited and Express: “I believe in life cycles. I look at those cycles and say, ‘OK, when’s the next wave coming, and is that a good or a bad thing for us? Those were very tough decisions I thought over for a long time. I gathered in my own mind the information and had to suck up some courage to do it. It turned out to be the right thing to do and it did take our business to a better place.”
On the inevitable challenge, and opportunity, of risk: “Leaders have to have a pretty good instrument on risk. We remember generals that won wars, not the ones that got killed doing foolish things. There’s that notion of knowing yourself, and leadership is about change, taking people to places that haven’t imagined. That means risk. … Leaders have a vision that’s a little different than the one that’s popular at the moment, and in that you have to assess failure. If I didn’t screw up some things, that means I didn’t push hard enough.”
On why aiming high matters: “I try to encourage our enterprise to really dream. If you don’t have a dream, you can’t have a dream come true. Still, you have to focus on ambition, in part, and separately think about the resources you need, and the risks. … The world’s changing while we’re here and it’s just going to get faster in the future. Are we stimulated by that? I am.”
On how he stays busy – and grounded: “What I worry about is running out of work – it would just be a terminal thing. I like the idea of work, and I have a substantive to-do list that’s more than I can finish. … I made a decision in my early 40s that I could make more money but I couldn’t make more time. Nobody can make more time. If I was effective and efficient, I could do more with the limited time I have.”
On why he enjoys leading: “People ask me when I’m going to retire, and I say, ‘When I’m unhappy.’ I like the people I work with, the challenges, the changes. Leaders have to be happy with themselves. If they’re not, they can’t lead themselves, let alone others.”
On the ultimate test of a leader: “The simplest measure of leadership is this: Did you actually take people to a better place? Are we better off today than we were yesterday, whether that’s in business, family or community? It’s not about how many people followed you blindly. Did you actually improve things in hindsight?”
Whether it’s at a $70 billion-a-year consumer products conglomerate or a fledgling business in the heart of the Buckeye State, innovation is the fuel that keeps organizations moving and evolving.
The Center for Operational Excellence is continuing its three-part “Innovation Summer” series in July and August with a look at two very different organizations of vastly different scope and how best practices in product development are helping them grow.
On Wednesday, July 13, COE welcomes Meri Stevens (pictured, left), the vice president of supply chain strategy and deployment at Johnson & Johnson for Innovation Summer, Part 2: Innovation Beyond Your Four Walls. Building on a June 16 keynote from Mark Anderson of 3M Co. on R&D collaboration inside the company, Stevens will share how the maker of Tylenol, Listerine, and countless other products is collaborating upstream and downstream to fuel radical, breakthrough innovation.
For Johnson & Johnson, even the very concepts of “upstream” and “downstream” are changing in an era of unprecedented consumer involvement as products such as 3-D printers extend value creation beyond the company’s borders. Stevens will share how this shift has brought about major cultural change for J&J’s thousands of supply chain employees as they work to “move the needle” for the Fortune 50 business.
Stevens’ presentation will be followed by a trio of TED Talk-like presentations from Fisher College of Business researchers, led by “Innovation Summer” organizer Prof. Aravind Chandrasekaran, on the latest insights into collaborative innovation.
Click here to register for this 8:30 a.m. to noon event at Ohio State’s Fawcett Center, exclusively for employees of COE member companies. This session is recommended for those interested in either innovation or supply chain management.
“Innovation Summer” concludes Thursday, Aug. 18, by exploring principles of the “lean startup” with a presentation from Buckeye football greats Bobby Carpenter (pictured, far left) and Anthony Schlegel (pictured, immediate left). Both Carpenter and Schlegel, Fisher College of Business MBA graduates who played for the Buckeyes and went on to be drafted in the NFL, founded The Difference USA LLC, which makes and markets a portable striking machine. Schlegel, who invented The Difference, will share along with Carpenter his journey to bring the product to life and the lasting lessons the team has learned about the process of innovation.
Registration for this event is set to open Wednesday, July 13.
The two featured speakers at the Center for Operational Excellence’s upcoming quarterly seminar might be from two wildly different industries, but they’re both bringing stories that illustrate a stark truth about the world today: The rules of the game are changing, and standing still isn’t an option.
In the greater Columbus area, AEP and Abbott each rank among its 50 largest employers, with a combined local payroll of nearly 6,000, according to research from Columbus Business First.
While both companies have well-deserved reputations as leaders in their respective industries, they also share common ground in facing serious external headwinds in recent years .
For AEP, it’s national and state-level energy policies that can have far-reaching implications for the company’s short- and long-term growth strategies and generation profile. Just in the last half-decade, AEP has seen its home state – where its AEP Ohio subsidiary lights up nearly 1.5 million customers – decisively shift toward electricity deregulation, leaving behind the days of a more predictable fixed-rate structure.
As the purveyor of products ranging from Similac to Ensure, Abbott Nutrition not only is at the mercy of changing customer tastes but shifting demographics – namely longer-living seniors. At the turn of the new century, people ages 65 and older in the U.S. represented about one in eight Americans. The U.S. Department of Health and Human Services estimates they’ll represent one in five just 15 years from now.
