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By Clinton O. Longenecker
and Timothy C. Stansfield
"I know this, that keepinga plant operatingin an optimal fashion is definitely a juggling act betweenyour systemsand people
and environmentand goals....It takesa lot of hard work, skill,
patience,drive, good people,and evena little luck to succeedin
this line of work."
Executive Summary
A plant manager'sobservation
The authors describe 15 reasons why plant
managers fail and show how those failures
affect all plant personnel. They also make
the case that managers cannot succeed
without adequate support from their organization. Included is a self-assessment tool
to help managers and front-line supervisors
determine
whether
their
organization's
practices are setting them up for failure.
The 1990switnesseda renaissancein U.S. manufacturing
for a wide variety of reasons.A robustU.S. economy,many
technologicalbreakthroughs,a rush of capitalinvestments,
the growth of marketsin the world economy,and a strong
domesticdemandfor high-value-addedproductsarejust a
few of the plausible explanationsfor this phenomenon.
Although manufacturinghas performed well as a whole,
manufacturersare still under extremepressureto improve
their overallperformanceas theybracefor the nextwave of
international competition. This competitive pressurehas
createda greaterneed than everbefore for highly effective
plant management.
Manufacturersin the 1990sexperienceda host of technological and systemsenhancementssuch as large-scale
processre-engineeringand cellular manufacturing. They
also saw more use of automation,integrated information
technology,and computer-aideddesign methods. At the
same time, manufacturersdevelopedmore effectiveand
enlightenedapproachesto enhancingworkforceproductivity: Open-book management,work teams,labor-management co-ops, worker empowermentprograms,improved
training and development,improvedsupervision,and more
effectiveincentivesystemsare but a few of thesemethods.
24
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.I Cause 2: Failure to develop an effective and appropriate plan for action. When a plant managerhas clearly
defined goals,it is incumbent on that managerto work with
the staffto developa clearstrategyor plan for action. It is surprising how many manufacturing organizations fail to
develop a real, comprehensiveplan to achieve operational
goals. In the rush to achieve goals,managerscan struggle
when they fail to start and finish a seriousdiscussionabout
how to achievecritical goals and how performancewill be
measured.Organizationsoften find themselvesusing outdated plans or strategiesthat no longer support their current
needs.Eachorganizationin this studyhasgone throughperiods of maintenanceand periods of change,eachrequiringdifferentstrategies.The plant managermustbe steadfastin holding to a maintenancestrategyand reactiveto a changestrategy when appropriate.
Consequence2: Activity without meaningful action
.I Cause3: All talk and no action. When managersdo create a cleardirection and developplans for action but thenfail
to implementthe plans,their efforts fall short. For example,a
managermay talk a lot aboutimproving quality but makeno
changein the facility'smodus operanditoward achievingthat
goal. Many plant managersmaywant to makechangesbut are
unsure of how to drive changeforward exceptto issuea mandate, write a memo, or send an e-mail. But real change
requires altering attitudes, behavior,processes,procedures,
and systems.It alsorequiresa greatdealof two-waycommunicationand accountabilityfor action; both are criticalto successfulimplementation.A plant managermustbalanceteamwork with accountability in order to achieve production
goals,improve targets,and makerequired systemchanges.
Consequence3: Frustration in the plant and erosion of a
manager'scredibility with plant personnel
.I Cause 4: Failure to delegate and empower. Plant managers struggle when they fail to delegate appropriately to their
staff and to ensure that the change process cascades downward through the organization in an effective fashion. When
managers fail to assign duties to key personnel properly and
provide them with the requisite authority; they are failing to
use the most rudimentary of all management practices.
Responsibilities must be clarified, parameters of authority
must be established, and methods to ensure accountability
must be put into place if a plant manager's staff is to be fully
utilized. Empowerment refers to the amount and level of
authority the manager is willing to grant to staff. Problems of
delegation and empowerment can occur when plant managers delegate very little, ensuring that they will be overextended, or when they delegate virtually everything, ensuring
that their people will be overworked. More problems arise
when managers fail to communicate their expectations effec26
Industrial Management
tively, grant adequate levels of authority, or fail to hold people
accountable for performance. Yet another difficulty occurs
when plant managers themselves are not adequately empowered by their superiors and therefore cannot make decisions
and control resources that affect their operation.
