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1 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Identifying the Value Pointswithin the Corporation
1 Hour Workshop
Alliance for Corporate Wealth Conference
www.corporatewealth.info
Presented by:
Matt H. Evans, CPA, CMA, CFM
January 21, 2005
Orlando, Florida
2 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Workshop Agenda
I. Introduction
II. Common Value Points
III. Emerging Value Points
IV. The LPI Model
V. Value Dynamics Framework Model
VI. Denison Cultural Model
VII. The Creativity Model
VIII. Closing Comments
IX. Additional Information
3 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Introduction
• Purpose of this workshop:
- Outline some good focal points for creating higher value
within the corporation
- Provide some practical tools and techniques that
everyone can start to use immediately
- Help frame the knowledge base for the Alliance for
Corporate Wealth
4 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Common
Value
Points
5 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Common Value Points – Four Good Sources
• Value Based Finance
• Balanced Scorecard Enablers
• Human Resource Capital Scorecard
• Strategic Business Analysis = Competitive Intelligence
6 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Value Based Finance – From Accounting to Real Finance
Traditional AccountingTraditional Accounting Value Added FinanceValue Added Finance
Historical, Looking Back
Oversight and “Cop” Like
Narrow understanding of the business
Financial performance only
Bottom Line / Short Term
Cost Control
Advocates profits
Transaction oriented / approvals
Backward checking
Enforces rules / compliance
Predictive Forecasting
Service oriented
Broad in-depth understanding of the business
Non Financial Performance linked to Financial Performance
Customer / Long Term
Process Improvement
Advocates value
Manages and works to resolve
Integrate and Re-Design
Internal Consultant / Facilitates
7 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Benefits of Value Based Finance
• By focusing on non-financial measurements, the finance function pulls in other functional areas into the value management process.
• Finance is the main proponent of value – educating others on how value is created.
• Finance adds value through major projects:
- Define Organizational Performance
- Leads Initiatives on process improvement
- Improve out-of-date systems
- Value Chain Analysis
8 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Scorecard Enablers – Applying the Generic Drivers
• Generic Models provide a good starting point for understanding what drives value:
- Customer Value comes from certain value drivers: Quality,
Time, Pricing, Image, Reputation, Innovative features, etc.
- Process Value comes from three phases in process
delivery: Pre Delivery (meet customer demands in a pro-
active way), Delivery (Rapid turnaround times), and Post
Delivery (After sale service)
- Organizational Value comes from employee results,
system results, and organizational culture.
9 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Human Resource Capital Scorecard
• The value created by people is often intangible – knowledge, leadership, collaboration, etc.
• Standard financial measurements are usually inappropriate for measuring human resource capital.
• Sources of value other than people are potential sources until human interaction takes place.
• How people are managed has profound implications on organizational performance and value.
• The HR (Human Resource) Capital Scorecard measures the management activities associated with Human Resource Capital.
10 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
HR Capital Scorecard Framework –Built Around Four Basic HR Activities
ACQUIRE – – Hiring practices, Recruitment, Fill Rates, Quality of New Hires, etc.
ACQUIRE – – Hiring practices, Recruitment, Fill Rates, Quality of New Hires, etc.
HR StrategicHR StrategicPlanPlan
MAINTAIN – – Compensation, Benefits Administration, etc.
MAINTAIN – – Compensation, Benefits Administration, etc.
RETAIN – – Identify top talent, retention programs, motivation, etc.
RETAIN – – Identify top talent, retention programs, motivation, etc.
DEVELOP – – Coaching, Training, Supervision, Job Rotation, etc.
DEVELOP – – Coaching, Training, Supervision, Job Rotation, etc.
