Five Years

As I started to compile this issue of The CEO Partner I noted that this is the fifty-ninth such issue and I was immediately taken with the fact that I have been fortunate enough to have been of assistance to a wide variety of partners for more than the five years that this series represents. In fact, 2010 will be our 20th year as J.E. Mittler & Company. So, a sincere THANK YOU!

I just completed a small survey for Industry Week that was soliciting opinions on how we expect the manufacturing environment to change over the next three years. It was an interesting exercise, I think, because it got me to thinking not only about the future, but also about all of the changes we have experienced in the recent past.

MSN just recently published an article on the sixteen biggest milestones in the evolution of the laptop PC from the original concept thru the suitcase models of the 80’s to today’s notebooks, handheld devices, and smart phones. Then there is the information I glean from the MIT newsletter about new technologies like the nanotechnology memory systems and new solar panel designs being created with ink jet printers.

How do all these ramblings relate to our operations? I believe all of these disparate events highlight the fact that change is not only inevitable but desirable which means we need to plan to maximize our performance in an ever changing workplace.

To cope with this upcoming turmoil there are two areas where we need to concentrate our attention – systems and people. Certainly we need to insure that our systems – manufacturing, accounting, planning, logistics, and the like – are consistent with the latest and greatest standards and most advanced technology but, more importantly, we need to insure that our employees are prepared to cope with these pending changes too.

What do I mean? Generally speaking, I know that our employees are the one variable in the business equation that is responsible for the success or stagnation of our enterprise. I believe we have all observed projects that seemed impossible executed flawlessly because of the employees involved. Likewise, I know that we have also seen programs that seemed to be no-brainers fail miserably because the employees responsible did not believe in the importance of that effort or did not want it to succeed. The interesting fact about undertakings that have failed is the fact that you will never be able to identify any one individual or event that was responsible for the failure, yet the process failed.

So, even in these trying economic times I believe that we need to continue to emphasize the education of our employees. And by education, I do not mean just technical education. Certainly they need to be educated and prepared for the new systems and equipment that is being implemented, but they also need to be prepared for the challenges of the ever changing workplace.

Some areas to consider are problem-solving, risk-taking, collaboration, questioning, and ownership. Basically, how do we make every employee an owner? Jack Stack did it by teaching all of his employees how to read a balance sheet, publishing weekly financial performance data, and then asking employees not only what problems they saw, but also what actions they recommended to fix the problem. Their performance soared.

Jim Rainey did it, in part, by listening to employees, publishing all of the information about company operations, and eliciting their ideas and input. This resulted in a Two Hundred and Fifty Million ($250,000,000) first year turnaround in operations and an additional five years of consistently improving results. Unfortunately his successor did not share his belief in the importance of people to profits and the company no longer exists having been taken over by competitors just a few years after Jim’s retirement.

I think the interesting point, and one that is often overlooked, is the fact that empowering employees does not have to be an expense or expensive. The popular press today is constantly talking about “talent management,” “engagement,” and “ownership” as keys to improved performance and these are all conditions that can be created by simply “managing by walking around.” Get out there and listen to your employees – ask them what concerns them (both at work and at home) and then what suggestions they have to make their job better.

WAIT A MINUTE – WHAT AM I SAYING? Obviously you need to call your friendly neighborhood consultant so he or she can help you identify the core issue or issues impacting your employee productivity and performance and then develop and implement a plan to address those issues and enhance overall performance.

Change starts with you and “walking around” is probably a very good first step, but like trying to turn a elephant in a bathtub we are all prone to slipping back into our long-established and routine way of doing things. So, like the task with the elephant, change requires that we implement new practices or procedures and then constantly reinforce the new action. One example might be to ask employees for their suggested solution and then wait for their suggestion. The reinforcement could be “smacking our hand” every time we become impatient and start to tell the employee what we know the answer to be.

Then there are your managers and supervisors – they too have long-established habits that will also need to be changed if your new management style and new level of employee ownership is going to become a reality. Likewise, if you decide to embark on this journey to employee engagement or ownership you should be advised that at some point the employees are going to question “why” you do certain things. For example they might ask “why do you need to buy/lease a new car each year, why can’t you drive it for two or three years like the rest of us?” If you don’t feel that you will be able to accept an employee question like this, maybe you are not ready to undertake this journey.

As suggested, the move to an engaged workforce is a journey and not a destination or event that can be executed on command. I do not believe that any of the “100 Best Places to Work” became so by simply deciding that they wanted to be that. No, it took time and consistent application of new ways of doing things until one day they awoke and they were “One of the 100 Best Places to Work.” If you believe that an improvement in your performance is possible should you consider taking the first step to an engaged workforce?

While I personally think that improvement is possible for 99% of all companies I also believe that having an engaged workforce and a participative workplace will make working much more enjoyable and profitable. Who would not prefer to go to a job where his or her opinion is not only solicited but also considered and respected to the alternative of going to he or she is told to “shut-up and do what you are told?” So, is it time to start on your personal journey?


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