Welcome
to the
Denison Certification Workshop
Building and Sustaining
High Performing Organizations
and Leaders
Workshop Agenda
October 15, 2014
October 16, 2014
NETWORKING BREAKFAST
NETWORKING BREAKFAST
Welcome and Introductions
Highlights and re-cap of Day 1
Culture & leadership: A driver of performance
 Why culture
 Path to High Performance
Linking Culture & Leadership
The Denison Model and the culture - performance Link
Business Case Studies
Applying the Model & Process
 Assessment process
 Leading the culture conversation
Additional leadership diagnostic tools
Application
Additional Information
Business case studies
 Mergers & Acquisitions
 Due diligence
 Transformation
Breaks and Lunch Provided
Breaks and Lunch Provided
GROUP DINNER AT THE EARLE RESTAURANT
Conclusion
Culture & Leadership:
A Driver of Performance
“The bottom line for leaders is
if they do not become
conscious of the cultures in
which they are embedded,
those cultures will manage
them. Cultural understanding
is desirable for all of us, but it is
essential to leaders if they are
to lead.”
Edgar Schein, Ph.D.,
Former Professor at MIT and recognized authority in
the field of Organizational Culture and Leadership
Mindset is the Foundation
Norms, Behaviors
and Artifacts.
Visible, tangible.
Personal Values
and Attitudes.
Less visible, but
can be talked about.
Cultural Values
and Assumptions.
Usually not visible at all,
often held
subconsciously, rarely
(if ever) questioned in
everyday life.
Image by R.A. Clevenger
Culture Reflects the Lessons
Learned Over Time
Visible Symbols
Lessons
Image by R.A. Clevenger
Culture
Survival
Underlying Principles
Rituals, Habits, & Routines
We must make automatic and
habitual ... as many useful
actions as we can.
The more of the details of our
daily life we can hand over to the
effortless custody of automation,
the more our higher powers of
mind will be set free for their
proper work.
William James
Hold Your Horses!
Morrison’s essay opens with a story of a young time &
motion expert trying to find a way to speed up artillery
crews during WWI, just after the fall of France. He watched
one of the five- man gun crews practicing in the field with
their guns mounted on trailers, towed behind their trucks.
Puzzled by certain aspects of their procedures, he took
some slow-motion pictures of the soldiers performing the
loading, aiming, and firing routines.
When he ran these pictures over once or twice, he
noticed something that appeared odd to him. A moment
before the firing, two members of the gun crew ceased all
activity and came to attention for a three-second interval
extending throughout the discharge of the gun.
Since this seemed like quite a waste of time, and the
young time & motion expert really couldn’t make any
sense of it, he asked an old artillery colonel to look at the
films to see if he could explain this strange behavior.
The colonel, too, was puzzled. He asked to see the pictures
again. "Ah," he said when the performance was over, "I
have it. They are holding the horses.”
Elting Morrison, Gunfire at Sea
Paul O’Neill at Alcoa:
Identifying Keystone Habits




