Post on 02-Jan-2016
Welcome to the
Denison Certification Workshop
Building and Sustaining High Performing
Organizations and Leaders
Workshop Agenda
October 15, 2014NETWORKING BREAKFAST
Welcome and Introductions
Culture & leadership: A driver of performance Why culture Path to High Performance
The Denison Model and the culture - performance Link
Applying the Model & Process Assessment process Leading the culture conversation
Business case studies Mergers & Acquisitions Due diligence Transformation
Breaks and Lunch Provided
GROUP DINNER AT THE EARLE RESTAURANT
October 16, 2014NETWORKING BREAKFAST
Highlights and re-cap of Day 1
Linking Culture & Leadership
Application
Business Case Studies
Additional leadership diagnostic tools
Additional Information
Breaks and Lunch Provided
Conclusion
“The bottom line for leaders is if they do not become conscious of the cultures in which they are embedded, those cultures will manage them. Cultural understanding is desirable for all of us, but it is essential to leaders if they are to lead.”
Edgar Schein, Ph.D., Former Professor at MIT and recognized
authority in the field of Organizational Culture and Leadership
Mindset is the Foundation
Norms, Behaviorsand Artifacts. Visible, tangible.
Personal Valuesand Attitudes.Less visible, but can be talked about.
Cultural Values and Assumptions.Usually not visible at all, often held subconsciously, rarely (if ever) questioned in everyday life.
Image by R.A. Clevenger
Culture Reflects the Lessons Learned Over Time
Image by R.A. Clevenger
Lessons SurvivalCulture
Underlying Principles
Visible Symbols
Rituals, Habits, & Routines
We must make automatic and
habitual ... as many useful actions as
we can.
The more of the details of our daily
life we can hand over to the effortless
custody of automation, the more our
higher powers of mind will be set free
for their proper work.
William James
Hold Your Horses!
Morrison’s essay opens with a story of a young time & motion
expert trying to find a way to speed up artillery crews during
WWI, just after the fall of France. He watched one of the five-
man gun crews practicing in the field with their guns mounted on
trailers, towed behind their trucks. Puzzled by certain aspects of
their procedures, he took some slow-motion pictures of the
soldiers performing the loading, aiming, and firing routines.
When he ran these pictures over once or twice, he noticed
something that appeared odd to him. A moment before the
firing, two members of the gun crew ceased all activity and
came to attention for a three-second interval extending
throughout the discharge of the gun.
Since this seemed like quite a waste of time, and the young time
& motion expert really couldn’t make any sense of it, he asked
an old artillery colonel to look at the films to see if he could
explain this strange behavior.
The colonel, too, was puzzled. He asked to see the pictures
again. "Ah," he said when the performance was over, "I have it.
They are holding the horses.”
Elting Morrison, Gunfire at Sea
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.
Changing CultureBy Changing Rituals, Habits & Routines
Preserve&
Strengthen
Invent&
Perfect
Unlearn&
Leave Behind
Rethink&
Try Again
Good
Bad
Old New
Path to High Performance
Path to High
Performance
SustainableImprovement
Honest Conversation
“Why is culture important to the performance of your organization?”
Executive team alignment, commitment, and sponsorship
“How can we ensure effective and sustainable culture development?”
Detailed project and communication plans;
Role clarification
“What is your current state?”Data collection for a robust
understanding of the current state
“What is the impact?”Disciplined and intentional
culture development; progress towards higher performance
“How do we translate results into thoughtful actions?
Detailed action plans and priorities at different levels
“What is data telling us?”Integration and synthesis of
different sources of data
“How do we create common understanding?
Common understanding across the organization and clear priorities
What Counts…
Building human capability, ownership, and responsibility
“Are our people aligned and engaged?”
Adaptability Pattern, Trends, & Market
MissionDirection, Purpose,
& Blueprint
Defining a meaningful long-term direction
for the Company
“Do we know where we are going?”
