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W hen the recession hit hard last year, extendedlayoffs were the obvious strategy in manyorganizations. Not so at Paper ConvertingMachine Company (PCMC) in Green Bay, WI

and other operations of the Barry-Wehmiller organization.Instead, Barry-Wehmiller CEO Bob Chapman and other sen-ior leadership halted 401k contributions for several monthsand asked associates to take four weeks of furlough (one weeka month through the end of the fiscal year), seeking to mini-mize the impact on employees. Union associates voluntarilydropped their 401k contributions in solidarity with otherassociates. Associates were encouraged to contribute “What Idid on my furlough” stories that were posted on the Barry-Wehmiller intranet, reflecting the company’s philosophy ofrecognizing and celebrating people, said Dick Ryan, the com-pany’s lean journey leader. Despite the challenges of a strug-gling economy, the company continues its spirited, long-termcommitment to cultural change and improvement in variedoperations. When business improved, he noted, Barry-Wehmiller increased the 401k match to make up the lost con-tributions from last year.

Visitors at PCMC frequently hear that “We have a longway to go” alongside enthusiastic accounts of progress todate. Asked how the company can continue to invest heavilyin training/development/coaching during hard times, associ-ates tend to talk about passion, empowerment, and, “It’s theright thing to do.” Along the way, key performance improve-ments in the Green Bay operations range from reduction ofthe acquisition physical inventory from $18 million to $7 mil-lion; and on-time shipping of service parts at acquisition was70 percent (now 92 percent), modification business at aquisi-tion was 57 percent (now at 78 percent), and major equip-ment at acquisition was 75 percent (now at 96 percent).Here’s how associates at PCMC in Green Bay are buildingmomentum for change, and how the changes affect them.

Strengthen Trust and Understanding

The PCMC drive to create a working environment builton shared trust and people-centric leadership started in2005 when its four Green Bay facilities were acquired byBarry-Wehmiller, recalled Craig Compton, vice president-operations. Effective communications feed the trust andunderstanding needed to eliminate and solve day-by-dayissues, he said. For example, daily team meetings (“touchmeetings”) on each shift and all other functional areas in theGreen Bay plants are essential to organization-wideprogress, according to Compton. In addition to performanceupdates and questions about process issues, problem-solv-ing activities (root cause analysis and countermeasures,etc.), associates also share news of birthdays, graduations,and other reasons to celebrate during touch meetings.

A strong communications and engagement challenge isgetting everyone — including front-line and senior leader-ship — on board with lean and the company’s Living Legacy

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of Leadership (L3), Compton said. L3

is the company’s own philosophy,crafted as a blend of people-centricleadership and lean concepts. Itencompasses:

• Continuous improvement• Passion for people• Daily communication/sharing/

listening• Shared partnership built on trust• Empathy and respect for others• Encouraging others to discover,

develop, and apply their talents• Recognizing and celebrating indi-

viduals and teams• Strengthening the heart and soul

of the organization.1

While engineering and operationspeople are now more accustomed tousing lean tools and participating inkaizen (improvement) events, othersare still in a firefighting mode. “Oneway to encourage change is going tothe gemba — walking with leaders inthe plant to ask about processissues,” said Compton. “We all needthis to get involved, and to reallyunderstand how work moves fromone work center to another.” Withcomplex designs and equipment (seethe accompanying box about PCMC),frequent design changes, tight dead-

lines, and high quality standards, theurgency for daily process improve-ment is continual.

A painful but necessary IT/opera-tions-led switch from SAP to the InforXA system several years ago provedcritical to more accurate communica-tion on process planning and flow,

Compton added. “We had many dis-connects,” he said of the transition.What they gained: better visibilityabout current status against plan, anddata on “hidden” aspects of the busi-ness such as administrative processes(engineering drawing release and pro-curement processes, for example).PCMC still uses MRP (MaterialRequirements Planning), with noapologies. “It tells us when and whatwe need to buy and make,” Comptonsaid. “It creates a drumbeat, a betterunderstanding of what is needed in abuild-to-order environment. The busi-ness needs accurate information, orthe system will create chaos.”

There’s more to learning aboutyour process flow than looking atcomputer updates, he emphasized.“We listened to our factory associatesabout the lack of materials, software,or tools to do their job,” he said. Anew rule was created: No manufac-turing order (m.o.) unless you’reready to go with everything needed tomake it happen. “We’ve migrated tostandard work in the plant, and nowwe are extending it to other areas,including leadership,” Compton said.

