10million growth in turnover through cultural change2


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Case Study of major change programme through release of staff protential

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10million growth in turnover through cultural change2

  1. 1. £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
  2. 2. 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
  3. 3. Manufacturing SME - Barriers Inflexible shop-floor culture Restrictive working practices Resistance to Change ‘Them and Us’ attitude Copyright 1990/2013 Catalyst Management Dec 3
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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