I enjoyed this recent article in Industry Week on the Miller Centrifugal Casting Comeback from revenues of 8M in 2003 to 22M in 2008 because it highlighted the key elements of a successful turnaround: your people. According to MCC, five key structural supports were required to achieve the turnaround, with the first two being workforce morale and employee satisfaction. In other words, it had to put the people who would ultimately be effecting the turnaround first.
MCCs secrets of a turnaround? They are:
- Workforce Morale
MCC starting treating its workforce as valued customers and human beings, not just “resources” and numbers. Managers walked the floor, engaged in open dialogue, and equipped the workforce with decision making power. - Increased Employee Satisfaction
MCC implemented a gain sharing program in 2005 based on a pay-for-performance system. - Lean
Specifically, MCC focussed on eliminating waste. - Quality
MCC strategically invested in equipment and technology that would have a direct impact on quality. - Customers
MCC focussed on responding to actual customer needs and wants and not just perceived needs.
And they’re pretty much dead on. Add:
- Senior Leadership
Leadership from senior management who embrace the change and walk-the-walk as well as talk-the-talk. - A Realistic Transformation Plan
Developed in conjunction with an expert that starts with a gap analysis between where you are and where you want to be and lays out a realistic path to get there
Then you are on your way to turnaround success.