PERFORMANCE BENCHMARKING
 Organizational Culture and Internal Communications
                    August 2010
Overview
More than 40 companies took part in the benchmarking study
- thanks everyone!
Participants clearly broke down int...
Stars
         Have clear goals
 Involve employees in goal setting
 Do formal performance reviews
  Measure customer satis...
OK




                                          Relax
They don’t actually do   all of that stuff ... but they do a lot of...
Solid
Citizens
Exhibit a number of good
characteristics and/or have some
     best practices in place


               But with plenty of...
Slackers




              Have abundant
           opportunities to improve!
So, let’s check out the data
66% of all
                                          respondents
                                           have clear
   ...
Fewer than 2/3
     of all respondents do formal
         performance reviews




Some of the
  Stars
shed light on
  this...
Less than 1 in 4 survey
    participants measure
employee satisfaction
     on a regular basis
This may well be the elephant in the room
For the small minority of companies that do measure employee
          satisfaction, it’s really not that complicated



 ...
The key is




               They are
             systematic
               about it
63%
                                 of respondents




Regularly measure customer   satisfaction
1st
    There’s a great opportunity for many more
  companies to measure customer satisfaction --
 thereby engaging a key ...
“The ability to learn faster than
   your competitors may be only
      sustainable competitive
            advantage.”


...
And what better way to learn faster than your
      competitors than by listening
    -- often and very closely --
       ...
While nearly 2 out of 3                  More than 3 out of 4
    firms measure                           do not       meas...
?
!
And now for some really good news




      At least for most respondents
Over   90%
 of all the survey participants at least
  occasionally take action based on
customer or employee feedback
90%
         Nearly

   communicate
     frequently
with customers following the order
Whereas the customer seems to
       get a lot of love

   internal
communications
 appears to be another story
44%
                                                     say their
                                                  meeti...
Speaking of meetings
More than60%
of respondents feel that
      the quality of
       information
      and/or
     the quality of
 interactio...
Barely 1 in 4 companies hold
an All Hands meeting on
  at least a monthly basis
At the same time
A solid majority of companies (60%) feel that their
        internal communications is healthy




   And...
Accountability



         The largest number of
        companies (44%) have a
         range of performance
       metri...
Accountability

An almost equally large
group of companies are
 driven by only one or
  two key goals, while
nearly 1 in 5...
So




What one thing would you like to change to improve your company
           culture and internal communications?
Free text questions are tricky, but it’s also great to give
                     respondents free rein

  There was no con...
At first as I went through the
 survey results, I found myself
 thinking about Pat Lencioni’s
classic book on teams that c...
Then increasingly, I found myself thinking about Peter Drucker,
            the godfather of modern management




     In...
What is our mission?

    Who is our customer?

What does the customer value?

    What are our results?

      What is ou...
Based on a close reading of Lencioni
and Drucker (never a bad idea to
    stand on the shoulders of
giants!), as well as a...
Have clear goals as an
organization and communicate
 them clearly. Involve staff in
        creating them.




           ...
Find the best way to engage your
         team in meaningful two-way
               communication ...

                   ...
If you’re a Star, stay true to the path.

   If you’re a Solid Citizen, identify improvement
  opportunities and engage a ...
THANKS!
If you are interested in more information or have questions or
        comments, please don’t hesitate to contact ...
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Organizational Culture Benchmarking Study

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Over 40 companies in southwestern Pennsyvlania contributed data to this study of organizational culture and company communications. The Great Recession put lots of strain on companies and their employees. This study suggest some of the impact and discusses potential next steps in strengthening your company culture.

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Organizational Culture Benchmarking Study

