Organizational culture transformation model in a manufacturing plant: impact analysis of a four year journey towards high performing organization

Abstract

The current market environment, characterized by its volatility, uncertainty, complexity and ambiguity (VUCA), means a paradigm shift for any organization. Consequently being innovative via new perspectives such as the management of the Organizational Culture becomes a key factor as a potentially strong competitive advantage. In this framework, the main objective of this research is to analyse the impact of an Organizational Culture Transformation Model for an automotive sector’s manufacturing plant, with over 750 employees and 105,000 m2 in size, to facilitate its journey towards a High Performing Organization as way of survival. After four years of rigorous and systematic implementation of the model, the impact has been measured through the improvement obtained in the main business Key Performance Indicators and the Organizational Culture survey. In all of them, improvement exceeds expectations. Thus, Net Structural Cost Savings have been 1.4% versus 1% expected, Plant Overall Equipment Efficiency 69.8% vs 68%, for the Safety and Quality Index, Line Driven Management has been implemented as expected, and finally the Organizational Culture Survey (% of questions answered 4 or 5) has reached 58.1% vs 55%, demonstrating that the model positively impacts the organizational culture, enabling the viability of the plant.