philips lighting listens to the voice of employees to ...€¦ · its business strategy, leveraging...

Copyright © 2018 Deloitte Development LLC. All rights reserved. Not for distribution. Licensed material.

CASE STUDY

David Mallon, Vice President & Analyst-at-LargeBersin, Deloitte Consulting LLP

Overview

Since being spun off from former parent company Royal Philips, Philips Lighting has looked to capitalize on its global reach as a market leader by reinventing

its business strategy, leveraging its expertise in products and research while also answering the demands of a shifting industry and evolving consumer preferences. Company leadership strongly believed that culture would play a key role in sup-porting this new strategy and maintaining market dominance. With this in mind, Philips Lighting set out on a journey to define its culture and values using both qual-itative and quantitative data—all with the help of its employees—and then went on to embed this new culture in the day-to-day life of the organization. In doing so, the company has been able to align its organizational culture with its business strategy to ensure continued success as the market leader.

Philips Lighting Listens to the Voice of Employees to Design Its Culture for Strategic Success

In This Case Study a The process Philips Lighting used to examine its existing culture

a The methods the company employed to involve employees in the cocreation of new values and cultural goals

a How the Philips Lighting’s culture team worked with the help of a broad community of influencers to embed the new culture into the day-to-day life of the company


2 Copyright © 2018 Deloitte Development LLC. All rights reserved. Not for distribution. Licensed material.

Company OverviewPhilips Lighting1 is a global market leader in the development, man-ufacturing, and application of both conventional and LED lighting solutions (see Figure 1). For 125 years, Philips Lighting operated as a divi-sion of Royal Philips, a Dutch conglomerate originally founded in 1891 by Gerard Philips and his father, Frederik. In 2014, Royal Philips announced it would divest its lighting group, which would become a standalone firm. A successful IPO in 2016 valued the company at more than €3 billion.2

Since becoming a standalone entity, Philips Lighting has executed its product, systems, and services strategies with ever-increasing determina-tion. The company offers products and services to governments, businesses, and individual consumers3, and has also moved into digital and connected lighting, shifting its customer and competitor profiles accordingly.

1 For more information on Philips Lighting, see www.newsroom.lighting.philips.com/ and www.lighting.philips.com/main/investor.2 “Philips Lighting shares rise as CEO hails ‘historic’ market debut,” cnbc.com / Holly Ellyatt and Steve Sedgwick, May 27, 2016, www.cnbc.com/2016/05/27/philips-lighting-spin-off-valued-at-over-3b.html.3 Annual Report 2016: Light Beyond Illumination, Philips Lighting, 2017, www.lighting.philips.com/static/2016/philips-lighting-annual-report-2016.pdf.

http://www.newsroom.lighting.philips.com/

http://www.lighting.philips.com/main/investor

http://www.lighting.philips.com/main/investor

https://www.cnbc.com/2016/05/27/philips-lighting-spin-off-valued-at-over-3b.html

http://www.lighting.philips.com/static/2016/philips-lighting-annual-report-2016.pdf




Business Environment and Challenges4

The LED industry has been growing since 2015, and forecasts5 indicate it will continue to grow until at least 2022. LED TV penetration, shifts in the automotive industry, localities embracing sustainable LED energy pro-grams, and the phasing out of incandescent bulbs in numerous countries all add up to incredible opportunities for Philips Lighting. Further, con-nected and intelligent lighting and revolutionary materials6 have made this an exciting time for the LED industry as a whole.

Challenges facing the industry include high research and development costs, the initially high cost of switching to LED lighting, and LED usage rates declining due to product longevity. Further, price wars are inevitable in the industry as established firms and upstarts alike vie for market share.

HR EnvironmentPhilips Lighting operates with a lean organizational structure in order to create increased customer value with fewer resources.7 People are the company’s most valuable resource, and cross-disciplinary and multi-market teams are the norm. Fostering innovation, process improvement, and open communication are imperative in a lean environment, as is a sense of ownership among employees at all levels of the organiza-tion, including entry-level team members. Every employee must be a committed stakeholder, or the value creation expected from a lean orga-nization evaporates.

