Creating An UBER Culture with ARMC, Sheffield 10th March 2016

What We’re Going To Look At… How winning businesses create and live the culture they want – an ‘UBER Culture’ Understand the principles of ‘UBER Culture’ and what they mean for your business Identify the steps you need to take to create, develop, sustain the culture you need and want in your business Develop a 3D plan – the practical steps you need to take to ‘make it happen’!

Who The Hell Is Andy Hanselman?

I Help Businesses And Their People Create Competitive Advantage By... Thinking in 3D!

Dramatically and Demonstrably Different! That means being... Dramatically and Demonstrably Different!

Why... 3D?

(and have been for over 24 years!) I research, write about, talk about and work with high performance businesses (and have been for over 24 years!)

Dramatically and Demonstrably Different 7 Characteristics of Dramatically and Demonstrably Different Businesses

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#7 ‘Characteristics’! #1: Get That Vision Thing! #2: Think in 3D! #3: Create ‘Delighted’ And Devoted Customers! #4: Forget CRM, Think MCR! #5: Create An UBER Culture! #6: KeeP In Control! #7: InnovatiON!

3D Characteristic #5: Create An UBER Culture!

Who are you?

Awareness Assessment Action

Get my slides and other resources at: andyhanselmanconsulting andy@andyhanselman.com

3D Discussion Time: What Do ‘Successful’ Business Have And Do?

Satisfied Customers

Sufficient ‘Delighted’ Customers

High Expectations ‘Disappointed’ ‘Devoted’ A ‘Poor’ Experience A ‘Great’ Experience ‘Delighted’ ‘Disaffected’ Low Expectations

L Sufficient ‘Devoted’ Customers Committed Maximised Motivated Effective People Maximised Financial Returns

L Sufficient ‘Devoted’ Customers Committed Maximised Motivated Effective People Maximised Financial Returns

How Do You Measure Up?

S W O T

Sheffield Wednesday On Their way down

Strengths Weaknesses Opportunities Threats

So What!

What are your key issues?

L Sufficient ‘Devoted’ Customers Committed Maximised Motivated Effective People Maximised Financial Returns

What exactly is ‘Culture’?

A Classic Definition of ‘Culture’: “A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems” Edgar Schein, Organisational Culture And Leadership, 1993

“The way we do things around here” My Definition of ‘Culture’: “The way we do things around here”

“It’s what people do when no one’s looking” Another Definition of ‘Culture’: “It’s what people do when no one’s looking” Herb Kelleher, Founder, Southwest Airlines

Culture – Why Bother?

“The one thing that I have learned at IBM is that culture is everything” Louis V. Gerstner, Jr. former CEO IBM

“A positive corporate culture - one that engages and motivates employees - helps a company’s bottom line, according to the study by a group of university and corporate researchers. But the reverse apparently isn’t true: A company’s success isn’t enough to ensure a positive culture, the researchers found - and companies that succeed without a positive culture are likely to see their performance decline” Source: Wall Street Journal February 2016

94% of executives and 88% of employees believe a distinct workplace culture is important to business success Source: Deloitte Report 2013

12% greater customer advocacy 50% fewer sick days The top 25% ‘most engaged’ companies enjoy the benefits of: 200% annual net profit 18% higher productivity 250% revenue growth 12% greater customer advocacy 50% fewer sick days 87% less likely to leave organisation … compared with the lowest 25% Source: Employee Engagement Task Force Report

“Exceptional organisations have core beliefs that are unique, simple, leader- led, repetitive, and embedded in the culture. There is a correlation between clearly articulated and lived culture and strong business performance” Source: Deloitte

Culture and employee engagement is the number one issue for the world’s business and HR leaders! Source: Deloitte 2015 Global Capital Human Trends Report

What shapes the Culture of a business

Culture can be shaped by... Your Culture can be shaped by...

The Working Environment...

Organisational History...

The Marketplace...

The People...

The Systems And Processes...

HR Systems And Processes...

The Policies...

The ‘Unwritten Rules’...

The Customs And Rituals...

The Signs And Symbols...

The ‘War Stories’...

The Goals And Targets...

165,000 convicts sent to Australia! The ‘Rewards’... 1862: 165,000 convicts sent to Australia! Less than 50% survived! 98.5%!!! Edwin Chadwick

The Leaders...

45% Only Of UK employees feel that their managers behave in a way which is consistent with company values Source: Mercer Hr Consulting Report

Positively or Negatively

Deliberately or Accidentally

Consciously or Unconsciously

What’s Your ‘Culture’?

