Firm Culture Presentation - AIA - 11-13-2015 - Final Presentation...2015/11/13 · 11/13/2015 1 Firm Culture RSPDesign that works. Ruehl + Firm Culture: Yes, It Really Matters! Program

11/13/2015

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Firm Culture RSP Designthatworks.Ruehl +

Firm Culture: Yes, It Really Matters!Program #65

11/13/2015

RSP Designthatworks.Ruehl +

Nick Ruehl, AIA / Jeremy Mayberg, AIA


Our Goal:

You Leave Inspired to Improve Your Firm Culture


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Why?

It Matters!



To Whom:

Your ClientsYour People

Your StockholdersYour Leadership Legacy

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But, Does Culture

Really Matter?


Memo, July 1, 2000Office of the Chairman

“We stand on the foundation of our Vision and Values. Every employee …..is expected to conduct business with other employees, partners, contractors, suppliers, vendors, and customers keeping in mind Respect, Integrity, Communication, and Excellence. Everything we do evolves from our vision and values.”

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Respect, Integrity, Communication,Excellence


2015

Sep 20/21

"I personally am deeply sorry that we have broken the trust of our customers and the public.“ Doctor Martin Winterkorn, CEO

Sep 14Sep 7Aug 31

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2015 Fall Welcome and ExpoSimon Anderson / Global Futurist & Author

10 Transformational Trends


Alvin Toffler, FuturistFuture Shock, Third Wave, Powershift

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn. ”

Alvin Toffler

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bimacademy

bimacademy

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Build New York Competition – West Yard of Hudson Yards

Ryder Alliance – 39 People / 10 Companies / 3 Countries


One ConstantFor firms in thefuture…“…will be the continuing incorporation of technology, sustainability and accessibility.

The other constant isCHANGE.

Adapt quickly or die.

Shawn AlshutPrincipal, Studio A2

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Yes,Firm Culture

Really Matters!


Peter Drucker

Lessons:• How organizations can bring

out the best in people

• How workers can find a sense of community and dignity

Peter Drucker: The Man Who Invented Modern Management39 Books over 70 Years

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Without Linking Leadership

You Can’t Talk Firm Culture

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Firm Culture

“Sum Expression of What Matters to the Senior Leaders of a Firm”

Nick Ruehl


How Do You Know?• How they Model Shared Values

• Where they Are Centered

• Where they Spend Money

• Whom they Hire

• What they Reward

• What they Tolerate

• How they Care For People

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Everything we are, or hope to become, will be determined not by the people we work for….

…but by the people who work for usHerb Kellerher – Founder Southwest Airlines

If you focus your energy on the care and feeding of your

staff

your staff will focus their energy on the care and feeding of your

customers


Congratulations…we survived the Great Recession!

Firms did everything they could to do to keep their best staff in their boat

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We cut staff, salaries, hours, and benefits

And our staff were grateful to have a job


and now we’re losing those great staff we worked so hard to keep

The economy is recovering… our workload’s up

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Every night your entire staff…your most important asset…

will quit work and walk out the door

And your #1 job is making sure they’re jazzed about

working for you…

so they come back tomorrow


The single most critical issue determining a firm’s ability to compete effectively in the marketplace, will be how successfully you can attract and retrain a passionate, energized, and engaged workforce

If you’re not laser-focused on that issue right now….

Well that’s your business – literally

Because your competition is, and they’ll be coming for your best staff with alarming intensity…

Who’s magnet is stronger?

Yours, or your competitions?

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In 2020 the top of the baby boom bell curve will be 65

3X times as many registered architects will be leaving the profession as entering it

It’s a perfect storm - driven by demographics


Multiple downturns, high cost of tuition, poor job opportunities and low pay

Further impacted by the missing 32% www.eqxdesign.com

It’s a perfect storm - driven by demographics and economics

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To compete effectively you’ll need to get serious.. and seriously creative… about how you

• Attract and retain millennials

• Engage that missing 32%

• Retain and transfer the boomers knowledge and experience

• And expand diversity in the profession and your workforce

Recruitment and Retention has become a contact sport


Recruitment and Retention has become a contact sport

Success will be determined by how well you can evolve your culture to embrace the rich opportunities a diverse workforce will afford you…

• To access a wider talent pool

• Increase employee satisfaction, engagement and productivity

• And reduce costly turnover

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Making Sense Of Firm Culture


Culture Keys - High Performing Firms

1. Know Where They Are Going2. Live Their Values

3. Focus Externally

4. Embrace the TEAM / individual

4. Reward the Right Behaviors

5. Generate Internal Energy

6. Stay Relevant By Changing

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#1High Performing Firms

Know Where They Are Going


“If you don’t know where you’re going, you’ll end up someplace else”

Yogi Berra

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High Performing Firms Know Where They Are Going

Clarity :

• Mission

• Vision

• Shared Values

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Clarity of Mission

• Purpose / Why?

