MIKE  JETT  
Vice  President  /  Plant  Manager    
  Honda  Precision  Parts  of  Georgia  
Full  Circle  Group  Case  Study:     (HPPG)  
 
The  Leadership   Responsibilities  
• Manufacturing  of  Automatic  
Challenge  at  Honda   Transmissions  for  Honda  
November  2014   Vehicles  
  • Assembly  and  Test    
• Manufacturing  Engineering  
AN  INTERVIEW  WITH  MIKE  JETT  OF     • Product  Quality  
HONDA  PRECISION  PARTS  OF  GEORGIA    
  LEADERSHIP  TEAM  IMPACT  
In  spring  2006  production  began  at  the  new  Honda  Precision  
Parts  of  Georgia  (HPPG),  a  250,000-­‐square-­‐foot  transmission   • PRODUCTIVITY  has  increased  
manufacturing  facility  in  Tallapoosa,  Georgia.  The  $100  million   about  8  percent  
facility  supports  production  of  Honda  vehicles.  With  production   • SAFETY  –  the  incidence  of  injury  
underway,  it  became  clear  that  as  Honda  increased  its   rate  has  dropped  9  to  6  to  0.5,  
investment  in  its  North  American  operations,  there  was  a   the  lowest  in  the  company  
parallel  need  for  significant  investment  in  its  North  American  
• QUALITY,  specifically  the  
leadership.  The  case  study  that  follows  describes  one  leader’s  
customer  complaint  measure  -­‐  
ongoing  journey  in  this  process.  
setting  company  and  industry  
 
records,  going  from  90  to  19  
• EMPLOYEE  RETENTION  –  2+  
years  ago,  in  2012,  attrition  was  
close  to  17  percent,  meaning  we  
were  losing  17  percent  of  our  
manpower  annually.  Now  we  are  
hovering  around  6  percent  and  
moving  toward  our  goal  of  3  
percent  
 The  Leadership  Challenge  at  Honda  |  Case  Study  

THE  LEADERSHIP  CHALLENGE  AT  HONDA  

 
Bob  Anderson,  co-­‐founder  of  Full  Circle  Group,  shares  his  insights  about  the  challenge  faced  by  
Honda  when  it  transferred  leadership  of  several  major  brands  to  its  operations  in  North  America.  
 
As  business  leaders  most  of  us  are  at  a  level  of  complexity  where  we  are  in  over  our  heads.  And  
if  we’re  not  evolving  at  the  pace  of  escalating  complexity,  we’re  becoming  irrelevant.  That’s  
the  adaptive  pressure  that’s  on  us  right  now.  There’s  an  adaptive  pressure  in  the  complexity  
and  the  pace  of  change  that’s  saying,  be  creative  or  die.    If  we  don’t  evolve  our  ways  of  being  
and  of  leading  individually  and  collectively,  we’re  handicapped  in  terms  of  competing  in  
business.    At  some  level,  when  teams  understand  this  fact  of  business  life,  they  say,  “Okay,  
we’re  in.    We  have  to  do  this.”    
 
The  best  companies  see  that  leadership  is  a  strategic  imperative;  and  we  need  to  treat  it  that  
way.  It’s  the  central  organizing  system.  It  defines  the  future,  sets  the  culture,  and  creates  the  
strategy.  If  it’s  not  functioning  effectively,  we’re  not  effective  as  an  organization,  and  business  
performance  suffers.  It’s  an  exciting  time  because  right  at  the  center  of  it  is  consciousness.  
We’re  starting  to  connect  consciousness  and  awareness  with  business  performance  in  a  way  that  
has  never  done  before—and  leaders  get  the  argument.  
 
For  example,  take  Honda.  Traditionally  Honda  had  most,  if  not  all,  of  the  leadership  and  
decision-­‐making  come  out  of  Japan.  They  realized  they  can’t  do  that  anymore.    They  have  to  
grow  an  internal,  international  leadership  team.    So  in  the  U.S.,  a  major  business  market,  
they’re  transferring  leadership  for  a  lot  of  the  major  brands  to  North  America—and  these  folks  
have  never  been  asked  to  lead  before,  only  to  follow.  
 
