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A successful business transformation is much more than waste elimination, variation reduction, and cost improvement; it requires a fundamental change in a company\'s culture, together with the momentum to sustain it. Often this is a significant undertaking in matrixed organizations. Learn how to create a more highly engaged, aligned and high-performing culture that links strategy with real-world, customer-focused execution. Learn a new approach to leveraging the most effective tools for cultural change in combination with performance management and talent development. The result is a framework for changing the hearts and minds of leadership who in turn engage the rest of the organization in the transformation process. Far too often transformation efforts focus only on process issues leaving culture to chance. Successful transformation requires deliberate planning and actions to achieve simultaneous cultural change. Learn about the tools and approaches to enable cultural transformation as a part of the overall change effort. Learning Objectives: Attendees will learn about: -Cultural Transformation: Change the daily behaviors of the organization to embody the values of the company. -Performance Management: Measure the outcomes of operations transformation – top-line and bottom-line but also measuring the change in employee engagement. -Leadership Talent Development: Develop the skills and talents of leaders at every level to champion transformation, lead continuous improvement, while delivering on near-term or strategic expectations. Intended Audience and Level of Understanding: This seminar is for business leaders responsible for guiding their company to transform strategy into execution through the application of proven performance management practices.
Citation preview
Creating a High Performance Creating a High Performance Culture
July 30, 2009
With You Today
Brent Jameson, Vice-President, Guidon Performance Solutions, LLC
• Over 15 years experience in application of Lean and Six Sigma
• Extensive experience migrating Kaizen and Lean thinking from manufacturing to front and back office operations
• Client experience in retail, healthcare, financial services, information technology, and telecommunications
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Jim Dickey, Vice-President, Guidon Performance Solutions, LLC
• Over 15 years experience in application of Lean and Six Sigma
• Co-founder of Guidon Performance Solutions – the pioneer in applying LeanSigma® in non-industrial and non-traditional companies
• Client experience in retail, healthcare, financial services, telecommunications and government
• Pioneered groundbreaking approach to managing capacity and staffing in highly complex, highly variable operating environments
Agenda
• Culture and Its Impact
• Defining High Performance Culture
• Creating a High Performance Culture
– Cycles of Use Ecosystem
– Performance Management
– Talent Development
• Case Study
– How one client:
• grew net revenue from $4.6 to 6.4 billion in 3 years
• grew net income from $153 to $316 million in 3 years
• Q & A Session
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Corporate Culture
cul·ture: the set of shared attitudes, values, goals and practices that
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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characterizes a company or corporation.
-Webster’s Dictionary
What Is Corporate Culture
• Culture is represented in the norms and unwritten rules that guide employee actions
• Corporate cultures are shaped by a variety of influences
– nature of the business
– geography
– fingerprints of the company founders, current leaders and associates
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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associates
• Culture “happens”
You can accept the hand you have been dealt or you can take
action to change it.
The Power of Culture
Corporate culture can have a significant impact on a firm's long-term economic performance.
Corporate cultures inhibiting strong performance are not rare; strong performance are not rare; they develop easily, even in firms full of reasonable and intelligent people.
Although tough to change, corporate cultures can be made more performance-enhancing.
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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John Kotter and James Heskett, Corporate Culture and Performance
Creating a High Performance Culture
A set of shared beliefs, values, attitudes, goals and actions at all levels focused on superior execution.
High Performance Culture
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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“The culture of a company is the behavior of its leaders. Leaders get the behavior they exhibit and tolerate. You change the culture of a company by changing the behavior of its leaders.” Larry Bossidy
Former CEO, Honeywell
Transformation Will Require a Change In
Thinking…
“People are very open minded about new things. As long as they are exactly like the old ones.”
