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Removing the Barriers to
Potential
Presentation Title HerePresented to: Client Name Here
00 Month 2013
Some sad Facts about Downsizing
• Two-thirds of companies that downsize end up doing it again a year later
• Stock prices of the companies that downsized during the 1990s actually lagged the industry average a
decade later
• Less than half of the companies achieved their cost-cutting goals and even fewer met operating
objectives such as improved productivity
• Lost trust in the capability of senior management to lead the company
• 74 percent of senior management said that morale, trust and productivity suffered after downsizing
• Half of the 1468 companies indicated that productivity deteriorated after downsizing
• 75% of companies were found to be worse after downsizing than they were before
• 91% of the companies failed to achieve desired results in overall improvements
How can a Catastrophe be avoided?
• 9% of companies after down-sizing and re-engineering reported an Improvement in Effectiveness
• Implemented Extensive Organisational Culture / Engagement Programs to Work with the Survivors
• Downsizing (M&A et. al.) attempts which failed to implement a strong Organisational Culture resulted in Cynicism, Frustration, loss of trust and Deterioration in Moral among Employees
Positive Affects of a strong Organisational Culture
Change Parameter 4 years ago Now
Employees 5000 2500
Absenteeism 20% 2%
Unresolved grievances 2000 0
Total annual grievances 5000 2
Strikes 4 0
Cost in comparison to a key competitor 30% higher The same
Productivity Doubled
Business Culture Pyramid
Employee Engagement
Productivity (Workplace) Culture
Management Culture
Organisational Culture
Organisational Culture consists of FOUR cultural layers
Organisational Culture: Definition
Organisational Culture is:
the system of publicly and collectively accepted meanings operating for a given group at a given time.
These meanings may include:• particular values
• beliefs
• language
Values, beliefs and language are limits within which everyone can be expected to behave
Language Perception
Behaviour Action Change
Management Culture
Management Culture is the system of management and leadership
practices, functions and methods performed by managers consistently in
line with organisational culture values:
• Communication
• Planning
• Feedback
• Controls
• Policies and procedures
• Coaching, etc.
Managers act as an intermediary for organisational culture values.
Without the effective management culture employees always will be
detached from the values of the organisation
Productivity Culture
• Productivity (workplace) Culture is a set of actions in
the organisation directed at creating all necessary
conditions for an employee to be effective et work:
• Work conditions (all resources required, tools, cleanness, light,
food, etc.)
• Individual development conditions (opportunities to master
new profession, training and learning opportunities, career
growth)
• Support from managers (respects, management attitude, clear
tasks, constant feedback, positive feedback, fair appraisal, etc.)
Employee Engagement
9
DRIVERS OF EMPLOYEE ENGAGEMENT
Impact of Culture on Employee Engagement and Performance
10
Mining & Quarrying 48%
Finance, Insurance, Real Estate 38%
& Business Services
Restaurants & Hotels 38%
Construction 35%
C om m unity, Socia l & Personal Services 34%
Agricultu re, H un ting, Forestry & F ishing 34%
Wholesale & Retail Trade 33%
Electricity, Gas & Water Supply 32%
Manufacturing 32%
Transport, S torage & C om m unica tion 30%
10% 20% 30% 40% 50%
0%
Strong Business Culture
Business culture enhances performance only if the culture is
"strong" and possesses distinctive "traits” which distinguish the
organisation from other less productive or less profitable
organisations.
“Strong culture" is synonymous to having an effective
organization with excellent management and high performing
productivity (workplace) culture. A corporate culture can be
considered strong if it meets two principles
Strong Business Culture: Two Principles
Principle 1: In an organisation that is undergoing a successful change, the
desired values of top management must be closer to the desired
values of lower management and employees, as compared to an
organisation that is undergoing an unsuccessful change
Principle 2: In an organisation that is undergoing a successful phase, the
evaluation of current application of the values in the organisation
in the perception of both top management and lower management
must be smaller, as compared to an organisation that is undergoing an
unsuccessful phase.
