 Key Recommendations Turn Around Failing Project
Assumed management for key project that was failing. Employees working on project had felt no commitment to meet project’s goals.
Met with project's contributors and stakeholders. Presented recommendations for change to Vice President accountable for project. Recommendations included new project structure and recruiting promotable Line Manager as Project Leader who would stake future with company on project’s success. Vice President authorized recommendations.
Project yielded important changes to drug development process, and Project Leader advanced career.
Analysis & Diagnosis Rebound Company to Prosperity
Flexible packaging company’s startup was in serious difficulty because do-it-yourself organization design gave too much responsibility to new employees. As a result, company was nearing shutdown and had significant safety issues.
Davis Group previously installed successful socio-technical design in another division of Grupo Cinsa. Managers attempted to copy features of design but did not understand that process was just as important as result.
Created comprehensive diagnosis detailing what had gone wrong and why, recommending solutions. Created implementation plan that would result in gradual increases in responsibilities once teams demonstrated abilities to work at interim levels.
Company returned to profitability and safe operation conditions. Implemented training and advancement system that complemented pay for skill and knowledge.
Company Exceeds NASA Requirements as Result of Redesign
Company needed to reduce costs and raise productivity to meet new NASA guidelines. Instead of six engines a year at $40 million each, they needed to make fifteen engines a year at $25 million each. Paperwork, delays, and excess queuing time created cost overruns.
Collaborated with Consultant and ran organizational diagnosis and revealed that engines crossing departmental boundaries generated delays and cost overruns. Helped union-management design team create cross-functional business units that controlled services needed to produce engines.
Company boosted productivity 100-125% and cut costs 40%, exceeding NASA requirements. Company won NASA Quality Award for innovative organization design.
Innovative Organization Design Significantly Diminishes Employee Turnover
PVC pipe company suffered 150% turnover rate and 15% on-time delivery rate. Senior management advocated building of new high-performance plant with design that could be retrofitted.
Company's three production departments had little communication. Logistics department was responsible for delivery and wanted to maintain status. Analysis revealed that turnover rate was due to lack of advancement.
Managed union-management design team that developed innovative design. One team controlled all three production processes and took over deliveries. Sales and team were in direct contact, and estimated costs and delivery date became stretch goals for team.
Organization was cost-effective and customer-oriented. Team saved 20% in operational costs. New plant had 60% on-time delivery rate within six months. Employees received pay based on skills, open advancement, bonus systems, and participation in plant’s management decisions.
Team Participation Optimizes New-Hire Process
Organization needed to double in size due to increased demand and size of distribution area. Company’s standard recruitment and selection procedures did not comply with philosophy of team participation.
Team members and managers designed recruitment and selection procedure. Initial advertisement for recruitment would stress organization’s participative philosophy. Selection process included panel interviews by current team members.
On-boarding of new employees was rapid and successful. Within six months, plant was operating below national industry average for butterfat loss.
Teambuilding Session Increases Trust
Maintenance managers on division-level steering committee were reluctant to cooperate with redesign, and work proceeded slowly. Maintenance managers were causing conflict.
Maintenance department managed program that delegated maintenance responsibilities and planned to offer consulting services to outside companies. Department saw redesign effort as barrier to plans. Led teambuilding session for division-level steering committee and convinced maintenance managers to request program prioritization by company’s president.
President and direct reports determined that pre-existing programs be folded into redesign effort, which sent message that redesign was company’s top priority.
Collaborative Effort Resolves Conflicts
Skilled technicians with management responsibilities were reluctant to delegate responsibility to newly created level of team managers. Group was concerned with ability of team managers to assume responsibilities and that they would be blamed for problems.
Separated each level into forums and requested list of mutual obligations necessary for safe delegation. Collaborated with both sides to create master list. Both groups agreed to regular meetings to monitor compliance.
Joint meeting facilitated problem solving and ensured plant operations. Forum meetings allowed for team and operational improvement. Conflicts were resolved quickly and did not affect operations.
"Train the Trainer" Saves Millions of Dollars in Consulting Fees
Company faced training effort for organization of 13,000 employees. Company traditionally avoided off-site consultants and was reluctant to pay large fees to external training company whose off-the-shelf program might not fit specific training needs.
Created "train the trainer" system for managers. Wrote training manual and led several sessions until internal consultants could take over program.
By becoming trainers, managers learned about training and managing in new, participative environment. Management credited this experience as leading to their success in changing from traditional supervisors to team leaders. “Train the trainer” program saved millions in consulting fees and ultimately led to company winning Baldrige Award, the highest award for quality given annually to one company.
Problem-Solving Training Boosts Productivity
Steering committee scheduled problem-solving training and statistical process-control training for newly created teams late in implementation process to allow employees time to adapt to team operation.
Newly structured teams became eager to solve problems and requested problem-solving and statistical process control training immediately.
Problem solving became principal activity of teams, resulting in 20% increase in productivity with no new technology and no headcount reduction.
Evaluation Provides Systemic Solution
Company was undergoing large-scale organizational change effort. Certain managers with key technical skills were reluctant to delegate responsibilities due to worries about status with company.
Helped managers analyze jobs and created evaluation system that both offered incentives to delegate and opportunities to increase their value to company. Facilitated approval from senior management for system implementation.
Each management level received higher levels of responsibility. Reduced downtime 30% because more employees had more knowledge and ability to solve problems.
Coaching Method Facilitates Successful Implementation
Participative philosophy was adopted by bakery managers, yet implementation was not proceeding as quickly as desired. Obstacle appeared to be at supervisory level.
Union leaders challenged senior management, communicating that shop floor workers did not trust their commitment to participative philosophy. Recommended coaching to help senior managers earn trust of shop floor. Helped managers “walk the talk.”
Significantly improved union-management relationship. Facilitated smooth implementation.
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