why culture matters:lessons from anexecutive paneldiscussionCulture is critical to organizational successand HR leaders have a strong role to playin fostering a healthy culture, attendees atthe 2012 Human Resource Roundtable learnedfrom an executive panel of five senior leaderswho explored the implications of culture,why culture should be shaped, how it isshaped, who owns and leads the cultureand how to measure a culture.
Culture is critical to organizational success and HR leadershave a strong role to play in fostering a healthy cultureThe 2012 Human Resource Andy Kaslow, Ph.D, president, researched and strongly connected to Quantum Leap Advisors financial performance, Marino noted. HeRoundtable was held at the referenced a McKinsey Quarterly 2011 Jamie Lane, vice president, Talent & article that describes organizational healthHarvard Club in New York Organization Development, as being about a company’s ability to Hess Corporation align, execute and renew faster thanCity. The Human Resources competitors to sustain performance, and Minogue, managing director and Jim is the ultimate competitive advantage.Roundtable began in 1995 head of Human Resources, Gleacher & Company Why culture matters: A CEOsas a way for senior HR lead- perspectiveers to get together to share CEOs own the culture, but everyone in an organization leads culture “A leader is 100-percent accountable forbest practices as well as net- every success and failure in a business,” Craig Ivey, president at Consolidated Senn Delaney partner and executive vicework with their peers. This president Mike Marino opened the panel Edison Company of New York Inc., told the audience. He shared how the utility discussion with some grounding on orga-year’s topic was ‘Does Culture nizational cultures by asking participants: company is addressing the cultural chal- lenges that arose from an audit by the “How many of you have worked in moreMatter? The answer was a energy commission. The resulting report than one organization? How many of you reflected improvements or changes inresounding yes. This was have noticed different attitudes, habits four areas: finance, environmental, regu- and ways of doing things? Did that cause latory and culture.among many key takeaways different values and behaviors to show up? Culture is the unwritten ground According to the commission’s findings,for more than 100 executives rules. Everyone in an organization leads there were culture elements that were culture.” impeding performance that includedwho attended this roundtable unease about change, inability to see root Corporate culture is ranked fourth on The causes, lack of critical self-examination,hosted by Mullin & Associates/ Corporate Executive Board’s list of top unawareness of public perception and 10 risks CEOs and executives are most a mentality of “go along to get along.”Linconshire, HRD Consultants concerned with in 2011. It did not even Ivey told participants that cultural barriers make the list in 2008. ”It is a top concern were evident and had to be addressed.and Senn Delaney. of CEOs yet they don’t always know what to do about it or how to systematically He stressed the importance of culture address culture challenges,” Marino said. change being owned by the CEO andAn executive panel comprised of five top leaders. “The leader is a critical part Organizational culture is now well of change; they either enable or cre-senior leaders, whose experience crossesseveral industries, including healthcare, ate the culture.” He noted that leadersutilities, professional services and invest- must model the behaviors they want ofment banking, shared their perspectives, their employees and they cannot expectadvice and business examples of why employees to do things they wouldn’t do “The leader is a critical themselves as leaders.culture matters for their organizations.Panelists explored the implications of cul- part of change; theyture, why culture should be shaped, how Making the connection to personalize either enable or create care through culture transformationit is shaped, who owns and leads the cul-ture and how to measure a culture. the culture.” at Chilton Memorial HospitalPanelists included: Chilton Memorial Hospital’s Deborah — Craig Ivey, president, Zastocki agreed that the CEO must lead Consolidated Edison the culture. Cultural transformation is Craig Ivey, president, Consolidated Company of New York Inc part of Chilton’s organizational strat- Edison Company of New York Inc. egy. Through a partnership with Senn Deborah Zastocki, chief executive Delaney, she and her vice president of officer, Chilton Memorial Hospital Human Resources led a ‘Connecting to why culture matters: learnings from an executive panel 
