“The way we do things,… around here”

Dr. Peter Gillies

What we will do… more or less

• Opening• Culture – “You can’t measure that from where you’re standing.”• Structure – “Don’t you make a monkey out of me!”• Leadership – “Man is the only animal that blushes…”• Growth – “Where are we, anyway?”• Challenge – “You are such a nice person.”

• Lunch

• Contract – “Tell me what she wants to know.”• Culture – “Just give me a hammer…”• Culture – “My CFO will NEVER buy this…”• Culture – “Red, Yellow, Green, Blue”• Culture – “You know, this could work…” • Final Exercise

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Audience Participation: Think-Pair-Share

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Think Think

Example Question

“You can’t measure that from where you’re standing.”

• Edgar Schein

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Artifacts

Values: what we really do

What we say we do

Artifacts

Basic Underlying Assumptions

Espoused Values

Visible organizational structures and processes

Strategies, goals, philosophies, justifications

Unconscious, taken-for-granted beliefs, perceptions, thoughts, &

feelings

Edgar H. Schein, 2010. Organizational Culture and Leadership. 4 Edition. Jossey-Bass.

We know you care…

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Think-Pair-Share

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2:00What do we say we do in my organization?

Agonic & Hedonic

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I am sitting on all of the

bananas

Koenraad Kortmulder, 2005. Agonic And Hedonic Styles Of Social Behaviour (Mellen Studies in Sociology). illustrated edition Edition. Edwin Mellen Pr.

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Social AttentionArousal Danger

Resources

Structure Follows Strategy

The right structure is designed to fit the organization’s strategy

Don’t you believe it!

Think-Pair-Share

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2:00

Is my organization Agonic or Hedonic?

“Man is the only animal that blushes…or needs to.”

• Warren Bennis• Attention• Meaning• Trust• Self

12Warren Bennis, 2003. On Becoming a Leader: The Leadership Classic. Revised Edition. Basic Books.

Who is good at this?

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Think-Pair-Share

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2:00

Does your leader style match the strategy?…

AttentionMeaningTrustSelf

“Where are we, anyway?”

15Greiner, L. E. (1997). Evolution and revolution as organizations grow. 1972. Harvard business review, 76(3), 55-60.

The empathy rule

Start where the system is…

Time

Com

plex

ity

Think-Pair-Share

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2:00

Where is my company in the growth curve?

Find someone you don’t know….

Think-Pair-Share

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1:00:00

Culture, Growth, Leadership, StructureWhat I really want to know, before I leave, is…

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21

So nice of you to come back!

Tell me about your lunch discussions…

Well, let me get to work…

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Competing Values Framework – Your “Hammer”

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People

Purpose

PracticeCollaborate Create

Control Compete

internal focuslong term short term

Control

flexi

bilit

y

external focus

flexibility& discretion

focus& control

“Do things that last” – Collaborate

Purpose-Knowledge-Community

Practiceinculcating

-Workplace-Values-Learning

People-Coach-Mentor-Facilitate

“Do things right” –Control

Purpose-Efficiency-Quality

Practiceimproving

-Systems-Structures-Standards

People-Monitor-Coordinate-Control

“Do things first” – Create

Purpose-Innovation-Growth

Practiceinventing

-Products-Markets-Ventures

People-Innovate-Adapt-Change

“Do things fast” – Compete

Purpose-Speed-Profits

Practiceinvesting

-Performers-Initiatives-Production

People-Direct-Drive-Push

SweatshopBusy-ness

FrozenBureaucracy

Commune/SectCountry Club

AnarchyTinkering

Zappos - Collaborate

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Apple - Create

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Deloitte - Compete

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Emerson-Fisher - Control

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Company culture videos

• Company culture videos• 3M, Create: https://www.youtube.com/watch?v=CLlX9yJZosk• Apple, Create: https://www.youtube.com/watch?v=EcHpgsTg458• Zappos, Clan: https://www.youtube.com/watch?v=5CcLIPaUz3E• Google, Clan/Create:

https://www.youtube.com/watch?v=c1jlmdkApTQ• Deloitte, Compete: https://www.youtube.com/watch?v=2-Xu71-DsMI• Goldman Sachs, Compete/Clan:

https://www.youtube.com/watch?v=Ldd0UDcNZsc• Southwest, Clan: https://www.youtube.com/watch?v=M7b391n_TnY• Emerson, Control: • https://www.youtube.com/watch?v=JFGRpwj3nuE&index=2&list=PL

SXazcrqabneivOf5nT7OjH3uYflzSj7m• Emerson, Control/Clan: • https://www.youtube.com/watch?v=QVUhQcXX7gM&list=PLSXazcrq

abneivOf5nT7OjH3uYflzSj7m&index=11

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Let’s analyze a company

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• Mission: Improving people’s lives through meaningful innovation.• Vision:

• At our company, we strive to make the world healthier and more sustainable through innovation. Our goal is to improve the lives of 3 billion people a year by 2025. We will be the best place to work for people who share our passion. Together we will deliver superior value for our customers and shareholders.

