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•Steve Jobs book discussion led by John Gosney on Tuesdays at 11 a.m. beginning March 3Register online at tinyurl.com/jobsbookclub

• TED Talk Series, next topic with Maggie Ricci in early April

•Joy, Inc. book discussion led by Julie Thatcher this summer

•2015 Mor Leaders Conference in Indianapolis, May 27-28

Check out the ITLC web site for more information: ww.iu.edu/~itlc

Timothy Baldwin, Ph.D.

Building Winning Cultures

ITLC Speaker Series

Timothy Baldwin February 18, 2015

IT Community – Winning Cultures

Session Agenda / Goals

• Recognize the importance of culture to high-performing organizations

• Introduce a little customer-centric behavioral science

Disciplines Of Winning Cultures

• Challenge you to be a Positive Force – Not a Victim

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My Influences: Personal

Dr. Peter Baldwin (Veterinarian & President of the Quincy Rotary Club)

•Small town but not small minds •Intellectually curious but Supremely pragmatic

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My Universal Approach

• You win with People & Positivity. In organizations, in social settings, in life.

• There are a lot of misconceptions and much nonsense out there – we need to be better “bullfighters.”

• Customer-centric science. Good science exists and it can greatly improve practice. Often just needs a little translation.

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Three Key Ground Rules for Today

•The right people are here. You need not be a manager top leader or guru to impact culture •There is a big “Knowing – Doing” gap. Successful cultures are more about doing than knowing. There is no knowledge advantage without an action advantage.

•Little actions can have big impact -- YOU can make a difference – you really can

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Looking for Business Success In the Right Places: A Quick Case Challenge

Background: Steak N Shake Restaurants , Inc. recently completed an in-depth study comparing their stores that rank in the top quartile in sales and profitability and those stores that rank in the bottom quartile.

• Was there a big difference in financial performance across stores in those

quadrants?

• What typical business success practices (e.g., marketing, operations) are NOT different across stores?

• What consistent predictors or indicators of high financial performance did they find?

• If you were just named the manager of your own store, what actions would you take? What would be your strategy for success?

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Steak N Shake LessonsWhat DID differentiate the stores with high

performance?

(1)High customer service – measured by external raters

(2)High employee engagement – measured by low turnover and surveys

(3)Store leader effectiveness (drives the first two)

So what is the secret sauce of these leaders?

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The Not Very Secret Sauce of Exceptional People-First Cultures: AMP it up

“…Motivation is not something you do to people. It is something you discover about people…”

Autonomy•Self-Direction, Choice, Voice, Transparency of Info

Mastery •Chance to grow & get better, Working with winners

Purpose •Greater meaning to what we do•Belonging to something, recognized, noticed

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“People Are Our Most Important Asset” The Great Leadership Self-Deception “If people are our most valuable asset, I say we sell them.”

Jerry Seinfeld “I like the concept of people, but people ruin it” Daman Wayans • Typical Performance Problems (e.g. low profit, high costs, lousy customer service, low stock price) • Lead to: Organizational Response (e.g., reduce training, layoffs, salary freeze, contract labor) • Lead to: Individual Response (e.g., decreased motivation, higher turnover, reduced

job focus, reduced satisfaction)

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Best Companies to Work For Outperform the Market

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Culture Really Does Matter

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Why Does Culture Matter?

Because engaged people: • Work harder• Work smarter• Perform more citizenship behaviors• Leave less / Attract other high performers • Manage the way they were managed • Are more likely to innovate

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The Seven “People-First Disciplines” That Matter Most To Culture 1. Selective hiring (Obsess over selection)2.Commitment to Talent Development (Means more than training)3.Decentralized decision-making (What can you delegate?)4.Fair pay & some performance-based (Don’t need to be highest -- but hard to win exploiting) 5.Reduced status barriers (Equity perceptions are powerful & innate)6. Extensive sharing of information – “Line of Sight” performance literacy is key -- but often lacking7. Employment security – Is there a future for me here?

One Example of the Knowing-Doing Gap in Implementing People-First Cultures

Rank Order of Validity of Selection Methods

1. Work Sample

2. Aptitude Testing

3. Structured Interview

4. Bio-Data

5. Personality Assessment

6. Reference Checks

7. Unstructured Interview

8. Physical Attractiveness

9. Graphology

10. Flip of A Coin

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A Final Charge

“…Never believe that a few caring people can not change the world. For, indeed, that’s all who ever have.”

-- Margaret Mead

“…Success does not occur through spontaneous combustion, you have to set yourself on fire….” -- Anonymous