Guidon High Performance Culture Webinar

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


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Corporate Culture

cul·ture: the set of shared attitudes, values, goals and practices that


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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


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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.


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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


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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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“…The two fundamental forces that drive GE…a common operating system and


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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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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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High Performance Leadership Development Roadmap

Succession Planning

Identify Candidates

PilotAssess Capabilities

Ongoing Rotation

Level 3 Leadership and Mentoring


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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

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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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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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.


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Guidon Performance Solutions

Thank YouThank YouGuidon Performance Solutions

866-986-4414 or [email protected]

www.guidonps.com


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Guidon High Performance Culture Webinar

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