Listening to drive culture change

Date14 August 2017
Pages161-165
DOIhttps://doi.org/10.1108/SHR-05-2017-0027
Published date14 August 2017
AuthorPhilipp Schramm
Subject MatterHR & organizational behaviour,Employee behaviour
Listening to drive culture change
Philipp Schramm
Philipp Schramm is Chief
Financial Officer, VP
Human Resources & IT at
Webasto Roof Systems
Americas Inc., Rochester
Hills, Michigan, USA.
Abstract
Purpose The paper aims to show how a Detroit-based company recovered from a fractured culture
and staggering projected financial loss by igniting a cultural revolution fueled by listening and employee
engagement.
Design/methodology/approach After setting the scene in post-recession Detroit, the case study
walks the reader through how the company defined its turnaround goals, engaged its workforce to
inspire widespread cultural change and how it is sustaining momentum.
Findings The paper provides a detailed account of implementing a listening-focused culture and the
positive impact it had on Webasto. It suggests that widespread organizational change is only possible
when all employees are engaged and involved in the process.
Originality/value This paper illustrates a real-world example of how an automotive supplier took a
people-focused approach to engage its workforce with listening to drive culture change and ultimately
impact an organization’s bottom line.
Keywords Change management, Culture, Human resource management, Employee engagement,
Human capital, Transformation
Paper type Case study
While the entire world was hit hard by the Great Recession, it sunk its teeth into the
automotive industry and shook it to its core. Just a few years ago, many companies
had not financially recovered from the downturn and many corporate cultures had still
not shaken the social effects of the economic decline. The Great Recession remained a ghost
in the rearview mirrors of its survivors, creating a perpetual cloud of fear and mistrust on plant
floors and corporate offices across the entire industry. Detroit – home to Webasto Roof Systems
America Inc. (WRS-AM), a global sunroof manufacturer – was particularly hard hit, as it was
already in dire straits when the recession began.
In 2014, Webasto faced a staggering projected financial loss. To make matters worse, the
leadership team was also tackling a report from McKinsey & Company that ranked its culture
“among the worst it had ever seen”. Through McKinsey’s highly regarded Organizational
Health Index (OHI), the leadership team had proof of what many had felt: The culture was
severely fractured. The OHI survey results in January 2015 revealed Webasto scored in the
bottom of the 4th quartile – the worst score possible.
According to colleagues, Webasto lacked: effective leadership, clear and strategic direction,
accountability, honesty, transparency, clear performance objectives and an environment
supportive of innovation and creativity. But when both the financial and cultural health of a
corporation are failing, which do you tend to first?
Defining Webasto’s turnaround goals
Knowing corporate culture and employee engagement are intimately linked to
organizational health, Webasto’s leadership decided to take an unconventional approach
to turning around its financial performance by first focusing its efforts on resuscitating
Webasto’s ailing culture – the “software” of the company – culture, employee engagement
DOI 10.1108/SHR-05-2017-0027 VOL. 16 NO. 4 2017, pp. 161-165, © Emerald Publishing Limited, ISSN 1475-4398 STRATEGIC HR REVIEW PAGE 161

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