Corporate Culture- Gene Dorris

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    Professional Way LimitedProfessional Way Limited

    Retention and Corporate Image

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    Copyright 2005 by Professional Way Limited.All rights reserved.

    Having trouble keeping employeesHaving trouble keeping employees

    In Hong Kong from

    1997 to the presentannual turn overdoubled from 5% at

    one time evenpeaking at 20%

    Is it just because of

    the economy?Or is theresomething more?

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    Traditionally Certain areas wereTraditionally Certain areas were

    examined (Western)examined (Western)

    After 30 years of research Gallup

    devised a model of improved performancefocused on:

    right fit

    great managersand engaged employees.

    According to Gallup 70 percent of employees

    quit their jobs because of bad managementstyles ofimmediate supervisor

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    The Concept ofThe Concept of

    Recent data from Mainland China and

    Hong Kong flies in the face of Gallupsresearch.

    Employees who indicate they willchange jobs in two years or less say:

    On average less than 15% would leaveOn average less than 15% would leave

    because of their supervisor!because of their supervisor!

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    The Concept ofThe Concept of

    Face-to-face interviews and focus

    groups indicate cultural norms maybethe root:

    Traditional Chinese culture teaches of the

    concept ofor toleranceIf a job is seen as conveying other

    benefits often employees will sufferthrough a poor supervisor

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    Our research indicates theOur research indicates the

    following important influencesfollowing important influences

    Its all about Great Corporate ImageGreat Corporate Image

    Employees who are proud of companysGreat Corporate ImageGreat Corporate Image are less likelyto want to leave company

    Right Fit and ability to grow anddevelop also cited as important factors

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    Case Study: French ClothierCase Study: French Clothier

    In spite of increased

    overtime, withoutwithoutbenefit increasebenefit increase,French Clothier wasable to retain

    employees. How?

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    Case Study: French ClothierCase Study: French Clothier

    High Mission scores!

    Employees are engaged andunderstand personal goals beyondreceiving a paycheck.

    French Clothiers Great CorporateImage helps company retain

    employees

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    Proud AboutProud About French ClothierFrench Clothier

    Great Corporate

    Image

    54%

    Quality Products

    12%

    Great Manager

    4%

    Special Work

    Environment

    4%

    Meaningful Role2%

    Fulfilling Work

    11%

    Not Proud!

    11%

    Other

    2%

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    Case Study: French ClothierCase Study: French Clothier

    1

    2

    3

    4

    5

    6

    7

    M1 M2 M3 M4

    French Clothier

    Average

    M1 We have an exciting vision for our future

    M2 We have a clear strategic direction and understand the meaning of ourorganizations existence

    M3 We have ambitious but attainable goalsM4 Our leaders have long-term, clearly enunciated strategies for our development

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    Case Study: French ClothierCase Study: French Clothier

    I plan to stay another two yearsI plan to stay another two years

    Disagree15%

    Agree49%

    Strongly Agree

    36%

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    Case Study: Middle KingdomCase Study: Middle Kingdom

    StationaryStationary

    Employee Satisfaction

    significantly higher inless developed areas

    Mission and

    Consistency areespecially high in ruralareas

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    5.7 5.8 5.5 5.7

    4.6 4.9 4.4 4.5

    1

    2

    3

    4

    56

    7

    M1 M2 M3 M4

    RuralUrban

    Middle Kingdom Stationery

    Mission

    M1 We have an exciting vision for our future

    M2 We have a clear strategic direction and understand the meaning of ourorganizations existence

    M3 We have ambitious but attainable goalsM4 Our leaders have long-term, clearly enunciated strategies for our development

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    4.6 4.9 4.9 4.73.7

    3.13.9

    3.4

    1

    2

    3

    4

    5

    6

    7

    C1 C2 C3 C4

    RuralUrban

    Middle Kingdom Stationery

    Consistency

    C1 Different units in our company have a common perspective

    C2 We have the same organizational values in all business unitsC3 Our leaders walk the talkC4 Our organization reaches consensus easily

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    Case Study: Middle KingdomCase Study: Middle Kingdom

    StationaryStationary

    Staff in countryside

    had far morepositive outlook thanManagement.

