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SUMMER 2019

Distributor's Link Magazine Summer 2019 / Vol 42 No3

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50<br />

THE DISTRIBUTOR’S LINK<br />

GLOBALFASTENERNEWS.COM<br />

by JOHN WOLZ EDITOR<br />

editor@globalfastenernews.com<br />

BLUE: ‘RUST BELT’ COMPANIES CAN<br />

TRANSFORM TO ‘HIGH TECH’<br />

Fastener Fair USA keynoter: The old Rust Belt<br />

company culture was “by default,” Blue observed.<br />

The High Tech company’s culture is “by design.”<br />

Can “Rust Belt’ companies increase profits, enter<br />

new markets and repel offshore competition? Fastener<br />

Fair USA keynote speaker Steve Blue declares: “Yes.”<br />

Blue, CEO of Miller Ingenuity, which invents, engineers<br />

and manufactures safety and productivity solutions for<br />

railroad operators, said his company doesn’t wait for<br />

customer demands but seeks to develop safety ideas.<br />

“We develop ideas first,” Miller said in reference to<br />

Miller’s hundreds of patents.<br />

To transform from Rust Belt to High Tech, your<br />

entire company needs to “transform, ignite, innovate and<br />

disrupt.”<br />

The old Rust Belt company culture was “by default,”<br />

Blue observed. The High Tech company’s culture is “by<br />

design.”<br />

The High Tech industry gives priority to creativity,<br />

commitment and teamwork.<br />

Blue cited Cirque du Soleil as a company that may<br />

look like it is repeating performances day-after-day.<br />

“These guys come to work ‘on the edge’ every day<br />

intending to do better than yesterday,” Blue said.<br />

The traditional manufacturer may look at Cirque du<br />

Soleil and respond by saying the company can’t have<br />

such performance fun: “This is manufacturing,” one could<br />

declare.<br />

“We can’t have fun?” Blue asked. “Whose fault is<br />

that?”<br />

¤ If you have a board, you need to get board<br />

members involved. The transformation process will cost<br />

money and reduce profits initially.<br />

To convince your board, your message must be<br />

“clear, concise and compelling,” Blue advised. “Boards<br />

don’t like bad news” of lower profits later.<br />

¤ One step in the transition is to create a team<br />

BUSINESS FOCUS ARTICLE<br />

atmosphere. “The organization stacks the deck against<br />

the team when you are paid at individual rates,” Blue<br />

pointed out. He instituted team incentives.<br />

¤ If you want new teams to innovate, be ready to<br />

“back that up with action.”<br />

He designated 20% of work time for employees to be<br />

thinking of innovation.<br />

¤ Creativity can involve every employee. At Miller<br />

Ingenuity it involves a dedicated space – the “Creation<br />

Station” – to use as a think tank.<br />

“Our employees get together on their own initiative,” Blue<br />

added.<br />

¤ Especially smaller companies should go after<br />

“niche marketing.” Look for what nobody else is not<br />

doing but is needed. Where are there weaknesses in their<br />

patents? “Flag opportunities.”<br />

¤ A new company culture includes many changes.<br />

Blue cited traditional “factory language” as an example<br />

of traditions which needed to change at Miller Ingenuity.<br />

Blue announced to his plant that employees must “have<br />

respect for each other” and that respect is “rooted in our<br />

language.” He announced changes in vocabulary. He had<br />

to fire one person with 90-minutes of the new language<br />

policy and five on the first day.<br />

The firings made a statement, Blue said. “You<br />

have to get rid of people who don’t want to go with the<br />

program.”<br />

¤ Show what you’ve made. Miller Ingenuity<br />

developed a video quoting customers being asked on<br />

camera. “That is a whole lot better for them (customers)<br />

to tell than one of my group telling you.”<br />

¤ “Success is the worst thing that can happen to<br />

somebody,” Blue declared. Look at successful Dow<br />

companies from a decade ago. Those with traditional<br />

products are now down.<br />

Your company needs to realize that innovation is<br />

vital. “This is really going to happen to us.”<br />

GLOBALFASTENERNEWS.COM

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