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CASE Volvo I Culture Transtormation and oevelooment Journey…
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
