Transcript title

CULTURE DEVELOPMENT & LEADERSHIP CONSULTING
THOUGHT LEADERSHIP
CULTURE & LEADERSHIP DIAGNOSTICS
CULTURE & LEADERSHIP EVENTS
BUILDING AND SUSTAINING
HIGH PERFORMING ORGANIZATIONS
AND LEADERS
DENISON CERTIFICATION WORKSHOP | MAY 2015
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WORKSHOP SCHEDULE
May 13, 2015
May 14, 2015
NETWORKING BREAKFAST
NETWORKING BREAKFAST
 Welcome and Introductions
 Highlights and re-cap of Day 1
 Culture and leadership
 Transformation & Turnaround
 Denison Model and link to performance
 Strategic Alignment
 Path to High Performance
Culture change business case
 M&A
 Leadership Development
 Wrap-up and Q&A
(Breaks and Lunch provided)
(Breaks and Lunch provided)
GROUP DINNER
CONCLUSION
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INTRODUCTION &
WELCOME
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YOUR FACILITATORS
Dan Denison, Ph.D.
Bryan Adkins, Ed.D.
Dave Kirchoff
Levi Nieminen, Ph.D.
Ia Ko, Ph.D.
Chairman and
Founding Partner
CEO
Senior Consultant
Director, R&D
Research Consultant
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REAL-TIME DOCS
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INSTRUCTION
1. Watch a movie clip
2. Check your email
3. Complete the survey
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CULTURE AND LEADERSHIP
A DRIVER OF PERFORMANCE
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The bottom line for leaders is
if they do not become conscious
of the cultures in which they are
embedded, those cultures will
manage them. Cultural
understanding is desirable for all
of us, but it is essential to leaders
if they are to lead.
Edgar Schein, Ph.D.,
Former Professor at MIT and recognized
authority in the field of Organizational
Culture and Leadership
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MINDSET IS THE FOUNDATION
Norms, Behaviors and Artifacts
Visible, tangible.
Personal Values and Attitudes
Less visible, but can be talked
about.
Cultural Values and
Assumptions
Usually not visible at all,
often held subconsciously,
rarely (if ever) questioned
in everyday life.
Image by R.A. Clevenger
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CULTURE REFLECTS THE LESSONS
LEARNED OVER TIME
Visible Symbols
Lessons
Survival
Underlying Principles
Image by R.A. Clevenger
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Culture
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RITUALS, HABITS, & ROUTINES
We must make automatic and
habitual ... as many useful
actions as we can.
The more of the details of our
daily life we can hand over to
the effortless custody of
automation, the more our
higher powers of mind will be
set free for their proper work.
William James
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HOLD YOUR HORSES!
Morrison’s essay opens with a story of a young time & motion
expert trying to find a way to speed up artillery crews during WWI,
just after the fall of France. He watched one of the five- man gun
crews practicing in the field with their guns mounted on trailers,
towed behind their trucks. Puzzled by certain aspects of their
procedures, he took some slow-motion pictures of the soldiers
performing the loading, aiming, and firing routines.
When he ran these pictures over once or twice, he noticed
something that appeared odd to him. A moment before the firing,
two members of the gun crew ceased all activity and came to
attention for a three-second interval extending throughout the
discharge of the gun.
Since this seemed like quite a waste of time, and the young time &
motion expert really couldn’t make any sense of it, he asked an old
artillery colonel to look at the films to see if he could explain this
strange behavior.
The colonel, too, was puzzled. He asked to see the pictures again.
"Ah," he said when the performance was over, "I have it. They are
holding the horses.”
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Elting Morrison, Gunfire at Sea
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PAUL O’NEILL AT ALCOA:
IDENTIFYING KEYSTONE HABITS
It got so bad they would bring dummies to the
parking lots, dress them like managers, and burn
them in effigy. Alcoa was not a happy family.
It was like the Charles Manson family, but with
the addition of molten metal.
O’Neill picked safety as one thing that unions
and executives could agree on. Zero injuries.
Injuries must be reported to the CEO within 24
hours.
“We killed this man. It’s my failure of leadership.
I caused his death. And it is the failure of all of
you in the chain of command.”
Once you see everything as a bunch of habits,
it’s like someone gave you a flashlight and a
crowbar and you can get to work.
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CHANGING CULTURE
BY CHANGING RITUALS, HABITS & ROUTINES
Preserve
&
Strengthen
Invent
&
Perfect
Unlearn
&
Leave Behind
Rethink
&
Try Again
Good
Bad
Old
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New
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A MODEL OF HIGH
PERFORMANCE
DENISON MODEL & LINK TO PERFORMANCE
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WHAT COUNTS…
MISSION
ADAPTABILITY
Pattern, Trends,
& Market
Are we listening to the
marketplace?
Direction, Purpose,
& Blueprint
