KNOWLEDGE MANAGEMENT LEADERSHIP FORUM 27 NOVEMBER 2003 Cooper’s Inn, melbourne

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.




‘The company had a culture that needed a serious overhaul.’

Solution : USE HR TOOLImprove management behaviours - 360 Degree Feedback Tool by Human Synergistics International (Life Styles Inventorytm)



‘The company had a culture that needed a serious overhaul.’

Example (AshQuarry Productions)Coaching DimensionWhen coaching another person, effectively explains

and demonstrates how to do the task ... 1-2-3-4-5(High)

When coaching another person, ensures theyhave acquired the skill by observing them

and giving constructive feedback... 1-2-3-4-5(High)



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)



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 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 ?



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)



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)



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.


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 ?

Documents

KNOWLEDGE MANAGEMENT LEADERSHIP FORUM 27 NOVEMBER 2003 Cooper’s Inn, melbourne