By Nancy Davis 
25/10/2010

Top executives at Cobham Sensor Systems in San Diego had already instituted “lean” engineering and Six Sigma practices to improve productivity when John Schierer signed on as vice president of human resources in 2007. But their long-term goals for the defense and aerospace company were to achieve excellence and become “an employer of choice.”

Schierer helps employees create an evolving “roadmap” toward those goals. Many of the steps they take on the path remain relatively simple, inexpensive—and some are out-and-out wacky. Yet the measures continue to make a difference in terms of productivity and morale for the manufacturer with about 1,000 employees, Schierer told attendees at a 2010 SHRM Strategy Conference workshop.

The San Diego market features stiff competition for talented engineers and a high cost of living. And that competition for talent clearly underscores company leaders’ desire to be known as an employer of choice, said Sandy Asch, a principal of the Alliance for Organizational Excellence in San Diego, and a consultant in the development of the roadmap for these employee engagement activities.

The project did not unfold effortlessly: After months of discussion early on, company leaders decided to implement the excellence program to address and support the lean initiatives. “It had become apparent that lean initiatives were not fully leveraged because there was not adequate mind-set and behaviors to drive the manufacturing process,” Asch said.

“What I saw lacking was employees engaged in their work,” Schierer added.

Although leaders weren’t sure from the start that the excellence program would achieve bottom-line results, after two years, the company achieved a 25 percent rise in revenue without a significant increase in head count or resources. Meanwhile, workers face a massive workload and “increasing expectations from the parent company,” Schierer said.

Components of the excellence program include:
A new code of conduct.

New expectations for supervisors that make them accountable and encourage them to coach employees.

An “excellence pyramid” that requires changes in behavior by top leaders and line managers as well as “bench” workers. “Before we got to the tipping point, we had to do a number of activities to make engagement concepts very real,” Schierer explained. Discussions and training covered focus, accountability and the phrase “use your words wisely.”

Training: Managers receive training quarterly and top leaders have established a method of making them accountable for being excellent role models.

Coaching: A system has been established that requires managers to coach employees and lets HR professionals know when coaching has taken place.

Rewards and recognition: Here’s where the wacky sometimes comes in. For instance, inexpensive craft books, lovingly decorated by each department with the phrase “Use Your Words Wisely” began to be passed from hand to hand among employees. The books contain notes that compliment peers on constructive contributions, individual acts of kindness, cooperation or work-related initiative. Employees in each department also were charged with coming up with six-week goals, such as creating an online inventory of spare parts. When they achieve these goals, the accomplishments were recognized throughout the company. Later, peers gave each other employee recognition cards for personal achievements, and these achievements were publicly celebrated.

Continuing education: Employees are encouraged to set personal objectives, such as learning new software or gaining certificates.

What is the value of 1,000 employees, each one doing one thing better each year? Schierer asked. In 2009, orders increased 17 percent over a record previous year, with fewer defects; revenue increased 25 percent; and the company achieved all objectives and stretch goals. In the two-year period, employee turnover also fell from 22 percent to 8 percent.

Project leaders figure that the two-year excellence project cost about $165 per employee, a sum partially underwritten by a state training grant.

Now, Schierer said, the “excellence initiative has become self-sustaining, but we must continue to breathe life into what it means to be excellent every day.”

Nancy Davis is editor of HR Magazine.