High Performance Culture Transformation

8/10/2019 High Performance Culture Transformation

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Measuring and Managing

High Performance CultureTransformation

Presented by:

Rohn Rajen

Partner

Human Capital Group Asia Ltd


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High Performance Culture Transformation

Basic questions:

What is a high performance culture?

Is performance linked to organizational culture?

Can culture be measured?

How to change culture?Good example? Case study


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H i g h Pe r f o r m a n c e Cu l t u r e

Th e D en i s o n M o d e l


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What is Culture?

Deeply held beliefs and assumptions

How people in our organization think and act,every day

the way things are done around here

Result

Beliefs &

Assumptions

Mind

setBehavior

Performance

Dr Denison, IMD


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History

Model developed by Prof. Daniel Denisonof IMD

Based on over 25 years of research linkingorganizational culture and leadership toperformance measures such as Return on Equity (ROE)

customer satisfaction

sales growth

employee satisfaction

innovation

quality and other performance measures


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Solutions

Mergers & Acquisitions Transformation & Turnaround

Aligning Strategy & Human Capital Talent Management & Leadership

Development

Leadership Transitions


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Services

Denison Organizational Culture Survey Modules: Engagement, Innovation, Trust

Denison Leadership Development Survey

Change Monitors Pulse surveys build in accountability and check

points

On-line Dashboard and Action Planner Helps organizations translate survey results

into actionable interventions

Research & Consulting Group Services Custom questions and reports development

Qualitative analysis Change management


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1086 companies in 48 Countries, >500,000respondents

75% North American, 15% Europe, 7% Asian,

3% Africa/Middle East/Central & SouthAmerica

Different Industries and different Countries, on

average, have very similar results to theglobal benchmark

Using the Global Benchmark database Composites are available for many different

Industries and Countries

Global Benchmark


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Organizational Interventions

HIGH PERFORMANCE ORGANIZATIONS

1

2


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Adaptability

Pattern..Trends..Market

Are we listeningto the marketplace?

Mission

Direction..

Purpose..Blueprint

Do we know where

we are going?

Involvement

Commitment ..Ownership Responsibility

Are our peoplealigned and engaged?

Consistency

Systems..Structures..Processes

Does our systemcreate leverage?


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This is one ofthe four keytraits that

impactbusinessperformance.

This is one of thethree indices thatmeasure behaviorsfor this trait. Each

of the twelve indicesconsists of fivesurvey items.

This is a percentilescore. Apercentile isorganizations

score asbenchmarkedagainst theaverage of otherorganizations. This

organization, forexample, scoredbetter than 68percent of all ofthe companies inthe database inthe area of Goalsand Objectives.

The profile is coloredto show the quartilein which thepercentile falls. This

score, for example,falls in the thirdquartile.


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More Color

is Better!

A profile of a

highperforming

culture

A profile of anaverage

performingculture

A profile of alow

performing

culture12


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The Link to Performance


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Culture Links to Performance

Innovation &

Customer

Satisfaction

Stable

Performance

Over Time

ProfitabilityROI, ROE

Operating

Performance

QualityEmployee Satisfaction

Growth


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Flexible and Stable

FlexibleAdaptability + Involvement

A flexible organization has thecapability to change in response to the

environment

StableMission + Consistency

A stable orientation contributes to anorganizations capability to remainfocused and predictable over time


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External Focus and Internal Focus

External Focus:

Adaptability + Mission

The organizations focus ison adapting and changing inresponse to the external

environment

Internal Focus:Involvement + Consistency

The organizations focus ison the dynamics of theinternal integration ofsystems, structures, andprocesses


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Dynamic Tension:

High performanceorganizations learn how to

link the purpose, direction,and goals of the organization(top - down) to a sharedsense of responsibility,ownership and commitmentwith all employees(bottom - up).

Employees understand therelationship between theirindividual goals and theorganizations goals and arehighly motivated to

contribute.


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DynamicTension:

Successfulorganizations learnhow to cope with thedual problems ofexternal adaptation

(stimulate progress)and internalintegration (preservethe core).

It is not an either/orproposition - high

performanceorganizations must beable to do both at thesame time.


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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


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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 greaterprofitability, sales growth, and market value than those with lower culture scores.

Top 25%Bottom 25%


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Automotive Company

212004 2006


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Changes in Automotive Company

22

2002 2003-006Profit On plan 03-05 : Beat profit plan

06: NA Restructuring

Quality 37 PPM Single Digit PPM

New business wins 2 Non GM wins inprior 5 years

Over 20 non GM wins

Globalization No Asia presence 4 programs won in AsiaNew plant established inChina

Global leadership 8 leaders in 5years

1 leader

Global coordination None Extensive globalcoordination

Source : IMD-4-0309 ; 2009


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We have the same ingredients anduse the same ovens, but its the

skills, attitude and experience of the

workforce that differentiates thebrands.

David Brandon

Chairman and Chief Executive of Dominos Pizza


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T0

PROTON CASE STUDY

CHANGE MANAGEMENT PROJECT (PCMP)

(PROCESS SAMPLE ONLY, DATA NOT INCLUDED)


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Initiative T0: Change Management

What the

initiative is

about?

Why is itimportant?

What should

change?

How will

success look

like?

What we

need from the

team?

This initiative aims to transform the mindset and working behaviour of allPROTON employees across the business chain, in tandem with T1 T13 processand operational excellence initiatives. Ultimately, aligning the companys culture,values, people and robust processes, to create a high performing organisation.