Business Culture Development: STAGE 1
•Map the current type of business culture (organisational values,
management culture, productivity culture, employee
engagement)
• Identify discrepancies in the business culture’s perceptions
across the levels and various units
• Identify a presence of cultural congruence (differences in
culture between various organisational units and levels of
hierarchy as compliance with TWO CULTURAL PRINCIPLES
Business Culture Development: STAGE 1
Map the current culture profile: Productivity (Workplace) Culture
Opportu
nity M
aste
r Pro
fess
ion
Strict
Inst
ruct
ions
Wel
l org
anis
ed O
perat
ions,
in d
etai
ls
Wag
es s
yste
m p
erfe
ct
Mas
ter a
new
Pro
fess
ion
Info
rmat
ion E
xchan
ge
Effici
ent O
pportune
Decis
ions
Intia
tive
enco
uraged
Caree
r Dev
elopm
ent &
Adva
ncem
ent
Vario
us fo
rms
of info
rmat
ion
Emplo
yees
par
ticip
ate
in d
ecis
ions
Emplo
yees
good re
latio
nship
Work
place
s eq
uipped
org
anis
ed
Proble
ms
gettin
g info
rmat
ion
Results
' Est
imat
ion P
rofe
ssio
nal
Relat
ions
with
man
agem
ent
Every
thin
g for w
ork
No pro
blem
s to
talk
to m
anag
ers
Penal
mea
sure
s ex
ceptio
ns
Attentio
n to in
divid
ual d
iffer
ence
s
Deman
ding W
ork
Man
ager
s/w
orker
s co
ntact
enco
uraged
Conflict
s so
lved
fairl
y
Zeal t
o work
aw
arded
Work
load
optim
al
Deleg
atio
n of a
uthorit
y
Cooperat
ion re
spec
t pre
vail
Aim a
t innova
tion
Proud o
f Com
pany
4
5
6
7
8
9
10
Business Culture Development: STAGE 1
• Identify discrepancies : in regard to a manifestation of productive culture elements in the organisation and deviations in perception between managers and workers
3
4
5
6
7
8
9
10
WorkersManagers
Business Culture Development: STAGE 1
• Identify discrepancies: Example of deviations in assessment of management culture between managers and workers.
Work Communication Management Motivation
62.40%
54.80%
61.30%59.70%
75.30%
66.50%
75.40%
71.30%
WorkersManagers
Business Culture Development: STAGE 1
• Identify management culture congruence among different units of the organisation
Strict
Inst
ruct
ions
Info
rmat
ion
Excha
nge
Vario
us fo
rms
of in
form
atio
n
Probl
ems
getti
ng in
form
atio
n
No pr
oble
ms
to ta
lk to
man
ager
s
Man
ager
s/wor
kers
con
tact
enc
oura
ged
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
Management Culture: Communication Category
Section 20 Section 29 Section 7 Section 12
Business Culture Development: STAGE 2
The purpose of Developing the Business Culture Framework is
to:
• Identify the business culture that employees think should be
developed to match the current demands and challenges
• Develop a congruent vision of employees in regard to several
cultural criteria that will support organisational changes to
become more productive and efficient
• Facilitate change implementation
Business Culture Development: STAGE 2
Cultural Considerations that vary by Industry:
• Is the Workplace well structured or informal?
• Is work strictly governed by Procedures
• Do operations need to be coordinated across the Enterprise or can units function well
independently?
• Or Rules and Policies well documented and adhered or do managers have autonomy?
• What are the long-term Goals of the Organisation?
• What is the definition for success in the Enterprise?
• Is Job Security an important factor in the industry or do Employees move freely
between jobs?
Business Culture Development: STAGE 2
Identify the business culture that employees think should be developed
to match the current demands and challenges
• Analyse the results of the mapping exercise in relation to the
preferred culture profile
• Compare with the current culture profile
• Conduct the workshops to develop congruent cultural values
across the organisation using the results of the analyses
Business Culture Development: STAGE 3
Develop the implementation plan of actions that will help cover
the gap between the agreed congruent values and the current
culture profile
• For each discrepancy between levels and units in
organisational values, management culture, productivity
culture and employee engagement specific actions are
identified
• All actions must be visual and obvious
• Audit mechanisms for monitoring discrepancies are established
• .
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