1. Welcome To The Denison Consulting Certification Workshop

2. Your Facilitators Bryan Adkins CEO badkins@denisonculture.com
Karl-Heinz Oehler
Managing Director, Denison Consulting Europe
Lindsey Kotrba
President
Dave Croci
Director of Client Management
Levi Nieminen
Director of Research & Development
Nabil Sousou
VP Global Sales, Denison Consulting

3. GROUP DINNER AT THE EARLE RESTAURANT
Workshop Agenda
Wednesday, June 4
NETWORKING BREAKFAST
Welcome and Introductions
Building High Performance Cultures
What Is Culture?
Understanding Habits & Routines
The Denison Model
Managing Dynamic Tensions
How Culture Links to Business Performance
LUNCH
Application
Setting the Stage for Culture
Solutions Scenarios
Business Case Studies
GROUP DINNER AT THE EARLE RESTAURANT
Thursday, June 5
NETWORKING BREAKFAST
Highlights and re-cap of Day 1
Developing Leaders
Linking Culture & Leadership
The Denison Leadership Development 360
Leadership Case Studies
LUNCH
Application
Key Phases of Data Collection & Analysis
Additional Tools
Denison Product Pricing
Support Services
Your pilot project
SESSION ENDS

4. Building High Performance Business Cultures

5. Mindset is the Foundation
Norms, Behaviors
and Artifacts.
Visible, tangible.
Personal Values
and Attitudes.
Less visible, but
can be talked about.
Cultural Values
and Assumptions.
Usually not visible at all, often held subconsciously, rarely (if ever) questioned in everyday life.
Covered in pre-work video
Image by R.A. Clevenger

6. Culture Reflects the Lessons Learned Over Time
Culture Reflects the Lessons Learned Over Time
Lessons
Survival
Culture
Underlying Principles
Visible Symbols
Covered in pre-work video
Image by R.A. Clevenger

7. HSBC ADVERTISEMENT

8. Rituals, Habits, & Routines
We must  make  automatic  and habitual  ... as many useful actions as we can.
The more of the details of our daily life we can hand over to the effortless custody of automation, the more our higher powers of mind will be set free for their proper work.
William James

9. Hold Your Horses!
Morrison’s essay opens with a story of a young time & motion expert trying to find a way to speed up artillery crews during WWI, just after the fall of France. He watched one of the five- man gun crews practicing in the field with their guns mounted on trailers, towed behind their trucks. Puzzled by certain aspects of their procedures, he took some slow-motion pictures of the soldiers performing the loading, aiming, and firing routines.
When he ran these pictures over once or twice, he noticed something that appeared odd to him. A moment before the firing, two members of the gun crew ceased all activity and came to attention for a three-second interval extending throughout the discharge of the gun.
Since this seemed like quite a waste of time, and the young time & motion expert really couldn’t  make any sense of it, he asked an old artillery colonel to look at the films to see if he could explain this strange behavior.
The colonel, too, was puzzled. He asked to see the pictures again. "Ah," he said when the performance was over, "I have it. They are holding the horses.”
Elting Morrison, Gunfire at Sea

10. Paul O’Neill at Alcoa: Identifying Keystone Habits
It got so bad they would bring dummies to the parking lots, dress them like managers, and burn them in effigy. “Alcoa was not a happy family. It was like the Charles Manson family, but with the addition of molten metal.”
O’Neill picked safety as one thing that unions and executives could agree on. Zero injuries. Injuries must be reported to the CEO within 24 hours.
“We killed this man. It’s my failure of leadership. I caused his death. And it is the failure of all of you in the chain of command.”
Once you see everything as a bunch of habits, it’s like someone gave you a flashlight and a crowbar and you can get to work.

11. Changing Culture By Changing Rituals, Habits & Routines
Preserve
&
Strengthen
Invent
Perfect
Unlearn
Leave Behind
Rethink
Try Again
Good
Bad
Old New

12. So how do you change a culture?

13. Denison Consulting: Culture Change Process

14. The Denison Model

15. What Counts… Adaptability Pattern, Trends, & Market
Building human capability, ownership, and responsibility
“Are our people aligned and engaged?”
Adaptability Pattern, Trends, & Market
Mission Direction, Purpose, & Blueprint
Defining a meaningful
long-term direction
for the Company
“Do we know where
we are going?”
Translating the demands of the business environment into action
“Are we listening
to the marketplace?”
Involvement Commitment, Ownership, & Responsibility
Consistency Systems, Structures, & Processes
Defining the values
& systems that are the basis of a strong culture
“Does our system create leverage?”

