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Developing a Culture to
Drive Performance



 Chris Murumets
 CEO
 LOGiQ3 Corp.
My Goal Today


  1. Make clear my opinions on culture and how that
     ties to performance – people and organizational
  2. Tell the LOGiQ3 culture story
  3. Provide specific steps you can take if you want
     to hop on a similar path.
  4. Share some of our reference material and
     information sources.




                        2
I am Not



    An HR expert
    An organizational design expert
    A person who has dedicated his life to the
    pursuit of human behaviour and
    psychology
    An Actuary
    An Underwriter



                      3
What I Will Do



    Tell a story about how I helped build a company
    in extremely difficult economic times, in a specific
    industry that didn’t exist before and while keeping
    a lot of very talented people engaged
    Explain how we have created a passion about
    the organization (and why that can be good and
    bad)
    Describe how this has allowed us to be one of
    Canada’s fastest growing companies for the past
    4 years


                          4
How I Will Wrap Up


    List very specific steps we took, and in my opinion,
    every organization should take, to build a
    performance-driven culture




                          5
Reality of today


    We are a knowledge-based society / industry.
            It’s all about people!
    It is difficult to retain quality people
    People turnover is expensive
    As an organization, you MUST differentiate in non-
    traditional ways
    “Job for life” is long gone
    Everyone has a voice, and a large audience.




                         6
The Problem –
The “soul-less” organization

  Historically, the majority of organizations lacked a
  corporate soul.

   People want to connect to people, not a
   company. It’s personal.
   If a company is a product of its people, it must
   have a soul, a personality, a belief system.
   Companies, big and small, are striving to make
   that personal connection




                           7
The Holstee Manifesto




                        8
G Adventures
- Core Values




                9
HP 2012 Slogan…




                  10
THE JOURNEY / QUEST /
PILGRIMAGE …

             11
The LOGiQ3 Journey


   First came “Freedom to Think”
          The dream of taking operational risk from
          others and building a cool business
          around it

   Next came LOGiQ3

   Then we had to figure out how to make
   money … which quickly got back to people




                         12
When culture became king
 - Delivering Happiness

                 The CEO and Founder, Tony
                 Hsieh, claimed that a focus
                 on people and culture can
                 create value and a
                 fantastic business.

                 This brought a very real
                 culture conversation to
                 LOGiQ3.




                    13
The Zappos Way – not exactly for
insurance, but a start




                     14
Zappos quirky




                15
Delivering Happiness – Key Quotes


    The hardest thing to do is build trust, but if the trust
    exists, you can accomplish so much more.
    The best team members have a positive influence
    on one another and everyone they encounter.
    They strive to eliminate cynicism and negative
    interactions.
    The Zappos communication policy “Be Real and
    use your best judgment.”
    A quote from Bertice Berry “When you walk with
    purpose, you collide with Destiny”


                           16
Fast Company September 2010 –
The Introduction to Maxims

                   Nine years ago, he recalls, "Phil wanted us to
                   work on a new mission statement." The
                   previous one -- "To be the No. 1 sports-and-
                   fitness company in the world" -- was old news.
                   Parker's choice: "To bring inno-vation and
                   inspiration to every athlete in the world. (And if
                   you have a body, you're an athlete.)" He also
                   put together nine maxims, quirky guiding
                   principles for Nike. The one he thinks about
                   most is No. 6, "Be a sponge. Curiosity is life.
                   Assumption is death. Look around." It's a nod to
                   his grandmother Helen Parker, who spent hour
                   upon hour with her quiet grandson, walking in
                   the woods, sharing her observations about the
                   world. "She was engaged and learning new
                   things until she passed," Parker says. "That
                   was always her advice to me. And it really
                   worked.”


                   17
Design Thinking


                  “A discipline that uses the
                  designer’s sensibility and
                  methods to match people’s
                  needs with what is
                  technologically feasible and
                  what a viable business strategy
                  can convert into customer value
                  and market opportunities” – Tim
                  Brown, IDEO




                     18
The Design of Business – Key Quotes


    The traditional structure, functional:
           “People define their work as “my responsibilities”, not
           “our responsibilities”.
    Alternative structure – project-based:
           “Flow to the work”
           “But the solution is expected to come from the team,
           not the quarterback”
           “Rewards accrue not to those who run big businesses
           or large staff but to those who solve wicked problems
           – those with no fixed definition or solution.”
           “A tough design challenge could be one of the best
           retention tools a company has today for its best
           innovators.”

