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2015 ON THE MARK | www.on-the-mark.com Driving Dolby’s New Approach to Performance and Development© 2015 Dolby Laboratories, Inc.

This presentation contains intellectual property of both ON THE MARK and Dolby Laboratories

Welcome: Driving Dolby’s New Approach to Performance and Development

April 2015

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Webinar Overview

Driving Dolby’s New Approach to Performance and Development

1. About the Presenters2. Why Change…3. Curiosity, Considerations and Research4. The program (What)5. The Amplify Journey (How, Change Process)6. Results and Wisdoms

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About the Presenters

1. About Mark LaScola2. About ON THE MARK3. About Anna Schocket4. About Dolby Laboratories

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With a Bachelor of Arts in Psychology from Fresno State University (1980) and an interdisciplinary Master of Science in Marriage and Family Therapy from San Jose State University (1985) - where his work focused on systems theory and its application to human systems and processes - Mark founded OTM in 1990. Now in its 25th year of operation and with OTM offices located on both sides of the Atlantic, OTM is recognized by many as their preferred vendor in providing substantive yet practical organization design and lasting change.

Mark’s passion for “collaborative business transformation”, as he calls it, sits at the heart of OTM and supports a belief in people, holistic thinking and pragmatism. Mark shares his experience and supports the wider industry through regular publication of best practices and is the author of one of the industry’s most integrated and comprehensive re-design / transformation methodologies. Mark also sits on the Boards of the European Organization Design Forum and the Organization Design Community, and regularly speaks at industry events. Significant publications include his contribution to one of the top ten business books of the 1998 (NY Times) entitled The Self-Managing Organization: How Leading Companies are Transforming the Work of Teams for Real Impact, Purser and Cabana, New York, NY, The Free Press, 1998; and HR specific articles including A Critical Review of the Three-Box Model for HR Organization Design, LaScola and Davies, WorldatWork Journal, Version Q1 2011, and Get the Foundation Right: Transforming HR, LaScola, HR Magazine Aug 2011.

When not on a plane or watching a real football (soccer) match, he’s at home with his family in Phoenix, Arizona.

Mark LaScolaFounder & Managing Principal – ON THE MARK

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About OTM


Sectors Functions GeographyAerospaceDefenceLogistics & DistributionFinancial ServicesTelecommunicationsFMCGIT Software & ServicesManufacturingRetail

Human ResourcesSupply ChainManufacturingOperationsFinance, ITRegulatorySales, MarketingEngineeringOutsourcing – BPOSkunk works

North AmericaWestern EuropeScandinaviaEastern EuropeLatin AmericaMiddle EastSouth East AsiaSouth Pacific

We are leaders in collaborative organization design and business transformation. Now in our 25th year of operation, with offices located on both sides of the Atlantic, OTM is recognized by many as their preferred vendor in providing substantive yet practical organization design and lasting change. Our passion is for collaborative business transformation and our work is guided by research, evidenced-based and established best practice and emerging methodology.

Other OTM Offerings:

OTM offers a variety of other services supporting organization design and business transformation solutions including a) in-house Executive Primers, b) internal or external multi-day, hands-on skill building workshops using real projects, c) behind the scenes support and guidance, d) conference presentations and TED Talks. For more information, references or case studies contact Pamela Edmond, OTM Global Marketing Director at [email protected].

Our Experience:

With our experience of delivering close to 370 organization design and transformation projects, across 30 countries and countless industry sectors, OTM offers the most disciplined, integrated and comprehensive re-design and transformation solution. trained and developed approximately 5,000 executives, managers and internal change agents – across a broad and diverse range of industries on 6 continents and over 30 countries on OTM’s comprehensive solutions.

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Anna Schock etDirector, Organizational Effectiveness and Talent Developm ent


Anna is an experienced organizational effectiveness leader who has designed and implemented numerous HR programs and organizational changes to reinforce business and cultural imperatives. Her work has spanned global organizations ranging in size from 700 to 120,000 employees.

At Dolby, Anna is responsible for driving key programs and initiatives in the areas of learning, leadership development, performance management, talent planning, culture and inclusion. Not only does Anna have an expertise in the more programmatic areas of HR, but she has also designed strategies to manage organizational change. Prior to Dolby, she held similar positions at Shutterfly and Disney. Anna began her career at Deloitte as a human capital consultant in both the US and UK. Anna holds an MBA from the University of Michigan and a BS from NorthwesternUniversity.

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"To be an inventor, you have to be willing to live with a sense of uncertainty, to work in this

darkness and grope towards an answer, to put up with anxiety about whether there is an answer.”

- Ray Dolby

1,800 employees in over 36 cities and 20 countries…

$950M~50 years

DeviceLicensing

ProfessionalProducts

Audio

The evolution of our business

Imaging Communications

End UserProducts

Value AddedServices

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Why Change…

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Why change the way we manage performance?

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_

Jessica Smith

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Eric Acevedo

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Paul Chan

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/ 4/

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30,000+ hours

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Business Case for Change

Why Change?