Translate the demands of
the environment into
action
Define a meaningful
long-term direction
INVOLVEMENT
Do we know where
we are going?
CONSISTENCY
Commitment, Ownership,
& Responsibility
Systems, Structures,
& Processes
Are our people aligned
and engaged?
Does our system
create leverage?
Build human capability,
ownership, and
responsibility
Define the values &
systems, the basis of a
strong culture
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BELIEFS AND ASSUMPTIONS:
THE ‘GREY’ AREA IN THE MIDDLE OF THE MODEL
At the heart of every culture are a set
of beliefs and assumptions
… about the organization and its
people, the leaders, the customers,
competitors, the sector, etc.
Resolving cultural issues and
developing a high-performance
culture often requires a thoughtful
exploration of them.
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CULTURE AND PERFORMANCE
Growth;
Innovation
Customer
Satisfaction
Profitability
(ROI, ROS, ROE)
Quality;
Employee
Satisfaction
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IMPACT ON FINANCIAL
PERFORMANCE
Bottom 25%
Top 25%
Return-on-Assets
2.3%
3.2%
Sales Growth
1.4%
23.1%
2.6
4
The higher the
culture scores,
the better the
financial
performance
(Denison study of 130 firms)
Market-to-Book Ratio
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CULTURE CAUSES PERFORMANCE
2 Years
1 Year
In summary, culture comes first and
serves as a driver of subsequent performance levels.
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PATH TO HIGH
PERFORMANCE
DENISON’S CHANGE FRAMEWORK
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PATH TO HIGH PERFORMANCE
Why is culture important to the
performance of your organization?
What is the impact?
How do we translate results
into thoughtful actions?
How do we create
common understanding?
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How can we ensure effective and
sustainable culture development?
What is your current state?
What is data telling us?
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DISCOVERY
PATH TO HIGH PERFORMANCE
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ORG CHALLENGES AND
CULTURE - STRATEGY:
Organizational objectives, challenges,
current culture link to strategy
CLEAR EXPECTATIONS:
Define what the success looks like
Agree on goals of engagement
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PLANNING
PATH TO HIGH PERFORMANCE
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PROJECT PLAN:
Major project phases and
timeline – including
data collection plan and
discussion on
implementation process
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COMMUNICATION
PLAN:
Detailed communication
plan and
feedback options
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DIAGNOSIS
PATH TO HIGH PERFORMANCE
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PERFORMANCE
METRICS:
KEY STAKEHOLDER
PERSPECTIVES:
Key segment leader
interviews to understand
their perspectives
Collection of
performance data
connected to the key
segment
CULTURE &
LEADERSHIP
DATA:
Archival data collection;
Administration of
diagnostic tools
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DIAGNOSTIC TOOLS
CULTURE
LEADERSHIP
CORE
CORE
DOCS
DLDS
Change
Monitor
Change
Monitor
Content
Modules
360
On-Demand
TARGETED / CUSTOM
Custom
Tools
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TARGETED / CUSTOM
Focus
Groups
Culture
Snapshot
DLPR
Custom
Tools
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DENISON ORGANIZATIONAL
CULTURE SURVEY (DOCS)
• Based on the Denison organizational culture model
• 60 items
• Benchmarked against 1000+ organizations in the normative
database
• Robust industry representation
• Benchmarks are stable across years
• International representation:
50+% of the respondents,
1/3 of HQs outside of U.S.
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CULTURE CONTENT MODULES
•
•
•
•
Brief, reliable, and valid tools (5-12 items)
May be added to the DOCS
Strengthens the value of information from the DOCS
Results reported in percentiles – benchmarked against a database
of organizations
Engagement
Commitment
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Trust
Innovation
Safety
Risk
management management
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DENISON LEADERSHIP
DEVELOPMENT SURVEY (DLDS)
•
•
•
•
•
360 tool based on the Denison leadership model
96 items
Benchmarked against 15,000+ leaders in the normative database
Robust industry representation
Benchmarks are stable across years
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DENISON BENCHMARKING
Why Percentile
Survey Item
• Put data into an easily
understandable format
Most employees are highly
involved in their work
• Provide information about
organization’s/leader’s performance
relative to others’
• Allow comparisons between items,
between raters (360, or across units)
Mean % Favorable Percentile
3.94
86%
People work like they are part 3.46
of a team
64%
It is easy to coordinate across 2.81
different parts of the
organization
40%
Why Global Benchmarking
 The most stable, representative comparison group
 Little differences across Industries/countries
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OTHER LEADERSHIP TOOLS
DLPR
(Denison leadership
Potential Report)