Senn Delaney Partner and Executive Vice President Mike Marino, right, moderated the executive panel discussionwith five senior leaders in healthcare, utilities, professional services and investment banking. Panelists exploredthe implications of culture, why culture should be shaped, how it is shaped, who owns and leads the culture andhow to measure a culture. Personalized Care’ culture transformation behaves as opposed to the latest manage-at Chilton. They focused on a vision of ment skills training. Without this focus, organizations with many initiatives will “Cultural and change lead-becoming the local, preferred provider ofhigh-quality, personalized care and a mis- end up with “frantic activity without ership must become a keysion of promoting wellness and providing alignment and commitment,” Zastocki HR competency becausecompassionate care and healing. warned. it is clear that HR plays aPart of the process included creating new The role of the chief human resources vital role.”shared values and customer service stan- officer in creating or leading a culturedards linked to operational priorities to transformationimprove how ‘we act together’. Critical — Jim Minogue, managingleadership factors and strategic skills were “If we do nothing, the culture still exists. director, head of HR,identified and connected to the new Cultural and change leadership must Gleacher & Companyshared values, which further connected to be a key HR competency because it isperformance. A visual map/model of lead- clear HR plays a vital role, said panel-ership and communication helped align ist Jim Minogue, managing director andand engage everyone in the organization head of Human Resources at Gleacher &around the new culture. Company, an investment banking firm.Each department and individual created Minogue shared his conceptual model for strategy. The first is identifying key HRa statement on how they would sup- building a sustainable HR strategy, noting practices and then prioritizing them forport these operational priorities. This not that culture drives HR strategy. Within this impact. Once alignment with the desiredonly increased performance results but model, business strategy defines corpo- culture and senior leaders has beenalso had a positive impact on employee rate culture and drives HR strategy, which assessed, an implementation plan can beengagement scores, Zastocki noted. determines key HR practices, policies and developed and executed upon. processes needed to support the culture.The Chilton cultural transformation He referenced the HR competency modelinvolved focusing on how each leader Jim has five steps he uses to create an HR developed by University of Michigan busi- why culture matters: learnings from an executive panel 
“Culture change requires a culture versus financial performance holistic view. An organiza- performance by quartile tion cannot change just bottom cultures top cultures one aspect, but must align 68 systems, skills, staff, strat- EBITDA margin 31 2.2x egy and shared values.” — Jamie Lane, VP, 62 Organizational Development, growth in enterprise 31 2.0x value to book value Hess Corporation 58 growth in net 38 1.5x income to sales Organizational health: The ultimate competitive advantage. Scott Keller and Colin Price, McKinsey Quarterly June 2011ness professor and author David Ulrich.Ulrich’s model has the HR leader as thefoundation for driving policies and prac- Organizational culture is now well researched and strongly connected totices, systems and processes and orga-nizational capabilities. Ulrich notes that financial performance, and is the ultimate competitive advantage. SennHR’s ability to define, create, manage Delaneys Mike Marino referenced a McKinsey Quarterly article describingand change culture has become a unique organizational health being about a company’s ability to align, executesource of competence that HR profession- and renew faster than competitors to sustain performance.als must demonstrate. Minogue encour-aged HR leaders attending the roundtableto embrace their responsibility to be bold,stay on track and help teach leaders toconnect and engage with the culture. the changing landscape of corporate riskOrganizational Developments role 2008 risk ranking 2012 risk rankingin leading culture 1 international operations 1 IT security“Performance is formed within the con- 2 project management 2 international operationstext of culture. Culture change is a long- 3 extended enterprise 3 excess cashterm proposition and requires a long-termplan,” stated panelist Jamie Lane, vice 4 data privacy 4 corporate culturepresident of Organizational Development 5 fraud 5 complianceat Hess Corporation, a global energy 6 compliance 6 strategic change managementcompany. 7 IT 7 third-party relationshipsCultural change requires a holistic view, 8 business continuity management 8 cost-reduction pressuresshe said. An organization cannot changejust one aspect, but must also align sys- 9 shared services 9 HRtems, structure, skills, staff, strategy and 10 tax management 10 social mediashared values. Lane shared the McKinsey‘7S’ organizational analysis model, whichputs shared values at the center, support- The Corporate Executive Board’s annual list of top 10 risks CEOs and exec-ing and driving all aspects of the organi- utives are most concerned with is very different for 2012 compared withzation to get sustainable results. corporate risks at the start of the 2008 financial crisis. Corporate cultureLane believes that human resources and was not even on the radar in 2008; this year it ranks fourth on the list.organizational development help stewardculture work through the organization bydriving performance at individual, teamand organizational levels to meet andexceed goals. why culture matters: learnings from an executive panel 