One Dimensional Business Case

Multi-dimensional Business Case Should Also Include:

Culture

Growth/Realignment Customer Satisfaction

Finance Focused

• Relevance and Meaning

• Making a Difference• Connection to the

purpose of the business and contribution to the world

• Desirable Future (refer to the six critical requirements of effective work)

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NOT ALL CHANGE IS THE SAME…

Why Change?

DEVELOPMENTALAn improvement to an existing way of operating

TRANSITIONALDesign and implementation of something different from what exists today

TRANSFORMATIONALA fundamental shift from one state of being to another, so significant that it requires a shift in culture and behavior to sustain it.

transformation [trans-fer-mey-shun] - n1. a change or alteration, especially a radical one

change [chaynj] - n1. making or becoming different: alteration, variation, or modification, or the result of this

Source: Three Types of ChangeAckerman & Anderson. The Change Leader’s Roadmap. Jossey-Bass, 2001. Further adapted by OTM.

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Curiosity, Considerations and Research

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Are we spending time on the right

things?

Are we actually motivating high performance?

Are we helping people do their

best work?

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What really motivates creative thinking and problem solving?• Autonomy

• Mastery

• Purpose

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What motivates Dolby employees to do their best work?

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What can we learn from recent breakthroughs in neuroscience and psychology?

• Growth mindset

• Conditions for insight

• “Threat” vs “toward” state (SCARF)

• Coaching orientation

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Your Brain at Work …


PsychologyHuman Mind +

behavior

Neuroscience Brain Physiology

The brain’s role in human nature and

behavior

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Your Brain at Work


1 2 3

Skill Long Term Memory

new behavior

Effort = Energy

Repetition

Temporary storage with limited capacity

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“Nothing changes until behavior

changes”“Patterns die hard”

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Unclear thinking

The Brain at Work

Why Change?

1. Perception of Social Pain 2. Observation of Social Fairness & Respect

3. Stress

4. Uncertainty 5. Employees +… 6. Engaging & Active Participation

• Rejection• Shaming• Embarrassment• Berated• Unfairness/

disrespect

= Chemical

boost

Fear OwnershipIncreased

retention of new behavior

=

=

Unclear thinking

Ownership over situations and choice…

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Any Questions

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The program (What)

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Our new approach… Amplify

And continue to differentiate rewards…

Drive higher-quality, more motivational

conversations

Increase overall return on time / effort invested

Empower employees to

play a larger role in the process

Three objectives

Drive higher-quality, more motivational

conversations

Amplify:

• Two structured conversations

• No numerical ratings

• Mostly forward-looking

• Growth, work environment always on agenda

Higher quality conversations

Previously:

• One conversation / year

• Based on numerical rating

• Mostly backward-looking

• Growth optional / infrequent

Empower employees to

play a larger role in the process

Larger role for employees

Previously:

• Managers drove the process

• One-way “tell” conversation

• Managers completed all documentation

Amplify:

• More balanced ownership

• Two-way dialogue led by the employee

• Manager is coach

• Employees take first pass at capturing key outcomes

Increase overall return on time / effort invested

Increase ROI

Previously:

• Paper-based, de-centralized

• Time consuming, formulaic documents

• Leaders “calibrated” ratings to fit into curve

Amplify:

• Online system for goals, conversation summaries

• Capture main points and commitments only

• Leaders proactively focus on talent and succession planning

Goal Planning ImpactConversation

GrowthConversation

Rewards Communication

Q4 Q1

Q3 Q2

AMPLIFY

The Amplify Program

Growth / Impact Conversation Agenda

Growth ImpactWork

Environment

• Critical skills needed for success in your role

• Talents you want to leverage

• Development needs you want to address

• Growth opportunities / interests you would like to pursue at Dolby

• Your top work priorities• Progress and status of

goals• Impact of your work (key

accomplishments and challenges)

• Lessons learned

• Work environment elements that are working well

• Work environment elements that if changed could help enable your best work

Exceptional Rewards Core Rewards (Majority of employees)

Partial Rewards

Impact & ContributionLOW HIGH

Continue to differentiate rewards


Any Questions

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The Amplify Journey (How, Change Process)

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And measure / refine over time…

Heavy Socialization

Building New Muscle Memory

Beta Testing

Keys to the Amplify journey

Heavy Socialization


• Get smarter

• Design for ownership

• Socialize early and flex

Beta Testing


• Test with hardest critics and biggest evangelists

• Measure and clarify

• Be open to missteps and adjust



• Elevate awareness

• Build Skills

• Ongoing reinforcement

And measure / refine over time…


What type of change was the Amplify program?


DEVELOPMENTALAn improvement to an existing way of operating

TRANSITIONALDesign and implementation of something different from what exists today

TRANSFORMATIONALA fundamental shift from one state of being to another, so significant that it requires a shift in culture and behavior to sustain it.

Source: Three Types of ChangeAckerman & Anderson. The Change Leader’s Roadmap. Jossey-Bass, 2001. Further adapted by OTM.