Hogan scores are mapped to Denison’s
Leadership Development competencies

A purposeful diagnostic, intervention
tool for a New Leader

Based on Hogan’s three main
assessments

Administered to a select group of raters
early in a New Leader’s tenure

Combine personality and value traits
with predicted potential leadership
competencies

Provides the New Leader with an early
view into the culture of the operation,
department, or unit that they will be
overseeing

Skilled delivery by a qualified facilitator
guides the New Leader and team to take
high-impact action
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ANALYSIS
PATH TO HIGH PERFORMANCE
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DATA ANALYSIS:
SYNTHESIS:
Quantitative and
qualitative analysis of
data from difference
sources
Integration and synthesis
of the analysis results to
turn data into
intelligence
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EXAMPLE 1: DRIVING CULTURE FOR
GROWTH AND EE ENGAGEMENT
Diagnostic Tools
DOCS
Open-ended
questions
Engagement
Module
DLDS
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EXAMPLE 2: MANAGING A MERGER
OF THREE COMPANIES
Diagnostic Tools
DOCS
Open-ended
questions
Semi-structured
interviews with
leaders
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ANALYSIS: MAPPING
How do the Denison model and tools compare with others?
Compare content areas
between surveys/models
to ensure accurate and
thorough culture
measurement
Legacy
Survey Items
Related
DOCS Items
Connection
Strength
Map the Denison Culture
Survey items to a survey
that you have used in the
past
Interpret data from
another survey in the
context of the Denison
Culture Model
Predicted Culture Scores
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ANALYSIS: TEXT ANALYTICS
What are your employees saying?
Identify key themes to
help drive action
Highlight the most useful
and impactful comments
Interpret comments in
the context
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ANALYSIS: ADVANCED ANALYTICS
Where can you drive change to produce results?
Clarify the link between your
data and your performance
Identify the cultural ‘drivers’
of engagement, innovation,
etc. in your organization
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ANALYSIS: ADVANCED ANALYTICS
How can you monitor change and identify gaps?
Identify and focus on the
meaningful trends across
time
Identify and focus on the
meaningful trends across
groups in the organization
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From Priority
to Impact
Case example:
Gov’t agency
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HONEST CONVERSATION
PATH TO HIGH PERFORMANCE
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CULTURE AND LEADERSHIP DATA SHOULD
1.DRIVE HONEST CONVERSATIONS AMONG THE COLLECTIVE
2.LEAD TO THOUGHTFUL ACTIONS
3.RESULT IN HIGHER PERFORMANCE
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High level
of clarity &
alignment
Higher levels
of performance
Mix of clarity &
confusion
Average levels of
performance
Confusion &
uncertainty reigns
Lower levels
of performance
SUPPORT THE
“CASCADING”
Facilitate information
sharing and dialogue at all
levels of the organization
RESULTS REVIEWS:
Engage key stakeholder
groups in dialogue and
sense-making starting with
Senior Leaders
FOCUS GROUPS
& INTERVIEWS:
Dig deeper to build the
momentum for action and
gain targeted insights
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RESULTS REVIEWS:
Engage key stakeholder
groups in dialogue and
sense-making starting with
Senior Leaders
• Prep meeting with project team before Senior Leader meetings
• Flip the management “switch”
• Give space to do sense-making and exploration
…
• Comprehensive Analysis & Results Review Decks
• Starting Priorities and Questions
• Process Map with Next Steps
…
Series of 2 hr. sessions with each Senior Leadership team
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Starting Priorities and Questions
• We need to understand how best to support employee onboarding and training
to maximize job preparation.
• We need to identify why supervisors are struggling to translate the vision of the
organization beyond tactical day-to-day management
• We need to address the structural barriers experienced within the team.
…
• We are challenged with a dramatically changing customer base. How is this
being perceived at the line level?
• How can we best support tenured employees in a changing customer
environment?
• Where are we sending the wrong messages about the vision, strategy, and goals
of the organization?
…
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FOCUS GROUPS
& INTERVIEWS:
Dig deeper to build the
momentum for action and
gain targeted insights
• Design for representative feedback
• Content from top-down and bottom-up
• 2-Pizza focus group(s)
…
• Ground Rules of Honest Conversation
• Comprehensive Analysis & Results Review Decks
• Summary and Report-out to Senior Leadership
…
Series of 2 hr. focus groups with employees and supervisors
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Summary and Report-out to Senior Leadership
• Present a set of “Focus Areas”
• Build alignment on the Top 1 & 2 for Action
Team 1
Team 2
Team 3
• Rebuild a stronger focus
on the customer (internal
customers)
• Inconsistent practices for
job-specific training and
capability development
• Functional groups have
become too insulated;
benefit from integration
• Work on clarifying and
leveraging knowledge and
systems
• Lack of strategic alignment
between senior leaders and
supervisors
• Perceived imbalance
between focus on cost
savings and vendor quality
• Lack of strategic alignment
