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Purpose and
performance
The Case For A Purpose Based Culture
For HR.com
Kenneth L. Greenberg
July 2014
Your speaker
Kenneth L. Greenberg, President and CEO KLG Consultants, LLC
•  Ken Greenberg, a former Investment Banker and private equity professional, is the
founder of KLG Consultants, LLC.  He heads the Corporate Consulting practice at
KLG and besides his other academic a professional accomplishments, has a Lean
Management Certification through ExpertRating.  Ken serves as a facilitator for the
CEO Exchange program at the Denver Metro Chamber of Commerce, and was a board
member of ExecConnect Denver.
•  Ken's experience in investment banking, private equity, and private company board
membership has allowed him to see a number of successful and unsuccessful ventures
and organizations.  His experience led him to study and research organizational
development, human capital development, and modern leadership theory. He has
written a white paper and articles on the subject and studied the use of facilitation in
leadership training, both academically and professionally.
•  Subsequently, for KLG clients, Ken uses cutting edge assessments, facilitative training,
and coaching to help all types of organizations remove impediments to success and
increase performance.
2
What is orgd
•  Organizational development is an ongoing, systematic
process of implementing effective organizational
change.
•  It is interdisciplinary in nature and draws on sociology,
behavioral psychology, and theories of motivation,
learning, and personality.
•  Organizational development is a growing field that is
responsive to many new approaches including Positive
adult professional development.
3
The purpose based
org chart
4
What’s Lean got to
say?
An Organization's Purpose –
Provide value to customers in
order to prosper.
Lean Enterprise Institute
5
home depot and the
customer
“We removed tasks. For example, we
replaced more than 200 weekly reports and e-
mails with one, single-page weekly scorecard.
Reports don't buy hardware; customers do,
so I wanted our associates focused on
customers. We backed that up with training
and rewards, working hand in hand with
HR.”
Marvin Ellison, EVP Home Depot
6
Assessing Culture
•  What is the as is state- WIFME or Customer Focused
•  Custom Stakeholder Survey (Must be Anonymous and data
safe)
•  10 Scale and text box answers
•  Must ask key questions about perception of products and
services
•  Must ask key questions about leadership and management
•  Must ask key questions about voluntary turnover indicating
behaviors and presentisim
7
Its Starts with
Leaders
•  Decide to create the culture-
•  The leaders of an organization must decide that
customer service will be a top priority. They need to
establish this culture at all levels. The decision will
come from the top of the organization and permeate
through all levels. It must be done on purpose.
•  Michael Ray Hopkin
8
Leadership teams and the
bench matter
According to McKinsey and Company
Building trust and leadership skills helps merging companies
exceed their value-creation target by 30 percent.
9
Assessing leaders and
the bench
•  Evidence based normed assessments
•  Look at leadership potential
•  Predictive of behavior as a leader especially the ability to
drive change
Also use-
•  360° Surveys of leadership skills
•  Evidence of leadership readiness and identification of skill
gaps
•  Deliverables to HR and Senior Leadership.
10
Leading through
Change
Culture transformations are huge change
events!
Leaders set the limits of success in
their organizations by how they
manage change.
(Research by JG Bruhn- Health Care Management)
11
Making Cultural
Change Happen
•  Leaders are constantly challenged with the daunting task of
managing ongoing change and transition.
•  Not only do they need to cope with the structural side
(creating a vision, reorganizing, and restructuring), but they
are also on the front lines of the people part of change
(grieving, letting go, building hope, and learning).
•  HR professionals can help leaders and managers throughout
the organization, make change happen.
-Kerry Bunker, Leading Through Transitions
12
Aligning Interest
•  Align interests to responsibilities where possible.
Know the core interests of your top employees. What
naturally drives someone and what is innately
rewarding to them is so powerful. As a manager, it’s
your job to identify those interests and channel that
employee’s intensity to the right priority to create a
frictionless output opportunity.