It got so bad they would bring dummies to
the parking lots, dress them like managers,
and burn them in effigy. “Alcoa was not a
happy family. It was like the Charles Manson
family, but with the addition of molten
metal.”
O’Neill picked safety as one thing that unions
and executives could agree on. Zero injuries.
Injuries must be reported to the CEO within 24
hours.
“We killed this man. It’s my failure of
leadership. I caused his death. And it is the
failure of all of you in the chain of
command.”
Once you see everything as a bunch of
habits, it’s like someone gave you a flashlight
and a crowbar and you can get to work.
Changing Culture
By Changing Rituals, Habits & Routines
Good
Bad
Preserve
&
Strengthen
Invent
&
Perfect
Unlearn
&
Leave Behind
Rethink
&
Try Again
Old
New
Path to High Performance
“Why is culture important to the
performance of your organization?”
Executive team alignment,
commitment, and sponsorship
“What is the impact?”
Disciplined and intentional
culture development; progress
towards higher performance
“How can we ensure effective and
sustainable culture development?”
Detailed project and
communication plans;
Role clarification
Sustainable
Improvement
“How do we translate results
into thoughtful actions?
Detailed action plans and
priorities at different levels
Path to High
Performance
“What is your current state?”
Data collection for a robust
understanding of the current state
Honest
Conversation
“How do we create
common understanding?
Common understanding across
the organization and clear priorities
“What is data telling us?”
Integration and synthesis of
different sources of data
A Model of High Performance
What Counts…
Adaptability
Pattern, Trends, &
Market
Translating the demands
of the business
environment into action
“Are we listening
to the marketplace?”
Involvement
Commitment,
Ownership, &
Responsibility
Building human capability,
ownership, and
responsibility
“Are our people
aligned and engaged?”
Mission
Direction, Purpose,
& Blueprint
Defining a meaningful
long-term direction
for the Company
“Do we know where
we are going?”
Consistency
Systems, Structures,
& Processes
Defining the values
& systems that are the
basis of a strong culture
“Does our system
create leverage?”
MISSION
Creating Shared
Vision: creating a
clear and compelling
vision of a future state
Defining Strategic
Direction & Intent:
understanding,
developing and
executing strategy
Defining Goals &
Objectives:
setting clear goals and
tracking progress
against those goals
CONSISTENCY
Managing
Coordination &
Integration:
building effective
working relationships
with a range of
colleagues &
stakeholders across
the organization
Working to Reach
Agreement:
engaging in effective
problem solving and
decision making
Defining Core
Values:
aligning the behavior
of self and others in
accordance with the
Core Values
INVOLVEMENT
Developing
Organizational
Capability:
developing employees
to meet current and
future organizational
needs
Building Team
Orientation:
developing successful,
effective teams
Empowering People:
sharing information and
communicating so that
employees have the
information they need
to make informed
decisions – the ability to
make a difference
ADAPTABILITY
Creating Change:
encouraging change
and continuous
improvement
Emphasizing Customer
Focus:
understanding
customer needs developing responsive,
effective working
relationships with
customers
Promoting
Organizational
Learning:
seeing continuous
learning and innovation
as critical to adapting
and leading in a
dynamic environment
Dynamic Tensions
Effective leaders and organizations are
Externally AND Internally focused
Effective leaders and organizations
focus on Flexibility AND Stability
Dynamic Tensions
Effective leaders and
organizations balance
‘External Adaptation’ AND
‘Internal Integration’
Effective leaders and
organizations offer
strong leadership AND involve
their employees
Beliefs and Assumptions:
The ‘GREY’ Area in the Middle of the Model
 At the heart of every culture are a
set of beliefs and assumptions –
about the organization and its
people; the leaders; the customers;
competitors; the sector; etc.
Beliefs and
Assumptions
 Resolving cultural issues and making
progress in the development of a
high-performance culture often
requires a thoughtful exploration of
the underlying beliefs and
assumptions.
The Culture – Performance Link
Culture and Business Performance
· Growth
· Innovation
· Customer
Satisfaction
· Stable
Performance
Over Time
· Profitability
ROI, ROS, ROE
· Operating Performance
· Quality
· Employee Satisfaction
Impact on Performance
The higher the culture scores, the greater profitability, sales growth,
& market value (based on a study of 130 firms; 2000-2010)
Bottom 25%
Top 25%
Return-on-Assets
2.3%
3.2%
Sales Growth
1.4%
23.1%
2.6
4
Market-to-Book Ratio
Another Example
Comparison of EBITDA and Sales Growth for the Top vs. Bottom Half of
Private Equity Portfolio Companies by Culture Scores
Avg. EBITDA Growth
2%
10%
Avg. Sales Growth
-3%
5%
24
Culture Causes Performance
2 Years
1 Year
In summary, culture comes first and serves as a driver
of subsequent performance levels.
When Is High Consistency Bad?
When Involvement is low, high Consistency will likely
lower an organization’s performance.
The Denison Global Benchmark
 1000+ organizations in the normative database
 Robust industry representation
 Benchmarks are stable across years (2000-2012)
 International representation
 50%+ of the respondents from outside the U.S. within the last 5 yrs
 1/3 of headquarters outside of U.S.
 The most stable, representative comparison group
 Different Industries and different countries, on average,
have very similar results to the global benchmark
 Composites are available for many different industries,
regions and countries
Why We Use Percentiles
Survey Item
Mean
% Favorable
Score (4s & 5s)
Most employees are highly involved in their work
3.94
86%
There is an ethical code that guides our behaviour
and tells us right from wrong
3.78
82%
Customer input directly influences our decisions
3.59
86%
People work like they are part of a team
3.46
64%
There is good alignment of goals across levels
3.21
57%
Our vision creates excitement and motivation
for our employees
3.04
41%
It is easy to coordinate across different parts
of the organization
2.81
40%
Applying the Model
& Process
The100 Year Old
Manufacturing Company
100 Year Old Mfg. Company
Key Phases of Assessment
Data Collection
Denison Support
PROJECT PHASES
Project Planning
Set-Up & Design
Administration
Reporting
Purpose
Client Needs
Project
Specifications
Personalization
Demographics &
Reports
Technical Support
Survey
Development
Participation
Monitoring
Reporting Strategy
Report Delivery
COMMUNICATION
Internal Support
& Alignment
Creating
Awareness
Invitations &
Participation
Information
Roll-Out
Denison Support
PROJECT PHASES
Project Planning
Purpose
Client Needs
Project Specs
Set-Up & Design
Administration
Reporting
• Context & Goals
• How we help you achieve your goals?
Personalization
Tech & entire
Business
• Open
about
process
Survey dialogue
Items
Support
• Previous survey experience – good or bad?
Demographics &
Participation
Data
• Support based
on your specific needs
Reports
Monitoring
Survey
• Survey
Population
& Timelines
Report
Delivery
Development
Interpretation
Action Planning &
Implementation
Change Monitor /
Re-Survey
COMMUNICATION
Internal Support &
Alignment
Creating
Awareness
Invitations &
Participation
Information
Roll-Out
Denison Support
PROJECT PHASES
Project Planning
Set-Up & Design
Purpose
Reporting
• Survey Link Personalization
Client Needs
Project Specs
Administration
• Demographic & Custom
Personalization
Demographics &
Reports
Survey
Development
Tech
& Business
Questions
Support
Data
• Participation
Survey Development
Monitoring
Interpretation
• Final review and approval
Action Planning &
survey link
ReportofDelivery
Implementation
Change Monitor /
Re-Survey
COMMUNICATION
Internal Support &
Alignment
Creating
Awareness
Invitations &
Participation
Information
Roll-Out
Denison Survey: Content Modules
Engagement

