Manufacturing is responsible for a great deal of pollution in our environment, extending as far back as the 1700s. Anyone reading this article can probably easily recall pictures from grade-school history books depicting the early American factories of the industrial revolution: Smokey, dirty, and dangerous.  The effects of these historic factories on the environment and those of the following centuries have created a negative stereotype that manufacturing leaders continue to battle.  There is no doubt that the manufacturing leaders of tomorrow are the emerging environmental leaders of manufacturing today:  Green is the new color of manufacturing.

In this first installment of the Green: The New Color of Manufacturing series, we will focus on Boeing and the state of Arizona, demonstrating the importance of corporate community responsibility.  There is no doubt this leads to huge ROIs, and will be discussed in future articles of this series.

In order to quickly grasp the negative environmental effects of past decisions made by Manufacturing Leaders, let us use the Tucson Arizona International Airport (TIAA) Superfund site as a case study.  From the 1940s onward, Tucson’s water suffered a great deal of pollution, including the disposal of metals, chlorinated solvents and other wastes.  Aircraft and electronics facilities discharged waste liquids directly into the soil, fire drill training areas disposed of wastes from training operations in earthen waste pits, and several manufactures including the department of defense and their contractors disposed of hazardous wastes in landfills and earthen pits.  In each case, dangerous chemicals were absorbed by the soil, and by 1981 contaminated the water supply for over 47,000 people in Arizona. Discovering these detrimental disposals, the Environmental Protection Agency (EPA) working with the city of Tucson had to shut down 11 city water wells and additional household wells to control the spread of the pollution.

Without doubt, the wide-spread cases similar to the TIAA Superfund are revolutionizing manufacturing for the better.  Surveying the top manufacturing leaders, we see a widespread emphasis on green initiatives and community involvement through environmental preservation and clean-up.  Moreover these elite leaders are capitalizing on the huge ROI green initiatives have such as minimizing cost, drawing in a wider, environmental conscience customer-base, and creative solutions the investment in green research ultimate lead to.  Given the unfortunate 787 battery complications Boeing is facing, this is an opportune time to highlight Boeing’s highly laudable commitment to the environment and its communities.

Boeing, one of the leading manufactures across the globe, spearheads green technology through its own research such as fuel cell research, sponsoring a large number of environmental events, and its commitment to cleaning up the Duwamish Waterway.  As a member of Business for Social Responsibility (BSR), Boeing works with companies across the world to spread their innovative green initiatives through strategic partnerships.  Through Engineers Without Borders, Boeing strives to provide clean drinking water along with renewable energy to impoverished nations such as those in Africa and India. Boeing has several other green projects listed on its Environmental Affiliation Page, all of which are highly laudable and impressive.

Boeing Leaders continue revolutionizing the aviation industry.  Mr. Mark Severson, ERAU Worldwide Graduate student and US Navy Instructor, has been researching the use of composite materials in aircraft manufacturing.  Within his findings Mr. Severson sees, “[P]otential for composite materials to open up the doors for a greener initiative, and possibly cheaper.  The biggest environmental impact in the manufacturing process with the 787 is the use of bonded structures versus mechanical fasteners.  The reduction of mechanical fasteners (rivets, screws, bolts and nuts) in composite aircraft manufacturing is congruent with Boeing’s Lean Manufacturing process by reducing waste and improving the overall efficiency of aircraft manufacturing which reduces the industrial footprint on the environment.”

Boeing works diligently to encourage all its employees across the globe to take responsibility for their environmental impact.  In the grant guidelines for Arizona Boeing explicitly states, “We invest in programs that educate and engage communities about the importance of taking action to reduce their impacts on the environment and climate change. We support programs that teach citizens, particularly children, how to preserve and live compatibly with our desert environment and conserve natural resources. We also support programs that restore and protect critical natural habitats.”  This commitment to community is seen through many Boeing employees.  Even in the extreme Arizona Desert heat, Mesa Boeing employee Kamden Reedy cycles to work each day.  In 2009, 36 percent of Boeing employees in the U.S. were reducing their carbon footprint by using alternative transportation means such as biking, walking, taking public transportation, telecommuting and/or working flexible hours.

