CASE STUDY DETAILS

Metso – Culture transformation through engagement and alignment

Situation

In the pursuit of growth, synergy, and enhanced competitiveness, Metso and Outotec merged to form a tier-one customer partner, driving the necessary change in the mining and metals industries.

In the Asia Pacific region, the merger brought together employees from both Metso and Outotec, aiming to take the best of both organisations and evolve into the ‘best partner for our customers and the best place to work for our people’.

To achieve the goal of becoming a tier-one company, it was imperative to transform the cultures of both Metso and Outotec and align them with a shared vision. The swift implementation of the new organisation was crucial for minimising disruption, maintaining company performance, and reducing uncertainty for employees and customers.

The COVID-19 pandemic posed additional challenges, requiring both companies to quickly adapt to maintain service quality while ensuring employee safety and compliance with government regulations. The integration involved about 1,200 employees from diverse backgrounds, processes, and systems, and faced several difficulties, including:

The history of competition between the two companies immediately creating new silos and ‘Us vs Them’ thinking
Cultural differences within the organisation
Low engagement levels
Unrealistic expectations of the readiness of the new organisation
Process and system integration challenges

The Approach

However, the announcement of the merger elicited varied reactions from the staff, ranging from enthusiasm to doubt and anxiety. Recognising the importance of addressing these emotions, the organisation created opportunities for dialogue and feedback, hosting informal meetings and online forums, and implementing change readiness initiatives to facilitate the transition process.

Towards the end of the organisation implementation a values campaign was launched to align with the desired culture, involving team discussions, visual cues, and culture champions. Metso’s culture plan was communicated through town halls and internal channels, ensuring transparency and engagement.

MODAL was engaged to partner with Metso, in helping merge the two cultures, create organisational alignment, foster increased collaboration, leadership capability and improve engagement. The work started with alignment of Senior leaders first, building trust, defining a common vision and way of working, and sharing responsibility for the culture through a series of workshops.

Cross-collaboration between teams was fostered through alignment sessions, and employees were engaged by inviting feedback, addressing concerns, and involving them in shaping the new culture. This inclusive approach created a sense of ownership and commitment among the workforce.

Internal communication played a critical role in keeping our people updated on the progress and success of the culture-building process. Various channels, including internal news forums, manager information sessions, and large town halls, were utilised to share information and gather feedback. Additionally, senior leaders hosted small group sessions, “People Talks,” where issues were discussed, and ideas were brainstormed collaboratively.

Services Provided

Executive Team Development

Aligned the team, clarified purpose, synergised efforts, and enhanced personal impact.

Team Alignment

Worked with each Executive Director and their teams to align them with the desired culture.

Cross-Department Collaboration

Facilitated workshops to promote collaboration and alignment across different departments.

Culture and Leadership Summits

Co-designed and facilitated summits to engage leaders from the top four organisational levels.

Leadership Development

Provided leadership development programs, including executive team and individual leadership coaching at various levels.

Implemented specific culture development initiatives, including focus groups, business planning, team development, consulting, and coaching, in selected departments.

Assessed the current cultural state through various measurement tools, including surveys, interviews and focus groups, to gather insights into the existing culture.

Developed strategies to address systems, symbols, and behaviours that aligned with the desired culture.

Facilitated the development of a clear desired culture by updating organisational values and adopting a specific culture archetype, in this case, ‘Customer Centric’.

360-Degree Feedback

To enhance self-awareness and development.

Change Leadership

Designed and facilitated “leading through change” programs for leaders at two organisational levels.

Outcomes

Before the merger, Metso and Outotec had distinct cultures shaped by their histories and business practices. Metso’s culture today reflects a unified, inclusive, and ambitious organisation committed to continuous improvement. The impact of Metso’s culture transformation is measured through various key performance indicators, including employee engagement, innovation, and organisational performance.

One of the best practices obtained is the importance of transparent communication and inclusive leadership. Engaging employees in the transformation process and aligning leadership with the new cultural vision have been critical to Metso’s success. The emphasis on psychological safety, team health, and leadership development has fostered a collaborative and supportive environment where employees feel valued and motivated.

Employee engagement markedly improved (employee Net Promoter score increased from -1 to +50 over a 3 year period.

According to Asia Pacific Executive John Aran “MODAL played a significant role in fostering collaboration and alignment across the market area, creating a platform for leadership to work together and surface issues”. The outlook for Metso is positive, with continued focus on innovation, customer satisfaction, and employee engagement as drivers of success. Metso have shown margin resilience despite market challenges, maintaining a strong position as an employer as well as for the shareholders.

“Our ability to integrate and leverage the strengths of both organisations has resulted in a stronger market position and increased competitiveness.”Stuart Sneyd, President Asia Pacific Market Area