Academic literature on the topic 'Sales Force Integration'

With the continuous improvement of China’s market economy and the intensification of global integration trends, the relationship between the supply and demand of China’s agricultural products has also undergone significant changes. From the previous short supply to the current oversupply, the sales of agricultural products have become a key factor restricting the development of the Chinese rural economy. Solving the problem of agricultural sales has become the internal driving force to promote the steady development of family farms, which is also the fundamental purpose of this paper. Therefore, this paper makes an empirical analysis of the factors influencing the choice of agricultural products’ sales channels among 170 family farms in Henan Province using a logistic regression model. The results show that selling agricultural products from family farms to consumers, enterprises, and large sales households are the main sales channels, accounting for 17.3%, 15.3%, and 15.2% respectively. The proportion of Internet sales ranks seventh among the eight channels, which has not been widely recognized. The regression results and assumptions are verified. The brand and certification of family farms’ agricultural products, business form of a farm, and understanding of the Internet have a significant impact on the choice of sales channels. According to the weight of influencing factors, the paper puts forward four suggestions for the selection and innovation in sales channels of family farms’ agricultural products. AcknowledgmentThis study is funded by The National Social Science Fund of China (grant no: 19BJ1Y144).

The Covid 19 pandemic has profoundly affected the competitive context of retail companies. Multiple changes have occurred both in consumer behaviour, in retail strategy and marketing channels. In particular, the pandemic has accelerated the use of digital technology in the processes of physical purchase and distribution of retail products, favouring new forms of integration between physical and online channels (so-called omnichannelling). Many brick&mortar stores have closed down, others have modified their original logistic functions in favor of the new digital integrated ones, with a smaller number of point of sales assuming the connotation of flagship stores with greater force. Some cases confirm the acceleration that took place towards the integration and redefinition of the roles of physical and online channels. The biggest retailers empower their predominance in the global markets. Smaller operators could renew their role by shaping new forms of collaboration to survive.

Purpose The purpose of this paper is to review the recent implementation of the Challenger Sales Model (CSM) at Cars.com, an online automotive marketplace that generated $633m in sales in 2016 with a sales force of over 500 representatives, and to identify insights related to the implementation that may be relevant to sales researchers and other organizations considering similar implementations. A more specific aim is to determine whether establishing “constructive tension” between salespeople and their customers, which is a key tenet of the CSM, was perceived as a source of value for Cars.com. Design/methodology/approach The case study is based primarily on in-depth interviews with 15 employees spanning different sales and/or training responsibilities in the organization, from the current CEO (previously the former Senior Vice President of Sales) to sales representatives from different sales teams. Findings Five major insights emerged from this research: (1) Because it represents a change in the established norms governing interpersonal dynamics, constructive tension is often more difficult for salespeople to foster when interacting with existing (vs prospective) customers. (2) Whereas leading with insights is more difficult when interacting with prospective (vs existing) customers, sustaining meaningful insights over time is a major challenge when dealing with existing customers. (3 )Products that are more transactional or price-driven are ineffective at creating constructive tension and incompatible with the CSM. (4) Creating value from constructive tension requires the entire sales organization to share a common vision of what it means to be a Challenger and to adopt consistent nomenclature and formal programs for training and coaching. (5) Even more than other consultative sales models, the successful implementation of the CSM demands company-wide integration and makes it untenable for most indirect sales teams. Originality/value Although prior academic research has offered critiques of the CSM, the present paper is one of the first to use a discovery-oriented, qualitative research approach to provide a retrospective look at the actual implementation of the CSM within an organization. This approach results in novel insights, such as the identification of conditions when high-pressure versus low-pressure selling techniques are likely to be more successful, that may be of interest to sales researchers and to other companies considering a large-scale implementation of the CSM or related sales methodologies.

Objetivo: Propor uma escala para mensurar a integração do vendedor ao Processo de Desenvolvimento de Produtos (PDP), considerando a perspectiva deste profissional.Metodologia: Por meio de técnicas de análise fatorial exploratória e confirmatória e estudos de validade foram analisados dados colhidos de 258 vendedores do segmento médico-hospitalar.Principais resultados: A escala desenvolvida apresentou propriedades psicométricas adequadas para a finalidade proposta, com bons parâmetros de confiabilidade e validade.Contribuições: Proposta de uma forma de mensuração da integração do vendedor ao PDP, segundo a perspectiva desse ator, uma vez que muito do que há na literatura se baseia na opinião de gerentes e supervisores. Paralelamente, o estudo poderá ajudar as organizações a projetar e implantar PDPs nos quais a integração do vendedor possa se dar de maneira efetiva, cobrindo uma gama de informações significativa para a empresa, assim como ajudá-la a manter funcionários com uma visão ampliada a respeito da atividade de vendas.Relevância / originalidade: A falta de clareza quanto à integração da força de vendas ao PDP, indica que o vendedor pode receber treinamentos que eventualmente sejam desperdiçados, recursos podem ser investidos nele incorretamente e informações muito ricas podem ser perdidas simplesmente porque não há entendimento por parte do profissional de vendas de que ele é um elemento integrante do processo.

