Transformation You Can Count On Rapid Culture Change Measurable Results in 6 months Mark Samuel - CEO

Agenda A Mindset Change about Culture Accountability and Culture Change The Process for Achieving Measurable Results within 6 to 9 Months A Case Study Copyright © 2008, 2010 IMPAQ ®

Why has Organizational Culture been perceived and treated as “soft”? Copyright © 2008, 2010 IMPAQ ®

Because Organizational Culture has been focused on “values” and “values” are viewed as disconnected from Profit, Budget, Efficiency etc. Copyright © 2008, 2010 IMPAQ ®

The Irony? Talking about and teaching “values” in an organization doesn’t create strong values…especially when our structure, compensation and actions are inconsistent. Copyright © 2008, 2010 IMPAQ ®

Example: The Value: Team Work Copyright © 2008, 2010 IMPAQ ®

Organizational Culture is determined by “EXECUTION” that demonstrates actual values, but also is linked to business results Copyright © 2008, 2010 IMPAQ ®

The Test? When the Organization faces the threat of survival Copyright © 2008, 2010 IMPAQ ®

Values-Based Culture The organization drops their programs associated with the culture to make sure the organization survives Copyright © 2008, 2010 IMPAQ ®

Execution-Based Culture The organization uses their culture to resolve the challenges of the business to ensure survival Copyright © 2008, 2010 IMPAQ ®

What is Execution? The Link between people and teams to produce business results Copyright © 2008, 2010 IMPAQ ®

Examples of Execution Copyright © 2008, 2010 IMPAQ ®  Making Decisions  Surfacing and Resolving Problems  Project Planning and Management  Sharing Information  Cross-functional teamwork  Sharing Resources

The Key to Successful Execution? Middle Managers functioning as a UNIFIED Team Copyright © 2008, 2010 IMPAQ ®

Elements of Rapid Culture Change Copyright © 2010 IMPAQ ® Customer Service and Business Results Deliverables ExecutionRelationships

Deliverables  Projects  Customer Service  Efficiency  Quality  Safety  Maintenance  Implement change Copyright © 2010 IMPAQ® Deliverables Relationships Execution  Solving problems  Making decisions  Resolving conflict  Coordination  Sharing Resources  Sharing information  Effective meetings Execution Relationships  Trust  Support  Communication  Keeping agreements  Role clarity  Conflict resolution  Challenge each other

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution Process & Competencies

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution Process & Competencies Implementation

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution Process & Competencies Implementation Relationships

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution Process & Competencies Implementation Relationships Actual Results

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution Process & Competencies Implementation Relationships Actual Results The Macro What

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution Process & Competencies Implementation Relationships Actual Results The Macro What The How

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution Process & Competencies Implementation Relationships Actual Results The Macro What The How Support Execution

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution Process & Competencies Implementation Relationships Actual Results The Macro What The How Support Execution The Micro What

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution Process & Competencies Implementation Relationships Actual Results The Macro What The How Support Execution The Micro What Support, Implementation & Execution

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution Process & Competencies Implementation Relationships Actual Results The Macro What The How Support Execution The Micro What Support, Implementation & Execution 1

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution Process & Competencies Implementation Relationships Actual Results The Macro What The How Support Execution The Micro What Support, Implementation & Execution 1 2

Copyright © 2008, 2010 IMPAQ ® Execution ≠ Implementation Desired Business Results Strategy Execution Process & Competencies Implementation Relationships Actual Results The Macro What The How Support Execution The Micro What Support, Implementation & Execution 1 2 3

Process of Rapid Culture Change Copyright © 2008, 2010 IMPAQ ® 1. Picture of Success  Breakthrough Business Results  Execution and Relationships necessary to achieve and sustain business results  The Mindset Change regarding roles and relationships

Process of Rapid Culture Change Copyright © 2008, 2010 IMPAQ ® 2. New Habits of Execution  Making Decisions  Planning and Managing Projects  Sharing Resources  Resolving Conflict  Surfacing and Solving Problems

Process of Rapid Culture Change Copyright © 2008, 2010 IMPAQ ® 3. Proactive Recovery Plans  Anticipating what might cause a breakdown to successful execution 4. Measurement and Adaptation  Understanding the “Story”  Execution  Relationships  Deliverables

Guarantees Results within 6 Months Execution Improves 60% 70% 80% Copyright © 2008, 2010 IMPAQ ® Relationships Improve 15% 25% 35%

Michelin in France Copyright © 2008, 2010 IMPAQ ® The Business Transformation: Implement a new IT service delivery model transitioning from decentralized to centralized based on the need to reduce costs and improve consistency across the organization worldwide

The Challenge Collaborating across 5 continents with multiple countries, languages, cultures and time zones Senior and Middle Managers had their own kingdom No one “understood” the new service delivery model Copyright © 1995, 2010 IMPAQ ®

The Situation 2 years of failed efforts No amount of change management, teambuilding or leadership development produced results 20% of current projects were on time and on budget The new service delivery model had to be implemented within 1.5 years Copyright © 1995, 2010 IMPAQ ®

The Process of Culture Change 70 Middle Managers – 5 Continents 1. Presented the “Picture of Success” for new service delivery model (business results and culture) 2. Creating their own “Picture of Leadership Success” –Reputation with direct reports –Teamwork and shared accountability –Value contributed for Michelin Copyright © 1995, 2010 IMPAQ ®

The Process of Culture Change 3. New Habits of Execution (28 Habits) –Consistent leadership practices –Shared processes and practices –Optimize project efficiency –Act as a unified team –Mutual trust and support 4. Establish Baseline Measurements and Improvement Goals for Top 5 Habits 5. Team Agreements to Supportive Relationships Copyright © 1995, 2010 IMPAQ ®

What about Buy-In? Between 70 and 80 percent of the 70 people resisted the change, but kept commitments in a half-hearted manner. Results of the 6 month review 9 months later: Execution Improved 53% - (60% is normal) Relationships Improved 12% - (15% is normal) “Please give us 3 more months” Copyright © 1995, 2010 IMPAQ ®

Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Expected and Correlated Measurable Results

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Expected and Correlated Measurable Results

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Expected and Correlated Measurable Results 70%

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Expected and Correlated Measurable Results 70% 80%

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Expected and Correlated Measurable Results 70% 80% 15%

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Expected and Correlated Measurable Results 70% 80% 15% 25%

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Expected and Correlated Measurable Results 70% 80% 15% 25% 35%

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Expected and Correlated Measurable Results 70% 80% 15% 25% 35%

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Expected and Correlated Measurable Results 70% 80% 15% 25% 35%

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Expected and Correlated Measurable Results 70% 80% 15% 25% 35%

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Final Results 70% 80% 15% 25% 35%

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Final Results 70% 80% 15% 25% 35% 75%

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Final Results 70% 80% 15% 25% 35% 75%

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Final Results 70% 80% 15% 25% 35% 75%30%

60% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Final Results 70% 80% 15% 25% 35% 75%30% Michelin Results

Consistent Leadership Practices Surface and Remove Obstacles Cross-Functional Teamwork Effectively Share Resources Act as a unified team – “one voice” Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Final Results Trust improved 46% Information Sharing improved 40% Decision Making improved 33% Keeping agreements improved 28% Resolving Conflicts improved 29%

New Service Delivery Model was implemented successfully in 12 months – 6 months earlier than plan Projects went from 20% on time, on budget to 75% on time, on budget KPI Performance improved 50% Copyright © 2010 IMPAQ® Customer Service and Business Results Deliverables ExecutionRelationships Final Results

Mark Samuel 7785 Sunset Boulevard Los Angeles, CA