Anthony K. Tjan, CEO, Managing Partner and Founder
of the venture capital firm Cue Ball,
13
Incentives to
change and perform
-The Challenge with Alignment of Interests-
Dependency on Incentives to Embrace Change
•  Financial and tangible rewards
•  Market competitive benefits
•  Recognition for results
Outcome Based
14
How Policy can
misalign interests
“Many organizations say they respect and trust their
people to do the right thing, but they undermine that
statement by doing X, Y, and Z. The misalignments exist
not because the statements are false: these companies
believe what they say. The misalignments occur because
years of ad hoc policies and practices have become
institutionalized and have obscured the firm’s underlying
values.”
Jim Collins-Aligning Action and Values
15
Leading through
change is not easy
Dr. Kathleen K. Reardon, Dr. Kevin J. Reardon,
and Dr. Alan J. Rowe-LEADERSHIP STYLES FOR THE
FIVE STAGES OF RADICAL CHANGE
16
Leadership style
How Do We Choose?
17
The Power of
purpose
-Emerging Body of Data Validates-
Leaders who infuse a sense of Higher Purpose
into an organization drive performance by
multiples.
18
The Data
Kouzes and Posner’s research showed that companies
when compared to their competitors without higher
purpose:
•  grew revenues more than 4X
•  created jobs 7X faster than their competition.
•  grew their stock price 12X faster than those without
values and purpose.
•  created 750% higher profit growth
19
Exponential
•  Dan Pink: MIT’s and the Federal Reserve’s research
shows that money is a less effective driver than purpose
in high cognitive functions. Dan Pink's Video
https://www.youtube.com/watch?
feature=player_embedded&v=u6XAPnuFjJc#
•  In Built to Last, James Collins and Jerry Porras:
Purpose driven companies outperformed the general
market and comparison companies by 15X and 6X
respectively.
20
Across Financial
Metrics
•  In Corporate Culture and Performance, Harvard
professors John Kotter and James Heskett found that,
compared to their peers-
•  400% higher revenues
•  700% greater job growth
•  1,200% higher stock prices and
•  Significantly faster profit performance
21
Counter intuitive
In Firms of Endearment, marketing professor Rajendra
Sisodia and his co-authors-companies that put
employees’ and customers’ needs ahead of shareholders’
desires-
•  outperform conventional competitors in stock-market
performance by 8X.
22
Spence Sums it Up
Leaders who have a clearly articulated
purpose and are driven to make a
difference can inspire people to overcome
insurmountable odds!
Roy M. Spence Jr. in It’s Not What You Sell, It’s
What You Stand for.
23
purpose Based
Organizations
24
How to infuse
Purpose
Organizational Leaders
•  Trained in a proven leadership behavioral framework
•  Train the next generation of leaders in the same
framework
Leaders create a culture of purpose, your chosen
purpose.
25
The Framework
•  30 Years of Research
•  Validated across geographies and industries
-Based Upon-
5 Practices
10 Commitments
30 Behaviors
26
The practices
•  Inspire a Shared Vision
•  Encourage the Heart
•  Model the Way
•  Challenge the Process
•  Enable Others to Act
27
Inspire A Shared
vision
Name a Favorite Vision Statement
28
One of My Favorites
“A World Free of MS”
The National MS Society
-Why?-
•  Bold vision
•  Personal alignment
•  Not time bound -Celebrate small wins -
It’s a noble world changing goal that gives
purpose to difficult and sometimes thankless
work.29
Encourage the heart
•  Make expectations clear -up front
•  Celebrate small victories and
small demonstration of stated values
•  Personalize the recognition
•  Make it quick-small lag time
•  Say Thank You
•  Show trust in your team
•  Don’t set people up for failure or only look for problems.
•  Make standards known and standardized
30
The Heart Motivates
Can you name a boss who
encouraged your heart?
Did they align their vision with
your dreams?
31
•  A shared noble vision gives inspiring
meaning to work
•  Skill + Passion drives peak performance
Inspired people with noble purpose they
believe in and love, can achieve
incredible results
Love The Work
32
Model the way
DWYSYWD
• Do, what you say you will do!
