In the latest episode of Practitioners Unplugged, recorded live from the bustling Automate show in Detroit, we cut through the noise of cutting-edge technology to spotlight a crucial, yet often overlooked, aspect of digital transformation: the human element. We’re joined by Jim Mayer, a passionate leader with 25 years of industry experience, who delves into the cultural side of change management in manufacturing. As Dante and Sree, our hosts, point out, while AI and robotics dominate the headlines at events like Automate, the true success or failure of digital initiatives often hinges on how people adapt and embrace new ways of working.

Jim, a self-described “resource provider” who started his career in industrial distribution after a stint as a carpenter, found his calling in machine shops, appreciating the camaraderie and practical nature of the people there. His journey through various roles, including advocating for machine shops at the NTMA and ultimately launching his own company focusing on “the humans of the industry,” reflects a deep understanding of the challenges and opportunities at the intersection of technology and the workforce. He emphasizes that while asset performance management has been a focus for years, the “fuzzy” human side has often been avoided, despite people being considered a company’s most important asset.

For manufacturing leaders grappling with implementing new technologies, Jim’s insights offer a vital roadmap for preparing their teams, fostering adoption, and sustaining long-term cultural change. Here are key takeaways from our conversation:

1. Technology Implementation: It’s About Needs, Not Just Newness

A common pitfall in digital transformation is the top-down imposition of technology without employee input. Jim recounts countless instances where owners attend trade shows, purchase impressive technology, and then instruct employees to implement it, often without asking if it’s truly needed or if it’s the right solution. The result? Expensive equipment gathering dust under tarps for years. Jim’s passion for people stems from realizing that technology’s true power emerges only at the intersection of human needs and technological capability. Successful technology adoption happens when employees are involved in the selection process, often by bringing them to shows or even sending them in leadership’s stead.

2. Redefining the “Asset”: Measuring What Matters in Human Performance

The financial world often views people as a cost item rather than an asset on the balance sheet. This leads to incongruencies in how human performance is measured. Jim points out that companies often measure employee turnover (when they leave) but not retention (when they stay), unlike how they measure the current ROI of machine tools. This reluctance to quantify “soft skills” like empathy, communication, or culture makes it scary for organizations accustomed to tangible metrics like machine depreciation or production output. However, Jim contends that the shift where AI impacts white-collar jobs, just as automation impacted blue-collar roles, is leveling the playing field, making the human aspect undeniable.

3. AI and Automation: Empowering People, Not Replacing Them

A common fear among the workforce is that AI and automation will replace their jobs. Jim, however, offers a powerful counter-narrative: AI won’t replace people on shop floors; rather, people who learn how to use AI, automation, and digital tools will replace those who don’t. He draws a parallel to the introduction of CNC machines – those who adopted the new programming methods thrived, while others either adapted to manual work or left the industry. This shift means the nature of jobs changes, often leading to upskilling and a more engaging career path. From machinists to programmers to robotics engineers, manufacturing offers a clear career trajectory for those embracing advanced skills.

4. Cultivating a Culture of Authorship and Celebration

Jim strongly asserts that “humans hate change” is a myth. People love change, but only when they author it – when they have a say, when it feels substantial, and when they can write what that change looks like. The 70% failure rate in digital transformation efforts often stems from owners buying technology without employee input.

Successful change initiatives involve:

• Soliciting “Things That Suck” Lists: Encouraging operators to identify their daily frustrations fosters buy-in and ensures solutions address real problems.
• “Shop Floor Shark Tank”: Jim implements a program where employee teams identify challenges, propose solutions, and leadership commits to implementing the best within 30 days. This empowers employees and builds a sense of ownership.
• Leading with Empathy: Leaders must communicate how new technology enhances roles, rather than replaces them. This human-centric approach fosters trust and collaboration.
• Celebrating Wins (Big and Small): Adopting an “Agile” mentality from the software world, manufacturers should celebrate every win, even small incremental ones. This sustains motivation and fosters a culture where mistakes are seen as learning opportunities, not reasons for punishment.

5. Aligning KPIs and Embracing Continuous Improvement

For digital transformation to stick, KPIs must be aligned across the entire organization. If a machinist is measured on scrap rate, the owner should also be measured on scrap rate; if the floor is measured on OEE, the whole organization is. This fosters a “team win or team loss” mentality, connecting individual efforts to overall organizational success. Resistance to new, often lower, OEE metrics from automated systems can be overcome if performance management is a continuous process of regular conversations, not a surprising event. This consistent, small-scale effort leads to extraordinary long-term results, fostering a culture of accountability and continuous improvement.

Conclusion: The Collaborative, Empathetic Path Forward

Jim Mayer’s powerful message is clear: while technology accelerates our evolution, the future of manufacturing hinges on human-centered leadership and a proactive approach to change management. Success in digital transformation isn’t an afterthought; it must be at the forefront of strategy. By leading with empathy, inviting employees to co-author change, and fostering a culture of continuous learning and celebration, manufacturers can build resilient, innovative operations. Jim emphasizes that while change is never easy, it becomes significantly smoother when the entire team is engaged and supportive, rather than resistant. His insights underscore that the most advanced technologies will only reach their full potential when rooted in a strong, adaptable human culture.

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