- Charles Kettering- Charles Kettering
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© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
“…The two fundamental forces that drive GE…a common operating system and
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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GE…a common operating system and common social architecture…”
Jack WelchGE 1999 Annual Report
Structure of Corporate Culture
Leadership Tools & Practices
Shared techniques that drive practices, aid problem solving and
establish consistent performance – day to day, week to week, year
to year
Operating System
Social Architecture
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Shared Values
and BeliefsDescription of the
Leadership’s Vision of the desired culture
Common Terminology
and LanguageThe mechanism to bring the
desired culture alive through daily reinforcement
Recognition and
Reward
Reward mechanisms for living the values
Changing the culture requires a focus on the Social Architecture and Operating
System
Social Architecture
• The “real” social architecture
• Defined by those attributes and behaviors which are seen to lead to promotion and advancement
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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advancement
• Same as the attributes and behaviors espoused by the leadership as being desirable
Operating System
• The “real” operating system
• Defined by the activities to which leadership gives highest priority and devotes most time
• Commonly used management practices and tools
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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and tools• Predictable sequence of events used year after year to run the organization
• Drivers of day-to-day priorities
• Tools, techniques and processes at Levels 1 – 3
Start with Roles of Leadership
• Responsible for Strategic Planning and Leadership
• Talent Development• Transition to Execution
• Execution on Annual Commitments
• Talent Development• Transition for Improvement
Senior Leadership
Middle Management/Leadership
• Transition for Improvement
• Managing Change• Execution of Daily Operational
Commitments• Continuous Improvement
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Establishing culture begins with clarifying leadershiproles & responsibilities.
Supervisor/Front Line Leadership
Culture Transformation
Cycles of Use
• Linking tools and practices (operating system) with the values of an organization (social architecture)
• A Standard Playbook for
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Cycle must occur at each level of the organization, however, with different tools and practices.
• A Standard Playbook for creating the leadership culture which will drive high performance
Cycles of Use EcosystemGoal Setting
• Tools to plan, establish and target initiatives
Communicate, Translate and Deploy
• Share goals and targets with L2 and L3 Leadership
• Translate into executable plans
• Deploy resources
Measuring Performance and Results
• Tools, forums to discuss and evaluate performance to targets
• Identify gaps, create plans to improve and assign responsibility
Species
Air
Soil
Nutrients Water
Five Elements of a Forest System
responsibility
Executing to Close Gaps
• Collaborative problem solving Lean, Six Sigma, FOCUS
Incent & Celebrating Successes
• Reinforcing methods for desired results (repeatable) and behaviors
• Problem solving methods & tools
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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A High Performing Culture is similarto an ecosystem.
Five Elements ofCycle of Use
Senior Leadership Cycles of Use – Example
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Define Vision & Strategy
Translate &
Deploy
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Define Vision & Strategy
Translate &
Deploy
Strategic
Snapshot
(1 Day)
MGSP
(2 days)
Policy
Deployment
(2 days)
Business
Op Planning
Local
Op Planning
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Review & Incent
Communicate
& Recognize
Success
Review & Incent
Communicate
& Recognize
Success
Scorecards
& Incentive
Comp Plan
Talent
Roundtable
(2 days)
Talent
Roundtable
& IC Award
(2 days)
Leadership
Off-Site
(2 days)
Leadership
Off-Site
(2 days)
Allocate
Incentive
Comp
Ongoing Business Reviews and Performance Reviews
Mid-Level Leadership Cycles of Use
Manage the Process“Balanced Focus”
Strategic Deployment Implementation
“Critical Few” Processes
Daily Management
Operating Unit Responsibility – SQDC KPI’s
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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“Critical Few” ProcessesAction Plan at Point of Impact
Bowler Charts
Operating Unit Responsibility – SQDC KPI’sKPI Bowler Charts
MONTHLY OPERATIONS REVIEW
Separate SD and KPI ReviewsException Reporting
Forward Focus on PotentialProblems & Opportunities
Quick Response Countermeasures
Front Line Leadership Cycles of Use
• Front-Line “Scorecard” & Performance Management System
• Identify opportunities in Operations Performance Reviews
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Performance Reviews (OPR)
• Problem solving to address gaps and align to business needs
Leadership Talent Development
The three basic objectives of talent are helping:– Employees understand where they can be most successful as
well as how they can best develop within the organization.
