The O.C. Tanner Story: 35 Years Proving People Have More to Give
- Eric Olsen
- Nov 5
- 6 min read
FPW Symposium 2025 Blog Series, Part 5
"We were weeks from shutting down U.S. manufacturing. We'd tried everything—except truly listening to our people."
Gary Peterson stood before 110 symposium participants, sharing what many executives avoid: a story of near-failure, discovery, and transformation. His 38 years at O.C. Tanner, including 35 years of continuous improvement practice, offered something rare—longitudinal proof that the principles we'd been discussing actually work.
This wasn't a presentation about having all the answers. It was a teaching moment about what happens when you discover employees have more to give—if you create the right environment.
The Crisis That Changed Everything
In 1990, O.C. Tanner faced existential reality. The employee recognition company that had served organizations for decades was losing significant money in manufacturing. Leadership saw limited options: move operations offshore entirely.
"We had a third option," Peterson explained, "but it required admitting something difficult—we'd been managing people as if they could only follow instructions, not solve problems."
The turning point came through a simple but radical experiment. Instead of telling workers how to improve their stations, leadership asked: "What bugs you about your job? What would you fix if you could?"
The response overwhelmed them. Employees who'd been silent for years suddenly had notebooks full of ideas. A 20-year veteran who'd "just done his job" designed a fixture that eliminated 50% of assembly time. A quiet team member solved a quality problem that had stumped engineers for months.
"We realized our people weren't the problem," Peterson reflected. "Our system was. We'd optimized out their ability to think."
Building Systems That Honor Human Capability
What followed wasn't a program or initiative—it was a fundamental reimagining of work. O.C. Tanner didn't choose between improvement methodologies; they integrated what worked:
Visual Management Evolved: Not boards imposed by management, but displays teams created and owned. Walking the floor during the symposium tour, participants saw boards maintained with pride—because they represented team decisions, not compliance requirements.
"Two Second Lean" Philosophy: Paul Akers' concept of tiny daily improvements became cultural DNA. Every employee makes small improvements daily. No committees, no approval needed under $100, just constant evolution.
48-Hour Response Commitment: Every improvement suggestion gets acknowledged within two days. Not necessarily implemented, but heard, considered, and responded to with reasoning. "Respect for people isn't abstract," Peterson noted. "It's answering their ideas quickly."
Standard Work as Living Documentation: Instead of rigid procedures, O.C. Tanner treats standard work as "the current best way we know." Anyone can challenge it with a better method. Standards evolve weekly based on frontline insights.
The Employee-Led Teaching Revolution
The symposium facility tour revealed one of O.C. Tanner's most significant innovations: employee-led teaching stations. Not managers or consultants explaining improvements, but the people who actually did the work.
At Station 3, a 20-year veteran showed her fixture design with obvious pride. "I never thought my ideas mattered before," she shared. "Now engineering comes to me for input." Her simple innovation saved 400 hours annually—and restored her dignity as a thinking contributor.
Station 5 demonstrated mistake-proofing devices created by operators. "We know where errors happen because we're here every day," the presenter explained. "Engineering applies this same thinking—they work with us to notice what we already see and help us develop solutions."
Station 7's visual management boards told stories without words. Color-coded magnets showed real-time status. Problems surfaced immediately. Solutions emerged from those closest to the work. One participant observed: "This isn't lean tools—it's human systems making work visible."
Integration Without Declaration
O.C. Tanner never declared victory for any single methodology. Over 35 years, they've integrated:
Shingo Model for cultural transformation
Toyota Kata for coaching behaviors
Arbinger Institute principles for leadership mindset
Two Second Lean for daily improvement
Recently partnering with Toyota's TSSC (Toyota Supplier Support Center) for deeper understanding of Toyota Production System principles and practices
"We don't care what it's called," Peterson emphasized. "We care if it helps our people succeed."
This pragmatic integration addressed a key symposium theme: moving beyond methodology competition to collaborative improvement. As Bruce Hamilton noted during the fishbowl discussion, "O.C. Tanner proves you don't have to choose—you have to think."
Sustaining Change Through Human Systems
Many organizations achieve temporary improvement. O.C. Tanner has sustained transformation for 35 years. Their secret? Systems that prevent backsliding by honoring human nature:
Self-Managed Teams: Not autonomous in name only, but teams that truly control their work. They set schedules, solve problems, and contribute meaningfully to their areas. Management's role shifted from directing to supporting.
Appreciation and Feedback Embedded Daily: As a recognition company, O.C. Tanner practices what they sell. Every improvement idea gets acknowledged—even those not immediately implemented receive explanation and feedback on next steps. Every contribution is celebrated through genuine, specific, timely recognition that respects individual preferences.
