PowerPoint Presentation

Welcome To TheDenison Consulting Certification WorkshopAll content and images Copyright 2012 Denison Consulting, LLC. All Rights Reserved.Your FacilitatorsLindsey KotrbaPresidentlkotrba@denisonculture.comNabil SousouVP Global Sales, Denison Consultingnsousou@denisonculture.comBryan AdkinsCEObadkins@denisonculture.comDave CrociDirector of Client Managementdcroci@denisonculture.comLevi NieminenDirector of Research & Development lnieminen@denisonculture.com

Karl-Heinz OehlerManaging Director, Denison Consulting Europekhoehler@denisonculture.comAll content and images Copyright 2012 Denison Consulting, LLC. All Rights Reserved.Workshop AgendaWednesday, June 4NETWORKING BREAKFAST

Welcome and Introductions

Building High Performance CulturesWhat Is Culture? Understanding Habits & RoutinesThe Denison ModelManaging Dynamic TensionsHow Culture Links to Business Performance

LUNCH

ApplicationSetting the Stage for CultureSolutions Scenarios Business Case StudiesGROUP DINNER AT THE EARLE RESTAURANT

Thursday, June 5NETWORKING BREAKFAST

Highlights and re-cap of Day 1Developing LeadersLinking Culture & LeadershipThe Denison Leadership Development 360Leadership Case Studies

LUNCH

ApplicationKey Phases of Data Collection & AnalysisAdditional ToolsDenison Product PricingSupport ServicesYour pilot project

SESSION ENDS

All content and images Copyright 2012 Denison Consulting, LLC. All Rights Reserved.

Building High Performance Business CulturesAll content and images Copyright 2012 Denison Consulting, LLC. All Rights Reserved.4Mindset 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. ClevengerCovered in pre-work video0Culture Reflects the Lessons Learned Over Time

Image by R.A. ClevengerLessonsSurvivalCultureUnderlying PrinciplesVisible SymbolsCovered in pre-work videoHSBC ADVERTISEMENT

Rituals, Habits, & RoutinesWe 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

Morrisons 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 couldnt 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 SeaHold Your Horses!Paul ONeill 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.ONeill 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. Its 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, its like someone gave you a flashlight and a crowbar and you can get to work. Preserve&StrengthenInvent&PerfectUnlearn&Leave BehindRethink&Try AgainGood

BadOld New

Changing CultureBy Changing Rituals, Habits & RoutinesSo how do you change a culture?

Denison Consulting: Culture Change ProcessThe Denison Model

What CountsBuilding human capability, ownership, and responsibility

Are our people aligned and engaged?Adaptability Pattern, Trends, & MarketMissionDirection, Purpose, & BlueprintDefining 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?

MISSIONCreating Shared Vision: creating a clear and compelling vision of a future stateDefining Strategic Direction & Intent: understanding, developing and executing strategyDefining Goals & Objectives: setting clear goals and tracking progress against those goals16INVOLVEMENT

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 difference17ADAPTABILITY

Creating Change:encouraging change and continuous improvementEmphasizing Customer Focus:understanding customer needs - developing responsive, effective working relationships with customersPromoting Organizational Learning:seeing continuous learning and innovation as critical to adapting and leading in a dynamic environment 18CONSISTENCY

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 makingDefining Core Values: aligning the behavior of self and others in accordance with the Core Values19

Beliefs and Assumptions:The GREY Area in the Middle of the ModelAt 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 AssumptionsAll content and images Copyright 2012 Denison Consulting, LLC. All Rights Reserved.Effective leaders and organizations are Externally AND Internally focused

Effective leaders and organizations focus on Flexibility AND StabilityDynamic TensionsAll content and images Copyright 2012 Denison Consulting, LLC. All Rights Reserved.Dynamic TensionsEffective leaders and organizations balance External Adaptation AND Internal Integration

Effective leaders and organizations offer strong leadership AND involve their employeesAll content and images Copyright 2012 Denison Consulting, LLC. All Rights Reserved.A Culture Profile:The100 Year Old Manufacturing Company

All content and images Copyright 2012 Denison Consulting, LLC. All Rights Reserved.One Hundred Year Old Manufacturing Company

One Hundred Year Old Manufacturing CompanyFirst in industry, but decliningTrying to hold on to the past1st time in 20 years failed to meet targetsTargeted by competitorsPresident operationally focusedWere a team going down together

How Culture Links to Business Performance

All content and images Copyright 2012 Denison Consulting, LLC. All Rights Reserved.

