Transcript Document

Welcome To The
Denison Consulting
Certification Workshop
All content and images Copyright © 2012 Denison Consulting, LLC. All Rights Reserved.
Your Facilitators
Dan Denison
Chairman & Founder, Denison Consulting
[email protected]
Dave Croci
Director of Client Management, Denison Consulting
[email protected]
Bryan Adkins
CEO, Denison Consulting
[email protected]
Stevie Collini
Client Account Manager, Denison Consulting
[email protected]
Lindsey Kotrba
President, Denison Consulting
[email protected]
Ari Black
Business Development Manager, Denison Consulting
[email protected]
All content and images Copyright © 2012 Denison Consulting, LLC. All Rights Reserved.
Workshop Agenda
Tuesday, July 16
Wednesday, July 17
NETWORKING BREAKFAST
NETWORKING BREAKFAST
Welcome and Introduction to Facilitators
Highlights and re-cap of Day 1
Review of Pre Course Work; Q&A
Developing Leaders
o
The Link Between Leadership and Culture
o
The Denison Leadership Development 360
o
Business Case Studies
Building a High Performance Organization
o
What Is Culture
o
Understanding Habits & Routines
o
The Denison Model
o
The Link to Culture & Business Performance
o
Managing Dynamic Tensions
LUNCH
o Business Case Studies
Application
o
o
The Language of Culture
A Solutions Scenario
LUNCH
Application
o Denison Products and Support
o Denison Product Pricing
o Support Services
o Working with Denison
o The Survey Process
Analyze, Synthesize & Apply
o
Business Case Studies
SESSION ENDS
GROUP DINNER AT THE EARLE RESTAURANT
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Building a High
Performance Business Culture
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What Is Culture?
Why Is It Important?
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
Culture Reflects the Lessons Learned Over Time
Visible Symbols
Lessons
Image by R.A. Clevenger
Culture
Survival
Underlying Principles
http://www.youtube.com/watch?v=6_WAmt3cMdk
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
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.”
Elting Morrison, Gunfire at Sea
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.
Changing Culture
By Changing Rituals, Habits & Routines
Good
Bad
Preserve
&
Strengthen
Invent
&
Perfect
Unlearn
&
Leave Behind
Rethink
&
Try Again
Old
New
The Denison Model
What Counts…
Adaptability
Pattern, Trends, &
Market
Translating the demands
of the business
environment into action
“Are we listening
to the marketplace?”
Involvement
Commitment,
Ownership, &
Responsibility
Building human capability,
ownership, and
responsibility
“Are our people
aligned and engaged?”
Mission
Direction, Purpose,
& Blueprint
Defining a meaningful
long-term direction
for the Company
“Do we know where
we are going?”
Consistency
Systems, Structures,
& Processes
Defining the values
& systems that are the
basis of a strong culture
“Does our system
create leverage?”
MISSION
Creating Shared Vision:
creating a clear and
compelling vision of a future
state
Defining Strategic Direction &
Intent:
understanding, developing
and executing strategy
Defining Goals & Objectives:
setting clear goals and
tracking progress against
those goals
INVOLVEMENT
Developing Organizational
Capability:
developing employees to
meet current and future
organizational needs
Building Team Orientation:
developing successful,
effective teams
Empowering People:
sharing information and
communicating so that
employees have the
information they need to
make informed decisions –
the ability to make a
difference
ADAPTABILITY
Creating Change:
encouraging change and
continuous improvement
Emphasizing Customer Focus:
understanding customer
needs - developing
responsive, effective working
relationships with customers
Promoting Organizational
Learning:
seeing continuous learning
and innovation as critical to
adapting and leading in a
dynamic environment
CONSISTENCY
Managing Coordination &
Integration:
building effective working
relationships with a range of
colleagues & stakeholders
across the organization
Working to Reach
Agreement:
engaging in effective
problem solving and
decision making
Defining Core Values:
aligning the behavior of self
and others in accordance
with the Core Values
Beliefs and Assumptions:
The ‘GREY’ Area in the Middle of the Model
Beliefs and
Assumptions
 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
making progress in the
development of a highperformance culture often requires
a thoughtful exploration of the
underlying beliefs and
assumptions.
