welcome to the denison certification workshop building and sustaining high performing organizations...

Welcome to the

Denison Certification Workshop

Building and Sustaining High Performing

Organizations and Leaders

Workshop Agenda

October 15, 2014NETWORKING BREAKFAST

Welcome and Introductions

Culture & leadership: A driver of performance Why culture Path to High Performance

The Denison Model and the culture - performance Link

Applying the Model & Process Assessment process Leading the culture conversation

Business case studies Mergers & Acquisitions Due diligence Transformation

Breaks and Lunch Provided

GROUP DINNER AT THE EARLE RESTAURANT

October 16, 2014NETWORKING BREAKFAST

Highlights and re-cap of Day 1

Linking Culture & Leadership

Application

Business Case Studies

Additional leadership diagnostic tools

Additional Information

Breaks and Lunch Provided

Conclusion

Culture & Leadership:A Driver of Performance

“The bottom line for leaders is if they do not become conscious of the cultures in which they are embedded, those cultures will manage them. Cultural understanding is desirable for all of us, but it is essential to leaders if they are to lead.”

Edgar Schein, Ph.D., Former Professor at MIT and recognized

authority in the field of Organizational Culture and Leadership

Mindset is the Foundation

Norms, Behaviorsand Artifacts. Visible, tangible.

Personal Valuesand Attitudes.Less visible, but can be talked about.

Cultural Values and Assumptions.Usually not visible at all, often held subconsciously, rarely (if ever) questioned in everyday life.

Image by R.A. Clevenger

Culture Reflects the Lessons Learned Over Time

Image by R.A. Clevenger

Lessons SurvivalCulture

Underlying Principles

Visible Symbols

Rituals, Habits, & Routines

We must make automatic and

habitual ... as many useful actions as

we can.

The more of the details of our daily

life we can hand over to the effortless

custody of automation, the more our

higher powers of mind will be set free

for their proper work.

William James

Hold Your Horses!

Morrison’s essay opens with a story of a young time & motion

expert trying to find a way to speed up artillery crews during

WWI, just after the fall of France. He watched one of the five-

man gun crews practicing in the field with their guns mounted on

trailers, towed behind their trucks. Puzzled by certain aspects of

their procedures, he took some slow-motion pictures of the

soldiers performing the loading, aiming, and firing routines.

When he ran these pictures over once or twice, he noticed

something that appeared odd to him. A moment before the

firing, two members of the gun crew ceased all activity and

came to attention for a three-second interval extending

throughout the discharge of the gun.

Since this seemed like quite a waste of time, and the young time

& motion expert really couldn’t make any sense of it, he asked

an old artillery colonel to look at the films to see if he could

explain this strange behavior.

The colonel, too, was puzzled. He asked to see the pictures

again. "Ah," he said when the performance was over, "I have it.

They are holding the horses.”

Elting Morrison, Gunfire at Sea

Paul O’Neill at Alcoa:Identifying Keystone Habits

It got so bad they would bring dummies to the parking lots, dress them like managers, and burn them in effigy. “Alcoa was not a happy family. It was like the Charles Manson family, but with the addition of molten metal.”

O’Neill picked safety as one thing that unions and executives could agree on. Zero injuries. Injuries must be reported to the CEO within 24 hours.

“We killed this man. It’s my failure of leadership. I caused his death. And it is the failure of all of you in the chain of command.”

Once you see everything as a bunch of habits, it’s like someone gave you a flashlight and a crowbar and you can get to work.

Changing CultureBy Changing Rituals, Habits & Routines

Preserve&

Strengthen

Invent&

Perfect

Unlearn&

Leave Behind

Rethink&

Try Again

Good

Bad

Old New

Path to High Performance

Path to High

Performance

SustainableImprovement

Honest Conversation

“Why is culture important to the performance of your organization?”

Executive team alignment, commitment, and sponsorship

“How can we ensure effective and sustainable culture development?”

Detailed project and communication plans;

Role clarification

“What is your current state?”Data collection for a robust

understanding of the current state

“What is the impact?”Disciplined and intentional

culture development; progress towards higher performance

“How do we translate results into thoughtful actions?

