1. Leadership Development Strategies for Performance- Driving Cultures Metro DC ASTD Leadership Development Community September 11, 2014 © Peridona Strategies LLC

2. 2 “How do we build organizations that deserve the extraordinary gifts that employees could bring to work?” – Gary Hamel, pioneer management thinker

3. How Culture is Defined © Peridona Strategies LLC 3 Visible & feelable structures & processes Observed behavior Ideals, goals, espoused values & aspirations Ideologies Rationalizations Unconscious, taken-for-granted beliefs and values Organizational culture is a product of social learning and develops from a shared history of problem solving and adapting to internal and external conditions. It is to a group what personality or character is to an individual. Credit: Model of Organizational Culture, Edgar Schein

4. How Culture is REALLY Defined © Peridona Strategies LLC 4 The way things REALLY work around here The way decisions are REALLY made The way communication REALLY happens The way promotions are REALLY earned and REALLY granted The people are REALLY treated every day

5. © Peridona Strategies LLC 5 “The culture of a company is the place where people are front and center, where the richness and complexity of human beings resides, where your humanity shines through. As such, it is the most powerful part of business. When it is consciously affirmed, nurtured, and developed over time, it becomes both a true differentiator and the ultimate competitive weapon.” – Walter Robb, Whole Foods co-CEO “A strong culture can help or hurt performance. Culture can account for up to half of the difference in operating profit between two organizations in the same business. Shaping culture is one of a leader’s most important jobs; it can be ignored, but only for so long at one’s peril.” – James Heskett, Harvard Business School

6. Four Principles of Conscious Capitalism Purpose: Beyond profits, the reason for existence Stakeholder Integration: Looking for synergies to create the ultimate win- win Conscious Leadership: Emotionally & spiritually mature; motivated by service; develop, mentor, inspire & lead by example Conscious Culture: Facilitates the continued growth of the individual and the organization © Peridona Strategies LLC 6

7. Conscious Culture: TACTILE Trust Accountability Caring Transparency Integrity Loyalty Egalitarianism © Peridona Strategies LLC 7

8. The HOW Report 36,280 employees in 18 countries Key findings: –Only 3% observed high-levels of self- governing behavior –Self-governing organizations out-perform others in every important outcome –C-suite employees are 3-8 times more likely to observe their organizations as self-governing –Trust, shared values and deep understanding of and commitment to purpose produce superior business performance © Peridona Strategies LLC 8 Credit: LRN

9. Three Cultural Archetypes © Peridona Strategies LLC 9 Blind ObedienceInformed AcquiescenceSelf-Governance Command & control Top-down leadership Coercion Rules & policing Transactional Short-term objectives Little focus on building enduring relationships with employees, customers or community 20 th century management Hierarchy & structure Control processes Employees follow rules, policies & procedures Believe management to be skilled Performance-based rewards & punishments Long-term goals important; often give way to short-term success Values-based Purpose & values inform decision-making & behaviors Act on basis of core set of principles Inspired to align around mission, purpose & definition of significance Employees strive to be leaders Focus on long-term legacy and endurance

10. Group Results © Peridona Strategies LLC 10

11. HOW We Know © Peridona Strategies LLC 11

12. HOW We Behave © Peridona Strategies LLC 12

13. HOW We Relate © Peridona Strategies LLC 13

14. HOW We Recognize © Peridona Strategies LLC 14

15. HOW We Pursue © Peridona Strategies LLC 15

16. Small Group Work What are the implications for leadership development for: –Leadership Development SMEs –Coaches –HR Leaders © Peridona Strategies LLC 16

17. Tenets of Leadership Development for the 21 st Century Foster leadership team unity Define, articulate and develop values Define what TACTILE looks like for your organization Help leaders see what values and TACTILE look like in action Partner with mid-level managers to develop high-performance teams Rethink definition of leadership– is everyone a leader? Use data to support transformation Recognize it is an unending journey; a way of being © Peridona Strategies LLC 17

18. Thank You! Paula Pierce, MS, PMP, BMC –CEO, Peridona Strategies LLC –Board Member, Conscious Capitalism DC www.peridonastrategies.com paula.pierce@peridonastrategies. com 703.912.3951(o) © Peridona Strategies LLC 18