The Power of Leadership Presence

In the ever-evolving landscape of organizational success, productivity and continuous improvement stand as critical pillars. These elements are not solely driven by advanced technologies or streamlined processes but are significantly influenced by the leadership approach and the culture set by the top management. A powerful strategy that has shown remarkable results involves the top management performing productive visits and follow-ups with employees on the shop floor. My intention with this article is to provide my humble insight about how important is for an organization growth that leaders engage with their employees no matter in which industry or business they are, and introducing you into the myriad benefits of this approach, framed within -what I consider- key leadership concepts that underscore the importance of top management’s presence and engagement.

The Importance of Really “Being There”

Breaking Down Abstractions with Genchi, Genbutsu, Gennin

In many organizations, a gap often exists between the top management and the frontline employees. This gap, which could be described as an “abstraction”, can lead to miscommunications and a lack of understanding about challenges faced by employees and, more importantly, an inability to fully grasp how top management decisions affect the rest of the organization. The “abstraction” concept highlights how leaders can become disconnected from the realities of their workforce.

The concepts of?Genchi, Genbutsu, Gennin—often translated as “actual place, actual thing, and actual understanding “—are vital for breaking down leadership abstractions. These principles encourage leaders to leave their offices and engage directly with the operational realities on the shop floor.

I’ve been introduced to the genchi, genbutsu, gennin (3-G) concept very early in my professional career while I was working for a Japanese automotive company called DENSO, however, I have to say that I didn’t fully understand the real meaning and the correct implementation of the 3-G till a later phase when I started to be involved in decision making rocesses. At that point, I realized how important is that people that it is not involved in the decision making process understand this concept in order to help and support leaders in making informed decisions by real-world insights, leading to more effective problem-solving through root cause analysis?and a deeper connection between leadership and the workforce. This hands-on approach eliminates the disconnect often caused by abstract (absent) management and helps fostering a culture of transparency, continuous improvement and trust.

That last element, trust, is a foundational element in any successful organization, it allows teams to work safely towards a common goal. Sounds beautiful, but it is very hard to achieve and very easy to lose. Trust is something that you cannot achieve neither by default nor in a short period. Imagine we meet for the very first time and I say to you “you have to trust me” it is going to be difficult to you right? Trust needs to be build by what I like to call consistency-of-behaviors.

When employees see their leaders taking an active (and consistent) interest in their work, it builds trust. Leaders who spend time on the shop floor demonstrate that they value their employees’ contributions and are committed to understanding their challenges and successes. This visible commitment can significantly boost employee morale, as it shows that the top management is not distant and detached but is instead deeply invested in the team’s well-being and success.

Enhancing Communication

Let’s face it, when a person from the top management is walking around and asking questions on the shop floor, it can be intimidating for someone who doesn’t understand the purpose of his or her visit. Here is where communication becomes a key factor. Again, beautiful, but needs to be practice right. Leaders need to make sure that employees know that the aim of their visits not judging or pointing fingers but gathering a better understanding of a specific situation in which process employee input is essential.

When top management practices 3-G, it opens up direct lines of communication. Employees feel more comfortable sharing their ideas, concerns, and feedback when they see that their leaders are approachable and engaged. This two-way communication channel helps in identifying problems early, generating appropriate solutions, and ensuring that everyone is aligned with the organization’s goals.

Genchi, genbutsu, gennin is very powerful and it will help for sure with improving productivity, building trust and enhancing communication, as long as it is implemented thoroughly and consistently; just showing up for the photo won’t do the trick.

The Impact on Productivity

Real-Time (and better) Problem Solving

One of the most immediate benefits of top management’s presence on the shop floor is the ability to address issues in real time. When leaders are on the ground, they can observe workflows, identify bottlenecks, and collaborate with employees to find swift solutions.

Moreover, when dealing with matters directly at the shop floor, leaders can make correct judgements and give appropriate instructions based on facts that they can directly observe. This contrasts with decisions that result from meeting room-based discussions, whereby management is at risk of being provided with a distorted version of the facts based on the convenience of those reporting the situation – the result being that inappropriate countermeasures are implemented that do not address the true root cause of an issue.

As a consultant, while I was working on a project implementing lean in the mining industry, I witnessed a meeting where supervisors were explaining a situation to their manager, I could tell… the manager was trusting 100% what the supervisors were explaining to him, which is good of course, but incomplete. I couldn’t help myself and I spoke up suggesting the manager to go with the supervisors to the place where the situation was developing, not to judge (or maybe yes) the veracity of the arguments, but to have a broader and first-hand understanding of the situation. In fact, just for the fact of the manager being there he was able to pick up health and safety concerns that needed to be addressed together (or before) with the operational aspect presented by the supervidors. This is only one of the many examples that show how a hands-on approach helps with having a comprehensive understanding of the situations leading to improve operational efficiency and boosting productivity.

When employees see their leaders actively participating in their work environment, it encourages a sense of ownership and accountability. Knowing that their efforts are being directly observed and valued by top management, drives employees to own and be accountable for the information that helps them to manage the processes they are responsible for. This increases the awareness of the employees about the current status of their processes and put them in a better position to react on time when abnormalities occur which drives higher productivity levels.

During a recent lean study trip to Japan, I learned about “the Hawthorne effect”, which describe the importance of leadership presence in boosting productivity. It reveals that employees tend to improve their performance when they feel observed and valued by their leaders.

While this effect was detected only by observing employees while some conditions in their environment were changed (more details in the text box below) it is important to note that when we talk about “observing”, we are not talking about the eye of Big Brother (or Sauron), judging from a distance; rather, we are talking about “active observation” which involves really getting involved in the situation, being willing to receive feedback and making decisions based on the inputs received. This behavior is what will generate a sustained increase in productivity.

