£10million Growth in Turnover Through Cultural Change Barbara Hankins MSc Catalyst Management Decisions Ltd ‘ Opening the Door on Potential through Organisational Change’ Tel: 01299 896911

Manufacturing SME - Issues Suppliers to the automotive, telecoms and electronics markets Subject of MBO 1984, purchased by small plc in 1989 Operating in highly competitive, global market Significant market share but loss making due to high manufacturing costs

Suppliers to the automotive, telecoms and electronics markets

Subject of MBO 1984, purchased by small plc in 1989

Operating in highly competitive, global market

Significant market share but loss making due to high manufacturing costs

Manufacturing SME - Barriers Inflexible shop-floor culture Restrictive working practices Resistance to Change ‘Them and Us’ attitude

Inflexible shop-floor culture

Restrictive working practices

Resistance to Change

‘Them and Us’ attitude

Manufacturing SME - Challenges To improve margins whilst staying competitive, not just cutting costs Culture change to reflect the values of a growing market focused organisation Introduction of flexible working practices to improve efficiency and provide resources to introduce new added-value products

To improve margins whilst staying competitive, not just cutting costs

Culture change to reflect the values of a growing market focused organisation

Introduction of flexible working practices to improve efficiency and provide resources to introduce new added-value products

Building an Enterprise Culture Recruiting a Flexible Workforce Shortage of skilled recruitment pool Diverse recruitment strategy required Targeted people with the values and natural skills the company now required Right attitude and flexibility – critical New company vision fundamental to recruitment process

Shortage of skilled recruitment pool

Diverse recruitment strategy required

Targeted people with the values and natural skills the company now required

Right attitude and flexibility – critical

New company vision fundamental to recruitment process

Building an Enterprise Culture Infrastructure to Support New Values Focus on company objectives Changing team values from ’entrenched’ to ‘committed and communicative’ HR policies to reflect/support new values Design/Introduction of new HR Procedures HR Framework for Supervisory Staff Harmonisation of all employees Terms and Conditions

Focus on company objectives

Changing team values from ’entrenched’ to ‘committed and communicative’

HR policies to reflect/support new values

Design/Introduction of new HR Procedures

HR Framework for Supervisory Staff

Harmonisation of all employees Terms and Conditions

Building an Enterprise Culture Developing a Multi-Skilled Workforce Job Rotation Scheme targeting specific skill-sets essential for product ranges for Top 10 customers Designed/introduced Employee Flexibility Report which identified rising stars and T&D competency Report subsequently formed part of the Automotive Industry Quality Award process Designed/developed computerised, technical Library, the ‘centre’ for the core technical competence of the company

Job Rotation Scheme targeting specific skill-sets essential for product ranges for Top 10 customers

Designed/introduced Employee Flexibility Report which identified rising stars and T&D competency

Report subsequently formed part of the Automotive Industry Quality Award process

Designed/developed computerised, technical Library, the ‘centre’ for the core technical competence of the company

Building an Enterprise Culture Reinforcing Culture through Communication Introduced company newsletter Editorial team drawn from staff and shop floor personnel

Introduced company newsletter

Editorial team drawn from staff and shop floor personnel

Building an Enterprise Culture Supporting Management Development through Mentoring Mentored newly promoted Production Manager over a period of a year Achieved transformational behaviour change

Mentored newly promoted Production Manager over a period of a year

Achieved transformational behaviour change

Building an Enterprise Culture – New Motivation Drivers Supportive Leadership Clear objectives Team based Co-operative Open and Participative High employee contribution High level of responsibility to achieve their part of the organisations goals

Supportive Leadership

Clear objectives

Team based

Co-operative

Open and Participative

High employee contribution

High level of responsibility to achieve their part of the organisations goals

Results 1990 – Loss making £500,000 1992 – Returned to profit Continued to grow - turnover rising from £7million in 1993 to £17million in 1999 CMD involved Feb 1990 to July 1993 Attendance rates in workforce rose from 90% to 98.5% in one year In 1999 shop-floor personnel retention rate maintained at 64% Successful culture change from ‘systems driven’ to ‘customer focused’

1990 – Loss making £500,000

1992 – Returned to profit

Continued to grow - turnover rising from £7million in 1993 to £17million in 1999

CMD involved Feb 1990 to July 1993

Attendance rates in workforce rose from 90% to 98.5% in one year

In 1999 shop-floor personnel retention rate maintained at 64%

Successful culture change from ‘systems driven’ to ‘customer focused’