• Credibility matters!
• Lack of trust in Leadership
reduces-commitment and effort
• Follow through and execute
33
Core values
•  Titles denote implied authority
•  Values create earned authority
•  Organizational and Personal Values
Must Align
•  Leaders must model and instill values
•  Values drive behavior
34
Core values- employee
commitment
Clarity of Personal Values
Values Drive Behavior35
Challenge the
process
•  Leaders search for opportunities to change the status quo.
•  They look for innovative ways to improve the organization.
(process and technology)
•  In doing so, they experiment and take risks.
•  And because leaders know that risk taking involves
mistakes and failures, they accept the inevitable
disappointments as learning opportunities.
•  They ask-What can we learn? Instead of affixing blame.
36
ways to challenge
the process
•  Survey Customers and Employees
•  Innovation Strategy-Have One!
•  Lean Interventions-Kazien Events
•  Facilitate constructive internal debate!
•  Know your competition
37
Enable other to act
•  Leaders foster collaboration and build spirited
teams. They actively involve others.
•  Leaders understand that mutual respect is
what sustains extraordinary efforts; they
strive to create an atmosphere of trust and
human dignity.
•  They strengthen others, making each person
feel capable and powerful.
38
Open to new ideas
39
Develop your people
40
Build competency
for the purpose
•  Ongoing development in a workforce requires a continuous and
focused flow of training to your people.
•  While the added value makes your people more interesting to
your competitors, it makes them less likely to leave since they will
recognize that the benefits from working for your company are far
from purely financial. This is true alignment of interests.
•  Finally, the ‘process’ nature of development makes your people
far more flexible and the business less prone to the disruption
caused by staff leaving.
•  People want to make a difference and showing you care enough
to help them have the skills to make a difference, makes them
more committed and more productive.
41
Development and
Turnover
Employee education has shown to
reduce voluntary turnover by as
much as 50%. -New England
College of Business
42
Presenteeism
•  "It's a vicious circle that leads to Presenteeism, rather
than absenteeism, and lower productivity. Crucially,
this lower productivity fuels the new top source of
stress, which is not having enough time to complete
their job. On any given day, there could be hundreds of
thousands of people at work who are there in body, but
not in spirit.”
•  Professor Cary Cooper, professor of organizational
psychology and health at Lancaster University
43
The Ivey Business
Journal
•  Leaders should provide challenging and meaningful
work with opportunities for career advancement. Most
people want to do new things in their job.
•  Good leaders challenge employees; but at the same
time, they must instill the confidence that the
challenges can be met.
•  Not giving people the knowledge and tools to be
successful is unethical and de-motivating; it is also
likely to lead to stress, frustration, and, ultimately,
lack of engagement.
44
What does jack
welch say?
“When you become a leader, success
is all about growing others. It’s about
making the people who work for you
smarter, bigger, and bolder.”
45
Hands On
•  Indeed, leaders who take the time to understand the needs
of their employees can provide them with the support they
require to press ahead, to deal with the challenges or issues
that might be holding them back from achieving their goals.
•  By understanding and providing employees with what they
need to succeed, leaders can build a sense of trust, thereby
strengthening the relationships they have with their
employees and consequently, the relationships employees
have with one another, leading to greater collaboration
and improved productivity.
-Tanveer Naseer- Canadian Leadership Thought Leader
46
Engagement and
purpose
Each interaction with an
employee, discussing their needs,
gives a supervisor, manager or
leader a chance to align that
employee’s individual goals with
the greater purpose of the
organization.-KLG
47
The 5 practices
•  Inspire a Shared Vision
•  Encourage the Heart
•  Model the Way
•  Challenge the Process
•  Enable Others to Act
48
Our belief
Great Leaders Can Create
A World Without
Organizational Dysfunction,
Where People are Inspired to
Achieve.
49
No matter
Whether you are:
•  Coaching for performance improvement
•  Going through a merger integration
•  Conducting performance reviews
•  Looking for a new member of your
leadership and/or management team
50
Our wish for you
Many Perfect Days!
