Understanding Your Organization’s Culture:

Tools to Make HR Practices Strategic

Sheila L. Margolis, PhDMay 26, 2011

2

What Is Valued at Whole Foods Market?

What Is Valued at Zappos?

3

Use Culture to Generate Success

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Agenda

1. Define Core Culture

2. Align HR Practices with Core Culture

The Podiatry Institute St. Jude’s Recovery Center, Inc.

American College of Rheumatology

Southeastern Lung CareGastrointestinal Specialists of Georgia, PC

Manage Culture & Change

Speak, Teach and Write

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Think About Your Organization…

• Choose one value that would enable your company to compete and thrive.

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Agenda

1. Define Core Culture

2. Align HR Practices with Core Culture

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Understand Your Core Culture

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Core Cultur

e

Vision

Purpose

Philosophy

Priorities

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Define the Purpose:“Why” Is this Work Important?

Purpose

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Vision

Why?

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Support Health, Well-being and Healing

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What Is Your Gift to Society Through Your Work?

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Keep the Purpose Brief in Length

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Ensure the Purpose Is Broad in Scope

We organize the world’s information

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Unite Around a Shared Purpose

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Use the Tool: Core Culture Interview:

Purpose

1. What is the purpose of your

organization?

2. Why is that important?

(Ask up to five times.)

The Purpose is:______________________

Purpose

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Purpose Options Not at all

%

A little

%

Moderately

%

Quite a bit

%

Very much

%

Very much + Quite a bit

%

•To cultivate relationships

5.3 10.1 22.1 26.9 35.6 62.5

•To promote friendships 6.9 9.8 27.5 31.4 24.5 55.9

•To be a home away from home

12.7 10.7 18.5 22.9 35.1 58.0

•To enhance lives 5.6 6.1 15.0 33.2 40.2 73.4

•To make people happy 6.2 5.2 7.1 18.5 63.0 81.5

Case Example: Purpose

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Define the Philosophy:“How” Is the Organization Unique?

Purpose

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Vision

Philosophy

Distinctive & Enduring How?

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Live the Southwest Spirit:Herb Kelleher

Purpose

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Vision

Philosophy

Distinctive & Enduring How?

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Preserve the Purpose and Philosophy

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Vision

PhilosophyPurpose

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Entertain through the Disney Magic

Philosophy

Purpose

We Make People Happy

Imagination

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Use the Tool: Core Culture Interview:

Philosophy

3. What prime value is fundamental

and distinctive to your company?

4. Describe the founder and the ideals that drove the organization’s founding.

5. What makes your organization feel different from others doing similar work?

The Philosophy is:_______________________

Philosophy

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Case Example: Philosophy

PurposeWe

make people happy

“Club” Standard

Philosophy

We Anticipate Needs and Exceed Expectations with a Sense of Urgency.

We Consistently deliver Superior Experiences.

We pay Attention to Details. We have heartfelt Caring and

Respect for all. 

All of the above is the difference between Good and GREAT!

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Define the Priorities:“How” To Compete & Thrive?

Purpose

Philosophy

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Vision

Strategic How?

Priorities

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Decide “How” to Achieve the “What”

Purpose

Philosophy

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Vision

StrategicHow?

Priorities

What?

Manage Smarter

Improve Collaboration

6. What should we focus on and pay attention to?

7. To effectively achieve our strategy, what values should guide how we work?

8. What key values, if followed, would help us compete and thrive?

The Priorities are:______________________

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Use the Tool: Core Culture Interview:

Priorities

Priorities

Purpose

Philosophy

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Case Example: PrioritiesTraining & Development

• Increase employees’ knowledge and skills so they share a common vision and goals, and practice the “Club” Standard in their daily interactions

Purpose

Philosophy

Priorities

Teamwork• All working together --

to make people happy through the “Club” Standard

Communication• Open, honest, and timely sharing of information— from the

top down, from the bottom up, between departments, and between locations

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Understand Your Hidden Asset

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Core Cultur

e

Vision

Purpose

Philosophy

Priorities Core

Culture

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Use the Tool: Core Culture Interview

1. What is the purpose of your organization?

2. Why is that important? (Ask up to five times.)

The Purpose is:______________________________

3. What prime value is fundamental and distinctive to your company?

4. Describe the founder and the ideals that drove the organization’s founding.

5. What makes your organization feel different from others doing similar work?

The Philosophy is:____________________________

6. What should we focus on and pay attention to?

7. To effectively achieve our strategy, what values should guide how we work?

8. What key values, if followed, would help us compete and thrive?

The Priorities are:____________________________

Priorities

Purpose

Philosophy

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Define Your Core Culture

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Core Culture

Vision

Purpose

Philosophy

Priorities

•Definitions•Examples & Stories

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Include Everyone in Defining the Core Culture

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Agenda

1. Define Core Culture

2. Align HR Practices with Core Culture

Align the Five Ps

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Priorities

Purpose

Philosophy

Projections

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Vision

PracticesInternal & External

Core Culture

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Align Internal Practices with the Core

Priorities

Purpose

Philosophy

Internal Practices

Projections

External Practices

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Vision

Core Culture

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Structure,Work

Design & Systems

Recruitment &

Selection

Training &

Development

Performance

Management

Internal

Communications

Technology

Align Internal Practices with the Core

Use the Tool: Internal Practices Alignment Audit

Degree of Alignment1 2 3 4

5Extremely

Extremely Unaligned

Aligned

Recommendations to

Improve Alignment

Purpose Philosophy Priorities

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Audit Structure, Work Design & Systems