Detailed action plans and priorities at different levels

“What is data telling us?”Integration and synthesis of

different sources of data

“How do we create common understanding?

Common understanding across the organization and clear priorities

A Model of High Performance

What Counts…

Building human capability, ownership, and responsibility

“Are our people aligned and engaged?”

Adaptability Pattern, Trends, & Market

MissionDirection, Purpose,

& Blueprint

Defining a meaningful long-term direction

for the Company

“Do we know where we are going?”

Translating the demands of the business environment into action

“Are we listeningto the marketplace?”

InvolvementCommitment, Ownership, & Responsibility

ConsistencySystems,

Structures, & Processes

Defining the values& systems that are the

basis of a strong culture

“Does our system create leverage?”

MISSION

Creating Shared Vision: creating a clear and compelling vision of a future state

Defining Strategic Direction & Intent: understanding, developing and executing strategy

Defining Goals & Objectives: setting clear goals and tracking progress against those goals

CONSISTENCY

Managing Coordination & Integration:building effective working relationships with a range of colleagues & stakeholders across the organization

Working to Reach Agreement:engaging in effective problem solving and decision making

Defining Core Values: aligning the behavior of self and others in accordance with the Core Values

INVOLVEMENT

Developing Organizational Capability:developing employees to meet current and future organizational needs

Building Team Orientation:developing successful, effective teams

Empowering People:sharing information and communicating so that employees have the information they need to make informed decisions – the ability to make a difference

ADAPTABILITY

Creating Change:encouraging change and continuous improvement

Emphasizing Customer Focus:understanding customer needs - developing responsive, effective working relationships with customers

Promoting Organizational Learning:seeing continuous learning and innovation as critical to adapting and leading in a dynamic environment

Effective leaders and organizations are Externally AND Internally focused

Effective leaders and organizations focus on Flexibility AND Stability

Dynamic Tensions

Dynamic Tensions

Effective leaders and organizations balance

‘External Adaptation’ AND ‘Internal Integration’

Effective leaders and organizations offer

strong leadership AND involve their employees

Beliefs and Assumptions:The ‘GREY’ Area in the Middle of the Model

At the heart of every culture are a set of beliefs and assumptions – about the organization and its people; the leaders; the customers; competitors; the sector; etc.

Resolving cultural issues and making progress in the development of a high-performance culture often requires a thoughtful exploration of the underlying beliefs and assumptions.

Beliefs and Assumptions

The Culture – Performance Link

Culture and Business Performance

· Innovation· Customer

Satisfaction

· Growth

· StablePerformance

Over Time· Profitability

ROI, ROS, ROE

· Operating Performance· Quality· Employee Satisfaction

Impact on Performance

Top 25%Bottom 25%

Return-on-Assets

Sales Growth

Market-to-Book Ratio

2.3%

1.4%

2.6

3.2%

23.1%

4

The higher the culture scores, the greater profitability, sales growth, & market value (based on a study of 130 firms; 2000-2010)

Comparison of EBITDA and Sales Growth for the Top vs. Bottom Half of Private Equity Portfolio Companies by Culture Scores

Avg. EBITDA Growth

Avg. Sales Growth

2%

-3%

10%

5%24

Another Example

Culture Causes Performance

1 Year

2 Years

In summary, culture comes first and serves as a driver

of subsequent performance levels.

When Is High Consistency Bad?

When Involvement is low, high Consistency will likely lower an organization’s performance.

The Denison Global Benchmark

1000+ organizations in the normative database

Robust industry representation

Benchmarks are stable across years (2000-2012)

International representation 50%+ of the respondents from outside the U.S. within the last

5 yrs 1/3 of headquarters outside of U.S.