Jeff Magnin, at right, team leader at the Glory Road facility recognizing Doug Magninfor 20 years of service at PCMC.

About PCMC and Barry-Wehmiller

Approximately 800 people work in the four Green Bay, WI facilities of PaperConverting Machine Company (PCMC), part of the Barry-Wehmiller organiza-tion. Associates in the Glory Road, Ashland, Cormier, and NorthernEngraving plants manufacture converting equipment for tissue, towels, andwipes as well as printing, coating, and laminating equipment used in the pro-duction of bags and wrappers. Service parts, mods (modifications andrebuild), and F.L. Smithe (an envelope manufacturing operation) are addedvalue streams.

Barry-Wehmiller Companies, Inc. is a diversified global supplier of manu-facturing technology and services across a broad spectrum of industries. Thecompany’s vision of “Achieving Principled Results on Purpose” is reflected inits commitment to people-centric leadership with disciplined operationalstrategies and purpose-driven growth. This strategy has sustained a patternof nearly 20 percent compound annual growth for more than 20 years.Company revenues surpass $1 billion and it employs more than 5400 teammembers around the world.

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“Every day, everyone needs to under-stand what they need to do for thatday, and have what is needed to doit.” He noted that value stream map-ping (VSM) is among the lean toolsthat have helped PCMC associatesbuild needed understanding. A “lead-ership checklist” (see the accompany-ing illustration) encourages personalaccountability and leadership amongall associates — and action based ontheir learnings.

Communications: It’s Personal

Talking with associates andteams, posting information on what’sneeded for the day/shift, and daily“touch meetings” at the start of eachshift spark understanding, saidDennis Butz, a team leader inPCMC’s Glory Road plant. Associatesshare what they need — fixtures, etc.— before they can get started onmanufacturing orders.

While customer satisfactionranks high at PCMC, employee satis-

faction is essential to smoothly-run-ning processes, Butz said. The dailyteam meetings — including celebra-tions such as birthdays and otherspecial events — support associates’quest for safer, better ways to do theirjobs. In turn, they may have moretime to spend on setup reduction orother improvements.

Said Mike Smith, an associate inthe Glory Road plant who works insubassembly of Service Parts, know-ing how you’re contributing to thedaily and overall needs of the busi-ness is important. “I feel responsiblefor my area,” he said. “We’re part ofthe planning for the work flow in ourarea; we’re not just a cog. We makechanges when they are needed — forbetter fit, or to solve a problem. Whenwe are thinking more as a team, weare working smarter, not necessarilyharder. There’s no finger-pointing.We get sales and shipment numbersdaily. We also get the ‘good to go’ —that we have everything we needbefore we get started on a job; thatabates frustration. Before, we were

always behind. Now we can flex fromone area to another. With communi-cation both ways, we feel like wemake a difference, that we are beingheard.”

Change Processes, Sometimes Lives

More effective communicationsextend to administrative areas aswell. “Getting personal” — not relyingon numbers alone to measure andcommunicate success — is essentialto better performance, said BobHarrington, PCMC director offinance. In addition to daily informaldiscussions, the professional staff (14people) in finance meets twice a weekto go over issues and opportunitiesfor improvement. “We earn the rightto sit at the table and share ourknowledge as we track orders, ship-ments, margins, etc. daily, and bymaking it easier for users to makeneeded changes,” Harrington said. “Weneed to communicate as a group, notas 14 individuals.”

Through participation in kaizenevents, finance associates havelearned “they can change processesand sometimes, change a life,”Harrington said. They’ve continued tobuild trust in each other as well.Although the numbers are important,people-centric leadership shinesattention on individual associatesand their teams, Harrington said.Rotating staff members to work inother functions creates mutualunderstanding of metrics, and howthe numbers affect the business andits employees as well as customers.“We build people, not just machines,”Harrington said. “If you take care ofpeople’s hearts, they’ll go the ends ofthe earth for you.”

Harrington said finance is stillworking on means to develop greatertransparency about its process,learning how to communicate “moreas a roundtable.” Meeting as a teamto critique monthly budgets, holding“lunch and learn” sessions to discusstopics such as hoshin kanri and the

Leadership Checklist – “Awesome Responsibility”

All Barry-Wehmiller employees are encouraged to practice leadership in dailyactivities. Their Leadership Checklist:

I accept the awesome responsibility of leadership. The following describe myessential actions as a leader:

• I practice stewardship of the Guiding Principles of Leadership (the compa-ny’s philosophy of nurturing organizational and personal growth by offering an inspiring and fulfilling experience) through my time, conversations, and personal development.• I advocate safety and wellness through my actions and words.• I reflect to lead my team in achieving principled results on purpose.• I inspire passion, optimism, and purpose.• My personal communication cultivates fulfilling relationships.• I foster a team community in which we are committed to each other and to

the pursuit of a common goal.• I exercise responsible freedom, empowering each of us to achieve our

potential.• I proactively engage in the personal growth of individuals on my team.• I facilitate meaningful group interactions.• I set, coach to, and measure goals that define winning.• I recognize and celebrate the greatness in others.• I commit to daily continuous improvement.

