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
Billy Taylor wrapped up a three-year stint running Goodyear’s manufacturing plant in Lawton, Oklahoma, with more than a few reasons to be proud.
Under his leadership, safety improved, processes streamlined, and projects racked up millions of dollars in savings. The turnaround job was enough to win the coveted Shingo Prize Silver Medallion for Operational Excellence, what’s been dubbed the “Nobel Prize for operations.”
It was, Taylor thought, his ticket to world headquarters.
The powers that be had other things in mind, dispatching him from one challenge to his next: A plant in Fayetteville, N.C., where demand for tires was outstripping the production pace by nearly 20 percent. In Taylor’s first two weeks walking the floor as plant director, he made it his mission to “seek to understand before I sought to change.”
The diagnosis: “I had great people but they didn’t understand what winning was,” Taylor said.
‘Most leaders struggle with letting go’
The story of the successful Fayetteville turnaround was just the next step in a journey that eventually led Taylor to where he is today, overseeing all North America manufacturing for the iconic, $15 billion-a-year brand and Center for Operational Excellence member. Taylor shared insights from his decades driving transformational change during his keynote address at COE’s 25th anniversary celebration in September, where nearly 200 industry leaders gathered to ring in the center’s quarter-century milestone.
Taylor’s insights on leadership are rooted in a passion for engaging people, a core element of transformational change that’s become the centerpiece of his frequent speaking engagements.
“Great leaders respect their people,” he said. “If you make people visible, they will make you valuable.”
Reflecting on the Oklahoma and North Carolina plant turnarounds, Taylor said the crucial next step after defining winning was in giving his front-line employees a sense of ownership in executing on the plant’s broader strategy. Though essential, it’s not always easy for managers, he said.
“Most leaders struggle with letting go,” Taylor said. “People are not your greatest asset. Engaged, empowered people who own your strategy are your greatest asset.”
By putting that into action, Taylor said, he ultimately oversaw a transformation in Fayetteville that resulted in a 14 percent bump in tire production with a 4 percent drop in hours worked – “no investment, no additional equipment, just ownership.”
Sustaining this culture of continuous improvement, Taylor said, means building a regular cadence around recognizing people as they execute on strategy and “celebrating the process” that’s driving gains. And it’s something he says he still does as one of the highest-ranking leaders in the company.
“Now that I run North America, it’s still simple. I still show up to celebrate the process, and I never miss the opportunity to share best practices.”
When Robert Martichenko isn’t running his company, LeanCor Supply Chain Group, he’s probably thinking about lean. And when he’s thinking about lean, he’s probably writing about it, too.
While his passion for storytelling might be a source of productivity and relaxation, Martichenko also says it’s a key leadership capability that’s too often overlook or underdeveloped.
“As leaders, we have to work harder to tell stories,” he told a crowd of nearly 200 at the Center for Operational Excellence’s 25th anniversary celebration. “Anybody can put 10 bullet points on a slide and build 50 slides. What’s the story? Why are we doing this? What’s important? We have to become closer to the narrative.”
‘We are a business, we are a system’
Martichenko kicked off COE’s fall seminar and quarter-century celebration with a compelling narrative of his own: Where he sees the future of lean thinking and lean management in a business world changing by the minute – and leaving some destruction in its wake.
“Fundamentally, we’re going to have to do something differently,” Martichenko said. “At this point, what’s happening on the outside is happening faster than what’s happening on the inside.”
Martichenko’s insights for how companies can leverage lean concepts to survive and thrive in a disruption-rich world are rooted in his personal journey as a business leader. He began his career in the transportation and warehouse industries, where he identified a need to integrate lean principles and techniques across the entire value stream. He founded LeanCor 12 years ago to meet that need and has grown the business into a leader in advancing the world’s supply chains. Just two years ago, Martichenko was honored with the Council of Supply Chain Management Professionals’ Distinguished Service Award, the industry’s highest honor.
