Taking Charge at Domtar: What it Takes for Turnaround 1. How did Domtar’s strategies align with its mission? Explain your answer.
Domtar’s mission under new CEO Raymond Royer: * Meet the ever-changing needs of our customers, * Provide shareholders with attractive returns, and * Create an environment in which shared human values and personal commitment prevail.
In order to achieve the goals in the Domtar mission statement, Royer established and communicated strategic direction and specific goals. The new strategic direction that Royer set for the company was one of preferred supplier status in the pulp and paper industry. The organization’s new goals focused on vastly improving return on investment and quality in customer service.
Domtar was able to achieve and surpass its goals, all while keeping costs down, by focusing on Royer’s three pillars to the company: customers, shareholders, and ourselves. Notice the clear alignment when you compare Domtar’s mission, goals and pillars. The key component is what Royer meant by “ourselves.” He meant tapping into and motivating ALL employees in the organization. Royer knew that he and his executive team could not create the turnaround that Domtar’s balance sheet so desperately needed. Royer himself knew nothing of the pulp and paper industry before coming into the Domtar CEO position. But what he did know was how to create an organizational culture of empowerment, knowledge sharing and process improvement. And that’s exactly what he did through Kaizen events, transparent communication tactics and ongoing training that went beyond the typical job skills training. Armed with this new way of thinking, employees started to feel more like experts providing value. In order to keep the momentum going, and solidify the “Domtar Difference,” a performance management and incentive program were put in place, complete