On April 9th, 2019 an article by Corvex CEO and President Ted Smith was published in Manufacturing Business Technology. The piece summarized an important cornerstone of the Corvex philosophy - that without real worker engagement digital transformation will stall. The following is an excerpt with a link to the rest of the piece for your convenience.
The Key to Digital Transformation: Engaging Workers
by Ted Smith
Generational changes within the workforce combined with a tightened labor market are causing pressures many manufacturers have never faced before. A drive toward digital transformation is accelerating that rate of change as industries race to stay ahead of the competition and avoid potential competitive disruption. Unfortunately, as an industry, we’re not always meeting these challenges. For example, last year’s report from PulsePoint showed an overall failure rate for digital transformation projects of 84 percent. And it’s not due to lack of investment. More than $1.1 trillion was likely spent on digital projects in 2018, with about a third, over $333 billion (according to IDC) been spent by manufacturers on applications, connectivity services, and IT services.
At the same time, the improvement rates of quality, safety and productivity in particular seem to have stalled. In fact, the Department of Labor reported in February of 2019 that for the past 8 years, productivity has risen a meager 1 percent on average within the industry compared to nearly triple that in previous periods. Safety improvement rates seem to have plateaued as well, and customer complaints continue to be one of the main lagging indicators for quality.
Read the rest of the article on Manufacturing.net here.