The impact of Organisational Culture on Business Sustainability - the hidden silos The importance of having in place strategies for moderating" organisational culture to ensure business sustainability We only have 35 minutes to cover this topic! What to do? In keeping with the fundamental
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1. 10th Annual National University Finance and Procurement ConferenceJuly 28 2010 Business Performance Group Pty Ltd
ACN: 099 272 572
2. The impact of Organisational Culture on Business Sustainability - the hidden silosThe importance of having in place strategies for “moderating” organisational culture to ensure business sustainabilityWe only have 35 minutes to cover this topic!What to do?In keeping with the fundamental nature of the HE cultureWhy don’t we define the critical components of the topic? bpg - business performance group 2
3. Defining the Critical Components of the Topic
Strategies for moderating organisational culture that ensures business sustainability will permeate my presentation bpg - business performance group 3
4. Business Sustainability Business Sustainability comprises two key ratios:
Target Surplus Ratio
expressed as a percentage of Revenue
Before dealing with these two ratios, we should ask some probing questions about the HE organisation
Are we in the business of providing quality education outcomes?
Do we work to a business sustainability model?
If we are not in the business of education, then why is so much of what we do “business centric”?
bpg - business performance group 4
5. Business Sustainability, the real questions....
Why don’t we embrace the best of what business has to offer in
terms of organisational and operational performance,
without loosing the mind, heart and soul of what education needs to be in the next few decades?
Can the concepts of education delivery and
business sustainability and performance
bpg - business performance group 5
6. Business Sustainability.... Is not
Balancing the budget
Reinvesting in the organisation
by consistently achieving a target surplus, where the compounding effect of the accumulated surpluses creates the foundation of an organisation’s
competitive advantage over the long term, which is
real business sustainability bpg - business performance group 6
7. Business Sustainability, revenue consumption relationships within an organisation The second of these key ratios considers the relationship of expenditure quantum between:
core business and support services
What ratio of revenue is being consumed by the core business of
teaching and research?
How much is being consumed by support services, being
professional services and operations?
After deducting an appropriate surplus for reinvestment from the revenue dollar, an organisation should be allocating funds between
core and support in the ratio of
2:1 bpg - business performance group 7
8. Organisational Culture in HE - What is it... Is it a
Faculty-centric divisional culture
Internally competitive / externally collaborative
Or is it
A bureaucratic public sector culture
Can organisational culture be defined as “capability” and if so,
is that capability effective or ineffective in meeting the needs of
a complex organisation, in an
increasingly competitive market? 8 bpg - business performance group
9. Organisational Culture – what defines it.... Does it all boil down to a cultural ability to adapt to the needs of the organisation with a continuous improvement performance discipline, and is it dependant on the following:
Quality of Leadership and Governance;
Quality of Management and Supervision
Is the organisational design and structure (silo-based)
Enabling or (disabling)
Effective or (ineffective)
Efficient or (inefficient)
Solutions and service oriented or (bureaucracy oriented)
Performance and continuous improvement oriented or (constantly being repaired)
9 bpg - business performance group
10. Organisational Culture – what defines it.... Are all levels of Management and Supervision
Skilful and resourceful
Innovative and creative
Learning and growth oriented
Performance and improvement oriented
Team and collaboration oriented
Engaging and transparent
Do organisations with the above
qualities, characteristics and capabilities
10 bpg - business performance group
11. Organisational Culture,is the culture solution a simultaneous equation.... Part one of the equation
Can the inexperienced Academic Manager be taught
to manage and appreciate fully
the organisational concepts, dynamics and behaviours critical
to long-term business sustainability?
Part two of the equation
Can the non-academic Professional be taught
to understand and appreciate the many
“non-dollar” qualities of education and the finer points of pedagogy
that cannot be measured financially, which lies at the heart of
the Student Experience? 11 bpg - business performance group
12. Organisational Culture,is the culture solution a simultaneous equation....
A simultaneous equation would produce an optimal cultural solution by creating an effective partnership between
the Managing Professor and the Business Professional,
operating in sympathetic and empathetic synergy
towards achieving organisational goals,
fulfilling long-term academic strategy while
ensuring business sustainability 12 bpg - business performance group
13. Silos Whether hidden or proudly declaring their independence, silo - based cultures share many similar qualities:
Choose “qualities” from your own experiences
Mostly oblivious to the “big-picture’’ and the needs of other silos, and how it all fits together to meet the complex needs of the whole organisation
Can silos be brought together to become an effective organisation that achieves significant outcomes?
