Posts Tagged ‘Definity Partners’

Is the Gap Between China and the U.S. Shrinking

Wednesday, May 25th, 2011

Blog article by Ray Attiyah, Chief Innovation Officer

Manufacturing in China or using Chinese suppliers is not the bargain it once was.  Chinese wages are rising at a rate of about 17% per year and a new study by Boston Consulting Group predicts wage rates in China and the United States will converge in 2015. There’s more to the story than labor costs.

There are changes happening here in the U.S. that are contributing to the decisions more and more companies are making to manufacture a higher volume of products and components on U.S. soil.  Productivity in America is going up.  Companies that embrace a culture of employee led, continuous improvement are finding that they are driving out waste, improving quality and competing globally.  They are also putting more emphasis on innovation.

Our friends at PDI communications in Springboro, Ohio saw this first hand.  The changes they made in 2010 in their TV assembly area created capacity for a new production line that was cost competitive with manufacturing anywhere.

Not far away in Enon, Ohio, Seepex is preparing for seven million dollar plant expansion.   The expansion will allow Seepex, a worldwide manufacturer of industrial progressive cavity pumps and systems, to increase capacity and add capability as a research and development center of excellence.

Of course, China will always be a force in manufacturing and we recognize savvy business leaders need to evaluate their options very closely and come to their own conclusions about how to best meet their manufacturing and supply chain needs.

Definity Client PDI Recognized in the Media

Tuesday, May 3rd, 2011

Dayton Business Journal 4.28.11

We would like to extend our most sincere congratulations to our Springboro, Ohio client, PDI Communication Systems. PDI’s 2010 improvement effort was recognized in the most recent edition of the Dayton Business Journal for its continuing improvement results, including a 20% increase in revenue. The company also recovered enough floor space through lean and 5S initiatives that president Lou Vilardo was able to increase local production without a costly plant expansion.

Those of you who joined us on our PDI plant tour in March saw the results first hand. The workers are engaged in a culture of employee led continuous improvement. Not only has productivity and profit increased but so has worker satisfaction.

In the article, “PDI increases local manufacturing” reporter Joe Cogliano called attention to the role Definity Partners played in guiding the company’s lean initiative. Definity Partners project managers were in the plant on a daily basis working side by side with managers, supervisors and line workers teaching lean tools and modeling employee engagement and leadership practices. Click here to enjoy the article.

What Does It Look Like?

Monday, March 21st, 2011

Blog Article Written By:  Ray Attiyah, Chief Innovation Officer

When I talk to business leaders about Run, Improve, Grow® they often see the benefit for themselves of forming the discipline of getting out of the daily run and spending more time on work that produces growth.  What they sometimes can’t see is what it would mean to their organization if their middle managers and supervisors spent less time fighting fires. “I don’t know what that looks like,” they tell me.

There seems to be an acceptance that good managers are good fire fighters. True to some degree, but wouldn’t it make more sense if what they did best was work with the operators to keep the fires from starting in the first place?   What does that look like?  Now I can show you.

At PDi Communication Systems in Springboro, Ohio, we recently had a chance to document, in video form, what employee led improvement looks like.  I hope you will take a moment to see for yourself. Clicking on the thumbnail will open a new window where you will click to play.  Enjoy, and please share with others.

PDi, Tuning in Success

7 Obstacles that Prevent Companies from Growing

Friday, January 21st, 2011

Blog Article Written By: Ray Attiyah, Chief Innovation Officer

Obstacle #1: Spending Too Much Time with Draggers, Too Little Time with High Performers

One of the top seven mistakes leaders make is spending a disproportionate amount of time with the lowest performers.  At Definity Partners, we call these employees “draggers.” They represent about only 10% of the workforce.  The next employee tier is called “followers.” These individuals represent 80% of the workforce. Finally, the top-tier is called “performers” and they represent the final 10% of employees.

Performers are often complainers. They are frustrated that their efforts have gone un-noticed or under-appreciated. They are confused as to why they are being ignored. They’re mad at the level of performance of their peers and they can’t understand why low performance is being accepted.  While you may not always like their attitude, it can be a clue that the leaders in the company aren’t effectively doing their job. Frustrated performers usually traverse one of two paths. They either take their talents elsewhere or they give only what they need to give as opposed to what they are able to give.

Leaders distinguish themselves from managers by inspiring performers to a higher level. By spending more time developing top performers rather than correcting draggers, leaders can raise the organizational standard.  It’s a chain reaction. Performers improve, and as the name insinuates, the followers will move up the ladder to close the gap.  It then becomes apparent to the draggers that if they don’t improve, they will be forced to leave.

So why do so many managers get stuck with the draggers? It is because managers are trained problem solvers. This is one of the hardest behaviors to change on the way to becoming a leader, but they have to understand what they give up in their campaign to improve the draggers.  They sacrifice the opportunity to develop inspired talent that will raise the level of the entire group.

Here’s an exercise. Write down the names of all of your top performers. If you had to start a new organization and could only take 10% of your employees with you, who would they be? Have a conversation with these individuals and ask them what their frustrations are. Analyze what their answers say about the organization, about you. Then, go out and remove as many of those obstacles and frustrations as you can.

If they see you remove those frustrations and make improvements quickly, they will have confidence to bring new ideas that improve the organization. When you have a confident, talented group of individuals striving to reach higher levels, you have a stronger, more innovative company.  Instead of being down in the weeds with the draggers, your time will be freed to focus on improvements and growth opportunities that are more invigorating personally and more important to your company.

So, one more question to answer. Are you a manager or are you a leader? What do your daily interactions tell you?