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Any use of this material without specific permission of McKinsey & Company is strictly prohibitedCopyright © 2012. All rights reserved
October 2012
Improving cooperatives’agility
McKinsey & Company
Copyright © 2012. All rights reserved1|
Executive summary – Improving cooperatives’ agility
The cooperative model is particularly effective in creating organizational alignmentand employee mobilization through a strong sense of ownership and shared values.Analysis of McKinsey’s proprietary employee survey data and interviews with coops
reveals three areas in which they can improve their organizations to gain better agility
▪ Agility in decision making. The cooperative decision-making process is typically slower than in public companies due to its inherent democratic process– Exemplary coops strike a balance between their democratic nature and executive
agility by better distinguishing the respective roles and responsibilities of executive officers and elected officials and creating transparency on performance to enable rapid course correction
▪ Agility in pursuing adjacent opportunities. Cooperatives typically prioritize current members’ needs; the resulting diminished focus on innovation and the external business environment means coops are less agile at pursuing adjacent opportunities and renewing themselves – Exemplary coops expose the cooperative to external perspectives and fuel
innovation through better information sharing and collaboration between various parts of the organization
▪ Agility in developing and sourcing talent. Coops are less agile than public companies at developing and sourcing the talent and skills needed to execute their strategy, meaning they often have difficulty creating competitive advantage over publicly owned competitors– Exemplary coops address their attractiveness deficit among the young generation of
workers and create best-in-class leadership development programs for their high-potential executives
McKinsey & Company
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An in-depth review of OHI
Context and methodology
Content
Managerial best practices of cooperatives
McKinsey & Company
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We set out to understand the differences between traditional corporations and cooperatives
Shareholders
Clients Members
Members
Corporation Cooperative
▪ How does the difference in structure between coops and traditional corporations affect their agility?
▪ What different processes exist or should exist in coops?▪ How can coops build on their strengths to best serve their members’ interests?
McKinsey & Company
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We used McKinsey’s Organizational Health Index to assess and compare the “health” of cooperatives with existing data on more than 4,000 people at 136 similar publicly traded companies
SOURCE: McKinsey Organization Practice
Innova-tion and learning
External orientation
Culture and
climate
Direction
Account-ability
Coordi-nation and
control
Capa-bilities Motivation
Leadership
The organization has a
compelling vision and
well-articulated strategy,
which is supported by its
culture and values
Internal alignment
The organization
demonstrates
executional excellence
against its strategy and in
delivering its services
Quality of execution
The organization
effectively understands,
interacts, responds, and
adapts to its situation and
external environment
Capacity for renewal
McKinsey & Company
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We identified best practices for organizational agility from across the cooperative sector to illustrate how leading cooperatives are organized
McKinsey & Company
Copyright © 2012. All rights reserved6|
Context and methodology
Managerial best practices of cooperatives
An in-depth review of OHI
Content
McKinsey & Company
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Coops have a strong ability to align their organization but struggle with their capacity to renew their value proposition and execute rapidly
Percentage of respondents who believe theirinstitution does well on these dimensions
Coops are typically internally focused, less exposed and influenced by their external environment, and are challenged to drive innovation for their members and communities. This may be due to their explicit focus on serving existing members
Cooperatives are just as capable as other organizations of executing against their strategic ambitions but tend to focus on higher motivation and sense of accountability to compensate for looser control mechanisms and performance management processes
Given their democratic nature and processes, cooperatives are very successful at aligning their organization behind a common sense of purpose and direction
Leadership
Direction
Culture and climate
Motivation
Accountability
Coordination and control
Capabilities
External orientation
Innovation and learning
Ali
gn
men
tE
xecu
tio
nR
enew
al
0
100
Cooperatives
Representative
market sample
SOURCE: McKinsey Coop Organizational Health Index survey; interviews with coop leaders
Cooperative quartile
3rd quartile
2nd quartileTop quartile
Bottom quartile
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Agility in pursuing new opportunities
Agility in decision making
Agility in developing and sourcing talent
Coops face particular challenges in seven areas related to agility, which fall into three major categories
▪ Leaders in the organization ask the opinions of others before making important decisions
▪ The organization’s systems and processes facilitate cross-functional initiatives
▪ The organization’s financial control systems monitor financial performance deep in its business units
