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Healthy work for whole people07/04/2014 Healthy work for whole people07/04/2014 1
Healthy Work
for Whole People
Healthy work for whole people07/04/201407/04/2014
• ‘People are our Most Important Asset’ – Why the
Cynicism?
• What comes first around here?
• What matters in a crisis?
• The HR Manager’s Dilemma
• Do the ‘Healthiest’ Organisations provide the
Healthiest Jobs?
2
Healthy Work for Whole
People
Healthy work for whole people07/04/201407/04/2014
• Sir Michael Marmot
• Professor of Epidemiology
Studies, UCL
• Study of health inequalities in
the West
• 35 years’ research
• Principal investigator -
Whitehall II studies
3
Social Gradients
& Health
Bloomsbury, 2005
Healthy work for whole people07/04/201407/04/2014
The picture shows a bar-
graph from the Whitehall
Study: "CHD MORTALITY BY
GRADE: WHITEHALL MEN."
From left to right, the bars
show the relative mortality
rates in "Admin," "Prof/Exec,"
"Clerical" and "Other" job
classifications. Blue bars are
adjusted for age; tan bars are
adjusted for risk factors such
as smoking, cholesterol
levels, etc. –
(Marmot/Lancet 1984)
4
Healthy work for whole people07/04/201407/04/2014
• Employment is insecure
• Work is monotonous and repetitive
• Workers have little or no autonomy, control and
task discretion
• There is an imbalance between effort and reward
so that workers felt exploited or ‘taken for granted’
• There was an absence of procedural justice in the
workplace.
5
Employees will
Experience Worse Health if:
Healthy work for whole people07/04/201407/04/2014 6
Whole Person Model
Mind
Body Spirit
Being
Healthy work for whole people07/04/201407/04/2014
Mind
Body Spirit
Will
Purpose
Aims
Plan
Strategy
Ethics
Values
Personality
Attitudes
Character
Motivation
Ethos
Energy
Physical Body
Intellect
Skills
Abilities
Person
Identity
Family
Community
Relationships
Life Experiences
Beliefs
Knowledge
Being
7
The Personal Tricords
Healthy work for whole people07/04/201407/04/2014 8
Mind
Body Spirit
Being
• Physical exercise
• Provided with right
tools and equipment
• Good working
conditions
• Good health and
safety
• Job security
• Fair remuneration
• Inspiration
• Motivation
• Teamwork
• Leadership
• Coaching
• Evaluation
• Feedback
• Learning
• Ethical values
• Objectives
• Interest
• Creativity
• Use of imagination
• Responsibility
• Mental exercise
• Identity
• Relationships
• Belonging
• Community
• Forgiveness
• Recognition
• Appreciation
The Work Needs of
Whole People
Healthy work for whole people07/04/201407/04/2014 9
Whole Work For Healthy People
Mind
Body Spirit
Being
• Physical exercise
• Provided with
right tools and
equipment
• Good working
conditions
• Good health and
safety
• Job security
• Fair remuneration
• Inspiration
• Motivation
• Teamwork
• Leadership
• Coaching
• Evaluation
• Feedback
• Learning
• Ethical values
• Objectives
• Interest
• Creativity
• Use of
imagination
• Responsibility
• Mental exercise
• Identity
• Relationships
• Belonging
• Community
• Forgiveness
• Recognition
• Appreciation
Plan
LearnDeliver
Strategy
Systems Culture
Purpose
Aims
Plan
Strategy
Ethics
Values
Spirit
Language
Motivation
Ethos
Leadership
Evaluation
Teamworking
Process
Systems
Technology
People Structure
Roles
Measurement
Communication
Reason
History
Origin
Knowledge
Practices
Rituals
Identity
Healthy work for whole people07/04/201407/04/2014 10
© Copyright Tricordant Ltd, 2006
1 2 3 4 5
1 Purpose and value My team's work has little value
or purpose. It doesn't seem
very worthwhile.
My team's work is meaningful
and valuable. We understand
the purpose of our work.
2 Plans and Objectives My team doesn't have a plan.
We don't have any set
objectives and we don't know
what is really expected of us.
My team has a clear plan and
set of objectives. People know
what is expected of them.
3 Interest In our team the work is boring
and dull.
In our team we find the work
interesting and often fun.
4 Creativity We are prevented from being
creative and using our
imagination.
We have many opportunities to
be creative and are encoraged
to use our imagination.
5 Responsibility People are given little
responsibility and are told
exactly what to do.
People are empowered and are
given new responsibilities.
6 Physical stress Jobs here are physically tiring
and stressful.
