Facing a persistent challenge of employee turnover, manufacturing executive Paul Centenari has pioneered a suite of innovative programs at Atlas Container designed to foster long-term commitment by prioritizing his workforce. His philosophy, encapsulated in the adage, "The more you give, the more you get," has been instrumental in transforming the company from a modest operation into a $100 million enterprise, while simultaneously addressing the inherent difficulties of retaining staff in a physically demanding industry.
The manufacturing sector, particularly companies like Atlas Container that specialize in corrugated packaging, has long grappled with the complexities of workforce acquisition and retention. The demanding nature of plant work, often characterized by high temperatures and strenuous physical activity, coupled with the lingering effects of labor market shifts following the COVID-19 pandemic, creates a fertile ground for employee attrition. This reality has been a constant concern for Centenari since he acquired Atlas Container over three decades ago, serving as a critical factor in his strategic approach to business management.
"We have a core group, about 85 to 90 percent of our employees, who are long-term and deeply committed," Centenari stated in a recent interview with Chief Executive. "They are the backbone of our operations and are not looking to leave. However, there’s a persistent segment, roughly 10 to 15 percent, comprising about 20 to 30 individuals, who tend to cycle through the company. Retaining this group has been a consistent challenge, requiring us to actively seek out and implement strategies that encourage them to stay."
Centenari’s journey in leadership has seen a significant evolution, moving away from traditional command-and-control methodologies towards a more empathetic and employee-centric model. This shift was not abrupt but rather a gradual realization, influenced by mentors and a deepening understanding of human capital. He asserts that this approach is not merely altruistic but a sound business strategy, believing that investing in employees yields tangible returns. "If you invest in your employees, they will reciprocate," he explained. "This fosters a healthier, more appreciative relationship. Ultimately, this translates into a culture where employees are happy, which in turn leads to satisfied customers."
From $5.5 Million to $100 Million: A Growth Strategy Rooted in People and Service
The growth trajectory of Atlas Container under Centenari’s leadership is remarkable. The company has expanded from its initial $5.5 million valuation at the time of acquisition to approximately $100 million in annual revenue. This impressive expansion can be attributed to two foundational strategies that Centenari consistently championed: an unwavering commitment to customer service and a profound dedication to employee well-being.
"The most pivotal decision was acquiring the company itself," Centenari reflected. "Prior to that, we had zero revenue. Then, we propelled the company from around six million dollars in sales to nearing the $100 million mark. There are countless moving parts in any business, but two core strategies have been paramount: always saying ‘yes’ to the customer and treating our people with the utmost importance. We still strive to embody the ‘yes’ mentality, even facing challenges where our team needs to figure out solutions. The immediate response is always, ‘Yes, we can do this.’ This customer-first approach, treating them as paramount, is one pillar. The second is mirroring that dedication with our employees. Showing appreciation, actively listening, and striving to fulfill their requests are crucial. I firmly believe there’s a straightforward mathematical formula: happy employees lead to happy customers. It’s that simple."
The Genesis of Open-Book Management: A Paradigm Shift in Leadership
Centenari’s leadership philosophy underwent a significant transformation in 1996, catalyzed by an encounter with Bob Argabright, a plant manager in Maryland. Argabright introduced Centenari to the concept of open-book management, a revelation that profoundly reshaped his understanding of effective business operations.
"I met Bob Argabright in 1996, and he was running a plant in Maryland," Centenari recounted. "He introduced me to open-book management. The moment I heard about it, I knew this was precisely how we needed to run our business. The original owners from whom we bought the company instilled values of treating people with dignity, and we learned from that. However, Argabright elevated this to another level with the principle that ‘the more you give, the more you get.’ When you invest in your employees, they will give back and will appreciate it. This cultivates a much healthier relationship. I firmly believe that this equation leads to a culture where happy people create happy customers."
This paradigm shift marked a departure from the more authoritarian leadership styles prevalent in manufacturing during that era. Centenari recognized that a collaborative and transparent approach, where employees are empowered with knowledge and a sense of ownership, could unlock greater potential and loyalty.
