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 All content and images Copyright © 2012 Denison Consulting, LLC. All Rights Reserved. Building a High Performance Business Culture All content and images Copyright © 2012 Denison Consulting, LLC. All Rights Reserved. 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 All content and images Copyright © 2012 Denison Consulting, LLC. All Rights Reserved. Dynamic Tensions Effective leaders and organizations balance ‘External Adaptation’ AND ‘Internal Integration’ Effective leaders and organizations offer strong leadership AND involve their employees All content and images Copyright © 2012 Denison Consulting, LLC. All Rights Reserved. A Culture Profile: The100 Year Old Manufacturing Company All content and images Copyright © 2012 Denison Consulting, LLC. All Rights Reserved. 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 All content and images Copyright © 2012 Denison Consulting, LLC. All Rights Reserved. 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 All content and images Copyright © 2012 Denison Consulting, LLC. All Rights Reserved. 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.