Transcript of "10million growth in turnover through cultural change2"
£10million Growth in Turnover Through Cultural Change Barbara Hankins MSc Catalyst Management Decisions Ltd‘Opening the Door on Potential through Organisational Change’ Email: Barbara@catalystforchange.co.uk Web: www.catalystmanagementdecisions.co.uk
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 Copyright 1990/2013 Catalyst Management Dec 2
Manufacturing SME - Barriers Inflexible shop-floor culture Restrictive working practices Resistance to Change ‘Them and Us’ attitude Copyright 1990/2013 Catalyst Management Dec 3
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 Copyright 1990/2013 Catalyst Management Dec 4
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 Copyright 1990/2013 Catalyst Management Dec 5
Building an Enterprise CultureInfrastructure 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 Copyright 1990/2013 Catalyst Management Dec 6
Building an Enterprise CultureDeveloping 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 ‘knowledge centre’ for the core technical competence of the company Copyright 1990/2013 Catalyst Management Dec 7
Building an Enterprise Culture Reinforcing Culture through Communication Introduced company newsletter Editorial team drawn from staff and shop floor personnel Copyright 1990/2013 Catalyst Management Dec 8
Building an Enterprise Culture Supporting Management Development through Mentoring Mentored newly promoted Production Manager over a period of a year Achieved transformational behaviour change Copyright 1990/2013 Catalyst Management Dec 9
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 Copyright 1990/2013 Catalyst Management Dec 10
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’ Copyright 1990/2013 Catalyst Management Dec 11
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