One Shining Example - profile of unnamed company's successful management techniques - Brief Article

I recently spent time with a mid-sized supplier from the western side of Michigan, a company somewhat unique in the automotive industry. It has a much higher than average P/E and a reputation outside of the industry as more of a technology company than as an automotive supplier. While its product is outstanding, the management style may give some insights into a viable way for companies to get the best out of their employees-and in return, maybe breakaway from the slow-growth automotive supplier image.

While many companies make significant effort in highlighting their core values to both employees and outsiders, they often give minimal tangible support to these values. It's not uncommon for a company's stated core values to be very different from those that are actually practiced by the employees. This was most definitely not the case in this case. The consistency of the message throughout management was remarkable: they don't merely espouse the values, they live them. The message gets through to management and employees via an effective incentive/reward structure and the strong example of leadership by top management.

Following the example set by the CEO, the company values the creativity and development of all employees. The company's environment nurtures rebels--individuals who stand up and take calculated risks. They also make a great effort to encourage proactive efforts and to take great care to not place blame upon individuals if there is failure. Instead, management strives to assess the reasons for failure and incorporate the lessons learned into a collective corporate memory. Several people indicated that this willingness to not lay blame creates an environment that fosters ideas and innovation while maintaining a focus on a strong business model.

The drive to constantly innovate product and process technology is strongly visible. All managers understand the direct connection between the company's position as a technology leader and the ability to maintain their business model. This trait can be traced directly back to the company's founder-an inventor with a unique grasp of the need to invent within the business environment. There can be little doubt that they realize management serves as a support role for engineering and research, development and manufacturing. Yet these technical groups also have a strong understanding of the need to develop products that both delight the customer and fit within the high-volume automotive industry paradigm. They also understand that quality is a required element. A corporate mantra heard often at the company was "Make a product that you would want on your car." The company reinforces these core principles through a reward system that includes bonuses for both teams and individuals for successful projects-- directly connecting the good performance to the reward.

Leadership takes many forms. Two contrasting models have received a bit of attention in the automotive industry recently. In one camp there is the strong, hard-driving, control-oriented leader. In the other is the strong mentor, with leadership skills--much like at the company I visited. As the industry becomes ever complex, and the big companies become bigger, it may be increasingly difficult for one individual, no matter how driven, to competently handle all the challenges. Paradoxically, the hard driving executive that controls a fiefdom may increase his job security, while the leader that works to coach and mentor his top executives may greatly increase his chances of getting replaced. In some instances, the strong dominant leader may have rid the company of any potential heirs to the positions, but the mentor may have prepared a number of individuals for leadership.

The lessons cited here are worthwhile for the manufacturers in southeast Michigan to take to heart-and practice.

COPYRIGHT 2001 Gardner Publications, Inc.
COPYRIGHT 2001 Gale Group