Culture, the ultimate competitive advantage

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Jim Goodnight, CEO of SAS Institute, famously stated that "95% of my assets drive out the front gate every evening. It’s my job to bring them back." These "assets" that Mr. Goodnight speaks of are his …

Jim Goodnight, CEO of SAS Institute, famously stated that "95% of my assets drive out the front gate every evening. It’s my job to bring them back." These "assets" that Mr. Goodnight speaks of are his employees, his team members. Ranked #1 for the second year in a row on the 2011 Forbes' Best Places to Work list, SAS and Mr. Goodnight are undoubtedly doing something right. Corporate Culture, Engagement, and Energy are the 3 fundamental principles driving not only SAS, but a majority of the top leaders on the Forbes list.

Over the last century, the United States has made a switch; we are no longer the leader of industrial/operational efficiency, but instead, our major competitive advantage is innovation. This innovation starts with a bet. Companies must be willing to place a bet on culture and the belief that shifting time, resources, and money into team member happiness and engagement will, ultimately, deliver higher revenue and increase overall profitability.

Employee engagement can be the biggest competitive advantage for company success. Culture, the Ultimate Competitive Advantage focuses on how culture and engagement can drive a company to a stage 5 success via recruiting, sales, marketing, communication, performance, overhead, and other departments. This Engagement Effect can amount to a 20% or more gain in all faucets of a business. The presentations demonstrates how this Engagement Effect can unleash an unprecedented potential for growth, what differentiates the top 100 companies from the next lower 100 companies on the Forbes list, and what the return on cultural investment can do for the bottom-line.

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  • 1. :D Bar Camp CHS, Saturday, October 22, 2011 CULTURE, THE ULTIMATE COMPETITIVE ADVANTAGE By John E. Smith:D © 2011 BreakTheEquation | Proprietary and Confidential 1
  • 2. Agenda :D • About Me • Corporate Culture • Engagement Effect • The Numbers • SPARC’s Culture • Getting Started:D © 2011 BreakTheEquation | Proprietary and Confidential 2
  • 3. About Me :D John E. Smith • A serial entrepreneur and thought leader, who has been recognized as being a top level Chief Technology Officer (CTO) and business culture evangelist. • @ SPARC - Chief Evangelist and CTO - www.sparcedge.com:D © 2011 BreakTheEquation | Proprietary and Confidential 3
  • 4. What’s a Chief Evangelist? :D • Started with Guy Kawasaki while at Apple - The driving force behind evangelism is the fact that individuals simply want to make the world a better place. Evangelist customers spread their recommendations and recruit new customers out of pure belief, not for the receipt of goods or money. • Most likely different for every company • @SPARC - Chief Evangelist – To believe in what’s possible and evangelize that at SPARC. To evangelize what is possible at SPARC, beyond SPARC.:D © 2011 BreakTheEquation | Proprietary and Confidential 4
  • 5. :D Change is hard because people overestimate the value of what they have—and underestimate the value of what they may gain by giving that up. - James Belasco & Ralph Stayer CORPORATE CULTURE:D © 2011 BreakTheEquation | Proprietary and Confidential 5
  • 6. Why Culture Matters…. all of a sudden :D • The switch in the nation’s advantages - There has been a switch in our nation’s advantage… we once competed on operational efficiencies, today we compete on innovation • Operational Efficiencies vs. Innovation - • Innovation will be stifled without a supportive culture:D © 2011 BreakTheEquation | Proprietary and Confidential 6
  • 7. What is Corporate Culture? :D • The collective way things are done in a corporation - Both written and observed knowledge about the accepted rules and behaviors within a corporation • Must be supported by top leadership - Can start at any level, but without top level support… ultimately will die • Great cultures have some things in common – Trust, Pride, Camaraderie • @ SPARC - Culture – Fair, Environment, Promise:D © 2011 BreakTheEquation | Proprietary and Confidential 7
