Dulye & Co. Case Study: Tyco Healthcare 1

A Dulye & Co. Case Study:

Building two-way communication programs that deliver rapid results

The Challenge

Tyco Healthcare, one of the world’s largest medical device manufacturers, required dramatic changes in the knowledge and actions of its workforce to meet heightened productivity and customer requirements. Employee morale had wilted sharply in the aftermath of high-profile criminal indictments of ex-CEO Dennis Kozlowski. A steady stream of front-page headlines about Kozlowski took similar toll on Tyco’s corporate name and brand reputation. Additionally, the company was undergoing a major restructuring from the merger and acquisition frenzy of Kozlowski’s tenure. New work practices were also in the daily workplace mix through the introduction of programs like Six Sigma and Lean. Operations leaders and plant managers realized the need to significantly improve how and what was being communicated with front-line employees. Information needed to be more timely, relevant and communicated in a way that promoted conversations between work groups and levels. The company turned to Dulye & Co. to design and implement a communication program that would engage managers and employees to be more informed and involved. The key objectives were:

Implement a 2-way communication system

Improve skills and accountability of managers as communicators

Create measurable processes and practices to support effectiveness for the long run

The Dulye & Co. Approach

A pilot approach to building the new internal communications program was adopted. Tyco’s Healthcare division’s vice president of operations selected two geographically different sites – from more than 80 Tyco Healthcare manufacturing plants – to launch the pilot communications-improvement effort. Working closely with Tyco Healthcare’s director of communications, the Dulye & Co. team helped introduce the program through briefings with senior leaders, managers and supervisors that outlined the program’s benefit to the business, process steps, objectives and expected outcomes. Buy-in by all wasn’t immediate. However, one-on-one discussion opportunities between managers and the pilot sites’ top leader provided genuine listening enabling those with concerns feel that they have been heard. After several weeks of communicating the program’s fundamentals with managers, the discussion moved to front-line employees through team huddles and large group meetings.

Dulye & Co. Case Study: Tyco Healthcare 2

Next, a baseline survey was conducted to assess communication performance. Quantitative and qualitative data was gathered through a formal measurement instrument and Dulye & Co.-led focus sessions conducted with employees on all shifts (both sites have 24/7 operations), supervisors and senior management. About 25 to 30 percent of the workforce was sampled. Research data was compiled by shift and level, and compared against a company mean (overall performance mean for the plant). Trends were identified and data results were quickly reviewed (within a week) with management teams at both sites. Open discussion of strengths and weaknesses surfaced priorities for improvement—creating a team-based approach for identifying critical areas for better performance. Identified as the top areas for improvement were:

1. Communicating business performance – both the content and frequency of communications about

site and company goals and performance to goals. 2. Upward communication – particularly, between front-line employees and senior management, and

overcoming a fear of speaking-up identified in the baseline survey data. The results of the baseline process and the critical improvement areas were announced by site managers at both plants, along with a request for volunteers to join ―communication action teams‖ – which would be introduced and launched to develop corrective actions. The use of a cross-functional work team, comprised primarily of hourly and non-exempt employees from all shifts and departments, marked a first for both plants. A disciplined weekly work schedule was created in advance, enabling direct supervisors of selected employees to determine resourcing needs for the four hours that team members spent weekly on solving communication problems. Two months after their launch, the communication teams presented to leadership four recommendations each, all supported by details of cost, schedule, accountability and metrics. Recommendations were backed by facts—gathered through the initial baseline survey and subsequent research conducted by the employee teams to uncover root causes of poor communication performance. A special working session was held at each site for the employee team to present their recommendations and answer senior managements’ questions. The management teams then momentarily caucused to decide go-forward actions on each recommendation. The just-in-time decision process was a change unto itself for the management teams by bringing speed and shared decision-making into their operating style. About 80 percent of the teams’ recommendations at both pilot sites were endorsed—a tremendous response that signaled to employees that they have truly been heard. Over a two-week period, the action teams were consolidated at both sites into a new employee work team called the ―communication implementation team,‖ which had responsibility for communicating and implementing improvement plans.

Client Benefits

Defined communication plans and disciplined processes are now in operation at both pilot sites with ownership of the planning and execution of day-to-day communication shared actively by senior management, supervisors and employees. Improvements include:

A common balanced scorecard to communicate business performance by site and also by department in the key areas of quality, safety, customer service and financial performance.

Disciplined processes now exist for gathering and posting daily and monthly performance highlights from shifts and departments.

Required monthly department meetings and quarterly all-plant meetings for employees from all shifts to attend for business updates and to ask questions or provide feedback to senior management.

Dulye & Co. Case Study: Tyco Healthcare 3

What’s more, quantitative and qualitative pulse checks are conducted monthly by the communication team. Results of the pulse checks are promptly reviewed with senior management and shared with employees. The communication improvement program generated dramatic operational and organizational changes at Tyco Healthcare, including:

Program self-sufficiency and maintenance

Double-digit increases in employee knowledge and understanding of plant performance

Speed and efficiency to communicate downward and upward has improved more than fourfold.

Trust of senior management has dramatically risen.

Improved understanding and respect between senior management, supervisors and front-line employees.

For full details on this case study, contact Roger Gibboni , Dulye & Co. CFO/Business Manager, (845) 987-7744, rgibboni@dulye.com , Dulye & Co., 52 Kain Road, Warwick, NY 10990, www.dulye.com