2. Bury me on my face “ said Diogenes; and when he was asked why he replied “ because in a little while everything will be turned upside down” Diogenes 412-323BC Greek philosopher
3. Ameliorating the organization through calculated maneuvering built upon change management Training courses are the last thing we should do Communicate like a marketing manager New talent without culture change is waste of money Balance the consequences not just the measures Culture eats strategy for breakfast Bring the people with us Social networks enhance innovation
4. Truths about change & engagement Changes typically fail …only 30% achieve bottom line improvement …only 50% achieve share price increase Productivity drops by 25-50% during change >70% people don’t believe their orgs care about their wellbeing during change
5. The differentiating core change mgt competence for competitive companies is… Harnessing an organisation of people who thrive on the challenges of ambiguity, complexity and uncertainty, and who can successfully and rapidly implement strategic and operational changes(INSEAD study 2004)
6. For a few years we had… Worst strike record in Britain – 50% of all UK (84,000 days) Safety record 3 x worse than whole construction industry 16% of workforce experienced bullying & harassment Losses of nearly £2m per day Months from not being a going concern Quality of service very poor…failed 1st class since 1992 Lost over 28 million letters a year 10,000 people off sick every day Poor pay / 6 day week
7. 3 years later… 195,000 jobs changed 35,000 people left organisation – voluntarily Best quality of service for decade 92% reduction in strike days lost…plus symbolic ballot win £537m operating profit…and growing £1.5bn gross cost reduction E.g. reduced HR costs by 40% Paid all our people >£1,000 ‘Share in Success’ bonus Pay rise to so that £300 a week for a 5 day week
8. Performance needs analysis Why, why, why, why, why… ccc yyyy zzz aaa bbb xxxx Knowledge Skills “the problem or performance issue” Motivation Environment
9. Grab people’s attention Prize draw for all those with full attendance each 6 months 37 new Ford Focus cars in Year 1 (and in year 2!) 75 x £2,000 holidays Fun way of raising serious issue Positive – attendance not absence High profile media coverage
14. Leave for a better lifeCAPABILITIES Operators know best Low commercial acumen STRUCTURE Chains of command Escalate decisions PROCEDURES Slow Complex Time consuming Paperwork INFORMATION Difficult to access Out of date Time consuming PERFORMANCE MANAGEMENT Mediocrity Limited consequence Game the system Disempowered Unlearn Frustrated Not in control Low expectations
15. What is rewarded or punished? How serious the consequences are when performance is off-track - + + Clearance Cost These measures are primary drivers of GM behaviour Profit How objective the measure is People Mails integrity These measures don’t drive GM behaviour, despite being on the scorecard Customer - 2008
16. Culture Culture impacts strategy: new strategies will fail unless the underlying beliefs and assumptions change to support the new strategy Leaders impact culture much more than process, structure, systems etc. Leaders impact culture most by : What they demonstrate is important How they react to a crisis How they treat their own How/who they reward or punish How/who they recruit or let go Edgar Schein, Organizational Culture and Leadership, Jossey Bass Publishers, San Francisco, 1997.
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18. We would rather be ruined than changed,We would rather die in our dreadThan climb the cross of the momentAnd let our illusions die. — W. H. Auden
33. B A C Awareness Buy-in Committment What is the organisation trying to achieve? Does this make sense for me? Should I change? Do I know what success looks like? Have I adopted the new way of working? Individual Response cycle Individual Response cycle Individual transition process
35. Negative - .27 Intellectual capital & innovation Incremental Innovation Radical Innovation Organisation capital Strong .25 Social capital Strong .54 V Strong .84 Strong .30 Human capital (Source: Subramanium and Youndt)
36. Negative - .27 Intellectual capital & innovation Incremental Innovation Radical Innovation Organisation capital Strong .25 Social capital Strong .54 V Strong .84 Strong .30 Human capital (Source: Subramanium and Youndt) Strong human capital on its own actually hinders radical innovation, but mixed with strong social capital it can strongly enable radical innovation
37. High human capital 5.5 5 Low humancapital 4.5 Radical Innovative Capability 4 3.5 3 2.5 2 High Low Social capital Hypothesis by Subramanium and Youndt
38. Both …. And …. Why & what Culture & strategy Structures & behaviours Consequences & measures Talent pipeline & organisation Social networks & formal networks Marketing & engaging Yin & yan
39. Holistic solutions… Strategy Process Reward Structure People “Organisation is more than just structure” “Different strategies lead to different organisations” “All parts must align for the organisation to be effective” Galbraith
40. “Give a man a fish, feed him for a day. Teach a man to fish, feed him for a lifetime.” Lao Tzu
Knowledge/skills training courses AND other performance solutions including motivation and environment
Improving the talent pipeline on its own is not enough and can be waste of money if you don’t also prepare or change the culture - 33% versus 16% -Antibodies
Leaders are the primary embedders, reinforcers and transmitters of culture.
