From: mk_thisisit
On May 27, 2019, at 1:30 a.m., a fire completely destroyed the Iglotex factory and its largest distribution department, practically reducing them to zero [00:02:00]. This facility, located in the town of Slush (population ~3,000), employed approximately 650 people, meaning nearly every family in the small town was associated with the company [00:03:11]. Despite this catastrophic event, Iglotex, Poland’s largest frozen food producer, committed to rebuilding without firing a single employee [00:03:59].
Rebuilding Strategy
The company’s approach to business recovery was swift and decisive:
- No layoffs Absolutely no person lost their job due to the fire, apart from a dozen or so who retired or changed employment for common-sense reasons [00:04:18]. Some who left even returned after the factory was rebuilt [00:04:45].
- Immediate action A crisis team was appointed just hours after the fire started on the first day. This team focused on maintaining production volume, relocating production to other plants, and reconstructing the distribution branch to ensure continued supply to customers [00:07:10].
- Employee redeployment Employees from the burnt factory were delegated to another Iglotex plant where the frozen vegetable production season was starting, ensuring they remained employed [00:08:41]. They were transported dozens of kilometers to the next plant [00:08:52].
- Mindset The leadership adopted a mindset of “sleeves up, we will be working hard,” focusing on finding the “half full glass” and facing challenges head-on [00:06:27]. They also believed “there is no such thing as a bad thing that does not turn out for the good” [00:08:25].
The Role of Technology in Recovery and Growth
The disaster, paradoxically, provided an opportunity for modernization and improvement through digital transformation:
- Modernization The previous factory was 20 years old with an inefficient, expanded layout [00:11:14]. The new plant was designed from scratch, adhering to principles of production management and Lean Management [00:11:43].
- Increased Efficiency New automation technologies in the rebuilt factory led to significant efficiency gains [00:12:07]:
- It uses about 1/4 less energy while producing approximately 1/4 more volume [00:12:10].
- The bakery, for example, is fully automated, requiring only a few people to operate [00:12:45].
- Rapid Construction Despite the start of construction in February 2020 coinciding with the first COVID-19 lockdown [00:10:10], the new factory was built in just six and a half months [00:10:41]. This rapid completion included the installation of new lines and the first production and sales from the new facility [00:10:31].
- Improved Performance The introduction of new technology, lines, and machines led to better quality products, developed sales, increased market shares, acquired new customers, and significantly improved financial results [00:09:24].
The investment of around 200 million PLN for the new factory would have been difficult to get approval for without the fire, as the old factory was still operational [00:13:34]. The fire forced a decision: either close the business or rebuild with modern technology [00:13:56].
Support System for Recovery
The successful recovery was supported by several “pillars”:
- Insurers and Broker The damage settlement process went smoothly, with an agreement signed at the third meeting [00:18:03].
- Developer The developer showed incredible flexibility and completed the project on time [00:18:24].
- Local and Regional Communities There was great support from local and regional communities and decision-making offices, which processed permits in a day or two instead of the usual 30 days [00:18:51]. This “human factor” was crucial [00:19:26].
Challenges of IT Implementation and Artificial Intelligence
A separate discussion highlights the challenges of implementing IT solutions and the evolving role of artificial intelligence:
- Complexity of IT Projects Modern IT projects are increasingly complicated, combining many dimensions, interests, budget constraints, human challenges, and even political layers within organizations [00:26:46].
- Organizational Transformation IT is no longer just a support function; IT projects are now seen as projects that transform entire organizations, leading to completely different challenges related to market competition and results [00:27:25].
- Rapid Change in Technology The IT landscape is constantly changing, with new programming languages, frameworks, approaches, and solution versions appearing quarterly [00:28:25].
- Impact of AI on Human Roles While AI can assist in writing code [00:32:12], it doesn’t necessarily replace programmers. Instead, it shifts the focus to understanding context, vision, and project goals [00:32:22].
- Human Adaptation to Change Change naturally evokes fear among people who worry about job security or stepping out of their comfort zone [00:30:55]. Leaders need to understand and address these fears [00:31:51].
- The Modern Technologist The ideal “technologist” today combines emotional intelligence with artificial intelligence [00:35:37]. This individual is highly competent in technology but also deeply understands business, users, and team relationships [00:35:43]. They must “create bridges between technology and business” [00:34:42].
- Embracing “I Don’t Know” Recognizing and admitting “I don’t know” is crucial for learning and growth [00:37:59]. It prompts preparation and problem-solving before facing challenges [00:39:03].
Operating in a Crisis-Prone Environment
The company highlights the volatile business environment in Poland and globally:
- Series of Crises After the 2019 fire, the company faced the 2020 COVID-19 lockdown, significant inflation signals in 2021, energy price increases, and the Ukraine war in 2022, which broke supply chains globally [00:15:08]. This illustrates the impact of traumatic events on technology development and business in general.
- Proactive Approach Despite these challenges, the company embraces problems, viewing them as opportunities rather than being bored when nothing happens [00:14:43].
- Gratitude and Influence The speaker emphasizes gratitude, appreciating what they have, and focusing on what they can directly influence by “rolling up their sleeves” [00:16:15].
- Self-Financing The company proceeds with necessary investments, such as building a sewage treatment plant, even without expected government support, financing it with their own resources and banks [00:17:10].
- Work-Life Balance After years of intense work, particularly after a significant growth period, the company recognized the importance of finding balance to be “long-distance runners and not short-distance runners” [00:22:33].
- Purpose Beyond Profit The motivation for continuing to develop the business stems from the joy of creating and building something that provides benefits, pleasure, and jobs to others [00:22:46]. This reflects broader societal impacts.