1. Write down in a sentence or two, your definition of winning culture?

A. A winning culture is to establish a clear mission statement that tells its employees how it

intends to be successful and communicate the values that lay out the rules to accomplish the mission. It is characterized by creating entrepreneurial spirit across the company.

2. What do you like about Rorsteds approach?

A. Rorsteds main tool for successful approach is that his words and actions are aligned,

which is important for being a leader. He recognized the pillars for winning culture serving the customer, growing the business and developing employees. They have established a clear focus in establishing a winning culture. He had established a clear focus by communicating clear objectives which are long term. Added to that he framed the values which are the rules to accomplish the mission and guided employees to take every day decisions. He took time to communicate them to all the employees to make them understand that they are all part of it. The second step of implementing the cultural overhaul by new performance management system has increased the potential and performance of every employee and as a whole the company. It has been instrumental in achieving his first strategic priority to achieve full business potential. He has also linked the evaluation and compensation of key employees to achievement of new strategy.
Step in leading change Create urgency Analysis Rorsted has created a need for change by announcing the targets to be achieved in next three years to public. Rorsted has involved all the top management team across globe in fact all its employees in the change process to create a winning culture He had the mission and values in places which are torch to success He has taken tough decisions to close some factories, laid of non-cooperative yet performing employees and majorly dumped some brands He has changed the core of the culture by redefining values and implementing new performance system

Form a coalition Create & Communicate vision

Remove Obstacles Anchor the changes in corporate culture

Rorsted has proved that culture is not that is created by words plastered on wall or carried out on laminated cards, but rather culture is defined by actions on the ground. 3. What are the risks?
A. The risks involved in the process of leading Henkel to winning culture by Rorsted are: 1. Employee risk: Sudden expulsion of performing employees would lead to instability

in the system especially here when such short term goals are set.
2. Competition risk: Withdraw of non-performing brands might leave a edge to

competition in that category.

3. Operational risk: Close of manufacturing facilities and sudden centralization of

certain departments might affect the performance and in turn the customers.
4. Behavioral risk: Change in performance reward system and creation of

entrepreneurial spirit among employees would make people reward driven rather than performance driven.
5. Financial risk: Major changes like withdrawal of brands, closing down

manufacturing units and setting high goals would impact the share value of the firm. People would like to refrain from investing in such firms as they deemed to have more risk.
6. Performance risk: Categorization of employees into grids which is more or less

relative might demoralize them and reduce performance.

4. Assuming that the 2012 EBIT goal is achieved, how should Rorsted motivate high performance for the next five years? A. The following actions need to be taken to motivate high performance:
1. Communicate and Celebrate: Communicate the success to all the share holders and

employees about the achievement of goals. This would make them identify that they are a part of success.
2. Perform a cultural audit and set new expectations: Encourage and build upon the

entrepreneurial spirit in the employees and set new expectations from the business.
3. Manage the drivers of winning culture: Structure, talent management system and

performance system must be aligned to the direction set for the next few years.

4. Drivers of success: Communicate and develop the winning culture in the

organization. Products can be imitated by competitors but not culture. Create 360 degree communication on these drivers of success within organization.
5. Performance evaluation system: Provide training to the employees to across the

grid and who have the potential.

6. Talent management system: Identify the young managers with high potential and

assign them challenging tasks to build them as future top management cadre for the company.