Short instruments that may be
added to the DOCS

Brief (5-6 items), reliable, and valid
measures

Benchmarked against a database of
organizations

Data reported in percentiles

Strengthens the value of information
from the DOCS


NEW modules currently being piloted
Better integration of “safety work” with
business performance
Commitment
Innovation
Trust
Safety and Risk
management
DOCS–Modules Link: Overview
The DOCS
Content Modules
 Assesses a high
performance
business culture
 Supplement
information
provided by the
DOCS with more
targeted
questions
 Identifies cultural
strengths/weakn
esses as they
apply to
organizational
performance
 Results are
presented using
the DOCS
benchmark
database
Overlap
The DOCS provides some
information about the topics
covered in the content modules
 Potential
outcomes to a
positive
organizational
culture
 Results are
presented using
each module
benchmark
database
Denison Support
PROJECT PHASES
Project Planning
Set-Up & Design
Administration
Reporting
Purpose
• Participation monitoring
• Real-time
updates
Client
Needs
Personalization
• Targeted reminders
• Overall response
rate
Project Specs
Survey Items
Demographics &
• Technical support
Reports
Survey
Development
Technical Support
Participation
Monitoring
Reporting Strategy
Reporting Delivery
COMMUNICATION
Internal Support &
Alignment
Creating
Awareness
Invitations &
Participation
Information
Roll-Out
Denison Support
PROJECT PHASES
Project Planning
Set-Up & Design
Administration
Reporting
Purpose
• Who, what, where, when, etc…
Client Needs
Personalization
• Priority level reporting
Tech & Business
Support
• Report delivery options
Demographics &
Participation
• Another opportunityReports
to re-emphasizeMonitoring
the
Project Specs
purpose
Survey Items
Survey
Development
Report Delivery
Reporting Strategy
Reporting Delivery
COMMUNICATION
Internal Support &
Alignment
Creating
Awareness
Invitations &
Participation
Information
Roll-Out
Denison Support
PROJECT PHASES
Project Planning
Set-Up & Design
Administration
Reporting
Purpose
Client Needs
Personalization
Tech & Business
Support
Demographics &throughout
Participation
• Support with communications
the
Reports
Monitoring
Project Specs
Survey Items
process
Survey
• Sample communications/plans
Report Delivery
Development
• Example of best practices
Reporting Strategy
Reporting Delivery
COMMUNICATION
Internal Support
& Alignment
Creating
Awareness
Invitations &
Participation
Information
Roll-Out
Culture is a reflection of the collective
Culture data should do 3 things:
1. Drive honest conversations among the collective about
‘the way we do things around here’ that…
2. Lead to thoughtful actions and…
3. Results in higher performance
High level
of clarity &
alignment
Higher levels
of performance
Mix of clarity &
confusion
Average levels of
performance
Confusion &
uncertainty
reigns
Lower levels
of performance
Competition
Changes in political
environment
Global & Local Economy
Regulatory changes
External and Internal Forces that have
the ‘potential’ to create more
uncertainty and ambiguity
Restructuring
New technologies
M&A
Leadership changes
Changes in Strategy/Focus
Business Case Studies
Leadership
“Culture and leadership, when one examines them
closely, are two sides of the same coin and neither
can really be understood by itself.”
5 Reasons to Develop the HABIT
of Leadership Development
1. To help an organization meet today’s business
challenges – as well as the challenges of the future
2. To develop leaders who are capable of maximizing
the performance of their employees
3. To demonstrate an organization’s commitment to
high-performance and continuous improvement
4. To create an environment in which open
communication and feedback is encouraged and
employee empowerment is valued
5. To foster consistent leadership values, practices and
behaviors throughout an organization
A Keystone Habit: 360 feedback
as part of a Leadership Development Strategy
 Who is the target of the development process?
 Sr. Leadership
 Middle Managers
 Front-line management
 Who will have access to the data?




