Van Dorn Corporation was approached at several points during this time period by a German machinery manufacturer with offers to buy all or a portion of the machinery division. After a protracted hostile takeover battle, a three-way deal was consummated between Mannesmann Demag, Van Dorn Company and Crown Cork & Seal Company that passed ownership of the machinery division to Mannesmann Demag.

The company’s objectives have been consistent since before the acquisition by Demag – to improve quality, to reduce cost and to gain market share. It is within this context that the company began looking for training materials to enhance the concept of associate ownership of results.

The Situation
In 1996, the Strongsville, Ohio facility experienced a union organizing drive that was eventually soundly defeated. [For a six-month period in 1994, a union was recognized at the Strongsville facility as part of a ruling handed down by the National Labor Relations Board relating to events from the mid-1980s at another plant that had been closed. The facility had always been a non-union work environment. The union was de-certified by the associates as soon as it was legally possible.] Out of the process of evaluating the employee-management environment that led up to the organizing drive, a recommendation was made to improve the managerial skills of first line supervisors.

As a result, a team was established in the Fall of 1996 to identify the next level of training required to address managerial skills. 1997 marked the tenth year of a cultural change process that included programs such as Total Quality Management, Quality Action Teams, ODI (Organizational Dynamics, Inc.) Managing for Productivity™ Supervisor Training and the implementation of an Associate Skills/Pay for Knowledge Program. During the initial team meetings, the team noted that a primary key to achieving the goal was to get the Management, Salary and Hourly staffs aligned and prepared to take on new challenges. After a careful examination of the Company’s Strategic Plan, the cultural climate and associate soft skill needs, a matrix was created identifying the “wants and needs” for a formal training process.

The Process for Selecting a Consulting Partner and Methodology
The team analyzed potential training suppliers, compiling a list of consultants including those Van Dorn had worked with before and those who were recommended by other companies. The team pared this list down to four companies who were invited to make presentations about their organization, their resources and their thoughts about helping Van Dorn attain its vision.

After the presentations, individual team members assessed each Supplier’s ability and compatibility on 10 key issues. Each issue could be given a score of 1 to 5, with 5 being the highest. These key factors were as follows:

• Process for understanding & incorporating our culture/needs
• Philosophy & model match with Van Dorn Demag Corp.
• Prescribing appropriate training
• Training approach (canned, customized..)
• Leadership/supervisory training deliverables
• Ownership/empowerment training deliverables
• Ability to Facilitate Training
• Ability to help create energy & rally the organization
• Tools provided /instruction for follow-up
• Investment value

The total scores for each Supplier were then reviewed. Open discussion ensued focusing on the training strategy and tools each company would employ to meet the Company’s expectations. This training would involve every associate employees of VDD, at 5 different locations in Ohio and South Carolina, plus the Field Service Technicians scattered throughout North America. The importance of the supplier capability to send the same message across these boundaries was paramount.

The team recommended Catalyst Consulting Group, Inc. represented by their President Leslie A.Yerkes. A customized five phase, two-year competency development process was outlined. The process included methodologies developed by Training House to provide VDD with a replicable solution that mirrored the competency model established by the selection team. The solution began with assessments, both subjective and objective, followed by skills development and concluding with post-assessment for both individuals in supervisory positions and the general associate population.

The DECIDE Process
A formal Steering Group was established to work with Leslie. The purpose of the Steering Group was to guide and champion the process. The endeavor was designed to be systemic and viewed not as a quick fix but a long term, sustainable, developmental process to increase the competency of all associates in pursuit of becoming a high-performance organization. Sub teams were developed to support the effort:

Communication to always let associates know what is going on with DECIDE;
Measurement to establish measures and continuous improvement targets for leaders, associates and the company;
Transfer of Training to think of ways to help you apply what has been learned to your job;
Volunteers to help spread the word of DECIDE;
Recognition to reward associates that support the DECIDE process.

Over the course of two years the organization invested approximately $487 per associate employee averaging between 56 and 72 hours of assessment and direct skill development. All assessment results were provided directly to the participants and although it was not required, they were encouraged to share results with their supervisors and others in their workgroup.

