Peeling back the layers. Accountability: The Key to Culture Alignment

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1 Accountability: The Key to Culture Alignment SCCE 2007 Compliance & Ethics Institute New Orleans David Gebler, Founder, Working Values, Ltd. Peeling back the layers 2 (c) Working Values, Ltd. 1

2 Our Challenge 3 What kind of issue is this? 4 (c) Working Values, Ltd. 2

3 What kind of issue is this? When does customer service become an ethics issue? When do management messages generate risks to the organization? Is there a difference It Wasn't Weather That Stranded Flight 1348, But American's Misfiring Corporate Culture Wall Street Journal, January 12, 2007 between a corporate culture that supports ethics and one that supports customers? 5 What about this? 6 (c) Working Values, Ltd. 3

4 Ethics isn t about ethics Managing to the process Inconsistent application of standards Suffering under a matrixed organization 7 What drives behavior? Values Goals Standards 8 (c) Working Values, Ltd. 4

5 Seven types of Values Common Good Transformation Sustainability Social Responsibility Alignment Accountability Self-Interest Systems & Processes Communication 3 2 Financial Stability 1 9 Why is Accountability so important? Sustainability Social Responsibility Alignment Accountability Systems & Processes Communication Financial Stability Will ethical employees take personal responsibility to do the right thing? Creativity Teamwork & Collaboration Continuous Improvement Innovation Missing Values suggests that Everyone is out for themselves without Commitment 10 (c) Working Values, Ltd. 5

6 Global Reach Corp. Personal Values Current Culture Values Desired Culture Values 1. accountability (194) 2. honesty (181) 3. responsibility (148) 4. integrity (119) 5. adaptability (115) 6. commitment (111) 7. family (110) 8. reliability (110) 9. positive attitude (101) 10. continuous learning (100) 1. bureaucracy (177) 2. cost reduction (172) 3. long hours (144) 4. firefighting (141) 5. inconsistency (115) 6. uncertainty (113) 7. control (106) 8. continuous improvement (90) 9. accountability (88) 10. blame (84) 1. accountability (181) 2. continuous improvement (175) 3. balance (home/work) (149) 4. teamwork (148) 5. open communication (114) 6. continuous learning (104) 7. integrity (95) 8. quality and innovation (94) 9. information sharing (93) 10. leadership development (87) 11 Desired Culture What kind of company do they want to work at? NEW VALUES Balance (home/work) Teamwork Open communication Continuous learning Integrity Quality and innovation Information sharing Leadership development Desired Culture Values 1. accountability (181) 2. continuous improvement (175) 3. balance (home/work) (149) 4. teamwork (148) 5. open communication (114) 6. continuous learning (104) 7. integrity (95) 8. quality and innovation (94) 9. information sharing (93) 10. leadership development (87) 12 (c) Working Values, Ltd. 6

7 Global Reach Corp. (362) 40% 35% 30% 25% 20% 15% 10% 5% 0% 37% 29% 27% 22% 22% 19% 15% 13% 12% 9% 9% 9% 7% 5% 4% 4% 4% 3% 3% 3% 2% Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Personal Current Culture Desired Culture 13 October 2006 Action Plan See the Values trends: Entropy What they say is wrong Values Jumps What they say they need Frame Goals in terms of Values Empower the Drivers Choose Small Steps 14 (c) Working Values, Ltd. 7

8 Entropy Report TOTAL NUMBER OF VOTES FOR POTENTIALLY LIMITING VALUES AND PERCENTAGE OF TOTAL 1377 out of 3621: 38% of total votes Level 1 Level 2 Level out of 662: 11% of total votes 244 out of 364: 7% of total votes 740 out of 1200: 20% of total votes uncertainty (113) control (106) short-term focus (68) caution (48) risk-averse (32) job security (26) blame (84) internal competition (61) intimidation (41) disrespect (33) empire building (25) bureaucracy (177) long hours (144) firefighting (141) inconsistency (115) information hoarding (59) cynicism (41) overly compliant (35) power (28) 15 Value Jumps VALUE balance (home/work) accountability open communication continuous improvement teamwork employee fulfillment information sharing trust leadership development continuous learning consistency integrity efficiency CURRENT CULTURE VOTES DESIRED CULTURE VOTES JUMP (c) Working Values, Ltd. 8

9 What drives behavior? Values Goals Standards 17 Frame the Goals Value Performance & Productivity Values Integrity & Compliance 18 (c) Working Values, Ltd. 9

10 Empower the Drivers Mid-Level managers are heroes Strategic Operations Plan Accountable for solving problems across silos Cascade Up Open Communication Continuous Improvement Information Sharing 19 Choose small steps Outcomes over process Lead, not manage Learn from mistakes 20 (c) Working Values, Ltd. 10

11 Outcomes over process Local empowerment to reduce L-3 negativity Cross-functional teams to be responsible for implementing the strategic plan Values impacted: Accountability Teamwork 21 Lead, not manage Management 101: Listening Skills Consistent Trusting Values impacted: Trust Leadership Development Consistency 22 (c) Working Values, Ltd. 11

12 Learn from Mistakes Model L-4 behaviors How should mistakes be handled? Self-correction Peer observation Peer coaching Manager coaching Manager corrective action - Mark Samuel 23 All values are local Focus on what will it take to change an individual s behavior 24 (c) Working Values, Ltd. 12