Organizational Culture by Design Not Default Greg Honey and Peter Mayne Farm Credit Canada
What we ll cover today 1. What does it mean to have a culture by design? 2. How did FCC go about transforming its culture? 3. How can a positive culture support talent mobility and retention? 2
Why does this matter to you? The mobility, engagement and loyalty of your employees has the potential to be a huge competitive advantage in the age of talentism 3
FCC: 100 offices dedicated to agriculture
We believe that A deliberate and positive culture supported by the right leadership behaviours is the key to creating an unbeatable employee experience. 5
What is culture? Simple definition: The way we do things around here. 6
Where do cultures come from? Culture by default Evolves over time Based on deeply-held shared assumptions about success How people behave and work together just happens Often originates from values and beliefs of the founder May or may not align with current business needs and challenges Culture by design Deliberately created Based on a compelling vision of the future How people behave and work together is clearly specified Often originates from visionary leaders Should align with the present and future business needs and challenges 7
Have a look at your own culture 8
Transforming the culture at Farm Credit Canada
How it began: the time was right to raise the bar FCC had solid business results Visionary CEO Increasingly competitive business environment Was good good enough? 10
Something was getting in the way Talented, thoroughbred VPs focused on getting great business results sometimes at the expense of people. 11
Our people didn t feel valued Low-trust environment: employees shrinking the game Short-term results not sustainable over the long term Leaders focused purely on results were blind to their impact 12
The vision Build a values-based culture that inspires employees to work together to deliver highperformance results 13
The foundation of our culture Committed Partnerships 10 Cultural Practices 100% Accountability 14
100% accountability is: What can I do to make a difference? How did I contribute to the breakdown? How can I build a better partnership? 15
100% accountability is not: It s their fault. My boss never listens to me! I did my part. They didn t do their part. 16
What do committed partners do? Look for positive intent from others Freely give and receive coaching. Feel safe to speak up responsibly in any situation. Embrace breakdowns or difficult conversations Seek opportunities to work in partnership Regularly acknowledge others for their contributions. 17
Transformation Cultural transformation at a glance Senior leadership (2002-2003) Critical Mass (2004-2005) All Employees (2005-06) Transformational change Address blind spots at identity level Work as one senior team Champion the new culture and way of working together (10 Cultural Practices) Top 20% of organization Transformational learning experiences New behaviours provide model for teams and build momentum my leader is acting differently Training for all employees (Holding to Account) led by internal facilitators Help them understand and embrace the behaviours related to the Cultural Practices Time 18
What we learned along the way 1. Culture starts at the top 2. Link to the business compelling future 3. Use a coach 4. Make the investment 5. Leaders must walk the talk 6. Actively manage the change 7. Reinforce consistently Culture isn t once and done it s a way of being 19
The sustainability challenge Building a winning culture is a journey that never ends 20
Supporting talent management and retention
You face some big challenges in your roles How can a valuesbased culture by design help you address them? 22
An employment brand that balances being different with being consistent. 23
Trust, respect and integrity can be In today s war for talent, creating an employee experience that clearly sets you apart is a competitive advantage Our culture by design is deliberately different. uncommon qualities 24
Consistency is Key Under the top layer of culture, most organizations have dozens or even hundreds of microcultures -Curt Coffman, First Break All the Rules Employees tend to leave their supervisor, not the organization - Curt Coffman, First Break All the Rules What are the implications of this? 25
What s the outcome of all this? A competitive advantage based on the way we treat each other and the way we work together. Employees say good things about the organization, stay over the long term and strive to do their best. 26
The measurable outcome FCC Employee Engagement Scores 2003-2012 27
Engaged employees want to stay at FCC over the long term 82% of our employees agree or strongly agree with this statement: It would take a lot to get me to leave this organization. Voluntary turnover rate at FCC: 5% 28
The ultimate payoff: business results Measure 2002-03 2011-12 Lending portfolio $8.5 billion $23 billion Net income $97.8 million $459.2 million Market share 20% 27% 29
Questions? 30