Building A Winning Culture

RESULTS.com & John Spence

A few of my clients:

What does this mean to me?

How can I use this idea?

What can I do right away?

Reality CheckKnowing – Doing

1 -10

The level of highly satisfied and engaged EMPLOYEES in your business.

The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in your business is…

Fully Engaged Customers deliver a

23% premium over the average customer in terms of share of wallet, profitability, revenue,

and relationship growth.Harvard Business Review: Manage Your Human Sigma

Job + Organizational Engagement = Employee Engagement

Not Engaged Engaged

En

gag

ed

Not

En

gag

ed

Job Engagement

Org

an

izat

ion

al E

nga

gem

en

t

50%

9%

Benchwarmers

7%

Free Agents

34%

Stars

Disengaged

50%

Actively Disengaged Employees…

22%In TOTAL Revenues!

Customer satisfaction drives customer loyalty… and customer loyalty drives profitability

100%

90

80

70

60

50

40

30

20

Extremely Dissatisfie

d

SomewhatDissatisfie

d

SlightlyDissatisfie

dSatisfied

Very Satisfied

Zone of Defection

Zone of Indifferenc

e

Zone of Affection

Loyalt

y

Customer Satisfaction

Terrorist

Evangelist

A 5% increase in loyalty among your best customers…

Can produce a profit increase of 25% – 85%

I hate you

I don’t care about you

I love you

Key Drivers of Customer Satisfaction and Loyalty

Financial Performance

Quality P&S&

Customer Relationship

EmployeeSatisfaction

Empowerment High Standards

Long-termOrientation

Enthusiasm, Commitment,

Respect

Training &Development

Fair Compensatio

n

CR= 104.12% increase in profits

CR= .404

CR=.334

CR=.277

CR=.275CR=.249

CR=.280 Coaching

CR=.285

CR=.371

CR=.365

CR=.191

CR=.247

TolerateNothing

Less

From: Practice What You Preach by Maister

Global study:16 countries529 companies15,589 respondents

Highly satisfied and engaged employees can drive as much as a 189% increase in profitability!

Culture = Cash

The Pattern of Business Success

(T + C + ECF) x DE = Success

Key attributes of winning cultures

• High aspirations and a desire to win

• External focus

• A “think like owners” attitude

• Bias to action

• Individuals who team

• Passion and energy

Bain & Company

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From the Employee’s Perspective:

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Focus me

Know me

Care about me

Hear me

Help me feel proud

Equip me

Help me see my value

Help me grow

Help me see my importance

Compassion = SBA

The Six Universal Drivers of Engagement

1. Caring, competent, and engaging senior leaders.

2. Effective managers who keep employees aligned and engaged.

3. Effective teamwork at ALL levels.

4. Job enrichment and professional growth.

5. Valuing employee Contributions.

6. Concern for employee well being.

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What do engaged employees look like?

1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization. 1 - 10

The Five Steps to Implementing a Winning Culture

1. Preform a culture audit and set new expectations.

2. Align the management team.3. Focus on RESULTS and build accountability.4. Manage the drivers of culture.5. Communicate and celebrate.

Study of most important leadership skills7,000+ managers from 1,600 large organizations

• Must have superb communication skills.

• Lead by example to demonstrate character and competence.

• Establish and maintain clear and meaningful vision.

• Provide motivation to create ownership and accountability for results.

• Clarify performance expectations.

• Foster teamwork and collaboration.

• Develop clear performance goals and metrics.

• Consistently deliver superior results.

From: Getting Results by Longenecker and Simoneti

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5

Clear Expectations

Ground Rules for a Professional Organization

• Staff agrees to be managed and coached to strictly enforced standards of performance and quality work.

• Teamwork is mandatory, not optional.• Excellence in customer satisfaction is an enforced standard.• Personal and professional growth is a nonnegotiable minimum

standard.• All team members must show a sincere interest in the customer

and a sincere desire to help them.• The primary focus must be on delivering quality work and

building strong customer relationships.• Demand excellence and refuse to tolerate mediocrity.

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Let’s take a look at an example of a company that has taken these standards of professionalism and codified them into a set of values that drives their business.

As you read the following GE leadership values…

• Are passionately focused on driving customer success.

• Live Six Sigma quality, ensuring that the customer is always its first beneficiary, and using that concept to accelerate growth.

• Insist on excellence, and are intolerant of mediocrity or bureaucracy.

• Act in a boundaryless fashion, always searching for and applying the very best ideas regardless of origin.

• See change for the positive growth opportunities it brings.

• Create a clear, simple, customer-centered vision, and continually renew and refresh its execution.

• Create an environment that stretches excitement, informality and trust; rewards improvements; and celebrates results.

• Demonstrate—always with infectious enthusiasm for the customer—the “Four E’s” of GE leadership: the personal Energy to welcome and deal with the speed of change; the ability to create an atmosphere that Energizes others; the Edge to make the difficult decisions; and the ability to consistently Execute…

GE leaders, always with unyielding integrity:

(T + C + ECF) x DE

= Success

10 – 15 %

What Inhibits Execution? Survey of 4,000 Senior Executives

4. Inability to work together (21%)

3. Company culture (23%)

2. Economic climate (29%)

1. Holding onto the past / unwillingness to CHANGE (35%)

In other words…

• In order to succeed you need a high-performance team that embraces a strong culture of disciplined execution and accountability while being nimble, agile and adaptable to changes in the marketplace.

Where are we going + how will we behave on the way?

FocusDifferentiation“No”

Stakeholders + guiding collation

Vision + ValuesStrategyPlansGoals / ObjectivesTactics / Actions

Procedures / ProtocolsRepeatable Process

Clear / consistent / relentless @ Execution

Training +time / money /

supplies / people

Measure Track & PostTransparency

Renewal

Praise + Celebration Eliminate Mediocrity

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Culture = CASH

Leadership and the New Normal• One day only! • Thursday 15 March 2012• Ellerslie Events Centre• To register go to: www.results.com/john-spence• Or call 09 573 5582 **** Early Bird closes December 16th ****

If you have any questions at all please do not hesitate to send a note or call. My email address is: john@johnspence.com

My twitter address is: @awesomelysimplePlease feel free to “friend” me on FB

Also, you might find value in the ideas I share in my blog. You can sign up for it at:www.blog.johnspence.com

Lastly, these slides have already been uploaded to:

www.slideshare.net/johnspence

Thank You

Leadership and the New Normal• One day only! • Thursday 15 March 2012• Ellerslie Events Centre• To register go to: www.results.com/john-spence• Or call 09 573 5582 **** Early Bird closes December 16th ****