John Kotter and James Heskett, Corporate Culture and Performance
Although tough to change, corporate cultures can be made more performance-enhancing.
6
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
5
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
Transformation Will Require a Change In Thinking…
“People are very open minded about new things. As long as they are exactly like the old ones.”
- Charles Kettering
Creating a High Performance Culture
July 30, 2009
Agenda
• Culture and Its Impact • Defining High Performance Culture • Creating a High Performance Culture
Structure of Corporate Culture
Operating System Leadership Tools & Practices Shared techniques that drive practices, aid problem solving and establish consistent performance – day to day, week to week, year to year Social Architecture
Former CEO, Honeywell
7
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
Creating a High Performance Culture High Performance Culture
A set of shared beliefs, values, attitudes, goals and actions at all levels focused on superior execution.
With You Today
Brent Jameson, Vice-President, Guidon Performance Solutions, LLC • Over 15 years experience in application of Lean and Six Sigma • Extensive experience migrating Kaizen and Lean thinking from manufacturing to front and back office operations • Client experience in retail, healthcare, financial services, information technology, and telecommunications
3
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
Jim Dickey, Vice-President, Guidon Performance Solutions, LLC •Over 15 years experience in application of Lean and Six Sigma •Co-founder of Guidon Performance Solutions – the pioneer in applying LeanSigma® in non-industrial and non-traditional companies •Client experience in retail, healthcare, financial services, telecommunications and government •Pioneered groundbreaking approach to managing capacity and staffing in highly complex, highly variable operating environments
Recognition and Reward
Reward mechanisms for living the values
Changing the culture requires a focus on the Social Architecture and Operating System
10
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
11
© 2009 Guidon Performance Solutions, LL Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
“The culture of a company is the behavior of its leaders. Leaders get the behavior they exhibit and tolerate. You change the culture of a company by changing the behavior of its leaders.” Larry Bossidy
Social Architecture
• The “real” social architecture • Defined by those attributes and behaviors which are seen to lead to promotion and advancement • Same as the attributes and behaviors espoused by the leadership as being desirable
The Power of Culture
Corporate culture can have a significant impact on a firm's longterm economic performance.
Corporate cultures inhibiting strong performance are not rare; they develop easily, even in firms full of reasonable and intelligent people.
Shared Values and Beliefs
Description of the Leadership’s Vision of the desired culture
Common Terminology and Language
The mechanism to bring the desired culture alive through daily reinforcement
– Cycles of Use Ecosystem – Performance Management – Talent Development
• Case Study • Questions
2
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.
“…The two fundamental forces that drive GE…a common operating system and common social architecture…”
Jack Welch GE 1999 Annual Report
9
© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.