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© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential Culture and Engagement: the New Success Imperative Confessions of a Recovering Skeptic

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Page 1: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Culture and

Engagement: the New Success

Imperative Confessions of a

Recovering Skeptic…

Page 2: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

My Journey… Chief Financial Officer…

…Chief People Officer

2011 - 2015

103% 114%

2

Page 3: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Three things…

Business success today requires a strong and enduring culture to complement other differentiating factors such as product, market

position, timing, etc.

The changing workforce requires new attitudes and practices to effectively engage prospective team members.

Health Catalyst culture and team member engagement have been at least as important to our success as an organization

thus far as any other factor.

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Page 4: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

First thing:

Business success today requires a strong and enduring culture

to complement other differentiating factors such as product, market position, timing, etc.

4

Page 5: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

What is your Why?

“People don't buy what you do; they buy why you do it. AAnd what you do simply

proves what you believe”

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-- Simon Sinek

Page 6: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Health Catalyst Mission

Build a great firm

Be the recognized leader in data warehousing, analytics, and outcomes improvement

Transform healthcare

Is everything on my priority list each day contributing to at least one of these objectives?

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Page 7: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Outcomes Improvement

We measure our success in

patient lives saved or improved

by our partner organizations.

It’s why we do what we do

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Page 8: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential 8

…lives saved from sepsis, in…

…days.

Page 9: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Smart

Cultural Attributes

Humble Hardworking

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Page 10: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Smart

I love to learn and I am a lifelong student

I strive to master new skills quickly with limited direction

I actively discover and pursue innovative solutions

I fail fast, recognize my mistakes and correct them quickly

Smart

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Page 11: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Hardworking

I make personal sacrifices, as needed, to get the job done

I pace myself to avoid burnout (this is a marathon not a sprint)

I stick to the task until the job is completed, then take on new work

I am willing to contribute more than my fair share to a project

I recognize that not every part of my job will be fun

Hardworking

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Page 12: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Humble I am grateful for what I have

I serve others without looking for recognition

I recognize that good ideas can come from anyone

I assume positive intent

I am open to and respond favorably to feedback and coaching

I am secure in my own abilities (humble self-confidence)

I seek to improve myself before trying to improve others

I ask for help when I need it (its ok to raise the white flag)

I am excited when others succeed and offer sincere praise

I put the success of the company above my own self-promotion

Humble

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Page 13: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Does Culture Drive Financial Results?

Revenue growth…

Employment growth…

Stock price growth…

Net Income growth…

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John Kotter and James Heskitt – Culture and Performance

Page 14: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Second thing:

The changing workforce requires new attitudes and practices to effectively

engage prospective team members.

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Page 15: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

How to engage team members?

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

0

50

100

150

200

250

300

350

400

450

500

550

2011 2012 2013 2014 2015 2016

Total Team Members Millenials

26% 26% 27%

35%

39% 40%

0

50

100

150

200

250

300

350

400

450

500

550

2011 2012 2013 2014 2015 2016

Total Team Members Millenials

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Page 16: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Millennials By 2020, a full 86 million Millennials will be in the workplace—representing a full 40% of the total working population.

How do Millennials say they like to work?

“It’s a priority for me to make the world a better place.”

“I want a boss to serve more as a coach or mentor.”

“I want “work-life integration,” which isn’t the same as work-life balance.”

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The Intelligence Group - 2014

Page 17: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential 17

“Today’s organizations live in the Glassdoor era. Every corporate decision is

immediately publicly exposed and debated. Once-private issues are are now posted

online for every employee--and every potential employee--to read. An organizations

culture—which can be loosely defined as “the way things work around here”—is

increasingly visible for all the world to see… an organization’s culture cam become a

key competitive advantage,or its Achilles’ heel.

Culture and engagement are now business issues... and there’s no place for

organizations to hide.”

Global Human Capital Trends 2015, Deloitte University Press

Page 18: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Does Engagement Drive Team Member Results?

With strong engagement, your team members are more likely to:

Stay at work late if something needs to be done after the normal workday ends…

Help someone at work even if they don’t ask for help…

Do something good for the company that is not expected of them…

Recommend that a friend or relative apply for a job at their company…

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Temkin Group 2015

Page 19: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Third thing:

Health Catalyst culture and team member engagement have been at least as important to our success

as an organization thus far as any other factor.

Page 20: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Team members engage each other

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Page 21: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Team Members Self-Motivate

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Before  joining  Health  Catalyst,  my  body  had  been  on  a  long  slow  road  of  neglect  and  degrada9on  over  the  space  of  about  10  years…      ...it  was  to  the  point  where  I  could  not  9e  my  shoes  without  geBng  red  in  the  face  from  held  breath  and  strain…

Health  Catalyst's  Get  Fit  Stay  Fit  challenges  have  added  some  much-­‐needed  fun  and  accountability  to  the  mix…  at  the  start  of  the  Q4  Get  Fit  Stay  Fit  challenge  un9l  today,  it  has  been  over  a  year  since  I  made  that  commitment…      My  quality  of  life,  or  at  least  my  enjoyment  of  life,  has  been  increased  exponen9ally  just  by  doing  ONE  ac9ve  thing  per  day,  every  single  day  and  by  making  it  fun…  

Get Fit Stay Fit Mobile App

85% participation

Page 22: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

“When your team members love what they do, so will your customers…” -Simon Sinek

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Contract Bookings and Customer Growth

0

5

10

15

20

25

30

35

40

2011 2012 2013 2014 2015 Contract Bookings Number of Customers at YE

Con

trac

t Boo

king

s, m

illio

ns

<$10 million:

>$160 million:

Page 23: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

“If you hire people just because they can do a job, they’ll work for your money. But if you hire people who believe what

you believe, they’ll work for you with blood and sweat and tears.”

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-- Simon Sinek

Page 24: New York Best Places to Work Roadshow | Health Catalyst

© 2015 Health Catalyst www.healthcatalyst.com Proprietary and Confidential

Three things… Business success today requires a strong and enduring culture

to complement other differentiating factors such as product, market position, timing, etc.

The changing workforce requires new attitudes and practices to effectively engage prospective team members.

Health Catalyst culture and team member engagement have been at least as important to our success as an organization thus

far as any other differentiating factor.

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