Leader only
Leader and his/her Boss
HR
Others
A Keystone Habit: 360 feedback
as part of a Leadership Development Strategy
 How will the feedback be used?
 Developmental purposes only
 Team development
 Performance appraisal (Not recommended)
 How will development plans be created and
executed?
 Expectations for the creation of a Development Plan
 Follow-up coaching support (from whom)
 Organizational resources available
 Is there a communication plan in place?




Purpose & goals
Data collection details including timelines
Confidentiality expectations
Development plan development and implementation
The Denison 360
The Leadership Global Benchmark
 13,959 leaders included in the normative database
 Representing over 900 companies and rated by over
206,000 bosses, peers, and direct reports
 Wide variety of industries, job function, management
level, and tenure represented
 Benchmarks are stable across years
360 Benchmarks
Strongly
Disagree
1
Strongly
Agree
2
3
Rarely Used
4
5
6
7
360 Benchmarks
Strongly
Disagree
1
Strongly
Agree
2
3
4
5
6
7
Mean scores in the 5.5 to
5.8 range will place a
leader around the 50th
percentile on most indices.
Scores in this area lead to
Low percentile rankings when
compared to the database
of leaders.
360 Benchmarks
Strongly
Disagree
1
Strongly
Agree
2
3
4
5
6
“But my people rated me about average!”
7
Effective Leader
Self






Combined Other
A recently hired president in the retail industry
Known for ability to increase sales, quality, and profits
Creative risk taker - pushes the envelope
Drives intense customer focus throughout organization
Viewed as having chairman of the board potential
Continuously sought out for high profile CEO positions
Less Effective Leader
Self
Combined Other




A recently dismissed President in the retail industry

Short term focus resulted in failure to meet changing customer
requirements
Tenure resulted in several years of declining sales and market share
Over-control a key problem
Failure to provide long term sense of direction led to lack of identity in
the marketplace
High Potential Executive
Self
Combined Other



Being groomed for CEO of major corporation


No nonsense leader respected and admired by employees
Always develops her direct reports who are constantly promoted
Known as extremely demanding and accepts nothing but top
performance
THE organizational role model for high performance
Large Perception Gap
Self





Combined Other
Manages by fear and intimidation
Always blames others for mistakes
Solid technical skills, but lacks basic management skills
High level of turnover in division
No awareness of negative impact on productivity of employees
Application
Business Case Studies
Additional Leadership
Diagnostics
OnDemand Leadership
Development 360
OnDemand Leadership
Development 360
 The DLDS on demand!
 Easily measure leadership effectiveness leveraging our
online system
 Leaders themselves
1.
2.
3.
4.
Define and invite raters to participate
Take the self survey
Monitor
Order report set
Culture Snapshot
So New Leaders Get The Whole Picture
Developed in partnership with Leader OnBoarding
Culture Snapshot
 Purposeful, powerful diagnostic intervention for a New
Leader
 Administered to a select group of raters early in a New
Leader’s tenure (2 weeks – 2 months)
 A subset of the standard Denison Organizational
Culture Survey (36 items plus 2 verbatims)
 Helps a New Leader understand the culture of the
new operation, that they will be leading
 Engages key stakeholders to the New Leader’s
operation in the assessment process
Culture Snapshot
 Individual-level




