Driving Cultural Transformation Key Principles and Best Practices Wendy Heckelman, Ph.D. 2703 Cypress Manor Suite 100 Fort Lauderdale, FL 33332 954-385-0770 wendy@wlhconsulting.com www.wlhconsulting.com

Your Presenter Dr. Wendy Heckelman Founder and President of WLH Consulting, Inc. 20+ years of consulting experience Managed large scale change projects related to mergers, structural re-organizations, and field force expansions 2

Some of our Clients 3

Key Areas of Focus Strategy Development and Execution Strategy Formation Senior Team Alignment Execution Planning and Implementation Mergers and Acquisitions Business Planning and Resource Allocation Business Performance Improvement Business Diagnostics Organizational Design and Effectiveness Process Excellence Cultural Transformation and Change Management Human Capital Strategy Leadership Development Competency Models and Tools Talent and Development Planning Engagement and Retention Learning Strategy and Curriculum Design Blended Learning Solutions 4

Cultural Change – What does it take? 5

Opportunities to Drive Cultural Transformation Merger/Integration Expansion/Spin-off Organizational Restructuring Organizational Shift in Direction 6

Cost / Benefit Analysis for Using Cultural Transformation Improved alignment with organizational goals Clarity on roles/responsibilities Behavior Change Achievement of Results Greater chance of failure in achieving desired changes Potential for chaos Less employee engagement NOT USING CULTURAL TRANSFORMATION 7

Polling Question Senior leadership vision and commitment When undergoing a large-scale change and cultural transformation initiative, what is the most important critical success factor? Senior leadership vision and commitment A well designed implementation cascade Making a case on why the change is needed Management accountability for driving change A communication plan 8

Best Practices for Driving Cultural Change Culture Change Takes Place More Effectively When Worked at Three Levels : Organizational, Team, and Individual Culture Change is Accelerated by Connecting Individual Beliefs to Organizational Results Culture Change Requires a Planned and Disciplined Implementation Cascade Culture Change is Accelerated by using a “Leader-led Learning” Approach Technology should be Leveraged for Communications, Measurement, and Reporting Successes Related to Cultural Adoption and Transformation 9

Individual Leader and Colleague I. Culture Change Takes Place More Effectively When Worked at Three Levels: Organizational, Team, and Individual Organization Define and Prioritize the Desired Culture (Vision, Values, and Core) Build Commitment to Purpose, Mission, and Values Powerfully Cascade, Reinforce, and Adapt Over Time Team Translate Strategic Goals to Team Responsibilities Build High Performing Teams Address Impact of the Changes to Work and the Team Individual Leader and Colleague Address “Me” Issues Clarify Roles, Responsibilities, and Desired Behaviors Reward and Reinforce Excellence for Desired Behaviors and Values 10

Defining the Desired Culture I. Culture Change Takes Place More Effectively When Worked at Three Levels: Organizational, Team, and Individual Organization Define and Prioritize the Desired Culture (Vision, Values, and Core) Build Commitment to purpose, mission, and values Powerfully Cascade, Reinforce, and Adapt Over Time Defining the Desired Culture What must be retained? What needs to change? What are the core Values and Beliefs? How will these be cascaded, reinforced, and adapted over time? 11

I. Culture Change Takes Place More Effectively When Worked at Three Levels: Organizational, Team, and Individual Team Translate Strategic Goals to Team Responsibilities Build High Performing Teams Address impact of the changes to work and the team Building Buy-in at the Team Level How can the team work together to support strategic goals? How do the changes taking place impact the team? Core responsibilities? Team functioning? Team interactions? 12

Individual Leader and Colleague I. Culture Change Takes Place More Effectively When Worked at Three Levels: Organizational, Team, and Individual Individual Leader and Colleague Address “Me” Issues Clarify Roles, Responsibilities, and Desired Behaviors Reward and reinforce excellence for desired behaviors and values Building Buy-in at the Individual Level How will change impact the people in the organization? What needs must be addressed? Are roles and responsibilities clearly defined? What competencies are important? How will employees be rewarded for demonstrating desired behaviors? What happens when results are achieved, but individual behavior is inconsistent with the desired culture and values? 13