Our work provides good
physical exercise without being
over demanding.
7 Mental stress Jobs here are mentally tiring
and stressful.
Our work provides good mental
exercise without being over
demanding.
8 Tools and Equipment Our team has inadequate tools
and equipment to do the job
properly.
Our team have the right tools
and equipment to do a good
job.
9 Working Environment The working environment is
poor here and employee
facilities are inadequate.
The working environment and
employee facilities are good
here.
10 Health and Safety The organisation cares little
about the safety and welfare of
its staff. It does not take health
and safety seriously.
The organisation cis concerned
about the wellbeing of its
employees and takes seriously
all aspects of health and safety.
Body
Tick column 1 if you fully agree with the first
statement on the left. Tick column 5 if you fully agree
with the second statement on the right. If the truth is
somewhere in the middle tick column 2, 3 or 4 to
indicate where the truth lies in between.
Mind
Whole Systems Health Check
Healthy work for whole people07/04/2014 Healthy work for whole people07/04/2014 11
Organisational Health
Healthy work for whole people07/04/201407/04/2014
• J. Kotter and J.L. Heskett, Corporate Culture and Performance,
Free Press, New York, 1992
• J. Collins, J. Porras, Built to Last, Century, Random House, 1995
• J. Collins, Good To Great, Random House, 2001
• Nohria, Joyce and Robertson, What Really Works, HBR, July
2003
12
Major Evidence-Based
Research Studies On Sustainable
Company Performance
Healthy work for whole people07/04/201407/04/2014
Adaptive and Inclusive Culture
• American Airlines
• Bankers Trust
• Anheuser-Busch
• PepsiCo
• Hewlett-Packard
• ConAgra
• Shell
• Albertson's
• Dayton Hudson
• Wal-Mart
• Golden West
• Springs Industries
13
Corporate Culture &
Performance
Insular and Controlling Culture
• H.F. Ahmanson
• Avon
• BankAmerica
• Citicorp
• Coors
• Eastern Airlines
• Fieldcrest Cannon
• First Chicago
• Ford
• General Motors
• Goodyear
• K Mart
• Kroger
• Navistar
• Northwest Airlines
• Pan Am
• J.C. Penny
• Sears
• Texaco
• Xerox
J. Kotter and J.L. Heskett, Harvard Business School, Corporate
Culture and Performance, Free Press, New York, 1992
Healthy work for whole people07/04/201407/04/2014 14
Corporate Culture &
Performance
Adaptive and Inclusive
• Managers’ focus is on serving equitably
– Customers
– All employees
– Shareholders
• Managers develop leadership skills
• Leaders coach people through constant
change
• Business is adaptive to external market
changes
Insular and Controlling
• Managers’ focus is on protecting
– Themselves
– Their work group
• Managers value orderly control
• Managers prefer low-risk choices
• Business is insular, political, bureaucratic
Healthy work for whole people07/04/201407/04/2014 15
Corporate Culture &
Performance
Performance Adaptive and Inclusive Insular and Controlling
(Period of 10 years) (12 companies) (20 companies)
Revenue growth 682% 166%
Employment growth 282% 36%
Share price growth 901% 74%
Net income growth 756% 1%
J. Kotter and J.L. Heskett, Harvard Business School, Corporate
Culture and Performance, Free Press, New York, 1992
Healthy work for whole people07/04/201407/04/2014
J. Collins, J. Porras, Built to Last, Century, Random House, 1995
16
Built to Last - Companies
18 most admired
and visionary
companies
18 runners-up
in the same
sector
3M Norton
American Express Wells Fargo
Boeing McDonald Douglas
Citicorp Chase Manhattan
Ford GM
GE Westinghouse
Hewlett Packard Texas Instruments
IBM Burroughs
Johnson & Johnson Bristol-Myers-Squibb
18 most admired
and visionary
companies
18 runners-up
in the same
sector
Marriott Howard Johnson
Merck Pfizer
Motorola Zenith
Nordstrom Melville
Phillip Morris RJR Nabisco
Procter and Gamble Colgate
Sony Kenwood
Wal-Mart Ames
Disney Columbia
Av. founding date
1897
1892
Healthy work for whole people07/04/201407/04/2014
• It takes a great idea to start a company.
• Visionary companies require great and charismatic visionary leaders.
• The most successful companies exist first and foremost to maximise
profits.
• Visionary companies share a common subset of ‘correct’ core values.
• The only constant is change.
• Blue-chip companies play it safe.
• Visionary companies are great places to work for everyone.
• Highly successful companies make their best moves by brilliant strategic
planning.
