FAVI believes that man is good. ​

​Jean Francois Zobrist, a metallurgical engineer and former paratrooper, became director of FAVI in 1983, a metalworking company in Hallencourt, northern France. Zobrist found the way the company treated employees degrading. He opted for a radically different approach. And with success.

Hierarchical Metalworker

FAVI was an ordinary factory until 1983. A family business that made taps and hinges and locks. Eighty people worked there and despite the limited size, there was a strict hierarchy in the company. A Chef d'atelier supervised the workplace and reported to a Chef d'equipe. Who in turn was accountable to a Chef de service. Above that was the Chef du production and at the very top was the CEO. A time clock was used to check whether the workers arrived on time and did not leave too early. Employees who arrived late or did not meet the production standard had their salary cut.

Mini factories

Until 1983, when Jean-Francois Zobrist was appointed director (he remained director until his retirement in 2009). Under his leadership, FAVI made the switch to shift forks for the automotive industry and most importantly, he radically changed the hierarchical way of working. He formed mini-factories. A dedicated team for each customer. For Renault, Audi, VW etc. Teams of 15-35 people who arrange almost everything themselves. They consult with their customers, they negotiate with suppliers and they buy their own equipment and machines. Irresponsible? If you leave it to the employees themselves, they will cut corners, right? The opposite turns out to be true. The quality of their product is legendary and their punctuality is second to none. FAVI is now a company with over 500 people. It is the only remaining manufacturer of shift forks in Europe. The rest have fled to China; because of the low production costs. FAVI has a very strong position with a market share of 50%. FAVI has a healthy profit margin year after year. And that while FAVI pays its employees above average.

Think like farmers

FAVI has virtually no staff positions. No separate departments for planning, purchasing and sales. But who determines the course of the company? Usually a matter for management and staff. An annual ritual in which the developments in the market and the company's own ambitions for the coming years are listed and the actions for the coming year are outlined. With FAVI none of that. No annual exercise, no plan devised by the top. But a thriving business. All FAVI employees have a strong sense of the company's purpose. Employment, a scarce commodity in that region, and care for their customers; that's what it's about. Zobrist argues that in our complex world it is pointless to try to predict what will happen and then make the perfect plan for it. Zobrist: We must think like farmers, look twenty years ahead and only plan for the next day.

Confidence and fun

But perhaps the most remarkable thing is how Zobrist views employees. The general image is that staff are lazy, selfish, unreliable and stupid and that trust shows irresponsible naivety. If not Zobrist. He assumes just the opposite. Zobrist found the way people were being monitored to be downright embarrassing. He abolished the time clocks and the monitoring of machine operating hours. As well as salary reduction as a sanction. The warehouse was no longer locked; everyone could take what was needed. This idiosyncratic view of employees is also apparent from the three principles explicitly stated in the factory. People are consistently regarded as good and that means reliable, motivated and intelligent. No result without fun; this requires that you understand why and for whom you work, that you want to take responsibility and that you have the space to choose how you work. The third principle, the real value is created on the shop floor, puts the importance of CEO and staff into perspective.

Ask for help

No one would characterize Zobrist as a softie, but he doesn't exactly fit the common image of the leader who oversees everything, has everything under control and knows the answer to everything. In fact, he is not afraid to report that there is a problem, that he does not know the answer and that he needs help.

In the aftermath of the first Gulf War, car sales stagnated. At FAVI, too, stocks ran out and there was not enough turnover to keep everyone working. Zobrist presented the problem to the employees at the factory. That courage paid off. Within an hour there was a solution. It was unanimously decided that everyone would work a week less the following month and lose a quarter of their salary.

Control is better?

Nevertheless, for many managers, trust shows irresponsible naivety. Trust is good, verification is better. But that control always turns into oppression. Not surprising, but no less bitter for that reason, that Manfred Kets de Vries, professor of leadership development and organizational change at Insead, stated that many a company is a gulag for its employees.

Trust, on the other hand, generates energy, in Zobrist's experience. People start to feel responsible and proud when they get another job done, proud of their company and reputation. People no longer work just for that money at the end of the month. Distrust and control, on the other hand, destroy that involvement. And then even more control is needed. A hopeless, vicious circle.