Cracking)the)Corporate)Culture)Code:)

Transcription

1 Cracking)the)Corporate)Culture)Code:) 5)Practices)for)Peak)Performance)&)Employee) Engagement) December)2012) 2012 ReMission Consulting, Inc.

2 2 Cracking)the)Corporate)Culture)Code:) Five)Practices)for)Peak)Performance)&)Employee) Engagement) My#best#assets#get#up#and#walk#out#of#the#office#at#five#o clock#everyday.##help#me#make# the#most#of#them,#and#you ll#have#solved#nearly#all#of#my#problems. Thepresidentofa 9.90% Low Engagement ROI)on)Culture:) Operating)Margin) Gallup) 14.30% 27.40% High Engagement High Three E's professional servicescompany recentlysharedhis gut>levelawareness ofworkplace culture simportance andhowelusiveit wasforhimandhis seniorleadership teamtopurposefully master. Hiswordsecho conversationswithotherc>levelleaders,acrossthecountryandaroundtheglobe. Italsoevidenceswhatmanyresearchcompanieshavestudied,andwhathe,like manyofyou,alreadyintuitivelyknows. Basedondecadesofresearch,theCorporateCultureCodequitesimplycanbe brokendownintothethreee sofapeakperformingculture;empowered,) energized)and)engagedpeople atalllevels. WithoutthesethreeE s,organizationsstrugglewith interpersonaldysfunction,businessunitbattlesand leadershipdeficienciesatalllevels,oraswehavecometo seeit;corporatecancer.companiesthathavehighly engaged,)empowered)and)energizedemployeesare withoutdoubt,moreeffective.often,muchmore effective. Profitability,employeeretention,safety,creativity,cost reductionandearningspersharehaveallbeendirectly correlatedtoemployeeengagementinstudiesby Accenture,Gallup,TowersWatsonandmanyothers. Corporate Cancer s Impact on Staff Performance 31 51% more employee turnover 51% more inventory shrinkage 62% more accidents Gallup CrackingtheCorporateCultureCode ReMissionConsulting,Inc.

3 3 Inamulti>decadestudyofover5,000companies,Gallupdiscoveredthatthosefirms withhighlyengagedteammembersare12%moreprofitableand18%more productivecomparedtotheirpeers.additionally,earningspershare(eps)growth ofeighty>ninepubliclytradedorganizationswereexaminedandthegrowthof highlyengagedcompanieswas2.6timesthatoforganizationswithbelow>average scores. ThosefirmswithCorporateCancer;highlevelsofdisengaged,disempoweredand unmotivatedstaffhadhighlevelsofturnover,inventoryshrinkage,injuries,sick timeusageandanunderperformingeps. Butwhat,exactlyisthe Annual)Sick)Day)Usage) Gallup) 2.7 High Engagement recipeforemployee engagement?more importantly,whatcan youdotosustainandgo beyondengagement? Howdoyoucreatea culturethatsupports engaged,)empowered) and)energizedteams thatowntheirefforts withprideandpassion? Engaged,)empowered) and)energizedemployeeswillinglyandpassionatelycommitdiscretionarymental capacity,creativity,innovationandenergytotheirwork.basedontheresearch,this isadirectresultofworkplaceculture.it snotaresultofyourcorporatemission statementoranydocumentsomeunknowncommitteewroteandhunginyour lobby. Basedonyearsofpracticalfieldwork,wehaveidentifiedfivepracticesofahighly effectiveculture:engaged,)empowered)&)energizedstaff. EffectiveCulturesarenotspontaneouslygenerated,andfor themtotakerootrequiremanagersandseniorleadersto stepintoaleadershipmodelthatexercisesandstewards thesefivepractices. 1) TwoLway)Feedback) 6.2 Low Engagement Weekly Feedback s Impact 43% of team feels more highly engaged Only 18% of team reports low engagement Watson Wyatt Regular,#unstructured#and#grounded#in#open,#honest#and#responsible#language,# two>way#feedback#generates#a#sense#that#the#company#cares#and#is#open#to#the# CrackingtheCorporateCultureCode ReMissionConsulting,Inc.