Source: The ROI of Human Capital by Jac Fitz-enz
Traditional Financial Metrics such as Cost per
Hire vs. Value Added Metrics such as
Satisfaction with Hire
11 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Strategic Business Analysis through Competitive Intelligence
• Strategic Planning is dynamic through Competitive Intelligence (CI)
• Competitive Intelligence is required to protect your competitive advantages in the marketplace
• Risk Management is too internal and CI brings an external dimension to risk management
• Senior Management is too inward in their thinking and you need CI as a reality check
12 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Emerging
Value
Points
13 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Emerging Trends for Understanding Value Points Going Forward
• The discipline of management will give way to the discipline of leadership
• Complex adaptive systems will help advance the concept of the Learning Organization
• Organize around processes as opposed to functional silos for increased flexibility and innovation
• Processes will become more simple, self serve, and more collaborative.
• Technology has and will continue to be an important component of value – especially emerging technologies such as Nano-Technology.
14 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Leadership Practices Inventory (LPI) Model
15 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Measuring Leadership using the LPI Model
• Leadership Practices Inventory (LPI) Model was developed by James M. Kouzes and Barry Z. Posner.
• Based on 20 years of research and supported by case studies with 10,000 leaders and 50,000 constituents.
• Recognizes that leadership is a measurable behavior that people can observe.
• Uses assessment surveys from both the leader and observers of leaders. Creates greater awareness of how to improve leadership competencies.
16 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
LPI Model Components
The LPI Model is built around five leadership practices and ten leadership commitments:
Model the Way
• Find Your Voice• Set the Example
Inspire a Shared Vision
• Envision the Future• Enlist Others
Challenge the Process
Enable Others to Act Encourage the Heart
• Search for Opportunities• Experiment and Take Risks
• Foster Collaboration• Strengthen Others
• Recognize Contributions• Celebrate the Values and
Victories
17 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
LPI Model – Annual Survey from Observers of Leaders
1. Sets a personal example of what he / she expects of others.
2. Develops cooperative relationships among the people he / she works with
3. Praises people for a job well done.
4. Actively listens to diverse points of view.
5. Appeals to others to share an exciting dream of the future.
6. Treats others with dignity and respect.
7. Supports the decisions that people make on their own
8. Talks about future trends that will influence how our work gets done.
Rating Scale: 1 – Almost Never | 2 – Rarely | 3 – Seldom | 4 – Once in a While | 5 – Occasionally | 6 – Sometimes
7 – Fairly Often | 8 – Usually | 9 – Very Frequently | 10 – Almost Always
18 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Resources on the LPI Model
• Very inexpensive and practical model - $ 65.00 for complete CD and Surveys – Facilitator’s Guide:
• Visit www.leadershipchallenge.com for more information.
•
19 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Value
Dynamics
Framework
20 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Value Dynamics Framework Model
• Based on a three-year study of 10,000 companies by Arthur Andersen.
• Used to determine how well a corporation is taking advantage of its asset capabilities.
• Rates the contribution of assets and helps corporations leverage all assets for driving higher value.
• Distinguishes the relationships of how assets add value in combination with one another.
• Recognizes that assets are not fully controlled by the corporation – customers, suppliers, partners, etc.
• Uses a much broader definition of assets (beyond the accounting model) for creating value.
21 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Basic Principle behind Value Dynamics Framework
• Assets have inbound and outbound relationships; customer assets are outbound whereas employee assets are inbound (convert resources into products and services)
• All assets have outputs – Organizational assets (systems, information, etc.), Financial Assets (cash flow, etc.)
Customer
CustomersDistributors
ChannelsAffiliates
EmployeesSuppliersPartners
Employee/Supplier
CashReceivablesDebtEquityInvestments
Financial
Physical
LandBuildingsEquipmentInventory
Leadership Strategy • Knowledge
• Values • Brand
Organization
Innovation • Systems • Process • Culture •
IP
By understanding these relationships, we
“crack the value code”
By understanding these relationships, we
“crack the value code”
22 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Critical Concept – From Tangible to Intangible Assets
PhysicalAssets
Employee& Supplier
Assets
CustomerAssets
FinancialAssets
Organization
Assets
Increasingly, value points are coming from the Intangibles, outside of the traditional accounting model.
