innovation (2)

© 2007 Inside Results, LLC

Chris Scaffidi (319) 265-0657 [email protected]

Creating a Culture of Innovation.


Who Is The Pacific Institute?

• Founded By Lou & Diane Tice in 1971

• 50 countries and 15 languages.

• Resource for over 50% of Fortune 500 companies,

• The governments of Guatemala, South Africa, Northern Ireland & Ghana

• Endorsed by the American and Canadian Psychological Associations.


Who Is Inside Results?

Inside Results is a business partner and implementation team within The Pacific Institute

• Team is comprised of:• Former executives • Organizational Development Specialist• Experts from

• Education• Private Business • Social Service.


Implementation

Dr. Albert Bandura is the head of the Psychology Department and an endowed Professor of Psychology at Sanford University, as well as a noted author.

Self-Efficacy Optimism

Martin P. Seligman PhD., 1998 President of the American Psychological Association and the author of twelve books.

“I know of only two ways to refute pessimism, either by refuting negative thought or by applying the (TPI) curriculum.”

“Individual and organizational goal-setting is at the very heart of accomplishment.”Dr. Latham is the President of the Canadian Psychological Association and a Fellow of the American Psychological Society.

Goal Setting

“All meaningful and lasting change begins on the inside and works its way out.”

Dr. Glenn Terrell., Former President of Washington State University and Present curriculum coordinator for The Pacific Institute

39 Years of

Translating Cognitive

Based Research


Private Sector• ATT• GTE• VERIZON.• Caterpillar• Boeing• NFL• Toyota • Oracle• NordstromGovernment• US Defense Intelligence

Agency• Government of South

Africa• Nebraska Dept. of Labor• Texas Dept. of Human

Services

Education

• LA County Unified School district

• 60 % of UK Schools • Over 300 Career School

Clients in the US Social Service• National Office of Job

Corps• Head Start • Connecticut Dept. of

Children and Families• LA Project• Santa Ana Work Center• Massachusetts Dept of

Social Services

Sample Clients


Part IInnovation

Mindset Matters


Actual

Realized

Habits

Attitudes

Beliefs

Expectations

Human Potential

The greatest good that you could do for another is not just to share your riches, but to reveal to him his own.

Benjamin Disraeli


Scotoma

FINISHED FILES ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY COMBINED WITH THE EXPERIENCE OF MANY YEARS OF EXPERTS


“We act in accordance with the truth about

ourselves as we believe it to be.” -Beliefs:• Create scotomas• Impact Communication • Suppress or Release drive and energy needed to find

INNOVATIVE solutions• Can cause “Lock-on’s” /Resistance to Change (e.g.)• Control aspirations (INNOVATION)

• “We don’t let ourselves want that which we believe we can’t cause.” Dr. Albert Bandura

• What are our beliefs about what we can accomplish in our organization?• What are our beliefs about what we can accomplish in our community?

Beliefs


Locus of Control and Innovation


PLAN A


“Were going home boys.”

PLAN B


We’re going to find a way to get home boys…lets consider our options.


PLAN C


PLAN D

“Patience Camp”: Surviving with dwindling resources.


PLAN E


PLAN F


Externals:

• Stuck in Ice

• 24hrs of darkness

• Boat sinks

• No Radio/Cell Phone

• Blizzards

• 60 below

• Lacking food supplies

• 750 mile boat ride

• Crossing a glacier

Common Vision

Internal Locus of control-belief that it was in their power to find a solution

Control Self-TalkParticularly Shakleton


Break Out Session

• What are the external challenges that have impacted our community and our organizations?

• How have we given up accountability and allowed the externals to dictate our success?

• How can we be Shackletons to at work and in our community?


Mindset Really Does Matter

• Personal

• Education

• Business

• Community

“The gains made as a result of the changes in culture and work behavior were staggering. We

never imagined that it was possible to have such dramatic improvements.”

Russ Meyers COO, Yakima Valley Memorial Hospital


Part IIInnovation

Culture Matters• …………….


• A set of beliefs or assumptions (conscious and unconscious) which dictate how dictate how an organization should behave and operate

• “This is the way we do things around here.”

What is Culture?