Thank you for your time!
Questions?51

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Greenberg_Higher Purpose for Organizational Performance_14_07_14

  • 1. Purpose and performance The Case For A Purpose Based Culture For HR.com Kenneth L. Greenberg July 2014
  • 2. Your speaker Kenneth L. Greenberg, President and CEO KLG Consultants, LLC •  Ken Greenberg, a former Investment Banker and private equity professional, is the founder of KLG Consultants, LLC.  He heads the Corporate Consulting practice at KLG and besides his other academic a professional accomplishments, has a Lean Management Certification through ExpertRating.  Ken serves as a facilitator for the CEO Exchange program at the Denver Metro Chamber of Commerce, and was a board member of ExecConnect Denver. •  Ken's experience in investment banking, private equity, and private company board membership has allowed him to see a number of successful and unsuccessful ventures and organizations.  His experience led him to study and research organizational development, human capital development, and modern leadership theory. He has written a white paper and articles on the subject and studied the use of facilitation in leadership training, both academically and professionally. •  Subsequently, for KLG clients, Ken uses cutting edge assessments, facilitative training, and coaching to help all types of organizations remove impediments to success and increase performance. 2
  • 3. What is orgd •  Organizational development is an ongoing, systematic process of implementing effective organizational change. •  It is interdisciplinary in nature and draws on sociology, behavioral psychology, and theories of motivation, learning, and personality. •  Organizational development is a growing field that is responsive to many new approaches including Positive adult professional development. 3
  • 5. What’s Lean got to say? An Organization's Purpose – Provide value to customers in order to prosper. Lean Enterprise Institute 5
  • 6. home depot and the customer “We removed tasks. For example, we replaced more than 200 weekly reports and e- mails with one, single-page weekly scorecard. Reports don't buy hardware; customers do, so I wanted our associates focused on customers. We backed that up with training and rewards, working hand in hand with HR.” Marvin Ellison, EVP Home Depot 6
  • 7. Assessing Culture •  What is the as is state- WIFME or Customer Focused •  Custom Stakeholder Survey (Must be Anonymous and data safe) •  10 Scale and text box answers •  Must ask key questions about perception of products and services •  Must ask key questions about leadership and management •  Must ask key questions about voluntary turnover indicating behaviors and presentisim 7
  • 8. Its Starts with Leaders •  Decide to create the culture- •  The leaders of an organization must decide that customer service will be a top priority. They need to establish this culture at all levels. The decision will come from the top of the organization and permeate through all levels. It must be done on purpose. •  Michael Ray Hopkin 8
  • 9. Leadership teams and the bench matter According to McKinsey and Company Building trust and leadership skills helps merging companies exceed their value-creation target by 30 percent. 9
  • 10. Assessing leaders and the bench •  Evidence based normed assessments •  Look at leadership potential •  Predictive of behavior as a leader especially the ability to drive change Also use- •  360° Surveys of leadership skills •  Evidence of leadership readiness and identification of skill gaps •  Deliverables to HR and Senior Leadership. 10
  • 11. Leading through Change Culture transformations are huge change events! Leaders set the limits of success in their organizations by how they manage change. (Research by JG Bruhn- Health Care Management) 11
  • 12. Making Cultural Change Happen •  Leaders are constantly challenged with the daunting task of managing ongoing change and transition. •  Not only do they need to cope with the structural side (creating a vision, reorganizing, and restructuring), but they are also on the front lines of the people part of change (grieving, letting go, building hope, and learning). •  HR professionals can help leaders and managers throughout the organization, make change happen. -Kerry Bunker, Leading Through Transitions 12
  • 13. Aligning Interest •  Align interests to responsibilities where possible. Know the core interests of your top employees. What naturally drives someone and what is innately rewarding to them is so powerful. As a manager, it’s your job to identify those interests and channel that employee’s intensity to the right priority to create a frictionless output opportunity. Anthony K. Tjan, CEO, Managing Partner and Founder of the venture capital firm Cue Ball, 13
