Cultivating a Culture That Delivers Superior Results. Dianne Durkin, President, Loyalty Factor, LLC

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1 Session # 201 Cultivating a Culture That Delivers Superior Results Dianne Durkin, President, Loyalty Factor, LLC #ACCE13 icmi.com Agenda / Objectives Share with you proven concepts and effective processes that create a culture of success and integrated around a particular case study. 2 #ACCE13 icmi.com

2 How would you describe a culture that is positioned to deliver superior results? Imagine a Company First American Manufacturing Facility 1mm square feet State of the Art Technology 350 employees 1 Customer with 60+ Stores Huge Demand 2

3 Imagine a Company The Culture Sketchy Performance Review Process Limited Communication 3

4 1 Positioning for Growth, Profitability and Expansion Ask, Listen, & Engage to Understand Present Status & Create Momentum for Improvements 2 Develop the Focus & Strategy for Improvement Cultures that Build Superior Results Trust Reliability Responsibility & Accountability Purpose Vision Values Engagement, Empowerment & Enrichment Emotionally Connected 4

5 9 YOUR ORGANIZATION S B O L D S T E P S VALUES 5

6 Purpose: Why we exist achieving the reason the organization was created, beyond making a profit. Purpose Values Vision Goals Values: How we operate the standards we commit to operating by. Vision: An expression of what team members want the organization to become. Goals: What the team must achieve in the short term to achieve the Vision. Procedures: The specific steps the team must execute to achieve the goals. Procedures Roles & Responsibilities Communication Roles & Responsibilities: What each team member must do. Communication: Clear, concise, and consistent communication. 1. Purpose is simple. Purpose answers two questions: What business are you in, and what difference are you making in this world? 2. Vision expresses where you are going. Vision is what brings your employees to the dance floor. It is a clear picture of the future that inspires people. 3. Clear values. Moving Mountains What guides your behavior and the decisions you make on a daily basis? This is the how part of your vision. 6

7 Swedwood Vision Committing to World-Class Growth with World-Class People Building Simple Elegance Living the Swedwood Way of Life Loyalty Factor TM, LLC 1 Positioning for Growth, Profitability and Expansion Ask, Listen, & Engage to Understand Present Status & Create Momentum for Improvements 2 Develop the Focus & Strategy for Improvement 3 Communicate the Plan to Address the Identified Major Business Improvements Build Team Infrastructure to Develop Improvement Solutions 4 7

8 Team Initiatives Culture & Communications Performance Management System Standard Operating Procedures Training YOUR TEAM DYNAMICS IDEAL STATE CURRENT STATE SUCCESS FACTORS RESOURCES CHALLENGES STAKEHOLDERS 8

9 Swedwood Way of Life Respect Treat Others the Way You Want to be Treated Integrity Safety Quality Teamwork Doing the Right Thing Safety First Customer Satisfaction Together Everyone Achieves More Communication Everyone Needs to Know Loyalty Factor TM, LLC Leadership is the Engine 9

10 Leaders Powerfully Passionately Purposefully Through the Change Process Change Is Transformational Moving Beyond the Status Quo Altering or Modifying Existing Conditions Taking Risks 10

11 Change is an opportunity for growth. Cultures that Build Superior Results Trust Reliability Responsibility & Accountability Purpose Vision Values Engagement, Empowerment & Enrichment Emotionally Connected 11

12 Trust Trust means confidence. The opposite of trust is suspicion. What are they getting out of this? What s in it for them? Building Trust Four Elements Necessary for Building Trust Congruence Straightforwardness Honesty Openness Receptivity Disclosure Acceptance Respect Recognition Reliability Seeks Excellence Keeps Commitments 12

13 Walk the Talk Level of Trust Responsibility-Based Management and employees operate with honesty, integrity and passion. Authority-Driven Limited. People avoid responsibility and take advantage of you. Team Behavior People believe in each other... and partner to create a great experience. It s not my job attitude and behavior. Who is Responsible? Everyone is responsible, employees solve problems and own the outcomes. No one accepts responsibility... blame is paramount. Employee Behavior... Self-Directed take ownership. Other-Directed do what they re told, avoid taking risks, and little initiative. Loyalty Factor TM, LLC Trust Statistics 16% tend to trust television news Only 6% trust Congress Only 13% trust big companies 24% trust the Supreme Court 50% trust small businesses Source: 2011 Harris Poll 13

14 Trust Statistics 34% of Americans believe that other people can be trusted Only 48% of employees have trust and confidence in senior management 28% of employees actively distrust their leaders Source: 2006 Survey by British Sociologist David Halpern Source: 2011 Kenexa Only 11% of employees strongly agree their managers show consistency between their words and actions. Only 7% of employees trust their co-workers to show consistency between their words and actions. 20% of employees believe their leaders fail to be completely honest and ethical. 25% do not trust management to make right decisions in times of uncertainty. Source: 2010 Maritz Trust Statistics 14

15 It s a Win / Win Culture, It s a TEAM! A Culture Based Upon Trust Responsibility and accountability are high Individuals accept change initiatives People choose to go above and beyond People think outside of their roles and responsibilities Individuals accept responsibility for their actions Individuals feel accepted and respected 15

16 Cultures that Build Superior Results Trust Reliability Responsibility & Accountability Purpose Vision Values Engagement, Empowerment & Enrichment Emotionally Connected I have a dream 16

17 Change Agents Team Provide leadership to empower change in the people and the organization. Promote the vision and ensure it is understood and consistent across the organization. Be the positive engine for change. Explain the benefits to the people (WIIFM). Encourage creativity and innovation Deliverables Change Agents Team Define resistance: coach and develop star employees, transition non performers, convert resistors. Recruit and mentor another change agent. Live the Way of Life. Use WOW statements, and celebrate successes: ie: Great job. We really need people like you to reach our $ mm goal. ie: Great job in supporting the team. ie: Your efforts really help us be the best. Thank you. 17

18 Leaders in a Complex Changing World Encourage Their People To Bring Their Brains to Work. Leaders in a Complex Changing World Always Operates with Honesty, Integrity & Respect. Communicates, Communicates, Communicates. 18

19 The Business Case for Magnetic Leadership Leadership IQ being equal, it is believed how leaders manage themselves, their emotions and emotions of others, accounts for 85 90% of what separates outstanding leaders from their peers. Great Leaders Create a Positive Environment Reliability Responsibility Accountability 19

20 A Culture Based Upon Trust Responsibility and accountability are high Individuals accept change initiatives People choose to go above and beyond People think outside of their roles and responsibilities Individuals accept responsibility for their actions Individuals feel accepted and respected The Results Monthly shipments $375K to $8.1MM Scrap levels 40% to 15% Service levels 76% to 99.6% Lead times 14 days to 6 days Introduced Lean Manufacturing Principles 20

21 7 1 Positioning for Growth, Profitability and Expansion Ask, Listen, & Engage to Understand Present Status & Create Momentum for Improvements Measure Results 6 2 Implement the Improvements Develop the Focus & Strategy for Improvement 5 3 Communicate the Improvements that will be Implemented Communicate the Plan to Address the Identified Major Business Improvements Build Team Infrastructure to Develop Improvement Solutions 4 The Power of MAGNETIC Leadership: It s Time to Get R.E.A.L. By: Dianne Durkin The Loyalty Factor Building Employee, Customer and Brand Loyalty By: Dianne Michonski Durkin 21

22 Thank You for attending this session! Please complete your session evaluation form. Additional Questions? 43 #ACCE13 icmi.com