Unleashing Human Energy
The Transformational Power of Corporate Culture Change
In their book, Don Rust and Alan G. Weinstein, discuss the key factors that create a dysfunctional corporate culture and introduce useful concepts like industrial warfare, industrial depression, and bully management. In addition, they address why they believe that any company interested in achieving meaningful culture change—change that unleashes the full productivity potential of its employees—must embrace such fundamental values as faith, trust, and respect.
Don and Alan also illustrate the transformational power of corporate culture change by telling the story of what Don accomplished when he became plant manager at GM’s troubled engine plant in Tonawanda, New York. The story not only dramatically illustrates the impact of that power but also moves the authors’ thinking on the subject beyond the abstract and theoretical.
As they recount, when Don became the plant manager, the workforce was disgruntled, disengaged, and unmotivated. In addition, the United Auto Workers (UAW) local and management could not agree on a labor contract for the plant, an impasse that exacerbated the workers’ negative feelings toward their jobs and their superiors. In fact, the situation was so bad that the Tonawanda plant was on the verge of being shut down due to low productivity.
Prior to becoming the plant manager, it had become clear to Don that GM’s culture was seriously flawed, and he had committed himself to improving the way the company treated its employees. That commitment was rooted in the values that were instilled in Don when he was growing up on a farm in the Midwest, values that guided his efforts to create a new employee-focused culture at the plant. Here are just a few examples of what Don did:
Tried to spend time every day in some area of the plant, acknowledging workers, engaging them in conversation, and listening to their concerns and ideas.
Made workers’ jobs more interesting by using teams, changing routines, and giving workers more flexibility and autonomy on the job.
Let his management team know that he would not tolerate bully management and shared his “servant leadership” management style with them. That style engages workers as partners through training, coaching, and joint problem-solving, and makes certain that workers have the resources they need to do their jobs.
Included workers in important decisions.
Encouraged management and workers to celebrate holidays. For example, Don had his managers organize, staff, and serve a full-course Thanksgiving meal to all of the workers every year.
Had business cards printed for each worker.
Made workers part of the new car sales and marketing team by establishing an employee sales team.
Initiated a public car show at the plant that allowed workers to show off the products they had made. The show became a popular annual event in the Buffalo area.
As a result of Don’s efforts, employees and managers became partners, not adversaries; morale increased; employees became engaged and motivated; and the GM Tonawanda Engine plant became the company’s top-performing engine plant. Don also built a harmonious and mutually beneficial relationship between GM management and the UAW. In recognition of what Don accomplished, he received The Buffalo News Outstanding Citizen award in 1993.
The changes Don fostered have had a profound and long-lasting impact on the GM Tonawanda Engine plant. Thirty years later, it remains one of GM’s best-performing facilities.