  • 14. Incentives to change and perform -The Challenge with Alignment of Interests- Dependency on Incentives to Embrace Change •  Financial and tangible rewards •  Market competitive benefits •  Recognition for results Outcome Based 14
  • 15. How Policy can misalign interests “Many organizations say they respect and trust their people to do the right thing, but they undermine that statement by doing X, Y, and Z. The misalignments exist not because the statements are false: these companies believe what they say. The misalignments occur because years of ad hoc policies and practices have become institutionalized and have obscured the firm’s underlying values.” Jim Collins-Aligning Action and Values 15
  • 16. Leading through change is not easy Dr. Kathleen K. Reardon, Dr. Kevin J. Reardon, and Dr. Alan J. Rowe-LEADERSHIP STYLES FOR THE FIVE STAGES OF RADICAL CHANGE 16
  • 17. Leadership style How Do We Choose? 17
  • 18. The Power of purpose -Emerging Body of Data Validates- Leaders who infuse a sense of Higher Purpose into an organization drive performance by multiples. 18
  • 19. The Data Kouzes and Posner’s research showed that companies when compared to their competitors without higher purpose: •  grew revenues more than 4X •  created jobs 7X faster than their competition. •  grew their stock price 12X faster than those without values and purpose. •  created 750% higher profit growth 19
  • 20. Exponential •  Dan Pink: MIT’s and the Federal Reserve’s research shows that money is a less effective driver than purpose in high cognitive functions. Dan Pink's Video https://www.youtube.com/watch? feature=player_embedded&v=u6XAPnuFjJc# •  In Built to Last, James Collins and Jerry Porras: Purpose driven companies outperformed the general market and comparison companies by 15X and 6X respectively. 20
  • 21. Across Financial Metrics •  In Corporate Culture and Performance, Harvard professors John Kotter and James Heskett found that, compared to their peers- •  400% higher revenues •  700% greater job growth •  1,200% higher stock prices and •  Significantly faster profit performance 21
  • 22. Counter intuitive In Firms of Endearment, marketing professor Rajendra Sisodia and his co-authors-companies that put employees’ and customers’ needs ahead of shareholders’ desires- •  outperform conventional competitors in stock-market performance by 8X. 22
  • 23. Spence Sums it Up Leaders who have a clearly articulated purpose and are driven to make a difference can inspire people to overcome insurmountable odds! Roy M. Spence Jr. in It’s Not What You Sell, It’s What You Stand for. 23
  • 25. How to infuse Purpose Organizational Leaders •  Trained in a proven leadership behavioral framework •  Train the next generation of leaders in the same framework Leaders create a culture of purpose, your chosen purpose. 25
  • 26. The Framework •  30 Years of Research •  Validated across geographies and industries -Based Upon- 5 Practices 10 Commitments 30 Behaviors 26
  • 27. The practices •  Inspire a Shared Vision •  Encourage the Heart •  Model the Way •  Challenge the Process •  Enable Others to Act 27
  • 28. Inspire A Shared vision Name a Favorite Vision Statement 28
  • 29. One of My Favorites “A World Free of MS” The National MS Society -Why?- •  Bold vision •  Personal alignment •  Not time bound -Celebrate small wins - It’s a noble world changing goal that gives purpose to difficult and sometimes thankless work.29
  • 30. Encourage the heart •  Make expectations clear -up front •  Celebrate small victories and small demonstration of stated values •  Personalize the recognition •  Make it quick-small lag time •  Say Thank You •  Show trust in your team •  Don’t set people up for failure or only look for problems. •  Make standards known and standardized 30
  • 31. The Heart Motivates Can you name a boss who encouraged your heart? Did they align their vision with your dreams? 31
  • 32. •  A shared noble vision gives inspiring meaning to work •  Skill + Passion drives peak performance Inspired people with noble purpose they believe in and love, can achieve incredible results Love The Work 32
  • 33. Model the way DWYSYWD • Do, what you say you will do! • Credibility matters! • Lack of trust in Leadership reduces-commitment and effort • Follow through and execute 33
  • 34. Core values •  Titles denote implied authority •  Values create earned authority •  Organizational and Personal Values Must Align •  Leaders must model and instill values •  Values drive behavior 34