In the old manufacturing economy, Balance Sheet assets in the accounting model were the critical value points.
23 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Creating the Overall Model
• Identify and classify your assets into the five categories.
• Understand the relationship of assets and how they are used within the business.
• Front End Survey Work: Determine qualified people who can confirm how assets are used and what value they contribute to the business.
• Conduct Value Dynamics Survey for all five asset categories.
• Back End Survey Work: Reach consensus on final data through workshops, peer exchanges, and other forums.
• Align your business model around those assets that add the most value. How should we use our assets going forward?
24 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Survey Questions – How well is your company using employee assets?
For employee recruiting process?
For employee training program?
For employee satisfaction data? For resources to improve employee quality of life?
For information technology to leverage employee knowledge?
For collaborations or joint ventures to start new businesses?
Best Very Above Below Very Worst Don’t
Practice Good Good Average Average Average Poor Poor Practice Know
Needs Does the Best Don’t
Work Job Practices Know
Second Pass on Survey – More precision
First Pass on Survey – Basic Feel for How Data is Breaking
If you are getting a lot of Don’t Knows, then you need to conduct some educational workshops with survey candidates before you continue with the survey and development of the Model
25 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Resources on the Value Dynamics Framework
The Value Dynamics Framework is completely documented in
the book: Cracking the Value Code by Richard E.S. Boulton,
Barry D. Libert, and Steve M. Samek.
“Organizations are creating value in totally new ways, using assets and combination of assets heretofore unrecognized under traditional accounting systems – and certainly unmeasured. In such a milieu, old methods of managing and measuring are simply not up to the task. To ignore the significance of the changes afoot in business today is to ignore reality itself as the page turns on a new millennium. And what organization can thrive, or even survive, in a world of illusion? None.”
- Cracking the Value Code
26 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Denison
Cultural
Model
27 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Denison Model - Introduction
• The culture of an organization, whether explicit or implicit, is fundamental to the execution of strategy and high performance.
• The Denison Model was developed by Daniel Denison and William S. Neale based on 15 years of research with 1,000 companies.
• The Denison Model describes organizational culture around four traits consisting of twelve management practices.
• Very business oriented – directly linked to the bottom line.
28 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Denison Model Framework
Degree to which the organization is clear about its vision, goals, objectives and strategic direction
Degree to which the organization has values, systems, and processes that support the vision, goals, objectives, and strategy
Degree to which the organization clearly understands the needs and requirements of customers, responds and adjusts to meet those needs
Degree to which everyone is engaged and involved in helping move the organization forward
29 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Three Critical Management Practices of the Consistency Trait
Coordination and Integration - Different functions and units of the organization are able to work together well to achieve common goals. Organizational boundaries do not interfere with getting work done.
Agreement - The organization is able to reach agreement on critical issues. This includes both the underlying level of agreement and the ability to reconcile differences when they occur.
Core Values - Members of the organization share a set of values which create a sense of identity and a clear set of expectations.
30 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Survey Question Examples – Consistency Trait
31 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
How to use the Denison Model
• Do you have cultural issues?
• Propose solutions to address your issues.
• Set targets and take action steps to change your culture.
• Understand the benefits – How do the action steps close the gaps?
• Determine the risks of not taking action to close your cultural gaps.
• Due Diligence - Compatibility issues prior to a merger.
• Benchmark against other companies from the Denison Database.
32 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
High and Low Performers – Denison Model
High Performing Companies
Composite of companies that had an ROI of 30%
Low Performing Companies
Composite of companies that had an ROI of 9%
33 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Resources on Cultural Assessments
For more information, visit www.denisonculture.com
Facilitator’s Guide for Cultural Compass - $ 98.00. Visit www.newtrainingideas.com
34 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Creativity
Model
35 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Important Concepts behind the Creativity Model
• Creativity Model is based on the highly respected research of Carl Jung, Katherine Briggs, and Isabel Myers.
