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CreatingaHighPerformanceCulture July30 2009 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 2 Agenda CultureandItsImpactDefiningHighPerformanceCultureCreatingaHighPerformanceCultureCyclesofUseEcosystemPerformanceManagementTalentDevelopmentCaseStudyQuestions 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 3 WithYouToday BrentJameson Vice President GuidonPerformanceSolutions LLCOver15yearsexperienceinapplicationofLeanandSixSigmaExtensiveexperiencemigratingKaizenandLeanthinkingfrommanufacturingtofrontandbackofficeoperationsClientexperienceinretail healthcare financialservices informationtechnology andtelecommunications JimDickey Vice President GuidonPerformanceSolutions LLCOver15yearsexperienceinapplicationofLeanandSixSigmaCo founderofGuidonPerformanceSolutions thepioneerinapplyingLeanSigma innon industrialandnon traditionalcompaniesClientexperienceinretail healthcare financialservices telecommunicationsandgovernmentPioneeredgroundbreakingapproachtomanagingcapacityandstaffinginhighlycomplex highlyvariableoperatingenvironments 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 4 CorporateCulture cul ture thesetofsharedattitudes values goalsandpracticesthatcharacterizesacompanyorcorporation Webster sDictionary 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 5 WhatIsCorporateCulture CultureisrepresentedinthenormsandunwrittenrulesthatguideemployeeactionsCorporateculturesareshapedbyavarietyofinfluencesnatureofthebusinessgeographyfingerprintsofthecompanyfounders currentleadersandassociatesCulture happens Youcanacceptthehandyouhavebeendealtoryoucantakeactiontochangeit 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 6 ThePowerofCulture Corporateculturecanhaveasignificantimpactonafirm slong termeconomicperformance Corporateculturesinhibitingstrongperformancearenotrare theydevelopeasily eveninfirmsfullofreasonableandintelligentpeople Althoughtoughtochange corporateculturescanbemademoreperformance enhancing JohnKotterandJamesHeskett CorporateCultureandPerformance 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 7 CreatingaHighPerformanceCulture Thecultureofacompanyisthebehaviorofitsleaders Leadersgetthebehaviortheyexhibitandtolerate Youchangethecultureofacompanybychangingthebehaviorofitsleaders LarryBossidyFormerCEO Honeywell Asetofsharedbeliefs values attitudes goalsandactionsatalllevelsfocusedonsuperiorexecution HighPerformanceCulture 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 8 TransformationWillRequireaChangeInThinking Peopleareveryopenmindedaboutnewthings Aslongastheyareexactlyliketheoldones CharlesKettering 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 9 ThetwofundamentalforcesthatdriveGE acommonoperatingsystemandcommonsocialarchitecture JackWelchGE1999AnnualReport 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 10 StructureofCorporateCulture ChangingtheculturerequiresafocusontheSocialArchitectureandOperatingSystem 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 11 SocialArchitecture The real socialarchitectureDefinedbythoseattributesandbehaviorswhichareseentoleadtopromotionandadvancementSameastheattributesandbehaviorsespousedbytheleadershipasbeingdesirable 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 12 OperatingSystem The real operatingsystemDefinedbytheactivitiestowhichleadershipgiveshighestpriorityanddevotesmosttimeCommonlyusedmanagementpracticesandtoolsPredictablesequenceofeventsusedyearafteryeartoruntheorganizationDriversofday to dayprioritiesTools techniquesandprocessesatLevels1 3 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 13 StartwithRolesofLeadership ResponsibleforStrategicPlanningandLeadershipTalentDevelopmentTransitiontoExecutionExecutiononAnnualCommitmentsTalentDevelopmentTransitionforImprovementManagingChangeExecutionofDailyOperationalCommitmentsContinuousImprovement Establishingculturebeginswithclarifyingleadershiproles responsibilities SeniorLeadership MiddleManagement Leadership Supervisor FrontLineLeadership 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 14 CultureTransformation Cyclemustoccurateachleveloftheorganization however withdifferenttoolsandpractices CyclesofUseLinkingtoolsandpractices operatingsystem withthevaluesofanorganization socialarchitecture AStandardPlaybookforcreatingtheleadershipculturewhichwilldrivehighperformance 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 15 CyclesofUseEcosystem GoalSettingToolstoplan establishandtargetinitiativesCommunicate TranslateandDeploySharegoalsandtargetswithL2andL3LeadershipTranslateintoexecutableplansDeployresourcesMeasuringPerformanceandResultsTools forumstodiscussandevaluateperformancetotargetsIdentifygaps