Byron's Babbles

Leading Work 4.0

IMG_2515Today, our Indiana delegation in Germany spent the morning in Paderborn at the Benteler Vocational Training Center and then the afternoon touring the Benteler Automotive Plant. Because Benteler is 30,000 employees strong at 144 locations in 39 countries, they believe a company is the sum of all its employees. In other words, Benteler has 30,000 “guaranteers of success.” As a side note, 5,000 of those employees are in Indiana.IMG_2491

While visiting with Benteler officials and students, we learned more about five new and emerging areas in manufacturing and industry:

  1. Smart glasses
  2. Digital maintenance
  3. Predictive maintenance
  4. Smart production
  5. Work 4.0

These are all areas that both the manufacturing sector and education sector need to be area of and talking about together. This all further drove home the point about why we, in Indiana (and I am sure all over the U.S and Europe) to continue to replicate the great work that Horizon Education Alliance is doing to facilitate bringing together all the stakeholders to develop solutions for educating our young people to be ready for the workforce of tomorrow.

IMG_2514Smart Glasses

Smart glasses can collect information from internal or external sensors. It may control or retrieve data from other instruments or computers.

 

Digital Maintenance

Digital solutions applied to maintenance can considerably improve asset reliability and reduce operating expenditure by predicting equipment failures, streamlining supply chain, reducing unplanned and planned maintenance and increasing production efficiency. Equipment can be set up with a digital inspection plan, run-to-failure, condition based maintenance, preventive maintenance or predictive maintenance strategy.

Predictive Maintenance

In a predictive system, employees and systems can anticipate and act before issues or challenges arise, rather than simply reacting to them after they occur. This feature can include identifying anomalies, restocking and replenishing inventory, identifying and predictably addressing quality issues, and monitoring safety and maintenance concerns. The ability of the smart factory to predict future outcomes based on historical and real-time data can improve up-time, yield, and quality, and prevent safety issues. Artificial intelligence can also be used to predict when something will fail or need to be replaced.

Smart Production

Smart Production or Manufacturing and the Smart Factory enables all information about the manufacturing process to be available when and where it is needed across entire manufacturing supply chains and product life-cycles. This Smart manufacturing, or Industry 4.0 as it is also referred to, is the process that employs computer controls, modeling, big data and other automation to improve manufacturing efficiencies.

Work 4.0

Work 4.0 was the most intriguing topic of the day as it is really about the interaction of humans and machines (eg. robots). The use of pulleys in early antiquity or the Babylonians’ use of pumps to irrigate fields can be regarded as early examples of human-machine interaction. Now we have reached a whole new level of connectedness and interaction. Industry 4.0 has brought humans and machines to an almost human-like connection with emotions and feelings. The digital interconnection of all workers, tools and work-pieces in the production process and across company boundaries is generating an “Internet of Things (IoT).” This means we are going to need to be educating and training on new things. We will also need to educate on the benefits. We will need to answer the question for those we are educating: “How will this make my life easier?” It won’t just work to outline the financial benefits or improvements to the bottom line.

I’ve heard it said on this trip that technology is not the issue, it is the enabler. We will need to be teaching our students how to use the data and the technology. All of this is going to allow us to move from reactive to predictive and preventative (artificial intelligence). Human-machine interaction is taking on a new dimension due to developments in the field of artificial intelligence (AI). Because of AI there are now robots capable of interacting with humans. These are call “cobots.” No longer does the robot replace the human, but actually works along-side the human.

Are you ready to lead and educate in a Work 4.0 environment? 4.0 is here and we need to be having the conversations about how to have our workforce ready. You ready to have the conversation?

 

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Leadership To Tear Down Walls

IMG_2465Today, I had the opportunity to stand in Berlin, Germany where President Ronald Reagan stood in 1987 behind two panes of bulletproof glass 100 yards from the Berlin Wall at the Brandenberg Gate and called on the Soviet leader Mikhail S. Gorbachev to dismantle it. I can remember that speech like it was yesterday and to then be standing there, was awe inspiring.

