Energize Your Corporate Culture For Fun Annual and Profits ... · PDF file• The value...
Transcript of Energize Your Corporate Culture For Fun Annual and Profits ... · PDF file• The value...
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Energize Your Corporate Culture For Fun and Profits
January 24, 2013Kiawah Island
AnnualConference Part I:
Why Get Savvy, Now, About Formal Corporate Culture Management
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Bruce Merrifield is the President of Merrifield Consulting Group, Inc.
The conflict of interest was resolved by peer review of slide content.
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What Is Corporate Culture?• The way we do things around here (Walk>>Talk)• Fish and Water; Cosmos and Dark Matter• You have one. Is it strong, healthy, agile, can-do or…the
opposite descriptors? • They grow unconsciously: layers; temporary fixes
stay;• Generals fight last war; dated mental models,
assumptions• Your experiences with great/awful:
leaders/organizations?• Manage the culture (and subs) or it will manage you to
fading results • How do you – define, measure, manage – it?• Why is “now” a good time to address these questions? 3
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Are We ALL In The Happy Spot?
Know WhyMissionVision
Know What
Strategy**
Know How
Values*
Know WhoProcess TeamsKinetic-Chain
checklist
*Shared: values, assumptions, behaviors, metrics, actions, artifacts** Sustainable UMP’s for each target customer niche
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More Specific Quiz For ALL? (1)
• How long to educate new hire to know:
• #1 Niche of customers we serve?
• 5 most (net present value) profitable customers in that niche
• The value equation metrics to be the best-- How are we best value &/or low-cost provider?
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More Specific Quiz For ALL? (2)
• How can they directly/indirectly make value/cost #s happen? -- And continuously improve by becoming a “10” (“mastery”)?-- Be a cross-trained, service-value-process
team member?-- Explain Line-of-sight for their inputs to
growing their gainshare $’s?
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• What’s in it for ME and WE (all stakeholders)?-- What if I don’t uphold contract of“Privileges ≈ Responsibility”?
• Where is this all going with integrity and pride?-- Job => career => calling-- We’re the best in the industry? We deliver
best for all stakeholders? Get “1st choice”
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More Specific Quiz For ALL? (3)
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Pyramid Views on “Culture” (1)
“Top, Middles, and Bottoms:
“Tops” (CEO’s): It’s really important; my job. Short-term distractions
“Middles”– Propaganda/fantasy goals from top v. real
needs from bottoms– Tell both sides what they want to hear;
take no sides; and survive8
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“Bottoms” (and audiences in general): – Glaze-over effect of “culture” – Futility of individual action: manage
nebulous, abstract, complex, collective habits and sub-cultures
– Show-up, shut-up, turn-crank v. Hobby Energy and Home Economics Savvy:
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Pyramid (Audience) Views? (2)
How to induce HE-squared??
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Profit Power of Culture? “Culture isn’t one aspect of the game, it is the
game” … Lou Gerstner CEO (Re: IBM turnaround)
“Innovation accounts for 30% of our profits, culture 70%” … Ken Iverson CEO of Nucor
Top company CEO’s: “50-70%” of profit power
Wall Street Analysts: It’s vital. We ignore it.
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Zealots Teach Culture “Secrets” Disney, Zappos: tours and classes Undisguised cases: 3M, FedEx, Clark Security
Why?Know competitors can’t do it. Confuse themTheir moats for their niches are too strongEmployees who teach burn brighter Altruism for the 4%(+) that can really change96% don’t have four factors for change
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5 Factors In My Past Turnarounds
(1) Lead
(2) Net Profit Analytics
(4) Culture
(5)Execute Change
(3) Core Renewal Strategy
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Why the 4/96 split? (1)
Life-cycle reality. Once past entreprenurial-stage of company (industry) life-cycle, we:
– Standardize to mass-produce: hurts flexibility
– Size increases trust issues. Add can’t do: rules, regulations, audit compliances, etc.
– Complexity accumulates and over-stays
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More Reasons For 4/96 split? (2)– Promote from within. Generals fight last war
with dated assumptions and skills. Entrepreneurs replaced by “Stewards”• Few do abstractions anew well: • “Who else has done this?” • How do you measure the “dynamic upside”?• Change has no constituents!
(I’ve got 5 years to cash out)– Environment changes faster than company:
dying begins.– 99% of all businesses in history are dead.
Or, is “innovation” in the DNA as it is at 3M? 14
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Can 96% Renew Culture?
(I’m a “middle” in a “96”firm. Futile!) But, team can start talking and tuning(?) Is “Culture Mgt.” a “best practice
(”science”) like: “JIT, TQM, Six Sigma”? – Not quite. But, “Best Practices” aren’t the
4 circles that insure “execution”– Many “gotcha” policies overshot; just
need “and/both” loosening
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Where Does A “Middle” Begin(?) Get Culture audit ideas from historical models To ask “good questions” to the right people,
then, “live into them” Be the dumb, neutral messenger; put the
risk on me: Handout-slides as discussion starters Youtube clips (merrifield.com, 338, 8 playlists) Playlist 8: 1-29 on “Culture Management”
Massive education of “Bottoms” to know the “knows”? ….YT, PL 5: 1-86 “Achieving Value”
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Start Noticing Culture Elements
Patient, open-minded, anthropologist approach What are gaps between “talk” and “walk” ?