So,  Honda  North  America  faces  a  huge  leadership  challenge,  and  Honda  Japan  gets  that  the  
organization  must  make  this  transition  or  it  can’t  thrive  as  it  has  in  the  past.  Honda’s  share  of  
market  has  gone  down  in  recent  years.  So  they’re  in  recovery  now,  and  it’s  exciting  to  be  in  the  
middle  of  it.  The  effectiveness  of  Honda’s  leadership  is  at  the  center  of  it,  and  they  get  it.  The  
folks  here  in  North  America  say,  “This  has  to  work  because  we  don’t  have  any  choice.”    
 
   

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 The  Leadership  Challenge  at  Honda  |  Case  Study  

ONE  LEADER’S  PERSPECTIVE  

 
Mike  Jett  of  Honda  Precision  Parts  of  Georgia  shared  his  experience  of  being  on  the  leadership  
development  journey  at  Honda.  

Mike  Jett  has  been  the  VP/Plant  Manager  for  HPPG  since  2009.    His  responsibilities  include  
manufacturing  of  automatic  transmissions  for  Honda  vehicles,  assembly  and  test,  
manufacturing  engineering,  and  product  quality.  HPPG  is  a  high  volume  facility  consisting  of  
about  650  associates.  Mike  provides  daily  management  for  materials  management,  process  
engineering,  quality  systems,  purchasing,  human  resources,  finance,  and  information  
technology.  He  provides  direct  management  for  the  achievement  of  Safety,  Quality,  and  
Production  targets.  He  is  responsible  for  Associate  Recruitment,  Hiring,  Development,  Growth,  
and  Retention.  Mike  has  worked  for  31  years  in  manufacturing  management,  specializing  in  
strategic  planning  and  manufacturing  characteristic  improvement  and  division  manager  of  
corporate  planning  and  senior  manager  for  Honda  of  America  Mfg.,  Inc.      
 
What  is  your  vision  at  Honda?  
 
We  see  The  Power  of  Dreams  as  a  way  of  thinking  that  guides  us  and  inspires  us  to  move  
forward.  The  strength  of  our  company  comes  from  this  philosophy—based  on  the  visionary  
principles  of  our  founder,  Soichiro  Honda.  In  fact,  Honda  is  a  company  built  on  dreams.  In  
October  1946,  Soichiro  Honda  established  the  Honda  Technical  Research  Institute  in  
Hamamatsu,  Japan,  to  develop  and  produce  small  2-­‐cycle  motorbike  engines.  Two  years  later,  
Honda  Motor  Company,  Ltd.,  was  born  and  in  1959  Honda  opened  its  first  storefront  in  Los  
Angeles  with  six  industrious  employees  with  big  dreams  to  expand  operations  in  America.    
These  dreams  inspire  us  to  create  innovative  products  that  enhance  human  mobility  and  
benefit  society.  
 
What  is  Honda’s  commitment  to  economic  growth  in  North  America?  
 
Our  success  in  the  global  marketplace  is  the  result  of  our  continued  investment  in  America’s  
future.  We  challenge  ourselves  to  create  new  products  and  services  that  bring  value  to  our  
customers  and  society.  As  the  first  Japanese  automaker  to  build  motor  vehicles  in  the  United  
States,  Honda  is  proud  to  invest  in  America—its  economy  and  its  people.  Honda's  
contributions  to  the  processes  of  manufacturing  and  design  have  helped  to  improve  the  NA  
automotive  industry,  as  well  as  others.    
     
We  opened  our  first  U.S.  plant  in  1979  and  have  evolved  into  a  company  that  directly  employs  
nearly  25,000  Americans.  More  than  100,000  workers  are  employed  at  authorized  Honda  
automobile,  motorcycle  and  power-­‐equipment  dealerships  in  North  America.  Tens  of  
thousands  of  additional  Americans  are  employed  by  more  than  nearly  600  U.S.  suppliers  from  
which  Honda  purchases  parts  and  materials.  Honda  is  proud  to  provide  jobs  that  help  better  
the  North  American  economy.  

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 The  Leadership  Challenge  at  Honda  |  Case  Study  

 
Following  an  operational  strategy  of  building  products  close  to  our  customers,  Honda  has  
invested  $2  billion  into  its  U.S.  manufacturing  plants  since  2011,  bringing  Honda’s  total  U.S.  
capital  investment  to  $15.3  billion.  About  94%  of  Honda  and  Acura  vehicles  sold  in  the  U.S.  in  
2013  were  manufactured  in  North  America,  the  highest  percentage  of  any  international  
automaker.    
 
 
WORKING  WITH  FULL  CIRCLE  GROUP  
 
When  and  how  did  you  start  working  Full  Circle  Group?      