• Breaks long-standing myths about creativity:
- Creativity is NOT about ideas, it’s about the range of outcomes that are available to the organization.
- Creativity is NOT about certain talents (art, music, etc.), it is about using the eight creative talents that are found in everyone.
- Creativity is NOT about being different, but more about articulating results that no-one else recognizes.
• Creativity is critical to problem solving because of increased complexity, the need for innovation, and increased competition.
36 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Creativity Model Framework –Eight Creative Talents
AdventurerAdventurer
NavigatorNavigator
ExplorerExplorer
VisionaryVisionary
PilotPilot
HarmonizerHarmonizer
InventorInventor
PoetPoet
Quick to Act, Self Expressive, Aggressive Problem Solver, FunQuick to Act, Self Expressive, Aggressive Problem Solver, Fun
Very Precise, Highly Focused, Analytical, Curious, Systematic Very Precise, Highly Focused, Analytical, Curious, Systematic
Social, Helpful, Good People Skills, Seeks Consensus, Flexible Social, Helpful, Good People Skills, Seeks Consensus, Flexible
High Values, Tolerant, Quietly Curious, Supportive, Skilled WriterHigh Values, Tolerant, Quietly Curious, Supportive, Skilled Writer
Great sense of Future, Big Picture, Comprehends ComplexityGreat sense of Future, Big Picture, Comprehends Complexity
Organizing, Planning, Team Leader, Systems Thinker, Sets Goals Organizing, Planning, Team Leader, Systems Thinker, Sets Goals
Very Open, Good Source of Ideas, Energetic, Pursues New ThingsVery Open, Good Source of Ideas, Energetic, Pursues New Things
Deliberate, Observant, Thorough, Grasp’s Details, Helps Clarify Deliberate, Observant, Thorough, Grasp’s Details, Helps Clarify
37 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Key Points about the Eight Creative Talents
• All eight talents have equal value.
• All eight talents work differently.
• You need access to all eight talents for creating different results – cover all the bases.
• Since people have different creative talents, a team environment helps leverage all eight creative talents.
• If you can consistently apply all eight creative talents, then your organization will have more control over its destiny.
• Understanding and using the Myers-Briggs Type Indicator will help explain how you can apply all eight creative talents.
38 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Myers Briggs Types aligned around the Eight Creative Talents
Extroverts – Sociable, people oriented, works well in groups, interacts, engaging.Introverts – Intense, works through ideas, reflects, reserved, few relationships.Sensing – Practical, responsive, realistic, factual, accurate, detail oriented.Intuitive – Insightful, innovative, forward thinking, strategic, learning, inspires.Thinking – Logical, objective, reasoning, consistent, analytical, information user.Feeling – Personal, cooperative, values, relates to others, persuades, humane.Judging – Decision maker, planning, goal oriented, fast to act, hard working.Perceiving – Flexible, adaptive, casual, goes with the flow, improvise.
AdventurerAdventurer NavigatorNavigator ExplorerExplorer VisionaryVisionary
PilotPilot HarmonizerHarmonizerInventorInventor PoetPoet
• INTJ
• INFJ
• ISTJ
• ISFJ
• ESTP
• ESFP
• ENTP
• ENFP
• ISTP
• INTP
• ESTJ
• ENTJ
• ISFP
• INFP
• ESFJ
• ENFJ
39 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Resources on the Creativity Model
The Creativity Model is completely documented in the
book Breakthrough Creativity by Lynne C. Levesque.
For more information, visit www.lynnelevesque.com
“Creativity drives growth, and creative people drive every great enterprise. It’s not too trite to say that. These days, we’re all too easily caught up in the tactics of competition. We can forget that sustainable advantage is ultimately a function of a company’s ability to consistently generate, develop, and sell valuable ideas. Which is to say, creativity is at the heart of work and business.”