▪ The organization uses job rotation to broaden the experience and capabilities of its talent
▪ The organization outsources functions or activities that can be better done by others
▪ The organization pursues joint performance initiatives with external business partners
-13
-6
-7
-5
-5
-8
5
Businesspartnerships
Outsourcedexpertise
Talentdevelopment
Capturingexternal ideas
Knowledgesharing
Financialmanagement
Consultativeleadership
▪ The organization uses external contacts to maximize the flow of ideas into the organization
Top quartile
2nd quartile
3rd quartile
Bottom quartile
Cooperative quartile
Coops’ spread to market1
OHI practices Sample behaviours
1 Absolute percentage points difference between coops mean and overall mean
SOURCE: McKinsey Coop Organizational Health Index survey; interviews with coop leaders
McKinsey & Company
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Overall, we believe that three managerial best practices can help cooperatives take advantage of their structural strengths
Description
▪ The cooperative decision-making process is typically slow relative to public companies due
to its inherent democratic process. Cooperatives
should therefore challenge themselves to
devise methods for improving decision-making agility while remaining connected to members and their interests and needs
Agility in decision making
Devise clear roles and responsibilities
Create a more efficient process for consulting with members
Improve performance management systems
Best practices
▪ Coops place less emphasis on ensuring the presence of appropriate talent to execute on strategic objectives than public companies
do. They are therefore less agile at developing and sourcing talent, which
negatively impacts their ability to create
competitive advantage
Agility in developing and sourcing talent
Effectively identify top talent and create leadership development curricula
Adopt recruiting and training practices that change how the younger generation of potential employees view coops
▪ Cooperatives typically focus on current members’ needs, sacrificing opportunities to renew themselves. There is therefore a need
for cooperatives to explore external perspectives as the need arises, to devise systems for effective collaboration within the organization, and to ensure that they are
prepared to explore emerging opportunitiesin a timely manner
Expose cooperative to external ideasEncourage collaboration across different parts of the businessProtect growth capital
Organize to grow in attractive adjacent markets
Agility in pursuing adjacent opportunities
1
2
3
1
2
1
2
3
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Agility in decision making: cooperative case examples – 1/3
SOURCE: Interviews with coop leaders; annual reports
Devise clear roles and responsibilities for executive officers and
elected officials (e.g., board members)
▪ FrieslandCampina formed a separate operating company with
its own Board. The coop remained a full owner of the new
operating company but, by creating a separate entity in the
cooperative, it created a healthy distance between democratic processes and the day-to-day, rapid operating decisionsrequired in the company to compete effectively in the market
▪ The cooperative members appoint a Board of 9 members, who
are also part of the operating company’s 13 Board members,
giving them continued control over that company by virtue of
their two-thirds majority vote on the Board
▪ However, the roles of the coop Board members and of the Company’s board members are well defined, and the latter in
fact are identical to those of publicly traded companies’ board
members under Dutch law.
Case example: FrieslandCampina
▪ FrieslandCampina is the 5th largest
dairy company in the world
▪ Revenues (2011): EUR 9.6 billion
CoopMembers
Council
Board9 members
BoardCoop board
4 external directors
Executive board
Divisions
Company
The coop owns 100% of the shares
of the company
Examples of best practices
Devise clear roles and responsibilities
1
Create more efficient processes for consulting with members
2
Improve performance management systems
3
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Members are asked where they want to see new food markets▪ The co-operative food was planning to open
300 new food stores over 3 years
▪ The co-operative asked its members to suggest new sites online
▪ The initiative helped determine which locations generate the most interest among members
Agility in decision making: cooperative case examples – 2/3
SOURCE: Interviews with coop leaders; annual reports
Members are asked to formulate an ethical investment policy that becomes binding for the whole group ▪ These considerations are deliberated within
the Regional Values and Principles Committee, a forum for members to express their points of view
▪ Based on member input, the co-operative Bank “lives its values” by publishing an ethical investment policy that informs its members about who it will and will not do business with
Create more efficient processes for consulting with members,including using technology to expand reach
Case example: The co-operative
▪ The co-operative is the UK’s largest mutual and its 5th biggest
food retailer
▪ It has diversified offerings from banking to funeral services
Examples of best practices
Devise clear roles and responsibilities
1
Create more efficient processes for consulting with members
2
Improve performance management systems
3
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Agility in decision making: cooperative case examples – 3/3
SOURCE: Interviews with coop leaders; annual reports
▪ With the aim of fostering local leadership while simultaneously fostering
the operational discipline required to optimize member’s service level,
