turing technology solutions across a broad spectrum of industries. The most recent twenty years have seen the company ac
PA CKAGING INTELLIGEN CE BRIEF
Building an Environment of Trust, Respect and Open Communication: How Barry-Wehmiller Brings Out the Best in its People Through inspired leadership, this manufacturer taps human potential that supports its phenomenal growth and stability by energizing its work force.
by Packaging Machinery Manufacturers Institute
About the Packaging Intelligence Brief Series
Packaging plays a critical role in our global economy and touches the lives of everyone. For over 70 years, the Packaging Machinery Manufacturers Institute (PMMI) has been the leading global resource for packaging manufacturers to learn about industry trends, obtain training and get involved in networking events. PMMI is proud to introduce the Packaging Intelligence Brief series which focuses on trends that are shaping the future of the industry. Over the next year, PMMI will regularly release Packaging Intelligence Briefs to address various topics that are significantly impacting packaging and outlining how suppliers and manufacturers are responding to market needs.
Building an Environment of Trust, Respect and Open Communication Through inspired leadership, this manufacturer taps human potential that supports its phenomenal growth and stability by energizing its work force.
With a strong 120-year history, Barry-Wehmiller
ly stable global company with 5,000 individuals providing
Companies, Inc. is a great American company story.
equipment and services from 50 locations worldwide.
From a small beginning, it has grown into a $1 billion global supplier of engineering consulting and manufac-
The growth of Barry-Wehmiller in itself is remarkable, but
turing technology solutions across a broad spectrum of
the unique corporate culture that guides this large and
industries. The most recent twenty years have seen the
complex organization is even more so. “We measure suc-
company achieve 20% compound annual growth in rev-
cess by the way we touch the lives of people” is the com-
enue while acquiring 42 companies and integrating them
pany’s simple, modest statement of its innovative goal of
into its 10 business units.
creating a sustainable business enterprise that will have a positive impact on the lives of the people touched by the
The experience and expertise contributed by the acquired
company. This includes both its internal team members
companies, plus the organic growth within Barry-Wehmiller
and the many associated people—from suppliers and cus-
stimulated by the response to increasing equipment sales
tomers to team members’ families—the company comes
and consulting activity, have created a balanced, financial-
into contact with in the course of the business day.
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Guiding Principles of Leadership We measure ‘success’ by the way we touch the lives of people.
Strategy plus nourishment Has this philosophy been the engine that has driven the dynamic growth of Barry-Wehmiller?
No, said Barry-Wehmiller chairman and CEO Bob
A clear and compelling vision, embodied within a sustainable business model, which fosters personal growth.
Chapman, but it nourishes that growth.
Leadership creates a dynamic environment that
“When I ask other business owners how they are doing, they often talk about their exciting new machinery. Our pri-
• is based on trust
mary job as owners is not to design machines, but to
• brings out & celebrates the best in each individual
design companies that will inspire people, who will then
• allows for teams and individuals to have a meaningful role • inspires a sense of pride • challenges individuals and teams • liberates everyone to realize “true success.” Positive, insightful communication that empowers individuals and teams along the journey. Measurables allow individuals and teams to relate their contribution to the realization of the vision.
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design the machines. A successful business enterprise has to begin with a solid, actionable plan and clear strategy, but it is the culture within the business itself that sustains that growth. Companies with great products often fail without the support of a healthy culture based on trust, mutual respect and open communication. Employees who respect and communicate with each other create an environment that directly benefits them, their families, their communities and the company.”
Barry-Wehmiller often targets companies facing market or organizational challenges to acquire. An infusion of capital
Treat people superbly and compensate them fairly.
and technology can take those companies some way
Leaders are called to be visionaries, coaches, mentors, teachers, and students.
often needs the most dramatic restoration. Disheartened
As your sphere of influence grows, so grows your responsibility for stewardship of the guiding principles.
regain its former success.
