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Impact of Culture on Performance Shaun McCarthy Chairman Human Synergistics

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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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slide1
Impact of Culture on Performance

Shaun McCarthy

Chairman

Human Synergistics

slide2
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
slide3
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

slide4
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?

slide5
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

slide7
OutcomesEffectivenessCriteria

Individual

Outcomes

Preferred CultureValues

Causal FactorsLevers for Change

Actual CultureOCI Norms

Group

Outcomes

Organisational

Outcomes

Preferred

Culture

Actual

Culture

MissionandPhilosophy

How Culture Works

slide8
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

slide9
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

slide10
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

slide11
The impact of these cultures are:
  • At the Individual Level
  • Low satisfaction
  • Low motivation
  • Low commitment
  • High job insecurity
slide12
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
slide13
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
slide14
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’)
slide15
So the impacts on bottom line performance are:
  • In the Manufacturing Industry, culture
  • is directly related to….
  • Defect rates
  • Product recall rates
  • Warranty claims
slide16
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)
slide17
So the impacts on bottom line performance are:
  • In the Newspaper Industry, culture
  • is directly related to….
  • Readership levels
slide18
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
slide19
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

slide21
Causal Factors as Levers for Change
  • A sense of purpose and meaning
  • Use your brain force
  • Leaders must lead
slide22
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.
slide23
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?
slide24
A sense of purpose and meaning
  • Articulation of mission/philosophy
  • Significance
  • Goal setting

Goals now turn the vision into ground level reality

slide25
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).
slide26
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.
slide27
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.
slide28
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.
slide29
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.
slide30
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!
slide31
2001

2000

1999

Culture: Behavioural Norms

slide32
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

slide33
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”

slide34
Building a Performance Culture:

Practical Steps for Leaders

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