Columbia House, a stalwart in music distribution, faced the catastrophic results of new technology. Revenues had dropped 40% in six months with the advent of downloadable music. As a result, the workforce had been downsized and morale was low. The investors wanted to stabilize revenue and increase the margins so that they could sell the business.
We installed management practices that emphasized coordination, mobilization, and innovation. Operating with managers we developed a culture with shared values of competence, ambition, passion, and support. With our custom-tailored program, we worked with Columbia House to create real projects, such as managing a call center and starting a new business line. HP2’s practices were applied to these projects as employees learned the principles and practices of peak performance.
A cultural assessment completed before our intervention and six months after showed dramatic improvement in all areas. Communication and coordination improved by 20%, alignment with vision and mission by 30%, and alignment with values, 35%. Both revenues and margins increased. A new business line went from concept to launch in seven months, rather than 18, which had been the previous standard. As a result, revenues stabilized and investors were able to sell the business.