building a high performance work culture

7/31/2019 Building a High Performance Work Culture

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Bui ld ing a HighPer formanceCul ture

Regional Conference

Asia Pacific Lottery Association


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Performance culture benefits organizations universally,regardless of geography and industry

Its the Southwest culture that will continue to make thecompany different When you create a performance culturethat gives employees the creativity and innovationyou endup with the ability to turn a plane around faster.

Jeff Lamb, Chief People Officer of Southwest Airlines, U.S.

Source: Company websites, lit. search

People criticize everything the way we do things, what weneed to do in the marketplace it's only through that kind ofstrong performance culturethat drives self-improvement,which is one of our core values...

Steve Ballmer, CEO of Microsoft, U.S.

Performance management has reinforced my understandingof Oxfams values and principlesthat make changepossible.It has helped me deliver my job. I think we get more from ourwork and Oxfam gets more from us. That means that, in theend, the people we service benefit from us

Staff from Oxfam, U.K.


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Purposes of building performance culture are alsocommon across organizations

Source: McKinsey analysis

Drive companyperformance

1

Accumulatehuman capital

3

Purpose

Performanceexecution

2

Alignstakeholders

2

Performanceculture

Ensure every staff is performing totheir highest level

Set alignment and develop momentumfor the whole organization

Description

Maintain staff morale with sense ofachievement and belonging

Attract new talent

Communicate consistent message toexternal stakeholders (e.g. regulators,investors, customers)


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However, organizations not purely driven by profits mayface additional challenges

Profit-drivenSocially-oriented

Mission of

organization

Usually quite complex anddriven by social good/cause

Straightforward and drivenby profit maximization

Staffincentives

Staff motivated by intangiblefactors

Mainly driven by monetarycompensation

Impactmeasurement

Metrics often inherently difficultto measure due to subjectivenature of results

Straightforward andobjective financial metrics

Decisionmaking

Often need to balance interestof social responsibility andregulations

Often prioritized based onreturn on investment


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Performance culture includes set of clear targets and 4enablers

Vision, Mission, Values

Reinforcementmechanisms

Skillsrequired for

change

Consistent rolemodelsUnderstandingand conviction

A B

C D

Target

Enablers


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Setting the target with Vision Mission Values (VMV)

Vision, Mission,Values


Skillsrequired for

change

Consistent rolemodelsUnderstandingand conviction

A B

C D

Target

Enablers


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Vision, mission, and values are conceptually distinctivebut collectively define the organizations target

VISION - who we want to be

MISSION - what we want to do

Can be expressed as:

Companys reason for existence Strategic intent/ priorities

Obligations to stakeholders

VALUES - how we do things around hereCan be classified into:

How one should conduct oneself? How one should work with others? What one needs to do, to drive companys

performance?


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Examples of how VMV reflects world-class companiesaspirations

Vision

Mission

Values

Create a world where everyone can be connected.

To be the world's best quick service restaurant experience.Being the best means providing outstanding quality, service,cleanliness, and value, so that we make every customerin every restaurant smile.

To organize the world's information and make it

universally accessible and useful.

The right to be beautiful day after day:LOral strivesto make this a reality within the reach of every woman andevery man

Innovation Quality Community

Storytelling Optimism desire Decency

People Service Innovation

Integrity Responsibility Loyalty

Source: Company reports and websites


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Enablers are important to ensure staff lives theperformance culture

Vision, Mission, Values


Skillsrequired for

change

Consistentrole modelsUnderstandingand conviction

A B

C D

Target

Enablers


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4 key building blocks for driving performance culture

Consistent role modelsB

I see superiors, peers,

and subordinates behaving inthe new way

Understanding and convictionA

I know what is expected ofme I agree with it, and it ismeaningful

Skills required for change

C

I have the skills andcompetencies to behave inthe new way

Reinforcement mechanisms

D

structures, processes, andsystems reinforce the change inbehavior being asked


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Understanding and convictionA

Commonchallenge

Staff unable torelate target towhat they do

everyday

What do you want me to do to

help the company to be a

global leader?

Ive been doing this for a

long time, what do you wantme to do differently?


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Regional strategy

Country plans

Individual goals

What do I do

tomorrow?