13 bpg - business performance group
14. Silos A current and powerful example of silo-based behaviour and
their consequences, has become pivotal in our recent history,
where the failure of the CIA and FBI to collaborate and share intelligence,
and complete the information puzzle that may have
prevented the terrorist attacks on
New York’s Twin Towers and The Pentagon
The USA suffered considerable damage,
both economically and psychologically
due to an inability of two critical units
to function together effectively.
The whole world is feeling the aftermath, with no end in sight 14 bpg - business performance group
15. Silos In May 1961 in a Joint Session of Congress, President John F. Kennedy said:
“I believe the nation should commit itself before the decade is out, to landing a man on the moon and returning him safely to earth”
The US Space Programme was in its infancy and required the intellectual and budgetary collaboration by the US Air Force, Navy and Army, three proudly independent organisations at that time.
“One small step for man.....”
An amazing example of silos performing together,
for a united purpose and vision, .....
the rest is history !
15 bpg - business performance group
16. Concluding with moderating strategies... There exists an extensive inventory of opportunities
that could make an extraordinary impact on the
organisational performance and business sustainability of the sector, and simultaneously commence the
cultural transformation journey.
Procurement presents an immediate opportunity, some of which we have discussed in the past.
Please have the courage and commitment
to launch procurement as the pilot, to improve
business sustainability and organisational culture.
16 bpg - business performance group
Consistent policy, procedures, process re-engineering and redesign aimed at complexity reduction
Governance, delegations and risk management
Internal control frameworks, segregation of duties and fiscal control standards
Integration and effective operational design with other functional units
Financial strategies for procurement categories
Identification of cost savings and supplier consolidation / rationalisation
Development of negotiation strategies with suppliers and relationship management
Divesture of obsolete supplies and services, and inventory shrinkage management strategies
Intra-sector transfer systems of inventories
Commercial In Confidence 17 Concluding with moderating strategies...
Procurement commercialisation strategies
Company formations and strategic alliances
Regional structures and operating hubs
Virtual technology based business units
Capital growth strategies for stakeholders
Profit creation and dividend returns to stakeholders
Commercial In Confidence 18 Concluding with moderating strategies...
19. bpg’s Principals Bob was a highly respected senior executive with experience at CEO, COO and CFO level in higher education, financial services, and manufacturing sectors. He has a track record in strategic planning and implementation skills in order to achieve business performance improvement within demanding timeframes.
Bob has a history of successfully developing distribution networks and revenue growth strategies, expense reduction and cost management programs, operational reconstruction and redesign to increase performance in service and profitability.
Career highlights include:
COO and DVC, The University of Sydney
CFO, The University of Sydney
CFO, ING Australia Group Ltd
CFO, Zurich Australia Group Ltd
Group Financial Controller, AMP Ltd
Managing Director, AMPAC Ltd
Managing Director, Lumley Life Ltd.
Group Financial Controller, Hygienic Lily Ltd
Strategy & operations consulting
Deborrah was a senior executive with experience as COO, CFO, Director Financial Strategy & Planning and General Manager Project Management Office at the University of Sydney.
Deborrah has a strong track record in strategic planning, implementing change management initiatives to achieve greater organisational effectiveness and a return on investment.
She has worked in the higher education, financial services and consumer finance sectors.
Career highlights include:
GM Project Management Office, COO, Community Portfolio, Director Financial Strategy & Planning, University of Sydney
CFO, Rating4Credit Pty Limited
Director Business Development, Equigen Corporation Limited UK
Head Credit & Portfolio Risk Planning, Westpac Banking Corporation Ltd
Financial Controller, First Chicago Ltd
Senior Manager, PwC and Coopers & Lybrand
Strategy & operations consulting Commercial In Confidence 19