On a day-to-day level, these changes to the business environment have spurred each company to action in different ways. For AEP, this has taken the form of a still-young but promising lean transformation that grew out of the company’s generation facilities, closely linked to traditional “shop floor” applications of its principles, and has steadily made its way to more “invisible” processes across the organization, namely information technology. Abbott, meanwhile, has mounted an organizational transformation of its people and processes within its research and development function as it fills its innovation pipeline and drives growth.
Don’t miss the chance to hear from McCullough and Roberts on what they’ve learned along the way and what the future holds for their organizations.
At a glance
Date: Friday, Feb. 13, 2015
Time: 10:30 a.m. to 2:30 p.m. (networking lunch included)
Location: The Blackwell, 2110 Tuttle Park Place, Columbus, OH
The Center for Operational Excellence is closing out its year of programming with behind-the-hood looks at two of the biggest brands on the planet – and a fitting conclusion to the day.
Joining COE for its Friday, Dec. 5, seminar is Kevin Nolan, VP of technology for GE Appliances. An ever-consolidating appliance market has turned up competitive pressure for GE and its competitors, who face the critical challenge of aligning products with market demand.
GE Appliances, the century-old subsidiary of conglomerate giant General Electric Co., has ramped up a lean product development process in recent years aimed at increasing organizational effectiveness and operational efficiency in response to this climate. Nolan, GE Appliances’ VP of Technology, will share how the $8 billion-a-year company is reinventing the way it brings products to the market and working to align its thousands of employees around a renewed mission to debut more consumer-centric offerings.
Joining COE in the afternoon is Becky Bach, global director of continuous improvement for brewer Anheuser-Busch InBev, which emerged through a merger with American icon A-B in 2008. The company over the past decade his faced the challenge of developing a sustainable operational excellence capability. Bach in this session will share the company’s journey to get its process excellence teams speaking the same language, delivering proven results and churning through an increasingly large pipeline of projects.
A-B InBev’s story reinforces the fact that the tools of continuous improvement aren’t one-size-fits-all proposition – ultimately, what’s important is charting a path that works for your organization.
Following Bach’s presentation, COE members are invited to a tasting session and networking hour featuring A-B InBev’s stable of beers.
Date: Friday, Dec. 5, 2014
Time: 10:30 a.m. to 4 p.m. (10:30 a.m.: GE Appliances; Noon: Networking lunch; 1 p.m.: A-B InBev; 2:30 p.m. to 4: Tasting / networking hour)
Location: Longaberger House (tasting to take place in adjacent Fawcett Center)
Steering an organization toward operational excellence comes with internal and external headwinds, and next month’s quarterly COE seminar is tackling two critical ones with the help of its featured presenters.
Kicking off COE’s Sept. 26 seminar at 10:30 a.m. is Rubik Babakanian, senior vice president and chief procurement officer at hard drive manufacturer Western Digital Corp. Babakanian’s company stands today as a $15 billion organization with its stock price on a steady upswing, but the road to be there hasn’t been without risk. Like many manufacturers with heavy operations in Asia, Western Digital suffered severe disruptions and temporary shutdowns during the devastating 2011 Japanese tsunami and Thai floods. The events in a nine-month period rocked the global supply chain and forced Western Digital to examine its risk mitigation and management practices with renewed vigor.
Babakanian, a 30-year industry veteran, will outline the methods and tools the company has put in place to better understand its supply chain, track ever-shifting risk factors, and be prepared for the next “100-year event.” Western Digital’s story highlights the universal business challenge of investing in risk mitigation, one that’s never complete – but truly pays off when crisis comes.
At 1 p.m., COE welcomes to the stage Walt Miller, who serves as director of operational excellence at engine maker Cummins. Miller is in charge of driving and coaching a culture of empowerment and continuous learning at the company. He’ll share in this session his approach not only to coaching and developing leaders of the future, but in transforming longtime leaders deeply ingrained in a “command and control” culture.”
Miller, author of will share these principles through the lens of a Cummins case involving the turnaround of a plant that started out with a lagging on-time delivery rate costing millions of dollars in missed monthly sales and a rigid, top-down leadership model. It’s a story that shows a lean organization can be built and sustained anywhere with people, a process and a customer – and that behind every good leader is a great team and a great production and management system. The challenge is how you build it and, most importantly, sustain it.
Babakanian and Miller are just part of a full-day event that includes a networking lunch and a special event at 2;30 p.m., after Miller’s presentation . Co-hosted with Fisher’s Office of Career Management and the Operations and Logistics Management Association, the third-annual Supply Chain Career Connection is a chance to network informally with Fisher’s great graduate students interested in pursuing careers in the supply chain arena. Unlike a rigidly structured job fair, industry attendees are encouraged to mingle with students, share their career path, and share experiences with their current employer.
COE also will announce the featured keynote speakers for its April 2015 summit at the seminar, immediately prior to the 2:30 p.m. networking event.
Seating and space for all of these events are limited, so register now to reserve your spot in-person or to watch a live webcast of the morning and afternoon sessions!
At a glance:
Date: Friday, Sept. 26
Location: Ballroom, The Blackwell, 2110 Tuttle Park Place, Columbus, OH
9 a.m.: Board meeting (COE board members only)
10:30 a.m.: Morning Session – Western Digital (COE members only)
Noon: Networking lunch (COE members only)
1 p.m.: Afternoon Session – Cummins (COE members and guests welcome)
2:30 p.m.: Supply Chain Career Connection networking event (COE members and guests welcome)