• Companies should hire outside CEOs to stimulate fundamental change.
• The most successful companies focus primarily on beating the competition.
• You can’t have your cake and eat it too.
• Companies become visionary primarily through vision statements.
17
Built to Last Myths
J. Collins, J. Porras, Built to Last, Century, Random House, 1995
Healthy work for whole people07/04/201407/04/2014
J. Collins, J. Porras, Built to Last, Century, Random House, 1995
18
Built to Last - Performance
0
1000
2000
3000
4000
5000
6000
7000
Stock market
average
Comparison
companies
Visionary
companies
Cumulative stock return from $1 invested from
1st Jan 1926 to 31st Dec 1990
Healthy work for whole people07/04/201407/04/2014
• Clock building, not time telling.
• No tyranny of the ‘or’.
• More than profits.
• Preserve the core and stimulate progress.
• Big hairy audacious goals.
• Cult-like cultures.
• Try a lot of stuff and keep what works.
• Home-grown management.
• Good enough never is.
19
Built to Last Lessons
J. Collins, J. Porras, Built to Last, Century, Random House, 1995
Healthy work for whole people07/04/201407/04/2014 20
Good-To-Great Criteria
-15 -10 -5 0 +5 +10 +15
1
5
3
7
1.0 = Market baseline
Direct comparison
companies
Years from transition
Ratio of
cumulative
stock returns to
general market
Good-to-Great companies
• 15 years cumulative stock returns at
or below the market average
• Transition point
• Cumulative returns at least 3 times
the market over the net 15 years.
J. Collins, Good To Great, Random House, 2001
Healthy work for whole people07/04/201407/04/2014 21
The Good-To-Great Study Set
Good-to-Great Companies
Abbott
Circuit city
Fannie Mae
Gillette
Kimberly-Clark
Kroger
Nucor
Philip Morris
Pitney Bowes
Walgreens
Wells Fargo
Direct Comparisons
Upjohn
Silo
Great Western
Warner-Lambert
Scott Paper
A&P
Bethlehem Steel
R.J. Reynolds
Addressograph
Eckerd
Bank of America
Un-sustained Comparisons
Burroughs, Chrysler, Harris, Hasbro, Rubbermaid, Teledyne
J. Collins, Good To Great, Random House, 2001
Healthy work for whole people07/04/201407/04/2014 22
Good-To-Great Findings
1. Level 5 leadership
2. First who… then what
3. Confront the brutal facts (Yet never lose faith)
4. Hedgehog concept (Simplicity within the 3
circles)
5. A culture of discipline
6. Technology accelerators
7. The flywheel and doom loop
J. Collins, Good To Great, Random House, 2001
Healthy work for whole people07/04/201407/04/2014 23
Good-To-Great Model
Disciplined People
•Level 5 leadership
•First who….then what
Disciplined Thought
•Confront the brutal
facts
•Hedgehog concept
Disciplined action
•Culture of discipline
•Technology
accelerators
Build up…..
Flywheel
J. Collins, Good To Great, Random House, 2001
Healthy work for whole people07/04/201407/04/2014 24
Evergreen Project - What Really
Works
Nohria, Joyce and Robertson
Strategy
Systems Culture
Purpose
Aims
Plan
Strategy
Ethics
Values
Spirit
Language
Motivation
Ethos
Leadership
Evaluation
Teamworking
Process
Systems
Technology
People Structure
Roles
Measurement
Communication
Reason
History
Origin
Knowledge
Practices
Rituals
Identity
1. STRATEGY
Strategy must be sharply defined,
clearly communicated and well
understood by employees,
customers partners and investors.
2. EXECUTION
There must be flawless
operational execution and never
disappoint customers.
4. STRUCTURE
The structure must reduce
bureaucracy and simplify work
3. CULTURE
The culture must hold high
expectations about performance.
Healthy work for whole people07/04/201407/04/2014
“Out of over 200 well-established management practices only a handful
have a significant impact on performance and produce superior results.
This is the finding of a ground-breaking five year study reported in the
Harvard Business Review (July 2003) What Really Works .”
At last there is research-based evidence to
Companies that consistently follow the 4+2 formula have a better than
90% chance of sustaining superior performance. Within a ten-year period
investors in the “winning” companies saw their investment multiply
almost tenfold: 945% for “winners” versus 62% for “losers”.