Increased probability of New Leader success
Faster integration and performance
Improved retention
Increased employee satisfaction
 Operational-level
 Reduced onboarding cost
 Higher probability of operational performance and New
Leader success
 Engages key stakeholders in the effort to increase operational
effectiveness
Culture Snapshot Sample Report
The Denison Leadership
Potential Report (DLPR)
Developed in partnership with Hogan Assessments
The Leadership Potential Report
The Leadership Potential Report
The Leadership Potential Report
Scoring Key
The Leadership Potential Report
 Multidimensional approach to leadership
development
 Combine personality and value traits with predicted
potential leadership competencies
 Individualized developmental recommendations
 Selection
 Development
The Leadership Potential Report
 Based on Hogan’s three main assessments:
 Hogan Personality Inventory (HPI)
 Hogan Development Survey (HDS)
 Hogan Motives, Values and Preferences Inventory (MVPI)
 30-45 minutes completion time
 Hogan scores are mapped to Denison’s Leadership
Development competencies
 Reports generated through Hogan’s online platform
The Leadership Potential Report
The Leadership Potential Report
Additional Information
Your Denison Pilot Package
25 person Denison
Organizational Culture
Survey Pilot
1 Person Leadership
Development Survey
OR
Your pilot package includes the full survey of your choice,
full report generation, and basic interpretation and
feedback on results from a Senior Denison Consultant.
Denison Organizational Culture
Solutions Pricing
 Denison Organizational Culture Solutions Package
Project Options:
 Change Monitor survey
 Modules
 Available in 45 Languages
 Download the complete OCS Pricing Sheet from the
workshop portal.
Denison Organizational Culture
Solutions Pricing
Denison Leadership Development
Solutions Pricing
 Leadership Development 360 Package:
 Includes Change Monitor Survey and Reports
 Available in 16 Languages
 Download the complete LDS Pricing Sheet from the
workshop portal.
 OnDemand Leadership Development 360: $195
Denison Leadership Development
Solutions Pricing
 Leader Onboarding Culture Snapshot
 $1,500
 Up to 35 Raters
 Full report package
 Denison Leadership Potential Report (DLPR)
 $295/report
 Based on three Hogan personality assessments
 HPI, HDS and MVPI
Solutions Essentials
 Learning the Basics
 Understanding Denison’s Solutions
 Selling the Solutions
 Sample Proposals
 Preparing for the Survey
 Interpreting the Results
 Linking to Denison
 And more……………..
Certificate of Participation
Those who complete the Workshop will be issued a
certificate of participation in PPT and PDF formats, and
an efile logo that can be posted to a website, email
signature file, or any other online outlet you choose.
Trademark policies are in place and are expected to be
honored when displaying your certificate of
participation.
For more than 10 years, Denison Consulting's Best
Practices Forum has been the premier event for business
leaders who seek to leverage culture and leadership as a
source of competitive advantage. This annual gathering
is a unique opportunity for like-minded executives to
connect and collaborate with renowned thought leaders
and Denison clients from industries across the globe.
Join us at the 2015 Denison Best Practices Forum to gain
insights into:
How your organization's culture drives key performance
metrics such as ROE. ROA, Profitability, Market Share. and
customer and employee satisfaction
How managing your company's culture makes or breaks
your sales growth strategy
Why culture matters to key HR functions such as talent
management, retention, onboarding, development, and
performance measurement
CONNECT with like-minded peers, Denison
leadership, experienced practitioners, and
acclaimed thought leaders.
LEARN from the challenges, insights and actions of
leading organizations.
PARTICIPATE in thought-provoking dialogue.
BUILD your professional community and learning
network.
EXPLORE different perspectives to your business
challenges.
RSVP at
www.denisonconsulting.com/forum
Thought Leadership
 Our Thought Leadership practice creates solutions to
clients’ most challenging and complex questions…
 How do you build a culture that supports both safety and
profitability?
 How do you design a physical workplace to promote a strong
culture?
 How do you create a culture of virtue across a global
organization?
 Works dynamically with organizations to address a
range of potential activities, from problem
definition to client advice and guidance to designing
and implementing tangible culture and leadership
solutions
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