Lesson from NUMMI
Lesson from NUMMI
The first and foremost change in NUMMI as a learning organization was in management philosophy. In the old Fremont plant, the management never trusted the workers and in fighting mode with the union. Union functioned to get the most compensation with the least work, while management functioned to get the most production with the least compensation. Workers had no sense of ownership, they did not see total picture, their performance was low. NUMMI started with belief that workers instinctively wanted to do a good job. This belief led to different labor practices. The management developed relationship with the union, established credibility and trust and collaborated with the union in personnel decisions. Reemploying 85% of previous Fremont workers showed this trust. Goals were clearly spelled out and the importance of quality was stressed above all. Establishment of trust and clarity and ownership of goals resulted in excellent teamwork. This is aligned with Senge’s fundamental leadership challenges: building shared vision.
In the old Fremont plant, it was outlawed for workers to stop the line, even if they noticed defect or even safety issue. This was due to assumptions that if workers were allowed to stop the line, they would stop it all the time, because they did not want to work. At NUMMI, every employee were treated as ‘manager’ with responsibility and authority. With this new structure, workers are trusted and had the ‘ownership’ of their workstations. They were allowed to stop the line, under a clear procedure, if they spotted a problem. The new procedure challenged the mental models of workers and foremen/team leaders, and it did make sense to them. Management also encouraged workers to contribute ideas for improvement (kaizen) and rewarded workers for continous improvement. This is aligned with another Senge’s fundamental leadership challenge: surfacing and challenging mental models.
Workers were enabled to see big picture, how their
The first and foremost change in NUMMI as a learning organization was in management philosophy. In the old Fremont plant, the management never trusted the workers and in fighting mode with the union. Union functioned to get the most compensation with the least work, while management functioned to get the most production with the least compensation. Workers had no sense of ownership, they did not see total picture, their performance was low. NUMMI started with belief that workers instinctively wanted to do a good job. This belief led to different labor practices. The management developed relationship with the union, established credibility and trust and collaborated with the union in personnel decisions. Reemploying 85% of previous Fremont workers showed this trust. Goals were clearly spelled out and the importance of quality was stressed above all. Establishment of trust and clarity and ownership of goals resulted in excellent teamwork. This is aligned with Senge’s fundamental leadership challenges: building shared vision.
In the old Fremont plant, it was outlawed for workers to stop the line, even if they noticed defect or even safety issue. This was due to assumptions that if workers were allowed to stop the line, they would stop it all the time, because they did not want to work. At NUMMI, every employee were treated as ‘manager’ with responsibility and authority. With this new structure, workers are trusted and had the ‘ownership’ of their workstations. They were allowed to stop the line, under a clear procedure, if they spotted a problem. The new procedure challenged the mental models of workers and foremen/team leaders, and it did make sense to them. Management also encouraged workers to contribute ideas for improvement (kaizen) and rewarded workers for continous improvement. This is aligned with another Senge’s fundamental leadership challenge: surfacing and challenging mental models.
Workers were enabled to see big picture, how their