Leadership, Laughter, and Lean: How a CEO’s Shaved Head Symbolized $7 Million in Improvement

The blog post

In this episode of the Lean Blog Audio podcast, Mark Graban shares a story that perfectly captures the human side of Lean leadership—how a CEO’s shaved head became a powerful symbol of trust, empowerment, and respect for people.

At IU Health Goshen Hospital, Lean wasn’t just a set of tools; it was a cultural transformation. Starting in 1998, their staff-driven improvement program generated over $30 million in savings by 2012. But one moment in 2009 stood out: CEO James Dague’s promise to shave his head if employees could achieve $3.5 million in improvement savings. They didn’t just hit the goal—they doubled it.

That public act of humility wasn’t about theatrics. It represented a deep cultural shift where improvement was owned by staff, not dictated from above. For more than 17 years, Goshen avoided layoffs, reinforcing psychological safety and building a workforce that trusted leadership enough to take risks, speak up, and continuously improve.

Mark reflects on what organizations everywhere can learn from Goshen’s story:

• How leadership visibility builds credibility

• Why psychological safety drives real innovation

• And how celebrating small wins every day sustains a culture of improvement

Lean isn’t about tools—it’s about people. And sometimes, it’s about hair.

Listen and reflect on what your leaders might do to show their true commitment to continuous improvement.