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What prevents plant managers from achieving goals they strive for?

INTRODUCTION

The revival of the manufacturing industry in the 1990s, can be attributed to a variety of reasons. Technological innovations, market growth in the world economy, and growing demand for high value added products are some of them. Though the overall performance of manufacturers has been more than satisfactory, the focus is on continuous improvement to keep pace with increasing international competition. Highly effective plant management is essential to improve a manufacturers performance.

Technology and workforce productivity are important elements of plant management. However, it is a plant manager’s responsibility to successfully exploit these two resources to achieve the organisation’s goals.

Often the goals set for the plant managers are very challenging. They are expected to increase efficiency, lower costs, improve quality, reduce cycle time, employee turnover and absenteeism, improve safety, enhance innovation, and workforce morale. Simultaneously, they are also expected to increase return-on-investment and shareholder value – no mean task by any standards.

Managers need to enhance their skill in the following three areas to be successful:

  • Interpersonal
  • Conceptual
  • Technical

Good interpersonal skills give the plant manager the ability to successfully communicate with the workforce. Effective communication not only establishes a strong working relationship, but also aids the manager to resolve conflict, promote teamwork, motivate people and delegate tasks. Conceptual skills indicate a manger’s ability to process information, plan, make strategic decisions, provide sound judgement and effectively solve problems. Technical skills involve a thorough knowledge in all areas of operation. Understanding the technicality of the job is extremely important as it is directly associated with the production of value added goods and services. A lack of expertise in any one of these skills, is a sure sign of their inability to maintain a consistently good performance.

However, these three skills alone are not enough for the success of a plant manager. These skills might be helpful in the short run but success in the long run depends on a host of other factors. Managers also need strong support from their superiors and the management as they strive to achieve the goals set for them.

FIFTEEN COMMON REASONS BEHIND THE FAILURE OF PLANT MANAGERS TO ACHIEVE THEIR GOALS

Research was conducted in the United States, by interviewing managers in about 100 manufacturing plants, to identify a few common reasons, which plant managers felt were responsible for their failures. The following fifteen common reasons were identified:

Lack of clear sense of direction

Failure to develop an effective and appropriate plan of action

All talk and no action

Failure to delegate and empower

Communication meltdown

Poor Human Resource Management

Ego problems and poor working relationship

Inability to foster an effective leadership team

Lack of adequate resources

Technology holes, gaps and mismatches

Operation with bad systems, processes and Standard Operating Procedures (SOPS)

Ineffective control and corrective action systems

Bad operational planning

Inability to integrate functions, and resolve conflicts

Losing sight of ultimate goals.

FOCUS ON:

1) Lack of clear sense of direction

2) Failure to develop an effective and appropriate plan of action

3) All talk and no action

Lack of clear sense of direction

Plant managers sometimes have no clue as to what are the organisation’s goals are, and have no clearly defined direction to pursue. Such a situation spells doom for any plant manager. The organisation’s targets for growth, quality, volume and profit margins should be clearly specified and prioritised. Based on this priority, a plan has to be chalked out to achieve these targets. If the priorities are not defined the managers generally end up pursuing goals that are not in line with organisational objectives.

Failure to develop an effective and appropriate plan of action

Once a plant manager and his staff have a clear idea of the organisation’s goals, an effective strategy has to be developed to achieve them. However, it is often observed that in their pursuit to achieve goals, plant managers fail to develop a modus operandi to achieve these goals. The result is that outdated plans, which are no longer relevant to the present organisational goals, are used. Managers are required to be proactive and reorient their strategies in accordance with organisational changes.

All talk and no action

Managers may have a clear understanding of the organisational goals, and develop a suitable strategy for achieving these goals, but all this is of no use unless it is followed by sound execution. A plant manager may simply talk about plans to improve cycle time, but make no changes in the operations to achieve the goal. Or, he may be willing to implement the plan, but is not sure how to take it forward except to issue memos and mandates and send e-mails. Implementation of plans, however, calls for changing attitudes, processes and systems. For successful implementation of a strategy the plant manager should be able to promote teamwork and make system changes to achieve the goals. Otherwise he stands to lose his credibility amongst plant personnel.

FOCUS ON

4) Failure to delegate and empower

5) Communication meltdown

Failure to delegate and empower

The implementation of a change plan can be successful only when it flows down from the manager to subordinates. Plant managers need to delegate responsibility, and give decision-making authority to the right people. If they fail to do so they violate a very fundamental management principle. Only by delegation and empowerment can a plant manager fully exploit the potential of his team. Problems may also occur when the plant manager delegates too much responsibility. Therefore, a manager should be able to draw a line, where to and where not to delegate and empower, and should always couple it with accountability. Problems are compounded, when plant managers themselves are not adequately empowered by their superiors. The consequences of this failure are unclear performance expectations, frustration and a lack of control over resources.

