All Hands on Deck presentation for executive team of Porsche Cars North America

ALL HANDS ON DECK

Building a Culture of Ownership on a Foundation of

Values

Porsche Cars North AmericaDecember 10, 2010

Joe Tye, CEO and Head Coach, Values Coach Inc.Copyright © 2010, Values Coach

Inc.

I make my living as a

consultant, but I earn

my keep as an…

Insultant!David Corbin, author of Illuminate:

The Positive Power of Negative

Thinking

Companies that study

employee engagement*

consistently find:

~ 25% fully engaged

~ 60% not engaged

~ 15% aggressively

disengaged

* e.g. Gallup, HR Solutions, Press Ganey

And it’s getting worse :-o

“Disengagement, one of

the chief causes of

underachievement and

depression, is on the

rise.”

Edward M. Hallowell, M.D. in HBR, 12-10

Engaged: Spark Plugs

Not Engaged: Zombies

Disengaged: Vampires

At Best Buy, a 0.1%

increase in employee

engagement generates

a $100,000 increase in

gross store revenue*

* Harvard Business Review, October 2010

What’s wrong with this picture?

Soft really

is hard!

1982

So why, 30

years later, have

so few

companies

gotten the

message?

“We didn’t undergo fundamental

change by our own choice. It was

forced on us. The wisest of people

or institutions seldom can deduce,

on their own, that change is

needed. And if they do, they never

muster the courage to act on that

need.”

Bob Lutz, quoted in Crash Course: The

American Automobile Industry’s Road

from Glory to Disaster by Paul Ingrassia

The journey from mere

Accountabilit

y to a culture of

Ownership

Accountability

Doing what you are

supposed to do because

someone else expects it of

you. It springs from the

extrinsic motivation of

reward and punishment.

You cannot hold people

“accountable” for the

things that really

matter.

Nobody ever

checks the oil in a

rental car!

Ownership

Doing what needs to be

done because you expect it

of yourself. Ownership

springs from the intrinsic

motivation of pride.

Job description

First and foremost a

salesperson, last but

not least a janitor, and

in between whatever

else needs to be done.

Cultural ownership is of the heart, not of the

wallet

14,491,733 views

64,791– avg 5 stars

As of 12-10-10, 1:18 am

“We have hundreds if not thousands of examples…” 522,963

It could happen to anyone!

“Doctors take umbrage at

Physicians’ Porsche Promo”

Headline in HealthLeaders Media, 11-04-10

“Marketing in the

future is like sex.

Only the losers will

have to pay for it.”Jon Bond, quoted in Fast

Company, 12-10/1-11

Joe’s corollary

Marketing in the future:

a fired up employee

with two networks.

The “Empowerment” Conundrum

Who Owns Left Field?

You can’t always choose who

you have on the bus

You can’t just throw all the

“wrong” people off the bus

You can create a bus that

everyone wants to ride

Bean

Cou

nte

rPo

et

Emotional intelligence (right

brain) is more important to

your personal and

professional success than

intellectual and technical

knowledge (left brain)

Managemen

t is a job

description

Leadership

is a

life

decision

And in today’s world we need

leaders in every corner – not just

in the corner office

Left Brain Counts

Right

Brain

Creates

Assets or resources?

Rules

Values

Plans

Inspires

Measured

Seen

A Given

A Choic

e

Inert

Contagious

Process

Attitude

What you do

Who you are

Boring!

Chaos!

It’s not

accountability (left

brain) OR ownership

(right brain).

It’s how we

interrelate the two

to create a whole

brain culture.

What do you get when

you break the word

“assume” down into its

constituent components?

Faulty Assumption #1

You can’t teach people

values – if they didn’t

learn in kindergarten,

it’s too late.

Culture is a given –

especially in the short

term you cannot

transform it.

Faulty Assumption #2

You can “empower”

people without them

having doing the work

of self-empowerment.

Faulty Assumption #3

What can’t be

measured won’t get

done.

Faulty Assumption #4

Let’s watch as the

word “assumption”

gets deconstructed

(along with those

who made the

assumption)

The “Invisible

Architecture” of

an organization“Invisible Architecture” is a trademark of Values Coach Inc.

Invisible Architecture™ is more

important than bricks &

mortar

Invisible architecture is

to the soul of your

organization what

physical architecture is to

its body.

“The only assets we have as

a company [are] our values,

our culture and guiding

principles, and the reservoir

of trust with our people.”

Starbucks CEO Howard Schultz in

Harvard Business Review, July-August

2010

Core Values are the

Foundation

Built

to Last

Core values

define what you

stand for and

what

you won’t

stand for

“Our Credo is more than just a

moral compass. We believe it’s a

recipe for business success. The

fact that Johnson & Johnson is one

of only a handful of companies that

have flourished through more than

a century of change is proof of

that.”

