WednesdayMar 102010


Search Training Industry.com


Member Information

Welcome, Guest


‘Managing By Values’ Brought the Company Back, But Now Will it Guide its Growth?

In 1991, Tom Cleveland, CEO and owner of the Caterpillar dealership, H.O. Penn Machinery Company, Inc., found himself contemplating the sale of his poorly performing business, which had been in his family for nearly three decades. After he was unable to reach an agreement with a particular buyer, however, Cleveland re-committed himself to H.O. Penn, determined to turnaround its fortunes. He introduced a management system called ‘Managing by Values’ (MBV), with the objective of infusing explicitly stated values and goals into every facet of the company’s operations. At first, employees were comfortable with the concept, but as Cleveland implemented the process he encountered a great deal of resistance. He persevered, convinced that MBV could have positive and enduring benefits for all of the company’s stakeholders. Eventually, employees embraced the new system. Over the next 15 years, both company morale and financial performance improved markedly. Perhaps nothing demonstrated H.O. Penn’s emerging cohesiveness more powerfully than the firm’s nationally recognized work to rapidly supply and support heavy equipment and generators in the rescue, recovery, and restoration efforts in the aftermath of 9-11.

Members may read the full case study, please login