Enterprise for Health May 7-8, 2007, Rouen, France Carsten Tams

Enterprise for HealthMay 7-8, 2007, Rouen, FranceCarsten Tams

The Learning and Reporting System on Corporate Culture

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Compare: Putting the Service-Profit Chain to Work; James L. Heskett; Thomas O. Jones; Gary Loveman; W. Earl Sasser Jr.; Leonard A. Schlesinger, HBR OnPoint Article, July 01, 2000.

From values to business successOur model for measuring organizational culture:The “values-profit chain”

Businesssuccess (e.g., revenue growth, profitability)

Contribution to society

Goals

Employee retention

Employee productivity

Employeebehavior

Identification with job and company

Autonomy and self-actualization

Participatory leadership

Development perspectives

Motivation

Employeeattitudes

Workplace design

Job design Employee

selection & development

Employee rewards & recognition

Tools for serving customers

Intern. policies & practices

Delegation Dezentraliza-

tion Leadership Communi-

cation Participation Development Job security Health &

safety Entrepreneur-

ship Creativity Citizenship

Values

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Interlinked tools for managing organizational culture

What are the mission and values that make us successful?

The Essentials

According to our employees, do we live up to these values and goals?

Employee Surveys

What practices are available to enhance the culture in our company?

The Corporate Culture Toolbox

How do the people practices in our company compare to others?

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Sample company

Sample VP of HR

The Corporate Culture Survey

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From values to business success

Corporate Culture Survey:

A web survey for heads of HR on people related policies & practices

Businesssuccess


Values

Putting the values-profit chain into practice:

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Companies participating in survey

33

0

19

28

18

0 10 20 30

2005

2004

2003

2002

2001

Redesign

Businesssuccess


Values


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Each company receives a customized, detailed report.

This report allows the company to compare the practices it has implemented with the practices implemented in the comparison group.

Businesssuccess


Values


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Aggregating the responses of multiple companies reveals shared priorities or challenges.

240. In managing people in your company, which of the following topics will be among your top 3 priorities in the next 12 months? max. 3 answers

32%

37%

37%

37%

58%

0% 50% 100%

Compensation and benefits

Leadership development

Training & development

Employee information and communication

Staffing/job security/job creation

Businesssuccess


Values


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The Corporate Culture Toolbox:

A directory of policies and practices of Bertelsmann companies

Businesssuccess


Values


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High demand for employee surveys leads to foundation of Bertelsmann Survey Services.

Businesssuccess

Employeeattitudes


Values


Bertelsmann Stiftung

RTL Group

2008200720062005200420032002 Comp.Eligible employees

Since 2002, more then 20.000 employees were eligible to participate in a survey commissioned by their division or company.

arvato

Gruner + Jahr 2

1

30

39 ca. 6.000

279

11.296

12 2.730

2024

DirectGroup

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Corporate CultureSurvey (Heads of HR):• Employee

behaviors (turnover, sick rate, etc.)

Businesssuccess

Employeebehavior

Employeeattitudes


Values


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Administration of the Corporate Culture Survey

What were the topics addressed in the questionnaire?

The questionnaire asked about HR-related practices (e.g, Does your company have a succession management program?), workforce demographics (e.g., How many managers are female?) and employee behaviors (e.g., turnover).

Who filled in the survey?

Typically the Head of HR of the company. In some cases the GM or the works council representative participated.

Per company, only one questionnaire was filled out.

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Who was invited to participate in Corporate Culture Survey?

1. arvato direct services Dortmund GmbH2. arvato direct services Kornwestheim GmbH3. arvato direct services, Springe4. arvato direct services Wilhelmshaven GmbH5. arvato services Gütersloh6. arvato services UK Liverpool7. arvato systems GmbH8. BAG Unternehmensbereich Mohn Media9. BCA10.Berryville Graphics11.BFS finance Ltd.12.BMG Direct Indianapolis13.BMG publishing14.Bookspan, US15.Circulo de Lectores16.Circulo de Leitores S.A.17.Corporate Center18.Donauland19.Eurohueco

20.France Loisirs21.GGP Media GmbH22. inmediaONE23.JPK Bertelsmann Distribution Russia24.mb Tiefdruck25.Offset Paperback Manufacturing26.Random House Germany27.Random House UK28.Random House US - Adult Publ. & Sales29.Random House US - Childrens Books30.Random House US - Op. Cent. Westminster

and Crawford31.Sonopress Germany32.Sonopress Irland33.Sonopress LLC34.SONY BMG35.Sony/SonyBMG36.Swiat Ksiazki Polen37.UFA Film & TV Produktion

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Learnings

Aggregating the responses of multiple companies reveals shared priorities or challenges

1. Bottom-up learnings

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Top 3 Priorities for HR professionals in arvato companies

240. In managing people in your company, which of the following topics will be among your top 3 priorities in the next 12 months? max. 3 answers

3%

5%

5%

8%

10%

13%

16%

24%

27%

27%

35%

49%

51%

0% 50% 100%

Delegation

Occupational health & safety

Other

Awareness of company mission and values

Employee relations/employee representation

Work/life balance...