25
Evergreen Project - What Really
Works
Nohria, Joyce and Robertson
Healthy work for whole people07/04/201407/04/2014 26
Evergreen Project –
What Really Works
(Nohria, Joyce and Robertson)
FOUR SECONDARY MANAGEMENT PRACTICES
· TALENT - Organisations must retain talented people and develop more talent
· INNOVATION - Organisations must anticipate events to produce innovative products & services
· LEADERSHIP - Selecting great CEOs can improve performance significantly (15% variance on
profitability)
MERGERS AND PARTNERSHIPS - It is imperative to master mergers and acquisitions and integrate them
quickly.
All for of
these.
Plus any 2 out
of 4 of these.
Strategy
Systems Culture
Purpose
Aims
Plan
Strategy
Ethics
Values
Spirit
Language
Motivation
Ethos
Leadership
Evaluation
Teamworking
Process
Systems
Technology
People Structure
Roles
Measurement
Communication
Reason
History
Origin
Knowledge
Practices
Rituals
Identity
1. STRATEGY
Strategy must be sharply defined,
clearly communicated and well
understood by employees,
customers partners and investors.
2. EXECUTION
There must be flawless operational
execution and never disappoint
customers.
4. STRUCTURE
The structure must reduce
bureaucracy and simplify work
3. CULTURE
The culture must hold high
expectations about performance.
Healthy work for whole people07/04/201407/04/2014 27
Back-Up Slides
Healthy work for whole people07/04/201407/04/2014
According to the Hay Group’s What’s My
Motivation? report (October 2006) a finding for the
UK is that poor staff motivation is cutting
productivity by close to half. Just a fifth (21%) of
British workers consider themselves ‘very effective’
in their current job role. Employees believe that
they would be 28% more productive with better
training, and if they were doing a job they loved as
much as 45% more productive. A 28% increase in
employee productivity could be worth up to £212bn
added output per year to the UK service sector
alone, with a 45% increase worth some £340
billion.
28
Healthy work for whole people07/04/201407/04/2014
According to Vodafone UK’s latest Working Nation
report (July 2006), a UK-wide study into identity in
the workplace, workers are routinely changing
their identity when they clock on. This tendency
towards ‘Jekyll and Hyde’ behaviour is having a
damaging impact on careers and social lives. The
survey of over 2500 workers, employers and
entrepreneurs found that 58% of people change
their personality and identity to fit in at work.
Around 16 million (64%) employees don’t believe
in what their company stands for.
29
Healthy work for whole people07/04/201407/04/2014
• In a survey of 1000 people, 57% said they had
remained with their present employer because they
had a strong interest in what they did.
• Some 44% told City and Guilds they had stayed in a job
for the salary.
30
Healthy work for whole people07/04/201407/04/2014 31
Lucas SEI Wiring Systems Ltd
Key Performance Measure Improvements
Feb 1996 Feb 1997 Feb 1998
Labour efficiency 85% 97% 100%
Delivered quality ppm 200 132 18
Delivery error 10.00% 0.35% 0.13%
Kaizen ideas /person
p.a.
2.6 9.0 10.1
CST audit defects ppm 6000 2000 396
Stock/sales 10.5% 7.6% 5.8%
Stock accuracy 80% 98.0% 98.5%
Overtime directs 8.0% 3.0% 2.0%
Profitability 4.0% 10.0% 17.0%
Awards:
Most improved supplier (Rover)
Best cost down performance (Honda)
Healthy work for whole people07/04/201407/04/2014 32
 VISION
 PURPOSE
 MEANING
 BUSINESS GOALS
 TEAM TARGETS
 BUSINESS AWARE-
NESS
 BELONGING
 TEAM-WORKING
 COMMUNITY
 FAMILY LINKS
 CHARITY
 CARING
 SOCIAL AND
RECREATION
 HEALTH
 SAFETY
 WORKING
ENVIRONMENT
 SECURITY
 STIMULATION
 VARIETY
 PERSONAL
DEVELOPMENT
 TRAINING
 CREATIVITY
 RESPECT
 FEEDBACK
 RESPONSIBILITY
 CONTROL
 FUN
PHYSICAL
NEEDS
MENTAL
NEEDS SOCIAL
NEEDS
HIGHER
MEANING
AN
ENERGISED
COMPANY
Healthy work for whole people07/04/201407/04/2014 33
Alignment To Ones
Surroundings
Mind
Body Spirit
Being
Events, Changes and Trends
Impacts, Tasks and
Demands
Culture
and Nature
Situation
Person Environment
Social and Natural
Mirror
Healthy work for whole people07/04/201407/04/2014 34
Balancing Your Life To Form
A Healthy Whole
Career
Development
Social
Hobbies
Fitness
and
Relaxation
Family
Community
Service
Close
Friends
Work Marriage
Faith Life
We can flesh out
a personal
Tricord for each
aspect and test
their alignment
Healthy work for whole people07/04/201407/04/2014 35
Personal Change
Discordant Life Healthy and Whole Life
Transformation
Mind
Body Spirit
Being
Mind
Body Spirit
Being
Healthy work for whole people07/04/201407/04/2014 36
Dimensions of Personal
Growth and Balance
Mind
Body Spirit
Being
Productive
Relationships
Healthy work for whole people07/04/201407/04/2014 37
Slide from Phil Hanson

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Pp slide set 2 healthy work for whole people