I  started  working  with  FCG  in  May  2012.  It’s  a  journey  that  never  ends.  I  used  to  think  that  I  was  
a  good  leader,  until  I  began  the  journey.  FCG  and  the  Leadership  Circle  Profile  (LCP)  helped  me  
see  my  strengths  and  weaknesses.    Once  I  realized  where  I  was,  I  set  goals  to  get  where  I  
wanted  to  go  and  identify  what  characteristics  I  needed  to  develop.    
 
In  May  2012  I  participated  in  a  week-­‐long  Honda  Leadership  Summit  (HLS),  and  the  FCG  
Leadership  Circle  Profile  was  the  primary  feedback  link  with  instructors.    We  had  several  
follow-­‐up  sessions.    Since  that  time,  we  have  aggressively  applied  what  we  learned  to  our  
operations  here.  We  have  also  had  three  other  senior  managers  on  my  team  go  through  the  
training.    
 
And  what  was  their  experience?    
 
The  experience  was  very  positive,  both  in  terms  of  what  we  learned  and  how  we  applied  what  
we  learned,  and  the  results  achieved.  If  you  looked  at  my  leadership  team  before  the  HLS  
training,  working  the  FCG,  getting  feedback,  and  working  through  modules,  you  would  see  
that  our  management  approach  was  very  regimented.  Now  if  you  asked  my  team  what  is  most  
important,  you  would  find  that  it’s  serving  the  people  we  work  with—developing  and  
maintaining  relationships  of  trust  with  them.  Our  relationships  now  are  so  much  deeper  than  
before.    
 
What  has  been  the  impact  on  the  business?    
 
I  can’t  say  that  all  HPPG  improvement  results  are  directly  attributable  to  the  FCG/HLS  
experience,  but  I  can  say  that  we  could  not  have  achieved  such  positive  results  so  quickly  
without  the  experience.  I  can  tell  you  that  the  FCG  leadership  approach  leads  to  exponential  
gains,  not  just  incremental  gains.    In  fact,  in  every  category  of  our  business,  we’ve  seen  similar  
gains  over  the  past  two  years.  Here  are  just  four  indicators:  
 

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 The  Leadership  Challenge  at  Honda  |  Case  Study  

First,  our  productivity  has  increased  about  8  percent.  Our  ability  to  exceed  production  
expectations  is  measured  on  operating  efficiency  (assembly  run  rate).  We  were  averaging  
about  88  percent;  now  we  average  96  percent.      
 
Second,  in  the  area  of  safety,  the  incidence  of  injury  rate  has  dropped  9  to  6  to  0.5,  the  lowest  
in  the  company.    
   
Third,  in  the  area  of  quality,  specifically  the  customer  complaint  measure,  in  terms  of  what  we  
deliver  to  the  other  Honda  plants,  we  are  setting  company  and  industry  records,  going  from  90  
to  19.    
   
And  in  the  area  of  employee  retention,  the  retention  of  our  engineering  workforce,  we  have  
seen  the  biggest  improvement.  Two  or  three  years  ago,  the  leadership  team  was  not  doing  a  
very  good  job  of  communicating  and  developing  relationships  with  our  younger  engineers.  
Attrition  was  close  to  17  percent,  meaning  we  were  losing  17  percent  of  our  manpower  
annually.  Now  we  are  hovering  around  6  percent  and  moving  toward  our  goal  of  3  percent.    So,  
we  have  made  incredible  gains  in  the  retention  area,  and  those  gains  impact  every  area  of  the  
operation.      
 
What  changes  are  you  and  your  leadership  team  now  making?    
 
We  are  now  trying  to  accelerate  culture  change—from  a  reactive  to  a  creative  style—from  a  
focus  on  problems/threats  and  fear/reactions,  to  a  focus  on  purpose/vision  and  passion/action.  
FCG  helped  us  start  the  journey  (it  never  ends)  by  first  identifying  three  prevailing  reactive  
leadership  characteristics:  1)  Controlling:  defined  as  leadership  by  personal  achievement  
(autocratic);  2)  Protecting:  defined  as  protecting  self  by  withdrawal,  distance,  superiority  
(ambitious/arrogant);  and  3)  Complying:  defined  as  achieving  self-­‐worth  and  security  by  
complying  with  expectations  of  others  (pleasing).  They  helped  us  see  that  by  applying  what  we  
learned  to  increase  our  skills  and  capabilities,  we  also  increase  our  contributions  and  
fulfillment,  with  less  waste  of  energy  and  resources.    
 