Customer relations

Compensation and benefits

Human resource strategy

Employee information and communication

Leadership development

Training & development

Staffing/job security/job creation

Bertelsmann (N= 37)

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241. Which of the following programs/policies/practices is currently of particular interest to you? (49 possible answers)

Practices currently of greatest interest to Bertelsmann companies

38%

38%

40%

40%

43%

43%

43%

46%

49%

49%

51%

51%

57%

62%

65%

0% 50% 100%

Departmental bottom-up feedback meetings

Performance recognition programs for outstanding performance

Mentoring and coaching programs

Market rate comparison of compensation package

Programs to promote communication btw. CEO and employees

Performance objectives / competency models

Programs for planning employees’ T&D activities

Succession planning programs

Regular review of company’s human resource strategy

Leadership performance evaluation

Goal setting and performance evaluation

Developmental training programs

Leadership training programs

Health/wellness-related benefits

Technical training programs

Bertelsmann (N= 37)

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Bertelsmann (N= 37)

38%

38%

40%

40%

43%

43%

43%

46%

49%

49%

51%

51%

57%

62%

65%

0% 50% 100%

3 areas are of particular interest to Bertelsmann companies:

• Leadership development

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Bertelsmann (N= 37)

38%

38%

40%

40%

43%

43%

43%

46%

49%

49%

51%

51%

57%

62%

65%

0% 50% 100%



• Training

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Performance recognition programs














Bertelsmann (N= 37)

38%

38%

40%

40%

43%

43%

43%

46%

49%

49%

51%

51%

57%

62%

65%

0% 50% 100%



• Training

• Performance management

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Expertise offered by Bertelsmann companies

242. About which of the following programs/policies/practices would you be willing to share your expertise with other Bertelsmann companies? (49 possible answers)

Employee intranets


Employee suggestion programs


Work/life balance-related activities

Employee handbooks, outlining company’s policies & programs

Occupational health and safety programs

Orientation/induction program for newly hired employees




Flexible work arrangements


Insurance plans for medical/health/life

On-the-job training programs

11%

11%

11%

14%

14%

14%

14%

14%

14%

14%

14%

14%

16%

16%

16%

0% 50% 100%Bertelsmann (N= 37)

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Employee intranets















Bertelsmann (N= 37)

11%

11%

11%

14%

14%

14%

14%

14%

14%

14%

14%

14%

16%

16%

16%

0% 50% 100%

Expertise offered in 3 areas are of particular interest:

• Training: some

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Employee intranets

Performance recognition programs














Bertelsmann (N= 37)

11%

11%

11%

14%

14%

14%

14%

14%

14%

14%

14%

14%

16%

16%

16%

0% 50% 100%


• Training: some

• Performance management: some

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Employee intranets















Bertelsmann (N= 37)

11%

11%

11%

14%

14%

14%

14%

14%

14%

14%

14%

14%

16%

16%

16%

0% 50% 100%


• Training: some

• Performance management: some

• Leadership development: little

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Learnings

Feeding back aggregate (!) data to companies provides them with a more comprehensive picture

of the state of their company.

1. Bottom-up learnings

2. Top-down learnings

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What are some of the key findings that this report reveals to “Sample Company”?

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Leadership Development is one of the areas in which relatively few practices are implemented.

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“Sample company” has implemented fewer practices in the category “Leadership development” than 50% of the companies in the comparison group.

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“Sample company” has implemented 20% of all practices related to “Leadership development”.

In the comparison group, companies implemented on average 41% of all practices related to “Leadership development”. This means: “Sample company” does considerably less than the average company in the comparison group.

Let’s take a closer look inside the category “Leadership development”.

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“Sample company” uses 360-degree feedback.

But is has only partially implemented a training program for leadership development.

It has no program to evaluate managers’ leadership performance.

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“Sample company” does not track who amongst its managers is ready for promotion.

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The 360 survey about managers’ leadership style is not conducted regularly.

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Succession planning is not conducted regularly.

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Members of the senior management group have short tenure. Only 11% have been with the company for more than 3 years.

This is less then in 93% of companies in the comparison group (7th percentile).

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A lot of change in the Management Team!

Leadership Development might be an important issue in this company.

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“Leadership development” is not marked as one of the 3 priorities in the next 3 months.

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However, the company identifies 9 Leadership Development-related practices as of current interest.

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Summary of learnings about Leadership Develop-ment that “Sample company” can draw from this report:

• Leadership Development is one of the areas in which relatively few practices are implemented.

• To the extent that Leadership Development practices exist, they tend to be partially implemented and not applied regularly.

• However, Leadership Development might be an important issue: The Management Team’s tenure in the company is very low. Many senior managers have been promoted from within.

• Not surprisingly, “Sample company” identifies 9 Leadership Development-related practices as of current interest.

• There are a number of other companies who share interest in these practices. Is there potential to cooperate or exchange expertise?

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Please contact:

Carsten Tams

Vice President HR Policy and Corporate CultureCorporate Human ResourcesBertelsmann AG

[email protected]:+1 212 782 1057+49 (0) 5241 80 89026

Any questions or comments?

Documents

Enterprise for Health May 7-8, 2007, Rouen, France Carsten Tams