Innotec

By: Brian Chuff, Tyler Hammond, Grace Howrigon, & Michael McCarthy
 About the Business
 Innotec is a manufacturing company which produces products for
automotive, office furniture and retail-lighting markets.
 Location: Zeeland, Michigan,
 Number of Employees: 400
 Sales: $90,000,000
 Some products include:
Lighting
Applied Metals
Power-Distribution products

 Opened in 1992 and awarded in 2016 one of the Best Small Companies by
Forbes.
 The History
 1992
 Innotec incorporated in October 8, 1992 initially leasing a corner of a building in Hudsonville, Michigan. Innotec began
with three machines which ran the T-spring, Visor Elbow, and Resistor Board project for the Automotive Industry

 1994
 In 1994, Innotec broke ground on Suite 50 in Zeeland, Michigan and moved four machines from Hudsonville to the new
building later that same year.

 1996
 Innotec initiated its “Employee Stock Ownership Program” in 1996. ESPO is an intergral part of our winning culture
where people love to work and have direct ownership of the success of our organization.

 1999
 In 1999, Innotec purchased 20 more acres behind Suite 50. Suite 100 was built this same year, followed by the Ventura
facility and Suite 200 to complete the Roosevelt campus.

 2000
 Universal Rail is Innotec’s first program in the Office Furniture market. This program is a great example of how Innotec’s
automated advanced manufacturing vision can create huge wins for our Customers
 The History Continued…
 2006
 Innotec enters the Automotive headrest market with our patented cold notch forming technology for
headrest stays.
 2007
 The Innotec supported non-profit well drilling project in Nigeria is formalized through the vision and
technical support of many Innotec team members. (Water Wins)
 2008
 Innotec develops its patent technology for counterweights using 100% recycled material, innviromass
 2009
 Innotec BoardFree® technology revolutionizes the industry, providing PCB free solutions for the lighting
industry. Innotec awarded CEAM Grant from the State of Michigan for the advancement of the
BoardFree® technology.
 2016
 Forbes Magazine recognizes Innotec as one of it’s 25 Best small companies in America 2016 because of
Innotec’s unique business model and community impact.
 Values
 TRUST(requires: integrity, caring, alignment, competence) is the foundation in all our
relationships.
 HUMILITY is a leadership trait. There are no big shots. We lead simple personal lives.
 Sensational SERVICE our customer
 •We take RISKS -- lots of calculated risk. We want to make lots of "mistakes" trying to
jump ditches but frown on wandering into them blindly.
 •We all get DIRTY HANDS and like it
 We keep LEARNING
 •ORGANIZATION. There is no they. The whole is more effective than the sum. What are:
titles? organizational charts? job descriptions? ladders? We don't say "promotion." We
hire only people we will work for someday and coach 'em to get 'em there
 We love CHANGE and see our primary role is as change agents. The magic is in "fixin
fastest". It's "NEVER GOOD ENOUGH", but yet we're proud of how far we've come!
 We will try to balance faith, family, community, and HARD WORK
 The Vision
 Be a company based on Biblical Principles
 Be wise ‘STEWARDS’ of our God given talents and resources to improve
lives.
 Grow people, Give Generously, Employ, Produce beneficial products
Be a dynamic, winning ‘CULTURE’ where we love to work.
 Innotec is committed to the application of our vision and values through
environmental stewardship. Key to this commitment is continuous
improvement of our environmental impact, complying with all
environmental regulations and developing processes that are safe for the
environment.
 Suppliers
 In order to rank our Supplier performance each fiscal year, Innotec uses a
Supplier Scorecard based on a consistent metric-based system. This system
focuses on three main areas: quality, delivery and cost objectives.
 Innotec uses this scoring system as part of 11 the strategic evaluation process
for sourcing Suppliers for future programs. The expectation is for all Suppliers to
maintain a score of 45 or better (perfect score is 50)
 A Supplier whose score falls near or below 30 may be required to complete
immediate corrective action plans and participate in an onsite supplier
assessment, Level 1 or Level 2 containment process and/or participate in an SPR
meeting at Innotec.
 If a Supplier demonstrates chronic recurring problems or have a Scorecard score
below 30, Innotec may request a Supplier Performance Review (SPR). A Supplier
will receive an SPR notice form from Innotec by fax, email or mail. The notice
will specify the meeting location, time and date, as well as include an
explanation of the reason for the review.
Supplier Scorecard
 Impact
 Stewardship with an entrepreneurial approach
 Innotec financially supports many organizations around the world but the
heart of our stewardship comes from the hands of the Innotec team.
 Together the Innotec team gives thousands of hours of our time to projects
around the world from building homes and drilling wells to teaching
business skills and caring for orphans.
 Innotec’s impact also focuses on the efficient and responsible use of the
resources God has given us.
 In our products, operations and community, we promote Sustainability.
 Sustainability
 Innotec uses environmental
stewardships to maintain their
commitment to their vision and values.
 Innotec has shown immense strides in
their improvement of their
environmental impact, complying with
environmental regulations, and
developing processes safer for the
environment.
 Solutions for Customers
 “Our unique culture of innovative designs combined with operational
expertise allows us to design the product and create a unique process that
translates to huge wins for our customers.” (Innotec Group)
 Innotec’s solutions in the automotive world consist of:
 Shipping over 70 million lighting products for the automotive and commercial vehicles thanks to
patents and creativity of the Innotec teams.
 With such success in the automotive industry, Innotec has since moved into consumer lighting markets
with their BroadFree technology.
 In 2000, Innotec entered the furniture industry with help from their customers. Innotec teams also
came up with patented technology called Innviromass.
 Innotec offers a wide range of lighting products.
Those lighting products are in automotive and
commercial vehicles as well as outdoor consumer
Products
products such as lights on lawn mowers and snow
blowers, dome lights, and a trouble free light.
 Another lighting venture Innotec as pursued is
retail lighting. Innotec offers lighting options for
retail stores in order to get the appropriate
setting for individual stores.
 As stated before, in 2000 Innotec entered the
office furniture by establishing patented
technologies. The company offers
counterweights, applied metals, and power
distribution products for furniture.
Interview
 Interviewee: Carolyn Vanwieren
 Position: Corporate Spokesperson
 Also leads: IT team, Legal team, Purchasing team