                              19
Mojo, Maslow and a certain Joie de
Vivre

                                 Self
                             Actualization




                                Esteem




                            Social/Belonging




                                 Safety




                             Physiological




                     20
Relationship Truth 1 :
The Employee Pyramid


                Meaning
            (Transformation)    Creates Inspiration



              Recognition
               (Success)            Creates Loyalty


                                         Creates Base
                Money
               (Survival)                Motivation


                               21
Relationship Truth 2 :
The Customer Pyramid

                 Meets
             Unrecognized           Creates
                 Needs
            (Transformation)        Evangelism


             Meets Desires            Creates
              (Success)
                                      Commitment



           Meets Expectations              Creates
               (Survival)
                                           Satisfaction

                               22
Relationship Truth 3 :
The Investor Pyramid


                    Legacy
               (Transformation)    Creates Pride of Ownership



                 Relationship              Creates Confidence
             Alignment (Success)




                                              Creates Trust
        Transaction Alignment (Survival)




                                  23
The final transformational pyramid for
Joie de vivre




                       24
Peak – Key Quotes


   The biggest differentiator between an average
   company and a great company is the motivation
   of the people within the company.
   Gulati and Kletter conclude that it is just as
   important for a company to manage, monitor,
   and measure their relationship capital as it is to do
   the same with their financial capital




                         25
In Pursuit of Elegance – Why the Best
Ideas Have Something Missing

                            The “eureka” moment: While
                            no one yet knows what exactly
                            that process is, what is
                            important to know is that
                            putting pressure on ourselves
                            to speed up or artificially
                            influence our brains to work
                            harder, or more intensely, or
                            more quickly, only slows down
                            our ability to arrive at new
                            insights. Ironically, when we
                            let go, when we escape, either
                            physically or mentally, we
                            actually speed up the
                            transformational process.

                       26
DOES IT WORK? DOES IT MATTER?



             27
The Result

    Zappos
          Zappos went from 0 to a $1.2 billion dollar
          valuation and sale to Amazon.com, in 10 years.
    Joie de vivre Hotels
          California’s largest boutique hotel collection. All
          Joie de vivre businesses combined have an
          annual revenue of $240 million.
    G Adventures
          Over 100 million in annual revenue
          One of the largest adventure tour companies,
          globally



                            28
The Result - Nike




                    29
Can’t talk Design and not mention
Apple

    THE design focused company
    Apple stock (Jobs Returns in 1997)
          April 17, 2003 – $6.56
          September 6, 2012 - $676.27
    The famous “Live before you Die” Stanford
    Address - the key points to me:
          Dropping out and taking a calligraphy class
          At approx. the 5 minute mark of the speech
          Jobs makes the comment on connecting
          the dots and trusting they will connect in the
          future.
                          30
WHAT DOES IT MEAN TO
LOGIQ3? …. HOW DID WE
PROCEED…
            31
Simplify, simplify, simplify


 We needed to simplify our purpose. Not a vision or
 mission, but why do we show up every morning:
 1. Make money
 2. Have fun
 3. Change an industry

 We needed to make specific promises:
 1. Coworkers – We provide you the best job you’ve
    ever had and you deliver operational excellence in
    everything you do.
 2. Clients – we will be your favourite vendor.
                         32
LOGiQ3 Maxims



                         As we
  Our Quirky          matured, we
    Guiding              added
   Principles           specific
  - Not 10 of          definitions
them, but 11 -            and
                      acceptable
                      behaviours
                         to the
                        maxims.


                 33
The Inspiration Wall




                            This process
                            got everyone
                            involved and
                            has become
                              an annual
                               exercise




                       34
Find a Culture Champion -
introducing…. Carmela Tedesco




                    35
ORGANIZATIONAL DESIGN


            36
A Traditional Org Chart




                      37
The LOGiQ3 Work Flow




                       38
WHAT ELSE?


             39
Challenges along the way


   Passion vs. emotion
   Assuming it all made sense to everyone (silence is
   rarely acceptance)
   Over analyzing. You can Google whatever you
   want and get millions of hits; why it’s a good thing
   and a bad thing. Trust your gut!
   Move too slowly
   Expect some failure, and that it will take a long
   time



                         40
Kudos – the small things




                      41
The Culture book




                   42
The Great Workplace Model




                   43
Culture Teams (for broad participation)


   1.   Talent Scout
   2.   Learning
   3.   Health & Wellness
   4.   New Employee Mentor
   5.   Giving Back
   6.   SoundBites (Communication)
   7.   Clubs
   8.   Kudos (Rewards & Recognition)
   9.   F2HF (Freedom to Have Fun)


                           44
The Culture Index


    We will measure culture on a regular basis.
    Eventually we will expand to include other
    dimensions, i.e. client feedback, but needed to
    start small.
    Today, we ask one question (two parts), every
    month.
           Are you proud to work for LOGiQ3?
           Why?




