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CASE Volvo I Culture Transtormation and oevelooment Journey (2000-2011)

onartient and bersister work win our wanked cullure is ore or our chucas success

factors "Maonus arander. CEO VoIvo

Volvo IT is a global company based in Gothenburg. Sweden. Its primary role is to

provide services and sugoor teams to me posal networ o Voso industries

They proactively worked with their culture starting in 2000, lod by a fuil-time Culture

Monaser. who was a non-voting mambar of the Erecutive team, This case atyay covers

thar outure transformason and evalooment urney ourno the course of eleven years

(2000 10/20111

The core of the culture curney was the Culture Ambassador Program, initiated in 2001

Over the following vars. vovo trawed mors than s Culture antassadors whio

activry doveloaad ise of tuin thisughout the canarisation. Tha tradamantal intration an

belier wih whys Culture ambassador orogram was to amcower and train all formal art

informal waders to develoo we capabilsy to grow a cesifed culte. It was an of-going

journay to ind. deline, grow and cam for meir espouses oore values. The focus of the

culo work avolved ovor and, as toy rospongod to change tharket conditond

stratood ambitions and the noads al the organisation, amplovoes and stareholders. Hero

are the themes in they culture loumay that ematoed over times

Al the start of the oumey, Volvo IT was a newy formed company created by consolidating the I departments from seven Volvo business units plus the Group

dapartment Tha first calongs was to form a shared culture for the naw

organization. mainly located in Swan. Balosen and USA. Tonma was

with Weir od business units so mere wasnt a shated identity.

ponitionino and competition. Their key chollenge was to caveloo a snored set of woo

and culture among the dispersed teams and create one Volvo IT identity.

Once the culturl norms had boor

extomally, sacauso viey bacare a sagaratu entity from Voivo, the former internal

altitudes, Additionally Voivo started to have external customera. During this period.

voro grow from savo to rood employees al is ceak in zove, As so00 as the minancial

crises hit. Volvo and Volvo excarionced a signiticant dedine of burniass. Thav nad o

make urgent decisions in order to cago with the situntion. As a consoquorce may had io let go of 2000 of their 7000 employees and consultants in six months' time to adjust to reduced business volume. While it was a difficult time, leadership was conscientious about living thair values, to maintain their desired culture and not erode trust, emplovess way

that d was a matiar of osasons suntainability. Smolovon satistocton mias mimained

atound o forcent

Once the market began to recover, Volvo IT grew again to reach 7000 employoes and

contraciors in z011 Dunng this period, the focus o the culture was on tulling theit

strategy while continuing to develos and care for their culture, buring these ten vegre

Vowo continualy trainad ther Culturo Ambassadors to co-creativoly work with theit

Consequently, Voivo IT maintained extraordinarty high levels of employee satisfaction,

even when they had to redosezdoo start. ampioves Satiotaction inder dESi remained

around 90 cercent over live yeats and customer satisfaction increased more than o percent during this decade. Several customers had100 percent satisfaction on the survey as a rosilt o improved proact delvery precision from 55 to go parcant. The corroany was

salaced as best in class for most attenctive Templover linted by Unremum

Source: Eneroth. T and Munday. A (2019) Transformino Cuture in Larger Organisations-Ko;

Erercises ard Che Stude:positioning and competition. The key chanenge was to deveiop a shared set of values

and culure alono the aspersed trams and create one vovo cantiv

Once tha cultural norms mad bean astablished internav. they segan to focus more

extesnally, decalso mey becare a supafalo

move a tie to mar no inn

rotationshios becare customer supolor rotationistos, which called for new cahaviors and

attitudos. Additionally, Volvo IT started to havo external customers. During this period

vorvo grew from 400 to 7000 amolovees at its ceak in 2009 as soon as the mancial

crises hit, Volvo and Volvo IT experienced a significant decline of business. They had k

make vroant decisions in order to cope with the situation, as a consequerce tay had o

let go of 2000 af the 700d emalovens and consultants in six month lime to maust

roduced business volumne. While it was a dilficult tre, loademnio was conscientious about

living ter values, to mainlath their desited cultule and not efode fuss, employees We

that was a matter o long -emm sustainability Emploves satistaction ratas remained

Once the markot booan so recover. Volvo grow again to roach 7000 omplovoss and

contracions in 2011. Gorina this goriod. the locus o tho culture was on fulfilino their

strategy while continuing to develod and care for their culture. During these ten years

Volvo IT continually trained their Culture Ambassadors to co-creatively work with thei

teams to secure their stratagic odisctives and culture

Consequently, Volvo IT maintained extraordinarily high lovels of employee satisfaction

oven whan they had to maducazooo stalt, emplovon Satistaction inons lest fomained

around go bercent over hive vests and customer satiedaction locranned mote than 30

percen dunno this decade, Several custorers had too percent satisfaction on the survey

as a result of improved project delivery precision from 55 to 90 percent. The company was

soloctod as bost in class for most attractive IT omplover (ratod by Universum

Source: Sneroth. and Mundor. A 2019 Transionino Cunre in Lanes Omanipacons-Re

Requitad:

a Discuss the strategic objoctives that emerged in the culture journey at Volvo ave

(10 Marks)

To Explain the sioniticance of corporate culture to the stratagv axecution grocost

(cl 'A strong cuture that ancourages actions. behaviors, and work practices that are in

valuable ally in the strategy erecution process*

Did this strategic management principle work for Volvo IT? Justify your answer.

id Discuar forces that cause a fim's culturn to molve

(5 Marks)

[10 Marks)

o Durine volvo culture transformation and develoment ourney, challenges watt

lacad to form a ghared culture emanating from the consolidation of sis it

Gentlemen rom seven volvorasshessunicorrectuacedatinien

Discuss the Four step procass business leaders go through in changing a prosier

[8 Marks]

in Exolan with tie use ols daoryn Heathy costures that ald good strategy erection