Consequence 4: Unclear performance expectations, frustration, and lack of control over factors affecting performance
v' Cause 5: Communication meltdown. Thesedays,plant
managers
'havemore diversecommunicationtools than at any
other time in our industrial history: Pagers,cell phones,conferencecalls,e-mail,andvoice mail haveemergedto augment
traditional meetings,bulletin boards,and telephones.Plant
managersfrequentlyfail when they do not effectivelydevelop
two-waychannelsof communicationwith key stakeholders:
their superiors,customers,staff, workforce, and suppliers.
When communicationswith thesekey groups are not effective, problemsare on the horizon. Communicationmeltdown
can easilyoccur in a manufacturingfacility when ineffective
communicationbecomesthe norm; plant managersare often
accusedof being out of touch for this very reason.Out-oftouchmanagersoperatewith lessinformation than theyneed
to makeeffectiveoperationdecisions,and one or more of the
key stakeholdergroups may be doing the same.Ineffective
plant managerseither don't share critical information with
stakeholdersor they fail to listento them -or both. When a
plant managercommunicateswith any of thesekey groups,it
can be a problem-solving transaction,a problem-avoiding
transaction,or a problem-creatingtransaction.The behavior
and communicationskill of the plant managerwill, to a great
extent,determinethe outcomeof thosetransactions.
Consequence5: Personnel operating and making decisions with incomplete information
j
.I Cause 6: Treating people like a commodity. When a
plant managerdoes not placea high priority on people and
effectivehuman resourcesmanagement,bad things happen.
In the current marketplace,it is getting harderand harderto
find talented and motivated people in nearly all operating
functions. When a plant managerdoes not placea high priority on the "people component,"the organization'sculture
will reflect this attitude. Superior performance cannot be
created with substandardemployeesand managers.Thus,
the organization'sHR practices must create and sustain
effectivesystemsfor selectionand orientation, training and
development,performanceappraisals,compensation,benefits, and labor relations if the organizationis to be successful and considereda good place to work. When the top
managerin a facility does not placea high priority on these
functions, they will not receivethe attentionand or budgets
they need to be effective.This damagesthe operation'sability to achievegoals.
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Key issues of plant management failure
Key issues
Technical skills
Conceptual skills
Interpersonal skills
Support
.I
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.I
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.I
1.
lack of a clear sense of direction
.I
2.
Failure to develop an appropriate plan for action
.I
3.
All talk and no action
4.
Failure to delegate and empower
5.
Communication meltdowns
6.
Treating
people
.I
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'Z Ego problems and poor working relationships
8.
Inability to foster an effective leadership team
9.
lack of adequate resources
./
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If
If
tI'
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tI'
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Inability to integrate functions, resolve conflicts,
and deal with political fighting
.I
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10
10
10
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10. Tech~~I~gy holes, gaps, and mismatches
Operating with bad systems, processes, and SOPs I
12.
Ineffective
13.
14.
control
and corrective
action systems
.I
.I
15. Losingsighfof ultimate goal
Total =
6
t!
Figure
manufacturing facility adequately; (2) the plant manager is
unable to convince the powers that be of the need for resources;
and (3) the allocation and budgeting systemsdesigned to distribute resources fail to operate effectively In the end, plant
managers will struggle to get desired results when their organization underfunds their operation, when they themselves fail
to be an effective advocate for their operations needs, or when
existing allocation processesare ineffective.
Consequence 9: Lost opportunities and operational stress
suppon, maintenance,
training,or customerapproval.In addition, plant managerscan and will fail when their operations
have technologythat does not meet their operation'scurrent
needs.Thesetechnologymismatchesare linked to the plant
manager:"struggleto keep goals,game plans, and resource
requirementsin tune with technology,and vice-versa.If a
plant managercannotbring thesefactorstogetherin concen,
resultsaredestinedto be lessthandesirable.
Consequence10: Performanceproblems
Cause 10: Technology holes, gaps, and mismatches.