                         45
NOW WHAT?


            46
Connect the dots, your way!


    There is a lot of activity out there in this space
         Find what you like, what makes sense for
         your organization, and take it.
    Create/define/grow your corporate soul




                           47
Do this…


  1. Create very simple, personal goals. This starts to
     connect the people. Small bite size steps is
     critical.
  2. Develop your quirky guiding principles. (maxims).
     Absolutely key! Steal stuff you like from others.
  3. Create constant conversation around maxims to
     embed in DNA.
  4. Align maxims, actions and behaviours.
  5. Review organizational design and consider
     project based structure (many variations of this is
     possible)

                         48
REFERENCE MATERIAL


            49
If you’re interested in the subject:


    Books
         The Design of Business – Why design thinking is the next
         competitive advantage, Roger Martin
         Peak – How Great Companies Get Their Mojo from
         Maslow, Chip Conley (MANY other references at the
         end of every chapter)
         Delivering Happiness, Tony Hsieh
         Good to Great & Great by Choice, Jim Collins
         The Progress Principle, Teresa Amabile and Steven
         Kramer
         What to ask the person in the Mirror, Robert Steven
         Kaplan
         In Pursuit of Elegance – Why the Best Ideas Have
         Something Missing, Matthew E. May
                             50
If you’re interested in the subject
(cont’d):

    Magazines / Sites
         Fast Company – fastcompany.com
                 Co.Design – fastcodesign.com
                 Co.Exist – fastcoexist.com
                 Co.Create – fastcocreate.com
         Inc- inc.com
         Harvard business Review – hbr.org
                 Of greater value, daily email
         Peter Bregman – peterbregman.com
         The Mix Fix – managementexchange.com
         TED – ted.com


                         51
If you’re interested in the subject
(cont’d):

    Twitter
          Fast Company – @fastcompany
                  Co.Design – @fastcodesign
                  Co.Exist – @fastcoexist
                  Co.Create – @fastcocreate
          Inc - @inc
          LDRLB - @ldrlb
          Stanford Business - @stanfordbiz
          Profit Magazine - @profit_magazine
          Harvard Biz Review - @harvardbiz
          American Management Association - @amashift


                          52
Thank You


  Chris Murumets, CEO, LOGiQ3

  Email:          chris.murumets@logiq3.com
  LinkedIn:       Chris Murumets
  Twitter:        @cmurumets
  LOGiQ3 Corp
  Website:       http://www.logiq3.com
  Blog:          http://www.logiq3.com/blog
  Twitter: @LOGiQ3
  Facebook:      http://www.facebook.com/#!/pages/LOGiQ3-
                 Corp/221087034601971
  LinkedIn:      http://www.linkedin.com/company/logiq3-corp-



                                53

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Developing a Culture to Drive Performance

