How a Can Lid Company Turned into a Powerhouse

Did you ever think a company making “easy-open” metal can lids could be a powerhouse?

Phoenix Packaging International , a partner company of Dubilier & Company , was a highly successful business in an industry that might seem commodity-like.?

Of course, the company had several attributes that made it successful. They also employed one significant defining program that contributed significantly to their ability to continuously recruit and retain the most motivated and productive employees:

Namely, they created an “ownership” program in the form of rigorous profit sharing that fostered significant alignment between the company and its employees.

Phoenix Packaging’s profit ownership program was a cornerstone of the company’s great jobs strategy and its substantial financial success, and it had a positive impact on everyone who worked there.

Here's how they achieved remarkable results:

?? Measuring, Highlighting and Communicating: Phoenix Packaging established a clear goal and objective, namely a percentage of the company’s pre-tax profit, that everyone in the company shared. They highlighted and communicated this goal consistently and relentlessly. Everyone in the company knew where they stood against this goal at all times and what it meant for them. It was incredibly motivating and created a strong sense of ownership across the entire company.

?? Incentivizing and Rewarding: With this clear objective, the company created a simple and powerful incentive program where a meaningful percentage of pre-tax earnings was placed into a bonus pool shared with every employee, from the CEO down to entry-level team members. Everyone felt invested in the company's success and connected to its mission. This alignment directly tied to team remuneration and company success, which fueled motivation and a sense of ownership.

?? Substantively Improving: With this reward structure in place and a consistent communication plan, the company and its employees took it upon themselves to make substantive improvements. They made and implemented ideas regarding how to prove productivity, reduce material and other input usage, extend the life of machinery and equipment, increase safety? measures, and reduce the cost of quality. In this manner, employees could make a difference in the company’s success, and Phoenix Packaging benefited with both outsized growth rates and profit margins.

Phoenix Packaging embraced the pillars of what we today refer to as our Social Forward Playbook. They established impact goals and objectives, in this case around employee opportunity and being treated fairly. They measured and communicated this comprehensively and relentlessly, and they rewarded the achievement of these goals and objectives significantly. Employees were afforded the chance to weigh in and contribute ideas and input regarding opportunities for continuous improvement so they felt valued and heard.?

They created a thriving workplace with highly motivated employees. Phoenix Packaging team members generally believed they were in good jobs in part because they felt valued and directly contributed to a shared vision, leading to a positive and motivating work environment. And, of course, everyone celebrated at the end of each year at a company-wide party where the CEO personally handed out every single profit ownership check!?

Sharing meaningful ownership can both drive results and create a workplace where people are valued, treated well, and invested in the company's success.