Page 7 - KZN BUSINESS SENSE Vol.2 NO.6
P. 7

PurPosEful EntErPrisE culturE



                       David White,   in reception areas and notice   outcomes of synergies put forward    strategic plan      ■   Keep stakeholders informed
                        CEO DRG       boards, these are rarely lived by   in the business case made for   ■   Identify the best talent,    ■   Celebrate successes
                        Outsourcing   or practiced as non-negotiable   them, or diminish the enterprise     irrespective of which entity they
                                      norms guiding everyday business   value of merged entities. Rather     currently serve, to be deployed    sustain and build
                       …a pre-        activities. Similarly, performance   than the blending process that it     within the new structure   ■   Assess stakeholder satisfaction
                                                                    should be, the reality becomes a
                       condition for   management practices tend to be                            ■   Define the preferred cultural      with the performance of the
                       sustainability?   an event, a corporate ritual, rather  toxic mix of conflicting agendas     characteristics for the new      renewed organisation
                                                                    and behaviour! The focus on
                                      than an embedded leadership
                                                                                                                               ■
                         W            practice.                     results is compromised.       ■   common to the entities to be      engagement assessment; address
                                                                                                                                  Conduct a culture and
                                                                                                    organisation
                                                                                                     Determine a new baseline
                                                                                                                                 deviations from the required
                                       We would argue that a
                                                                    why is this so?
                          hen last    purposeful enterprise culture is   In the first instance, the     integrated in terms of      norms
                                      an essential tool in the quest for
                           did you,   competitive advantage.        business cultures of the entities     employment practices, policies,    introduce an Engagement
                           in your                                  to be combined are likely to be     pay and benefit levels, etc.   leadership Process which
                          busy life                                 divergent. The feasibility study or,   ■   Determine cost implications    comprises
        as CEO or as member of a senior   characteristics of a Purposeful   due diligence process justifying     and an implementation    ■   The establishment of
        leadership team, push back to   Enterprise culture          the integration tends to focus     plan. Addressing such matters      a performance-enabling
        reflect upon what really defines   It starts with the CEO and   upon aspects such as financial     proactively will contribute      environment: Identify
        your organisation’s culture; what   the senior leadership team,   synergies, product line or service     minimise the risk of unintended      opportunities for removing
        makes your business unique and   where emphasis is placed upon   offering expansion, optimisation     consequences detracting from a      of factors interfering with
        drives your team’s approach to   leadership, not management  of assets, geographic location     smooth integration process    results delivery (often
        work in your business? And, if                              and similar arguments; with                                   traditional ‘way of doing
        you had reached a conclusion,   The entire team, at all levels and   the role that the human capital   implement          things’) paired with introducing
        would the majority of team    in all functional areas, is fully   element plays in the process, as an   ■   Communicate, communicate,      ways of leveraging results
        members concur that, that such   engaged in the business of the   afterthought.             communicate! The key to       delivery (simpler and
        a conclusion is indeed their   business. Evidence of engagement                             getting it right first time!      smarter) and, most importantly,
        everyday experience of their world   includes:               In the second instance, human     Minimise the potential for      introducing or perfecting
        of work?                      ■   A clear understanding of the    nature being what it is, there     rumour and speculation to      effective leadership practices
                                        origins of enterprise       is a strong likelihood that     emerge – the ‘background
          Corporate Governance is       performance measurement,    perceptions of a dominant versus     noise’ clouding what should be    ■   Introduce a formal results
        fundamentally about enterprise     the customer and shareholder    a subservient partner come     an air of positive anticipation     commitment process (as
        sustainability – in the interests of     expectations and how their    into play: a winner and a loser;                   opposed to performance
        key stakeholders: shareholders,     respective roles contribute to    influencing the behaviour of   ■   Cautionary announcements,      management system), which
