Transcript Definition of Terms

Creating Culture Change: Getting Beyond
the Conventional Boundaries
Bill Redmon, Ph.D.
Principal Vice President- Talent Management
Bechtel Corporation
San Francisco
26-April-2012
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Overview
A Story in three parts
 A burning platform for change
 Strategies and methods for change
 Implications for the “education change
agenda”
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Part I:
A burning platform for change
“The burning platform requires creating a reason for
change so compelling as to suggest no reasonable
alternative.”
Anonymous blogger, Date unknown
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Is the platform burning for education?
It is widely agreed that our educational systems are in
crisis in terms of student performance & effective
teaching
Most solutions focus on system-level factors designed to
help students and teachers work harder or more
efficiently
–
–
–
–
–
Higher standards for student learning
Merit pay for teachers
Better testing
Smaller class sizes
Better technology
Fewer solutions focus on the behavioral level
 Quality of individual teacher-student engagement
 Capability of teachers to impact learning and serve as change agents
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Does the platform burn harder for
business?
A sample of major global companies no longer in existence or
forever changed
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Are these symptoms or causes?
Leading in Cynical Times
JAMES M. KOUZES
BARRY Z. POSNER
JOURNAL OF MANAGEMENT
INQUIRY / December 2005
……
TRUST IN THE
WORKPLACE
2010 ETHICS AND
WORKPLACE SURVEY
Deloitte, Inc
 23% of workers would fire their managers
if they could
 Only 27% of the American workforce is
categorized as engaged, 56% disengaged
 In France, Germany, Great Britain, and
Australia, 80% report being disengaged
 48% of employed Americans plan to look for
a new job when the economy improves
 46% say lack of transparent leadership
communication will drive them to new jobs
 31% say their colleagues are more likely to
behave unethically during the downturn
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What is the root cause?
 Some say it is: “A Crisis
of Spirit”
– Decline of morals
– Compromised ethics
– Domination of selfinterest
– Thirst for more—greed
– Loss of ethics
– Loss of altruism
 More likely: “A Crisis of
Individual Consequences”
– Emphasis on short term
payoffs
– Outright payment for faulty
behavior
– Lack of individual
accountability and meaningful
“day-to-day” consequences
– Failure of leadership and
supervision to set and enforce
standards
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Are faulty consequences to blame?
Washington Mutual Executives
Grilled In Senate Hearing
Senate Investigation Reveals Extra Bonuses
Went To Loan Officers Who Overcharged
Borrowers On Their Loans
Q13 FOX News Online & Associated Press (April 13, 2010)
Goldman earns $3.3B in 1Q 2011 as
fraud case looms
The SEC charged Goldman Sachs with defrauding
investors by omitting key facts about a financial
product tied to subprime mortgages as U.S. housing
market faltered.
Goldman profits off their investor’s losses.
Outcome: $550M fine by SEC.
March 2012: Senior leader resigns in in New York
Times letter and condemns the culture
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Part II:
Strategies & methods for change
“A culture of discipline is not a principle of business;
it is a principle of greatness”
Jim Collins, Good to Great
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Differentiating successful cultures
 Visionary Companies
$15X the general market
 Focus on both short and long-term
 Translate core ideology into
concrete terms
 Implement core ideology with
“aligned” consequences
 Do not tolerate poor performers
 Support experimentation and trail
and error; encourage innovation
and variation
 Good but Not Great
$2X the general market
 Detailed strategy and standardized
processes
 Core ideology stated, but not
practiced or recognized by most
employees
 Little or no teaching of ideology or
use of consequences related to
following it
 Focus on short term or… long-term
with “forgiveness” for short term
focus
Based on research by Jim Collins and colleagues and published in Built to Last (1994), Good to Great (2001), and How the Mighty Fall (2011)
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Principles based on behavioral science
 In highly effective cultures,
leaders…
– Sample performance often by
observing or getting reports
– Provide positive/negative
consequences based on
performance
– Encourage people to talk about
their performance and follow
through with discussion to shape it
– Repeatedly and clearly state
expectations, sample performance
and deliver consequences based
on performance
 In less effective cultures,
leaders…
– Spend more time alone than with
team members
– Tend to be passive during workrelated discussions
– Discuss the content of work with
team members, without discussing
performance (pro or con)
– Initiate only limited discussions
about performance
– Repeatedly state expectations
without delivering positive or
negative consequences
Based on: Komaki, J (1998). Leadership from an Operant Perspective (People and Organizations. Psychology Press
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High engagement culture
Success
• Gallup organization’s Studies of 80K Managers
• Results for business units with high individual employee
engagement (% top quartile on engagement who were top
