Case Study
Client Profile:
Client: Southern Fossil (division of Parent Energy) Industry: Energy / coal-based Location Three separate plants all in Southern US
− 2 units, 1150 MW − 3 units, 2250 MW − 3 units, 1880 MW Fuel: Lignite w/Powder River Basin Coal Plant Maturity: Operations beginning from 1971-1979 to present (all plants still online).
Challenge:
Southern Fossil’s business strategy included increasing capacity factor and reliability. In order to identify the factors for success, Southern Fossil decided to take a closer look at their three legacy plants. While the three legacy plants shared nearly identical operating systems, safety, and management policy and procedures, historical data showed that each of the plants had significant differences in performance. One plant had consistently shown higher performance than the other two.
The leadership of Southern Fossil wanted to determine what could be contributing to this difference in level of performance. To this end, Southern Fossil chose to look at culture as a possible variable. To help determine if culture was playing a role in the differences, Southern Fossil engaged Tosan to conduct an assessment of the legacy fossil plants to determine if there was a difference in the three cultures and what impact those cultures might have on performance.
Solution:
Nearly all of Tosan’s engagements follow the firm’s proven approach, which always starts with an assessment to understand the current state. Tosan proposed conducting a behavioral based assessment of organizational culture across all three sites. Tosan has administered this assessment to companies in every area of the energy sector, and we have found statistically valid commonalities and correlations between high expectations for Constructive behaviors and sustained high performers. (See addendum for descriptions of the three types of culture.)
The size and scope of this survey can vary from the entire population of the company to a subset of that population. After a discussion between the management of Southern Fossil and Tosan Inc regarding objectives and desired outcome it was determined that in order to achieve a statistically valid assessment with a confidence level of 95 percent (+/- 5%) the survey would be administered to a randomly selected group of 239 employees across the three sites.
Tosan offered Southern Fossil a choice in how to conduct the survey, via paper forms or electronically. It was determined that electronic administration would be the most effective and efficient method of administering the survey. Participants were given a two-week window in which to complete the online survey option.
Concurrently with administering the organizational culture survey, Tosan also administered a behavioral based personal assessment to the corporate office Executives and Senior Leaders from the individual plants. This assessment measures individual behavioral patterns using the same behavioral norms as the cultural assessment and allows a person to see how well their behavior patterns are aligned to both the Current and Ideal cultures.
Once the survey for Southern Fossil was closed and the full cultural report processed, Tosan performed an in-depth analysis of the data to determine what weaknesses and strengths were present in the current culture. Tosan prepared and presented an Executive Summary of the findings to Southern Fossil’s Executive Leadership team as well as to the Leadership teams of each of the three plants. Included in these meetings was the delivery of the personal behavioral assessment results to the leaders. These assessments showed how the leaders’ behavior was impacted by and contributing to the current culture at their respective plants. Tosan then facilitated the leadership through a high-level action planning session to identify steps they could take to strengthen positive aspects of their cultures and influence a shift of the unproductive behavioral patterns that were impacting performance.
Results:
The data for Southern Fossil’s three plants showed each plant had a distinct culture from the other two. The next step was to determine what correlations, if any, there were between the specific culture and the results of each plant. Tosan compared data regarding each plant’s Key Performance Indicators – including their safety record, cost and production levels, and environmental Impacts – to the survey results.
The results of this comparison were very interesting. The plant with the highest levels of performance, lowest levels of plant trips, and industrial safety incidents correlated to the culture with the highest expectations for Constructive Behaviors, and the lowest expectations for Passive/Defensive Behaviors.
Although each of the other two plants had distinct cultures, they shared lower expectations for Constructive behaviors, as well as higher expectations for Passive/Defensive behaviors.
Tosan provided Southern Fossil’s leadership with a clear picture regarding which leadership and employee behaviors were associated with high and low performance respectively. Southern Fossil’s leadership now knows specifically which behaviors to emphasize and promote in order to drive high performance across the legacy plants and within new build plants.
The individual behavioral surveys also provided the leadership with a picture of how their own behavior contributed to the current culture of each of the three plants. Tosan facilitated the leadership of each plant through personal action planning focused on shifting their behaviors to more fully support a Constructive Culture and reinforcing those behaviors in their respective organizations.
The leadership of Southern Fossil realized that not only was there an opportunity to improve the performance of their three existing fossil plants, but they could take steps to manage the emerging cultures at two new plants they were about to bring online.
Next Steps:
Tosan proposed two possible courses of action for the leadership of Southern Fossil. Currently they are considering their options and deciding upon the best course of action in this difficult economy and business environment.
