Cultivating a Purposeful Culture: Your Organization s DNA. Presented by: Michael Stewart Managing Director Work Effects
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1 Cultivating a Purposeful Culture: w Your Organization s DNA Presented by: Michael Stewart Managing Director Work Effects
2 What is Culture? Culture
3 What We Hear How we view work Safety ATTITUDE HAVING FUN How you re treated Want to win EXPECTATIONS What makes a difference How we operate Political environment What is prioritized VALUES How you treat others Employee and customer experience WRITTEN AND UNWRITTEN RULES Flexibility What we hold each other accountable for POWER STRUCTURES WHO YOU ARE How we make decisions as an organization Interactions with clients Value Proposition WHAT MAKES US DIFFERENT Employee involvement in decisions How we communicate, or don t
4 About Work Effects w
5 Work Effects Since 1997, Work Effects has helped organizations transform their leadership and culture into a competitive advantage. We provide best in class service and quality through our commitments: Build collaborative relationships Pay attention to details Provide a positive experience Meet timelines and budgets Are responsive and innovative
6 Clients w
7 Agenda Differentiate health and culture Identify the role of strategy in culture change Activity Create your organization s purposeful culture Review Work Effects Process Case studies & results
8 What is done Health vs. Culture Every organization wants to be healthy. Bad Good How it s done There is no one right way to approach culture. Good Good
9 Aligning Strategy and Culture Requires a Healthy Organization STRATEGIC GOALS What we re doing PURPOSEFUL CULTURE How we re doing it HEALTHY ORGANIZATION Enablers & Inhibitors: How well we can do it
10 Culture Transformation Phases
11 Your Organization s DNA w
12 What is done Health vs. Culture Every organization wants to be healthy. Bad Good How it s done There is no one right way to approach culture. Good Good
13 Healthy Culture Purposeful Culture Leadership Trusted Organization Trusted Individual Individual Capability Team Capability Organizational Climate Organizational Capability Customers Market Approach Loyalty Focus Risk Tolerance Operational Approach Decision Making Information Decision Making Location Atmosphere Results
14 Why Health? w
15 Trends and Benefits of Engagement Source: McKinsey Quarterly Organizational health: The ultimate competitive advantage Source: Aon Hewitt 2014 Trends in Global Employee Engagement Report
16 Core Values Examples
17 Measuring Health Every organization should be healthy Engagement and values are not aligned to your strategic goals You need more to create distinction by defining how work gets done
18 Why Culture? w
19 Culture
20 Aligning Strategy and Culture Requires a Healthy Organization STRATEGIC GOALS What we re doing PURPOSEFUL CULTURE How we re doing it HEALTHY ORGANIZATION Enablers & Inhibitors: How well we can do it
21 Strategy to Results Strategy Leadership Trust Culture Capability Results Strategy must go through culture to produce results Culture eats strategy for lunch Peter Drucker
22
23 ROI of Purposeful Culture Culturally aligned organizations with hightrust return 286% more value to stakeholders than low trust organizations 1 Purposeful culture can account for as much as 50% of the competitive difference between organizations over a 10 year period 2 Outcomes Healthy Purposeful Revenue 166% 692% Stock Price 74% 901% Net Income 1% 756% 1 Watson Wyatt High Trust Organizations Study, 2012 Job Growth 36% 282% 2 James Heskett The Culture Cycle, 2012
24 When Culture Becomes a Crisis Sudden or Unexpected Downturn Talent Merger or Armageddon Acquisition (Brain Drain) Change in Leadership Organizational Pain Exponential Growth Shift in Strategy
25 Activity w
26 Aligning Strategy and Culture Choose your current or a familiar organization Identify key strategic goals Strategy drives culture
27 Customers Transactional Intimate
28 Market Approach Market Adopter Market Leader
29 Loyalty Logo Loyalty Individual Loyalty
30 Focus External Internal
31 Risk Tolerance Risk Mitigation Embrace Risk
32 Operational Approach Low Process Variation High Process Variation
33 Decision Making Information Fact Intuition
34 Decision Making Location Centralized Decentralized
35 Atmosphere Disciplined Social
36 Results How What
37
38
39 Current Culture Choose one of the statements for each dimension that best represents what you think the CURRENT culture is and mark a C in that box Put your initials on the red dots and put them on the TOP half of the dimension s row. Risk Mitigation Risk Tolerance Embrace Risk Priority Current Needed