Given Boeing’s successful campaign to clean the Duwamish Waterway and their partnership with the Engineers Without Borders, it would seem a natural fit for Boeing to apply similar strategies to the Superfund Sites in Arizona.  Although this will take some additional man-hours, the ROIs are endless…the author will leave this to you to ponder, along with one final comment from Real Estate expert Phil Zepeda, “Businesses are strongly cautioned against purchasing real estate in these Superfund regions due to the environmental pollution.  However, with leading green technology, this is an opportune time for companies, like Boeing, to capitalize on.”

I was thinking the other day about innovation and how to characterize its essence. In going through this exercise, I tried to focus on people who had been successful with innovative ideas. What was it at their core that differentiated them from others? From Albert Einstein to successful innovators in Embry-Riddle Worldwide, the common characteristic I see is imagination. Innovators and innovative organizations seem to have the capacity to imagine things that others simply don’t see. They go beyond what is, they have the energy and the ability to imagine a different way, a different world, a different process…and then they have the internal strength to drive the system towards those goals…and they are able to compel others to follow them and follow through.

Thinking about innovative capability is particularly important when hiring and bringing people into your organization. How do you measure that potential and how do you develop the ability to “see” a person’s imaginative capacity?  I have some ideas, but I am sure there are plenty of better ones out there….tell us what you think!

Where are these manufacturing leaders that are empowering the manufacturing revival in the United States located and relocating to?  Leaders that have a clear vision and strategy for the betterment of their organizations’ performance.  Leaders that understand the empowerment of local community support for their manufacturing growth.  Leaders that seek out regions where success is more likely, often offering a competitive advantage.  Where are these manufacturing leaders that seek out “clusters,” (see the 2011 edition of AIR, pp 118 – 126)?

According to Joel Kotkin, contributor to Forbes, Seattle/Tacoma/Bellevue earns top marks.  Not surprising as the Seattle region itself has fared well through the economic downturn having a state-of-the-art seaport and airport, home to Boeing, and a strategic gateway to the west. Furthermore Alaska Airlines, which is constantly recognized for its breakthroughs in air-cargo technology, hub is SeaTac.  The City of Seattle also supports manufacturing growth through strategic partnerships, such as that with the Manufacturing Industry Council (MIC). Together, the City of Seattle and the MIC work to not only bring manufacturing to the Seattle region, but more importantly, to retain and grow it.

Texas tops out 4 of the remaining 9 cities in the Forbes top 10.  Listing all the manufacturing powerhouses in Texas is practically impossible, as the number of manufactures continues to grow at such a rapid pace.  For example, from current trends it is highly probable that Texas is becoming the Aeronautical/Aerospace capital of the United States.  Within Fort Worth alone there are three airports not including Dallas/Fort Worth International Airport (DFW).  Embry-Riddle Aeronautical University Worldwide recently opened a new campus at Alliance in July 2012, and continues to empower the Aviation/Aerospace Manufacturing sector through world-class education, conferences, and strategic business alliances.  The Center for Aviation and Aeronautics Leadership, (CAAL), headquartered at Embry-Riddle Aeronautical University Worldwide Alliance Campus, received a trademark for their STEM+M .  The CAAL initiative highlights the close relationship between STEM competencies and manufacturing.

In addition to the state of Texas and the city of Seattle, where should current and future manufacturing leaders establish residency?  Looking to the east coast, we note two areas that are prime for manufacturing leaders to capitalize on: Savannah, GA and New Smyrna Beach/Daytona Beach, FL.    Both areas are near international airports, strategic waterways, prestigious educational institutions, and within a two hour drive of the superior health care facilities in Jacksonville, FL.  Savannah is home to Gulfstream Aerospace Corporation, which has developed an elite program for its employees in conjunction with Embry-Riddle Aeronautical University Worldwide Savannah Campus and Embry-Riddle Aeronautical University Daytona Beach Campus.  GulfStream is a strong manufacturing leader in Savannah, and combine that with the fastest growing port in the United States, a diverse economy, and a supportive government, Savannah could possibly become the East Coast’s Seattle.

The commercial real estate in Florida is comparatively cheap, and thus one reason behind the increase in the number of manufacturing companies relocating to New Smyrna Beach/Daytona Beach.  These areas also offer a great deal to residents as they are surrounded by beaches, a short drive to the Orlando Theme Park Scene, and, as with commercial real estate, it is a buyers’ market in the residential sector too.  The city of New Smyrna Beach has several manufacturing companies taking advantage of their strategic location, and is looking to grow this further as it already has facilities available to support manufacturing growth.  Embry-Riddle Aeronautical University Daytona Beach is working with manufacturing leaders to develop a Research Park.

