2004 HRINZ HR Award Winners
Hosting and Datacentre Services
The Background
Hosting and Datacentre Services Ltd (HdS) is a joint venture company between Hitachi Data Systems and New Zealand company DBEMCO.
It is their view that multinationals struggle in NZ, particularly in the IT industry, as they commonly try and impose a US business model that works in the US and Europe, but does not work here. New Zealand is simply too small. By global standards there are only two companies that could be classified as Tier 1. Few even make it to Tier 2. Consequently, the multinational value proposition is too rich for New Zealand customers – the global overhead diluting the value.
Hitachi Data Systems was no different and faced the same choices – follow the global rules and lose money, or break the rules and make money. They chose the latter and, as country managers of Hitachi Data Systems, they changed the business and developed a services business that lowered the cost of IT for the SME market, principally through outsourcing.
A management buyout was the catalyst for a change in culture. No more would politics and hidden agendas rule. They would be replaced by common sense, respect and honesty. Back stabbing and competition would be replaced by sharing and supporting. Misery would be replaced with fun. HdS decided that if we were going to risk everything to buy the company, and we did, then we were going to have fun along the way. There was no sense in taking on more risks, earning less, and enduring the same misery.
The other reason why HdS consciously decided to improve their culture was their view that life is too short not to have fun at work. Too many Kiwis put up with 48 weeks of misery to have four weeks of fun at the Gold Coast. Too often they used to hear people say, “I am only doing this to save enough money to get out of it.” So they decided to change their culture to ensure they have fun. They also realised that culture was their most important asset.
So HdS embarked on a journey to define their culture and proactively manage it. This submission tells the story of our journey so far.
HdS’s story is about discovering the power of culture and the impact it can have on the bottom line. It’s about challenging some traditions, trying new things, stretching boundaries, and realising more of their real potential.
HdS believes that NZ companies need to partner. But the first must have the right culture for partnerships to succeed. This is critical to New Zealand’s economic progress.
How HdS manages their Culture
HdS manage their cutlture through 5 elements
Personal Leadership
Alignment
Values
The Rock
100% Positive - Say It Positively
The Impact on HDS
HdS is a strong case study of the impact of culture on the bottom line. In their first year after the management buyout they only focused on changing the culture. They had the same staff, same customers, same desks, phones, and computers, same everything – the only thing they changed was their culture. Their revenue increased by 40 per cent and their EBIT went up 100 per cent. They have since doubled the size of the company. All of this is attributed to their culture.
HdS came to realise that their customers were interested in their culture. They wanted to share in a positive, caring, sharing environment. People are drawn to it. HdS now find their culture as a competitive differentiator.
The directors of HDS are passionate that all these items demonstrate they have positively changed their journey, which is exciting, fulfilling and generating results directly and indirectly in our lives. We have put a little imagination and creativity into some simple concepts and are deriving fascinating results.
