The Right Culture Why culture matters Wh lt tt What a great - - PDF document

4/30/2014 1

Building the Right Culture for Your Organization

Barbara Schmidt‐Kemp

North Star Consultants LLC “Guiding organizations and leaders in the right direction”

1

The “Right” Culture

Wh lt tt

• Why culture matters
• What a great culture looks like
• How to build a great culture

g

• How to utilize important levers

2

4/30/2014 2

Who is here Today‐ Your Perspective

• How many of you work for a hospital?
• How many of you work for a hospital?
• How many of you work for a medical practice?
• How many of you own your own business?
• How many of you are in organizations trying to transform

the culture?

3

Definition of Culture

5 a : the integrated pattern of human knowledge, belief, and behavior that depends upon the capacity for learning and transmitting knowledge to succeeding generations g g g g g b : the customary beliefs, social forms, and material traits of a racial, religious, or social group; also : the characteristic features of everyday existence (as diversions or a way of life} shared by people in a place or time <popular culture> <southern culture> c : the set of shared attitudes, values, goals, and practices that

characterizes an institution or organization <a corporate culture focused on the bottom line> culture focused on the bottom line>

d : the set of values, conventions, or social practices associated with a particular field, activity, or societal characteristic <studying the effect of computers on print culture> <changing the culture of materialism will take time — Peggy O'Mara> http://www.merriam‐webster.com/dictionary/culture

4

4/30/2014 3

The Impact of Culture on an Organization

• Close your eyes and visualize the best

company where you have worked

• List the top three reasons you feel that way

5

Why Having the Right Culture Matters

• Competitive Advantage
• Attract and Retain the Best
• Patient Satisfaction
• Sustain and Grow the Business
• Keep Your Supporters Engaged

6

4/30/2014 4

7

What is an Organizational Culture

• Shared Mission Vision and Values
• Shared Mission, Vision and Values
• Shared Plans and Goals
• The Right Leadership

The Right Leadership

8

4/30/2014 5

Impact of Leadership on the Culture

“T t th T ”

• “Tone at the Top”
• Different types of leaders for different cycles

– Entrepreneur – Builder – Maintainer

• Various leadership styles

9 10

4/30/2014 6

Leadership Quotes

• Leadership is lifting a person’s vision to high sights the
• Leadership is lifting a person s vision to high sights, the

raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations. — Peter Drucker

• Before you are a leader, success is all about growing yourself.

When you become a leader, success is all about growing

• thers. —Jack Welch

11

Examples of Corporate Culture

• Paternalistic Culture
• Entrepreneurial Culture

Paternalistic Culture

– Protects the people

• Top Down Culture

– Power based

p

– Risk based – High reward

• Performance Based

Culture

• Egalitarian Culture

– Everyone is equal – Goal achievement – Metrics based

12

4/30/2014 7

Building Culture Top Down or Bottom Up

• Top Down

Vision Statement Distrib ted – Vision Statement Distributed – Checklists and Handouts – Benchmarks for Performance Measurement

• Bottom Up

i i i – Brainstorm Vision Statement – Collective Agreement of Actions – Shared Implementation

13

Top Down or Bottom Up Outcomes

• Top Down

– Employee Dissatisfaction

• Extra Work
• Pressure to meet new benchmarks

– Increase in employee turnover

• Bottom Up

E l hi – Employee ownership

• Sense of Control
• Passion to meet expectations

– Increase in productivity and commitment

14

4/30/2014 8

Case Study‐ Transforming a Hospital’s Culture

• Problem: Shrinking Nurse Workforce and Budget
• Solution:

– Create a Shared Vision – Create an Environment Encouraging Excellence – Spirit of Cooperation – Utilize Staff as Internal Consultants Utilize Staff as Internal Consultants

• Outcome: Transformation led to 15‐year Expansion

Project Grant

15

Building the Right Culture

St t i Pl i

• Strategic Planning

– Mission, Vision and Value Statement – Long‐term Goals/End Game

• Business Plan

– Annual Enterprise‐wide and Unit specific

16

4/30/2014 9

Building the Right Culture

• Investment Banking‐ Making Money
• Investment Banking‐ Making Money
• Tax and Audit‐ Protection and Regulation
• Healthcare‐ Saving and Extending Lives
• Not‐For‐Profit‐ Making a Difference

17

Tools for Implementing the Right Culture

• Communication Plan
• Budgeting and Financial Reporting
• Action Plans and Timelines
• SMART Goals and Objectives

18

4/30/2014 10

Communications Plan

R ll th T

• Rally the Troops
• Teams Focused on Same Outcomes
• What’s in it for Me?

What s in it for Me?

• Keep the Lines Open

19

Budgets and Financial Reporting

• Annual Financial Plan
• Department Budgets
• Monthly Results Reporting
• Accounts Receivable Review

20

4/30/2014 11

Action Plans and Timelines

• Tasks that need to be accomplished
• Who will make certain they are completed
• Target milestones and completion dates
• Weekly status meeting updates

21

SMART Goals

• Specific
• Measurable
• Achievable
• Relevant
• Timely

22

4/30/2014 12

23

Systems and Tools to Measure Success

• Patient Outcome Results
• Patient Satisfaction Results
• Accounting and Budget Systems
• Forecasting and Variance Report
• Performance Reviews

24

4/30/2014 13

Levers for Transforming Your Culture

• Total Rewards Levers

Compensation – Compensation – Benefits

• Development Levers

– Career Paths Succession Plans – Succession Plans – Training – Professional Development – Performance Reviews

25

Total Rewards Levers for Building the Right Culture

• Compensation

Base Salar – Base Salary – Bonus Plans – Company Ownership

• Benefits

Health and Welfare – Health and Welfare – Retirement – In‐Kind

26

4/30/2014 14

Development Levers for Building the Right Culture

C P th d S i Pl

• Career Paths and Succession Plans

– “Line of sight” and long‐term commitment

• Training and Professional Development

– Competitive Investment

• Performance Reviews

– Feedback and Development

27 28

4/30/2014 15

Successful Performance Reviews

F t C ti P M d

• Frequent Conversations Prepare Managers and

Employees for the Annual Review

• Keep Job/Position Descriptions Up‐to‐Date

D h C i

• Document the Conversations
• Create a Reciprocal Process

29

Successful Performance Reviews

St t ith S lf A i l

• Start with a Self‐Appraisal
• Consider Multi‐rater Feedback
• Differentiate with Money

30

4/30/2014 16

Feedback and Coaching

K i it Obj ti

• Keeping it Objective
• Measurable is Objective
• Personal is personal

31

Implementing Culture Change

E li t R t d d E d St ff

• Enlist Respected and Engaged Staff
• Clearly Communicate Why Change is Needed
• Honor Strengths of Existing Culture

g g

• Focus on a Few Critical Shifts in Behavior

32

4/30/2014 17

Next Steps: Three Actions To be Taken

• Turn to the person on your left
• Share one action idea that you will

implement when you return to the office

• Exchange business cards

33

Questions?

Barbara Schmidt Kemp Barbara Schmidt‐Kemp

North Star Consultants LLC

bsk@northstarconsult.com 973‐393‐8484

34