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company’s dashboard process,increasing cross-functional training,developing disciplined daily standardwork, and investigating better fore-casting methods are among improve-ment strategies in play. “To be suc-cessful, we need to understand andcommunicate why we need toimprove in cost and cycle time, etc.;all 800 people here rely on eachother,” said Harrington.

Build Connections

This sense of interconnectednesswas echoed by Bart Hardy, director oftechnical services (field service leader)at PCMC. “When we started with lean,there was a tendency to think of it as

something more for manufacturing,”Hardy said. He recalled traditionalcycle time delays caused by processhandoffs followed by invoice mailings(covering technicians’ time and travelcosts) to customers. In turn, cus-tomers had another 30 days to pay.“We went from 45 days to eight days tosend an invoice for service,” Hardy saidof results achieved through kaizenactivities. “Our goal is five days. It’sgetting easier to make changes. Whenwe changed our processes, people’sjobs got easier.” Continuing challengesinclude the use of several operatingsystems that are not integrated, henoted.

In the department’s “customerservice communication room” depart-

ment associates meet regularly to dis-cuss current issues and work flow.During weekly touch meetings of serv-ice managers for various globalregions, service demands or problemsare shared. Field service managersalso coordinate “continuation trips” —when technicians visit customers andfinish a job, they may call on othercustomers in the vicinity and askabout service needs. Metrics on cus-tomer feedback, schedules, etc. areposted in the communications room.

Clearly enthusiastic about the newways of shared problem-solving, Hardysaid that his communications under-standing and manner significantlychanged after he participated in a com-munications class offered by Barry-

Recognition and Celebration: “People Need to Feel that They Matter”

How do you know when your organization’s recognition and celebrations are well received by employees? “They’re the thingspeople want more of,” said Rhonda Spencer, Barry-Wehmiller’s director of organizational empowerment. “When the cultureis right and a team or individual is recognized, others around them are smiling and feeling the same sense of joy,” she said.

“Our hope is that recognition and celebration go beyond a corporate program,” Spencer added, noting that they are keyleadership fundamentals included in Barry-Wehmiller University coursework — and that students practice recognizing oth-ers during their studies. “People need to take this on as their own, to make it more special. People need to feel that they mat-ter, that they are significant in our business.”

Meaningful recognition and reward can be something as simple as getting a “thank you” from a co-worker, senior leader,or others in the organization. For example, anyone in PCMC can award a fellow employee with a free lunch card for notableefforts. Barry-Wehmiller also has formal award programs recognizing leadership throughout the organization.

Peer-driven SSR (Super Sportster Roadster) awards offer an opportunity for recognized employees to hear what theirco-workers feel about them. Recipients (ten per year at each plant) get to drive one of the company’s flashy sports cars fora week, after an award presentation (and the rest of the day off). They also get some gas money and their photo is postedon a wall in their plant. Employees can nominate other associates for the award and peers vote on the final choice for eachplant.

“In some organizations, anger is the only emotion that’s usually expressed — if someone missed a deadline, for exam-ple,” said Spencer. “We encourage people to sincerely recognize others for doing things right. Everyone in our organizationis a leader regardless of his/her role or position; they can choose to take responsibility for expressing recognition of others,and we give them the opportunities to do so.”

Firefighting or problem-solving recognition is a more traditional form of recognition in other companies. “Instead weencourage the recognition of ‘fire-lighting’ activities — solving the real problem,” Spencer said. “Recognize the thing you wantmore of, such as sustained excellence or process changes.”

Recognition is respectful of the individual, noted Andy Pringle, engineering manager at the company’s PCMC operationsin Green Bay, WI. Some people prefer a private “thanks” while others appreciate sharing in a recognition ceremony with co-workers. “You need to try things out, to work on improvement of individual and team recognition,” Pringle said. “Peers recog-nizing peers, for example, can take a little more time.”