4 Annual Report 2016: Light Beyond Illumination, Philips Lighting, 2017, www.lighting.philips.com/static/2016/philipslighting-annual-report-2016.pdf.5 “Global LED Lighting Market: Trends & Opportunities 2016-2020 – Key Players Profiled are Cree, Philips and Osram – Research and Markets,” BusinessWire, March 23, 2016, www.businesswire.com/news/home/20160323006187/en/Global-LED-Lighting-Market-Trends-Opportunities-2016-2020.6 “The 11 biggest trends in lighting technology right now,” luxreview.com / Robert Bain, July 2, 2015, http://luxreview.com/article/2015/07/the-11-biggest-trends-in-lighting-technology-right-now.7 For more information on “lean” management practices, see “The improvement of HR management by using Lean,” unece.org / Jan Byfuglien, Heidi Torstenson, and Anne Trolie, www.unece.org/fileadmin/DAM/stats/documents/ece/ces/ge.54/2012/Norway__Paper_The_improvement_of_HR_managementv2.pdf.

Year Founded: 2016

Annual Revenue (FY 2016): €7.1 billion

Employees: 34,000

Operations: Europe, North America, Latin America, and Asia-Pacific

Headquarters: Amsterdam, The Netherlands

Figure 1: Philips Lighting at a Glance4

Source: Philips Lighting, 2017.



https://www.businesswire.com/news/home/20160323006187/en/Global-LED-Lighting-Market-Trends-Opportunities-2016-2020

https://www.businesswire.com/news/home/20160323006187/en/Global-LED-Lighting-Market-Trends-Opportunities-2016-2020

http://luxreview.com/article/2015/07/the-11-biggest-trends-in-lighting-technology-right-now

http://luxreview.com/article/2015/07/the-11-biggest-trends-in-lighting-technology-right-now

http://www.unece.org/fileadmin/DAM/stats/documents/ece/ces/ge.54/2012/Norway__Paper_The_improvement_of_HR_managementv2.pdf

http://www.unece.org/fileadmin/DAM/stats/documents/ece/ces/ge.54/2012/Norway__Paper_The_improvement_of_HR_managementv2.pdf



Philips Lighting’s Culture JourneyAs conglomerate Royal Philips prepared to spin off its lighting division in 2016, the new firm, Philips Lighting, faced both strategic and organiza-tional culture challenges. Having made its first incandescent bulb in 1891, this storied division of Royal Philips had developed its business models and organizational culture in tandem with its parent company, and had enjoyed more than 100 years of history as the market leader. But would simply staying the course be sufficient for success? It seemed likely that this new era would require radical shifts in thinking and behavior.

Recognizing that the company could not stand still in its competitive environment after being spun off from its parent organization, Philips Lighting’s management team set to work to develop a business strategy that would leverage its expertise in products and R&D capabilities while also answering the demands of shifting industry and consumer prefer-ences. This new strategy, built on products, systems, and services, has afforded Philips Lighting the opportunity to more deeply engage with its markets while also maintaining investor support (as reflected in the company’s rising stock price). But the company was unsure whether this strategy on its own would maintain its dominance and believed culture would also need to play a role.

As the firm entered a new area as a sole entity, its leadership was deter-mined to shape and define organizational culture differently. The primary driver behind this journey was a shift in business strategy, as described by the company’s senior vice president of human resources and corpo-rate social responsibility (CSR):

The approach needed to be broad and inclusive, naturally building buy-in by actively capturing voices from every part and level of the organization.

Philips Lighting’s leadership understood that culture acts as a catalyst. A strong, well-defined culture can excite employees to work toward a higher ideal and help shape job performance behaviors.8 Taken together, these two factors orient employees toward the firms’ priorities and make culture a critical enabler of the overall business strategy. As the company trans-formed from a product-based firm to one focused on products, systems, and services, it was evident that culture would make the difference between success or failure. At the behest of its CEO, the company set about to define culture at the “new” Philips Lighting by engaging employees at every level.

