Banta Catalog Group (BCG) provides comprehensive catalog production services including prepress, printing, binding, list processing services, and distribution. Banta Catalog Group has become an industry leader, combining technologies, expertise, and value-added solutions for its customers

Two years ago the organization found itself challenged with issues of overcapacity in an uncertain market, and an industry that was shifting from traditional offset printing to digital and Web-based solutions. In addition, margin pressures, increased costs, competition, and a silo structure mentality amplified the organization’s problems and prevented teaming, process improvement, innovation, and customer focus.

Defining the Issue

Initially, BCG believed that the solution rested in its ability to shore up the skills of the frontline leaders, and it brought in The Ken Blanchard Companies to discuss how to embark on the leadership improvement journey. “We selected Blanchard because they came to us as more than just a training vendor wanting to sell a product,” says Mark Deterding, President of BCG. “Blanchard clearly understood our business and where we needed to go, and were able to articulate that vision and the process for getting us there.”

But when further analysis revealed that employees couldn’t articulate BCG’s core business beyond “printing catalogs” and “making a profit,” it was decided that leadership training alone wouldn’t cut it. In order to create lasting change, BCG needed to create a culture where every employee was aligned around a common set of values that guided actions and created a compelling customer experience. Ultimately, the goal was to create the foundation for a future focus on improving leadership skills.

Blanchard’s Gung Ho! process, based on the best-selling book by Ken Blanchard and Sheldon Bowles, was a perfect match. BCG believed that for the culture change to be successful, it must start at the top. Senior leadership needed to model and drive the desired culture change, so senior leaders were the first to read the book and participate in Gung Ho! training. The next step was to discover the common ground in individual’s personal values, knowing that this would provide a strong foundation for aligning the organization’s values. Finally, the leadership team established the organization’s core values, from that common ground. This created a baseline for behavioral and cultural change that the leadership team could share with the entire organization.

As a result a new purpose statement was created to illuminate an expanded vision of where the organization was headed. Their new purpose—To deliver quality, on-time merchandising solutions that drive our customers’ success—was a significant shift from employee’s old perception that BCG “printed catalogs.”

Walking the Talk

To further solidify the initiative and communicate to everyone that this was not just the “flavor of the month,” BCG filmed customer video testimonials to demonstrate the value of the work each individual did and the impact it had on the customer. And the new set of values was tied directly to the organization’s performance evaluation system. But the defining moment occurred when senior leadership stood in front of the entire organization asking to be held accountable. As Deterding put it, “These values became our compass. They needed to guide each and every decision we made and every action we took. No matter how tough it was some days, we knew it was essential that senior leadership set the tone and walked the talk. And we asked every individual to hold us to these values.”

Primed for the Training Process

With the values and purpose of the organization firmly in place BCG was ready to embark on its training. The principles of Gung Ho! were cascaded throughout the organization from department managers, supervisors and line managers including the entire sales force, and frontline employees to create alignment at all levels. BCG believes that the power in the process was its ability to help people realize the purpose and importance of the role each person played in supporting the company’s vision, achieving performance improvement, and shifting the culture to one of recognition and rewards.

To ensure that the values would equate to changed behavior and performance BCG linked the new values the Performance/Values Matrix in Gung Ho! and the organizations performance evaluation system. Internal slide shows of employees doing real work illustrated appropriate and inappropriate behavior and provided another tool for supporting the values. And the Marketing department created a values brochure with detailed examples of behavior that would support the values.

A final step was to implement Blanchard’s Team Chartering process. This training allowed each group, from senior leadership and operations to customer support and marketing divisions, to identify how they supported the overall goals and values of the company. It also reinforced each individual’s understanding of their role in creating a successful organization.

After spending 12 months immersed in the new Gung Ho! culture, BCG’s leaders were ready for the next level of training. And Blanchard’s Situational Leadership II process was selected to train leaders at every level of the organization to develop self-reliant peak performers. BCG believes that the principles of SLII helped them make dramatic improvements in one-to-one coaching, communication, and the development of direct reports.

The ROI of Culture Change

To measure progress, BCG conducted employee engagement surveys every six months. In addition to the performance evaluation plan, one-to-one meetings, 360 leadership surveys, and climate surveys are administered consistently throughout the year to ensure that the organization stays on track. And the progress has been tremendous!

• Profitability has increased 36%.
• Within 6 months employee engagement improved 20%.
• Employee Retention improved 17%.
• Recruiting costs have decreased.
• Training costs for new employees have decreased.
• Employees actively look for ways to cut costs and improve the environment.

BCG believes that much of their progress was linked to the Gung Ho! process, which allowed them to build their purpose statement, define what they expected from employee, and drive each employee’s desire to accomplish the goals. But perhaps what they didn’t expect was the profound impact it would have on the hearts and minds of each individual in the organization.

Rewarding innovation and focusing on the behaviors that made a difference had a dramatic impact on the personal and professional lives of their employees. Deterding says, “When you start out talking about culture and how you need to treat people and then discover how it translates beyond the organization to home and family and friends, that’s when you really see the power of this process beyond the factory floor.” Terry Choate, VP and GM of Plant Operations agrees. “I’ve had supervisors tell me that this process has changed their careers and their lives.”

Today BCG feels that not only are they on a winning path, but one that will sustain itself. As Mark Deterding says, “Had we not started this initiative, we wouldn’t be where we are today. Now we’ve got the baseline, the measurements, the purpose, the culture, the environment, the people, and the skills to maintain this model going forward. That’s how powerful this process is.”