Given the manufacturing technology breakthroughs of the
past decade, it would appear that the success of a plant manager's operation would be driven by the level of technology
deployment; that is to say,if you put enough technology into
an operation, results will follow. From a plant manager'sperspective, however, the problem is more complex. A technology
hole exists when an organization does not have enough technology to be competitive. This problem is frequently linked to
lack of resources, but that is incomplete as an explanation of
technology failure. An operation can just as easily struggle
with a technology application gap, which means having the
nght kind of technology and in sufficient quantities but, for
whatever reason, failing to adequately leverage the technology
to achieve desired results. A major technology hole identified
in many companies is not having adequate technology support. This. could mean not having appropriate engineering
.I' Cause 11: Operating with bad systems, processes, and
SOPs. When a plant manager strives for success, systems
thinking is a necessity: When an operation is attempting to
achieve aggressiveand multifaceted goals, it is imperative that
the operating system, processes,and standard operating procedures function in an optimal fashion. This is considered
one of the basics of effective plant operations and is often
overshadowed by current fads associated with world-class
manufacturing. Plant managers can frequently fail when they
attempt to implement new products, goals,and plans without
ensuring that their current operating practices support such
changes. Without effective, integrated systemsand processes,
goal achievement becomes infinitely more complex and can
lead to frustration when personnel at all levels find "systems
barriers" that prevent optimal performance. When a plant
manager does not ensure that an operation's systems,
processes,and SOPs are constantly aligned with the opera-
28
Industrial Management
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4.
5"
Proper focus
Clear direction for operation
Clear definition of metrics
Delegate and empower
2.
Effective
Work group
Strategic
Operational
To all workers
.Tomanagers/supervisors
planning
Strategic planning
Operational planning
3.
Overall operation
Comprehensive
Systems-oriented
Improvement-based
Situation"oriented
Adequate resources
Adequate Financial Resources
Effective Technology
Effective Human Resources
Securing/allocating
funds
Applying technology effectively
Using HR systems
Using funds wisely
Usingiunds properly
Usingeffeclive HRpractices
Effective processes
Sound operating systems
Integrated operating activities/teamwork
Effective control and corrective action plan
Creating effective systems
Using the system properly
Coordinating among depts.
Monitoring overall performance
Coordinating within departments
Monitoring work group performance
People practices
Effective working relationships
Effective communications/feedback
Ability to lead change
Ability to resolve conflicts
With/among
leaders
Between leaders/functions
At the operational. level
Where improvement is affected
With/amongworker$
Within functions/workgroups
At the department .level
Where performance is affected
Figure2.
and interpersonal skills that are involved in each issue. At the
same time, this table includes the support category that
addressesthe degree to which the plant manager receivesadequate support from superiors and the organization asa whole.
A careful review of this table.reveals that a variety of skills and
support mechanisms are necessaryto prevent failure and create a climate for success. For plant managers to succeed, they
need a breadth and depth of skills in all three areas. Technical
skills are, without question, important. But conceptual and
interpersonal skills, as well as ongoing support, are all critical
to long-term success,as is illustrated by the column totals of
Figure 1.
planning; having adequate resources;using effective processes;
and having sound peoplepractices.
Throughout this discussion, our focus has been on the role
of plant management. Each plant manager interviewed
described front-line managers as "mini-plant managers" who
deal with the same strategic and operational issues for their
areas of responsibilities. A failure within a front-line area can
ultimately result in a failure for the organization; it is also a
symptom of an underlying deficiency on the part of the plant
manager. For these reasons, the key issues associated with
plant managers' failures are applicable to front-line managers,
and organizational success can be enhanced at each of these
levels of responsibility by the same issues. In Figure 3, we
Effective plant managementin action
depict the interdependent relationships among these key variA review of the issuesand the reasonsplant managersfail to
ables and the desired operation outcomes.
getdesiredresultsdemonstratesthe complexityof a manager'sjob. .Focus: It is critical for the plant manager and front-line
A variety of key managementfactorsmustbe in placeto
managers to focus their energies and talents in a meaningful
help a manufacturingoperationfunction in an optimal fash- fashion. The plant manager must ensure that the overall operion. Thesekey factors generallyfall under one of five highly
ation has a clear senseof direction, while the front-line superintegratedissuesthat havea profound effecton performance visor does the same for his or her work group. The plant
and should be carefullyunderstood by not only thosewho
manager must create a metric system that provides strategic
run manufacturingfacilities but also by their superiors. In
focus, while the front-line manager must articulate clear and
Figure 2 we identify eachof the key variablesthat candamunambiguous operating goals and measurements for his or
agea plant manager'sperformance.The very sameissuescan
her people. Once the direction has been established for the
be applied to nearly all front-line managementpersonnelin a
operation as a whole, the plant manager must properly delemanufacturingfacility, but with a somewhatdifferent focus. gate work to the management team and empower them
Theseissuesinclude providing proper focus; using effective according to their abilities. The front-line supervisor must do
30
Industrial Manal!ement
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13.
