Q&A: Lean manufacturing keeps KI employees in the loop

Programs, apprenticeships key in developing skilled workers

Green Bay Press Gazette --

The Green Bay Press-Gazette visits with newsmakers in the business world each week in its Monday Conversation feature. This week, Rod Ganiard, named president of KI in Bellevue last week, discusses the search for qualified workers, new product development and more.

Q. Several years ago, KI enthusiastically embraced Lean manufacturing and keeping employees fully in the loop as regards company performance. Was that process new to you, and as someone coming from the outside, at any rate, what are your observations about how it's working?

A. Lean manufacturing is a process that I'm very familiar with. I studied and practiced Lean for the last 10 years. It's been in place at KI since the late 1990s and continues as the cornerstone of our manufacturing operation.

Lean is essentially the focused elimination of waste in all its forms. Lean emphasizes continuous process improvement — a principle we embrace throughout KI. Our factory technicians, as well as our design, product development, sales, marketing, information systems, and financial departments pursue changes almost daily to improve KI's processes and productivity. We offer goal-sharing programs that encourage employee involvement and reward participants based on how they perform against various corporate metrics.

All employees know how their respective plant, as well as the company, is performing each month. And all of our performance metrics are open to all employees.

Q. Many manufacturers report difficulty finding qualified workers? Is KI experiencing similar difficulties? What basic skills do you require of prospective employees?

A. In Green Bay, we've addressed our skilled-labor needs with internal training such as Welding Certification Classes and apprenticeship programs at Northeast Wisconsin Technical College for needs in maintenance, electronics and other areas. We also participate in the Youth Apprenticeship program offered through NWTC. This program has brought some good young talent to our company. Overall, though, finding quality employees has not been an issue. I like to think that our reputation as an employee-focused company has a lot to do with this.

Q. What role does new-product development play in the long-term viability of the company? What are some recent innovations that have made an impact on sales?

A. New and innovative products are vital and an important part of KI's brand reputation. We set standards for new product development and sales from new products. Our goal is to achieve approximately 30-35 percent of our annual sales from products launched into the marketplace over the previous five years.
In terms of innovation, we recently launched a unique product to address the integration of technology into the workplace and learning environments. Our "Flatscreen Garage" lets users store a flatscreen monitor, keyboard, and mouse within a table and access the equipment with the ease of pushing a button. KI has a rich history of prize-winning product innovation, including many juried industry "best of show" awards.

Q. How does working in a private, employee-owned company affect the way the business is run, as compared, say, with a publicly traded company?

A. Dick Resch has established a culture at KI where every person who works here is an employee-owner and empowered to make decisions that contribute to the way we run our business. Unlike most companies, our people know that they will benefit financially when the company is successful. As Dick likes to say "everyone has skin in the game."

That's a powerful motivator, along with the positive peer pressure that comes with it. As a private company we have more agility and flexibility to implement changes, and are better able to act in our long-term strategic interests. Another benefit of being privately held is that although we have rigorous financial standards that are audited by outside firms, we are exempt from the costly and onerous reporting required of public companies. 2007 is on pace to be the best year financially in the history of KI.

Q. KI serves targeted industries and segments of industries as opposed to making commodity-like products. What are some of the benefits to this approach, and what are some of the shortcomings?

A. KI's go-to-market strategy is unique in our industry. We market directly to key vertical markets — education, health care, government and corporate — and, in some instances, segments within other markets. We commit resources such as marketing, product development and sales to each of these markets. An important benefit of this approach — and key point of competitive differentiation — is the deep knowledge and expertise we have in each market.

Our customers look to KI as an experienced and trusted adviser that can help them solve strategic issues that are specific to their market and organization, rather than just another contract furniture supplier.

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