Building Block: Enabler

This building block consists of 22 criteria and 44 characteristics.

The BEST-assessment of the enabler is accomplished in four steps: Plan, Do, Check, and Act.

The highest score can be assigned to the Lion Nathan case study for nearly all characteristics.

Figure 5.4 Relationship between enabler, results, and learning.

5.7.72.7 Analysis of the Plan Step of the BEST-Method

The main subject of the Lion Nathan case study is the organization’s cultural transformation. This is illustrated through numerous results driven by the OCI®s and LSI Is. These can be considered as process results. Normally we also expect to see output and outcome (impact) results. However, the accompanying business and customer results are only briefly described.

A discussion of criterion per criterion follows (see Figure 5 5).

Analysis of the Plan Step of the BEST-Method

In 1996 Lion Nathan’s top management decided to develop a brand strategy, reinforce the sales and marketing function, and to change and develop the organizational culture. The results of the latter (OCI® and LSI) are clearly described in the case study. The results of the other strategic goals are not. The processes reflect common sense and are well thought out (clearly linked to organizational strategy).

Relative to the third bullet under “description,” we cannot determine whether this 1996 strategy is a complete Lion Nathan strategy because we don’t see goals for shareholders, customers, or consumers. It is also not clear whether the strategy of Lion Nathan changed from 1996 until 2011.

5.1.12.1.2 Stakeholders

The text of the case study mentions the following stakeholders: consumers, customers, investors, suppliers, partners, and community.

The main stakeholders in this case study are shareholders, employees, and customers. Only some results for these three stakeholders are included in the case study.

Enabler assessment Plan for case study Lion Nathan

Figure 5.5 Enabler assessment Plan for case study Lion Nathan.

It would be helpful to check these data in more detail on-site to verify how segmentation and deployment of the approaches are done.

5.1.12.1.3 Competency Assessment and Development

Lion Nathan has developed nine competencies which are used in the process of assessing individuals and designing development plans. These competencies were developed in conjunction with the leadership team to ensure a high degree of ownership and are grouped according to the C x R framework (product of Competencies and Results). For example:

Competency

■ Developing solutions

■ Personal awareness

■ Coaching and developing others

Results

■ Achieving results

■ Functional excellence

In 2006, as part of their evolving approach, Lion Nathan changed the framework to Behaviors X Results, which served to reinforce the underlying principle.

5.1.12.1.4 Type of Indicators

Lion Nathan makes use of two types of indicators to monitor the processes:

  • 1) Change of leadership styles and company culture (LSI 1 and OCI®)
  • 2) Business indicators (revenue, EBITDA', Net Profit after Taxes) and customer results

However, there is no evidence in the text whether these indicators are deployed throughout the whole organization. This is probably the case since otherwise it would be nearly impossible to achieve a strong Constructive company culture in 2003 and beyond.

EBITDA, Earnings Before Interest Taxes Depreciation and Amortization. Income before interest and taxes and depreciation and amortization have been subtracted. This is an indicator of a company's profitability that is watched by investors. Source: https://www.definitions.net/definition/EBITDA accessed April 23, 2020.

5.1.12.1.5 Deployment and Segmentation

The text of the case study does not give details about deployment (are the methods and KPIs applied to the lowest levels at all work units?) and segmentation (are results achieved in all work units of Australia and New Zealand and applicable to all products and services?) of the methods applied. This would be a major point to check during a site visit.

Probably the deployment and segmentation are done, because creating a global Constructive company culture is not possible if not everyone in every team is participating in applying the same methods. Nevertheless, there is no written evidence of it.

It is a pity that we do not have OCI® and LSI examples for the different regions (New Zealand and Australia), nor the different business units like breweries and wineries. This would prove how well the culture change has taken place across the whole company.

5.7.72.2 Analysis of the Do Step of the BEST-Method

Analysis of the Do Step of the BEST-Method

There is no description of how the Human Synergistics method is applied in the daily work of the different departments and business units. We assume that Lion Nathan followed the methodology and general instructions of Human Synergistics which is described in Chapter 2 of the book In Great Company.

5.1.12.2.2 Cause and Effect

Many Best Practices have difficulty proving how results are caused by the approach applied. In the Lion Nathan case study, clear evidence of cause-effect is described: the personal thinking styles of the leaders have a tremendous impact on the company culture. This is nicely demonstrated in this case study.

The case study demonstrates not only a positive change in culture (from Defensive to Constructive) but also a positive trend in business results (Figure 5.6).

An overview of the assessment of the DO phase is illustrated in Figure 5.7.

Analysis of the Check Step of the BEST-Method

All criteria, except for audit, are well developed (Figure 5.8).

5.1.12.3.1 Adjustment and Learning

In the fifth phase of the case study, Review, they explain “lessons learned.” This is exceptional because, from our experience, most of the case studies

Figure 5.6 Outcomes associated with Life Styles Inventory™.

neglect to mention what they have learned. As a consequence of considering lessons learned, Lion Nathan benefits from the results and makes decisions for improvements in activities for the next steps of the project.

Over the years, Lion Nathan has reflected on each stage of its on-going transformation, and identified a number of insights and key learnings:

Figure 5.7 Enabler assessment Do for case study Lion Nathan

Figure 5.8 Enabler assessment Check for Lion Nathan case study.

■ CEO and leadership team must be involved and committed

■ Leaders are the key

■ Understand the current culture and the link to performance

■ Articulate a clear plan

■ Be consistent and focused in efforts over a long period (it’s a marathon, not a sprint)

■ Behavior change takes time and commitment

■ Congruence of behavior. Don’t say it if you’re not prepared to do it!

Important aspects of the company’s transformation

■ A set of assumptions that adopting a methodical, collaborative, and inclusive approach to problem solving was necessary to deliver the required insights and actions.

■ The journey of transformation was to define its core purpose and values as a company.

■ One of the best ways to motivate people to deliver great results is to inspire them to a cause, a sense of purpose - to help them see the significance of their work within the bigger picture. Core purpose, vision, and values are about direction and reason for being.

■ Individual change is a prerequisite of cultural transformation. Things don’t transform, people do.

■ A great culture is achieved when high levels of emotional connection (engagement) between an individual, their role, their leader, and the organization are developed.

■ Set clear expectations, make sure the right people are in the right roles, communicate the vision, and integrate values into your people management systems. The secret ingredients are consistency and sustainability.

■ Demonstrate a commitment to its espoused values and beliefs.

■ Formula for success = behavior X results.

All these aspects have been treated by Lion Nathan and have contributed to the success of the organizational culture change.

Analysis of the Act Step of the BEST-Method

Information and evidence are missing in the Resources and Knowledge and Experience criteria (Figure 5 9)-

In this case study the enabler is well developed, and much evidence is given. Let us now assess the results of the case study.

 
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