jon_katzenbach_amplify11
TRANSCRIPT
Booz & Company June, 2011
Creating a more innovative cultureJon Katzenbach
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Culture matters
“Everything I do is a reinforcement, or not, of what we want to have happen
culturally. … You cannot delegate culture.”
Steve Ballmer, Microsoft CEO
“If you get the culture right, most of the other stuff will
just take care of itself.”
Tony Hsieh, Founder and CEO of Zappos.com
“Fixing the culture is the most critical – and most difficult – part of a corporate
transformation.”
Lou Gerstner, retired CEO of IBM
“No company can sell employees on a culture if it isn’t practiced, and believed
in, from the very top down.”
Colleen Barrett, former President Southwest Airlines
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But what is this fuzzy “culture” thing, really?
We Say an Organization’s Culture is …
…its self-sustaining patterns of behaving,
feeling, thinking, and believing
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Decision MakingInformation sharing
And what does an innovative culture look & feel like?
Leadership Effectiveness
Work Execution
Relationships
(In-)formal knowledge exchange
Being curious
Open feedback
Quick, informed decisions
Based on expertise
Non-risk averse
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Continuous improvement
Proactive behavior
Collaboration across units
Interacting based on trust
Market & competitor observation
Accountability
Encouraging experimenting
Mistakes as teaching moment
Decision MakingInformation sharing
(In-)formal knowledge exchange
Being curious
Open feedback
Quick, informed decisions
Based on expertise
Non-risk averseWork Execution
Leadership Effectiveness
Relationships
And what does an innovative culture look & feel like?
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Four imperatives when dealing with culture
Work “With and Within” Your Existing CultureWork “With and Within” Your Existing Culture
Use Viral MethodsUse Viral Methods
Mobilize Rational and Emotional ForcesMobilize Rational and Emotional Forces
Start with Changing Behaviors not MindsetsStart with Changing Behaviors not Mindsets
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1) Work “with and within” your existing culture
The existing culture can be a powerful source of energy
Culture is usually a product of good intentions and is rarely “all bad”
Understanding “the good” about an existing culture can accelerate change
It’s a long race - culture changes slowly
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Troubled organization in aftermath of Vietnam war
Morale was low; values and discipline severely damaged
Al Gray “resurrected & praised” elements of the traditional USMC culture
Embodied these elements in his own behaviors in highly visible ways
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Case study: U.S. Marine Corps
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2) Start with changing behaviors, not mindsets — it’s faster and more lasting
Three Levels of Corporate Culture
Invisib
le Elem
ents
Vis
ible
Ele
men
ts
Focus here first
Identifiable markers
Patterns of overt behaviors and interactions Ingrained approaches to performing tasks
and solving problems
Thoughts, feelings, and beliefs Corporate stories
Symbols
Behaviors
Thoughts, Feelings, Beliefs
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Balancing Rational and Emotional
Rational Emotional
Communities & NetworksVision
& Values
Strategy
Structure & Process
Purpose
Commitment & Pride
“Front Line”
Top Leadership
Culture Evolution
3) Mobilize Rational and Emotional Forces
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Three CEOs and their leadership teams had tried and failed
Programmatic change had been successfully resisted by ”nice culture”
Jack Rowe appointed CEO
Initiated behavior change at multiple levels - top, frontline and middle
Sit
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Case Study: Aetna Turnaround
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4) Spread the behavior changes virally
Multiple Mechanisms
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Pride Builder Cells
Communities
Focused Networks
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Largest Telco company in Canada - analogous to AT&T
Behaviors in market with customers were not differentiated
Strategy was revised and operating model redesigned but ...
Frontline employees were still not getting traction with customers
Started small, used viral methods to accelerate behavior change
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Case Study: Bell Canada
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Changing behaviors: Three sources of influence
Messaging
Programmatic
Interactive
Vision Values Engagement
Structures Processes Metrics
Informal networks Affinity groups Communities
Cultural Values
Critical Behaviors in Key Populations
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Example 1: P&G
Open working areas
Experienced, cross-functional teams
Portfolio mgmt capability
Technology game boards
Top10 consumer needs
Cultural Values
Critical Behaviors
Programmatic
InteractiveMessaging
Increasingly complex assignments for promising employees
Sr. level support that connects and develops
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Example 2: Global Technology Company
Executives roaming halls soliciting ideas
High executive salary during cost cutting
All executives resigned from community and civic leadership roles
Global Technology Company
Programmatic
Interactive
Cultural Values
Critical Behaviors
Divisions given autonomy to address unique needs
Stringent manager performance reviews
Indiscriminate cost-cutting
Coffee chats and town halls
Individual accountability requirements replacing team incentives
Messaging
Cursive: Actions detrimental to creating a more innovative culture
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Work “With and Within” Your Existing
Culture
Target Few Critical Behaviors
Mobilize Rational and Emotional
1 2 3
Use Viral Methods
Use Messaging, Programmatic, and
Interactive Approaches
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Five key takeaways to creating a culture that is much more innovative
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For more information
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