Building a Culture of Ownership

ALL HANDS ON DECK Building a Culture of Ownership on a Foundation of Values Porsche Cars North America December 10, 2010 Joe Tye, CEO and Head Coach, Values Coach Inc. Copyright © 2010, Values Coach Inc.

I make my living as a consultant, but I earn my keep as an…

Insultant! David Corbin, author of Illuminate: The Positive Power of Negative Thinking

Companies that study employee engagement* consistently find: ~ 25% fully engaged ~ 60% not engaged ~ 15% aggressively disengaged * e.g. Gallup, HR Solutions, Press Ganey

And it’s getting worse :-o “Disengagement, one of the chief causes of underachievement and depression, is on the rise.” Edward M. Hallowell, M.D. in HBR, 12-10

At Best Buy, a 0.1% increase in employee engagement generates a $100,000 increase in gross store revenue* * Harvard Business Review, October 2010

What’s wrong with this picture?

So why, 30 years later, have so few companies gotten the message?

“We didn’t undergo fundamental change by our own choice. It was forced on us. The wisest of people or institutions seldom can deduce, on their own, that change is needed. And if they do, they never muster the courage to act on that need.” Bob Lutz, quoted in Crash Course: The American Automobile Industry’s Roadfrom Glory to Disaster by Paul Ingrassia

The journey from mere Accountability to a culture of Ownership

Accountability Doing what you are supposed to do because someone else expects it of you. It springs from the extrinsic motivation of reward and punishment.

You cannot hold people “accountable” for the things that really matter.

Nobody ever checks the oil in a rental car!

Ownership Doing what needs to be done because you expect it of yourself. Ownership springs from the intrinsic motivation of pride.

Job description First and foremost a salesperson, last but not least a janitor, and in between whatever else needs to be done.

Cultural ownership is of the heart, not of the wallet

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“We have hundreds if not thousands of examples…” 522,963

It could happen to anyone! “Doctors take umbrage at Physicians’ Porsche Promo” Headline in HealthLeaders Media, 11-04-10

“Marketing in the future is like sex. Only the losers will have to pay for it.” Jon Bond, quoted in Fast Company, 12-10/1-11

Joe’s corollary Marketing in the future: a fired up employee with two networks.

The “Empowerment” Conundrum

You can’t always choose who you have on the bus

You can’t just throw all the “wrong” people off the bus

You can create a bus that everyone wants to ride

Emotional intelligence (right brain) is more important to your personal and professional success than intellectual and technical knowledge (left brain)

Management is a job description

And in today’s world we need leaders in every corner – not just in the corner office

Left Brain Counts Right Brain Creates

It’s not accountability (left brain) OR ownership (right brain).

It’s how we interrelate the two to create a whole brain culture.

What do you get when you break the word “assume” down into its constituent components?

Faulty Assumption #1 You can’t teach people values – if they didn’t learn in kindergarten, it’s too late.

Faulty Assumption #2 Culture is a given – especially in the short term you cannot transform it.

Faulty Assumption #3 You can “empower” people without them having doing the work of self-empowerment.

Faulty Assumption #4 What can’t be measured won’t get done.

Let’s watch as the word “assumption” gets deconstructed (along with those who made the assumption)

The “Invisible Architecture” of an organization “Invisible Architecture” is a trademark of Values Coach Inc.

Invisible Architecture™ is more important than bricks & mortar

Invisible architecture is to the soul of your organization what physical architecture is to its body.

“The only assets we have as a company [are] our values, our culture and guiding principles, and the reservoir of trust with our people.” Starbucks CEO Howard Schultz in Harvard Business Review, July-August 2010

Core Values are the Foundation

Core values define what you stand for and what you won’t stand for

“Our Credo is more than just a moral compass. We believe it’s a recipe for business success. The fact that Johnson & Johnson is one of only a handful of companies that have flourished through more than a century of change is proof of that.”

