Red Energy & Lumo – converging two company cultures
Red Energy + Lumo
Converging two company cultures
The story of a merger and a move to a new way of working
THE
BACK
STORY
Two Melbourne based energy companies, Red Energy and Lumo Energy, had the opportunity to merge geographically separate parts of the business together under one roof. The goal was to create a place where people wanted to work, where their people were their greatest advocates, and where these following key opportunities could be realised:
- Facilitating a cultural shift to bring values to life and create “one culture”
- Harnessing diversity to drive innovation
- Building org and learning agility
- Transforming: redefining the industry, creating a legacy and sustainable future, being better than average
“Values will ground us through the uncertainty.”
Iain Graham, CEO, Red Energy, Lumo Energy and Direct Connect
THE
CHALLENGE
Instead of avoiding or downplaying the hardships that come with a merger and a move, Red Energy/Lumo saw the opportunity to actually embrace the air of uncertainty to review with a broader perspective how their workplace and way of working could provide better support for its people and thereby produce better outcomes.
Even so, opportunities require delicate navigation. There were a number of challenges that had to be faced as part of the process of deciding on what a new way of working looked like:
- Balancing the here and now vs. the future
- Creating a clear and compelling vision of the future that is shared with and understood by the organisation
- Creating and aligning on a “shared” way forward
“The workforce has had the courage to come with us. We need to treat that trust with reverence and as a precious thing.”
Iain Graham, CEO, Red Energy, Lumo Energy and Direct Connect
THE
RESULTS
Eighteen months after the move to a beautifully designed and fitted-out heritage building by Carr Architects, the Employee Experience was measured again using the Leesman Index Survey.
Red Energy’s post-move LMI came in at 75.6; a wonderful achievement that places Red Energy in the Leesman+ category (awarded to only the top 5% of workplaces in the Leesman Index).
Compared to the pre-move result of 65.1, Red Energy has clearly taken huge strides to improve the way that their organisation supports individuals, and the following results are evidence that staff feel much more supported, productive and proud of their workplace:
Key increases of agreement (relative to pre-move results) indicating big improvements to the perception of how the workplace supports staff, include:
- 30 points for Pride (57% increase)
- 15 points for Productivity (25% increase)
- 12 points for Enjoyment (20% increase)
Other key indicators that the new workspace and way of working have a positive impact on staff:
- Improving corporate image an increase of 24 points (41% increase)
- Improving the workplace culture an increase of 6 points (9% increase)
- 20 out of 21 activities were perceived by staff to be better supported in the new workspace
- 23 out of 25 physical workplace features were felt to be better supported
Project gallery
Some images from our work in this space
Design: Carr Architects
Photos: Earl Carter
Conclusion
For some organisations, a move and/or a merger is a time of increased volatility. Uncertainty and disruption can impact staff and flow through the organisation, often impacting morale and sometimes leading to loss of talent. A common organisational response might be to play down or minimise the felt impact of the change.
Red Energy/Lumo chose a different way. They chose to embrace the way things were changing and use them as an opportunity to revamp the way that they worked and create an environment that better supported its staff.
“Veldhoen + Company have had a profound impact on our business and are now part of our DNA”
Iain Graham, CEO, Red Energy, Lumo Energy and Direct Connect