        customers, suppliers, employees     delivering to such expectations  what should have become a fresh,     briefing groups, workshops,      is founded upon role clarity,
        and, ultimately, the economy.                               new and energised team. Egos     individual counselling       business awareness,
                                      ■   A clear understanding of    rather than rationality play a   ■   Provision of channels for team
          Being CEO is a tough job!     their respective roles’ influence    role. There will be role confusion,     members to make suggestions      measurement, accountability
        The CEO’s effectiveness and     on the enterprise value chain    scores to settle, points scoring,     and express concerns    and self-management
        that of the leadership team, is     and business processes within;    resistance to change, ‘told you                   ■   Ongoing self, peer and leader
        measured against the yardstick     how their roles leverage the    so’ moments when avoidable   ■   Proceed according to a formal      assessment
        of sustainability, with all its     effectiveness of this chain or …a   unintended outcomes become     plan with milestones   ■   Recognition and reward
        contributory elements.          focus on results, not activities   apparent and so on. Rival parties   ■   Do the hard stuff early:    Our definition of a Purposeful
          We, at DRG Outsourcing,     ■   Team members who take     will dance around each other     Casualties, those who cannot    Enterprise Culture:
                                                                                                    be accommodated in the new
        regard enterprise performance     ownership and hold themselves    rather than engage. Previously     structure, need to be managed    Highly Engaged People Taking
        measurement as being derived     accountable; ‘If I were the    effective entities dissolve into a     fairly and humanely  Self-Inspired Action … For
        from two primary sources:       owner I would … or would not…’  dysfunctional culture detracting   ■   Conduct regular briefings and    Results! 
        How your customer measures    ■   Most importantly, the enterprise    from focus on the customer and     discussions on progress;
        you and how your shareholder     is self-managed; the CEO    shareholder expectations.                                 DRG Outsourcing (Pty) Ltd
        measures you? The sustainability     and senior team are free to                            encourage participation in    Tel: +27 (0) 31 - 767 0625
        of such measurement findings     focus on strategic issues safe    how could an effective merging     addressing deviations from plan    Fax: +27 (0) 31 - 767 3280
                                                                                                                               david@drg.co.za
        is dependent upon a diversity of     in the knowledge that day-   process proceed?          and intent                 www.drg.co.za
        contributory elements amongst     to-day business operations are    Experiences ‘in the field’ suggest
        which, for example, are:        in good hands. Trust forms the    that the implementation process
        ■   Product quality             foundation of the leadership    be informed by both a well-
        ■   Service quality             style!                      conceived (with the objective
                                                                    of the integration always as a
        ■   Value for money           ■   Implementation of an effective    guiding principle) and a well-
        ■   Innovation                  enterprise culture is hard work.    planned, deliberate process, for
        ■   Share value and dividend yield      It is a conscious leadership    example:
          trends                        process where compromise     Getting the base right (know
                                        undermines credibility. The
        ■   Asset performance           return on the effort so invested    and fix the gaps from the start):

        Sometimes the less obvious      flows through as it becomes    ■   Conduct a comprehensive
        elements may include:           embedded as ‘the way we do      human capital practices audit
                                        things around here’ and its
        ■   Statutory compliance        impact becoming discernible in      within each entity to discover
                                                                      gaps to be addressed
        ■   Environmental best practice    the results.             ■   Conduct an enterprise culture/
        ■   Enterprise culture        mergers and acquisitions        employee engagement
        Purposeful Enterprise culture  Nowhere does the consequence     assessment within each entity
                                                                      to identify those indicators,
          Deliberately conceived,     of delinquency in attention to     both positive and negative,
        implemented and rigorously    the culture element become      which may influence the
        maintained enterprise culture   more apparent than when two     integration process
        frameworks are, in the DRG    or more business entities are
        Outsourcing experience, a     integrated. It is a well-researched   ■   Craft a unique strategic plan for
        rarity. Despite vision, mission   and documented phenomenon     the proposed integrated entity
        and ‘our values’ statements   that most such integrations either   ■   Determine the organisation
        being prominently displayed   fall short in delivering to the     structure in support of the




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