Process Improvements

Client Success Story: Process Optimization And Employee Engagement

Background

An ESOP manufacturing company was under pricing pressure from imports. Many of their competitors in the US had gone out of business. Profitability had been on a downward trend for three years. The employees were disengaged. They did not understand the ESOP concept and were behaving like hired hands rather than business partners. Management wanted to engage the employees and streamline the processes to eliminate waste and improve net income.

Assignment

ISG conducted an assessment of the current state, identified a prioritized list of actions, and facilitated the implementation of initiatives that would decrease cost and increase net income. Among these initiatives were: Revise the cost accounting structure to identify true cost by part, develop a performance ScoreCard to communicate key value drivers to employees, implement process reengineering and LEAN tools to reduce waste and increase throughput, establish an incentive pay plan to link pay to performance, provide business literacy education to employees about the roles and benefits of ESOP owners, and establish a quality department.

Results

The initiative engaged all employees in the business. It equipped them with the appropriate improvement tools and provided a process where they could initiate change. As a result, the company reversed its downward trend and has been on a sustained path of continuous improvement.