A supply chain-based “ecosystem” perspective is what Martichenko sees as a foundation for survival and growth today.
“The next frontier … is not about technology, or about apps – this is about core processes and functions and saying, ‘We are a business, we are a system, and as a system we need to manage it together,’” he said. “Do you really want to fail instead of getting three executives together and saying, ‘Can you please start collaborating?’”
What’s preventing leaders from the four core business processes — strategy, product life-cycle management, sales and marketing, supply chain operations — from doing this? Martichenko says it’s often a bias around our area of the business that skews our perspective and limits our ability to make the best decisions for the broader ecosystem.
“If you’re willing to step outside your safety zone, it will be amazing what you see,” he said.
Creating a culture with greater visibility and better alignment, Martichenko said, ultimately will generate the kinds of feedback systems that can enable the agility and flexibility businesses need today.
“All the technology we need for the supply chain to go from the supplier to the end customer is there,” he said. “What we don’t have is an equal amount of momentum from what actually happened back to the people in the business.”
Robert Martichenko was a featured keynote at COE’s fall seminar along with Goodyear executive Billy Taylor, who stressed the importance of people-inclusion processes in transformational change.
A 15-minute recap and full-length recording for each session are available in the Digital Content Archive on COE’s members-only website (authenticated member account required).
(Keynote Billy Taylor delivering a keynote address at an event in Kansas last year. Photo courtesy Topeka Capital-Journal)
As the Center for Operational Excellence rings in its quarter-century milestone next month, the keynotes taking the stage are bringing nearly a half-century of transformational leadership experience.
The center’s fall seminar and official 25th anniversary celebration is coming up on Friday, Sept. 15, with limited seating still available for in-person attendance. Presenting and livestreaming will be two renowned process excellence leaders: Opening up the day at 10:30 a.m. is Robert Martichenko, CEO of LeanCor Supply Chain Group and an award-winning business leader and author. Goodyear Tire & Rubber Co. executive Billy Taylor takes the stage at 1 p.m. with his insights on “people-driven operational excellence,” which he’s presented to wide acclaim at conferences around the world.
Both keynotes bookend a networking lunch and official 25th anniversary celebration, featuring a tailgate-themed meal and special appearance by Brutus Buckeye, who will be posing for photos with attendees.
While both featured keynote speakers have traveled different paths along their more than 20 years in leadership, they both bring a passion for process excellence that radiates in their dynamic presentations.
Martichenko began his career in the transportation and warehouse industries, where he identified a need to integrate lean principles and techniques across the entire value stream. He founded LeanCor in 2005 to meet that need and has grown the business into a leader in in advancing the world’s supply chains. A decade into his run at the helm of LeanCor, Martichenko was honored with the Council of Supply Chain Management Professionals’ Distinguished Service Award, the industry’s highest honor.
In his keynote, “Lessons in Lean, Lessons in Leadership,” Martichenko will share insights from his more than 20-year career of building cultures of continuous improvement, blending personal and professional experiences.
Taylor, a high-energy conference headliner, calls himself an “evangelist” for people-inclusion processes in organizational transformations. He spent years steering remarkable turnarounds at Goodyear plants before stepping up as director of commercial manufacturing, North America, in 2012. Taylor in 2015 took a senior role overseeing all North America manufacturing for the iconic tire brand.
In his keynote, “People-Driven Operational Excellence,” Taylor traces his journey from a fledgling plant manager to a top executive, outlining the philosophy at the heart of his drive as a leader: Operational excellence starts with empowering people and driving sustainable results through a bottom-up approach.
The pair of keynotes are part of COE’s anniversary celebration for a reason, said Executive Director Peg Pennington.
“The kind of leadership that can make the case for change, make it happen and then sustain it in the long term takes passion, compassion and a drive for continuous learning,” Pennington said. “Robert and Billy are that leader — they’re great storytellers, too — and I’m thrilled they’re joining us as we celebrate a major milestone for our center.”
