Sheila L. Margolis, PhD May 26, 2011 Understanding Your Organization’s Culture: Tools to Make HR Practices Strategic Sheila L. Margolis, PhD May 26, 2011
What Is Valued at Whole Foods Market?
What Is Valued at Zappos?
Use Culture to Generate Success
Tools Agenda Define Core Culture 2. Align HR Practices with Core Culture Tools 5 5
Manage Culture & Change American College of Rheumatology The Podiatry Institute St. Jude’s Recovery Center, Inc. Gastrointestinal Specialists of Georgia, PC Southeastern Lung Care 6
Speak, Teach and Write
Think About Your Organization… Choose one value that would enable your company to compete and thrive. 8 8
Core Culture Interview Agenda Define Core Culture 2. Align HR Practices with Core Culture Tool: Core Culture Interview 9 9
Understand Your Core Culture Vision Strategic Goal Strategic Goal Priorities Core Culture Philosophy Purpose Strategic Goal Strategic Goal 10 10
Define the Purpose: “Why” Is this Work Important? Vision Strategic Goal Strategic Goal Why? Purpose Strategic Goal Strategic Goal 11 11
Support Health, Well-being and Healing 12 12
What Is Your Gift to Society Through Your Work? 13 13
Keep the Purpose Brief in Length We protect the American people 14 14
Ensure the Purpose Is Broad in Scope We organize the world’s information 15 15
Unite Around a Shared Purpose 16 16
Use the Tool: Core Culture Interview: Purpose 1. What is the purpose of your organization? 2. Why is that important? (Ask up to five times.) The Purpose is:______________________ 17 17
Case Example: Purpose Purpose Options To cultivate relationships Not at all % A little Moderately Quite a bit Very much Very much + Quite a bit To cultivate relationships 5.3 10.1 22.1 26.9 35.6 62.5 To promote friendships 6.9 9.8 27.5 31.4 24.5 55.9 To be a home away from home 12.7 10.7 18.5 22.9 35.1 58.0 To enhance lives 5.6 6.1 15.0 33.2 40.2 73.4 To make people happy 6.2 5.2 7.1 63.0 81.5
Define the Philosophy: “How” Is the Organization Unique? Vision Strategic Goal Strategic Goal Distinctive & Enduring How? Philosophy Purpose Strategic Goal Strategic Goal 19 19
Live the Southwest Spirit: Herb Kelleher Vision Strategic Goal Strategic Goal Distinctive & Enduring How? Philosophy Purpose Strategic Goal Strategic Goal 20 20
Preserve the Purpose and Philosophy Vision Strategic Goal Strategic Goal Philosophy Organizational Identity Purpose Strategic Goal Strategic Goal 21 21
Entertain through the Disney Magic Philosophy Purpose We Make People Happy Imagination 22 22
Use the Tool: Core Culture Interview: Philosophy Purpose 3. What prime value is fundamental and distinctive to your company? 4. Describe the founder and the ideals that drove the organization’s founding. 5. What makes your organization feel different from others doing similar work? The Philosophy is:_______________________ 23 23
Case Example: Philosophy We Anticipate Needs and Exceed Expectations with a Sense of Urgency. We Consistently deliver Superior Experiences. We pay Attention to Details. We have heartfelt Caring and Respect for all. All of the above is the difference between Good and GREAT! “Club” Standard Philosophy We make people happy Purpose 24
Define the Priorities: “How” To Compete & Thrive? Vision Strategic Goal Strategic Goal Strategic How? Priorities Philosophy Purpose Strategic Goal Strategic Goal 25 25
Decide “How” to Achieve the “What” Vision Strategic Goal Strategic Goal Priorities Strategic How? Philosophy Purpose Strategic Goal Strategic Goal 26 26
Manage Smarter
Improve Collaboration
Use the Tool: Core Culture Interview: Priorities Philosophy Purpose 6. What should we focus on and pay attention to? 7. To effectively achieve our strategy, what values should guide how we work? 8. What key values, if followed, would help us compete and thrive? The Priorities are:______________________ 29 29
