guidon hpc webinar: creating a high performance culture

Creating a High Performance CultureJuly 30, 2009

Agenda

• Culture and Its Impact• Defining High Performance Culture• Creating a High Performance Culture

– Cycles of Use Ecosystem– Performance Management– Talent Development

• Case Study• Questions

© 2009 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

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With You Today


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Brent Jameson, Vice-President, Guidon Performance Solutions, LLC

• Over 15 years experience in application of Lean and Six Sigma

• Extensive experience migrating Kaizen and Lean thinking from manufacturing to front and back office operations

• Client experience in retail, healthcare, financial services, information technology, and telecommunications

Jim Dickey, Vice-President, Guidon Performance Solutions, LLC

•Over 15 years experience in application of Lean and Six Sigma

•Co-founder of Guidon Performance Solutions – the pioneer in applying LeanSigma® in non-industrial and non-traditional companies

•Client experience in retail, healthcare, financial services, telecommunications and government

•Pioneered groundbreaking approach to managing capacity and staffing in highly complex, highly variable operating environments


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Corporate Culture

cul·ture: the set of shared attitudes, values, goals and practices that characterizes a company or corporation.

-Webster’s Dictionary


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What Is Corporate Culture

• Culture is represented in the norms and unwritten rules that guide employee actions

• Corporate cultures are shaped by a variety of influences – nature of the business– geography – fingerprints of the company founders, current leaders and

associates

• Culture “happens”

You can accept the hand you have been dealt or you can take action to change it.

The Power of Culture

Corporate culture can have a significant impact on a firm's long-term economic performance.

Corporate cultures inhibiting strong performance are not rare; they develop easily, even in firms full of reasonable and intelligent people.

Although tough to change, corporate cultures can be made more performance-enhancing.


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John Kotter and James Heskett, Corporate Culture and Performance

http://upload.wikimedia.org/wikipedia/commons/d/d5/TourDeFrance_2005_07_09.jpg


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Creating a High Performance Culture

“The culture of a company is the behavior of its leaders. Leaders get the behavior they exhibit and tolerate. You change the culture of a company by changing the behavior of its leaders.” Larry Bossidy

Former CEO, Honeywell

A set of shared beliefs, values, attitudes, goals and actions at all levels focused on superior execution.

High Performance Culture

Transformation Will Require a Change In Thinking…

“People are very open minded about new things. As long as they are exactly like the old ones.”

- Charles Kettering

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“…The two fundamental forces that drive GE…a common operating system and common social architecture…”

Jack WelchGE 1999 Annual Report

http://en.wikipedia.org/wiki/Image:Jack-welch.jpg


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Structure of Corporate Culture

Leadership Tools & PracticesShared techniques that drive practices, aid problem solving and

establish consistent performance – day to day, week to week, year to year

Shared Values and Beliefs

Description of the Leadership’s Vision of

the desired culture

Common Terminology and Language

The mechanism to bring the desired culture alive through daily

reinforcement

Recognition and Reward

Reward mechanisms for living the values

Operating System

Social Architecture

Changing the culture requires a focus on the Social Architecture and Operating System


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Social Architecture• The “real” social

architecture

• Defined by those attributes and behaviors which are seen to lead to promotion and advancement

• Same as the attributes and behaviors espoused by the leadership as being desirable


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Operating System

• The “real” operating system

• Defined by the activities to which leadership gives highest priority and devotes most time

• Commonly used management practices and tools

• Predictable sequence of events used year after year to run the organization

• Drivers of day-to-day priorities

• Tools, techniques and processes at Levels 1 – 3

Start with Roles of Leadership

• Responsible for Strategic Planning and Leadership

• Talent Development• Transition to Execution

• Execution on Annual Commitments

• Talent Development• Transition for Improvement

• Managing Change• Execution of Daily Operational

Commitments• Continuous Improvement


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Establishing culture begins with clarifying leadershiproles & responsibilities.

Senior Leadership

Middle Management/Leadership

Supervisor/Front Line Leadership


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Culture Transformation

Cycle must occur at each level of the organization, however, with different tools and practices.

Cycles of Use

• Linking tools and practices (operating system) with the values of an organization (social architecture)

• A Standard Playbook for creating the leadership culture which will drive high performance

Cycles of Use EcosystemGoal Setting• Tools to plan, establish and target initiativesCommunicate, Translate and Deploy• Share goals and targets with L2 and L3 Leadership• Translate into executable plans• Deploy resourcesMeasuring Performance and Results• Tools, forums to discuss and evaluate performance to

targets• Identify gaps, create plans to improve and assign

responsibilityExecuting to Close Gaps• Collaborative problem solving Lean, Six Sigma, FOCUSIncent & Celebrating Successes• Reinforcing methods for desired results (repeatable) and

behaviors• Problem solving methods & tools


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A High Performing Culture is similarto an ecosystem.