Mr. Phil Zepeda, a real estate expert in Tucson, Arizona notes that, “The housing bubble burst which began in 2006 causing the largest significant correction in the real estate industry since the great depression appears to be in the rear view mirror. Important indicators in the up-tick of the market are data coming from the hardest hit areas in the nation. The steady rise bodes well for commercial real estate developing and planning as it is well known in the industry commercial real estate has historically lagged behind the residential market.”  Expanding on Mr. Zepeda’s statement, employees are the heart and soul of any business, and it is vital for manufacturers to choose a location where family needs are easily fulfilled as well as manufacturing needs.

Manufacturing in the United States is experiencing a rebirth, and we enthusiastically await the amazing growth that both the short-term and long-term hold for the manufacturing industry, and the corresponding real estate markets that welcome and support their manufacturing leaders.

On a United States naval vessel, mimetic isomorphism (conformity through imitation where an organization becomes similar to other organizations and their environments) is apparent on multiple levels within the “ship culture”. As military members work and live closely, they adapt to continual improvement and try to mimic other divisions (mini organizations) within the ship. I have witnessed numerous times where divisions that performed extremely well on command inspections or found a more efficient process of completing maintenance mimicked by other divisions. For example, the operations warfare division discovered a cataloging system for all test equipment that reduced maintenance by 20 percent. The more efficient process was discovered via informal networks and was quickly adopted by all divisions throughout the ship. The standardization of the maintenance by one division quickly defined all organization’s maintenance procedures and as the process spread all divisions felt pressure to change and adopt successful processes.

Normative isomorphism (conforming to ones worldview within an organization) defines the United States military through the culture of “professionalism”. Sailors aboard a United States naval vessel when in liberty ports (overseas stops for rest and relaxation) are directed to maintain a professional appearance even when in an off-duty status. Additionally, professionalism is maintained through uniform inspections, maintenance inspections and division level space inspections to ensure spaces, sailors and equipment is in superb condition. Respect is enforced to all higher-ranking military members through standing and addressing individuals through the proper title. Additionally, job related service and continuing education schools ensure that sailors are maintain proficiency and working with others within the same job community. The professional environment ensures that sailors, including myself, were ready to lend assistance, be prepared to diagnose problems through technical proficiency or fight in any situation.

As we consider the impact of culture in our own organizations, we need to consider the impact that institutional isomorphism plays. Ask a military member if they believe isomorphism exists and they will probably state yes. Does it exist in your organization as well and how can you harness this knowledge to impact your organization and world?

Graduating from West Point in 1907, Arnold learned to fly from Wilbur and Orville’s Wright’s flying school in 1911.  Arnold from early in his career had a vision of a mighty air force for the United States, even in the pre-WWI   era when the U.S. had only a handful of military flying machines. Yet, by the end of WWII, Arnold over the years helped to create the mightiest Air Force in the world, and then set it on course for the world of nuclear weapons, jet aircraft, and ICBMs in the post-WWII era.  Clearly his visions, and subsequent plans and strategies to make those visions real, were tempered by what was technologically feasible—how did he do this in the rapidly changing world of 20^th century aviation technology?

The answer in some ways is simple, yet important to fully comprehend.  Arnold always maintained close contacts with the “thinkers and doers” of aviation and related technologies.  Donald Douglas (Airplane designer/manufacturer) , Elmer and Lawrence Sperry (Avionics Pioneers), Charles Kettering (Chief engineer of General Motors, Orville Wright, and  Theodore von Karman (Aerodynamicist at Cal Tech) were just some of the important figures in aviation and automotive industry who Arnold often turned to for technological advice as he moved up in the chain of command.  His visions of air power in the 20s and 30s—formative years for what was to become the modern U.S. Air Force in the late 1940s—were always tempered and informed by his constant interaction with individuals who were helping to shape that future.