16. MISSION
Creating Shared Vision: creating a clear and compelling vision of a future state
Defining Strategic Direction & Intent: understanding, developing and executing strategy
Defining Goals & Objectives: setting clear goals and tracking progress against those goals

17. INVOLVEMENT Developing Organizational Capability:
developing employees to meet current and future organizational needs
Building Team Orientation:
developing successful, effective teams
Empowering People:
sharing information and communicating so that employees have the information they need to make informed decisions – the ability to make a difference

18. ADAPTABILITY Creating Change:
encouraging change and continuous improvement
Emphasizing Customer Focus:
understanding customer needs - developing responsive, effective working relationships with customers
Promoting Organizational Learning:
seeing continuous learning and innovation as critical to adapting and leading in a dynamic environment

19. CONSISTENCY Managing Coordination & Integration:
building effective working relationships with a range of colleagues & stakeholders across the organization
Working to Reach Agreement:
engaging in effective problem solving and decision making
Defining Core Values: aligning the behavior of self and others in accordance with the Core Values

20. Beliefs and Assumptions: The ‘GREY’ Area in the Middle of the Model
At the heart of every culture are a set of beliefs and assumptions – about the organization and its people; the leaders; the customers; competitors; the sector; etc.
Resolving cultural issues and making progress in the development of a high-performance culture often requires a thoughtful exploration of the underlying beliefs and assumptions.
Beliefs and Assumptions

21. Effective leaders and organizations focus on Flexibility AND Stability
Dynamic Tensions
Effective leaders and organizations are Externally AND Internally focused
Effective leaders and organizations focus on Flexibility AND Stability

22. Dynamic Tensions
Effective leaders and organizations balance ‘External Adaptation’ AND ‘Internal Integration’
Effective leaders and organizations offer strong leadership AND involve their employees

23. A Culture Profile: The100 Year Old Manufacturing Company

24. One Hundred Year Old Manufacturing Company

25. One Hundred Year Old Manufacturing Company
First in industry, but declining
Trying to hold on to the past
1st time in 20 years failed to meet targets
Targeted by competitors
President operationally focused
“We’re a team going down together

26. How Culture Links to Business Performance

27. Culture Links to Business Performance
· Growth
· Innovation
· Customer Satisfaction
· Stable
Performance Over Time
· Profitability
ROI, ROS, ROE
· Operating Performance
· Quality
· Employee Satisfaction

28. Impact on Performance
The higher the culture scores, the greater profitability, sales growth, & market value (based on a study of 130 firms; )
Bottom 25%
Top 25%
Return-on-Assets
2.3%
3.2%
Sales Growth
1.4%
23.1%
Market-to-Book Ratio
2.6 4 28

29. Satisfying Your Customers
Below 50% Highly Satisfied
Above 80% Highly Satisfied
Study of Automotive Service Centers in the USA
Total of 338 dealerships and over 12,000 employees
Compares organizational culture and customer satisfaction

30. Organizational Culture and Employee Engagement
Bottom 10
Top 10
DOCS OVERALL
11th Percentile ENGAGEMENT FACTOR rd Percentile

31. Culture Causes Performance
2 Years
1 Year
In summary, culture comes first and serves as a driver of subsequent performance levels.

32. When Is High Consistency Bad?
When Involvement is low, high Consistency will likely lower an organization’s performance.

33. 2013 Denison Global Benchmark
Over 1000 organizations included in the normative database
Robust industry representation
Benchmarks are stable across years ( )
International representation: Within the last 5 years, over half of the respondents are from outside the U.S.
1/3 of companies are headquartered outside of U.S.

34. Why We Recommend the Global Benchmark
The most stable, representative comparison group
Different Industries and different Countries, on average, have very similar results to the global benchmark
Composites are available for many different Industries, Regions and Countries

35. Why We Use Percentiles
Survey Item Mean % Favorable Percentile
Score (4s & 5s) Score
Most employees are highly involved in their work
There is an ethical code that guides our behaviour and tells us right from wrong
Customer input directly influences our decisions
People work like they are part of a team
There is good alignment of goals across levels
Our vision creates excitement and motivation
for our employees
It is easy to coordinate across different parts
of the organization
3.94
3.78
3.59
3.46
3.21
3.04
2.81
86%
82%
64%
57%
41%
40% 50

36. Our Research Is Ongoing
European Journal of Work and Psychology
Reliability and Validity of the DOCS and other measures of Culture
Looking Across the World
Other exciting research
Financial implications of manager / non-manager alignment
Effects of Executive coaching interventions
Unionization and organizational culture

37. Application

38. Setting the Stage for Culture

39. Culture Data Should Do 3 things:
drive honest conversations among the collective about ‘the way we do things around here’ that…
lead to thoughtful actions and…
results in higher performance
It is important to remember that we talk about Culture we are talking about the ‘collective’. The emphasis is on our collective ability to drive performance across the Petronas organisation.
The culture data we collect is intended to do 3 things:
First it is intended to drive honest conversations among the collective about ‘the way we do things around here’ , conversations that
lead to thoughtful actions and ultimately
results in higher performance
During this workshop we will help you develop the capabilities to facilitate those honest conversations and drive the creation of thoughtful actions.