– Leaders perform better by making better hiring and promotion decisions and managing employees more effectively through improved mentoring and coaching.
– Organizations place talent correctly, maximizing employee productivity and being more proactive in succession planning.
Basic components of an effective talent development system are recruitment, assessment, on-boarding, development planning, performance management and career “pathing.”
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© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
The Reality Is…
The challenges with Leadership are not just technical / process oriented. The reality is that the challenge is with…
PEOPLEPEOPLE
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© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
High Performance Leadership Development Roadmap
Succession Planning
Identify Candidates
PilotAssess Capabilities
Ongoing Rotation
Level 3 Leadership and Mentoring
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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• L3 develops succession plan
• Key leadership roles• Key skills for success
and create skills matrix
• Expected future opportunities
• Utilize Cycle of Use outcomes to identify key L1 and L2 candidates
• Remove pilot candidates from existing role and begin rotation
• Assign L3 mentor• Review progress each
trimester
• Assess Candidates relative to skills matrix
• Begin rotation 2
Human Resources Oversight
Leadership Development Skills Matrix – Example
Bu
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Spo
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Total Rating Comments
Weight 10 10 10 10 10 7 3 5 Rng 65-325
Good sponsor; do it well; impacts bottom line; well
defined - logic for 10 weights
Sample Project 2 (20) 2 (20) 2 (10) 4 (10) 3 (10) 1 (5) 1 (3) 3 (3) 155
R & IP OP
Develop approach to increase
productivity 5 5 5 5 5 5 1 1 293 Strength in approach; all year initiative
Increase captured transit float 5 5 3 3 5 3 5 1 251
Attack float throughout NEO; leverage Chicago
success model
Reduce cycle time at multi-sites 1 5 5 5 5 3 1 1 239
Reconsidering significance with other priorities re:
remittance 1
HPC sustainment support 5 3 5 3 5 5 1 1 253
Approach defined not tested on larger opns; small
engagement ok
A MS desk top models for remit
Hendershott sponsor; solid AMS model success,
unit cost oppty, risk is higher - integrate with
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Based on required skills for succession positions
A MS desk top models for remit
1 pre transition 5 5 3 3 5 3 1 5 259
unit cost oppty, risk is higher - integrate with
overall initiative
Cycle time improvement within
R & IP processing 3 3 5 3 5 1 1 3 215 Sponsorship/timing 3rd and 4th Qtr
Improve business
measurement systems and
imformation access 5 3 3 5 3 1 1 1 205 Good production support rotation
Develop real time predictability
model for GTS customers 5 3 1 3 1 1 5 1 157
Pilot - ability to create competitive advantage;
revenue growth
State of Michigan income tax 1 5 3 3 5 1 1 1 185 New process; quick operational deliverable by Jan.
State of New York income tax 1 5 3 3 5 1 1 1 185
New process; quick operational deliverable by Mid
year.
