High Performance Culture Transformation
Transcript of 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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Measuring and Managing
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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Measuring and Managing
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)