between senior leaders and
supervisors
• Unclear plans on onboarding
and leveraging new contract
workforce
• Inconsistent practices across
the full spectrum of the
talent management system
• Unit X facing threat of reorganization
• Silos and lack of coordination
connected to legacy
organizations
• Perceived imbalance
between a focus on cost
savings and vendor quality
• Breakdown between top-line
vision and operational
priorities at unit level
• Supervisors and employees
lack clarity on long-term
objectives
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SUPPORT THE
“CASCADING”
Facilitate information
sharing and dialogue at all
levels of the organization
• Clarify the role(s) and process for communication
• Spread the 2-3 key messages
• Give space for organic dialogue and action
…
• Train-the-Trainer Sessions
• Culture “Playbooks”
• Video Content and Communication Tools
…
e.g., Half-day Session(s) with “culture anchors”;
TBD for Supporting Materials and Media
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ACTION PLANNING
PATH TO HIGH PERFORMANCE
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CREATE & EXECUTE
ACTION PLANS:
Work Actions to detail on
who is doing what to
whom by when
LAUNCH ACTION
TEAM(S):
Stand up the structure and
governance of the Action
Planning process
FOCUS AREA(S)
WORKOUT:
Work from high-level Focus
Area(s) to specific ideas
and aligned priorities
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LAUNCH ACTION
TEAM(S):
Stand up the structure and
governance of the Action
Planning process
• Interested, Respected, Problem-Solvers
• Strong Involvement of Senior Leadership
• Form 2-Pizza Team(s)
…
• Membership Criteria and Communications
• Effective Team Norms and Derailers
• Team Charters
…
Half-day Launch Session(s) per Team
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FOCUS AREA(S)
WORKOUT:
Work from high-level Focus
Area(s) to specific ideas
and aligned priorities
• Go slow to go fast
• Attack causes not symptoms
• Aim for a mix of quick wins and elephants
…
• Root Cause Activity
• Brainstorming Actions
• Prioritization and Sorting
…
Half-day Workout Session(s) per Team per Focus Area
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Root Cause
Activity
• “The Problem Is…”
• Identify Root Causes
Brainstorming
Actions
• “We Could Do/Try…”
• Clustering of Actions
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Prioritization &
Sorting
• Matrix of Ease/Impact
• Quick Wins, Heavy
Lifts, and In Cue
CREATE & EXECUTE
ACTION PLANS:
Work Actions to detail on
who is doing what to whom
by when
• Small scope planning
• Specific-difficult-achievable goals
• Parallel actions and ‘homework’ to maximize the team
• Action Planner
• Progress Report-Out Template
• Team Agendas & Homework Assignments
Two-days Action Planning per Team per Focus Area
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Action Planner
• Living tool to help make plans, take action, track progress
• Who is doing what to whom by when?
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SUSTAINABLE IMPROVEMENT
PATH TO HIGH PERFORMANCE
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TRANSFER BEST
PRACTICES:
MEASURE &
COMMUNICATE
THE IMPACT:
Evaluate the results; share
the success stories and
lessons learned
Cross-pollinate and
institutionalize the best
practices that emerge
SUSTAIN THE
ACTION TEAMS:
Support and adjust the
process; interject energy
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SUSTAIN THE
ACTION TEAMS:
Support and adjust the
process; interject energy
• Remind and reset expectations on Action Learning
• Celebrate participation and the small wins too
• Find the right cadence for meetings, action, and report-outs
…
• Team Transitions & New Member Onboarding
• Modified Team Charters
• Progress Report-Outs
…
Continued within ongoing 2-hr. Action Team sessions
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MEASURE &
COMMUNICATE
THE IMPACT:
Evaluate the results; share
the success stories and
lessons learned
• Tell them … you’re going to do it… you’re doing it… you did it
• Look for the early and simple indicators of impact first
• Make friends with your Comms. people
…
• Evaluation Plans for Culture and Performance
• Change Monitor
• Linkage Analysis with Performance Metrics
• Communication Spotlights and Town Halls
…
Continued within ongoing 2-hr. Action Team sessions;
TBD for Linkage Analysis Activities
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TRANSFER BEST
PRACTICES:
Cross-pollinate and
institutionalize the best
practices that emerge
• Find and leverage the synergies between Action Teams
• Create positive peer pressure
• Scale the Action beyond the Action Teams
…
• Cross-Pollination Sessions
• Explore Embedding Mechanisms
• Onboarding
• Leader Development
• Stand-ups for New Action Teams
…
Half-day launch sessions for New Action Teams;
Series of 2-hr. Cross Pollination Sessions
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CULTURE CHANGE
BUSINESS CASE
THE VISION: TO CREATE A WORLD CLASS CULTURE AT
DLA – A CUSTOMER FOCUSED CULTURE
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• Dla video
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GOVERNMENT AGENCY:
BACKGROUND
The Defense Logistics Agency is the Department of Defense's largest logistics
combat support agency, providing worldwide logistics support in both peacetime
and wartime to the military services as well as several civilian agencies and foreign
countries.
DLA employs approximately 25,000 employees.
In 2014, DLA generated more than $38 billion in sales and revenue. If ranked in
the Fortune 500, DLA would be at #79.




