The is a case study of an 11 year implementation of a Training and Performance Improvement Strategy at an automotive parts firm.

1. Toward a Knowledge – based
Organization
The Foundation of Operational Excellence
and Sustainable Competitive Advantage in
the North American Automotive Industry
A Case Study
Norm Nopper, MA, BBA
Director, Varanor International
1

2. Objectives & Topics
Obj ti Ti
• Background
– The Client
– Auto Industry Trends: Strategic and Operational
– Automotive Parts Industry: Challenges
• Client R
Cli t Response to Challenges
t Ch ll
– Become a Knowledge – based Organization
• Building a Curriculum for Sustainable Competitive Advantage
– Manager/Supervisor Development Program
a age /Supe so e e op e t og a
– Team Leader Development Program
– Employee Skill Development Program
• Implementing Support Strategies
– Evaluation of Training
– Talent Management System
• A Few Details
• Next Steps/Year 10 and Beyond
Toward a Knowledge - based Organization 2

3. The Client
Th Cli t
• The client is an automotive parts manufacturer specializing in
engines, transmissions and fuel systems. It has 8 factories located
in North America.
• Profile of North American employees:
– Each factory has between 150 – 250 front line employees.
– Average length of service: 20 years.
– Average age: 45
A
– Education:
• In most factories, less than High School Diploma.
• In factories with large populations of recent immigrants Bachelor and even
immigrants,
Masters degrees.
– Language barriers.
• Most people speak English as a Second Language.
• Substantial number of employees speak little or no English.
Toward a Knowledge - based Organization 3

4. Auto Industry Trends:
y
Strategic
• Gl b l S
Global Supply D
l Development and P h i
l t d Purchasing
• Developments in Automotive Technology
• Changes to the Traditional Automotive Business Model
– Need to manage the relentless price pressure from customers.
– Traditional Customers (GM, Ford, Chrysler) may exit permanently from
automotive assembly.
assembly
– Need to develop immediate business and long term relationships with
non – traditional customers (e.g., Toyota, Nissan, Honda, Peugeot).
– Geo – economically, the need to develop business and long term
y, p g
relationships in countries and regions where existing and emerging
automotive companies are establishing manufacturing facilities.
Toward a Knowledge - based Organization 4

5. Auto Industry Trends:
y
Operational
• It
Integration of Automation and Process Controls into the
ti fA t ti dP C t l i t th
Production Process
• Developments in Process Technology
p gy
Toward a Knowledge - based Organization 5

6. The Automotive Parts Industry:
Challenges
• At
Automotive P t I d t Ch ll
ti Parts Industry Challenges:
– Assist our existing customers
– Win business with new customers
• How?
– Traditional Methods:
• Lower costs Given the present state of the auto
industry, these tactics have proven not
• Improve quality
sufficient.
• Improve delivery
– Innovative Methods:
This is a core value for organizations that
• Ideas/Suggestions
are built to last.
– from ALL employees
Toward a Knowledge - based Organization 6

7. The Automotive Parts Industry:
Client’s Response to Challenges
•BBecome a K Knowledge – b
ld based O
d Organization
i ti
• A Knowledge – based Organization focuses on aligning
Five Critical Factors:
1) Making sure the right Information
2) Flows to the right People
3) At the right Time
4) To make the right Decisions
5) To satisfy the right Stakeholders.
Toward a Knowledge - based Organization 7

8. A Knowledge – based Organization:
The Vision & Philosophy
The right Information = Key Metrics
The right People = Preparation through Training, Education and Personal
and Professional Development
The right Time = Engagement; each employee has the confidence to act,
and the leadership support; if an employee acts in good
faith, but makes a mistake, there will be no negative
consequences.
The right Decisions = Knowledge Applied
The right Stakeholders = Customer Delight
Employee Delight
Shareholder Delight
Do no harm to unrelated third parties
Toward a Knowledge - based Organization 8

9. The Vision
Th Vi i
Present State Future State
• Metal “bashing and forming” • Development, assembly and
delivery of complete
• Component assembly
automotive systems
• Mass Production
• Modern manufacturing
• Employees are machine
practices (e.g., Toyota
operators, assemblers,
Production System)
cleaners, trades people, etc.
• Employees see themselves as
fully engaged businesspersons
Toward a Knowledge - based Organization 9

10. Building a Curriculum for Sustainable
Competitive Advantage
Comprehensive
Organization – wide
learning assessment
(Year 8)
Launch of Operator Skill
Development Program
(Year 6)
President Announces Competitive
Mandate: “To thrive, our company must
become a Knowledge – based
Organization.” (
g (Year 3)
)
Launch of Team Leader Development Program (Year 2)
Launch of Manager/Supervisor Development Program (Year 1)
Comprehensive Organization – wide learning assessment (Pre - launch)
Toward a Knowledge - based Organization 10

11. Curriculum for Sustainable Competitive
Advantage
Program Focus
Employee Skill Development Promote Engagement and Interest in the business;
Program Change the front line employee’s view of him/herself: “I am
g py
a businessperson. I am part owner of MPT, and I produce
components, systems and solutions for our customers in
the Auto Industry.”
Team Leader Development Lead through Influence
Program (without resorting to Formal Authority)
Management/Supervisor Lead through Influence, and use Authority Responsibly
Development Program
Toward a Knowledge - based Organization 11