Purpose – The purpose of this paper is to more thoroughly investigate the role of organizational citizenship behaviors (OCBs) in sales force settings and the reason why salespeople should practice OCBs. In fact, in spite of the huge body of literature on OCBs and their impact on performance, some important knowledge gaps still remain to be filled. Inconsistent and unexpected findings are particularly apparent in the relatively few studies investigating OCBs in sales forces. The authors argue that some specific characteristics of the selling job and related tasks make the analysis of the practice of these behaviors in the sales context particularly interesting. Design/methodology/approach – The authors explore which OCBs salespeople engage in, and analyze the perceived consequences of such behaviors using means-end theory and the laddering technique. They apply means-end theory and the laddering technique to interview a sample of salespersons from three companies operating in different business-to-business settings. Findings – The end result of the empirical analysis is the hierarchical value map showing a set of linkages among OCBs and their perceived consequences. In the perceptions of salespeople, OCBs play a strong utilitarian role in that they facilitate personal goal attainment. In salespeople’s minds, there are no relevant trade-offs between OCBs and task-performance as long as the former can be used to improve the latter. For salespeople, the path from OCBs to performance may vary, depending on whether the performance in question is organizational, individual or customer-focused. Finally, some OCBs apparently contribute to creating customer trust in the salesperson. Research limitations/implications – The findings add some interesting insights to the discussion regarding some controversies in OCBs literature, especially the interplay of contextual performance and task performance. Practical implications – Various types of OCBs can be encouraged through different managerial interventions. As an example, altruism can be fostered by appropriate recruiting criteria (e.g. using “attitude toward teamwork” as a key personnel selection factor), and by training initiatives and leadership style. Altruism can also be stimulated by an adequately designed organizational structure (e.g. team-based) as well as by adopting appropriate integration mechanisms that facilitate interpersonal and interfunctional cooperation. Sales managers can foster some OCBs by promoting knowledge sharing and reciprocal learning among members of the sales team, and by emphasizing the positive consequences of OCBs in all communication with salespeople. Originality/value – Findings from this study challenge some widespread assumptions about OCBs in general. In fact, most of the literature holds that OCBs are an example of prosocial behaviors. Actually, the findings suggest that in the specific case of salespeople, OCBs are ultimately self-directed, for the most part.

The existing literatures mainly focus on the pricing, strategic significance and sustainable development characteristics of the e-commerce platform, and lack deep research on mechanisms in the process of construction like main structure of recourses and driving force. This paper takes Haier as a Chinese example and explores how manufacturing enterprises create and develop the sustainable e-commerce platform. The research findings show that: (1) An e-commerce platform respectively carries the functions of sales channels, service differences and innovation incubation in different stages of the manufacturing enterprises’ sustainable development; (2) For managing e-commerce platform of manufacturing enterprises’ sustainable development, resource orchestration can effectively realize the integration of value creation and resource; (3) Finally, it further reveals that the driving power which resource orchestration continuously promotes for the sustainable e-commerce platforms to construct is from the co-creation value of manufacturers and users. This paper discusses the structure of e-commerce platforms based on the main characteristics of each resource, and systematically explores the mechanism and evolutionary driving force of resource orchestration to promote the construction of e-commerce platforms for the sustainable development. It complements and enriches the innovation ecosystem and resource orchestration theory, providing significant practical guidance to the sustainable development of manufacturing enterprises.

In order to reduce poverty and achieve Goal 1 of the 2030 Agenda for Sustainable Development, countries’ foreign trade flows must be a driving force for productive activity, as proposed by the WTO-led (World Trade Organization) Aid for Trade initiative. This work analyzes the evolution of international trade in goods and services between Africa’s Least Developed Countries and customers and suppliers from other countries between 2005 and 2015, based on the information provided by UNCTAD and the World Bank. The results confirm a greater degree of trade openness and especially an increase in service imports. Overall, the data show that the purchases made in the international market have a greater marginal effect on GDP than sales, leading to the conclusion that changes in trade policy are needed, at both international and national level. Actions should be aimed at ensuring that the growing integration of these economies in the world trade system does not result in continued deficits in the trade balance but, on the contrary, does contribute to GDP growth and poverty reduction.