building a sustainable HR strategy: a conceptual model competitive technical regulatory client market environment developments environment requirements position/ resources Jim Minogue, managing director business strategy and head of Human Resources at Gleacher & Company, shared a defines conceptual model for building a sustainable HR strategy, noting corporate culture that culture drives HR strategy. Within this model, business drives trategy defines corporate culture HR strategy and drives HR strategy, which determines key HR practices, determines policies and processes needed to support the culture. key HR practices, policies and processesAny culture change will require numerous that can be the biggest challenge for with defining what you want in termsinitiatives to create and sustain change leaders. of values and behaviors relative to thealong with solid project management to desired culture and diagnosing the cur-carry through, said Lane. For example, IBM mainframes were a rent state of the culture and the behav- growth industry and became IBM’s great- iors that may need to shift.When it comes to organizational design, est strength and greatest liability whenLane stated that a change of structure the environment changed. Lou Gerstner The desired culture is expressed throughmay be a quick way to initiate change, needed to dramatically transform IBM’s values and behaviors created by the exec-however, it is not always sustaining unless culture and strategy from a hardware to utive team.For people to live those behav-there is alignment with other levers of a software and services business while iors and make the culture a way of life,change, such as compensation, training preserving its core values. they need to first go through an unfreez-and other aspects of change that engage ing approach where they become moreat the individual and team levels. Innovation, diversity, risk-taking and aware of their behaviors and engage in, entrepreneurship top the list of charac- reflect on and make personal (emotional)The strongest cultures survive teristics of adaptability. Kaslow likened commitments to how they operate.because they adapt cultural health to Darwin’s theory of sur- vival of the fittest: “Change or die is an Measuring cultural shifts must take placeIn his presentation on culture, leadership organizational imperative, just as it was a on three levels, Marino noted:and performance, Quantum Leap’s Andy biological imperative.” He said innovationKaslow quoted Charles Darwin to stress is the lifeblood of successful companies individual: values and behaviors,the point that businesses, like humans, and organizational sclerosis and cultural embedded into process that givesmust adapt to survive: “In the struggle arrogance are the greatest threats. feedback, starting with senior teamfor survival, the fittest win at the expenseof their rivals because they succeed in team: measured against values and How do you diagnose and measureadapting themselves best to their environ- behaviors a culture?ment.” The most significant, long-term organization: engagement surveyschallenge for companies is leadership Senn Delaney’s Mike Marino concluded alone don’t really measure culture.succession and adaptability to an ever- the panel discussion by describing how An option is to create a culture surveychanging environment, he said. diagnosis and measurement of culture or add key culture questions to an is a critical first step toward building an engagement survey.Great companies must always adapt, and agenda for change. That process starts why culture matters: learnings from an executive panel 
Learnings from the 2012 HR Roundtable:What is culture? Culture is creating a sense of who you are as an organization and representing that culture in everything that is done in the organization. Culture is the history of the organization that defines how things get done. Culture is the attitudes, belief sets, values, written ground rules, and unwritten ground rules that set the tone of the organization.Why does culture matter? healthy, high-performance culture impacts financial performance and increases employee engagement. A Companies with a strong culture perform better, are more resilient and last longer. Culture is a top concern for CEOs and is a critical part of a CEO’s strategic focus and business model.What is the role of the chief human resource officer in creating a culture? Culture drives the human resource strategy and the human resource strategy drives the culture. The chief human resource officer, in partnership with the CEO, is a key leader of culture change at a very high level. The chief human resource officer should guide and coach to the kind of culture that will help the organization succeed and help sustain that culture. The chief human resource officer should “model” the desired cultural behaviors through the management of his/her human resource organization. Key competencies for a chief human resource officer leading a cultural transformation are courage and boldness.How do you change a culture? t may be necessary to use a “burning platform” to create change. I The CEO must cast the leadership shadow and “walk the talk” for the desired culture and values or they will be seen as unimportant. order to change a culture, key leaders must be emotionally committed to personal change. In Leaders must inspire people to change and build trust so that people will follow them, even to places they may not want to go. Culture transformation must be part of the organizational strategy. People must have a personal connection to the values for behaviors to change. Culture change can occur from the top down or from the bottom up; it is important to engage people at different levels of the organization to embed cultural change. Culture change and leadership succession are important and connected. Define the characteristics of the culture that are to be maintained and enrich those characteristics. Use on-boarding and mentoring to communicate and embed the culture. Bring the desired culture to life by celebrating the success of those individuals who demonstrate the new values and behaviors. why culture matters: learnings from an executive panel 