  • 8. What is Corporate Culture? (supportive) :D A Bet, Big Bet • Willing to place a bet on culture and the belief that shifting time, resources, and money into team member happiness and engagement will, ultimately, deliver higher revenue and increase overall profitability - Have to be willing to take the risk; will need more patience with revenues • This Bet can be difficult because there are no definitive engagement/culture-driven metrics • Both written and observed knowledge about the accepted rules and behaviors within a corporation:D © 2011 BreakTheEquation | Proprietary and Confidential 8
  • 9. Engagement Effect… :D Hire • Self feeding • Delivers Energy Engagement Culture Energy • The Ultimate Happy Competitive Brand Advantage:D © 2011 BreakTheEquation | Proprietary and Confidential 9
  • 10. :D Thousands of candles can be lit from a single candle, and the life of the candle will not be shortened. Happiness never decreases by being shared. -BUDDHA HAPPINESS:D © 2011 BreakTheEquation | Proprietary and Confidential 10
  • 11. Happy Employees :D • Story on happiness realization - Everyone believes that a child will do great at school if they are happy to be there • Make employee’s happy and they will over achieve – Align careers with passion and natural abilities – Build an amazing environment – Make things fun – Share • Everything else will take care of itself (mostly):D © 2011 BreakTheEquation | Proprietary and Confidential 11
  • 12. Happiness :D • Types of Happiness – Pleasure - Always chasing the next thing; short lasting – Passion - Flow: where peak performance meets peak engagement “in the zone” – Higher Purpose - Being part of something bigger … the longest lasting type of happiness • Condensed to Maslow’s Hierarchy – Employees: Money >> Recognition >> Meaning “Delivering Happiness: A path to profits, passion, and purpose” by Tony Hsieh:D © 2011 BreakTheEquation | Proprietary and Confidential 12
  • 13. Workplace Happiness :D • Perceived Control - Employees are happier being in control of their pay and which skill sets to attain • Perceived Progress - Employees are much happier with an ongoing sense of career progression • Connectedness (Depth of relationships) - Engaged employees are more productive; number of good friends an employee has at work is correlated with how engaged that employee is “…happiness doesn’t come primarily from within but, rather, from between.” – Jonathan Haidt • Vision & Meaning (Part of something bigger) - Higher purpose beyond money, profits, or being number one in a market is a key factor in separating a great company from a good one “Delivering Happiness: A path to profits, passion, and purpose” by Tony Hsieh:D © 2011 BreakTheEquation | Proprietary and Confidential 13
  • 14. Balance, but Unhappy :D Low Engagement >> Energy Lost Work Life:D © 2011 BreakTheEquation | Proprietary and Confidential 14
  • 15. Balance, Happy …More Productive :D High Engagement >> Energy Gained Work Life:D © 2011 BreakTheEquation | Proprietary and Confidential 15
  • 16. NPS… From the Inside Out :D • Net Promoter Score (NPS) - Answering the Ultimate Question, Richard Owen and Dr. Laura • Every promoter will tell 3 friends - One time shot per sale • Engaged employees will tell friends every day for a career • @ SPARC – employees rate their happiness every 30 days:D © 2011 BreakTheEquation | Proprietary and Confidential 16
  • 17. :D This company takes pride in empowering its people to a point where they do not feel like they are just “doing a job,” they are actually playing a pivotal role in the company. –WEGMANS EMPLOYEE ENGAGEMENT:D © 2011 BreakTheEquation | Proprietary and Confidential 17
  • 18. Engagement Effect :D • When employees are engaged it powers the entire company • All areas of the company affected – Sales – Employee Health – Marketing – Communication – Performance – Strategy – Management – Overhead – Recruiting – Turnover – Energy:D © 2011 BreakTheEquation | Proprietary and Confidential 18
  • 19. Engagement Effect :D •How much would you be willingitto pay for a 20% gain in When employee are engaged powers the entire company any one of these areas? • All areas of the company effected – Sales How about all of them? Health – Employee – Marketing – Communication – Performance – Strategy – Management – Overhead – Recruiting – Turnover – Energy:D © 2011 BreakTheEquation | Proprietary and Confidential 19
  • 20. Engagement Effect :D •How much would you be willingitto pay for a 20% gain in When employee are engaged powers the entire company any one of there areas? • All areas of the company effected – Sales How about all of them? Health – Employee – Marketing Engagement Effect… This is the – Communication – Performance – Strategy – Management Ultimate Competitive Advantage! – Overhead – Recruiting – Turnover – Energy:D © 2011 BreakTheEquation | Proprietary and Confidential 20