In October of 1997 the journey began with:

• Piloting of the MAP (Managerial Assessment of Proficiency) and a 360 degree feedback tool (Perspectives) for individuals in supervisory positions and ACT (Assessment of Competencies) for associates;

• The roll-out began with an orientation for all supervisors (from team leader to CEO) to the “Role of the Supervisor”

• Each individual then participated in the two-day Managerial Assessment of Proficiency assessment and interpretation process. Each was expected to complete an Individual Development Plan by the end of their coursework, including the post-assessment

• Mentors were assigned to each MAP participant

• Van Dorn Demag decided that all individuals in supervisory positions had to participate in all twelve of the EXCEL skill-building models to provide a common language and competency framework. The modules were offered over the course of 12 months.

• As the supervisory personnel completed their MAP, the associates were introduced to ACT (Assessment of Competencies)o

The Current State
As of this writing, the venture continues as the Human Resource Development Department (HRD) continues the process of supervisory development utilizing MAP and EXCEL. A major share of our Managers and Supervisors have completed MAP training. The remaining supervisors/managers are still engaged in the supervisory training as it continues to be a mandatory effort. The ACT pre-assessment is also still administered to every incoming associate. For TEAMS, the associates can request skill segments “on demand” based on their team need, individual growth efforts or business challenges. In addition to “on demand” needs, a TEAMS module is rolled-out every month and is offered to all associates at every level and shift. We have a full course catalog outlining the offered training.

Facilitation and training roles are also now done entirely in-house. The Manager of the Human Resource Development department administers all assessments, pre and post. The Manager of HRD and the Associate Involvement Coordinator serve as Trainers for the EXCEL modules and champions the TEAMS modules. Train the Trainer sessions have taken place and internal trainers, both recommended and volunteers, are each assigned one module to be “expert” in training. They are additionally called upon for assistance by the HRD department for individual team requests of a particular module.

The actual modules have also been revisited to customize the material in order to align with our own company’s goals, objectives and our particular industry. The HRD department reads through the module initially and does pre-work for “Van-Dornizing” the module. The original cross-departmental DECIDE Transfer of Training Team is then called together and gives their own suggestions based on their department’s needs. Finally, the HRD associates meet with the TEAMS trainers and they finalize the information to be presented within the course. Evaluations show that this type of training is more inclusive of our associate’s needs and our company’s culture.

On Going Activities
At the beginning of the process it was understood that hallmarks of the process effectiveness would include:
A decreased involvement of the external consultant
The adoption of a framework for consistently developing individual competency
An increased ownership and involvement of associates in the process
A decrease of resistance to developmental efforts
An increase in competency, improved relationships and results

Lessons Learned
During the process of training many groups and evaluating interim results, the Steering Group came to numerous realizations that influenced the remaining course of events. The main lessons can be summarized as follows:

• The importance of clear communication up, down and across the organization cannot be underestimated

• Even though management understood the strategic direction of the company, more discussion was necessary with the bulk of the organization (including supervision)

• Follow through is difficult to obtain and enforce within our culture [The mentorship commitment was not carried out through the whole DECIDE process]

• An orientation to measurable financial results should be the focus of any training or team activity – competency training without the team-based, results-focused project driver was not as useful or effective [In fact, the entire ACT/TEAMS approach was changed from a pro-active to re-active basis. Training is now given on request to an individual or team, based upon their evaluation of need to accomplish their project goals]

• Changes in attitudes occur subtly and in pockets, not uniformly and is gained and lost on a daily basis.

“Our job is not complete – in fact we have not achieved all that we hoped through this process. It turns out changing a long-standing culture takes lots of hard work and commitment from the very top of the organization. I think that the most important and lasting legacy is the realization that we can achieve more than we thought possible by encouraging and harnessing the capability we have within Van Dorn Demag.”
Jeffrey D. Schad
Vice President, Finance

Case contributors

Jeffrey Schad    | Vice President Finance & Accounting
oooooooooooiooVan Dorn Demag Corp.

Jennifer Irwin  | Manager Human Resource Development
oooooooooiiooooVan Dorn Demag Corp.

John Stack         | Manufacturing Manager
oooooooiooooooVan Dorn Demag Corp.

Leslie Yerkes    | President
ooooooooioooooCatalyst Consulting Group, Inc.