Changing the direction of a company and guiding it through a Lean Transformation process is always contingent upon gaining the support of the people that work there. Telling them the truth, giving them the tools they need to succeed, treating them with respect as adults and holding them accountable are core leadership responsibilities to achieve this.
I was once hired to be the President/COO of a Major U.S. Automotive Class A Metal Stamping Die Manufacturing Company. The company had not been making money for several years and its parent company (and their new owners) wanted it fixed or closed.
The company had lost an NLRB case and the UAW had been named as the official bargaining unit for the completely “skilled trades” workforce two years earlier. They had attempted to negotiate a local agreement with Management since that time, but none had been completed (largely due to the parent company’s resistance to any effort to do so. They were likely focusing on attempting to get them to de-certify).
The parent company had recently been acquired by a European Car Company who was far less “union averse” (unions in Europe actually have seats on the Company’s Board of Directors) and were anxious to have management obtain a local agreement settlement.
I was hired partly because of my long experience managing UAW plants. After some interesting conversations with the CEO, the parent company agreed to pull his “lawyers” and put control in my hands. Not too surprisingly, very quickly, I was served with a strike notice. The International Union had decided to force the company’s hand. Prior to the workforce walk-out, I held all employee meetings to introduce myself, my leadership philosophy and attempted try to understand where the members were coming from. I was surprised how hopeful they were that I would do what I said, most had no desire to strike but felt they were being forced to by the International Union to show their resolve and begin collecting membership dues.
I told them that I understood, but that they needed to understand how precarious a condition that the plant’s future was in. I shared the true financial numbers told them what I would be able to offer and committed to them that if they would commit to change, that I would do everything I could to find a way to avoid a plant closure. They were shocked. I committed to continue to share this information with them going forward monthly.
The strike lasted four weeks, with tradesman beginning to cross the picket lines in week two and 60% crossing in week three. The UAW Regional Servicing Representative and Shop Chairman met me off-site at the end of week three and accepted the offer I had put on the table. The membership ratified it on the first vote and the strike ended.
Within a month, the sitting Shop Chairman, President and shop committee were voted out of office and a new team was installed. This team wanted to work cooperatively to fix the plants problems… a new day had dawned.
For the next eight years, I kept my commitments and the Lean Transformation was completed.
Despite returning the company to profitability, in year four, the European owner decided to exit the Automotive Die Manufacturing market worldwide. I was directed to close or sell the business in six months. This triggered the legal requirement for us to issue a WARN Notice of impending closure to the workforce and local/state government offices.
Fortunately, I was able to find an interested buyer, complete the sales process, and close the sale in seven months. The new company agreed to keep the existing hourly workforce and we negotiated a new Union Contract which the new company signed. Despite the anxious moments that the team experienced during this process, I kept them all informed on a monthly basis of the progress status of this sale, and my commitment to make this happen for them. No significant employee turnover occurred as this process was completed.
This experience reinforced my belief that Respect for People means:
Treat people as adults, care about them and their families. Tell them the truth about where things are. Guide them in what needs to be done and give them the tools/ training/ skills needed to accomplish this. Listen to their ideas, and remove barriers that prevent them from improving their processes and their jobs. Keep them informed on progress/ issues. Hold them accountable for doing the right things, and expect them to hold you equally accountable.
This company is still in business today and doing very well. I am very proud to have been part of this Team.
©2020 David R. Moore, ValueFlo Consulting LLC
Meet the Author
David Moore is an accomplished general manager, strategic planner and manufacturing business consultant with over 40 years of experience elevating company performance through skilled alignment of production facilities with enterprise goals. Dave excels at being a leader with history of success transforming underperforming plants into profit powerhouses, with expertise implementing Lean improvements across multi-plant facilities. He has proven ability to help companies to achieve world-class performance.
