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Envysion Chairman and Zayo CEO Dan Caruso, in a series of posts (I, II, III, IV), retells an interesting story from his early days at MFS.  Jim Crowe, then CEO of MFS, introduces the “internet” to his senior executive team.  Dan describes the event as career-altering.  Think about when this meeting occurred – only13 years ago!  Mr. Crowe was right, so many things have changed.

I also have a “career-altering” story to tell.  While an analyst at one of the “Big 3″ automakers, I was getting a tour of one of the development facilities.  The building was decidedly non-descript, brick and mortar, few windows.  But behind the well-guarded walls the company was developing the prototype vehicles that would form the basis for style and design at the company for years to come.

The workers at the location were specialists, and included engineers and hourly workers.  As was explained to me, these were the ”best of the best”, especially with regards to the UAW workers.  I recall my guide referring to them as ”skilled tradesmen”, since they had acquired specialized knowledge in operating certain machine tools.

While happening through a work area, I was initially impressed by the relative lack of ambiance.  It was the mid-nineties, and I guess I was expecting a little more “space-age”.  Instead it was much more pedestrian, with the feel of an elementary-school cafeteria.

The activity level was also low.  It was mid-morning on a standard work-day.  The lead over the competition this company had enjoyed evaporated long ago.  I expected to see feverishly-paced activity to regain the advantage.

I asked, ”Where is everyone?”

“They are sitting around the corner,”  said my guide. 

“Must be their coffee break, I guess.” 

“Nope.”

We turned the corner and there they were, at a table next to their locker spaces.  Five or so guys, playing cards.  How could this happen?  It was explained to me that part of the negotiated union contract included quotas for each of these workers.  When they filled there quota, they were done.  And since the quotas were remarkably low, they often had ample free time to kill.

To add insult to injury, this site utilized “contract” workers to help control costs by enabling a more flexible workforce.  However, the union contract stipulated that if the facility used contract workers, the union workforce had to be guarenteed OT.  So they guys had low quotas and OT.  Good work if you can get it.

This was the moment that I knew that my career in the auto-industry would be short-lived.  I sometimes look back at what might have been, and it is this moment that I credit with providing clarity.

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Sandi said, December 17th, 2008 at 4:06 pm

As a Psychology major, how do you think this environment impacted the "best and brightest"? Overachievers must have been completely demoralized (no risk, no reward, no challenge) Do you think the culture be fixed without a massive overhaul?

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Michael said, December 18th, 2008 at 4:43 pm

This type of environment is toxic to those who want to work hard and succeed. You are correct, it is very demoralizing. I don't think the culture will be fixed without very dramatic reform. My fear is that a taxpayer funded bail-out will fail to lead to the fundamental reform that is required. Many, though not all, within the companies will go back to business as usual (if they avoid the inevitable reorganizations).

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