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November 07 Businessexcellence 1 Editor’sletter EDITORIAL Editor In Chief Martin Ashcroft editorial@infinity-mediallc.com DESIGN Production/Creative Director Zachary Smith design@infinity-medialllc.com PUBLISHERS Business Directors Andy Kerr Andy Turner info@infinity-mediallc.com BUSINESS Director of Editorial Research Scott Mason smason@infinity-mediallc.com Sales Managers Sean Brett sbrett@infinity-mediallc.com Jim Coughlin jcoughlin@infinity-mediallc.com Administration & Operations Kathy Toomey ktoomey@infinity-mediallc.com Subscriptions info@infinity-mediallc.com Infinity Media LLC 100 Cummings Center Suite 243C Beverly, MA 01915 Tel: 978 232 9284 Fax: 978 560 0999 www.bizexmag.com Businessexcellence ACHIEVING When I started editing business magazines ten years ago, change management was a hot topic. We wrote mostly about manufacturing in those days, as that was where the biggest changes were happening. People had begun to notice The Toyota Production System (TPS) and a new generation of management consultants was eager to promote it. Toyota’s lean journey has been a long one, sixty years and counting, but its use as a model for others is relatively recent. Executives punch drunk on cost reducing management fads were understandably skeptical. But as early adopters started to demonstrate startling results, lean spread like wildfire throughout manufacturing, and, I am delighted to say, is now creeping into other sectors of the economy. This is why the publishers of this magazine have broadened their scope to reach out to healthcare, construction, resources, law, finance, and other service industries which are beginning to realize they can use the principles of lean just the same as manufacturers can. We congratulate anyone in a service industry who has decided to implement the lean philosophy in their organization, but it’s a long journey, not a quick fix. Don’t expect it to be easy; and don’t expect to achieve anything without engaging everyone in your workforce. Lean is not just about tools; it’s a way of life, and it involves a huge cultural change. As Andrew Ball of Webcor Builders told me: “Getting people to change and implement new procedures is the greatest battle. They don’t want to change. When people are used to doing something in a certain way, it falls back on the managers.” And that, dear reader, means you. Fortunately, you are not alone. Some of your contemporaries are right now implementing continuous improvement in the search for business excellence, and they tell us their stories in this magazine. By the time this issue lands on your desk our new website will be fully operational, so you can also read them online at www.bus-ex.com. Allchange

2 Businessexcellence November 07 Opinion 4 Leading in lean Anand Sharma outlines what a group of CEOs learned from a boot camp on leading a lean transformation. Cover story 6 People, planet, profit How the concept of sustainable development, or the triple bottom line, affects business in North America. Strategic management 10 The language of management The fifth of six articles on integrated business management explains the integrated reconciliation review. Customer focus 14 Ahead of the puck The partnership culture at Schupan & Sons helps the business by helping the customer. Infrastructure 18 Age matters Manufacturing CEOs are getting younger, and are consequently more switched on to marketing. Technip Claremont 22 Get cracking Technology, safety and continuous improvement produce the best ethylene crackers in the world. Wells’ Dairy 40 Top three target This family-owned dairy processor sets its sights on top three national brand status in the US. The Weitz Company 48 Building excellence With a tradition longer than most in the industry, Weitz is still a pioneer in construction. Beck Technology 53 Joined up construction An in-house multi-dimensional software tool allows all parties to see the potential of a building project. W.G. Mills 58 Managing the risk Using the model of construction management at risk avoids adversarial relationships. Turner Construction 61 Seeking challenges The Arlington, Virginia office brings complex building projects to completion on time and on budget. Webcor Builders 66 Construction changes Pioneering change in the construction industry through building information modeling. K.O.O. Construction 70 From the ground up A story of self-motivation and determination results in the American Dream for Keith Odister. Wellington West Capital The secret sauce Shared ownership, entrepreneurial flair, and female executives are a recipe for success. First Nickel First people Poised for growth in nickel exploration and extraction with a philosophy that puts people first. BHP Billiton Cold comfort An aspirational goal to bring zero harm to employees, communities and the environment. Features 22 6 14 77 73 81