12. Support St t i
S t Strategies
Comprehensive
Evaluation Talent Management
Organization – wide
learning assessment
(Year 8)
Participant Learning: Paper & Launch of Talent Evaluation
Launch of Operator Skill
Pencil and Performance and Succession Planning
Development Program
Testing (Year 8)
T ti (Y Systems (Y
St (Year 9)
(Year 6)
President Announces Competitive
Participant Satisfaction Talent Management
Mandate: “To thrive, our company must
Surveys (Year 1) Systems also served to
become a Knowledge – based
evaluate Participant
a ua a pa
Organization.” (
g (Year 3)
)
Job Performance
Improvement
Launch of Team Leader Development Program (Year 2)
Launch of Manager/Supervisor Development Program (Year 1)
Comprehensive Organization – wide learning assessment (Pre - launch)
Toward a Knowledge - based Organization 12

13. Becoming a Knowledge – based
Organization: Stages
Stage 1: Training Culture
– Management views training and development as a critical investment in the
future of the business.
– Management views soft skills – interpersonal skills, relationship building
skills building,
emotional intelligence – as critical success factors, on par with technical
skills.
Stage 2: Learning Culture
– Employees view training and development as a critical investment in them.
– They actively seek learning and developmental opportunities.
Stage 3: Knowledge Based Organization
Toward a Knowledge - based Organization 13

14. Implementing the Vision: A Ten Year
Journey
•D
Develop a T i i C lt
l Training Culture: Y
Years 1 – 5
• Develop a Learning Culture: Years 5 - 9
• Knowledge – based Organization: Years 9 +
Toward a Knowledge - based Organization 14

15. Employee Skill Development Program:
Sample Course Topics
Level 1
1) Understanding Business Operations: Your Job Matters!
2) Effective Communications
3) Team Skills
4) Decision Making and Problem Solving
Level 2
1) Six Sigma Awareness
2) Business Values
3) Decision Making & Problem Solving
4) Effective Communication
5) Team Skills
Level 3
1) On the Job Training
Toward a Knowledge - based Organization 15

16. Team Leader Development Program:
Sample Course Topics
1) The Role of the Team Leader
2) Reviewing Job Progress
3) Health, Safety and Environmental
4) Effective Communication 1: Basic Principles
5) Effective Communication 2: Skill Practice
6)
) Coaching Team Members
g
7) On the Job Training
8) Team Motivation
9) Leading a Diverse Team
10) Problem Solving & Decision Making
11) Personal Effectiveness (Personality Resources International)
Toward a Knowledge - based Organization 16

17. Manager/Supervisor Development Program:
Sample Course Topics
1) The Role of the Manager & Supervisor
2) Managing the Employee’s Charter
3) Effective Communication 1: Basic Principles
4) Performance Appraisal and Review Meetings
) pp g
5) Principles of Motivation
6) Fair and Effective Discipline
7) Effective Communication 2: Skill Practice
8) Coaching for Performance Improvement
9) Managing Diversity
10) The Manager/Supervisor and the Law
11) S
Successfully M
f ll Managing th D t t A
i the Duty to Accommodate
dt
12) Positioning Managers & Supervisors for Successful Management of the
Workplace
Toward a Knowledge - based Organization 17

18. Evaluation P
E l ti Procedures
d
• Before Training:
– Performance: Talent Evaluation
– Knowledge: Pre – test
• During Training:
g g
– Performance: Participant In – class Performance Assessment
– Performance: On the job assignments
– Knowledge: Module Skill Reviews
• After Training
– Knowledge: Post – test
– Performance: Talent Evaluation
•IImmediately upon completion of all program modules
di t l l ti f ll dl
• Six months after completing the program
• Twelve months after completing the program
• Thereafter annually
Thereafter,
Toward a Knowledge - based Organization 18

19. Locking in Progress
and Continuing Development
• Employee Skill Development Program:
El D l tP
– Proceed to deliver Levels 2 and 3.
– Implement the Training Within Industry courses Job Instruction and Job Methods.
• Team Leader, Manager and Supervisor Development Programs:
Leader
– Continue and reinforce use of Learning Reinforcement tools.
• Learning Plans, Journals, on the job assignments.
– Continue evaluation strategy; refine and improve its application.
– Begin providing evaluation data to factory management.
• Factory managers need relevant, accurate information to make staffing decisions
regarding their Leadership and Management teams.
• Advanced Management Training:
– Use and improve the Talent Management/Succession Planning process.
– Develop a formal Mentoring program.
– Partner with a University to develop an Executive Development Program.
Toward a Knowledge - based Organization 19

20. Year 10 and B
Y d Beyond
d
• I year 11, th project was t
In 11 the jt transferred t the client.
f d to th li t
• Today, in – house personnel manage and continue to
develop the p
p process.
For more information, contact
f
Norm Nopper, nsnopper@varanor.com,
or visit www.varanor.com
Toward a Knowledge - based Organization 20