Working attitude

Communication channel

Legacy issue

Process Change Management requires Behavioral Change Management to

complement it. It is imperative that PROTON as an organisation to embrace bothchanges which eventually will result in a more agile, responsive, cohesive henceproductive working culture

Clearly understand Proton imperatives and the need to change

Focus more on the future and less on the past; focus more on finding solutions andless on lamenting on problems

Willingness and an unwavering commitment to change and be a part of a newProton that will be the model for Malaysias global ambitions

We will attain an organisation receptive and resilient to changes for sake of

betterment

We will forge a cohesive organisation which will strive and motivated for a

common goal

We will possess a high performing work culture practising the best-in-class workprocesses


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Conductorganisational

effectivenessand leadership

survey

Collate

andinterpretresults

of survey

Create &communicate

a coherent

vision, andempowerteam toexecute

Wave 1

Wave 2

andbeyond

Change Management Framework

Climate survey

360 degree survey Leadership survey

Dennison survey

Engagement survey

A B C D E

Keyactivitie

s

Issue

Time-

line

Highperform-

ingorganisa-

tion

Start Change Deploy Change

12 months 42 ~ 48 months

Not 100%participation

Tabling results to MD

and seniormanagement team

Accuracy of results Results are not readily

accessible

Create a change

vision Appointment of

Champion and

Program Manager

Appointment of

external expert

Champions areineffective

Delay appointment of

external expert

Ensure that quick

wins can be achieved

to anchor sense of

achievement and

credibility

Average 70%participation

No follow-up

activitiies

Institutionalize new

working culture

Build a monitoring

process to track

change

TBD

Implement & moni tor change

6 months

i h j f l l f i


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High Performance Leaders

High Performance TeamsHigh Performance Individuals

Strategic Alignment

High Performance Organization

Denison Survey ResultsPMO & Online Dashboard

Action PlanningTransformation Framework

Paving the journey of cultural transformation


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Adaptability: Line Item Analysis

Perceived Strengths: Process flexibility; focus on continual

learning and improvement

The perception isthat wecontinuallyattempt to learnand improve.However, attemptsto make changesare usually met

with resistance. Itis not always clearhow the interestsof the customerare reflected inour decisions. We

are generallyreactive whendealing withcustomer concerns

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Mission: Line Item AnalysisPerceived Strengths: Shared vision and strategic intent

We have aclear sharedvision and weare in a

position tomake decisionsthat can affectthe industry.However thereis a tendency

to engage inshort termthinking. Thisoften leads toinsufficient buyin amongemployees inachievingbusinessstrategies

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HPL H i g h Pe r f o r m a n c e Le a d e r s

H PT H i g h Pe r f o r m a n ce Te am s

H PI H ig h Pe r f o r m a n ce I n d i v id u a l s

Le a d e r s Ch a n g e l e a d e r

M i d d l e M an a g e r Ch a n g e a g e n t

Se l f d i r e c t e d i n d i v i d u a l s Em p o w e r e d s h a r e d

l e a d e r s h i p


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Company wide score board and announcements, withOnline dashboard real time, accessible to all

Quarterly review meeting with PMO, Trainers,Consultants, MCM, Change agents & Project team heads

Rewards incentives, celebration, recognition and awardceremonies every month (celebrating success)

Special workshops on Execution Skills for selected

team leaders

HR to look into talent development, PMS, Recruitmentpolicies on performance, Incentives, Career

development and World class human capabilitydevelopment.


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Dismantle silo structure

Move away from territorial

behavior / attitude

Enhance sense of urgency

and boost momentum to

succeed

Up to

10,00

0

emplo

yees

involved in

Target

2010 2011 2012 2013 2014

Across all 10,000 employees involved intransformation process by end of 2014

Transformation essence

Core Value Enhancement

Drive by Champions

Program Turun Padang

Yearly Denison

Survey

Leadership Alignment

& Development

SDI Profiling

EQ and Constructive Confrontation

Leadership coaching

Katzenbach Team

Internal Communication

Dashboard Measurement

12

3

45

67

1. Quality

2. Customer

Focus

3. Innovation

4. Teamwork

5. Speed

6. Caring

7. Honesty

8

Quarterly Review

T1

T2

T3

T4

T5

T6

T7

T8

T9

T10

T11

T12

T13

Change Starts With Me (3,000 pax) Change Starts With Me (10,000 pax)

ProtonsKP

Is

Change Management Long Term Strategy: Wave 1 & Wave 2

Bigger Picture Measurement & Tracking


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Bigger Picture - Measurement & Tracking(Projected Change in terms of %)

2010 2011 2012 2013 2014

Status QuoProjectedYoY +5%

ProjectedYoY +10%

ProjectedYoY +25%

Projected YoY+40%

HighPerformance

Culture

Measurable,Sustainable,ManageablePerformance linked

Culture


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High Performance CultureTransformation

Rohn Rajen

r o h n@h u m a n c a p i t a l g r o u p . a s i a

www.humancapitalgroup.asia

Th a n k y o u

Q & A


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1) CEO as the number one CCO (Chief Change Officer) leading thewhole program

2) Top buy in by all top mgmt members. Only 3 options acceptable;

a) fully support

b) need more information, but supportive

c) doesnt support and willing to leave on my own (not speakingup, not supporting or sabotaging are not acceptable at all)

3)Corporate philosophy of purpose, vision, direction is clear

4)Culture is measured (Denison) and all initiatives are measurable

5)Communication and open sharing to all (building trust and

buying in)6)Teach, coach and develop change leader in all levels to buildtrust (not trustworthiness/ loyalty)

7)Personal responsibility from everyone (leaders, teams,

individuals, partners)

Documents

High Performance Culture Transformation