Member Article

Manufacturing: Plan for prosperity, prepare for austerity

It’s manufacturing focus week on Bdaily, and we’re looking at the debate around the UK sector. Here, Gary Wyles, managing director of Festo Training and Consulting, shares his thoughts on skills in manufacturing.

There are constant reports about the rise and decline of manufacturing and its importance to the UK sector. Whatever state we are in, there is one constant need. That is the need to develop the skills of people in the industry.

Leadership is a key skill. In 2012, Festo released a report ‘Manufacturing: A People Business’ to highlight the need to develop soft skills, as well as the technical proficiency that we’re renowned for. 63% of organisations recognised a need to develop leadership strategic skills and only 32% felt their leadership capabilities were adequate.

It is also about strategic skills and managing more than one strategy. It’s about planning for prosperity and preparing for austerity. The most essential leadership skill is the ability to recognise and implement change quickly. There is a question as to whether, as manufacturing leaders, we are up to the task in hand.

While early economic indicators in manufacturing are positive, we are still facing a volatile position in Europe, so there is also uncertainty about whether this growth is sustainable. Manufacturing companies are well-versed in preparing for austerity, but planning for prosperity requires different skills. This is the ability to balance growth with adequate resources and investment. At the same time, our leaders need to recognise the tipping point for austerity and have a back-up plan. This can only be achieved through detailed strategic planning and a change management programme that engages the whole organisation.

To overcome these challenges leaders need to:

• Take time out of the business to strategise and delegate effectively in order to do so
• Identify key business indicators that will direct the most appropriate plan to take
• Drive change through prosperity and austerity
• Engage with the organisation so that employees understand the business plan and rationale for change
• Be open and honest about the state of play on a monthly or weekly basis
• Recognise areas of pain within an organisation and address accordingly

The other element is around recruitment of people. Manufacturing suffers from a poor image in the UK. We tend not to be organisations of choice for talented individuals who might believe that there’s better paid and more fulfilling careers elsewhere – something that we strongly dispute. Luckily there are changes happening, such as the push to encourage studying of STEM subjects.

As a sector we have a constant need for skilled and talented individuals and they’re difficult to find. Festo’s research shows that 76% of manufacturing and engineering organisations find it difficult to recruit and state recruitment as a priority for management.

One issue that impedes recruitment is the high expectation of the employer. A trend we’ve noticed is ‘role creep’. In an effort to save costs, manufacturing firms are expecting employees to take on not just a single job but also to have experience in other fields. This sets the bar extremely high. At the same time, additional work is placed on existing employees to avoid recruiting more people. Both of these are poor long-term options. They’ll lead to disenfranchisement, lack of engagement, reduced productivity, increased absence and ultimately stress. Role creep makes it increasingly difficult to recruit and then retain the right people for the job in the long-term.

For people within manufacturing firms, leaders will need to:

• Be more realistic about recruitment and expectations
• Be prepared to invest in ongoing training and development
• Coach and mentor a pipeline of future leaders
• Work with higher education to improve experience and skills of students

This is a difficult time for our leaders to plan adequately for. Manufacturers need to ride the wave of growth, yet remain cautious and that can cause pain for any organisation if it does not get it right. Managing change can test even our most talented leaders to the limit, so organisations need to recognise this and ensure leaders are equipped with the necessary skills to see them through growth and austerity.

This was posted in Bdaily's Members' News section by Festo Training and Consulting .