The French automotive parts manufacturer whose CEO Jean-François Zobrist eliminated the entire management layer and organized the factory around self-managing customer-focused teams — the only European competitor in its market to sustain profitability against Chinese competition.
FAVI is a French manufacturer of gearbox forks and other automotive parts founded in 1957 and transformed in 1983 when Jean-François Zobrist became CEO and systematically eliminated the management hierarchy. The factory was reorganized around self-managing teams of fifteen to thirty-five workers, each dedicated to a specific customer (Volvo, Volkswagen, Audi). Each team handles its own scheduling, quality control, purchasing, and hiring. The transformation was dramatic and sustained: FAVI became the only European supplier in its market segment to maintain profitability against Chinese low-cost competition, precisely because its teams could adapt to changing customer needs in hours rather than in the weeks required by hierarchical approval chains.
FAVI
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Zobrist's transformation of FAVI was not theoretical. He took over an organization with standard French industrial management — layers of supervisors, complex procedures, conflict between workers and management — and concluded that the management apparatus was the obstacle, not the solution, to the organization's problems. His first