Show Respect for People (Principle)
Spend any time around Lean, or any other continuous improvement methodology, for that matter, and you will undoubtedly hear the term “Respect for People.” It is a simple concept that should act as a moral compass in how people do business.
The fact is that a company does not have to be respectful of its employees and customers in order to be successful. Some can treat their workers and clients with disdain and a lack of respect and still remain profitable…for a while, at least. In the end, it turns out that being respectful is not only the right thing to do, but is also good for business.
Search the internet, and you will find a plethora of studies that show that last statement to be true. Companies that are on Fortune Magazine’s “Best Places to Work” list outperform other companies. A 2008 by study Alex Edmans of Wharton showed the BPTW companies averaged a 13.9% return vs. 6.1% for the broader market from 1998 to 2006. Sears conducted a study which went even further and linked employee satisfaction to customer satisfaction, and ultimately a tangible increase in profitability.
The short of it is that if you treat people right, the bottom line rewards you. Plus, most people will sleep better at night knowing that they improved the lives of the people they work with rather than simply harvest production from them.
Unfortunately, though, the actual application of the term “respect for people” can be less than perfect. Leaders can feel pressure that makes them act in ways that put short term gains first. Or, they might simply not know a better way to do business.
But fortunately, a continuous improvement system has proven time and time again to be a great way to build a culture that values the contributions of the members of its team and strengthens the organization as a result.
Prerequisites
NOTE: This document draws extensively from our Respect for People term.
Before diving into this principle, make sure you have begun integrating the preceding principles from this volume into your culture.
Section Details
Estimated Time for Section: Ongoing
Incorporating this principle into your culture is going to be an ongoing battle. It is hard to measure and easy to backslide. You should shoot for some immediate progress on the simpler aspects (i.e. communication, setting clear standards with daily management, etc.), but you’ll be adding more ways to show respect throughout the first 3-4 phases of your journey (through ‘Foundation Building’).
Difficulty: High
This principle is particularly hard because respect is such a vague term. It is also one that generates huge emotions. People who feel disrespected get activated quickly, as do those who are accused of being disrespectful. Early progress, though, in less controversial areas will make later advances easier.
Risk: High.
Getting respect wrong derails the teamwork that is critical for many of the later pillars of a business management system. Be careful about underestimating this principle.
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