Building an Environment of Trust, Respect and Open Communication ...

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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.

B U I L D I N G A N E N V I R O N M E N T O F T R U S T, R E S P E C T A N D O P E N C O M M U N I C A T I O N

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P A C K A G I N G

I N T E L L I G E N C E

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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B R I E F

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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B R I E F

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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B R I E F

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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B R I E F

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.

About PMMI The Packaging Machinery Manufacturers Institute (PMMI) is a trade association representing more than 500 general members who manufacture packaging and packaging-related converting machinery in the United States and Canada. PMMI’s thirty-two supplier members manufacture commercially available packaging machinery components. PMMI's vision is to be the leading global resource for packaging. Its mission is to improve and promote members' abilities to meet the needs of their customers. PMMI produces three tradeshows: PACK EXPO International, PACK EXPO Las Vegas, and EXPO PACK México. Visit www.pmmi.org and www.packexpo.com for more information.

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