All content and images Copyright © 2012 Denison Consulting, LLC. All Rights Reserved.
Dynamic Tensions
Effective leaders and organizations are
Externally AND Internally focused
Effective leaders and organizations
focus on Flexibility AND Stability
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Dynamic Tensions
Effective leaders and
organizations balance
‘External Adaptation’ AND
‘Internal Integration’
Effective leaders and
organizations offer
strong leadership AND involve
their employees
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A Culture Profile:
The100 Year Old
Manufacturing Company
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One Hundred Year Old
Manufacturing Company
One Hundred Year Old Manufacturing Company
•
•
•
•
•
•
68
First in industry,
but declining
Trying to hold on to the past
1st time in 20 years
failed to meet targets
Targeted by competitors
President operationally focused
“We’re a team going down together
29
12
11
9
18
12
55
8
66
63
82
How Culture Links to
Business Performance
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Culture Links to Business Performance
· Growth
· Innovation
· Customer
Satisfaction
· Stable
Performance
Over Time
· Profitability
ROI, ROS, ROE
· Operating Performance
· Quality
· Employee Satisfaction
Impact on Performance
The higher the culture scores, the greater profitability, sales growth,
& market value (based on a study of 130 firms; 2000-2010)
Bottom 25%
Top 25%
Return-on-Assets
2.3%
3.2%
Sales Growth
1.4%
23.1%
2.6
4
Market-to-Book Ratio
26
Satisfying Your Customers
Below 50% Highly Satisfied
Above 80% Highly Satisfied
 Study of Automotive Service Centers in the USA
 Total of 338 dealerships and over 12,000 employees
 Compares organizational culture and customer satisfaction
Organizational Culture and
Employee Engagement
Bottom 10
11th Percentile
DOCS OVERALL
ENGAGEMENT FACTOR
Top 10
83rd Percentile
Culture Causes Performance
2 Years
1 Year
In summary, culture comes first and serves as a driver
of subsequent performance levels.
When Is High Consistency Bad?
When Involvement is low, high Consistency will likely
lower an organization’s performance.
2011 Denison Global Benchmark
931 companies in 48 Countries
 50% of the respondents in the last 5 years are
from outside the US
 Headquarter Distribution
 28% are Multi-Nationals
 75% North American, 14% Europe, 5%
Asia/Pacific,
2% Africa/Middle East, 2% Central & South
America,
2% Australia/Oceania
 Wide classification of industries using the North
American Industry Classification System (NAICS)

Why We Use Percentiles
Survey Item
Mean
Score
% Favorable
(4s & 5s)
Percentile
Score
Most employees are highly involved in their work
3.94
86%
50
There is an ethical code that guides our behaviour
and tells us right from wrong
3.78
82%
50
Customer input directly influences our decisions
3.59
86%
50
People work like they are part of a team
3.46
64%
50
There is good alignment of goals across levels
3.21
57%
50
Our vision creates excitement and motivation
for our employees
3.04
41%
50
It is easy to coordinate across different parts
of the organization
2.81
40%
50
Our Research Is Ongoing
European
Journal of Work
and Psychology
Reliability and
Validity of the DOCS
and other measures
of Culture
Looking Across
the World
Other exciting
research
Financial
implications of
manager / nonmanager alignment
Effects of Executive
coaching
interventions
Unionization and
organizational
culture
Application
All content and images Copyright © 2012 Denison Consulting, LLC. All Rights Reserved.
The Language of Culture
All content and images Copyright © 2012 Denison Consulting, LLC. All Rights Reserved.
Culture Data Should Do 3 things:
1. drive honest
conversations among
the collective about
‘the way we do things
around here’ that…
2. lead to thoughtful
actions and…
3. results in higher
performance
Honest conversations that lead to thoughtful action…
and higher performance
Step I
Step II
Assessment of
the Current
State
Creating
Understanding
Goal: To assess
the current
culture to
surface
strengths and
weaknesses
(and identify
possible subcultures/areas
of opportunity)
Goal: To
engage in
dialogue to
create a
common
understanding
of the data and
discuss the
implications of
the current
culture for the
business
Step III
Choosing to
Shift the
Culture?
