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Impact of Culture on Performance Shaun McCarthy Chairman Human Synergistics

Impact of Culture on Performance Shaun McCarthy Chairman Human Synergistics In the age of information, the success of any organisation is going be determined by how the people within the organisation think - brain force, not brute force

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Impact of Culture on Performance Shaun McCarthy Chairman Human Synergistics

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  1. Impact of Culture on Performance Shaun McCarthy Chairman Human Synergistics

  2. In the age of information, the success of any organisation is going be determined by how the people within the organisation think - brain force, not brute force

  3. In the age of information, the success of any organisation is going be determined by how the people within the organisation think - brain force, not brute force This is not an abstract concept - it actually determines your organisation’s ability to execute your strategy

  4. In the age of information, the success of any organisation is going be determined by how the people within the organisation think - brain force, not brute force This is not an abstract concept - it actually determines your organisation’s ability to execute your strategy We need to adopt a more systems approach -recognising inter-relationships - eg: how on earth can we separate task and people?

  5. Organisational Development Concerned with the functioning of an organisation Sees the organisation as a system (interacting parts) Based on the medical model (human system) Diagnosis - Prognosis - Prescription

  6. OutcomesEffectivenessCriteria Individual Outcomes Preferred CultureValues Causal FactorsLevers for Change Actual CultureOCI Norms Group Outcomes Organisational Outcomes Preferred Culture Actual Culture MissionandPhilosophy How Culture Works

  7. OutcomesEffectivenessCriteria Individual Outcomes Preferred CultureValues Causal FactorsLevers for Change Actual CultureOCI Norms Group Outcomes Structures Organisational Outcomes Systems Preferred Culture Actual Culture Technology Skills/ Qualities How Culture Works MissionandPhilosophy

  8. OutcomesEffectivenessCriteria Individual Outcomes Preferred CultureValues Causal FactorsLevers for Change Actual CultureOCI Norms Group Outcomes Structures Organisational Outcomes Systems Technology Skills/ Qualities How Culture Works Australia & NZ OCI PreferredN = 615 Australia & NZ OCIN = 4794 MissionandPhilosophy

  9. OutcomesEffectivenessCriteria Individual Outcomes Preferred CultureValues Causal FactorsLevers for Change Actual CultureOCI Norms Group Outcomes Structures Organisational Outcomes Systems Technology Skills/ Qualities How Culture Works Australia & NZ OCI PreferredN = 615 Australia & NZ OCIN = 4794 MissionandPhilosophy

  10. The impact of these cultures are: • At the Individual Level • Low satisfaction • Low motivation • Low commitment • High job insecurity

  11. The impact of these cultures are: • At the Group Level • Strong (within-in team) teamwork • Low (between teams) cooperation • Reports that a higher level of quality • could be achieved by workgroups

  12. The impact of these cultures are: • At the Organisational Level • Low level of external adaptability • Reports that higher levels of quality • could be achieved throughout the organisation

  13. So the impacts on bottom line performance are: • In the Retail Industry, culture at the store level • is directly related to…. • Sales growth • Shrink rate • Staff turnover • Event based performance (eg ‘sales’)

  14. So the impacts on bottom line performance are: • In the Manufacturing Industry, culture • is directly related to…. • Defect rates • Product recall rates • Warranty claims

  15. So the impacts on bottom line performance are: • In the Retail Banking Industry, culture at the • Branch level is directly related to…. • Risk management profiles • Sales growth • and at the back office level, • culture is directly related to…. • Processing quality (customer service)

  16. So the impacts on bottom line performance are: • In the Newspaper Industry, culture • is directly related to…. • Readership levels

  17. So the impacts on bottom line performance are: • In the Fast-food Industry, culture • is directly related to…. • EBIT • and • Staff turnover at the store level

  18. OutcomesEffectivenessCriteria Individual Outcomes Preferred CultureValues Causal FactorsLevers for Change Actual CultureOCI Norms Group Outcomes Structures Organisational Outcomes Systems Technology Skills/ Qualities How Culture Works Australia & NZ OCI PreferredN = 615 Australia & NZ OCIN = 4794 MissionandPhilosophy

  19. Gap Barchart of the Causal Factors

  20. Causal Factors as Levers for Change • A sense of purpose and meaning • Use your brain force • Leaders must lead

  21. A sense of purpose and meaning • Articulation of mission/philosophy • Vision/mission/purpose - what are you passionate about? • Shared philosophy about organisational life/core values. • Then this becomes central to everything.

  22. A sense of purpose and meaning • Articulation of mission/philosophy • Significance • Jobs are about achieving, not doing - why does the job exist? • How does the job impact on the mission? • Where can my personal effort make a difference?

  23. A sense of purpose and meaning • Articulation of mission/philosophy • Significance • Goal setting Goals now turn the vision into ground level reality

  24. Use your brain force - capitalise on your people asset • Involvement • Commitment comes through ownership and it’s hard to • have a sense of ownership without involvement. • Not just involvement though teams, but involvement in • improving how the organisation performs - an unrelenting • search for better performance (achieving the vision).

  25. Use your brain force - capitalise on your people asset • Involvement • Empowerment • If you have to operate with insufficient resources, then • support peoples’ capacity to experiment. • Replace fear of failure with attraction to success - it’s • an ongoing work in progress.

  26. Use your brain force - capitalise on your people asset • Involvement • Empowerment • Influence • How does every job impact on achieving the vision? • Prescriptive, not restrictive leadership.

  27. Leaders must lead • Facilitative leadership • The average manager/leader is pretty much totally unaware • of the impact they have on those they lead. • Facilitate task and interpersonal achievement.

  28. Leaders must lead • Facilitative leadership • Goal emphasis and feedback • Goals make the vision real on a day-to-day basis. • Feedback is a 8/5 if not a 24/7 activity.

  29. Leaders must lead • Facilitative leadership • Goal emphasis and feedback • Reinforcement/rewards • Line of sight between effort and outcome. • Positive reinforcement, well done and let’s celebrate!

  30. 2001 2000 1999 Culture: Behavioural Norms

  31. YAGO% B/(W) 1996 1997 1998 1999 2000 2001* 2002* 8.6 6.2 1.8 1.2 1.0 REVENUE 6.2 -0.8 -0.8 1996 1998 2000 2002 11.0 7.3 5.1 5.1 4 EBITA -1 19.6 14.0 -12 7.8 7.5 6.2 NPAT -16.1 * Before significant items -26

  32. Dr Robert Cooke on Leadership... “Managers cannot be considered to ‘lead’ (ie guide or direct) unless they in some way transform, shape, or influence the organisational context of members and the ways in which they approach their work and interact with one another”

  33. Building a Performance Culture: Practical Steps for Leaders

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