Enchanting People towards Quality and Productivity

ENCHANTING PEOPLE TOWARDS
QUALITY and PRODUCTIVITY
JOSE C. GATCHALIAN, PhD. &
MIFLORA M. GATCHALIAN, PhD.
51st EOQ Congress, Prague, Czechoslovakia May 22-23, 2007.
Once upon a time...…
in a not-so-far away country
called the Philippines, in Asiathe first and only world-class
theme park of that country…
came to life!
Enchanted Kingdom in
Sta. Rosa, Laguna, Philippines
• The Philippines’ leading world-class
theme park.
• Offering affordable, year-round,
wholesome family entertainment.
• Almost 10 million guests since it
opened in July 1995.
Enchanted Kingdom opened its doors
for Filipinos and foreign guests to
experience magical heights
of leisure and entertainment.
THE CAST….
• Employees, called CAST MEMBERS,
numbered around 220 regulars
• Total headcount on a lean season is at
450, reaching up to 850 in Peak season
• 70% to 80% of the cast members are from
the Laguna province.
And so they came!
Millions of guests
experienced the magical
trance
that a visit to the Park
brings.
YEAR 2000
• Recorded lowest
park revenue from
opening date
600.00
550.00
500.00
450.00
400.00
350.00
• Creditor banks gave
stringent terms in
fulfilling EK’s loan
obligations
300.00
250.00
200.00
150.00
100.00
50.00
199
6
1 99
7
199
8
1 99
9
200
0
MORE PROBLEMS…
• Merit increase for cast members suspended from 1998 to present.
• Some employee benefits modified to
contribute to cost saving measures.
• Strained labor-management relations
• Low Productivity levels
• Communication programs, like monthly
get-together with President, suggestion
system, etc. lost appeal.
• Cast members felt job security threatened
BEGINNINGS OF EK-LMC
• May 2001 – efforts started
in laying the groundwork
for the formation of LMC
• Assistance from government
agencies(ex:Dept of Labor)
• Benchmarking & NetworkinG
MORE ON LMC ORGANIZATIONAL WORK
• Orientation Sessions for Regular
Cast Members paved the way for
gradual change in cast members’
perception about LMC .
• The “New LMC” Program was
introduced during the orientation.
EK-LMC ORGANIZATIONAL
STRUCTURE
THE BOARD
Labor -6
Management - 4
Personnel Policies
Labor – 4
Mgt- 2
Communications & Concerns
Labor – 4
Mgt – 2s
Productivity & Quality
Labor-4
Mgt – 2
Recreation & Socials
Labor-4
Mgt-2
Livelihood & Benefits
Labor-4
Mgt-2
Safety & Health
•EK-LMC Chairmanship is exclusive to labor reps
•There are more labor representatives in the board and
working committees (6 from labor, 4 from Mgt)
•LMC meetings held in same boardroom for
EXCOM/MANCOM meetings, symbolizing L/M partnership
PARTNERSHIPS FOR QUALITY,
PRODUCTIVITY & PROFITABILITY
(Nov 6-8,2001)
• L-M Partnership - applied to continuous
improvement of quality of people,
products, services & work relationships
• Identifiying corporate & personal values
• Introduction to different tools &
techniques for quality improvement
and problem-solving
EK’S CLIMATE SURVEY
•
Assessment of EK’s Quality Practices
conducted January 30, 2002
•
Survey Results pointed out need for
intervention programs on quality
awareness and improvement.
STRATEGIC PLANNING FOR
QUALITY (Mar 18-20,2002)
Sharing of Current Business Situation
by Chairman/President (“BARE ALL”)
Corporate SWOT Analysis
Initial Drafting of EK’s Quality Policy
EK-LMC’s SHIFT TO HIGHER GEAR
STALLED
• Certification election held June 2002
• Results - 67% for NO union, but
young LMC derailed due to tensions
generated by election campaign.
• Polarization noticeably increased
between management and workers
EK-LMC IN CRISIS
• Attempts to reconcile opposing
forces.
• Polarization among cast members
heightened.
• LMC meetings/projects suspended.
• LMC was viewed as ineffective.
At RESUMPTION OF LMC ACTIVITIES
• The LMC Board exerted efforts on
reconciliation. Commitment to LMC
from LMC officers was renewed.
• Regular meetings resumed after 2
months inactivity.
• Park attendance & revenue were down.
PICKING UP THE PIECES
• Replacement of separated LMC representatives
• New LMC orientation program conducted.
• Teambuilding sessions cum Appreciative
Inquiry approach for all regular cast members.
• Seminar/workshop on How To Conduct Effective
Meetings and Project Management were given to
the new LMC representatives.
REBIRTH OF A VIBRANT LMC: Benefits
• Perfect Attendance Award modified and restored
• Gift checks and groceries to regular cast members
during Christmas. Amount used came from LMC funds.
• Emergency loans @ 1% interest , taken from LMC funds
• Fastfood cart inside park, run by LMC and cooperative.
