Newsletter 50

As the sage said; "If you know where you are going, it doesn't matter where you start." The best and fastest way to develop your company's culture: start where you are.

You can use an event in any of these management areas to improve your company's culture. Start where you are, with opportunities that present themselves. Here are some examples where my clients used opportunities they had in the first three management areas.

a) Managers in this manufacturing plant decided to replace a packaging machine. As the design neared completion the plant manager asked the design engineers to meet with the machine operators and get their input. Over several meetings the operators' input modified the design, adding a raised platform with handrails around the machine, so operators had better access to controls.

Plant Manager; "We had never had participation on such a major financial decision. The operators were very impressed and pleased to be involved. Following this involvement the operators decided to train themselves on the equipment before it arrived. The resulting startup cost savings were large, and the more user-friendly design increased the efficiencies we had expected from the machine."

b) In a professional services company the Managing Partner used the purchase of a new copy machine as an opportunity to bring employees together to discuss their needs and choose a copier. "It would have been simpler for me to decide, but I realized it was an opportunity to build participation and teamwork. Everyone is pleased with the result."

c) At a community market garden the Nursery Manager asked members to help her install a new sprinkler system. She purchased specialized equipment at an irrigation supply store, leaving what could be bought from a local hardware store for the members; everyone helped with the installation. "I could have done it all myself but this way got everybody involved (and saved me time). I knew they would enjoy it."

a) The employees in a quality control Lab, frustrated by conflicting directives from various supervisors, decided to write a procedures manual. They wrote it during slow times over 18 months, involved all Lab employees, and touched base regularly with supervisors. The comprehensive manual generated agreement among all supervisors on best practices. Lab Manager; "The lab technicians solved their own immediate frustrations and strengthened teamwork across the lab and between employees and managers. Morale and productivity is at an all-time high."

b) In one manufacturing plant the production line operators, frustrated by hangups in the production process, decided to analyze and correct the myriad small problems plaguing the line. Doing this required reaching out to almost all other departments and to many of the outside companies supplying components. Upper management was very supportive of the operators' undertaking. Over two years the production line's productivity doubled and product loss fell to almost zero.

c) To strengthen the supply chain, a director invited representative managers from all areas of the retail giant to meet and make improvements. The initial meetings, while ostensibly focused on system improvements, were really a stressful jockeying among the attending managers for position, power, and control. Just as the TV theme song says, "Love and Marriage, Love and Marriage; Go together like a horse and carriage"; so it is with system-wide issues. You can't talk about system issues without talking about power (or, for that matter, about any of the other five management areas).

Competitive Department managers may feel threatened by any topic they interpret as challenging their autonomy. But improving company systems requires cooperation, not competition. By gently smoothing ruffled feathers, this director managed to get many interdepartmental problems on the table for resolution. This process opened up the supply chain for rapid and continuous improvement.

a) In a chemical manufacturing plant, as part of a plant-wide effort to increase participation, the department managers agreed that, in a plant emergency, they would act as "available resources", rather than their usual "take-command-and-control" role. During the next emergency the department managers were at the scene, but stood to the side, handing complete control to the designated Emergency Response Team.

For the department managers this took much self-control, but it had a powerful effect on everyone in the plant. By their behavior the managers clearly stated; "We trust you; we want you to take control of your jobs and to see us as coaches and consultants." This was one of several management changes that led to significantly improved employee morale and plant productivity.

b) In a transportation company, managers decided to invite truck drivers to the monthly financial review meeting. The truck drivers were very excited at receiving the new information, and asked to be invited to future meetings. Managers were surprised and impressed at the drivers' enthusiasm. They had not realized how much employees longed to understand the financial aspects of their work. The managers decided to invite other previously excluded groups to the financial reviews. These "outside" participants gradually morphed the financial reviews meetings into broad based business and financial planning sessions; to the great benefit of everyone, and the company's bottom line.

As I mention above, when you open the door to discuss any of the five areas of management, you cannot keep the other four areas out of the room. For example; a discussion of equipment invariably involves (directly or indirectly), questions about operating systems, authority and economics, communications, and values.

This can be a problem; for example when a manager feels that employee participation in an equipment decision challenges their authority as a manager. On the other hand it is a lot safer (and less threatening) to discuss equipment than it is to directly approach issues around authority and power. The beauty of choosing opportunities from the first two levels (Equipment and Systems) is that they can indirectly ease into--and thereby reduce or solve--problems of Power and Communications, without directly confronting these often sensitive areas.

Next month I will discuss the two most complex management areas--Communication and Experience.

The electronics giant Best Buy is tailoring its stores to better meet local, specific customer requirements identified through analysis of individual store sales. In addition to unique remodels of each store, the company is training employees to listen more carefully to customer needs, and respond by offering a wider range of services, such as home visits, planning, and installation. By improving the quality of the customers' and the employees' experiences, sales are up and turnover is down (25%) in the first wave of converted stores. from: Financial Times, Monday October 31, 2005 , Business Life, p5.

