Case Study: Parmalat Australia
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When a company hits a crisis, education and development programs are easy targets for cutting costs. Yet even under extreme pressures caused by overseas events, Parmalat Australia’s then new chief executive kept driving leadership development, through the programs run by Mt Eliza executive education.
Chief Executive David Lord’s decision to continue the programs was a tribute to his own leadership, says Laura Leslie, General Manager of Human Resources, Parmalat Australia. “We faced an extraordinary situation and it was this organisation’s most challenging time. And his message was clear: ‘The leadership development will continue – because we’re going to come out of this’.”
Parmalat has not only recovered but is back on the Milan Stock Exchange since October 2005 and performing to expectations after a complete collapse of the parent company in 2003.
“David Lord had an incredible vision of where he saw this leadership material going and how important it was for him and for the company,” she says.
“And he had an incredible trust in the HR group that we had chosen the appropriate courses aligned to the strategic plan.”
Parmalat Australia had approached Mt Eliza executive education well before the parent company crisis after its own needs analysis had prioritised leadership development across the company. Ms Leslie says it became a key element of the new strategic plan. Program Directors consulted closely with Parmalat to ensure the programs were tailored to Parmalat’s needs and they continue to evolve in response to the company’s feedback.
David Lord backed the Movers and Shakers Program for senior leadership team members and senior operational management, and the Leadership Development Program, for middle to senior managers.
When the crisis hit, “We never cancelled any course,” Ms Leslie says. “That was significant in keeping our momentum. From a senior leadership team perspective, it served a couple of purposes. It was a time away from the business for learning, but it was also a time for key executives to reflect on what we needed to do to go forward.”
“The course itself was so valuable,” Ms Leslie says. “The material is of such high quality. The speakers either have incredible experience to share or they provide a learning opportunity that is unique.”
The programs have evolved in response to feedback from Parmalat. As the programs have “cascaded” through the company, the feedback has been overwhelmingly positive, she says. “The most common response I receive is, ‘I’ve never been to a course that was so good’.”
The programs continue to benefit Parmalat both directly and indirectly, she says. These benefits include a common language for leadership, ongoing personal development of staff and, within her own group, the development of a new performance development program, drawing on their Mt Eliza experience.
Parmalat Australia is accelerating its leadership drive throughout its 1500-strong workforce by having Mt Eliza run Leadership in Action programs in Brisbane and Melbourne for first level managers whose operational commitments prohibit a live-in course interstate. These staff in supervisory roles are benefiting from the same material delivered by the same down-to-earth presenters who taught their senior executives, she says.
“We have had this incredible experience and opportunity to apply continuous learning to the business and leadership development is a key part of our plans going forward.”