UNDP successfully makes VMV actionable and realto staff

Source: UNDP, McKinsey analysis

A

Specific targets for each level

Create anti-poverty action plan in two

regions

India puts in place pro-poor democraticpolicies with ten public institutions

Develop a model of regional cooperationfor Asia

Compile case studies of pro-poor policiescollaboration with public institution

Help people build better lifeVMV

Divisional objectives

Establish formal commitment from onepublic institution


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Consistent role modelsB

Common

challenge

Staff do not have achance to observe

top managementand peers walkthe talk

Source: Southwest Airlines, lit. search, McKinsey analysis

Are the top management

doing what they say? They

may be, but I just dont know

My colleagues are doing

great things which I heardfrom here and there, but Im

not sure if everybody knows


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Visible role models consistently reinforce thecustomer focused performance culture at Southwest

B

Herb Kelleher publicly demonstrated his actions by

regularly spending time loading baggage, ticketingcustomers, and mixing drinks on board

Top

management

"We always tell our people, 'Don't worry aboutprofit. Think about customer service

Herb Kelleherformer Southwest Airlines Chairman

All staff dedicated to undertaking cross-functionalduties (e.g. pilots cleaned up cabins, ramp workerssold tickets)

Success stories are publicized internally throughdifferent channels

Peers

Source: Southwest Airlines, lit. search, McKinsey analysis


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15Source: Singapore Airlines, lit. search, McKinsey analysis

Skills required for changeC

Common

challengeStaff often lackwork opportunitiesto practice theskills learned

I go through all these training,

but most of the time I dont

know how they apply in mydaily work

I learnt all these business

and accounting skills. Yet, Idont even get to see the

P&L


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16Source: Singapore Airlines, lit. search, McKinsey analysis

Singapore Airlines develops desirable behaviors byproviding training as well as practical opportunities

C

Specific training

SOAR Service Overand Above the Rest2-day sessions for

cabin crewSkills highly

applicable to daily

work and staffrequired to carrySOAR Guide Cardsall the time

Fus3ion Course3-day off-site in

BangkokAims to increase

understanding andbuild empathyacross divisions/functions

Practical opportunities

Regularly seeksinputs/feedbackfrom staff to make

training moreapplicable to theirwork

Rotation programs andcross-functionalprojects enable

participants from localand international officesto practice skills learned

SOAR Guide Cards


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Reinforcement mechanismsD

Source: NYPD, McKinsey analysis

Our work is team-based and

we dont want to pinpointindividual

I really want to improve mycustomer service but I just

dont know how Im doing!Common challenge

Difficult to trackprogress andidentify

performance painpoints


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Seniorstaff

NYPD has collective performance evaluationmechanism to regularly track progress, identify pain

points and share learning

D

Crime statistics ofprecinct #45

Precinctcommanders

Precinct #45commander

Fact base Use objective

statistics when

comparingperformanceacross teamsand time horizon

Regularity

Semi-weeklystrategy review

Transparency Performance reviewed

as a group buttransparent to wholeteam

Source: NYPD, McKinsey analysis


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J&J has successfully built a strong performance culturethrough equipping and creating a great sense of purpose

for staff


Skills required forchange

Consistent role modelsUnderstanding andconviction

Credo carved in stone atJ&J HQ and publiclydisplayed in all offices

Credo as important part ofrecruiting guidelines

J&J pulled Tylenol offthe shelves in the 1982crisis at a cost of $100million

Annual Credo survey Credo values built into

performanceevaluation

Monthly town hallmeetings andManagement informal talkof Credo

A

C

B

D

The Credoholds J&J

together,

guidingevery

action ittakes

Source: J&J, lit. search, McKinsey analysis

K k


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Key takeaways

1 Performance culture enables organizations to achievegreater heights

2 Levers for driving performance culture can be tangible andactionable

3 Performance culture brings out the best in people and you

can start making a difference

Source: _______


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Thank you


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Back up

J&J 308 word Credo defining the companys


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J&J 308-word Credo defining the companysresponsibilities to its customers, employees, the

community and stockholdersWe believe our first responsibility is to thedoctors, nursesand patients, to mothers and fathers and all others whouse our products and services.In meeting their needs everything we do must be of highquality.We must constantly strive to reduce our costs in order tomaintain reasonable prices.Customers' orders must be serviced promptly and accurately.Our suppliers and distributors must have an opportunityto make a fair profit.

We are responsible to ouremployees, the men and womenwho work with us throughout the world.Everyone must be considered as an individual.We must respect their dignity and recognize their merit.They must have a sense of security in their jobs.Compensation must be fair and adequate, and working

conditions clean, orderly and safe.We must be mindful of ways to help our employees fulfilltheir family responsibilities.Employees must feel free to make suggestions andcomplaints.There must be equal opportunity for employment,development and advancement for those qualified.

We must provide competent management, and their actionsmust be just and ethical.

We are responsible to thecommunitiesin which welive and work and to the world community as well.We must be good citizens support good works andcharities and bear our fair share of taxes.We must encourage civic improvements and betterhealth and education.We must maintain in good order the property we areprivileged to use, protecting the environment andnatural resources.

Our final responsibility is to ourstockholders.

Business must make a sound profit.We must experiment with new ideas.Research must be carried on, innovative programsdeveloped and mistakes paid for.New equipment must be purchased, new facilitiesprovided and new products launched.

Reserves must be created to provide for adversetimes.When we operate according to these principles, thestockholders should realize a fair return.

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