Species

Air

Soil

Nutrients Water

Five Elements of a Forest System

Five Elements ofCycle of Use

Senior Leadership Cycles of Use – Example


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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Define Vision & Strategy

Translate & Deploy

Review & Incent

Communicate & Recognize

Success

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Define Vision & Strategy

Translate & Deploy

Review & Incent

Communicate & Recognize

Success

Strategic Snapshot(1 Day)

MGSP(2 days)

Policy Deployment

(2 days)

BusinessOp Planning

LocalOp Planning

Scorecards& IncentiveComp Plan

TalentRoundtable

(2 days)

TalentRoundtable& IC Award

(2 days)

LeadershipOff-Site(2 days)

LeadershipOff-Site(2 days)

AllocateIncentive

Comp

Ongoing Business Reviews and Performance Reviews


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Mid-Level Leadership Cycles of Use

Manage the Process“Balanced Focus”

Manage the Process“Balanced Focus”

Strategic Deployment Implementation

“Critical Few” ProcessesAction Plan at Point of Impact

Bowling Charts

Strategic Deployment Implementation

“Critical Few” ProcessesAction Plan at Point of Impact

Bowling Charts

Daily Management

Operating Unit Responsibility – SQDC KPI’sKPI Bowling Charts

Daily Management

Operating Unit Responsibility – SQDC KPI’sKPI Bowling Charts

MONTHLY OPERATIONS REVIEW

Separate SD and KPI ReviewsException Reporting

Forward Focus on PotentialProblems & Opportunities

Quick Response Countermeasures

MONTHLY OPERATIONS REVIEW

Separate SD and KPI ReviewsException Reporting

Forward Focus on PotentialProblems & Opportunities

Quick Response Countermeasures

Front Line Leadership Cycles of Use


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• Front-Line “Scorecard” & Performance Management System

• Identify opportunities in Operations Performance Reviews (OPR)

• Problem solving to address gaps and align to business needs

Leadership Talent Development

The three basic objectives of talent are helping:– Employees understand where they can be most successful as

well as how they can best develop within the organization.– Leaders perform better by making better hiring and promotion

decisions and managing employees more effectively through improved mentoring and coaching.

– Organizations place talent correctly, maximizing employee productivity and being more proactive in succession planning.

Basic components of an effective talent development system are recruitment, assessment, on-boarding, development planning, performance management and career “pathing.”

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The Reality Is…

The changes with Leadership are not just technical / process oriented. The reality is that the challenge is with…

PEOPLE

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High Performance Leadership Roadmap

Succession Planning

Identify Candidates Pilot

• L3 develops succession plan

• Key leadership roles• Key skills for success

and create skills matrix

• Expected future opportunities

• Utilize Cycle of Use outcomes to identify key L1 and L2 candidates

• Remove pilot candidates from existing role and begin rotation

• Assign L3 mentor• Review progress each

trimester

Assess Capabilities

Ongoing Rotation

• Assess Candidates relative to skills matrix

• Begin rotation 2

Level 3 Leadership and Mentoring

Human Resources Oversight


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Total Rating Comments

Good sponsor; do it w ell; impacts bottom line; Well defined - logic for 10 Weights

Weight 10 10 10 10 10 7 3 5 Rng 65-325 Sample Project 2 (20) 2(20) 2 (10) 4(10) 3(10) 1 (5) 1 (3) 3 (3) 155

R&IP OP

1Develop Approach to Increase Productivity

5 5 5 5 5 5 1 1 293 Strength in approach; all year initiative

2Increase Captured Transit Float

5 5 3 3 5 3 5 1 251 Attack Float throughout NEO; Leverage Chicago success model

3Reduce Cycle Time at Multi-sites

1 5 5 5 5 3 1 1 239 Reconsidering signif icance w ith other priorities re: Remittance 1

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HPC Sustainment Support

5 3 5 3 5 5 1 1 253 Approach defined not tested on larger opns; small engagemt okay

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AMS desk top models for Remit 1 pre transition

5 5 3 3 5 3 1 5 259 Hendershott sponsor, Solid AMS model success, unit cost oppty, Risk is higher - integrate w ith overall initiative

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Cycle Time Improvement w ithin R&IP Processing

3 3 5 3 5 1 1 3 215 Sponsorship / Timing 3rd and 4th Qtr.