At the end of WWII, understanding the importance of vision coupled to technological reality, he commissioned Von Karman and the then new Air Force Scientific Advisory Group to write a report on possible developments in science and technology that would have a bearing on the developments of the U.S. Air Force that Arnold was about to retire from. That 1946 report, “Towards New Horizons” foresaw systems such as advanced radars, ballistic missiles, and what we would call today, UAVs. In some ways, this multivolume report was Arnold’s legacy to the Air Force, and helped to set the stage for many of the developments that we now know occurred in subsequent decades.   His technological vision over the decades, welded to reality, did lead to “new horizons” for U.S. airpower and aerospace development in general.  Today’s aerospace leaders therefore would be well served by studying Arnold’s example in establishing realistic visions for their organizations in today’s rapidly changing technological world.

Breaking through the educational barriers by focusing on outcome versus grades, there are several STEM+M (Science, Technology, Engineering, Mathematics, and Manufacturing) high schools surfacing across the country.  At the 2012 Aviation, Aeronautics, Industry, and Manufacturing Summit (AAIMS) Joe Lubenstein discussed the part-time academy Greater Hartford Academy of Mathematics and Science that expanded into a full-time grade 6-12 Academy of Aerospace and Engineering.  Mr. Lubenstein is a proven leader in manufacturing, assuming a variety of leadership roles including positions in engineering, finance and manufacturing operations. Currently Mr. Lubenstein is the Director of the Marcum Cronus Partners LLC, and brings this breadth of expertise to The Academy, of which he is also Director.

The Academy forms a much needed partnership between high school science and mathematics courses and industry internships designed to build student aptitude in the areas of Aerospace, Engineering, and Biomedicine, all of which are areas that rely heavily on innovative manufacturing. The Academy continues to impress with its new Windsor Campus opening in Fall 2014.  The Academy successfully combines state-mandatory curriculum with cutting edge educational initiatives to empower its students to become thinking, creative individuals.

The Manufacturing Institute is an extensive organization that encompasses a multitude of manufacturing initiatives, drives innovative manufacturing research, and develops and supports many creative education outreach programs.  Its Board of Trustees consists of the top leaders in manufacturing, giving The Institute an insurmountable amount of strength, as is seen through all its many accomplishments.   Further adding to this is The Manufacturing Institute’s Education Council, which again includes a highly refined group of leaders.  The author strongly suggests readers familiarize themselves with The Manufacturing Institute.

The Manufacturing Institute sponsors “Dream It, Do It” in states all across the country. The “Dream It, Do It” initiative is designed to spread the awareness of the manufacturing industry through national and local activities that are aimed at educating future manufacturing leaders.  Moreover The Manufacturing Institute developed a NAM-Endorsed Skills Certification System designed to train employees to meet the rigorous demands of manufacturing today.  Although results-driven data is not provided on the website, the concept itself is highly laudable as it illuminates the driving force of Manufacturing: Innovation. Finally, The Manufacturing Initiative partners with Project Lead the Way, who provides outstanding curriculum to participating middle schools, high schools, and colleges that is designed to promote creativity and innovation employing the STEM subjects into real-world problem solving.  In June 2012, Project Lead the Way was endorsed by the Kentucky Association of Manufacturers (KAM), in addition to supporting the Manufacturing Institute’s Skills Certification System.

The Manufacturing Industrial Council (MIC) is an exemplary example of the power instilled in unifying diversified leadership under a common vision.  The MIC was formed in 1998 by volunteer’s dedicated to preserving and expanding Seattle’s Industrial business sector.  These volunteers consisted of large manufacturing powers coupled with the family businesses, which are the heart of all great communities.  The powerful drive these volunteers brought to the forefront of Manufacturing has grown extensively over the past 14+ years, and its impressive manufacturing initiatives can be explored here.

The MIC supports several programs designed at raising the bar in Manufacturing Education. First is the Aerospace Joint Apprenticeship Committee that is designed to develop Aerospace Apprenticeship Programs (Way To Go!).  In education the MIC is supporting a new multi-craft construction program at the Puget Sound Skill Center (a technical high school in Burien Washington).  The construction program curriculum was developed by the US Building and Construction Trades Council (be sure to check out the construction math toolkit).  A third initiative is a job training program at South Seattle Community College and the Puget Center.

Although a biased sample, these manufacturing leaders demonstrate there is a new wave of thought within the manufacturing sector: Dreamers and Doers Are Welcome!  I commend these select organizations, and will continue to highlight others in an effort to revitalize our evolving right-brained Manufacturing Industry.