4 4 insights#of#the#employee;#simultaneously#it#allows#the#supervisor/manager#a# culturally#accepted#channel#to#coach#the#staff#member#to#ever#higher#levels#of# performance.# Createanexpectationofregular,professionalandhonest feedback,bothupanddowntheenterprise.thiscanbeone ofthemostchallengingpracticestoincorporate.without honesttwo>wayfeedback,however,theotherfivepractices arenearlyimpossible. Ground>rulesforfeedbacksessionsinclude;Timelinessof feedback;opennesstofeedback>askthepersonaboutto receivefeedbackiftheyareopenandhavetimeforthe conversation;andaboveallelse,makeitconcreteand Connectedtobehaviors,resultsandhoweachtiebacktothe client. KeepitTimely,Open,ConcreteandConnected.Solicittheir thoughtsonimprovingthesituation.lastly,offertobeof servicetothem,tosupportthemincreatingthechanges neededtomaintainthepositiveortoimprovethenegative. 2) Trust) # Culture Case Study Global Manufacturer, UK Knowing#that#managers#are#making#the#right#decisions#for#the#right#reasons,# and#that#staff#are#doing#the#right#things#at#the#right#times#are#the#two#main# aspects#of#workplace#trust.##team>members#crave#a#culture#in#which#leaders,# managers#and#peers#are#trusted.# Mistrustinleadership,whetherit sexecutives,managersorsupervisors,isoften citedasthenumberonereasonpeoplequit.favoritism,micromanagement, inconsistency,unprofessionalismandhypocrisyarethekeyfactorsthatleadto mistrustinleadership. Often,whenconfrontedwiththechallengesofmistrust,managerspointfingersat colleaguesordirectreports.whatmostbusinessmanagersfailtorealizeis leadershipstartswithleadership*of*self;whichcanmakeitacatch22. Leadership>of>selflaysthefootingforbuildingtrust.Thekeyqualitycentralto leadership>of>selfisoperatingwithakeensenseofintegrity.integrityincludes consistentlydoingwhatyousayyouaregoingtodo;keepingyourword;honoring andrespectingothers;andclearlycommunicatingandactinguponthebestinterests oftheorganizationandclient. Ontime delivery improved to 98% meeting internal benchmark Productivity increased by 250% Scrap rates decreased by 67% Customer Satisfaction saw a 73% reduction in customer complaints CrackingtheCorporateCultureCode ReMissionConsulting,Inc.

5 5 Pivotaltomaintainingtrustishowstaffhandlesbroken trustorbehaviorincongruouswithintegrity.owning mistakesandcommittingtocorrectingthebehaviorthat ledtothemistakeiscriticaltorepairingandsustaining trust. Witnessingaleaderstandinginfrontofhisorherteam, humblyowningamistakeandaskingforsupportinbeing heldaccountablehasbroughtteamstotheirfeetin support.thisisasupremelyeffectivewaytorebuild brokentrust.ittakesaverycourageousleadertostep intothatlevelofvulnerability. Nothingevidencestrustlikegut>levelhonesty& vulnerability.youcan thaveonewithouttheothers. 3) Career)Track)&)Training) # Results on Engaged Teams Gallup 2002 Study Genuine#conversations#about#development,#advancement#and#growth#are# important#to#every#team#member#>#at#every#level.##staff#members#desire#an# environment#where#any#competent#team#member#can#live#the#american#dream,# even#if#they#themselves#never#pursue#it.# Anabsenceofthesetalksandopportunitiesleademployeestofeelcaughtinadead> endjobwheremanagementdoesn treallycare.quickwaytodis>engagepeople. Theseconversationsdon tneedtobeaboutpromisesorpossibilitieswherenone exist.sharingagoodbook,providingflexibilityinschedulestosupportateam member scommunitycollegeworkorevenaskingfortheirinputonworkplace trainingandprofessionaldevelopmentareallgreatplacestostartthispractice. Mostimportantly,havingconversationswheremanagerslistentoandhearthe aspirationsoftheirdirectreportscommunicatesthatmanagementcares,andthat withappropriateresources,theymaybewillingtosupporttheemployeein growing. Talktostaffaboutwhattheycandoandaboutthelevelofvaluetothecompanyand theclienttheywouldneedtodeliverforadvancementmaygiveanaspiringleadera pathforwardwhenbeforenonemayhavebeenclear. Trainingopportunitiescanalsocreateresponsibilitiesthatleadtogrowth.Whether insidetraining,colleaguetocolleague,bringinginanoutsidetrainingfirmor offeringstaffabudgettospendwithmanagementapprovalonoutsidetrainingof Actively Disengaged employees cost over $2,700 per person per year Only 29% of an average company enjoys highly engaged staff 71% of workforce is disengaged CrackingtheCorporateCultureCode ReMissionConsulting,Inc.

