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CULTURE: Can’t Buy It – Must Work On It

2/28/2014

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Fortune’s February 3, 2014 edition featured this year’s “100 Best Companies to Work For”. http://money.cnn.com/magazines/fortune/best-companies/2014/list/index.html.  As I read it, I was reminded of a story my dear friend (Al) shared with me years ago.  It involved two neighbors and went something like this …   

One evening, a neighbor heard laughter and music on the other side of his fence.  He peeked over and saw his neighbors in a new hot tub.  They were drinking wine, laughing, and thoroughly enjoying each other’s company.  That’s it he thought – we need to buy a hot tub.  That will fix everything!  So, he did.  Unfortunately it didn’t work the same way for he and his wife.  He missed the significant investment of time and energy his neighbors had put into building and maintaining their relationship.  It’s the same way with an organization’s culture!

Glance through this year’s “100 Best Company” winners and “hot tub ideas” jump out.  Yes, there are some unique perks offered like: onsite health center, Pilates classes, employee fitness incentives, child-care centers, and free income tax preparation.  But dig a little deeper and you will find some compelling, consistent “cultural investments”.  How does your organization stack up to the following four?  
  • Corporate values.  At Roche Diagnostics, the first few days of new hire orientation focus on the company’s core values and its culture of transparency and accountability.  TEKsystems asserts that its’ four values shape its hiring decisions and how they work with its customers.  Scripps Health’s present workforce and alumni help feed their talent pipeline with “others with similar values.”
Question: Would your employees say that values are artifacts or critical, current requirements in how the business is actually run?
  • Identity. At the biotech giant Genentech, staff is inspired by patient stories - constantly reminding them of why they do what they do.  The Washington, D.C. law firm of Arnold & Porter expects all 700+ lawyers to devote 15% of their time to pro bono work.  At Denver based PCL Construction Enterprise, employees who volunteer in the community can win $200 “pay it forward checks” for the charity of their choice.
Question: Do your employees say they have a strong sense of pride in what the organization provides to customers, the community, and our society?
  • On-going Development.  Wegmans Food Markets offers an employee scholarship program and stretch assignments to help young employees grow within the company.  66% of their jobs are filled internally.  Southern Ohio Medical Center pays 100% of tuition for employees seeking to advance their education and pursue a degree in the medical field.  Ernest and Young sent more than 50 interns to work in a foreign office for a month last year.
Question: Is your organization adequately investing in its internal talent pool? Are more people trying to get in than get out?
  • Leading by example.  Last year the CEO and senior management at NuStar Energy gave up their bonuses so that employees could keep theirs.  Deloitte champions diversity and now has its’ first female chairman and minority CEO.  Scripps Health CEO told employees he plans to cut spending by $300M by 2016 without laying anyone off.
Question: Do your leaders inspire employees’ commitment, effort, and loyalty through their actions?  

So, if you want to maximize growth and success – avoid buying “hot tubs ideas” and instead invest in your culture.  It pays off!  Consider the industry low turnover rates at many of the “100 Best Companies” and the fact they collectively need to fill 114,000 jobs.
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Succession Planning – Lessons from the NFL

2/17/2014

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This past January, I had the privilege to speak at the SIGMA Executive Leadership Conference www.Sigma.org.  Since it was the week before the Super Bowl, I decided to tie my topic of succession planning with professional football.  I hope you enjoy the analogy and key reminders that follow.

The NFL consists of 32 teams.  Each team opens up summer training camp with 80 players.  Then each team roster is decreased to 53 players during the season.  However, only 46 players ‘dress’ each week to potentially play 25+ different positions. Rosters are dynamic and can change throughout the season.      

NFL teams use a variety of methods and tools to ultimately field a team each week including: the college draft; trades; free agency; practice squad; depth charts; etc.  Make the right succession planning moves and they could be Super Bowl Champions.  Make the wrong moves and forget about the playoffs or winning many games.

Here are five great reminders, from this past NFL season, to check your succession planning efforts against:
  1. Successfully forecast future needs.  Based on the 2013 NFL season, a balanced offense (running and passing) and strong defense continues to win championships. The elite teams are multi-dimensional and select players to complement this strategy.

    During the next 4-6 years, does your organization have clarity on the skills, knowledge and competencies it needs to beat the competition?  Are they the same and/or different than what you have today?   
          
  2. Develop a detailed depth chart. Some NFL teams had very thin (weak) depth charts. There were names on the depth chart as ‘back-ups’, but the same few names appeared over and over. In addition, these ‘back-ups’ received minimal practice time and development. The result – many players were ‘not ready for prime time’ and on game day the team’s performance suffered.

    Is there depth in your current talent pool?  Is your organization properly investing in player development – both short and long term?    
        
  3. Plan for the unexpected. Several teams lost key players to injuries this year – for example their quarterbacks. A team like Philadelphia was much better prepared for this talent loss than the Green Bay team this past year.

    Have you taken time to plan for the unexpected retirements?  Sickness?  High potential employees leaving?  

  4. Fit matters.  The player who can run the fastest, lift the most weight, or jump the highest may not be the best ‘fit’ to your team.  Great NFL teams always have ‘intangible qualities’ like teamwork, organizational pride, and work effort.

    Does your organization’s on-going evaluation of talent balance “‘what people achieve” with “how they achieve it”?  Are values-based behaviors key criteria in your succession planning?     

  5. Coaches must adjust too.  Great NFL coaches adjust their game plan based on available talent.  It’s frustrating and non-productive to continue running deep pass patterns if the back-up quarterback has a weaker arm than the starter or the backup offensive line can’t hold the defensive rush.

    Are your leaders expected to make personal investments (potentially adjusting time, money, people, and expectations) to help succession planning candidates during transitions?


NFL Hall of Fame Coach Vince Lombardi said, “The achievements of an organization are the results of the combined effort of each individual.”  Great succession planning gets you three rights – the right individual at the right time in the right position to win.  It works in the NFL and in high performance organizations too!


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    Brian Gareau is a Speaker, Author and Consultant.

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