We were keen to cocreate the culture, which breathes the values of the organization, things that make us proud to belong here, things that we aspire to become. It’s not a top-down approach but rather an inclusive approach that people own and live every day and thrive on.

—Senior Vice President of HR and CSR, Philips Lighting

8 “Leading by Leveraging Culture,” California Management Review / Jennifer A. Chatman and Sandra Eunyoung Cha, July 1, 2003, http://faculty.haas.berkeley.edu/chatman/papers/18_LeadingLeveragingCulture.pdf.

http://faculty.haas.berkeley.edu/chatman/papers/18_LeadingLeveragingCulture.pdf



The culture team also understood that the window of opportunity for defining the company’s culture while the organization was young would close rapidly. A compressed schedule therefore lent urgency to planning and execution.

Creating the Culture Team, Defining the Time Line, and Describing the Design ElementsTo take the culture project forward, Philips Lighting created a cross-func-tional team of culture experts and business leaders across businesses, countries, and levels. The organization also created a culture steering committee to keep the core team on track and grounded in reality. This steering committee played a key role in sensitizing senior leadership and market leaders to the culture project. They also at times brought an “out-side-in” customer point of view to the project.

The steering committee played a key role in sensitizing the senior leadership and the market leaders. At times, they brought an “outside-in” view from the customer’s lens.


Another critical component of the culture team at Philips Lighting is what the company refers to as a “community of influencers.” Members of this group, who are self-nominated, enable a communication pipeline to the various market teams. These influencers provide a great deal of data and input to move the culture project forward and serve as a think tank to ensure the team is moving in the right direction.

With its various components now in place, the culture team next turned to developing a program time line that addressed the urgency factor but also ensured the project had the depth necessary to bring about lasting change (see Figure 2).

The company coupled this time line with specific design elements intended to drive the project forward (see Figure 3).

KEY POINT: With guidance from a steering committee, a cross-functional culture team set out to create organizational culture with involvement from employees at every level.

Phase 1: Diagnosing Culture

Phase 2: Cocreating Culture

Phase 3: Embedding Culture

December 2015–March 2016 March 2016–August 2016 September 2016–Ongoing


Figure 2: Philips Lighting’s Culture Journey Time Line



Phase 1: Diagnosing CultureOnce Philips Lighting had defined the project and put together its team, the first task in its time line centered on understanding the compa-ny’s current state vis-à-vis culture. A series of one-on-one interviews with leadership, along with a culminating leadership summit, provided appropriate framing for the culture project within the context of the new business strategy. The group tackled a number of questions, including:

How do we become more self-aware? How do we find our blind spots? Are these values aligned with our business objective, or are they stand-alone or running parallel to our objective?


The various business units, as well as market and functional areas, all shared insights that the team could then use to inform the project. As a part of this effort, Philips Lighting partnered with Deloitte to leverage elements of its CulturePath model into the process. CulturePath is a comprehensive culture diagnostic that identifies and measures four core indices and four differentiating indices to help organizations create effec-tive cultures (see Figure 4). Overall, Philips Lighting’s leadership reported that the organization’s culture encompasses a number of powerful values, including loyalty, passion, collaboration, and competence.

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Value Insight into Cultural Identity

Engagement of the Whole Organization

Fact-Based Interventions

Embed Ways of Working

Why

Philips Lighting understands the foundation of its cultural identity and has identified the differentiating behaviors needed to achieve business strategy.

The organization is actively involved in engaging dialogues to cocreate the Ways of Working.

To uncover and visualize crucial touchpoints and patterns in employee behavior to design a tailored, high-impact approach.

To stimulate employees’ creativity and proactive involvement in strengthening the Ways of Working through viral change.

