From: mk_thisisit
The Iglotex company, a leading Polish retail and frozen food producer, faced an unprecedented challenge when its largest factory and distribution department were completely destroyed by fire. Despite this catastrophe, the company’s management committed to rebuilding without a single layoff, demonstrating remarkable resilience and strategic leadership [00:00:00].
The Fire Incident: May 27, 2019
On May 27, 2019, at 1:30 a.m., a fire erupted that consumed the largest factory and distribution department of Iglotex, located in the town of Pruszcz Gdański [00:00:14]. This site was crucial, as it employed approximately 650 people, essentially “the entire town” of about 3,000 residents, meaning almost every family had a connection to the company [00:00:30][00:03:11]. The incident was a significant event not only for the organization but also for the entire local community [00:03:40].
Iglotex: A Snapshot Before the Fire
Before the fire, Iglotex was a substantial Polish company with truly Polish capital [00:00:39][00:02:03]. In the year prior to the disaster, it produced 80 million kilograms of frozen food, employed 2,250 people, and generated 1.5 billion PLN in revenue [00:01:08]. The company also produced 27,000 meters cubed of frozen food and distributed casseroles that, when combined, stretched for 1,700 kilometers annually [00:01:30]. Founded by the current manager’s parents, Iglotex is today the largest Polish company producing frozen food and a major nationwide distributor [00:01:47][00:21:06].
The Rebuilding Strategy and No Layoffs
The most remarkable aspect of Iglotex’s response was the commitment to not fire a single person [00:00:11]. Only a dozen or so employees left due to retirement or personal reasons, with some even returning after the factory was rebuilt [00:04:13].
The immediate response included:
- Formation of a Crisis Team: Appointed just hours after the fire, this team focused on maintaining production volume and relocating operations to other plants to ensure continued access to shelves and customers [00:07:10].
- Reconstruction of Distribution: A dedicated group worked on rebuilding the distribution branch quickly to prevent customers from being left without goods [00:07:35].
- Employee Relocation: Employees from the affected factory were temporarily delegated to another Iglotex plant, several dozen kilometers away, for the frozen vegetable production season [00:08:41].
The decision to build a new factory was made swiftly. The process began on the first day after the fire [00:06:53].
“To rise you have to fall, this is the first point.” [00:06:08] “No sleeves up, we will be working hard for some time to look for half a full glass to cope and and face the challenges.” [00:06:27]
Challenges and Rapid Construction
The new factory’s construction began at the end of February 2020 [00:10:04]. Just two weeks later, the hard COVID-19 lockdown hit, creating further uncertainties akin to “disaster movies” [00:10:10].
Despite these hurdles, the new factory was built in a record 6.5 months. By mid-September of the same year (2020), the first production lines were installed, and sales from the new facility commenced [00:10:27]. This rapid reconstruction, costing around 200 million PLN, would likely not have been approved by partners and banks without the fire as an impulse [00:13:34].
The Role of Use of Technology in Business Recovery
The fire, while devastating, forced a complete reset that enabled significant modernization. The old factory, built 20 years prior and expanded twice, had an inefficient layout [00:11:11]. The new plant was designed from scratch according to principles of production management and Lean Management [00:11:43].
Key technological advancements in the new factory:
- Energy Efficiency: Despite producing more volume, the new factory uses about 25% less energy than the old one, thanks to new automation technologies [00:12:06].
- Increased Capacity: The company can now produce 25% more and has the potential for even greater production [00:12:20].
- Automation: Employment levels are maintained similar to before, indicating a high degree of automation. For example, the bakery section, which is 1/5 of the 24,000 square meter factory, is fully automated, requiring only a few people [00:12:28].
The manager notes, “there is no such thing as a bad thing that does not turn out for the good,” highlighting how the disaster led to a more modern and efficient company capable of developing sales, increasing market shares, and acquiring new customers [00:09:06].
Pillars of Success in Rebuilding
The successful rebuilding was attributed to four equally important “pillars”:
- Effective Damage Settlement: The insurance claim process went exceptionally well, with insurers and brokers quickly signing an agreement for damage settlement within three meetings [00:18:03].
- Dedicated Employees: Highly involved employees supported the process [00:18:24].
- Trustworthy Developer: The developer showed incredible flexibility and commitment, delivering the investment on time despite the tight schedule [00:18:28].
- Community and Official Support: Strong support from local and regional communities and government offices, which expedited decision-making and permits (e.g., getting a permit in a day or two instead of 30 days) [00:18:51]. This human factor was critical [00:19:26].
Business in Poland: A Series of Crises
Running a business in Poland, particularly in recent years, has been described as an “endless series of crises” [00:14:56]. The manager noted the sequence of challenges:
- 2019: The Fire Incident at Polish Distribution Company [00:15:08].
- 2020: COVID-19 lockdown [00:15:11].
- Late 2021: First major inflation signals, followed by energy price increases (up to 20 times) [00:15:14].
- Early 2022: The war in Ukraine, breaking supply chains globally [00:15:29].
Despite these adversities, the company has managed to thrive, with the manager likening their success to Iga Świątek’s tennis victories (6:0) [00:15:55].
Leadership and Mindset
The company’s leadership emphasizes optimism, trust in people, and a low-stress approach [00:20:07]. They believe in facing problems head-on and see stillness as “boring” [00:14:43]. The manager practices work-life balance, ensuring Saturdays and Sundays are free, a lesson learned after years of intense work during the company’s significant growth period in 2011 [00:22:07].
The motivation for continued development comes from the joy of creation and building, and the desire to leave a lasting legacy that benefits others and provides employment [00:22:46].
Evolution of IT and Technology Implementation
The discussion also touched upon the broader challenges of technology implementation:
- Increasing Complexity: Technologies are becoming more complicated, requiring the combination of many dimensions and interests [00:26:46].
- Organizational Transformation: IT projects are no longer just support functions but are seen as projects that transform entire organizations [00:27:20].
- Rapid Change: New programming languages, frameworks, and approaches appear quarterly [00:28:25].
- Human-Centric Approach: The current role of technology demands a “civilization technologist”—a person who combines emotional intelligence with artificial intelligence, understanding business, social needs, and trends [00:35:08]. The focus shifts to cooperation between people, with technology serving as a tool [00:33:16].
Artificial Intelligence and the Future of Work
The emergence of artificial intelligence (AI) is viewed as another element to broaden horizons and a new challenge, rather than a threat to jobs [00:30:24]. While AI helps write code, the human role remains critical in understanding context, vision, and expectations [00:32:22]. The development of AI demands more, not less, from teams, particularly in creating “bridges” between technology and business [00:33:36].
The ability to admit “I don’t know” is seen as a crucial starting point for learning and preparation, especially in a rapidly evolving technological landscape [00:37:58].