B STATE's Case Study on Global Manufacturing Comany
IT Group Drives Company-Wide Transformation Saving Millions
The Challenge
For two and a half years, the IT group of a global manufacturer with over 90 sites on four continents attempted to implement a new business model without success. While senior leadership was confident in the simplicity and soundness of the model, middle managers seemed dedicated to challenging it rather than understanding and adopting it. Time was running out. If they didn’t find some way to change their trajectory dramatically in 18 months, not only would the organization as a whole suffer, but the IT group would be outsourced.
In just 9 months – half the time allotted for the change
- Saved 45 million Euro per year going directly to the bottom line
- The new business model was implemented with every business unit in the company across 4 continents
- 100% of the 7 most important projects were on time, on budget, and meeting deliverables
- 50% of all projects were meeting schedule, cost, and deliverable milestones, in contrast to a previous 10%.
- Reduced IT project load from 1300 projects to 240
- Correlated measures demonstrated a dynamic, sustainable transformation in their leadership culture
- 96% of the Habits of Collective Execution improved overall, 61% significantly
- Relationships improved an average of 40% over 15 measured areas, including meetings, decisions, trust, communication, confrontation, and accountability
- By month 6, a major vendor was integrated into Middle Manager team meetings and presentation
- By month 9, the decision was made to transform vendor relations from a customer/supplier model to a true partnership model for key vendors
By the end of the first Middle Manager working session…
- In a presentation with Senior Leadership, Middle Managers started by saying, “We get it. We are the ones who need to make it happen. Here is our plan.”
- Senior leadership was both dumbfounded and at the same time, couldn’t be happier.
- Team spirit and teamwork rose dramatically right out of the session and was sustained.
Within 8 weeks…
- Teams reported that they were aligned across functions and were no longer engaging in silo behavior. All efforts were now focused in a unified way on the difficulties of the new technologies and business challenges related to the definition or implementation in the business environments.
- The Senior Leadership demonstrated a new level of solidarity when in front of internal teams and in addressing business concerns.
Situation
Before considering a B STATE Approach, the company had worked for over 2-3 years with two world-renowned international consulting groups, failing to make any significant progress.
Key to Success
A B STATE Strategy Execution Roadmap was developed with the senior team. It determined that, instead of a top-down approach, the best approach would be to implement our Breakthrough Leadership Team System with the group of 55 middle managers that we’re convinced the new model would not work. It was a radical approach that no one had considered or dared to attempt.
B STATE Approach
1) Senior Leadership Presented the External Drivers and Needed Responses
Rather than sell a solution to the middle managers, Senior Leadership presented the reality of the current situation and set the expectation that the group had a collective responsibility to agree on how they would respond as the operational leaders.
2) Implemented our Breakthrough Leadership Team System with the Middle Managers
By expanding on the drivers and responses presented, the Middle Managers (without Senior Leadership present) created a common Picture of Success and new Collective Habits of Execution to bring that picture to life. Upon reflecting on what they had created, they decided the new business model was the most direct way to address the situation. They then formed 5 teams to address the project plan, communication plan, and culture change plan they would need to be successful. They also formed a steering committee to keep everyone coordinated and on track. This was all presented back to Senior Leadership at the end of the session.
3) Provided protected time and provided Consulting and Senior Leadership support for each project team
4) Held two formal measurement and adjustment sessions at 6 and 9 months…
…with the combined Senior and Middle Management Team Members.
5) Trained Senior Leaders and Middle Managers in B STATE Accountability Programs for Team Players
Implementing a new model required new leadership competencies. Middle managers used the Developing B STATE Leaders and Successors to select and mentor leaders to be cross-functional, business owners, and partners.