Date post: | 26-May-2015 |
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Developing, engaging and motivating your people
Getting your culture right:
Exploding the myth of the
high performance culture
Developing, engaging and motivating your people
Developing, engaging and motivating your people
The Australian industry environment presents both
challenges and opportunities …
The thermal coal industry has suffered serious deterioration of cash cost performance over the last 7 years
The capital cost of thermal coal projects is now 60% less competitive than the rest of the world
The mining industry has given up all the productivity gains of the ‘80’s & 90’s in the last 10 years
The majors (Xstrata; BHP; Rio) are all throttling back their coal programs
Developing, engaging and motivating your people
Australia’s thermal coal industry has faced escalating
operating costs since the mid 2000’s …
Position on cost curve (quartile)
% tonnes production
In 2006 more than 60% of our
thermal coal mines cash costs
were 2nd quartile or better …
today less than 30% of our
mines are Q2 or better
Developing, engaging and motivating your people
Since 2000 the Australian mining industry has given up all
of the productivity gains of the previous 15 years …
Multifactor Productivity (index=100 in ‘09-’10)
Developing, engaging and motivating your people
How to respond…
Clearly articulated strategy
Hire talented leaders who align with the strategy
Build a high performance organisational culture to create a new industry benchmark
Pursue innovative solutions … unshackled from past practices
Underpinned by sound management practices and strategic risk controls
Developing, engaging and motivating your people
High Performance Culture
• A high performance culture is evident in a
company with a unique personality and soul,
and with a passion for performance - so that
people make the right decisions and do the right
thing no matter what position they hold in the
business.
• The value of a well-planned and well-executed
high performance culture can be
transformational.
Developing, engaging and motivating your people
Importance of Alignment
Strategy
The key driver is and must be strategy, the fundamental focus of your organisation taken to gain and sustain a significant competitive advantage in the marketplace.
Culture
The way that an organisation conducts its activities in order to succeed.
Leadership
Creating a vision and direction for the organisation and mobilising people to accomplish them.
Effectiveness will be enhanced when these are in alignment, when all the elements of a company work together in concert within the context of the company’s core ideology and the type of progress it aims to achieve.
Alignment
Strategy
Culture
Leadership
Developing, engaging and motivating your people
Introducing “Longwall Leaders”
The Vision
“To be the largest underground thermal coal miner
in Australia, safely producing 20 million tonnes per
annum, using sophisticated longwall technology
and a very lean highly productive workforce.”
Lon
gwall Le
ade
rs
Developing, engaging and motivating your people
Insights into strategy
Where does the businesses strategy lie in terms of this framework?
Development and enrichment Product Superiority
EXPERTISE
• Strategy is to be the best (not necessarily the biggest) •Offer the best product • Continual innovation, year after year
Uniformity and Excellence
UNIFORMITY
• Strategy is to achieve market dominance • Low price and high volumes • Quality of product is not the issue, it’s all about market share
•Strategy is to achieve synergy with the customer • Deliver what the specific customer wants, not what the market wants
•We have the best and tailored solutions for you
RELATIONSHIP
Client Relationship
ENRICHMENT
• Strategy is to help customer realise their potential
•Raise the human spirit (e.g., many non for profit, charities )…
Developing, engaging and motivating your people
Developing, engaging and motivating your people
Insights into culture
Types of business culture
RELATIONSHIP
Synergistic
Customer relationship High customisation
UNIFORMITY
Market share dominance Structured/procedure driven
Distribution intensive Safety/life or death
EXPERTISE
Create market niche Constant innovation to stay ahead
Superiority Excellence
ENRICHMENT
Growth of customer Realisation of ideals
Values Higher order purposes
Change the world as we know it
Developing, engaging and motivating your people
Insights into leadership
Team Leader Chief
UNIFORMITY
Firm
Assertive Commanding Authoritative
Directive
RELATIONSHIP
Coach Participative Builds trust
Perfectionist
EXPERTISE
Assertive Convincing
Standard setter Task master…
Change Agent
ENRICHMENT
Catalyst Builds commitment
Steward
How is leadership exercised within the business and how should it be?
Developing, engaging and motivating your people
Developing, engaging and motivating your people
Insights into leadership
Team Leader Chief
UNIFORMITY
Firm
Assertive Commanding Authoritative
Directive
RELATIONSHIP
Coach Participative Builds trust
Perfectionist
EXPERTISE
Assertive Convincing
Standard setter Task master
Change Agent
ENRICHMENT
Catalyst Builds commitment
Steward
How is leadership exercised within the business and how should it be?