The most stable, representative comparison group

Different Industries and different countries, on average, have very similar results to the global benchmark

Composites are available for many different industries, regions and countries

Why We Use Percentiles

3.94

3.78

3.59

3.46

3.21

3.04

2.81

Most employees are highly involved in their work

There is an ethical code that guides our behaviour and tells us right from wrong

Customer input directly influences our decisions

People work like they are part of a team

There is good alignment of goals across levels

Our vision creates excitement and motivation for our employees

It is easy to coordinate across different partsof the organization

86%

82%

86%

64%

57%

41%

40%

Survey Item Mean % Favorable Score (4s & 5s)

Applying the Model & Process

The100 Year Old Manufacturing Company

100 Year Old Mfg. Company

Key Phases of Assessment Data Collection

Den

ison

S

up

port

Participation Monitoring

PROJECT PHASES

COMMUNICATION Internal

Support & Alignment

Creating Awareness

Invitations & Participation

Information Roll-Out

Report Delivery

Project Specifications

Client Needs

Purpose

Technical Support

Personalization

Demographics & Reports

Reporting Strategy

Project Planning

Set-Up & Design

Administration

Reporting

Survey Development

Den

ison

S

up

port

Report Delivery

PROJECT PHASES


Support & Alignment

Creating Awareness



Change Monitor / Re-Survey

Project Specs

Client Needs

Purpose

Personalization

Tech & Business Support

Data Interpretation


Survey Items


Action Planning &

Implementation

Project Planning

Set-Up & Design

Administration

Reporting

Survey Development

• Context & Goals• How we help you achieve your goals?

• Open dialogue about entire process • Previous survey experience – good or

bad?• Support based on your specific needs

•Survey Population & Timelines

Den

ison

S

up

port

Report Delivery

PROJECT PHASES


Support & Alignment

Creating Awareness



Change Monitor / Re-Survey

Project Specs

Client Needs

Purpose


Data Interpretation


Personalization


Action Planning &

Implementation

Project Planning

Set-Up & Design

Administration

Reporting

Survey Development

• Survey Link Personalization

• Demographic & Custom Questions

•Survey Development• Final review and approval

of survey link

Denison Survey: Content Modules

Engagement

Commitment

Innovation

Trust

Short instruments that may be added to the DOCS

Brief (5-6 items), reliable, and valid measures

Benchmarked against a database of organizations

Data reported in percentiles

Strengthens the value of information from the DOCS

Safety and Risk

management

NEW modules currently being piloted Better integration of “safety work” with

business performance

DOCS–Modules Link: Overview

Overlap

The DOCS provides some information about the topics

covered in the content modules

The DOCS Assesses a high

performance business culture

Identifies cultural strengths/weaknesses as they apply to organizational performance

Results are presented using the DOCS benchmark database

Content Modules

Supplement information provided by the DOCS with more targeted questions

Potential outcomes to a positive organizational culture

Results are presented using each module benchmark database

Den

ison

S

up

port


PROJECT PHASES


Support & Alignment

Creating Awareness



Reporting Delivery

Project Specs

Client Needs

Purpose

Personalization

Technical Support

Survey Items


Reporting Strategy

Project Planning

Set-Up & Design

Administration

Reporting

Survey Development

•Participation monitoring• Real-time updates• Targeted reminders• Overall response rate

• Technical support

Den

ison

S

up

port

Report Delivery

PROJECT PHASES


Support & Alignment

Creating Awareness



Reporting Delivery

Project Specs

Client Needs

Purpose

Personalization



Survey Items


Reporting Strategy

Project Planning

Set-Up & Design

Administration

Reporting

Survey Development

•Who, what, where, when, etc…

• Priority level reporting

• Report delivery options

• Another opportunity to re-emphasize the purpose

Den

ison

S

up

port

Report Delivery

PROJECT PHASES


Support & Alignment

Creating Awareness



Reporting Delivery

Project Specs

Client Needs

Purpose

Personalization



Survey Items


Reporting Strategy

Project Planning

Set-Up & Design

Administration

Reporting

Survey Development

•Support with communications throughout the process• Sample communications/plans• Example of best practices

Culture is a reflection of the collective

Culture data should do 3 things:

