using performance excellence techniques to change … · using performance excellence techniques to...

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using performance excellence techniques to change culture Dave Roberts, Western Union

Transcript of using performance excellence techniques to change … · using performance excellence techniques to...

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using performance excellence techniques to change culture

Dave Roberts, Western Union

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HR Leadership Team Change

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culture change is about organizational performance culture change is about process, not about people performance excellence connects leaders to culture change

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culture change is about organizational performance

• Firms with strong cultures perform at a consistently higher level (Sørensen 2002).

• Firms with strong corporate cultures have higher average levels of performance than firms in the same industry with weaker cultures (Burt et al. 1994).

• Over a ten-year period, companies that intentionally managed their cultures well outperformed those that do not (Kotter & Heskett, 1992):

• Revenue growth 682% v. 166% • Stock price growth 901% v. 74% • Net income growth 756% v. 1% • Job growth 282% v. 36%

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I came to see in my time at IBM that culture isn’t just one aspect of the game… it is the game - Lou Gerstner, IBM

Culture eats strategy for lunch. - Peter Drucker, Management Guru

Competitors can buy tangible assets, but they can’t buy culture. - Herb Kelleher, Southwest Airlines

culture change is about organizational performance

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Future State - 2014

Customer focus and continuous improvement are „Job 1“

Colleagues at all layers act to change the way things are done

Colleagues across the organizations are proactively identifying and attacking improvement opportunities

Urgency applied to the right things, not everything

Organization optimized around process, not function, to support collaboration

Status 2011 – Challenges & Gaps

Sense of urgency for the change has not permeated the organization

Continued atmosphere of protection & control

Leaders and teams agree „we need to do this“ but are waiting to be told what to do

Many activities across the organization, but not all activity is focused

Improvement opportunities identified, but silo-thinking impedes implementation

culture change is about organizational performance

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culture change is about organizational performance culture change is about process, not about people performance excellence connects leaders to culture change

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culture change is about process, not about people

To change someone's behavior, you've got to change that person's situation. - Chip & Dan Heath, Change Gurus

A bad system will beat a good person every time. - W. Edwards Deming

Every organization must be prepared to abandon everything it does to survive in the future. - Peter Drucker

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culture change is about process, not about people

Supplier Input Processes Output Customers

WU Leadership

WU Customers

Voice of Customers

Voice of Employees

WU History

Current WU Culture

Business Vision & Strategy

Key Metrics (Corporate Scorecard)

Strategic and Operational Planning

Governance / Decision Rights

Business Process Improvement

Organizational Structure

Leadership Practices

Talent Capability and Planning

Change Mgmt / Communications

3-year strategy and 18-month operational plan

Investment decisions and accountability, capacity

management

Operational Excellence in value creation and enabling

processes

Resource alignment and focus

Leadership alignment, organizational focus, and work

climate

Talent capacity and deployment to key priorities

Workforce understanding,

involvement, and engagement

Consumers

Agents

FLAs

Vendors

Employees

Regulators

Shareholders

SIPOC for culture change

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culture change value stream

change mgmt and

communication

wave T global process and productivity

“new WU” leadership

wave 1 wave 2

operating model

refinement

enterprise governance and decision

rights

culture change is about process, not about people

Analytics

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culture change is about organizational performance culture change is about process, not about people performance excellence connects leaders to culture change

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executive committee workshops

• exposure to and understanding of basic performance excellence approach

• hands-on use of performance excellence tools via simulation

• follow-up involvement on process and productivity improvement council

• publicized globally and loudly

performance excellence connects leaders to culture change

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performance excellence connects leaders to culture change

consumer aspirations

consumer ethnography

consumer “points of pain”

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performance excellence connects leaders to culture change

Customer AlignmentStrategy

ManagerEngagement

Intent to StayExecution

TalentSenior Management

AchievementInnovation

employee engagement surveys

organizational diagnosis workshops

start-stop-continue exercises

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performance excellence connects leaders to culture change

spaghetti diagrams business process architecture

performance excellence teams

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culture change is about organizational performance culture change is about process, not about people performance excellence connects leaders to culture change

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Our journey continues… and we’re still learning.

• Implemented a number of global programs that are changing work climate

• Re-aligning key parts of the organization to value creation processes

• Beginning to do the heavy lifting required to “straighten the pipes”

• Beginning to make the tough decisions needed to clarify decision authority and rights

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culture change is about organizational performance • find “proof points” that resonate for leaders in your organization • use a variety of techniques to get the message across

culture change is about process, not people • first ensure a basic level of “process understanding” • fight the “fundamental attribution error” (we need new people to change)

performance excellence connects leaders to culture change • use the right methods for the situation (not just one approach) • keep the pressure on, but don’t overload them with tools and data