Document ZDj3k01dnvekepew59QjgjaL

prospects >nics business PLAINTIFFS. ,, - EXHIBIt If DUP-564 Heckert on productivity Page 2 TEMRQson fast DUP 0846068 Rage 2 Viewpoint Heckert examines human sic Vice Chairman Richard E. Heckert discussed the human side ofmanaging complexity in a speech last month at Howard University in Washington. In this portion of his talk, he asks: Are there ways to foster greater individual initiative within the corporation? *0 0 President Wilson had 14 points. President Roosevelt had four freedoms. Heckert will give you three old-as-the-hills comments on freeing employees for productive work. First, there is the obvious need for what could be called "corporate federalism." DuPont is famous in the manage ment textbooks for developing a de centralized system of operation back in the 1920's. Decentralized manage ment was adopted by many other companies as well. Often, though, there is the tendency to move away from sound decentralist principles to obtain more standardized procedures throughout a large corporation. That is fine in some ways. But the tradeoffs can be large. The bigger and more complex some institutions necessarily become, the more we see the need for smaller units within the large structure -- strategic business units which can call on all the re sources of the larger institutions, but which retain the mancuvcrabilitv of ? small boat, no: a battleship. There is no single rightsize for these smaller units. The right size depends on function and mission, but units should be sized and structured so that the individuals involved feel that they can have a significant impact on its operation. Every department of Du Pont has examined itself during the past decade with the objective of establishing op timum sized business units. Each has major control over its own manufac turing and marketing but the ability to use wider corporate resources. Good communication Now, let me offer a second point which sounds like a truism: the need for good communication. This is espe cially significant when you examine the meaning of the word "communica tion." It comes from the same root as the word "communion." Its original meaning was not just telling, but shar ing. That includes listening! Vice Chairman Richard E. Heckert To my mind, the moi important component productivity is a sense o\ personai accountability for results. We have a different view of the role of managers at Du Pont now than we used to. Oh, there is still the need for "telling." Our managers and super visors have not abdicated. We still make sure that those individuals in charge have the combination of re sponsibility and authority which make: them want to get the job done, and allows them to require that it fea<Son But the emphasis now is rinq knowledge, experience, a \work. ing enrourj orgl Tor tryin'cf/biut in idea Somt tion" Cc manage!] need to work out manage possible diffe^n operate hay" 2s ftoo mi ` (?s dest foo.li int tio ffnsi 1 ,,selvek *f/eilR/ent isi ! ?sons. ItT jfjse m si: jtogeth jr jsine lialogi e: utives ab the'yent'. rnece 'as-the freeir >unne' devel towa: voli ev4ry t ial i News in brief DUP 0846069 'Nomex' capacity to increase CardioaUiUver MineJn-QPefaboflamayJof-tbfi^fgflfstration a Textile-Eiborsryvill increas*<aS^tv--^''^"^^TxJurrenffT'produces maceutical produc.s jj.amines human side ofotrianaqin brief make a project work, not just tell/9 others what to do. "Communication" is not a pana cea. It has its price. The attempt to resolve different viewpoints through a sharing of ideas creates its own kind of conflicts. New ideas can be threaten ing. A big job of top management is to 1 encourage creativity at all levels of the organization by making the rewards for innovation greater than the penalties Tor trying out an idea and failing! Sometimes too much "communica tion" can be as destructive to sound management as too little. People often need to and want to be left alone to work out problems. People want to manage themselves as much as possible. Different situations demand different solutions. The machine operator and the maintenance person have to talk together often. For the managers of a business venture, how ever, a few dialogues each year with higher executives about the strategic direction of the venture may be sufficient. emove unnecd!saiy leuUlulS My third old-as-the-hills point: I want to stress freeing the individual employee from unnecessary restraints so that he can develop a solid man agerial attitude toward his work, whether he has the title of "manager" or not. , At On Pont we are stressing increased delegation and greater in volvement by every employee in the setting of nhfcctivps ^tanHarH^ anrl responsibilities. The national debate over prod uctivity during the past several years has sparked many useful proposals. But, to my mind, the most important component of productivity is not one that has surfaced very much during the debate. I would define that component as a sense of personal accountability for results. For instance, a maintenance man or woman at a Du Pont plant may be more than ready for lunch when the clock says noon. But if a machine is down so that production is stopped, and that person says, "I can't leave until my machine is back on line," we have taken a big step toward improving productivity. That attitude, that "man agerial perspective," is the bedrock of productivity. The managerial attitude is that which makes the individual see his workand his product the same way a top-level manager sees them: in relation to the work of the entire business unit and the work of the whole company. There is no substitute for training in dividuals properly and then relying on their hearts and minds, not just com pany rule books. If we assume that oood things will happen in this company only when They are forced to by the rules we set up. we'll win small battles and lose the war. If a manager goes down that route, he spends all his time reacting to problems, instead of working to inves tigate and develop opportunities. Instead of attempting to mandate a "zero-risk" atmosphere in the cor poration, management should be encouraging all our employees to be creative, and not satisfied with the way things are. For the most part, fully challenged people tend to be satisfied people. Doing our very best work not only in creases productivity but the quality of working life as well. ntfsaie orphar--------day-injarf-'SliiLe siait-TJfToHhe-site. in