Empowered employees pay off in, out of work

Arriving to Boston via train for an evening meeting earlier this fall, sitting just in front of me a self-described business owner was quizzing a young man across the aisle about his employer. The owner knew the young man’s company and was curious about its level of activity, product offerings and capacities, customers and more.
Coincidentally this manufacturing company is a current client whose business I know very well. I recognized the young man as a production employee. He was now on his way to either a show or a Red Sox game.
Anyway, with a female woman companion next to him, the young man proceeded to confidently respond, to every question raised, and from my own knowledge of the company the detailed answers were accurate, and in some instances insightful. His questioner was clearly impressed (with the young man and the company) but wondered in the young man’s role in production how he was so knowledgeable about the markets, technology, operating performance and, to some degree, the company’s financials.
I knew the answer and was intent on the pending response.
The young man proudly described how the owner and the president of this substantial business were always on the factory floor – not to check up, but rather to check in, to see if, from the workers’ perspective, there were any opportunities to improve the quality or the production of current jobs. They discussed upcoming bids and gathered everyone’s thoughts to consider productivity, delivery times or quality. The company had also introduced formalized employee involvement by launching Lean and a level of employee self-direction.
He related how in meetings they went through company plans and results. The young man added that the owner and president knew his family and they often talked about them and their progress and plans, as well as the company’s. It was clear that the young man was well-equipped to make good business decisions about every element of his own work. It was also striking that exchanges like this were great PR for the company. What last emerged in the conversation were the questions now turning to the company’s availability for sale from its senior owner.
But as the young man and his companion exited for their stop, he didn’t get to respond. And I returned to really reading my newspaper.
The upsides to an environment that generates this level of employee buy-in and sense of ownership are immeasurable. We certainly have a sense that employee involvement and internal relationships are nice, even good, but that doesn’t begin to touch on the ultimate business value.
To begin, the avoidance of otherwise wasted time (compensated by the hour) and the underutilization of capital equipment generates real money. And in a company of 50 or 100 employees or more, where all are fully engaged in addressing efficiencies, customer expectations, quality and schedule commitments, the benefit of each individual (within limits) making in-process decisions without delay and without involving a supervisor falls right to the profit line.
This company engaged employees in planning, as well as execution. Their experience and intelligence helped in considering new work and the costs and logistics of meeting customers’ aggressive expectations. The variables of time, materials and equipment capabilities are often best understood by the people producing the product every day. Further, they can contemplate opportunities and obstacles that executives, engineers and planners may miss. They’re the ones who truly know the tricks of their trades. That knowledge can be deployed – or it can be ignored and squandered. Externally, in formal meetings – or even on a train – there’s a positive impact on the company’s brand. When formal marketing efforts are proudly and knowledgably supplemented by a company’s entire workforce, how do you place a value on that golden asset? These same employees are also deployed to work with salespeople and customers to help close a sale, and with company procurement and suppliers to help consider potential investments in tools, equipment and processes.
In a current economy where jobs that demand skilled people are going begging, the skilled people are less willing to leave an employer who values them and their expertise. Their current employer has a substantial investment in their knowledge and skills and through its culture is protecting that investment. (Employee voluntary turnover at the company in question is close to zero.)
Employees’ disinclination to search for a greener pasture grows from their sense of belonging and the company’s open appreciation of their value.
In traditional manufacturing businesses, management had often been accused of having employees “check their brains at the door” and work only as directed. For 220 years, that observation was too close to true as most manufacturers, and others, squandered their greatest assets.
The conversation on a train ride was a sobering confirmation of the real impact of engaged company leaders, and the power of employee involvement. You’d think that the young man on the train owns the company.
Maybe, in a large way, he does. •


Stanley H. Davis is founding principal of Standish Executive Search LLC. He can be reached at sdavis@standishsearch.com.

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