SUMMER 2019
Distributor's Link Magazine Summer 2019 / Vol 42 No3
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