Post on 20-Jan-2016
transcript
Reference Guide on ourReference Guide on our
Culture Culture
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Enron Had A Nice-Sounding Enron Had A Nice-Sounding Value Statement with 4 ValuesValue Statement with 4 Values
• IntegrityIntegrity
• CommunicatioCommunicationn
• RespectRespect
• ExcellenceExcellence
Enron headquarters
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Their 4 values were chiseled in marble in the main lobby, but had little to do with the real values of the organization
Seven Aspects of our Seven Aspects of our CultureCulture
• Values are what we ValueValues are what we Value
• High Performance High Performance
• Freedom & ResponsibilityFreedom & Responsibility
• Context, not ControlContext, not Control
• Highly Aligned, Loosely CoupledHighly Aligned, Loosely Coupled
• Pay Top of MarketPay Top of Market
• Promotions & Development Promotions & Development
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You make wise decisions (people, technical, business, and creative) despite ambiguity
You identify root causes, and get beyond treating symptoms
You think strategically, and can articulate what you are, and are not, trying to do
You smartly separate what must be done well now, and what can be improved later
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Judgment
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Communication
You listen well, instead of reacting fast, so you can better understand
You are concise and articulate in speech and writing
You treat people with respect independent of their status or disagreement with you
You maintain calm poise in stressful situations
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Impact
You accomplish amazing amounts of important work
You demonstrate consistently strong performance so colleagues can rely upon you
You focus on great results rather than on process
You exhibit bias-to-action, and avoid analysis-paralysis
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Curiosity
You learn rapidly and eagerly
You seek to understand our strategy, market, subscribers, and suppliers
You are broadly knowledgeable about business, technology and entertainment
You contribute effectively outside of your specialty
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Innovation
You re-conceptualize issues to discover practical solutions to hard problems
You challenge prevailing assumptions when warranted, and suggest better approaches
You create new ideas that prove useful
You keep us nimble by minimizing complexity and finding time to simplify
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Courage
You say what you think even if it is controversial
You make tough decisions without excessive agonizing
You take smart risks
You question actions inconsistent with our values
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Passion
You inspire others with your thirst for excellence
You care intensely about LPS' success
You celebrate wins
You are tenacious
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Honesty
You are known for candor and directness
You are non-political when you disagree with others
You only say things about fellow employees you will say to their face
You are quick to admit mistakes
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Selflessness
You seek what is best for LPS, rather than best for yourself or your group
You are ego-less when searching for the best ideas
You make time to help colleagues
You share information openly and proactively
JudgmentYou make wise decisions (people, technical, business, and creative) despite ambiguity
You identify root causes, and get beyond treating symptoms
You think strategically, and can articulate what you are, and are not, trying to do
You smartly separate what must be done well now, and what can be improved later
InnovationYou re-conceptualize issues to discover practical solutions to hard problems
You challenge prevailing assumptions when warranted, and suggest better approaches
You create new ideas that prove useful
You keep us nimble by minimizing complexity and finding time to simplify
ImpactYou accomplish amazing amounts of important work
You demonstrate consistently strong performance so colleagues can rely upon you
You focus on great results rather than on process
You exhibit bias-to-action, and avoid analysis-paralysis
CuriosityYou learn rapidly and eagerly
You seek to understand our strategy, market, subscribers, and suppliers
You are broadly knowledgeable about business, technology and entertainment
You contribute effectively outside of your specialty
CommunicationYou listen well, instead of reacting fast, so you can better understand
You are concise and articulate in speech and writing
You treat people with respect independent of their status or disagreement with you
You maintain calm poise in stressful situations
CourageYou say what you think even if it is controversial
You make tough decisions without excessive agonizing
You take smart risks
You question actions inconsistent with our values
HonestyYou are known for candor and directness
You are non-political when you disagree with others
You only say things about fellow employees you will say to their face
You are quick to admit mistakes
SelflessnessYou seek what is best for LPS, rather than best for yourself or your group
You are ego-less when searching for the best ideas
You make time to help colleagues
You share information openly and proactively
PassionYou inspire others with your thirst for excellence
You care intensely about LPS' success
You celebrate wins
You are tenacious
We Want to Work with People Who Embody These Nine Values 13
Seven Aspects of our Seven Aspects of our CultureCulture
• Values are what we ValueValues are what we Value
• High Performance High Performance
• Freedom & ResponsibilityFreedom & Responsibility
• Context, not ControlContext, not Control
• Highly Aligned, Loosely CoupledHighly Aligned, Loosely Coupled
• Pay Top of MarketPay Top of Market
• Promotions & Development Promotions & Development
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We’re a We’re a teamteam, not a family, not a family
We’re like a We’re like a sports teamsports team, , not a kid’s recreational teamnot a kid’s recreational team
Coaches’ job at every level of Coaches’ job at every level of LPSLPS
to hire, develop to hire, develop smartlysmartly, , so we have stars in every so we have stars in every
positionposition
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TheThe Keeper Test Keeper Test Managers Use:Managers Use:““Which of my peopleWhich of my people, ,
if they told me if they told me they were leaving in two months they were leaving in two months
for a similar job at a peer company, for a similar job at a peer company, would I fight hard to keep at LPS?would I fight hard to keep at LPS?