Forecasting - improve ability to
schedule 5 3 1 3 1 1 1 1 145
Early successes, limited application; new
methodology/tool
High Performance Culture
Case Study
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Case Study
Client Case Study: Financial Services
• Employees: 20,000
• Global Footprint: 50 Countries
• Line of Business: Treasury andSecurities Services
• Legacy: Growth by M & A
• Situation:• Situation:
– Over 35 systems platforms
– “Loose confederation of states”
– Performance management tied only to financials
– Overly complex and non-standardized operations
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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The Journey
High High
Performance Performance AssessmentAssessment
is completedis completed
Results are Results are
shared and a shared and a Vision for Vision for
Transformation is Transformation is
CreatedCreated
L1 HPCL1 HPC
•• Extended Extended RolloutRollout
•• Introduction of Introduction of
problem solving problem solving
tools (Focus 1)tools (Focus 1)
L2 HPCL2 HPC
•• Extended RollExtended Roll--
outout
L1 HPC PilotL1 HPC Pilot
•• Performance Performance BoardsBoards
•• Production Production
Reviews Reviews
L2 HPC PilotL2 HPC Pilot•• Site/Regional Site/Regional
ScorecardsScorecards
•• Business Business
Rollout of HPCRollout of HPC
Orientation Orientation ProgramProgram
Implementation ofImplementation of
HPC MentorHPC Mentor
ProgramProgram
Best Practice Best Practice
forums beginforums begin
Transfer of HPCTransfer of HPC
knowledge andknowledge andownership to ownership to
Client LeadershipClient Leadership
Continued roll outContinued roll out
of advanced of advanced problemproblem
solving tools for solving tools for
management management
The Journey Begins Learning Building Sustaining Advancing
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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CreatedCreated
Corporate Corporate Leadership Leadership
identifies Shared identifies Shared
Values and Values and
BehaviorsBehaviors
outout
•• Introduction of Introduction of
problem solving problem solving tools (Focus 2)tools (Focus 2)
L3 HPCL3 HPC
•• Beginning of Beginning of
Annual Annual Business Business
Planning Planning
CalendarCalendar
•• Beginning of Beginning of
SemiSemi--Annual Annual OffsitesOffsites
•• Business Business
ReviewsReviews
L3 HPC PilotL3 HPC Pilot
•• Management Management
Practices and Practices and
Tools IdentifiedTools Identified
Talent Talent
Roundtables Roundtables
BeginBegin
Icon Forums Icon Forums
BeginBegin
forums beginforums beginmanagement management
levellevel
Before Cultural Transformation
Q2
• Recognize the need for cultural change
• Loose confederation of “states”
– Geographic / functional differences
– Inconsistent service delivery / High Performance concepts
Q3Q3
• Assessed the Performance Culture across organization
– Observation / interviews – all levels & geographies
– Social and operating parameters evaluated
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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All levels participated in survey tohelp us better understand our opportunities.
General Assessment Outcomes
• Robust performance reporting
• Customer service orientation
• Continuous improvement organization
• Standardization teams
• Recognizing and rewarding staff
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Strengths from survey
Some Social / Cultural Assessment Outcomes
• Strong, but inconsistent, messages across the organization
• Less emphasis on valuing employees / sustaining a positive work environment
• Teamwork is not a cultural strength
• Strong theme of cynicism at larger sites• Strong theme of cynicism at larger sites
• Consistent definition of values; inconsistent definition of tools/processes
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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A negative work environment results in cynicalbehavior and a lack of company pride.
Some Operating Assessment Outcomes
• Poor alignment of goals perceived as performance barrier
• Existing reviews skewed toward financial performance
• Recognize front line resources not tapped to drive performance
• Lack of accountability, follow-through driver of poor • Lack of accountability, follow-through driver of poor delivery
• Incentive compensation not linked to individual performance
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Operational opportunities at the beginning of our journey
Year 3 Outcomes
• Employee Engagement Surveyresults improved by 15% annually
• Assets under management grewby 18% over the same period
• IT System Platforms reducedto 6 from over 35
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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to 6 from over 35
• Eliminated the need for over 1 million square feet of operations space
• Number of associates remained flat at 20,000
Client Case Study: Business Results
12% Annualized Growth
Net Revenue
2003
2006
$4.6 Billion $6.4 Billion
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Net Income
43% Annualized Growth 2003
2006
$153 Million $316 Million
And Finally…
“Every day you may make progress. Every step may be fruitful. Yet there will stretch out before you an ever-lengthening, ever-ascending, ever-improving path. You know you will never get to the end of the journey. you will never get to the end of the journey. But this, so far from discouraging, only adds to the joy and glory of the climb.”
-Winston Churchill on Perseverance
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© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
Key Takeaways
• Corporate culture can and does have a direct impact on a company’s performance.
• By understanding and implementing the right social and operating architecture at all levels, it will enable you to achieve high performance.
• Culture change is a journey – it won’t always be easy, but it is rewarding.but it is rewarding.
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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Guidon Performance Solutions
Thank YouThank YouGuidon Performance Solutions
866-986-4414 or [email protected]
www.guidonps.com
© 2008 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
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© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.