• Behaviors• Eager to win• Take ownership• Team up to excel

Think-Pair-Share

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2:00

Where is my organization?

Competing Values Game

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Culture Collaborate

– How would they do “change”?– “Be a fly on the wall” – what do they talk about in meetings?– Who becomes a leader?– Why do they fire people?– In what industries/places/departments do you find them? – What value do they create? – Are they fast or slow?– Do they make incremental or dramatic breakthroughs?– Do they “stick” to changes?

Culture Create

– How would they do “change”?– “Be a fly on the wall” – what do they talk about in meetings– Who becomes a leader?– Why do they fire people?– In what industries/places/departments do you find them? – What value do they create? Why would we want them?– Are they fast or slow?– Do they make incremental or dramatic breakthroughs?– Do they “stick” to changes?

Culture Compete

– How would they do “change”?– “Be a fly on the wall” – what do they talk about in meetings– Who becomes a leader?– Why do they fire people?– In what industries/places/departments do you find them? – What value do they create? Why would we want them?– Are they fast or slow?– Do they make incremental or dramatic breakthroughs?– Do they “stick” to changes?

Culture Control

– How would they do “change”?– “Be a fly on the wall” – what do they talk about in meetings– Who becomes a leader?– Why do they fire people?– In what industries/places/departments do you find them? – What value do they create? Why would we want them?– Are they fast or slow?– Do they make incremental or dramatic breakthroughs?– Do they “stick” to changes?

Think-Pair-Share

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2:00

Most interesting thing you learned?

Make my CFO happy…

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Measures of CommunityEmployee satisfaction/morale surveysEmployee retention rateReduction in employee grievances and complaintsHeadcount as a percentage of forecasted needsJob posting response ratePercent of job offers acceptedPercent of employees promotedCustomer satisfaction survey ratingsMeasures of KnowledgePercent training requirements fulfilledNumber of training days per employeeTraining expenditures are a %of operating budgetTraining investment per employee% of employees with career development planNumber of employee suggestions approvedNumber of best practices Skill targets achievedValue evaluation of training and developmentAverage experience level of personnel

Unit costTarget versus cost achievementActual versus planned productionDays supply of finished goods inventoryPercentage of backordersPercentage milestones achievedPercent of on-time deliveriesTotal internal cost savingsLabor productivity varianceThroughput timePercent first-time qualityPercentage of scrapSafety violationsRegulatory violationsNumber of product failure by product groupImprovement on error or defect ratePercent reduction in redundancy or wasteNumber of engineering changes after release (manufacturability)Percentage of certified suppliersNumber of warranty claims

Measures of Innovation# of new products or services launched# of new sources of revenueNew products or services development investment as percentage of sales

Revenues derived from new products or services as a percentage of total revenue

ROI for new products or servicesR&D Investment / Total ExpendituresDiversity of innovation portfolio mixNew product and service process pipeline flow rateNew product and service survival rateGrowth in total salesGrowth in sales by segment, channel, geographyNew market growth in salesGrowth in sales through joint venturesMeasures of brand recognitionGrowth in sales per person

First to market with products and servicesCycle time: design &develop product or serviceCycle time to market: new products and servicesTime to profitability: existing product or serviceTime to profitability: new products and servicesNumber of projects launched ahead of scheduleNumber of projects delivered ahead of scheduleRatio: projects launched to projects advancedNew market penetration time (acquisitions)Return on assetsTotal revenueNet present valueGross profitStock priceShareholder valueOperating incomeEarnings per shareAmount of cash on hand (cash flow)Bid and quote success rate

Clan or Collaborate

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• Measures of Community• Employee satisfaction/morale surveys• Employee retention rate• Reduction in employee grievances and complaints• Headcount as a percentage of forecasted needs• Job posting response rate• Percent of job offers accepted• Percent of employees promoted• Customer satisfaction survey ratings• Measures of Knowledge• Percent training requirements fulfilled• Number of training days per employee• Training expenditures are a %of operating budget• Training investment per employee• % of employees with career development plan• Number of employee suggestions approved• Number of best practices • Skill targets achieved• Value evaluation of training and development• Average experience level of personnel

