By David Hair
Last month we published a series of articles related to the contemporary issues fueling operational and labor change for many U.S. companies. In doing so, we also introduced third party human logistics (3PHL) as the emerging business model that provides “fix-it-fast” solutions to many of these issues. What are these solutions? Reduced unit labor cost, increased productivity and efficiency, improved or maintained quality, and reduced labor and co-employment liability.
In our 20 years of experience working with world-class companies, we have found that the biggest obstacle of adopting these “fix it fast” solutions isn’t implementation. It’s commitment.
To read the case study in its entirety, click here. To determine if nGROUP’s 3PHL “fix-it-fast” solution is right for your company, click here to complete a quick diagnostic.
Here are four ways we have found to effectively implement change management:
1. Pressure For Change: The Top Down Approach
The need to change must first be a driving force within your company.
Whether the need to change comes from senior management or from customers or clients in a supply chain, the rest of the organization will need to be convinced of the case for change. This can only happen to good effect when senior management stands united behind the benefits of the new strategy and communicates that to the entire team.
A change in strategy can be a signal to staff that they have a role to play in making change happen. They begin to own the change the moment they see how change effects business at a corporate level and is also beneficial at a personal level.
2. A Clear, Shared Vision That Motivates
Colleagues are inspired when they are motivated and management needs to understand what motivates them. What are the key motivators with every employee? Pride, happiness, responsibility, recognition, security, success, and money. Motivating staff to support upcoming change is crucial for success. Leaders, never forget that change is a major cause of stress amongst the workforce so plan ahead to motivate your staff and create a positive environment for the shift.
(nGROUP has integrated these motivators into every aspect of the 3PHL business model – from training, to data collection, to incentive programs. nGROUP’s 3PHL model communicates goals, tracks performance and rewards workers with tangible and non-tangible feedback.)
3. Capacity for Change
There is no magic technology or tool to create change. In fact, the greatest agent of improvement programs is a resource all companies already have — employees.
Workers have the information, intuition, ideas and instincts necessary for implementing a new strategy effectively. When given the capability and the opportunity to participate in improvement programs, it is employees who often find the greatest cost savings and efficiency improvements.
nGROUP’s 3PHL recognizes the value of an employee’s experience and insight and openly seeks input and suggestions.
Once the three factors listed above are in place, it is time to implement change. This is where momentum matters.
nGROUP’s 3PHL model implements the “Plan-Do-Check-Act” management methodology to ensure the effectiveness and appropriateness of change. Good monitoring and analysis of the resulting data is essential.
Case Study Results
In this particular case study, nGROUP’s 3PHL solution was first implemented in a single facility for the largest fresh food processing company in North America as a pilot program. Based on the results, they rolled out the 3PHL model to two additional processing facilities.
“Over the first five years, they realized over $20 million dollars in operating income improvement. The efficiency gains have ranged from over 25% to over 300% – depending on the baseline performance of each facility. An overall average of 38% performance improvement was achieved,” says Jim Rossini, nGROUP Executive VP of Corporate Process.