TEXAS CENTER
Overview

 
 
 

Future of Retailing

Redesign Projects

 

MegaProjects

 

Bio-Sketches of Texas Center Personnel and some Associates

Recent Texas Center Clients

Recent major change and innovation projects in which the Texas Center has been involved include the "green-field" design and start-up of a multi-national coal mine in South America, a re-design of a drug manufacturer in Australia, and a redesign of a unionized chemical facility in Texas. The coal mine project, the largest of its kind in the world, involved that analysis of socio-psychological indicators, management and technical facets of the technology, work and management systems, and community aspects. Some of our other recent clients include:

A) Company Organization Level: White-Collar and Blue-Collar

  • Sony, U.S.A. - Joint Venture
  • Herron Pharmaceuticals, Ltd. (Australia)
  • Carboco/Intercor/Esso-Inter America, Inc. (Columbia)
  • Procter & Gamble
  • Colgate-Palmolive
  • National Security Agency (United States Government)

B) S.B.U. Level: White-collar

  • General Dynamics - 3 Support Groups
  • Monsanto Company: Corporate Office Support Groups
  • 3-M Tape Manufacturing Group
  • Consumer Products Company, USA and Canada
  • Proctor & Gamble: Customer Business Development
  • 3-M: Electronics Market Center
  • Celanese Chemical Company
  • NutraSweet/Monsanto Company
  • Goodyear - Chemicals: Value Chain Design

C) Plant Level: White and Blue-collar

 1. New Design - Union

  • Boeing Aerospace & Electronics
  • Exxon, USA - Refinery
  • Kraft Foods - Australia
  • Wescast Industries - Canada

2. New Design - Non Union

  • Armstrong World Industries
  • Carlisle Industries
  • Kraft Foods: 4 different plants
  • Colgate-Palmolive
  • Exxon Chemicals
  • Procter & Gamble
  • Goodyear - Chemicals

3. Redesign - Union

  • Monsanto Chemicals (4 Product Groups)
  • Monsanto Chemicals (Maintenance)
  • Aqualon (Hercules Chemical)
  • Exxon, USA - Refining
  • Procter & Gamble
  • Hercules, Inc.

4. Redesign - Non Union

  • Carlisle Industries
  • Kraft Foods
  • Clorox Company (2 Manufacturing Plants)
  • Sony, USA
  • Consumer Products Company (Business Unit 1)
  • NutraSweet
  • Goodyear - Chemical

Texas Center's and Macy's Petrochemical and Process Plant Design Experience

1980 – 85:
  • Exxon USA (Oil Refinery, Maintenance and Stores), Baton Rouge, LA - (Union), 3,200 employees


  • 1984-86:
  • Consumer Products Company (Business Unit 2), (Non-union), 80 employees
  • 1985-87:

  • Exxon Chemical (Plastics), Baton Rouge, LA - (Nonunion), 350 employees
  • 1987-89:

  • Kraft Foods (Food Plant), Chino, CA - (Nonunion), 300 employees

  • The Clorox Company (Bleach and Distribution), - Houston, TX - (Nonunion), 80 employees
  • 1989-93:

  • Consumer Products Company (Business Unit 3), (Nonunion), 385 employees

  • Consumer Products Company (Business Unit 4), (Nonunion), 150 employees

  • Solutia-formerly Monsanto Chemicals (Butvar Business Unit),  Springfield, MA - (Union), 150 employees

  • Solutia-formerly Monsanto Chemicals (Adhesives Business Unit), Springfield, MA - (Union), 200 employees

  • Solutia-formerly Monsanto Chemicals (Maintenance), Springfield, MA - (Union), 375 employees

  • Bayer Chemical-formerly Monsanto Chemicals (5 Business Units), Addison, OH - (Union), 650 employees

  • Bayer Chemical-formerly Monsanto Chemicals (Stores), Addison, OH - (Union), 60 employees
  • 1993-95:

  • NutraSweet – Division of Monsanto (Food Plant) - Manteno, IL –(Nonunion), 300 employees

  • Consumer Products Company – Canadian Division - (Nonunion), 350 employees
  • 1995-97:

  • The Clorox Company (Bleach/Other Products and Distribution), Chicago, IL - (Union), 150 employees

  • Solutia-formerly Monsanto Chemical (5 Business Units and Core Staff), Pensacola, FL - (Nonunion), 1,350 employees

  • Solutia-formerly Monsanto Chemical (2 Business Units and Maintenance), Nitro, WV  - (Union), 400 employees
  • 1996-98:

  • Kraft, Ltd. (Cheese Plant), Strathmerton, Australia  - (Union), 900 employees

  • Celanese Chemicals Company (4 Business Units and Core Support), Pampa, TX  - (Nonunion), 575 employees

  • Hercules-Acqualon Division (2 Business Units and Commercial Staff), Kenedy, TX - (Union), 100 employees


  • 1998-02:
  • Goodyear Tire & Rubber – Chemical Division (Multi-business units and maintenance),  Beaumont, TX  - (Nonunion), 600 employees
  •  
  • Hercules Chemicals (2 Business Units and staff), Hattiesburg, MS- (Union), 170 employees

