Divide into 2 teams. One team puts themselves in the place of the Atlanta executives at the meeting and the second team puts themselves in the place of the Worcester executives. The meeting they are attending is to decide the location of the new headquarters, Atlanta or Worcester. Each team (the Atlanta team and the Worcester team) will use persuasion techniques gathered from the content video, HBR article and outside sources as needed to persuade the other team of executives of their preferred location.
Read Apex Products Conflict at the Corporate Board Meeting - Background.
What are the Meeting preparation detail
- Goals -
- Benefits and Challenges -
- Persuasion Scrip -
- Meeting strategy -
- Written description of the persuasion techniques used by both teams that moved Atlanta or Worcester to agree the new location AND why they worked AND why they didn't work. This may be a chart: Atlanta: technique / why worked / why did not work Worcester: technique / why worked / why did not work
- What is your learning/take-away form this assignment?
Apex Products Conflict at the Corporate Meeting - Background The wood products building industry is considered a low margin, low tech, highly competitive industry. Manufacturers and distributors compete directly both within the US nationally and internationally with Canada and indirectly with the world. Apex Products was founded in 1902 and has been a household name in wood building products across the US. The founding company was located in central Pennsylvania and was, at the time, ideally located to meet population growth and expansion in the Midwest and the Mid-Atlantic regions. Expansion to Worcester, MA in 1910, shortly after the company founding, took advantage of the supply of hardwood lumber in New England and established transportation routes. Expansion to Atlanta, GA occurred in 1947 and was aimed at fulfilling home construction needs of the post WWII population growth. Worcester, as a manufacturing center, lost geographic importance and presence in the 1980s'. The manufacturing workforce decreased from 6,000 employees to the current workforce of 1,000. Only one of the three original manufacturing locations now operates and boasts updated technology. An additional workforce of 500 is involved in R&D and logistics planning and is co-located at the manufacturing site. The Worcester area is experiencing a re-birth as a tech hub and is geographically situated in the growing research intense north-east corridor, Boston to Washington. Apex Products name recognition and presence is limited and is one of many brands headquartered within a 75-100 mile radius. Due to the reduction in manufacturing operations, Worcester was able to take advantage of new technology in the remaining location. Operationally, Worcester is a flat organization using a self-directed workforce model at the manufacturing location with the co-location of 500 R&D and Logistics Planning employees: technicians, analysts, engineers, logistics professionals and R&D Scientists. Due to proximity to Boston and New York City, the growth of technology and competition for talent, turnover in Worcester is approaching 30%. Housing starts in the east are down compared to the south and near west of Arizona and New Mexico but is somewhat offset due to the populations density of the east coast. To date, the mainstay of the business has been wood and wood related products for residential construction but, with competitive pressure from cheaper offshore products and Canada, the Board of Directors, as the arm of the shareholders, is requesting a change in direction to increase diminishing market share. The Board expects a full report by the first of the year to include revisions to the vision, mission and product strategy, full financial review, impacts to the labor market and relocation of the headquarters to either one of their two main operations centers located in Atlanta and Worcester. The leaders of the Atlanta and Worcester Operations are meeting in three weeks to kick off the discussion of the new headquarters location. The meeting will be facilitated by a third party with the intent of reaching an agreeable solution. Each team will present their approach at the meeting and includes preliminary documents, meeting set-up and meeting agenda. Both locations are eager to win the headquarters building. Both locations enjoy the same benefits and pay is situated at the 65th percentile of the local market. Six people will attend the preliminary headquarters location meeting, three from each location: Head of Operations, Head of HR and the CFO from each location. Atlanta: Each operation center has stable leadership, solid expertise and focus. Each center does however represent a strong and distinct niche: Atlanta