How  are  you  developing  your  leadership  at  HPPG?    
 
FCG  has  helped  us  develop  creative  leadership  competencies—to  become  fully  integrated,  to  
grow  from  reactive  to  creative  leaders—in  five  areas:  1)  Relating:  defined  as  a  leader’s  ability  to  
relate  to  others  and  contribute  to  their  success;  2)  Self-­‐awareness:  defined  as  leadership  
development  through  the  expression  of  high  integrity  leadership;  3)  Authenticity:    defined  as  
leader  relationships  through  genuine,  authentic,  and  courageous  relating;  4)  Systems  
awareness:  defined  as  how  well  the  leader  recognizes  the  whole  environmental  system,  
productivity,  and  community  welfare;  and  5)  Achieving:    defined  as  the  extent  to  which  a  leader  
offers  visionary,  authentic,  high  achievement  leadership.  
 
Why  are  you  making  these  changes?  

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 The  Leadership  Challenge  at  Honda  |  Case  Study  

 
We  now  know  that  the  way  we  used  to  respond  to  problems  was  wrong.  When  we  were  
trapped  in  the  vicious  cycle  of  Problem-­‐Reacting  (Problem/threat  to  Fear  to  Reactions)  our  
typical  response  to  threats  and  fears  was  emotional  and  occasionally  hostile.  Emotions  ran  
high,  and  the  end  result  was  much  frustration.    
 
To  create  the  culture  we  want  to  establish,  we  had  to  transcend  the  reactive  styles  and  practice  
outcome  creating:  vision/purpose  to  passion  to  actions.  Our  focus  now  is  on  building  
relationships,  and  helping  others  to  realize  that  we  are  all  one  team  and  we  can  rely  on  each  
other  when  times  are  challenging.          
 
What  do  you  see  as  your  next  steps?  
 
I  have  identified  three  next  steps:  1)  Expand  what  we  learn  as  individuals  and  strengthen  how  
we  interact  with  others,  and  do  so  with  increased  empathy;  2)  Increase  fulfillment  of  “The  
Three  Joys”  (the  joy  of  producing,  the  joy  of  selling,  and  the  joy  of  buying)  from  product  
creation  through  lifetime  owner  loyalty  through  end  of  life;  and  3)  Integrate  the  Honda  
philosophy  and  much  more  to  strengthen  leadership  across  North  America  and  achieve  our  
Ideal  Image.  
 
What  has  been  the  impact  on  your  management/leadership  team?      
 
Again,  I  can’t  say  that  all  positive  results  are  related  to  FCG/HLS,  but  I  can  say  that  due  to  what  
we  have  learned  and  applied,  I  can  sense  a  positive  culture  change,  especially  in  the  
management  team  relationships—they  are  much  deeper  than  they  have  ever  been.    Our  
division  managers  now  understand  that  it’s  not  about  you  being  the  boss—it’s  about  them,  
about  their  growth  and  development.  You  can  lead  more  effectively  by  understanding  and  
serving  others.    Now  our  associates  see  that  the  leadership  team  is  not  about  top-­‐down  
control,  but  about  a  servant-­‐leadership  approach—about  caring  for  them,  their  learning,  
growth,  and  development.    
 
How  has  the  FCG  Leadership  Circle  Profile  experience  changed  you  personally?  
   
While  I  can’t  attribute  any  single  result  wholly  and  specifically  to  this  training,  I  can  say  that  the  
positive  changes  in  me,  and  in  our  culture  and  business  performance,  come  as  a  result  of  
everything  that  FCG  brought  to  the  table—their  holistic  (whole  systems)  approach  to  change,  
the  entire  package.    In  the  beginning,  at  least  for  me,  the  FCG/HLS  experience  was  really  about  
learning  more  about  myself  as  a  manager  and  leader,  receiving  the  LCP  feedback,  and  
understanding  that  if  I  wanted  to  see  change  in  our  team  and  company,  I  needed  to  change  
first.  I  was  then  motivated  to  get  more  of  my  leadership  team  through  that  FCG  process  so  
they  would  understand  how  I  was  trying  to  change  and  why  we  needed  to  change  as  a  team.  
 

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 The  Leadership  Challenge  at  Honda  |  Case  Study  

Do  you  feel  that  you  now  have  a  critical  mass  of  people  who  have  experienced  the  FCG  
process  so  that  the  positive  changes  can  be  sustained?  
   