1. Drive honest conversations among the collective about ‘the way we do things around here’ that…

2. Lead to thoughtful actions and…

3. Results in higher performance

Average levels of performance

Mix of clarity & confusion

Lower levels of performance

Confusion & uncertainty

reigns

Higher levels of performance

High level of clarity & alignment

External and Internal Forces that have the ‘potential’ to create more

uncertainty and ambiguity

Leadership changes

Competition

Regulatory changes

Global & Local Economy

New technologies

Restructuring

Changes in Strategy/Focus

Changes in political environment

M&A

Leadership

“Culture and leadership, when one examines them closely, are two sides of the

same coin and neither can really be understood by itself.”

5 Reasons to Develop the HABITof Leadership Development

1. To help an organization meet today’s business challenges – as well as the challenges of the future

2. To develop leaders who are capable of maximizing the performance of their employees

3. To demonstrate an organization’s commitment to high-performance and continuous improvement

4. To create an environment in which open communication and feedback is encouraged and employee empowerment is valued

5. To foster consistent leadership values, practices and behaviors throughout an organization

A Keystone Habit: 360 feedback as part of a Leadership Development

Strategy Who is the target of the development process?

Sr. Leadership Middle Managers Front-line management

Who will have access to the data? Leader only Leader and his/her Boss HR Others

A Keystone Habit: 360 feedback as part of a Leadership Development

Strategy How will the feedback be used?

Developmental purposes only Team development Performance appraisal (Not recommended)

How will development plans be created and executed? Expectations for the creation of a Development Plan Follow-up coaching support (from whom) Organizational resources available

Is there a communication plan in place? Purpose & goals Data collection details including timelines Confidentiality expectations Development plan development and implementation

The Denison 360

The Leadership Global Benchmark

13,959 leaders included in the normative database

Representing over 900 companies and rated by over 206,000 bosses, peers, and direct reports

Wide variety of industries, job function, management level, and tenure represented

Benchmarks are stable across years

1 2 3 4 5 6 7

Strongly Disagre

e

Strongly Agree

360 Benchmarks

Rarely Used

1 2 3 4 5 6 7

Strongly Disagre

e

Strongly Agree

360 Benchmarks

Scores in this area lead to Low percentile rankings when compared to the database of leaders.

Mean scores in the 5.5 to 5.8 range will place a leader around the 50th percentile on most indices.

360 Benchmarks

“But my people rated me about average!”

1 2 3 4 5 6 7

Strongly Disagre

e

Strongly Agree

Effective Leader

A recently hired president in the retail industry

Known for ability to increase sales, quality, and profits

Creative risk taker - pushes the envelope

Drives intense customer focus throughout organization

Viewed as having chairman of the board potential

Continuously sought out for high profile CEO positions

Self Combined Other

Less Effective Leader

A recently dismissed President in the retail industry

Tenure resulted in several years of declining sales and market share

Over-control a key problem

Failure to provide long term sense of direction led to lack of identity in the marketplace

Short term focus resulted in failure to meet changing customer requirements

Self Combined Other

High Potential Executive

Being groomed for CEO of major corporation

Always develops her direct reports who are constantly promoted

Known as extremely demanding and accepts nothing but top performance

No nonsense leader respected and admired by employees

THE organizational role model for high performance

Self Combined Other

Large Perception Gap

Manages by fear and intimidation

Always blames others for mistakes

Solid technical skills, but lacks basic management skills

High level of turnover in division

No awareness of negative impact on productivity of employees

Self Combined Other

Application

Additional Leadership Diagnostics

OnDemand Leadership Development 360

OnDemand Leadership Development 360

The DLDS on demand!