Case Example: Priorities Training & Development Increase employees’ knowledge and skills so they share a common vision and goals, and practice the “Club” Standard in their daily interactions Priorities Teamwork All working together --to make people happy through the “Club” Standard Philosophy Purpose Communication Open, honest, and timely sharing of information— from the top down, from the bottom up, between departments, and between locations 30
Understand Your Hidden Asset Vision Strategic Goal Strategic Goal Priorities Core Culture Core Culture Philosophy Purpose Strategic Goal Strategic Goal 31 31
Use the Tool: Core Culture Interview Priorities Philosophy Purpose 1. What is the purpose of your organization? 2. Why is that important? (Ask up to five times.) The Purpose is:______________________________ 3. What prime value is fundamental and distinctive to your company? 4. Describe the founder and the ideals that drove the organization’s founding. 5. What makes your organization feel different from others doing similar work? The Philosophy is:____________________________ 6. What should we focus on and pay attention to? 7. To effectively achieve our strategy, what values should guide how we work? 8. What key values, if followed, would help us compete and thrive? The Priorities are:____________________________ 32 32
Define Your Core Culture Vision Strategic Goal Strategic Goal Definitions Examples & Stories Priorities Philosophy Core Culture Purpose Strategic Goal Strategic Goal 33 33
Include Everyone in Defining the Core Culture 34 34
Tool: Internal Practices Alignment Audit Agenda Define Core Culture 2. Align HR Practices with Core Culture Tool: Internal Practices Alignment Audit 35 35
Align the Five Ps Core Culture Projections Practices Vision Projections Practices Internal & External Strategic Goal Strategic Goal Priorities Philosophy Core Culture Purpose Strategic Goal Strategic Goal 36 36
Align Internal Practices with the Core Vision Projections External Practices Strategic Goal Strategic Goal Internal Practices Priorities Philosophy Purpose Core Culture Strategic Goal Strategic Goal 37 37
Align Internal Practices with the Core Structure, Work Design & Systems Recruitment & Selection Training & Development Technology Internal Communications Performance Management 38 38
Use the Tool: Internal Practices Alignment Audit Degree of Alignment 1 2 3 4 5 Extremely Extremely Unaligned Aligned Recommendations to Improve Alignment Purpose Philosophy Priorities
Audit Structure, Work Design & Systems To what degree do the following align with the Core Culture… Degree of Alignment 1 2 3 4 5 Extremely Extremely Unaligned Aligned Recommendations to Improve Alignment Purpose Philosophy Priorities 1. Does the organizational structure support the Core Culture? 2. Do job titles reflect the Core Culture? 3. Does the design of work reinforce the Core Culture? 4. Do systems for doing work align with the Core Culture? 5. Does decision making reflect the Core Culture?
Align Structure with the Customer Service Culture 41 41
Align Job Titles with the Revolutionary Culture 42 42
Align Work Design with WOW Service
Change Guidelines to Improve Quality
Align Systems with Fun and a Little Weirdness
Encourage Employees to Make Decisions Be adventurous
Audit Recruitment & Selection To what degree do the following align with the Core Culture… Degree of Alignment 1 2 3 4 5 Extremely Extremely Unaligned Aligned Recommendations to Improve Alignment Purpose Philosophy Priorities 6. Do recruitment materials reflect the Core Culture? 7. Do recruitment practices support the Core Culture? 8. Do you talk about the Core Culture with applicants? 9. Do you model the Core Culture when meeting with applicants? 10. Do you interview for culture fit?
Align Recruitment Materials with the Disney Culture
Use Recruitment Practices to Support the Teamwork Culture
Talk about the Core Culture with Applicants
Model the Core Culture When Meeting with Applicants
Interview for Fit with a Culture of Fun and a Little Weirdness If you could be a superhero, which one would you be?
