Developing a Culture to Drive Performance

Developing a Culture to Drive Performance

Chris MurumetsCEOLOGiQ3 Corp.

My Goal Today

1. Make clear my opinions on culture and how that ties to performance – people and organizational

2. Tell the LOGiQ3 culture story3. Provide specific steps you can take if you want

to hop on a similar path.4. Share some of our reference material and

information sources.

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I am Not

An HR expert An organizational design expert A person who has dedicated his life to

the pursuit of human behaviour and psychology

An Actuary An Underwriter

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What I Will Do

Tell a story about how I helped build a company in extremely difficult economic times, in a specific industry that didn’t exist before and while keeping a lot of very talented people engaged

Explain how we have created a passion about the organization (and why that can be good and bad)

Describe how this has allowed us to be one of Canada’s fastest growing companies for the past 4 years

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How I Will Wrap Up

List very specific steps we took, and in my opinion, every organization should take, to build a performance-driven culture

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Reality of today

We are a knowledge-based society / industry. It’s all about people!

It is difficult to retain quality people People turnover is expensive As an organization, you MUST differentiate in

non-traditional ways “Job for life” is long gone Everyone has a voice, and a large audience.

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The Problem – The “soul-less” organization

Historically, the majority of organizations lacked a corporate soul.

People want to connect to people, not a company. It’s personal.

If a company is a product of its people, it must have a soul, a personality, a belief system.

Companies, big and small, are striving to make that personal connection

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The Holstee Manifesto

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G Adventures - Core Values

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HP 2012 Slogan…

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THE JOURNEY / QUEST / PILGRIMAGE …

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The LOGiQ3 Journey

First came “Freedom to Think” The dream of taking operational risk

from others and building a cool business around it

Next came LOGiQ3

Then we had to figure out how to make money … which quickly got back to people

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When culture became king - Delivering Happiness

The CEO and Founder, Tony Hsieh, claimed that a focus on people and culture can create value and a fantastic business.

This brought a very real culture conversation to LOGiQ3.

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The Zappos Way – not exactly for insurance, but a start

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Zappos quirky

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Delivering Happiness – Key Quotes

The hardest thing to do is build trust, but if the trust exists, you can accomplish so much more.

The best team members have a positive influence on one another and everyone they encounter. They strive to eliminate cynicism and negative interactions.

The Zappos communication policy “Be Real and use your best judgment.”

A quote from Bertice Berry “When you walk with purpose, you collide with Destiny”

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Fast Company September 2010 – The Introduction to Maxims

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Nine years ago, he recalls, "Phil wanted us to work on a new mission statement." The previous one -- "To be the No. 1 sports-and-fitness company in the world" -- was old news. Parker's choice: "To bring inno-vation and inspiration to every athlete in the world. (And if you have a body, you're an athlete.)" He also put together nine maxims, quirky guiding principles for Nike. The one he thinks about most is No. 6, "Be a sponge. Curiosity is life. Assumption is death. Look around." It's a nod to his grandmother Helen Parker, who spent hour upon hour with her quiet grandson, walking in the woods, sharing her observations about the world. "She was engaged and learning new things until she passed," Parker says. "That was always her advice to me. And it really worked.”

Design Thinking

“A discipline that uses the designer’s sensibility and methods to match people’s needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunities” – Tim Brown, IDEO

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The Design of Business – Key Quotes

The traditional structure, functional: “People define their work as “my responsibilities”,

not “our responsibilities”. Alternative structure – project-based:

“Flow to the work” “But the solution is expected to come from the

team, not the quarterback” “Rewards accrue not to those who run big

businesses or large staff but to those who solve wicked problems – those with no fixed definition or solution.”

“A tough design challenge could be one of the best retention tools a company has today for its best innovators.”

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Mojo, Maslow and a certain Joie de Vivre

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Self Actualizati

on

Esteem

Social/Belonging

Safety

Physiological

Relationship Truth 1 : The Employee Pyramid

Meaning (Transformati

on)

Recognition(Success)

Money(Survival)

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Creates Inspiration

Creates Loyalty

Creates Base Motivation

Relationship Truth 2 : The Customer Pyramid

Meets Unrecognized

Needs(Transformati

on)

Meets Desires(Success)

Meets Expectations(Survival)

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Creates Evangelism

Creates Commitment

Creates Satisfaction

Relationship Truth 3 : The Investor Pyramid

Legacy (Transformati

on)

Relationship Alignment (Success)

Transaction Alignment (Survival)

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Creates Pride of Ownership

Creates Confidence

Creates Trust

The final transformational pyramid for Joie de vivre

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Peak – Key Quotes

The biggest differentiator between an average company and a great company is the motivation of the people within the company.

Gulati and Kletter conclude that it is just as important for a company to manage, monitor, and measure their relationship capital as it is to do the same with their financial capital

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In Pursuit of Elegance – Why the Best Ideas Have Something Missing

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The “eureka” moment: While no one yet knows what exactly that process is, what is important to know is that putting pressure on ourselves to speed up or artificially influence our brains to work harder, or more intensely, or more quickly, only slows down our ability to arrive at new insights. Ironically, when we let go, when we escape, either physically or mentally, we actually speed up the transformational process.