Culture and PerformanceKotter & Heskett: Study of 207 firms over an eleven year period

as reported in their book Corporate Culture and Performance

UnadaptiveCulture

166%

Revenue

74%

Stock Prices

1%

Net Income


Culture and PerformanceKotter & Heskett: Study of 207 firms over an eleven year period

as reported in their book Corporate Culture and Performance

UnadaptiveCulture

AdaptiveCulture

682%

166%

Revenue

901%

74%

Stock Prices

756%

1%

Net Income


• Defensive Cultures - Reactive / Inactive• Creates overhead * Maintains the status quo• Disengaged Workforce * Inhibits communication

and collaboration *Maintains Inefficiencies

• Constructive Cultures – Proactive-Innovative• Fosters innovation *Engaged Workforce • Staff Internalize and Aspire to reach

organizational Objectives. *Reinforces personal responsibility and accountability

• Do more with less

Our starting premise: Culture Matters


Multi National Oil and GasPurchasing and Logistics

Copyright © 1998 Human Synergistics International. All Rights Reserved.

$250 M reduction in costs – over 3 times the reduction goal

20032001


Heavy Equipment Manufacturer

Copyright © 1998 Human Synergistics International. All Rights Reserved.

40% Improvement in ROA 230% increase is Net Profit on 3% increase in Sales

20042003


Community Impact: Los Angeles

• Foundation of the Better LA program under Pete Carroll and Sheriff Lee Boca

• Integrated information sharing across agencies

• HHS, LAPD, Mayors Office, LA County Sheriff, Business Community and Education Leaders

.


Community Impact

•

.


Community Impact

Decatur Illinois Project (Initiated by Caterpillar)

• Company Expansions

• Infrastructure improvement

• Workforce Increases

• New Retailers

• City Beautification project(1 million flowers to reflect internal changes

• Collaboration v.s competition between communities

• Ranked in Inc Magazine as one of the best places to do business.

.


Part IIIInnovation

Assessment Matters


Assessment: Lifting up anchors which drag us down.


Break Out Session

• What have we allowed ourselves to get used to?

• What do we want to get used to


Part IV

Retention Matters


Depressing, but important Statistics

• We forget 66% of what we learn after 24hrs

• After 30 only retain 10%


Liberating Statistics

• Repetition is the mother of learning

• Average person needs to hear/repeat something 8x’s before it is assimilated


PerformancePlan or Systems

BehaviorIndividualThinking

“ “How can we perform under these circumstances? .” “This new system will never work.”

“I’m not smart.” “ I’m not cut out for this type of work/training/ status.”

Culture

Building a Foundation for Change


ISSUES:

• Paper Plant Shut Down

• Overly dependant on a few businesses

• Loosing their youth

• Success = leaving the community

• Small towns and communities competing for resources

• Physical environment was substandard

Effingham Success Story


Effingham Success Story

Outcomes• Acting and thinking like one County• Acquiring new business and growing established

• Midlands States Bank• Siemer Milling• Patterson Technology• Kohl’s Department Store

• Town Beatification Project• County wide Bike Path (joining communities together)• Quarterly Breakfast sustaining unity across county• Business has partnered with education to keep the youth

• CEO Program (Business Ed, Developing a Bus. Plan and providing angle investors to draw kids back into the community)

• Artisan Fairs drawing vendors from out of state• Trained 6000 people in our innovative thinking program (Educators,

Students, Large and Small Businesses, Community Service Agencies


Our Next Steps

1. Strategic Assessment Part I (week of Jan 24th)• Personal Application

• Understand and control habits of thought which block performance

• Build Community with participants• Begin the Vision Building Process

2. 1-Day Vision Building Session (February)3. Execution of the Vision4. ?????


Chris Scaffidi (319)265-0265 [email protected]


Cultural Alignment ResultsYakima Valley Memorial Hospital

Gains• 90% decrease in serious Patient safety incidents• Surgical Operations improved room utilization by 70%• Patient Satisfaction Scores improved by 38%• 300% reduction in Patients leaving before being seen

“The gains made as a result of the changes in culture and work behavior were staggering. We never imagined

that it was possible to have such dramatic improvements.”

Russ Meyers COO


Cultural Alignment ResultsCaterpillar Logistics

BEFORE• Poor employee morale• Mistrust between management &

union• High absentee & attrition• Corporate requirement to slash costs

and dramatically increase productivity

AFTER• Productivity jump 21% from 2%• Layoffs because of productivity• Mgt-union relations improve • Absenteeism & attrition down

This process "Unleashes energy and creativity from

within the organization and management facilitates and supports the employees."

