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.
Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
‘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)
CASE STUDY #1. LION-NATHAN AUST.
Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
‘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)
CASE STUDY #1. LION-NATHAN AUST.
Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
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)
CASE STUDY #1. LION-NATHAN AUST.
Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
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)
CASE STUDY #1. LION-NATHAN AUST.
Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
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 ?
CASE STUDY #1. LION-NATHAN AUST.
Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
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)
CASE STUDY #1. LION-NATHAN AUST.
Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
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)
CASE STUDY #1. LION-NATHAN AUST.
Catherine Fox (2003) ‘The Born-Again CEO.’ Australian Financial Review Boss Magasine. May p.40-43
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.
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 ?