Retail management recognise the competitive edge that can be provided by actionable information. In moving towards an integrated retail management information system, it is recognised that a general driving force behind investments in information technology (IT) is the need for more detailed information about customers. Marketing (and distribution and service) can apply IT to increase their efficiency, and, more importantly, to promote their effectiveness in the increasingly competitive environment. It is argued that a management information-system should be viewed as ‘emancipatory’, permitting new decisionmaking processes, and that data from recent developments such as charge cards and electronic point of sales systems offer new opportunities. Attention focuses initially on the marketing function requirements for information about the local demand for goods and services and about the competitive position. It is suggested that real progress, driven by this external marketing perspective, will only occur through development of an integrated information-system (and that the necessary integration will require the framework of knowledge-based management-systems, rather than conventional data-based management-systems).

Purpose The purpose of this paper is to achieve intelligent superstore site selection. Yonghui Superstores partnered with Cardinal Operations to incorporate a tremendous amount of site-related information (e.g. points of interest, population density and features, distribution of competitors, transportation, commercial ecosystem, existing own-store network) into its store site optimization. Design/methodology/approach This paper showcases the integration of regression, optimization and machine learning approaches in site selection, which has proven practical and effective. Findings The result was the development of the “Yonghui Intelligent Site Selection System” that includes three modules: business district scoring, intelligent site engine and precision sales forecasting. The application of this system helps to significantly reduce the labor force required to visit and investigate all potential sites, circumvent the pitfalls associated with possibly biased experience or intuition-based decision making and achieve the same population coverage as competitors while needing only half the number of stores as its competitors. Originality/value To our knowledge, this project is among the first to integrate regression, optimization and machine learning approaches in site selection. There is innovation in optimization techniques.

Problem - Decision makers shape the structure of the sales function, but it is unclear how they go about it and why. The rationale for making certain decisions need to be analyzed in order to understand why different decision makers apply different sales strategies. Topic - The Swedish prefabricated wooden house industry consists of many actors with no clear market leader. The sales force seems to mainly consists of external sales agents (manufacturers' representatives, also called reps), though some manufacturers also employ direct sales agents at the manufacturing company. Prefabricated wooden houses corresponded to 86% of all building permits requested during 2015. Purpose - This thesis aims to explore decision-makers' rationale behind the organization of manufacturers' sales forces in the Swedish prefabricated wooden house industry. Method - Semi-structures interviews with decision makers at manufacturing companies in the Swedish prefabricated wooden house industry have been conducted in order to fulfill the purpose of this study. The empirical findings are then analyzed based on theory that has been collected through partly inductive, partly deductive approaches. Main results - Decision makers use different arguments to justify their strategies. Many different rationale applied translates into no clear pattern besides the one that there seems to be no clear pattern. Arguments for a rationale decision are given without analytical proof for an assumption. Some interviewees are in essence for an integrated sales force, though might also work with reps.