6 6 theirownchoosing,allcanprovidematerialevidencethattheorganizationrespects themandseespotentialbeyondcurrentlevelsofpay,responsibilityandauthority. Additionally,beonthelookoutforinformaltrainingthatcanoccurwithdelegation. Lookforthosewhowantandcantakeonmoreresponsibility,inturnfreeingyouup forhigher>leveltasksyourself.it shardtogetpromotedifyoudon thaveanyone readytofillyourshoes. 4) Understanding)their))))) Role)in)Success) Employees#crave#a#deep#understanding#of#how# their#role,#their#efforts#and#their#caring#positively# impact#the#success#of#the#company#and#ultimately# the#success#of#the#client.##the#more#they#know,#the# more#they#care.# Awareness Less than 50% of chief financial officers appear to understand the return on their investments in human capital. Accenture Establishacustomercentricculturewhereeveryone,ateverylevel,clearlyand readilycanexplainhowtheyimpactthecustomer.thispracticeprovidesessential contextforcreativity,innovationandquality.withoutacustomer>centricfocus, manywell>intentionedinitiativescanbecomeanintellectualexercise,atbest. Understandingtheimpacttheirworkresultshaveoncustomers experiencefuels prideinajobwelldone.providecustomertestimonytostaff,easilybringingthe valueloopfullcircle. Nothingdrivesmeaningandasenseofpurposemorethanknowingyouhelpedto overcomeacustomer swant,need,fearorconcern. 5) Influence) Being#heard#and#having#a#meaningful#influence#in#decision>making,# particularly#when#it#comes#to#physical#environment,#access#to#management#and# quality#controls#significantly#impact#employees #level#of#empowerment,#energy# &#Engagement.## Oneofthemostinterestingparadigmshiftstoseemanagersmakeisbetween settingperformancestandardsversuscoachingtoemployee>generatedgoals.this practicedrivesateammembers senseofmeaningfulinfluenceondecision>making byempoweringthemtosettheirownperformancegoals. CrackingtheCorporateCultureCode ReMissionConsulting,Inc.

7 7 ButIfIletthemsettheirowngoals,we llneverhavesignificantgrowth. Nothingcouldbefurtherfromthetruth. Gainingsomeone scommittedintentioninattaininggoalsisfareasierwhenthey createthegoal providedyou,asaleader,haveestablishedtheminimumstandard forperformancefirst. Infact,ourexperiencehasshownthatmorethan4out of5teammembers,whengivenfirmstandardsandthe resourcestosucceed,establishgoalsmoreaudacious thanthoseenvisionedbymanagement. Whyforceapersontocomplywithacorporategoalof 15%growthwhentheymayvoluntarilychooseaself> imposedgoalof30%?managingteammemberswith thislevelofownershipbecomesmorelikecoachingan all>starteamcomparedwithsupervisingahighschool detentionhall. Thispracticeofempoweringstaffisbasedonthe educe rootsofempoweringleadership.whenleaders educeordrawtheanswersoutofteam>members,pull goalsorsolicitsuggestionsforprocessimprovements, theyimplicitlyvaluetheemployee sthoughts, experiencesandopinions.anditworkswithoutmaking constituencieswrongorweak,ratheritempowersall team>members. Enterprise)Constituencies Status Quo on Corporate Cancer Only 29% of staff believed senior managers were sincerely interested in their wellbeing Only 31% thought senior managers communicated openly and honestly Only 3% thought their managers treated them as key parts of the organization 60% felt senior managers treated them as just another asset to be managed Towers Watson Executive Management Veteran Staff Managers NewStaff CrackingtheCorporateCultureCode ReMissionConsulting,Inc.