  • 1. Healthy work for whole people07/04/2014 Healthy work for whole people07/04/2014 1 Healthy Work for Whole People
  • 2. Healthy work for whole people07/04/201407/04/2014 • ‘People are our Most Important Asset’ – Why the Cynicism? • What comes first around here? • What matters in a crisis? • The HR Manager’s Dilemma • Do the ‘Healthiest’ Organisations provide the Healthiest Jobs? 2 Healthy Work for Whole People
  • 3. Healthy work for whole people07/04/201407/04/2014 • Sir Michael Marmot • Professor of Epidemiology Studies, UCL • Study of health inequalities in the West • 35 years’ research • Principal investigator - Whitehall II studies 3 Social Gradients & Health Bloomsbury, 2005
  • 4. Healthy work for whole people07/04/201407/04/2014 The picture shows a bar- graph from the Whitehall Study: "CHD MORTALITY BY GRADE: WHITEHALL MEN." From left to right, the bars show the relative mortality rates in "Admin," "Prof/Exec," "Clerical" and "Other" job classifications. Blue bars are adjusted for age; tan bars are adjusted for risk factors such as smoking, cholesterol levels, etc. – (Marmot/Lancet 1984) 4
  • 5. Healthy work for whole people07/04/201407/04/2014 • Employment is insecure • Work is monotonous and repetitive • Workers have little or no autonomy, control and task discretion • There is an imbalance between effort and reward so that workers felt exploited or ‘taken for granted’ • There was an absence of procedural justice in the workplace. 5 Employees will Experience Worse Health if:
  • 6. Healthy work for whole people07/04/201407/04/2014 6 Whole Person Model Mind Body Spirit Being
  • 7. Healthy work for whole people07/04/201407/04/2014 Mind Body Spirit Will Purpose Aims Plan Strategy Ethics Values Personality Attitudes Character Motivation Ethos Energy Physical Body Intellect Skills Abilities Person Identity Family Community Relationships Life Experiences Beliefs Knowledge Being 7 The Personal Tricords
  • 8. Healthy work for whole people07/04/201407/04/2014 8 Mind Body Spirit Being • Physical exercise • Provided with right tools and equipment • Good working conditions • Good health and safety • Job security • Fair remuneration • Inspiration • Motivation • Teamwork • Leadership • Coaching • Evaluation • Feedback • Learning • Ethical values • Objectives • Interest • Creativity • Use of imagination • Responsibility • Mental exercise • Identity • Relationships • Belonging • Community • Forgiveness • Recognition • Appreciation The Work Needs of Whole People
  • 9. Healthy work for whole people07/04/201407/04/2014 9 Whole Work For Healthy People Mind Body Spirit Being • Physical exercise • Provided with right tools and equipment • Good working conditions • Good health and safety • Job security • Fair remuneration • Inspiration • Motivation • Teamwork • Leadership • Coaching • Evaluation • Feedback • Learning • Ethical values • Objectives • Interest • Creativity • Use of imagination • Responsibility • Mental exercise • Identity • Relationships • Belonging • Community • Forgiveness • Recognition • Appreciation Plan LearnDeliver Strategy Systems Culture Purpose Aims Plan Strategy Ethics Values Spirit Language Motivation Ethos Leadership Evaluation Teamworking Process Systems Technology People Structure Roles Measurement Communication Reason History Origin Knowledge Practices Rituals Identity
  • 10. Healthy work for whole people07/04/201407/04/2014 10 © Copyright Tricordant Ltd, 2006 1 2 3 4 5 1 Purpose and value My team's work has little value or purpose. It doesn't seem very worthwhile. My team's work is meaningful and valuable. We understand the purpose of our work. 2 Plans and Objectives My team doesn't have a plan. We don't have any set objectives and we don't know what is really expected of us. My team has a clear plan and set of objectives. People know what is expected of them. 3 Interest In our team the work is boring and dull. In our team we find the work interesting and often fun. 4 Creativity We are prevented from being creative and using our imagination. We have many opportunities to be creative and are encoraged to use our imagination. 5 Responsibility People are given little responsibility and are told exactly what to do. People are empowered and are given new responsibilities. 6 Physical stress Jobs here are physically tiring and stressful. Our work provides good physical exercise without being over demanding. 7 Mental stress Jobs here are mentally tiring and stressful. Our work provides good mental exercise without being over demanding. 8 Tools and Equipment Our team has inadequate tools and equipment to do the job properly. Our team have the right tools and equipment to do a good job. 9 Working Environment The working environment is poor here and employee facilities are inadequate. The working environment and employee facilities are good here. 10 Health and Safety The organisation cares little about the safety and welfare of its staff. It does not take health and safety seriously. The organisation cis concerned about the wellbeing of its employees and takes seriously all aspects of health and safety. Body Tick column 1 if you fully agree with the first statement on the left. Tick column 5 if you fully agree with the second statement on the right. If the truth is somewhere in the middle tick column 2, 3 or 4 to indicate where the truth lies in between. Mind Whole Systems Health Check