How

• Design and develop diagnostics approach and tailor survey

• Conduct survey amongst a small sample of Philips Lighting employees,suppliers, and vendors

• Collaboratively design workshops

• Collaboratively design and develop “train the trainer” sessions and materials

• Prepare rollout together with Philips Lighting University

• Network analysis, text mining, and change adoption profiler

• Create the Viral Change Roadmap to achieve a well-orchestrated, clear, long-term behavior-led strategy

Interactive Workshop Concepts

AdvancedAnalytics Tools

Ways of Working Diagnostic Tool

Viral Change Roadmap

Figure 3: Philips Lighting’s Culture Journey Design Elements




The results of the leadership interview and summit process gave the project team a wealth of data from which to distill four core value cate-gories (see Figure 5).

Courage

Commitment

Inclusion

SharedBeliefs

CollectiveFocus

Risk &Governance

External Orientation

Change & Innovation

DIFFERENTIATING

CORE INDICES+

Figure 4: Deloitte’s CulturePath Indices

Source: Deloitte Consulting LLP, 2016.

Figure 5: Philips Lighting’s Core Value Categories


70%FAVORABLE

75%FAVORABLE

71%FAVORABLE

61%FAVORABLE

The degree to which employees feel a sense of pride in and ownership of the success and brand /

identity of the organization.

The degree to which an organization promotes diversity, uniqueness,

and bringing one’s authentic self to the

workplace.

The degree to which employees demonstrate

commitment to organization-specific core values / beliefs.

The degree to which employees exhibit

resolution and resilience when confronting adversity, ethical dilemmas, failures,

or opposition.

COURAGE COMMITMENT INCLUSION SHARED BELIEFS



Identifying and clarifying these organizational values provided Philips Lighting with an axis around which to make decisions. The next step in the process—bringing these values to life—would then create an anchor on which the entire organization could base its behavior.

Phase 2: Cocreating Culture Engaging a dispersed and diverse organization is challenging, as is devel-oping an environment in which the entire company can contribute and take ownership. The collaborative cocreative process—which is essen-tial when establishing a strategically aligned culture—cannot happen without intense effort and a commitment to deep engagement.

Change, even a well-planned and executed one such as Philips Lighting’s separation from Royal Philips, can be disorienting. Employees therefore need space to actively share their experiences and stories, put organiza-tional and business strategy shifts in context, and envision a successful future and the cultural characteristics needed to achieve that future. To leverage the values identified in the diagnostic phase as strategic differenti-ators, the culture team developed a “cocreation workshop” with associated “train-the-trainer” sessions (see Figure 6). The company provided five train-the-trainer sessions, held in the Netherlands, the United States, Singapore, and China. Once the trainer team was in place, a global rollout of more than 50 workshops commenced. The company held these workshops over a three-month period in all four regions and included all functions.

Figure 6: Cocreation Workshop Structure


Welcome and Introduction

• Set tone and rules of engagement.

• Promote openness.

• Invite active participation.

Past

• How has the past contributed to current success?

• What are we ready to let go of?

Future

• What are our aspirations?

• What characteristics do we need to get there?

Identity

• What varying perspectives do we have at Philips Lighting?

• Share personal stories.

Present

• Embrace the present through “moments that matter.”

• How do the little things make a big impact?

Connecting the Dots

• What were the outcomes of discussions and activities?

• What concrete message can we communicate to leadership?



Philips Lighting’s existing culture very much reflected its relationship with Royal Philips. The cocreation workshops addressed this subject head on, asking employees to identify what they were willing to let go of so that the company could move forward as its own entity. Employees raised a variety of issues, including:

• Overly complex and siloed processes

• Slow decision-making and resistance to change

• Risk adversity and fear of failure

Each workshop culminated with participants writing a group letter to leadership detailing their cocreation experience and recommendations.

It is about closing the loop after opening the dialogue with employees. People really felt it was not a vain exercise, their voice really was heard, and having a dialogue was really appreciated.