Think about it, at that time it was a very powerful stage: a United States president in front of the Brandenburg Gate at the height of the Cold War, with an East Berlin security post visible behind him. President Reagan firmly said, “General Secretary Gorbachev, if you seek peace, if you seek prosperity for the Soviet Union and Eastern Europe, if you seek liberalization: Come here to this gate! Mr. Gorbachev, open this gate! Mr. Gorbachev, tear down this wall!” That is audacious leadership, and why President Reagan is at the top of my most admired Presidents list.IMG_2452

The effects of the speech have been debated by historians, but I will always believe it was an important part to the wall coming down and the freedom and unification of Germany. President Reagan’s speech emphasized freedom and reunification, and then ingeniously and deliberately asked for more than Gorbachev would stretch to. President Reagan saw an opportunity to undercut Europe’s perception of the Russian leader as a leader of peace. A little more than two years later, on Nov. 9, 1989, East and West Germans converged on the wall and began dismantling it after East Germany lifted travel restrictions. The country was reunified less than a year later in 1990. The wall had been in place from 1961-1989.

As a leader, President Reagan was showing us his resilience to continue working with the Soviet Union to end the Cold War. Most who listened at the time viewed Reagan’s speech as a dramatic appeal to Gorbachev to renew negotiations on nuclear arms reductions. eight months before, a summit between Reagan and Gorbachev had ended unsatisfactorily, with both sides charging the other with bad faith in talks aimed at reducing nuclear arsenals. Reagan, who had formed a personal closeness to Gorbachev during their previous meetings, obviously wanted to move those negotiations forward. In December 1987, the two met once again and signed the Intermediate-Range Nuclear Forces (INF) Treaty, which eliminated an entire class of nuclear missiles from Europe.

IMG_2463President Reagan was a great leader because of his vision. He said, “America is too great for small dreams.” I believe this is true of every organization we lead. We need to dream big. My favorite President certainly did. Great leaders are not satisfied with small dreams. Rather than trying to just gain an edge over the Soviet Union, Reagan totally dismantled the “Evil Empire”, where he succeeded. The dismantling of the Berlin Wall was just one part of that vision.

Here is what former President George Bush had to say about President Reagan, “Our friend was strong and gentle. Once he called America hopeful, big hearted, idealistic, daring, decent and fair. That was America and, yes, our friend. And next, Ronald Reagan was beloved because of what he believed. He believed in America so he made it his shining city on a hill. He believed in freedom so he acted on behalf of its values and ideals. He believed in tomorrow so the great communicator became the great liberator.” President Reagan had a huge vision and had the audacity to go after it. Because of that the world is a better place and more nations are free because of him. Do you have an an uplifting and positive vision for your organization and our country and their future. Let’s get out there and tear down the walls.

From Best Practice To Next Practice

IMG_2336Today was the final day of the 2nd Annual Global Smart Manufacturing Summit in Berlin, Germany. I really valued the time to get to know business and industry leaders from around the world. I was reminded of what my good friend Kevin Eikenberry and I used to talk about a lot – when we look at the differences between different industries (eg. manufacturing vs. education), we see about 90-95% of our issues being the same and about 5-10% different. What I mean here is that many of the challenges and roads to improvement are the same. Think about it, we all have responsibility in finance, HR, facilities, and customers. If we break that down further, we all have one of the same groups within the customer category – employees. Now, I get it; our employees are our competitive advantage, but employees are still a customer to be taken care of at the highest level.

Organizational Commitment

The first session this morning was about initiatives and organizational commitment. As a believer in learning organizations, I was really enamored by the discussion of organizational commitment. This thinking really fits with a lot of the Gallup® research I have been studying around employee engagement. When we discuss organizational commitment, we are talking about the bond employees experience with their organization. Broadly speaking, we know employees who are committed to their organization generally feel a connection with their organization, feel that they fit in, and believe they understand the goals of their organization.

Screen Shot 2018-04-10 at 8.25.16 PMNext Practice

One of the session titles this morning was “From Best Practice To Next Practice.” I really appreciated this session because we talk a lot in education about “best practices,” but really it is about making the right choice and implementing the next practice. Good or bad, I tend to be the one looking for the next practices. Really, that is what this entire discussion was about for the global leaders here: what are the next practices.

Convergence

Then, it comes down to convergence. How do we take several sources of independent data and bring them together to develop strong conclusions? In education we call this using “multiple data points.” I don’t think we do the best job of bringing all the data points together. For example, this week I was reading and article about teacher pay and how it was decreasing. I question if we have been properly converging HR, financial planning, and student data in a way that would inform what we have been paying our teachers in Indiana. I’ll let you grapple with my comment here, but you get the point.

