Reference no: EM131385260

Douglas Electrical Supply, Inc.
A Management Consultant Examines an Entrepreneurial Firm
Jim Essinger is a management consultant and training specialist from St. Louis who specializes in continuous process improvement and total quality management. Each month, he goes to Springfield, Illinois, and provides three days of training to employees of a privately owned electrical wholesaler- distributor, Douglas Electrical Supply, Inc. Most of the employees attending this fourth session are from the Springfield branch and have either gone back to the office or to their favorite restaurants during the lunch break. Jim has noticed that one of the class members is alone in the coffee shop of the hotel where the training sessions are conducted, and he has invited the young man to join him for lunch. The nervousness of his young companion is apparent to Jim, and he decides to ask a few questions. Jim: Tony, you seem a little distracted; is there something wrong with your lunch?

Tony: Oh, it's not that, Jim. I . . . I'm having a problem at work, and it kind of relates to the training you are doing with us. Jim: Really? Tell me about it. Tony: Well, as you might know, I drive a van for the company, delivering electrical products and materials to our customers. Jim: You work at the Quincy branch, right? Tony: Yes. I drive about 250 miles a day, all over western Illinois, making my deliveries. Jim: I see. Tony: About seven weeks ago, I was making a big delivery at Western Illinois University in Macomb. A lady pulled out in front of me, and I had to brake hard and swerve to miss her! Jim: You didn't hit her?

Tony: No! She just drove off. . . . I don't think she ever saw me. Anyway, I had a full load of boxes, pipe, conduit, and a big reel of wire. The load shifted and came crashing forward. Some of it hit me hard in the back and on the back of my head. Jim: Were you injured? Tony: I'm not sure if I was ever unconscious, but I was stunned. Some people stopped and helped me get out of the van. I was really dizzy and couldn't get my bearings. Eventually, they called an ambulance. The paramedics took me to the hospital, and the doctors kept me for two days while they ran some tests. Jim: Did you have a concussion? Tony: Yes, I had some cuts and a slight concussion. My wife was really upset, and she made me stay home for the rest of the week.

We have two little kids under four, and she wants me to quit and get a safer job. Jim: She wants you to quit? Tony: Yes! Sooner or later, all of the drivers get hit or have close calls. When you have a full load, those loads can shift and do a lot of damage. When I get in the van lately, especially when I have pipe or big reels of wire, I'm frightened. My wife is scared for me. I don't want to be killed or paralyzed, or something! Jim: I can understand your concern, Tony. What can the company do to protect you? Can you put in some headache racks or heavy-gauge metal partitions in the van that would keep the load from hitting you if it shifts? Tony: That's exactly what I was thinking! I've been talking with some of the other drivers during our TQM sessions.

We've learned that we can get heavy-gauge partitions that would keep us safe built for about $350 per vehicle. Jim: Good! Have you talked to management about making the modifications? Tony: Yes, I had all the information and talked to my boss in Quincy, Al Riess. However, he hardly seemed to listen to me. When I pressed the issue, he said the company had nearly 30 vans, counting the ones in Chicago and northern Illinois, and that the company could not afford to spend $10,000 for headache racks, partitions, or anything else! Al finally said that I was just being paranoid, that I should drive more carefully, and that I should definitely stop talking to the other drivers if I valued my job. Jim: You mean he threatened you?

Tony: You could say that. He said to keep my mouth shut and just drive . . . or else! Jim: Tony, is there someone else you could talk to about this problem? It would seem to me that one injury lawsuit would certainly cost the company more than the modifications you're proposing. Tony: Well, there's the problem! You know how expensive the TQM training is . . . and all of us "little people" were actually excited about TQM and continuous process improvement when the owners and you first talked to us. We believed management was changing and was really interested in our ideas and suggestions. We thought maybe they cared about us after all.

Jim: Well, I believe the owners do want to change the culture and improve the operations. Tony: Maybe it's different in Chicago and northern Illinois, Jim, but the guys in Peoria and Springfield are like military types and are really into control. I think they're authoritarians-is that the right term? Jim: Yes, authoritarians, autocrats . . . . Tony: Al Riess, my boss, is the son-in-law of Bob Spaulding, who heads our division.

As you probably know, Bob has a real bad temper and nobody crosses him twice, if you know what I mean. Bob is particularly sensitive about Al-because everyone knows Al doesn't have much ability and we're losing money at the Quincy branch. Jim: Okay, I see your problem with going to Bob. Is there a safety officer or anyone at headquarters who could logically be brought into this situation? Tony: I don't know! The owners seem to have a lot of confidence in Bob and give him a free hand in the management of our division. No, I don't see much hope of change. It makes the TQM training pretty hollow and kind of a crock! No offense, Jim! Jim: No, I see what you mean, Tony.

Tony: See, I have eight years invested in this company! I used to like my job and driving the van. But, now, I'm afraid, my wife is afraid. . . . Jim: Sure, I can understand where you're coming from! Let me ask you a question. How many van drivers are there in the entire company? Tony: I'm not absolutely sure. There are 17 drivers in our division, and I believe 13 to 15 drivers in the north. About 30 vans and drivers would be close to the correct numbers. Jim: Are any of the drivers in a union?

Tony: None of us in this area, but all of the truck and van drivers in the north are Teamsters. Jim: Aha! Have any of you ever talked to those drivers about this safety issue? Tony: Oh, I see where you're coming from. . . . Jim: Hang on! That might be your fallback position, but you won't necessarily be protected if you're regarded as a troublemaker. Let me think about ways I might be able to intercede in a functional way. Tony: Gee, that would be great if you could. I mean we like our jobs, but we've got to be safe and we've got to be heard when it is a matter of life and death!

Question
1. How would you describe and evaluate the leadership style of Douglas Electrical Supply?

2. What are the apparent values and assumptions of management in this business?

3. If you were asked to predict the effectiveness of this training effort, what would you say? Explain.

4. Based on this conversation, how would you size up the communication process in this business?

5. What is the proper role of a management consultant? Should Essinger try to intervene in the anagement process by discussing safety and personnel issues with management?