This case exemplifies a CEO-led organizational transformation driven performance measurement by stretch goals, and accountability. Historically, Henkel was a comfortable, stable place to work. Seeking to overturn a pervading attitude of complacency, Rorsted implemented a multi-step change initiative targeted at constructing a "winning culture." In November 2008, he declared a group of ambitious financial targets for 2012. As the global economy was roiled by monetary turmoil, he reaffirmed his dedication to such goals, sending a clear signal to Henkel workers and external stakeholders that explanations were no longer okay. Rorsted introduced a new group of five company values-replacing the prior list of 10 values, which few workers could recite by memory-the first of which highlighted a focus on customers. He also instituted a new, simplified performance management system, which rated managers' performance and advancement possibility on a four-point degree.
The system also included a forced ranking requirement, mandating that a defined percentage of employees (in each business unit and firm-wide) be ranked as top, powerful, average, or low performers. These evaluations appreciably impacted supervisors' bonus damages. In 2011-the time in which place is taken by the case -Henkel is well on its way to reaching its 2012 objectives. Having lose practically half of its pioneer management team, along with abundant product sites and brands, Henkel appear to be a leaner, more aggressive and "winning" association.
PUBLICATION DATE: February 07, 2012 PRODUCT #: 114S05-HCB-SPA
This is just an excerpt. This case is about FINANCE & ACCOUNTING
