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The
Miracle of Pittron Steel
by Peter B. Grazier
Published in EI Network October 1, 1997 |
A few months ago, my friend
Ray Martin, Chief Operating Officer at Camden County Health Services
Center told me of a man who has spent his entire adult life working to
instill such a belief in work organizations. Ray was attempting to bring
him to the center to work with his people. The man's name is Wayne
Alderson of Pittsburgh, Pennsylvania. I contacted Wayne to find out more
about his work. As we spoke I found a great depth of experience that
underpinned his life's work. Wayne sent me a copy of a book about his life
called Stronger Than Steel: The Wayne Alderson Story.
The book is a sobering but
inspiring look at a life of struggle that prepared Wayne for the work he
would later do so effectively. It also detailed a powerful story about how
a workplace can be dramatically changed by valuing people. For me, it was
one of those books I just couldn't put down.
The importance of this story
for those of us in the "organization change business" is that it
points to real root causes of change process failure. Many of the
decisions we make are driven by our beliefs about people. And if those
beliefs include little value for the contributions others can bring, then
real participation is probably doomed from the outset.
In 1965, Wayne Alderson accepted a job in the financial
department of Pittron Steel, a steel foundry in Glassport, Pennsylvania, and by 1969 he
had worked himself up to the position of controller and chief financial officer. As
controller, Wayne was responsible for the financial management of the company, and Pittron
was in financial trouble. The massive foundry, covering seven blocks along the Monongahela
River, was typical of the many steel mills of western Pennsylvania.
The nerve-wracking noises, noxious odors, and
ever-present soot created an oppressiveness that hung in the plant all day and night.
Pittron was a filthy place to work, and it did not bring out the best in its people.
In 1972, Pittron was on the
verge of explosion. There was so much hostility between labor and management
that tension was at a peak. On the surface, the issues appeared to be
economic---the plant was in trouble financially and the union, the United
Steel Workers, had made concessions. But under the surface, workers were
feeling animosity over other issues---qualitative issues concerning matters
of dignity and personal respect. Despite the company's financial
condition, the men went out on strike in October of 1972. The bitterness,
charges, and countercharges resulted in what was called "eighty-four
days of hell."
Just before the strike, Wayne
Alderson had been promoted to the position of Vice President of Operations.
Alderson had been critical of the company's policy of "management by
confrontation" and intimidation of the workers, arguing that it simply
didn't work to improve productivity and quality. Against all industrial
relations protocol, Alderson decided to meet secretly with USWA Local 1306
President Sam Piccolo, a tough and skilled representative for the plant's
people. He wanted to present a plan called "Operation Turnaround."
The difficult meeting broke the ice that had held management and the union
in its grasp for years, and began a relationship between Alderson and
Piccolo that has continued to this day. Alderson felt that management had
to make the first moves to convince the workforce of its sincerity. And so
he began by walking into the plant to talk with people.
The first person he visited was
a "chipper," who performed one of the hardest and dirtiest jobs in
the plant. The chipper chips away defects from large steel castings with a
heavy jackhammer. Alderson said, "Let me have a crack at it." And
with that, he removed his suit coat and climbed onto the casting. He lasted
all of three minutes and conceded that whatever the company paid the man, he
earned every cent of it. Within a few minutes, every worker in the plant
heard of the incident. By his gesture, Alderson had dignified the least
respected task in the plant. As he took more symbolic steps to
demonstrate dignity and respect, Alderson began to break down the industrial
traditions of the past.
Space limits the detail to which
we can discuss this story (I highly recommend the book), but I was
particularly struck by one episode that speaks to the need for dignity,
respect, and spiritual sustenance. Knowing Alderson was a man of God,
one day Sam Piccolo, at a lunchtime gathering, began jokingly needling him.
He asked if Alderson was "ready to start teachin' us about the
Bible?" Over the next few days the subject came up again, and Alderson
began to think they were serious. So informally, the two men began to
discuss the Bible, accompanied by a few others from the plant. As time went
on, more and more men joined the group. As it grew, they moved the
discussion to an abandoned storage room located directly under the open
hearth. The dismal room looked like a catacomb. So the men cleaned out the
spider webs, brought in stray cats to control the rats, and set up benches.
The men referred to the place as
their "chapel-under-the-open-hearth," and one man made a sign that
simply said "Chapel." Others began to make their own contributions
to the chapel. Wednesday's were set aside for the Bible study meetings.