  • 11. Healthy work for whole people07/04/2014 Healthy work for whole people07/04/2014 11 Organisational Health
  • 12. Healthy work for whole people07/04/201407/04/2014 • J. Kotter and J.L. Heskett, Corporate Culture and Performance, Free Press, New York, 1992 • J. Collins, J. Porras, Built to Last, Century, Random House, 1995 • J. Collins, Good To Great, Random House, 2001 • Nohria, Joyce and Robertson, What Really Works, HBR, July 2003 12 Major Evidence-Based Research Studies On Sustainable Company Performance
  • 13. Healthy work for whole people07/04/201407/04/2014 Adaptive and Inclusive Culture • American Airlines • Bankers Trust • Anheuser-Busch • PepsiCo • Hewlett-Packard • ConAgra • Shell • Albertson's • Dayton Hudson • Wal-Mart • Golden West • Springs Industries 13 Corporate Culture & Performance Insular and Controlling Culture • H.F. Ahmanson • Avon • BankAmerica • Citicorp • Coors • Eastern Airlines • Fieldcrest Cannon • First Chicago • Ford • General Motors • Goodyear • K Mart • Kroger • Navistar • Northwest Airlines • Pan Am • J.C. Penny • Sears • Texaco • Xerox J. Kotter and J.L. Heskett, Harvard Business School, Corporate Culture and Performance, Free Press, New York, 1992
  • 14. Healthy work for whole people07/04/201407/04/2014 14 Corporate Culture & Performance Adaptive and Inclusive • Managers’ focus is on serving equitably – Customers – All employees – Shareholders • Managers develop leadership skills • Leaders coach people through constant change • Business is adaptive to external market changes Insular and Controlling • Managers’ focus is on protecting – Themselves – Their work group • Managers value orderly control • Managers prefer low-risk choices • Business is insular, political, bureaucratic
  • 15. Healthy work for whole people07/04/201407/04/2014 15 Corporate Culture & Performance Performance Adaptive and Inclusive Insular and Controlling (Period of 10 years) (12 companies) (20 companies) Revenue growth 682% 166% Employment growth 282% 36% Share price growth 901% 74% Net income growth 756% 1% J. Kotter and J.L. Heskett, Harvard Business School, Corporate Culture and Performance, Free Press, New York, 1992
  • 16. Healthy work for whole people07/04/201407/04/2014 J. Collins, J. Porras, Built to Last, Century, Random House, 1995 16 Built to Last - Companies 18 most admired and visionary companies 18 runners-up in the same sector 3M Norton American Express Wells Fargo Boeing McDonald Douglas Citicorp Chase Manhattan Ford GM GE Westinghouse Hewlett Packard Texas Instruments IBM Burroughs Johnson & Johnson Bristol-Myers-Squibb 18 most admired and visionary companies 18 runners-up in the same sector Marriott Howard Johnson Merck Pfizer Motorola Zenith Nordstrom Melville Phillip Morris RJR Nabisco Procter and Gamble Colgate Sony Kenwood Wal-Mart Ames Disney Columbia Av. founding date 1897 1892
  • 17. Healthy work for whole people07/04/201407/04/2014 • It takes a great idea to start a company. • Visionary companies require great and charismatic visionary leaders. • The most successful companies exist first and foremost to maximise profits. • Visionary companies share a common subset of ‘correct’ core values. • The only constant is change. • Blue-chip companies play it safe. • Visionary companies are great places to work for everyone. • Highly successful companies make their best moves by brilliant strategic planning. • Companies should hire outside CEOs to stimulate fundamental change. • The most successful companies focus primarily on beating the competition. • You can’t have your cake and eat it too. • Companies become visionary primarily through vision statements. 17 Built to Last Myths J. Collins, J. Porras, Built to Last, Century, Random House, 1995
  • 18. Healthy work for whole people07/04/201407/04/2014 J. Collins, J. Porras, Built to Last, Century, Random House, 1995 18 Built to Last - Performance 0 1000 2000 3000 4000 5000 6000 7000 Stock market average Comparison companies Visionary companies Cumulative stock return from $1 invested from 1st Jan 1926 to 31st Dec 1990
