What Industrial sector does the organization belong in?
What levels-based interventions were used in the project?
- Stratified Structure Review: The article hints that an excess of management layers in manufacturing existed. RO emphasizes eliminating any levels exceeding the true complexity of the work being done.
- CEO Role Reassessment: Turcotte restored the CEO position to stratum VI (level of complexity). This enabled appropriate, 12-15 year strategic thinking that was required.
- Accountability Focus: Turcotte challenged a culture of inaction and entitlement. His messaging emphasizing 'earning your keep' reflects RO's insistence on clarity of roles and expectations.
- Functional Realignment: Turcotte made internal structural changes in sales, production, and product development with the goal of improving overall processes and strategy. RO provides models for how functions should interact to ensure clear decision-making authority.
- Performance Appraisal Focus: The new 'effectiveness appraisal' system strongly aligns with RO's dedication to regular feedback systems that define both the work to be done and how success will be measured.
What benefits resulted from the levels-based interventions
- Financial Turnaround: Algoma went from near collapse to being highly profitable with significantly reduced debt, improving stability and investor confidence.
- Operational Improvement: Optimized production, process changes, and focus on product quality helped the company meet its market potential.
- Culture Shift: The shift to 'keeping your word' and 'earning your keep' indicates greater accountability and likely more engaged employees.
- Shareholder Value Delivery: This success translated into positive financial returns for those who had invested in the company.
What was the issue(s) that motivated the levels-based project?
- Financial Distress: Two bankruptcies in a decade placed the company's very survival at risk.
- Legacy Debt: Prior business decisions left the company with substantial debt even as it tried to revitalize operations.
- Operational Inefficiencies: The high-tech Direct Strip Production Complex wasn't operating near its design capacity, undermining plans for greater efficiency.
- Mismanagement: Previous strategies failed, suggesting problems with decision-making, execution, or unclear expectations and accountability.
- Unmotivated Workforce: Concession agreements with the union had eroded management authority and may have fostered an employee mindset of entitlement rather than a drive for results.
Geographic area of the project
Estimated RO Stratum of the organization
What is the character of employee relationships?
Unionized
Approximate Years of project interventions
10 years from
Strata in which RO interventions were used
Estimated number of employees affected by the interventions.
2800
Check boxes to indicate the functions where levels-based interventions were used
CEO & general management
Human Resources
Operations or production
Within its industrial sector, specifically what type of organization is it?
A fully integrated steel producer
What type of governance (legal status) does the organization have?
Member for
2 years
Denis
Managing Partner in Brookfield's Private Equity Group
Brookfield Asset Management
Member for
17 years
Gerald A. (Gerry)
User Type
Citizen Affiliate
GO Society Roles
- International Advisor - United States (2005-present)
- Global Organization Design Society sponsor - 2023
President and CEO
Kraines Consulting
Member for
17 years
Cynthia (Cynsie)
User Type
Citizen Affiliate
GO Society Roles
- Internation Advisor - United States (2005-present)
- GO Society Board member (2018?-present)
Vice President - Education and Training
The Levinson Institute