Initial skepticism gave way to belief, as the group grew gradually into
hundreds. Workers families were noticing the changes also as love,
dignity, and respect were replacing hostility. The ensuing months
brought a dramatic change in the plant and its people. Something powerful
was bringing an order to life in the plant.
The
Results Carried Over
Wayne Alderson is not a
"softy. He is a hard-nosed, practical manager focused on the
performance of the organization. The difference is how he goes about getting
results. By truly valuing people, which he interprets as demonstrating
love, dignity, and respect, a foundation is laid for high-performance.
Over the next 21 months, Pittron's turnaround was as dramatic as any in the
annals of American industry.
- Sales went up 400%
- Financials went from a deficit of $6 million to a
profit of $6 million
- The workforce grew from 300 to 1200
- Productivity rose 64%
- Labor grievances went from 12 per week to 1 per year
- Chronic absenteeism running 20% dropped to less than
1%
- Quality of product became the best in the history of
the plant
- A poor safety record went to an outstanding one
- Workers became customer oriented and ultimately its
best sales people
A
Man and A Concept Ahead of Their Time
With profits running high, Pittron was sold by its
parent company. Even though Pittron became the shining star in the new organization its
management style was just too radical for the new company. Alderson was given the
opportunity to remove himself from the Bible study group, but politely refused. His
refusal to change his management style at Pittron resulted in his termination from the
company. The work world in 1974 was not ready, even when the evidence was overwhelming,
for valuing people at work.
Fast-Forward
to 1997
As I sat at the rear of the conference room at Lucien's
Manor in Berlin, New Jersey, I wondered what was on the minds of the eighty people in
attendance. Camden County Health Services Center had a history of tension between
management and labor. People were carrying old baggage, some for many years. Tony Peters,
CEO of the center, rose to welcome the group to this one-day seminar called Value of the
Person.
Tony was followed by the center's union leadership, who
supported the need for the seminar. I thought of the courage it took the management team
and the union leadership to move forward with such a process.
Wayne Alderson had come with his
team: his daughter Nancy Jean, his wife Nancy, Sam Piccolo, Gloria Scumaci,
and Reid Carpenter of the Pittsburgh Leadership Foundation. Throughout the
day, the message was consistent. There is a basic truth of life based
upon valuing people that is under pinned by three elements: love, dignity,
and respect.
Initial
skepticism and cynicism slowly turned to belief---belief that years of
confrontation could be reversed if each person took responsibility for his
or her own baggage.
We watched the film Miracle
of Pittron that chronicled the astonishing events of the 21-month
turnaround. Stories told during the day became real faces, and tears flowed
as each person confronted the tragedy of a management system that devalues
people. That evening a dinner was held for these employees and their spouses
as the message of valuing people moved from workplace to home. Several
people spoke that evening, but I was most struck by the comments of Rebecca
Moore, President of Council 71, AFSCME Local 2307.
Rebecca said that she would be driving a big truck to
the front door of the center the next morning (metaphorically) to collect all the baggage
that has been around too long. She encouraged everyone to show up in the morning and
unload theirs. But Rebecca isn't one to simply tell others what to do, she then
courageously made a public apology to another center employee in the audience.
A friend Ray Martin has shared
with me his frustrations about the center for many years. Deeply embedded
beliefs are hard to change. But there is always a unique point in time in
the history of every organization when an opportunity presents
itself---business and labor leaders with a vision and desire to change, a
catalyst, and a process. Tony Peters and Ray Martin held the vision, their
labor leaders have courageously supported it, and Wayne Alderson and his
team appeared at the right moment. From what I observed, I have every
confidence that their change process will move forward directly and
dramatically. People will change and the center will be better.
Conclusions
to be Drawn
I think at times that our
resistance to change our workplaces toward more human concepts reflects our
fear of intimacy. We feel uncomfortable when speaking of love, dignity, and
respect. The head and the heart are parts of a beautifully balanced
system we call a human. But somewhere in our evolution we separated the two
when it came to our work. The heart plays a distant second to the head.
But examples such as the Pittron story should, once again, serve to
reinforce that for truly high performance to happen, the heart plays a
central role. And so the movement continues.
My thanks to Ray Martin, Tony Peters, and Wayne
Alderson for allowing me to spend this day of discovery with them and their people. In no
small way they are moving us toward a better understanding of how organizations change.
And a final thank you to Rebecca Moore, for demonstrating what real courage means in the
process of moving forward.
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