Translating the demands of the business environment into action
“Are we listeningto the marketplace?”
InvolvementCommitment, Ownership, & Responsibility
ConsistencySystems,
Structures, & Processes
Defining the values& systems that are the
basis of a strong culture
“Does our system create leverage?”
MISSION
Creating Shared Vision: creating a clear and compelling vision of a future state
Defining Strategic Direction & Intent: understanding, developing and executing strategy
Defining Goals & Objectives: setting clear goals and tracking progress against those goals
CONSISTENCY
Managing Coordination & Integration:building effective working relationships with a range of colleagues & stakeholders across the organization
Working to Reach Agreement:engaging in effective problem solving and decision making
Defining Core Values: aligning the behavior of self and others in accordance with the Core Values
INVOLVEMENT
Developing Organizational Capability:developing employees to meet current and future organizational needs
Building Team Orientation:developing successful, effective teams
Empowering People:sharing information and communicating so that employees have the information they need to make informed decisions – the ability to make a difference
ADAPTABILITY
Creating Change:encouraging change and continuous improvement
Emphasizing Customer Focus:understanding customer needs - developing responsive, effective working relationships with customers
Promoting Organizational Learning:seeing continuous learning and innovation as critical to adapting and leading in a dynamic environment
Effective leaders and organizations are Externally AND Internally focused
Effective leaders and organizations focus on Flexibility AND Stability
Dynamic Tensions
Dynamic Tensions
Effective leaders and organizations balance
‘External Adaptation’ AND ‘Internal Integration’
Effective leaders and organizations offer
strong leadership AND involve their employees
Beliefs and Assumptions:The ‘GREY’ Area in the Middle of the Model
At the heart of every culture are a set of beliefs and assumptions – about the organization and its people; the leaders; the customers; competitors; the sector; etc.
Resolving cultural issues and making progress in the development of a high-performance culture often requires a thoughtful exploration of the underlying beliefs and assumptions.
Beliefs and Assumptions
Culture and Business Performance
· Innovation· Customer
Satisfaction
· Growth
· StablePerformance
Over Time· Profitability
ROI, ROS, ROE
· Operating Performance· Quality· Employee Satisfaction
Impact on Performance
Top 25%Bottom 25%
Return-on-Assets
Sales Growth
Market-to-Book Ratio
2.3%
1.4%
2.6
3.2%
23.1%
4
The higher the culture scores, the greater profitability, sales growth, & market value (based on a study of 130 firms; 2000-2010)
Comparison of EBITDA and Sales Growth for the Top vs. Bottom Half of Private Equity Portfolio Companies by Culture Scores
Avg. EBITDA Growth
Avg. Sales Growth
2%
-3%
10%
5%24
Another Example
Culture Causes Performance
1 Year
2 Years
In summary, culture comes first and serves as a driver
of subsequent performance levels.
When Is High Consistency Bad?
When Involvement is low, high Consistency will likely lower an organization’s performance.
The Denison Global Benchmark
1000+ organizations in the normative database
Robust industry representation
Benchmarks are stable across years (2000-2012)
International representation 50%+ of the respondents from outside the U.S. within the last
5 yrs 1/3 of headquarters outside of U.S.
