Metal company proves the benefits of sharing relevant numbers with its employees
After 50 years in the business, the family-owned metals manufacturer U.S. Zinc Corp. faced stagnated profits in the face of declining metals market prices.
“The owners were looking for an exit,” says Kevin Berchelmann, management consultant and president of Triangle Performance in Spring, Texas.
But to secure a better sale price, the Houston company knew it needed to increase profitability; it hired Berchelmann’s firm, recently named No. 9 on Houston’s list of fastest growing companies, to help.
“We needed to shore up earning significantly, and traditional cost-cutting and productivity efforts weren’t realizing anything at all,” says Berchelmann, whose clients include both Fortune 50 giants and small mom-and-pop businesses.
The team decided to launch a true gain-sharing effort by distributing a ton of relevant financial data and business information to all employees—including minimum-wage entry-level furnace operators.