Leaders who regularly interact with their teams and show interest in their work can harness the Hawthorne effect, creating a more motivated and productive workforce. By demonstrating that their efforts are observed, recognized and appreciated, leaders can drive continuous improvement and higher levels of organizational performance.

The Hawthorne effect?refers to a phenomenon where individuals modify an aspect of their behavior in response to their awareness of being observed. It originated from a series of studies conducted at the Western Electric Hawthorne Works in Cicero, Illinois, during the 1920s and 1930s. Researchers investigated how workplace conditions, such as lighting and work hours, affected employee productivity. They found that any change, even a return to the original conditions, resulted in productivity increases. Workers’ performance tended to improve simply because they knew they were being observed, regardless of the specific changes in the environment or experimental manipulations.        

Fostering a Culture of Continuous Improvement

Inspiring, Rewarding and Learning

A continuous improvement culture thrives on the willingness to embrace change. When top management is present and engaged, it signals to employees that participation is valued and encouraged. Leaders can inspire creativity by actively seeking input from their teams, recognizing innovative ideas, and providing the resources needed to make these ideas real. This proactive approach fosters an environment where continuous improvement is not just a goal but a core part of the organizational culture.

As said, leadership presence on the shop floor leads the employees to participate and be part of the continuous improvement process. At some point an employee may ask “What’s in it for me?” which could be interpreted as a mean question but, (although no-one ask) I believe the organization has to be ready for properly answer it, mainly to those that are doing the extra mile and putting extra energy in thinking how to improve.?Error! Filename not specified. Rewarding employees is crucial for leadership in fostering a culture of continuous improvement.

Recognizing and celebrating employee contributions reinforces desired behaviors, motivating individuals to strive for excellence. It signals that the organization values participation and effort, which encourages employees to actively seek out and implement improvements. Rewards, whether financial, professional development opportunities, or public acknowledgment, create a positive feedback loop. This not only boosts morale and engagement but also cultivates a resilient, proactive workforce dedicated to ongoing enhancement and success. Effective rewards demonstrate leadership’s commitment to valuing and investing in its people, driving sustained organizational growth.

Learning from Failures

A famous inventor once said something like “I have not failed to achieve it, I have succeeded in finding a way not to achieve it” and a famous scientist said “genius is 1% inspiration and 99% perspiration” which for terrenal people like me means “sometimes you are going to fail, keep trying”. When encouraging and empowering employees to improve their processes, even if they use the correct lean tools, there is a change that the outcome will not be as expected. Leaders need be prepared for this and continue motivating and supporting employees. This is crucial for leadership when working on fostering a culture of continuous improvement as it transforms setbacks into valuable opportunities for growth. When leaders openly analyze and discuss failures, they encourage transparency and resilience within the team. This approach demystifies mistakes, reducing fear and promoting a mindset that values learning and innovation. By treating failures as stepping stones rather than obstacles, leaders inspire their teams to experiment, take calculated risks, and continuously seek better ways of working, ultimately driving sustained progress and improvement across the organization.

Steps for Practical Implementation

• Schedule Regular Visits

To reap the benefits of productive shop floor visits, top management should schedule regular visits to different areas of the organization. These visits should be consistent and frequent enough to make a meaningful impact, but not so frequent that they disrupt daily operations. A well-planned schedule ensures that leaders can engage with a diverse range of employees and processes.

• Be Prepared and Engaged

When visiting the shop floor, leaders should come prepared with an understanding of the current operations and any ongoing issues. Actively listen to employees, ask insightful questions, and show genuine interest in their work or situation is very important. This level of engagement demonstrates respect and builds trust, making employees more willing to share their insights and feedback.

• Follow Up and Take Action

One of the most important aspects of good leadership, regardless the topic, is follow-up. After each visit, top management should compile a list of actionable items based on their observations and employee feedback. They should communicate these actions to the relevant teams and ensure that they are implemented effectively. Regular follow-ups show that leaders are committed to continuous improvement and are willing to take concrete steps to address issues and implement positive changes.

Conclusion

During my professional career I’ve been fortunate enough to work in very diverse environments and experience different types of management behaviours from which I learned (sometimes in the hard way) that direct engagement of top management with the shop floor stands as a powerful catalyst for both productivity and continuous improvement. This approach breaks down the barriers of abstraction, ensuring that leaders remain connected to the challenges and dynamics of their workforce. By fostering trust, enhancing communication, and promoting a culture where innovation is valued and supported, leadership presence becomes a cornerstone for sustainable growth.

When leaders step out of their offices and immerse themselves in the operational realities of their teams, they not only gain invaluable insights but also inspire a sense of solidarity and shared purpose. This direct involvement helps with problem solving, encouraging ownership and accountability among employees, and leveraging phenomena like the Hawthorne effect to boost productivity. Furthermore, a hands-on leadership approach demystifies mistakes, fostering a learning environment where failures are viewed as opportunities for growth and participation is actively encouraged.

Practical steps such as scheduling regular visits, engaging deeply during these visits, and following up on observations and feedback are essential for maximizing the benefits of leadership presence. These actions demonstrate a genuine commitment to the workforce and the organization’s continuous improvement journey.

Ultimately, the power of leadership presence lies in its ability to transform organizational culture. It bridges the gap between strategic decisions and day-to-day operations, creating a more cohesive, responsive, and innovative organization. As leaders build trust, enhance communication, and nurture a culture of continuous improvement, they pave the way for sustained success and a resilient, motivated workforce dedicated to achieving excellence.

Have you really been there?… See you on the shop floor.