Reid & Company
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New Job Structure
CULTIVATING A CULTURAL CHANGE IN LEADERSHIP AND EMPLOYEE ENGAGEMENT SETS BENCHMARK IN INCREASED PRODUCTIVITY
The transformation into a new state of the art plant required a culture change from top down hierarchal control to highly engaged employee teams. The success of the new plant depended on highly skilled operators to troubleshoot and make cross-functional decisions. The 50+ year tradition of union versus management adversarial relationship dominated the culture of the small coexisting community. Workforce skills limited to functional silos, with open disrespect between the shop floor and management that hampered change.
We conducted leadership skill assessments and feedback sessions, developed a future vision of leadership, identified and engaged leader-employees with influence on organizational teams. Facilitated the groundwork the teams developed and implemented to focus on communication, training, organizational design and leadership steering.
The site received recognition as the most successful new plan startup that surpassed capacity within three years. In addition, this plant set the benchmark for fostering a culture of engaging employee ownership and future leader development.
TALENT ACQUISITION, SKILL DEVELOPMENT AND INCREASED ALIGNMENT DRIVES IMPROVEMENT IN BOTTOM LINE RESULTS
Company was dealing with low customer satisfaction due to missing ship dates, long lead-times and frequent quality issues; individual quarterly sales targets missed on a consistent basis.
There was a lack of accountability and product knowledge among the key account managers. Three business units consolidated into one business so the Sales Reps resisted servicing accounts of product outside their prior portfolio. This led to misalignment, frustration and poor communication between the global commercial team, management and operations. Perception among the commercial team was that "Corporate Leaders" didn't know what they were doing, and vice-versa.
We helped develop, hired and integrated a team of Field Application Engineers for all territories globally. Using the RACI Model, met collectively with all key leaders to align communication, responsibilities and accountability. Implemented a global sales compensation plan targeting key objectives. Restructured customer support to become sales operations with new leadership. Facilitated a Leadership Assimilation session for all commercial leaders.
Efforts resulted in higher customer satisfaction which in turn drove achievement of quarterly revenue targets leading to stabilized demand and manufacturing stability.
BUSINESS CONSOLIDATION, RESTRUCTURING AND ORGANIZATIONAL CHANGE IMPROVES THE BOTTOM LINE
The company consisted of three separate product line based business units. Each unit possessed functional groups competing for resources. Overall business performance and the interrelationship between each business unit was declining. The business leaders and support staff grew territorial and frequently took action to prevent change. The former president of the company departed, leaving high suspicions and lack of trust among the top leaders for the new president and the company.
We worked one-on-one with the exiting executives in consolidating the three business units into one while establishing amicable separations for those impacted. Identified internal and external leadership talent and worked with functional managers to establish teams supporting cross-product needs. Assembled a group of application specialists to provide hands-on technical services for the client while working directly with the key account sales managers to increase ownership and accountability.
Leveraged business acumen along with interpersonal, coaching and leadership skill to facilitate a 40% boost in EBITA and a 25% jump in revenue over three years.
EFFECTIVE SITE CLOSURE PLAN, CHANGE MANAGEMENT AND EMPLOYEE OWNERSHIP RESULTS IN RECORD-BREAKING PRODUCTIVITY
The company's construction of a new manufacturing facility within the same geographic area meant the closure for an older plant. All employers had concerns amid the rumors of a site shutdown. On the eve of announcing the closure and executing the closing plan, the company learned of a construction issue delaying completion by 18 months. All stakeholders and employees had already received notification of the meetings and expected the announcement. The existing site would need to continue production and exceed current capacity for up to two years. The early exit of skilled workers including the site plant manager, operations and maintenance manager along with the volatility of the situation hindered action.
We developed and deployed a closure plan involving all key stakeholders across the company, the community and the union. Assembled leaders and conducted a risk analysis of the plan. Eliminated communication barriers with union leadership by using an all-hands-on-deck approach of continuing operations. Identified internal talent to promote into higher decision-making positions. Included a retention incentive to keep skilled technicians and facilitated transparent communication meetings to mitigate insecurity. Installed contract labor for key maintenance support roles.
The plant exceeded manufacturing volume for twelve months and set numerous record-breaking months. The company successfully closed the plant with no incident or gap in productivity.
IMPROVEMENT IN LEADERSHIP EFFECTIVENESS AND EMPLOYEE DEVELOPMENT ELIMINATES HIGH TURNOVER
After two company buyouts, the company experienced a 38+% employee turnover rate and a 65% leadership turnover rate for a period of three years. Nearly half the operators on the team had less than one year of service with the company. The senior leadership group stood unstable at every tier of the organization, the majority of employees on the floor lacked training and or the self-discipline required to adhere to standard operating procedures. The workforce required adequate supervision as three supervisory positions remained vacant. An FDA inspection resulted in a 483 untitled letter.
We conducted performance evaluations of all leaders, resulting in a new position as director of quality. As a main interim leader of the company, analyzed the job structure and compensation program, executed a new strategy to enhance career opportunities and advancement for operators. Instituted leadership competencies and hired qualified candidates to fill the vacant general manager, director and manager positions. Set skill competencies for operators and established a more stringent pre-hire screening process.
Within six months, filled all the job openings and reduced employee turnover to less than 10% in 18 months by building cultural awareness and providing extensive planning, communication and collaboration.
RESTRUCTURING, TALENT RETENTION AND NEW ORGANIZATION STRUCTURE CUTS COSTS AND IMPROVES PERFORMANCE
The business unit completed its fifth quarter of negative growth experiencing a decline after a significant investment into facilities. Two new senior leaders came on board to change the direction of the company. Existing leaders in each business imposed significant influence and strong alliances with respective consumers and suppliers. The prospective impact of the leaders was substantial if they attempted to build personal business interests while undermining the company.
We collaborated with the president and company leaders to develop one consolidated leadership team. Worked one-on-one with current staff and executives on role changes and negotiating cordial separation agreements while identifying and promoting hidden talent in key functions. Added new leaders into sales, R&D, marketing, customer service and operations. The new leadership team aligned with common goals to propel a new business strategy in a larger market segment.
As a result, the business halted stagnant growth by increasing sales 15% at 25% margins with a net reduction of $11 million in annual payroll costs.