Case Study of major change programme through release of staff protential

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. 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. 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. 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. 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. 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
Copyright 1990/2013 Catalyst Management Dec
6

7. 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 ‘knowledge centre’ for the core
technical competence of the company
Copyright 1990/2013 Catalyst Management Dec
7

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. 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. 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. 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