The Scanlon PlanThe Scanlon Plan

Customers Investors

Associates

OverviewOverview History Details How Other Companies use Scanlon (video) WIIFM and WROM (exercise) Roadmap Mid-Management Personal Commitment Q&A What the Vote Means What’s Next Q&A Vote

Questions To Think Questions To Think AboutAbout

Is there a need to change?

Is there a potential to improve?

Should we form a team to design a plan on how we communicate, participate, and share our performance results?

Change ExerciseChange Exercise

Is there a compelling need to change? Why or why not?

Consider the following:– Mandate meeting– Quarterly business meetings– Hal’s most recent meeting with you

What Is Scanlon?What Is Scanlon?A method to create a participative

environment.Encourages everyone to use and expand

their talents and experience.Continuous learning and teaching.Constant growth opportunities.A way to better the company while making

it better for you.

Joe ScanlonJoe Scanlon

Who was Joe Scanlon?Who was Joe Scanlon?

Steelworker, union president, accountant, prizefighter, MIT lecturer, head of a research outfit, and an aide to the British industry after WWII.

Father of Participative Management.

One of the first to use Gainsharing.

Opposed the concept “the boss is boss and the worker works.”

Believed in a common sharing between management and associates regarding problems, goals, and ideas.

Who was Joe Scanlon?Who was Joe Scanlon?

A Quote from Joe ScanlonA Quote from Joe Scanlon

History of the Scanlon PlanHistory of the Scanlon Plan

Developed from the innovative work of Joe Scanlon during the 1940’s and 1950’s.

Came to the attention of Dr. Douglas McGregor at MIT, where Joe was invited to join the faculty.

Dr. Frost (University of Michigan) refined Scanlon’s ideas into four fundamental principles and processes.

History of the Scanlon PlanHistory of the Scanlon Plan

Scanlon’s ideas reached international proportions.

Today, the Frost/Scanlon Process is based on the belief in the dignity and the untapped potential in every human being.

Principles and ProcessesPrinciples and Processes

Identity and EducationParticipation and ResponsibilityEquity and AccountabilityCompetence and Commitment

Identity and EducationIdentity and Education

To know and understand our business and to accept that reality places our organization’s survival at risk.

Enable all associates through education and communication to understand the facts, believe they are relevant, appreciate the consequences they portray, and challenge them.

Identity and EducationIdentity and Education

Realistic understanding of our business Continually sharing information Process of education Knowledge of customers Our organization’s mandate Competitive challenges Making change a way of life Learning from the past – envisioning the future We are all continually getting better or worse

Identity and EducationIdentity and Education

Are we doing the right job?

 

Are we doing it well?

 

What day is it?

Participation and Participation and ResponsibilityResponsibility

The opportunity to influence decisions in the areas of one’s competence.

Take personal ownership for reachinggoals, achieving results, makingimprovements, and satisfying customers, investors, and associates.

Participation and Participation and ResponsibilityResponsibility

Associate involvement, teams, task forces, continuous improvement teams, and suggestions systems.

Better utilization of associates’ talents, experience and ideas.

Based on the belief of dignity and untapped human potential.

C I P

Participation and Participation and ResponsibilityResponsibility

Do we encourage involvement in decision making?

  

Do I take responsibility for my decisions?

Equity and AccountabilityEquity and Accountability

Balancing the interests of customers, investors, and associates within the context of serving society.

Know and measure the items essential to the satisfaction of customers, investors, and associates and act with integrity to achieve results.

Equity and Accountability Equity and Accountability

Regularly report the organization’s performance relative to customers, investors, and associates needs.

Goal setting, tracking, reporting, rewarding for organizational results.

Sharing a portion of the savings and performance accomplishments with all associates.  

Ensuring our decisions keep the triangle in balance.

Growing the triangle.

Equity and AccountabilityEquity and Accountability

     How do we hold ourselves accountable?

 

     Is the triangle in balance?

Does each decision help balance the triangle?

Competence and CommitmentCompetence and Commitment

Acquiring the understanding and skills to do the right thing the right way both today and tomorrow and to appreciate our business realities.

Willingly act to make the organization succeed.

Competence and Commitment Competence and Commitment

Commitment to becoming something better than before.

Providing training, education, feedback and support to get better.

Constant demand for improvementand change.

Competence and CommitmentCompetence and Commitment

Growing and improving in all three areas:

Personal

Professional or job

Organizational/Cultural(BETTER COMPANY) (BETTER PLACE TO WORK)

Competence and CommitmentCompetence and Commitment

     Am I willing to help others become more competent?

 

     Am I committed to making myself better every day?

Is there a potential to improve?

Balancing the TriangleBalancing the Triangle

Customers Investors

Associates

What Scanlon Is:What Scanlon Is:A method to create a participative

environment.Encourages everyone to use and expand

their talents and experience.Continuous learning and teaching.Constant growth opportunities.A way to better the company while making

it better for you.

What Scanlon is not:What Scanlon is not:

A quick fixLeaderlessEasyA cure-allA guarantee

VideoVideo

What are key parts of Scanlon?

What are the three sides of the Scanlon triangle?

What does it take to apply the Scanlon principles?

True or False? The Scanlon way of managing is a relatively new idea?

Answer these QuestionsAnswer these Questions

Multiple answers

Customer, Investor, and Associate

It takes the four processes

False

WIIFM & WROMWIIFM & WROMExerciseExercise

1. Use the handout list and add any items you personally prefer.

2. Pick four things that are your top choices.

3. As a group, tally your preferences.

WIIFM & WROMWIIFM & WROMResultsResults

Road MapRoad Map

Personal CommitmentPersonal Commitment

QuestionsQuestions??

What the Vote MeansWhat the Vote Means

Vote is to design the plan.

Vote yes means: – Approval to create a design team.– Agreement with the four principles.

Requires 80% approval.

What’s NextWhat’s Next

Formation of design team including all levels of the organization.

The plan usually takes 6 - 9 months to design (Design Team).

All associates vote on the design. One year trial period if plan is approved. Feedback from associates about the plan and

adjust accordingly. Vote to continue Scanlon.

Additional Questions?Additional Questions?

VoteVote