• Overall Goal



Clarity of Vision

• Direction / Where?

• Aspirations

• Provides Focus

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Clarity of Values

• What Is Important

• Shared v. Individual

• Core v. Differentiating


About Microsoft

Our MissionEmpower every person and every organization on the planet to achieve more

Our StrategyBuild best-in-class platforms and productivity services for a mobile-first, cloud-first world

Our AmbitionsReinvent productivity & business processes, build the intelligent cloud platform, create more personal computing

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Ten Core Values

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Family Library

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Know Where They Are Going

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Clarity :

• Mission

• Vision

• Shared Values



Live Their Values

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High Performing Firms Live Their Values

Leaders are Responsible for and

Stewards of the Culture



“Leaders must take a role in developing, expressing, and defending civility and values.”

Max De PreeFormer CEO, Herman Miller

• Integrity• Building & Nurturing Relationships• Community Building

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Only 11 of 1435 Companies

Level 4 - Effective Leader:“Catalyzes commitment to and vigorous pursuit of a clear and compelling vision; and stimulates the group to high performance standards”

Level 5 - Executive Leader:“Builds enduring greatness through a paradoxical combination of personal humility plus professional will”


The Five Practices of Exemplary Leadership:

What Leaders “Do”:• Model the Way

• Clarify values• Set the Example

• Personify the Shared Values• Teach Others To Model the

Values


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Ten Truths AboutLeadership:

Truths 2 & 8

• #2: Credibility is Foundation• Honest, Forward-Looking,

Inspiring, Competent

• #8: Either Lead by Example or You Don’t Lead at All

2010




Leaders:"If not you, then who?

If not now, then when?“

Hillel the Elder / 1st Century Religious Leader

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Live Their Values



Focus Externally

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High Performing Firms Focus Externally

Scanning the Horizon

BuildingCommunities

s



Not On Internal Politics & Ineffective Processes

which Drain Resources and Morale

Confidence, Enthusiasm, and Discipline

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Leaders:Remove All Obstacles with a Sense of Urgency!

ASAP!




Focus Externally

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Embrace the TEAM

Individual


High Performing Firms Embrace the Team

Our Cultural History Individualism

• Independent, Unique, Special

• Rewarded Individual Goals over Group

• Value Personal Identity & Achievement

• Competitive

• Less Conformation to Others’ Expectations

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On Being a Team• Choice You Make• Choice for Great Results• No Shortcuts• Heavy Lifting• Uncommon• Huge Advantages

• More Competitive• Better Work• More Profitable• Fun



Leader’s Role

Focus on Collective Outcomes

Confront Difficult Issues

Force Clarity and Closure

Mine & Manage Conflict

Be Vulnerable First

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High Performing FirmsEmbrace the

TEAM

Individual

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Reward the Right Behaviors


High Performing Firms Reward the Right Behaviors

A Fundamental Law of Human Behavior

Reinforced Behavior Gets Repeated!

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You Get What You Reward!



You Get What You Tolerate!

WithholdingInformation

SelfishAgenda

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Reward SystemCompensation

BenefitsPerques

RecognitionAppreciation

PromotionOwnership



What Matters?• Innovation

• Process Improvement

• Shared Values Alignment

• Organizational Improvement

• Team Participation

• Team Leadership

• Leadership

• Mentoring

• Constructive Conflict

• Positive, Supportive Attitude

• Project Success

• Schedules & Budgets

• Change Orders

• Profitability

• Awards & Testimonials

• Specialization

• Business Development

• Competency

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Reward What Matters!

Treat the Cancer!



Generate Internal Energy

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High Performing Firms Generate Internal Energy

Climate for People to Flourish

- to learn, to grow, to shine, to step forward, to challenge and be challenged, to become competent, have fun innovating. Opportunity to lead and belong.

Unique to Each Firm


High Performing FirmsGenerate Internal Energy

Caring about who they arevs

what they can do for you.

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Employees who are able to align their work with their personal and professional goals

are more likely to be satisfied with their jobs, and less likely to be looking for new employment

opportunities.


