Building A Winning Culture

John Spence

2010 SHRM Jacksonville Conference

A few of my clients:

What does this mean to me?

How can I use this idea?

What can I do right away?

I am NOT a guru…

The level of highly satisfied and engaged EMPLOYEES in your business.

The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in your business is…

Key Drivers of Customer Satisfaction and Loyalty

Financial Performance

Quality P&S&

Customer Relationship

EmployeeSatisfaction

Empowerment High Standards

Long-termOrientation

Enthusiasm, Commitment,

Respect

Training &Development

Fair Compensatio

n

CR= 104.12% increase in profits

CR= .404

CR=.334

CR=.277

CR=.275CR=.249

CR=.280 Coaching

CR=.285

CR=.371

CR=.365

CR=.191

CR=.247

TolerateNothing

Less

From: Practice What You Preach by Maister

Global study:16 countries529 companies15,589 respondents

Customer Satisfaction Drives Customer loyalty… and Customer loyalty Drives Profitability

100%

90

80

70

60

50

40

30

20

Extremely Dissatisfie

d

SomewhatDissatisfie

d

SlightlyDissatisfie

dSatisfied

Very Satisfied

Zone of Defection

Zone of Indifferenc

e

Zone of Affection

Loyalt

y

Customer Satisfaction

Terrorist

Evangelist

A 5% increase in loyalty among your best customers…

Can produce a profit increase of 25% – 85%

I hate you

I don’t care about you

I love you

Highly satisfied and engaged employees can drive as much as a 189% increase in profitability!

Culture = Cash

(T + C + ECF) x DE = Success

Talent

T = Talent

Here is how I define talent…

• Highly Competent• Impeccable Character• Excellent Communicator• Positive Attitude • Creative /Innovative• Risk Tolerant• Strong Drive • Solid Team Player

Job Description + Competency Model

WHAT WHO

What does it take to be a valued member of a team?

Develop and display competence.

Follow through on commitments.

Deliver required results.

Ensure your actions are consistent with your word.

Stand behind the team and its people.

Be enjoyable to work with.

Be passionate about your work and those you serve.

Communicate and keep everyone informed.

Help the other members of the team.

Help members of other teams.

Share ideas, information and credit.

Hold yourself 100% accountable.

• Lack of TRUST• Lack of candor• Lack of commitment• Lack of accountability• Lack of results

John Spence High Performance Team Model

• D• M• C• C• M• D

irection – vivid, clear, inspiring --- shared

easurements – specific, observable, focused

ompetence – very good at what they do

ommunication – open, honest, courageous

utual Accountability – all team members

iscipline – do this every day

11 Key Team Competencies:

1. Setting clear, specific and measurable goals.

2. Making assignments extremely clear and ensuring required competence.

3. Using effective decision making processes within the team.

4. Establishing accountability for high performance across the entire team.

5. Running effective team meetings.

6. Building strong levels of trust.

7. Establishing open, honest and frank communications.

8. Managing conflict effectively.

9. Creating mutual respect and collaboration.

10. Encouraging risk-taking and innovation.

11. Engaging in ongoing team building activities.

1 - 10

Best Practices: Talent• Create a pipeline of talent into your

company.

• Hire for attitude – train for skills.

• Train people how to interview.

• Use team interviewing.

• Use a focused competency model.

• Use numerous types of testing.

• Do a thorough reference check.

• Make sure they really want to work for you.

• Hire slow – fire fast.Make “Hiring Right” a core competency!

C = Culture

Business Side• Innovation• Accountability• Execution• Customer Focus

• Ownership Mentality

The Four Pieces of Paper…

A Culture of Leadership

1. Character2. Courage3. Communication4. Collaboration5. Compassion6. Contribution

The key elements of a winning culture: Employees

FunFamilyFriendsFair

FreedomPridePraiseMeaning

Accomplishment

1 -10

What do engaged employees look like?

1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization. 1 - 10

The Six Universal Drivers of Engagement

1. Caring, competent, and engaging senior leaders.

2. Effective managers who keep employees aligned and engaged.

3. Effective teamwork at ALL levels.

4. Job enrichment and professional growth.

5. Valuing employee Contributions.

6. Concern for employee well being.

1 - 10

Best Practices: Culture

Make hiring “right” a core competency

Manage the corporate culture as a key asset

• Establish a clearly communicated vision for success

• Focus on employee satisfaction and engagement as a strategic objective

• Set high standards and hold people accountable to those standards

• Refuse to tolerate mediocrity

• Be a fanatic for training, coaching and mentoring across the organization

• Empower your people to go out and “wow” the customer

Extreme Customer Focus

VOC = Voice of the Customer

(T + C + ECF) x DE

= Success

10 – 15 %

What Inhibits Execution?National Survey of 4,000 Senior Executives

4. Inability to work together (21%)

3. Company culture (23%)

2. Economic climate (29%)

1. Holding onto the past / unwillingness to CHANGE (35%)

In other words…

• In order to succeed you need a high-performance team that embraces a strong culture of disciplined execution and accountability while being nimble, agile and adaptable to changes in the marketplace.

Where are we going + how will we behave on the way?

FocusDifferentiation“No”

Stakeholders + guiding collation

Vision + ValuesStrategyPlansGoals / ObjectivesTactics / Actions

Procedures / ProtocolsRepeatable Process

Clear / consistent / relentless @ Execution

Training +time / money /

supplies / people

Measure Track & PostTransparency

Renewal

Praise + Celebration Eliminate Mediocrity

Disciplined Execution Clear Vision

Detailed Strategy

Guiding Coalition

Alignment

Systems

Communication

Support

Measure & Post

Adjust

Reward / Punish

1 - 10

SUMMARY of Key Strategies

1. Create a talent pipeline

2. Intensive hiring process = Hire Right

3. Company culture managed as a strategic asset

4. Customer service as a key strategic differentiator

5. Own the VOC

6. Set clear standards – establish key processes

7. Nail the “Moments of Truth”

8. Measure – post – track – reward/punish

THANK YOU

If you have any questions at all please do not hesitate to send a note or call. My email address is: john@johnspence.com

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