Leading Culture Change in Global Organizations Part II Crossing Borders

656 views

Published on

Leading Culture Change in Global Organizations
Part II
Crossing Borders

Published in: Business, Education
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
656
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
12
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • Dan Introduces the book
  • Sharing key insights from his newest book — Leading Culture Change in Global Organizations: Aligning Culture & Strategy — Dan Denison, Chairman and Founding Partner of Denison Consulting, will examine the approaches that successful companies have used to implement culture change in their organizations, and the cultural dynamics they need to manage in order to remain competitive.
  • Katrina shows website and explains features. First features  shows video
  • Explains EXCLUSIVE dealsSweeten Pie: If you buy now  ½ hour live webcast***Must be used within one year
  • Sharing key insights from his newest book — Leading Culture Change in Global Organizations: Aligning Culture & Strategy — Dan Denison, Chairman and Founding Partner of Denison Consulting, will examine the approaches that successful companies have used to implement culture change in their organizations, and the cultural dynamics they need to manage in order to remain competitive.
  • Leading Culture Change in Global Organizations Part II Crossing Borders

    1. 1. Webcast Series: Part II Crossing Borders Daniel Denison Denison Consulting Ann Arbor, Michigan IMD Business School Lausanne, Switzerland
    2. 2. “A milestone in the culture studies arena.” -Edgar H. Schein Daniel Denison’s newest book illuminates the cultural dynamics firms need to manage in order to remain competitive, including: • Supporting the front line • Creating strategic alignment • Creating one culture out of many • Exporting culture change • Building a global business in an emerging market • Building a global business from an emerging market Available June 26, 2012!
    3. 3. Leading Culture Change in Global Organizations: Special 3-Part Webinar Series Part I: Getting Your Own House In Order May 31, 2012 11:00 am – 12:00 pm EDT This webcast will focus on Supporting the Front Line and Creating Strategic Alignment by exploring successful change initiatives. Part II: Crossing Borders June 28, 2012 11:00 am - 12:00 pm EDT This webcast explores the challenges companies face in ’Crossing Borders’ to build effective cultures. Part III: Emerging Markets July 19, 2012 11:00 am - 12:00 pm EDT Part III of this webinar series examines the challenges — and unique opportunities — of implementing culture change in an increasingly relevant context: Emerging Markets.
    4. 4. What Is It All About?Supporting the Front Line Domino’s PizzaCreating Strategic Alignment ”DeutscheTech” & Swiss ReCreating One Culture Out of Many “Polar Bank”Exporting Culture Change Across National Boundaries ”GT Automotive”Building a Global Business in an Emerging Market GE Healthcare ChinaBuilding a Global Business from an Emerging Market Vale
    5. 5. Changing Culture By Changing Rituals, Habits & RoutinesGood Preserve Invent & & Strengthen PerfectBad Unlearn Rethink & & Leave Behind Try Again Old New
    6. 6. Culture Reflects the Lessons Learned Over Time Visible Symbols Lessons Culture Survival Underlying Principles
    7. 7. The Rain Dance
    8. 8. The Cargo Cult
    9. 9. Sacred Cows Make the Best Burgers Mark Twain
    10. 10. How Habits Work Routine Cue RewardCharles Duhigg, The Power of Habit
    11. 11. Brain Activity in RatsCharles Duhigg, The Power of Habit
    12. 12. Brain Activity in Rats: The Learning Phase Cue Routine RewardCharles Duhigg, The Power of Habit
    13. 13. Brain Activity in Rats: The Routine Tacit Knowledge Cue Routine Reward Run straight, hang a left, eat the chocolate!Charles Duhigg, The Power of Habit
    14. 14. Paul O’Neill at Alcoa: Identifying Keystone Habits It got so bad they would bring dummies to the parking lots, dress them like managers, and burn them in effigy. ―Alcoa was not a happy family. It was like the Charles Manson family, but with the addition of molten metal.‖ O’Neill picked safety as one thing that unions and executives could agree on. Zero injuries. Injuries must be reported to the CEO within 24 hours. ―We killed this man. It’s my failure of leadership. I caused his death. And it is the failure of all of you in the chain of command‖ Once you see everything as a bunch of habits, it’s like someone gave you a flashlight and a crowbar and you can get to work.
    15. 15. Polar Bank
    16. 16. Polar Bank• Three entities: retail, project finance and private banking• Three countries: Sweden, Norway and Denmark• Industry that is consolidating• You want to control your destiny• One strong, synergistic culture will help you achieve that
    17. 17. 2004 Culture Survey Results
    18. 18. Taking Action• You are the CEO of Polar Bank• The 2004 results are your results.• You want the retail, project finance and private banking entities to act as one bank.• What do you do?
    19. 19. Creating the Polar Bank Vision Created Strategy workshops  Debated strategy  Drilled down on issues  Focused on what the units could accomplish together Involved retail managers in the debate on public project finance strategy and vice versa. Created one board for each of the three units as well as the overall company Communicated importance of strategy and vision  Made many speeches and site visits  Used metaphors and popular culture Made Strategy Consistent Acquisition Agreed on Polar Bank values  Ambition; Passion; and Teamwork
    20. 20. Cascading the Vision & Strategy Leadership Development and Educational Initiatives  Designed Leadership competencies model  Customer Orientation; Vision; Innovation; People Management; and Cross-boundary collaboration  Developed Leadership Program for senior executives with IMD  Worked on their leadership skills  Reflected on how to embed the leadership vision into Polar Bank  Rolled out 360-degree feedback program to support the leadership vision  Board received first feedback  450 managers have since received feedback Innovation  Set up clear innovation process and awarded first Innovation Award in June 2006
