Organizational Culture…• The values and behaviors that contribute to the unique social and psychological environment of an organization.
Patrick Lencioni “Once organizational health (culture) is properly understoodand placed in the right context, itwill surpass all other disciplines in business as the greatestopportunity for improvement and competitive advantage. Really!”
The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in your business is…The level of highly satisfied and engaged EMPLOYEES in your business.
What do engaged employees look like?1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork. 1- 107. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization.
Customer satisfaction drives customer loyalty… and customer loyalty drives profitability Evangelist 100% Zone of Affection 90 I love you 80 70 I don’t care about you 60 Zone of A 5% increase in Loyalty 50 40 Indifference loyalty among your 30 best customers… 20 Zone of Can produce a profit Defection increase of…I hate you Terrorist 25% – 85% Extremely Somewhat Slightly Very Dissatisfied Dissatisfied Dissatisfied Satisfied Satisfied Customer Satisfaction
Culture = CashActively disengaged employees can reduce total revenues byup to 22% while highly satisfied and engaged employees can drive profits up by as much as a 189%
Key attributes of winning cultures • High aspirations and a desire to win • Extreme customer focus • A “think like owners” attitude • Bias to action • Individuals who team • Passion and energy 1 - 10Bain & Company 5
From the Employee’s Perspective: Fun Results Family 1 - 10Meaning Friends Positive Culture Praise Fair Pride Freedom 5
What do employees want? S B A Focus me Know me Care about me Hear me Help me feel proud Equip me Help me see my value Help me grow
Where are we going + how will we behave on the way? Vision + Values Praise + Celebration Focus and Reward / Differentiation Strategy Eliminate Mediocrity Punish “No”Measure / Track 9 Steps for Communicate Adjust / Stakeholders + Transparency Innovate Ensuring Commitment guiding collation Renewal Effective Execution Vision + Values Training + Strategy time / money / Support Alignment Plans supplies / people Goals / Objectives Tactics / Actions Communication Systems Procedures / Protocols Clear / consistent / relentless Repeatable Process
Poor Communication1. There is a real void of clear,direct and understandablecommunication. This resultsin people doing what theywant to do, not what theyneed to do and breeds aclimate of not caring aboutthe customers/clients or theircolleagues.
Poor Behavior2. Dysfunctional behavior is accepted or ignoredand worse yet, colleagues, management reward it.
Lack of Clarity3. There is no definition of what is acceptableand what is unacceptable.
Lack of Accountability4. Management does not promote and confirmthat accountability is a key principle within theircompany.
Loss of Talent5. Good people may leave because offrustration that their employer is ignoring theissue and is not proactive in seeking andimplementing a solution to change theenvironment.
6. Employees will believe that if their managersdo not show that accountability is important,then employees will know that they can getaway with unacceptable behaviors.Lack of Leadership
To create a highly accountable culture…• Communicate clearly and relentlessly.• Set agreed-upon and highly specific metrics.• Focus on results – not personalities.• Force collaboration – teamwork is mandatory not optional.• Question all activities that don’t contribute to the company’s overall strategic goals.• Make sure that everyone in the organization – from top to bottom – focuses on accountability.
Sun Tzu on Business Execution• Solid strategy is essential to business success.• However, good strategic principles mean nothing if you don’timplement them.• Thorough preparation is essential to execution.• Simplicity is the foundation of execution. Thus you should focus yourbusiness on a few simple ideas.• Align all activity with your core business goals. Eliminate everythingelse.• People drive execution. Hire, train, retain and motivate the best.• The business landscape is always changing, so to succeed you mustbe flexible.• Craft a simple message, and make sure everyone in the organizationgets it – but also listen to everyone, so you know what’s going on.• Being good isn’t enough. Build “towering strengths.”
Situational LeadershipHIGH Teacher Coach Motivation FLEXLOW Director Cheerleader LOW HIGH Skill
Workshop• Outline the core elements of the kind of culture you want in your company.• Your organizational culture may or may not be perfect now… but if it were, what would it look like, how would people treat each other, what values would drive your business?
Final Workshop• In teams… discuss and create a document that outlines what you feel the culture should be here at the Innovation Hub?