The most stable, representative comparison group
Different Industries and different countries, on average, have very similar results to the global benchmark
Composites are available for many different industries, regions and countries
Why We Use Percentiles
3.94
3.78
3.59
3.46
3.21
3.04
2.81
Most employees are highly involved in their work
There is an ethical code that guides our behaviour and tells us right from wrong
Customer input directly influences our decisions
People work like they are part of a team
There is good alignment of goals across levels
Our vision creates excitement and motivation for our employees
It is easy to coordinate across different partsof the organization
86%
82%
86%
64%
57%
41%
40%
Survey Item Mean % Favorable Score (4s & 5s)
Den
ison
S
up
port
Participation Monitoring
PROJECT PHASES
COMMUNICATION Internal
Support & Alignment
Creating Awareness
Invitations & Participation
Information Roll-Out
Report Delivery
Project Specifications
Client Needs
Purpose
Technical Support
Personalization
Demographics & Reports
Reporting Strategy
Project Planning
Set-Up & Design
Administration
Reporting
Survey Development
Den
ison
S
up
port
Report Delivery
PROJECT PHASES
COMMUNICATION Internal
Support & Alignment
Creating Awareness
Invitations & Participation
Information Roll-Out
Change Monitor / Re-Survey
Project Specs
Client Needs
Purpose
Personalization
Tech & Business Support
Data Interpretation
Participation Monitoring
Survey Items
Demographics & Reports
Action Planning &
Implementation
Project Planning
Set-Up & Design
Administration
Reporting
Survey Development
• Context & Goals• How we help you achieve your goals?
• Open dialogue about entire process • Previous survey experience – good or
bad?• Support based on your specific needs
•Survey Population & Timelines
Den
ison
S
up
port
Report Delivery
PROJECT PHASES
COMMUNICATION Internal
Support & Alignment
Creating Awareness
Invitations & Participation
Information Roll-Out
Change Monitor / Re-Survey
Project Specs
Client Needs
Purpose
Tech & Business Support
Data Interpretation
Participation Monitoring
Personalization
Demographics & Reports
Action Planning &
Implementation
Project Planning
Set-Up & Design
Administration
Reporting
Survey Development
• Survey Link Personalization
• Demographic & Custom Questions
•Survey Development• Final review and approval
of survey link
Denison Survey: Content Modules
Engagement
Commitment
Innovation
Trust
Short instruments that may be added to the DOCS
Brief (5-6 items), reliable, and valid measures
Benchmarked against a database of organizations
Data reported in percentiles
Strengthens the value of information from the DOCS
Safety and Risk
management
NEW modules currently being piloted Better integration of “safety work” with
business performance
DOCS–Modules Link: Overview
Overlap
The DOCS provides some information about the topics
covered in the content modules
The DOCS Assesses a high
performance business culture
Identifies cultural strengths/weaknesses as they apply to organizational performance
Results are presented using the DOCS benchmark database
Content Modules
Supplement information provided by the DOCS with more targeted questions
Potential outcomes to a positive organizational culture
Results are presented using each module benchmark database
Den
ison
S
up
port
Participation Monitoring
PROJECT PHASES
COMMUNICATION Internal
Support & Alignment
Creating Awareness
Invitations & Participation
Information Roll-Out
Reporting Delivery
Project Specs
Client Needs
Purpose
Personalization
Technical Support
Survey Items
Demographics & Reports
Reporting Strategy
Project Planning
Set-Up & Design
Administration
Reporting
Survey Development
•Participation monitoring• Real-time updates• Targeted reminders• Overall response rate
• Technical support
Den
ison
S
up
port
Report Delivery
PROJECT PHASES
COMMUNICATION Internal
Support & Alignment
Creating Awareness
Invitations & Participation
Information Roll-Out
Reporting Delivery
Project Specs
Client Needs
Purpose
Personalization
Tech & Business Support
Participation Monitoring
Survey Items
Demographics & Reports
Reporting Strategy
Project Planning
Set-Up & Design
Administration
Reporting
Survey Development
•Who, what, where, when, etc…
• Priority level reporting
• Report delivery options
• Another opportunity to re-emphasize the purpose
Den
ison
S
up
port
Report Delivery
PROJECT PHASES
COMMUNICATION Internal
Support & Alignment
Creating Awareness
Invitations & Participation
Information Roll-Out
Reporting Delivery
Project Specs
Client Needs
Purpose
Personalization
Tech & Business Support
Participation Monitoring
Survey Items
Demographics & Reports
Reporting Strategy
Project Planning
Set-Up & Design
Administration
Reporting
Survey Development
•Support with communications throughout the process• Sample communications/plans• Example of best practices
Culture is a reflection of the collective
Culture data should do 3 things:
1. Drive honest conversations among the collective about ‘the way we do things around here’ that…
2. Lead to thoughtful actions and…
3. Results in higher performance
Average levels of performance
Mix of clarity & confusion
Lower levels of performance
Confusion & uncertainty
reigns
Higher levels of performance
High level of clarity & alignment
External and Internal Forces that have the ‘potential’ to create more
uncertainty and ambiguity
Leadership changes
Competition
Regulatory changes
Global & Local Economy
New technologies
Restructuring
Changes in Strategy/Focus
Changes in political environment
M&A
“Culture and leadership, when one examines them closely, are two sides of the
same coin and neither can really be understood by itself.”