Last November, both the Harvard Business Review and Fast Company magazines had feature articles on the leadership of change.  The Fast Company (http://www.fastcompany.com/3001734/secrets-generation-flux) article focused on individual leaders that the author, Editor Robert Safian, has labeled the “Flux Leader;” members of “Generation Flux.”   In general, members of this generation and its leaders “characteristics are clear: an embrace of adaptability and flexibility; an openness to learning from anywhere; decisiveness tempered by the knowledge that business life today can shift radically” in very short periods of time.  Safian points out that, “Accepted models for success are proving vulnerable, and pressure is building on giants like GE and Nokia, as their historic advantages of scale and efficiency run up against the benefits of agility and quick course corrections.”  Observations such as these have been around for some time.  For instance, Stephan Haeckel’s thoughts on sense and respond organizations and maybe a bit more tangentially the work at the Santa Fe Institute on chaos theory and self organizing systems gave early indications of organizations are facing today.  What is enlightening about the Fast Company article is the range of company leaders as practicing flux leadership.  They range from Cisco Systems, to the U.S. Army to small entrepreneurial firms.

In the Harvard Business Review article, long recognized authority on change leadership John Kotter begins, “Perhaps the greatest challenge business leaders face today is how to stay competitive amid constant turbulence and disruption.”   The tie to Safian’s is clear (to me).  While Safian describes the leaders and the environment, Kotter describes the business reality of established firms.  The need for operating system of managerial processes, standards and traditional hierarchies are necessary to running a company.  He concludes that, “The solution is a second operating system, devoted to the design and implementation of strategy, that uses an agile, network like structure and a very different set of processes.”  These two operating systems function complementary to each other.  In Kotter’s view, having these two work in concert can be a solution to effectively running the current organization while implementing the change strategy.  The shift is from focusing resources on daily operations of doing current business very well to also “constantly seeking competitive advantage without disrupting daily operations.”

Kotter, seems to imply a somewhat new definition of strategy in this age of business turbulence and disruption, “the whole notion of strategy…has to evolve. Strategy should be viewed as a dynamic force that constantly seeks opportunities, identifies initiatives that will capitalize on them, and completes those initiatives swiftly and efficiently.”  Kotter goes on to describe his eight-step method and eight accelerators on which his strategy systems runs.  Much like Safian’s observations are not new, nor are Kotter’s.  The Hammer and Champy’s reengineering movement of the early 1990’s proposes similar approaches and Xerox’s PARC organization is an example from the 1970’s.  What Kotter has done a start of how to better link standard business operations to effective adaption to change.  How they are applied will be particular to each industry and business.

My next blog entry will make some observations on Safian and Kotter observations and approaches related to the aviation and aerospace industry.

And, all the best for a Happy 2013!!

Seattle-Tacoma International Airport (Sea-Tac) clearly recognizes this, and has already begun assuming the role of community leader. Sea-Tac, home of the environmentally and culturally driven Alaska Airlines, embraces its role as a community leader through educational initiatives, economic/property development, and noise pollution control in addition to wet-land conservation and restoration.  Sea-Tac recently partnered with Thanks Again, LLC, unifying the myriad of mileage award programs within airport concessions AND local businesses.  There is no doubt Sea-Tac’s integration of technological advancement and environmental/cultural preservation can serve as a laudable model for other airports.

This impressive community involvement is not unique to large airports.  North Central West Virginia Airport, partnering with the Mid Atlantic Aerospace Complex, is raising funds for four local charities through Choppers for Charities.   Helicopter rides are offered for $10, and larger donations are definitely welcome.

We must encourage more airports to assume leadership roles within their unique community.  Having lived in Atlanta for over five years and frequently traveling there, my love for the city generates my vision of Hartsfield-Jackson Airport as a powerful community leader.  Atlanta is full of luscious culture, innovative growth, and an abundance of diversity that can give rise to future prosperity and strong community spirit through proper leadership and empowerment.  HMS Host, part of the Autogrill Company, the largest food and retail service provider for travelers, donates food to local USO clubs in Atlanta, and established a partnership between Feeding America and Coca-Cola (an Atlanta-based business).  This could be the perfect foundation for Hartsfield-Jackson to build its community outreach program.  Hartsfield-Jackson, as with many other airports, has the opportunity to strategically define its community leadership role, kindling the fire of prosperity waiting to emerge.