  • 19. Healthy work for whole people07/04/201407/04/2014 • Clock building, not time telling. • No tyranny of the ‘or’. • More than profits. • Preserve the core and stimulate progress. • Big hairy audacious goals. • Cult-like cultures. • Try a lot of stuff and keep what works. • Home-grown management. • Good enough never is. 19 Built to Last Lessons J. Collins, J. Porras, Built to Last, Century, Random House, 1995
  • 20. Healthy work for whole people07/04/201407/04/2014 20 Good-To-Great Criteria -15 -10 -5 0 +5 +10 +15 1 5 3 7 1.0 = Market baseline Direct comparison companies Years from transition Ratio of cumulative stock returns to general market Good-to-Great companies • 15 years cumulative stock returns at or below the market average • Transition point • Cumulative returns at least 3 times the market over the net 15 years. J. Collins, Good To Great, Random House, 2001
  • 21. Healthy work for whole people07/04/201407/04/2014 21 The Good-To-Great Study Set Good-to-Great Companies Abbott Circuit city Fannie Mae Gillette Kimberly-Clark Kroger Nucor Philip Morris Pitney Bowes Walgreens Wells Fargo Direct Comparisons Upjohn Silo Great Western Warner-Lambert Scott Paper A&P Bethlehem Steel R.J. Reynolds Addressograph Eckerd Bank of America Un-sustained Comparisons Burroughs, Chrysler, Harris, Hasbro, Rubbermaid, Teledyne J. Collins, Good To Great, Random House, 2001
  • 22. Healthy work for whole people07/04/201407/04/2014 22 Good-To-Great Findings 1. Level 5 leadership 2. First who… then what 3. Confront the brutal facts (Yet never lose faith) 4. Hedgehog concept (Simplicity within the 3 circles) 5. A culture of discipline 6. Technology accelerators 7. The flywheel and doom loop J. Collins, Good To Great, Random House, 2001
  • 23. Healthy work for whole people07/04/201407/04/2014 23 Good-To-Great Model Disciplined People •Level 5 leadership •First who….then what Disciplined Thought •Confront the brutal facts •Hedgehog concept Disciplined action •Culture of discipline •Technology accelerators Build up….. Flywheel J. Collins, Good To Great, Random House, 2001
  • 24. Healthy work for whole people07/04/201407/04/2014 24 Evergreen Project - What Really Works Nohria, Joyce and Robertson Strategy Systems Culture Purpose Aims Plan Strategy Ethics Values Spirit Language Motivation Ethos Leadership Evaluation Teamworking Process Systems Technology People Structure Roles Measurement Communication Reason History Origin Knowledge Practices Rituals Identity 1. STRATEGY Strategy must be sharply defined, clearly communicated and well understood by employees, customers partners and investors. 2. EXECUTION There must be flawless operational execution and never disappoint customers. 4. STRUCTURE The structure must reduce bureaucracy and simplify work 3. CULTURE The culture must hold high expectations about performance.
  • 25. Healthy work for whole people07/04/201407/04/2014 “Out of over 200 well-established management practices only a handful have a significant impact on performance and produce superior results. This is the finding of a ground-breaking five year study reported in the Harvard Business Review (July 2003) What Really Works .” At last there is research-based evidence to Companies that consistently follow the 4+2 formula have a better than 90% chance of sustaining superior performance. Within a ten-year period investors in the “winning” companies saw their investment multiply almost tenfold: 945% for “winners” versus 62% for “losers”. 25 Evergreen Project - What Really Works Nohria, Joyce and Robertson
  • 26. Healthy work for whole people07/04/201407/04/2014 26 Evergreen Project – What Really Works (Nohria, Joyce and Robertson) FOUR SECONDARY MANAGEMENT PRACTICES · TALENT - Organisations must retain talented people and develop more talent · INNOVATION - Organisations must anticipate events to produce innovative products & services · LEADERSHIP - Selecting great CEOs can improve performance significantly (15% variance on profitability) MERGERS AND PARTNERSHIPS - It is imperative to master mergers and acquisitions and integrate them quickly. All for of these. Plus any 2 out of 4 of these. Strategy Systems Culture Purpose Aims Plan Strategy Ethics Values Spirit Language Motivation Ethos Leadership Evaluation Teamworking Process Systems Technology People Structure Roles Measurement Communication Reason History Origin Knowledge Practices Rituals Identity 1. STRATEGY Strategy must be sharply defined, clearly communicated and well understood by employees, customers partners and investors. 2. EXECUTION There must be flawless operational execution and never disappoint customers. 4. STRUCTURE The structure must reduce bureaucracy and simplify work 3. CULTURE The culture must hold high expectations about performance.