1. Job Descriptions that provide a foundation of underlying expectations without which conversations around performance; and personal and professional growth cannot take place

2. Continuous performance conversations that drive professional competencies - in real time

3. Coaching and mentoring conversations that drive personal and professional growth –long term

4. Culture-base recruiting that values potential and high EQ skills over technical competencies and high IQ

Embracing A culture of integrated

talent management

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50% of the respondents indicated “Millennials enter the workforce lacking the skills and competencies necessary for success”

And they know it. When asked what they want most on the job, millennials answered… “Mentoring, coaching and training programs”

And their primary reason for leaving? “The perceived lack of opportunity for training and professional growth”

In a 2013 survey of over 600 firms The Institute for Corporate Productivity Found that….


If you make mentoring, coaching and training an integral part of your culture –

You’ll be giving your staff what they want… and need

to become the effective professionals you want… and need them to become

And… they’ll be more motivated and less likely to leave

In a 2013 survey of over 600 firms The Institute for Corporate Productivity Found that….

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David Maister studied 139 professional service firms to determine the correlation of five key performance indicators –with how well their employees thought they practiced what they preached in nine key area of practice

Key Practice Definers1. Quality of Work2. Empowerment3. High Standards4. Long Term Strategic Planning5. Commitment/Enthusiasm/Respect6. Employee Satisfaction7. Coaching8. Fair Compensation9. Training and Development

“Firms that “practice what they preach” consistently outperform those firms that do not

Key Performance Indicators1. Increased gross profit 2. Increased profit margins3. Increased profit per staff4. Growth of firm in staff5. Growth of firm in billing


In the eyes of employees… no area ranked lower in terms of “walking the talk”

Key Performance Indicators1. Increased gross profit 2. Increased profit margins3. Increased profit per staff4. Growth of firm in staff5. Growth of firm in billing

David Maister studied 139 professional service firms to determine the correlation of five key performance indicators –with how well their employees thought they practiced what they preached in nine key area of practice

“Firms that “practice what they preach” consistently outperform those firms that do not

Key Practice Definers1. Quality of Work2. Empowerment3. High Standards4. Long Term Strategic Planning5. Commitment/Enthusiasm/Respect6. Employee Satisfaction7. Coaching8. Fair Compensation9. Training and Development

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Let’s take a minute to digest this… 1. Training and mentoring are highly valued by staff – millennials in

particular

2. The primary reason they leave is a perceived lack of opportunity for training and mentored growth

3. Firms that “practice what they preach” significantly outperform those that don’t

4. In the eyes of our staff… the area most highly desire, is where we are the poorest at “practicing what we preach” –

So why is that?


“Knowing what your company needs to do is relatively obvious: the hard part is actually making it happen.”

We usually know what we should be doing in both our personal and professional life. We also know why we should be doing it and, for the most part how to do it.

Like a fat smoker, figuring all that out is not too difficult. What is very hard is actually doing what you know to be good for you in the long-run, in spite of short-run temptations not to.

- David Maister – Strategy and the Fat Smoker

It’s much easier to find reasons not to do it…• It‘s expensive• It’s not billable• I don’t have time• It takes away focus from my work• We tried and got no traction• We started and got busy – lost focus• We spent a lot of money and got

poor results

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But can you afford not to do it?

Direct cost of turnover: 50-60% of annual salaryIndirect cost of turnover: 40-140% of annual salaryTotal cost of turnover: 90-200% of annual salary

Direct Costs • HR staff time• Management time• Accrued PTO• Temporary coverage• Overtime for remaining staff• Recruitment costs• Hiring inducements• Delta in new hire compensation

Indirect Costs• Delays in production and client service• Decrease in quality of production• Decrease in quality of client maintenance • Reduced morale and contagious departures • Disruption to team-based work• On-boarding time• Formal training of standard and protocols• Socialization – (other employees time) • Productivity costs – getting up to speed


Assume you lose three staff with annual salaries of: $50K, $70K and $90K = $210K

These are the cost you could be looking at… just to get back to square one!

Direct cost of turnover:$50K salary $25K-$30K$70K salary $35K-$42K$90K salary $45K-$81K Total direct costs: $105K-$126K

But can you afford not to do it?

Direct cost of turnover: 50-60% of annual salaryIndirect cost of turnover: 40-140% of annual salaryTotal cost of turnover: 90-200% of annual salary

Indirect cost of turnover:$50K salary $45K-$100K$70K salary $63K-$140K$90K salary $81K-$180K Total Indirect cost: $189K-$420K

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Where’s the best place to invest your resources

in training?

