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Participative Management Design Improves a Multi-Production Facility

The Situation

QuietFlex Manufacturing had a problem. Production and self-confidence needed to be enhanced, and one sector was in conflict between themselves and with the business management. Meetings were disintegrating into arguments over emotional issues, rather than yielding constructive discussions toward solving production problems and improving the workplace. Personnel were more inclined to present vague complaints to management, making resolution not easy, albeit CEO Dan Daniel's main concern was to generate a successful work environment. These miscommunications were the basis for many employees in one section to lose confidence in the company's management.

The Task

Mr. Daniel sought to assist the QuietFlex Manufacturing workforce be contented, challenged in their jobs, and believe in their sense of importance relative to the company's general accomplishment. He required an approach to "shift the focus from emotional issues to factual issues that I could do something about," and look forward 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 in crisis. 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. Caridas Consulting Houston provided the process that best worked with his company.

Mr. Daniel had attended a Caridas Consulting Intl. 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 appreciated the abilities and skillset of his people and sought to encourage those characteristics to build internal capability. He knew CCI specialized in improving performance and productivity through people. The assignment was to increase the capacity and value of production, boost morale, and advance effective communications to handle problems successfully in the future.

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 opening Participative Design sessions required two days for each shift. Caridas Consulting aided members to identify and appraise their existing work practice and craft propositions for improvement. Definite aspects of the fabrication process were not supple; Caridas Consulting helped the workforce to focus proactively and positively on what could be transformed. in the beginning, Participative Management Redesign sessions were easier said than done since administration and workers were not persuaded there would be any true 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. Staff were excited to put in force the work redesigns of their own creation. They became innovative problem-solvers, and as issues arose, they found the initiative to create solutions. Caridas Consulting carries out Participative Management follow-up meetings with each department every 6 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 understood that it was necessary to mend employee relationships without delay. Superior communication and conflict resolution skills have made the plant environment favorable to the introduction and implementation of new ideas. Now QuietFlex keeps employee relations strong by helping managers be quality communicators. Caridas Consulting Intl, business consultant Houston, helped managers develop:

- basic communication skills, with an emphasis on genuineness, positive regard, and empathy

- conflict prevention and resolution skills

- business skills leading to bottom-line improvements

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 informs the conditions at QuietFlex has considerably 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 significantly improved, ever since the work redesign. People's ability to participate has greatly improved the speed and quality of production. Mr. Daniel says the workers at all echelon of QuietFlex are satisfied with the outcome. 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 company results have been significant and keeps on improving.

By including Participative Management methods at QuietFlex Manufacturing, workers have been given a part in resolving potential company challenges. Participative Management Design has "given the managers a way to deal with specific issues. Currently they recognize to invite employees to truly clarify the dilemma and what they consider the resolution should be." Mr. Daniel is pleased CCI helped QuietFlex both increase quality production and communicate with their workers. "I ask everyone to bring me solutions with their problems," he says.

Caridas Consulting furthermore consulted the most difficult part of the factory. He "threw Caridas Consulting into the lion's den," by requesting them to facilitate a faction of employees so discontented, and extremely distant from administration, where they had invited the union to intervene on their behalf. Similar to the glass plant, CCI facilitated the duct workers to create comprehensive outline of the work flow and identify their challenges. The workers proposed a set of solutions, and the management responded by detailing the changes they were willing to make, and setting a timetable for implementation. Now that most of the changes have been implemented, productivity is up over 30%; because compensation is tied to productivity, morale and pay for this group has also improved substantially. Caridas Consulting unlocked the doorways of communication connecting management and the workers, transforming the urgent issues and designing a structure for upcoming problem-solving.

Mr. Daniel is now a believer; the results at QuietFlex prove that Participative Management Design is a flexible and comprehensive model that can be used across industries and at all levels. The workers at QuietFlex have raised the quality and rate of production, and greater productivity means higher wages. They have learned from the ground floor, how to create solutions. Participative Management Design has helped all the people at QuietFlex Manufacturing reach their individual and common goals, and provided them with a framework for continued success.

Caridas Consulting International has provided management consulting Houston since 1992.