La force de vente est un système humain, et de relations humaines complexes qui se distingue par une activité de gestion spécifique fondée sur le contrôle et la supervision directe des vendeurs dans leurs activités quotidiennes. Pour décrypter ces relations entre les acteurs, nous avons mobilisé le concept de socialisation organisationnelle, à la fois parce qu’il propose une lecture nouvelle de la réalité managériale, mais aussi parce qu’il constitue un modèle d’influence à même de réguler les comportements organisationnels des acteurs. Cette thèse a pour objectif d’éclairer le management des vendeurs indépendants en situation d’intégration, et d’expliquer pourquoi le turnover de ces vendeurs est aussi élevé au cours de cette phase cruciale du processus de socialisation. L’exploitation du potentiel théorique du concept de socialisation pose néanmoins la question de la pertinence d’une telle étude, étant donné que les vendeurs indépendants peuvent se soustraire à toute forme de socialisation, parce qu’ils n’appartiennent pas juridiquement à l’entreprise. Pour cela, nous menons une première étude qui permet de mettre en évidence le caractère aléatoire et naturel de la socialisation dans ces organisations, à travers les interactions. Nous proposons donc de conceptualiser la socialisation du vendeur indépendant, et la considérons comme un processus de construction de la relation managériale. Le modèle d’analyse que nous développons articule le cadre d’analyse interactionniste de la socialisation à travers le processus de construction de sens, la théorie de la régulation sociale, et la théorie du contrat psychologique. Il est testé sur le terrain, à travers une étude qualitative, mobilisant la méthode des cartes cognitives. En s’appuyant sur les représentations mentales des principaux acteurs de la socialisation du vendeur indépendant, nous souhaitons produire des connaissances qui tiennent compte des réalités et des contextes dans lesquels ces forces de vente exercent. Les résultats de notre recherche mettent en évidence la complexité des schèmes étudiés. Ceux-ci révèlent la difficulté à faire converger les intérêts des acteurs dans leur collaboration. Ils révèlent aussi l’existence d’une socialisation partielle due, en partie, au fait que les entreprises évoluent difficilement dans leurs pratiques de gestion ; les connaissances acquises par les nouveaux vendeurs portent essentiellement sur les aspects commerciaux du travail ; les relations entre membres de la force de vente ne sont pas prises en compte dans le processus de socialisation. Finalement, les vendeurs partent parce que les composantes de leurs relations avec l’entreprise ne correspondent pas à leur système de valeurs. Dans ce cas, nous proposons de gérer et de formaliser la socialisation du vendeur indépendant, en prônant un management et un leadership partagé qui permettrait de prendre en compte les intérêts des différents acteurs
Sales force is a human and complex human relations system that is characterized by a specific management activity based on the control and the direct supervision of the sales agents in their daily activities. In order to decrypt these relations between the actors, we have mobilized the concept of organizational socialization, both because it proposes a further reading of the managerial reality, but also because it constitutes a model of influence able to regulate the organizational behaviors of the actors. This thesis aims at enlightening the management of the independent sales agents into labor integration process, and explaining why the turnover of the sales agents is so high during that critical stage of socialization process. The exploiting of the theoretical potential of the concept of socialization nevertheless arises the issue of the relevance of such a study, given the independent sales agents can avoid any kind of socialization, because legally they don’t belong to the company. For that we make a first survey that enables us to point out the random and natural character of the socialization in these organizations through interactions. We propose thus to conceptualize the socialization of the independent salesman, and we consider it as a construction process of the management relation. The analysis model that we develop uses the interactionnist analysis framework of the socialization through the process of building a sense, the theory of the social regulation, and the theory of psychological contract. It has been field-tested through a qualitative research study, mobilizing the method of cognitive cards. On the basis of the mental representations of the main actors of the independent sales agents ‘socialization, we wish to produce skills that take into account realities and the environments in which these sales teams work. The results of our research show clearly the complexity of the schemes studied. These reveal the difficulty of converging the actors ‘interests in their collaboration. They reveal also the existence of a partial socialization due, partly, to the fact that the companies poorly evolve in their management practices. The skills acquired by the new sales agents are based essentially on the commercial aspects of work. The relations between the sales workforces are not taken into account in the socialization process. Finally, the sales agents leave work because the components of their relations with the company do not match with their value system. In that case, we propose to manage and formalize the socialization of the independent sales agent, recommending shared management and leadership that would permit to take into account the interests of the different actors

碩士
國立臺北商業大學
企業管理系碩士班
106
Facing the globalization and the fierce competition between industries, enterprises have penetrated into the supply chain of business-to-business (B2B), integrating business partners, suppliers and manufacturers into one. The entire value chain has shifted from passive response to active forecasting of customer demand. However, the sales force is the first-line interface with customers. It not only transmits market information and product demand to internal, but makes customers feel the services and values provided. Therefore, the salesforce establishes new strategic partnerships with customers by integrating products, services, support, knowledge, and self-service, and its ultimate goal is to increase customer loyalty and ensure that the company will continue to operate. The results of the study confirm that：(1) The e-sales process integration has a significant positive impact on the willingness to continue purchasing. (2) The knowledge and information sharing integration has a significant positive impact on product recommendation and joint development. (3) The jointly thinking about new product ideas has a significant positive impact on the willingness to purchase, the product recommendation, and joint development. (4) The new product marketing strategy integration has a significant positive impact on product recommendation and joint development. Finally, solid suggestions were offered based on the research results for the practical application and follow-up research.

Marketing and sales channels are a significant lifeline for the sales force of a business. Sales professionals work on the concept of creating and widening channels that are then fed by the supply chain and distribution network of the businesses. Sales teams are constantly pushed to meet customer expectations while generating revenue for the company. As companies grow, these pressures increase. Sales teams are now looking at Mobile Sales Force Automation technologies to handle the ever increasing customer demands. Companies want to keep costs low, increase productivity and efficiency through mobile devices for the much needed edge on the field. This chapter is based on literature review of channel optimization as well as mobile software platforms and challenges faced by the sales force. This chapter discusses the need for integrating business software on mobile platforms that will optimize and enhance the performance of sales processes.

