When it opened in the 1950s, International Paper's
Mobile, Ala., mill brought the community together.
By the late 1990s, it was tearing the community apart.

Taking on a troubled history;
mill earns profit and respect

CLIENT: International Paper
CHALLENGE: An under-performing mill with union-management conflict on the brink of being shut down.
RAPIDCHANGE ASSETS: Leadership Breakthrough, Respectful Contrary, Fundamentals of RapidChange, Layoff Workshops, Sustainable Profitability, Celebration event coordination.

Story by Barbara Arney and Thomas Jacobs

In 1998, International Paper’s Mobile, Ala., mill was losing about $30 million a year.  Corporate leaders told the mill management that the site would have to close.

Difficult relations since the 1980s between the company and the union had left Mobile’s leadership team very splintered. There were stories of parking railroad cars between the road and offices because gunshots were being fired at manager’s windows.  During discussions on how to save the plant, a threat was scratched on a bathroom mirror, “Don’t forget the Union Wars”.

RapidChange was brought down for a Breakthrough Leadership event with the acting leadership team meeting together with the union on Oct. 21, 1998. Old mistrust issues were aired and ground rules were established for mutual respect and a common language for communication. Over the course of the two days, old emotions were processed. Throughout the process, a shared vision for survival emerged. The group agreed to stop the blame game and the power plays. They came out of the Breakthrough with cooperative agreements and a commitment to go to corporate headquarters with a plan to turn the mill around. IP eventually agreed to the two-year turnaround plan.

Management and union together made key business decisions for organization redesign, cost reduction, production, delivery, and customer service improvements. They decided to shut down the sheeting operations and only become a roll facility.  

Then they turned their attention to the human side of the equation.  RapidChange instructors facilitated sessions for those who were losing their jobs in sheeting to help them process their emotions.  These “de-tox” sessions were held using tools for coping with stress, naming emotions, and identifying best practices of how they could move forward in finding work.  The real power of these sessions, however, was the interaction among the people. With tears, anger, and fear, they recalled memories, validated each other and offered support and help to one another.  

It was clear the turnaround required full engagement of all 1200 employees who would remain. The Leadership team decided to offer a two-day RapidChange course to all employees so that everyone was on the same page with proven communication methods and tools for engagement. The Leadership group showed up for different parts of these 30 sessions, so that they could explain their strategy, keep people informed of the progress, and be available for direct communication from employees. Throughout these sessions, there was some healing of the long-term rifts and the basis of a common language for cooperation.

As a result, there was greater inclusiveness of the union leaders at meetings and meetings became much more targeted with strategic communication and continuous improvement.

The Mobile Mill did indeed exceed the turnaround they had promised. In less than two years, they went from losing $30 million to making $50 million. They were the poster child of what was possible.

For the next few years, the mill produced solid results. But a dramatic retracting of the market in the early 2000s led corporate to close the Mobile Mill and others.  

While a mill closing is never good news for the employees, they recognized the decision was not about them or forces within their control. They were committed to having an honorable ending and to make the best of the very difficult situation.   They formed a cross-departmental team, committed to maintaining respect and integrity and a budget to show dignity for the employees. The group was committed to the idea that the way they shut it down would send a lasting message and they wanted that to be a positive one.
 
The group developed a structured process for the slowing down of production and allowing people to take away some tools they cherished. Reports showed no sabotage or lack of cooperation that might have been predicted several years earlier.  

“No one should walk out of here alone” became the rallying theme for the final day.

    • They converted the final day into one of celebration and pride at their accomplishments. 

    • They created a time capsule and each had a brass plate with their names stamped into it.

    • They made gifts, featuring aerial photos of the plant on posters made from the last roll of paper.

    • Pictures of every team were included in an historic book of the mill that was published.

    • All employees had input into the last day of celebration with stories, inclusion of multiple generations of retirees, potlucks and brief blessings and benediction.  

The gate was opened at noon, and ALL walked out together.