Train your project managers... • Project Profitability• Contract Management • Project Quality and Delivery • Relationship Management• Business Development • Staff Development

To be outstanding people managers… • Staff Development • Project Profitability• Contract Management • Project Quality and Delivery • Relationship Management• Business Development Moving the quality and

effectiveness of your manager’s staff development skills to the top of their performance expectation list


Annual Performance

reviews

A management culture of regular, short, focused performance conversations

Facilitates clarity of expectations

Demonstrates recognition and appreciation for what’s been accomplished

Provides a vehicle for personalized feedback and mentoring next steps

Facilitates “real time” course corrections to align the needs of the individual with that of the firm

Shows a commitment to an employee’s development

Builds strong relationships between staff and manager

Regular one-on-one meetings are the

most common characteristic of

exceptionalmanagers

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Consider the plight of your youngest staff

Here’s a simple, billable, staff development opportunity for every team manager in your organization

• Being part of a team is in their DNA

• They’re typically called on to do small isolated parts of a project

• They’re the ones most likely to be pulled on and off of projects

• They want to know their work is important

• And unfortunately they rarely see the final results of their efforts


• Why the project is important for the client, firm, team and themselves

• What the scope of their work is and where it fits in the big picture

• When their work is to be completed and how much time they have to do it

• How will success be measured by the client, firm, team and themselves

• Who among senior staff they can turn to with questions and for guidance… and make sure the senior staff are aware of their responsibility to respond

Guarantees imporved engagement of your staff and productivity of your teams

Training team managers to ensure at the outset of a project every team member has the facts…..

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Why wait until your best staff are

walking out the door to ask them

why they’re leaving?

Exit Interviews • Limited value

• a guarded but important sampling of how departing staff view your firm’s culture

• Good for tracking information - who’s leaving and why – age, gender, position, team –and making adjustments

• The thoughts expressed by staff are old news – they’ve been sharing them with professional peers and friends long before they made their departure public.

• The best thing to do is treat every exiting employee with respect and good wishes –they’re still talking about your firm after they’ve left


If you really want to know what it would take to make your staff want to stay…. ask them before they leave!

• What do you look forward to when you come to work each day?

• If you could change something about your job, what would it be?

• How do you like to be recognized?

• Which of your talents are not being used in your current role?

• What would you like to have the opportunity to do here?

• What would you like to have the opportunity to learn here?

• What can I do to support you?

• What might tempt you to leave?

Stay Interviews

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Stay Interviews

Sounds a lot like the basis for a good coaching/mentoring conversation

Using appreciative inquiry to learn what makes employees want to keep working for you or to find out why key employees might want to leave –before they leave.

Conduct the interviews at least annually to identify common themes and areas where improvements can be implemented

If you really want to know what it would have taken to make your staff want to stay…. ask them before they leave!

Stay Interviews


MANAGER

Focus Performance

Agenda Specific

Relationship Comes with the job

Source of influence Position

Personal returns Teamwork/performance

Arena of Conversation Job

Performance vs. Coaching Conversations

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Performance vs. Coaching Conversations

MANAGER COACH

Focus Performance Individual/personal

Agenda Specific Facilitated with no agenda

Relationship Comes with the job Self selecting

Source of influence Position Perceived value

Personal returns Teamwork/performance Affirmation/learning

Arena of Conversation Job Career Path and Life

• Different roles in performance vs. personal development

• Require different skills

• Typically not the same people


The best approach to recruitment…

Is a kick-ass approach to retention

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But despite our best intentions…

Ninety-one percent of millennials surveyed expect to stay at a job for less than three years Forbes / Leadership Multiple Generations @ Work” survey

That means they’ll have 15 – 20 jobs over the course of their working lives!


Well maybe not forever – but likely for as long as anyone in this room will be practicing…

• Every great candidate you talk to is qualified to get a job with your competition

• Great people don’t answer ads…

• Everyone in your firm should always, always be thinking about recruiting

• Be mindful of maintaining positive connections with every potential, current and past employee you’ve been in contact with

“Recruiting could be horrible forever”

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It’ll require

• An understanding of the underlying difficulty and enormous cost of replacing or recruiting new staff

• And a rigorous focus of energy and resources to ensure a continuous stream of talented employees, passionately committed to improving themselves and their firms

“It should be the biggest

blip on leadership’s

radar screen”


Articulate what differentiates your firm from you competition, and don’t be shy about selling it

• In the recruitment mode it’s the “soft stuff” that sells

• The same message you use to attract clients will attract staff

• Engagement requires an emotional connection of the right existing staff to the candidate, and the candidate to your firm

• The recruiting/interview process should be intentional, well choreographed and consistent with your culture