represents the roots of Apex Products as the face of the brand and manufacturing center. Atlanta has a lower manufacturing labor cost, close proximity to abundant and faster growing softwood used in construction, less transportation weather uncertainty, easy access to interstate highways and close proximity one of the countries' most widely used airports, Hartsfield. Atlanta has a strong wood products manufacturing infrastructure and a stable and loyal workforce of 5,000 people in three area facilities. Traditional Managerial Approach: o Leadership Team: Head of Operations, Head of HR, CFO O Reporting to the Head of Operations for each the three manufacturing locations: VP Operations, VP Logistics Inbound, VP Logistics Outbound (9 direct reports) Manufacturing Location Chain of Command reporting to each VP: Director of Operations, Inbound, Outbound, Analysis, Quality Control, Maintenance, Customer Service (7 direct reports) Under each Director is: >> Senior Manager >> Manager >> Supervisor >> Assistant Supervisor >> Team Lead >> hourly employee O Reporting to the Head of HR: one VP HR for each location, VP Compensation and Benefits, VP Training and Development, VP Safety (6 direct reports) Manufacturing Location Chain of Command reporting to VP HR: Director HR, Director Employee Relations Reporting to VP Compensation and Benefits: Director Compensation, Director of Benefits, Director of Payroll, Director Analytics Reporting to VP Training and Development: Director Training, Director of Organizational Development, Director of Media and On-Line VP Safety: one Director of Safety for each location Atlanta is run as a true manufacturing operation with a focus on efficiency, timeliness with a traditional chain of command. The Atlanta location is known as a jewel in the south and a model of well-paying middle class jobs. Their reputation allows them to hire the best talent when there is the infrequent opening. This model of solid wages, stable work and good benefits does put some financial pressure on Apex due to aging equipment and the size of the workforce. Locating the headquarters in Atlanta would expand the Apex reputation into the professional ranks as having professionals as well as manufacturing workers on location. Apex Products December, 2017 Apex Products December, 2017 Page 1 Page 2 O O The numbers of direct reports under each director varies by discipline O Reporting to the CFO: Controller, Director of Analysis, Director of Financial Modeling and Media Organization Direction o Vision - well articulated: World leader in determining where and how to create the greatest long-term value. (MA-for this class exercise, taken directly from Georgia Pacific) o Mission - Through excellence in all we do, the resourceful people of Apex Products grow our value and create wealth for our investors by providing value-added forest products that enable our customers and consumers to enhance where they live, work, and play. (MA-for this class exercise, taken directly from Georgia Pacific) Strict chain of command with defined structures and policy on communication, interacting, suggestions and complaints Leadership Team Characteristics O Head of Operations -energetic, firm, fix the problem, punctual and precise, lead by example, uses "l" more than "we", pay for performance at the individual level with higher levels gaining greater proportional rewards, runs a tight but profitable ship even with high cost of labor Head of HR-firm, policy focused, lengthy policy manual for interpretation of actions, follow the chain of command, rule driven, favors consistency and precedent, highly active training department, pay for performance based on objective criteria, very visible O CFO - only by the numbers, conservative financial risk assessment, tight spending limits and approvals, keeps current, uses information as source of power and shares little, challenges all financial transactions, operations finances are always accurate Reporting to VP Training and Development: Director Training, Director of Organizational Development, Director of Media and On-Line The numbers of direct reports under each director varies by discipline Reporting to the CFO: Controller, Director of Analysis, Director of Financial Modeling and Media Organization Direction o Vision - We manage our businesses to sustain environmental resources for future generations. We meet or exceed the expectations of our customers and are committed to helping them enhance their life experience.