Added Brian Wellinghoff, director of Barry-Wehmiller’s L3 journey, “Continuous improvement can be a rough journey, alife-long journey of growth and improvement. As on a long car trip, people need at times to stop and look at the map, to seehow far you’ve come, or to get directions, to buy gas. Recognition is like some of the rest stops along the way. You’re notstopping your journey, but taking time to recognize milestones.”

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Wehmiller. “We learned about commu-nications styles, about giving andreceiving information, and how not tobe defensive in our communications,”he said. “We start making extremeimprovements when we communicateon a different level.”

Keep the Faith

Despite earnest, extended trainingand development efforts throughoutPCMC, significant challenges remainin changing cultural practices, accord-ing to Scott Johnson, PCMC managerof lean promotions. Although manyassociates have been trained in leanand L3, some managers and supervi-sors haven’t yet received the training.Misunderstandings can happen whenassociates expect new ways from oth-ers who haven’t learned the new “lan-guage.”

Johnson recalled the hazards oftrying to implement change too fast.“We’ve tried to learn and live our visionquickly,” he said. Following the PCMCoperations’ acquisition by Barry-Wehmiller in 2005, plant associateswere introduced to the basics of leanthrough a four-hour lean overviewtraining program and began participat-ing in kaizen and other improvementevents. Johnson and other lean practi-

tioners introduced 7S (adding Safetyand Satisfaction to traditional 5S goalsof Sort, Straighten, Sweep, Schedule,and Sustain). The improvement pacepicked up, with initially-promisingresults in quality, cycle time, etc.Workplace organization efforts trans-formed what had been a “dark dun-geon” to a cleaner, brighter workplacedesigned with associates’ safety inmind, according to Johnson. By the

summer of 2006, at least three kaizenevents were scheduled each week inthe Green Bay operations. Rapidchange’s downside emerged. “Webegan to realize that we were doing toomany events to sustain the improve-ments or bring closure to them,”Johnson said. “So we had to put thebrakes on.” Slowing the pace ofimprovement projects for a time helpedto sustain longer-term staying powerfor the project teams’ gains.

A key turning point: Hoshin kanri(strategy deployment) was introducedin 2007. Johnson believes that thisorganization-wide shift brings neededfocus on the long-term pattern andresults of improvement initiatives.PCMC’s divisional policy deploymentmatrix denotes strategies (such asgrowth through strategic acquisitionand alliances, and implementation ofan enterprise-wide lean transforma-tion). Also included in the matrix aregoals (financial position, revenuegrowth, speed to market, etc.) as well ashoshins (key initiatives such as pack-aging equipment development, com-mercialization of a new press design,etc.) for the various PCMC operations(from sales to operations, field service,financial administration, etc.).

7S team members, front left to right, Jim DeLaurelle, Amy Butterbrodt, Jodi Wisnicky,Lloyd Heier, and Larry Johnson; back left to right, Roger Ruplinger, Chris Kueter, PatWilliams, and Pat Farvour.

Kaizen team discussing value stream mapping for the Service Parts Value Stream.

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Johnson also counts the launchof Barry-Wehmiller University (BWU)in 2007 as an effective means tobroaden the understanding and useof L3 and lean concepts needed forthe company’s success. BWU instruc-tors are drawn from within the Barry-Wehmiller ranks. Students selectedfor BWU courses, held at variouscompany operations, will “lead thecharge” into more agile, people-focused leadership, paving the wayfor better performance.

“The company doesn’t look at thecost of this conversion,” Johnson saidof hoshin kanri and training initia-tives. “What’s important is that it’s

the right thing to do. We have learneda lot so far, but we have a long way togo. Broader understanding will devel-op as leaders and supervisors receivetraining about adapting lean with apeople-centric focus.” The idea is tonurture cultural change andimprovement while avoiding fixationon “making the numbers” that char-acterizes lean implementation insome organizations. “We have a visionwe are striving for, and we are work-ing toward it,” Johnson said.

The company’s success in sustain-ing lean improvements over time willdepend on how deeply the L3 philoso-phy is understood and practiced on a

day-by-day basis, said Dick Ryan.“Respect for people — how our visionis reflected in the ways we work withpeople — will help us to meet businessneeds as we meet the needs of people.”

Lea A.P. Tonkin, Target editor-in-chief,lives in Woodstock, IL.

Footnote1. Vinas, Tonya, “Capturing CompetitiveAdvantage of Employee Fulfillment,” TargetThird Issue 2009, pp. 6-13; and Lea A.P.Tonkin, “Executive Suite, People-CentricLeadership,” an interview with Bob Chapman,CEO of Barry-Wehmiller, Target Third Issue2010, pp 48.

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