Problems

One of the comments that I loved most today was, “We shouldn’t be talking about the problems of today, but the problems of tomorrow.” This is so true! This means in education we need to be looking several years out as to what business and industry needs. We also need to think about what our execution model will be for making sure our students have the skills necessary to meet the needs of the workforce. A few phrases/questions coming from the global manufacturing leaders that jumped out at me were:

  • What data is coming from where?
  • How do you use your data?
  • Appropriate levels of (you fill in the blank here)
  • Move from reactive to predictive and preventative

Outcomes

All of this discussion has made me an hinkeven bigger believer in us (both Indiana and the United States) needing to move to a strictly outcomes based school accountability system. We could then, truly in partnership with business/industry and higher education, determine what transferable skills students need and have coming out of high school. Then we can match those transferable skills to outcomes that the students needs to accomplish. Here are some examples and outcomes:

  • industry certifications
  • 4 year degrees
  • Associate degrees
  • Trade school
  • Joining the military
  • Meaningful employment

At a time when our state has 75,000 jobs per year going unfilled because there are not skilled workers to take those jobs, we need to be thinking about the outcomes for our students. Thus the skills gap of only 42% having any kind of post-secondary preparedness versus the 75% needed.

If we are going to have our students ready for the workforce we will need to:

  • Teach students in a real world and relevant context
  • Enable, encourage, and stimulate students to be curious
  • Teach students how to fail and that it is o.k. to fail
  • Engage students in career exploration activities at a young age
  • Determine the transferable skills needed to have students ready for today’s jobs
  • Teach students to be disruptors
  • Provide pre-apprenticeship, apprenticeship, and work based learning internships

Business and Industry engagement in education programs not only prepares students with the skills they need for careers, but it also contributes to the development of clearly developed career pathways that lead students to careers after graduation.

What Does Industry 4.0 Mean?

IMG_2367Today, I had the honor of being in attendance at the 2nd Annual Global Smart Manufacturing Summit in Berlin, Germany. One of the topics we grappled with was of what does Industry 4.0 mean? Ron Zahavi, Chief Strategist for IoT Standards and Consortia, Microsoft Corporation did a great job of walking us through some history.

Industry 1.0

This is the first industrial revolution:

  • Technology such as wheels and engines replaced artisans
  • Child labor laws had to be introduced to prevent abuse

Industry 2.0

  • Assembly lines allowed workers to be turned into consumers

Industry 3.0

  • Lean Processes improved the quality of products
  • Advent of computer use
  • Robots reduced mistakes and improved productivity and safety, but began replacing people

Industry 4.0

  • Big data and analytics
  • Autonomous robots
  • Simulation
  • Horizontal and vertical system integration
  • The industrial Internet of Things (IoT)
  • Cybersecurity
  • Additive Manufacturing/Advanced Manufacturing
  • Augmented Reality

Interestingly, in all these cases technology and mechanization are involved, but in the revolutions of Industry 1.0, 2.0, and 3.0, I wonder if we forgot how important people are. We must remember as we navigate Industry 4.0 that people are more important that the devices and technology.

In my world of educating young scholars and creating education policy, we have a responsibility to make sure as we move to Industry 4.0 to put people at the forefront. We do not want to make the same human mistakes with 4.0 that we made with the first three revolutions.

I really believe more than ever that we must make sure that we create space for industry to do as much of the training of our students as possible. Industry is in a good position to do this. What we have to do, though, is identify the transferable skills students need and institutionalize those skills in the framework of the internship learning being done in partnership with industry. This is crucial because of the mobility of our students.

We must be educating our students on the new things being done with Industry 4.0, but must also be educating them on the benefits. In other words, answering the question: How does this make life easier? Not just always pointing to financial improvement and the bottom line. We must begin to develop a workforce made up of the right quantity and right quality of workers. The skills we are preparing students with must match the needs of the workplace.