To understand your employees and their performance:• Human Capital Value Added (HCVA)• Revenue Per Employee• Employee Satisfaction Index• Employee Engagement Level• Staff Advocacy Score• Employee Churn Rate• Average Employee Tenure• Absenteeism Bradford Factor• 360-Degree Feedback Score• Leadership/Climate Survey score• Salary Competitiveness Ratio (SCR)• Time to Hire• Training Return on Investment

Create

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• Measures of Innovation• # of new products or services launched• # of new sources of revenue• New products or services development investment • as percentage of sales• Revenues derived from new products or services • as a percentage of total revenue• ROI for new products or services• R&D Investment / Total Expenditures• Diversity of innovation portfolio mix• New product and service process pipeline flow rate• New product and service survival rate• Growth in total sales• Growth in sales by segment, channel, geography• New market growth in sales• Growth in sales through joint ventures• Measures of brand recognition• Growth in sales per person

To gauge your market and marketing efforts:• Market Growth Rate• Market Share• Brand Equity• Cost per Lead• Conversion Rate• Search Engine Rankings (by keyword) and

click through rate• Page Views and Bounce Rate• Customer Online Engagement Level• Online Share of Voice (OSOV)• Social Networking Footprint• Klout Score

Compete

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• First to market with products and services• Cycle time: design &develop product or service• Cycle time to market: new products and services• Time to profitability: existing product or service• Time to profitability: new products and services• Number of projects launched ahead of schedule• Number of projects delivered ahead of schedule• Ratio: projects launched to projects advanced• New market penetration time (acquisitions)• Return on assets• Total revenue• Net present value• Gross profit• Stock price• Shareholder value• Operating income• Earnings per share• Amount of cash on hand (cash flow)• Bid and quote success rate

To measure financial performance:• Net Profit• Net Profit Margin• Gross Profit Margin• Operating Profit Margin• EBITDA• Revenue Growth Rate• Total Shareholder Return (TSR)• Economic Value Added (EVA)• Return on Investment (ROI)• Return on Capital Employed (ROCE)• Return on Assets (ROA)• Return on Equity (ROE)• Debt-to-Equity (D/E) Ratio• Cash Conversion Cycle (CCC)• Working Capital Ratio• Operating Expense Ratio (OER)• CAPEX to Sales Ratio• Price Earnings Ratio (P/E Ratio)

Control

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• Unit cost• Target versus cost achievement• Actual versus planned production• Days supply of finished goods inventory• Percentage of backorders• Percentage milestones achieved• Percent of on-time deliveries• Total internal cost savings• Labor productivity variance• Throughput time• Percent first-time quality• Percentage of scrap• Safety violations• Regulatory violations• Number of product failure by product group• Improvement on error or defect rate• Percent reduction in redundancy or waste• Number of engineering changes after release

(manufacturability)• Percentage of certified suppliers• Number of warranty claims

To measure your operational performance:• Six Sigma Level• Capacity Utilization Rate (CUR)• Process Waste Level• Order Fulfillment Cycle Time• Delivery In Full, On Time (DIFOT) Rate• Inventory Shrinkage Rate (ISR)• Project Schedule Variance (PSV)• Project Cost Variance (PCV)• Earned Value (EV) Metric• Innovation Pipeline Strength (IPS)• Return on Innovation Investment (ROI2)• Time to Market• First Pass Yield (FPY)• Rework Level• Quality Index• Overall Equipment Effectiveness (OEE)• Process or Machine Downtime Level• First Contact Resolution (FCR)

Think-Pair-Share

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2:00

How can we get the right KPIs?

Lead me there…

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Think-Pair-Share

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2:00

What kind of leaders do we need in my organization?

All together now!

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Measure what the culture should be

Ideally

Measure what the culture is

Now

What it means

What it doesn’t mean

Do more of…

Do less of…

Tell

Stor

ies

Yest

erda

y,To

day,

and

Tom

orro

w Who

does

What

by

When

Think-Pair-Share

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2:00

Is it really that linear and simple?

Final Exercise

• Choose three things from the workshop you really think you can use

• Write them down • Now open your agenda• Choose 3 dates:

– 3 months from now– 4 months from now– 5 months from now

• Review and re-understand• Give me a mail or a call if you like

And that’s it…

Thank you very much!