evanz conference 2013 the link between culture (“fluffy shit” and “warm fuzzies”) and...
TRANSCRIPT
EVANZ Conference 2013
The link between culture (“Fluffy Shit” and “Warm Fuzzies”)
and Productivity and Profit (“the real
stuff”)
Today's outline
Background engagement “the outcome of good culture” and
disengagement
Talk through our change & insights
Leave you with some personal reflection & answer your questions
Would you like these results?
37% improvement in absenteeism25% lower turnover
48% decrease in H&S incidents28% less shrinkage (loss)
10% increase in customer metrics22% improvement in productivity21% improvement in profitability
What engagement isn’t
Fluffy Shit & Warm Fuzzies – I don't think so – its about being good to those that deserve it
and tough on those that need it
If any of your leaders think culture is “fluffy shit” they’re part of the problem and they’re
costing your business
-most people leave their boss not their company-
What engagement is
A measure of whether your team want to give you their “discretionary effort” to help your organisation achieve its goals
The chasm between someone being “Great” versus “Just OK”
A reflection of the culture and how effective the leaders are
Demonstrate a high level of passion, enthusiasm and
energy
Their behaviours help the organisation to be
successful
Take a personal interest in the success of the
organisation
Always looking for a better way
Readily volunteer for new projects
Hold a sense of loyalty towards the organisation
Speak positively about the organisation thereby
strengthening the organisations reputation and
employment brand
Defend the organisation (internally and externally)
What do engaged staff look like?
The organisations detractorsOpenly speak poorly of the organisation and its leadersJust going through the motionsAlways finding the problem not the solution“Sorry – not my job”Quit yet stay
= very undesirable in the workplace (toxic)
Disengaged people look like?
The worst statistic of all...
Research shows more than 60% of the disengaged say
they don’t plan to move on in the next 12 months
Disengaged people are going to stay (if you let them)
What drives engagement?
Having leaders worth following
A sense of fairness and equity
A personal understanding of :1. What’s required (What must I do),2. What's the purpose (Why is it
important to do), and 3. The skills and knowledge to do it
(capable, competent and confident)
Our Culture & Engagement
2007 – our current HR manager was employed
Findings around that time were:• largely disengaged team• no sense of loyalty and high incidents of
dishonesty• lack of sense of pride and purpose• Blame culture• limited training opportunities• high turnover
Culture & Engagement History
2008 - 2011• HR Manager got commitment by management to conduct engagement survey (Best Workplaces Survey) to seek insights• change in style of HR began (from internal police to business and culture development role)• management team having recognised the need for change tasked the HR Manager to solve the issues (however no significant increase in resources or budget)• group profit reduced by approx 50% over 4 years (in part GFC)
Culture & Engagement History2011
• still lacking major traction on culture change
• largely the HR team led change “people issues were the HR teams domain” – lack of ownership
• HR Strategy was right but execution reflected the wider organisation culture (head office led – top down)
• Good ideas still met with cynicism and suspicion by many
• Performance reviews had been conducted but behavioural measures didn't exist
• Culture change across the business was required (“this is not just an HR team issue”)
• Toxic – actively disengaged “Too many in these categories, we’re not dealing with or getting rid of”
• Non-performance management (lack of consequences)• Lack of skill and ability at manager level
“we’ve employed Supervisors, we need Leaders”
• Getting to the 497th person – we don't have a method to reach him/her
• Achievement not rewarded on par or ahead of tenure (annual pay rate increases, 10/15/20 year clubs & no performers club)
• We tolerate / accept dead wood – “Are we waiting for God”
• Silos – especially in business planning and decision making,
“not involving key people in key decisions is impacting on key decisions and engagement/ownership of the issue”
• Appraisal system not working, not measuring key outcomes –
“managers are not doing their job to put pressure on people to perform”
Mission Critical downsides Culture / People (2011 review)
The review’s results and change strategy were shared widely with all staff....
