Background
Our client is a siloed, complex and diverse business faced with increasing competition, a need for culture evolution to better service the needs of the ADF (its key client), and a financially unsustainable operating model. The broad ambitions are clear: improve its EBITDA by 30% through growth and innovation of new product areas extension and expansion of its current prime contracting services in Maritime and Aircraft Sustainment improve its operating margin through a streamlined enterprise approach to operating.
Testing and validating of their strategy, and the global direction of its enterprise functional model, by a Big 4 Consultancy found that significant changes were required: duplication of functions, arduous governance and cumbersome manual processes that contributed to high costs, high turnover, a lack of agility, and ambiguity for staff, suppliers and customers.
The Company was stuck in a cycle of repeatedly communicating concepts of what was set to change, without gaining meaningful traction.
What We Found
Our client embarked on a journey to transform their operating model, making a mistake we see time and again: applying a project management approach to a large-scale change project.
In this case, that looked like an over-reliance on emotional buy-in, heavy dependence on change practitioner competencies, and low levels of consistency. The compounding effect was strategic drift, and people issues of ambiguity, turnover, and disengagement. The strong desire to change was being derailed by a lack of meaningful communication and clarity on what needed to change.
No.8 was engaged to design and facilitate the enterprise operating model (corporate functions), starting with enterprise HR. The change approach followed our licensed Switch Habitude methodology which removes ambiguity for stakeholders early in the engagement by focusing on developing and defining the WHAT to organisation performance – a key point of difference.
A systems approach was the missing ingredient for a successful transformation.
What We Did
Too few performance levers translated into an unsustainable solution. No.8 Consulting moved the client’s proposed design beyond just structure and roles; understanding, aligning all points of interface, and providing an integrated solution for performance.
A functional blueprint was created, outlining which performance elements needed to change across processes, technology, governance, footprint, structure, and roles.
Change tactics were determined to either switch off current capabilities that provide capacity, or switch on capabilities to advance performance (the new operating model).
The Switch Habitude methodology automates this step, allowing our client to leapfrog straight into implementation mode. The tactics identified owners for governing and delivering, showed how benefits can be realised, and provided the previously missing foundation for mobilisation.
Our mobilisation approach separates and delivers communication and engagement to the point of impact – timed for when it affects specific people / specific complexities. The framework steps sponsors and change leaders through where (and how) to anticipate specific resistance barriers, tailor as required, and transition to acceptance and adoption.
The missing link in our clients’ approach was that the transformation needed to be held together via a strong people view.
Employees weren’t resistant to the change itself; they were frustrated by ambiguity in the details of the transformation.
The blueprint, change tactics, and mobilisation approach provided the clarity and frameworks to deliver their agenda.