Gerdau, Brazil‘s largest steel producer and a major player in the global steel industry, stands out for its innovative management model, which focuses on a performance culture and operational excellence. In this article, we explore how the company has transformed its organizational culture to face the challenges of the globalized market across its operations in seven countries.
A Strengthened Organizational Culture
According to Gerdau‘s General Manager of Operational Excellence, Verônica Gonçalves, culture is the basis of the company‘s success, strongly linking its organizational values to performance and results. With 30,000 employees in 29 industrial units, the company has a clear purpose: to empower the people who shape the future. “This purpose is supported by a well-defined goal and structured principles, guiding all the company‘s initiatives. We are all leaders at Gerdau, from the operator at the machine to the highest level of leadership,” explains Verônica.
The Evolution of the Management Model
Over the decades, Gerdau has evolved its management model to adapt to new market challenges. Initially inspired by Japanese models, the model was revised to better serve a more open and dynamic market. Since 2018, with the revision to Operational Excellence, the company has adopted Lean Office and Lean Manufacturing principles, integrating all its operations in Brazil and adding value throughout the sales, production, and delivery processes.
About Gerdau
29
Steel production units
30.000+
Employees worldwide
68,9
BIL. REAIS NET SALES IN 2023
The Dimensions of Operational Excellence
The Operational Excellence manager explains that Gerdau‘s strategy is supported by five main dimensions: Results Management, Employee Development, Operational Discipline, Continuous Improvement, and Sustainable Value. These dimensions are deployed into 23 practices and 59 tools, applied in an integrated manner according to the specific needs of each unit and challenge. “These tools are available according to the need and complexity of the problem. We don‘t use every tool in every situation, but only the right tool to solve that problem. I‘m not going to ‘kill a mosquito with a cannon.’ This aligns precisely with our culture because what applies to Gerdau in Brazil may not apply to the United States, and vice versa,” says Verônica Gonçalves.
Performance Culture and Leadership
The cultural transformation at Gerdau is guided by the behavior of leaders at all levels of the organization. Inspirational leadership, which works at the root of problems and sets high standards, is fundamental to imprinting a performance culture. The model promotes open dialogue, challenging goals, and autonomy, encouraging all employees to act as owners of their results. Gerdau‘s new management model is not limited to operational management; it defines a corporate culture that values innovation, sustainability, social responsibility, diversity and inclusion, and excellence in all aspects. By integrating advanced management practices with a strong organizational culture, Gerdau continues to stand out as an example of success in the global steel industry, prepared to face future challenges with confidence and leadership. “Everything we do is embedded in this way of doing and being, supported by the pillars of management and stewardship. We talk about safety, the environment, people, and maintenance, with the leader always at the center of this model, acting as the example. In this way, people are the protagonists of their own results and their business, so the company, as a whole, achieves its purpose,” concludes Verônica Gonçalves, Gerdau‘s General Manager of Operational Excellence.
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