Supports more than 2,430 weapon systems.
Manages nine supply chains and nearly 5.3 million items.
Operates in 48 states and 28 countries.
Processes 100,000 requisitions and awards over 10,000 contract
lines each day.
 Manages 24 distribution centers worldwide.
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GOVERNMENT AGENCY:
CHANGE PROCESS
Sharing of ‘best practices’
Performance Linkage:
•
•
•
•
•
World-class logistics Org.
Customer-centric
On-time performance
Safety
Action Planning
Customer Satisfaction
Intent to remain
Root cause analysis
Action Plans developed for over
100 groups across DLA.
Support for data analysis,
prioritization and action
planning provided on request.
Results review and discussion
with Agency/Activity/Code
leadership & Culture Champions
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Annual Planning process:
•
•
•
•
•
Culture Survey
Climate Survey
Open-ended items
Interpretation & Action Support
Training of internal Champions
Survey administration to
approximately 25,000
employees – every 18
months- 2 years
Combination of quantitative &
qualitative analysis conducted
for Agency and key Activities &
Codes
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DLA THROUGH THE YEARS
2003
2004
2010
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2006
2012
2009
2014
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A DEEPER DIVE INTO ONE
SUBGROUP
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71
Division of a Large Public Sector Organization
212
141
162
180
Combined
scores from
the
Involvement
Index
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88
- 98
- 74
76
95
- 65
- 85
Total decline in scores
for the Involvement
Index between 2010
and 2012
May 2015
Total decline in scores for the
Involvement Index between
2012 and 2014 – and overall
between 2010 and 2104
72
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PROCESS OVERVIEW
1. Overview of DOCS data (quantitative and qualitative) with HQ and culture
committee
a. Initial Action Plan focus areas reviewed
b. Alignment on on-site reviews with Leadership Team, Culture Council for 4 units within this
organization
2. On-site agenda:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Introduction & expectations- Sr. Leadership, Culture Council chairman (each unit)
Denison Model overview & data presentation- XLT, Culture Council (4 units)
Focus group sessions (9) with workforce members
Focus group sessions with culture councils (2 units)
Focus groups with extended leadership team (2 units)
Data synthesis
Presentation of focus group insights with culture councils (2 units)
Prioritization of action areas (2 units)
Action plan development (2 units); review existing action plans (1 unit)
Report-out of recommendations – Sr. Leadership, Culture Council chair (2 units)
3. Report-out of findings/recommendations – Organization HQ
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DISCUSSION POINTS
1. Given the data on hand, what are some potential contributing factors to the year
on year decline in assessment scores? Consider both internal and external
factors.
2. This organization has 1st quartile scores in 10 of the 12 indices. What areas
would you recommend to focus on, where would you start and why?
3. The mission statement was prominently displayed throughout the office and
conference rooms within this organization. The mission was all about serving the
customer.
a. Given the above, how would you address the significant difference in docs scores
between mission and customer focus?
b. What additional information or data would be useful and how would you obtain that
information?
4. What questions about leadership arise for you when reviewing the assessment
data? What other data would be useful and how would you obtain that
information?
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