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Hayes Lemmerz

Professional Services 501+ employees Dec 23, 2024 11:37:28 PM Topgrading %

When Hayes Lemmerz International filed for bankruptcy in 2001, the board brought in Curt Clawson to bring the company back to profitability. He did so by implementing Lean Manufacturing (for systems and profit improvements) and Topgrading (for a major infusion of top talent).

Like most automotive suppliers, Hayes Lemmerz was slammed in the recession of 2008. Retaining the methods Clawson implemented, the company turned around again and was acquired in 2012 by Iochpe Group, parent of Maxion Wheels. Clawson retired, and long-term Hayes Lemmerz executive Fred Bentley became President and CEO of Maxion Wheels.

 "The company emerged from Chapter 11 one of the strongest automotive suppliers, and Topgrading contributed to that success. We can't win if we miss on people."

Curt Clawson, CEO

Number of Employees : 6,000

Industry : Automotive OEM Suppliers

Highlights:

  • A Player new hires improved to 74%, A Player promotions improved to 85%
  • Losses of $211 million in 2001 were replaced by break-even in 2002 and earnings from operations of $62 million in 2003.
  • EBITDA improved from $157M in 2008 to $193.3M in 2011

Solutions

HR Does the Heavy Lifting
Tim Welcer, Vice President Human Resources, participated in the Topgrading Train-the-Trainer program and, with the support of Chris Mursau, conducted a number of Topgrading Workshops. Welcer went on to conduct well-received Topgrading Workshops all over the world, training managers all the way down through those reporting to plant managers.

The organization's HR department has taken the primary Topgrading materials and translated them into local language formats for many countries where they conduct business. Managers are aware that the CEO, President/COO, and/or Business Unit executives will request to review Topgrading reports during visits to audit the process as well as use the reports to learn about the new hires before meeting them.

As they travel and as time permits, Welcer and others often participate in local-country interviews as observers to calibrate the effectiveness of those team members conducting the Tandem Topgrading Interviews.

How A/B/C Player Ratings Are Made
Hayes Lemmerz senior management team conducts an annual two-day Management Resource Review (MRR). Participation consists of the CEO, COO/president, the senior leadership team, Business Unit executives, and top Human Resources staff.

The Results

The top ten executives became a team of 100% A Players
Of the top 77 managers, from plant manager to CEO, Topgrading improved percent A Players from 38% to 89%
A Player new hires improved to 74%, A Player promotions improved to 85%
Losses of $211 million in 2001 were replaced by break-even in 2002 and earnings from operations of $62 million in 2003.
EBITDA improved from $157M in 2008 to $193.3M in 2011