1. Understanding Your Companys Culture: Tools to Make HR Practices Strategic Sheila L. Margolis June 24, 2008

2. ©2008 Sheila L. Margolis www.CultureofDistinction.com 2 Whole Foods Whole People Whole Planet

3. ©2008 Sheila L. Margolis www.CultureofDistinction.com 3 Blow away the customer

4. ©2008 Sheila L. Margolis www.CultureofDistinction.com 4 Are your HR practices strategic?

5. ©2008 Sheila L. Margolis www.CultureofDistinction.com 5 Use culture to drive success Organizational Culture HR Practices Business Success

6. ©2008 Sheila L. Margolis www.CultureofDistinction.com 6 Are you a Culture and Change Steward?

7. ©2008 Sheila L. Margolis www.CultureofDistinction.com 7 Agenda 1. Define Core Culture 2. Align HR Practices with Core Culture

8. ©2008 Sheila L. Margolis www.CultureofDistinction.com Manage culture and change 8

9. ©2008 Sheila L. Margolis www.CultureofDistinction.com 9 Speak, teach and write

10. ©2008 Sheila L. Margolis www.CultureofDistinction.com 10 Think about your organization… 1.Write one value that would enable your company to compete and thrive. 2.Share your response with another person.

11. ©2008 Sheila L. Margolis www.CultureofDistinction.com 11 Agenda 1. Define Core Culture 2. Align HR Practices to Core Culture

12. ©2008 Sheila L. Margolis www.CultureofDistinction.com 12 Understand your Core Culture Strategic Goal Strategic Goal Strategic Goal Strategic Goal Core Culture Vision Purpose Philosophy Priorities

13. ©2008 Sheila L. Margolis www.CultureofDistinction.com 13 Purpose: Why is this work important? Purpose Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Why?

14. ©2008 Sheila L. Margolis www.CultureofDistinction.com 14 We support health, well-being and healing

15. ©2008 Sheila L. Margolis www.CultureofDistinction.com 15 What is your gift to society through your work?

16. ©2008 Sheila L. Margolis www.CultureofDistinction.com 16 Purpose is brief in length To protect the American people

17. ©2008 Sheila L. Margolis www.CultureofDistinction.com 17 Purpose is broad in scope To organize the worlds information

18. ©2008 Sheila L. Margolis www.CultureofDistinction.com 18 Purpose must be shared

19. ©2008 Sheila L. Margolis www.CultureofDistinction.com 19 Tool: Core Culture Interview 1. What is the purpose of your organization? 2. Why is that important? (Ask up to five times.) The Purpose is:______________________________ 3. What prime value is fundamental and distinctive to your company? Give examples. 4. What ideals drove the organizations founding? 5. What makes your organization feel different from other organizations doing similar work? The Philosophy is:____________________________ 6. To effectively achieve our strategy, what values should guide everyone in how we do our work? Explain. 7. What key values, if followed, would allow us to compete and thrive? The Priorities are:____________________________

20. ©2008 Sheila L. Margolis www.CultureofDistinction.com 20 Philosophy: How is the organization unique? Purpose Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Philosophy Distinctive & Enduring How?

21. ©2008 Sheila L. Margolis www.CultureofDistinction.com 21 Herb Kelleher represents the Southwest Spirit Purpose Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Philosophy Distinctive & Enduring How?

22. ©2008 Sheila L. Margolis www.CultureofDistinction.com 22 Amazon obsesses over customer service Purpose Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Philosophy Distinctive & Enduring How?

23. ©2008 Sheila L. Margolis www.CultureofDistinction.com 23 Purpose and Philosophy are Organizational Identity Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Philosophy Organizational Identity Purpose

24. ©2008 Sheila L. Margolis www.CultureofDistinction.com 24 Purpose = To make people happy Philosophy = Imagination Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Philosophy Organizational Identity Purpose

25. ©2008 Sheila L. Margolis www.CultureofDistinction.com 25 Tool: Core Culture Interview 1. What is the purpose of your organization? 2. Why is that important? (Ask up to five times.) The Purpose is:______________________________ 3. What prime value is fundamental and distinctive to your company? Give examples. 4. What ideals drove the organizations founding? 5. What makes your organization feel different from other organizations doing similar work? The Philosophy is:____________________________ 6. To effectively achieve our strategy, what values should guide everyone in how we do our work? Explain. 7. What key values, if followed, would allow us to compete and thrive? The Priorities are:____________________________

26. ©2008 Sheila L. Margolis www.CultureofDistinction.com 26 Priorities: How to compete & thrive? Purpose Philosophy Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Strategic How? Priorities

27. ©2008 Sheila L. Margolis www.CultureofDistinction.com 27 Priorities are strategic values Purpose Philosophy Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Strategic How? Priorities What?