COE formed in 1992 as the Center for Excellence in Manufacturing Management with four founding members, including current members Abbott Nutrition and Emerson Climate Technologies. One name change and 25 years later, COE is a network of 40 member companies pursuing process excellence by connecting with each other, with top business leaders and with faculty and student resources at Fisher.
Christian Blanco joins Fisher as an assistant professor of operations management after receiving his PhD from the UCLA Anderson School of Management. Blanco’s research is centered on helping firms develop sustainable and safe supply chains, addressing a gap he says he sees in available resources.
“Many firms are now responding to climate change-related risks, but the tools how to effectively manage these risks remain limited,” Blanco said.
Before joining the PhD program at UCLA, Blanco was part of the Renewable and Appropriate Energy Lab at UC Berkeley. He collaborated with a team of scientists in developing a model called “SWITCH” that identifies the least-cost combination of energy technologies that will provide low-carbon electricity in 11 western states.
Erin McKie comes to Fisher as an assistant professor of management science from the PhD program at the University of South Carolina. McKie’s research is focused on sustainable operations, closed-loop supply chains and environmental regulations.
McKie’s work has been presented at various practitioner and industry conferences, including the Decision Sciences, Institute for Operations Research and the Management Sciences (INFORMS), and the Production and Operations Management Society (POMS) annual meetings.
Before returning to academia, McKie worked as a management consultant for Unum Group in the areas of operations, business systems, and strategy development.
Hyunwoo Park has joined Fisher as an assistant professor in management sciences from the postdoctoral fellowship program at Georgia Tech’s Tennenbaum Institute. He holds a PhD in industrial engineering from Georgia Tech.
Park’s research interests include business and data analytics, supply network management, technology and innovation management, and digital platforms. His research has been published in a range of scholarly research publications — among them, Decision Sciences, Journal of the American Medical Informatics Association and Research Policy — while just this year he was a finalist for top awards from the Academy of Management and INFORMS.
The new professors are joining a department ranked among the best in the country for students and research. It’s No. 1-ranked worldwide by the Journal of Operations Management, while it makes the top 10 in a broader set of four major operations management journals ranked by the University of Texas-Dallas. A number of Management Sciences faculty members serve as associate directors for COE, helping connect members leverage their relevant research to solve real-world business challenges.
The Center for Operational Excellence is teaming up this October with a leading voice in lean thinking for a three-day round of workshops hosted in Columbus and offered at a discount to center members.
How can we make the most of lean principles in a non-manufacturing, office environment? COE Associate Director Rick Guba and partner MoreSteam.com guide attendees through a virtual office workflow simulation that offers tools and insights on bringing visibility to largely “invisible” office processes. Key tools include value-stream mapping and metrics, error-proofing and standardized work. The session is recommended for process improvement leaders in service/office environments.
Learn to hunt down the underlying causes of systemic problems in your organization — not just symptoms — in this workshop, run by COE Executive Director Peg Pennington. Participants will learn the basics of root cause analysis and engage in hands-on activities, mapping out incidents based on personal experiences and high-profile real-life events. Critically, this session connects all learnings to the next step in the process: Developing countermeasures to ensure the problem doesn’t happen again.
Moving from the value-stream map to the implementation of countermeasures requires data, but problem solvers often find themselves asking two key questions: When do I need data, and how much of it do I need? Attendees in this workshop, led by Pennington, assume the role of consultants in turning around a fictional pizza shop. Digging into data from “Pete’s Pizza,” participants analyze and interpret data on the production and delivery process on lead time, quality and cost. Ultimately, participants develop a set of recommendations for the client based on the analysis. Beyond sharpening problem-solving skills, this session leverages Excel-based activities such as pivot tables, graphs and descriptive statistics.