About the 2012 Human Resources Roundtable hostsSenn DelaneyFounded in 1978, Senn Delaney was the first firm in the world to focus exclusively on transforming cultures. Senn Delaney’s compre-hensive and proven culture-shaping methodology engages people and measurably impacts both the spirit and performance of organi-zations. Learn more at www.senndelaney.com.HRD ConsultantsLed by founder and president Marcia Glatman, HRD Consultants is a nationally recognized retainer search firm that focuses exclusivelyon executive-level human resource professionals. Learn more at www.hrdconsultants.com.Mullin & Associates LtdMullin & Associates is the premier global provider of individual outplacement solutions that focus on the individual and offer progres-sive winning strategies. Learn more at www.mullinassociates.com.About the panelistsCraig Ivey, president, Consolidated Edison Company of New York Inc.Craig Ivey is president of Consolidated Edison Company of New York (Con Edison), a regulated utility with 14,000 employees servingNew York City and most of Westchester County. The company is a subsidiary of Consolidated Edison, Inc., one of the nation’s largestinvestor-owned electric utilities. Ivey joined Con Edison in November 2009 after serving as a senior vice president in two different rolesat Dominion Virginia Power since 2006, first as an SVP of Electric Delivery, then as an SVP of Transmission and Distribution. He hadrisen through a succession of increasingly responsible positions at Dominion, where he developed a reputation for emphasizing safety,operational excellence and leadership.Deborah Zastocki, president and CEO, Chilton Memorial HospitalAn accomplished administrator, nurse, teacher, and author, in 2004, Deborah Zastocki joined the ranks of only 25 other female hospi-tal CEOs in New Jersey. Under Zastocki’s leadership, Chilton has focused on making itself a workplace of choice for staff, the preferredchoice for patients and the facility of choice for physicians. She implemented numerous organizational strategies that have dramaticallyimpacted employee, patient and physician satisfaction. For the past five years, the hospital has demonstrated consistent improvementin all dimensions of employee engagement moving in this last year from 29% to 33% of employees actively engaged, surpassing thehealthcare norm.Andy Kaslow, Ph.D, president, Quantum Leap AdvisorsDr. Andrew Kaslow is an internationally recognized leader in human resource management and executive and organizational develop-ment. He heads a global management consulting firm, Quantum Leap Advisors, based in New York City. He has served as the chiefhuman resources officer for four global companies: Time Warner, Vivendi Universal, AIg and Beckton Dickinson. Kaslow held senior HRleadership positions at PepsiCo and TRW and was a founding partner and managing director of the QuanStar Group, which providedstrategic advisory services to innovative companies. Kaslow is a valued advisor to chief executives, boards of directors and senior leadersfor his effectiveness in managing complex success issues, organizational crises and transformation transactions.Jamie Lane, vice president, Talent & Organization Development, Hess CorporationAs vice president, Talent and Organization Development for Hess Corporation, a global, integrated energy company based in New YorkCity, Jamie Lane has responsibility for learning and leadership development, talent management, succession planning, assessmentsand organization development. Lane joined Hess in September 2011 from Ingersoll Rand where she was vice president of Talent andOrganization Development. Previously, she was vice president of Talent Management and Development for Miller Brewing Companyand vice president of Learning, Talent and Organization Development for Fifth Third Bancorp. Earlier, from 1998-2005, she held a num-ber of senior roles in leadership, learning and organization development at Motorola. Lane served in learning and organization develop-ment roles for two years at McDonald’s Corporation.Jim Minogue, managing director and head of Human Resources, Gleacher & CompanyJim Minogue is managing director, Head of Human Resources and a member of the senior management committee for Gleacher &Company, a publicly traded investment bank. He has responsibility for leading the Human Resources function in support of the firm’sstrategic plan designed to focus on high-growth businesses. Previously, he was founder and managing director of Excelsior AdvisoryGroup LLC, providing advice on HR, organizational and strategic issues to several financial services firms. During 2011, Minogueserved on the interim head of HR for Golub Capital. Prior to managing his own consulting firm, Jim was the regional HR head for UBSFinancial Services in the Americas. He has also held senior HR positions at Brown Brothers Harriman & Company, Arthur Andersen,Swiss Bank Corporation, Smith Barney and GE Capital. why culture matters: learnings from an executive panel