The Denison Model

Adaptability Pattern..Trends..Market

Translating the demands of the

business environment into action

“Are we listeningto the marketplace?”

MissionDirection..Purpose..Blueprint

Defining a meaningful long-term direction

for the Company

“Do we know where we are going?”

InvolvementCommitment ... Ownership …

Responsibility

Building human capability, ownership, and responsibility

“Are our people aligned

and engaged?“

ConsistencySystems… Structures…

Processes

Defining the valuesand systems that are the basis of a strong culture

“Does our system create leverage?”

What Counts…

High Performing organizations have a Mission that tells

employees WHY they are doing the work they do, and how the

work they do each day contributes to the WHY.

Vision is the ultimate reason you are in business – what you

are ultimately trying to achieve. Strategic Direction

refers to the 2 - 3 year strategies – high priorities

established to ‘operationalize’ the vision.

Goals and Objectives are the short-term, specific goals

established that help every employee see how his/her work

connects to the vision & the strategy.

1-7

Mission

All high-performing companies do some things Consistently well.

Specifically, they have a clear set of Core Values that help

employees and leaders make decisions and set priorities.

By engaging in dialogue and getting multiple perspectives on the table they are able to reach

Agreement when difficult issues and problems arise.

Employees understand how the work that they do impacts others –

and how other’s work impacts them. They do not just ‘throw

things over the fence’. They make sure that work is Coordinated and Integrated to serve the

organization as a whole.

1-8

Consistency

High performing organizations encourage and support employee

Involvement.

They clarify those areas where employees can make decisions, have input, or those areas that

are beyond an employee’s scope of responsibility. This promotes

‘informed’ Empowerment.

Teamwork is encouraged so that creative ideas are captured and employees support one another in accomplishing the work that

needs to get done.

Capability Development is practiced in a variety of ways,

including training, coaching, and giving employees exposure to

new roles and responsibilities. 1-9

Involvement

High performing organizations are Adaptive – they look for new and

better ways to do their work.

They welcome new ideas and are willing to try new approaches to doing things. They see Creating

Change as an important part of the way they do business.

Consumer Focus is critical. Employees recognize that they are in

business to serve their customer – both internal & external. They continually look for new and

improved ways to meet and exceed customer expectations.

‘Calculated’ risk taking is encouraged. Organizational

Learning means we gain knowledge from successes and failures.

1-10

Adaptability

Flexible and Stable

FlexibleAdaptability + Involvement

A flexible organization has the capability to change in response to the environment

StableMission + Consistency

A stable orientation contributes to an organization’s capability to remain focused and predictable over time

External Focus and Internal Focus

External Focus:Adaptability + Mission

The organization’s focus is on adapting and changing in response to the external environment

Internal Focus:Involvement + Consistency

The organization’s focus is on the dynamics of the internal integration of systems, structures, and processes

Dynamic Tension:

High performance organizations learn how to link the purpose, direction, and goals of the organization (top - down) to a shared sense of responsibility, ownership and commitment with all employees(bottom - up).

Employees understand the relationship between their individual goals and the organization’s goals and are highly motivated to contribute.

Bottom Up

Top Dow

n

Dynamic Tension:

Successful organizations learn how to cope with the dual problems of external adaptation (stimulate progress) and internal integration (preserve the core).

It is not an either/or proposition - high performance organizations must be able to do both at the same time.

Stim

ulat

e Pr

ogre

ss!

Pres

erve

the

Core!

Culture Links to Performance

Innovation &Customer

Satisfaction

StablePerformance

Over TimeProfitability

ROI, ROE

Operating PerformanceQuality

Employee Satisfaction

Growth