We are committed to our employees’ personal growth.
lives,” said Chapman, “then I believe we’ll make the right
toward recovery, but it is the culture of the company that
employees have usually lost hope that the company can
“If we think about what we do and how we touch people’s
decisions, for ourselves in the short run and for others in
the long run. And if we all keep this thought in the front
company as the GPL, these guidelines define the com-
of our minds, including me and my entire global team,
pany’s vision of a corporate culture that is founded on
then this guiding vision will sustain us both personally
mutual trust and respect. The principles are rooted in
and professionally.”
the belief that the personal growth of each team member—whether a manager or a line operator or a ware-
Trust, respect, communication
house clerk—increases both the degree of satisfaction
A fundamental belief of Bob Chapman’s that underlies
the individual receives from working and the degree of
Barry-Wehmiller’s approach to its business and to the
commitment he or she makes to the workplace.
part that team members play in the business is the idea that “work” and “life” need not be—should not be—
Chapman’s belief in the potential of people results in
completely separate parts of one’s life.
both a more engaged, productive work force and a more fulfilled group of employees.
Putting this belief into action leads to work becoming an integral part of each person’s life, and therefore the
“The traditional business model is to hire people and tell
values and experience that are part of his or her daily life
them what we want them to do,” he said. “At Barry-
begin to play an important role in his or her work.
Wehmiller, we give them an open forum in which they
Workers are able to go home at the end of the workday
can tell us what they can do and we give them the
feeling good about their accomplishments, and begin the
responsible freedom to do it.”
next day with a feeling of having something of personal value and importance to bring to the job.
For many individuals this new concept, that their company is a dynamic organism in which each of them has
“The challenge to create and sustain an environment
an important part to play, instills pride and an increased
that brings out the best in people,” states Chapman,
sense of self-worth.
“while it helps support strong business results over time, produces a far more important result: it allows our
“The GPL is a solid basis for how we run our business,”
employees to achieve a true sense of fulfillment. They
said
are able to be better parents, friends, spouses and com-
FleetwoodGoldcoWyard, a Barry-Wehmiller business
munity members.”
unit. “It’s easy to be distracted by the details and chal-
Neal
McConnellogue,
VP
of
Sales
at
lenges in front of us and get off track. The GPL, for me, The Barry-Wehmiller GPL at work
is a very simple reminder of what is important and how
At the heart of Barry-Wehmiller’s culture are the Guiding
we should conduct ourselves. It reminds me to be
Principles of Leadership. Known familiarly within the
respectful, humble, appreciative and supportive.”
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McConnellogue, who came to Barry-Wehmiller 12 years
Ed Suarez, VP of Operations at Barry-Wehmiller’s Thiele
ago from a family-owned business, did not find it diffi-
Technologies in Reedley, CA, calls the Barry-Wehmiller
cult to embrace this philosophy. As a team leader, he
approach “taking the handcuffs off” to allow employees
has seen team members “step outside of their comfort
the freedom to give feedback to company leadership.
zones” and do remarkable things as a direct result of the culture Chapman has created.
“We are not driven from the top down,” he said. “Rather, the GPL gives us a guiding vision that inspires
“My role is to help establish the company vision, com-
each of us to contribute our unique gifts to the success
municate where we are going and support team mem-
of the organization.”
bers along the way,” said McConnellogue. “I came from an engineering background, and I originally declined
Before being acquired by Barry-Wehmiller, Thiele had
this position because I couldn’t see myself as a ‘sales-
begun a similar approach to employee empowerment,
man’ in the traditional sense. But I can fully embrace
though on a smaller scale, so the transition to a more
the position of ‘sales team leader,’ which allows me to
trusting culture was not a major adjustment. But for
coach others to greater success.”
Mark Zaiden, Rapid Response Team Leader at
Achieving Principled Results on Purpose a growing business sustained through the power of inspiring people toward a fulfilling experience
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PneumaticScaleAngelus, another company acquired by
they would do. Not everyone comes up to full accept-
Barry-Wehmiller, the change came as a bit of a shock.
ance at the same speed, so I had to think about what it might take to reach that more reluctant person. I also
“Senior management came to our plant and called a group
had to learn to take risks in trusting people.”
of employees into a meeting. We were concerned that we were gathered to discuss something we had done wrong,”
Over the 10 years since the Rapid Response Team was
said Zaiden. “Instead, senior leaders asked us what we
founded, its membership has changed as people moved
thought needed to be different at the plant, and then gave
into new responsibilities and new members joined. Each
us the freedom to implement our ideas.”
has done the job differently, said Zaiden, and each has made it a more effective team.
