The Denison Model What Counts… Adaptability Pattern..Trends..Market Translating the demands of the business environment into action “Are we listening to the marketplace?” Involvement Commitment ... Ownership … Responsibility Building human capability, ownership, and responsibility “Are our people aligned and engaged?“ Mission Direction..Purpose..Blueprint Defining a meaningful long-term direction for the Company “Do we know where we are going?” Consistency Systems… Structures… Processes Defining the values and systems that are the basis of a strong culture “Does our system create leverage?” Mission High Performing organizations have a Mission that tells employees WHY they are doing the work they do, and how the work they do each day contributes to the WHY. Vision is the ultimate reason you are in business – what you are ultimately trying to achieve. Strategic Direction refers to the 2 - 3 year strategies – high priorities established to ‘operationalize’ the vision. Goals and Objectives are the short-term, specific goals established that help every employee see how his/her work connects to the vision & the strategy. 1-7 Consistency All high-performing companies do some things Consistently well. Specifically, they have a clear set of Core Values that help employees and leaders make decisions and set priorities. By engaging in dialogue and getting multiple perspectives on the table they are able to reach Agreement when difficult issues and problems arise. Employees understand how the work that they do impacts others – and how other’s work impacts them. They do not just ‘throw things over the fence’. They make sure that work is Coordinated and Integrated to serve the organization as a whole. 1-8 Involvement High performing organizations encourage and support employee Involvement. They clarify those areas where employees can make decisions, have input, or those areas that are beyond an employee’s scope of responsibility. This promotes ‘informed’ Empowerment. Teamwork is encouraged so that creative ideas are captured and employees support one another in accomplishing the work that needs to get done. Capability Development is practiced in a variety of ways, including training, coaching, and giving employees exposure to new roles and responsibilities. 1-9 Adaptability High performing organizations are Adaptive – they look for new and better ways to do their work. They welcome new ideas and are willing to try new approaches to doing things. They see Creating Change as an important part of the way they do business. Consumer Focus is critical. Employees recognize that they are in business to serve their customer – both internal & external. They continually look for new and improved ways to meet and exceed customer expectations. ‘Calculated’ risk taking is encouraged. Organizational Learning means we gain knowledge from successes and failures. 1-10 Flexible and Stable Flexible Adaptability + Involvement A flexible organization has the capability to change in response to the environment Stable Mission + Consistency A stable orientation contributes to an organization’s capability to remain focused and predictable over time External Focus and Internal Focus External Focus: Adaptability + Mission The organization’s focus is on adapting and changing in response to the external environment Internal Focus: Involvement + Consistency The organization’s focus is on the dynamics of the internal integration of systems, structures, and processes Dynamic Tension: High performance organizations learn how to link the purpose, direction, and goals of the organization (top - down) to a shared sense of responsibility, ownership and commitment with all employees (bottom - up). Employees understand the relationship between their individual goals and the organization’s goals and are highly motivated to contribute. Dynamic Tension: Successful organizations learn how to cope with the dual problems of external adaptation (stimulate progress) and internal integration (preserve the core). It is not an either/or proposition - high performance organizations must be able to do both at the same time. Culture LinksGrowth to Performance Innovation & Customer Satisfaction Stable Performance Over Time Profitability ROI, ROE Operating Performance Quality Employee Satisfaction