RELATIONSHIP BETWEEN CULTURE & LEADERSHIP

RELATIONSHIP BETWEEN CULTURE & LEADERSHIP What is Culture Why does it matter What is the relationship with leadership What is your role in improving Culture

WHAT IS CULTURE

Respected as thought leaders academically (for research & teaching) Our diagnostics are used in: 321 of Fortune 500 companies All of the Top 10 Fortune 500 companies over 2400 organisation in ANZ in the past 30 years 25 of the Fast 50 companies 490 + Universities including 7 of the 8 Ivy League

Culture is not about strategy, it s about execution. As a result of this, culture is not strategy dependent. 25

How do I need to behave in order to fit in... How many signatures do you need before you can implement a decision? Punctuality is it ok to be late? What time is it okay to leave? How long it takes to make a decision? The vibe in a place the feel Whether people help each other out or just do their own thing How committed are people to safety, quality or customer service? How performance is rewarded? How are non performers managed? What happens when someone makes a mistake?

WHAT CULTURE ISN T

Culture & Engagement Culture is not just another word for climate or employee engagement. It goes right to the very core of how an organisation functions. Because of this factors like engagement or teamwork are outcomes of culture. Culture Engagement 2015 Human Synergistics International. All rights reserved. Research and development by Robert A. Cooke Ph.D and J. Clayton Lafferty Ph.D 12

Culture and Engagement Engagement is: above the surface an outcome a symptom of culture the way people feel Culture is: below the surface The cause of outcomes at an individual, group, and organisational level The norms, values and beliefs of how we are expected to behave 2015 Human Synergistics International. All rights reserved. Research and development by Robert A. Cooke Ph.D and J. Clayton Lafferty Ph.D 13

Comparing Culture and Climate Behaviours or Feelings Culture Behaviours Engagement Feelings Time Horizon Long term, Sustainable Short Term, Fleeting Cause or Effect Cause Effect What it Measures How its Questioned Culture measures tell you how people believe they are expected to behave To what extent are you required to think ahead & plan? Engagement measures tell you how people feel about what is currently happening. Do you receive adequate training for your role? 2015 Human Synergistics International. All rights reserved. Research and development by Robert A. Cooke Ph.D and J. Clayton Lafferty Ph.D 14

WHY DOES IT MATTER

Financial Services Ideal Culture Most Constructive Least Constructive Financial: Outcomes Most vs least Cosntructive Organisations Service Quality External Role Clarity Employee Satisfaction +8% +7% +10% +14% +12% 1 2 3 4 5 Least Constructive Most Constructive 28

Yarra Valley Water Results 38% reduction in bursts and leaks per 100km water main 5 fold increase in Return to Shareholder (A$000s) Significant decrease in staff turnover 2001; N = 291 2003; N = 348 2005; N = 336 2009; N = 427 2011; N = 533 2013; N = 511 2015 Human Synergistics International. All rights reserved. Research and development by Robert A. Cooke Ph.D and J. Clayton Lafferty Ph.D 22

Lion Results tripling in share price (A$) 60% increase in Return on Capital Employed (ROCE) Performance Comparison: Lion Nathan vs. ASX Fosters Group 1998; N = 311 2000; N = 291 2002; N = 348 2004; N = 336 2006; N = 427 2008; N = 533 2010; N = 511 Note * 2008 ROCE Figure is 13.1% adjusted for the impact of Boags acquisition 2015 Human Synergistics International. All rights reserved. Research and development by Robert A. Cooke Ph.D and J. Clayton Lafferty Ph.D 23

WHAT IS THE RELATIONSHIP WITH LEADERSHIP

Leadership Culture Performance Connection Leadership Culture Performance

The Leadership Culture Connection Leaders Direct Impact on Culture Personal styles Behaviours Thinking Leadership Strategies Management Approaches Organizational Culture Leaders Indirect Impact on Culture Vision, mission and values Structures Systems Job design Communication processes 31

How we approach our leadership responsibilities impacts how others believe they should behave (culture) and this determines our effectiveness in the leadership role 32

Leadership/Impact (L/I): Influencing Leadership Strategies +15% More Reciprocal 4 3 2 Influencing -33% Less Unilateral 1 Impact of Most Reciprocal Influencing 0 Reciprocal Unilateral Impact of Most Unilateral Influencing Impact on Others 15% more use of Reciprocal Influencing and 33% less use of Unilateral Influencing leads to the difference between a Constructive vs Defensive impact and results in a 25% to 41% difference in effectiveness. +41% More effective Effectiveness +25% More effective 7 6 5 4 3 2 1 Impact on Productivity Leadership Effectiveness Empowers Others Brings out the best in people +29% More effective 33

WHAT IS YOUR ROLE IN IMPROVING CULTURE

Meta Capability Model for Cultural Transformation Source: Jones, Dunphy, Fishman, Larné, Canter (2006); In Great Company Unlocking the Secrets of Cultural Transformation