Download - DLA Culture Presentation
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The Defense Logistics Agency
Leveraging Corporate Culture ToImprove Bottom-Line Performance
DoDs ONLY LogisticsCombat Support Agency . . .
Supportingthe Military Services &
Combatant Commanders forOver 40 Years
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Scope of Business
#78 Fortune 500 - Above Lockheed Martin
Tops in Top 50 Distribution Warehouses
1312 Weapon Systems Supported
132.3M Annual Net Barrels Fuel Sold
$13.5B Annual Reutilizations/Disposals
23.3M Annual Receipts & Issues
22 Distribution Depots
4,000 Contracts/Day
30,000 Requisitions/Day
People
21,000 Civilians
488 Active Duty Military
618 Reserve Military
Located in 48 States/28 Countries
Foreign Military Sales
Sales: $719M annually
Shipments: 670M annually
Supporting 24 Nations
FY02 Sales/Services: $21.5B
FY03 Sales/Services: $24B (est)
Supply: $18.7B Annually
Land/Maritime/Missiles: $2.3B
Aviation: $2.7B
Troop Support: $7.8BEnergy: $5.9B
Distribution: $1.4B
Other: $1.4B
The DLA Enterprise
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Defense Logistics Agency
Defense
Reutilization
& Marketing
Service
Defense
Automation
&
Production
Service
Defense
National
Stockpile
Center
Defense
Logistics
Information
Service
DLA
Pacific
DLA
Europe
DSC
Columbus,
OH -Maritime/
Land/
Missiles
CORPORATE STAFF
Defense
Distribution
Center,New
Cumberland,
PA
Energy
Support
CenterFt Belvoir,
VA
DSC
Richmond,
VA -Aviation
DSC
Philadelphia,
PA -Troop
Support
Other Service Areas
Business Units
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FY 04-09
Characteristics:
Light and Agile
Smaller Footprint
Knowledge Based
Integrated Processes
Service Oriented
Collaboration with CustomersProactive
Transformation Plan:
Business Systems Modernization
Strategic Distribution
Competitive Sourcing
Shift to Commercial Practices
What We Want DLA To Be
Tomorrow
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Business Systems Modernization
Incorporating Commercial and Best Practices Via
Commercial off-the-Shelf (COTS) Based Tools
Replacing 30-year old Legacy Information System with
State of the Art Technologies Major Reengineering Effort From Functionally
Stove-Piped Segments to Cross-Cutting Enterprise-Wide
Processes
Projected FY 04-09 Savings = $399M
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Why Worry about Culture?
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Culture As A Barrier
Culture can be a
major barrier to
theimplementation
of an
organizationsstrategic
objectives
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Ignoring theunderlying cultural
foundations means
that the same oldpatterns will
continue to showup
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PMA, OMB & OPM Integrate
Culture into Performance Goals
Presidents Management Agenda -- Strategic Managementof Human Capital initiative integrates aspects of culture.
Office of Management and Budget (OMB) Scorecard --Government needs toSustain High-Performing Workforcethat is Continually Improving Productivity.
Office of Personnel Management (OPM) Scorecard --
Performance Goals:
Agency Fosters a Climate that Values Diversity.
A Culture of Learning and Growth Exists. Strategic Awareness.
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What is Culture ?
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Culture: A Definition
The shared set of
assumptions, beliefs, values,
and behavioral patterns of agroup that guide that groups
perceptions, judgments, andactions
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is like the operating system of the
organization. It guides what people
think and how they act and feel
Culture
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Culture is not
just an espoused list of valuesdeveloped by a group of
executives
at an offsite
The IDEAL you desire
may be very different from the REALITY you live
Kumbaya
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LEVELS OF CULTUREFROM TANGIBLE TO DEEPLY EMBEDDED
AND UNCONSCIOUSArtifactsconcrete, visible expressions andovert behavior patterns
Norms--behavioral expectations
Conscious, values , beliefs , assumptions and
ideology
Unconscious values , beliefs, assumptions andideology
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How DLA is Addressing Culture
First, we ensured Strategic Alignment:
Strategic Plan Goal 3: Create and Manage a Customer-Focused
Corporate Culture
Balanced Scorecard: Learning and Growth QuadrantLG-2: Create and Manage a Customer-Focused Culture
LG-2A: Leadership Assessment: Modeling the Desired Culture
LG-2B: Employee Perceptions of the DLA Culture
Second, we identified the desired aspect of corporate culture
necessary to accomplish strategic goal (customer-focused).
Finally, we assessed the current culture based on the desiredculture and have Culture Champions conducting
organization development activities to close gaps.
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DLA adopted a performance-basedculture model/assessment/360-
degree leader feedback tool
containing the desired aspects of
culture necessary to accomplish its
strategic goal of Creating andManaging a Customer-Focused
Corporate Culture
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Denison Culture Model
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Objectively Measuring Culture
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Strategic Direction and Intent - Clear strategic intentionsconvey the organization's purpose, make it clear how everyonecan contribute and "make their mark" in the industry.
This organization has a clear mission that gives meaning anddirection to our work.
This organization has a long-term purpose and direction.
The strategic direction of this organization is unclear to me.
This organization has a clear strategy for the future.
Our organization's strategy is leading other firms to change theways that they compete.
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Appointed Agency-/Activity-level Culture
Champions helped publicize the desired aspects of
culture and are helping their leaders to implementsuggested action steps for tangible performance.
Transformation activities include organizational
development and training needs necessary for culture
change.
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Cultures are Not Homogeneous
Functional
or Departmental
Site
Hierarchic
Geographic/Regional
Old/New
Divisional
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Culture and Leadership
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Culture and leadership are
two sides of the same coinand neither can be understood
by itself.
Edgar Schein
Culture and Leadership
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Employees work together in teams
Employees are given a great deal ofautonomy
Risk taking and creativity are encouraged There is an atmosphere of trust
Change is embraced
Employee empowerment is high
Organization is customer-focused Social relationships are encouraged
Procedures are flexible and informal
What SeniorManagement
Believes
What EmployeesSee
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InvolvementCommitment..Ownership..Responsibility
Building human capability, ownership, and
responsibility
Are our people aligned and engaged?
AdaptabilityPatternsTrends Market Place
Translating the demands of thebusiness environment into action
Are we listening to the marketplace?
MissionDirection..Purpose..Blueprint
Defining a meaningful long-termdirection for the organization
Do we know where we are going?
ConsistencySystemsStructuresProcesses
Defining the values and systems that are the
basis of a strong culture
Does our system create leverage?
Denison Leadership Model
Every Leader Needs to Have Skills in These Four Areas!
These Four Concepts are Used to Define Leadership Skills
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When it comes to establishingor changing a culture the leader
sets the tone