  • 35. Core values- employee commitment Clarity of Personal Values Values Drive Behavior35
  • 36. Challenge the process •  Leaders search for opportunities to change the status quo. •  They look for innovative ways to improve the organization. (process and technology) •  In doing so, they experiment and take risks. •  And because leaders know that risk taking involves mistakes and failures, they accept the inevitable disappointments as learning opportunities. •  They ask-What can we learn? Instead of affixing blame. 36
  • 37. ways to challenge the process •  Survey Customers and Employees •  Innovation Strategy-Have One! •  Lean Interventions-Kazien Events •  Facilitate constructive internal debate! •  Know your competition 37
  • 38. Enable other to act •  Leaders foster collaboration and build spirited teams. They actively involve others. •  Leaders understand that mutual respect is what sustains extraordinary efforts; they strive to create an atmosphere of trust and human dignity. •  They strengthen others, making each person feel capable and powerful. 38
  • 39. Open to new ideas 39
  • 41. Build competency for the purpose •  Ongoing development in a workforce requires a continuous and focused flow of training to your people. •  While the added value makes your people more interesting to your competitors, it makes them less likely to leave since they will recognize that the benefits from working for your company are far from purely financial. This is true alignment of interests. •  Finally, the ‘process’ nature of development makes your people far more flexible and the business less prone to the disruption caused by staff leaving. •  People want to make a difference and showing you care enough to help them have the skills to make a difference, makes them more committed and more productive. 41
  • 42. Development and Turnover Employee education has shown to reduce voluntary turnover by as much as 50%. -New England College of Business 42
  • 43. Presenteeism •  "It's a vicious circle that leads to Presenteeism, rather than absenteeism, and lower productivity. Crucially, this lower productivity fuels the new top source of stress, which is not having enough time to complete their job. On any given day, there could be hundreds of thousands of people at work who are there in body, but not in spirit.” •  Professor Cary Cooper, professor of organizational psychology and health at Lancaster University 43
  • 44. The Ivey Business Journal •  Leaders should provide challenging and meaningful work with opportunities for career advancement. Most people want to do new things in their job. •  Good leaders challenge employees; but at the same time, they must instill the confidence that the challenges can be met. •  Not giving people the knowledge and tools to be successful is unethical and de-motivating; it is also likely to lead to stress, frustration, and, ultimately, lack of engagement. 44
  • 45. What does jack welch say? “When you become a leader, success is all about growing others. It’s about making the people who work for you smarter, bigger, and bolder.” 45
  • 46. Hands On •  Indeed, leaders who take the time to understand the needs of their employees can provide them with the support they require to press ahead, to deal with the challenges or issues that might be holding them back from achieving their goals. •  By understanding and providing employees with what they need to succeed, leaders can build a sense of trust, thereby strengthening the relationships they have with their employees and consequently, the relationships employees have with one another, leading to greater collaboration and improved productivity. -Tanveer Naseer- Canadian Leadership Thought Leader 46
  • 47. Engagement and purpose Each interaction with an employee, discussing their needs, gives a supervisor, manager or leader a chance to align that employee’s individual goals with the greater purpose of the organization.-KLG 47
  • 48. The 5 practices •  Inspire a Shared Vision •  Encourage the Heart •  Model the Way •  Challenge the Process •  Enable Others to Act 48
  • 49. Our belief Great Leaders Can Create A World Without Organizational Dysfunction, Where People are Inspired to Achieve. 49
  • 50. No matter Whether you are: •  Coaching for performance improvement •  Going through a merger integration •  Conducting performance reviews •  Looking for a new member of your leadership and/or management team 50
  • 51. Our wish for you Many Perfect Days! Thank you for your time! Questions?51