Highest customer satisfaction,[object Object]

The single most important thing I have learned in 16 years with Values Coach

Nobody learns everything they need to know in kindergarten! 410-page workbook Joe@JoeTye.com

We call our graduates “Spark Plugs”

93 “We know from our research that the people who are clearest about their [personal] vision and values are significantly more committed to their organizations than are those who are not clear about their vision and values.” James Kouzes and Barry Posner: A Leader's Legacy

Corporate culture is the superstructure

Culture is to the organization what personality and character are to the individual.

Culture Eats Strategy for Lunch!

“I came to see, in my decade at IBM, that culture isn’t just one aspect of the game – it is the game.”

“Success is the ability to bounce from failure to failure without loss of enthusiasm.” - Winston Churchill

“We need to see opportunities where others see barriers. We need to be cheerleaders when others are moaning doom-and-gloom.” From The Florence Prescription

“We need to face problems with contrarian toughness because it’s in how we solve those problems that we differentiate ourselves from everyone else.” From The Florence Prescription

“Brick walls are not there to stop you, they are there to make you prove how much you want something.” Randy Pausch: The Last Lecture

Optimism is a learnable skill* * Martin Seligman: Learned Optimism

Shawneen Buckley of Saint Francis Hospital and Health Center in Poughkeepsie, New York

Emotional attitude is the interior décor

Emotional attitude is defined by what you expect and by what you tolerate* *to permit is to promote

You cannot have a culture of ownership in an organization where the emotional climate is dominated by Emotional Vampires.

Toxic emotional negativity (T.E.N.) is the emotional and spiritual equivalent of cigarette smoke.

115 “One toxically negative person can drag down morale and productivity of an entire work unit.” The Florence Prescription, page 142

116 “It is a leadership responsibility to create a workplace environment where toxic emotional negativity is not tolerated.” The Florence Prescription, page 142

Building a Culture of Ownership 122

In its early days, Southwest Airlines wasn’t just selling cheap airline tickets – it was making it possible for Grandma to attend her grandchild’s college graduation.

The most memorable Coke ads barely mention fizzy brown sugar water.

Supportive Structure and Process 129

“Committable core values that are truly integrated into a company’s operations can align an entire organization and serve as a guide for employees to make their own decisions.” Tony Hsieh: Delivering Happiness: A Path to Profits, Passion, and Purpose

Zappos Family Core Values Deliver WOW Through Service Embrace and Drive Change Create Fun and A Little Weirdness Be Adventurous, Creative, and Open-Minded Pursue Growth and Learning Build Open and Honest Relationships With Communication Build a Positive Team and Family Spirit Do More With Less Be Passionate and Determined Be Humble Source: Zappos website

1. Deliver Wow Through Service Core Values Frog thinks anything worth doing is worth doing with WOW. To WOW, CVF differentiates himself by doing things in an unconventional and innovative way. He goes above and beyond the average level of service to create an emotional impact on the receiver and give them a positive story they can take with them the rest of their lives. Source: Zappos website

“Unlike most companies, where core values are just a plaque on the wall, our core values play a big part in how we hire, train, and develop our employees.” Tony Hsieh: The 2009 Zappos Culture Book* * $1995 at Zappos.com !!!

Culture is morally neutral. Enron had a powerful culture. Core values are the moral compass that shapes a positive corporate culture.

Trust is Expected and Earned 139

Lack of trust is like a tax that makes everything cost more and take longer.

“I am absolutely convinced that in most cases, prioritizing trust… will bring personal and organizational benefits that far exceed any other path.” Stephen M.R. Covey: The Speed of Trust: The One Thing that Changes Everything

“We trust each other at HP; never lock this cabinet again.” Note left by Bill Hewlett on a locked cabinet

And now, a motivational word from your manager…

Individual Creativity and Ingenuity 150

152 Can you imagine life without Post-It Notes?

There is always risk when you try to get out of the box

“Buckle up! It makes it harder for the aliens to suck you out of your car.”

The certainty of misery or the misery of uncertainty

Falling on your face is good for your head (fail early, fail often, fail small).

How do you answer the universal icebreaker question? What do you do?

Does your answer convey: I’m good at what I do. I love what I do. I’m proud of what I do. What I do is important.

What could be more boring than industrial ventilation systems?

Building a Culture of Ownership

Building a Culture of Ownership

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