Yuhan-Kimberly, a manufacturer, defines its "performance pyramid" as:
1. High productivity (top of pyramid)
2. Lifelong learning paradigm
3. Four crew/Two-shift system
4. Respect for humans (base)
Y-K adopted its Four crew/Two shift system in response to an economic downturn. Under this system, team's alternatively work 12-hour day shifts for 4 days, take a 3 day break, followed by 1 day of training, then a night shift.
This resulted in a doubling of revenue, due to increased productivity.
In addition, Y-K pays for up to 70% of additional employee training.
What in human nature accounts for Y-K's success? Why isn't it more widely adopted? What barriers prevent it being adopted in your company?
The genius of this system is that it simultaneously increased employee productivity, retention, work-life flexibility, morale, and skill-level. People regard an interest in their growth (via training) as a benefit, and reciprocate with higher engagement and loyalty, leading to greater productivity.
However, such a drastic change in work scheduling requires rare imagination, a leap of faith, and the will to implement it, particularly when it requires up-front investments.
The current philosophy of "at-will employment" is a cultural barrier to firms (particularly Western ones) making large investments in employee training. Why pay for training when you can just poach trained employees from your competitors? It seems that such a paternalistic system can only succeed in larger firms with long career-paths and already high employee loyalty.
Callahan Associates is a successful chain of supermarkets, garden centers, home-service centers, and greeting cards. When Bill Callahan, the founder and CEO, proposed two promising areas for expansion, outdoor wear and family restaurants, he encountered a split executive committee. Half was opposed to the "fashion" industry, and the other half to "personal services".
How should Callahan Associates determine "what we are, what we can do, and what we believe in?"
Callahan Associates' strengths are:
1. Their focus on improving the shopping experience (emphasis on friendliness).
2. Their commitment to employee involvement and loyalty (growth and profit sharing).
Alfred P Sloan (CEO of GM from 1920 to 1955) was courteous but formal with everyone in him management team. He never used first names. His philosophy was that a CEO must be objective and impartial. "He must be absolutely tolerant and pay no attention to how a man does his work, let a lone whether he likes a man or not. The only criteria must be performance and character."