Organisational Capability Case Study
Improving Profitability, Output and Safety in a Major Energy Company
External regulators and an internal review identified the need for our client to improve performance in output reliability and safety, with particular focus on reducing human error and accidents. The board also wanted to increase profitability and valuation ahead of a potential sale. The company felt that increasing employee engagement was a critical factor in achieving these objectives.
Hanover Executive was engaged to create a programme that would deliver these goals and create a more accountable, performance orientated culture across the business.
Assessment and coaching were given to the executive team, and to the leadership teams of both individual generating sites and centralised functions. Analysis of assessments gave a practical, competency based view of the culture and the barriers to change. Individual and group coaching focused on themes of accountability, change management, active listening, and delegation.
Alongside this effort, cross functional Applied Learning Groups were formed. They developed skills in group decision making, accountability and conflict handling as they focused on business improvement issues. To track and maintain momentum, HR managers were trained in the use of our 360 feedback tool. A customised version of our psychometric testing instrument was used successfully in recruitment and selection.
Results
Within a year, profitability and share price performance had risen strongly and were both above targets. Substantial improvements were measured in manageable productivity, and output across the generating sites became more consistent. Independently measured survey results showed strong improvement in engagement across all divisions and in the firm as a whole.
Safety metrics improved dramatically. Record quarterly results were recorded after one year, backed by steady improvement since the start of the project. Reductions in human errors and accidents both exceeded plan within a year. External regulators commented favourably on the marked change in culture.
Additional reported benefits included improved cross-functional cooperation, improved communication at all levels, engagement of the front line leaders, establishment of a ‘can-do’ learning culture, and improved recruitment and retention of key talent.
The programme continued for a further two years, until a point at which the share price reached an all time high and the business was successfully sold, returning a major profit to shareholders.