Unpacking Open-Book Management: Transparency, Accountability, and Shared Success
Open-book management at Atlas Container is a structured process designed to demystify financial performance for every employee. The core principle involves educating the workforce on how to read and interpret financial statements, specifically the income statement.
"Fundamentally, we teach the people in our organization to read financials, the income statement," Centenari explained. "We present this information monthly or bi-monthly. Crucially, we establish a clear line of sight between their daily tasks and the company’s financial outcomes through scorecards. These daily scorecards track key metrics such as production speed, waste reduction, safety protocols, and quality control. This directly illustrates how their actions impact the plant’s performance at the end of the month."
This transparency is particularly effective because manufacturing employees, much like consumers, are acutely aware of their personal financial situations. By extending this financial literacy to the workplace, Centenari taps into a natural inclination for understanding and engagement.
"Most of our people, like in most manufacturing operations, are ‘CPAs’ when it comes to their own paychecks. They know exactly what’s happening with their earnings," Centenari noted. "Therefore, they become interested. They care. If you can elevate their interest to a level where they genuinely care about what’s happening in the plant, they will proactively seek ways to improve profitability. With the right tools and scorecards, they learn quickly and contribute to making things work."
The system is further reinforced by tangible incentives. "We tie this into bonuses and other forms of compensation, which makes it even more powerful. It’s about money, which is important. But let’s say a crew receives $100 each; it’s also about the ‘win’ they are striving for. It’s not just the $100. They love the money, but they want to win. They want to achieve the goal. I believe this level of involvement makes a significant difference."
Employee-Driven Innovation: The Tangible Results of Transparency
The impact of open-book management is frequently evident in the proactive suggestions and problem-solving initiatives put forth by employees. When individuals understand the financial implications of operational efficiency, they are more likely to identify and propose solutions.
"We have employees coming to us suggesting improvements, saying things like, ‘Look, for us to run this machine faster, maintenance needs to address three specific issues: the first-down printing operation, the counter ejector, and the pre-feeder. If you fix those, we can achieve 5,000 or 10,000 pieces per hour, whatever the target is’," Centenari shared. "This kind of dialogue is constant. It becomes a quid pro quo: ‘If you want me to perform at this level as an operator, can you address these operational barriers?’"
This collaborative problem-solving is a direct consequence of employees understanding their role in the company’s financial health. Centenari likens this to the intrinsic motivation found in sports. "I believe that if they don’t see the score, they won’t work as hard," he stated. "Imagine playing baseball, football, or tennis without keeping score. There would be no crowd, no one would watch, and no one would care. However, in manufacturing, when you start scoring their performance on the floor, they naturally perform at a higher level."
Navigating Resistance: Addressing Setbacks and Maintaining Momentum
While the open-book management system has yielded significant positive outcomes, Centenari acknowledges that it has not been without its challenges. Periods of financial difficulty can test employee morale and lead to apprehension.
"Yes, we’ve gone through times when we weren’t performing well," Centenari admitted. "We presented them with the unvarnished truth, the black and white reality. During those times, we’ve lost some people because they saw the company struggling, became worried, and sought employment elsewhere. This has been a significant fallout, and we’ve lost some good individuals."
However, Centenari views these instances as an inherent part of the business cycle. "This is the game," he asserted. "They need to see what we see. Fortunately, the vast majority, over 95 percent, stick around and actively seek ways to contribute and make things work." This resilience underscores the long-term trust and commitment built through consistent transparency.
Reintegration and Rehabilitation: The Impact of Work-Release Programs
A particularly innovative aspect of Atlas Container’s workforce strategy involves participating in work-release programs with local correctional facilities. This initiative provides opportunities for non-violent offenders to gain employment and develop vocational skills while still incarcerated.
"We hire individuals on a work-release program. They come to us during the day and return to the correctional facility at night," Centenari explained. "This effort began about ten years ago, paused for a period, and then resumed about four years ago. We collaborate with the Jessup facility, the closest to us, building relationships with the warden and staff. We exclusively hire non-violent offenders. They are under scrutiny from both us and the facility. Most of these individuals are incredibly dedicated. They come to work with a strong desire to learn and change their lives, and the success rate has been remarkably high."
The consistency of these individuals during their work-release period is often exceptional. However, the transition to full reintegration into society presents unique challenges.