  • 21. Engagement Effect = Level 5 :D Tribal Stage Collaboration Communication Structure 5 Team “Life is great” 4 Partnership “We’re great” 3 Personal “I’m great” 2 Separate “My life sucks” 1 Alienated “Life sucks” Summary of Tribal Leadership and Structures. Note that the person in question is the circle on the right column – going from alienated at stage one to part of an ever-growing network at stage five.:D © 2011 BreakTheEquation | Proprietary and Confidential 21
  • 22. Engagement for Growth :D World Class Average 7% 18% 26% 49% Actively Disengaged Not Engaged 67% Engaged 33% 9.57:1 1.83:1 Ratio of Engaged to Actively Disengaged Ratio of Engaged to Actively Disengaged Gallup, Inc.:D © 2011 BreakTheEquation | Proprietary and Confidential 22
  • 23. :D ENERGY/BRAND:D © 2011 BreakTheEquation | Proprietary and Confidential 23
  • 24. Energy :D • How to define energy? • You know it when it’s there and you know it when you see it:D © 2011 BreakTheEquation | Proprietary and Confidential 24
  • 25. :D If you dont measure something, you cant change it. The process of leadership is one of painting a vision, then saying how youre going to get there, and then measuring whether youre actually getting there. Otherwise, you risk only talking about great things but not accomplishing them. - Mitt Romney BY THE NUMBERS:D © 2011 BreakTheEquation | Proprietary and Confidential 25
  • 26. Return on Cultural Investment :D “…doing the right thing, treating people right, is also the right thing for the company.” - Jim Goodnight, Founder & CEO of SAS, #1 on the “Best Places to Work” List, 2011 Publicly traded companies listed in the “100 Best Places to Work” have consistently higher percentages of annual returns. In addition to higher return percentages, lower turnover rates and more job applicants are also characteristic of companies listed in “100 Best Places to Work”:D © 2011 BreakTheEquation | Proprietary and Confidential 26
  • 27. 100 Best Compared to 100 Lower :D • The 100 Best grew at twice the pace of the 100 Lower • Absenteeism was 70% higher at the 100 Lower • The 100 Best received twice as many job applications • The 100 Best developed more new products (Innovation) • The 100 Best had lower voluntary turnover • The 100 Best increased revenue by 23% but staff by only 11% 2009 Study, The Great Place to Work Institute Europe:D © 2011 BreakTheEquation | Proprietary and Confidential 27
  • 28. Recognition-Specific Numbers :D • Gallup Poll “Recognition” Study – Make Their Date by Cindy Ventric e - 4 million employees, worldwide; 10,000 businesses across 30 different fields • When Employee Recognition was part of culture, companies saw: – Increased productivity – Increased engagement – Higher likelihood of staying with the company – Better Safety – Fewer Accidents:D © 2011 BreakTheEquation | Proprietary and Confidential 28
  • 29. :D Where/How it can go wrong: Culture Killers THINGS TO AVOID:D © 2011 BreakTheEquation | Proprietary and Confidential 29
  • 30. Culture Killers :D • Animosity • Fear - Can (culture wins) start at any level, but without top level support… ultimately will die; Facebook posters of “What Would You Do if You were Not Afraid?” • Risk Focused (risk mitigation) - Focus on value creation over risk mitigation… despite size and success • Actively Disengaged Team Members - Erode the organization’s bottom line, while breaking the spirits of colleagues in the process • Rule Management • Corporate Dogma • Anti-Trust • Actuaries:D © 2011 BreakTheEquation | Proprietary and Confidential 30
  • 31. :D Ignite the Possibilities –SPARC CULTURE AT SPARC:D © 2011 BreakTheEquation | Proprietary and Confidential 31
  • 32. New PictureSPARC Culture!A SOFTWARE DEVELOPMENT CULTURE © 2010 SPARC | Proprietary and Confidential 32
  • 33. 2011 Ignite Your SPARC!SPARC CULTURE BASELINE © 2010 SPARC | Proprietary and Confidential 33
  • 34. SPARC Rules• No Bull Shitting! - The opportunities we know of, we can solve - Without trust there is nothing….• Act in SPARC’s Best Interest - Be accountable• Have Fun! - If we are not having fun, it’s not worth doing © 2010 SPARC | Proprietary and Confidential 34
  • 35. The SPARC Priorities Health Family Career Order is implicit! © 2010 SPARC | Proprietary and Confidential 35
  • 36. The SPARC Equation SPARC You Fair Environment Promise Loyalty Hard Work = Commitment Salary Flexibility Larger Than Us Benefits Excitement Proud Of Accountability Vacation Fun Shared Success Creativity © 2010 SPARC | Proprietary and Confidential 36
