KEEPING YOUR COMPETITIVE ADVANTAGE
Make or Break CultureTM
Dan BarnettCEO/ Owner, The Primavera CompanyInternational Speaker/ ConsultantChair, Vistage Advisory BoardsCell: 775.843.0517Email: [email protected] [email protected]: @DCBarnett Website: www.makeorbreakexecution.com
Chair Excellence AwardVistage International 2015
The 500 ClubVistage International 2014
Overseas Speaker of the Year TEC Australia 2011- 2012
Fast Track Speaker of the YearVistage International 2010
U. S. Speaker of the YearTEC Canada 2009
We hire human beings
Beliefs
Behaviours
Results
CultureLimbic
NeoCortex
THE RESULT
What is Your Culture?Beliefs
Mission
Vision
BehaviourValues
Activity
Rituals
Leadership Perspective
Review
CultureAssumptions, beliefs, values, customs and
behaviours of an organisations employees,
supervisors and leaders.
Culture
“The way we do things around here.”
Enron had a Values StatementFirst item on the list was “Integrity”
The only real value at Enron was “20% growth every year and we don’t care how you get it”.
Culture is Not a Values Statement
The actual company valuesas opposed to the
nice sounding values in your statement are shown by
who gets rewarded, promoted, hired or let go
Private Label Market Share6
8
10
12
14
16
18
Gross Margin $
41% Increase
45% Increase
WeyerhaeuserHow much should you invest in Culture?
Culture: Quality
Culture Is not “soft” It is about Performance It takes Performance to a Higher Level
Defines “high performers” who also
do things “the right way”
Pillsbury: Van de Kamp’sCulture Delivers What Customers Want - Hire for Culture First
Culture: Freshness The Tribe
1981 19870%
5%
10%
15%
20%
25%
30%28%
20%
11%
22%
Market Share
Mrs. Paul's
Van de Kamp's Frozen Fish
Year 1 Year 6
What is Your Culture?All Good Performance Starts with Clear Direction
Mission: (External Focus – Broadcast to the World – Your Customers Want It)
Inspires your people to do their personal best. What mountain do we want to climb? More than a business case. It is what we stand for.
Vision: (Internal Focus – The future - for your people) Describes the future Start with your people – they create your success
- Clear and Specific – Measurable
What is Your Culture?
Mission (Inspires your people, your customers want it -
broadcast to the world): ___________________________________________________________________________________________________________________________________________________
Vision (Describes your future to your people - internal): ___________________________________________________________________________________________________________________________________________________
What is Your Culture?Beliefs
Mission
Vision
BehaviourValues
Activity
Rituals
Leadership Perspective
Dan’s Creed Treat people the way
you want to be treated Make the Numbers Have Fun
63
172
0
20
40
60
80
100
120
140
160
180
1991 1994
Sales (Millions)
Juicy Juice
Sales (Millions)
Nestlé : Juicy JuiceGet Everyone on Board : Lead It Yourself
Year 1 Year 3
What are Your Values?
Values:
1. _________________________________
2. _________________________________
3. _________________________________
4. _________________________________
5. _________________________________
It is not “soft” Rank Order Your Values
Include something like: Make the Numbers, Sustainable Results, Do More with Less
Vistage Membership, 1957 - Present
13,011
12,173
10,700
9,201
6,440
7,508
4,369
2,174
49026815050
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1957 - 1997 4,000 Members in 40 Years
2003 - 2006 4,000 Members in 3 Years
1997 - 2003 4,000 Members in 5 Years
14,400
2008
Vistage: Convert Values to BehavioursValues: 1. Trust 2. Growth 3. Challenge 4. Caring
(Added “Hard Work” and “Fresh Thinking”)
Convert Values to Behaviour
Value: _____________________________
Behaviours: (List several behaviours that you want to see around that value)
1. _________________________________
2. _________________________________
3. _________________________________
4. _________________________________
Repeat for Each Value
Culture Rituals
Consistent Behaviours Do something 100 times and it becomes
embedded in you. 10,000 times and you are a master
Create Rituals that focus your people on certain behaviours consistently.
Daily huddles Repeat a Value before Every Meeting Weekly reviews Book-club Monthly all-hands meeting
Create a Ritual for Your Core Behaviours
Core Behaviour ____________________
Ritual (Repeat for all core behaviours)
_________________________________
_________________________________
It Takes 10,000 Repetitions to Master Something
Culture
Language A common language creates a sense of
belonging “Mistakes” versus “Learning Moment” “Tribe” versus “Company” “Juiceville” versus the “Juice Division” “Maniacs” versus “Committed” “Warrior’s Spirit”, “Servant's Heart”, “Fun-Luving
Attitude”
Culture Leadership Perspective
What do you stand for as a leader
Mine Do what you say you will - Integrity Listen to and respect others Try new things – courage Learn from your mistakes Treat others the way you want to be treated Make the numbers Work hard Have fun
What is Your Leadership Perspective?
Leadership Perspective: (What you stand for as a leader)
1. _________________________________
2. _________________________________
3. _________________________________
Develop these with your leaders
- - -
10. ______________________________________
Culture – get extraordinary results from people
Define your Culture Lead the Culture yourself
Reinforce every day Not soft – people get recognized, rewarded, promoted or let go
Invest in your Culture
Extraordinary Culture Customers Want It – competitive advantage Hire for culture first Performance Reviews/ Bonuses – accountability and recognition Language – sense of belonging Rituals – Consistent Behaviors Leadership Perspective – consistent leadership