Context

Facing a period of poor financial performance, CSC Germany, a division of the global IT consulting firm, initially responded by tightening controls. This traditional approach, however, led to a further decline. In a bold move, the division's leadership, guided by Professor Vlatka Hlupic's "The Management Shift" approach, decided to reverse course by relaxing control and empowering employees with the freedom to innovate. This strategic pivot resulted in a tremendous success story.

Implementation

The implementation of this new strategy began within the 60-employee Enterprise Content Management (ECM) unit. To cultivate a knowledge-sharing culture, the division introduced peer group supervision and utilized in-house coaches for both individual and team development at all organizational levels. The positive impact was so significant that CSC Germany expanded the initiative to its 34-employee IT Architecture Consulting unit.

Outcome

The outcomes of this cultural shift were both swift and substantial. The ECM unit's revenue saw a sharp and sustained increase. The IT Architecture Consulting unit, which had been underperforming, showed significant improvement in productivity. Within approximately 12 months, the division achieved a 700% increase in profit, moving from a loss to substantial gain.

Other key metrics also saw dramatic improvements, with billability rising from 55% to 75% and utilization increasing from 75% to 90%. The workforce also grew from 38 to 49 employees, with some former staff members rejoining the company following the cultural transformation. Clients reported outstanding improvements in productivity, employee motivation, and engagement.