Edition 28 - October 2005

Getting Personal....


Many change management gurus provide a list of things that need to happen in order for the change effort to be successful. Some lists include: ensure management is committed, have a clear vision, move quickly, show improvement rapidly (partly to keep the Doubting Thomases at bay), involve people, even "burn the camp" so there's no 'old' way to go back to. Even with a clear understanding of all the things needed, affecting change is still difficult. There seems to be something missing within the advice so often handed out by us "gurus".

During a recent presentation on strategy development and implementation, the question was asked, "In plain English, how do we make it stick? What is it that the management team can do to ensure the efforts will last?" The questioner refused to accept a rehashing of the "must-do" list saying, "I want to hear the one thing that is the most important, the foundation, the corner stone that makes change management work!" The question was a valid one and eventually prompted this answer, "Make it personal." Making it personal means every employee finds an answer to their "What's in it for me?" question.

One 400-employee plant where this worked had been around for a long time with some having over 30 years of seniority. In desperate need of change, the operation was mired in a lethargic 'this is the way we've always done it' attitude. It became necessary to have the workforce buy into a new direction, a new vision for the company. In a conversation with a particularly resistant employee, the question was asked of him, "Have you ever had a vision?" When he said that he hadn't, he was then asked if he owned his own home. In fact, he did and was quite proud of it, having saved for years to be able to afford it. He described how he and his wife had sacrificed in a number of ways before purchasing this house on the side of a mountain where there was a stream he liked to fish. It dawned on him that his vision had led to him owning the home of his dreams and that his employment had helped make it possible. It became personal to him for the company to succeed so he could continue to enjoy his dream home and that fishing stream. Once it became personal, the changes necessary to ensure the company's success were made with the full support of the work force.

An effort to revitalize a former state-owned enterprise (SOE) in China, a foundry and rolling mill, revealed something similar. Productivity was extremely low, quality was bad, worker motivation was poor, and the housing provided by the company for the workers was worse than anyone could imagine without having seen it first. We decided nothing less than "burning the camp" would be sufficient to bring about the necessary changes. To initiate our Xin De Kai Duan (New Beginning) everyone was fired, the plant was closed, and two weeks of training classes were organized for anyone who wanted to try out for positions in the new company. Less than three-quarters of the old work force made it through the training and was rehired. We also created a housing fund for employees' use to access low cost loans for housing based on such things as performance and loyalty. Within four months, productivity rivaled a sister plant in St Louis, quality improved dramatically, and costs reduced significantly. The difference was we made it personal.

In the late 90's, an SOE was a traditional command and control type of manufacturing environment. But as part of the New Beginning, command and control management in this facility was replaced with team-based. We took a chance on this because we had conducted an aptitude test of the work force and compared it to a similar test given their U.S. counterparts in St Louis. Everyone was surprised when the Chinese scored higher! When they were told the results of the test, the Chinese were proud of their accomplishment and wanted to change their mission from "Being as Good as St Louis" to "Becoming World Class". It became personal for them.

In another situation, a steel fabrication plant with lots of problems, a new shop floor control system and master scheduling process was created by the plant personnel and the production control staff based their understanding of the problems of the old system. Rather than having some new system dictated to them, they were asked to redesign how they wanted to do it. Manufacturing cycle time dropped from 4 weeks to 5 days and on-time deliveries increased dramatically. Having developed it themselves, the shop floor control system became personal. They owned it; they wanted it to succeed.

Too often the knowledge and skills of the work force are under appreciated. Make it personal when change is needed. Long term success comes more naturally when you do.

September 2005 Newsletter

November 2005 Newsletter



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