TL;DR: I learned SQDC the hard way at GM–first under cost- and throughput-obsessed leadership, then from a NUMMI-trained plant manager who showed me why safety and quality must come first if you want performance (and cost) to truly improve.
Two Plant Managers, Two Management Systems
Thirty years ago, I was fresh out of college and working at General Motors. That sentence makes me feel old–but the lesson still matters.
Early in my GM career, I worked under two very different plant managers. The contrast between them shaped how I think about leadership, Lean, and continuous improvement to this day.
When Cost, Quantity, and Throughput Ruled Everything
My first plant manager was a very traditional GM “leader.”
The priorities were clear and unambiguous:
- Cost
- Quantity
- Throughput
Meet the numbers. Do whatever it takes. Push the line. Worry about quality later.
And sure enough, quality did suffer. Problems were worked around instead of fixed. People learned quickly what really mattered–and what didn't. Safety and quality were discussed, but they were never truly leading priorities.
What Changed When a NUMMI-Trained Leader Arrived
Then came my second plant manager: Larry Spiegel.
Larry had been trained at NUMMI, the famous joint venture between GM and Toyota. Read more about (and listen to) his NUMMI experiences via this NPR story.
And everything changed.
Learning SQDC From a Leader Who Lived It
Larry Spiegel introduced me to SQDC: Safety, Quality, Delivery, Cost–not as a poster or a slogan, but as a way of thinking and leading.
This wasn't theoretical. It showed up in daily conversations, decisions, and tradeoffs. Safety truly came first. Quality problems were treated as system failures, not worker failures. Delivery mattered, but not at the expense of people or product. And cost?
Cost mattered–but it was clearly understood as an outcome, not a lever to pull.
That was my first real exposure to what Toyota–and NUMMI–were doing differently.
Read more about what another Larry–the CEO of GE Aerospace, Larry Culp–says about SQDC.
Cost Is a Result, Not a Strategy (Short Video)
I recently discussed this exact lesson–why cost is a result, not a strategy–on THE Podcaster Nation with Rory Paquette. This short clip captures the core idea.
What NUMMI–and Toyota–Got Right About Performance
Through NUMMI, Toyota showed GM that production performance wasn't about pressure, heroics, or cost-cutting campaigns. It was about building a management system that supported:
- Safe work
- Built-in quality
- Stable, reliable processes
- Respect for people
Cost was never ignored. But Toyota didn't lead with cost.
They led with systems and people development.
And when those things improved, costs followed.
The Predictable Damage of Cost-First Leadership
Here's the trap I saw early–and still see today:
When leaders chase cost first, they often undermine the very things that create sustainable performance.
- Safety incidents get underreported.
- Quality issues get hidden or deferred.
- People stop speaking up–if they ever were.
- Learning slows down.
Short-term numbers might look better–for a while. But the organization eventually pays for it in rework, recalls, turnover, burnout, and lost trust.
I've seen this same dynamic play out far beyond manufacturing–including healthcare.
Why This Lesson Still Matters in 2026–Especially in Healthcare
In healthcare, the stakes are even higher.
When organizations lead with cost-cutting, they don't just risk inefficiency–they risk patient harm, staff burnout, and the erosion of psychological safety–if it was ever there. People stop reporting problems. Near-misses go unspoken. Improvement becomes performative instead of real.
Just like in that first GM plant, the message is clear–even if unspoken:
“Hit the numbers. Don't rock the boat.”
And just like at NUMMI, the alternative still works.
The Leadership Discipline to Not Lead With Cost
Looking back, the biggest lesson from my GM days isn't that cost doesn't matter.
Larry Spiegel showed me that real leadership means resisting the urge to start with the financial outcome and instead focusing on the practices that produce it.
In 2026, that lesson feels more relevant than ever.
When leaders build systems that support safety, quality, psychological safety, and continuous improvement, cost takes care of itself.
I've seen it happen.
A Lesson That Followed Me Beyond GM
I didn't just observe this pattern–I lived it.
Cost-first leadership produced fragile results and predictable failures. Leading with safety, quality, and delivery produced learning, engagement, and sustained performance–including better financial outcomes. That lesson has followed me from GM to healthcare and everywhere in between.
And it's still one many leaders are relearning the hard way.
If this lesson resonates, you might also be interested in these related reflections on leadership, Lean, and continuous improvement:
Related Reflections on Lean Leadership and SQDC
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If you’re working to build a culture where people feel safe to speak up, solve problems, and improve every day, I’d be glad to help. Let’s talk about how to strengthen Psychological Safety and Continuous Improvement in your organization.
