“It’s not about changing people; it’s sometimes about changing a situation. How can we build an even better situation for them?” – Jurgen Klopp

Recently I worked with a “one-stop shop” provider of engineered solutions to the construction industry, with in-house engineering, manufacture of integrated components, and on-site erection/installation. Some challenging projects and high management turnover in the previous twelve months had impacted morale in the plant. Production schedules were regularly missed and the plant was highly inefficient, delivering well below the output that it should.

I was brought in to lead the operational turnaround as Interim Operations Director for an initial period of three months which was subsequently extended as operational results improved. Working with the operations team, we were able to stabilize the existing operation, grow output and increase productivity. Over a nine-month period, the operations group delivered a 21% increase in productivity and 28% increase in manufacturing output, with a 37% reduction in defect rates.  Here is how we did it.

Phase 1: Addressing the situation

• We disrupted. We made changes to the production management and supervisor teams, we increased the amount of time we spent on the floor conversing directly with the workforce, addressing their concerns, and building greater engagement throughout the plant.
• We listened. We consulted directly with team leaders to ensure they had the people they needed together with production schedules they could work to. This helped restore morale, build confidence with a consistent daily work plan, and most importantly, generate to adhere to that work plan on a daily basis.

Phase 2: Improving the situation

• We were imaginative. As an older facility, investment in technology would take time to deliver improvements, so we invested in smaller equipment upgrades and changes with fast paybacks.
• We were supportive: We focused our hiring efforts and training to ensure that our front-line leaders had the people and skills they needed to get the job done.

Phase 3:  Fine tuning to optimize performance

• We became nimble. We made small adjustments to production levels to gain better balance across the plant. We dialled back production and made small adjustments to headcount to better align with project requirements and estimates, and productivity very quickly improved.

The Lesson

Effective leadership is not cookie-cutter stuff. The adoption of a more personalized and heartfelt leadership style, rather than traditional top-down leadership, resulted in a fundamental shift in engagement at all levels of the operation. Regularly consulting with and empowering key production personnel has helped to sustain these improvements over time, paving the way for an ongoing journey of continuous improvement.