Community Connection: Employees see their work's impact beyond factory walls. Recognition products they create strengthen workplaces globally. "We're not just manufacturing awards," one employee noted. "We're manufacturing appreciation."
Coaching Over Correction: Leaders spend 60% of time in coaching conversations. Not telling but asking: "What do you think?" "What would you try?" "How can I help?" This shift from director to developer changed everything.
The Numbers Tell the Story
While Peterson focused on human elements, the business results prove sustainability:
35 years of continuous improvement without major backsliding
Multiple Shingo Prize recognitions
Industry-leading quality and delivery metrics
Employee retention rates exceeding industry averages by 300%
But Peterson emphasized different metrics: "Count the number of improvements per person, not dollars saved. Count problems solved by teams, not managers. Count people developing, not just parts produced."
Lessons for the Journey
O.C. Tanner's transformation offers practical lessons for any organization:
Start With Belief: "The fundamental assumption that employees have more to give changes everything," Peterson noted. "Most organizations operate assuming they're getting maximum contribution. We discovered we were getting maybe 20% of human capability."
Time Investment Pays Dividends: Embedding improvement into standard work rather than treating it as extra activity. When improvement is part of the job, not added to it, organizations can begin addressing time poverty systematically.
Vulnerable Leadership Accelerates Trust: Peterson's admission of near-failure resonated more than success stories. Leaders who acknowledge mistakes create cultures where others can too.
Integration Over Competition: Using multiple methodologies based on need, not ideology. The best approach is the one that solves your specific problem.
The Ripple Effect
The impact extends beyond O.C. Tanner's walls. Suppliers adopted their improvement methods. Customers learned from their approaches. The community benefited from stable employment and engaged citizens.
"Improved workplaces create improved communities," Peterson observed. "When people feel valued at work, they bring that energy home."
During the symposium tour, a participant asked: "How do you maintain this energy after 35 years?"
An employee answered: "It's not energy we maintain—it's respect. When you genuinely believe people have more to give, and you create systems that honor that belief, the energy sustains itself."
Your Organization's Potential
What we're discovering at O.C. Tanner isn't about copying their methods. It's about recognizing potential in your own organization. As Peterson concluded: "Every organization has people with more to give. The question is: will you create the environment where they can?"
The symposium participants left with more than inspiration. They left with proof—35 years of proof—that transforming workplace culture through respect for people isn't just philosophy. It's practical, sustainable, and profitable.
Because when you truly believe people have more to give, they do.
Knowledge Map: Connecting to Your Context
Process Keywords: Employee empowerment, visual management, standard work evolution, mistake-proofing, daily improvement, coaching systems, methodology integration, problem-solving culture, cross-sector learning, sustainable transformation, continuous feedback, leadership development
Context Keywords: Manufacturing survival, workforce underutilization, organizational crisis, cultural transformation, time poverty, improvement sustainment, methodology competition, employee engagement, retention challenges, leadership vulnerability, system redesign, respect for people
Application Triggers:
Facing existential cost pressures → Crisis as catalyst for transformation
Discovering untapped employee capability → Employee-led improvement systems
Struggling to sustain improvements → Human-centered sustainment systems
Competing improvement methodologies → Integration over competition approach
Time poverty limiting improvement → Embedding improvement into standard work
Related Continuous Improvement Themes: This O.C. Tanner story connects to broader FPW themes including breaking down methodology silos, addressing the succession cliff through cultural transformation, making improvement accessible across generations, and demonstrating that time for improvement comes from system redesign rather than time management.
Next: How structured dialogue and AI partnerships are creating time through organizational redesign rather than time management.
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People to Connect With: @Gary Peterson @Bruce Hamilton @Rachel Reuter @Josh Howell @Eric O. Olsen @Dave Ostreicher @Kelly Reo @Ken Snyder @Jamie Bonini @Vickie Pisowicz @Carlos Scholz
Hashtags: #FutureOfPeopleAtWork #ContinuousImprovement #RespectForPeople #WorkplaceTransformation #EmployeeEngagement #SustainableExcellence
Attribution: This post was co-created by the 110 participants of the FPW Symposium 2025, with editorial contributions from Rachel Reuter, Dave Ostreicher, and Eric Olsen, and synthesized with Claude.AI assistance. Part five of nine documenting our journey toward workplace transformation. The Future of People at Work initiative is a collaboration of Catalysis, Central Coast Lean, GBMP Consulting Group, Imagining Excellence, Lean Enterprise Institute, Shingo Institute, The Ohio State University Center for Operational Excellence, and Toyota Production System Support Center (TSSC).
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