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Booz & Company June, 2011 Creating a more innovative culture Jon Katzenbach
Culture matters “ Everything I do is a reinforcement, or not, of what we want to have happen culturally. … You cannot delegate culture.” Steve Ballmer, Microsoft CEO “ If you get the culture right, most of the other stuff will just take care of itself.” Tony Hsieh, Founder and CEO of Zappos.com “ Fixing the culture is the most critical – and most difficult – part of a corporate transformation.” Lou Gerstner, retired CEO of IBM “ No company can sell employees on a culture if it isn’t practiced, and believed in, from the very top down.” Colleen Barrett, former President  Southwest Airlines
But what is this fuzzy “culture” thing, really? We Say an Organization’s  Culture is … … its self-sustaining  patterns of behaving,  feeling, thinking,  and believing
Decision Making Information sharing And what does an innovative culture look & feel like? Leadership  Effectiveness Work Execution Relationships (In-)formal knowledge exchange Being curious Open feedback Quick, informed decisions Based on expertise  Non-risk averse
Continuous improvement Proactive behavior Collaboration across units Interacting based on trust Market & competitor observation Accountability Encouraging experimenting Mistakes as teaching moment Decision Making Information sharing (In-)formal knowledge exchange Being curious Open feedback Quick, informed decisions Based on expertise  Non-risk averse Work Execution Leadership  Effectiveness Relationships And what does an innovative culture look & feel like?
Four imperatives when dealing with culture Work “With and Within” Your Existing Culture Use Viral Methods Mobilize Rational and Emotional Forces Start with Changing Behaviors not Mindsets 1 2 2 4 4
1) Work “with and within” your existing culture ,[object Object],[object Object],[object Object],It’s a long race -  culture changes slowly
Situation  1 2 3 4 Case study: U.S. Marine Corps ,[object Object],[object Object],[object Object],[object Object]
2) Start with changing behaviors, not mindsets — it’s faster and more lasting Three Levels of Corporate Culture Invisible Elements Visible Elements Focus here first ,[object Object],[object Object],[object Object],[object Object],[object Object],Symbols Behaviors Thoughts,  Feelings, Beliefs
3) Mobilize Rational and Emotional Forces Balancing Rational and Emotional Rational Emotional Communities  & Networks Vision  & Values Strategy Structure  & Process Purpose Commitment  & Pride  “ Front Line” Top  Leadership Culture Evolution
Case Study: Aetna Turnaround Situation  1 2 3 4 ,[object Object],[object Object],[object Object],[object Object]
4) Spread the behavior changes virally Multiple Mechanisms Pride Builder Cells Communities Focused Networks 4
Case Study: Bell Canada Situation  1 2 3 4 5 ,[object Object],[object Object],[object Object],[object Object],[object Object]
Changing behaviors: Three sources of influence Messaging Programmatic Interactive ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Cultural Values Critical Behaviors in Key Populations
Example 1: P&G ,[object Object],[object Object],[object Object],[object Object],[object Object],Cultural Values Critical Behaviors Programmatic Interactive Messaging ,[object Object],[object Object]
Example 2: Global Technology Company ,[object Object],[object Object],[object Object],Global Technology Company Programmatic Interactive Cultural Values Critical Behaviors ,[object Object],[object Object],[object Object],[object Object],[object Object],Messaging Cursive: Actions detrimental to creating a more innovative culture
Work “With and Within” Your Existing Culture Target Few Critical Behaviors Mobilize Rational and Emotional 1 2 3 Use Viral Methods Use Messaging, Programmatic, and Interactive Approaches 4 5 Five key takeaways to creating a culture that is much more innovative
For more information ,[object Object],[object Object],[object Object],[object Object],[object Object],We appreciate your interest in the Katzenbach Center and warmly welcome your comments and questions

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Jon_Katzenbach_Amplify11

  • 1. Booz & Company June, 2011 Creating a more innovative culture Jon Katzenbach
  • 2. Culture matters “ Everything I do is a reinforcement, or not, of what we want to have happen culturally. … You cannot delegate culture.” Steve Ballmer, Microsoft CEO “ If you get the culture right, most of the other stuff will just take care of itself.” Tony Hsieh, Founder and CEO of Zappos.com “ Fixing the culture is the most critical – and most difficult – part of a corporate transformation.” Lou Gerstner, retired CEO of IBM “ No company can sell employees on a culture if it isn’t practiced, and believed in, from the very top down.” Colleen Barrett, former President Southwest Airlines
  • 3. But what is this fuzzy “culture” thing, really? We Say an Organization’s Culture is … … its self-sustaining patterns of behaving, feeling, thinking, and believing
  • 4. Decision Making Information sharing And what does an innovative culture look & feel like? Leadership Effectiveness Work Execution Relationships (In-)formal knowledge exchange Being curious Open feedback Quick, informed decisions Based on expertise Non-risk averse
  • 5. Continuous improvement Proactive behavior Collaboration across units Interacting based on trust Market & competitor observation Accountability Encouraging experimenting Mistakes as teaching moment Decision Making Information sharing (In-)formal knowledge exchange Being curious Open feedback Quick, informed decisions Based on expertise Non-risk averse Work Execution Leadership Effectiveness Relationships And what does an innovative culture look & feel like?
  • 6. Four imperatives when dealing with culture Work “With and Within” Your Existing Culture Use Viral Methods Mobilize Rational and Emotional Forces Start with Changing Behaviors not Mindsets 1 2 2 4 4
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  • 10. 3) Mobilize Rational and Emotional Forces Balancing Rational and Emotional Rational Emotional Communities & Networks Vision & Values Strategy Structure & Process Purpose Commitment & Pride “ Front Line” Top Leadership Culture Evolution
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  • 12. 4) Spread the behavior changes virally Multiple Mechanisms Pride Builder Cells Communities Focused Networks 4
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  • 17. Work “With and Within” Your Existing Culture Target Few Critical Behaviors Mobilize Rational and Emotional 1 2 3 Use Viral Methods Use Messaging, Programmatic, and Interactive Approaches 4 5 Five key takeaways to creating a culture that is much more innovative
  • 18.