If you would like to discuss your own work situation, please email me, Barry Phegan, Ph.D. barry@meridiangrp.net

Barry Phegan

2. Buy the book Developing Your Company Culture; a 187 page toolkit of practical information and examples. Click on http://www.amazon.com/exec/obidos/tg/detail/-/0964220504



	Site Map \| FAQ \| Search A Better Workplace — Meridian Group's Newsletter, Number 50, 11-15-05 _________________________________________
	"All Roads Lead to Rome" As the sage said; "If you know where you are going, it doesn't matter where you start." The best and fastest way to develop your company's culture: start where you are. In our last newsletter (http://www.meridiangrp.net/articles/Number49.html) we talked about the five distinct areas of management: 1. Equipment: hardware, technology. 2. Systems: operating processes, software, efficiency. 3. Competition: power, controls, information, profits. 4. Communications: teamwork, relationships, win-win. 5. Experience: feelings, values, attitudes, involvement, commitment. You can use an event in any of these management areas to improve your company's culture. Start where you are, with opportunities that present themselves. Here are some examples where my clients used opportunities they had in the first three management areas. 1. Equipment a) Managers in this manufacturing plant decided to replace a packaging machine. As the design neared completion the plant manager asked the design engineers to meet with the machine operators and get their input. Over several meetings the operators' input modified the design, adding a raised platform with handrails around the machine, so operators had better access to controls. Plant Manager; "We had never had participation on such a major financial decision. The operators were very impressed and pleased to be involved. Following this involvement the operators decided to train themselves on the equipment before it arrived. The resulting startup cost savings were large, and the more user-friendly design increased the efficiencies we had expected from the machine." b) In a professional services company the Managing Partner used the purchase of a new copy machine as an opportunity to bring employees together to discuss their needs and choose a copier. "It would have been simpler for me to decide, but I realized it was an opportunity to build participation and teamwork. Everyone is pleased with the result." c) At a community market garden the Nursery Manager asked members to help her install a new sprinkler system. She purchased specialized equipment at an irrigation supply store, leaving what could be bought from a local hardware store for the members; everyone helped with the installation. "I could have done it all myself but this way got everybody involved (and saved me time). I knew they would enjoy it." 2. Systems a) The employees in a quality control Lab, frustrated by conflicting directives from various supervisors, decided to write a procedures manual. They wrote it during slow times over 18 months, involved all Lab employees, and touched base regularly with supervisors. The comprehensive manual generated agreement among all supervisors on best practices. Lab Manager; "The lab technicians solved their own immediate frustrations and strengthened teamwork across the lab and between employees and managers. Morale and productivity is at an all-time high." b) In one manufacturing plant the production line operators, frustrated by hangups in the production process, decided to analyze and correct the myriad small problems plaguing the line. Doing this required reaching out to almost all other departments and to many of the outside companies supplying components. Upper management was very supportive of the operators' undertaking. Over two years the production line's productivity doubled and product loss fell to almost zero. c) To strengthen the supply chain, a director invited representative managers from all areas of the retail giant to meet and make improvements. The initial meetings, while ostensibly focused on system improvements, were really a stressful jockeying among the attending managers for position, power, and control. Just as the TV theme song says, "Love and Marriage, Love and Marriage; Go together like a horse and carriage"; so it is with system-wide issues. You can't talk about system issues without talking about power (or, for that matter, about any of the other five management areas). Competitive Department managers may feel threatened by any topic they interpret as challenging their autonomy. But improving company systems requires cooperation, not competition. By gently smoothing ruffled feathers, this director managed to get many interdepartmental problems on the table for resolution. This process opened up the supply chain for rapid and continuous improvement. 3. Competition; Power; Economics a) In a chemical manufacturing plant, as part of a plant-wide effort to increase participation, the department managers agreed that, in a plant emergency, they would act as "available resources", rather than their usual "take-command-and-control" role. During the next emergency the department managers were at the scene, but stood to the side, handing complete control to the designated Emergency Response Team. For the department managers this took much self-control, but it had a powerful effect on everyone in the plant. By their behavior the managers clearly stated; "We trust you; we want you to take control of your jobs and to see us as coaches and consultants." This was one of several management changes that led to significantly improved employee morale and plant productivity. b) In a transportation company, managers decided to invite truck drivers to the monthly financial review meeting. The truck drivers were very excited at receiving the new information, and asked to be invited to future meetings. Managers were surprised and impressed at the drivers' enthusiasm. They had not realized how much employees longed to understand the financial aspects of their work. The managers decided to invite other previously excluded groups to the financial reviews. These "outside" participants gradually morphed the financial reviews meetings into broad based business and financial planning sessions; to the great benefit of everyone, and the company's bottom line. "You Can't Have One Without the Other." As I mention above, when you open the door to discuss any of the five areas of management, you cannot keep the other four areas out of the room. For example; a discussion of equipment invariably involves (directly or indirectly), questions about operating systems, authority and economics, communications, and values. This can be a problem; for example when a manager feels that employee participation in an equipment decision challenges their authority as a manager. On the other hand it is a lot safer (and less threatening) to discuss equipment than it is to directly approach issues around authority and power. The beauty of choosing opportunities from the first two levels (Equipment and Systems) is that they can indirectly ease into--and thereby reduce or solve--problems of Power and Communications, without directly confronting these often sensitive areas. Next month I will discuss the two most complex management areas--Communication and Experience. ____________________________________________________ Improved Relationships Reduces Turnover at Best Buy The electronics giant Best Buy is tailoring its stores to better meet local, specific customer requirements identified through analysis of individual store sales. In addition to unique remodels of each store, the company is training employees to listen more carefully to customer needs, and respond by offering a wider range of services, such as home visits, planning, and installation. By improving the quality of the customers' and the employees' experiences, sales are up and turnover is down (25%) in the first wave of converted stores. from: Financial Times, Monday October 31, 2005 , Business Life, p5. _____________________________________________________ Need Help? If you would like to discuss your own work situation, please email me, Barry Phegan, Ph.D. barry@meridiangrp.net Barry Phegan For New Tools to Improve Your Workplace: 1. Visit the informational website www.companyculture.com. 2. Buy the book Developing Your Company Culture; a 187 page toolkit of practical information and examples. Click on http://www.amazon.com/exec/obidos/tg/detail/-/0964220504 Meridian Group, 1 Spencer Court, Sausalito, CA 94965, USA .



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