createplanstoimproveandassignresponsibilityExecutingtoCloseGapsCollaborativeproblemsolvingLean SixSigma FOCUSIncent CelebratingSuccessesReinforcingmethodsfordesiredresults repeatable andbehaviorsProblemsolvingmethods tools AHighPerformingCultureissimilartoanecosystem 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 16 SeniorLeadershipCyclesofUse Example 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 17 Mid LevelLeadershipCyclesofUse MONTHLYOPERATIONSREVIEWSeparateSDandKPIReviewsExceptionReportingForwardFocusonPotentialProblems OpportunitiesQuickResponseCountermeasures 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 18 FrontLineLeadershipCyclesofUse Front Line Scorecard PerformanceManagementSystemIdentifyopportunitiesinOperationsPerformanceReviews OPR Problemsolvingtoaddressgapsandaligntobusinessneeds 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 19 LeadershipTalentDevelopment Thethreebasicobjectivesoftalentarehelping Employeesunderstandwheretheycanbemostsuccessfulaswellashowtheycanbestdevelopwithintheorganization Leadersperformbetterbymakingbetterhiringandpromotiondecisionsandmanagingemployeesmoreeffectivelythroughimprovedmentoringandcoaching Organizationsplacetalentcorrectly maximizingemployeeproductivityandbeingmoreproactiveinsuccessionplanning Basiccomponentsofaneffectivetalentdevelopmentsystemarerecruitment assessment on boarding developmentplanning performancemanagementandcareer pathing 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 20 TheRealityIs ThechangeswithLeadershiparenotjusttechnical processoriented Therealityisthatthechallengeiswith PEOPLE 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 21 HighPerformanceLeadershipRoadmap SuccessionPlanning IdentifyCandidates Pilot L3developssuccessionplanKeyleadershiprolesKeyskillsforsuccessandcreateskillsmatrixExpectedfutureopportunities UtilizeCycleofUseoutcomestoidentifykeyL1andL2candidates RemovepilotcandidatesfromexistingroleandbeginrotationAssignL3mentorReviewprogresseachtrimester AssessCapabilities OngoingRotation AssessCandidatesrelativetoskillsmatrix Beginrotation2 Level3LeadershipandMentoring HumanResourcesOversight 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 22 LeadershipDevelopmentSkillsMatrix Example Basedonrequiredskillsforsuccessionpositions 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 23 HighPerformanceCultureCaseStudy 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 24 ClientCaseStudy FinancialServices Employees 20 000GlobalFootprint 50CountriesLineofBusiness TreasuryandSecuritiesServicesLegacy GrowthbyM ASituation Over35systemsplatforms Looseconfederationofstates PerformancemanagementtiedonlytofinancialsOverlycomplexandnon standardizedoperations 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 25 TheJourney TheJourneyBegins Learning Building Sustaining Advancing 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 26 BeforeCulturalTransformation Q2RecognizetheneedforculturalchangeLooseconfederationof states Geographic functionaldifferencesInconsistentservicedelivery HighPerformanceconceptsQ3AssessedthePerformanceCultureacrossorganizationObservation interviews alllevels geographiesSocialandoperatingparametersevaluated Alllevelsparticipatedinsurveytohelpusbetterunderstandouropportunities 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 27 GeneralAssessmentOutcomes RobustperformancereportingCustomerserviceorientationContinuousimprovementorganizationStandardizationteamsRecognizingandrewardingstaff Strengthsfromsurvey 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 28 SomeSocial CulturalAssessmentOutcomes Strong butinconsistent messagesacrosstheorganizationLessemphasisonvaluingemployees sustainingapositiveworkenvironmentTeamworkisnotaculturalstrengthStrongthemeofcynicismatlargersitesConsistentdefinitionofvalues inconsistentdefinitionoftools processes Anegativeworkenvironmentresultsincynicalbehaviorandalackofcompanypride 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 29 SomeOperatingAssessmentOutcomes PooralignmentofgoalsperceivedasperformancebarrierExistingreviewsskewedtowardfinancialperformanceRecognizefrontlineresourcesnottappedtodriveperformanceLackofaccountability follow throughdriverofpoordeliveryIncentivecompensationnotlinkedtoindividualperformance Operationalopportunitiesatthebeginningofourjourney 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisalicenseeofLeanSigma aservicemarkofTBMConsultingGroup 30 Year3Outcomes EmployeeEngagementSurveyresultsimprovedby15 annuallyAssetsundermanagementgrewby18 overthesameperiodITSystemPlatformsreducedto6fromover35Eliminatedtheneedforover1millionsquarefeetofoperationsspaceNumberofassociatesremainedflatat20 000 2009GuidonPerformanceSolutions LLC Allrightsreserved GuidonPerformanceSolutionsisa