Your people are your most valuable resource!

Involve and believe in your people!

Many companies and corporations rely solely on upper-level management to solve their problems. After all, isn’t that what these “C-level” employees are for…problem solving?
We have been lucky enough to witness corporate turn-a-rounds in our lifetime of epic proportions…from leadership paradigm shifts.

A great example is Johnsonville Sausage LLC. In 1980, Johnsonville Sausage President, Ralph Stayer knew he had a great market share, but didn’t like the way his operation was functioning within. He knew that Johnsonville could handle there current market share at the time, but major players like Oscar Mayer and Armour were a big threat. He knew that if management was improved and internal issues were solved, Johnsonville would thrive beyond his wildest dreams.

After reading books and articles on management techniques, Slayer was approached in 1981 by a communication consultant from the University of Wisconsin, Lee Thayer. After the consultation, Slayer’s thoughts changed from, “How do we expanded our market share through competition with the big guys,” to, “if we concentrate on our people, our products will be better.”

The turn of events that followed:
The changes began small, and gradually encompassed the entire way of doing business. For example, workers had complained to Stayer that they did not like the food in the factory's vending machines. Stayer had them research competitors and find a new vending machine company. Ordinarily, Stayer or another manager would have dealt with this. But Stayer felt that it was not his problem, and he trusted the people who used the vending machines to make the best decision about them. Next came more complex problems. The sausage makers often had to work weekends in order to meet delivery dates, and they resented this. Stayer prodded the workers and plant managers to figure out how they could avoid weekend work, and soon equipment downtime was revealed as the problem. Slipshod work practices had led to a lot of stalled time on the production line. When it was up to them to change it, the Johnsonville workers made many improvements that kept the plant going, and soon they were able to get their weekends free. The workers eventually took responsibility for traditional human resources roles, hiring, firing, and training. Lateness, absence, and maintenance problems declined, and the plant became much more efficient. Workers were compensated for new roles they took on, and they also earned a share of the company's profits. Stayer put 28 percent of profits into a pool that was divvied up every six months. This greatly increased motivation at Johnsonville.
Quality control had been a major issue at the company. Though Stayer had hired more quality control people since 1980, he found that quality had actually gone down. Finally he took a crucial step. He decided that top management would no longer taste the sausage. He asked the people who made the sausage to taste it in a daily session. This seemed to make all the difference. Quality went up as the line workers got to eat and critique what they made. Eventually customer complaint letters were funneled directly to the production workers. They responded to customers and used customer input to find ways to make the sausage better. The quality control department became a new animal at Johnsonville. Instead of checking the quality of the sausage, the quality control department began providing technical support to the line workers who wanted to improve quality. Terminology also changed throughout the company. Workers became "members," and managers became "coordinators" or "coaches." (FundingUniverse, 2004)

Johnsonville has been the center of many management speeches and talks since this radical change. Stayer proved that investing in and listening to the people would increase the business at all levels. He gambled and won! He trusted his people and believed what they were telling him. He realized his thoughts were not the be-all-end-all.

My challenge to you is to ask your people what they would do about a specific problem the company may be experiencing. Let them know that you value their thoughts and opinions in that specific matter, and they will become “owners” of that process.

Source: http://www.fundinguniverse.com/company-histories/Johnsonville-Sausage-LLC-Company-History.html

Josh Brody is the President and CEO of Corporate Guidance Solutions, a consulting firm specializing in helping organizations and individuals realize their potential and enhance their performance.