Igniting Thinking…Maximizing Performance…Enriching Lives West Virginia Chapter Mindset Matters: Creating Constructive Organizational Culture to Improve Performance Presented by Laural Manegre January 24, 2014 Igniting Thinking…Maximizing Performance…Enriching Lives

Who Is The Pacific Institute and US Ops? Founded By Lou & Diane Tice in 1971 Global in Scope / HQ in Seattle, WA / 14 Offices 60+ countries, 6 Continents and 20+ languages Endorsed by the American and Canadian Psychological Associations. 62% of Fortune 1000 Governments Education Social Services Military The Pacific Institute - US Operations Responsible for business development and implementation of TPI products in the US Combines TPI products with appropriate consulting services to maximize outcomes for clients 2 2

World-leading Experts / Contributors Dr. Martin E.P. Seligman Kogod Term Chair, Professor of Psychology & Director of Clinical Testing, University of Pennsylvania Dr. Albert Bandura David Starr Jordan Professor of Social Sciences in Psychology, Stanford University Dr. Gary Latham Secretary of State Chair, Faculty of Management, University of Toronto Dr. David Matsumoto Associate Professor, Department of Psychology, Director of Intercultural & Emotional Research Lab, San Francisco State University “I can tell you there is no organization as effective in transferring knowledge from psychology to organizational settings, educational settings, public sector or private sector than The Pacific Institute®.” ~ Dr. Gary Latham ~ Past-President, Canadian Psychological Association

The Wedge

Performance Model (Individual / Team / Organizational) Vision 7% Individual Thinking Individual Behavior Plan Performance = “Have to” “How to” “OLD” Habits Attitudes Expectations Beliefs Current Reality

Performance Model (Individual / Team / Organizational) Vision Individual Thinking Individual Behavior Plan Performance = “New” Habits Attitudes Expectations Beliefs “Want to” “Invent the How ” What do we want? Current Reality

Culture “I don’t have the aptitude for this” “It is impossible to be profitable with all of these government regulations” “ We will never be able to reach those benchmarks”.” “ “How can we perform under these circumstances?” “Leadership’s goals are unrealistic.” “This new system will never work… causes too much stress.” Individual Thinking (cultural Assumptions) Behavior Plan or Systems Performance Medi-Tech Hospital Systems Culture 7 7

Vision What would be an “extraordinary Vision” for your Organization? Omit the How…..

Culture Do you have the right Organizational Culture to take you into the future?

What is Culture? Culture is the shared beliefs and values guiding the thinking and behavior of the organization. 10 10

Culture Change or Transformation Why is it so hard? 11

Two General Types of Culture Defensive Cultures – Inactive / Reactive Resist Change Assigns blame when something goes wrong Uses Chain of Command to control and direct Constructive Cultures - Proactive Communicates open and freely Takes responsibility and accountability Is innovative and takes risks Characteristics of Defensive cultures and Constructive cultures. 12

The Circumplex Constructive Styles Aggressive/ Defensive Styles Blue: Constructive Styles Red: Aggressive/ Defensive Styles Green: Passive/Defensive Styles Copyright © 1998 Human Synergistics International. All Rights Reserved. 13

What type of Culture do you have? Let’s assess your perception of your Organization’s current Culture…..

Typical Vision (Ideal or Desired) OCI Circumplex from Robert A. Cooke and J. Clayton Lafferty, Organizational Culture Inventory®, Human Synergistics International, Plymouth MI USA. Copyright © 1987-2006, All Rights Reserved. Used by permission.

Healthcare Ideal i=868 How does your circumplex compare to the ideal? OCI Circumplex from Robert A. Cooke and J. Clayton Lafferty, Organizational Culture Inventory®, Human Synergistics International, Plymouth MI USA. Copyright © 1987-2006, All Rights Reserved. Used by permission. 16

What Impact does Culture have? The impact of a constructive culture can be measured on the bottom line. Constructive cultures provide customers with better products and services than defensive cultures. So, What is Cultural Consensus Building? Well, let’s first define the terms… Culture -- is the shared beliefs and values guiding the thinking and behavior styles and language of employees. For example: What is normal. How decisions get made when you can’t be there. The way we do things around here. How people will act under pressure. The glue that holds the organization together Culture grows out of the behaviors and language of the employees Values -- are the principles, standards or qualities on which an organization considers worthwhile or desirable. (paraphrase American Heritage Desk Dictionary) Principles that an organization bases its decisions and actions upon. Values are usually simple and concise. Behaviors – the actions or language that we observe 17

Culture and Performance Kotter & Heskett: Study of 207 firms over an eleven year period as reported in their book Corporate Culture and Performance Non-Adaptive Culture 166% Revenue 74% Stock Prices 1% Net Income 18

Culture and Performance Kotter & Heskett: Study of 207 firms over an eleven year period as reported in their book Corporate Culture and Performance Non-Adaptive Culture Adaptive Culture 166% Revenue 682% 74% Stock Prices 901% 1% Net Income 756% 19

Mission / Vision What is the Mission or Vision Statement of your Organization? From your memory, please jot it down…. Ask them to write those limiting beliefs on the back of each of their 3 cards (Current Reality) 20

Values What are the Values in your organization? Ask them to write those limiting beliefs on the back of each of their 3 cards (Current Reality) 21

Values What are the Values in your organization? How do you measure them? Ask them to write those limiting beliefs on the back of each of their 3 cards (Current Reality) 22

CEO Leadership Impact VP MGR 23

Management Culture - 3 yrs 97% Improvement Copyright © 1998 Human Synergistics International. All Rights Reserved.

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4 Steps for Growth Insights Self-Concept EXPECTATIONS Self-Examination This slide can be used as a wrap up to Unit one. It is optional. 26

Limiting Beliefs Leadership Employees Board Members Community Children What are some examples of Limiting Beliefs… Leadership Employees Board Members Community Children 27 27

Beliefs Results Reticular Activating System (R.A.S.)-Lou will speak in much depth in Session 2. So for now, just know that all of us have a filter system at the base of our brain. This filter system is similar to a screen door and allows in only what we determine is of value or threat. And the value and threat can change—just as you might imagine it did for many after 911. Those of us that use to get on an airplane and not think twice, now find ourselves scrutinizing the passengers before boarding. We are alerted to clues. Our beliefs muddy the screen and only allows information that validates our beliefs to come through. 28

Beliefs What limiting beliefs do you have in your Organization that is “driving” your Culture?

CONSCIOUS SUB-CONSCIOUS CREATIVE SUB-CONSCIOUS THROUGH OUR SENSES SUB-CONSCIOUS CREATIVE SUB-CONSCIOUS REFERENCE LIBRARY MAINTAINS SANITY

Cultural Integration Process Employee Life Cycle Cultural Integration Process Once we know what the desired Culture is – what we want – all of the process and systems need to be in alignment with Constructive Culture. As an example, you would not want to hire an aggressive defensive person and try to change them to constructive. You will need to have more of a Constructive style at the leadership level in order to retain constructive employees. 31 31

Cultural Transformation & Growth Step 1 Diagnostics Benchmark Step 2 Align the Leadership Vision and Values alignment Foundational Curriculum for Change Leadership Efficacy Step 3 Engage others from the Organization Thought Patterns for Performance Integration of education in business practices Step 4 Employee Life Cycle