1st. Review of the Key Concept & Tools of Human Resources Management:
- Basic Premise: Success=Strategy ¡ÁOrganization
- Organizational Capabilities=DNA of Competitiveness
= Employee Mindset ¡Á Employee Competency
¡ÁEmployee Governance
Top Down
- Culture transformation involves three steps: clearly define cultural destination, cultural audit to identify major gaps, develop tools to create new mindsets and behaviors. Cultural changes can be driven from three directions: top down, outside-in and bottom up;
I would like to use the above concepts and tools to reshape the mindset of employees because Tuthill is restructuring the organization to meet the requirement of strategy adjustment
2nd. The Importance of the Reshaping Employee Mindset for Tuthill China
Tuthill Corporation is a multinational company with over one hundred years¡¯ history. The headquarter is located in Chicago, USA and there are about 40 plants all over the world. The annual turnover of Tuthill Corporation is USD1billion. The products were classified to 9 major business units: vacuum and blower systems, pump group, coupling group, controls group, energy system, linkage group, transfer systems, plastic group and transportation technologies. Now there are two joint ventures of Tuthill Vacuum & Blower Systems in east China, one wholly owned company of Tuthill Suspension Technology business unit located in Beijing, and one representative office of Tuthill Corp. and one global sourcing office located in Shanghai. With the business development of Tuthill in China, Tuthill Corp. decides to change the JV with Shanghai Electric Corporation(Shanghai Kinney Vacuum Equipment Co., Ltd.) to WOFE, and merge the organization of the JV, Tuthill Shanghai representative office and global sourcing office under the roof of new WOFE. The ambitious plan of Tuthill is to increase the annual turnover from present USD18 million to USD100 million in 2010.
Now we are facing the following challenges:
- Different strategy in China between each business unit and Tuthill Corporation. Each president of Tuthill Business Unit would like to set up its own subsidiaries in China and control the daily operation. If all these subsidiaries are integrated in China, the presidents of each business units will lose the power and control for these subsidiaries and probably they even have to cut their manpower in USA due to the high cost in USA when Tuthill China expands and grows. However, to do business in China, all the subsidiaries under one roof is better choice for a middle size company as Tuthill Corporation.
- Different style among American, British and Chinese. The managing director of Tuthill Asia Pacific is a British while many line of business of Tuthill Corporation are located in USA. The working style of American is quite different from that of British and Chinese.
- Different systems among the several subsidiaries of Tuthill Corporation in China. Obviously the joint venture with SEC is more like state owned company with lowest efficiency and lowest remuneration, the joint venture with Japanese has much more strict systems and customer oriented systems in daily operation.
Reshaping the employee mindset becomes urgent and critical to our success in China.
If we can not reshaping the employee mindset, we will have the following problems::
- Difficult to attract and keep the talented people.
- Can not reach seamless integration and high efficiency;
- No synergy among present different organizations of Tuthill China;
- Resistant to change
Alternatively, if we can reshape the employee mindset, the potential benefits could be as following:
- Attract and keep excellent people and bounce the ineffective and demotivated employee;
- Build leadership throughout the organization;
- Value Streams integrated with Strategic Intent provide customer value to drive the business successes;
- Increase our market share in China and be a market leader in our served industries
3rd. KPIs and Timetable for the Improvement
KPIs: Revenue, NOPAT, Customer Satisfaction, Learning and growth ability.
4th. Summary of Personal Action Plan
| Area of improvement
(1~2 Areas) |
Expected Results |
When to
Complete |
How to Do it? |
Required Support or Resources ($$$, approval, information) |
| Manpower inventory review |
Keep the talented people and bounce the redundant people |
Start in Oct. 2006 and complete in Dec. 2006 |
Set up a Matrix to define the present staff based on ¡°motivated¡± and ¡°effective¡± |
The exact definition for ¡°motivated¡± and ¡°effective¡± |
| Radical Leadership training to build a conscious company(Top down) |
Consciousness and awareness has been introduced in the entire organization;
The need for change and the related vision are strongly supported due to the belief in leadership |
Start in Nov. 2006 and complete in Mar. 2007 |
- Arrange team leaders to study and discuss the training material of Radical Leadership;
2. Ask CEO of Tuhill Corporation visit China and give 3 days training to key leaders of Tuthill China |
The support from the top management; |
| Voice of customer(Outside in) |
Nail the customer wants and drive our business strategy |
Start in Nov. 2006 and complete in Oct. 2007 |
- Give training to sales manager about the standard VOC process;
- Do the VOC process with proper representatives from the customers in different market segmentation and application;
- Evaluate the information and take appropriate countermeasures
|
1st. The facilitator and trainer from Tuthill USA for VOC process;
2nd. USD20K for the travel expense of the selected customers for our VOC process; |
| Area of improvement
(1~2 Areas) |
Expected Results |
When to
Complete |
How to Do it? |
Required Support or Resources ($$$, approval, information) |
| Take out low value added activities: Lean Tuthill China(Bottom up) |
Lean product development(LPD) is used with demonstrated success |
Start in Nov. 2006, but be Continuous activities(Kaizen) |
- Identify and implement the opportunities to improve LPD standard works;
- Setup workout group and cross functional group to eliminate all the unnecessary and no value added activities in the whole value stream.
|
- Introduce Tuthill Business Systems to China by Tuthill USA;
- Conscious company tools to improve team efficiency
|
| Performance evaluation systems |
Performance driven HR systems: PRD, Incentive, Promotion and separation systems |
Start in Dec. 2006 and complete in Mar. 2007 |
- Give training to managers and staff for the performance evaluation systems;
- Communicate with managers and staff for the new PRD evaluation systems;
- Make sure the criteria, process and systems open, fair and transparent
|
- Support from top management for the new PRD systems;
- Approval from CEO for the new PRD evaluation systems
|
| People Management Effectiveness |
95% staff are motivated and effective |
Started in Jan. 2006 and be continuous activities |
- Use feedback from 360 degree as mirror and baseline for improvement;
- MBA coursers or other mandatory top-down management skill traning program;
- Classroom outside classroom: Learning by doing
|
- USD20K to sponsor the MBA program of 3 key managers;
- USD50K for management skill training;
- Support from CEO
|