15.
Plant management
self-assessment
Instructions: Carefullyreviewthis list of critical managementpracticesand assess
the extent to which thesefactorsarepresentlypart of your current operating
culture. Pleasebe candid!
it
Does this operation have a clear sense of direction and well-defined goals?
n
U
L
Does this operation have an effective plan of action?
Q
~
2.
4.
Do managers practice effective delegation and empowerment with their people?
5,
Is effective two-way communication practiced in.this operation?
6.
Is creating and maintaining a high-performance workforce a priority?
7.
Do managers have effective working!elationships
8.
h
~
~
a
0
n~
~ ~a
Q~
a~
0
~
h
with employees and each other?
managers/supervisors effective leaders?
Q
"'7
Q~
Q
Q
Is this operation adequate!yfunded?
~
Is performance being monitored and corrective action taken when performance
is less than desired?
Are organizational members and departments operating in unison with each other?
Is this operation focused on the over-riding goals of customer satisfaction,profitability,
and workforce morale?
u
t7;i
~
~
0
.""",.
a
0
~
Pi~
~
0"0
a
a
~
u
0
IU
0~
~
0
0
0
0
0
Is proactive operational planning practiced in this facility?
14.
a
Q
10. Is technology being properly applied and leveraged?
~
1'1""c Are current operating systems, processes and SOPs effective?
12.
To a great
extent
extent
h~
Does the leadership of this operation create real change?
q,
To some
Not
at all
To what extent.
IUM
Figure4.
In closing
We haveidentified somefactorsthat causeplant management
failure -factors that influence not only the performanceof
the plant managerbut of all plant managementpersonnel.
The issuesidentified heremake it clearthat when plant managersand their staffdo not havethe requisite technical,conceptual,and interpersonalskills,problemscanand will occur.
At the sametime, when managersat all levelsdo not receive
the support they need from their superiorsand their organization, the likelihood of failure increases.Support cancome
in the form of critical resources,technology,information,
clear goals, empowerment,feedbackand coaching,and a
sound corrective-actionsystem,among othersources.
Figure 4 provides a useful self-assessment
tool for those
who manageplant managers,for plant managersthemselves,
and for front-line supervisorsto assess
the extentto which an
operationmaybe planting the seedsof operationalfailure.
The factorsshown in the table make it clearthat the selection, training,performanceappraisal,coaching,development,
and support of plant manufacturingmanagementpersonnel
must be givenextremeattentionand care in order to groom
people for this rewardingyet arduousprofession.Thesefactors will determinean operation'slong-termperformanceand
the degreeto which a plant manager'scareerwill be a successfulone. When gapsare identified, prudent actionis nec32
Industrial Managemen
essary for both the sake of the manager and the organization.
Without continuous improvement on a personal level, plant
managers and their management personnel will not realize
their full potential, which is simply the mandate needed for
future success. 1m
The Authors
Clinton
O.
Distinguished
Longenecker,
Professor
Ph.D..
is
of Management
the
Stranahan
in the Graduate
School of Business at the University of Toledo. He has published more than 70 articles in practitioner and academic journals in the areas of organizational effectiveness
resource management.
Longenecker
and human
is an active manage-
ment consultant and executive educator who specializes in
improving organizational and workforce performance.
Timothy C. Stansfield,
Ph.D., is the founder and president of
lET Inc., an international industrial engineering and consulting
firm with offices in Toledo, Ohio; High Point, N.C.; Grand
Rapids, Mich.; and Middletown,
providing
advantage,
services
to enhance
Ohio. His primary focus is
productivity,
and management success.
competitive
Stansfield
holds a
B.S. in industrial engineering and an M.B.A. and a Ph.D. in
manufacturing management, all from the University of Toledo.