Augur Inc

PI Helps with Massive Organizational Change

Even a 70-year-old, 3,500-employee company can embrace change. Suburban Propane Partners , L.P. the third largest retail marketer of propane in the United States, recently found that it couldn't rest on its laurels. Between 1996 and 1997, the Whippany, NJ-based firm was experiencing great financial difficulties. Company management took over ownership from a former parent firm and embarked on an extensive restructuring program to improve operating performance and to position Suburban for long-term growth and profitability.

According to Michael Keating, Vice President of Human Resources, deployment of the Predictive Index^® was critical to its success. Mike joined the firm in August of 1996 to help the CEO spearhead a massive organizational change from apropane delivery, to a customer service focus. Mike, whose background is in organizational psychology, began to utilize PI ^® in the spring of 1997 to help employees successfully make this transition. The company had previously employed another assessment tool, which it found to be cumbersome.

Developing a New Executive Team

When the firm put together a new executive team, a 2-day Predictive Index workshop helped to identify and solidify the final team. The 11-member team found that while they each have different combinations of behavioral traits, the one trait that was common to all was a low C- a strong sense of urgency. They all share the need to act decisively and quickly. Overall the group includes several individuals with High A (independent thinkers, leaders) and high B (sociable, people oriented) traits. "There was some conflict with so many high A's all wanting to lead," Mike noted, "because there could only be one true leader, the CEO. But learning about each other's traits and understanding these factors, was crucial to increasing productivity and reducing conflict. The fact that we are all high B's (cooperative, people-oriented) was certainly helpful, toward this end!"

"When the CEO was introduced to PI he couldn't believe how accurately it described him. It has been very helpful in promoting people under our succession plan," Mike added.

Success Among the Rank and File

"Given the new company focus and the change in its culture, employees were being asked to do things they were never asked to do before," Mike explained. "Understanding their motivations and behaviors helped guide us tremendously in assisting them to most comfortably make this change."

Every department director at corporate headquarters uses PI in training sessions. It is also employed at all local service centers to ensure that truck drivers and other service people are very detailed in billing and safety procedures. According to Mike, the high D trait (detail-oriented), for example, is a must for these personnel. All new employees are given the assessment, which is matched against a job Pro Forma for each position. "It enables all of our managers and directors to ask the proper questions in order to get the right person into each job," Mike added.

Over time the company redefined itself, its mission and its strategic objectives, which now focuses on customer relationship management. The firm developed customer-oriented employees, customer-friendly processes and along with a customer-focused business strategy.

The company established clear value-driven directives to provide customers with benefits they don't expect, such as calling them after every service call or installation to see how well the work was performed, along with other value-added features that go well beyond customer expectations. Concurrently, incentive programs were developed for all of the service centers, encouraging higher levels of customer satisfaction.

Bottom Line Results

As a result, Suburban Propane has increased its profits each year. Net income for fiscal 1999 increased 12.1%. In fact, the year prior, during the 1997-1998 heating season, which was the warmest on record, it significantly increased cash flow from operations, earnings, and cash on hand. Gross profit increased from $334,336 in 1997 to $340,847 in 1998 and up to $346,669 in 1999. "As a public company, we need to make sure we spend the public's money wisely and a big part of our turnaround was also ensuring a fiscally responsible, cost-conscious approach at all times. Our figures demonstrate our success," noted Mike.

"One of the reasons why we worked with Augur, Inc. at this time, was because of the great service we received from them. Our firm only wants to work with companies that share the same customer service orientation that we ourselves have embraced," Mike added.

"I highly recommend the Predictive Index to other companies. However, it is definitely a tool that needs to be employed continually," explained Mike. "Like Karate, you can't take two sessions and defend yourself. You need to learn it and keep using it to achieve the greatest success."

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