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Organizational Change and Leadership Development
Stratety + The Denison Model TM
Agenda
The Organizational Model
The Link to Performance
The Culture Survey
The Leadership Survey
When do these things matter?
Mergers & Acquisitions
Transformation & Turnaround
Aligning Strategy & Human Capital
Talent Management & Leadership Development
Leadership Transitions
Culture Change
The Organizational Model
Adaptability Pattern..Trends..Market
Translating the demands of the
business environment into action
“Are we listening
to the marketplace?”
Mission Direction..Purpose..Blueprint
Defining a meaningful long-term direction for the Company
“Do we know where
we are going?”
Involvement Commitment ... Ownership …
Responsibility
Building human capability, ownership, and responsibility
“Are our people aligned
and engaged?“
Consistency Systems… Structures…
Processes
Defining the values
and systems that are the basis of a strong culture
“Does our system create leverage?”
What Counts…
Flexible and Stable
Flexible Adaptability + Involvement A flexible organization has the capability to change in response to the environment
Stable Mission + Consistency A stable orientation contributes to an organization’s capability to remain focused and predictable over time
External Focus and Internal Focus
External Focus: Adaptability + Mission The organization’s focus is on adapting and changing in response to the external environment
Internal Focus: Involvement + Consistency The organization’s focus is on the dynamics of the internal integration of systems, structures, and processes
Dynamic Tension: High performance organizations learn how to link the purpose, direction, and goals of the organization (top - down) to a shared sense of responsibility, ownership and commitment with all employees (bottom - up). Employees understand the relationship between their individual goals and the organization’s goals and are highly motivated to contribute.
Dynamic Tension: Successful organizations learn how to cope with the dual problems of external adaptation (stimulate progress) and internal integration (preserve the core). It is not an either/or proposition - high performance organizations must be able to do both at the same time.
The Link to Performance
Culture Links to Performance
Innovation &
Customer
Satisfaction
Stable
Performance
Over Time
Profitability
ROI, ROE
Operating Performance
Quality
Employee Satisfaction
Growth
• Study of Automotive Service Centers in the USA • Total of 338 dealerships and over 12,000 employees • Compares organizational culture and customer satisfaction
Satisfying Your Customers
Below 50% Highly Satisfied Above 80% Highly Satisfied
Impact on Performance
Return-on-Assets 4.5%
Sales Growth .1%
Market-to-Book Ratio 3.5
Return-on-Assets 6.3%
Sales Growth 15.1%
Market-to-Book Ratio 4.4
If we compare the 102 firms in the top and bottom 25% based on their overall average of the 12 indexes, companies with higher culture scores have greater profitability, sales growth, and market value than those with lower culture scores.
Top 25% Bottom 25%
“We have the same ingredients and use the same ovens, but it’s the skills, attitude and experience of the workforce that differentiates the brands.”
- David Brandon
Chairman and Chief Executive of Dominos Pizza
Understanding the Results
1076 companies in 48 Countries 75% North American, 15% Europe, 7% Asian,
3% Africa/Middle East/Central & South America
Wide classification of industries using the North American Industry Classification System (NAICS)
Different Industries and different Countries, on average, have very similar results to the global benchmark
We recommend using the Global Benchmark Composites are available for many different
Industries and Countries
Global Benchmark
Culture Survey: Roadmap for Success
Needs Analysis (Kick-off Meeting)
Creation of Project Plan
Creation of Test Survey
Review of Demographic File &
IT Requirements
Communication Plan Launch of Live
Survey Monitor Survey
Process Reporting of
Results
Analyze Results, Debrief & Action
Plan
Research Links to Performance
Post Action Review
Change Monitor to Evaluate Progress
Culture Example:
100-Year-Old Manufacturing Company
This is one of the four key traits that
impact business performance.
This is one of the three indices that measure
behaviors for this trait. Each of the twelve indices
consists of five survey items.
This is a percentile score. A percentile is your
organization’s score as a percentage benchmarked
against the average of other organizations.
(This average is called a norm.) This
organization, for example, scored better than 68 percent of all of
the companies in the database in the area of Goals and Objectives.
The profile is colored to show the quartile
in which the percentile falls. This score, for example,
falls in the third quartile.
Case Study: 100 Year Old Manufacturing Company
•First in industry, but declining •Trying to hold on to the past •1st time in 20 years failed to meet targets •Targeted by competitors •President operationally focused •“We’re a team going down together”
Case Study: 100 Year Old Manufacturing Company
What patterns do you see in this organization?
What are their strengths?
What are their weaknesses?
What might this mean for their business?
Case Study: 100 Year Old Manufacturing Company
Strengths Effective at producing the same products and services
Team work is encouraged
Short term goals are clear
Vulnerabilities Not listening to the marketplace: they will be overtaken by their competitors quickly
No innovation to keep them going in the future
Not listening to their customers
“With your low
Adaptability scores, I can
respond to the market
more quickly with
innovative products and
beat this company in
market share.”
“With your low Empowerment and
Capability Development scores, your
top talent is probably hard to attract and
harder to keep. As a competitor, I’ll try
to steal your best talent away from you.”
“You have a sense of your short term
goals and objectives, but they are not
being informed by your long term
vision. This tells me that your good at
execution, but with no real sense of
direction.”
Leadership Development
Leadership Development Survey
Helps managers and leaders to:
Identify specific areas of strength and weakness, and establish action plans for individual development
Learn how specific management skills and practices impact leadership performance
Develop leadership skills necessary to adapt to a changing environment
Understand their roles in creating a high-performance culture in their organizations
Leadership Model
Global Benchmark
11,953 leaders included in the normative database (up from 8,651)
From over 800 companies and rated by over 184,000 bosses, peers, and direct reports
Wide variety of industries, job function, management level, and tenure represented
Benchmarks are stable across years
Support
Support Resources
Workshops
Webinars
Case Studies and Research Notes
Product Guides
Research and Analysis
Global Network
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