Understanding Your Companys Culture: Tools to Make HR Practices Strategic Sheila L. Margolis June 24, 2008
©2008 Sheila L. Margolis 2 Whole Foods Whole People Whole Planet
©2008 Sheila L. Margolis 3 Blow away the customer
©2008 Sheila L. Margolis 4 Are your HR practices strategic?
©2008 Sheila L. Margolis 5 Use culture to drive success Organizational Culture HR Practices Business Success
©2008 Sheila L. Margolis 6 Are you a Culture and Change Steward?
©2008 Sheila L. Margolis 7 Agenda 1. Define Core Culture 2. Align HR Practices with Core Culture
©2008 Sheila L. Margolis Manage culture and change 8
©2008 Sheila L. Margolis 9 Speak, teach and write
©2008 Sheila L. Margolis 10 Think about your organization… 1.Write one value that would enable your company to compete and thrive. 2.Share your response with another person.
©2008 Sheila L. Margolis 11 Agenda 1. Define Core Culture 2. Align HR Practices to Core Culture
©2008 Sheila L. Margolis 12 Understand your Core Culture Strategic Goal Strategic Goal Strategic Goal Strategic Goal Core Culture Vision Purpose Philosophy Priorities
©2008 Sheila L. Margolis 13 Purpose: Why is this work important? Purpose Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Why?
©2008 Sheila L. Margolis 14 We support health, well-being and healing
©2008 Sheila L. Margolis 15 What is your gift to society through your work?
©2008 Sheila L. Margolis 16 Purpose is brief in length To protect the American people
©2008 Sheila L. Margolis 17 Purpose is broad in scope To organize the worlds information
©2008 Sheila L. Margolis 18 Purpose must be shared
©2008 Sheila L. Margolis 19 Tool: Core Culture Interview 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? Give examples. 4. What ideals drove the organizations founding? 5. What makes your organization feel different from other organizations doing similar work? The Philosophy is:____________________________ 6. To effectively achieve our strategy, what values should guide everyone in how we do our work? Explain. 7. What key values, if followed, would allow us to compete and thrive? The Priorities are:____________________________
©2008 Sheila L. Margolis 20 Philosophy: How is the organization unique? Purpose Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Philosophy Distinctive & Enduring How?
©2008 Sheila L. Margolis 21 Herb Kelleher represents the Southwest Spirit Purpose Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Philosophy Distinctive & Enduring How?
©2008 Sheila L. Margolis 22 Amazon obsesses over customer service Purpose Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Philosophy Distinctive & Enduring How?
©2008 Sheila L. Margolis 23 Purpose and Philosophy are Organizational Identity Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Philosophy Organizational Identity Purpose
©2008 Sheila L. Margolis 24 Purpose = To make people happy Philosophy = Imagination Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Philosophy Organizational Identity Purpose
©2008 Sheila L. Margolis 25 Tool: Core Culture Interview 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? Give examples. 4. What ideals drove the organizations founding? 5. What makes your organization feel different from other organizations doing similar work? The Philosophy is:____________________________ 6. To effectively achieve our strategy, what values should guide everyone in how we do our work? Explain. 7. What key values, if followed, would allow us to compete and thrive? The Priorities are:____________________________
©2008 Sheila L. Margolis 26 Priorities: How to compete & thrive? Purpose Philosophy Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Strategic How? Priorities
©2008 Sheila L. Margolis 27 Priorities are strategic values Purpose Philosophy Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision Strategic How? Priorities What?
©2008 Sheila L. Margolis 28 Uncover the few Priorities QualityFlexibility Customer Service Teamwork Intelligence Learning Caring Relationships CollaborationPartnerships Aggressiveness Hard Work Perseverance Talent Innovation CreativityDiversity Performance Risk Taking Excellence Openness Fun Safety SustainabilityFriendliness Imagination Integrity
©2008 Sheila L. Margolis 29 Quality is valued at Whole Foods Market
©2008 Sheila L. Margolis 30 Georgia-Pacific values safety
©2008 Sheila L. Margolis 31 Tool: Core Culture Interview 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? Give examples. 4. What ideals drove the organizations founding? 5. What makes your organization feel different from other organizations doing similar work? The Philosophy is:____________________________ 6. To effectively achieve our strategy, what values should guide everyone in how we do our work? Explain. 7. What key values, if followed, would allow us to compete and thrive? The Priorities are:____________________________
©2008 Sheila L. Margolis 32 Core Culture is your hidden asset Priorities Purpose Philosophy Core Culture
©2008 Sheila L. Margolis 33 Tool: Core Culture Interview 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? Give examples. 4. What ideals drove the organizations founding? 5. What makes your organization feel different from other organizations doing similar work? The Philosophy is:____________________________ 6. To effectively achieve our strategy, what values should guide everyone in how we do our work? Explain. 7. What key values, if followed, would allow us to compete and thrive? The Priorities are:____________________________
©2008 Sheila L. Margolis 34 Core Culture Map with Definitions, Examples & Stories Purpose Philosophy Priorities Definitions Examples & Stories
©2008 Sheila L. Margolis 35 Workshop Workshop & Dialogue Workshop, Surveys & Follow-up Comprehensive Assessment Options Choose the best way to define your organizations Core Culture
©2008 Sheila L. Margolis 36 Agenda 1. Define Core Culture 2. Align HR Practices to Core Culture
©2008 Sheila L. Margolis 37 Words = Actions
©2008 Sheila L. Margolis Align the Five Ps 38 Priorities Purpose Philosophy Internal Practices Projections External Practices Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision
©2008 Sheila L. Margolis 39 Align Internal Practices to the Core Priorities Purpose Philosophy Internal Practices Projections External Practices Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision
©2008 Sheila L. Margolis 40 Many Internal Practices are the domain of HR Structure, Work Design & Systems Recruitment & Selection Training & Development Performance Management Internal Communications Technology
©2008 Sheila L. Margolis 41 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core?