40. Choosing to Shift the Culture? Implementation & Evaluation
Honest conversations that lead to thoughtful action… and higher performance
Step I Assessment of the Current State
Goal: To assess the current culture to surface strengths and weaknesses (and identify possible sub- cultures/areas of opportunity)
Step II Creating Understanding
Goal: To engage in dialogue to create a common understanding of the data and discuss the implications of the current culture for the business
Step III
Choosing to Shift the Culture?
Goal: To establish agreement regarding the need for culture change/ development AND to focus efforts on areas of business impact
Step IV
Action Planning
Goal: To generate ideas for moving the culture forward; prioritizing and developing specific action plans
Step V
Implementation & Evaluation
Goal: To execute against the action plans and measure progress – with a link back to organizational and/or group performance

41. Are we clear and aligned?
Are our people happy?
Is our culture… good or bad? strong or weak?
Culture
Are we clear and aligned?

42. High level of clarity & alignment Higher levels of performance
Mix of clarity & confusion
Average levels of performance
Some people look at their culture results and will say that it is an indication of how ‘happy’ their people are or the extent to which we have a good or bad culture. We prefer to use the words ‘Clarity and Alignment’ when talking about culture.
We have learned that when organizations have a lot of color in their profiles – they also have higher levels of clarity & alignment – meaning employees can describe their priorities…what teamwork looks like…what their core values are. The more ‘white’ space we see in a profile – the less likely employees are to be able to describe those things. We say that the more white space you see - the more uncertainty and confusion that typically exists within the group or organisation.
Confusion & uncertainty reigns
Lower levels of performance

43. What you might hear…

44. “The vision is inspiring and exciting”
“There’s a clear line-of-sight.”
“Purpose.”
“We do a good job of Connecting the Dots”
“The vision is inspiring and exciting”
“The focus on short term and long term goals makes the company reach high levels of achievement.”
“We all have the same vision which keeps us focused on what really matters.”
“One-on-ones and 360 reviews provide individuals with constant reminders of our goals.”
“Flying blind”
“My priorities are whatever my boss says they are that day.”
“We’re fire fighters”
“Frustrating”
“Uncertainty is the best word to describe working here.”
“We’re not sure what the future holds.”

45. “It’s all about winners and losers.”
“We have a Moral Compass”
“Communication efforts across departments have allowed broader perspectives and better decisions.”
“My manager lives the core values and regularly addresses them on conference calls – impressive!”
“Alignment”
“We engage in
Constructive Conflict.”
“We solve problems and we move forward together.”
“All the team members believe in doing the right thing and creating win-win situations.”
“Issues remain unresolved and the team stays in flux.”
“Silos”
“It’s all about winners and losers.”
“Stove pipes”
“Self-serving”
“The end justifies the means”
“The leaders don’t walk the talk.”

46. “We value highly capable people. The talent level here is very high.”
“There is a high level of transparency in this organization.”
“We band together to work as a single unit to achieve our daily goals.”
“I don't feel like I work for this great company - I feel a sense of ownership.”
“We value highly capable people. The talent level here is very high.”
“We've learned to play towards each other's strengths and we work together to improve our weaknesses.”
“I feel that I am using my skills and intelligence rather than being micro-managed.”
“We have trouble retaining our best talent.”
“This is a Compliance Culture.”
“Check your brain at the door.”
“Internal competition is valued over cooperation.”
“Leaders believe they always know best.”
“Information is power.”

47. “Forgive and remember” “Change is NOT a criticism of the past.”
“We do project post-mortems
and lessons learned events.”
“Hiding mistakes is more detrimental than making them.”
“We ask ourselves what does the customer want and need when we are looking at our processes.”
“A customer mind-set permeates the organization.”
“Change is not a program…it is a matter of survival.”
“Fear is prevalent throughout the organization.”
“This is how we’ve always done it.”
“Change happens to us, not with us.”
“We can be arrogant…we don’t always listen to our customers.”
“Finger pointing.”
“Our philosophy is Naming - Blaming – Shaming.”

48. Mergers & acquisitions
Restructuring
Leadership changes
Mergers & acquisitions
Internal and External Forces that have the ‘potential’ to create more uncertainty and ambiguity
Competition
Economy
Regulatory changes
New technologies

49. Solutions Scenarios

50. Building a High Performance Business Culture
The Denison Solutions
Building a High Performance Business Culture
Turnaround
&
Transformation
Leadership
Transitions
Development
Mergers
Acquisitions
Strategic
Alignment
It is important to remember that we talk about Culture we are talking about the ‘collective’. The emphasis is on our collective ability to drive performance across the Petronas organisation.
The culture data we collect is intended to do 3 things:
First it is intended to drive honest conversations among the collective about ‘the way we do things around here’ , conversations that
lead to thoughtful actions and ultimately
results in higher performance
During this workshop we will help you develop the capabilities to facilitate those honest conversations and drive the creation of thoughtful actions.

51. Business Case Studies
It is important to remember that we talk about Culture we are talking about the ‘collective’. The emphasis is on our collective ability to drive performance across the Petronas organisation.
The culture data we collect is intended to do 3 things:
First it is intended to drive honest conversations among the collective about ‘the way we do things around here’ , conversations that
lead to thoughtful actions and ultimately
results in higher performance
During this workshop we will help you develop the capabilities to facilitate those honest conversations and drive the creation of thoughtful actions.