Goal: To
establish
agreement
regarding the
need for culture
change/
development
AND to focus
efforts on areas
of business
impact
Step IV
Action
Planning
Goal: To
generate ideas
for moving the
culture forward;
prioritizing and
developing
specific action
plans
Step V
Implementation
& Evaluation
Goal: To
execute
against the
action plans
and measure
progress – with
a link back to
organizational
and/or group
performance
Are our people happy?
Culture
Are we clear
and aligned?
Is our culture…
good or bad?
strong or weak?
High level
of clarity &
alignment
Higher levels
of performance
Mix of clarity &
confusion
Average levels of
performance
Confusion &
uncertainty
reigns
Lower levels
of performance
What you might hear…
“There’s a clear line-of-sight.”
“Purpose.”
“We do a good job of Connecting the Dots”
“The vision is inspiring and
exciting”
“The focus on short term
and long term goals
makes the company
reach high levels of
achievement.”
“We all have the
same vision which
keeps us focused
on what really
matters.”
“One-on-ones and 360 reviews
provide individuals with constant
reminders of our goals.”
“Flying blind”
“My priorities are whatever my boss
says they are that day.”
“We’re fire fighters”
“Uncertainty is the best word to describe
working here.”
“Frustrating”
“We’re not sure what the future
holds.”
“We have a Moral Compass”
“My manager lives the core values and
regularly addresses them on conference
calls – impressive!”
“We engage in
Constructive Conflict.”
“Communication efforts across
departments have allowed
broader perspectives and better
decisions.”
“Alignment”
“We solve problems and we move
forward together.”
“All the team members believe in doing the
right thing and creating win-win situations.”
“Silos”
“Issues remain unresolved
and the team stays in flux.”
“It’s all about winners and losers.”
“Self-serving”
“The leaders don’t walk the talk.”
“Stove pipes”
“The end justifies the means”
“There is a high level of transparency in this
organization.”
“We band together to work as a single
unit to achieve our daily goals.”
“I don't feel like I
work for this great
company - I feel a
sense of ownership.”
“We value highly capable
people. The talent level here
is very high.”
“I feel that I am using my skills and
intelligence rather than being micromanaged.”
“We've learned to play
towards each other's
strengths and we work
together to improve our
weaknesses.”
“We have trouble retaining our best talent.”
“This is a Compliance Culture.”
“Check your brain at the door.”
“Internal competition is valued over cooperation.”
“Leaders believe they always know best.”
“Information is power.”
“Forgive and remember”
“Hiding mistakes is more detrimental than
making them.”
“We do project post-mortems
and lessons learned events.”
“We ask ourselves what
does the customer want
and need when we are
looking at our processes.”
“Change is NOT a criticism of the past.”
“A customer mind-set
permeates the
organization.”
“Change is not a program…it is a matter
of survival.”
“Fear is prevalent throughout the
organization.”
“This is how we’ve
always done it.”
“Change happens to us,
not with us.”
“We can be arrogant…we don’t always
listen to our customers.”
“Finger pointing.”
“Our philosophy is Naming - Blaming – Shaming.”
Restructuring
Leadership changes
Mergers & acquisitions
Internal and External Forces that have
the ‘potential’ to create more
uncertainty and ambiguity
Competition
Regulatory changes
New technologies
Economy
The Denison Solutions
Strategic
Alignment
Mergers
&
Acquisitions
Leadership
Development
Building
a High
Performance
Business
Culture
Turnaround
&
Transformation
Leadership
Transitions
A Solutions Scenario…
A Merger & Acquisition Example
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Culture in Mergers & Acquisitions
Growth
Strategy
Develop
and
Sustain
Potential
Targets
‘One’
Business
Due
Diligence
Cultural
Integration
What is the level of integration and
change required?
High
Absorption
Degree of
Change in
Acquired
Company
Transformation
Best of
Both
Low
Stand Alone
Reverse
Acquisition
Low
High
Degree of Change in Acquiring Company
From Marks & Mirvis, Managing the Merger
The focus (stated intent) of most M&A’s
External Focus
 Move into
new markets
 Acquire new
technologies
 Increase
scale
 Access to
lower cost
operations
The focus immediately after the deal closes
Internal Focus
Alignment of…
 IT Systems
 Financial
Systems
 Compensation
Systems
 Sales Process
 Etc.