Texas Center's and Macy's Other Manufacturing Design Experience

    Goodyear Tire & Rubber Company
  • Hose Plant – Mt. Pleasant, Iowa – (Nonunion), 200 employees

  • Wire Plant – Ashboro, NC – (Nonunion), 600 employees
  • Graham Magnetics/Carlisle Corp.
  • Magnetic Tape/Clean Room - Ft. Worth, TX – (Nonunion), 225 employees


  • Exxon/Colombian Government
  • Coal Mine - Bogota, Colombia - (Union), 11,000 employees
  • Solutia – formerly Monsanto Chemical
  • Yarn Plant – Greenwood, SC - (Nonunion), 1,750 employees
  • Boeing Electronics
  • Airplane Electronics – Corinth, TX - (Nonunion), 475 employees
  • Sony Display Tube Company
  • Electronic and Tube Manufacturing – San Diego, CA - (Nonunion), 1,100 employees


  • Sony &  Qualcom Joint Venture
  • Cell phone plant – San Diego, CA – (Nonunion), 475 employees
  • Armstrong World Industries
  • Vinyl Floor/Sheet - Stillwater, OK - (Nonunion), 475 employees
  • 3M Company
  • Tape and Post-it notes - Cynthiana, KY - (Nonunion), 500 employees

  • Multi-business units and staff – Hutchinson, MN - (Nonunion), 1,300 employees
  • Wescast Industries
  • Auto Parts Plant – Wingham, Ontario, Canada - (Union), 225 employees
  • Harman Industries
  • Automotive Division – Bolivar, TN - (Union), 550 employees
  •  

    Herron, Ltd.
  • Drug Manufacturing Division – Brisbane, Australia – (Union), 400 employees

 

Description of Recent Projects


1. Future of Retailing in 2015

Commissioned by a Texas Center Client to look into the future of retailing 10 years into the future. 

This also has applicability to other industries and other parts of the world.

Presented as a Word document handout and as a PowerPoint presentation


2. Redesign Projects

The most recent Texas Center projects involved the redesign of two consumer products divisions and a redesign of an industrial plastics facility. For all three of these sites, a flat, lean structure which incorporates self-directed work teams was designed. In addition, each of these high performance work sites will adopt a pay system which will utilize pay-for-versatility/contribution to enhance the level of training and skill development of organizational members. This new structure and increased training will allow for greater flexibility to adapt to the changing market and customer demands. All of these projects involved extensive job and socio-technical analysis, as well as the development of a design team, steering committee, and implementation teams. One of the projects involved a union-management contractual situation.

The sources of the technology which the Texas Center transfers to its clients are: other organizations from public and private sector; other global centers and representatives; private consultants; and the Center's own staff and research associates. Data resources include: over 120 videotapes on large systems change; over 140 actual design proposals; the Center's reference room which contains 1,800 case studies on productivity/quality improvement from the United States and the world; a Work Innovation Articles (WIA’s) List (over 170,000 pages of innovation readings); books; actual "meta-cases" (120+) of design and redesign; and, 15,000 references concerning alternative forms of work, innovation, and high performance organizations.

The Center uses training programs in the areas of: self-directed work teams; high performance systems; pay systems; work innovation; CAD/CAM and factories of the future; socio-technical systems; determining "future state"/vision direction; employee/management involvement; labor/management cooperation; organizational effectiveness measurement; white-collar productivity improvement and measurement; new plant start-ups and redesign; and lessons and learnings from the work improvement programs.

One Example of Texas Center Projects

Exemplar Enterprise Teams - Key Customer Account Units: A Competitive Advantage

As one of the fifteen different types or kinds of work teams in North America, Enterprise Teams (Customer Account Teams) have proven to be a competitive advantage, and they are associated with financial improvement.  Some companies such as Xerox, Lucent Technology and Procter & Gamble and others have implemented white-collar professional Enterprise Teams (i.e., Customer, Product, Channel, and/or Process configuration) to be the "mirror" or the one contact point from a supplier to an external customer.

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Exemplar Study of Sales

Customer Business Development along with

Dr. Barry Macy and Dr. James Wilcox -
Texas Center for Innovative Organizations
Jerry S. Rawls, College of Business Administration

Texas Tech University

a performance correlation, structural analysis which identifies key factors impacting P&G Enterprise Teams Performance

  

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Consumer Products Enterprise Team:
Exemplar Analysis

A financial performance correlation which identifies key factors impacting Market Focused Enterprise Team’s performance

TTU Exemplar Study … … ...

  • Purpose … … The exemplar analysis was a project for the Year 2000 plan designed to identify the best in class practices which have the greatest impact on P&G business and people outcomes and financial results.

Exemplar Analysis Research Design

When? Fall ‘97 - May ‘98
How?     - 27% of NA Enterprise Team teams
customers, leaders, and team members
- ABB, Xerox, Texas Tech database
What? Structure, Systems, Processes, Direction, Leadership, Culture,
Work Environment, and Customer factors together with Volume,
Share and demographic data

Who did P&G/TTU Assess … … ...