quartile in other areas)




Productivity
Employee retention
Customer loyalty
Overall performance
50%
44%
56%
78%
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The Bechtel journey to culture change
Start: Behavioral approach here
Performance Based Leadership
1999
Leadership 2001
Bechtel Ldr Model
1994
1990
Employee Engagement
2001
1995
2000
2010
2010
2005
1991
Bechtel Charter
2008
1997
360s
Covenants
Six Sigma
People First
Build a
Better
Bechtel
1998
Root Cause Analysis
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Implemented performance based
leadership
Competence Building
CEO &
Top 20:
Workshops &
1:1 Coaching
200 Top Leaders:
Workshops & 1:1
Coaching
2000-2001
2001-03
1000 supervisors + 6000 direct
reports: Workshops, Scorecard, and
Coaching
2003-04
All supervisors with 3+ direct reports
2004-05
Continuing with teaching and coaching for all new employees
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Set expectations at organization &
behavior levels
Strategy
Process
Behavior
Behaviors related to Culture/Results
Antecedents Behavior
Consequences
DCOM Toolkit
(Direction, Competence, Opportunity, Motivation)
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Built competence to support behaviors
Coach
Identify
to influence
desired behaviors
business driver,
result target
Measure
Pinpoint
results,
behaviors
Leadership
Scorecard
performer,
critical behavior
Analyze
how to influence current &
desired behavior
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DCOM
NORMS
A-B-C
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Defined a common language for leaders
Four performance levers for converting intended
outcomes to behavior:
D
C
O
M
Direction
Competence
Opportunity
Motivation
DCOM is copyrighted by CLG, Inc, Pittsburgh, PA; see Leslie Wilk Braksick (2007). Unlock Behavior, Unleash Profits, McGraw-Hill.
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Utilized coaching and feedback
Behavior Analysis Workshops + Coaching
Constantly calibrated behavior against the Leadership Model
Kick off working
session with leader
Review existing
feedback
 performance
appraisal
 upward feedback
 360º feedback
 other
Conduct interviews with
10 to 15 people selected
by leader
Use variety of
paper/web-based
Instruments (when needed)
Observe leader
during meetings and
provide feedback
(when possible)
 with direct reports
 with peers
 public forum/speaking
Help leader coach others
through coaching action
plans
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Established an ongoing “feedback-rich”
culture
Arranging for regular, open, honest feedback, and then acting on it, is the most powerful
way to continuously improve critical behaviors
Assessment
Device
Purpose
Frequency
Standard 360
Assesses leadership based on Leadership 2001
model for top 150 (developed in mid-90’s); will be
revised as per BLM
18-24 mos.
Employee
Engagement Ldr
Scorecard
14-item online scorecard based on feedback from
direct reports (input for upward feedback dialogue
session)
Rolling 9 mos.
and ongoing in
between
Leadership Profile
20-item assessment for line Directors; feedback
from all Bechtel Senior Vice Presidents
(shareholders)
18-24 mos.
Executive
Coaching
Interviews with 15-20 peers, direct reports and
managers--verbatims organized in customized
themes +/Δ and delivered by a professional coach
As Requested
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Sustained “new” behaviors
Performance
Management &
Rewards
High
Performance
Teams
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Compensation &
Promotion
People-Based
Safety
Focus on
Behavior &
Feedback
Recruiting &
Succession
Planning
“A rising tide floats all boats”
Six Sigma &
Quality
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Part III:
Implications for Education
Change Agenda
“People
don’t resist change. They resist being
changed.”
Peter Senge
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A deliberate change process is needed
Moving Intentions to Reality
Intentions
Behavior Change
Reality
Policy
Change
Process
Design
Behavior Change
Methods and Tools
Return
on
Investment
Systems
Replacement
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Aligning behavior and results
Strategic Results
Business Unit
or Group
DCOM
Proj. 1
Stakeholder
Assessment
& Management
ABC Analysis
Proj. 2
Proj. 3
Proj. 4
Individual Behaviors that
Drive Strategic Results
Proj. 5
Traction comes
from changes in
individual
behavior that
accumulate to
culture change
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Effective change elements
1. Develop the business case and ensure a visible and
credible organization champion
2. Clarify the vision and get alignment at the top
3. Identify patterns of behavior required across groups
and subgroups to achieve the vision
4. Select the tools for change (A-B-C, DCOM, etc.)
5. Implement the change at the individual level
(teacher-students)
6. Expand sponsorship and implementation across units
7. Measure impact and provide feedback and recognition
8. Align success with reward systems, hiring, promotion
performance reviews, correction for nonparticipants, etc.
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Major risk: Lack of focus on behavior
Organizational
Change/Impact
“Go-Live”
Risk
• Intended culture
not supported by
behavior change
• Slowly, quietly
revert back to the
“old” way
Time
• Results fall short
of requirements of
Case for Change
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Discussion
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