Marketing and sales channels are a significant lifeline for the sales force of a business. Sales professionals work on the concept of creating and widening channels that are then fed by the supply chain and distribution network of the businesses. Sales teams are constantly pushed to meet customer expectations while generating revenue for the company. As companies grow, these pressures increase. Sales teams are now looking at Mobile Sales Force Automation technologies to handle the ever increasing customer demands. Companies want to keep costs low, increase productivity and efficiency through mobile devices for the much needed edge on the field. This chapter is based on literature review of channel optimization as well as mobile software platforms and challenges faced by the sales force. This chapter discusses the need for integrating business software on mobile platforms that will optimize and enhance the performance of sales processes.

Multinational pharmaceutical companies are facing the challenge of finding the right balance between local responsiveness and global integration. A cross-case study analysis of the sales force training process at the Swiss company Roche Pharmaceuticals identified four areas of collaboration, each of which comprises a certain number of collaborative tasks. The equivocality and complexity of these tasks should, however, be taken into account when considering information and communication technology (ICT) support. The authors developed a task-media fit matrix and used it to choose and justify the usage of certain information and communication technologies. The end result of this article is a reference model for the three layers of strategy, process, and ICT for e-collaboration within the dispersed sales force training process in multinational pharmaceutical companies. The authors also maintain that the task-media fit matrix can help both practitioners and researchers to either justify investments in e-collaboration tools or to evaluate ICT architectures in the field of e-collaboration.

This chapter presents an approach to the role of software engineering in developing solutions for new mobile technologies, like tablets. It discusses the importance of the new standards brought by emerging technologies such as engineering and how software must adapt to this new reality in order to identify the needs of data, information, integration, shares, and other issues that will contribute to the life cycle of these solutions. The chapter also discusses the contribution of users in the development process and improve these solutions. The research method is the case study conducted in industrial companies that use a digital catalog solution and sales force automation for tablets. This chapter presents a new approach based on commercial tablets which is supported by a platform of software and services called commercially Nimiam (www.nimiam.com.br).

This chapter presents an approach to the role of software engineering in developing solutions for new mobile technologies, like tablets. It discusses the importance of the new standards brought by emerging technologies such as engineering and how software must adapt to this new reality in order to identify the needs of data, information, integration, shares, and other issues that will contribute to the life cycle of these solutions. The chapter also discusses the contribution of users in the development process and improve these solutions. The research method is the case study conducted in industrial companies that use a digital catalog solution and sales force automation for tablets. This chapter presents a new approach based on commercial tablets which is supported by a platform of software and services called commercially Nimiam (www.nimiam.com.br).

Many researchers have treated the sales force automation (SFA) and acknowledged its benefits for the company. However, very few of them have considered the SFA as an effective tool of customer relationship management. Hence, this present chapter aims to advance a new theoretical and managerial vision where the SFA is revisited through the consideration of the customer relationship management but also, by scrutinizing its key role through the knowledge management to optimize the commercial function as a crucial aspect of the supply chain management. Particularly, the impact on the sellers' performance will be discussed. In this case, the commercial function is concerned as a partial supply chain.

The rapid growth of Internet technologies induced a structural change in both social and economic spheres. Digital channels have become an integral part of daily life, and their influence on the transfer of information has become ubiquitous. An entirely new business dimension that may be referred to as the Net economy has emerged. Internet-based e-ventures that are operating at this electronic trade level are based on innovative and promising online business models (Kollmann, 2006). But also traditional enterprises that are operating at the physical trade level (real economy) increasingly utilize digital channels to improve their business processes and to reach new customer segments. With the Internet, the cooperation between enterprises reached a new level of quality. The wide, open, and cost-effective infrastructure allows a simple, fast exchange of data and thus a synchronization of business processes over large distances. Particularly for e-ventures introducing their new business ideas, online cooperation is a promising strategy as it enables the partners to create more attractive product offers and represents a basis for more efficiently and effectively communicating and distributing their product offers (Kollmann, 2004; Volkmann & Tokarski, 2006). Online cooperation, however, does not incorporate off-line channels such as print media, stores, or sales forces. For the combined management of online and offline channels, cooperation can be expected to hold an outstanding potential. Partnering with companies from the Net economy may help traditional enterprises to reach new market segments without extending themselves beyond their core competencies—and vice versa. In this context, cross-channel cooperation can be defined as the collaborative integration of online and offline business models aiming at attaining positive synergetic effects for the involved partners by a complement of competencies. (Kollmann & Häsel, 2006, p. 3) Cross-channel cooperation can be regarded a new management task that is worthwhile to be examined in more detail. Although researchers have broadly covered the area of online cooperation, a comprehensive study on cross-channel cooperation has not been undertaken up to now. Particularly the question arises, which cooperation forms represent feasible strategies for both e-ventures and traditional enterprises. Besides its contribution to literature, this article is intended to assist practitioners in evaluating the benefits of crosschannel cooperation for their own businesses.