40 Needed Culture What are your strategic goals, and how will they drive your culture?
41 Needed Culture Choose one of the statements for each dimension that best represents what you think the NEEDED culture is to meet the strategic goals and mark an N in that box Put your initials on the green dots and put them on the BOTTOM portion of each dimension s row. Priority Current Needed
42 Alignment Review the alignment, or lack thereof, of the green stickers on the poster Where exactly does culture need to be for the strategic goals? Outliers Purposeful misalignment
43 Top 3 Priorities Identify your top 3 dimensions Put Three dots next to your 1 st choice, two for 2 nd choice and one for the third choice Risk Mitigation Risk Tolerance Embrace Risk Priority Current Needed
44 Discussion Where are our priorities? Consensus? Anything stand out?
45 Sustainable Change w
46 Strategy Culture Alignment Planning Session Create common understanding and buy in to strategy Establish shared understanding of the importance of culture in executing strategy Determine contextual definitions of culture Assess the cultural dimensions that are most critical in executing strategy Determine what change will mean for the organization and how to take action
47
48
49
50 w
51 Enablers + Inhibitors What are the behaviors that currently inhibit us from growing? What behaviors will enable us to shift to where we want to be?
52 Culture Transformation Phases
53 Phase I Define Culture Strategy Alignment Planning Session Step 1: Clarify strategic goals Step 2: Discuss the culture you have Step 3: Define the culture you need Step 4: Prioritize the critical few Step 5: Individually rehearse how work needs to gets done
54 Phase II Discover Health + Culture Gap Analysis Step 1: Conduct Organizational Survey Establish benchmarks for organization health and culture metrics Step 2: Analysis of Information & Organization Determine the 20% of the organization that produces 80% of the value and focus there Step 3: Executive Debrief Provide executives with summary results, themes and trends, and roadmap for transformation
55
56
57 Phase III: Develop the Actions Follow Up Process w
58 Phase III Develop Change Formula
59 The 4R Model of Leadership Relationships Beneficial Partnerships Aligned Emotions Sustained Determination Intellectual Flexibility Character Roles & Responsibilities Results Qualitative Quantitative Contextual
60 Phase IV Deploy Phase IV Steps 1. Identify Culture Champions 2. Prepare Culture Champions 3. Sustain Culture Transformation 4. Monthly Dashboard Metrics
61 Identifying Culture Champions Key People Indicator A multi rater assessment where an entire organization or group participates in the process at the same time Raters choose who they would like to provide feedback for rather than participants selecting who to receive feedback from
62 Process Typical 360 Process Key People Indicator Process 1. Invitation to select raters 2. Rater selection reminders 3. Selection of raters 4. Rater invitation to provide feedback 5. Provide feedback reminders 6. Survey cut off 1. Rater invitation to provide feedback 2. Provide feedback reminders 3. Survey cut off
63 Key People Indicator Scoring Scores are normalized +1 = if this was the highest overall ratings given by the rater 1 = if this was the lowest overall rating given by the rater 0 = all other ratings by the rater Scores for an individual participant are averaged across their related raters. [ +1, +1, 0,0,0 = 0.4 ] Normalized distribution is used to determine the cutoff data points +/ 0.3 Green = <0.3 Yellow = Red = > 0.3
64 Case Study Sales Develops valuable client relationships?
65 Case Study Managers Positively motivates team to achieve superior results? Your results had definite impact with our management as they let this manager go immediately, and everyone in the department verbally cheered as this person has been cancerous to the organization for over 20 years. Kathy Goldreich SVP Learning & Development Citigroup
66 Typical Change Timeline 2 6 Months Work Effects 1 2 Years w 4 6 Years 7 10 Years 2 3 Years
67 What is done Health vs. Culture Every organization wants to be healthy. Bad Good How it s done There is no one right way to approach culture. Good Good
68 Culture Transformation Phases
69 Questions? w
70 Thank you! nd Ave S, Suite 100 Minneapolis, MN effects.com
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