CASE STUDY

HOW BOB HAAS MAKES IT WORK AT LEVI STRAUSS Leri Smass ind by Roben Hans, the founder's four employees sews buthons on 4.037 pain of by 31 percent (to more than s3. bbiliow) and prof. pen, vice president of manulacturing - all manag. tacular nosules hase conse alsui because leei more meamineful Managers are ureed to speak Smpiss charged the way in dal business. First. Genenly to employoes, reward them for qualify Livi poured tens of millions of dotlans into new. work, and give them more power to make deciproduct development, marketine, and conputer sions in areas that directly affect them. texhnology. Secons, Haas has focused the organe:The following "Aspirations Staternent rezation on bask product lines, downsized the or: flocts what Levi Straus values: ganization by laying off more than four thousand manacess, and trimmed the number of products by two-thirds. Third, a new computer system helped streamline manufacturing and distribution by linking Levidirectly to retailers and fabric. suppliers. This new system enables customens to arder and pay electronically for new inventory. We all want zcompany that our people are prowd of Links with suppliers let Levi fine-tune the amounts and kinds of fabrics it orders to meet and comanitied ta, where all emplopees have an opconsumer demand. The goal of the system is to electronically monitor the manufacture of a pair portunity to contribute, learn, grow, and advarin hased on merit, not politios or background. Wis want our poplo to feel respected, treated fairly, lis. tened to, and imvolved. Above all, we want sathfre. of jeans. When the customer buys jeans in some tion from acsompliahments and friendahips. bal store, that sale is communicated directly to at ancel perwonal and profestional lives, and to hire fun in our enlewirs. plant. If the plant's imventory level for that style of jeans is low, an order to manufacture them is When we describe the kind of Levi Sirauss 4Co. we automatically placed. Lastly. Levi started to pay want in the future, what we are talking about is attention to what its customers wanted. In just building on the foundation we have inherited: of. four yeary, Docker's, a line of casual clothing firming the best of our company's traditions, doe aimed at the less slim, over twenty-five market, New Bchaviors: Leadership that exemplifies direct. has become a half-billion-dollar a year success. __._ ness, openiess to influence, commitment to the Haas paid attention to the global market. As success of others, willingness to acknowledge our markets open and geographic barriers have be- own contributions to problems, personal accountcome increasingly blurred, Levi took advantage ability, teamwork, and trust. Not only must wo model these behaviors but we must coach others to of these changes. In Japan, a jeans revolution is adopt them. going on. Even women are now wearing jeans. Diversity: Ladership that values a divene work Until recently, few people would have ever imag- force (age, sex, ethnic group, etc.) at all levels of the ined this happening in Japan. In addition to sell- organization, diversity in experience, and diversity ing overseas, Levi is manufacturing overseas as in perspectives. We have committed to taking full well. Most Dockers, for example, are made in the advantage of the rich backgrounds and abilities of Caribbean basin. The reason: Dockers require all our people and to promoting a greater diversity fwice the amount of labor that 501 jeans do. The in positions of influence. Differing points of view greater the labor, the more the emphasis is to will be sought; diversity will be valued and honesty manufacture outside of the United States. rewarded, not suppressed. To raise productivity as well as help keep mo-_ Recognition: Leadership that prowides greater rale high, Levi is trying a gain-sharing program. recognition-both financial and psychic-for indiAt its jeans factory in Blue Ridge, Georgia, em- viduals and teams that contribute to our success. ployees and plant management set productivity Recognition must be given to all who contribute: mprovement goals and agreed to split the savings _ those who create and innovate and also those who vith employees. Last year, each employee earned _ continually support the day-to-day business ren extra $450. Before the gain-sharing progeraments. extra \$450. Before the gain-sharing program, Ethical Management Practices: Leadership that epito est. At another one of its jeans plants in EI Paso, mizes the stated standards of ethical behavior. Wrist provide clarity about our expectations and mus xas, employees work in teams. Each team of enforce these standards through the corporation. 0UESTHONS: 1. What leaulrohip shilhs has fiake thowat of itaikio and anow aspirathins. tiesty with those ani-gharpet? 3. What are socner prothesten of leabins people whe live in tormes imintries ? Hius deas li. vis. "Aspiration \$yateroctit" help lacatsis do. this easiet