8 8 Beingopentothesuggestionsofothersdoesn tnecessarilymeanthoseideasmust beimplemented. Management sawarenessoftheinfluenceandimpactvariousconstituencieshave ononeanothermustbeconsideredwhenallowingmembersofthoseconstituencies tohaveadirectvoice.departmentorbusinessunittown>hallmeetings,which allowteammemberstoanonymouslyaddressconcernsinwritingpriorto gathering,canbypassnegativeinfluenceandlegacybottleneckstocommunication. Allowingpeopletobeheardandtohear,seeandfeel management sconnectionservestobolsterasenseofcreativity, collaborationandinfluence. Mostimportantly,beingheardoftenallowsothers ideastobe morereadilyadoptedoverone sown>iftheprocessisauthentic, genuineandopen. Bonus;youjustmaygetsomegreatideasandfrompeoplewho havefeltdisenfranchised. Summary) Innovation & Creativity Higher levels of engagement are strongly related to higher levels of innovation. 59% of engaged employees say that their job brings out their most creative ideas against only 3% of disengaged employees. Gallup Collaborationandcreativitybecomelivingandbreathingembodimentsofan Effective Culture.Stewarditbymaintainingalevelofself>awareness,accountability andcommitmenttoresultsthatonlycomesfromathoroughexaminationof individualandorganizationalbeliefsystems. RecognizepeoplethatstepintothechangesneededtosustainanEffectiveCulture,a corehabitoftheseniorleadersservestoreinforceanatmosphereofaccountability. Modelingthebehavior,walkingthewalk>withoutquestion>isthemostimportant thingleadersdotofosterapeakperformingculture. Theultimatequestionthen:Areyouwillingtoliveandbreathetheexampleyou re askingotherstostepinto?attheendoftheday,askingteammemberstodowhat leadershipandseniormanagementisunwillingtodowillworsencorporatecancer; disengagementanddisempowermentanddemotivation. Leadershipstartswithleadershipofself.Practicebeingtheleaderyouwantthem tobe,andyouwillbeginbuildinganeffectiveculture. CrackingtheCorporateCultureCode ReMissionConsulting,Inc.

9 9 ReMission)Consultingprovidescustomizedcorporate culture,employeeengagementandmanagement& leadershipprogramsincompaniesacrossnorthamerica. ReMissionoperatesfromaphilosophythatallpeopleare capableofbecomingself>aware,canbecoachedinto accountabilityandcancreateresultsthatareexponentially greaterwhentheyoperateinaneffectiveculture.their programsaremetricsdrivenandproducelastingchangein clients cultures. Dan)DemersAuthorofthesoontobereleasedCorporate# Cancer:#How#to#Cure#what s#killing#your#companyisthe founderandpresidentofremissionconsulting,anew Hampshirebasedtrainingandconsultingfirmthatsupports companiesinbuildingeffectivecultures.hecanbereached 2012 ReMission Consulting, Inc. Possibly the most important aspect of our cultural effectiveness program was learning and teaching everyone how to speak to one another in Open, Honest and Responsible Language. It removed the blame & complain habits so common in a workforce. We are materially more effective both with our clients and with each other because of ReMission. Lisa Charest, President Summit Health ReMissionConsulting,Inc. POBox2061 Dover,NH03821> dan@remissionconsulting.com CrackingtheCorporateCultureCode ReMissionConsulting,Inc.