The Company
Columbia Flooring (CF), based in Danville, VA, is a 45-employee division of Columbia Forest Products (CFP), an employee-owned company. CFP is North America's largest manufacturer of hardwood veneer, hardwood plywood, and laminated products. Sold through a network of wholesale distributors, mass merchandisers and major OEMs, their decorative interior veneers and panels are used in high-end cabinetry, fine furniture, architectural millwork, and commercial fixtures.

The Situation
CF is in transition from traditional to principle-centered management. Employees were confused by new management philosophies and trust between management and the employees needed to be reestablished. CF wanted to develop a high performance, high commitment work system that employees could buy into.

The Response
VPMEP project managers Gerald Burch and John Hudson helped the company make its vision a reality. Hudson documented processes and created a quality system outline comparable to ISO 9000 to be used for an employee training manual. Burch worked with company management and employees to develop a skills-based compensation system. He facilitated employee meetings, developed a functional job analysis, researched regional wages, and helped create a pay-for-skills matrix with a clearly defined path of progression for employees to follow.

The Results
CF has implemented a team-based interview process for new hires, peer reviews on the shop floor, problem-solving groups, flow teams, and an evolving pay-for-skills compensation plan. CF employees are more productive because they are better informed and educated about company processes and procedures. They are able to produce a quality product with great market potential and high customer satisfaction. While it will take a few years to achieve its full potential, employees and management report positive feedback from this effort.

Management's Comment
"If you make your principles first, it really helps you with decision making and communication. VPMEP helped us create a compensation system based on our mission and values. They understood our beliefs and brought structure to our organization," said Anne Goins, Human Resources Manager. "Gerald had actually been involved in manufacturing. He knew not just in textbook, but in real application how to help. Academics not applied personally are a roadblock. VPMEP's plant experience gives me a lot of confidence," said John Tappan, Plant Manager.

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