Innovation Customer Satisfaction GrowthCulture Links to Business Performance StablePerformance Over Time ProfitabilityROI, ROS, ROE

Operating Performance Quality Employee Satisfaction27Impact on PerformanceTop 25%Bottom 25%Return-on-AssetsSales GrowthMarket-to-Book Ratio2.3%1.4%2.63.2%23.1%4The higher the culture scores, the greater profitability, sales growth, & market value (based on a study of 130 firms; 2000-2010)

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28Study of Automotive Service Centers in the USA Total of 338 dealerships and over 12,000 employees Compares organizational culture and customer satisfactionSatisfying Your CustomersBelow 50% Highly SatisfiedAbove 80% Highly Satisfied

29Organizational Culture and Employee Engagement 11th Percentile ENGAGEMENT FACTOR 83rd Percentile Bottom 10

Top 10

DOCS OVERALL

30Culture Causes Performance

1 Year2 YearsIn summary, culture comes first and serves as a driver of subsequent performance levels.31When Is High Consistency Bad?When Involvement is low, high Consistency will likely lower an organizations performance.

2013 Denison Global BenchmarkOver 1000 organizations included in the normative databaseRobust industry representationBenchmarks are stable across years (2000-2012)International representation: Within the last 5 years, over half of the respondents are from outside the U.S.1/3 of companies are headquartered outside of U.S.Why We Recommend the Global BenchmarkThe most stable, representative comparison groupDifferent Industries and different Countries, on average, have very similar results to the global benchmarkComposites are available for many different Industries, Regions and Countries

Why We Use Percentiles3.94

3.78

3.59

3.46

3.21

3.04

2.8150

50

50

50

50

50

50Most 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 organization86%

82%

86%

64%

57%

41%

40%Survey Item Mean % Favorable Percentile Score (4s & 5s) ScoreOur Research Is Ongoing

European Journal of Work and PsychologyReliability and Validity of the DOCS and other measures of CultureOther exciting research

Financial implications of manager / non-manager alignment

Effects of Executive coaching interventions

Unionization and organizational culture

Looking Across the World

ApplicationAll content and images Copyright 2012 Denison Consulting, LLC. All Rights Reserved.Setting the Stage for Culture

All content and images Copyright 2012 Denison Consulting, LLC. All Rights Reserved.drive honest conversations among the collective about the way we do things around here thatlead to thoughtful actions and results in higher performance

Culture Data Should Do 3 things:It is important to remember that we talk about Culture we are talking about the collective. The emphasis is on our collective ability to drive performance across the Petronas organisation.The culture data we collect is intended to do 3 things:First it is intended to drive honest conversations among the collective about the way we do things around here , conversations thatlead to thoughtful actions and ultimatelyresults in higher performanceDuring this workshop we will help you develop the capabilities to facilitate those honest conversations and drive the creation of thoughtful actions.Honest conversations that lead to thoughtful action and higher performanceStep IAssessment of the Current StateGoal: To assess the current culture to surface strengths and weaknesses (and identify possible sub-cultures/areas of opportunity)

Step IICreating Understanding

Goal: To engage in dialogue to create a common understanding of the data and discuss the implications of the current culture for the businessStep IIIChoosing to Shift the Culture?

Goal: To establish agreement regarding the need for culture change/ development AND to focus efforts on areas of business impactStep VImplementation & Evaluation

Goal: To execute against the action plans and measure progress with a link back to organizational and/or group performanceStep IVAction Planning

Goal: To generate ideas for moving the culture forward; prioritizing and developing specific action plans

Are our people happy?Is our culturegood or bad? strong or weak?Are we clear and aligned?