“Recruiting is a

marketing issue

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Use your website and social media to celebrate

• Your culture

• Your office and your people

• Your benefits

• Your charitable and community work

• Your mentoring and training programs

Your “talent brand” message should be:

• This is who we are

• This is what we do

• what how we do it

• This what it’s like to work for us

• If that resonates with you, come talk to us - We want to get to know you

“Recruiting is a

marketing issue


Harness the power of social media –

• Most of us are digital immigrants reaching out to digital natives - that goes for our clients as well as potential staff

• Don’t lose the opportunity to connect. If you’re intimidate by social media, -get one of your bright young 28 yr. old do it for you

• Your candidates are checking out your firm on-line, on their phones, while in-line at a movie – and they’re talking to their peers while they’re doing it

• Use videos – Google loves videos

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Recruitment and

retention is not an

“HR Issue”It’s an

“everybody issue”

• Leadership and managers practice what they preach

• Goals and expectations are clearly articulated and understood by everyone

• A wide breadth of opportunity for personal and professional growth exists at all levels

• Performance that meets or exceeds expectations is consistently rewarded

• Performance that does not meet expectation is appropriately and respectfully addressed without hesitation

That succeeds best in a culture where:


#7High Performing FirmsStay Relevant Through

Change

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Will

High Performing FirmsStay Relevant Through Change

William “Bill” Jeffries


OLD Culture New Culture Discussion

Avoid Risk

Focus = Not Failing

Hesitancy (Checking)

Information Orientation

File Information

Individual Agenda

OBTRUSIVE Hierarchy

Control

Internal Competition

Use Knowledge

Directed

Individual Values

Accept Differences

Culture Inventory / Tactical Changes

Executive Strategies International, Inc.High Performing FirmsStay Relevant Through Change

Dialogue

Reward Risk

Focus = Succeeding

Openness & Trust

Process Orientation

Share Information

TEAM Agenda

TRANSPARENT Hierarchy

Involvement

External Competition

Apply Learnings

Empowered

Common Values

Value DiVersIty

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Culture Inventory / Tactical Changes

Executive Strategies International, Inc.High Performing FirmsStay Relevant Through Change


Change!


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Skeptical?

Anxiety?Hide?




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Changehappens when the pain of holding on becomes greater than the fear of letting go.

Spencer Johnson



Change

“People do not resist change – people change all of the time. What people resist is having others impose change on them.”

Margaret Wheatley


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For Decision Makers:Intentional Change• Are a conscious, considered decision• Are timely• Solve problems• Provide new opportunities

For Those who Implement:Imposed Change• Seem arbitrary and out of control• Seem sudden, abrupt• Create problems• Disrupt routines and procedure



High Performing Firms Stay Relevant Through Change

Change Curve

Losses &Endings

NeutralZone

New Beginnings

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The First Responsibility of a Leader is to Define Reality

Max DePree



High Performing FirmsStay Relevant by Changing

Leaders must:

• Constantly Scan & Listen

• Consider Optional Approaches

• Evaluate - Inclusive Discussion

• Understand Impacts to People

• Courageously Act

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Communication

Scan / Listen

UnderstandImpacts

InclusiveEvaluation

Consider Options

ACT!

High Performing FirmsStay Relevant by Changing


High Performing Firms Stay Relevant Through Change

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Personality of Organizations

Organizational Character Index

• 36 Question Assessment

• Results Parallel 16 Personality Types / MBTI

• Helps Explain ∆ Between Organizations and Elements of Same Organizations

• Helps Organizations• Deal with Change• Maximize Effectiveness

l




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High Performing Firm

A group of Emotionally Intelligent

people who choose to direct their

individual abilities and talents to

work together on the basis of

shared values toward a common

vision in order to achieve

uncommon organizational results.William C. Jefferies


Culture Keys Summary

1. Know Where You Are Going

2. Live Your Values

3. Reward The Right Stuff

4. Stay Relevant

5. Be A Great Place To Work

High Performing Firms Culture Keys

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Culture? Who’s Job Is It?

LeaderLeader

Leader


“With One Minor Exception, the Entire World is Made Up of Others.”

John Maxwell

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YourFirm Culture

Matters!

Make a Difference!

RSP Designthatworks.Ruehl +

Nick Ruehl, AIA, Ruehl + Associates 612-889-2851 / [email protected]

Documents

Firm Culture Presentation - AIA - 11-13-2015 - Final Presentation...2015/11/13 · 11/13/2015 1 Firm Culture RSPDesign that works. Ruehl + Firm Culture: Yes, It Really Matters! Program