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Montana Wines: The Building of Excellence The Situation Montana Wines is today the number one selling New Zealand wine company in both the domestic and export markets. However, it wasn't always that way… In the early 1990s Montana Wines had low profitability and was struggling in the domestic and export markets. The then 350 employees were working in a difficult culture epitomised by the sales department, which was extremely competitive and inefficient. In 1991 Peter Hubscher was appointed as Managing Director, having joined the company in 1973, and immediately set about rectifying the culture as a means to improving performance. The Solution Like many senior managers, Hubscher was cynical of psychological work based assessments - until he discovered Human Synergistics. "We were looking for a consultancy that could help us institute both achievement values and human values into the team," Hubscher said. "Having trialled Human Synergistics I started using them more and more after being appointed Managing Director." Extensive diagnostic work was carried out using Human Synergistics': Hubscher involved Human Synergistics in a number of developmental strategies to help steer the organisation in the direction it is going today; including staff selection appraisals, performance appraisal systems, role negotiation, mentoring and strategy sessions. With their help individuals were encouraged to think in unique and independent ways, maintain personal integrity, work to achieve self-set goals and pursue a standard of excellence. Most importantly, it was Hubscher's clear leadership that made the difference. He placed enormous trust and responsibility in his young management team to face challenges head-on and make important decisions in order to get results. He told them that he expected them to make decisions and to make them knowing not all would be correct but if applied in a systematic way and fully scrutinised by the team, most would be. The Outcome Hubscher believes - "Create a great company and the profits will come, create great profits without the right culture and you will be forever hoping like hell the company holds together." Quite clearly Montana Wines is now a great company. In the last 11 years Montana has grown EBIT, on average, 22% each year. Not surprisingly, in 2001 Peter Hubscher was named New Zealand's FCB Marketer of the Year at the TVNZ / Marketing Magazine Awards. "I am a strong believer in culture," Hubscher said. "We now have a very constructive culture evidenced not only in our financial performance but also in the huge number of long term employees we have and the level of dedication our teams exude. "Working in partnership with Human Synergistics, we have created a skilled, happy and motivated workforce," Hubscher said. When asked if he had any advice for CEOs beginning a programme of culture reform, Hubscher said, "There is no such thing as instant success. This only works if you intend to live it…and work with it." "A company's culture once correct will provide a people base that can change and adapt to changing market circumstance yet continue to develop company wealth."
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