Audit Training & Development To what degree do the following align with the Core Culture… Degree of Alignment 1 2 3 4 5 Extremely Extremely Unaligned Aligned Recommendations to Improve Alignment Purpose Philosophy Priorities 11. Do you orient new employees to the Core Culture? 12. Do you train new employees in the skills to be able to practice the Core Culture? 13. Do you provide ongoing training to ensure actions meet/ exceed standards for living the Core Culture? 14. Does the way training is conducted model the Core Culture?
Orient and Train New Employees to Understand and Practice the Core 54 54
Provide Ongoing Training to Ensure Quality Standards 55 55
Ensure Training Models Pixar’s Culture of Collaboration 56 56
Audit Performance Management To what degree do the following align with the Core Culture… Degree of Alignment 1 2 3 4 5 Extremely Extremely Unaligned Aligned Recommendations to Improve Alignment Purpose Philosophy Priorities 15. Do employees have standards for performance linked to the Core Culture? 16. Do you hold employees accountable for personal action plans that reinforce the Core Culture? 17. Do you give positive feedback to employees who model the Core Culture? 18. Do you celebrate the achievement of goals that promote the Core Culture?
Align Performance with the Core 90 Day Action Plan 58 58
Give Positive Feedback to Employees who Model the Core Culture
Celebrate the Achievement of Goals that Promote the Core Culture
Link Bonus Pay to Team Performance 61 61
Audit Internal Communications To what degree do the following align with the Core Culture… Degree of Alignment 1 2 3 4 5 Extremely Extremely Unaligned Aligned Recommendations to Improve Alignment Purpose Philosophy Priorities 19. Do you disseminate information about the Core Culture? 20. Does the flow of information align with the Core Culture? 21. Do leaders regularly talk about and demonstrate the Core Culture principles and values? 22. Do meetings reflect the Core Culture?
Disseminate Information about the Core
Align Flow of Information with the Core Ask Anything Employee newsletter
Talk about and Demonstrate the Core 65 65
Align Meetings with the Core Culture 66 66
Recommendations to Improve Alignment Audit Technology To what degree do the following align with the Core Culture… Degree of Alignment 1 2 3 4 5 Extremely Extremely Unaligned Aligned Recommendations to Improve Alignment Purpose Philosophy Priorities 23. Do you use equipment to support the Core Culture? 24. Does your software effectively support the Core Culture? 25. Does your intranet align with the Core Culture?
Use Technology to Enhance Customer Service 68 68
Align the Intranet with the Core
Use the Tool: Internal Practices Alignment Audit Degree of Alignment 1 2 3 4 5 Extremely Extremely Unaligned Aligned Recommendations to Improve Alignment Purpose Philosophy Priorities
Use Culture to Generate Success
Tools Agenda Define Core Culture 2. Align HR Practices with Core Culture Tools 72 72
Understand Your Core Culture Vision Strategic Goal Strategic Goal Priorities Core Culture Philosophy Purpose Strategic Goal Strategic Goal 73 73
Use the Tool: Core Culture Interview Priorities Philosophy Purpose 1. What is the purpose of your organization? 2. Why is that important? (Ask up to five times.) The Purpose is:______________________________ 3. What prime value is fundamental and distinctive to your company? 4. Describe the founder and the ideals that drove the organization’s founding. 5. What makes your organization feel different from others doing similar work? The Philosophy is:____________________________ 6. What should we focus on and pay attention to? 7. To effectively achieve our strategy, what values should guide how we work? 8. What key values, if followed, would help us compete and thrive? The Priorities are:____________________________ 74 74
Define Your Core Culture Vision Strategic Goal Strategic Goal Definitions Examples & Stories Priorities Core Culture Philosophy Purpose Strategic Goal Strategic Goal 75 75
Include Everyone in Defining the Core Culture 76 76
Use the Tool: Internal Practices Alignment Audit Degree of Alignment 1 2 3 4 5 Extremely Extremely Unaligned Aligned Recommendations to Improve Alignment Purpose Philosophy Priorities
Culture Is Your Distinctive Advantage 78 78
Culture Is the Basis for Your Success 79 79
What Is Valued at Neiman Marcus? 80 80
Build Your Culture of Distinction For more information: www.SheilaMargolis.com 81 81