#1027 1983 · FAVI (Jean-François Zobrist) · Brass component manufacturing
FAVI dissolved its factory into customer-specific teams and threw out the time clocks
the problem
A functional factory structure buried every customer relationship behind departments and supervisors
background
FAVI was a mid-sized French foundry making brass components — gearbox forks, water-meter parts — organized the way nearly every mid-century factory was: functional departments (machining, quality, planning, HR) each handling a slice of every order, with a customer's request passing through several hands and several handoffs before a part shipped. When Jean-François Zobrist took over as director in 1983, that structure meant no single person or team was accountable for a given customer, only for a given function, so complaints and delays got debated internally rather than fixed quickly, and workers experienced the factory as a set of rules and inspections imposed on them rather than a business they served.
Reorganizing departments more efficiently, or adding better project management to coordinate handoffs between them, would have kept the fundamental problem intact: whoever a customer called still couldn't act alone, because authority stayed with functional managers rather than the people actually touching that customer's product. Zobrist's diagnosis was that the structure itself, not the people staffing it, was generating the friction — which meant the fix had to be structural too.
what everyone would do
The standard fix for cross-department friction is better coordination — more project managers, clearer handoff protocols, tighter inter-departmental SLAs — which leaves the underlying functional silos intact and simply adds more process on top of the structure causing the friction.
what they saw
Customer friction wasn't a coordination failure, it was the structure: nobody could act for a customer alone because authority followed function, not relationship. Zobrist removed the need to coordinate at all.
the move
Zobrist dissolved FAVI's functional departments into "mini-factories" — self-contained teams of 15 to 35 people each dedicated to a single customer or product family (a Volkswagen team, a Volvo team, a water-meter team), with its own machines, its own scheduling, and direct authority to deal with that customer's engineers without escalating through management. He abolished the HR department, the time clocks, and locked tool cribs, betting that workers who owned a whole customer relationship didn't need to be monitored like workers executing someone else's instructions. Team leaders were elected by their teams rather than appointed from above, and mini-factories set their own work rhythms as long as they hit delivery commitments to their customer.
why it works
A mini-factory dedicated to one customer collapses the handoffs a functional structure requires, because the same small team plans, makes, and ships that customer's parts without needing sign-off from a separate department. Removing time clocks and HR gatekeeping works because surveillance exists to manage people who don't own the outcome; once a team's income and reputation are tied directly to one customer's satisfaction, external monitoring becomes redundant with the team's own stake in the result.
the payoff
FAVI became Europe's leading gearbox-fork supplier, won 50% of the European market, and ran three decades without a single layoff.
where it breaks
The model needs a product mix with genuinely separable customers or product families — it can't dissolve cleanly if most orders require shared, scarce equipment across teams. It also depends on a leader willing to give up the control functional hierarchy provides, teams mature enough to self-schedule without external discipline, and a customer base stable enough that dedicating a team to one account doesn't leave it idle when that account's volume drops.
what came after
FAVI became a widely cited European case of "liberated company" management, documented extensively through L'École de Paris du management's session transcripts and later popularized internationally by works on self-management, influencing a generation of French and European manufacturers experimenting with dissolving functional hierarchy into customer-facing autonomous teams.
references
- [1]The Favi foundry: a world leader which trusts its employeesL'École de Paris du management, 2013ecole.org