  • 1. Developing a Culture to Drive Performance Chris Murumets CEO LOGiQ3 Corp.
  • 2. My Goal Today 1. Make clear my opinions on culture and how that ties to performance – people and organizational 2. Tell the LOGiQ3 culture story 3. Provide specific steps you can take if you want to hop on a similar path. 4. Share some of our reference material and information sources. 2
  • 3. I am Not An HR expert An organizational design expert A person who has dedicated his life to the pursuit of human behaviour and psychology An Actuary An Underwriter 3
  • 4. What I Will Do Tell a story about how I helped build a company in extremely difficult economic times, in a specific industry that didn’t exist before and while keeping a lot of very talented people engaged Explain how we have created a passion about the organization (and why that can be good and bad) Describe how this has allowed us to be one of Canada’s fastest growing companies for the past 4 years 4
  • 5. How I Will Wrap Up List very specific steps we took, and in my opinion, every organization should take, to build a performance-driven culture 5
  • 6. Reality of today We are a knowledge-based society / industry. It’s all about people! It is difficult to retain quality people People turnover is expensive As an organization, you MUST differentiate in non- traditional ways “Job for life” is long gone Everyone has a voice, and a large audience. 6
  • 7. The Problem – The “soul-less” organization Historically, the majority of organizations lacked a corporate soul. People want to connect to people, not a company. It’s personal. If a company is a product of its people, it must have a soul, a personality, a belief system. Companies, big and small, are striving to make that personal connection 7
  • 11. THE JOURNEY / QUEST / PILGRIMAGE … 11
  • 12. The LOGiQ3 Journey First came “Freedom to Think” The dream of taking operational risk from others and building a cool business around it Next came LOGiQ3 Then we had to figure out how to make money … which quickly got back to people 12
  • 13. When culture became king - Delivering Happiness The CEO and Founder, Tony Hsieh, claimed that a focus on people and culture can create value and a fantastic business. This brought a very real culture conversation to LOGiQ3. 13
  • 14. The Zappos Way – not exactly for insurance, but a start 14
  • 16. Delivering Happiness – Key Quotes The hardest thing to do is build trust, but if the trust exists, you can accomplish so much more. The best team members have a positive influence on one another and everyone they encounter. They strive to eliminate cynicism and negative interactions. The Zappos communication policy “Be Real and use your best judgment.” A quote from Bertice Berry “When you walk with purpose, you collide with Destiny” 16
  • 17. Fast Company September 2010 – The Introduction to Maxims Nine years ago, he recalls, "Phil wanted us to work on a new mission statement." The previous one -- "To be the No. 1 sports-and- fitness company in the world" -- was old news. Parker's choice: "To bring inno-vation and inspiration to every athlete in the world. (And if you have a body, you're an athlete.)" He also put together nine maxims, quirky guiding principles for Nike. The one he thinks about most is No. 6, "Be a sponge. Curiosity is life. Assumption is death. Look around." It's a nod to his grandmother Helen Parker, who spent hour upon hour with her quiet grandson, walking in the woods, sharing her observations about the world. "She was engaged and learning new things until she passed," Parker says. "That was always her advice to me. And it really worked.” 17
  • 18. Design Thinking “A discipline that uses the designer’s sensibility and methods to match people’s needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunities” – Tim Brown, IDEO 18
  • 19. The Design of Business – Key Quotes The traditional structure, functional: “People define their work as “my responsibilities”, not “our responsibilities”. Alternative structure – project-based: “Flow to the work” “But the solution is expected to come from the team, not the quarterback” “Rewards accrue not to those who run big businesses or large staff but to those who solve wicked problems – those with no fixed definition or solution.” “A tough design challenge could be one of the best retention tools a company has today for its best innovators.” 19
  • 20. Mojo, Maslow and a certain Joie de Vivre Self Actualization Esteem Social/Belonging Safety Physiological 20
  • 21. Relationship Truth 1 : The Employee Pyramid Meaning (Transformation) Creates Inspiration Recognition (Success) Creates Loyalty Creates Base Money (Survival) Motivation 21
  • 22. Relationship Truth 2 : The Customer Pyramid Meets Unrecognized Creates Needs (Transformation) Evangelism Meets Desires Creates (Success) Commitment Meets Expectations Creates (Survival) Satisfaction 22
  • 23. Relationship Truth 3 : The Investor Pyramid Legacy (Transformation) Creates Pride of Ownership Relationship Creates Confidence Alignment (Success) Creates Trust Transaction Alignment (Survival) 23
  • 24. The final transformational pyramid for Joie de vivre 24
  • 25. Peak – Key Quotes The biggest differentiator between an average company and a great company is the motivation of the people within the company. Gulati and Kletter conclude that it is just as important for a company to manage, monitor, and measure their relationship capital as it is to do the same with their financial capital 25