To what degree do the following align with the Core Culture…

Degree of Alignment

1 2 3 4 5Extremely Extremely Unaligned

Aligned

Recommendations to Improve Alignment

Purpose Philosophy Priorities

1. Does the organizational structure support the Core Culture?

2. Do job titles reflect the Core Culture?

3. Does the design of work reinforce the Core Culture?

4. Do systems for doing work align with the Core Culture?

5. Does decision making reflect the Core Culture?

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Align Structure with the Customer Service Culture

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Align Job Titles with the Revolutionary Culture

Align Work Design with WOW Service

Change Guidelines to Improve Quality

Align Systems with Fun and a Little Weirdness

Encourage Employees to Make Decisions

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Audit Recruitment & Selection

To what degree do the following align with the Core Culture…

Degree of Alignment

1 2 3 4 5Extremely Extremely Unaligned

Aligned

Recommendations to Improve Alignment

Purpose Philosophy Priorities

6. Do recruitment materials reflect the Core Culture?

7. Do recruitment practices support the Core Culture?

8. Do you talk about the Core Culture with applicants?

9. Do you model the Core Culture when meeting with applicants?

10. Do you interview for culture fit?

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Align Recruitment Materials with the Disney Culture

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Use Recruitment Practices to Support the Teamwork Culture

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Talk about the Core Culture with Applicants

Model the Core Culture When Meeting with Applicants

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Interview for Fit with a Culture of Fun and a Little Weirdness

If you could be a superhero, which one would you be?

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Audit Training & DevelopmentTo what degree do the following align with the Core Culture…

Degree of Alignment

1 2 3 4 5Extremely Extremely Unaligned

Aligned

Recommendations to Improve Alignment

Purpose Philosophy Priorities

11. Do you orient new employees to the Core Culture?

12. Do you train new employees in the skills to be able to practice the Core Culture?

13. Do you provide ongoing training to ensure actions meet/ exceed standards for living the Core Culture?

14. Does the way training is conducted model the Core Culture?

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Orient and Train New Employees to Understand and Practice the Core

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Provide Ongoing Training to Ensure Quality Standards

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Ensure Training Models Pixar’s Culture of Collaboration

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Audit Performance Management

To what degree do the following align with the Core Culture…

Degree of Alignment

1 2 3 4 5Extremely Extremely Unaligned

Aligned

Recommendations to Improve Alignment

Purpose Philosophy Priorities

15. Do employees have standards for performance linked to the Core Culture?

16. Do you hold employees accountable for personal action plans that reinforce the Core Culture?

17. Do you give positive feedback to employees who model the Core Culture?

18. Do you celebrate the achievement of goals that promote the Core Culture?

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90 Day Action Plan

Align Performance with the Core

Give Positive Feedback to Employees who Model the Core Culture

Celebrate the Achievement of Goals that Promote the Core Culture

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Link Bonus Pay to Team Performance

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Audit Internal Communications

To what degree do the following align with the Core Culture…

Degree of Alignment

1 2 3 4 5Extremely Extremely Unaligned

Aligned

Recommendations to Improve Alignment

Purpose Philosophy Priorities

19. Do you disseminate information about the Core Culture?

20. Does the flow of information align with the Core Culture?

21. Do leaders regularly talk about and demonstrate the Core Culture principles and values?

22. Do meetings reflect the Core Culture?

Disseminate Information about the Core

Align Flow of Information with the Core

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Talk about and Demonstrate the Core

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Align Meetings with the Core Culture

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Audit Technology

To what degree do the following align with the Core Culture…

Degree of Alignment

1 2 3 4 5Extremely Extremely Unaligned

Aligned

Recommendations to Improve Alignment

Purpose Philosophy Priorities

23. Do you use equipment to support the Core Culture?

24. Does your software effectively support the Core Culture?

25. Does your intranet align with the Core Culture?

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Use Technology to Enhance Customer Service

Align the Intranet with the Core

Use the Tool: Internal Practices Alignment Audit

Degree of Alignment1 2 3 4

5Extremely

Extremely Unaligned

Aligned

Recommendations to

Improve Alignment

Purpose Philosophy Priorities

Use Culture to Generate Success

72

Agenda

1. Define Core Culture

2. Align HR Practices with Core Culture

73

Understand Your Core Culture

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Core Cultur

e

Vision

Purpose

Philosophy

Priorities

74

Use the Tool: Core Culture Interview

1. What is the purpose of your organization?

2. Why is that important? (Ask up to five times.)

The Purpose is:______________________________

3. What prime value is fundamental and distinctive to your company?

4. Describe the founder and the ideals that drove the organization’s founding.

5. What makes your organization feel different from others doing similar work?

The Philosophy is:____________________________

6. What should we focus on and pay attention to?

7. To effectively achieve our strategy, what values should guide how we work?

8. What key values, if followed, would help us compete and thrive?

The Priorities are:____________________________

Priorities

Purpose

Philosophy

75

Define Your Core Culture

Strategic Goal

Strategic Goal

Strategic Goal

Strategic Goal

Core Cultur

e

Vision

Purpose

Philosophy

Priorities

•Definitions•Examples & Stories

76

Include Everyone in Defining the Core Culture

Use the Tool:Internal Practices Alignment Audit

Degree of Alignment1 2 3 4

5Extremely

Extremely Unaligned

Aligned

Recommendations to

Improve Alignment

Purpose Philosophy Priorities

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Culture Is Your Distinctive Advantage

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Culture Is the Basis for Your Success

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What Is Valued at Neiman Marcus?

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Build Your Culture of Distinction

For more information: www.SheilaMargolis.com