Each of the full-day sessions offered across the three-day span, including the three above, costs $800 and includes materials, breakfast, lunch and snacks. Two-day sessions cost $1,600. By selecting more than one full-day workshop or a two-day workshop, you are automatically entitled to a discount of $100 per day (maximum $300). If you are only attending a single one-day workshop, you may use discount code “OSUCOE” to unlock a $100 discount for that session.
If you and your team are interested in any of the sessions being offered in October, sign up soon as space is limited.
Nearly three-quarters of a century into its existence, Safelite Group has reason to act like a market leader – it is one.
The ubiquitous Columbus-based glass repair and replacement services company has a presence in all 50 states, with the capability to serve about 97 percent of U.S. drivers. Even 70 years after its founding, it’s in growth and acquisition mode.
That doesn’t mean, however, that Safelite isn’t keeping an eye out for disruptors waiting in the wings to turn the business on its ear.
“We’re looking over our shoulder,” said Bruce Millard, the company’s vice president of digital and customer innovation. “We’re asking, ‘Who has the velocity to potentially cause us problems?’”
In his kickoff keynote, Jeremy Aston of tech communication giant Cisco shared how much — and how little — has changed in how companies are viewing and preparing for the threat of digital disruption. Cisco’s Global Center for Digital Business Transformation in a 2015 survey of nearly 1,000 executives found 15 percent said digital disruption was already occurring in their respective industries. At the same time, a scant one in 250 of those surveyed said digital trends would have a transformative impact on their industry. Fast-forward to a new survey round this year and the shift is staggering: Half of those surveyed said disruption was ongoing, while nearly one in three foresaw a transformative effect.
“Today, we’re under pressure to transform and perform,” said Aston, senior director of the Go to Market and Offer Monetization Office at Cisco.
One statistic that changed little in the two-year span hints at a gap Cisco’s research has found between companies’ awareness and action. In 2015, a quarter of those surveyed said they were “actively responding” to digital disruption. That number rose to just 31 percent this year.
“That is a dangerous game to play,” Aston said.
While the media/entertainment trades and Cisco’s own technology products and services niche are easily most vulnerable to disruption, few – if any – parts of the economy are immune to companies born in today’s digital-first world. Speaker Mark Kvamme, a former Ohio economic development official and partner at venture capital investment firm Drive Capital, shared a dynamic portrait of “born digital” companies in Drive’s investment portfolio. One of them, Columbus-based startup CrossChx, has launched an artificial intelligence-enabled tool for the health-care industry that synthesizes and automates high-volume, repetitive tasks — prior authorizations, appointment reminders — outside the scope of patient care. On the analytics front, Columbus-based FactGem — run by Megan Kvamme — is helping companies translate hordes of data from far-flung sources into actionable intelligence.
All these innovations, Kvamme said, point to an unavoidable truth: “The amount of change we’re going to see in the next five to 10 years is going to spin everybody’s heads.”
A world of opportunity, however, also means a world of risk. Professor Dennis Hirsch, who runs the Program on Data and Governance at Ohio State’s Moritz College of Law, closed out the session with a look at the tricky terrain of data analytics in technology, which already has destroyed some players (student data repository InBloom) and led to serious brand damage for others (Uber).
“Big data is a crystal ball,” Hirsch said, “and that means it can be used for good — and for bad.”
As companies move forward, Hirsch said, it’ll be incumbent upon them to establish processes and guiding values that protect customers and treat them fairly. Technology and its innovative uses for data, in fact, are outrunning the law itself.
“The law hasn’t caught up, and to some extent it never will,” Hirsch said. “We need to be asking, ‘What does it mean to be responsible beyond just compliance?’”
A key tool companies can use as they make decisions on these issues, and the broader world of digital transformation, is a decidedly non-technological notion at heart: process. From a legal and ethical perspective, that means establishing them on the front end to mitigate the risks of leveraging big data. From a business agility standpoint, Aston of Cisco said in opening the day, that means having a perspective that extends beyond the flashy innovation itself.
