2. What is the primary type of change needed—changing “things” or changing the “people and culture?” Can the Wisconsin plant be saved by changing things alone, by changing people and culture, or must both be changed? Explain your answer. Jim Malesckowski remembers the call of two weeks ago as if he just put down the telephone receiver. “I just read your analysis and I want you to get down to Mexico right away,” Jack Ripon, his boss and chief executive officer, had blurted in his ear. “You know we can’t make the plant in Oconomo work anymore— the costs are just too high. So go down there, check out what our operational costs would be if we move, and report back to me in a week.”

At that moment, Jim felt as if a shiv had been stuck in his side, just below the rib cage. As president of the Wisconsin Specialty Products Division of Lamprey, Inc., he knew quite well the challenge of dealing with high-cost labor in a third-generation, unionized U.S. manufacturing plant.

And although he had done the analysis that led to his boss’s knee-jerk response, the call still stunned him. There were 520 people who made a living at Lamprey’s Oconomo facility, and if it closed, most of them wouldn’t have a journeyman’s prayer of finding another job in the town of 9,000 people.