Describe your ‘culture’ in just a few words or phrases

Which Aspects Are You ‘Happy’ And ‘Not So Happy’ With?

How clear a picture of your culture do you have?

FINISHED FILES ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY COMBINED WITH THE EXPERIENCE OF YEARS

FINISHED FILES ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY COMBINED WITH THE EXPERIENCE OF YEARS

Your people, your customers? What do others think? Your people, your customers?

5 Questions To Consider..... How would you describe our culture – just 3 words What would you tell a friend about working here? What one thing should we change? What one thing should we never stop doing? What do we reward and recognise around here?

3D Demonstrated!

Create an UBER culture! Characteristic #5 of The 7 Characteristics Of Dramatically and Demonstrably Different Businesses

Create an UBER culture! Everyone Understands what’s expected of them and behave accordingly and consistently Systems and processes are Built to reinforce and support the culture People are Engaged, Empowered and Encouraged to deliver them People are Rewarded and Recognised for doing it!

Create An UBER Culture! Ingredient #1: Everyone Understands what’s expected of them and behave accordingly and consistently

3D Demonstrated!

It’s All About ‘Behaviours’! Oh Behave!

What Behaviours do you want from your people

Do they know that?

Are they spelt out?

Value Your ‘Values’

What’s the value of Values

Values can...

Define the fundamental character of your business Values can... Define the fundamental character of your business

Create a sense of identity Values can... Create a sense of identity

Values can... Shape how we do things

Reduce game playing, politics and confusion Values can... Reduce game playing, politics and confusion

Provide guidance for acceptable and unacceptable behaviours Values can... Provide guidance for acceptable and unacceptable behaviours

65% of employees who could name their values say they had a strong grasp on company objectives, compared to only 23 % who say they didn’t know any 88% of those who know their core values say they are engaged compared to 54% who say they didn’t know any of their company values Source: Derek Irvine.“Revealing Key Practices for Effective Recognition” Report 

A 5-year academic study by the University of Chicago of Great Place To Work data shows that there is a direct link between an organisation's values as perceived by its employees and its financial performance! Source: Chicago Booth Research Paper The Value Of Corporate Culture

A 5-year academic study by the University of Chicago of Great Place to Work data shows that there is a direct link between an organisation's values as perceived by its employees and its financial performance! Source: Chicago Booth Research Paper The Value Of Corporate Culture

Health Warning!

“There is no correlation between an organisation's published values (e “There is no correlation between an organisation's published values (e.g. on its website) and financial performance” Source: Chicago Booth Research Paper The Value Of Corporate Culture

“There is no correlation between an organisation's published values (e “There is no correlation between an organisation's published values (e.g. on its website) and financial performance” “There is a correlation between a culture of strong values ('high integrity') as perceived by employees and performance” Source: Chicago Booth Research Paper The Value Of Corporate Culture

Who’s values are these.... Integrity Communication Respect Excellence

It’s Not What You Say It’s What You ‘Do’!

3D Demonstrated! “Any entrepreneurial company as it grows will find it needs some structures in place. Now, if I get knocked over by a bus, these values will still be integrated into the business, so to the outside world it will not be relevant and internally it will keep its sense of purpose” Paul Lindley, MD Ella’s Kitchen

Sweat the small details Think like an engineer, feel like an artist 3D Demonstrated! Be passionate Lead, don’t follow Aim to surprise Be unreasonable Innovate incessantly Sweat the small details Think like an engineer, feel like an artist

3D Demonstrated! Focus on the user and all else will follow It’s best to do one thing really, really well Fast is better than slow. Democracy on the web works You don’t need to be at your desk to need an answer. You can make money without doing evil. There’s always more information out there The need for information crosses all borders. You can be serious without a suit. Great just isn’t good enough.

3D Demonstrated! Embrace and drive change Deliver wow through service Embrace and drive change Create fun and a little weirdness Be adventurous, creative, and open-minded Pursue growth and learning Build open and honest relationships with communication Build a positive team and family spirit Do more with less Be passionate and determined Be humble

‘Northern Principles’!!! 3D Demonstrated! Trusting each other as default Honest Direct Friendly ...And fundamentally good ‘Northern Principles’!!!

Your values must be

‘Meaningful’! ‘Relevant’! ‘Lived By All’!

What’s Your Experience With ‘Values’? 3D Discussion Time: What’s Your Experience With ‘Values’?

Valuing Your Values..... Step 1: Establish a set of values that define “How you want things to be around here”

Step 2: Translate your values into meaningful behaviours that you expect from your people...