BPCE created a system permitting its regional coop banks to compare their performance and to share best practices
▪ Key indicators included favoured transparency and internal competition, alongside external benchmarks, to ensure the banks
considered external best practices as well
▪ The system offers monthly dashboards, real-time updates, and
benchmarks (internal and external), ranking banks on their
performance compared to peers as well as following the evolution of
performance of individual business units
▪ Member banks are also measured on their contribution to investorrelations and their engagement with the wider French economy
▪ This led to strong, dynamic branches and has partly fuelled annualized
growth of 10.8% over 5 years, 2/3 of which came from market share
gain
Examples of best practices Improve performance management systems to enable rapid
mitigation of sources of underperformance
Devise clear roles and responsibilities
1
Create more efficient processes for consulting with members
2
Improve performance management systems
3
Case example: BPCE
▪ Groupe BPCE was formed in July 2009
through the alliance of Banque Populaire and Caisse d’Épargne
▪ Groupe BPCE has 80,000 employees
and generates revenues of EUR 23 billion
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Agility in pursuing adjacent opportunities: cooperative case examples – 1/3
SOURCE: Interviews with coop leaders; annual reports
▪ CBH Group complemented its Board and acquired the necessary expertise by electing external Board directors
▪ The Board elects 3 independent directors based on the
recommendation of the Remuneration and Nomination Board
Committee
▪ These 3 independent directors are chosen to provide expertise and skills that will broaden the overall experience ofthe Board of Directors, such as international business deal
making and corporate affairs
▪ For example, as CBH was investing to reform its grain-rail network
in Western Australia, external board members were able to help evaluate several technical questions and brought
complementary expertise to the cooperative
Expose cooperative to more external perspectives
Case example: CBH Group
▪ CBH is an Australian grain
farmers’ cooperative
▪ It has more than 4,500 members
and annual turnover of
AUD 1.5 billion
Examples of best practices
Expose cooperative to more external perspectives
1
Encourage collaboration across different parts of the business
2
Protect growth capital3
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Agility in pursuing adjacent opportunities: cooperative case examples – 2/3
SOURCE: Interviews with coop leaders; annual reports
▪ MONDRAGON has 4 core corporate values that shape its overall
approach
– Cooperation (“owners and protagonists”)
– Participation (“commitment to management”)
– Social responsibility (“distribution of wealth based on solidarity”)
– Innovation (“constant renewal”)
▪ Innovation and cooperation are reflected in a dedicated R&D network that provides new lines of business
– 14 technology R&D centres and R&D units specialized in fields relevant to MONDRAGON, such as lifting systems, packaging
machines, home appliances, and thermoplastics
▪ Innovation poles provide a platform to generate interactions and create opportunities among stakeholders
▪ Innovation is encouraged and stimulated by formal processes at all
levels of the organization
– Cross-functional, cross-business unit innovation– Radical innovation outside the day-to-day environment
– Daily innovation and continuous improvement▪ Today, 21% of sales are from products that are <5 years old
Examples of best practices Encourage collaboration across different parts of the businessthrough company-wide systems and processes supporting cross-
function cooperation and innovation
Expose cooperative to more external perspectives
1
Encourage collaboration across different parts of the business
2
Case example: MONDRAGON
▪ Spanish cooperative with EUR 15 billion
in revenues, 83,000 employees, and
281 enterprises and entities
Protect growth capital3
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Agility in pursuing adjacent opportunities: cooperative case examples – 3/3
SOURCE: Interviews with coop leaders; annual reports
▪ To ensure continued growth and competitiveness over a sustained
period, MONDRAGON established funding mechanisms to ensure the survival and success of new initiatives
▪ 10% of gross profits are placed in a “developmental fund” to finance innovation, research, and international business development
▪ Tactical and frequent investments are made in a range of research and education centres to promote new ideas
Protect growth capital
Case example: MONDRAGON
▪ Spanish cooperative with
EUR 15 billion in revenues,
83,000 employees, and
281 enterprises and entities
Examples of best practices
Expose cooperative to more external perspectives
1
Encourage collaboration across different parts of the business
2
Protect growth capital3
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Agility in developing and sourcing talent: cooperative case examples – 1/2
SOURCE: Interviews with coop leaders; annual reports
▪ Mouvement Desjardins renewed the mandate for its “Institut
coopératif Desjardins”, expanding its educational missionto include leadership development and technical skill-building programs
▪ The Institute offers its courses to both elected and executive leaders, separately or jointly, depending on the topic. For example,
in the organization’s “leadership and performance” program, the top
400 executive leaders take a series of workshops and field-based
training sessions focused on honing their leadership skills at the personal, team, and organizational levels