  1. 1. PERFORMANCE BENCHMARKING Organizational Culture and Internal Communications August 2010
  2. 2. Overview More than 40 companies took part in the benchmarking study - thanks everyone! Participants clearly broke down into three categories: Stars - are engaged in a variety of best practices. Stars made up roughly 1/4 of the data set Solid Citizens - have a good foundation, but lots of improvement opportunities. Well over half the respondents are Solid Citizens. Slackers - companies who do not appear to have the basics covered (10-15%).
  3. 3. Stars Have clear goals Involve employees in goal setting Do formal performance reviews Measure customer satisfaction Encourage two-way communication Actively engage employees and customers Run strong internal meetings Hold frequent “All Hands” meetings And use metrics and reporting to drive their business
  4. 4. OK Relax They don’t actually do all of that stuff ... but they do a lot of it!
  5. 5. Solid Citizens
  6. 6. Exhibit a number of good characteristics and/or have some best practices in place But with plenty of room for improvement
  7. 7. Slackers Have abundant opportunities to improve!
  8. 8. So, let’s check out the data
  9. 9. 66% of all respondents have clear transparent goals ... and 80% of them involve staff in establishing their goals Even so: 1/3 of the companies participating in the survey do not have clear goals that are obvious to all employees
  10. 10. Fewer than 2/3 of all respondents do formal performance reviews Some of the Stars shed light on this a few slides later
  11. 11. Less than 1 in 4 survey participants measure employee satisfaction on a regular basis
  12. 12. This may well be the elephant in the room
  13. 13. For the small minority of companies that do measure employee satisfaction, it’s really not that complicated They use a combination of: Anonymous surveys and Personal 1-1 meetings
  14. 14. The key is They are systematic about it
  15. 15. 63% of respondents Regularly measure customer satisfaction
  16. 16. 1st There’s a great opportunity for many more companies to measure customer satisfaction -- thereby engaging a key audience -- on a regular basis
  17. 17. “The ability to learn faster than your competitors may be only sustainable competitive advantage.” Recall that Jack Welch said:
  18. 18. And what better way to learn faster than your competitors than by listening -- often and very closely -- to your customers? and Prospects
  19. 19. While nearly 2 out of 3 More than 3 out of 4 firms measure do not measure customer satisfaction employee satisfaction! what I really find interesting is that ... 2nd
  20. 20. ?
  21. 21. !
  22. 22. And now for some really good news At least for most respondents
  23. 23. Over 90% of all the survey participants at least occasionally take action based on customer or employee feedback
  24. 24. 90% Nearly communicate frequently with customers following the order
  25. 25. Whereas the customer seems to get a lot of love internal communications appears to be another story
  26. 26. 44% say their meetings still rely on a one- way “report out” style A slight majority of survey participants (56%) indicated that their meetings are characterized by two-way communication
  27. 27. Speaking of meetings
  28. 28. More than60% of respondents feel that the quality of information and/or the quality of interaction could be improved in their company’s meetings
  29. 29. Barely 1 in 4 companies hold an All Hands meeting on at least a monthly basis
  30. 30. At the same time A solid majority of companies (60%) feel that their internal communications is healthy And very few (12%) see the level of respect, cooperation and harmony between departments as something greatly in need of attention
  31. 31. Accountability The largest number of companies (44%) have a range of performance metrics that they report on and discuss regularly
  32. 32. Accountability An almost equally large group of companies are driven by only one or two key goals, while nearly 1 in 5 respondents do not use key metrics to drive their business
  33. 33. So What one thing would you like to change to improve your company culture and internal communications?
  34. 34. Free text questions are tricky, but it’s also great to give respondents free rein There was no consensus, but survey participants were very clear about three overlapping issues More frequent and better two-way communication More feedback and greater accountability Better defined and communicated goals
  35. 35. At first as I went through the survey results, I found myself thinking about Pat Lencioni’s classic book on teams that calls attention to issues of: Trust Conflict Commitment Accountability and Results
  36. 36. Then increasingly, I found myself thinking about Peter Drucker, the godfather of modern management In one of his final classics, The Five Most Important Questions You Will Ever Ask About Your Organization, Drucker challenged leaders to develop compelling answers to the following ...
  37. 37. What is our mission? Who is our customer? What does the customer value? What are our results? What is our plan?
  38. 38. Based on a close reading of Lencioni and Drucker (never a bad idea to stand on the shoulders of giants!), as well as a close reading of the benchmarking results, the following summary seems to capture at least part of what we’ve learned
  39. 39. Have clear goals as an organization and communicate them clearly. Involve staff in creating them. Establish simple, clear metrics that help everyone to focus on what’s most important.
  40. 40. Find the best way to engage your team in meaningful two-way communication ... ... that furthers their understanding ... ... and creates more opportunities for them to further contribute to your success
  41. 41. If you’re a Star, stay true to the path. If you’re a Solid Citizen, identify improvement opportunities and engage a team of people to help. If you’re a Slacker, find one big issue (Company goals? Customer satisfaction? Two-way Communication?) and get started. Immediately.
  42. 42. THANKS! If you are interested in more information or have questions or comments, please don’t hesitate to contact me. BRYAN J. FISCHER OneStepBeyond 1415 Macon Avenue 8 Pittsburgh, PA 1521 41 2.849.7261 yondllc.com bfischer@onestepbe
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