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The other people should get a generous severance now, so we can open a slot to try to find a star for that role
Hard Work – Not Directly Hard Work – Not Directly RelevantRelevant• It’s about effectiveness – not effort – It’s about effectiveness – not effort –
even though effectiveness is harder to even though effectiveness is harder to assess than effortassess than effort
• We don’t measure people by how many We don’t measure people by how many evenings or weekends they workevenings or weekends they work
• We do try to measure people by how We do try to measure people by how much, how quickly and how well they get much, how quickly and how well they get work done – especially under a deadlinework done – especially under a deadline
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Seven Aspects of our Seven Aspects of our CultureCulture
• Values are what we ValueValues are what we Value
• High Performance High Performance
• Freedom & ResponsibilityFreedom & Responsibility
• Context, not ControlContext, not Control
• Highly Aligned, Loosely CoupledHighly Aligned, Loosely Coupled
• Pay Top of MarketPay Top of Market
• Promotions & Development Promotions & Development
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The Rare Responsible The Rare Responsible PersonPerson•Self motivatingSelf motivating•Self awareSelf aware•Self disciplinedSelf disciplined•Self improvingSelf improving•Acts like a leaderActs like a leader•Doesn’t wait to be told what to doDoesn’t wait to be told what to do•Never feels “that’s not my job”Never feels “that’s not my job”
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Most Companies Most Companies CurtailCurtail Freedom as they get Freedom as they get BiggerBigger
Bigger
Employee Freedom
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Two Types of Necessary Two Types of Necessary RulesRules1.1. Prevent irrevocable disasterPrevent irrevocable disaster
– E.g. Financials produced are wrongE.g. Financials produced are wrong– E.g. Hackers steal our customers’ infoE.g. Hackers steal our customers’ info
2.2. Moral, ethical, legal issuesMoral, ethical, legal issues– E.g. Dishonesty, harassment are intolerableE.g. Dishonesty, harassment are intolerable
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Mostly, Though, Mostly, Though, Rapid Rapid Recovery Recovery is is the Right Modelthe Right Model• Just fix problems quicklyJust fix problems quickly
– High performers make very few errorsHigh performers make very few errors
• We’re in a creative-inventive market, We’re in a creative-inventive market, not a safety-critical market like not a safety-critical market like medicine or nuclear powermedicine or nuclear power
• You may have heard preventing error is You may have heard preventing error is cheaper than fixing itcheaper than fixing it– Yes, in manufacturing or medicine, but…Yes, in manufacturing or medicine, but…– Not so in creative environmentsNot so in creative environments
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““Good” vs “Bad” ProcessesGood” vs “Bad” Processes
• ““Good” processes help talented people get Good” processes help talented people get more donemore done
• ““Bad” processes try to prevent recoverable Bad” processes try to prevent recoverable mistakesmistakes– Get pre-approvals for spendingGet pre-approvals for spending– Get 10 people to interview each candidate Get 10 people to interview each candidate
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Seven Aspects of our Seven Aspects of our CultureCulture
• Values are what we ValueValues are what we Value
• High Performance High Performance
• Freedom & ResponsibilityFreedom & Responsibility
• Context, not ControlContext, not Control
• Highly Aligned, Loosely CoupledHighly Aligned, Loosely Coupled
• Pay Top of MarketPay Top of Market
• Promotions & Development Promotions & Development
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Context, not ControlContext, not Control
Context Context • StrategyStrategy
• MetricsMetrics
• AssumptionsAssumptions
• ObjectivesObjectives
• Clearly-defined roles Clearly-defined roles
• Knowledge of the Knowledge of the stakesstakes
• Transparency around Transparency around decision-makingdecision-making
Control Control • Top-down decision-Top-down decision-
makingmaking
• Management approvalManagement approval
• CommitteesCommittees
• Planning and process Planning and process valued more than valued more than resultsresults
Provide the insight and understanding to enable sound decisions
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Why Managing Through Why Managing Through Context?Context?