▪ Over approximately 2 years, the Institute launched 13 strategic talent-development programs, with many participants having taken
on more senior leadership roles in the organization
▪ Formal feedback indicates that a majority found the Institute to be an invaluable contributor to their career development
Example of best practices Actively identify top talent and create leadership development tracks for these individuals
Actively identify top talent and create leadership-development tracks for these individuals
1
Adopt recruiting and training prac-tices that change how younger po-tential employees view coops
2
Case example: Desjardins
▪ Desjardins is North America’s
largest credit union with assets of
CAD 194 billion, 5.6 million
members and clients, and almost
45,000 employees
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Agility in developing and sourcing talent: cooperative case examples – 2/2
SOURCE: Interviews with coop leaders; annual reports
▪ Farmers Cooperative (FC) was finding it difficult to attract the young talent that could help it feed its 23% annual growth ratein 2008
▪ FC rolled out a recruiting campaign in collaboration with Iowa State University. Every quarter, the CEO organizes events with
high-potential students and FC offers scholarships to increase its
visibility among college students. The best students are given paid
internships
▪ The organization even moved its headquarters close to the university to help make these programs accessible
▪ The move enabled FC to double its intern pools and improve first-year retention from 47% to 88%
▪ Overall turnover has dropped to 10% from 25%
Example of best practices Recruiting and training practices that change how younger potential employees view coopsActively identify
top talent and create leadership-development tracks for these individuals
1
Adopt recruiting and training prac-tices that change how younger po-tential employees view coops
2
Case example: Farmers Cooperative
▪ Farmers Cooperative is the largest
farmer-owned agricultural coop in Iowa
with more than 5,300 members
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Context and methodology
An in-depth review of OHI
Content
Managerial best practices of cooperatives
McKinsey & Company
Copyright © 2012. All rights reserved19| 19
The OHI is a health diagnostic process that offers a deep understanding of culture that extends beyond employee engagement
The Organizational Health approach to assessment
▪ Focuses on the breadth and depth of organizational health. Identifies current
levels of health (outcomes), methods to deliver health (practices), and the
leadership beliefs and mindsets that limit performance improvement – not
employee satisfaction
▪ Uses multiple data sources (survey, interview, focus groups, employee survey
data) for a broader view
▪ Leverages world-class company benchmarks (sector specific) to help
determine the strength or severity of the survey scores
▪ Assesses the drivers of current outcomes (practices and mindsets) to
disaggregate “root causes” of an organization’s barriers to success
▪ Drills down from outcome to practice to mindset to understand “what do you
do about it”
▪ Leverages analytics and findings from the database of over 1,200 surveys to help prioritize where to focus (based on the healthiest organizations)
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Organizational Health is made up of outcomes and underlying management practices
Outcomes Management practices
▪ Outcomes describe the current results that an organization has achieved
▪ Each outcome shows the percentage of respondents who either agreed or strongly agreed with the statements
World Class
Superior
Slightly above average
Below average
▪ Management practices describe the current actions that managers at an organization take to achieve results
▪ A bar chart shows the percentage of respondents who either agreed or strongly agreed with the statement
Innovation
Top-down Innovation
Capturing External Ideas
Bottom-up innovation
Knowledge sharing
74 8668 53
SOURCE: McKinsey Organization Practice
ILLUSTRATIVE
49%
75% 45%
54%64%
64% 49%70%
88%
▪ Example: “The company generates enough high-quality ideas to achieve its business goals”
▪ Example: “The company imports practices from other companies and industries”
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Interview quote
-23
-17
-10The organization uses standard operating procedures to influence the way employees do their work
Strong people development process and awareness of important issues but need stronger performance improvement dialogue
Advantage in not being slave to short-term performance, but leaders highlight need for more performance transparency
Gap to the meanPercent1
The organization ensures transparency and rapidly passes negative information up the command chain so senior leaders are aware of important issues as they arise
Managers provide feedback to individuals to ensure that they have an accurate understanding of their strengths, weaknesses and development priorities
The organization’s control systems enable us to minimize unexpected performance results
Business performance reviews in the organization rapidly identify the real causes of problems
People development practices are perceived as a strength, but performance management needs reinforcement
COORDINATION AND CONTROL
SOURCE: McKinsey Coop Organizational Health Index survey; interviews with coop leaders
20
18
1 Relative difference between coops mean and overall mean (percentage points difference divided by mean)
The fact that we do not have to publish quarterly reports is a real competitive advantage: we have the time to do things right
I sometimes have this impression that the fact that being a cooperative comes with some managerial laxity