Ernest Skipper, Division Head, Peoria


Cultural Alignment ResultsModern Terminals, Hong Kong

BEFORE• Industry leader for 25 years• 1997 hit a rapid downward spiral• Layoff 30% of management and 21% of

staff, and restructured the company• Confusion• Mistrust• Market share plummeting• 2000 Management concludes that the

company could not survive with its current culture

AFTER• Turnaround sustained• 5 Years ahead of goals• Increased Market Share 8.7%• Decreased Fixed Costs by 62%• Increased Dividends by 120%.

“TPI's Investment in Excellence program is excellent for… personal and organizational development. It is the king of tools that delivered the cultural shift that made

the strategy possible” John Lee, Director of Operations


Cultural Alignment ResultsMillstone Nuclear Station

BEFORE• 1996 forced shutdown• 100 days of unscheduled closings• Lost $1 billion in value• Poor business environment -- extensive

competition, record low consumer prices, and only one third of the station

functional.

AFTER• Net Earnings $86 million (exceeding

goal by $50 million)• Production Costs reduced• Accident Rate below 66% of goal• In less than 5 years sold 5x projected

market $• New owners train 10,000 Employees

"All the regulatory pundits, and even my own board, were concerned that we were taking on too much change

and that it might be considered reckless to try to make the changes we did. But we did it."

Lee Oliver, Chief Nuclear Officer


Cultural Alignment ResultsMark Christopher Auto

BEFORE• Very successful• Wanted: double and triple volume

and profits• Plus have a better working

environment and better employees

AFTER• Tripled income• Grew from #11 dealer in California

to # 1 in California• From #36 in the US to # 5.

“We substituted what were ineffective training programs, that were taking up my people's time, and put in a productive training program from The Pacific

Institute" Mark Leggio, President and CEO


Cultural Alignment ResultsCanada Life

BEFORE• Dominating culture• Planned acquisition• Mistrust between departments• Significant differences in culture• High Anxiety levels among staff --

30% to lose their jobs.

AFTER• Integration costs $10-12 million below

budget• Retention & acquisition of clients above

plan• Retention valued EEs above plan• Attrition down from 25-30% to 6%

TPI enables "management to develop leadership skills, employees get pragmatic goal-setting techniques, and can see themselves

successfully through change toward the vision" Gregory McNicholas, VP of Actuarial Services


The Power of Negativity

• Some estimates suggest 96% of all of our thoughts are negative• Worry, remorse, fear, criticism

• 90% of all ailments are emotionally induced • it takes 11 positive people to overcome one

negative


The Power of Negativity

• The Unconscious Saboteur• Impact on Colleagues-M.L&MTC

• Impact on Clients/students-Stpls

• Organizational performance


• “Cultural transformation without understanding both the vision and the present culture it is a blind exercise.”

…E. Schien

Why We Must Take Culture Assessment Seriously


Assessment: Lifting up anchors which drag us down.


Limiting Statement (Belief)

Belief: “I am terrible at Math”• End Result (Impact on motivation, Drive, ability to

seek innovative solutions, final outcome)• No aspirations to succeed• Low energy/Motivation• Blinded to solutions (scotomas)• May not go to for extra help • Will not learn and perform to his or her potential• Will draw false conclusions about his or her abilities• May end up with the wrong crowd • May participate in destructive activities


Liberating Belief

• Belief: “I am smart and can learn almost any subject, including Math.”• End Result

• increase aspirations towards success• increased energy/Motivation• Will find solutions• Will seek out help and learn math • Increased self-confidence• Increased success in Math and other subjects • Attend college• Find a good job• Help to create a better society


Leadership and Constructive Cultures

Everyone must assume 100% accountability

But…

The actions of leadership have the greatest impact on an organizational culture.


Transformational Leadership

• Transformational Leaders unleash the potential of their staff

• Transformational Leaders maintain a strong, internal Locus of Control…and they help their staff do the same.

• Transformational Leaders maintain Constructive Organizational Cultures.


GOAL:Sustain High Performance Reality

Inside Results Cultural Growth Process

Step 1

Step 2

Step 3

Step 4

AssessCulture

Align Leadership

UpdateCulture-Impacting Systems

DiagnosticsOrganizational Cultural Inventory

Investment in ExcellenceVision & Values AlignmentLeader as FacilitatorLeadership ImpactValues Based LeadershipJourney to Excellence

Investment in ExcellenceCultural Consensus BuildingConstructive Culture Workshops

Communication planEmployee Lifecycle Systems


EngageOrganization

innovation (2)

Education

inside results

plan c

plan e

plan f

culture of innovation

plan b

pacific institute team

set of beliefs