One half the turnover

Double the productivity

Highest customer

satisfaction

The 9/12

difference

The single most

important thing I

have learned in 16

years with Values

Coach

Values are

Skills

Nobody learns

everything they

need to know in

kindergarten!

410-page [email protected]

We call our graduates “Spark Plugs”

93

“We know from our research

that the people who are

clearest about their [personal]

vision and values are

significantly more committed to

their organizations than are

those who are not clear about

their vision and values.”James Kouzes and Barry Posner: A Leader's Legacy

Corporate culture is the superstructure

Culture is to the organization

what personality and

character are to the

individual.

Culture Eats Strategy for Lunch!

“I came to see, in my

decade at IBM, that

culture isn’t just one

aspect of the game –

it is the game.”

Cultural Toughness

“Success is the ability to

bounce from failure to

failure without loss of

enthusiasm.”

- Winston Churchill

“We need to see

opportunities where others

see barriers. We need to

be cheerleaders when

others are moaning doom-

and-gloom.” From The Florence Prescription

“We need to face problems

with contrarian toughness

because it’s in how we

solve those problems that

we differentiate ourselves

from everyone else.” From The Florence Prescription

“Brick walls are not there

to stop you, they are there

to make you prove how

much you want

something.”

Randy Pausch: The Last Lecture

Optimism is

a learnable

skill*

* Martin Seligman:

Learned Optimism

Shawneen Buckley of Saint Francis Hospital

and Health Center in Poughkeepsie, New

York

Emotional attitude is the interior décor

Emotional attitude is

defined by what you

expect and by what you

tolerate*

*to permit is to promote

You cannot have a culture

of ownership in an

organization where the

emotional climate

is dominated by Emotional

Vampires.

Toxic emotional

negativity (T.E.N.) is the

emotional and spiritual

equivalent of cigarette

smoke.

115

“One toxically negative

person can drag down

morale and productivity of

an entire work unit.”

The Florence Prescription, page 142

116

“It is a leadership

responsibility to create a

workplace environment

where toxic emotional

negativity is not

tolerated.”

The Florence Prescription, page 142

The other

BMW Club

Building a

Culture of

Ownershi

p122

A Mission

that Inspires

124

In its early days,

Southwest Airlines

wasn’t just selling

cheap airline tickets

– it was making it

possible for

Grandma to attend

her grandchild’s

college graduation.

The most memorable Coke ads barely mention fizzy brown sugar water.

Kids today!

Supportive

Structure and

Process129

130

Foundation

of Values

133

“Committable core values that

are truly integrated into a

company’s operations can align

an entire organization and serve

as a guide for employees to

make their own decisions.”

Tony  Hsieh: Delivering Happiness: A

Path to Profits, Passion, and Purpose

Zappos Family Core Values1. Deliver WOW Through Service

2. Embrace and Drive Change

3. Create Fun and A Little Weirdness

4. Be Adventurous, Creative, and Open-Minded

5. Pursue Growth and Learning

6. Build Open and Honest Relationships With

Communication

7. Build a Positive Team and Family Spirit

8. Do More With Less

9. Be Passionate and Determined

10. Be Humble

Source: Zappos website

1. Deliver Wow Through Service

Core Values Frog thinks anything worth doing is

worth doing with WOW. To WOW, CVF differentiates

himself by doing things in an unconventional and

innovative way. He goes above and beyond the

average level of service to create an

emotional impact on the

receiver and give them a

positive story they can take

with them the rest of their

lives.

Source: Zappos website

“Unlike most companies, where

core values are just a plaque on

the wall, our core values play a

big part in how we hire, train,

and develop our employees.”

Tony  Hsieh: The 2009 Zappos

Culture Book*

* $1995 at Zappos.com !!!

Culture is morally neutral.

Enron had a powerful

culture.

Core values are the moral

compass that shapes a

positive corporate culture.

Trust is

Expected

and Earned 139

Lack of trust is

like a tax that

makes

everything cost

more and take

longer.

“I am absolutely convinced

that in most cases,

prioritizing trust… will bring

personal and organizational

benefits that far exceed any

other path.”Stephen M.R. Covey: The Speed of Trust:

The One Thing that Changes Everything

“We trust each other at HP;

never lock this cabinet

again.”

Note left by Bill Hewlett on a locked

cabinet

Strategic Use

of Stories

145

And now, a motivational word

from your manager…

Individual

Creativity

and

Ingenuity150

152

Can you

imagine life

without Post-It

Notes?

There is always risk when

you try to get out of the

box

“Buckle up! It makes it harder

for the aliens to suck you out

of your car.”

The certainty of misery or

the misery of uncertainty

Falling on your face is

good for your head (fail

early, fail often, fail

small).

Pride and

Partnership

157

How do you answer the

universal icebreaker

question?

What do you do?

Does your answer convey:

I’m good at what I do.

I love what I do.

I’m proud of what I do.

What I do is important.

What could be more boring than

industrial ventilation systems?