Our world is changing at a faster pace with each passing second, providing an unsurpassed amount of information and opportunities to the population.  This will translate into the demand for faster, more affordable travel, creating the perfect opportunity for airports, the gateway to the world, to assume leadership roles that will shape their community for the future.  Airports, I urge you to give back to your communities as the rewards you reap will be tremendous.

Over the period of the past twenty or so years, Indian economic liberalization has allowed the entry of other participants into the airline business, experiencing various degrees of success. At the same time, the Indian government and its states are building airline/airport infrastructure to accommodate the industry.  What is interesting to note is that unlike the United States, where the airline industry developed in sync with aviation technology, in India, the problem is very different. Since airline technology already exists so the aviation industry is being built in a very different manner. Some would say this gives the industry an advantage in that many technological problems have already been solved by the aviation industry in Europe or the United States and can be transferred. That is in fact partially true…and the existence of a Boeing or Airbus series of passenger aircraft does negate the requirement to go through that process of indigenously building and developing commercial aircraft. So, in effect, one might say the learning curve is much steeper in a country like India and therefore progress can be achieved much faster.

However, from a leadership perspective, the issues are much more complex. India does not have a ready reserve of aviation industry people who have grown with the industry. Rather, in many cases its leadership has come from other economic sectors, and is replete with entrepreneurs who are attracted to the idea of flight but have little real aviation experience. Also, the leadership must deal with consumers who are not aviation savvy and an intensely bureaucratic government apparatus which has historically governed all aspects of the industry in a very controlling manner, not to mention global competition. As a result, the Indian aviation industry lacks a solid base of experienced leadership and finds itself in the middle of a highly complex fluid environment. As we all know, aviation is not always a forgiving enterprise, so Indian aviation leaders have much to be cognizant of as they move forward. The best news was that we found these leaders to be highly enthusiastic and motivated to succeed despite the difficult circumstances they find themselves in!

But in a way I am talking about our country’s future, because if we don’t think long-term within our organizations, we won’t have well-functioning, profitable companies with jobs to employ our people.

Our society tends to have a short-term mindset, in ignorance of the distant consequences of today’s decisions.  Short-term thinking is too entrenched in our society and corporations and often, institutional rigidities add to this myopia.

It has become apparent that many of the problems we face today share one common theme: a lack of foresight. We continue to pursue short-term gains at the expense of our long-term well-being.  According to a study from Columbia University, when presented with a cigarette, smokers who were told to envision the long-term consequences of smoking (lung cancer, heart disease, early death) were far more likely to resist the urge to light up than those who were told to imagine the short-term benefits of smoking (it feels good, it’s calming).

The hazards of short-term thinking in business are well understood. Of the recent crises that have shaken companies, markets and even entire economies… many can be traced to decisions made for immediate gain – often for the shameless benefit of individuals… and at the expense of future prosperity.

We need to focus on creating and nurturing a culture of long-term thinking. Strategic planning and goal-setting are part of this. We need to anticipate problems and take measures to head them off.  But long-term thinking isn’t only important in preventing problems, it’s critical for organizations to keep up to speed in this rapidly changing, global competitive environment.  Bill Gates once stated of his early Microsoft days: “There was no near-term thing. It always was this many-decades thing where there were no shortcuts and we’d sort of put one foot in front of the other.”

Managing for the long-term guides the ethics and behavior of both management and employees. Capital markets demand quick returns and quarterly results, but we need to stop rewarding organizations and employees for meeting short-term targets.  We’ve known since Skinner’s pigeons and Pavlov’s dogs that reward shapes behavior.  So what can you do in your position of leadership to help your organization make this shift?

• Strong leadership is needed to model, facilitate, and support a change in the culture and the way of thinking. Culture often echoes management style.
• Create and support practices that enable and prove the benefits of longer-term thinking. Behaviors need to change to really have an impact in changing the culture.
• Spread knowledge of these practices within and among your organization and supply chain.
• Make sure the reward structure reinforces both short and long-term thinking, rather than just short-term.
• Know where your organization is going. What is its mission, values, and long-term goals?
• The aim is to enable the change so that longer-term thinking becomes the norm and policy-makers can set rules that sustain it.