Aligning People with Values to Increase Productivity and Profitability A BPI Webinar March 13, 2008 Aligning People with Values to Increase Productivity and Profitability Presented by Dr. David S. Cohen Strategic Action Group, Ltd.

My Goals For Today’s Presentation To help understand why alignment between the employees’ values and the corporate values are central to productivity and profitability To challenge the conventional thinking on corporate values To explain why integrity is not a value To answer the question: Why does culture (values) always trump strategy? To answer your questions

What Is Corporate Culture? Culture: A pattern of basic assumptions - invented, discovered or developed by people as they learn to cope with situations The results of which have worked well enough ... To be considered valid To be taught to new members of the group as the correct way to perceive, feel, think, and act in relation to those problems

What Is Corporate Culture? Corporate culture is the combined beliefs, values, ethics, procedures, and atmosphere of an organization that have, over time, become the way you get things done within the corporation The culture of an organization is often expressed as "the way we do things around here" and consists of largely unspoken values, norms, and behaviors that become the natural way of doing things

What Is Corporate Culture? Culture: A set of unwritten rules that members of an organization use to: Relate to each other Interact with the customer Get things done

A Stable Culture Allows for Predictability Consistency of decision making Knowing what to do even when there is no precedence This is linked to excellence in organizational performance because the organization has a set of values as its foundation that are defined specifically by the organization and commonly understood by all its employees

A Definition of Values Values are: Strongly held beliefs Emotionally charged Resistant to change All values are of equal importance When employees are successful, while violating the company values, the value is not a value

What Are Your Company’s Values? Customer satisfaction Ethics/integrity Accountability Respect for others Open communication Profitability Teamwork Innovation/change Continuous learning Positive work environment Diversity Community service Trust Social responsibility Security/safety Empowerment Employee job satisfaction Have fun

A Philosophical Perspective What drives behavior?

Our Philosophical Foundation

Our Philosophical Foundation

Our Philosophical Foundation

Our Philosophical Foundation

Our Philosophical Foundation

Our Philosophical Foundation Line of Sight

Role Specific Behaviours What is Fit? Role Specific Behaviours

Role Specific Behaviours What is Fit? Role Specific Behaviours Knowledge

Role Specific Behaviours What is Fit? Role Specific Behaviours Skill Knowledge

Role Specific Behaviours What is Fit? Role Specific Behaviours Skill Knowledge Fit Values

Capability = Skills x Knowledge What is Fit? Role Specific Behaviours Capability = Skills x Knowledge Skill Knowledge Fit Values

Capability = Skills x Knowledge Competency = Capability x Behaviour What is Fit? Role Specific Behaviours Capability = Skills x Knowledge Skill Knowledge Competency = Capability x Behaviour Fit Values

What is Fit? Fit Role Specific Behaviours Knowledge Skill Values Capability = Skills x Knowledge Skill Knowledge Competency = Capability x Behaviour Fit Values High Performance = Competency x Consistency x Values

Fit = Productivity Which Leads to Profitability High Demonstration of the Values Low High Achievement of Results

Fit = Productivity Which Leads to Profitability High High on results High on the competencies Great / Recognition Demonstration of the Values Low High Achievement of Results

Fit = Productivity Which Leads to Profitability High High on results High on the competencies Great / Recognition Demonstration of the Values Low on results Low on competencies Thanks for the memories / "Good-bye" Low High Achievement of Results

Fit = Productivity Which Leads to Profitability High High on competencies Low on results Rethink Job Fit High on results High on the competencies Great / Recognition Demonstration of the Values Low on results Low on competencies Thanks for the memories / "Good-bye" Low High Achievement of Results

Fit = Productivity Which Leads to Profitability High High on competencies Low on results Rethink Job Fit High on results High on the competencies Great / Recognition Demonstration of the Values Low on results Low on competencies Thanks for the memories / "Good-bye" High on results Low on competencies Rethink Rewards & Recognition Create Consequences of their actions Low High Achievement of Results

Fit = Productivity Which Leads to Profitability High High on competencies Low on results Rethink Job Fit Stars High on results High on the competencies Great / Recognition Demonstration of the Values Low on results Low on competencies Thanks for the memories / "Good-bye" High on results Low on competencies Rethink Rewards & Recognition Create Consequences of their actions Low High Achievement of Results

Fit = Productivity Which Leads to Profitability High High on competencies Low on results Rethink Job Fit Stars High on results High on the competencies Great / Recognition Demonstration of the Values Dead wood Low on results Low on competencies Thanks for the memories / "Good-bye" High on results Low on competencies Rethink Rewards & Recognition Create Consequences of their actions Low High Achievement of Results

Fit = Productivity Which Leads to Profitability High Keepers High on competencies Low on results Rethink Job Fit Stars High on results High on the competencies Great / Recognition Demonstration of the Values Dead wood Low on results Low on competencies Thanks for the memories / "Good-bye" High on results Low on competencies Rethink Rewards & Recognition Create Consequences of their actions Low High Achievement of Results

Fit = Productivity Which Leads to Profitability High Keepers High on competencies Low on results Rethink Job Fit Stars High on results High on the competencies Great / Recognition Demonstration of the Values Dead wood Low on results Low on competencies Thanks for the memories / "Good-bye" Viruses!!! High on results Low on competencies Rethink Rewards & Recognition Create Consequences of their actions Low High Achievement of Results

How Values Work When people feel alignment between their personal work values, their organization’s values and their manager’s values, we call it “good fit” When values are clear, they guide all business decisions and personal decisions - especially when those decisions are tough and emotional

How Values Work When an organization’s declared values and its real values don’t match, people become stressed, confused and cynical When the organization’s values become the foundation for its vision, business strategy, and talent development, it has a sustainable competitive advantage

What Are Your Company’s Values? Above ground: The values that are articulated by the company. Usually found on the website or the back of the business card or ID badge Underground: The values that are taught by one generation of employees to the next. The true values of the company

What Makes The Values Clear To Employees? The actions that define the values within your culture need to be articulated in clear and simple behavioral statements What if you only provide them with the words and a generic, all encompassing definition?

How To Evaluate The “Truth” of Your Company’s Values For your organization, are the following statements accurate? Corporate values have been articulated by senior management in terms understood by all employees at all levels Our organization believes in doing the ethical thing (values based), regardless of the cost Failure to adhere to corporate values has a significant consequence

How To Evaluate The “Truth” of Your Company’s Values For your organization, are the following statements accurate? Employees know how my company’s values translate into job performance and the bottom line My company’s public statements sometimes conflict with internal messages and realities Our organization will always do what’s legal, not always what may be perceived as ethical My company will always live the values in tough situations, not rely on the easy or legal way out

Questions For Your Consideration: What might make employees cynical about a corporations values? Why is integrity not a value? Why does culture always trump strategy?

What Might Make Employees Cynical About A Corporations Values? In the just released BPI research: “Best Practices in Leading the Global Workforce” what percentage of companies used the values as part of: Development of high potentials Selection of leaders Decision making regarding people

Your Questions? Thank you for your participation Contact information david@sagltd.com 416-650-9786 Thank you for your participation