“We have to make thoughtful decisions,” Aston said, “and we can’t just be focused on technological outcomes. What’s the business outcome you need to drive?”
The digital wave continues to wash over the global economy, and it’s making a big splash at a Center for Operational Excellence member company.
Member DHL Supply Chain this month announced that it has completed a pilot of a new augmented reality addition to its warehouse picking operations, equipping employees with “smart glasses.” By wearing these glasses, employees have instant access to visual displays that give picking instructions, along with details on where the item is located and where it should be placed on carts.
DHL Supply Chain in a press release said it’s seen boosts of productivity of up to 15 percent during pilot tests in the U.S. and in Europe, CIO and COO Markus Voss calling the digitalization “not just a vision or a program” but “a reality for us and our customers.”
DHL Supply Chain is one of many companies grappling and experimenting with the role of digital technology in legacy business models that, in some industries, haven’t seen radical disruption in generations. The challenge of digitization was the subject of an event just this week at The Ohio State Univeristy, where COE partnered with three other Fisher centers to address challenges and opportunities in this area.
In the opening keynote, Cisco executive Jeremy Aston shared research from the company’s Global Center for Digital Business Transformation showing that in just two years, companies’ perspectives on digitization have shifted drastically. In 2015, only 15 percent of surveyed companies told Cisco and its partners that digital disruption was already occurring in their industry. That number jumped to 49 percent this year. At the same time, roughly one in three of the executives surveyed told Cisco that digitization would have a transformative impact on their industry. Just two years ago, that perspective was shared by one in 250 surveyed executives.
DHL Supply Chain hinted that the “smart glasses” picking pilot is just the start, with plans to look at leveraging this technology in training and maintenance functions, among others.
The Center for Operational Excellence is ringing in a momentous anniversary with a celebration in September featuring two standout keynotes.
COE’s fall kickoff seminar – a formal celebration of its 25th anniversary – is set for Friday, Sept. 15, where Robert Martichenko, CEO of LeanCor Supply Chain Group, and Billy Taylor, head of North America Manufacturing for Goodyear Tire & Rubber Co., are set to present. The sessions will bookend a tailgate-themed networking lunch … with some to-be-announced special guests.
Both keynote speakers are renowned storytellers who bring a blend of personal and professional experiences to their respective stories of spending decades driving transformational change. Martichenko, set to keynote at 10:30 a.m. on Sept. 15, founded LeanCor with a mission to advance the world’s supply chains through training, consulting and third-party logistics. He’s emerged as a globally recognized thought leader in lean thinking and end-to-end supply chain management, as well as an award-winning non-fiction and fiction author.
Martichenko’s keynote, “Lessons in Lean: Lessons in Leadership,” focuses on what he’s learned while building organizational cultures focused on lean thinking and relentless business improvement.
Taylor of Goodyear, set to speak after lunch at 1 p.m., is a sought-after speaker and self-described “evangelist” for people-inclusion processes in operational excellence. In his keynote, “People-Driven Operational Excellence,” he charts his journey from fledgling plant manager to top leader at an iconic brand, offering insights on keys to building a high-performance, self-sustaining culture that’s the foundation for company-wide success.
Both sessions also will be offered to employees of COE member companies via live webcast, hosted and run by Mills James. Registration for webcast and in-person attendance – expected to reach capacity – will open the week of Aug. 7. Read more about both speakers on our website.
The event comes a full quarter-century after the founding of COE, which started in 1992 at the Center for Excellence in Manufacturing Management. Once narrowly focused on the application of lean in the manufacturing sector – and touting only four members – the center has grown along with the field of operational excellence to encompass the notion that process improvement principles are intrinsic to competitive edge for any industry.
Today, COE has a roster of nearly 40 member companies and engages with thousands of operations leaders across the country in the shared pursuit of building better processes in a culture of continuous learning.