If an idea didn’t work, management was not concerned with the details of why it didn’t work. Rather, they wanted to know what their next idea was to move toward a solu-
How empowerment benefits Barry-Wehmiller
tion. The new leaders assured them: “We’re with you. We
“One of the most important things we have discovered at
know it’s difficult; just keep moving forward.”
Barry-Wehmiller over the last six years,” said Chapman, “is the unbelievable potential of ordinary people who are
This ongoing support, and the repeated offering of oppor-
given the opportunity to use their gifts. Our employees’
tunities to “step up” and be responsible for making things
activation of that potential is what sustains Barry-
work, has convinced employees that the company really
Wehmiller’s business strategy. We articulate this strate-
does want their participation.
gy as ‘Achieving Principled Results on Purpose.’”
New ways of leadership
Barry-Wehmiller’s Guiding Principles have subsequently
For the leadership teams throughout Barry-Wehmiller,
become the foundation for numerous innovative programs
this way of life also means a new role, becoming men-
in safety, motivation and wellness developed by Chapman
tors/coaches/teachers to their teams, rather than bosses
and his team members that are examples of the GPL in
handing down directions. But in that challenge they also
action, affecting the lives of workers and ultimately their
find a new commitment as part of a team rather than an
families in real time.
individual among a crowd of unconnected individuals. For example, like all companies, Barry-Wehmiller faced Mark Zaiden found that challenge difficult at first. “As
the challenge of rising workman’s compensation insur-
a mentor and coach, I had to learn to stay out of the way
ance rates. The accepted solution was to develop safety
and trust that team members would do what they said
strategies that would bring costs in line with budget—a
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solution familiar to all companies. Instead, Barry-
that has stayed at that increased level. The game pro-
Wehmiller chose to begin its discussion of safety
gram has now been rolled out to 34 of Barry-Wehmiller’s
practices with the question: “What are we trying to do,
companies, with significant sales increases 34 out of 34
reduce costs or keep our people safe?”
times—increases that result not from increased quotas or demands from managers, but from an increased sense
When it became clear that the answer was “keep our
of commitment.
people safe,” Barry-Wehmiller began a new approach to safety that included the creation of the Barry-Wehmiller
A similar “game” in a company with multi-million dollar
Safety Covenant, which focuses not on reducing costs,
annual aftermarket revenue focused on customer service
but on the members of each work team making the effort
workers who felt unmotivated and unappreciated. In this
to keep fellow team members safe. The guiding principle
game, the top seller of aftermarket parts each week would
of the covenant is that people can feel passionate about
receive $100, and if the team made its goal, every mem-
keeping each other safe; they can’t be passionate about
ber would get $100.
lowering the company’s workman’s comp costs. The result: sales immediately went from $714,000 per The result: employees were safer, and workman’s com-
week to $763,000.
pensation costs were reduced by 80%—an enormous savings for Barry-Wehmiller.
Following up, Chapman asked the team how the new program made them feel. Universally, they were
Kicking off the game concept
enthused. Each had a story to tell about their goals for
Another example of Chapman’s unique approach to busi-
the extra money, and how their families were following
ness is the concept of the “game.” He noticed at the office
their progress as closely as they were. All felt immense-
of a company he had recently acquired that everyone was
ly proud of their accomplishments and the tangible
talking enthusiastically about the current basketball playoff
appreciation they received.
games. “Why,” he thought, “can’t work be that much fun?” He introduced a sales “game.” Every week, the person sell-
“How many people in your organization know every day
ing the most aftermarket parts and the team making its
exactly how well they are doing and what they are going
weekly sales goal would be the winners.
to get if they do well?” Chapman asked the audience when describing this program in a recent speech to a group of
The result: a heightened level of enthusiasm about those
business owners. “The effect of programs like this has
people’s roles in the company and what they did every
made a profound difference on both our company culture
day, followed by a sales increase of 15% the first week
and our performance.”