Communication meltdown

Lack of proper information from superiors coupled with an inability to communicate it effectively to subordinates is another reason for the failure of plant managers. Despite advances in communication technology, plant managers sometimes are not able to communicate effectively with their superiors, workforce, customers and suppliers. Operational decisions based on incomplete information are bound to prove ineffective. The outcome of any interaction related to problem solving or problem avoiding largely depends on the communication skills of the plant manager.

FOCUS ON:

6) Poor Human Resource Management

7) Poor Human Resource Management

Poor Human Resource Management

Human Resource Management (HR) is important for any plant manager’s success. Strong motivation is essential to retain talented employees, and keep their morale high. Thus, systems for selection and orientation, training and development, performance appraisals, remuneration, employee benefit schemes and labour relations, should be in place in the organisation. Plant managers need to be supported by the organisation’s human resource policies. The result of poor HR policies is an under motivated, under achieving workforce.

Poor Human Resource Management

An environment of open communication helps in building strong working relationships between employees and managers. Plant managers, perceived as unapproachable, and egocentric are unable to foster a good relationship with the workforce. The result is that subordinates stop trusting their manager, and this may hamper the information flow from subordinate to manager and vice versa. An environment of resentment and mistrust is created. Negative feelings affect labour relations, teamwork, coaching, performance appraisals, problem solving activities, and performance reporting functions.

FOCUS ON:

8) Inability to foster an effective leadership team

9) Lack of adequate resources

Inability to foster an effective leadership team

Cooperation, coordination, and integration within the team is very important for the success of the plant manager. It means that within the team, the plant manager needs to identify some key personnel to lead the rest of the team. Managers also need to delegate responsibility and train subordinate managers. The plant manager should convey the organisational goals to this leadership team and help them formulate operating practices to achieve the goals. A plant manager’s failure to do so will result in performance deterioration. Cooperation among the leadership team and the plant manager sets a good example for the rest of the team to follow. The result of a plant manager’s inability to promote leadership teams is a non-cooperative workforce.

Lack of adequate resources

When adequate resources are not at the plant manager’s disposal, their pursuit of organisational goals is adversely affected. Besides, it leaves the plant manager frustrated. Lack of resources could be lack of funds, technology, manpower, materials or infrastructure. Resource shortage could be the result of any of the following reasons:

a) Inability or unwillingness of the organisation to adequately equip a manufacturing facility.

b) Inability of the plant manager to persuade the top management about the need for additional resources.

c) The budget allocation system, which has to distribute resources, does not function properly.

Plant managers make futile efforts to achieve the required results with inadequate resources. It leads to opportunities being lost, and unnecessary frustration among workforce.

FOCUS ON:

10) Technology holes, gaps and mismatches

11) Operation with bad systems, processes and Standard Operating Procedures (SOPS)

Technology holes, gaps and mismatches

Logic says that the use of the latest technology should be enough for a plant manager to become complacent about the ‘technology’ aspect of plant management. However, in reality it is not enough. A hole in technology exists when an organisation does not have appropriate technology to compete in the market. A gap in technology exists when an organisation has appropriate technology, but due to some reasons is not able to exploit it fully. A technology mismatch exists when an organisation has technology that is not in line with the organisational goals. Plant managers unsuccessfully struggle to match their goals and strategies with the available technology and the result is unsatisfactory performance.

Operation with bad systems, processes and Standard Operating Procedures (SOPS)

Plant managers need to ensure that operating systems and processes in the plant are functioning optimally. It is fundamental for effective plant management. Often, plant managers start their pursuit of new goals, without ascertaining whether the current systems and processes can support the new goal. An effort to achieve goals not supported by the systems, processes and SOPS goes waste, and frustrates the workforce. If a plant manager fails to constantly align the systems and processes with the organisational goals, the management and the workforce will question his ability.

FOCUS ON:

12) Ineffective control and corrective action systems

13) Bad operational planning

Ineffective control and corrective action systems

This is a real test of the plant manager’s technical and conceptual skills. Effective control systems provide relevant data from the operating equipment. A system for corrective actions must initiate appropriate action when the performance of the equipment falls below the desired level. Plant managers should assume a leaders role in creating such systems. If there is a lack of proper standards and systems for control and corrective action, even small problems can assume enormous proportions affecting the overall performance of the organisation.

