The Times 100 Business Case Studies Edition 15

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The Times 100 Business Case StudiesEdition 15

• Overcoming barriers to change
• Corus

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Introduction

• Corus is subsidiary of Tata Group with 3
  operating divisions
• Strip Products (CSP UK), Long Products,
  Distribution and Building Systems
• Employs 40,000 people worldwide
• Corus faced major business challenges
• To remain competitive
• To re-shape the organisation
• In 2005 CSP UK introduced a cultural plan for
  change The Journey
• Focused on values and beliefs to guide people
• New behaviours encouraged individuals to be
  accountable

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Organisational change

• A planned ongoing process
• Clearly defined stages
• Identify drivers for change internal and
  external
• Identify barriers to change may involve
  attitudes
• Create and implement plan engaging employees
• Measure effectiveness to assess where further
  change needed

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Reasons for change

• Internal drivers
• Inefficiency e.g. late deliveries or high
  wastage
• UK steel production more expensive than overseas
• Poor morale unmotivated staff
• External drivers
• New low cost competitors
• Higher customer expectations
• Negative perceptions of the steel making industry

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Barriers to change

• May be seen as a threat
• Perceived loss of status or power
• Challenges existing practices
• the way we do things around here
• Aging workforce and loss of skills
• reduced apprenticeships mean fewer young people
  attracted to the industry
• Complacency about job reductions
• Previous reductions had not led to significant
  change
• History of rewarding long service rather than
  distinguished service

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Overcoming barriers

• Involving employees in the change
• Physically signing up to the programme
• Direct and indirect communications
• Newsletters, workshops, videos, intranet
• Shock tactics demonstrated
• acceptance of low standards
• Encouraging the right to challenge
• Highlighted new behaviours to deal with issues,
  e.g. safety standards, alcohol misuse
• Assistance rather than discipline

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Measuring the outcomes

• Established targets and standards
• To drive improvement
• Key Performance Indicators
• For production, people and cultural activities
• Milestones set up
• to help monitor and review
• progress
• Ongoing reviews
• To keep momentum

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Results

• The Journey contributes to
• Sustainable performance
• CO2 emissions reduced by 10
• Improved efficiency
• Reduced waste and higher standards for customer
  service and quality
• Increased output
• Production capacity increased by 4.5
• Lower costs
• Expected savings of 250 million during 2009/10