End seals in squeeze film dampers (SFDs) aid to increase their damping capability while maintaining low lubricant flow rates and reducing the severity of air ingestion. This paper presents measurements of the forced response in a SFD integrating a contacting end seal and with closed flow ports, i.e. no lubricant thru flow. The system motion is non-linear due to dry friction interaction at the mechanical seal mating surfaces. Single parameter characterization of the test system would yield an equivalent viscous damping coefficient that is both frequency and motion amplitude dependent. Presently, an identification method suited for nonlinear systems allows determining simultaneously the squeeze film damping and inertia force coefficients and the seal dry friction force. The identification procedure shows similar (within 10%) force coefficients than those obtained with a more involved two-step procedure that first requires measurements without any lubricant in the test system. The identified SFD damping and inertia force coefficients agree well with model predictions that account for end flow effects at recirculation grooves. The overall test results demonstrate that the non-rotating end seal effectively eliminates side leakage and avoids air ingestion; thus maintaining a consistent damping performance throughout the test frequency range. The nonlinear identification procedure saves time and resources while producing reliable physical parameter estimations.

<p>In this paper, an inerter is incorporated into the conventional TMD system, and the performance of the novel inerter-based system, namely tuned mass damper inerter (TMDI), for the VIV mitigation of long-span bridges has been studied. A suspension bridge is taken as a numerical example to verify the performance of TMDI, and the optimal parameters of TMDI are determined by the genetic algorithm. A parametric analysis of the control effect of TMDI is conducted to investigate the influence of the mass ratio and inertance ratio of TMDI on its static deformation, control effect, stroke and control force. The results show that with the same mass ratio, TMDI is slightly less effective than TMD, but it can still significantly reduce the vibration amplitude of the bridge deck. The static deformation and stroke of TMDI are much smaller than that of TMD, which saves installation space and makes it more suitable for the vertical vibration control of long-span bridges.</p>

