Analysis of the Strategic Transformation Journey
Jaguar's senior leadership had taken a bold decision by choosing a low-performing facility at Halewood for their new product line. They had a strong conviction that with appropriate strategy, it can be transformed as an opportunity with Ford's intention to cease Escort’s production. Jaguar had a host of clear positive indicators to consider Halewood as a suitable alternative. They immediately deputed a management team comprising of best Ford/ Jaguar minds. Technical experts were hand-picked for this ambitious project.
David Hudson, a 20-year Jaguar veteran with experience in such turnarounds was given the ardent task to lead the new management team at Halewood. He immediately began an intensive negotiation with the Unions in-order to make the plant ready for accepting the Jaguar practices and processes, and showed them the flip-side of the deal where the plant may otherwise shutdown. Union members and senior employees were shown live successful examples of these practices at the Jaguar’s West Midlands plants. Following this, the Union’s Shop Stewards Committee clearly indicated the workforce to co-operate and adhere to Jaguar methods as it was the only way to keep the plant alive.
Along with the Unions, the management developed the Gateway Agreement with time bound milestones to achieve the transformation. A three-member external committee reviewed its progress and ensured synergy between Union and management. All employees were asked to sign the agreement to enforce co-operation. Agreement primarily focused on achieving best-in class quality and improved productivity. Appraisal of workers was done to filter out people with more rigidity to radical changes.
To ensure success of the agreement, Hudson came up with the three pillars of Quality, CoE and cultural change. Also, a trial run of the agreement was done on ‘Escort’ before implementing it on upcoming X-400. Attempts were made to break the existing communication barrier with workforce and to transform them into Jaguar employees by addressing long-pending issues like overtime, promotion etc. Whenever there was resistance shown by employees, innovative methods were used to address the situation and bring in discipline. Union was treated as a key partner in communication related to Gateway Agreement and other messages. Also, corporate management of internal and external communication was ensured. It was a key enabler in bringing a new corporate identity and breaking away from Halewood culture. Hudson’s image as a leader and initiatives like quarterly communication sessions assisted this approach.
‘Halewood Difference’ program was designed to tackle all cultural change issues. People from all areas and levels were made partners to carry this program forward.
Halewood employees were shown benefits of Jaguar’s cultural practices by giving them opportunity to visit/work in West Midlands plants. They carried back messages of quality production and constructive competition. Also, they were involved from product development to manufacturing to instill confidence and partnership.
COE’s targeted lean manufacturing, sustainability, quality and productivity improvements. It led by example by showcasing quality improvement in Escorts by 50% in 18 months’ time. It also strengthened communication and partnership between operator and team leader.
Investments were brought in to install state-of-art facilities for X-400. This strengthened employees’ belief in a secure future along with cordial work environment for them.
Way Forward
The communication channels may be further strengthened and target should be to win the employees’ heart and minds.
Align all structures and processes to the transformation efforts.
New culture to be institutionalized.
Keep up with technological and customer demand changes in the industry.
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