Industry 4.0 will require new skill sets, and manufacturers will need to attract the right talent. This may involve partnering with k-12 schools to train students. Existing training programs may need to be expanded to include new technologies that are introduced to the marketplace. Manufacturers also need to recruit for Industry 4.0, which may differ from how they have done it in the past. Both business and industry and education will need to stop all focus being on qualifications determined by degrees and certificates, companies should recruit for capabilities to succeed. These capabilities will include specialized skills.

For us to compete during Industry 4.0, it will require us to conduct constant iteration and be flexible. It’s not about buying software or purchasing a curriculum and then watching it all play out. To compete in Industry 4.0, the education sector and manufacturers must be flexible and agile in the face of change, and, most importantly, partner together.

 

Focus On The Wider World

Screen Shot 2018-04-10 at 8.20.17 PMLast week I did a 3D Leadership Program™ session on focusing as a leader. It was about focusing on three things:

  1. Self
  2. Others
  3. Wider World

Clearly if we want to be effective leaders we must focus on ourselves. This focus does not mean being self-centered, but self-caring. We must take care of ourselves physically, emotionally, and spiritually. Additionally, we must take ownership of our own professional growth. If we are taking care of ourselves then we can begin to focus on others using our empathy, caring, and relationships.

Another important focus area and focus of this post is to focus on the wider world. To do this I believe it is important for us to not only take a worldview look at our own part of the world, but also look literally at the rest of the world. I will be doing this for the next 12 days in Germany and Switzerland. I am on the plane flying to Berlin, Germany as I write this post. I am very honored to have been asked to go on this trip that was organized by Horizon Education Alliance. There are representatives from schools and business/industry in Elkhart County, Indiana as well as State Representatives, Governor’s Office officials, colleges and universities, and me as a member of the Indiana State Board of Education taking part in this experience and serving as ambassadors of our state and country. Again, what an honor!

Screen Shot 2018-04-10 at 8.25.16 PMI am hoping to add a post to my blog each day as our journey progresses. So, stay tuned to Byron’s Babbles each day to see where we have been and what we have learned. It is going to be fast and action packed learning. Tomorrow we will be attending the 2nd Annual Global SMART Summit in Berlin, Germany. This will be a chance to learn more about Manufacturing 4.0 and I am excited to learn how we can better prepare Indiana’s students to work in this environment upon completion of high school. I am super pumped about all the businesses and industries that will be represented. See the photo here to see who the players are who will be in Berlin:

Screen Shot 2018-04-10 at 8.22.59 PM

Surely you recognize a few on the list. This will be the who’s who of business and industry. SMART, or 4.0 Advanced Manufacturing applies information and manufacturing intelligence to integrate the voice, demands and intelligence of the ‘customer’ throughout the entire manufacturing supply chain. It marries information, technology and human ingenuity to bring about a rapid revolution in the development and application of manufacturing intelligence to every aspect of business. It changes how products are invented, manufactured, shipped and sold. We will be gaining insights on what it takes to thrive in this new paradigm shift in manufacturing through the use of advanced technology. Our Indiana delegation will be part of the 200+ delegates from the top leading companies from around the world sharing their management strategies on the opportunities and challenges that lie ahead in the Digital Economy.

Back to the point of this post – focusing on the wider world. This is so important because we must practice exploratory strategic thinking and creative thinking. Leaders with a strong outward focus are able to exercise these two skills. These leaders tend to be visionaries who sense the far-flung consequences of local decisions and imagine how the choices they make today will play out in the future.Take Bill Gates: On 60 Minutes, Melinda Gates remarked that Bill was the type of person who would read an entire book on fertilizer. “Why fertilizer?” Charlie Rose wanted to know. The connection was obvious to Bill Gates, who is constantly looking for technological advances that can save lives on a massive scale: “A few billion people would have to die if we hadn’t come up with fertilizer.”

Any business school course on strategy will give you the two main elements: exploiting your current advantage and exploring for new ones. It’s not surprising to find that exploitation requires concentration on the job at hand, whereas exploration demands open awareness to recognize new possibilities. But exploitation is connected to the brain’s reward circuitry—in other words, it feels good to coast along in a familiar routine. So when you switch to exploration to roam widely and pursue fresh paths, you have to make a deliberate cognitive effort to disengage from that routine and maintain open awareness. We must always be looking to spot new opportunities.