—Organizational Development Partner

The cocreation workshops generated more than 200 of these letters, which the company then consolidated into a book. Philips Lighting’s lead-ership team also sent thank-you letters to every workshop participant.

After three months of workshops, the culture team was able to define a truly cocreated set of values coupled with actionable behaviors (see Figure 7).

As noted by a team lead:

We came up with four main themes. Some of them were really about who we are, while some of them were more aspirational. We built our four values based on the mix of who we are, but also who we want to be.

Understanding what employees were willing to let go of empowered Philips Lighting’s leadership to quickly make progress in aligning growth initiatives, and their actions demonstrated that the company trusts its employees to move the company culture forward.

Our purposeTo unlock the extraordinary potential of light for brighter lives and a better world

Always act with integrity

Passion for results

Game changerGreater

together

Customer first

Be responsiveBe insightfulBeat expectations

Value diversityListen to learnAct with care

Stimulate imaginationDare to doPursue relentlessly

Take chargeMake it simpleAchieve excellence

Figure 7: Philips Lighting’s Purpose and Values




Phase 3: Embedding CultureLong-term change requires new language, new behaviors, and new rou-tines. Although embedding Philip Lighting’s four values into every process, customer interaction, leadership initiative, and local market strategy will be a continuous process, the culture team was ready to launch the program, jump-start value and behavior adoption, and ensure the business strategy was enabled by the culture just months after beginning this journey.

In keeping with the goal of creating culture from the bottom up, the project team next worked with an outside vendor to develop a method for reaching across the firm to capture the voices of all types of employees. They deployed an online survey to nonfactory employees and provided managers in factories with a process for capturing live feedback from factory workers. The results of these data collection efforts indicated that leadership and employees held common views. Employees indicated that they believe Philips Lighting values innovation, inclusion, collabora-tion, and bringing a sense of ownership to one’s work.

Going ViralThe culture team designed a viral change strategy—banking on their community of influencers—to launch and embed the company’s new values. Changing organizational culture through peer influence, or viral change, capitalized on Philips Lighting’s existing collaborative environ-ment and fulfilled the objective of creating culture from the bottom up. The company made use of the strength of the community of influencers via four enablers (see Figure 8):

• Communication and engagement

• Leadership and capability

• Rewards and recognition

• Processes and governance

Communication & Engagement

Leadership & Capability

Rewards & Recognition

Processes & Governance

1 2 3 4

Objec

tive

• Create a compelling story about the new values.

• Embed consistent, transparent communication messages in existing strategy and channels.

• Empower and enhance leadership at each level to lead by example and act according to the new values.

• Embed and reinforce the new values throughexisting (and new) reward and recognition processes.

• Celebrate our successes and learn from our mistakes.

• Build the infrastructure to successfully embed new values.

• Put all processes and tools in place to support the new values.

Figure 8: Viral Change Enablers




From Awareness to AdvocacyLiving the values of Philips Lighting is a complicated venture. Sharing success stories and ideas, learning from failures, engaging employees at every level of the firm, and ensuring the right tools are available require an unprecedented commitment from the culture team to take an unvar-nished look at where the firm is heading.

With this in mind, two months after launching the viral change strategy, the culture team organized a “jam session” with all 400 members of the community of influencers. The goal of the session was to share stories—a primary conduit of viral change—and strategize ways to promote the company’s desired values and behaviors at the local level. The commu-nity of influencers shared details of the creative and locally customized programs they had initiated within their market teams. A few highlights included:

• Creating kites inscribed with each of the four values so teams could literally “launch” the values (Benelux market team)

• Organizing a contest for the best non-English translation of the pur-pose and values (Chinese market team)

• Creating a value tree with leaves employees were encouraged to write on to share how they saw others reflecting the values (U.K. and Ireland market team)

• Creating a weekly “Thank You Thursday” and “Feedback Friday” program that provides consistency for recognizing values in action and becoming aware of opportunities that may have been missed (Nordics market team)