  • 37. SPARC Core ValuesWinter 20111. People First, First - Put people, the person first. Make time to listen. Give others the Benefit of the Doubt• Accountable - No matter the time or place, I am accountable for my actions. Period. - Keep your team members accountable. - Actions that encourage transparent accountability• Communication - Continuously communicate, and at all levels.• Agile - Embrace agile as a way of life. (Embrace change, Fast value & Continuous improvement)• Have Fun - Spontaneously make things fun, funny and more enjoyable.• Leave Them High - Always leave people feeling better. Present a Hug Factor! © 2010 SPARC | Proprietary and Confidential 37
  • 38. SPARC Terminology Hug-Factor [huhg] [fak-ter] -noun 1. Unintentional acts, resulting in making others feel better emotionally 2. A euphoric feeling, occurring as if you have been hugged and embraced without any physical contact 3. A virtual hug Hug-Factor Timeout (HTO) 1. Asking for permission to communicate or interact without Hug-Factor. 2. Must always be ask in a question format. It’s Personal… We expect Team Members to be personally invested in each 3. Can only be used once per day. other…know your Team Members!! “Leave them HIGH” 1. Always leave people feeling better than before you saw/spoke to them 2. Smile and make eye contact with everyone 3. We’re all busy, but it is important to take the time to stop and make interpersonal connections with team members, guests, and customers © 2010 SPARC | Proprietary and Confidential 38
  • 39. SPARC – GuidanceWinter 2011 •Always start emails and chats with a •Anyone can attend any interview •Use language like “we” and “us” over greeting “I” and “me”. •Cell phones should be on vibrate •Your Team Members are your first •Work from home one day a month customers •Two bad days in a row are not allowed •Use language like “Team Member” •No Hushing or Shushing •Always leave a location in the best and “Talent” over “Employee” and possible condition especially “Resource”. •Give undivided attention conference rooms •Respect EVERYONE as if they are a •“Bitching Out” should NEVER happen •Don’t eat lunch at your desk customer in front of others •Praise in Public, Critique in Private •Put value creation over risk mitigation •Make eye contact and smile as much as possible •Ask for permission before giving •Challenge corporate dogma feedback •Use the most personal communication • Give others the benefit of the doubt available •Listen for at least 2 minutes before speaking •Email Sucks… as a way to •Send a hand written thank you communicate • Make time to listen •Remove personal sarcasm • Choose being kind over being right • Its not what you say, its how you say © 2010 SPARC | Proprietary and Confidential 39
  • 40. New Picture - JohnSPARC Culture!SPARC ENVIRONMENT © 2010 SPARC | Proprietary and Confidential 40
  • 41. Table TimeTable Time is meant to increase communication and remove the barriers of continuously working together.1. Project people - Should work at the tables each morning as appropriate.2. Non project people - Should work at the tables at least once a week.3. Not project specific Picture - Build uncommon relationships © 2010 SPARC | Proprietary and Confidential 41
  • 42. Everything MovableAllow people to work where they want, when they want and allow that to change at any time.1. Standing desks on wheels - Engineers like to work standing up, and in different locations2. Rolling whiteboards - Can you ever have enough whiteboards - Whiteboards on wheels - Whiteboards per team, project © 2010 SPARC | Proprietary and Confidential 42
  • 43. Open, Fun Environment• Make it fun• Make it a place that people want to be• Make it open with natural light and casual seating © 2010 SPARC | Proprietary and Confidential 43
  • 44. And A Bunch More… © 2010 SPARC | Proprietary and Confidential 44
  • 45. New Picture - JohnSPARC Culture!SPARC AND AGILE © 2010 SPARC | Proprietary and Confidential 45
  • 46. Agile Manifesto People and collaboration over process - Focus on the people and their communication Embrace change - Expect and anticipate that change is going to happen, embrace it when it does Add value quickly - Develop the smallest piece of true value… iterate, extend and repeat If it’s painful, hard or risky do it all the time - Extreme Continuous Integration (CI) - Extreme Continuous Deployment (CD) - QA, End Users and DevOps involvement from day one Self defined, empowered teams - Trust and empower the team and hold them accountable - Remove fear of failure - Allow people to do what they love and do best © 2010 SPARC | Proprietary and Confidential 46
