Connect with Scott Gauvin: Website: www.macresco.com Lisa Ryan: Hey, it's Lisa Ryan. Welcome to the Manufacturers' Network podcast. I'm excited to introduce our guest, Scott Gauvin. Scott is a seasoned change agent with over 25 years of experience successfully helping organizations realize their potential. Throughout his career, Scott's focus has been on driving performance gains through organizational alignment and a progressive operation strategy approach. He has advised companies the world over and across a wide range of industries, including pharmaceuticals, biotech, consumer goods, medical devices, agriculture, packaging, legal services, banking, food processing, and industrial manufacturing. He holds a BA from the University of Massachusetts, an MBA from Boston University, and is a Six Sigma black belt. Scott, welcome to the show. Scott Gauvin: Thank you, Lisa. It's a pleasure to be here. Lisa Ryan: So share with us a little bit about your background and what has led you into the work you do, particularly with lean. Scott Gauvin: Early in my career, I worked for a manufacturer and got a chance to play in many different areas and learned a lot about some of the issues that plague manufacturing companies. I realized a disconnect between some of the changes we were creating and how we created that change. Throughout many experiments that went awry, we learned that one of the things we struggle with is implementing sustainable change. When we're implementing and practicing lean, one of the things that I've focused on - especially the last probably 10-15 years, is how to create change, but more sustainably. My focus is on the human element of lean practices. Lisa Ryan: That was one of the things that we were talking about a little bit before we started the interview because manufacturers are pretty much familiar with lean. Everybody, at some point, is doing lean. You mentioned that a lot of them are only doing about 50% of lean. So what are they doing right Scott Gauvin: Lean comes from the American executives' work who studied the Toyota operating model back in the 1980s. They've adapted it to their operating models, but there are two parts of that Toyota model: one is continuous improvement, and the other is respect for people. Many equate the respect for people as being nice to people. You should be nice because that's the right human thing to do, but the idea of respect for people isn't about being nice. The respect for people part is Toyota's operating mindset, which forms their culture. The respect for people pillar is about the mindset you establish. The focus is on the human element of change. How you're incorporating every stakeholder into the change equation and letting their skills, their talents, their knowledge, their experience transform the organizations. Manufacturers get this wrong because they focus only on the continuous improvement side of these two pillars, and they give lip service to the respect the people piece. They implement the tools and then focus on creating cost reductions or productivity improvements. Lisa Ryan: And why do you think they are they're thinking that? Do they perhaps feel that those soft skills are not contributing as much to the bottom line? Where is the disconnect? Scott Gauvin: I think it all comes out of what's driving the need. What's driving the executive is we've got to get our numbers up; we've got to improve our performance, and so, what are the tangible things that we can do that? We can see that we can affect those. There are many tools in the lean methodology that helped drive change that will ultimately reduce waste or increase productivity. The problem is that a lot of those changes aren't sustained. There's an industry week article floating out there that they did a study that suggested that as much as 97% of lean efforts fail to achieve what they set out to accomplish. Most start their lean efforts with the wrong purpose. They set out to reduce costs...