HUMAN RESOURCES SERVICES: Solving Root-cause Employee Relations Issues in U.S. Multicultural Company

HUMAN RESOURCE SERVICES:

Solving Root-cause Employee Relations Issues in U.S. Multicultural Company

HUMAN RESOURCE SERVICES: Solving Root-cause Employee Relations Issues

BACKGROUND

A mid-west U.S. private equity firm retained EWA to address problems in two recently-acquired portfolio holdings with complementary lines of analytical testing equipment products. Along with their U.S. locations, one of the companies had a plant in China, the other in Vietnam.

EWA was asked to conduct an Organization Assessment to validate the issues and their causes, and provide solutions to resolve them.

HUMAN RESOURCE SERVICES: Solving Root-cause Employee Relations Issues

APPROACH

Step 1

Data collection, analysis and recommendations

Performed the Organizational Assessment by conducting 3 group interviews to obtain information in the context of their Core Values, and to get input on what managers perceived as conditions on the floor:

    • Top Management
    • Middle Management
    • First line managers
    • Conducted individual interviews with members of a representative stratified sample of hourly employees
    • EWA team members also made many plant tours to see employees at work and observe their interactions with managers and fellow employees.
Step 2

Implement recommended actions

    • EWA prepared a report to management that included recommendations for improvements. EWA reviewed the report and recommendations with management to get agreement on specific steps and priorities.
    • After joint review, EWA finalized a roadmap for improvement. In addition, EWA helped management establish metrics to measure change in hard issues (productivity, financial results), and soft issues (employee relations, complaints).
Step 3

Measure near-term, mid-term and long-term results

Short Term

    • Reset all branding to new company
    • Improve top down and upward communications
    • Establish and reinforce formal recognition programs
    • Accelerated start to develop more effective supervisory skills

Mid Term

    • Expand ESL classes to improve facility communications and foster better team work
    • Resolve lingering transition issues
    • Improve retention of new hires
    • Develop HR systems
    • Continue to develop more effective supervisory skills
    • Identify and rectify any internal equity issues
    • Develop a meaningful Safety program with accountability

Long Term

    • Study ways to adapt effectively to changes in workforce and labor market demographics
    • Develop innovative approaches to recruiting sources
    • Continue supervisory training and bench strength development
HUMAN RESOURCE SERVICES: Solving Root-cause Employee Relations Issues

RESULTS

Based on the data we gathered, EWA recommended short-term, mid-term and long-term tactics and strategies to address the issues.

    • Created a “One Company/One Culture” environment using the PE firm’s Corporate Core Values as a framework.
    • Suggested resolutions to employee relations issues.
    • Gained consensus with Executive Management on issues, priorities and next steps.
    • Developed metrics to measure progress and to guide clear and open communications.
    • Facilitated implementing solutions to enhance employee cooperation, engagement and participation.
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GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

GLOBAL FOOTPRINT SERVICES:

PLANT CLOSURE

GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

BACKGROUND

As part of a global restructuring of business units, a multinational chemical company was closing one of their Chinese production facilities. EWA engaged as Project Leader with responsibility for closure implementation.

GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

APPROACH

Six months prior to plant closure

    • Closure strategy (budget, timing, expenditures, government relations, etc.)
    • Defined implementation team (Operations, HR, Legal, Security, IT, etc.)
    • Development of communication plans (staff, government, external, etc.)
    • Security risk assessment (employee unrest, physical & IP assets theft, etc.)

Three months prior to plant closure

    • Implementation of operational and protective security measures
    • Finalized equipment & inventory disposition, decommissioning plant, etc.
    • External stakeholder negotiations (governmental agencies, landlord, etc.)
    • Obtain approvals from business zone, governmental authorities, etc.
    • Identification of compliance and payment issues, severance packages
Step 3

Upon plant closure and after

    • Finalization of equipment disposition and plant demobilization
    • Filing government documentation in keeping with the registration, business license, board resolutions
    • Filing of all necessary financials, bank accounts, tax, VAT rebates, registered capital and customs documentation
    • Competition of all de-registration and governmental documentation and plant turnover to the landlord
GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

RESULTS

    • No theft of IP assets, physical violence or governmental authority repercussions
    • 100% of employees signed employment forms
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GLOBAL FOOTPRINT SERVICES: SITE SELECTION

GLOBAL FOOTPRINT SERVICES:

SITE SELECTION

GLOBAL FOOTPRINT SERVICES: SITE SELECTION

BACKGROUND

A German-owned chemical company with an ageing facility was being pressured by local authorities to relocate to an “official” chemical processing zone, as part of the Chinese government’s initiative to combat industrial pollution. EWA was engaged to conduct a comprehensive site selection process and provide the client with quantified site recommendations.