  • 26. In Pursuit of Elegance – Why the Best Ideas Have Something Missing The “eureka” moment: While no one yet knows what exactly that process is, what is important to know is that putting pressure on ourselves to speed up or artificially influence our brains to work harder, or more intensely, or more quickly, only slows down our ability to arrive at new insights. Ironically, when we let go, when we escape, either physically or mentally, we actually speed up the transformational process. 26
  • 27. DOES IT WORK? DOES IT MATTER? 27
  • 28. The Result Zappos Zappos went from 0 to a $1.2 billion dollar valuation and sale to Amazon.com, in 10 years. Joie de vivre Hotels California’s largest boutique hotel collection. All Joie de vivre businesses combined have an annual revenue of $240 million. G Adventures Over 100 million in annual revenue One of the largest adventure tour companies, globally 28
  • 29. The Result - Nike 29
  • 30. Can’t talk Design and not mention Apple THE design focused company Apple stock (Jobs Returns in 1997) April 17, 2003 – $6.56 September 6, 2012 - $676.27 The famous “Live before you Die” Stanford Address - the key points to me: Dropping out and taking a calligraphy class At approx. the 5 minute mark of the speech Jobs makes the comment on connecting the dots and trusting they will connect in the future. 30
  • 31. WHAT DOES IT MEAN TO LOGIQ3? …. HOW DID WE PROCEED… 31
  • 32. Simplify, simplify, simplify We needed to simplify our purpose. Not a vision or mission, but why do we show up every morning: 1. Make money 2. Have fun 3. Change an industry We needed to make specific promises: 1. Coworkers – We provide you the best job you’ve ever had and you deliver operational excellence in everything you do. 2. Clients – we will be your favourite vendor. 32
  • 33. LOGiQ3 Maxims As we Our Quirky matured, we Guiding added Principles specific - Not 10 of definitions them, but 11 - and acceptable behaviours to the maxims. 33
  • 34. The Inspiration Wall This process got everyone involved and has become an annual exercise 34
  • 35. Find a Culture Champion - introducing…. Carmela Tedesco 35
  • 37. A Traditional Org Chart 37
  • 38. The LOGiQ3 Work Flow 38
  • 40. Challenges along the way Passion vs. emotion Assuming it all made sense to everyone (silence is rarely acceptance) Over analyzing. You can Google whatever you want and get millions of hits; why it’s a good thing and a bad thing. Trust your gut! Move too slowly Expect some failure, and that it will take a long time 40
  • 41. Kudos – the small things 41
  • 44. Culture Teams (for broad participation) 1. Talent Scout 2. Learning 3. Health & Wellness 4. New Employee Mentor 5. Giving Back 6. SoundBites (Communication) 7. Clubs 8. Kudos (Rewards & Recognition) 9. F2HF (Freedom to Have Fun) 44
  • 45. The Culture Index We will measure culture on a regular basis. Eventually we will expand to include other dimensions, i.e. client feedback, but needed to start small. Today, we ask one question (two parts), every month. Are you proud to work for LOGiQ3? Why? 45
  • 46. NOW WHAT? 46
  • 47. Connect the dots, your way! There is a lot of activity out there in this space Find what you like, what makes sense for your organization, and take it. Create/define/grow your corporate soul 47
  • 48. Do this… 1. Create very simple, personal goals. This starts to connect the people. Small bite size steps is critical. 2. Develop your quirky guiding principles. (maxims). Absolutely key! Steal stuff you like from others. 3. Create constant conversation around maxims to embed in DNA. 4. Align maxims, actions and behaviours. 5. Review organizational design and consider project based structure (many variations of this is possible) 48
  • 50. If you’re interested in the subject: Books The Design of Business – Why design thinking is the next competitive advantage, Roger Martin Peak – How Great Companies Get Their Mojo from Maslow, Chip Conley (MANY other references at the end of every chapter) Delivering Happiness, Tony Hsieh Good to Great & Great by Choice, Jim Collins The Progress Principle, Teresa Amabile and Steven Kramer What to ask the person in the Mirror, Robert Steven Kaplan In Pursuit of Elegance – Why the Best Ideas Have Something Missing, Matthew E. May 50
  • 51. If you’re interested in the subject (cont’d): Magazines / Sites Fast Company – fastcompany.com Co.Design – fastcodesign.com Co.Exist – fastcoexist.com Co.Create – fastcocreate.com Inc- inc.com Harvard business Review – hbr.org Of greater value, daily email Peter Bregman – peterbregman.com The Mix Fix – managementexchange.com TED – ted.com 51
  • 52. If you’re interested in the subject (cont’d): Twitter Fast Company – @fastcompany Co.Design – @fastcodesign Co.Exist – @fastcoexist Co.Create – @fastcocreate Inc - @inc LDRLB - @ldrlb Stanford Business - @stanfordbiz Profit Magazine - @profit_magazine Harvard Biz Review - @harvardbiz American Management Association - @amashift 52
  • 53. Thank You Chris Murumets, CEO, LOGiQ3 Email: chris.murumets@logiq3.com LinkedIn: Chris Murumets Twitter: @cmurumets LOGiQ3 Corp Website: http://www.logiq3.com Blog: http://www.logiq3.com/blog Twitter: @LOGiQ3 Facebook: http://www.facebook.com/#!/pages/LOGiQ3- Corp/221087034601971 LinkedIn: http://www.linkedin.com/company/logiq3-corp- 53

Notes de l'éditeur

  1. Build and create trust is key