Creating A Winning Culture

A few of my clients:

100+ every year since 1989…

Reality CheckKnowing – Doing

1 -10

Organization Effectiveness Audit

Page 2Be “Brutally Honest”

Scale of 1 – 10

2

The Pattern of Business Success

3

(T + C + ECF) x DE = Success

3

Talent

T = Talent

Here is how I define talent…

• Impeccable Character• Excellent Communicator• Positive Attitude• Competence + Aptitude • Creative /Innovative• Strong Drive = Proactive• Customer Focused• Solid Team Player

Job Description + Character

WHAT WHO

Cecil Van Tuyl

“It is all about people, people, people. You can kid yourself about a lot of things in your business, but at the end of the day it will always come down to people.”

The level of highly satisfied and engaged EMPLOYEES in your organization.

The number one factor in increasing the level of highly satisfied and engaged MEMBERS in your credit union is…

Key Drivers of Customer Satisfaction and Loyalty

Financial Performance

Quality P&S&

Member Relationship

EmployeeSatisfaction

Empowerment High Standards

Long-termOrientation

Enthusiasm, Commitment,

Respect

Training &Development

Fair Compensatio

n

CR= 104.12% increase in profits

CR= .404

CR=.334

CR=.277

CR=.275CR=.249

CR=.280 Coaching

CR=.285

CR=.371

CR=.365

CR=.191

CR=.247

TolerateNothing

Less

From: Practice What You Preach by Maister

Global study:16 countries529 companies35,589 respondents

Workshop Page 4

Member satisfaction drives customer loyalty… and member loyalty drives profitability

100%

90

80

70

60

50

40

30

20

Extremely Dissatisfie

d

SomewhatDissatisfie

d

SlightlyDissatisfie

dSatisfied

Very Satisfied

Zone of Defection

Zone of Indifferenc

e

Zone of Affection

Loyalt

y

Member Satisfaction

Terrorist

Evangelist

A 5% increase in loyalty among your best members…

Can produce a profit increase of 25% – 85%

I hate you

I don’t care about you

I love you

Actively disengaged employees can reduce revenues by up to 22%, while highly satisfied and engaged

members can drive profits up by as much as a 189%

Culture = Cash

Patrick Lencioni

“Once organizational health (culture) is properly understood and placed in the right context, it will surpass all other disciplines in business as the greatest opportunity for improvement and competitive advantage. Really!”

HUGE data set…

• 600,000 employees at 500 companies.• 6,800 senior executives.• 900 books and academic articles.• 30 CEOs of Fortune 500.

From: Beyond Performance by Keller and Price

Nine Elements of Organizational Health

From: Beyond Performance by Keller and Price

Key attributes of winning cultures

• High aspirations and a desire to win

• Extreme customer focus

• A “think like owners” attitude

• Bias to action

• Individuals who team

• Passion and energy

Bain & Company

1 - 10

5

From the Employee’s Perspective:

5

1 - 10

Focus me

Know me

Care about me

Hear me

Help me feel proud

Equip me

Help me see my value

Help me grow

Help me see my importance

What do employees want? S B A

C = Culture

Business Side• Integrity• Innovation• Accountability• Execution• Urgency• Customer Focus• Ownership Mentality

What do engaged employees look like?

1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization. 1 - 10

6

The Evergreen Project

10 year study of 160 top companies

40 distinct industries

200 management practices

Winners, climbers, tumblers, losers

Winners had an average Total Return to Shareholders of 945%...

The Losers only averaged a TRS of 62%

From: What (really) Works by Joyce, Nohria, Roberson 7

The Four Primary Practices:

1. A sharply focused, clearly communicated and well-understood strategy for growth.

2. Flawless operational execution that consistently delivers the value proposition.

3. A performance-oriented culture that does not tolerate mediocrity.

4. A fast, flexible, flat organization that reduces bureaucracy and simplifies work.

From: What (really) Works by Joyce, Nohria, Roberson 7

The Secondary Management Practices:

• Talent = find and keep the best people.• Key leaders show commitment and

enthusiasm for the business.• Embrace strategic innovation.• Master the power of partnerships.

From: What (really) Works by Joyce, Nohria, Roberson

Score yourself on the 1–10 scale for all eight practices on page 7

Where are we going + how will we behave on the way?

FocusDifferentiation“No”

Stakeholders + guiding collation

Vision + ValuesStrategyPlansGoals / ObjectivesTactics / Actions

Procedures / ProtocolsRepeatable Process

Clear / consistent / relentless @ Execution

Training +time / money /

supplies / people

Measure Track & PostTransparency

Renewal

Praise + Celebration Eliminate Mediocrity

NITB

Non-negotiable Standards + Fanatical Discipline

Very Clear Expectations Specific and Measurable GoalsNecessary Systems & SupportRobust CommunicationConsistent Tracking of

PerformanceRegular Performance ReviewsRefuse to Tolerate mediocrity

Page 81 - 10

Zappos Sales in 1998 = 0 Sales in 2008 = 1.2 Billion Looking back, a big reason we hit our goal early

was that we decided to invest our time, money and resources into three key areas: customer service (which would build our brand and drive word-of-mouth), culture (which would lead to the formation of our core values), and employee training and development (which would eventually lead to the creation of our Pipeline Team).

Even today, our core belief is that our Brand, our Culture and our Pipeline are the only competitive advantages we will have in the long run. Everything else can and will be copied.

Tony Hsieh – CEO Zappos

Final Workshop

• Look back over all of your notes and scores, especially the LOW scores!

• Thank about everything you have learned in this session.

• What is the pattern?• Do the workshop on page 10 and take it

VERY seriously!!!

If you have any questions at all please do not hesitate to send a note or call. My email address is: john@johnspence.com

My website is: www.JohnSpence.com My twitter address is: @awesomelysimple

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www.blog.johnspence.com

Lastly, these slides have already been uploaded to:

www.slideshare.net/johnspence

Thank You