Self-Managed Teams

Innovation pushed C&S ahead again. Responding to employee suggestions, Rick introduced self-managing teams in the warehouse facilities in 1988. Organized into teams, workers determined their own earnings on a "piece-rate incentive." When a team member prepared ("picked") a successful shipment, the whole team earned more. A special "quality bonus" was added for correctly selected and completed orders.

The program proved to be a huge success. In the first six months, the total volume shipped increased by 35%, while total labor costs declined by more than 20%. Not wanting to let their teams down, absenteeism fell to below 3% and one out of every seven warehouse employees had perfect attendance.