(MA-for this class exercise, taken directly from and adapted from Boise Cascade) Mission - We are committed to providing quality products, great service, convenience, and value. (MA- for this class exercise, taken directly from and adapted from Boise Cascade) o Short chain of command with widely understood open door policy at all levels. O Short policy that allow for interpretation based on organizational core values. Leadership Team Characteristics Head of Operations -energetic, friendly, visionary and looks for ways to improves, encourages others to challenge the process, punctual, lead by example, uses "we more than "1", performance is ongoing and in-the-moment at all levels, use of 360 feedback, works with and depends on others to move forward Head of HR-asks what can we learn, assumes people work hard and try to "show-up", upbeat and positive, can be seen as "mushy", up to date and open to experiment, includes others in planning, supports decisions of others, policy focused to minimize risk to the organization o CFO - challenges analysis to see what is possible, open to calculated risk, favors reduction of non-value added activity and daily/weekly reporting and favors monthly reconciliation, keeps current, strong market analysis and business savvy, openly shares financial picture- sometimes too much. O O Worcester Empowering Managerial Approach o Leadership Team: Head of Operations, Head of HR, CFO Reporting to the Head of Operations: VP Operations, VP Logistics Inbound/Outbound, VP Analysis, Quality and VP Maintenance (4 direct reports) Manufacturing Location Chain of Command reporting to each VP is a Director of the function Under each Director is: Manager >> Team Lead >> hourly employees O Reporting to the Head of HR: VP HR Manufacturing, VP Administration (includes Comp and Benefits) VP Safety, VP Training and Development direct reports) Manufacturing Location Chain of Command reporting to VP HR Manufacturing: Shift HR Generalists, Shift Safety Leaders (dual report to VP HR Manufacturing and VP Safety (6 direct reports) Reporting to VP Administration: Director Compensation and Benefits: Director Analytics Assumptions: 1. Benefits are 37% of salary 2. Median Wages (MA-for this class exercise, averaged several disciplines in manufacturing) a. Hourly manufacturing wages Atlanta -median $32,000 - high $52,000 (1,500 employees per location) b. Hourly manufacturing wages in Worcester -median $34,000 - high $56,000 (1,000 employees in manufacturing) c. Manufacturing Maintenance in Atlanta - median $42,040 - high $61,830 (500 employees in all 3 locations) d. Manufacturing Maintenance in Worcester -median $48,750 - high $72,140 (150 employees) e. Researchers in Worcester - $99,430 (150 employees) . Apex Products December, 2017 Apex Products December, 2017 Page 3 Page 4 12/4/2017 Atlanta Operations Atlanta Head of Operations v Ops Facility f. Engineers in Worcester - $97,300 (50 employees) g. Technicians in Worcester - $62,330 (250 employees) h. Hourly R&D and logistics wages in Worcester-median $36,000-high $60,000 (75 employees) i. Logistics planning in Worcester-median $95,400 - high - $ 160,820 (50 employees) 3. Manufacturing hub of 3 locations stay in Atlanta 4. Managerial and executive salaries are not included in the wage calculation - additional staff would be hired for Headquarters. 5. Both locations would require a new building. 6. To facilitate travel, the meeting is held in Philadelphia at the Ritz Carlton on Ten Avenue of the Arts. Os Facility VP inbound Facility 1 v inbound Foclity 2 VP Inbound Facility 3 VP Outbound Facility 1 V Outbound Facility 2 VP Outbound Facility 3 Atlanta Operations Facility 1 -Same Org Structure for Facilities 2 and 3 VP Ops Facility Dir Ops Dir Inbound Der Outbound Dir Analysis Dir Quality Control Dir Maintenance Dir Customer Service 12/4/2017 12/4/2017 Atlanta Operations Facility 1 -Same Org Structure for Facilities 2 and 3 and for Directors of Inbound, Outbound, Analysis, Quality Control. Maintenance and Customer Service Atlanta CFO - The number of direct reports under the Controller and each director varies by discipline. Dir Ops CFO Senior Manager by Shit Controller Die Analysis Manager by Shift Dir Financial Modeling & Media Relat. Supervisor by Assistant Supervisor by Shift Team Lead by Shift Hourly Employees by Shift Atlanta HR-Same Org Structure for VP HR for Facilities 2 and 3 with a Dir HR and Dir Employee Relations. The number of direct reports under each director across all of HR varies by discipline. Head of Otation Head of HR V Analysis VP Ops VP Logistics In/Outbound VP Maintenance VP HR Facility 1 VP HR Facility 2 VP HR Facility VP Comp and Benefits VP Safety VP Training and Development Die Diregi In/Outbound Dir Analysis Quality D Maintenance Dir HR Dir HR Di HR Dir Comp Die Training Dir Safety Facility 1 Manager Ops by Shit progistics In/Outbound brisht Manager Anal Mei Maintenance by Shit Team Lead Ops Dir Employee Relations Dir Employee Relations Dir Employee Relations Tam Analysis Quality Dir Benefits Team In/Outbound Dir