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KNOWLEDGE MANAGEMENT LEADERSHIP FORUM 27 NOVEMBER 2003 Cooper’s Inn, melbourne. EXPLORING KM CASE STUDIES LION NATHAN AUSTRALIA- CULTURE TURNAROUND TOWARDS COLLABORATION McKINSEY GERMANY - 30 COMPANY RETURN-ON-INVESTMENT STUDY FACILITATOR : Spiro Raftopoulos, Director.
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KNOWLEDGE MANAGEMENT LEADERSHIP FORUM 27 NOVEMBER 2003Cooper’s Inn, melbourne EXPLORING KM CASE STUDIES • LION NATHAN AUSTRALIA- CULTURE TURNAROUND TOWARDS COLLABORATION • McKINSEY GERMANY - 30 COMPANY RETURN-ON-INVESTMENT STUDY FACILITATOR : Spiro Raftopoulos, Director
INTRODUCTIONTHEME : CULTURE CHANGE MANAGEMENT Problem of KM Ownership‘Knowledge work is not being actively cultivated’ - Thomas Davenport 2002 Right Culture is Critical “It’s the playing surface of the game.” Design One ?
CASE STUDY #1. LION-NATHAN AUSTRALIA - CULTURE TURNAROUND TOWARDS COLLABORATION RESOURCE Researcher : Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
CASE STUDY #1. LION-NATHAN AUSTRALIA - CULTURE TURNAROUND TOWARDS COLLABORATION • Australian-Owned • 2,500 Employees • 30 + Beer Variations Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
CASE STUDY #1. LION-NATHAN AUST. 1997 INCOMING CEO REALISED... • Poor Financial Performance • ‘Lacklustre Share Price’ • Dog-Eat-Dog Internal Relationships. Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
CASE STUDY #1. LION-NATHAN AUST. ‘The company had a culture that needed a serious overhaul.’ Solution : USE HR TOOL Improve management behaviours - 360 Degree Feedback Tool by Human Synergistics International (Life Styles Inventorytm) Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
CASE STUDY #1. LION-NATHAN AUST. ‘The company had a culture that needed a serious overhaul.’ Example (AshQuarry Productions) Coaching Dimension When coaching another person, effectively explains and demonstrates how to do the task ... 1-2-3-4-5(High) When coaching another person, ensures they have acquired the skill by observing them and giving constructive feedback... 1-2-3-4-5(High) Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
CASE STUDY #1. LION-NATHAN AUST. CEO Epiphany ‘If you expect people who work for you to change, then you must also. And it has to be real change, not just rhetoric.’ ‘It’s about changing the nature of the organisation, and that can only happen if the person at the top has to lead the charge themselves.’ (p.40) Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
CASE STUDY #1. LION-NATHAN AUST. CEO’s 1997 Profile ‘I was very task-oriented and competitive… I was demanding and insensitive…scored highly on perfectionism…(argumentative)… and low rating in areas related to humanistic/encouraging and affiliative behaviour. Main leadership style was aggressive-defensive.’ (p.40) Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
CASE STUDY #1. LION-NATHAN AUST. CEO’s 1997 Profile ‘I was very task-oriented and competitive… I was demanding and insensitive…scored highly on perfectionism…(argumentative)… and low rating in areas related to humanistic/encouraging and affiliative behaviour. Main leadership style was aggressive-defensive.’ (p.40) CEO’s reflection on his old profile ? Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
CASE STUDY #1. LION-NATHAN AUST. RESULTS ? End of 5 years…CEO ‘Received ‘high scores in constructive leadership style area, with more emphasis on people skills and self-actualising… remains competitive but one who is more sensitive and caring.’ (p.40) ‘It was bloody hard but I’m much more effective.’ (p.40) Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
CASE STUDY #1. LION-NATHAN AUST. RESULTS ? End of 5 years…Lion-Nathan CULTURE : ‘A rigorous process...We’ve created an environment where there is frank feedback.’ ‘(The culture) has changed, and for the better. Performance has improved. We are a better company and a better performing company.’ (p.42) Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
CASE STUDY #1. LION-NATHAN AUST. RESULTS ? End of 5 years…Lion-Nathan PERFORMANCE TURNAROUND :‘ • 30 September 2003 (Company Release News) • Net Profit $180 Mill. Up 11.2% • Annual Earnings Per Share 5 years 13.2 % • Total Return to Shareholder 5 years 17 % annualised. Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
CASE STUDY #1. LION-NATHAN AUST. • CULTURE CHANGE MANAGEMENT • Careful planning. • Worked on management behaviour • Used 360-degree feedback tools • properly over time. • Managers modelling desired • behaviour. Personal change. • Improved company performance.
CASE STUDY #1. LION-NATHAN DISCUSSION GROUPS • CULTURE CHANGE MANAGEMENT • Careful planning. • Worked on management behaviour • Used 360-degree feedback tools • properly over time. • Managers modelling desired • behaviour. Personal change. • Improved company performance. QUESTIONS 1. WHAT INSIGHTS HAVE YOU GAINED ? (LEARNINGS, ISSUES)2. STEPS YOU HAVE TAKEN OR WOULD TAKE TO INFLUENCE THE CULTURE OF YOUR ORG ?