Thinking creatively involves three forms of focus:

  1. Vigilance—remaining alert for relevant information while immersing yourself in all kinds of input
  2. Selective attention—focusing on one thing while filtering out everything else
  3. Open awareness, which we’ve discussed earlier

The classic model of creative thinking shows how you use each of these:

• First you use vigilance to gather a wide variety of pertinent information.
• Then you alternate between intense concentration on the problem at hand (selective attention) and letting your mind wander freely, as you might in the shower or going out for a run (open awareness).

Being a focused leader doesn’t merely mean concentrating on the biggest priorities of the year or being in tune with corporate culture. It means commanding the full range of your own attention. With diligence, you can cultivate focus on yourself, on others, and on the wider world. As a result, you’ll be able to direct your attention—and others’ attention—where you need it.

For the next few days I am going to focus on a wider world view. I want to know how the best of the best are leading our industries. I want to learn how the best of the best in Germany and Switzerland are educating young scholars to be ready for post-secondary success. Let me be clear; I do not want the United States to become Germany or Switzerland. What I want is for us to learn the best of what others are doing find ways for us to get better at educating our students. In saying that it does not mean that I do not think we are doing a good job. It means that if better is possible than good is not enough. We need to be pursuing fresh paths by spotting new opportunities with open awareness. I hope you will tune into my blog over the next several days and check out the wider world global learning taking place with a group of us from Indiana, USA.

How Radical Innovation Happens

The following is a book excerpt from The New Science of Radical Innovation

How Radical Innovation Happens

By Dr. Sunnie Giles

Radical innovation germinates for a long time, surfacing at the critical inflection point when momentum has become large enough (as some would call self-organized criticality). Radical innovation happens when many self-organizing employees experiment profusely and learn—to see how to adapt to the environment best and adjust their behavior iteratively using simple rules. The iterative adaptation based on the results of these experimentation builds the momentum, often well below the radar screen. The employees take cues from the environment in an open-feedback system. Radical innovation is a result of these employees coevolving with the environment in an open system where information for feedback and adaptation flows without friction. Radical innovation is created by an adequate level of random perturbations from the environment and the complex system’s adaptations to them. It often results from accidental, spontaneous recombination of existing ideas and tools.

In the process of this constant adaptation to signals from the environment, employees use simple rules to speed the reaction time, rather than executing with perfect accuracy, because second order change happens as a result of growth of variances or errors from imperfect execution. As such, speed to generate meaningful variances from iterations of trials is more important for radical innovation than perfection.

Radical innovation cannot be planned or choreographed; it can only be fostered and nurtured. Putting someone in charge of an “innovation” department, allocating some budget, and tasking that person with managing the innovation pipeline can only yield incremental innovation, such as packaging innovation or line extension. To maximize chances of radical innovation, the kind that produces 10x improvements, individuals with differentiated, unique expertise, skill sets, and perspectives must be forged in solid connection as a coherent team.

Radical innovation involves a cultural shift and the accompanying changes in HR and leadership practices. Once manifested, radical innovation sustains for a relatively long period, until the next radical innovation redefines industry dynamics. To summarize, I define radical innovation as a serendipitous result of many self-organizing, interdependent employees learning from profuse experiments using simple rules to produce a minimum of 10x improvements. Radical innovation is a specific manifestation of complexity.

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About Dr. Sunnie Giles

Dr. Sunnie Giles is a new generation expert who catalyzes organizations to produce radical innovation by harnessing volatility, uncertainty, complexity, and ambiguity (VUCA). Her research reveals that applying concepts from neuroscience, complex systems approach, and quantum mechanics can produce radical innovation consistently. Her expertise is based on years as an executive with Accenture, IBM and Samsung. Her profound, science-backed insight is encapsulated in her leadership development program, Quantum Leadership. An advisor to the Stanford University Graduate School of Business, she also is a sought-after speaker and expert source, having been quoted in Harvard Business Review, Entrepreneur, Fast Company, Forbes, and Inc.

Dr. Giles’ latest book, The New Science of Radical Innovation, provides a clear process for radical innovation that produces 10x improvements and has been endorsed prominent industry leaders such as Jonathan Rosenberg, Daniel Pink, Marshall Goldsmith and Sean Covey.