  • 27. Healthy work for whole people07/04/201407/04/2014 27 Back-Up Slides
  • 28. Healthy work for whole people07/04/201407/04/2014 According to the Hay Group’s What’s My Motivation? report (October 2006) a finding for the UK is that poor staff motivation is cutting productivity by close to half. Just a fifth (21%) of British workers consider themselves ‘very effective’ in their current job role. Employees believe that they would be 28% more productive with better training, and if they were doing a job they loved as much as 45% more productive. A 28% increase in employee productivity could be worth up to £212bn added output per year to the UK service sector alone, with a 45% increase worth some £340 billion. 28
  • 29. Healthy work for whole people07/04/201407/04/2014 According to Vodafone UK’s latest Working Nation report (July 2006), a UK-wide study into identity in the workplace, workers are routinely changing their identity when they clock on. This tendency towards ‘Jekyll and Hyde’ behaviour is having a damaging impact on careers and social lives. The survey of over 2500 workers, employers and entrepreneurs found that 58% of people change their personality and identity to fit in at work. Around 16 million (64%) employees don’t believe in what their company stands for. 29
  • 30. Healthy work for whole people07/04/201407/04/2014 • In a survey of 1000 people, 57% said they had remained with their present employer because they had a strong interest in what they did. • Some 44% told City and Guilds they had stayed in a job for the salary. 30
  • 31. Healthy work for whole people07/04/201407/04/2014 31 Lucas SEI Wiring Systems Ltd Key Performance Measure Improvements Feb 1996 Feb 1997 Feb 1998 Labour efficiency 85% 97% 100% Delivered quality ppm 200 132 18 Delivery error 10.00% 0.35% 0.13% Kaizen ideas /person p.a. 2.6 9.0 10.1 CST audit defects ppm 6000 2000 396 Stock/sales 10.5% 7.6% 5.8% Stock accuracy 80% 98.0% 98.5% Overtime directs 8.0% 3.0% 2.0% Profitability 4.0% 10.0% 17.0% Awards: Most improved supplier (Rover) Best cost down performance (Honda)
  • 32. Healthy work for whole people07/04/201407/04/2014 32  VISION  PURPOSE  MEANING  BUSINESS GOALS  TEAM TARGETS  BUSINESS AWARE- NESS  BELONGING  TEAM-WORKING  COMMUNITY  FAMILY LINKS  CHARITY  CARING  SOCIAL AND RECREATION  HEALTH  SAFETY  WORKING ENVIRONMENT  SECURITY  STIMULATION  VARIETY  PERSONAL DEVELOPMENT  TRAINING  CREATIVITY  RESPECT  FEEDBACK  RESPONSIBILITY  CONTROL  FUN PHYSICAL NEEDS MENTAL NEEDS SOCIAL NEEDS HIGHER MEANING AN ENERGISED COMPANY
  • 33. Healthy work for whole people07/04/201407/04/2014 33 Alignment To Ones Surroundings Mind Body Spirit Being Events, Changes and Trends Impacts, Tasks and Demands Culture and Nature Situation Person Environment Social and Natural Mirror
  • 34. Healthy work for whole people07/04/201407/04/2014 34 Balancing Your Life To Form A Healthy Whole Career Development Social Hobbies Fitness and Relaxation Family Community Service Close Friends Work Marriage Faith Life We can flesh out a personal Tricord for each aspect and test their alignment
  • 35. Healthy work for whole people07/04/201407/04/2014 35 Personal Change Discordant Life Healthy and Whole Life Transformation Mind Body Spirit Being Mind Body Spirit Being
  • 36. Healthy work for whole people07/04/201407/04/2014 36 Dimensions of Personal Growth and Balance Mind Body Spirit Being Productive Relationships
  • 37. Healthy work for whole people07/04/201407/04/2014 37 Slide from Phil Hanson