Org Development Dir safety Facility Hourly Employees by S Dir Payroll Dir Media and On-line Dir Safety Facility 2 Hourly Employees by S Hourly Employees by Shift Hourly Employees by SA Der Analytics 12/4/2017 Worcester HR Worcester Head of VPH Manufacturing VP Admin VP Training and Development VP Safety Generalist by She Dir Comp and Benefits Der Training Safety Leader by Shirt Safety Leaderby Dir Analytics Dir Org Development Dir Media and Online Worcester CFO Worcester Controller Anal Dir Financial Modeling and Media Relat Apex Products Conflict at the Corporate Meeting - Background The wood products building industry is considered a low margin, low tech, highly competitive industry. Manufacturers and distributors compete directly both within the US nationally and internationally with Canada and indirectly with the world. Apex Products was founded in 1902 and has been a household name in wood building products across the US. The founding company was located in central Pennsylvania and was, at the time, ideally located to meet population growth and expansion in the Midwest and the Mid-Atlantic regions. Expansion to Worcester, MA in 1910, shortly after the company founding, took advantage of the supply of hardwood lumber in New England and established transportation routes. Expansion to Atlanta, GA occurred in 1947 and was aimed at fulfilling home construction needs of the post WWII population growth. Worcester, as a manufacturing center, lost geographic importance and presence in the 1980s'. The manufacturing workforce decreased from 6,000 employees to the current workforce of 1,000. Only one of the three original manufacturing locations now operates and boasts updated technology. An additional workforce of 500 is involved in R&D and logistics planning and is co-located at the manufacturing site. The Worcester area is experiencing a re-birth as a tech hub and is geographically situated in the growing research intense north-east corridor, Boston to Washington. Apex Products name recognition and presence is limited and is one of many brands headquartered within a 75-100 mile radius. Due to the reduction in manufacturing operations, Worcester was able to take advantage of new technology in the remaining location. Operationally, Worcester is a flat organization using a self-directed workforce model at the manufacturing location with the co-location of 500 R&D and Logistics Planning employees: technicians, analysts, engineers, logistics professionals and R&D Scientists. Due to proximity to Boston and New York City, the growth of technology and competition for talent, turnover in Worcester is approaching 30%. Housing starts in the east are down compared to the south and near west of Arizona and New Mexico but is somewhat offset due to the populations density of the east coast. To date, the mainstay of the business has been wood and wood related products for residential construction but, with competitive pressure from cheaper offshore products and Canada, the Board of Directors, as the arm of the shareholders, is requesting a change in direction to increase diminishing market share. The Board expects a full report by the first of the year to include revisions to the vision, mission and product strategy, full financial review, impacts to the labor market and relocation of the headquarters to either one of their two main operations centers located in Atlanta and Worcester. The leaders of the Atlanta and Worcester Operations are meeting in three weeks to kick off the discussion of the new headquarters location. The meeting will be facilitated by a third party with the intent of reaching an agreeable solution. Each team will present their approach at the meeting and includes preliminary documents, meeting set-up and meeting agenda. Both locations are eager to win the headquarters building. Both locations enjoy the same benefits and pay is situated at the 65th percentile of the local market. Six people will attend the preliminary headquarters location meeting, three from each location: Head of Operations, Head of HR and the CFO from each location. Atlanta: Each operation center has stable leadership, solid expertise and focus. Each center does however represent a strong and distinct niche: Atlanta represents the roots of Apex Products as the face of the brand and manufacturing center. Atlanta has a lower manufacturing labor cost, close proximity to abundant and faster growing softwood used in construction, less transportation weather uncertainty, easy access to interstate highways and close proximity one of the countries' most widely used airports, Hartsfield. Atlanta has a strong wood products manufacturing infrastructure and a stable and loyal workforce of 5,000 people in three area facilities. Traditional Managerial