- John A. Byrne, Editor – Fast Company Magazine, December 2004
40 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Overall Framework for applying these tools and techniques (Big Picture)
Value Dynamics Framework Dennison Cultural Survey
Identify Major Value Related Issues
Communication and Management Systems
Strategies, planning, and budgeting
Vision Goals
Competencies
Products - Services - Processes
Determine how these value related
issues align to various layers
within your Organizational
Framework
LPI Model Competitive Intelligence Creativity Model
Apply specific techniques to close
the value gaps within your
Organizational Framework O
rgan
izat
ion
Fram
ewor
k (I
BM
Mod
el)
41 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Closing Comments
• Most value points are easy to recognize and conceptually, they are easy to comprehend.
• However, getting management “value-focused” is not easy and therefore, most corporations have significant points of value that need further development.
• Ironically, getting the plane off the runway seems to be the biggest challenge . . . .
• And if corporations would just start with a modest understanding of where value comes from (leadership, culture, etc.), the corporation could realize enormous increases in value.
42 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Additional Information
Download presentation and reference files from:
www.exinfm.com/workshop.html
1. Workshop Slides (powerpoint)
2. Building HR Capital
3. Aligning Human Capital with Business Strategy
4. Value Dynamics Presentation
5. Five Ways to Develop Corporate Culture
6. Organizational Cultures that Get Financial Results
7. Applications of the Denison Cultural Model
43 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Questions and Comments
Matt H. Evans, CPA, CMA, CFM
Email: matt@exinfm.com
Phone: 1-877-689-4097
44 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Back Up
Slides
45 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Survey Questions – How well is your company using physical assets?
Real estate / land for productive use or investment?
Buildings and facilities?
Existing equipment or newly acquired equipment?
Inventory management to minimize risk of not delivering?
Information technology infrastructure?
Supply chain management to optimize the use of and need for physical assets?
Best Very Above Below Very Worst Don’t
Practice Good Good Average Average Average Poor Poor Practice Know
Value Dynamics Model
46 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Survey Questions – How well is your company using financial assets?
Cash reserves?
Receivables in minimizing the cash-conversion cycle?
Investment strategies in order to increase profitability?
Debt strategy to manage or eliminate debt?
Equity to further business expansion?
Information technology to enable financial management?
Best Very Above Below Very Worst Don’t
Practice Good Good Average Average Average Poor Poor Practice Know
Value Dynamics Model
47 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Survey Questions – How well is your company using customer assets?
Customer satisfaction information?
Current customer information to expand customer base?
To develop customer loyalty?
Collaborative relationships to better serve customers?
Information technology to enable web-security?
Supply chain management to increase customer satisfaction?
Best Very Above Below Very Worst Don’t
Practice Good Good Average Average Average Poor Poor Practice Know
Value Dynamics Model
48 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Survey Questions – How well is your company using organizational assets?
Leadership to drive innovation and passion?
Business strategy ?
Structure to delegate the responsibilities?
Processes to identify business opportunities?
Culture to foster honesty and respect?
Branding in the marketplace?
Knowledge in product development and marketing?
Intellectual property?
Best Very Above Below Very Worst Don’t
Practice Good Good Average Average Average Poor Poor Practice Know
Value Dynamics Model
49 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Value Dynamics – Survey Process
Level of agreement acceptable?
Likely possibility that BUs have
independent assets?
Develop alternative model for Value Dynamics data representation
Facilitated Peer Exchange(Gartner Best Practice)
Reassess
Y YY
N N
Level of awarenessacceptable?
Conduct Workshops Reassess
Y
N
Develop standardValue Dynamics
data representation
Surveys Received
Value Dynamics Model
50 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Run survey data through quality control matrix for refining the data
Le
vel o
f a
gre
em
en
t
Level of awareness (% of respondents answering “Don’t Know”)High
Low
Low number of “Don’t Knows”&
High level of agreement
High number of “Don’t Knows”&
Low level of agreement
Low number of “Don’t Knows”&
Low level of agreement
High number of “Don’t Knows”&
High level of agreement
Value Dynamics Model
51 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Value Dynamic Recommendations –Within the Business Model
Vision & Goals
Competencies
Communication & Management Systems
Strategies, Planning & Budgeting
Action Items
• Develop a competency model and performance management system.
