It’s the Culture, not the People…

Touring the plant, we saw the engineer. He was installing a new thermal sealing machine. It was long overdue…the old one was over 25 years old. It was in such crappy condition that the control knob would randomly move with any vibration…a person walking by was enough to change it. This thermal sealer had been responsible for 3 production runs of sterilized products having to be held and re-inspected. It was also responsible for a recall that had cost the company over $300,000. The replacement was costing $12,000. But capital expenditures for equipment and production defects/quality costs were two separate buckets of money. Despite the obvious benefit of a new machine, it had been delayed for years. But all of that is for another article. This story is about the engineer, a Vice President, and the empowerment of people.

There was a mixture of relief and excitement as people watched the machine being installed. The Vice President of Operations, the man who’d cringed when he signed the purchase order, was among the group. He began talking about the sealer with the engineer installing it. The VP asked some questions about features and functions, the engineer answered thoroughly and politely (despite English being a second language for him). The VP asked about a guide that was laying off to the side; whether it would be installed. The engineer said he’d not been told to install the guide, but he could easily do so. The VP rolled his eyes and, in a berating tone, told the engineer that of course, he should install it. We then continued the tour.

The minute we were out of earshot, the VP began a mild tirade on the stupidity of the engineer…how idiotic that he would have to be told to install the guide. He wondered what other stupid things happened around the place. He began speculating that the problems that had been plaguing the plant were all acts of individual incompetence. Many of us struggled to keep our jaws from dropping open at the comments.

I made the mistake of paraphrasing the old adage, “It’s the culture, not the people…” During our tour, I had seen micromanagement. Detailed work instructions and omnipotent supervisors who demanded adherence to the instructions. Deviation was not allowed. Self-initiative was not allowed. This culture, on top of the lack of capital investment, compounded problems. As equipment squeaked, groaned, and malfunctioned, there was no reward, or support, for a worker, like our poor engineer, to take initiative and fix the problem.

The VP chided me, dismissing my remark. I was new to the company, just two months in, and this was my first plant visit. So he believed I didn’t know better. But I did.

The engineer installing the sealer knew the guide should be installed. But the detailed work order he had from management did not specify it. That is why he asked the question…he wanted it to be done properly. But instead of being rewarded with “Hey, great idea!” or “What, that was left off work order? Good catch!” He was belittled by a senior leader. Guess who will probably never again offer a helpful suggestion?

People want to do a good job, to be able to take pride in their work. Just as Deming stated, I believe it’s a fundamental aspect to work. As managers, as leaders, we must help them be able to do their best work. When bosses don’t provide their teams the proper tools and equipment, when they don’t empower their people to take initiative, or even support them in the least, workers fail. You end up with a plant where people won’t take the extra step, they won’t take the initiative. Engineers who must wait decades for proper equipment and are beaten down for their ideas, become apprehensive about stepping up. A self-defeating culture develops.

Three months after that visit, the plant had another sterilization issue (not from the new sealer). The incident saw 18 semi-trailers of product to be held up, re-inspected, and eventually scrapped. The loss was estimated at just over $4 million. But that was just product cost. That did not account for the labor to re-inspect, overtime to make more product, and the loss of customer goodwill.

A few middle and lower-level managers were fired. But the plant manager and VP of operations stayed, and so did the culture.

About four years later, the company was acquired by a smaller rival…one well known for being supportive and encouraging to its workers. I had moved on by then and lost track of the players. But I do hope that engineer who did the sealer install had a chance to stay and experience a good culture. 

What are your thoughts on culture? Any experiences to share? Would be great to see them in the comments!