    21. 21. Assessing the Impact Implemented a performance evaluation system that supported the vision and strategy Included leadership development objectives with links to bonuses for the Top 100 managers.
    22. 22. 2006 Culture Survey Results
    23. 23. 2004-2006Culture Survey Results
    24. 24. Lessons Learned: Polar Bank Intervene at the level of the governance structure. When you have major business units (BU) with strong and unique cultures, temporarily making their identical facilitates the transmission of consistent messages about the new strategy and culture. Engage the different units actively in each other’s strategy development process. When striving to achieve one overall company culture, it is necessary that the different business units understand each others’ strategies Institute a job rotation process. Spreading best practices and building connections across the BUs is facilitated by job rotation. Make HR decisions on those managers who do not align with the new strategy relatively quickly. On the one hand it is important to give people a voice. On the other hand, if they are not on board with the change in a reasonable amount of time and they remain critical, it is time for them to part ways with the company. Allocate resources in line with the new overall strategy Budget allocation is an important tool to align operational decisions with the strategy. Align performance evaluation system to reflect new strategy. The performance evaluation system should be designed so that the behaviors that are aligned with the new, desired culture are rewarded.
    25. 25. GT Automotive
    26. 26. GT Automotive• Over $2.9 Billion sales and 16,000 employees in 27 countries• Three major automotive businesses  Brake & Fuel Fluid Carrying Systems  Fuel Systems  HVAC Fluid Carrying Systems (smallest and focus of this case)• HVAC (Heating, Ventilation & Air Conditioning): 3000 employees  $200 million sales  Over 95% sales in NA and EU  Small presence in SA and new presence in Asia  Case A: Transforming a Corporate Culture (North America)  Case B: Building a Global Team (Europe)
    27. 27. Initial North America Culture Issues• S&H Fabrication (HVAC) was acquired by GT in 1998• Culture change initiated in 2003 • New VP & General Mgr. (ninth leader in 5 yrs.)• Feedback from long service (over 15 yr.) employees  Innovative and entrepreneurial culture of S&H replaced by slow, bureaucratic structure of TI Automotive  Management not interested in HVAC  Frustrated with implementing TI procedures and TI personnel would not listen to their concerns and recommendations  “We are the red-headed step child of TI”  Concerned about the future due to limited progress diversifying the customer base (95% GM) and recent personnel reduction.
    28. 28. 2003 Survey Results
    29. 29. From From Analysis to Action Priority Structure1. Involvement Involvement Meetings identify issues2. Teamwork Business Teams take action
    30. 30. Involvement Meetings: Initial Implementation• Involved most salaried employees in North America• First Meeting • Reviewed Survey Results: Identified top 3 improvements and specific actions to support • TOP 3: Vision, Strategy, Change • Defined initial HVAC Vision• Second Meeting • Status report on Denison improvement progress • Reviewed HVAC Strategy and defined revisions • Defined HVAC objectives for following year
    31. 31. Business Teams• Cross-functional teams defined and empowered to support our HVAC Vision.• Two types of teams exist: • Customer teams: regional and/or global (Ford, GM, Chrysler,…) • Non-customer / support teams: regional and/or global (Purchasing, Technology)• Business teams drive final definition and implementation of HVAC strategies, priorities and supporting objectives• Teams openly share information within their team and, where appropriate, across the regional / global organization• Business teams possess complete responsibility and authority to constructively complete their objectives• Business teams clearly identify when management support is necessary
    32. 32. 2003-2004 Survey Results HVAC North America2003 2004
    33. 33. Building A Global Team
    34. 34. 2004 European Survey Results
    35. 35. European Survey Results 2004-2005
    36. 36. Common Themes For Culture Change North America & Europe• Initiation of team structures (business teams)• Alignment of vision, strategy, objectives & rewards• Implementation of Denison survey & formal action planning• Involvement meetings & business team meetings• Establishment of extensive capability development system• Extensive reward and recognition systems• Regular communication and team activities
    37. 37. www.LeadingCultureChange.com
    38. 38. Special Offers Denison Consulting clients who bulk order LeadingCulture Change in Global Organizations can receive these exclusive, limited-time offers! Free, in- 25 Books 300 Books FREE 100 Books Free, live person Denison webcast by speaking Consulting Dan event by e-Workshop Denison Dan Denison Estimated final price per book: $30.00
    39. 39. Leading Culture Change in Global Organizations: Special 3-Part Webinar SeriesPart I: Getting Your Own House In OrderMay 31, 2012 11:00 am – 12:00 pm EDTThis webcast will focus on Supporting the Front Line and CreatingStrategic Alignment by exploring successful change initiatives.Part II: Crossing BordersJune 28, 2012 11:00 am - 12:00 pm EDTThis webcast explores the challenges companies face in ’CrossingBorders’ to build effective cultures.Part III: Emerging MarketsJuly 19, 2012 11:00 am - 12:00 pm EDTPart III of this webinar series examines the challenges — andunique opportunities — of implementing culture change in anincreasingly relevant context: Emerging Markets.

    ×