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Bringing Passion Back to the Workplace Gatineau
Bringing Passion Back to the Workplace Gatineau Operations Hilton Lac Lemay Gatineau, QC November 27, 2007 AbitibiBowater Is… A global leader in the production of commercial printing papers The world’s largest newsprint producer (6.3 million metric tons of newsprint) A major producer of wood products and market pulp Gatineau Operation Is… A newsprint paper mill located in Gatineau Québec – 380 employees – 360,000 MT per year with 60% Recycle content – 2 Paper Machines 3 Gatineau Mill Gatineau Operations A paper machine… Our History: 1927 Gatineau facility commences operations as a Canadian International Paper Company mill 1982 Canadian Pacific Enterprise buys Canadian International Paper Company, and the mill becomes C.P. Forest 1991-93 C.P. Forest invests approximately $250 million in a De-ink recycle mill, a biomass Power Boiler, a TMP mill and Paper Machine modernization initiatives Our History … 1993 Canadian Pacific Enterprise divests C.P. Forest and Avenor, a public Company is formed 1998 Bowater acquires the Gatineau facility as a part of its acquisition of Avenor 2007 AbitibiBowater is formed Phase 1 1995 Implementing a Continuous Improvement Culture What we did… Based on our customers, shareholders and our expectations, we defined our vision and our values What we did… We identified the roadblocks to our vision: 160 reasons why Gatineau Operations was not performing What we did… 1. We reformulated the problems in 7 key objectives 2. We remained focused on these objectives 3. We shared our Vision, Values and 7 key objectives with everyone 4. Our customers became the only reason of our existence What we did… We increased our employees’ involvement and commitment in empowering them to: a) Bring solutions to solve Quality, Efficiency and Health & Safety problems through Continuous Improvement Teams (44 teams up to now) b) Develop action plans to meet quality improvements and cost reduction objectives c) Measure performance & share results with papermakers through Quality meetings What we did… Every fall, since ‘94, we involve all our managers to participate in our annual alignment session, where we: a) Compare ourselves to best in class b) Use those benchmarks and raise the bar higher in setting new objectives in quality and cost reduction c) Cascade down these objectives d) mobilize our employees into action e) Plan and implement our ideas What we did… We made people proud to work for AbitibiBowater by: a) Changing the physical environment inside and outside the mill b) Participating in community activities such as: AbitibiBowater Municipal Library Newspaper distribution in schools AbitibiBowater theatre nights Hot air balloon festival What we did… We made people proud to work for AbitibiBowater by: Having them proudly identified with AbitibiBowater: Golf shirts, Jackets and Caps Sport bags, Knives Bowater Boutique Pit stop 2001 Satisfaction Survey 2001 Survey Improvement opportunities – Managers were working better, but employees still did not feel empowered – Communication, feed-back, performance management still issues – Plateau had been reached Mission possible Fir st Cu rv e Se co nd Cu rv e (Blanchard and Waghorn, 1997) Bringing Passion Back to the Workplace Why was Bringing Passion Back to the Workplace so important for the Gatineau Operations in the 21st Century ? GUNG HO! Bringing passion back! Spirit of the Squirrel • Worthwhile Work – Knowing we make the world a better place – Everyone works toward a shared goal – Values guide all plans, decisions, and actions Spirit of the Squirrel • We revisited and shared our: »Mission »Vision »Values Our Mission Ensure our customers on-time delivery of top quality newsprint, produced at low cost Our Vision We will be recognized as the best newsprint manufacturing facility in the world Our Vision Passion for the Team Our Vision Passion for the Customers A facility that surpass the expectations of its customers and allows them to become •« Raving Fans », and enthusiastic supporters Our Vision Passion for the Team We continuously monitor our performance using our KPI’s • Health & Safety Health & Safety (KPI) • Incidence Rate • First aids • Recordable injuries • Near misses • Health and safety audits • Departmental safety meetings • Safety inspections Our Vision Passion for the Product We