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Jo westh, confiance

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  • 1. Developing, engaging and motivating your people Getting your culture right: Exploding the myth of the high performance culture
  • 2. Developing, engaging and motivating your people
  • 3. Developing, engaging and motivating your people The Australian industry environment presents both challenges and opportunities … The thermal coal industry has suffered serious deterioration of cash cost performance over the last 7 years The capital cost of thermal coal projects is now 60% less competitive than the rest of the world The mining industry has given up all the productivity gains of the ‘80’s & 90’s in the last 10 years The majors (Xstrata; BHP; Rio) are all throttling back their coal programs
  • 4. Developing, engaging and motivating your people Australia’s thermal coal industry has faced escalating operating costs since the mid 2000’s … Position on cost curve (quartile) % tonnes production In 2006 more than 60% of our thermal coal mines cash costs were 2nd quartile or better … today less than 30% of our mines are Q2 or better
  • 5. Developing, engaging and motivating your people Since 2000 the Australian mining industry has given up all of the productivity gains of the previous 15 years … Multifactor Productivity (index=100 in ‘09-’10)
  • 6. Developing, engaging and motivating your people How to respond… Clearly articulated strategy Hire talented leaders who align with the strategy Build a high performance organisational culture to create a new industry benchmark Pursue innovative solutions … unshackled from past practices Underpinned by sound management practices and strategic risk controls
  • 7. Developing, engaging and motivating your people High Performance Culture •A high performance culture is evident in a company with a unique personality and soul, and with a passion for performance - so that people make the right decisions and do the right thing no matter what position they hold in the business. •The value of a well-planned and well-executed high performance culture can be transformational.
  • 8. Developing, engaging and motivating your people Importance of Alignment Strategy The key driver is and must be strategy, the fundamental focus of your organisation taken to gain and sustain a significant competitive advantage in the marketplace. Culture The way that an organisation conducts its activities in order to succeed. Leadership Creating a vision and direction for the organisation and mobilising people to accomplish them. Effectiveness will be enhanced when these are in alignment, when all the elements of a company work together in concert within the context of the company’s core ideology and the type of progress it aims to achieve. Alignment Strategy Culture Leadership
  • 9. Developing, engaging and motivating your people Introducing “Longwall Leaders” The Vision “To be the largest underground thermal coal miner in Australia, safely producing 20 million tonnes per annum, using sophisticated longwall technology and a very lean highly productive workforce.” Longwall Leaders
  • 10. Developing, engaging and motivating your people Insights into strategy Where does the businesses strategy lie in terms of this framework? Development and enrichment Product Superiority EXPERTISE • Strategy is to be the best (not necessarily the biggest) •Offer the best product • Continual innovation, year after year Uniformity and Excellence UNIFORMITY • Strategy is to achieve market dominance • Low price and high volumes • Quality of product is not the issue, it’s all about market share •Strategy is to achieve synergy with the customer • Deliver what the specific customer wants, not what the market wants •We have the best and tailored solutions for you RELATIONSHIP Client Relationship ENRICHMENT • Strategy is to help customer realise their potential •Raise the human spirit (e.g., many non for profit, charities )…
  • 11. Developing, engaging and motivating your people
  • 12. Developing, engaging and motivating your people Insights into culture Types of business culture RELATIONSHIP Synergistic Customer relationship High customisation UNIFORMITY Market share dominance Structured/procedure driven Distribution intensive Safety/life or death EXPERTISE Create market niche Constant innovation to stay ahead Superiority Excellence ENRICHMENT Growth of customer Realisation of ideals Values Higher order purposes Change the world as we know it
  • 13. Developing, engaging and motivating your people Insights into leadership Team Leader Chief UNIFORMITY Firm Assertive Commanding Authoritative Directive RELATIONSHIP Coach Participative Builds trust Perfectionist EXPERTISE Assertive Convincing Standard setter Task master… Change Agent ENRICHMENT Catalyst Builds commitment Steward How is leadership exercised within the business and how should it be?
  • 14. Developing, engaging and motivating your people
  • 15. Developing, engaging and motivating your people Insights into leadership Team Leader Chief UNIFORMITY Firm Assertive Commanding Authoritative Directive RELATIONSHIP Coach Participative Builds trust Perfectionist EXPERTISE Assertive Convincing Standard setter Task master Change Agent ENRICHMENT Catalyst Builds commitment Steward How is leadership exercised within the business and how should it be?