Attention to safety and health are of ever-increasing priority to industrial organizations. Good Safety is demanded by stockholders, employees, and the community while increasing injury costs provide additional motivation for safety and health excellence. Safety has always been a strong corporate value of DuPont and a vital part of its culture. As a result, DuPont has become a benchmark in safety and health performance. Since 1990, DuPont has re-engineered itself to meet global competition and address future vision. In the new re-engineered organizational structures, DuPont has also had to re-engineer its safety management systems. A special Discovery Team was chartered by DuPont senior management to determine the “best practices’ for safety and health being used in DuPont best-performing sites. A summary of the findings is presented, and five of the practices are discussed. Excellence in safety and health management is more important today than ever. Public awareness, federal and state regulations, and enlightened management have resulted in a widespread conviction that all employees have the right to work in an environment that will not adversely affect their safety and health. In DuPont, we believe that excellence in safety and health is necessary to achieve global competitiveness, maintain employee loyalty, and be an accepted member of the communities in which we make, handle, use, and transport products. Safety can also be the “catalyst” to achieving excellence in other important business parameters. The organizational and communication skills developed by management, individuals, and teams in safety can be directly applied to other company initiatives. As we look into the 21st Century, we must also recognize that new organizational structures (flatter with empowered teams) will require new safety management techniques and systems in order to maintain continuous improvement in safety performance. Injury costs, which have risen dramatically in the past twenty years, provide another incentive for safety and health excellence. Shown in the Figure 1, injury costs have increased even after correcting for inflation. Many companies have found these costs to be an “invisible drain” on earnings and profitability. In some organizations, significant initiatives have been launched to better manage the workers’ compensation systems. We have found that the ultimate solution is to prevent injuries and incidents before they occur. A globally-respected company, DuPont is regarded as a well-managed, extremely ethical firm that is the benchmark in industrial safety performance. Like many other companies, DuPont has re-engineered itself and downsized its operations since 1985. Through these changes, we have maintained dedication to our principles and developed new techniques to manage in these organizational environments. As a diversified company, our operations involve chemical process facilities, production line operations, field activities, and sales and distribution of materials. Our customer base is almost entirely industrial and yet we still maintain a high level of consumer awareness and positive perception. The DuPont concern for safety dates back to the early 1800s and the first days of the company. In 1802 E.I. DuPont, a Frenchman, began manufacturing quality grade explosives to fill America’s growing need to build roads, clear fields, increase mining output, and protect its recently won independence. Because explosives production is such a hazardous industry, DuPont recognized and accepted the need for an effective safety effort. The building walls of the first powder mill near Wilmington, Delaware, were built three stones thick on three sides. The back remained open to the Brandywine River to direct any explosive forces away from other buildings and employees. To set the safety example, DuPont also built his home and the homes of his managers next to the powder yard. An effective safety program was a necessity. It represented the first defense against instant corporate liquidation. Safety needs more than a well-designed plant, however. In 1811, work rules were posted in the mill to guide employee work habits. Though not nearly as sophisticated as the safety standards of today, they did introduce an important basic concept — that safety must be a line management responsibility. Later, DuPont introduced an employee health program and hired a company doctor. An early step taken in 1912 was the keeping of safety statistics, approximately 60 years before the federal requirement to do so. We had a visible measure of our safety performance and were determined that we were going to improve it. When the nation entered World War I, the DuPont Company supplied 40 percent of the explosives used by the Allied Forces, more than 1.5 billion pounds. To accomplish this task, over 30,000 new employees were hired and trained to build and operate many plants. Among these facilities was the largest smokeless powder plant the world had ever seen. The new plant was producing granulated powder in a record 116 days after ground breaking. The trends on the safety performance chart reflect the problems that a large new work force can pose until the employees fully accept the company’s safety philosophy. The first arrow reflects the World War I scale-up, and the second arrow represents rapid diversification into new businesses during the 1920s. These instances of significant deterioration in safety performance reinforced DuPont’s commitment to reduce the unsafe acts that were causing 96 percent of our injuries. Only 4 percent of injuries result from unsafe conditions or equipment — the remainder result from the unsafe acts of people. This is an important concept if we are to focus our attention on reducing injuries and incidents within the work environment. World War II brought on a similar set of demands. The story was similar to World War I but the numbers were even more astonishing: one billion dollars in capital expenditures, 54 new plants, 75,000 additional employees, and 4.5 billion pounds of explosives produced — 20 percent of the volume used by the Allied Forces. Yet, the performance during the war years showed no significant deviation from the pre-war years. In 1941, the DuPont Company was 10 times safer than all industry and 9 times safer than the Chemical Industry. Management and the line organization were finally working as they should to control the real causes of injuries. Today, DuPont is about 50 times safer than US industrial safety performance averages. Comparing performance to other industries, it is interesting to note that seemingly “hazard-free” industries seem to have extraordinarily high injury rates. This is because, as DuPont has found out, performance is a function of injury prevention and safety management systems, not hazard exposure. Our success in safety results from a sound safety management philosophy. Each of the 125 DuPont facilities is responsible for its own safety program, progress, and performance. However, management at each of these facilities approaches safety from the same fundamental and sound philosophy. This philosophy can be expressed in eleven straightforward principles. The first principle is that all injuries can be prevented. That statement may seem a bit optimistic. In fact, we believe that this is a realistic goal and not just a theoretical objective. Our safety performance proves that the objective is achievable. We have plants with over 2,000 employees that have operated for over 10 years without a lost time injury. As injuries and incidents are investigated, we can always identify actions that could have prevented that incident. If we manage safety in a proactive — rather than reactive — manner, we will eliminate injuries by reducing the acts and conditions that cause them. The second principle is that management, which includes all levels through first-line supervisors, is responsible and accountable for preventing injuries. Only when senior management exerts sustained and consistent leadership in establishing safety goals, demanding accountability for safety performance and providing the necessary