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New life for a distressed company In a dramatic example of how effective the GPL vision can be, Barry-Wehmiller acquired an 80-year-old machinery manufacturing company in Wisconsin that was struggling to survive. Once a very successful company, the year it was acquired it was expecting to lose $25 million on sales of $200 million. Barry-Wehmiller set a targeted goal in profits for the first year that seemed like a long shot. The company exceeded that goal by a considerable margin.
How? Here is Chapman’s account.
“Everything we aspire to achieve at Barry-Wehmiller was needed in this company. It was struggling to find a vision for its future in today’s challenging economic environment. That had taken a toll on motivation. Even the local union leaders had given up on themselves.
“We simply told the people we were going to build a great American company and run it with inspirational leadership that would restore the employees’ enthusiasm and commitment. And they responded. Financially, we’ve made progress, but I am most proud of the fact that we have
Barry-Wehmiller Customer Relationship Covenant We measure ‘success’ by the way we touch the lives of people.
In every interaction, our customers are entitled to: • Proactive and insightful communication. • Easy access to competent individuals. • People who genuinely care about our customer’s needs and the quality of their experience with us. • People who are empowered to promptly meet their needs and take ownership of the situation.
made a tremendous improvement in that company’s culture, reigniting motivation and instilling pride in the company and a sense of worth in each individual.”
By living this covenant we seek to exceed their expectations and earn their trust.
Visiting the company following the early stage of its success, Chapman asked a group of employees what effect the changes had made on their lives. One man revealed that he had begun to talk more freely with his wife, explaining that the drudgery of working in an unin-
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spired, failing company had been replaced by hope, which
“The difference between our company before and after
had sparked a desire to talk about his work day and about
being acquired by Barry-Wehmiller is like night and
the future.
day,” said Mark Zaiden. “Instability, high turnover and an attitude of working only hard enough to get by has
How companies can awaken the potential of their people
been replaced by people embracing the GPL and wanting to be more involved at work.”
It is estimated that fewer than 30% of employees in organizations today know specifically what the goals of
“Sales is the greatest challenge in business today, but
their company are—or care. They go to work and they
Bob has inspired our sales teams to focus on motiva-
come home—their jobs are not part of their home and
tion, not just products or price,” said Neal
community lives.
McConnellogue. “When we have highly-motivated people in the marketplace with a passion and intensity to
In Bob Chapman’s words, “There is tremendous poten-
sell, we get orders. We have proved it, again and again.”
tial in people.” He believes, and he has proven at BarryWehmiller, that tapping into that resource through inspi-
Chapman summarizes by saying that true success
ration, while instilling a culture of mutual trust and
comes as a result of aligning people’s heads with a
respect and fostering clear lines of communication,
vision for the company, engaging their hearts through
converts that potential to a powerful force that supports
inspiration, and equipping their hands with the means
growth. There has to be a very focused and disciplined
to achieve the vision.
business strategy at the top, but strategy alone will not result in strong growth without a sincere commitment
“If you do that,” he states, “you will get extraordinary levels
by the people within the company
of trust and performance that will energize your company and ensure success. More importantly, your people will go
“The first thing you need to have is a compelling vision
home each day with a true sense of fulfillment and return
and an understanding of how that vision creates value,”
tomorrow with a strong sense of purpose.”
said Chapman. “The second thing is that you have to be able to share that vision with other people—the leadership team—in a way that they will be able to embrace the vision and live it. And finally, you have to inspire people.”
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Barry-Wehmiller Companies, Inc. is a diversified global supplier of engineering consulting and manufacturing automation solutions across a broad spectrum of industries. With more than 5,000 team members in over 50 locations worldwide and revenues topping $1 billion, Barry-Wehmiller has leveraged a strategic combination of acquisition and organic growth to emerge as a recognized industry leader.
The diversity of products and services offered by our 10 interactive divisions ensures that we can provide our customers with comprehensive, integrated industrial and business solutions. Unified by a shared vision articulated in our Guiding Principles of Leadership and Customer Relationship Covenant, our divisions strive to exceed customer expectations with superior communication and world-class service.
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