5 Reasons to Develop the HABITof Leadership Development
1. To help an organization meet today’s business challenges – as well as the challenges of the future
2. To develop leaders who are capable of maximizing the performance of their employees
3. To demonstrate an organization’s commitment to high-performance and continuous improvement
4. To create an environment in which open communication and feedback is encouraged and employee empowerment is valued
5. To foster consistent leadership values, practices and behaviors throughout an organization
A Keystone Habit: 360 feedback as part of a Leadership Development
Strategy Who is the target of the development process?
Sr. Leadership Middle Managers Front-line management
Who will have access to the data? Leader only Leader and his/her Boss HR Others
A Keystone Habit: 360 feedback as part of a Leadership Development
Strategy How will the feedback be used?
Developmental purposes only Team development Performance appraisal (Not recommended)
How will development plans be created and executed? Expectations for the creation of a Development Plan Follow-up coaching support (from whom) Organizational resources available
Is there a communication plan in place? Purpose & goals Data collection details including timelines Confidentiality expectations Development plan development and implementation
The Leadership Global Benchmark
13,959 leaders included in the normative database
Representing over 900 companies and rated by over 206,000 bosses, peers, and direct reports
Wide variety of industries, job function, management level, and tenure represented
Benchmarks are stable across years
1 2 3 4 5 6 7
Strongly Disagre
e
Strongly Agree
360 Benchmarks
Scores in this area lead to Low percentile rankings when compared to the database of leaders.
Mean scores in the 5.5 to 5.8 range will place a leader around the 50th percentile on most indices.
360 Benchmarks
“But my people rated me about average!”
1 2 3 4 5 6 7
Strongly Disagre
e
Strongly Agree
Effective Leader
A recently hired president in the retail industry
Known for ability to increase sales, quality, and profits
Creative risk taker - pushes the envelope
Drives intense customer focus throughout organization
Viewed as having chairman of the board potential
Continuously sought out for high profile CEO positions
Self Combined Other
Less Effective Leader
A recently dismissed President in the retail industry
Tenure resulted in several years of declining sales and market share
Over-control a key problem
Failure to provide long term sense of direction led to lack of identity in the marketplace
Short term focus resulted in failure to meet changing customer requirements
Self Combined Other
High Potential Executive
Being groomed for CEO of major corporation
Always develops her direct reports who are constantly promoted
Known as extremely demanding and accepts nothing but top performance
No nonsense leader respected and admired by employees
THE organizational role model for high performance
Self Combined Other
Large Perception Gap
Manages by fear and intimidation
Always blames others for mistakes
Solid technical skills, but lacks basic management skills
High level of turnover in division
No awareness of negative impact on productivity of employees
Self Combined Other
OnDemand Leadership Development 360
The DLDS on demand!