continuously monitor our performance using our KPI’s • Health & Safety • Quality Quality (KPI) 1. Client satisfaction (runnability) 2. Gross Claims (as % of Sales) 3. Customer complaints per ‘000 Mt 4. % first quality production Our Vision Passion for Results We continuously monitor our performance using our KPI’s • Health & Safety • Quality • Cost Cash Cost (KPI) • Fiber (37%) • Salary & fringes (22%) • Energy (16%) Our Vision Passion for Work We continuously monitor our performance using our KPI’s • Health & Safety • Quality • Cost • Productivity Productivity Paper Machine (KPI) 1. Production (Tonnes/Day) 2. Efficiency • Rejects • Slab losses • Operation lost time • Maintenance lost time • Breaks/Day (Wet End, Dry End) 3. Machine speed Our Values 1. Health and Safety / Environment 2. Customer service and Excellence 3. Ethics and encouragement 4. Respect and encouragement 5. Accountability 6. Teamwork 7. Growth to our shareholders + + Our Balanced Scorecard = Way of the Beaver • In control of achieving the goal – A playing field with clearly marked territory – Thoughts, feelings, needs, and dreams are respected, listened to, and acted upon – Able but challenged Way of the Beaver activities Continuous Improvement Teams: process was revamped Increased employee participation through brainstorming for alignment exercise Review of orientation processes Situational Leadership II for all managers Situational Self Leadership (SSL) Gift of the Goose • Cheering each other on – Active or passive, congratulations must be TRUE (Timely, Responsive, Unconditional, Enthusiastic) – No score, no game, and cheer the progress – E=mc2 – Enthusiasm equals mission times cash and congratulations Gift of the Goose activities Praise given through morning meetings, Gung Ho meetings, in newsletters, on electronic boards Rewards given, albeit not systematically, for good results (ex. production records) Health and safety week Our Balanced Scorecard + = Key Performance Indicators (KPI) + Std Operating Procedures (SOP) Passion for Results 2007 Results: Health and safety We maintained our excellent health and safety record OSHA 0.3 Gatineau Operations – Safety Incidence Rate 20.0 15.0 10.0 5.0 0.0 91 Actual 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 Oct. 19.4 18.5 14.3 14.8 9.2 6.6 4.0 1.4 0.8 0.8 1.0 0.9 1.3 1.3 0.9 1.3 0.3 Objective 14.3 14.5 13.8 10.7 10.7 6.9 5.0 3.3 2.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 2007 Results: Cost reduction We reduced our cost by more than: $ 12 Million 2007 Results: Quality Dow Jones medal winner 6 years in a row for service and quality We continue to create Raving Fans! by exceeding customers’ expectations in all areas: Product Quality Service Defining future needs 2007 Results: Gatineau Organization performance profile Direct. Direct. 42% 42% Direction Direction 65% 65% AccountaAccountability bility 69% 69% Acct. Acct. 67% 67% Coordination Coordination and and control control 72% 72% External External Orientation Orientation 94% 94% Capabilities Capabilities 85% 85% Environment Environment and and values values 47% 47% Motivation Motivation 63% 63% Leader Leader ship ship 70% 70% Extern. Extern. 82% 82% Innovation Innovation 66% 66% Leadership Leadership 80% 80% Coord Coord 57% 57% Capab. Capab. 72% 72% Innov. Innov. 50% 50% Motiv. Motiv. 66% 66% Env. Env. 39% 39% overall 2007 Results: Reorganization April 2007 Environment: Newsprint Consumption Down 10% Decision: Shutdown of PM 3 (indefinite) Situation: Gatineau had to redesign itself NOW! Result: Reduction of 200 jobs ( $ 20 Million ) Reaction: Unions worked together with us to minimized the impact on their members Redesign completed June 2007 Success factors Passion for: • Results • Customers • Our Product • Our Team • Work Allowed us to: Bring Passion Back to the Workplace! Work together to implement major changes rapidly ! Challenges: Budget 2008 Environment: Newsprint Consumption Down 38% since 2000, forecast for 2008 reduction of 5-7% Situation: 2008 operational budget rejected and needed to resubmit in 3 days! Challenge: Reduction of $65 per Tonne Reaction: Unions working with us to minimized the impact on their members Our team understands that we must succeed Next Steps: Implement Manufacturing Excellence and deliver synergies, focusing on cash generation. Situational Self Leadership (SSL) Alone, our goals are often dreams... Together, they become reality...