©2008 Sheila L. Margolis 42 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core?
©2008 Sheila L. Margolis 43 Align structure with the Core Customers Sales & Support People Department Managers Buyers, Merchandise Managers, Store Managers, Regional Managers Executive Team, Board of Directors
©2008 Sheila L. Margolis 44 Align job titles with the Core Mac Genius
©2008 Sheila L. Margolis 45 Align systems with the Core "Everyone, from the chief executive on down, is involved in cleaning the plane at the airport."
©2008 Sheila L. Margolis 46 Align systems with the Core
©2008 Sheila L. Margolis 47 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core?
©2008 Sheila L. Margolis 48 Align recruitment materials with the Core
©2008 Sheila L. Margolis 49 Align recruitment practices with the Core
©2008 Sheila L. Margolis 50 Interview for culture fit How would you weigh an airplane without a scale?
©2008 Sheila L. Margolis 51 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core?
©2008 Sheila L. Margolis 52 Align training & development with the Core
©2008 Sheila L. Margolis 53 Align training & development with the Core
©2008 Sheila L. Margolis 54 Align training & development with the Core
©2008 Sheila L. Margolis 55 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core?
©2008 Sheila L. Margolis Day Action Plan Align performance management with the Core
©2008 Sheila L. Margolis Day Action Plan Align performance management with the Core Bonus pay linked to team performance
©2008 Sheila L. Margolis 58 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core?
©2008 Sheila L. Margolis 59 Align internal communications with the Core
©2008 Sheila L. Margolis 60 Align internal communications with the Core 3,600 active blogs where 25,000 IBMers share their expertise, experience and opinions ValuesJam
©2008 Sheila L. Margolis 61 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core?
©2008 Sheila L. Margolis 62 Align technology with the Core
©2008 Sheila L. Margolis 63 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core?
©2008 Sheila L. Margolis 64 Use culture to drive success Organizational Culture HR Practices Business Success
©2008 Sheila L. Margolis 65 Are you a Culture and Change Steward?
©2008 Sheila L. Margolis 66 Agenda 1. Define Core Culture 2. Align HR Practices to Core Culture
©2008 Sheila L. Margolis 67 Define and shape the Core Priorities Purpose Philosophy Internal Practices Projections External Practices Strategic Goal Strategic Goal Strategic Goal Strategic Goal Vision
©2008 Sheila L. Margolis 68 Tool: Core Culture Interview 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? Give examples. 4. What ideals drove the organizations founding? 5. What makes your organization feel different from other organizations doing similar work? The Philosophy is:____________________________ 6. To effectively achieve our strategy, what values should guide everyone in how we do our work? Explain. 7. What key values, if followed, would allow us to compete and thrive? The Priorities are:____________________________
©2008 Sheila L. Margolis 69 Core Culture Map with Definitions, Examples & Stories Purpose Philosophy Priorities Definitions Examples & Stories
©2008 Sheila L. Margolis 70 Tool: Internal Practices Alignment Audit To what degree… Degree of Alignment Not Very Aligned Recommendations for Change Structure, Work Design & Systems Does your organizational structure facilitate the Core? Do job titles and job descriptions reinforce the Core? Do the systems for doing work support the Core? Do systems exist that fix performance gaps in executing the Core? Recruitment & Selection Do recruitment materials reflect the Core? Do recruitment practices support the Core? Do you talk about the Core with applicants? Do you model the Core when you meet with applicants? Do you interview for culture fit? Training & Development Do you orient new employees to the Core? Do you train new employees in Core skills? Do you provide ongoing training to ensure actions meet/exceed standards for living the Core? Does your training model the Core attributes? Performance Management Do employees have standards for performance linked to the Core? Do you hold employees accountable to personal action plans that reinforce the Core? Do you recognize and reward employees who model the Core? Do you celebrate the achievement of goals that promote the Core? Internal Communications Do you disseminate information about the Core? Does the flow of information align with the Core? Does leadership talk about and demonstrate the Core? Do meetings reflect the Core? Technology Do you use equipment to support the Core? Does your software effectively support the Core? Does your intranet align with the Core?
©2008 Sheila L. Margolis 71 Culture is your distinctive advantage
©2008 Sheila L. Margolis 72 Culture is the basis for your success
©2008 Sheila L. Margolis 73
©2008 Sheila L. Margolis 74 Build your Culture of Distinction