Changing Culture means changing individual’s beliefs II. Culture Change is Accelerated by Connecting Individual Beliefs to Organizational Results Changing Culture means changing individual’s beliefs What beliefs do individuals have about your organization? Do these beliefs “match” the stated values of the organization? What can be done to shape these beliefs? 14

Using the “BEAR Model” to Shape Culture R = What people do (how they act) causes an outcome/results Results *Roger Connors, Tom Smith. Journey to the Emerald City A = The beliefs people hold cause them to act and behave in a particular way Actions E = Experiences help to shape beliefs Experiences B = Beliefs define what a person values, prioritizes, and motivates what they do and why Beliefs 15

Why Do Typical Transformation Efforts Fail Or Are Not Sustained? Lack of Alignment Between Culture and Results With Alignment Without Alignment Beliefs Experiences Actions Results Beliefs Experiences Actions Results 16 16

Transformation Efforts Are Successful When There is Alignment Between Beliefs and Results Actions Results Beliefs Experiences 17

Business Units (Leadership Teams) Director and Management III. Cultural Change Requires a Planned and Disciplined Implementation Cascade Senior Executives Business Units (Leadership Teams) Director and Management Management to Employee Cascade 18

Design tools for managers to workshop with their teams: III. Cultural Change Requires a Planned and Disciplined Implementation Cascade Design tools for managers to workshop with their teams: Experiences and Actions Team Engagement Rules “Cultural change” Play book OUTCOME Builds buy-in across the organization Develops specific action plans that are “within any given team’s control” Creates and aligns on clear team performance metrics and measurements 19

IV. Cultural Change is accelerated by using a “Leader-led Learning” approach Hold leaders accountable for driving culture change Provide leaders with tools to drive change and address resistance Design specific modules and programs on cultural adoption and business strategy that leaders can conduct with their teams Reward and Recognize leaders who drive culture change 20

Start with a baseline and ensure monitoring over time V. Technology should be Leveraged for Communications, Measurement, and Reporting Successes Related to Cultural Adoption and Transformation Use various technology platforms to communicate approach and track progress: Intranet to share best practices, communicate successes Web-based surveys Distance learning Share Drives Develop and deploy simple measurement tools to monitor progress of cultural adoption: Well constructed, yet simple surveys and feedback reports Baseline and ability to pulse to measure and report change Allow for roll-up of team data to create an organizational picture Start with a baseline and ensure monitoring over time 21

Tips to Remember Gain commitment and support from senior leaders Dedicate time and resources to culture related activities; especially during times of major change Think through an implementation plan that addresses organizational, team, and individual needs Communicate, and then communicate some more Reward, Reinforce, and Celebrate Success 22

Questions & Comments

WLH Consulting, Inc. Background Information 24

Unique talents + Collaborative expertise = Breakthrough Results WLH Team Our team combines the diverse expertise of: Ph.D. industrial/organizational psychologists Experienced consultants with 20+ years experience partnering with clients to develop strategies, engage in process reengineering, and mutually execute business solutions Experts in developing comprehensive human capital strategies and tools Designers and developers of integrated, blended learning systems Skilled facilitators who help participants successfully manage change, identify issues, and resolve problems Trained project managers for large scale client initiatives Unique talents + Collaborative expertise = Breakthrough Results 25

Scientifically Rigorous WLH Advantage Collaborative We partner to implement streamlined, customized, and efficient solutions that deliver results Highly Adaptive Our flexibility allows us to adjust to changing needs throughout each engagement or project life cycle We rely on proven methods for data collection, statistical analysis, and sophisticated organizational development models Scientifically Rigorous Client-Centered We take pride in "going the extra mile" to ensure that change initiated becomes change sustained 26

Cultural Transformation Sample Case Partnered with senior leaders to define the organization’s Vision, Values, and Core Beliefs with a corresponding change management strategy: Translated leadership’s vision for how organization needed to evolve to meet strategic goals Created a concrete business execution and change management strategy Developed process and approach to powerfully cascade and engage others in the definition process to ensure buy-in Worked with Learning and Development to ensure resources can be deployed consistently Developed a “toolkit” for Managers to use when facilitating sessions that resulted in teams’: Identifying priorities Developing specific action plans for process improvements “within any given team’s control” Defining and aligning on team performance metrics and measurements Operationalizing how changes impact how the team operates Identifying where senior leader support is critical 27