Creating Constructive Organizational Cultures for Developing Exceptional Talent

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Creating Constructive Organizational
CulturesforDeveloping Exceptional Talent
Shaun McCarthy Human Synergistics Sofia October
2008
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What I will be talking about.. An
Organizational Development (OD) approach to
becoming an organization that can recruit, retain
and develop high performing individuals and
see this reflected in the organizations
Performance.
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Organisational Culture
Proposition Getting, keeping and developing
great people is about creating an environment
within which people are challenged, supported,
allowed to be creative and encouraged to build
strong relationships. In other words a
constructive culture.
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Human Synergistics Goal To develop surveys and
feedback tools that are respected academically
and widely used commercially.ensuring interventi
ons that produce genuine results (based on
extensive research).

• 490 USA universities
• 7 of the 8 Ivy League colleges

• 321 Fortune 500
• All of the Top 10 (Fortune 500)
• 47 of the Top 50 (Fortune 500)
• 25 Fast 50 (Fast Company)

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Research Based Solution
The Culture Talent Connection
Key strong positive relationship (plt0.01)
- - strong negative relationship (plt0.01) 0
no relationship positive
relationship (plt0.05)
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Research Based Solution
The Culture Talent Connection
And high Engagement leads to high ranking in the
annual Employer of Choice Survey.. Which is
related to staff attraction and quality of
recruitment
Key strong positive relationship (plt0.01)
- - strong negative relationship (plt0.01) 0
no relationship positive
relationship (plt0.05)
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Case Study Lion Nathan

• A case study in talent management
• about
• an organisation
• that made the connection
• between culture and talent..

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Case Study Lion Nathan

• Market Capitalization A4.4bn
• Sales Revenue A1.8bn
• EBIT A454m
• NPAT A257m
• Alcoholic beverages Beer, Wine, RTDs, Spirits
• 11 Breweries, 11 Wineries, 33 Retail outlets
• 3,000 strong team in Australia, NZ, USA, UK

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Leadership Culture Performance
Leadership
Culture
Performance
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Leadership Culture Performance
The equation could not be more simple

• Customers
• Satisfaction
• Loyalty
• Advocacy

Profitability Growth
Leadership
Culture
Individuals
Teams
The context for high performance
Individual team excellence
Customer experience
Sustainable long-term effectiveness
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Values leadership
Leaders behaviours
People engagement
Customer engagement
Values
Culture
Sustained commitment discretionary effort
Personal sense of purpose
High performing culture
Satisfaction Loyalty Advocacy
Constructive leaders
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Values leadership
Leaders behaviours
People engagement
Customer engagement
Values
Culture
Sustained commitment discretionary effort
Personal sense of purpose
High performing culture
Satisfaction Loyalty Advocacy
Constructive leaders
But in all things we should look at the cause not
the effect.
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Values leadership
Leaders behaviours
People engagement
Customer engagement
Values
Culture
Sustained commitment discretionary effort
Personal sense of purpose
High performing culture
Satisfaction Loyalty Advocacy
Constructive leaders
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Case Study Lion Nathan

• The case for change was not driven by the need
  for talent management, but rather by a need to
  improve business results.
• Great talent was simply seen as the way to
  achieve this.

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Ten Year Profile
1996
1997
1998
1999
2000
2001
2002
2003
2005
2004
REVENUE
-0.8
-0.8
-1
EBITA
-12
NPAT
-16.1
-26
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Ten Year Profile
1996
1997
1998
1999
2000
2001
2002
2003
2005
2004
REVENUE
-0.8
-0.8

• Ideal Culture
• Strive for excellence
• Be creative
• Work together
• Build relationships
• Balance task and people
• Be constructive

-1
EBITA
-12
NPAT
-16.1
-26
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Ten Year Profile
1996
1997
1998
1999
2000
2001
2002
2003
2005
2004
REVENUE
-0.8
-0.8

• Current Culture
• Compete rather than cooperate
• Very task focused
• Avoid blame
• Be critical of others
• Seek security
• Low Constructive styles

-1
EBITA
-12
NPAT
-16.1
-26
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Values leadership
Leaders behaviours
People engagement
Customer engagement
Values
Culture
Sustained commitment discretionary effort
Personal sense of purpose
High performing culture
Satisfaction Loyalty Advocacy
Constructive leaders
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Sense of PurposeOur Brands and our People are
critical to achieving success
Why are we here?
To make our world a more sociable place
Consumers Customers Investors Suppliers Partne
rs Community
Our stake- holders
Core Purpose
Lion Nathan will become Australias and New
Zealands leading alcoholic beverage company. We
will create and champion the most adored brands
in beer, fine wine, RTDs and spirits.
Where are we going?
Vision
Long term sustainable upper quartile Total
Shareholder Return
What do we want to be known for?
Identity
Act with Integrity Passion Achieving
together Being sociable
What do we believe in?
Values
This is the filter for our decision making and
actions going forward
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Values leadership
Leaders behaviours
People engagement
Customer engagement
Values
Culture
Sustained commitment discretionary effort
Personal sense of purpose
High performing culture
Satisfaction Loyalty Advocacy
Constructive leaders
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Engaged Leaders, EngagedTeamsWe use survey tools
to help our leaders build engaged teams
Leaders Style
Teams Culture
Constructive leaders ceate constructive cultures
Defensive leaders create defensive cultures
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and articulate a clear leadership model
So that
X
Behaviours
Results
Because of
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Individual DevelopmentPersonal growth is key to
attracting and retaining great people
Value Proposition
A great job that provides career advancement, the
freedom autonomy to work on exciting
challenges and a leader I can learn from
A company highly regarded for its values
culture, its exciting challenges many
talented people, its growth
Lion Nathan
The price tag it comes with
We need leaders who demonstrate a constructive
style to help grow/develop others and
retain/attract great people
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There is a strong relationship between our
culture improvements our improved business
results
2001
2002
2003
2004
2005
REVENUE
6.6
-4.5
EBITA
9.1
2.6
10.9
NPAT
11.2
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There is a strong relationship between our
culture improvements our improved business
results
2001
2002
2003
2004
2005
REVENUE
6.6
-4.5
EBITA
9.1
2.6
10.9
NPAT
11.2
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There is a strong relationship between our
culture improvements our improved business
results
2001
2002
2003
2004
2005

• Ranked number 4 Employer of choice Australia
  (gt1,000 employees)
• Very low staff turnover
• Number 1 choice for graduate recruitment
  (marketing)
• Continual unsolicited requests for employment
• Constantly referred to the press as a great
  employer

REVENUE
6.6
-4.5
EBITA
9.1
2.6
10.9
NPAT
11.2
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Insights

• People leave leaders not companies!
• great people demand great leaders
• Leaders need to genuinely care about their people
• be interested in them, grow them
• Great Company/Great Jobs far outweighs
  Remuneration Lifestyle
• people prefer a constructive culture
• Focus hard on attracting, retaining and
  developing great leaders

Free massages and lunches wont help if the
relationship with the leader isnt working
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Key Learnings

• CEO and Leadership Team must be involved and
  committed
• Understand your current culture and the link to
  performance
• Describe the culture/behaviours you need
• Need a clear plan and a consistency of focus and
  effort over a long period
• Leaders are the key
• Behaviour changes takes time and commitment
• Dont say it if youre not prepared to do it!

Make constructive behaviours part of every day
through your people processes!