Bad operational planning

Ineffective leadership in any manufacturing operation is likely to result in chaos. When plant managers fail to focus on daily operational planning, frequent maintenance breakdowns, production shortages, problems in receiving, shipping and staffing and changeover delays become the norm. Such an environment lacks the discipline required for the smooth functioning of the plant. As these problems become repetitive, the workforce develops a tendency to be reactive rather than proactive. Effective operational planning saves the plant manager and the workforce the trouble of crisis management.

FOCUS ON:

14) Inability to integrate functions, and resolve conflicts

15) Losing sight of ultimate goals

Inability to integrate functions, and resolve conflicts

An important part of a plant manager’s responsibility is to integrate various functions in the plant. The synergies of these functions are to be directed towards a single common goal of serving the customer, whether internal or external. Departments like engineering, production, shipping, sales, personnel and information technology should be able to function together in harmony, under the able leadership of a plant manager. Apart from technical and conceptual skills, to promote teamwork a plant manager needs to be diplomatic and be a good listener. If the plant manager does not possess these skills he may not be able to resolve conflicts, which results in infighting. Teams unnecessarily compete against each other, and are thus get distracted from their real goal.

Losing sight of ultimate goals

Sometimes, in their effort to achieve short-term goals like increased productivity, reduced cycle time or implementation of new corporate programmes, plant managers may lose sight of their long-term goals. The success of any plant manager is not measured by his ability to achieve short-term goals. But success for a plant manager is measured in terms of customer satisfaction, company profitability, and the creation and retention of an excellent workforce. Thus, the plant manager’s ability to distinguish between long-term and short-term goals is critical for his success.

The above discussion makes it amply clear that lack of any the requisite skills results in plant managers’ failure to achieve the goals. However, this may not be the sole reason, at times lack of support from the top management is also one of the causes of failure. Support can be in the form of resources, technology, information, clear definition of goals, empowerment, feedback and coaching and effective corrective-action system.

THE FIVE IMPORTANT FACTORS THAT AFFECT THE PERFORMANCE OF THE PLANT MANAGEMENT

Five key factors – focus, planning, resources, processes and people greatly affect the performance of the plant management. These factors are applicable not only to the plant managers but also, in a narrower domain, to the front line managers in the plant. A frontline manager is a ‘mini plant manager’ who deals with the same strategic and operational issues that the plant manager does.

Focus. The plant manager needs to ensure that the overall manufacturing operation has a clear sense of direction and strategic focus. Frontline managers also need to ensure correct interpretation of the goals by the workforce. Once the workforce in the plant is clear about goals and focus, the plant manager and the frontline managers need to delegate responsibility and decision-making authority to the required people, making them accountable for results.

Planning. It is a plant manager’s responsibility to chalk out a strategy to achieve goals with maximum input from the people who will implement the plan. Effective strategic and operational planning on the part of the plant managers and frontline managers is a must for optimal performance of the manufacturing operation. For frontline managers, the strategic plan should aid operational improvements and the operational plan should focus on activities like production schedules, maintenance activities, training and the like.

Resources. The plant manager should be able to garner enough financial support for his operation, deploy appropriate technology and take steps to put together an effective workforce. It is then the responsibility of frontline plant managers to ensure that financial resources and technology are properly used for operations and the Human Resource policies formulated for an effective workforce are implemented. Resource management is important for the optimal performance of a manufacturing operation.

Processes. Without appropriate processes, focus, planning, and resources are of no use. It is the plant manager’s responsibility to have an efficient operating system in place, which closely monitors the operations and triggers a corrective action if the performance of the operation falls below expected level. The frontline manager has to ensure that the operating systems serve their design purpose, promote teamwork and monitor workgroup performance, as well as initiate corrective action when workgroup performance is below expected level.

People. An effective and motivated workforce can be a boon to any plant manager. Plant managers should share a good working relationship with their frontline managers. To have the desired working relationship sharing information, listening and coaching are important skill plant managers need to possess. They should be able to initiate change in the operations as well as prevent political infighting. The same applies for frontline managers. They also should share a good working relationship with their workgroup and be able to implement the change initiated by the plant manager.

Besides the plant manager and the front line managers, their superiors should also understand the implications of the five factors discussed above. Though, for a plant manager’s success a lot depends on the personal skills of the manager, the support of the top management goes a long way to help the plant manager achieve organisational goals.

Related Reading:
Why plant managers fail: Causes and consequences. Longenecker, C.; Industrial Management,


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