Manufacturing Plant-High Performance Strategies
Participative Management Design Improves a Multi-Production Facility
The Situation
QuietFlex Manufacturing had a problem. Productivity and morale needed to be improved, and one department was in conflict amongst themselves and with the company. Meetings were disintegrating into arguments over emotional issues, rather than yielding constructive discussions toward solving production problems and improving the workplace. Workers tended to bring nonspecific complaints to management, making resolution difficult, even though CEO Dan Daniel's priority was to create a thriving work environment. These miscommunications caused workers in one department to question their confidence in the company's leadership.
The Task
Mr. Daniel wanted to help the QuietFlex Manufacturing employees be satisfied and challenged in their jobs, and feel important to the company's overall success. He needed a way to "shift the focus from emotional issues to factual issues that I could do something about," and hoped to "increase the production rate and decrease the amount of physical labor so our employees felt that the job had more value." QuietFlex Manufacturing needed to move quickly to continue competitive production, and make plans to avoid a recurrence of the situation. Mr. Daniel wanted to bring everyone together around a set of common goals, reduce stress and physical labor, and find new ways to solve problems into the future.
Mr. Daniel had attended a Caridas Consulting International (CCI) workshop about using Participative Management Design to build individual involvement in company success, "It was a good seminar for strategic executives, but I initially questioned how well it would work on the plant floor." He contacted CCI to tailor a program for QuietFlex. Mr. Daniel sought an approach in which all stakeholders could win. He valued the talents and skills of his people and wanted to bring out those strengths to build internal capability. He knew CCI specialized in improving performance and productivity through people. The task was to improve the quantity and quality of production, increase morale, and improve communications to manage problems effectively over the long term.
Implementation
Mr. Daniel was eager for solutions that would work for everyone at QuietFlex Manufacturing. He had been intrigued by CCI's participative management strategies, and knew that such an approach made sense for his company. The best solutions arise from the daily needs of work, and the best-informed people are those who are doing the work. Participative Design calls for change in the location of responsibility, so the people doing the work initiate the changes. People are encouraged to be self-managing, though not autonomous. Managers provide redesign guidelines, so that everyone contributes to the process and develops reasonable expectations for change. Mr. Daniel was eager to see how Participative Management could both address the employees' needs and improve the bottom line at QuietFlex Manufacturing.
The company's initial Participative Design sessions lasted two days for each shift. Caridas Consulting helped participants define and evaluate their current work process and make suggestions for improvement. Certain features of the production process were not flexible; Caridas Consulting got the group to focus positively on what could be changed. Initially, Participative Management Redesign sessions were difficult because people were not convinced there would be any real change. As they saw their suggestions being implemented, people began to improve their productivity and commitment to the company, as well as their own expectations and morale. Plans created within this collaborative framework earned the commitment of everyone on board. People were eager to implement the plans of their own making. They became innovative problem-solvers, and as issues arose, they found the initiative to create solutions. Caridas Consulting conducts Participative Management follow-up sessions with each area every six months.
CCI recognized that positive business results could not be sustained and company-wide improvements would not be complete without guaranteeing their successful delivery. QuietFlex management realized they needed to improve employee relations immediately. Enhanced communication and conflict resolution skills have made the workplace conducive to the introduction and execution of new ideas. Now QuietFlex keeps employee relations strong by helping managers be quality communicators. Caridas Consulting consultants helped managers develop:
- basic communication skills, with an emphasis on genuineness, positive regard, and empathy
- conflict prevention and resolution skills
Immediate feedback from top managers shows these skills gives them a sense of interdependent control and improves their relations with employees. The managers are eager to further develop their communication skills and build on their initial accomplishments.
After a Successful Intervention
Mr. Daniel reports the situation at QuietFlex has dramatically improved. Workers in one department have been able to increase production from 2500 lbs per hour to 4000 lbs, and continue to progress. In the meantime, scrap and reject have been reduced dramatically. Safety has greatly improved, since the work redesign. People's ability to participate has greatly improved the speed and quality of production. Mr. Daniel says the people at all levels of QuietFlex are pleased with the results. There are "more pounds being pushed out the door, and we redesigned the pay structure so there are incentives to reduce scrap and waste further, and improve product quality. Employee earnings are already up by 30%. Our employees can produce more and not be as tired." The business results have been decisive and continue to improve.