231 Interviews / 43 Business Units

  • 43 Associated Directors or Team Leaders
  • 43 Enterprise (CBD) Teams
  • 83 Individuals Team Members
  • 31 Directors/Vice Presidents
  • 30 External Customers (Pathmarks/Stop & Shop)

The Key Pillars of a Horizontal Organization

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Executive Summary of Consumer Products Enterprise Team Exemplar Analysis

This provides an executive summary of the just completed Sales Enterprise Team Exemplar Analysis

Background # 1:

Data on volume, share and demographics of 160 "Enterprise Teams" was collected from a five year period. Teams were split into high, medium and low performing teams based on business results (volume and share). 408 questions were asked of several different groups: 1.) Group interview of multi-functional sub-team; 2.) Individual team member interviews; 3.) Enterprise Team Leaders; 4.) Director/VP; 5.) New Business Development and Human Resources; 6.) The Customer Performance correlations were determined in three main areas: 1.) Business outcomes; 2.) People outcomes; 3.) Customer satisfaction.

Enterprise Units: The "Mirror" Design Concept

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Executive Summary of Consumer Products Enterprise Team Exemplar Analysis

This provides an executive summary of the just completed Sales Enterprise Team Exemplar Analysis

Background # 2:

The Exemplar Analysis is a performance correlation which identifies key factors impacting Enterprise Team performance. Dr. Barry Macy of Texas Tech University consulted on the project and our internal Ph.D.’s have validated the methodology and statistical correlation’s. The work included internal bench-marking with the company’s North American Sales Enterprise Teams representing 27% of ACV and external benchmarking with other high performing companies such as Xerox and ABB. Through benchmarking, we were able to determine best practices across factors of structure, systems, processes, direction, leadership, work environment, and customers.

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Key Themes
(that significantly affect total company performance):

  • Teams work… and there’s a significant opportunity to improve
  • We have some LEADERS… but every team needs one
  • CUSTOMER Satisfaction grows our business

Procter & Gamble Background

Procter & Gamble is a diversified consumer products company, delivering over 300 brands to nearly five billion consumers in over 140 countries.  They have more than 110,000 employees and operations in more than 70 countries.  In the fiscal year ending in June of 1998, P&G had worldwide sales of $37.2 billion and earnings of $3.78 billion, up 11%.  P&G's net sales, dividends, and basic earnings have each consistently increased over the last 5 years.  Their shareholder return has exceeded the S&P 500s by about 50% over the last 10 years.   About half of their sales are in North America, with the other half from outside North America.  Their new plan for growth is called Organization 2005.

One of their strategies is organizational redesign.   Their new organizational design encompasses global business units (GBUs), market development organizations (MDOs), global business services (GBSs), and corporate functions, as well as changing culture.  They are changing from four geographically based business units to seven global units based on product lines, which should drive greater innovation and speed by centering strategy and profit responsibility globally on brands.  Their eight MDOs will maximize their business potential by developing innovative local market strategies, new strategic alliances and distribution channels, superior retail customer relationships and external relations programs.  This is done to be global and local at the same time.

Their global business services will be a single global organization that will provide essential business services, such as accounting, employee benefits and payroll, order management, and information and technology services to the rest of the company.  Many of their corporate functions will be realigned or distributed to GBUs, MDOs, or GBSs, while the rest will develop cutting-edge functional knowledge in an expertise center where it can serve as a resource to employees around the world.  Many functions will be decentralized, while others, such as functional reporting and shareholder communication will remain centralized at corporate.   P&G will change their reward systems, training programs, and other aspects of the corporate culture.  They would like to create an environment that produces bolder, more stretching goals and plans, bigger innovation, and greater speed.

They feel that they can accelerate their growth and simplify operations for faster decision-making, innovation, and execution.  They will benefit from new ideas sooner.

They have expanded their snack food capacity, which gave them double-digit growth in 1997.  They divested themselves of non-strategic brands, the most significant of which was Duncan-Hines.  Their snack foods division posted the highest growth of their food products with the introduction of Fat-Free Pringles.   P&G developed and owns Olean, the brand name Olestra, the fat substitute found in their Fat-Free Pringles.  Their contract to sell this to Frito-Lay for their fat-free chips runs out next year (taken from P&G Web Page - http://www.pg.com, 1999).

For more information on Enterprise Team ( either: 1) Customer; 2) Product; 3) Channel; and 4) Process ), please contact the Texas Center for information about the 22 worldwide organizations utilizing "Enterprise Teams" as a Competitive Advantage.

 

3. Another Consumer Products Company: Products Supply Re-Design in a large multiple business worksite

The 2007 book chapter (linked here) in Research and Organizational Development and Change describes a consumer products company's re-design.

The 2007 book chapter (linked here) in Advances in Entrepreneurship, Firm Emergence and Growth: Entrepreneurial Strategic Process describes that competitive advantage is driven by the combination of relational and entrepreneurial resources.