capability diversity to smooth the cyclic effect, or an
acquisition to facilitate expansion and a move into growth
markets.
These are valid approaches, however one thing
is certain, change and the negative impacts it can
have on a business are devastating if poorly managed.
Strong leadership and decisive management are crucial
throughout these turbulent times.
As a successful pipeline constructor in Australasia and
a prominent multidiscipline general contractor for more
than 50 years, McConnell Dowell knows all too well the
business cycle and its impact on performance. Its blueprint
for success is based on three key principles. These
principles have helped the company prosper through feast
and famine, and can be applied to any business.
Nurturing the right culture
Every organisation, regardless of size, industry, ownership
or structure, has its own unique culture. It is a distinctive
mix of attitudes, behaviours, expectations and beliefs
that define it – concisely described as ‘how things are
done around here’. Some organisations have mastered the
complexities of culture and proactively nurture it; while
others let it evolve naturally and, well, hope for the best!
McConnell Dowell understands that during turbulent
times, it has been and will continue to be its culture, and
the attitude and behaviours of its employees, that will
ensure the group’s continued success.
For example, to address a contracting market in
Australia in 2013, McConnell Dowell launched a major
initiative called ‘mobilising optimism’, a proactive
programme to re-engage its employees and ignite
positivity throughout the organisation. The initiative
started with a review of what the group calls its cultural
platform: its vision, purpose, values and behaviours.
Engaging a cross section of employees from all parts of
the group, this review was undertaken to ensure it had the
same meaning and relevance regardless of who you were
or your role in the company:
)
The vision statement was tested and revised to
the aspirational: ‘to be leaders in infrastructure
development.’
)
The purpose statement was revised to the outward
looking and externally focused: ‘building better
communities through safe, smart, and efficient
infrastructure.’
)
The values and behaviours were refreshed and restated
as five strong verbs: ‘lead, grow, deliver, sustain and
protect.’ These values capture the essence of what
McConnell Dowell does and how it achieves this
across every dimension of its business. The group also
developed its ‘value compass’ as a simple, visual tool to
help communicate and reinforce this message (Figure 1).
However, establishing a relevant cultural platform
was only the first step. Crucial to any shift in workplace
culture is visible leadership backed up by consistent
communication and activity around that platform.
An internal launch by the group’s Chief Executive
Officer, an executive roadshow to all offices, and a
renamed and re-launched internal employee magazine
and intranet underpinned the initiative. The group
incorporated its values in its annual business planning
process that, together with a revision to all its internal
and external marketing collateral, delivered the message
out to all corners of the business. As a result, the group’s
corporate communications are now clearer and more
consistent, helping engage its employees and build a
positive narrative around the future of the company.
To continue the momentum McConnell Dowell is
developing a new employee reward and recognition
programme called the MVPs (standing for McConnell
Dowell values programme, but a nice play on most
valuable player) and revising its employee performance
management programme to embrace these values in staff
key performance indicators.
Despite the current tough business conditions, the
shift in attitude and behaviour has been very positive
with internal surveys showing a marked improvement in
its staff’s engagement and alignment with the company’s
culture, purpose and future direction. This bodes well for
any tough times ahead.
Ensuring organisational simplicity
Agility and flexibility are primary attributes of today’s
successful organisations; an organisation that adapts and
change the quickest will be the most likely to prosper.
While there are numerous contributors to
organisational agility and flexibility, McConnell
Dowell believes that a fundamental ingredient is an
appropriate organisational structure. Nothing hinders
agility and flexibility more than a complex organisation
that negatively impacts team and individual clarity,
accountability and responsiveness.
As a company with over 50 years of continuous
operations, McConnell Dowell has been through numerous
structural changes. From discipline based to regional
based to matrix, the group has experienced all types of
structures and understands what works and what does not.
While there is no universal right or wrong answer to
structure, the underlying principle is to keep it as simple as you
can, regardless of the phase of the business cycle you are in.
Single lines of reporting, minimal layers top-to-bottom
and clearly articulated individual and team accountabilities
are the group’s fundamental ingredients of a simple
organisation.
And one final thing on structure, as a company expands
and contracts through the cycles, it is often tempting to
make structural changes in response. McConnell Dowell’s
advice is that wherever possible, flex and change the skill
levels and resources within the current structure to meet
the market, not the structure itself. Keep it simple but also
keep it stable.
30
World Pipelines
/
AUGUST 2015
