Shaping Culture to Enhance Organizational Performance. Presenters: John McKay and Regina Salvucci Wednesday, March 9, :30 p.m.

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1 Shaping Culture to Enhance Organizational Performance Presenters: John McKay and Regina Salvucci Wednesday, March 9, :30 p.m.

2 John McKay Senior Vice President My greatest reward in this work comes through helping organizations develop a lasting culture that is aligned in its values and enables employees to get the very best results in an environment that is positive, empowering, synergistic, and satisfying. Not only are the culture of the organization and its results enhanced, but leaders and employees learn to be at their best, individually and as part of a larger team, and often carry these life-enhancing principles into all aspects of their lives. Supporting that effort is extremely gratifying. John s purpose is to inspire a meaningful and lasting difference in the lives of his family, in the organizations with which he partners and in the world. To that end, John works with leaders to successfully implement healthy, high-performance cultures. He is highly skilled at helping leaders create a compelling vision and core values for their organization, and designing and implementing culture-shaping initiatives to achieve breakthrough results. Since joining Senn Delaney in 1988, John has worked extensively with leadership and management teams of various companies across a broad spectrum of industries, including energy, quick service restaurants, telecommunications, financial services, healthcare, retail, aerospace and manufacturing. Clients he has worked with include USAA, FedEx Services, Burger King, McDonald s, Victoria s Secret Stores, Express, Novartis, AutoZone, CIGNA, Piedmont Natural Gas, T-Mobile, Boeing, Terminix, and HealthPartners. John was a key advisor to the University of Chicago s Graduate School of Business in developing its Leadership Education and Development (LEAD) process that quickly raised them from 11th to 1st in national rankings. This groundbreaking approach in education has been adopted by other top business schools. Prior to joining Senn Delaney, John began and operated a successful tour company, developing, marketing and coordinating bilingual tours throughout the Intermountain West. He accompanied the governor of Utah to Tokyo to represent Utah tourism on an international trade mission, directly increasing the number of Japanese tourists to the Intermountain West. Before starting his tour company, John worked as a customer service representative for American Express. Prior to that, he coordinated the efforts of more than 200 church representatives throughout Southern Germany. John earned his Bachelor of Arts in political science at the University of Utah and Master of Business Administration from the Anderson Graduate School of Management at UCLA. John and three of his four daughters live in Sandy, Utah, just outside of Salt Lake City. He is a grandfather to a beautiful, very energetic little boy and if you ask him, he will most certainly have a proud grandpa story ready to share. John loves family activities and enjoys reading, traveling, singing, and has an extensive music collection. His favorite sports include tennis, skiing, and horseback riding.

3 Helping leaders realize their role in creating the healthy, high-performance culture needed for their organization s success is a key component in helping them lead more effectively. Regina Salvucci Partner Regina Salvucci is a partner at culture-shaping firm Senn Delaney, a Heidrick & Struggles company. She also leads the health care practice. Regina's professional history has enabled her to experience the importance of healthy functioning at all levels in order to achieve optimum organizational performance. Her view from the field and her experience working with senior leadership teams, labor unions and customers, and from owning her own business brings a mix of business sense, realism, and immediacy to her consulting relationships. She enthusiastically joined Senn Delaney to use this depth of understanding to help leaders create the thriving, organizational cultures. Since joining Senn Delaney in 1996, Regina has become a trusted advisor to senior teams to help them lead the reshaping of their organizational culture. Some of her many clients include McDonald s, American Airlines, WellPoint, Chase, KeyBank, Toys R Us, Nationwide Insurance, Victoria s Secret, Norfolk Southern, The Ohio State University, Cigna, Paychex, Miami Children s Hospital, Methodist Le Bonheur Healthcare, ResCare and KentuckyOne Health. She has previously held various leadership positions at Verizon. Regina s experience in leading teams through cultural transformation, restructuring, downsizing and through extensive quality improvement processes has provided her with valuable insights into how to effectively advise and assist large organizations in their cultural transformation journey. She has also worked as a counselor/advisor for Lee Hecht Harrison, where she worked with such clients as Honeywell and Capital One. Regina also owned a highly successful retail business. Regina received her education at Longwood College in Virginia. She and her husband live in Ellicottville, New York. She has two adult sons and she enjoys reading, gardening and skiing.