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Change Management vs. Change Readiness


OTM’s Accelerated Change Readiness© (ACR)

Treats the business as a system, holistic

Horizontal sponsorship

Driven by social system readiness (ACR) with milestoneachievement occurring simultaneously

'Pull' Orientation (commitment)

Joint optimization

Produces ‘White space‘

High engagement, highly relevant

Compatible with espoused organizational values

Proactive

Tactics driven by high involvement from start to finish

Traditional Change Management

Treats the organisation as a machine, fragmented

Functional sponsorship

Driven by traditional project management

'Push' orientation (compliance)

Sub-optimization

Over-designed

Pseudo-engagement – "Buy-in"

Incompatible with espoused organisation Values

Reactive, after the fact

Tactics mostly include training and communication

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ACR alignment with brain science


Treats the business as a system, holistic

Horizontal sponsorship

Driven by social system readiness (ACR) with milestoneachievement occurring simultaneously

'Pull' Orientation (commitment)

Joint optimization

Produces ‘White space‘

High engagement, highly relevant

Compatible with espoused organizational values

Proactive

Tactics driven by high involvement from start to finish

1. Observed social fairness and respect

2. Inclusion, asking

3. Clarity of process and method

4. Removed uncertainty where possible

5. High involvement in problem solving and decision making

6. “People support what they help create…” – ownership“Self-directed neuroplasticity”

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Pay Now vs. Pay Later Approach to Change


Time

Eff

ortIncreased/Saved

Work Burden

Later Completion Time +

Faster Completion

PullMore Work upfront in Planning

and creating Readiness

PushVirtually no work put

into creating Readiness or

Planning

• Problems Occur• Resistance Met• Slippage

• program Goes to Plan• No Resistance Met• Stabilisation Earlier

Time Lost/Gained

Heavy Socialization


Beta Testing

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Pull

Depth of Change Model


PREPARATION ACCEPTANCE COMMITTMENT

BeginIm plementation• Adopt• Institutionalise • Internalise• Stabil ise

• Understand Change

• Positive Perception

• Contact

• Awareness of Change

Readiness!

Tell

Do

Source: Ackerman & Anderson, The Change Leader’s Roadmap, Jossey-Bass, 2001

Heavy Socialization


Beta Testing

Push

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Business case for involving others in the change…


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ACR Methodology – Tak e a Deliberate, P lanned Process


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Any Questions

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Results and Wisdoms

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40% of employees and

50% of managers had higher quality

year-end conversations

90% believe the overall process has moderate to

strong ROI

Over half of employees said mid-

year Growth Conversations were better than previous discussions about

growth91%

discussed growth as part

of the year-end discussion

Feedback on Amplify

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“I used to hate reviews; I used

to see the number and tune out the rest. This

year I’ll remember my

manager looking me in the eye

and saying that I did a good job.”

“Previously it was 90% looking back – now it’s 80% looking

forward.”

“What was important

became defined by the

conversation, not the piece of

paper.”

“Employees came to insights

themselves –when it was a

“tell” conversation you didn’t get much feedback. Now the insights are

coming from them.”

“As a manager, I spent

significantly less time on the year-end process and still got the same

or even more than in years

past.”

Feedback on Amplify

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Wisdoms

• The courage to innovate and challenge the status quo

• Apply science to support the change process

• Design the right process for the company and bring people on the journey

• It can impact the culture, how people interact


OTM Com m on Results Footprint

Results and Wisdoms

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Suggested Reading List on Brain Science

• “The Neuroscience of Leadership” by David Rock and Jeffrey Schwartz published in Strategy and Business, Issue 43, 2006

• “Managing with the Brain in Mind” by David Rock published in Strategy + Business issue 56, Autumn 2009

• “One simple idea to transform performance” by David Rock, Josh Davis and Elizabeth Jones (HRPS) Volume 36 / Issue 2 – 2013

• “The SCARF Model” in 2012 Neuroleadership Journal• “The Aha Moment” in the ASTD Journal (uncertain of the date)• The Brain at Work for Adrienne Fox, HR Magazine vol. 53 no. 3,

March 2008• Manage Your Human Sigma, John H. Fleming, Curt Coffman and

James K. Harter

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Any Questions

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Thank s for joining us!

In 1 word please describe the webinar?

Validating

Priceless

Relational

Neuroscience

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We would love to hear from you!

Results and Wisdoms

Mark LaScolaFounder & Managing Principal – ON THE MARK

Anna Schock etDirector, Organizational Effectiveness and

Talent Development Email: [email protected]: +1 (602) 284 8090Website: www.on-the-mark.comEmail: [email protected]

OTM offers a variety of other services supporting organization design and business transformation solutions. For more information, references or case studies contact Pamela Edmond, OTM Global Marketing Director at [email protected].

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mailto:[email protected]

http://www.on-the-mark.com/

mailto:[email protected]

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Welcome: Driving Dolby’s New Approach to ... - OTM · PDF filethrough regular publication of best practices and is the author ... OTM offers a variety of other ... Driving Dolby’s