Real: political power, calendar time, funding, cuts, winners and losers, accepted behaviors
Value-Tales and their heroes?“Artifacts, rituals” are emergent objects? Zero in on the current state of the Culture Then, what North Star & tuning guidelines?
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History Of Culture Mgt (1)
• 100 years of “Human Behavior in Organizations” (HOBO) Research Findings add up to formal “Culture Management” today
• Taylorism peaked in 1910: it was one dimensional
• Henry Ford $5 per day (1/14) … total turnover econ’s
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History Of Culture Mgt. (2)
• 3m: 15% Rule (1925) • “Encourage experimental doodling”• “If you put fences around people you get sheep.
Give people the room they need”• William McKnight (59 years at 3M from ‘07-’66. • Dead-end divisions spun out in ’96 as Imation)
• Hawthorne light exp’ts (’24-’32)… Attention Inspires• Then Distractions: depression, WW2, ’46-’60 mfg
monopoly. VW bug invasion, etc. sparked new Q’s
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History Of Culture Mgt. (3)Grand Syntheses Models: ’60-on Highlights Doug McGregor: “Human Side of Enterprise”
(‘60; theory X v Y; and Bill Gore did it!) Blake-Mouton Management Grid (2D’s, X/Y in ’64) McKinsey 7-S Model: 6/80; “Structure is not Org.” My “kinetic chain” implementation checklist.. ’84 Geoffrey Moore’s Life-Cycle Assumption Mgt.: ‘90+ Template Pyramid of buzz words: ‘00’s Heskett’s “Culture Cycle”: 2012 (20+ years R&D) Quick overview to help “see” Culture
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Authoritarian X (v) Participative Y (1)Attitude:
– X: Don’t like work/avoid it– Y: Need to work. Enjoyable in right conditions
Direction– X: Force me to do right things– Y: I can self-manage if I believe in it
Responsibility– X: Don’t want it– Y: Prefer autonomy in right conditions
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Authoritarian X (v) Participative Y (2)
Motivation– X: Only fear and greed buttons– Y: Self-actualization; intrinsic joys of mastery;
design in “flow” (“flow” YT: 5:54-58)
Creativity– X: Only creative at getting around rules– Y: All creative in right conditions
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Blake Mouton Management Grid: 2D’s
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McKinsey 7-S’s: “Happy Atom” (6/80)
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7-S Comments• A one-size fits all “org. effectiveness” tool!?• All S’s aligned or change doesn’t happen• If one is vague/un-aligned, then all devolve.• “Stupid alliteration”, but Gupta ‘08 speech• “Hard is soft. Soft is hard”
• Hard S’s: Strategy, Structure, Systems (often weak)
• Soft S’s: Shared values, staff, skills, style… • …Are Soft S bedrock for Hard S’s?• But, which first? Tool for change champions? My
‘84 “kinetic chain” adaptation. 25
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Linear, Change-Mgt. Checklist*
Sustainable Profit Power7. Incentives
6. Tools5. Education (=> Skills)
4. Great People (apt. & attitude)3. Systems (simple, flex., friendly: Ex 4)
2. Strategy/Culture 1. Leadership (People)/Mgt. (Science)
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Reweave the Kinetic Chain!
Article 2.1; Ex.16; and/or YT 8:7
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Summary Slide: “Dealing With Darwin”(by Geoffrey Moore)
Update Our Mental-Models for Big Results 27
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Re-Define for “Wally”!*
*google images. Search: “mission, vision, values,..”
Hard S’s Weak!
Soft S’s need, Strategic Relevance
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1. Happy Employees
2. Employee Retention
3. Improving Service
4. Happier Customers
5. Customer RetentionSystems, Praises
6. Growth and Profits
Pay
Hire
HPC
(F)
(D)
(C)
(B)
(E)
(A) Mastery
DIRTFT*
Job growth
Sales forcemotivation
Last look(+)
*DIRTFT = do it right the first time
Heskett Measures (A-E)
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Now is the Time For Culture Mgt.!
All it costs is sweat equity No juice left in: “lean” in every aspect Employee engagement surveys plunging 90% of sales are on commodities
-- Differentiation through “supply-chain solutions”?
-- Service-value process teams achieving balanced metrics?
-- Best customers get semi-custom & flexibility Will “Wally”: get it; align and deliver? (engage)
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SUMMARY POINTS
Our Culture for: engagement, change, profits
Tune in to elements and science of Culture Mgt.
Become a corporate anthropologist
Models provide checklists for discussions
Ref: my YT clips; search YT for “corporate
culture” What are framework strands for reweaving your
culture web? (tomorrow)
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