How does a declining company regain strong footing in the marketplace as a high performance organization?

"Successful enterprise turnarounds in tough market conditions have both a business side and a very human face," says Ian Sadler, president of Miller Centrifugal Casting (MCC). He shares his insights and the strategies that took U.S.-based MCC from $8 million in revenues in 2003 to more than $22 million by 2008. Transformed inside and out, and under new ownership, MCC is on a global track.

As a large North America producer of steel mill rings and sleeves, many of our products are used for building and rebuilding infrastructure. Science tells us that structural supports are the essential building blocks for solid infrastructure development, but have we ever applied that concept to our businesses? In a philosophical sense they, too, have structural supports that are sometimes in need of repair or replacement.

At MCC, we set out on a journey to rebuild the organization in 2003, giving special attention to five key structural supports -- workforce morale, employee satisfaction through a revamped compensation program, eliminating waste (our version of going lean), quality and customers.

Support 1 -- Workforce Morale

Workforce morale was top of the list. A complex issue to address, it is intricately linked to emotions, attitudes and confidence and loyalty levels. Simply put, rebuilding morale demands a human approach. Instead of looking at MCC's workforce in terms of numbers and output, we began responding to our workforce as individual human beings. In fact, our management team developed a philosophy that employees were to be treated as valued customers; and it became management's job to walk the talk of the Platinum Rule, foster honest communication, spend face time on the plant floor and equip workforce members with decision making power. Slowly, with a couple years' consistent effort, trust (which we discovered is the key ingredient to rebuilding morale) began to take hold.

MCC and ESW At-a-glance
MCC	ESW
Founded 1770	Founded 1770
Based in Cecil, Penn.	Based in Tenneck, Austria
Produces Steel Mill Sleeves, Rings and Large Gear Blanks	Produces Rolls for the Steel Industry (Hot Rolling Mills for Flat-Rolled Products)
Formerly owned by Birchmere Capital LP of Wexford, Penn., and Wilder-Deem of New York, N.Y. (2002-2009)	Privately owned
www.millercentrifugal.com	www.esw.co.at

We learned that trust also was the essential ingredient for the "real," collective buy-in that would drive MCC's successful transformation. Putting out a call for courage, our vision was to comprehensively take company performance to exceptional levels; and we took great care communicating this vision to employees.

Support 2 -- Increased Employee Satisfaction through Gain Sharing

Evidence abounds that pay for performance works (when employees can directly influence their pay levels through behavioral modification), and this proved to be true at MCC. Working with a consultant, we implemented a gain sharing program in early 2005 that was designed with a full slate of checks and balances. The program has significantly benefited the company and its employees. Within four years, MCC's annual revenues increased by 162%, and we attribute much of that success to our pay-for-performance system.

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