• Candles project by, and for, cast members.
• Revenue generating projects during special events
• Outreach program with medical mission,
World Vision Sponsorship
• Improved Burial Assistance
• Earth Day observance @ Enchanted Kingdom
“SHARING A PIECE OF THE PIE”
After 6 years, Management able to grant
merit increases in October, 2004. This
was mainly taken from savings
generated from the separation program.
April 1, 2006 Management grants again
merit increases to regular cast members.
Management, on its initiative, implemented
the Post Service Appreciation Program.
ATTENDANCE
1,300,000
1,200,000
`7,924
6
0
,
1
1,100,000
,301
3
2
1
,
1
1,000,000
900,000
842,0
,201
1,195
53
800,000 758,241
832
,
9
0
0
4 1,
8
3
,
8
,105
7
95
5
9
318
,
0
2
2
9
1
877,1
`
700,000
600,000
500,000
96
9
1
97
9
1
98
9
1
99
9
1
00
0
2
01
0
2
02
0
2
03
0
2
04
0
2
05
0
2
Y2005 Attendance is the highest in the history of the Park. It is
238,096 or 25% higher than Y2004 Attendance and only 24,799
or 2% lower than the 1.22M target.
PARK REVENUES
in Php millions
600.00
550.00
68
490.
500.00
450.00
400.00
4
401.
59
409.
92
407.
79
369.
03
320.
350.00
67
280.
300.00
8
44.4
3
3
48 325.0
311.
250.00
200.00
150.00
100.00
50.00
96
9
1
97
9
1
98
9
1
99
9
1
00
0
2
01
0
2
02
0
2
03
0
2
04
0
2
05
0
2
Y2005
Park Revenues is also the highest in the history of the Park.
.
It is P80.76M or 20% higher than Y2004 Park Revenues while P26.6M
or 5% lower than target park revenues.
Conducted last year - March 2, 2006
To assess the performance of EK-LMC in terms of
cast members’ participation and satisfaction, and
effectiveness of LMC projects.
Target participants of 30% of total population of the
regular cast members
A total of 68 cast members composed of 16 SH and
52 R&F participated or 36% of the total population
CM's ASSESSMENT ON EK-LMC
100
90
80
70
60
50
40
30
20
10
0
PERFORM ANCE
SATISFACTION
PARTICIPA TION
total +response
total - response
R ES P ON S E
Same with 2005 results, this climate survey shows positive assessment
on EK LMC’s performance, CMs’ satisfaction and participation.
2004 SURVEY RESULTS
Nature of Questions
Extent of Knowledge on
LMC concepts &
objectives
Level of Participation
Supervisors
Rank & File
88%
83.3%
100%
87.5%
Understanding of EKLMC programs
95.85%
90.63%
Level of Satisfaction
97.92%
91.66%
Effect on Personal
Aspect
51.37%
Effect on Work Aspect
Effect on Status of
Company
66.67%
80.55%
41.65%
50%
66.66%
EK-LMC 2006 BALANCED SCORECARD
FINANCIAL PERSPECTIVE
Optimum utilization of available resources
Revenue generating projects
Productivity Improvement programs
Business Partnership
CUSTOMER PERSPECTIVE
Climate Survey
Sustained & Active Participation on LMC
Coaching & Feedback Mechanism for CMs
Benchmarking with other LMCs
INTERNAL BUSINESS
LEARNING & GROWTH
LMC Financial System
Finalization of Revisions on Code of
Conduct
Information System on LMC plans &
Programs
System on meetings
Sustainability of AI Culture in LMC
Activities
Guidelines on handling CMs’ concerns
Skills Enhancement Program
Reward System (bright idea award)
Family health program/Health & Safety
programs
Succession Planning
Work Life balance
OTHER SUSTAINING EFFORTS FOR LMC
•
Creation of Circle of EK-LMC Advocates
•
Quarterly General Assembly
•
Yearly Teambuilding Activities
•
Application of Appreciative Inquiry in work relationships
•
Education and Trainings
•
Networking and Benchmarking
•
Yearly Climate Surveys
•
Other Communications (Newsletter, Suggestion Boxes)
LESSONS LEARNED
FROM EK-LMC EXPERIENCE
•
•
•
•
•
•
•
Doing it the LMC way brings positive results.
Transparency from both parties helps
Scientific way to analyze & solve problems.
Treat each other as partners and allies.
Full support from Top Management on LMC
Capability building thru Training & Education
Humility – “You cannot shake hands with a
clenched fist.”
EK’S QUEST FOR QUALITY
• 5 S as a Way of Life
• More Quality Awareness for EK
• Tools and Techniques for
Achieving Quality Service at EK
• More Effective EK-LMC
VISION FOR EK - LMC
- Industrial Peace and Harmony
- Labor-Management Cooperation
enhanced thru Quality Awareness
Programs involving all members
of the organization
- Improvement on Levels of Efficiency
and Productivity
- Increased Profitability for Enchanted
Kingdom
- Upliftment of members’ quality of life