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World-Class Results Start with World-Class HR

The DDI Plant Leadership five-part series presents findings from the MPI Manufacturing Study, including survey questions developed exclusively for Development Dimensions International that focus on plant leadership and talent development.

World-Class Results Start with World-Class HR: World-class manufacturers outperform their competitors—and have better human resource management and development practices.

Would you like to generate an additional $35,000 per employee—and turn your plant’s inventory 20 percent faster?

You can. The secret to this improvement walks through your doors every day.

World-class manufacturers (those at or nearest to world-class manufacturing status) outperform competitors by managing the human side of the business more systematically, approaching HR—employee training, leader development, associate engagement—with the same rigor they apply to supply-chain matters or automated systems.

Strong leadership matters in boosting morale, productivity, and profits. These leaders coach and guide engaged employees, helping them to continuously identify problems and develop solutions. Executives at plants closest to world-class status:

  • Believe human resource management is important to success: 76 percent of world-class plants rate HR as “important” or “highly important” vs. 53 percent of those furthest from world-class status.
  • Engage employees in improvement approaches: world-class plants have 75 percent (median) of employees engaged in their improvement methodologies vs. 25 percent at plants furthest from world-class status.
  • Provide necessary training: 61 percent of world-class plants train each employee more than 20 hours annually vs. 37 percent of those furthest from world-class status.
  • Align training with specific operational needs: 78 percent of world-class plants have documented skills standards supported with training aligned to thoses standards vs. 37 percent of those furthest from world-class.

World-class results start with world-class HR.

What would make your HR practices more like world-class?

The MPI Manufacturing Study was conducted by the Manufacturing Performance Institute (part of the MPI Group) in November and December 2014. The MPI Group received study responses from 319 manufacturing plants, encompassing a range of industries (e.g., 17% computer and electronic products, 14% fabricated metal products, 11% machinery, 10% chemical) and sizes (31% with fewer than 50 employees and 17% with 500 or more employees).


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