1. Promoting a Positive Organizational Culture Prof. Brian Blume, Ph.D University of Michigan, Flint School of Management

2. What factors separate Successful vs. Unsuccessful Schools?

3. 1.Make the business case for “people first” cultures 2.Explore the evidence which isolates the characteristics of high-commitment, “people first” cultures 3.Challenge you: How can you help create a higher performance culture at IAF? Session Goals: Inform, Illuminate & Inspire

4. Culture is the set of values, beliefs, understandings, and ways of thinking that are shared by members of an organization Culture serves 2 basic functions: internal integration to integrate members so they develop a collective identity external adaptation to help the organization meet goals and deals with outsiders by responding rapidly to customer needs What is Culture?

5. Exercise: Steak N Shake Restaurants recently completed an in-depth study comparing their stores that rank in the top quartile in sales and profitability and those stores that rank in the bottom quartile. What factors were consistently NOT different across stores? What consistent predictors or indicators of high financial performance did they find? What is an Organization’s Most Important Asset?

6. What DID differentiate the stores on performance? (1)High customer service – measured by external raters (2)High employee engagement – measured by low turnover and surveys (3)Store manager (drives the first two) (4)Franchise ownership The Steak N Shake Lessons

7. The central business challenge is recruiting, motivating, and retaining committed managers and employees Engaged / Committed employees: Work harder Work smarter Are better citizens Leave less and attract others like them “If people are our most valuable asset, I say we sell them.” Jerry Seinfeld People are an Organization's Most Important Asset

8. 100 “Best To Work for” vs. Overall Stock Market 1998-2007

9. 1.Commitment to Talent Development 2.Decentralized decision-making 3.Reduced status barriers 4.Extensive sharing of information 5.Relatively high and performance-based pay 6.Employment security 7.Selective hiring using effective methods Seven Key Management Practices (Pfeffer & Veiga, 1999)

10. What if we train all these people and they leave? What if we don’t and they stay?” Sends signal of investment Creates environment of growth and ideas and learning Development Means More Than Training Candid feedback & coaching Mentoring from someone “in the loop” Job experiences Commitment to Talent Development

11. Incredible motivational power of control & ownership & Commitment Utilize Self- managed teams to increase responsibility & accountability to peers Discretion to help students learn and do what is right What decisions could someone else make? Decentralized decision-making

12. Symbols- language and labels, physical space, dress Minimize wage differentials across job levels Perceptions of Fairness influence behavior Look for group and organizational rewards that prompt sense of mutual and shared interest Reduction of Status Differences

13. Key to developing high-trust culture Do you know how the organization is doing: financial performance, strategy, operational goals, student outcomes? Employees desire Prompt and ample feedback Some form of input – the opportunity to be heard Sharing information

14. Surprise: Relatively high pay yields attraction and retention (Obviously, not really a surprise) Be as transparent as possible with performance criteria Individual incentives can work in the right context, but may be tricky and dysfunctional Look for group and organizational incentives Higher pay can potentially lower labor costs (via higher productivity & lower turnover) Relatively High Pay based on Organizational Performance

15. The case for it includes: encourages innovation discourages layoff thinking incents more careful hiring creates longer-term perspectives Does not mean keep low performers -- but all leavers go with respect and dignity Challenges conventional wisdom Top employees ask: Is there a place for me to be promoted to within the organization? Employment Security

16. How to attract more applicants? Need to be more than great place to work – need to be known as great place to work Hire for fit – Exceptional results with ordinary people. How do you determine fit? What values & skills are key to the position & organization? Broaden input on hiring decisions (e.g., fellow employees, customers) Understand the evidence on selection predictors Selective Hiring

17. 1.Commitment to Talent Development 2.Decentralized decision-making 3.Reduced status barriers 4.Extensive sharing of information 5.Relatively high and performance-based pay 6.Employment security 7.Selective hiring using effective methods How would you rate IAF on these Practices? Why?

18. Must begin by questioning basic assumptions of thinking behind current behavior and practices Culture should align with the vision, mission, strategies and goals of the organization Policies and procedures should be consistent with desired culture change Involve employees Culture change requires a lot of time and effort to overcome resistance Lessons from Culture Change