Benefits
• A competency model will outline the necessary knowledge, skills and abilities for each position, allowing employees to understand how their jobs fit into the goals and values of the organization.
• A performance management system will ensure employees and functional areas are evaluated using standardized performance metrics.
ISSUE: Management does not believe they have the competencies necessary to meet customers’ needs, nor do they feel empowered to use the competencies they do have.
52 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Three Critical Management Practices of the Adaptability Trait
Creating Change - The organization is able to create adaptive ways to meet changing needs. It is able to read the business environment, quickly react to current trends, and anticipate future changes.
Customer Focus - The organization understands and reacts to their customer, and anticipates their future needs. It reflects the degree to which the organization is driven by a concern to satisfy their customer.
Organizational Learning - The organization receives, translates, and interprets signals from the environment into opportunities for encouraging innovation, gaining knowledge and developing capabilities.
Denison Cultural Model
53 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Three Critical Management Practices of the Mission Trait
Strategic Direction and Intent - Clear strategic intentions convey the organization's purpose, make it clear how everyone can contribute and "make their mark" in the industry.
Goals and Objectives - A clear set of goals and objectives can be linked to the mission, vision, and strategy, and provide everyone with a clear direction in their work.
Vision - The organization has a shared view of a desired future state. It embodies core values and captures the hearts and minds of the organization's people, while providing guidance and direction.
Denison Cultural Model
54 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Three Critical Management Practices of the Involvement Trait
Capability Development - The organization continually invests in the development of employees' skills in order to stay competitive and meet ongoing business needs.
Team Orientation - Value is placed on working cooperatively toward common goals for which all employees feel mutually accountable. The organization relies on team effort to get work done.
Empowerment - Individuals have the authority, initiative and ability to manage their own work. This creates a sense of ownership and responsibility toward the organization.
Denison Cultural Model
55 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Example of Action Plan - Denison Cultural Model
Denison Cultural Model
• Give the future the attention it deserves
• Develop a philosophy that long and short-term interests can be reconciled
• Make everyone in the organization familiar with your vision, mission, and goals
• Hold strategy articulation sessions to plan for the future. Communicate these plans (Vision, Mission, Goals) to employees, and ensure they know how their jobs fit into the company’s goals
• Create a list of criteria that projects must meet before they are accepted. Make sure short term and long term goals and interests are considered when creating criteria
• Determine the best communication vehicle to cascade the vision, mission, and goals to all levels of the organization
Recommendations Action Plan Benefits• If employees understand and can
positively identify with the Company’s vision, mission, and goals, there should be a positive impact on profitability, sales / revenue growth, market share, perceived quality, and employee satisfaction.
ISSUE: Need to better articulate the company’s vision, mission and goals. This will translate into increased revenue growth, quality, and employee satisfaction.
56 Matt H. Evans, CPA, CMA, CFMAlliance for Corporate Wealth
Combining the Results – Value Dynamics and Denison Cultural
E = Enabler
B = Barrier
Creating Change
Customer Focus
Organiz-ational
Learning
Strategic Direction &
Intent
Goals & Objectives
VisionCoordination & Integration
Agreement Core ValuesCapability
DevelopmentTeam
OrientationEmpower-
ment
Physical Assets
B B B
Financial Assets
E B B B B B E3
Customer Assets
E2 E B B B B B B B
Employee/ Supplier Assets
E E B B B B B B E3 B B
Organization Assets
E E B B B B B B B E3 B B
Involvement
DENISON
VALUE DYNAMICS
Adaptability Mission1 Consistency
This chart was developed by comparing Denison survey results to Value Dynamics concepts.
Value Dynamics and Denison Cultural Model
Major Cultural Issue impacting value
top related