High-involvement organizations (HIOs) have gained traction as a powerful strategy for enhancing employee participation, commitment, and productivity. This case study explores how Air Products and Chemicals, Inc. (APCI), a Fortune 200 company, implemented a high-involvement strategy to boost performance across its plants. By fostering employee involvement, enhancing information access, and aligning incentives, APCI significantly improved its operational metrics and overall business effectiveness.
The Context of Air Products and Chemicals
Air Products and Chemicals, Inc. is a leading industrial gas and chemical manufacturing company, serving diverse markets including electronics, refining, pharmaceuticals, steel-making, and aerospace. The Process Systems Group Operations (OPS) division was tasked with manufacturing and delivering high-volume industrial gas products. Despite several quality initiatives, there was considerable variability in key performance metrics like quality, safety, and productivity across its plants.
Emergence of Performance Challenges
Chris Loyd, Vice President and General Manager of OPS, identified that the highest-performing plants shared four key factors: employee involvement, information access, technical capability, and incentives. Among these, the most significant differentiator was the level of employee involvement. In response, Loyd, along with internal OD consultant Jim Byron, initiated a high-involvement strategy to extend these practices division-wide.
The Role of High-Involvement Strategy
APCI's high-involvement strategy was designed to influence each of the identified performance factors. The approach included:
Employee Involvement:
APCI adopted the "Working with Others" (WWO) training to model and educate employees on collaborative problem-solving. This training was aimed at all workforce levels, from hourly employees to top management, fostering a culture of shared decision-making.
Information Access:
The company enhanced its intranet to provide all employees with access to business and division information, within legal and financial constraints. This transparency enabled employees to make informed decisions and contribute effectively to the organization's goals.
Technical Capability:
The WWO training sessions also addressed technical skills and knowledge related to quality improvement processes, ensuring that employees were well-equipped to contribute to performance enhancements.
Incentives:
A gain-sharing system was implemented to reward team performance at the local level. This system included incentives for plants serving similar customers to share information and best practices, promoting a collaborative and performance-oriented culture.
Emphasis on Training and Development
Training played a central role in the high-involvement strategy. The WWO sessions engaged employees in assessing their current involvement levels and identifying quality improvement challenges. These sessions not only provided necessary knowledge but also immediately applied it, fostering an environment of continuous improvement. Over two years, every member of OPS received training, and over 100 trainer-coaches were developed to support ongoing improvements.
Outcomes and Reflections
The high-involvement strategy at APCI led to significant improvements:
Operational Efficiency: Enhanced employee involvement and access to information streamlined processes and reduced performance variability.
Employee Engagement: The participative culture increased employee satisfaction and commitment, resulting in lower turnover rates.
Performance Metrics: The gain-sharing system incentivized performance, leading to measurable improvements in quality, safety, and productivity across the division.
APCI's success underscores the importance of a systematic approach to employee involvement, strong leadership commitment, and a culture of continuous improvement.
Implications for Organizational Development
The case of Air Products and Chemicals highlights that successful high-involvement strategies require comprehensive planning, robust training programs, and aligned incentives. Organizations aiming to enhance performance through employee involvement can learn from APCI's experience by adopting similar strategies and fostering an inclusive, transparent, and performance-driven culture.
Conclusion
The high-involvement strategy at Air Products and Chemicals demonstrates the transformative potential of employee involvement in enhancing organizational performance. By implementing strategic principles and fostering a supportive environment, organizations can achieve significant performance improvements and long-term success.
Connect with OrgEvo Consulting
At OrgEvo Consulting, we specialize in helping organizations implement high-involvement strategies and other organizational development interventions. Our services include comprehensive training, strategic planning, and continuous improvement programs designed to enhance operational efficiency and employee engagement. Contact us today to learn how we can support your organization in achieving excellence.
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