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©Walking the Talk, Ltd, 2017 All rights reserved | Aug17
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Case Study
Culture transformation
Healthcare
©Walking the Talk, Ltd, 2017 All rights reserved | Aug17
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Case StudyCase Study
“Transforming organisational culture requires a significant
resource investment, in both time and money”
Nieves MurrayChief Executive
©Walking the Talk, Ltd, 2017 All rights reserved | Aug17
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Case Study
IRT Group was established in Wollongong in1969 by Dr Max Diment, an Honorary MedicalSuperintendent at Bulli Hospital. Dr Diment hadidentified a need to stem the flow of frail elderlypeople into hospital by providing them withbetter options in housing and care.
This pioneering spirit drove IRT to be one of thesector’s most innovative providers. It builtWollongong’s first apartment-style retirementvillage in 1970 and piloted what we now know ashome care in the 1980s.
A culture of innovation and questioning thestatus quo led IRT to new heights. It expandedthroughout the Illawarra and NSW South Coast,into Sydney, the ACT and South East Queensland.
The challenge
IRT Group is one of Australia’s largest community-owned providers of seniors’
lifestyle & care.
After almost 50 years of sustained growth, IRTnow operates from 32 communities, supporting8,000 customers and employing over 2,300people. In 2015/16 IRT increased its asset baseto $1.06 billion and grew its revenue to $162.3million.
There’s no doubt IRT is a very successfulorganisation. However, current Chief Executive,Nieves Murray says this success has come at acost of organisational “pioneering spirit.”
“Our current and future challenges provide uswith an opportunity to rediscover those roots. Toreconnect with what makes IRT great, and that ishaving the courage and conviction to invest innew ideas to truly improve the lives of olderAustralians,” Ms. Murray said.
”We became so focused on growing our organisation that
we lost touch with our roots, our pioneering spirit.”
©Walking the Talk, Ltd, 2017 All rights reserved | Aug17
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Case Study
The current and future challenges of IRT include:
• Changing customer needs and expectationsBaby Boomers are demanding more choicesand greater control in where they live andhow they’re supported as they age.
• Market deregulationThe Government has stopped fundingproviders to deliver home care services.Government funding is now provided directlyto the consumer, who can choose from agreater variety of providers. It’s called‘Consumer Directed Care’ and it’s beingpiloted in residential aged care too.
• Less government fundingMore Australians than ever requiregovernment-funded aged care. As ourpopulation ages, the Government is acting tomitigate the ever-rising cost of care byrestricting provider access to funding.
In 2016 Ansell Strategic found that 25% of not-for-profit aged care providers were operating ata loss and Government funding cuts in Budget2016 would further reduce provider revenue by11%.
“This very challenging fiscal context, combinedwith changing customer demands and marketderegulation will sound the death knell for manyproviders. We’re determined not to be one ofthem,” Ms. Murray said.
“The Culture stream was a priority because we
understood we needed our employees to join us on our journey of transformation.”
Nieves Murray, Chief Executive
©Walking the Talk, Ltd, 2017 All rights reserved | Aug17
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Case Study
“Through a consultative process with Walkingthe Talk, IRT determined it needed to reconnectwith its founding philosophy by creating aculture that was more customer centric andinnovative. The organisation discovered its‘Northern Star’ — to create the ecosystem oneof them,” Ms. Murray said.
To reach it’s ‘Northern Star’ IRT charted itscourse on a Transformation Map. The mapincludes five streams of work; Customer,Innovation, Culture, Business Excellence, andCompany.
The approach
An eight-step approach using Walking the Talk’smethodology was adopted:
1. Target culture definition by the ExecutiveTeam.
2. Culture assessment to identify the strengthsand areas for improvement in the currentculture.
3. Development of a culture plan. The planidentified 12 initiatives to address the gapsbetween current and future culture.
4. Top team development in the context of thetarget culture.
5. Leadership conference for the top 80leaders.
6. Leadership development.
7. Identification and development of a numberof culture champions.
8. Implementation of the culture plan,including definition of metrics and regularpulse surveys to measure change.
“Transforming organisation culture requires a significant resource investment, in both
time and money”. I’m pleased to say that IRT’s investment is delivering dividends, both for
our organisation and our customers.”
Nieves Murray, Chief Executive
©Walking the Talk, Ltd, 2017 All rights reserved | Aug17
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Case Study
The results
Guided by Walking the Talk, the eight-stepprocess enabled IRT to move through a clearcoherent journey of culture transformation.Employee communication was critical at allsteps. The target culture, key findings of theculture assessment, key elements of the cultureplan, and the plan’s implementation timetableand progress have been communicated to allemployees throughout the journey.
The rapid success of IRT’s culture-shaping projectwas due to a number of critical factors:
The commitment of the senior leadership teamThey stayed close to the project and were opento personal change, which provided a positive‘shadow’ and inspired a broader behaviouralshift.
Critical systems changesEnabled accountability and provided a strongsymbol of the new culture.
A dedicated culture planning teamCulture champions who drove implementation ofthe plan.
©Walking the Talk, Ltd, 2017 All rights reserved | Aug17
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Case Study
Walking the Talk is a world leader in helping clients align their culture with their strategy to deliver business results.
Our proven methodology creates powerful culturetransformations that leave organisations with lasting cultureleadership and culture management capability.
Simply put, we make culture do-able.
Contact us to find out more about how culture transformation and management can help you achieve your business goals.
Head Office: +31 (0) 20 520 6872Europe: +44 (0) 207 100 6999Asia Pacific: +61 2 8310 5285Latin America: +55 19 3329 1038
walkingthetalk.com
More insights can be found in the book ‘Walking the Talk,
Building a Culture for Success’, by Carolyn Taylor
Random House Business books ISBN 9781847941572.