"When they are released, it can become a bit challenging," Centenari noted. "Many of these men have been incarcerated for 20 or 25 years. They may lack a driver’s license, a car, or face transportation issues due to living far from the worksite. I’m currently focused on one individual who commutes via train, metro, bus, and a mile-and-a-half walk to get to work. I’m looking into the possibility of offering him a leased car, with payments deducted from his paycheck. It requires a significant period of readjustment for individuals who have been out of society for such an extended time."
The impact of these programs on the business has been significant in addressing labor shortages. "We have faced difficulties in finding people who want to work, a problem that seems to be widespread," Centenari observed. "Our plant can get quite hot in the summer, and we are exploring infrastructure improvements to mitigate this. However, the consistent presence of long-term employees, who represent 85 to 90 percent of our workforce, provides a stable foundation. The challenge remains with the fluctuating 10 to 15 percent. These work-release programs, along with other developmental initiatives, are crucial for stabilizing this segment and encouraging growth and greater responsibility within the plant and office."
Investing in Futures: GED Programs and Educational Support
Centenari’s philosophy of "the more you give, the more you get" extends beyond the workplace to encompass the broader educational and personal development of his employees and their families. Atlas Container actively supports employees in obtaining their GEDs and provides tutoring for their children.
"We’ve had a handful of employees earn their GEDs through our support," Centenari shared. "Many of them did not complete high school, and we covered the costs of their studies and tutors. Seeing them graduate from local community colleges and receive their high school diplomas has been incredibly rewarding. We consistently offer this opportunity. Furthermore, we provide extensive training for any employee eager to enhance their skills."
This commitment to education is deeply personal for Centenari. "My brother and I were fortunate to have parents who placed immense value on education, even above sports or any other activity. If we needed tutors, they provided them. I want to offer these same services to the children of our employees. It’s an investment, certainly, but the results are profound. We’ve witnessed children transform from disengaged students, often sitting at the back of the class, to active participants who attend every day and sit at the front because they are finally grasping the material. We’ve seen nearly miraculous turnarounds with these children over the years."
He actively encourages employees to involve their children in these educational initiatives, recognizing the ripple effect of improved academic performance on family well-being and employee morale. "It’s becoming more challenging to foster this engagement, but it significantly benefits them. The same principle applies to our employees; if they desire any form of training, we strive to provide it. I believe that the more we stimulate the brain, the more we can unlock potential in people. This leads to greater job satisfaction and appreciation for their roles."
Financial Discipline and Headcount Management: A Critical Pillar of Sustainability
While Centenari champions a people-first approach, he remains acutely aware of the financial realities of manufacturing. He emphasizes the critical importance of cost management and disciplined headcount control as fundamental to long-term business sustainability.
"The basic principles are crucial," Centenari advised fellow manufacturing CEOs. "Many manufacturers do not monitor their costs closely enough. They need to prioritize costs, identifying the largest expenditures as a percentage of sales and ensuring they are procuring materials at the best possible prices. This requires constant vigilance."
He shared a recent experience that underscored this point: "I’ve been in this industry for 38 years. Two years ago, we became overstaffed. We had 217 people performing work that 171 could accomplish. I analyzed the numbers, looked back at previous years, and realized we were doing more with 46 fewer people. We had to let those 46 individuals go. The mistake wasn’t letting them go; the mistake was hiring them in the first place."
This experience reinforced his commitment to meticulous headcount management. "I don’t want to repeat that. I don’t want to have to send people home because it’s demoralizing. You’re impacting their lives, their livelihoods. So, we monitor our numbers rigorously. Every single day, I review our headcount. Yesterday, we were at 171, which is the number we were at when we made those reductions. I watch this metric very closely to prevent an increase in headcount without a corresponding increase in productivity. It’s a continuous learning process."
Centenari’s advice to his peers is clear: "Keep a close eye on your headcount. There’s a natural tendency, a reflex, to hire people. If you lack discipline, you will inevitably overstaff. This directly impacts the cost side of the business." This pragmatic approach, balancing human investment with financial prudence, forms the bedrock of Atlas Container’s enduring success.