Leading Without Surprises

In Gem #18 entitled, “No One Likes Surprises” in 52 Leadership Gems: Practical and Quick Insights For Leading Others by John Parker Stewart I was reminded that there are three types of news:

  1. Good news
  2. Bad news
  3. No news

Stewart told us that people love good news the most and hate no news. With this I was reminded that no one likes to be surprised unless it is a party, an award, or a call/visit from someone special we haven’t seen for a while.

We need to be reminded of this every so often (probably often). I just had a situation where I did this. It wasn’t really good or bad news (it was a good thing that I was going to be doing) but it was something I needed to discuss with those above me. I had just got busy and had not had the conversation. I was in the wrong here, make no mistake. Let me tell you, I took responsibility and apologized. By the way, it worked out ok because I work with great leaders who understand when you take responsibility for your own actions. It is best to report news at at the first point at which we know it.

“Diplomacy and timing are important; but whenever possible, avoid delaying the sharing of news (however bad) with your boss, your team, or your customers.” ~ John Parker Stewart

Now I know some of you are saying, “yes but sometimes news needs to be timed right.” I get that, but not providing news gives others the opportunity to write the narrative. My experience has been, when we allow someone else to tell and set the narrative of our news it usually is not reported correctly. Can you remember a time when this happened to you?

So, let’s all remember, we really don’t like surprises and report information and news we have whether it’s good or bad.

Improving To Great

In Gem #17 entitled, “Good IsThe Enemy Of Great” in 52 Leadership Gems: Practical and Quick Insights For Leading Others by John Parker Stewart we are reminded that we need to adopt a culture where every aspect of the organization can be improved. “Good is the enemy of great” are the opening words of “Good to Great,” the best-selling iconic book by preeminent leadership and management thought leader Jim Collins.

In order to do this we must surround ourselves with the right people. Collins taught us to have the right people in the right seats on the bus.

Additionally, we need to remember that the journey to great is just that, a journey. This journey should not end. Once you think you are great, you have nowhere to go but down. Very few organizations ever achieve greatness, even though at times leaders and those who they lead may use that term to describe their organizations.

Many times we are blinded by the facts. We get lulled into thinking everything is going great. We must be open to looking at all the brutal facts about our organizations. Let’s take a moment and think about our leadership style and the culture of our organizations. Should any changes be made?

We Try Harder!

In 1963 Avis came out with an add that rocked the advertising world. The CEO at the time, Robert Townsend, was running a struggling brand. Hertz was number one in the rental car space and Avis was way behind in number two. To help, Townsend brought in the hottest advertising agency of the time – DDB. The agency took the job on one condition: Townsend agreed to run whatever campaign they suggested no questions asked. With this creative freedom, copywriter Paula Green created the new tagline, the brand ran it and it helped turn the brand around – “We’re #2, and we try harder.”

There are several lessons in this story from Avis I was reminded of in Gem #16 entitled, “Beware The #1 Syndrome” in 52 Leadership Gems: Practical and Quick Insights For Leading Others by John Parker Stewart . Stewart reminded us it is hard to stay on top as number one in both business and athletics. It’s not only hard to become number one, but even tougher to stay there. Everyone is gunning for you, and the tendency to get complacent is overwhelming. Therefore, Stewart contends we need to take the Avis approach and consider ourselves or organizations number two and always keep trying harder. If we always work like we are number two, we will probably remain number one. Do you try harder?

Owning It

One of the most important responsibilities of great leaders is to continually grow team members into owners, and at the same time convert “renters to owners by engaging and developing them to realize their potential and purpose. Gallup (2017) research tells us one of the most important things employees want is to have the opportunity to make a difference and grow professionally where they work. Taking ownership is an important part of this engagement.

By ownership I don’t necessarily mean monetarily owning. The owner mentality is one of commitment, individually and collectively, to a shared purpose. The metaphor of “renter” vs. “owner” was used in Gem #15 entitled, “Ownership Or Rentership” in 52 Leadership Gems: Practical and Quick Insights For Leading Others by John Parker Stewart . Stewart talked about the difference in the way we care for a rented house versus one we own. I think of the metaphor of a rental car versus the one I own. What’s the saying? “Nothing parties like a rental!”

We will know we have developed owners if they are always looking for ways to make the workplace increase in value. Owners are also always looking for others who can help increase the value of the workplace. Are you developing owners or renters?