  • 47. SCRUM Software development implementation of Agile - Not perfect but good starting point, highly adopted Defines structure, rituals and behaviors - Structure = Roles, Sprint, Stories, Backlog… - Rituals = Recurring meeting and objectives - Behaviors = how we expect people to act © 2010 SPARC | Proprietary and Confidential 47
  • 48. SCRUM at SPARC Extreme CI&D - Auto build, test and deploy hourly - Auto build, test, stabilize, verify and deploy nightly - 100% code coverage and 0 violations - Complete UAT per sprint Functional based, mixed competencies teams - Teams own functional areas - 7 +/- 2 people… Dev, QA, BA… - Dedicated SCRUM Masters Agile requirements - Product owners, 60% brainstorm -> prototype and requirements - 80% second pass - Iterative UAT And a bunch more… - Multi team co-location, Badge & Border less, DevOpps, 40 hour work week, Self assigned stories - Not afraid to make mistakes ©2 1 S A C| P p ta a dC n e tia 0 0 P R ro rie ry n o fid n l 48
  • 49. New Picture – John2011 Ignite Your SPARC!THINGS UNIQUE TO SPARC © 2010 SPARC | Proprietary and Confidential 49
  • 50. SPARC, We Are A Little Different OK Maybe A Lot ….• Strategy: People in our building - We want our customers and partners in our building as much as possible• Shadow day - Transparency, have people shadow - Candidates and have raw access to our organization before joining SPARC• Work from home - Work from home at least one day a month• Bring man’s best friend - Dogs are allowed at work• Unlimited vacation - Two weeks of vacation your first year, unlimited vacation your second year… just work it out with your manager• Value based organization - We value your contributions… not the hours at your desk © 2010 SPARC | Proprietary and Confidential 50
  • 51. SPARC, We Are A Little Different OK Maybe A Lot ….• Table Time - Remove barriers by continuously working together - Increase communication - Project People (each morning) - Non Project People (weekly)• Beer - Be responsible and accountable, taxi pass• Create Your Own Title - You can create your own title and be as crazy as you like with it… i.e. Code Ninja• Grill - Bring your lunch or cook your lunch…. Use the corporate grill, Chef’s hat required• Buddy System - A system to give you a friend as you join the organization• Casual Dress Code © 2010 SPARC | Proprietary and Confidential 51
  • 52. Leadership Pairs• No hierarchy• No defined roles *Rotate per sprint• Complementary Technical Lead Operate as a unified pair to team and across teams Technical Lead SHARED: Developer• Complete HR responsibility • Responsibility• Monthly Check-Ins SCRUM • Accountability Team• 6 Month, Yearly Reviews • Leadership © 2010 SPARC | Proprietary and Confidential 52
  • 53. Project Integration Managers (PIM) PIM support the SCRUM teams and prevent the BS from affecting their team. “BS abstraction layer” • Cross team communication • Facilitate communicate across projects and programs • Prioritize, track and ensure success • Onboarding • Offboarding © 2010 SPARC | Proprietary and Confidential 53
  • 54. SPARC Recruiting / Interviewing • People with passion - No filling seats, find people with passion - Not what can you do, but what do you want to do • Evaluated on 1. Culture 2. Aptitude 3. Resume (in order) • Write code - Code writing problem (simple), with automated tests • Shadow us for a day - Come spend the day with SPARC with unfiltered access • Single veto power - Anyone can veto a candidate © 2010 SPARC | Proprietary and Confidential 54
  • 55. SPARC Culture Consolidation • The right people, in the right spots - Only hire people you want to work with and be around - Find people’s’passions • Trust - Trust people to do the right things… they will surprise you • Empowerment - Let people make decisions • Communication - Communicate as often as possible, from ever direction, with sincerity • Transparency - Give people access, show them as much as possible © 2010 SPARC | Proprietary and Confidential 55
  • 56. SPARC VENTURES © 2010 SPARC | Proprietary and Confidential 56
  • 57. Entrepreneurial Opportunities • SPARC is comprised of many innovative, entrepreneurial spirits • SPARC wants to encourage team members to strive for entrepreneurial ventures and to “grow out” of their jobs • 4 Stage process (Idea, Alpha, Beta &Version One) © 2010 SPARC | Proprietary and Confidential 57
  • 58. New PictureSPARC Culture!A SOFTWARE DEVELOPMENT CULTURE COMPLETE! © 2010 SPARC | Proprietary and Confidential 58
  • 59. :D 95% of my assets drive out the front gate every evening. It’s my job to bring them back. – Jim Goodnight GETTING STARTED TIPS & ADVICE:D © 2011 BreakTheEquation | Proprietary and Confidential 59