Easily measure leadership effectiveness leveraging our online system
Leaders themselves1. Define and invite raters to participate2. Take the self survey3. Monitor4. Order report set
Culture SnapshotSo New Leaders Get The Whole Picture
Developed in partnership with Leader OnBoarding
Culture Snapshot
Purposeful, powerful diagnostic intervention for a New Leader
Administered to a select group of raters early in a New Leader’s tenure (2 weeks – 2 months)
A subset of the standard Denison Organizational Culture Survey (36 items plus 2 verbatims)
Helps a New Leader understand the culture of the new operation, that they will be leading
Engages key stakeholders to the New Leader’s operation in the assessment process
Culture Snapshot
Individual-level Increased probability of New Leader success Faster integration and performance Improved retention Increased employee satisfaction
Operational-level Reduced onboarding cost Higher probability of operational performance and New
Leader success Engages key stakeholders in the effort to increase
operational effectiveness
The Leadership Potential ReportThe Leadership Potential Report
The Leadership Potential Report
Scoring Key
The Leadership Potential Report
Multidimensional approach to leadership development
Combine personality and value traits with predicted potential leadership competencies
Individualized developmental recommendations Selection Development
The Leadership Potential Report
Based on Hogan’s three main assessments: Hogan Personality Inventory (HPI) Hogan Development Survey (HDS) Hogan Motives, Values and Preferences Inventory (MVPI)
30-45 minutes completion time
Hogan scores are mapped to Denison’s Leadership Development competencies
Reports generated through Hogan’s online platform
25 person Denison Organizational
Culture Survey Pilot
1 Person Leadership Development Survey
OR
Your pilot package includes the full survey of your choice, full report generation, and basic interpretation and
feedback on results from a Senior Denison Consultant.
Your Denison Pilot Package
Denison Organizational CultureSolutions Pricing
Denison Organizational Culture Solutions Package Project Options: Change Monitor survey Modules Available in 45 Languages
Download the complete OCS Pricing Sheet from the workshop portal.
Denison Leadership Development Solutions Pricing
Leadership Development 360 Package: Includes Change Monitor Survey and Reports Available in 16 Languages
Download the complete LDS Pricing Sheet from the workshop portal.
OnDemand Leadership Development 360: $195
Denison Leadership Development Solutions Pricing
Leader Onboarding Culture Snapshot $1,500 Up to 35 Raters Full report package
Denison Leadership Potential Report (DLPR) $295/report Based on three Hogan personality assessments HPI, HDS and MVPI
Solutions Essentials
Learning the Basics
Understanding Denison’s Solutions
Selling the Solutions
Sample Proposals
Preparing for the Survey
Interpreting the Results
Linking to Denison
And more……………..
Certificate of Participation
Those who complete the Workshop will be issued a certificate of participation in PPT and PDF formats, and an efile logo that can be posted to a website, email signature file, or any other online outlet you choose.
Trademark policies are in place and are expected to be honored when displaying your certificate of participation.
CONNECT with like-minded peers, Denison leadership, experienced practitioners, and acclaimed thought leaders.
LEARN from the challenges, insights and actions of leading organizations.
PARTICIPATE in thought-provoking dialogue.
BUILD your professional community and learning network.
EXPLORE different perspectives to your business challenges.
RSVP at www.denisonconsulting.com/
forum
For more than 10 years, Denison Consulting's Best Practices Forum has been the premier event for business leaders who seek to leverage culture and leadership as a source of competitive advantage. This annual gathering is a unique opportunity for like-minded executives to connect and collaborate with renowned thought leaders and Denison clients from industries across the globe.
Join us at the 2015 Denison Best Practices Forum to gain insights into:How your organization's culture drives key performance metrics such as ROE. ROA, Profitability, Market Share. and customer and employee satisfactionHow managing your company's culture makes or breaks your sales growth strategyWhy culture matters to key HR functions such as talent management, retention, onboarding, development, and performance measurement
Thought Leadership
Our Thought Leadership practice creates solutions to clients’ most challenging and complex questions… How do you build a culture that supports both safety and
profitability? How do you design a physical workplace to promote a
strong culture? How do you create a culture of virtue across a global
organization?
Works dynamically with organizations to address a range of potential activities, from problem definition to client advice and guidance to designing and implementing tangible culture and leadership solutions