organizational culture by design not default · 2018. 4. 1. · culture by default • evolves over...
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Organizational Culture by Design Not Default
Greg Honey and Peter Mayne
Farm Credit Canada
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What we’ll cover today
1. What does it mean to have a culture by design?
2. How did FCC go about transforming its culture?
3. How can a positive culture support talent mobility and retention?
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Why does this matter to you?
The mobility, engagement and
loyalty of your employees has the
potential to be a huge competitive
advantage in the age of talentism
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FCC: 100 offices dedicated to agriculture
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We believe that…
A deliberate and positive culture – supported by
the right leadership behaviours – is the key
to creating an unbeatable employee
experience.
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What is culture?
Simple definition: “The way we do things around here.”
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Where do cultures come from?
Culture by default
• Evolves over time
• Based on deeply-held shared assumptions about success
• How people behave and work together “just happens”
• Often originates from values and beliefs of the founder
• May or may not align with current business needs and challenges
Culture by design
• Deliberately created
• Based on a compelling vision of the future
• How people behave and work together is clearly specified
• Often originates from visionary leaders
• Should align with the present and future business needs and challenges
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Have a look at your own culture
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Transforming the culture at Farm Credit Canada
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How it began: the time was right to raise the bar
• FCC had solid
business results
• Visionary CEO
• Increasingly
competitive
business
environment
• Was “good” good
enough?
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Something was getting in the way
Talented,
thoroughbred
VPs focused on
getting great
business
results…
sometimes at
the expense of
people.
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Our people didn’t feel valued
• Low-trust
environment:
employees
shrinking the game
• Short-term results
not sustainable
over the long term
• Leaders focused
purely on results
were blind to their
impact
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The vision
Build a values-based
culture that inspires
employees to work
together to deliver high-
performance results
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The foundation of our culture
10
Cultural
Practices
100%
Accountability
Committed
Partnerships
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100% accountability is:
What can I do to make a difference?
How did I contribute to
the breakdown?
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How can I build a better
partnership?
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100% accountability is not:
It’s their
fault. I did my part.
They didn’t do
their part.
My boss never
listens to me!
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What do committed partners do?
• Look for positive intent from others
• Freely give and receive coaching.
• Feel safe to speak up responsibly in
any situation.
• Embrace breakdowns or difficult
conversations
• Seek opportunities to work in
partnership
• Regularly acknowledge others for
their contributions.
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Cultural transformation at a glance
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Senior leadership (2002-2003)
• Transformational change
• Address blind spots at identity level
• Work as one senior team
• Champion the new culture and way of working together (10 Cultural Practices)
Critical Mass (2004-2005)
• Top 20% of organization
• Transformational learning experiences
• New behaviours provide model for teams and build momentum – “my leader is acting differently”
All Employees (2005-06)
• Training for all employees (Holding to Account) led by internal facilitators
• Help them understand and embrace the behaviours related to the Cultural Practices
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Time
Tran
sfo
rmat
ion
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What we learned along the way
1. Culture starts at the top
2. Link to the business – compelling
future
3. Use a coach
4. Make the investment
5. Leaders must walk the talk
6. Actively manage the change
7. Reinforce consistently
Culture isn’t once and done – it’s a “way of being”
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The sustainability challenge
Building a winning culture is a
journey that never ends…
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Supporting talent management and retention
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You face some big challenges in your roles
How can a values-based culture by design help you address them?
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An employment brand that balances being “different” with being “consistent”.
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Trust, respect and integrity can be uncommon qualities
• In today’s war for talent, creating an employee experience that clearly sets you apart is a competitive advantage
• Our culture by design is “deliberately different.”
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Consistency is Key Under the top layer of culture, most organizations have dozens or even hundreds of “micro-cultures” -Curt Coffman, First Break All the Rules
Employees tend to leave their supervisor, not the organization - Curt Coffman, First Break All the Rules
What are the implications of this?
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What’s the outcome of all this?
• A competitive advantage based on the way we treat each other and the way we work together.
• Employees say good things about the organization, stay over the long term and strive to do their best.
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The measurable outcome
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FCC Employee Engagement Scores 2003-2012
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Engaged employees want to stay at FCC over the long term
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82% of our employees agree or
strongly agree with this statement: “It would take a lot
to get me to leave this organization.”
Voluntary turnover rate at FCC:
5%
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The ultimate payoff: business results
Measure 2002-03 2011-12
Lending portfolio $8.5 billion $23 billion
Net income $97.8 million $459.2 million
Market share 20% 27%
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Questions?
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