Approach: o Leadership Team: Head of Operations, Head of HR, CFO O Reporting to the Head of Operations for each the three manufacturing locations: VP Operations, VP Logistics Inbound, VP Logistics Outbound (9 direct reports) Manufacturing Location Chain of Command reporting to each VP: Director of Operations, Inbound, Outbound, Analysis, Quality Control, Maintenance, Customer Service (7 direct reports) Under each Director is: >> Senior Manager >> Manager >> Supervisor >> Assistant Supervisor >> Team Lead >> hourly employee O Reporting to the Head of HR: one VP HR for each location, VP Compensation and Benefits, VP Training and Development, VP Safety (6 direct reports) Manufacturing Location Chain of Command reporting to VP HR: Director HR, Director Employee Relations Reporting to VP Compensation and Benefits: Director Compensation, Director of Benefits, Director of Payroll, Director Analytics Reporting to VP Training and Development: Director Training, Director of Organizational Development, Director of Media and On-Line VP Safety: one Director of Safety for each location Atlanta is run as a true manufacturing operation with a focus on efficiency, timeliness with a traditional chain of command. The Atlanta location is known as a jewel in the south and a model of well-paying middle class jobs. Their reputation allows them to hire the best talent when there is the infrequent opening. This model of solid wages, stable work and good benefits does put some financial pressure on Apex due to aging equipment and the size of the workforce. Locating the headquarters in Atlanta would expand the Apex reputation into the professional ranks as having professionals as well as manufacturing workers on location. Apex Products December, 2017 Apex Products December, 2017 Page 1 Page 2 O O The numbers of direct reports under each director varies by discipline O Reporting to the CFO: Controller, Director of Analysis, Director of Financial Modeling and Media Organization Direction o Vision - well articulated: World leader in determining where and how to create the greatest long-term value. (MA-for this class exercise, taken directly from Georgia Pacific) o Mission - Through excellence in all we do, the resourceful people of Apex Products grow our value and create wealth for our investors by providing value-added forest products that enable our customers and consumers to enhance where they live, work, and play. (MA-for this class exercise, taken directly from Georgia Pacific) Strict chain of command with defined structures and policy on communication, interacting, suggestions and complaints Leadership Team Characteristics O Head of Operations -energetic, firm, fix the problem, punctual and precise, lead by example, uses "l" more than "we", pay for performance at the individual level with higher levels gaining greater proportional rewards, runs a tight but profitable ship even with high cost of labor Head of HR-firm, policy focused, lengthy policy manual for interpretation of actions, follow the chain of command, rule driven, favors consistency and precedent, highly active training department, pay for performance based on objective criteria, very visible O CFO - only by the numbers, conservative financial risk assessment, tight spending limits and approvals, keeps current, uses information as source of power and shares little, challenges all financial transactions, operations finances are always accurate Reporting to VP Training and Development: Director Training, Director of Organizational Development, Director of Media and On-Line The numbers of direct reports under each director varies by discipline Reporting to the CFO: Controller, Director of Analysis, Director of Financial Modeling and Media Organization Direction o Vision - We manage our businesses to sustain environmental resources for future generations. We meet or exceed the expectations of our customers and are committed to helping them enhance their life experience.(MA-for this class exercise, taken directly from and adapted from Boise Cascade) Mission - We are committed to providing quality products, great service, convenience, and value. (MA- for this class exercise, taken directly from and adapted from Boise Cascade) o Short chain of command with widely understood open door policy at all levels. O Short policy that allow for interpretation based on organizational core values. Leadership Team Characteristics Head of Operations -energetic, friendly, visionary and looks for ways to improves, encourages others to challenge the process, punctual, lead by example, uses "we more than "1", performance is ongoing and in-the-moment at all levels, use of 360 feedback, works with and depends on others to move forward Head of HR-asks what can we learn, assumes people work