Easily measure leadership effectiveness leveraging our online system

Leaders themselves1. Define and invite raters to participate2. Take the self survey3. Monitor4. Order report set

Culture SnapshotSo New Leaders Get The Whole Picture

Developed in partnership with Leader OnBoarding

Culture Snapshot

Purposeful, powerful diagnostic intervention for a New Leader

Administered to a select group of raters early in a New Leader’s tenure (2 weeks – 2 months)

A subset of the standard Denison Organizational Culture Survey (36 items plus 2 verbatims)

Helps a New Leader understand the culture of the new operation, that they will be leading

Engages key stakeholders to the New Leader’s operation in the assessment process

Culture Snapshot

Individual-level Increased probability of New Leader success Faster integration and performance Improved retention Increased employee satisfaction

Operational-level Reduced onboarding cost Higher probability of operational performance and New

Leader success Engages key stakeholders in the effort to increase

operational effectiveness

Culture Snapshot Sample Report

The Denison LeadershipPotential Report (DLPR)

Developed in partnership with Hogan Assessments

The Leadership Potential ReportThe Leadership Potential Report

The Leadership Potential Report

Scoring Key


Multidimensional approach to leadership development

Combine personality and value traits with predicted potential leadership competencies

Individualized developmental recommendations Selection Development


Based on Hogan’s three main assessments: Hogan Personality Inventory (HPI) Hogan Development Survey (HDS) Hogan Motives, Values and Preferences Inventory (MVPI)

30-45 minutes completion time

Hogan scores are mapped to Denison’s Leadership Development competencies

Reports generated through Hogan’s online platform

Additional Information

25 person Denison Organizational

Culture Survey Pilot

1 Person Leadership Development Survey

OR

Your pilot package includes the full survey of your choice, full report generation, and basic interpretation and

feedback on results from a Senior Denison Consultant.

Your Denison Pilot Package

Denison Organizational CultureSolutions Pricing

Denison Organizational Culture Solutions Package Project Options: Change Monitor survey Modules Available in 45 Languages

Download the complete OCS Pricing Sheet from the workshop portal.

Denison Organizational CultureSolutions Pricing

Denison Leadership Development Solutions Pricing

Leadership Development 360 Package: Includes Change Monitor Survey and Reports Available in 16 Languages

Download the complete LDS Pricing Sheet from the workshop portal.

OnDemand Leadership Development 360: $195

Denison Leadership Development Solutions Pricing

Leader Onboarding Culture Snapshot $1,500 Up to 35 Raters Full report package

Denison Leadership Potential Report (DLPR) $295/report Based on three Hogan personality assessments HPI, HDS and MVPI

Solutions Essentials

Learning the Basics

Understanding Denison’s Solutions

Selling the Solutions

Sample Proposals

Preparing for the Survey

Interpreting the Results

Linking to Denison

And more……………..

Certificate of Participation

Those who complete the Workshop will be issued a certificate of participation in PPT and PDF formats, and an efile logo that can be posted to a website, email signature file, or any other online outlet you choose.

Trademark policies are in place and are expected to be honored when displaying your certificate of participation.

CONNECT with like-minded peers, Denison leadership, experienced practitioners, and acclaimed thought leaders.

LEARN from the challenges, insights and actions of leading organizations.

PARTICIPATE in thought-provoking dialogue.

BUILD your professional community and learning network.

EXPLORE different perspectives to your business challenges.

RSVP at www.denisonconsulting.com/

forum

For more than 10 years, Denison Consulting's Best Practices Forum has been the premier event for business leaders who seek to leverage culture and leadership as a source of competitive advantage. This annual gathering is a unique opportunity for like-minded executives to connect and collaborate with renowned thought leaders and Denison clients from industries across the globe.

Join us at the 2015 Denison Best Practices Forum to gain insights into:How your organization's culture drives key performance metrics such as ROE. ROA, Profitability, Market Share. and customer and employee satisfactionHow managing your company's culture makes or breaks your sales growth strategyWhy culture matters to key HR functions such as talent management, retention, onboarding, development, and performance measurement

Thought Leadership

Our Thought Leadership practice creates solutions to clients’ most challenging and complex questions… How do you build a culture that supports both safety and

profitability? How do you design a physical workplace to promote a

strong culture? How do you create a culture of virtue across a global

organization?

Works dynamically with organizations to address a range of potential activities, from problem definition to client advice and guidance to designing and implementing tangible culture and leadership solutions

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