Honest Supportive Passionate Respectful Delight Our Customers 3D Demonstrated! Company ‘X’s Values: Honest Supportive Passionate Respectful Delight Our Customers

3D Demonstrated! Honest Supportive Respectful Passionate Honest in their approach with all customers Honest in their approach with all colleagues Does what they say they will Proactively builds trusted relationships with our customers Doesn’t just ‘chase the sale’ Demonstrates they care! Supportive Actively supports our clients, their brands and their campaigns Actively supports all colleagues and team mates Actively supports our suppliers Takes responsibility and ownership Looks out for colleagues and offers help without being asked Passionate Demonstrates commitment to the company’s overall goals Demonstrates a positive attitude in everything they do Gives it their all when at work Brings out the energy in others Asks questions to constructively challenge what we do Generates ideas to help us achieve our goals Uses their initiative without being pushed Has fun! Respectful - Values other people’s views and opinions - Actively asks for and listens to other people’s views and opinions - Treats every customer and every order with care regardless of size - Values other people’s contribution to the business Delight Our Customers - ‘Wows’ our customers with the level of service they provide - Strives to be an extra member of our clients’ team - Looks to make us ‘as easy to do business with’ as possible - Proactively keeps customers informed every step of the way

your values Reinforce

Create An UBER Culture! Ingredient #2: Systems and processes are Built to reinforce and support the culture and the behaviours you want

‘Customer complaints’ procedure ‘Customer praise’ procedure?

“ We interview people for culture fit “ We interview people for culture fit. We want people who are passionate about what Zappos is about–service. I don’t care if they’re passionate about shoes.” Tony Hsieh, CEO, Zappos

“We find and reward people that 3D Demonstrated! “We find and reward people that ‘fit’!

3D Demonstrated!

3D Demonstrated!

3D Demonstrated! Tell us a story How’ve you got better? How can we improve? “They have to be able to do the job, that’s a given. But beyond that we look for various traits – people who are passionate, playful, respectful and have the ability to think commercially.” Michael Smith, Mind Candy (Moshi Monsters to you and me!)

3D Demonstrated!

Health and Happiness Survey 3D Demonstrated! The 30-Day New Recruit Health and Happiness Survey

Beer Knowledge Thursdays! 3D Demonstrated! Beer Knowledge Thursdays!

3D Demonstrated!

3D Demonstrated!

Sharing (almost) everything! An in-house wiki site! 3D Demonstrated! Sharing (almost) everything! An in-house wiki site! A seat shuffle every 3 months! Unlimited free books! Unlimited free meals! A 3 word policy on just about everything….

Buy A Round Of Drinks At An Event Policy 3D Demonstrated! Social Media Policy Sick Day Policy Expenses Policy Working From Home Policy Buy A Round Of Drinks At An Event Policy

3D Demonstrated! “Use good judgement!”

‘Good Judgement’ Rating 3D Demonstrated! ‘Good Judgement’ Rating

3D Demonstrated! Demonstrate preferred behaviours: ‘show your character’ Employees rewarded for ‘cheerfulness’! Mystery shopper highlights ‘outstanding’ customer experiences Reward for team and individual performances - £50 bonus for individuals to be spent with the team Interview is a 6 hour shift and staff vote ‘in’ or ‘out’

‘And Now the End Is Near’ 3D Demonstrated! ‘And Now the End Is Near’ Exit Interview

Step 3: Measure / assess people against those behaviours as well as objectives and targets...

3D Demonstrated! In Company X, we got colleagues to assess each team member against the Behaviours....

We started with the Directors! 3D Demonstrated! We started with the Directors!

3D Demonstrated! * See ‘Living The Company ‘X’ Way Assessment Tool

3D Demonstrated! * See ‘Living The Company ‘X’ Way Report

People are Engaged, Empowered and Enabled to deliver them Create An UBER Culture! Ingredient #3: People are Engaged, Empowered and Enabled to deliver them

“The more you engage with 3D Demonstrated! “The more you engage with customers the clearer things become and the easier it is to determine what you should be doing” John Russell, President, Harley-davidson Europe

3D Demonstrated! Very clear expectations of their people - ‘buy in or opt out’! One person to say ‘yes’, two people to say ‘no’! Encourage staff to challenge things that don’t work (no ‘stupid rules’!) Over 100,000 ‘mystery shops’ Staff rewards linked to customer service levels, not sales!

3D Demonstrated! “Our staff are actively encouraged to use their initiative and try new ideas. I say ‘if the ideas work, tell me. If they don’t work, just stop’” John Timpson, Timpsons Staff manuals – fewer words, lots of illustrations that staff are encouraged (and incentivised) to take home to absorb Customer service training sessions involve people actually going out to buy things and reflecting on and learning from, their experiences Staff are able to spend up to £500 to settle a customer complaint without management authorisation They can charge whatever they like – the price list is a guide only!