• Linking plans at the company’s Hoshin factory to the values and dis-cussing with the team how those values connect with projects at the factory (Latam market team)

• Engaging employees through storytelling videos that bring the new values to life with simple words and concrete examples (Italy market team)

• Rolling out a “Game Changer” program, in which employees have the opportunity to experience how behaving as a game changer creates business impact (Iberia market team)

• Rolling out a 360-degree campaign to engage and connect employees to the new values, including selection of “Best Value” stories from among employees to share real examples of workers embodying the values (India market team)

Hearing how others are activating the values to solve problems spurred innovative thinking among community members. For example, members shared how different market teams handle driving business—a key con-cern, as Philips Lighting operates in markets of varying maturity, and the issues faced when competing in mature markets may be different from those confronted in growth markets. As one influencer relates:



Our transformation team is partnering with the business growth and supply chain teams to drive growth, reduce time to market, and improve delivery reliability. These challenges are not easy and require collaboration across the business units and markets to achieve. However, we have the passion to deliver and will go for growth.

Another influencer shared various ways in which the company is engaging with its customers:

We love to open up our doors and bring customers inside to show them our amazing products and innovations. During these visits, we listen to ideas they have for new product development as well. True “voice of the customer” can happen when you walk a customer through the door and allow them to get their hands on the process.

The culture team developed what it calls the Five A’s Framework (see Figure 9) to assist both community members and employees as a whole to understand and identify how and to what level they have incorporated Philips Lighting’s values into their daily work practices.

Measuring ProgressEnsuring Philips Lighting’s values are baked into the DNA of the com-pany requires consistent monitoring. The company leverages metrics throughout the organization, as well as with customers. Quarterly sur-veys measure value adoption, determine if the organization has met quarterly expectations, and give employees the opportunity to reflect on whether their behaviors align with the company’s values. The company also surveys all new hires within their first 90 days in order to gather their perceptions of Philips Lighting’s culture. A new hire offers this perspective:

Our values are alive and are being addressed during daily life in the organization, which for me is how values pass the test. There are positive stories from employees who took part in cocreation workshops. These stories provide vivid examples of our values brought to life.

Awareness Attitude Ability Action Advocacy

I am aware of our purpose and values and understand what we are trying to achieve for ourselves and our customers.

I believe in our purpose and values.

I know what I need to do personally to live our purpose and values.

I live our purpose and values through what I say and do.

I’m a passionate champion of and a personal advocate for our purpose and values.


Figure 9: Philips Lighting’s Five A’s Framework



The company also measures progress using employee net promoter scores and customer interviews, and links those results with its “Customer first” and “Passion for results” values.

ReflectionAfter so much intense activity around creating, launching, engaging, and embedding its vision, the culture team realized it would be smart to step back for a moment and listen to what was happening among its global market teams. This is a key step in the journey that adds value to work, prevents duplication, and can point toward unexpected opportunities. For Philips Lighting, this process has just begun, so the company has not yet collected data from all 18 market teams. But to date, the culture team has learned that some market teams are moving faster than others to adopt the new company purpose and values, while others have skipped parts of the embedding program because they were already further ahead in their development and did not want to reinvent the wheel. As the organizational development partner noted:

Why don’t we leverage this great initiative that is happening? We wanted to recognize all the good things that have been done but may not have been shared before we came up with another great global activity.

Reflecting on the state of the market teams as a whole also motivates those who are a bit behind to catch up and those who are ahead to pause and help.

Tools and TechnologyPhilips Lighting HR, in partnership with internal communications, pro-vided a comprehensive implementation toolkit that took a dual approach:

• Elevate moments taking place globally to celebrate and promote values.

• Support local markets with activities and assets to encourage employees to think about how they are living the company’s cultural values day to day.

