CHANGE MANAGEMENT
THE CHALLENGE:
A large energy company had just gone through a Chapter 11 filing and needed to reorganize. But its highly skilled employees were leaving, and the new CEO company felt he could not get through to them: the future of the company was at risk
We were called in.
Research
We put our hard hats and steel heel shoes on, and interviewed over 120 people in refineries, geothermal plants, and corporate offices.
Insight
Lack of shared vision and cultural resonance from the top meant that the new CEO was perceived as “just a turnaround guy” who viewed employees as dispensable assets and failed to provide a meaningful endgame they could all work towards.
Strategy
The CEO needed to create a new story for employees that made them part of unified solution and process, and provided a post-bankruptcy vision. This included clarifying the role of management vs. creditors in the bankruptcy, and a promise from the CEO that he would ensure that employees’ loyalty be rewarded moving forward.
Our findings formed the basis of an all-employees company-wide event, at which we presented our work alongside the CEO. Within a few months employee turnover was reduced, and two years later the company emerged from the bankruptcy. It is now one of the three largest generators of electricity in the US.