DOES IT WORK? DOES IT MATTER?

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The Result

Zappos Zappos went from 0 to a $1.2 billion dollar

valuation and sale to Amazon.com, in 10 years.

Joie de vivre Hotels California’s largest boutique hotel collection.

All Joie de vivre businesses combined have an annual revenue of $240 million.

G Adventures Over 100 million in annual revenue One of the largest adventure tour companies,

globally

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The Result - Nike

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Can’t talk Design and not mention Apple

THE design focused company Apple stock (Jobs Returns in 1997)

April 17, 2003 – $6.56 September 6, 2012 - $676.27

The famous “Live before you Die” Stanford Address - the key points to me:

Dropping out and taking a calligraphy class

At approx. the 5 minute mark of the speech Jobs makes the comment on connecting the dots and trusting they will connect in the future.

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WHAT DOES IT MEAN TO LOGIQ3? …. HOW DID WE PROCEED…

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Simplify, simplify, simplify

We needed to simplify our purpose. Not a vision or mission, but why do we show up every morning:

1. Make money2. Have fun3. Change an industry

We needed to make specific promises:

4. Coworkers – We provide you the best job you’ve ever had and you deliver operational excellence in everything you do.

5. Clients – we will be your favourite vendor.

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LOGiQ3 Maxims

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Our Quirky Guiding

Principles- Not 10 of

them, but 11 -

As we matured, we

added specific

definitions and

acceptable behaviours

to the maxims.

The Inspiration Wall

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This process got everyone involved and has become an annual exercise

Find a Culture Champion - introducing…. Carmela Tedesco

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ORGANIZATIONAL DESIGN

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A Traditional Org Chart

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The LOGiQ3 Work Flow

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WHAT ELSE?

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Challenges along the way

Passion vs. emotion Assuming it all made sense to everyone (silence

is rarely acceptance) Over analyzing. You can Google whatever you

want and get millions of hits; why it’s a good thing and a bad thing. Trust your gut!

Move too slowly Expect some failure, and that it will take a long

time

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Kudos – the small things

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The Culture book

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The Great Workplace Model

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Culture Teams (for broad participation)

1. Talent Scout2. Learning3. Health & Wellness4. New Employee Mentor5. Giving Back6. SoundBites (Communication)7. Clubs8. Kudos (Rewards & Recognition) 9. F2HF (Freedom to Have Fun)

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The Culture Index

We will measure culture on a regular basis. Eventually we will expand to include other dimensions, i.e. client feedback, but needed to start small.

Today, we ask one question (two parts), every month.

Are you proud to work for LOGiQ3? Why?

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NOW WHAT?

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Connect the dots, your way!

There is a lot of activity out there in this space Find what you like, what makes sense for

your organization, and take it. Create/define/grow your corporate soul

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Do this…

1. Create very simple, personal goals. This starts to connect the people. Small bite size steps is critical.

2. Develop your quirky guiding principles. (maxims). Absolutely key! Steal stuff you like from others.

3. Create constant conversation around maxims to embed in DNA.

4. Align maxims, actions and behaviours.5. Review organizational design and consider

project based structure (many variations of this is possible)

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REFERENCE MATERIAL

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If you’re interested in the subject:

Books The Design of Business – Why design thinking is the

next competitive advantage, Roger Martin Peak – How Great Companies Get Their Mojo from

Maslow, Chip Conley (MANY other references at the end of every chapter)

Delivering Happiness, Tony Hsieh Good to Great & Great by Choice, Jim Collins The Progress Principle, Teresa Amabile and Steven

Kramer What to ask the person in the Mirror, Robert Steven

Kaplan In Pursuit of Elegance – Why the Best Ideas Have

Something Missing, Matthew E. May

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If you’re interested in the subject (cont’d):

Magazines / Sites Fast Company – fastcompany.com

Co.Design – fastcodesign.com Co.Exist – fastcoexist.com Co.Create – fastcocreate.com

Inc- inc.com Harvard business Review – hbr.org

Of greater value, daily email Peter Bregman – peterbregman.com The Mix Fix – managementexchange.com TED – ted.com

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If you’re interested in the subject (cont’d):

Twitter Fast Company – @fastcompany

Co.Design – @fastcodesign Co.Exist – @fastcoexist Co.Create – @fastcocreate

Inc - @inc LDRLB - @ldrlb Stanford Business - @stanfordbiz Profit Magazine - @profit_magazine Harvard Biz Review - @harvardbiz American Management Association - @amashift

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Thank You

Chris Murumets, CEO, LOGiQ3

Email: chris.murumets@logiq3.comLinkedIn: Chris MurumetsTwitter: @cmurumetsLOGiQ3 CorpWebsite: http://www.logiq3.com Blog: http://www.logiq3.com/blogTwitter: @LOGiQ3Facebook: http://www.facebook.com/#!/

pages/LOGiQ3-Corp/221087034601971 LinkedIn: http://www.linkedin.com/company/logiq3-corp-

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