The company has made a variety of support assets available on an internal collaboration platform, including print and digital communica-tions. Suggested methods for activating values locally include storytelling, eliciting customer insights, suggestion box how-to’s, utilizing informal recognition, and creating physical artifacts such as value journey maps and value trees. The toolkit helped the community of influencers drive viral change by introducing a flexible framework in which to engage employees and customers.

KEY POINT: Listening to what is happening throughout the organization adds value to work, prevents duplication, and can point toward unexpected opportunities.



Business ImpactPhilips Lighting’s goal when beginning this culture journey was clear: Align organizational culture with the business strategy to ensure con-tinued success as the market leader. As the SVP of HR and CSR says:

It’s all reflected in our share price. . . . Our share price in one year’s time has grown by 50 percent. Investors have come back and told us that they have a lot of confidence in our systems and services and product strategy. There was a very well-defined strategy, it was well executed, and the cultural journey was a catalyst.

Philips Lighting continues to see ongoing examples of this alignment:

• Leadership messaging. The CEO’s quarterly message always begins with a customer example, modeling adoption of the compa-ny’s values.

• Alignment of onboarding, talent assessment, and leader-ship development practices and procedures with values and behaviors expectations. Management and employees are able to both walk and talk company values.

As values and behaviors are deepened over time, the culture team expects additional business impacts in the future.

Lessons Learned• A well-defined business strategy is critical. Time and again,

the Philips Lighting culture team returned to the intentions and expected outcomes of the company’s revised business strategy as the basis for decision-making. By staying in continual contact with the market teams, the steering committee ensures that changes do not happen in a vacuum and have an impact. The voice of employees provided both ideas and energy around the process of alignment, encouraging both engagement and adoption. Practitioners working on similar culture initiatives are advised to check in throughout the process with the following questions:

- Do we understand our business strategy deeply enough?

- Have we considered how these changes might impact our business strategy? What are the possible positive and negative outcomes?

- Which activities best support our desired outcomes based on our specific circumstances?

• Select a survey based on all your needs. A well-developed and meaningful survey was a necessary component of Philips Lighting’s diagnostic phase. Launching the survey online allowed for broader reach, and the insights gleaned were instrumental in identifying the values embraced by the organization. However, the culture team had another purpose for the survey: benchmarking against its



competitors. Unfortunately, the survey the team deployed, although validated, was a newer product and had not been sufficiently adopted within the industry to provide the desired comparisons.

• Do not hesitate to increase the survey sample size. A large organization requires a finely calibrated sample. Offering the survey online provides convenience, which encourages participation; how-ever, as with any voluntary program, turning invitation into action is no easy task. Response rates make the difference between meaningful, generalizable data and a collection of opinions. Ensure you meet or exceed your desired response rate by inviting more members of the organization to take the survey than you think you will need.

• Be open to new ways of engaging in dialogue with employees. An increasingly interconnected and technologically savvy workforce will be interested in participating in online chat sessions, Q&A threads on community forums, creating and sharing video stories, and other innovative means of engagement. Structuring communi-cation utilizing social media–style tools keeps it fun and interesting.

• Leverage talent cross-functionally. A diversity of voices will create challenges but, ultimately, also ensures that many opinions, ideas, perspectives, and contexts are incorporated into every step of the journey.

• Activate a community of influencers. A key success component adopted by Philips Lighting was having influencers self-identify, ensuring commitment to and ownership of project success.

• Utilize multiple research methods. The culture journey team embraced both quantitative and qualitative styles, using each advan-tageously. In-depth interviewing of leadership coupled with a global organizational survey provided strong discovery and validation data points. Further, the team supplemented its findings with secondary literature reviews.

• Know your firm’s business strategy. The culture journey team surfaced clear connections between the company’s culture and the firm’s larger organizational strategy. In this case, operating lean required specific decisions and reinforcement. Identifying the con-nections between culture and strategy enabled a seamless flow.

