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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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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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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


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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?


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Organisational Development is going be determined by how the people within the organisation think - brain force, not brute force

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


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Outcomes is going be determined by how the people within the organisation think - brain force, not brute forceEffectivenessCriteria

Individual

Outcomes

Preferred CultureValues

Causal FactorsLevers for Change

Actual CultureOCI Norms

Group

Outcomes

Organisational

Outcomes

Preferred

Culture

Actual

Culture

MissionandPhilosophy

How Culture Works


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Outcomes is going be determined by how the people within the organisation think - brain force, not brute forceEffectivenessCriteria

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


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Outcomes is going be determined by how the people within the organisation think - brain force, not brute forceEffectivenessCriteria

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


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Outcomes is going be determined by how the people within the organisation think - brain force, not brute forceEffectivenessCriteria

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


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The impact of these cultures are: is going be determined by how the people within the organisation think - brain force, not brute force

  • At the Individual Level

  • Low satisfaction

  • Low motivation

  • Low commitment

  • High job insecurity


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The impact of these cultures are: is going be determined by how the people within the organisation think - brain force, not brute force

  • 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


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The impact of these cultures are: is going be determined by how the people within the organisation think - brain force, not brute force

  • At the Organisational Level

  • Low level of external adaptability

  • Reports that higher levels of quality

  • could be achieved throughout the organisation


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So the impacts on bottom line performance are: is going be determined by how the people within the organisation think - brain force, not brute force

  • In the Retail Industry, culture at the store level

  • is directly related to….

  • Sales growth

  • Shrink rate

  • Staff turnover

  • Event based performance (eg ‘sales’)


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So the impacts on bottom line performance are: is going be determined by how the people within the organisation think - brain force, not brute force

  • In the Manufacturing Industry, culture

  • is directly related to….

  • Defect rates

  • Product recall rates

  • Warranty claims


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So the impacts on bottom line performance are: is going be determined by how the people within the organisation think - brain force, not brute force

  • 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)


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So the impacts on bottom line performance are: is going be determined by how the people within the organisation think - brain force, not brute force

  • In the Newspaper Industry, culture

  • is directly related to….

  • Readership levels


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So the impacts on bottom line performance are: is going be determined by how the people within the organisation think - brain force, not brute force

  • In the Fast-food Industry, culture

  • is directly related to….

  • EBIT

  • and

  • Staff turnover at the store level


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Outcomes is going be determined by how the people within the organisation think - brain force, not brute forceEffectivenessCriteria

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


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Gap Barchart of the Causal Factors is going be determined by how the people within the organisation think - brain force, not brute force


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Causal Factors as Levers for Change is going be determined by how the people within the organisation think - brain force, not brute force

  • A sense of purpose and meaning

  • Use your brain force

  • Leaders must lead


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A sense of purpose and meaning is going be determined by how the people within the organisation think - brain force, not brute force

  • 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.


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A sense of purpose and meaning is going be determined by how the people within the organisation think - brain force, not brute force

  • 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?


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A sense of purpose and meaning is going be determined by how the people within the organisation think - brain force, not brute force

  • Articulation of mission/philosophy

  • Significance

  • Goal setting

Goals now turn the vision into ground level reality


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Use your brain force - capitalise on your people asset is going be determined by how the people within the organisation think - brain force, not brute force

  • 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).


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Use your brain force - capitalise on your people asset is going be determined by how the people within the organisation think - brain force, not brute force

  • 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.


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Use your brain force - capitalise on your people asset is going be determined by how the people within the organisation think - brain force, not brute force

  • Involvement

  • Empowerment

  • Influence

  • How does every job impact on achieving the vision?

  • Prescriptive, not restrictive leadership.


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Leaders must lead is going be determined by how the people within the organisation think - brain force, not brute force

  • 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.


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Leaders must lead is going be determined by how the people within the organisation think - brain force, not brute force

  • 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.


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Leaders must lead is going be determined by how the people within the organisation think - brain force, not brute force

  • Facilitative leadership

  • Goal emphasis and feedback

  • Reinforcement/rewards

  • Line of sight between effort and outcome.

  • Positive reinforcement, well done and let’s celebrate!


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2001 is going be determined by how the people within the organisation think - brain force, not brute force

2000

1999

Culture: Behavioural Norms


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YAGO is going be determined by how the people within the organisation think - brain force, not brute force% 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


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Dr Robert Cooke on Leadership... is going be determined by how the people within the organisation think - brain force, not brute force

“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”


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Building a Performance Culture: is going be determined by how the people within the organisation think - brain force, not brute force

Practical Steps for Leaders


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