One path was to strengthen the Constructive cultures of each of the three legacy plants through a targeted strategic culture change at each plant, beginning with one “pilot” plant. The other path was to take a strategic approach to developing the emerging cultures in a Constructive manner at the two New Build plants, also beginning with one “pilot” plant. These paths can be undertaken separately, concurrently or subsequently, and both contain many of the same steps.
Tosan begins every engagement with a client by conducting a Training and Planning workshop with the Senior Leadership. The purpose of this workshop is to provide an overview of Tosan’s approach and to engage the leaders in developing and implementing a plan tailored to their specific needs. This session serves as an opportunity to decide which of Tosan’s flagship programs are best suited to the specific needs of the client, as well as providing input for how best to tailor Tosan’s programs to address the client’s specific situation and needs. At each step in the process Tosan checks in with the client and evaluates the effectiveness of actions already taken and proposes the necessary next steps.
For the Legacy Plants:
As a supplement to the cultural data already gathered, Tosan proposed conducting a series of interviews and focus groups, as well as field observations. The interview questions and focus group designs are based on the fundamentals of Appreciative Inquiry. The interviewees are drawn from the Senior Leadership teams along with other participants from across the organization and the hierarchy. The data is used to aid the leadership team and Tosan in performing a deeper analysis of the cultural survey data and to clarify the picture of the current cultures.
Tosan also proposed having a subset of 50 randomly selected employees from each plant complete an organizational culture survey focused on uncovering the ideal state. This would provide leadership with a clear idea about which behaviors employees believe will lead to excellence.
When implementing a plan to change the current culture one of the key tenants is that a critical mass must be achieved, if the effort is to be successful. In order to do this, Tosan suggested conducting a series of targeted workshops delivered to all leaders in the organization, within a reasonable, but short time period. The intent of this is to overwhelm the system with a new set of behaviors and common language that supports the desired Ideal state that is being pursued.
Tosan proposed to tailor and deliver one of our flagship programs, which is targeted to building the capacity of all leaders to successfully lead a culture change. The outcome of this workshop is to increase the organization’s capacity to achieve a Constructive culture going forward.
For the New Build plants:
Tosan proposed administering an organizational culture survey to a random selection of employees currently engaged in the new build to clarify what type of culture was beginning to emerge. This proposal also included having 50 randomly selected employees from each new build plant complete the organizational culture survey focused on the ideal state in order to gain insight into the employees’ expectations for what type of culture that would promote excellence. Tosan would also conduct interviews and focus groups with the Senior Leadership team and others throughout the organization to supplement this data. The data from these surveys, interviews, and focus groups, is to be used as input to the Training and Planning workshop; the objective of this workshop being to work with the Senior Leaders in defining the Ideal culture and determining how to embed the Ideal culture within the plant.
Tosan proposed to tailor and deliver a two-day workshop that focuses on designing and embedding the desired culture upon completion of the planning session with senior leaders. This workshop is to be delivered to all the leaders so as to achieve alignment and commitment to the behaviors that will produce the desired culture. The intent of this workshop is to provide leadership with the knowledge and tools necessary to engage in actively molding the emerging culture into their “Ideal”, and to be invested in maintaining it into the future.
Conclusion:
In today’s environment, power generation plants are facing ever-increasing pressures to manage costs, increase reliability and safety, and decrease environmental impacts. Many have turned to improvements in processes, operating systems, and technology. These solutions lack one crucial aspect – people. While an organization may be able to purchase the best technology, and put in place proven processes, the desired and expected level of performance will likely not be reached, and surely not sustained, unless the people using that technology and participating in those processes are highly engaged and driven to perform for their organization.
In his book, Making Six Sigma Last, George Eckes explains some of the possible pitfalls to achieving successful Six Sigma or performance improvement. These are not understanding the role culture plays, neglecting to set clear culture change goals and objectives, poor culture change planning and follow through, and/or seeing culture change as a one-time event.
The data discovered in assessing the Southern Fossil plants exemplifies the idea that people and culture are the force multiplier needed to drive and sustain success. Nearly identical technology and processes were producing highly varied results. This was due to the differences in the cultural behaviors of the employees.
Many plants are at a crossroads in their life cycle where they are turning over staff and at the same time making improvements to meet the demands of a dynamic external environment. It is the responsibility of the leaders to know how their current culture is contributing to performance and what culture is required to sustain high levels of performance. Organizational cultures that engage employees are proving to be a key strategic asset to sustain performance change, meet market volatility, and continually provide quality products and services. Those that make assessing and shifting culture a part of their overall strategic plans will likely achieve their long-term goals through the full engagement of their employees’ creativity and abilities.