3D Demonstrated! Book Club

3D Demonstrated!

3D Demonstrated! Pizza Problem Solving!

Stand In Other People’s Shoes! 3D Demonstrated! Stand In Other People’s Shoes!

3D Demonstrated! Front Line Fix!

3D Demonstrated! ‘I Like….’ ‘I Wish….’ ‘I Wonder….’

Approach customers with a personalized warm welcome Probe politely to understand all the customer’s needs Present a solution for the customer to take home today Listen for and resolve any issues or concerns End with a fond farewell and an invitation to return

Rub up your customers the wrong way Yes, go on, all the way Apathy is encouraged Never bother to try and make them smile Approach them with indifference Infer it’s them who are the problem Remember, we’re right behind you to help you do this

“In order to enhance the appearance of your flight crew, we will be dimming the cabin lights” “Your bags will be available on carrousel x. If you do not find them, they will be available in 2-3 weeks on eBay” “There may be 50 ways to leave your lover, but there are only 4 ways out of this airplane” “I never had control, and I never wanted it. If you create an environment where the people truly participate, you don’t need control” Herb Kelleher, founder, Southwest Airlines

“We entrust every single Ritz-Carlton staff member, without approval from their general manager, to spend up to $2,000 on a guest. And that's not per year. It's per incident” Simon F Cooper, President Ritz Carlton

3D Demonstrated!

How Do You Engage, Empower And Enable? 3D Discussion Time: How Do You Engage, Empower And Enable?

People are Rewarded and Recognised for doing it Create An UBER Culture! Ingredient #4: People are Rewarded and Recognised for doing it

79% of employees say recognition tied to core values gave them a stronger sense of company goals and objectives Source: Derek Irvine.“Revealing Key Practices for Effective Recognition” Report 

Champion Your Champions

Challenge your Challengers

OBJECTIVES ‘SUPPORTED/ ENCOURAGED/ SOMETIMES REWARDED’ ‘REWARDED/ ACHIEVED NOT ACHIEVED ‘SUPPORTED/ ENCOURAGED/ SOMETIMES REWARDED’ ‘REWARDED/ CHAMPIONED’ ACTS I N L NE W TH BEHAVIOURS YES ‘REDIRECTED/ MOVED/ RELEASED’ ‘NOT REWARDED/ CHALLENGED’ NO

Why not get your customers to do it?

3D Demonstrated!

How Do You Reward And Recognise? 3D Discussion Time: How Do You Reward And Recognise?

“The way we do things around here” My Definition of ‘Culture’: “The way we do things around here”

How Do You Measure Up?

Create an UBER culture! Everyone Understands what’s expected of them and behave accordingly and consistently Systems and processes are Built to reinforce and support the culture People are Engaged, Empowered and Encouraged to deliver them People are Rewarded and Recognised for doing it!

Take action, not notes!

“You’re going to have a culture anyway “You’re going to have a culture anyway. You can and should influence it – so why not build the one you love?” Darmesh Shah, Founder Of Hubspot

What are you going to do about it?

What can you do about it?

Talk to me!!! 0114 243 4666 07710 452355 andy@andyhanselman.com Chat Today!

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And it’s FREE when you buy it! All purchasers today get FREE access to our innovative online 3D Diagnostic Tool! Normal price £9.99 Rate your business against the ingredients that make up the 7 Characteristics Receive a personalised report direct to your inbox based on your responses Unlimited access – see what your colleagues think and revisit it whenever suits! It’s a great accompaniment to the book! And it’s FREE when you buy it!

Andy’s 3D Thoughts...... 3 iDeas in 3 minutes in your inbox every Monday morning to help you Think in 3D!

“Vision without action is hallucination” Thomas Edison

“Take the first step in faith “Take the first step in faith. You do not have to see the whole staircase. Just take the first step” Martin Luther King

“Scare yourself, otherwise you’re not doing anything new” Mary Murphy Hoye, Head Of R & D, Intel

“Don’t just stand there….. do something!” Dick Dastardly

So... what are you going to Do?

People can be divided into three groups

Those who make things happen Those who watch things happen Those who ask ‘what happened’?

MISSING YOU ALREADY!

get my slides and other resources at: andyhanselmanconsulting andy@andyhanselman.com

“Culture is a thousand things, a thousand times “Culture is a thousand things, a thousand times. It’s living the core values when you hire; when you write an email; when you are working on a project; when you are walking in the hall” Brian Chesky, Founder, Airbnb