We  are  close  to  having  that  critical  mass.  So  far,  four  of  us  have  experienced  the  process,  and  
three  more  members  of  my  leadership  team  are  slated  to  go  through  it.  Having  four  of  us  has  
definitely  led  to  deeper  discussions  on  core  issues,  and  we  act  differently  on  those  issues  (not  
just  react  to  them).  We  are  now  trying  to  cascade  it  down  to  the  rest  of  the  organization.  So  we  
have  been  developing  modules  for  discussion.  In  our  monthly  leadership  meetings,  I  take  one  
module  topic  and  turn  it  into  a  30-­‐minute  discussion—on  being  vulnerable  or  on  being  
extraordinary,  for  example—because  I  don’t  want  to  lose  the  momentum  we  have  established  
over  the  last  two  years.  
 
How  has  the  FCG  Leadership  Circle  Profile  helped  you  grow  as  a  leader?  
 
Before  receiving  the  results  of  my  first  profile,  I  was  very  confident,  even  cocky,  in  my  
management  capabilities.  When  I  received  my  LCP  results,  I  think  I  cried  for  a  week.  I  can  laugh  
about  it  now  because  my  second  one  was  100  percent  better  (the  second  one  was  what  I  
wanted  the  first  one  to  be).  I  didn’t  realize  how  bad  I  was  as  a  manager  until  I  got  the  results  of  
my  first  LCP.  But  I  learned  from  it.  In  fact,  I  kept  my  first  LCP  on  my  desk  for  well  over  a  year.  I  
would  come  in  early  every  morning,  and  I  would  look  at  it.  That  helped  drive  the  things  I  
wanted  to  change  because  I  didn’t  want  to  be  the  person  that  the  LCP  said  I  was.    
 
What  is  it  about  the  LCP  that  drives  such  meaningful  change?  
   
The  LCP  is  very  descriptive  of  the  characteristics  you  now  have  and  very  prescriptive  of  what  
you  should  aspire  to  be.  It  first  gives  you  a  comprehensive  understanding  of  where  you  are.  
And  then  based  on  the  feedback  from  your  leaders  and  subordinates,  it  shows  you  modules  for  
change.    
   
When  I  shared  the  material  with  my  team  and  showed  them  my  LCP  results,  they  were  able  to  
give  me  examples  of  my  behavior.  Even  though  this  hit  home  hard,  those  discussions  were  
extremely  positive.  It  led  to  many  courageous  discussions.  So  I  took  that  feedback  and  put  
together  a  plan  for  how  I  would  change.  For  example,  I’m  a  very  controlling  person—it  is  hard  
for  me  to  let  go.  I’ve  really  had  to  force  myself  to  let  go.  And  what  I’ve  seen  is  that  the  more  I  
let  go,  the  more  responsibility  and  accountability  the  division  managers  below  me  take.    So  
when  there  is  a  crisis  situation,  instead  of  jumping  in  and  taking  control  as  the  leader,  I  am  
letting  my  leadership  team  do  that.  That  was  really  hard  for  me  to  do  in  the  beginning.  But  I  
see  them  take  more  responsibility  and  accountability  on  themselves  to  lead  in  those  situations.  
So  it  has  made  a  big  difference  in  me  personally  and  in  my  leadership  team.  And  you  can  see  
the  difference  in  our  business,  in  the  quality  of  our  products  and  the  productivity  of  the  plant—
all  our  business  characteristics  have  improved  significantly.    We  can  continue  to  improve—that  
is  a  core  philosophy  of  Honda.  But  Deloitte  came  in  here  recently  with  the  idea  they  could  help  
us  improve,  and  after  seeing  the  performance  measures,  they  said,  “We  can’t  help  you.”    

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 The  Leadership  Challenge  at  Honda  |  Case  Study  

 
How  has  it  been  to  work  with  Full  Circle  Group?  
   
I  can’t  say  enough  good  things  about  FCG,  about  Bill  Adams  and  Bob  Anderson  and  the  team.    
They  are  very  encouraging,  very  inspirational.  I  told  Bill.  “I’ve  worked  at  Honda  for  31  years—25  
years  in  some  management  position.  I  just  wish  that  I  had  received  this  training  25  years  ago.”  
They  are  outstanding  to  work  with.  I’ve  learned  a  lot.  They  are  very  good  at  explaining  the  
what,  how,  and  why  of  change.      
 
 
 

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