“Thanks for telling us
how shit we are”
Previous Top Down Structure
CEO
Head Office Team(HR, Marketing, IS, Finance & Accounts, Operations Support, Warehouse)
On Premise Operations Manager
Off Premise Operations Manager
On Premise Venue Managers
Off Premise Retail Managers
On Premise Staff Off Premise Staff
Customer Focussed Structure
Lead
ersh
ip e
xpec
ted
acro
ss a
ll le
vels
Commercial Board
CEO
On Premise Operations Manager
Off Premise Operations Manager
On Premise Venue Managers
Off Premise Retail Managers
On Premise Customers Off Premise Customers
On Premise Staff Off Premise Staff
Support Office Team(HR, Marketing, IS, Finance & Accounts, Operations Support,
Warehouse)
WLT TrusteesPLT Trustees
One Key Insight
Head Office became Support Office
“People Support a World They Help Create”
Where did change come from?
“The Agents of Change”
From …………… ToHigh levels of staff disengagement and low levels of engagement
High levels of engagement
Drivers of shift:Values & BehavioursInternal Communication – Facebook etc.Excellence Awards “West’s Best”Leadership Development opportunitiesIncreased staff trainingEffective talent recruitment and management brought in houseRevitalised performance review system with meaningful
measuresAwareness that poor performance will not beToleratedSingle vision / Vision updates / New brandStory-telling – Our West – identity
From …………… ToFocus on the recognition of tenure without equivalent recognition of performancePerception that non-performance accepted / tolerated
High recognition of performers and high levels of achievementNon-performance managed out
‘10/15/20 year club’ dinner disbanded in favour of performance recognition
Excellence Awards (including People’s Choice) Monthly Values awards PRDs and online CSB performance review system Remuneration review = fairness Measured Tier 1 / Tier 3 departures
From …………… ToUnprofitable or declining venues lacking investmentand drive
Property reinvestment planVenues rationalised and modern on-premise profitable (reduction in losses)
Total hospitality loss reduction programme “losses are no longer acceptable” Suburban bar model – ability to experiment and try new models Hard decisions made = Closure of some venues as part of strategy – without losing
engagement or confidence by sharing facts and figures The real financial story was told to all staff (profit, margins etc in simple terms and
diagrams)
What Did This Achieve?
Where’s the R.O.I?
“Nice” Awards
Most Improved Large Workplace
Engagement rose almost 7% - the largest jump they’d seen since the survey began
Dale Carnegie International Leadership Award
Positive Outcomes
• EBIT (pre-tax profit) = 350% of what it was in 2011 • EBITDA (profit less depreciation) more than 200% of
pre strategy figures• Free cash flow is 15x what it was in 2011• Staff turnover was almost 50% ; last month = 17%• Productivity - results are being achieved with 25%
less staff• 70% change in store managers, 75% change in
hospitality managers, 30% change in executive team• Some trophies in the cabinet – external
endorsements are important for our brand as an employer of choice
Our Key Drivers Single vision / New strategy and new brand = “all
noses pointing in the same direction” Our West & “giving back” = identity/pride
Values & Behaviours were developed by them, adopted by us, then measured, discussed and celebrated (monthly awards)
Internal Communication – Values nominations, Facebook page, Vision updates, birthday cards, thank you & well done cards.
dropped the tenure awards dinner and 10/15/20 year clubs in favour of the Excellence Awards Dinner “West’s Best”,
Leadership Development opportunities and training for all in leadership roles (including 360 behavioural assessment)
Effective talent recruitment & management brought in house
Performance review system with meaningful measures – 50% weighted on “how you do the job”
What we learnt along the way...
Be relentless about your purpose and your message of change
Over communicate x10 Motivation = Communication
Seek solutions from others (your job is get the good ideas
flowing)
Self Reflection
Am I a leader worth following?
Are those that lead in your organisation people you’d like
to follow?
If I was you from today...Be aware many will not tell the boss directly
what they really think but commit to finding out
Get out if you’re not up to leading change – only do it if you can commit to doing it well – assess those around you
Have the courage to seek out underlying issues & then initiate change and empower them
Set aside the noise of the detractors and the dark side
Believe that “culture is critical” and make sure others know
“Culture without strategy is aimless, however
Strategy without culture is powerless”
- Robert Burgelmann