GLOBAL FOOTPRINT SERVICES: SITE SELECTION

APPROACH

Create functional definition of plant

    • Purpose for expansion, customers, supply chain, products, capital equipment, etc.
    • Definition of the site requirements & specifications:
    • Size of plant, land requirements, structural requirements, utilities and consumption, logistics, labor force requirements, ground compaction, water table, number of employees, manufacturing space, office space, employee facilities, etc.

Analysis of company performance influencers

    • Logistics, location of customer base, location of suppliers, location of business partners, freight & transportation costs, current property costs, current operational costs, government incentives, etc.
Step 3

On the ground interaction

    • Identification of 7 business/chemical parks for further exploration based upon site & company criteria
    • Personal site visits, face-to-face negotiations, meetings with other companies located in the individual business parks & interaction with local government officials
    • Tours with company executives
    • Negotiations and confirmations of land price and tax incentives
    • Analysis of the impact on startup and operational costs
Step 4

Recommendation

    • Provided 3 qualified location options with full analysis
GLOBAL FOOTPRINT SERVICES: SITE SELECTION

RESULTS

    • Significant tax and land incentives were attained by EWA negotiations
    • Client approved EWA recommendation and final negotiations are currently in process.
    • Client has engaged EWA in the role of “Owners Representative” for follow-on activities including coordinating design and overseeing construction
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OPERATIONAL & COMMERCIAL PERFORMANCE: GROWTH DEVELOPMENT

OPERATIONAL & COMMERCIAL PERFORMANCE:

GROWTH DEVELOPMENT

OPERATIONAL & COMMERCIAL PERFORMANCE: GROWTH DEVELOPMENT

BACKGROUND

A manufacturer of returnable packaging materials for the automotive industry with stagnating sales engaged EWA to identify and qualify sources of business growth potential.

OPERATIONAL & COMMERCIAL PERFORMANCE: GROWTH DEVELOPMENT

APPROACH

360° Opportunity Assessment

    • An extensive review with the client of the construction and technical aspects of the current product portfolio, the market, adjacent verticals, competitor products & customer base.

Opportunity Identification

    • Identification and validation of 12 key industries as qualified verticals for expansion – based upon ease of adaptation, market size, growth potential and profit margin
    • Total of 1300+ potential new customers
Step 3

Short-listing of 5 core industries of focus for a deep dive analysis

    • Off Road Vehicles, HVAC, Outdoor Power Equipment, Pharmaceuticals, Consumer Electronics
    • Total of 370 potential new customers
Step 4

Opportunity Leveraging

    • EWA prioritized the top 10-12 companies per sector (sales channels, geographical location, etc.)
    • EWA conducted an in-depth investigation of each company & senior management and then delivered a biographical summary and contact information for 63 companies
OPERATIONAL & COMMERCIAL PERFORMANCE: GROWTH DEVELOPMENT

RESULTS

    • The client signed contracts with 9 new business partners
    • 13% increase in sales within 18 months
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Human Resource Services: INTERIM GENERAL MANAGER & RECRUITMENT OF A PERMANENT GENERAL MANAGER

HUMAN RESOURCE SERVICES:

Interim General Manager & Recruitment of a Permanent General Manager

HUMAN RESOURCE SERVICES: Interim General Manager & Recruitment of a Permanent General Manager

BACKGROUND

    • A metal fabrication WOFE located in Changzhou with a US parent was faced with a situation involving an ineffective General Manager
    • EWA was engaged to:
      • Recruit and supervise an Interim General Manager
      • Identify, qualify and recruit a permanent General Manager
HUMAN RESOURCE SERVICES: Interim General Manager & Recruitment of a Permanent General Manager

APPROACH

Recruitment & Supervision of an Interim General Manager

    • Preparation & alignment
    • Selection
    • On-boarding & engagement management

General Manager Candidate Criteria, Development & Assessment

    • Hard & soft skills definition
    • Individual interviews
    • Selection of 3 top candidates
Step 3

General Manager Candidate Due Diligence

    • Determination of scope
    • Desk-top audit & field research
    • Forensic review
    • Legal issues
Step 4

General Manager Candidate Final Report

    • Analysis, recommendation & rationale
HUMAN RESOURCE SERVICES: Interim General Manager & Recruitment of a Permanent General Manager

RESULTS

    • Successful search to find a General Manager fitting a specific set of client requirements:
      • Integrity
      • Employee relations
      • Financial
      • Operational skills
    • Six-week search resulted in:
      • 3 highly qualified referrals
      • 1 individual was hired
    • Three months after the new GM reported to work:
      • Plant productivity increased from less than 55% to over 85% and rising
      • Staff productivity increased 15% in the same time frame
      • Customer complaints reduced to less than 1 per month (vs. 7+ over the previous 12 months)
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