28. ©2008 Sheila L. Margolis www.CultureofDistinction.com 28 Uncover the few Priorities QualityFlexibility Customer Service Teamwork Intelligence Learning Caring Relationships CollaborationPartnerships Aggressiveness Hard Work Perseverance Talent Innovation CreativityDiversity Performance Risk Taking Excellence Openness Fun Safety SustainabilityFriendliness Imagination Integrity

29. ©2008 Sheila L. Margolis www.CultureofDistinction.com 29 Quality is valued at Whole Foods Market

30. ©2008 Sheila L. Margolis www.CultureofDistinction.com 30 Georgia-Pacific values safety

31. ©2008 Sheila L. Margolis www.CultureofDistinction.com 31 Tool: Core Culture Interview 1. What is the purpose of your organization? 2. Why is that important? (Ask up to five times.) The Purpose is:______________________________ 3. What prime value is fundamental and distinctive to your company? Give examples. 4. What ideals drove the organizations founding? 5. What makes your organization feel different from other organizations doing similar work? The Philosophy is:____________________________ 6. To effectively achieve our strategy, what values should guide everyone in how we do our work? Explain. 7. What key values, if followed, would allow us to compete and thrive? The Priorities are:____________________________

32. ©2008 Sheila L. Margolis www.CultureofDistinction.com 32 Core Culture is your hidden asset Priorities Purpose Philosophy Core Culture

33. ©2008 Sheila L. Margolis www.CultureofDistinction.com 33 Tool: Core Culture Interview 1. What is the purpose of your organization? 2. Why is that important? (Ask up to five times.) The Purpose is:______________________________ 3. What prime value is fundamental and distinctive to your company? Give examples. 4. What ideals drove the organizations founding? 5. What makes your organization feel different from other organizations doing similar work? The Philosophy is:____________________________ 6. To effectively achieve our strategy, what values should guide everyone in how we do our work? Explain. 7. What key values, if followed, would allow us to compete and thrive? The Priorities are:____________________________

34. ©2008 Sheila L. Margolis www.CultureofDistinction.com 34 Core Culture Map with Definitions, Examples & Stories Purpose Philosophy Priorities Definitions Examples & Stories

35. ©2008 Sheila L. Margolis www.CultureofDistinction.com 35 Workshop Workshop & Dialogue Workshop, Surveys & Follow-up Comprehensive Assessment Options Choose the best way to define your organizations Core Culture

36. ©2008 Sheila L. Margolis www.CultureofDistinction.com 36 Agenda 1. Define Core Culture 2. Align HR Practices to Core Culture

37. ©2008 Sheila L. Margolis www.CultureofDistinction.com 37 Words = Actions

38. ©2008 Sheila L. Margolis www.CultureofDistinction.com Align the Five Ps 38 Priorities Purpose Philosophy Internal Practices Projections External Practices Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision

39. ©2008 Sheila L. Margolis www.CultureofDistinction.com 39 Align Internal Practices to the Core Priorities Purpose Philosophy Internal Practices Projections External Practices Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision

40. ©2008 Sheila L. Margolis www.CultureofDistinction.com 40 Many Internal Practices are the domain of HR Structure, Work Design & Systems Recruitment & Selection Training & Development Performance Management Internal Communications Technology

41. ©2008 Sheila L. Margolis www.CultureofDistinction.com 41 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not 1 2 3 4 5 Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? 1 2 3 4 5 Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? 1 2 3 4 5 Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? 1 2 3 4 5 Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? 1 2 3 4 5 Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? 1 2 3 4 5 Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core? 1 2 3 4 5

42. ©2008 Sheila L. Margolis www.CultureofDistinction.com 42 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not 1 2 3 4 5 Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? 1 2 3 4 5 Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? 1 2 3 4 5 Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? 1 2 3 4 5 Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? 1 2 3 4 5 Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? 1 2 3 4 5 Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core? 1 2 3 4 5

43. ©2008 Sheila L. Margolis www.CultureofDistinction.com 43 Align structure with the Core Customers Sales & Support People Department Managers Buyers, Merchandise Managers, Store Managers, Regional Managers Executive Team, Board of Directors

44. ©2008 Sheila L. Margolis www.CultureofDistinction.com 44 Align job titles with the Core Mac Genius

45. ©2008 Sheila L. Margolis www.CultureofDistinction.com 45 Align systems with the Core "Everyone, from the chief executive on down, is involved in cleaning the plane at the airport."

46. ©2008 Sheila L. Margolis www.CultureofDistinction.com 46 Align systems with the Core

47. ©2008 Sheila L. Margolis www.CultureofDistinction.com 47 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not 1 2 3 4 5 Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? 1 2 3 4 5 Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? 1 2 3 4 5 Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? 1 2 3 4 5 Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? 1 2 3 4 5 Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? 1 2 3 4 5 Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core? 1 2 3 4 5

48. ©2008 Sheila L. Margolis www.CultureofDistinction.com 48 Align recruitment materials with the Core

49. ©2008 Sheila L. Margolis www.CultureofDistinction.com 49 Align recruitment practices with the Core

50. ©2008 Sheila L. Margolis www.CultureofDistinction.com 50 Interview for culture fit How would you weigh an airplane without a scale?