Culture

Average levels of performanceMix of clarity & confusion

Lower levels of performanceConfusion & uncertainty reigns

Higher levels of performanceHigh level of clarity & alignment

Some people look at their culture results and will say that it is an indication of how happy their people are or the extent to which we have a good or bad culture. We prefer to use the words Clarity and Alignment when talking about culture.We have learned that when organizations have a lot of color in their profiles they also have higher levels of clarity & alignment meaning employees can describe their prioritieswhat teamwork looks likewhat their core values are. The more white space we see in a profile the less likely employees are to be able to describe those things. We say that the more white space you see - the more uncertainty and confusion that typically exists within the group or organisation.

42What you might hear

43

Theres a clear line-of-sight.We do a good job of Connecting the DotsOne-on-ones and 360 reviews provide individuals with constant reminders of our goals.The focus on short term and long term goals makes the company reach high levels of achievement.Flying blindWere fire fightersWere not sure what the future holds.Uncertainty is the best word to describe working here.The vision is inspiring and excitingFrustratingPurpose.My priorities are whatever my boss says they are that day.We all have the same vision which keeps us focused on what really matters.

SilosIts all about winners and losers.Stove pipesWe have a Moral CompassAlignmentWe engage in Constructive Conflict.Communication efforts across departments have allowed broader perspectives and better decisions.The end justifies the meansSelf-servingWe solve problems and we move forward together.The leaders dont walk the talk.My manager lives the core values and regularly addresses them on conference calls impressive!All the team members believe in doing the right thing and creating win-win situations.Issues remain unresolved and the team stays in flux.

I don't feel like I work for this great company - I feel a sense of ownership.There is a high level of transparency in this organization.We've learned to play towards each other's strengths and we work together to improve our weaknesses.Check your brain at the door.I feel that I am using my skills and intelligence rather than being micro-managed.This is a Compliance Culture.We have trouble retaining our best talent.Leaders believe they always know best.Internal competition is valued over cooperation.We band together to work as a single unit to achieve our daily goals.Information is power.We value highly capable people. The talent level here is very high.

Fear is prevalent throughout the organization.We can be arrogantwe dont always listen to our customers.This is how weve always done it.Our philosophy is Naming - Blaming Shaming.Change is NOT a criticism of the past.Forgive and rememberWe do project post-mortems and lessons learned events.Change happens to us, not with us.Change is not a programit is a matter of survival.A customer mind-set permeates the organization.We ask ourselves what does the customer want and need when we are looking at our processes.Hiding mistakes is more detrimental than making them.Finger pointing.Internal and External Forces that have the potential to create more uncertainty and ambiguityLeadership changesCompetitionRegulatory changesEconomyNew technologiesRestructuringMergers & acquisitions

Solutions Scenarios

All content and images Copyright 2012 Denison Consulting, LLC. All Rights Reserved.Building a High Performance Business CultureTurnaround & TransformationLeadership TransitionsLeadership DevelopmentMergers & AcquisitionsStrategicAlignmentThe Denison SolutionsIt is important to remember that we talk about Culture we are talking about the collective. The emphasis is on our collective ability to drive performance across the Petronas organisation.The culture data we collect is intended to do 3 things:First it is intended to drive honest conversations among the collective about the way we do things around here , conversations thatlead to thoughtful actions and ultimatelyresults in higher performanceDuring this workshop we will help you develop the capabilities to facilitate those honest conversations and drive the creation of thoughtful actions.Business Case Studies

It is important to remember that we talk about Culture we are talking about the collective. The emphasis is on our collective ability to drive performance across the Petronas organisation.The culture data we collect is intended to do 3 things:First it is intended to drive honest conversations among the collective about the way we do things around here , conversations thatlead to thoughtful actions and ultimatelyresults in higher performanceDuring this workshop we will help you develop the capabilities to facilitate those honest conversations and drive the creation of thoughtful actions.