Next StepsPhilips Lighting’s culture journey is just that: a journey. Philips Lighting will continue to build its values throughout the organization by sharing customer and employee stories, leveraging talent and innovation with programs such as the Philips Lighting Excellence Competition, and con-sistently reaching out to the market teams and HR business partners (HRBPs) to understand the specifics of local engagement. The team has designed the processes in place to reinforce and sustain individual behaviors so that ownership of Philips Lighting’s values cascades into every decision, action, and choice into the future.



ConclusionIn 2016, Royal Philips spun off its subsidiary, Philips Lighting. Facing an uncertain future as a sole entity and with competitive pressures heating up in the lighting industry, the firm’s leadership redesigned the business strategy, taking a products, systems, and services approach. This allowed for greater reach and commitment to current and future customers, as well as increased capabilities to fend off industry upstarts.

Rather than adopt a laissez-faire attitude toward organizational cul-ture, leadership recognized that defining and enacting a distinct Philips Lighting culture would enable the new business strategy to flourish and energize employees during a time of uncertainty. All employees would have a voice, and all would be coowners of the change journey. In the year after its IPO, Philips Lighting showed tremendous fortitude in achieving its strategic goals and enjoyed investor confidence as demon-strated in its share price, as well as high rates of organizational purpose and value adoption across business units and markets. The culture team, formed in 2016 to instigate the culture journey, recognized the power of aligning culture with strategy. Aided by a steering committee and a community of influencers, this team undertook a wide-ranging menu of quantitative and qualitative processes to uncover, explore, and validate the existing and aspirational values and behaviors necessary to move the company into a new era. Philips Lighting’s culture journey is an iter-ative and longitudinal effort; as market forces shift over time, the firm’s culture, anchored in its four values, will be able to respond accordingly.

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• Interactive Factbooks—Covering a wide spectrum of Human Capital metrics, this platform allows members to filter by industry and company size and create custom benchmarks, analyze trends, and identify drivers of variance.

• Maturity Diagnostics—Research-based maturity assessments, integrated with business feedback, deliver actionable custom analysis, relevant research resources, and guidance from member advisors. These assessments help members develop a plan to progress in maturity.

• Performance Support—Practical materials in the form of illustrations, handouts, work-sheets, templates, assessments, and recipes. Members can use these materials to help promote thinking, facilitate discussion, enable self-assessment, outline steps, direct pro-cesses, and aid decision-making.

• Member Advisors—Through virtual and in-person activities, our specialized member advisors help members understand our research, uncover deeper insights, prioritize human capital issues, and map solutions to some of their most pressing challenges.

• Networking—Member-only online Communities, working groups, and roundtables let you connect with peers and industry leaders to discuss and learn about the latest industry trends, emerging issues, and leading practices.

• IMPACT Conference—Our executive conference brings research-driven insights to Human Capital leaders and their teams, offering them the opportunity to exchange ideas with other senior-level practitioners, industry thought leaders, and Bersin team members.

For more information about our membership program, please visit us at www.bersin.com/membership.


http://www.bersin.com/membership


About UsBersin is the indispensable digital destination for the HR Professional to build capability, community and credi-bility, stay informed, and lead on workforce issues. Our membership delivers research-based people strategies designed to help leaders drive exceptional business performance. A piece of Bersin research is downloaded on average approximately every minute during the business day. More than 5,000 organizations worldwide use our research and consulting to guide their HR, talent and learning strategies.

As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

Copyright © 2018 Deloitte Development LLC. All rights reserved.

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About the Author

Publication date: January 4, 2018

David MallonVice President & Analyst-at-Large | Bersin, Deloitte Consulting LLPDavid is Bersin’s chief storyteller. He engages directly with Bersin members and the market to bring insights to life. A 10-year Bersin veteran and leader of the research team for six years, David is one of Bersin’s most knowledgeable thought leaders. He brings a unique, integrated perspective to helping organizations solve their most vexing workforce challenges. David has a BA in English literature from Emory University and an MS in digital media from the Georgia Institute of Technology.

http://www.deloitte.com/us/about

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