Building and Sustaining a Winning Culture

Why should I listen to you?

100+ a year since 1989

300+ in 19 years

90+ since 1994

“Simplicity is the ultimate sophistication” Leonardo da Vinci

Business Acumen

Organizational Culture…

• The values and behaviors that contribute to the unique social and psychological environment of an organization.

Patrick Lencioni“Once organizational health

(culture) is properly understood and placed in the right context, it will surpass all other disciplines in

business as the greatest opportunity for improvement and competitive advantage. Really!”

The level of highly satisfied and engaged

EMPLOYEES in your business.

The number one factor in increasing the level of highly satisfied and engaged

CUSTOMERS in your business is…

What do engaged employees look like?

1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization.

1 - 10

Customer satisfaction drives customer loyalty… and customer loyalty drives profitability

A 5% increase in loyalty among your best customers…

Can produce a profit increase of…

25% – 85%

100%

90

80

70

60

50

40

30

20

Extremely Dissatisfied

SomewhatDissatisfie

d

SlightlyDissatisfie

dSatisfied

Very Satisfied

Zone of Defection

Zone of Indifference

Zone of Affection

Loyalt

y

Customer Satisfaction

Terrorist

Evangelist

I hate you

I don’t care about you

I love you

Actively disengaged employees can reduce total revenues by

up to 22% while highly satisfied and engaged employees

can drive profits up by as much as a 189%

Culture = Cash

Key attributes of winning cultures

• High aspirations and a desire to win

• Extreme customer focus

• A “think like owners” attitude

• Bias to action

• Individuals who team

• Passion and energy

Bain & Company

1 - 105

From the Employee’s Perspective:

Positive Culture

Fun

Family

Friends

Fair

FreedomPride

Praise

Meaning

Results

5

1 - 10

Focus me

Know me

Care about me

Hear me

Help me feel proud

Equip me

Help me see my value

Help me grow

What do employees want? S B A

Business Side• Integrity• Innovation• Accountability• Execution• Urgency• Customer Focus• Ownership Mentality

Ideas to ACTION

10 – 15 %

Vision+

Values

Strategy

Commitment

Alignment

Systems Communication

Support

Adjust /Innovate

Reward /Punish

Where are we going + how will we behave on the way?

FocusDifferentiation“No”

Stakeholders + guiding collation

Vision + ValuesStrategyPlansGoals / ObjectivesTactics / Actions

Procedures / ProtocolsRepeatable ProcessClear / consistent / relentless

Training +time / money /

supplies / people

Measure / TrackCommunicate

Transparency Renewal

Praise + Celebration and

Eliminate Mediocrity

9 Steps forEnsuring

Effective Execution

Obstacles to Execution

1. There is a real void of clear, direct and understandable communication. This results in people doing what they want to do, not what they need to do and breeds a climate of not caring about the customers/clients or their colleagues.

Poor Communication

2. Dysfunctional behavior is accepted or ignored and worse yet, colleagues, management reward it.

Poor Behavior

3. There is no definition of what is acceptable and what is unacceptable.

Lack of Clarity

4. Management does not promote and confirm that accountability is a key principle within their company.

Lack of Accountability

5. Good people may leave because of frustration that their employer is ignoring the issue and is not proactive in seeking and implementing a solution to change the environment.

Loss of Talent

6. Employees will believe that if their managers do not show that accountability is important, then employees will know that they can get away with unacceptable behaviors.

Lack of Leadership

To create a highly accountable culture…

• Communicate clearly and relentlessly.• Set agreed-upon and highly specific metrics.• Focus on results – not personalities.• Force collaboration – teamwork is mandatory

not optional.• Question all activities that don’t contribute to

the company’s overall strategic goals.• Make sure that everyone in the organization –

from top to bottom – focuses on accountability.

• Solid strategy is essential to business success.

• However, good strategic principles mean nothing if you don’t implement them.

• Thorough preparation is essential to execution.

• Simplicity is the foundation of execution. Thus you should focus your business on a few simple ideas.

• Align all activity with your core business goals. Eliminate everything else.

• People drive execution. Hire, train, retain and motivate the best.

• The business landscape is always changing, so to succeed you must be flexible.

• Craft a simple message, and make sure everyone in the organization gets it – but also listen to everyone, so you know what’s going on.

• Being good isn’t enough. Build “towering strengths.”

Sun Tzu on Business Execution

Accountability

• 100% Clarity

• Agreement

• Tracking

• Coaching

• Reward / Punishment

Clear Direction

No

Yes

Explain the Task

Agreement

Gain Agreement

Skills

Yes

No

Training

Resources

Yes

No

Get them theResources

Authority

Yes

No

Empower Them

Motivated

Yes

No

Coach Them

PerformanceImprovement

Yes

No

Clarity

The Four Pieces of Paper…

Agreement

Drone Scapegoat

OwnershipMentality

LooseCannon

HIGH

LOW

LOW HIGH

Auth

ority

Accountability

Empowerment

Keep a Compelling Scoreboard• It has to be simple• It has to be visible to the team• The has to show all key metrics

• It has to tell you immediately if you are winning or losing!!

Tracking

MPS Margin Per Sale

Talent

Customer Service

Customer Retention

Create a “Dashboard” of all key measures

Coaching

Situational Leadership

Teacher Coach

Director Cheerleader

FLEX

LOW

LOW

HIGH

HIGH

Moti

vatio

n

Skill

Workshop• Outline the core elements of the kind of

culture you want in your company.

• Your organizational culture may or may not be perfect now… but if it were, what would it look like, how would people treat each other, what values would drive your business?

Final Workshop• In teams… discuss and create a

document that outlines what you feel the culture should be here at the Innovation Hub?