 Years with Innotec: 12

How does Innotec utilze teams?
 Structure: Flat organization
 No titles – work hard to eliminate hierarchy
Still have division leads
Motto = “I am no better than anyone else on team”

 No offices – Just desks in one open room; even President

 All groups broken down into “cells”

 No different than team
 Some cells include 2 people some include 7 or 8
 Within “cell” team members are responsible for specific product they are in lead of
 Each cell responsible for ordering supplies, equipment, meeting with customers, finances,
management, employee schedules – all dealing with cells’ own product
How does Innotec utilze teams? - Continued
 Cells (teams) make sure to team build outside of work
 Importance of balance – have fun, understand roles, make necessary shifts, etc.

 Innotec does not have specific departments

 Every person in every division has “Corporate Responsibility;” every person in
every division has CR
 Purchasing, accounting, finance, etc.

 Each division works with other divisions on creating strategies

 Cross-divisional: Working with other divisions not in your own to create strategies
 Inner-divisional: Working within own division to create strategies

 Motto: “Everyone helps everyone”

 Employee employed for 2 years is just as able if not more to assist than an employee employed
for 20+ years
Are outside sources involved?
 Stakeholders actively involved with mentoring
 Stakeholders = Retired businesspeople

 Innotec part of “Innogroup”

 Group of companies – 13 companies
Not in competitive industries but visions and values align
The “B” statements
Use eachother to benchmark where they are – Advice and discuss issues

 Innotec tries to be open with suppliers

 Stewardship and making impact in world – Emphasis
 Everyone who works at Innotec is involved in stewardship
 Call them a “Champion”
 Carolyn is in charge of Habitat for Humanity – “Champion” of Habitat for Humanity
How do you communicate between employees?
(i.e. methods and practices)
 Corporate meeting – Every Friday
 1 hour with 8-10 Innotec employees
 Hear it Globally – Mexico, China and Hungary branches on conference call
 Open book – Updates on customers, quality, stewardship
 President gives vision and values – “Why we do what we do”
Bible lesson

 Divisions meet once a week

 “5 pound bag” – Monthly newsletter
 Emails/phone calls
 Transparent
Do you see continuous improvement through
teaming?
 1992 – President, Brother, Father – Worked for a corporate hierarchy
 Viewed it as negative – Got promoted and your office moved two blocks away
 How can you instill change if you are not present?

 Same founder is still owner in 2016

 “4 men in a garage” – Stay small even though we are getting bigger
 This instilled the “cell” structure

 Technological advances – Changes teams and machinery used for

manufacturing
 Foundation has not change – Success has evolved