hard and try to "show-up", upbeat and positive, can be seen as "mushy", up to date and open to experiment, includes others in planning, supports decisions of others, policy focused to minimize risk to the organization o CFO - challenges analysis to see what is possible, open to calculated risk, favors reduction of non-value added activity and daily/weekly reporting and favors monthly reconciliation, keeps current, strong market analysis and business savvy, openly shares financial picture- sometimes too much. O O Worcester Empowering Managerial Approach o Leadership Team: Head of Operations, Head of HR, CFO Reporting to the Head of Operations: VP Operations, VP Logistics Inbound/Outbound, VP Analysis, Quality and VP Maintenance (4 direct reports) Manufacturing Location Chain of Command reporting to each VP is a Director of the function Under each Director is: Manager >> Team Lead >> hourly employees O Reporting to the Head of HR: VP HR Manufacturing, VP Administration (includes Comp and Benefits) VP Safety, VP Training and Development direct reports) Manufacturing Location Chain of Command reporting to VP HR Manufacturing: Shift HR Generalists, Shift Safety Leaders (dual report to VP HR Manufacturing and VP Safety (6 direct reports) Reporting to VP Administration: Director Compensation and Benefits: Director Analytics Assumptions: 1. Benefits are 37% of salary 2. Median Wages (MA-for this class exercise, averaged several disciplines in manufacturing) a. Hourly manufacturing wages Atlanta -median $32,000 - high $52,000 (1,500 employees per location) b. Hourly manufacturing wages in Worcester -median $34,000 - high $56,000 (1,000 employees in manufacturing) c. Manufacturing Maintenance in Atlanta - median $42,040 - high $61,830 (500 employees in all 3 locations) d. Manufacturing Maintenance in Worcester -median $48,750 - high $72,140 (150 employees) e. Researchers in Worcester - $99,430 (150 employees) . Apex Products December, 2017 Apex Products December, 2017 Page 3 Page 4 12/4/2017 Atlanta Operations Atlanta Head of Operations v Ops Facility f. Engineers in Worcester - $97,300 (50 employees) g. Technicians in Worcester - $62,330 (250 employees) h. Hourly R&D and logistics wages in Worcester-median $36,000-high $60,000 (75 employees) i. Logistics planning in Worcester-median $95,400 - high - $ 160,820 (50 employees) 3. Manufacturing hub of 3 locations stay in Atlanta 4. Managerial and executive salaries are not included in the wage calculation - additional staff would be hired for Headquarters. 5. Both locations would require a new building. 6. To facilitate travel, the meeting is held in Philadelphia at the Ritz Carlton on Ten Avenue of the Arts. Os Facility VP inbound Facility 1 v inbound Foclity 2 VP Inbound Facility 3 VP Outbound Facility 1 V Outbound Facility 2 VP Outbound Facility 3 Atlanta Operations Facility 1 -Same Org Structure for Facilities 2 and 3 VP Ops Facility Dir Ops Dir Inbound Der Outbound Dir Analysis Dir Quality Control Dir Maintenance Dir Customer Service 12/4/2017 12/4/2017 Atlanta Operations Facility 1 -Same Org Structure for Facilities 2 and 3 and for Directors of Inbound, Outbound, Analysis, Quality Control. Maintenance and Customer Service Atlanta CFO - The number of direct reports under the Controller and each director varies by discipline. Dir Ops CFO Senior Manager by Shit Controller Die Analysis Manager by Shift Dir Financial Modeling & Media Relat. Supervisor by Assistant Supervisor by Shift Team Lead by Shift Hourly Employees by Shift Atlanta HR-Same Org Structure for VP HR for Facilities 2 and 3 with a Dir HR and Dir Employee Relations. The number of direct reports under each director across all of HR varies by discipline. Head of Otation Head of HR V Analysis VP Ops VP Logistics In/Outbound VP Maintenance VP HR Facility 1 VP HR Facility 2 VP HR Facility VP Comp and Benefits VP Safety VP Training and Development Die Diregi In/Outbound Dir Analysis Quality D Maintenance Dir HR Dir HR Di HR Dir Comp Die Training Dir Safety Facility 1 Manager Ops by Shit progistics In/Outbound brisht Manager Anal Mei Maintenance by Shit Team Lead Ops Dir Employee Relations Dir Employee Relations Dir Employee Relations Tam Analysis Quality Dir Benefits Team In/Outbound Dir Org Development Dir safety Facility Hourly Employees by S Dir Payroll Dir Media and On-line Dir Safety Facility 2 Hourly Employees by S Hourly Employees by Shift Hourly Employees by SA Der Analytics 12/4/2017 Worcester HR Worcester Head of VPH Manufacturing VP Admin VP Training and Development VP Safety Generalist by She Dir Comp and Benefits Der Training Safety Leader by Shirt Safety Leaderby Dir Analytics Dir Org Development Dir Media and Online Worcester CFO Worcester Controller Anal Dir Financial Modeling and Media Relat