resources, can a safety program be effective in an industrial environment. The third principle states that, while recognizing management responsibility, it takes the combined energy of the entire organization to reach sustained, continuous improvement in safety and health performance. Creating an environment in which employees feel ownership for the safety effort and make significant contributions is an essential task for management, and one that needs deliberate and ongoing attention. The fourth principle is a corollary to the first principle that all injuries are preventable. It holds that all operating exposures that may result in injuries or illnesses can be controlled. No matter what the exposure, an effective safeguard can be provided. It is preferable, of course, to eliminate sources of danger, but when this is not reasonable or practical, supervision must specify measures such as special training, safety devices, and protective clothing. Our fifth safety principle states that safety is a condition of employment. Conscientious assumption of safety responsibility is required from all employees from their first day on the job. Each employee must be convinced that he or she has a responsibility for working safely. The sixth safety principle: Employees must be trained to work safely. We have found that an awareness for safety does not come naturally and that people have to be trained to work safely. With effective training programs to teach, motivate, and sustain safety knowledge, all injuries and illnesses can be eliminated. Our seventh principle holds that management must audit performance on the workplace to assess safety program success. Comprehensive inspections of both facilities and programs not only confirm their effectiveness in achieving the desired performance, but also detect specific problems and help to identify weaknesses in the safety effort. The Company’s eighth principle states that all deficiencies must be corrected promptly. Without prompt action, risk of injuries will increase and, even more important, the credibility of management’s safety efforts will suffer. Our ninth principle is a statement that off-the-job safety is an important part of the overall safety effort. We do not expect nor want employees to “turn safety on” as they come to work and “turn it off” when they go home. The company safety culture truly becomes of the individual employee’s way of thinking. The tenth principle recognizes that it’s good business to prevent injuries. Injuries cost money. However, hidden or indirect costs usually exceed the direct cost. Our last principle is the most important. Safety must be integrated as core business and personal value. There are two reasons for this. First, we’ve learned from almost 200 years of experience that 96 percent of safety incidents are directly caused by the action of people, not by faulty equipment or inadequate safety standards. But conversely, it is our people who provide the solutions to our safety problems. They are the one essential ingredient in the recipe for a safe workplace. Intelligent, trained, and motivated employees are any company’s greatest resource. Our success in safety depends upon the men and women in our plants following procedures, participating actively in training, and identifying and alerting each other and management to potential hazards. By demonstrating a real concern for each employee, management helps establish a mutual respect, and the foundation is laid for a solid safety program. This, of course, is also the foundation for good employee relations. An important lesson learned in DuPont is that the majority of injuries are caused by unsafe acts and at-risk behaviors rather than unsafe equipment or conditions. In fact, in several DuPont studies it was estimated that 96 percent of injuries are caused by unsafe acts. This was particularly revealing when considering safety audits — if audits were only focused on conditions, at best we could only prevent four percent of our injuries. By establishing management systems for safety auditing that focus on people, including audit training, techniques, and plans, all incidents are preventable. Of course, employee contribution and involvement in auditing leads to sustainability through stakeholdership in the system. Management safety audits help to make manage the “behavioral balance.” Every job and task performed at a site can do be done at-risk or safely. The essence of a good safety system ensures that safe behavior is the accepted norm amongst employees, and that it is the expected and respected way of doing things. Shifting employees norms contributes mightily to changing culture. The management safety audit provides a way to quantify these norms. DuPont safety performance has continued to improve since we began keeping records in 1911 until about 1990. In the 1990–1994 time frame, performance deteriorated as shown in the chart that follows: This increase in injuries caused great concern to senior DuPont management as well as employees. It occurred while the corporation was undergoing changes in organization. In order to sustain our technological, competitive, and business leadership positions, DuPont began re-engineering itself beginning in about 1990. New streamlined organizational structures and collaborative work processes eliminated many positions and levels of management and supervision. The total employment of the company was reduced about 25 percent during these four years. In our traditional hierarchical organization structures, every level of supervision and management knew exactly what they were expected to do with safety, and all had important roles. As many of these levels were eliminated, new systems needed to be identified for these new organizations. In early 1995, Edgar S. Woolard, DuPont Chairman, chartered a Corporate Discovery Team to look for processes that will put DuPont on a consistent path toward a goal of zero injuries and occupational illnesses. The cross-functional team used a mode of “discovery through learning” from as many DuPont employees and sites around the world. The Discovery Team fostered the rapid sharing and leveraging of “best practices” and innovative approaches being pursued at DuPont’s plants, field sites, laboratories, and office locations. In short, the team examined the company’s current state, described the future state, identified barriers between the two, and recommended key ways to overcome these barriers. After reporting back to executive management in April, 1995, the Discovery Team was realigned to help organizations implement their recommendations. The Discovery Team reconfirmed key values in DuPont — in short, that all injuries, incidents, and occupational illnesses are preventable and that safety is a source of competitive advantage. As such, the steps taken to improve safety performance also improve overall competitiveness. Senior management made this belief clear: “We will strengthen our business by making safety excellence an integral part of all business activities.” One of the key findings of the Discovery Team was the identification of the best practices used within the company, which are listed below: ▪ Felt Leadership – Management Commitment ▪ Business Integration ▪ Responsibility and Accountability ▪ Individual/Team Involvement and Influence ▪ Contractor Safety ▪ Metrics and Measurements ▪ Communications ▪ Rewards and Recognition ▪ Caring Interdependent Culture; Team-Based Work Process and Systems ▪ Performance Standards and Operating Discipline ▪ Training/Capability ▪ Technology ▪ Safety and Health Resources ▪ Management and Team Audits ▪ Deviation Investigation ▪ Risk Management and Emergency Response ▪ Process Safety ▪ Off-the-Job Safety and Health Education Attention to each of these best practices is essential to achieve sustained improvements in safety and health. The Discovery Implementation in conjunction with DuPont Safety and Environmental Management Services has developed a Safety Self-Assessment around these systems. In this presentation, we will discuss a few of these practices and learn what they mean. Paper published with permission.