A great paradox with cooperatives is that they are not as transparent as many publicly traded companies. This is true internally and externally
Core belief on coordination and control: A top-tier organization aligns goals, targets, and metrics managed through efficient and effective processes, and measures and captures the value from working collaboratively across organizational boundaries
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Interview quote
Cooperatives are highly responsive to customers opinions but too inwardly focused relative to business environment
Importance of interacting more directly with competitive and government environments
Gap to the meanPercent1
The organization is highly responsive to customer opinions and needs
The organization actively considers the response of government regulatory bodies when making decisions
The organization effectively responds to competitive market actions
The organization has developed high levels of customer loyalty
Despite their proximity advantage, coops are generally too inwardly focused when it comes to their business environment
EXTERNAL ORIENTATION
SOURCE: McKinsey Coop Organizational Health Index survey; interviews with coop leaders
6
-3
-23
1 Relative difference between coops mean and overall mean (percentage points difference divided by mean)
Many of our leaders believe that because our organization is unique, it is not worth comparing ourselves to the competition
Despite the economical importance of the coops in our country, we barely play a role in national regulation changes because we are not uniting our voices
Core belief on external orientation: A top-tier organization makes creating value for customers its primary objective, while focusing on creating value for all stakeholders
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Core belief on innovation and learning: A top-tier organization is able to capture ideas and convert them into value incrementally and through special initiatives, as well as to leverage internal and external networks to maintain a leadership position
The organization’s systems and processes facilitate cross-functional initiatives
Cooperatives are challenged in creating, capturing, and converting new ideas into value
Cooperatives tend to innovate at inception, but fail to reinvent on an ongoing basis
Gap to the meanPercent1
Management encourages different parts of the organization to work together to make improvements
The organization changes/improves at a greater rate than its industry does
Coops’ low capacity to change and innovate is hampering their progress
INNOVATION AND LEARNING
-5
-13
-21
1 Relative difference between coops mean and overall mean (percentage points difference divided by mean)
Much of the cooperative movement’s genesis was to find innovative ways to deal with underserved needs. Coops are innovative in their DNA…
However, a root-based organization was built from the bottom up over time; ends up with a silo culture where ideas hardly move from one division to the next, and new ideas don’t see the light of day
SOURCE: McKinsey Coop Organizational Health Index survey; interviews with coop leaders
Interview quote
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Coops feel a competency and capability-building gap remains despite employee training and external hiring
CAPABILITIES
11
11
1 Relative difference between coops mean and overall mean (percentage points difference divided by mean)
Capability management gap despite training and external hiring strengths
Coops must overcome a perceived notoriety deficit and becomeemployers of choice
Gap to the meanPercent1
We are often perceived as too local without enough career growth opportunities. This is a major structural disadvantage when trying to attract young talent
Some of our recent recruits left because they were frustrated with the outdated technologies; this is very challenging for us
It is challenging to attract talent to rural locations; we need to be more thoughtful about people rotation and career growth
The organization consistently hires outside talent
In the organization, people receive the training and development they need to be effective in their roles
The organization has the necessary competencies to achieve its strategy
The organization uses job rotation to broaden the experience and capabilities of its talent
The organization outsources functions or activities that can be better done by others
-15
-24
-21
SOURCE: McKinsey Coop Organizational Health Index survey; interviews with coop leaders
Core belief on capabilities: A top-tier organization builds the institutional skills required to execute its strategy, as well as distinctive capabilities that create a long-term competitive advantage
Interview quote
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Coops are effective at aligning the organization around a consensual direction and organizational vision
DIRECTION
Effective managerial practices to drive direction and organizational alignment
Concern with achieving a broader member engagement for an even stronger direction
Gap to the meanPercent1
On paper, our democratic mechanisms are great. The reality is that only a minority of members are engaged
I often wish that our members would be more involved in shaping the [strategic] agenda
Core belief on direction: A top-tier organization crafts and communicates a compelling strategy, as well as providing purpose, engaging people around the vision
Interview quote
9
3
6The organization’s vision is communicated throughout the organization
Management articulates a vision for the future of the organization that resonates with my personal values
The vision for the organization’s future is widely understood by its employees