4 Shaping Culture to Enhance Organizational Performance John McKay, Partner Regina Salvucci, Partner Senn Delaney Senn Delaney s Purpose To positively impact the world by inspiring leaders to create thriving organizational cultures 2 1

5 some of our healthcare clients 3 what we will cover organizational culture what it means culture s impact on results and strategy how to shift a culture leadership shadow how it begins with you 4 2

6 culture is subjective yet drives behaviors attitudes traditions the way we do things around here energy beliefs habits values we live spirit unwritten ground rules historic behaviors 5 indicators of culture Are people and groups: trusting of one another or not? collaborative or individualistic? accountable or blaming? energized or dispirited? curious or judgmental? self-centered or for the greater good? embracing or resistant to change? purposeful or transactional? agile or slow to change? 6 3

7 culture has hit the tipping point As Malcolm Gladwell author of the book The Tipping Point said in a recent blog I ve become convinced that culture is the most important predictor of where a company is going. 7 culture matters, but is under-utilized 84% 60% 51% agree that their organization s culture is critical to business success say culture is more important than strategy or operating model think their organization s culture is in need of a major overhaul Source: Booz & Company Global Culture and Change Management Survey

8 quote from The CEO Conference Board Challenge Report 2014 Gaining better alignment between strategy, culture and organizational capabilities is the number one strategy globally 9 strategy structure culture The highest levels of performance are achieved when the strategy, structure and culture are in alignment: a l i g n m e n t strategy structure culture vision, purpose, strategy organization structure, management processes, communications, talent management (competencies, hiring, performance, etc.) values, mindset, behaviors, attitudes, beliefs, heart & spirit 10 5

9 aligning strategy, structure and culture When strategies and conditions change, some new behaviors are required prior strategy/ conditions new strategy/ conditions existing structure/ systems needed structure processes existing culture culture change Culture needed to execute 11 mergers & acquisitions have a big potential for culture clash if not addressed Company A Strategy new strategy Company b Strategy Company A Structure new structure Company B Structure Company A Culture culture change new culture culture change Company B Culture 12 6

10 the jaws of culture Culture is a principal reason mergers, new strategies or business initiatives fail or fall short of potential. We call the phenomenon the Jaws of Culture. Whenever there are dysfunctional characteristics in a culture, or people connect more to their legacy organization than the new company, this impedes progress. narrow focus strategies many in complacency entitlement cultural barriers patient & family centered-care new model or alliance physician integration align multi-units quality, safety, service few out lack of: collaboration innovation trust teamwork accountability low results 13 culture and performance When an organization systematically reshapes its culture to a healthy, high-performance one, it then becomes a launching pad for success. high results strategies patient & family centered-care new model or alliance physician integration align multi-units quality, safety, service focus on patient care alignment collaboration innovation balanced decisions made for the greater good high accountability high-performance values and culture 14 7

11 how culture connects to healthcare focus on patient & family-centered care collaborate across disciplines to focus on patient care partner with patients and families to include them as part of the team enable new business models and transformational change integrate physicians, build trust and alignment with physicians create the cultural foundation for successful medical homes, ACOs and new care models successfully implement mergers and acquisitions define and create new culture for the new company positively align cultures to the new organization increase collaboration and innovation within single and multi-unit organizations including facilities, shared services, service lines clinical, administration, foundations, research, academic/faculty build healthier, higher-performing leadership teams better align new and existing leadership teams toward a common vision/strategy provide purposeful leadership; cast a positive leadership shadow shift the way people work together to implement new strategies and organizational capabilities increase quality, safety and accountability improve the patient experience (service and care experience) enable EHR and other technology-based transformations improve success with Lean Six Sigma and other strategies positively impact the broader cultural DNA to maximize effectiveness of all initiatives engage all stakeholders from the top to the front line help organizations go from good to great 15 the four culture-shaping principles that guide our integration work Purposeful Leadership Personal Change Broad Engagement Focused Sustainability 01 The senior The senior leaders must own and lead the cultureshaping process. Leaders cast a powerful shadow. Must be a clear and compelling purpose. People need to unfreeze existing habits and make personal behavior change. People understand the purpose for shaping culture. The culture journey needs to have a clear fromto. The faster the whole organization engages in the process, the higher probability the culture will shift. Utilize a Leader-led process. Systematic reinforcement at individual, team and organization level. Institutional practices, systems, performance drivers and capabilities to drive the desired culture. 16 8

12 a combined approach needed for success outside-in approach external input driving change intellectual WHY we re doing this books and lectures 360 s values on walls leadership models inside-out approach individual insight our own realizations and commitments about life heartfelt how to be what to do realization and commitments about: unconscious habits beliefs thought habits life assumptions 17 9