Investing in behavioral and cultural change is the secret sauce to unlocking operational excellence in manufacturing.
When manufacturers embark on operational performance improvement initiatives, executives are often quick to buy into the need for operational process controls and precision of execution.
They accept that procedural changes need to be designed and implemented, and that this will take some time. They fully commit to the investment.
But they are often reluctant to accept the human capital component of the change journey that must go hand-in-hand with the mechanical changes—especially since structurally changing people’s behaviors can take two to three times as long as mechanically changing processes. Many key executives are beholden to the misconception that teams should and will simply come along for the ride. In reality, it rarely works this way.
When plant managers, supervisors, foremen, or key operators fail to embrace or sustain operational improvements, it triggers talk of personnel changes. Particularly in today’s challenging labor market, replacing people is resource and time intensive. It almost always takes longer, costs more, and introduces more challenges than investing in changing the behaviors and culture of the current team.
By fully incorporating people as part of the operational process improvement initiative from the start, manufacturers can get to the gains faster. Sustaining change management in manufacturing efforts ensures long-term performance improvement.
3 Ways to Ensure Human Capital Change Management Success
- Build the buy-in from the top.
- Start the human capital change management journey on day one.
- Commit to the full change management journey.
1. Build the buy-in from the top
Executives need to embrace the importance of investing in people change as a key part of the improvement process. What’s more, they need to demonstrate their commitment and model the change they expect to see.
a. Start with the right perspective
Leaders who expect quick compliance often overlook valid reasons for resistance. Shop floor teams are rarely consulted or informed about what changes are coming, why they’re needed, or how they’ll work. Without this context, changes can feel disconnected from operating realities. Many veterans have seen past initiatives fail and hesitate to invest effort in short-lived efforts. Understanding these perspectives allows leaders to address concerns, explain the value, and build a stronger change approach from the outset.
b. Understand the financial case
Behavior and culture change may feel intangible, but replacing people is costly—often three to four times a position’s salary, plus severance. Recruiting, training, and onboarding can take a year or more, delaying operational gains. If improvements are expected to generate $10 million annually, those savings are lost until new hires are fully effective. Replacing trusted leaders can also trigger further attrition. Addressing behavioral and cultural change internally is typically faster, cheaper, and more effective—nine out of ten people adapt within months when given the right support.
c. Make it real
Executives who embrace the human capital change journey must show it clearly. Leadership in change management actions should signal endorsement at the highest levels, with hands-on involvement in rollout. Visible executive commitment encourages shop floor leaders to get on board—becoming advocates who help rally the wider team.
2. Start the human capital change journey on day one
Changing people and culture takes longer than changing processes, but both must start together. Success increases when operational and behavioral changes advance in tandem.
a. Create awareness
Once an improvement opportunity is identified, communicate early and clearly with everyone affected—especially plant managers, supervisors, line leaders, and key operators. Explain why the change is happening, their role, and what’s in it for them to establish buy-in.
b. Solicit input
Make early discussions two-way. Frontline employees and managers hold insights that can prevent missteps and improve execution. Involving them from the start not only strengthens the plan but also builds ownership and commitment to the change.
c. Lead and engage
Sustain engagement throughout the three-month design and implementation period with regular updates and open communication. Transparency builds trust and excitement, ensuring teams are ready and motivated when the new process goes live.
3. Commit to the full change journey
The real behavior and culture shifts occur months four to twelve—long after process changes are implemented. Staying engaged during this period is essential to making change stick.
a. Maintain daily hands-on coaching and mentoring.
As teams adjust to new ways of working, daily mentoring helps address challenges, refine processes, and embed problem-solving and accountability into the culture. Ongoing training during this phase prevents momentum loss.
b. Expect a “valley of despair” and be intentional about celebrating successes.
After early wins, progress often slows before breakthrough results appear. Recognizing and rewarding small successes during this dip keeps motivation high until performance accelerates.
c. Make sure someone’s always playing point.
Because leaders are often stretched thin, human capital change can lose focus. Designate a point person to drive accountability, resolve issues, and sustain motivation. Companies that stay committed from start to finish achieve lasting culture change—where new behaviors become the norm and continuous improvement delivers measurable results.
Process change won’t work without the right kind of people change, too.
Manufacturers looking to achieve breakthrough performance through operational improvements cannot fully succeed or sustain the gains without simultaneous behavioral and cultural change. While some executives believe this will take new people, it’s always possible, easier, and more cost-effective to succeed with the existing team—provided they receive the right support and follow change management best practices throughout the journey. When organizations invest in their people alongside their processes, they win with better operations today and a culture of continuous improvement for tomorrow.
Create a Customized Change Management Plan
Achieving human capital excellence typically requires wide-scale cultural change. Processes and mindsets must evolve to create and sustain a new performance-driven culture where operational excellence is championed by every member of your team. To get there, TBM works with you to customize and implement a change management plan designed to establish the talent structure, discipline, and capabilities that drive winning culture while engaging employees at every step.
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