51. ©2008 Sheila L. Margolis www.CultureofDistinction.com 51 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not 1 2 3 4 5 Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? 1 2 3 4 5 Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? 1 2 3 4 5 Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? 1 2 3 4 5 Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? 1 2 3 4 5 Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? 1 2 3 4 5 Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core? 1 2 3 4 5

52. ©2008 Sheila L. Margolis www.CultureofDistinction.com 52 Align training & development with the Core

53. ©2008 Sheila L. Margolis www.CultureofDistinction.com 53 Align training & development with the Core

54. ©2008 Sheila L. Margolis www.CultureofDistinction.com 54 Align training & development with the Core

55. ©2008 Sheila L. Margolis www.CultureofDistinction.com 55 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not 1 2 3 4 5 Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? 1 2 3 4 5 Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? 1 2 3 4 5 Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? 1 2 3 4 5 Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? 1 2 3 4 5 Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? 1 2 3 4 5 Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core? 1 2 3 4 5

56. ©2008 Sheila L. Margolis www.CultureofDistinction.com 56 90 Day Action Plan Align performance management with the Core

57. ©2008 Sheila L. Margolis www.CultureofDistinction.com 57 90 Day Action Plan Align performance management with the Core Bonus pay linked to team performance

58. ©2008 Sheila L. Margolis www.CultureofDistinction.com 58 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not 1 2 3 4 5 Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? 1 2 3 4 5 Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? 1 2 3 4 5 Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? 1 2 3 4 5 Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? 1 2 3 4 5 Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? 1 2 3 4 5 Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core? 1 2 3 4 5

59. ©2008 Sheila L. Margolis www.CultureofDistinction.com 59 Align internal communications with the Core

60. ©2008 Sheila L. Margolis www.CultureofDistinction.com 60 Align internal communications with the Core 3,600 active blogs where 25,000 IBMers share their expertise, experience and opinions ValuesJam

61. ©2008 Sheila L. Margolis www.CultureofDistinction.com 61 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not 1 2 3 4 5 Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? 1 2 3 4 5 Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? 1 2 3 4 5 Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? 1 2 3 4 5 Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? 1 2 3 4 5 Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? 1 2 3 4 5 Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core? 1 2 3 4 5

62. ©2008 Sheila L. Margolis www.CultureofDistinction.com 62 Align technology with the Core

63. ©2008 Sheila L. Margolis www.CultureofDistinction.com 63 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not 1 2 3 4 5 Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? 1 2 3 4 5 Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? 1 2 3 4 5 Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? 1 2 3 4 5 Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? 1 2 3 4 5 Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? 1 2 3 4 5 Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core? 1 2 3 4 5

64. ©2008 Sheila L. Margolis www.CultureofDistinction.com 64 Use culture to drive success Organizational Culture HR Practices Business Success

65. ©2008 Sheila L. Margolis www.CultureofDistinction.com 65 Are you a Culture and Change Steward?

66. ©2008 Sheila L. Margolis www.CultureofDistinction.com 66 Agenda 1. Define Core Culture 2. Align HR Practices to Core Culture

67. ©2008 Sheila L. Margolis www.CultureofDistinction.com 67 Define and shape the Core Priorities Purpose Philosophy Internal Practices Projections External Practices Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision

68. ©2008 Sheila L. Margolis www.CultureofDistinction.com 68 Tool: Core Culture Interview 1. What is the purpose of your organization? 2. Why is that important? (Ask up to five times.) The Purpose is:______________________________ 3. What prime value is fundamental and distinctive to your company? Give examples. 4. What ideals drove the organizations founding? 5. What makes your organization feel different from other organizations doing similar work? The Philosophy is:____________________________ 6. To effectively achieve our strategy, what values should guide everyone in how we do our work? Explain. 7. What key values, if followed, would allow us to compete and thrive? The Priorities are:____________________________

69. ©2008 Sheila L. Margolis www.CultureofDistinction.com 69 Core Culture Map with Definitions, Examples & Stories Purpose Philosophy Priorities Definitions Examples & Stories

70. ©2008 Sheila L. Margolis www.CultureofDistinction.com 70 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not 1 2 3 4 5 Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? 1 2 3 4 5 Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? 1 2 3 4 5 Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? 1 2 3 4 5 Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? 1 2 3 4 5 Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? 1 2 3 4 5 Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core? 1 2 3 4 5

71. ©2008 Sheila L. Margolis www.CultureofDistinction.com 71 Culture is your distinctive advantage

72. ©2008 Sheila L. Margolis www.CultureofDistinction.com 72 Culture is the basis for your success

73. ©2008 Sheila L. Margolis www.CultureofDistinction.com 73

74. ©2008 Sheila L. Margolis www.CultureofDistinction.com 74 Build your Culture of Distinction