Case 12-2. Crow Point Cabinetry
What is the strategy of Crow Point Cabinetry?
Crow Point Cabinetry first strategy is that it got rid of the management layers in the production department and formed a team-based management system to empower employees. Then it implemented a gainsharing incentive system to its employees to reduce labor costs and increase earnings of employees. To prevent “backorders” from customers, a penalty/reward system was used and it worked bring in more satisfied customers. And lastly, communication among employees, between the employees and the management team and between the shareholders were kept open because of the team-based structure implemented.
What is responsible for the company’s turnaround?
Mr. Brian Stowell’s move to lay out the company vision and goals for the employees started the company’s turnaround and improve the performance of the company. But it still took painstaking effort to change the existing systems and improve processes. Eventually, the employees responded by being productive and “return the favor” to the company
Is the Crown Point experience transferable to other business settings? Yes it is transferrable, especially to growing companies that need management control systems as they grow. It is important that the company will set its vision and goals like what Mr. Stowell did and pursue changes to realize these vision. Management will eventually encounter some resistance from these changes but will consistency, the efforts will soon be rewarded as long as the employees will appreciate the benefits to them.
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