Managing cultural transformation in a multinational business
| DOI | https://doi.org/10.1108/14754390910920439 |
| Pages | 16-21 |
| Published date | 28 November 2008 |
| Date | 28 November 2008 |
| Author | Steve Smith,Christoph Kuth |
| Subject Matter | HR & organizational behaviour |
Managing cultural transformation in a
multinational business
Steve Smith and Christoph Kuth
Abstract
Purpose – This case study feature sets out to describe how a global manufacturing business, TMD
Friction, changed its organizational culture and became a much more successful business over a
12-month period through the implementation of a change management programwith people policies at
its core.
Design/methodology/approach – The paper explores the change program that was devised and
implemented by Quest Worldwide, an international management consultancy.The program started with
strategy workshops for leadership teams followed by extensive management development and
workforce training. The changes in behavior and practices were sustained with an organizational review
process.
Findings – Numerous examples of a change of culture are evident and the company met demanding
performance targets.
Research limitations/implications – The change process should be applicable to most types of
organizations but it is designed for the larger,more complex organization and would perhaps need to be
simplified for a smaller one. The change process should work in all cultures, as it was applied in
11 different locations for this global company.
Practical implications – The steps in the change process have been tried and tested in many other
organizations and have proven to be effective.
Originality/value – It is perhaps unusual to target cultural change deliberately in order to improve the
performance of an organization. The fast pace of change delivered a high return for the company.
Keywords Organizational change, Leadership development, Strategic objectives,
Performance management, Organizational restructing
Paper type Case study
TMD Friction (TMD) is the world number two for manufacturing friction materials used
mostly for vehicle brakes. Before the change process described in this paper, it
operated in a decentralized way with manufacturing plants serving local markets in
Germany, UK, USA, Brazil, Mexico, France, Italy, Sweden, Spain, China, Japan and
Romania, and a head office in Leverkusen, Germany. TMD had been created by a merger of
two quite different groups, each of which had previously acquired or developed branded
products in different countries. The merger had been funded by private equity and, after
several years of ordinary performance, the equity owners triggered a financial restructure in
the second quarter of 2006. This brought in a new CEO, new funds and a new requirement to
deliver stretching targets.
To the new CEO, Derek Whitworth, change was obviously necessary but people in the local
businesses not only had their own products and customers but also their own histories and
ways of doing things. To them, re-financing was a reshuffle of bank names that seemed
irrelevant to their work and their site. Whitworth knew that a change program was necessary
to overcome both attitudes and behaviors and he brought in change specialists, Quest
Worldwide, to help.
PAGE 16
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STRATEGIC HR REVIEW
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VOL. 8 NO. 1 2009, pp. 16-21, QEmerald Group Publishing Limited, ISSN 1475-4398 DOI 10.1108/14754390910920439
Steve Smith is based at
Quest Worldwide, and
Christoph Kuth is based at
TMD Friction.
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