  • 60. Tips on Getting Started :D • Focus on culture from Day One • Set Core Values and Company Guidance • Hire people you want to work with, over people with strong resumes…culture and aptitude over resume • Be willing to challenge the dogma of traditional corporate business • Focus on value creation over risk mitigation • Remove fear and add transparency:D © 2011 BreakTheEquation | Proprietary and Confidential 60
  • 61. Advice :D • Not only set Core Values and Company Guidance, but follow them… walk the walk • Make people happy to come to work; employees are a company’s greatest asset • Excite (energize) customers EVERYONE! Welcome them into your building; be transparent • Make communication a top priority and always know that it can be improved:D © 2011 BreakTheEquation | Proprietary and Confidential 61
  • 62. :D Tony Hsieh’s distinct steps for creating Core Values “Delivering Happiness: A Path to Profits, Passion, and Purpose” by Tony Hsieh 10 STEPS FOR DEVELOPING YOUR COMPANY’S CORE VALUES:D © 2011 BreakTheEquation | Proprietary and Confidential 62
  • 63. 10 STEPS = CORE VALUES :D 1. Decide if you’re committed to running a values-based company - Requires patience to lay a foundation - Make decision sooner, rather than later 2. Figure out your personal values - It’s harder than you think - Be honest with yourself 3. Get key people’s values - Partners, manager, and/or influencers 4. Combine people’s values - No committees; just 1 or 2 people 5. Ask managers to test values against employees and ex-employees:D © 2011 BreakTheEquation | Proprietary and Confidential 63
  • 64. 10 Steps = Core Values :D 6. Test your commitment - Are you willing to hire/fire people based on whether they fit your Core Values? 7. Send to entire company, and ask for feedback 8. Combine people’s values(again) - No committees; just 1 or 2 people - You can’t make everyone happy 9. Rollout Core Values to entire company 10. Integrate Core Values into everything you do - Especially hiring, firing, and performance reviews:D © 2011 BreakTheEquation | Proprietary and Confidential 64
  • 65. Some Well-Known Core Values :D• Google • Zappos • Focus on the User and All Others Will Follow • Deliver WOW Through Service • It’s Best to do One Thing Really, Really Well • Embrace and Drive Change • Fast is Better Than Slow • Create Fun and a Little Weirdness • Democracy on the Web Works • Be Adventurous, Creative, and Open-Minded • You Don’t Need to be at Your Desk to Need an • Pursue Growth and Learning Answer • Build Open and Honest Relationships with • You Can Make Money Without Doing Evil Communication • There’s Always More Information Out There • Build a Positive Team and Family Spirit • The Need for Information Crosses All Borders • Do More with Less • You Can be Serious Without a Suit • Be Passionate and Determined • Great Just Isn’t Good Enough • Be Humble• Disney • IBM • Innovation • Dedication to Every Client’s Success • Quality • Innovation that Matters, for Our Company and • Community the Word • Storytelling • Trust and Personal Responsibility in all • Optimism Relationships • Decency:D © 2011 BreakTheEquation | Proprietary and Confidential 65
  • 66. Resources :D • Books - “Delivering Happiness: A Path to Profits, Passion, and Purpose” by Tony Hsieh - “Tribal Leadership” by Dave Logan, John King, and Halee Fischer-Wright - “The Great Workplace” by Michael Burchell and Jennifer Robin - “Make Their Day: Employee Recognition that Works” by Cindy Ventrice • Links NetFlix culture : http://www.businessinsider.com/netflix-culture-management-presentation-2011-7#-1 Best Buy smashing the clock : http://www.businessweek.com/magazine/content/06_50/b4013001.htm Google culture : http://computer.howstuffworks.com/internet/basics/google6.htm:D © 2011 BreakTheEquation | Proprietary and Confidential 66
  • 67. Q & A …Culture in Action :D Culture, The Ultimate Competitive Advantage John E. Smith BreakTheEquation : www.breaktheequation.com john.smith@breaktheequation.com Come see Culture in Action SPARC tours held daily, please email sparcguestmeetings@sparcedge.com to arrange a time to visit:D © 2011 BreakTheEquation | Proprietary and Confidential 67
  • 68. Engagement Effect… Ultimate Advantage :D • Trust is hard - Grows from how the leader reacts to changes (both big and mundane changes) • Trust = Progress - Trust will lead to confidence in the direction you set • If employees don’t trust their leaders, they hesitate and weigh consequences - Can lead to a “waiting game” to see what happens next – causes company-wide inaction - Without trust, engagement slows and creates a culture without happiness… no energy is produced:D © 2011 BreakTheEquation | Proprietary and Confidential 68