SOURCE: McKinsey Coop OHI survey; interviews
1 Relative difference between coops mean and overall mean (percentage points difference divided by mean)
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Leadership style is inclusive and caring, but decision-making is slowLEADERSHIP
Strong inclusive, caring, and coherent leadership but slow decision making
Cooperative leaders appreciate consensus but aspire to more speed and assertiveness in decision making
Gap to the meanPercent1
The great thing about our leadership style is that it is consensus-based; the flip side is that… it is consensus-based, which takes time, a lot of time, to arrive at a decision
Leadership is almost taboo in our world. We will not see a coop leader on the cover of Times magazine anytime soon
I hear a lot of my peers mention that they would like coops to play a larger role in the global economy, but we need more ambitious plans if we are to reach these aspirations
Core belief on leadership: A top-tier organization shows care toward subordinates and sensitivity to their needs (i.e., high support), sets stretch goals, and inspires employees to work at their full potential (i.e., high challenge)
Interview quote
9
10
18
-22
Managers ask the opinions of others before making important decisions
Leaders are steering the organization in the right direction
Leaders role model the values of the organization
Leaders make decisions in a timely manner
SOURCE: McKinsey OHI cooperative survey; interviews
1 Relative difference between coops mean and overall mean (percentage points difference divided by mean)
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Cooperatives enjoy a positive culture and working climate but struggle with creating a sufficiently performance-focused culture
CULTURE AND CLIMATE
Positive culture and climate but not sufficiently performance-focused
Clear pride in the culture but desire to instila more performance-driven culture
Gap to the meanPercent1
For most of our employees, it is simply unthinkable to work for another type of business than a cooperative. There is something unique about the ambiance that is not replicable elsewhere
We should start by clearly defining ‘performance’ for us, and how to make short-term ROE tradeoffs vs. our long-term priorities
The one element we have to improve is to work as a whole entity. Our culture is really root-based, and we must start thinking about ourselves as a coherent group so our members get the advantage of dealing with a multi-billion dollar business
Core belief on culture and climate: A top-tier organization creates a baseline of trust within and across organizational units and a strong, adaptable organization-wide performance culture
Interview quote
7
6
14
-7
-17
There is a good atmosphere within the organization
The organization’s culture and values are clearly defined
The organization’s culture positively influences the way people behave
Management emphasizes the importance of efficiency and productivity
Managers encourage employees to experiment with new ideas to improve performance
SOURCE: McKinsey OHI survey; interviews
1 Relative difference between coops mean and overall mean (percentage points difference divided by mean)
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Employees are clear on their roles and objectives but see an opportunity in better individual accountability and performance-based consequences management
ACCOUNTABILITY
Employees feel ownership and have challenging targets but do not see the link between results and consequences
Commitment but limited consequence management
Gap to the meanPercent1
Core belief on accountability: A top-tier organization creates clear roles and responsibilities, links performance and consequences, and encourages an ownership mindset at all levels
Interview quote
The majority of our staff is keen on doing what it takes to satisfy our members
It is very hard to deal with poor performers. It is not part of our culture, and we wait too long
11
16
17
0
-9
-10
Managers create a sense of ownership or belonging to the organization
Employees receive clear explanations of what has to be achieved in their jobs
The organization sets performance goals for individuals that are challenging
The organization has created clear links between performance and consequences
The organizational structure helps create clear accountability
Employees within the organization feel they are accountable for the results they are expected to deliver
SOURCE: McKinsey Coop OHI survey
1 Relative difference between coops mean and overall mean (percentage points difference divided by mean)
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Motivation is high, but a gap exists with regards to the credit they receive in the community
MOTIVATION
Employees relate to the values and mission of their cooperatives
Challenge in getting broad credit in the community
Gap to the meanPercent1
Core belief on motivation: A top-tier organization motivates through incentives, opportunities, and values, and taps into employees’ sense of meaning and identity to harness extraordinary effort
Interview quote
Our employees get motivated by the impact we have in our community
Our employees see the impact we have in our community, but our community doesn’t see it; we have a notoriety deficit and this threatens long-term motivation
SOURCE: McKinsey Coop OHI survey
23
16
18
The organization’s employees are highly motivated
Leaders in the organization motivate employees to perform by providing encouragement and support
In the organization, employees are generally enthusiastic about their jobs
1 Relative difference between coops mean and overall mean (percentage points difference divided by mean)