How Hitachi Energy Saved $20M by Ending Costly Turnover
By equipping supervisors with practical leadership skills, Hitachi Energy reversed costly turnover. The result: more engaged teams, stronger performance, and measurable savings in under two years.
Results with DDI
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80% Turnover Drop
for salary employees
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25% Turnover Drop
for hourly employees
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$20M Saved
in 18 months following
The Need
Rapid Growth, Rising Turnover
Hitachi Energy’s North American Transformer business was expanding quickly. But growth brought pressure: high turnover, inexperienced supervisors, and inconsistent leadership were putting productivity and engagement at risk.
Nearly 90% of supervisors had been in the organization for less than two years, and many were first‑time leaders. Without a shared leadership standard, teams struggled with engagement, collaboration, and retention—threatening Hitachi Energy’s ability to deliver on customer commitments.
Hitachi Energy knew one thing was clear: frontline leaders would determine whether growth was sustainable.
The Solution
A Common Leadership Language at the Front Line
Hitachi Energy partnered with DDI to equip supervisors with the skills—and confidence—they needed to lead effectively from day one.
Hitachi Energy launched a structured frontline leadership program focused on the behaviors that matter most on the plant floor. The program emphasized practical skill application, role‑relevant examples, and a shared framework leaders could use in daily interactions.
The result was a consistent operating model for leadership—what Hitachi Energy leaders described as a set of “Standard Operating Procedures for Human Interactions.”
Core focus areas included what Hitachi calls the “3C’s”:
- Communication
- Coaching
- Conflict management
You can have all the latest technology and state-of-the-art equipment available, but still without trained and motivated people to operate it, it will be just a piece of steel.
Bartek Wielebnowski, Global Operations Manager, Hitachi Energy
The Result
$20M Saved in 18 Months
The impact was immediate—and measurable.
Within 18 months of launching the program:
- Turnover dropped 80% among salaried employees
- Hourly employee turnover fell 25%
- $20 million in turnover‑related costs were avoided
Participants also said:
- “I felt challenged to think about my future and what I can do to better myself.”
- “The tools, techniques, and principles were super relevant. I can start applying them NOW!”
- “It showed me that the company is interested in helping develop future leaders.”
- “I felt emotionally safe to share my own experiences.”
Frontline leaders became more capable, more consistent, and better equipped to engage their teams. Engagement rose, operational stability improved, and Hitachi Energy strengthened its ability to meet growth demands.
The positivity of the team members was palpable as I toured the factory. I can tell that investing in our people’s development is encouraging our employees and building trust in the organization.
CP Vyas, Head of Global Operations, Hitachi Energy
Have a Question?
Frequently Asked Questions
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What are effective strategies to develop manufacturing frontline leaders?
Hitachi Energy used a structured leadership development program focused on key supervisor/frontline skills, especially the “3C’s” (Communication, Coaching, Conflict). They tied key skills to their standard operating procedures so behaviors became the familiar expectation on the manufacturing plant’s floor. They blended classroom training, role-based examples, and digital, self-paced refreshers, allowing leaders to immediately apply new behaviors and reinforce their learning.
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What challenges do frontline leaders face in high-growth environments?
High growth creates unique leadership pressures: rapid scale strains existing processes, constant change disrupts team stability, and evolving priorities demand quick adaptation. Many frontline leaders, as in Hitachi’s example, are new in their roles. This combination means they must master fundamental leadership skills while simultaneously navigating organizational transformation, all under intensified expectations for engagement, performance, and retention.
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Why is it important to focus on developing frontline leadership?
Frontline leaders directly influence how organizational goals translate into business outcomes—they're the critical link between strategy and execution. Through their daily interactions and decisions, they shape employee experience, engagement, retention, and operational performance, all of which drive bottom-line results. Hitachi’s case demonstrates that investing in their development yields measurable improvements in key business metrics and significant cost savings from reduced turnover.
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How can frontline leaders support high growth in an organization?
Frontline leaders are crucial multipliers of organizational strategy during growth periods. They translate company goals into day-to-day actions, ensuring teams stay aligned with evolving priorities. Whether the focus is rapid scaling, market expansion, or product innovation, frontline leaders bridge the gap between executive vision and ground-level execution. Their direct relationships with team members also create stability during change—maintaining productivity, preserving culture, and keeping talent engaged when the organization needs it most.
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What skills do frontline leaders need to drive growth?
In high-growth environments, frontline leaders need skills that help them manage constant change. This includes quickly onboarding new team members, adapting processes as the organization scales, and maintaining quality standards despite rapid expansion. Beyond individual capabilities, growth requires organizational alignment. Frontline leaders across teams and locations must share a common leadership approach and language. This consistency ensures that whether you're in the headquarters or a new satellite office, teams are executing growth strategies in the same effective way.
