10million growth in turnover through cultural change2
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
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3. Manufacturing SME - Barriers
Inflexible shop-floor culture
Restrictive working practices
Resistance to Change
‘Them and Us’ attitude
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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
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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
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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
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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
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8. Building an Enterprise Culture
Reinforcing Culture through Communication
Introduced company newsletter
Editorial team drawn from staff and shop
floor personnel
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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
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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
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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’
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