Your company’s culture is an important factor in attracting and retaining top talent. In this webinar, OnPoint Consulting President, Rick Lepsinger covers the importance of company culture, what factors contribute to a strong culture and how to lead cultural transformation.

1. EXTREME MAKEOVER
T R A N S F O R M I N G
Your Company’s Culture!

2. Welcome to
EXTREME MAKEOVER:
Transforming Your Company’s Culture
Rick Lepsinger, President
rlepsinger@OnPointConsultingLLC.com | 212.472.8081

3. —Frances Frei and Anne Morriss, Harvard Business Review
Culture tells us what to do when
the CEO isn’t in the room, which, of
course, is most of the time.

4. OBJECTIVES
● Understand why company culture
is important
● Learn what factors contribute to culture
● Learn how to lead cultural change
● Understand how to ensure change lasts

5. OUR EXPERIENCE

6. WHAT CULTURE IS
A set of shared
attitudes, values, goals
and practices that
characterizes an organization

7. WHAT CULTURE IS
A way of thinking,
behaving or working

8. WHAT CULTURE IS
Culture is not an intangible concept that is
difficult to define and communicate—
it is concrete and measurable

9. WHAT CULTURE IS
Company culture is known by observing an
organization’s work processes and systems
as well as the behavior of
leaders at all levels

10. Why Company Culture is Important

11. 1.
Nearly 45% of Millennials say they
are planning to look for a new job
in the next year.
Research shows a disconnect between
what these employees expect—better
work-life balance, recognition, loyalty
and respect—and what employers
actually provide.
Source: Aon Hewitt, 2015 employee engagement
study
HIRING

12. Employees are more likely to stay when
they feel fulfilled, decreasing the costs
of recruiting, hiring and training.
Estimated cost of replacing an entry-
level employee: 40% of salary
Estimated cost of replacing a senior-
level employee: 400% of salary
Source: ERE Media
2. RETENTION

13. Unhappy workers cost U.S. businesses
$450 billion-$550 billion in lost
productivity each year, according to a
2014 Gallup State of the American
Workplace report
3. PRODUCTIVITY

14. What Factors Contribute to
Organizational Culture

15. 1.
Employees know the company’s
mission and key values and rely
on them when making important
decisions.
CLARITY
JET BLUE MISSION STATEMENT
Up for good: “In the air and on the ground,
we’re committed to bettering the lives of our
customers, crewmembers and communities—
and inspiring others to do the same.”

16. 2.
The mission and key values are
translated into specific behaviors and
reinforced by organizational systems.
COMMUNICATION
THE ZAPPOS CULTURE BOOK
Zappos employees write a culture book
every year describing how they feel about
working there and how they reinforce the
company’s 10 core values every day.
The book is given to anyone who tours the
company.

17. 3.
The company’s leaders
reinforce mission and key
values at every opportunity,
both in words and actions.
REINFORCEMENT

18. 4.
Leadership addresses policies
or behaviors that do not fit
with the mission or key
values.
CONSISTENCY

19. NOT A FIT?
WE’LL PAY YOU TO QUIT
New employees at Zappos are
offered $2,000 to quit after the
first week of training if they decide
the job isn’t for them.

20. -Simon Sinek, author
Customers will never love a
company until the employees love
it first.
LEADING COMPANY CULTURE

21. Know What You’re Up Against
70% of change initiatives fail, research from
John Kotter found in 1995. More than 20
years later, the statistic remains true.
It’s not because employees don’t want to change. They’re just
not ready—and it’s the leader’s job to get them there.

22. 1. Define the Ideal Future State
Clarify or reaffirm the mission and vision
Ensure this picture of the future is shared by
employees at all levels of the organization

23. 2. Identify Critical Success Factors
With this outcome in mind ask,
“What are the behaviors and
competencies that will ensure we
achieve this outcome?”

24. 3. Shape Behavior
Communicating expectations is an important step
but it is not the only step
The old behaviors must be replaced with the new!
The primary responsibility of facilitating change in behavior
is the managers, and managers have 3 tools
to help “shape behavior”

25. Coaching and feedback. People need to know
when they are on track and what areas need
improvement. They are also likely to need
guidance to help transition to the new
behaviors.
Recognition and rewards. Help reinforce positive
behavior change. It sends the message, “That’s
what good looks like,” and “You can do it.”
Consequences. Just as there needs to be rewards
to reinforce using the new behaviors, there also
need to be consequences to discourage the use
of old behaviors.
3 TOOLS TO
SHAPE BEHAVIOR

26. 4. Align Systems and Processes
Change in individual behavior is important
but not sufficient
Use systems and work processes to
communicate and encourage the desired
behaviors across the organization

27. Five critical questions leaders must be
able to answer.
TAKING THE
UNCERTAINTY OUT OF
CHANGE

28. What do we want to accomplish and why is it important?
Why Is This Change Necessary?1.

29. Determine how each person or department fits into the bigger
picture … translate goals into behaviors.
What Will Each Person Be Expected to Do?2.

30. Do we have the funding, resources and time? If not, what can we do
to reallocate?
Am I competent to make this change?
Will We Be Able to Do It?3.

31. What are the key milestones?
What challenges do we expect, and how will we address them?
How Will We Manage the Transition?4.

32. Provide frequent updates through a shared project schedule.
Where Are We In the Process?5.

33. Employee statements that reflect positive reasons for
supporting the change
ENCOURAGE CHANGE TALK!
● Explore importance and confidence
● Conduct a pro/con analysis
● Press for specifics
● Reinforce positive change statements

34. EXPLORE IMPORTANCE & CONFIDENCE!
● Ask, “How important do you think making this
change is, on a scale from 1 to 10?”
● Respond by asking, “Why is it not lower?”
● Ask, “How confident are you in your ability to
make this change, on a scale from 1 to 10?”
● Respond by asking, “Why is it not higher?” and
then build confidence

35. PRO/CON ANALYSIS

36. 1.
ENSURING CULTURAL CHANGE
ADJUST SYSTEMS &
WORK PROCESSES
Systems and work processes ensure the use of
new behaviors gets to “critical mass”
They outline how people should work with internal
and external stakeholders—they provide
guidelines in which the new behaviors are
applied
They institutionalize the behavior and ensure the
change moves beyond a few individuals
scattered around the organization

37. 2. DOCUMENT
THE CULTURE
Update internal & external mission
documents
Encourage employees to get involved in
promoting culture (for example, Motley
Fool Culture Blog)
ENSURING CULTURAL CHANGE

38. 3. HIRE FOR
CULTURAL FIT
Update job descriptions
Use behavioral-based interviews that focus
on critical competencies
Ask open-ended questions that reveal how
candidates deal with uncertainty and
solve problems
Give employees an opportunity to interact
with candidates
ENSURING CULTURAL CHANGE

39. THANK YOU!
Questions?
Feel free to let us know.
www.OnPointConsultingLLC.com | 203.533.5128