Innovative Management & Courage To Try New Things

It was an unexpected statement from a seriously passionate educator. And it came from the very top.

"Education is begging for a stirring up."

In Oregon, supposed "progressive state" fails to apply, after 10 straight years of educational budget cuts. At LBCC in Albany, new ideas are welcome, as many have been affected by those fierce budget cuts. In the words of LBCC staff and students alike, "We need to think about the future."

 Linn Benton Community College, and needing a "stirring up."

All it takes is the courage to get on board the innovation train, and try an idea. Steve Iverson did it, in a time when approaches to different ideas were not accepted. Iverson went with his ideas, and his company, Nucor Steel, became a model for management, and for business.

Nucor has little traditional management. In an era of massive structure between CEO's and bottom layer employees, Nucor bucks that trend, and has but four levels of management. And no "mission statement." Bucking business trends indeed.

Points to consider:

1) In "Business Essentials" by Ebert & Griffin, Nucor is examined briefly in Chapter 10. In that chapter, the book asks why Nucor is so successful, and why a lack of individual performance bonuses has been so successful.

The answer is simple. In a team atmosphere, where different individuals contribute to the the total success, focusing on "the team" is held in higher regard.

The benefits are multi-faceted:

• pride in performance
• employees take initiative in performance
• goals are higher and divisional competition spurs excellence
• idea sharing
• little management and a respect for employee minds creates innovation in production processes

An old loading dock, integrated into Talking Waters Garden, by innovative employees at Albany's Water Plant

Of course, sometimes the responsibility will cost employees. But that only occurs if production is poor, or quality is compromised.

2) The book goes on to ask the reader to identify the incentives, "financial and non-financial" in Nucor's awesome structure:

• managers are obligated to give employees opportunity to earn according to productivity
• employees should feel confident of fairness and security
• all employees are encouraged to be "cutting edge," even if sometimes failure occurs
• performance based financial incentives, creating work ethic and pride

 A friend's computer store, that has employee incentives for production AND solving tough problems.

3) Nucor's smallish management size, and its lack of many levels, contributes to the success of compensation by utilizing Ken Iverson's vision:

• low-level decisions are not only encouraged, it is the process
• because of such responsibility, Nucor managers are allowed to fail, creating effort and job-security
• freedom to manage has created a "get-it-done workforce"

In what I see as a hilarious but relevant question, the book asks:

4) Nucor uses no temps, should they? Why or why not?

• No, why change one of the most successful strategies in the history of business?
• No, Nucor employees have pride in their "team," do not blow that.
• I would ask Steve Iverson, honestly that's what I would do...

The reality is this, in light of such a rich history at Nucor, innovation in production management is encouraged as always, but viewing cost-efficiency as a temporary worker is NOT Nucor's bloodline.

My Nike 1990 Air Jordans, and a contradiction in business, as NIKE is a problem and Air Jordan was the best ever.

This chapter was my favorite in this textbook(another business problem) and will get me reading more about Ken Iverson and Nucor today.

As the American economy turns itself around, Nucor will be not only ready, but at the forefront of global business. Not because they sell alot of steel, but rather their approach to business mirrors the management process at Nucor.

5) Some reasons for Nucor's bright future:

• Expanded range of distribution, as Nucor has and will continue to expand with innovative production(investments & start-ups) and innovative shipping
• In the wake of devastating economics, Nucor has still maintained its look, which translates into awesome growth and profit in more prosperable times
• Because Nucor promotes ideas from the bottom layers, ALL employees will be involved in the process of moving from hard times to sustained innovation, and that fact alone means more ideas to grow as a company, and more importantly, to grow as a person and an employee

Some photos I shot at a friend's wedding, a metaphor for the Chapter featuring Nucor. The metaphor is simple, take pride in yourself and your family. Encourage growth and accept mistakes. Learn as you go and strive for peak performance. Love all...

The photos were shot with Canon cameras, the Rebel XTi & 7D.

Lenses are:
                 EFS 18-55mm IS
                 EF  28-135mm IS USM
                 EF  50mm USM
                 EF  70-300mm IS USM

Congrats to Aaron & Lisette, and to Nucor, and to the A-Team,
Good Luck Everyone!

In the end, it was Ken Iverson's vision, and Nucor's commitment to that very culture in the company. Maybe we should all take notes.

A Business101 exercise in using all the resources on a team, and a Priestman staple.

Attribution:

Ian Priestman's Business 101
Business Essentials, Ebert & Griffin
LBCC interview w/ President Greg Hamann
Industry Week, "Tale Of A 'Maverick'" from Dec. 2004
Good2Work, "Nucor: Decentralized Authority and A Sense Of Individual Responsibility" by Maria Pikalova
Personal reflection and experience