  • 16. Developing, engaging and motivating your people Back to high performance!?! A high performance culture fits with which one of these models? Beware the one size fits all approach or the “flavour of the month” initiatives
  • 17. Developing, engaging and motivating your people Tailored interventions •So once you understand your strategy, define your culture and align your leadership, building interventions to support your organisation’s uniqueness falls into place!
  • 18. Developing, engaging and motivating your people Organisational structure ENRICHMENT Unstructured, circular Hierarchy UNIFORMITY RELATIONSHIP Semi autonom ous work groups Type name here Type title here Type name here Type title here Type name here Type title here Type name here Type title here EXPERTISE Matrix, project based
  • 19. Developing, engaging and motivating your people Why do high performance organisations fail to deliver high performance? 1.The initiative or intervention is not tailored to suit the uniqueness of the organization with the need. 2.Business leaders grab the label of “High Performance Culture and then ignore the many other initiatives needed to support the label.
  • 20. Developing, engaging and motivating your people Longwall Leaders
  • 21. Developing, engaging and motivating your people Insights into strategy Where does Longwall Leaders lie in terms of this framework? Development and enrichment Product Superiority EXPERTISE • Strategy is to be the best (not necessarily the biggest) •Offer the best product • Continual innovation, year after year (e.g. Microsoft) Uniformity and Excellence UNIFORMITY • Strategy is to achieve market dominance • Low price and high volumes • Quality of product is not the issue, it’s all about market share •Strategy is to achieve synergy with the customer • Deliver what the specific customer wants, not what the market wants •We have the best and tailored solutions for you (e.g. Professional Services firms) RELATIONSHIP Client Relationship ENRICHMENT • Strategy is to help customer realise their potential •Raise the human spirit (e.g., many non for profit, charities )
  • 22. Developing, engaging and motivating your people But………. • New project costing billions, no revenue • Can’t pay top $ • Lack of leadership talent
  • 23. Developing, engaging and motivating your people Bureaucracy going mad!
  • 24. Developing, engaging and motivating your people Communication becomes unwieldy
  • 25. Developing, engaging and motivating your people Training disappears
  • 26. Developing, engaging and motivating your people Then the industry nose dive! •Co leaders get nervous •Cost cutting occurs •Redundancies, loss of privileges •Office closures •Cut suppliers and contractors •Morale plummets •Third party intervention increases as management lose trust •Productivity declines •Turnover of staff increases So much for our high performance organisation!
  • 27. Developing, engaging and motivating your people Beware your reputation outside your company! •Suppliers and contractors become wary •LL hammers them to cut prices and then take ages to pay bills •Treating suppliers as second class citizens translates to a degraded service and a list of companies who refuse to to provide the required services So much for our high performance organisation!
  • 28. Developing, engaging and motivating your people Summary of the LL plight •Started off fine but….. •It was only words, actions didn’t support the words •They didn’t live it •They didn’t measure success •And they didn’t reward any behaviour that supported the high performance principles
  • 29. Developing, engaging and motivating your people Twelve steps to maximise the alignment of strategy, culture and leadership and build high performance •Articulate the strategy •Make sure the culture matches the strategy •Make sure the leaders’ style is in line with the strategy •Design an organization structure that supports the business strategy – in the case of LL a flat but hierarchical structure with clear chain of command – “rightsize” in good and bad times •Identify simple performance indicators that will secure the desired level of high performance and cascade down the organisation •Recruit well – secure the best people and offer an appropriate reward scheme •Include significant at risk rewards payable on the achievement of the high performance targets •Communicate constantly– regular, structured communications to inform and motivate – good, bad, even no news •Measure everything – Productivity, Morale, Job satisfaction, Performance, Turnover •Provide training and opportunities for development •Have the guts in bad times to invest in your people •Develop positive and respectful partnerships with suppliers •KEEP IT SIMPLE
  • 30. Developing, engaging and motivating your people Tips! •Don’t just grab the label of “High Performance Culture and then ignore the many other initiatives needed to support the label •Tailor the initiative or intervention to suit the uniqueness of your organisation...
  • 31. Developing, engaging and motivating your people
  • 32. Developing, engaging and motivating your people CONFIANCE Confiance Developing, engaging and motivating your people