Developing, engaging and motivating your people
Back to high performance!?!
A high performance culture fits with which
one of these models?
Beware the one size fits all approach or
the “flavour of the month” initiatives
Developing, engaging and motivating your people
Tailored interventions
• So once you understand your strategy, define
your culture and align your leadership, building
interventions to support your organisation’s
uniqueness falls into place!
Developing, engaging and motivating your people
Organisational structure
ENRICHMENT Unstructured, circular
Hierarchy
UNIFORMITY
RELATIONSHIP
Semi autonomous work groups
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EXPERTISE Matrix, project based
Developing, engaging and motivating your people
Why do high performance organisations fail to
deliver high performance?
1. The initiative or intervention is not tailored to
suit the uniqueness of the organization with the
need.
2. Business leaders grab the label of “High
Performance Culture and then ignore the many
other initiatives needed to support the label.
Developing, engaging and motivating your people
Longwall Leaders
Developing, engaging and motivating your people
Insights into strategy
Where does Longwall Leaders lie in terms of this framework?
Development and enrichment Product Superiority
EXPERTISE
• Strategy is to be the best (not necessarily the biggest) •Offer the best product • Continual innovation, year after year (e.g. Microsoft)
Uniformity and Excellence
UNIFORMITY
• Strategy is to achieve market dominance • Low price and high volumes • Quality of product is not the issue, it’s all about market share
•Strategy is to achieve synergy with the customer • Deliver what the specific customer wants, not what the market wants
•We have the best and tailored solutions for you (e.g. Professional Services firms)
RELATIONSHIP
Client Relationship
ENRICHMENT
• Strategy is to help customer realise their potential
•Raise the human spirit (e.g., many non for profit, charities )
Uniformity and Excellence
UNIFORMITY
• Strategy is to achieve market dominance • Low price and high volumes • Quality of product is not the issue, it’s all about market share
Developing, engaging and motivating your people
But……….
• New project costing billions, no revenue
• Can’t pay top $
• Lack of leadership talent
Developing, engaging and motivating your people
Bureaucracy going mad!
Developing, engaging and motivating your people
Communication becomes unwieldy
Developing, engaging and motivating your people
Training disappears
Developing, engaging and motivating your people
Then the industry nose dive!
• Co leaders get nervous
• Cost cutting occurs
• Redundancies, loss of privileges
• Office closures
• Cut suppliers and contractors
• Morale plummets
• Third party intervention increases as management lose trust
• Productivity declines
• Turnover of staff increases
So much for our high performance organisation!
Developing, engaging and motivating your people
Beware your reputation outside your company!
• Suppliers and contractors become wary
• LL hammers them to cut prices and then take
ages to pay bills
• Treating suppliers as second class citizens
translates to a degraded service and a list of
companies who refuse to to provide the required
services
So much for our high performance organisation!
Developing, engaging and motivating your people
Summary of the LL plight
• Started off fine but…..
• It was only words, actions didn’t support the
words
• They didn’t live it
• They didn’t measure success
• And they didn’t reward any behaviour that
supported the high performance principles
Developing, engaging and motivating your people
Twelve steps to maximise the alignment of strategy, culture
and leadership and build high performance
• Articulate the strategy
• Make sure the culture matches the strategy
• Make sure the leaders’ style is in line with the strategy
• Design an organization structure that supports the business strategy – in the case
of LL a flat but hierarchical structure with clear chain of command – “rightsize” in
good and bad times
• Identify simple performance indicators that will secure the desired level of high
performance and cascade down the organisation
• Recruit well – secure the best people and offer an appropriate reward scheme
• Include significant at risk rewards payable on the achievement of the high
performance targets
• Communicate constantly– regular, structured communications to inform and
motivate – good, bad, even no news
• Measure everything – Productivity, Morale, Job satisfaction, Performance,
Turnover
• Provide training and opportunities for development
• Have the guts in bad times to invest in your people
• Develop positive and respectful partnerships with suppliers
• KEEP IT SIMPLE
Developing, engaging and motivating your people
Tips!
• Don’t just grab the label of “High Performance
Culture and then ignore the many other
initiatives needed to support the label
• Tailor the initiative or intervention to suit the
uniqueness of your organisation...
Developing, engaging and motivating your people
Developing, engaging and motivating your people
CO
NFIA
NC
E
Confiance
Developing, engaging and motivating your people