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Improve Business Measurement Systems and information access

5 3 3 5 3 1 1 1 205 Good production support rotation

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Develop Real Time Predictability Model for GTS Customers

5 3 1 3 1 1 5 1 157 Pilot - ability to create competitive advantage ; revenue grow th

9State of Michigan Income Tax

1 5 3 3 5 1 1 1 185 New process; quick operational deliverable by Jan'04

10State of New York Income Tax

1 5 3 3 5 1 1 1 185 New process; quick operational deliverable by Mid '04

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Forecasting - Improve Ability to Schedule

5 3 1 3 1 1 1 1 145 Early successes, limited application; new methodology/tool

Good sponsor; do it w ell; impacts bottom line; Well defined - logic for 10 Weights

Leadership Development Skills Matrix – Example

Based on required skills for succession positions


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High Performance CultureCase Study

Client Case Study: Financial Services• Employees: 20,000• Global Footprint: 50 Countries• Line of Business: Treasury and

Securities Services• Legacy: Growth by M & A• Situation:

– Over 35 systems platforms– “Loose confederation of states”– Performance management tied

only to financials– Overly complex and non-

standardized operations


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The Journey

TheTheJourney BeginsJourney Begins

LearningLearning BuildingBuilding SustainingSustaining AdvancingAdvancing

High High Performance Performance AssessmentAssessmentis completedis completed

Results are Results are shared and a shared and a Vision for Vision for Transformation is Transformation is CreatedCreated

Corporate Corporate Leadership Leadership identifies Shared identifies Shared Values and Values and BehaviorsBehaviors

L1 HPCL1 HPC•• Extended Extended

RolloutRollout•• Introduction of Introduction of

problem solving problem solving tools (Focus 1)tools (Focus 1)

L2 HPCL2 HPC•• Extended RollExtended Roll--

outout•• Introduction of Introduction of

problem solving problem solving tools (Focus 2)tools (Focus 2)

L3 HPCL3 HPC•• Beginning of Beginning of

Annual Annual Business Business Planning Planning CalendarCalendar

•• Beginning of Beginning of SemiSemi--Annual Annual OffsitesOffsites

L1 HPC PilotL1 HPC Pilot•• Performance Performance

BoardsBoards•• Production Production

Reviews Reviews

L2 HPC PilotL2 HPC Pilot•• Site/Regional Site/Regional

ScorecardsScorecards•• Business Business

ReviewsReviews

L3 HPC PilotL3 HPC Pilot•• Management Management

Practices and Practices and Tools IdentifiedTools Identified

Talent Talent Roundtables Roundtables BeginBegin

Icon Forums Icon Forums BeginBegin

Rollout of HPCRollout of HPCOrientation Orientation ProgramProgram

Implementation ofImplementation ofHPC MentorHPC MentorProgramProgram

Best Practice Best Practice forums beginforums begin

Transfer of HPCTransfer of HPCknowledge andknowledge andownership to ownership to Client LeadershipClient Leadership

Continued roll outContinued roll outof advanced of advanced problemproblemsolving tools for solving tools for management management levellevel

The Journey Begins Learning Building Sustaining Advancing

Before Cultural TransformationQ2

• Recognize the need for cultural change• Loose confederation of “states”

– Geographic / functional differences– Inconsistent service delivery / High Performance

concepts

Q3• Assessed the Performance Culture across organization

– Observation / interviews – all levels & geographies– Social and operating parameters evaluated


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All levels participated in survey tohelp us better understand our opportunities.

General Assessment Outcomes

• Robust performance reporting • Customer service orientation• Continuous improvement organization• Standardization teams • Recognizing and rewarding staff


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Strengths from survey

Some Social / Cultural Assessment Outcomes• Strong, but inconsistent, messages across the

organization• Less emphasis on valuing employees / sustaining a

positive work environment• Teamwork is not a cultural strength• Strong theme of cynicism at larger sites• Consistent definition of values; inconsistent definition of

tools/processes


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A negative work environment results in cynicalbehavior and a lack of company pride.

Some Operating Assessment Outcomes• Poor alignment of goals perceived as performance

barrier• Existing reviews skewed toward financial performance• Recognize front line resources not tapped to drive

performance• Lack of accountability, follow-through driver of poor

delivery• Incentive compensation not linked to individual

performance


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Operational opportunities at the beginning of our journey


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Year 3 Outcomes• Employee Engagement Survey

results improved by 15% annually

• Assets under management grewby 18% over the same period

• IT System Platforms reducedto 6 from over 35

• Eliminated the need for over 1 million square feet of operations space

• Number of associates remained flat at 20,000


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Client Case Study: Business Results

12% Annualized Growth

Net Revenue

Net Income

43% Annualized Growth

2003

2006

$4.6 Billion $6.4 Billion

20032006

$153 Million $316 Million

And Finally…

“Every day you may make progress. Every step may be fruitful. Yet there will stretch out before you an ever-lengthening, ever-ascending, ever-improving path. You know you will never get to the end of the journey. But this, so far from discouraging, only adds to the joy and glory of the climb.”

-Winston Churchill on Perseverance

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Questions?


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Guidon Performance Solutions866-986-4414 or 480-986-4414

[email protected]

Thank YouThank You


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http://www.guidonps.com/

guidon hpc webinar: creating a high performance culture

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