High performance people will High performance people will do better work if they do better work if they
understand the contextunderstand the context
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Seven Aspects of our Seven Aspects of our CultureCulture
• Values are what we ValueValues are what we Value
• High Performance High Performance
• Freedom & ResponsibilityFreedom & Responsibility
• Context, not ControlContext, not Control
• Highly Aligned, Loosely CoupledHighly Aligned, Loosely Coupled
• Pay Top of MarketPay Top of Market
• Promotions & Development Promotions & Development
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Highly Aligned, Loosely Highly Aligned, Loosely CoupledCoupled• Highly AlignedHighly Aligned
– Strategy and goals are clear, specific, broadly understoodStrategy and goals are clear, specific, broadly understood– Team interactions are on strategy and goals rather than Team interactions are on strategy and goals rather than
tacticstactics– Requires large investment in management time to be Requires large investment in management time to be
transparent and articulate and perceptive and opentransparent and articulate and perceptive and open• Loosely CoupledLoosely Coupled
– Minimal cross-functional meetings except to get aligned on Minimal cross-functional meetings except to get aligned on goals and strategygoals and strategy
– Trust between groups on tactics without Trust between groups on tactics without previewing/approving each one – groups can move fastpreviewing/approving each one – groups can move fast
– Leaders reaching out proactively for ad-hoc coordination Leaders reaching out proactively for ad-hoc coordination and perspective as appropriateand perspective as appropriate
– Occasional post-mortems on tactics necessary to increase Occasional post-mortems on tactics necessary to increase alignmentalignment
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Highly-Aligned Loosely-Highly-Aligned Loosely-Coupled teamwork Coupled teamwork
effectiveness effectiveness is dependent on is dependent on
high performance high performance people people and and good contextgood context
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Seven Aspects of our Seven Aspects of our CultureCulture
• Values are what we ValueValues are what we Value
• High Performance High Performance
• Freedom & ResponsibilityFreedom & Responsibility
• Context, not ControlContext, not Control
• Highly Aligned, Loosely CoupledHighly Aligned, Loosely Coupled
• Pay Top of MarketPay Top of Market
• Promotions & Development Promotions & Development
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Pay Top of Market is Core Pay Top of Market is Core toto
High Performance CultureHigh Performance CultureOne outstanding employee gets One outstanding employee gets
more done and costs less than two more done and costs less than two adequate employeesadequate employees
We endeavor to have only We endeavor to have only outstanding employeesoutstanding employees
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Three Tests for Top of Market Three Tests for Top of Market for a Personfor a Person
1.1.What could person get elsewhere?What could person get elsewhere?
2.2.What would we pay for What would we pay for replacement?replacement?
3.3.What would we pay to keep person?What would we pay to keep person?– If they had a bigger offer elsewhereIf they had a bigger offer elsewhere
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Compensation Not Dependent Compensation Not Dependent on LPS Successon LPS Success
• Whether LPS is prospering or Whether LPS is prospering or floundering, we pay at the top of the floundering, we pay at the top of the marketmarket– i.e., sports teams with losing records still i.e., sports teams with losing records still
pay talent the market ratepay talent the market rate
• Employees can choose how much they Employees can choose how much they want to link their economic destiny to want to link their economic destiny to LPS success or failure by deciding how LPS success or failure by deciding how much LPS stock or stock options they much LPS stock or stock options they want to ownwant to own
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EfficiencyEfficiency
• Big salary is the Big salary is the most efficient most efficient form of form of comp comp – Most motivating for any given expense Most motivating for any given expense
levellevel– No bonuses – just include in salary – so No bonuses – just include in salary – so
much simplermuch simpler
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Seven Aspects of our Seven Aspects of our CultureCulture
• High Performance High Performance
• Values are what we ValueValues are what we Value
• Freedom & ResponsibilityFreedom & Responsibility
• Context, not ControlContext, not Control
• Highly Aligned, Loosely CoupledHighly Aligned, Loosely Coupled
• Pay Top of MarketPay Top of Market
• Promotions & Development Promotions & Development
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In some time periods, in In some time periods, in some groups, there will be some groups, there will be
lots of opportunity and lots of opportunity and growth at LPSgrowth at LPS
Some people, through both Some people, through both luck and talent, will have luck and talent, will have
extraordinary career growthextraordinary career growth
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Seven Aspects of our Seven Aspects of our CultureCulture
• Values are what we ValueValues are what we Value
• High Performance High Performance
• Freedom & ResponsibilityFreedom & Responsibility
• Context, not ControlContext, not Control
• Highly Aligned, Loosely CoupledHighly Aligned, Loosely Coupled
• Pay Top of MarketPay Top of Market
• Promotions & Development Promotions & Development
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Need a culture that supportsNeed a culture that supportseffective teamwork effective teamwork of of
high-performance high-performance peoplepeople
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