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Smart Manufacturing Leadership Strategies: Lessons from Ronnie Darroch

Arch Systems
July 10, 2025 3 min
Smart Manufacturing Leadership Strategies: Lessons from Ronnie Darroch

Culture Before Connectivity: Smart Manufacturing Leadership Strategies from Ronnie Darroch

Smart manufacturing has become synonymous with digital transformation and AI adoption, but as Ronnie Darroch reminds us in the latest episode of The Manufacturing Intelligence Podcast, the real differentiator isn’t the technology, it’s the people.

With nearly four decades of experience, including executive roles at Plexus, Jabil, Seagate, and Motorola, Ronnie offers a refreshingly honest take on what makes transformation efforts succeed or fail.

 

Where the ROI Shows Up—Fast

Ronnie doesn’t mince words: “Getting the data is the easy part. But your culture and your management process to drive improvement are where you get the value.”

He advocates an 80/20 approach that flips most smart manufacturing strategies on their head. Instead of focusing 80% of your energy on systems integration and only 20% on change management, Ronnie urges leaders to prioritize culture-building and process discipline.

 
The 80-20 Rule That Leaders Get Wrong
 
 

“If I was giving you an 80/20 rule,” he said, “I would spend 80% of my time on that [culture and process] and 20% on the connectivity from end to end. No involvement equals no commitment.”

It’s a rule rooted in his experience leading large, diverse teams across global operations and in observing firsthand where digital initiatives tend to fall short.

 

Why Discretionary Effort Is Your Competitive Advantage

Throughout the episode, Ronnie returns to one central idea: discretionary effort. It’s the extra energy people choose to give, not because they have to, but because they want to.

 
The 80-20 Rule That Leaders Get Wrong
 
 

He shared examples of earning team trust early in his career, like spending time on the warehouse floor to understand the job before trying to manage it, and reinforced that authentic relationships, not command-and-control tactics, unlock the best results.

 

Metrics Should Come with a Warning Label

Ronnie also challenges conventional thinking around KPIs. He introduced the idea of a Hippocratic oath for metrics management: “Do no harm.”

In one story, he revealed how misaligned incentives led a night shift team to remove materials from production to boost inventory accuracy scores, unknowingly stalling output.

“Is your metrics system making you more competitive?” he asked. “Or are you just measuring things because you always have?”

For manufacturers investing in AI, data platforms, and continuous improvement programs, it’s a critical question. The right metrics must align with real-world performance, not just internal dashboards.

 

Trust Is the Ultimate Currency, With Employees and Customers

Ronnie’s philosophy also extends to customer relationships. In an industry where margins are tight and options are plenty, customer loyalty is earned, not bought.

The 80-20 Rule That Leaders Get Wrong
 
 

He believes collaborative problem-solving beats contractual enforcement every time. And internally, he builds loyalty the same way, with low-maintenance, high-trust teams that share both accountability and credit.

 

Scaling Innovation Means Starting With People

While the conversation touched on AI governance, global collaboration, and governance frameworks, the through-line was always human. When asked about scaling transformation globally, Ronnie laid out a clear approach:

  • Invest in face-to-face kickoff meetings to build trust
  • Rotate governance calls fairly across time zones
  • Leverage social and cultural diversity to unlock creative synergy
  • Celebrate milestones to avoid burnout
  • Seek first to understand before implementing change

He summed it up simply: “Global collaboration is hard. And anyone who says otherwise probably hasn’t done it.”

 

Why This Episode Matters

If you’re responsible for modernizing a factory, leading an operations team, or scaling AI adoption, this episode will challenge your assumptions. It’s not just about systems, data, or dashboards; it’s about people.

Ronnie’s stories, from being promoted to department head at 24 to leading thousands across continents, are rich with insight, humor, and humility. Whether he’s diagnosing broken processes or broken trust, his approach is always thoughtful, candid, and practical.

Listen to the full episode to hear how one of manufacturing’s most seasoned leaders built high-performing teams, tackled digital transformation, and always came back to the same principle: treat people well, and they’ll do their best work.

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