    Staff showed fargreater pride inworking for company

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    Why Proud about Middle KingdomWhy Proud about Middle Kingdom

    Stationery?Stationery? UrbanUrban

    37 Managers 193 Respondents

    Quality

    Products

    24%

    Great

    Manager

    1%

    Work

    Environ8%

    Role

    Society

    9%

    Fulfilling

    Work

    26%

    Not

    Proud!

    19%

    Great

    Image

    13%

    Quality

    Products

    19%

    Work

    Environ

    14%

    Fulfilling

    Work

    40%

    NotProud!

    8%

    Great

    Image

    14%

    Role

    Society

    5%

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    Why Proud about Middle KingdomWhy Proud about Middle Kingdom

    Stationery?Stationery? RuralRural

    18 Managers 897 Respondents

    Great

    Manager3%

    Work

    Environ

    6%

    Fulfilling

    Work

    19%

    Not

    Proud!

    11%

    Great

    Image48%

    Quality

    Products

    8%

    Role

    Society

    5%

    Quality

    Products

    6%

    Work

    Environ

    11%

    Fulfilling

    Work

    44%

    GreatImage

    11%

    NotProud!

    6%

    Great

    Manager

    22%

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    Compare:Compare: Not Proud!Not Proud!andand Great ImageGreat Image

    Who will leave job in 2 yearsWho will leave job in 2 years

    Headquarters Countryside

    Company

    Average,

    15%

    Not

    Proud!,

    55%

    Great

    Corporate

    Image,

    11%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    Great

    Corporate

    Image,

    11%

    Not

    Proud!,

    61%

    CompanyAverage,

    26%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

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    Case Study:Case Study:

    Yankee Gas: Returns & TrustYankee Gas: Returns & Trust

    Involved a two

    month pen andpaper Odyssey

    Encountered many

    reactions fromemployees

    This is a tale of

    returns and trust

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    Case Study:Case Study:

    Yankee Gas: Returns & TrustYankee Gas: Returns & Trust

    Pen & Paper Survey administered in

    several locations throughout ChinaReturns for HQ was 72%

    Returns for most rural factoriesexceeded 90%

    Returns from three rural factories was

    100%

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    How can you make people Proud?How can you make people Proud?

    Improve internal

    ConsistencyConsistency ofvalue alignment

    throughout anorganization

    Employees are the

    right fit for theorganizationsculture

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    How can you make people Proud?How can you make people Proud?

    Improve clarity of

    MissionInspired by themeaning and very

    existence of thecompany

    Leaders vision

    drives the companyin a unified direction

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    Case Study: European Fire SafetyCase Study: European Fire Safety

    European Fire Safety

    had 35%-40%turnover per quarter

    Problems stem from

    Corrupt leadership,weak organizationaldirection andconsistency

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    Organizational Culture ComparisonOrganizational Culture Comparison

    2002003.3 vs. 2003.123.3 vs. 2003.12 vs. 2004vs. 2004.7.7

    1

    1.5

    2

    2.5

    3

    3.5

    4

    4.5

    5

    5.5

    6

    M1 M2 M3 M4 C1 C2 C3 C4

    1st

    2nd

    3rd

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    Case Study: European FireCase Study: European Fire SafetySafety

    European Fire Safety participated in

    Vision, Mission, Values Workshop.Turnover decreased from 35%-40% tounder 20%

    Improvement in retention tied toculture shift

    Employees feel their own values arealigned for a right fit

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    Great Corporate Image = GreatGreat Corporate Image = Great

    Corporate Culture?Corporate Culture?

    Organizations with strong vibrant

    cultures seem to have better internalimage and satisfaction

    Usually Corporate image is tied toratings in Mission and Consistency

    Data supports employees NOTNOT willing

    to trade pride in corporate image andright fit for fat paychecks

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    What makes a great corporateWhat makes a great corporate

    culture?culture?

    Is it VISION! MISSION! VALUES!?

    Does a clearly stated VMV make adifference?

    Stating it clearly seems partially effective

    Living by those standards seems to be veryimportant

    Certain employees seem better suitedto an organizational right fit

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    What should a Culture have?What should a Culture have?

    Two Aspects Similar

    to Yin and YangAn unchanging Core

    Purpose

    ValuesA Changing andFlexible Future

    BHAG GoalsEvolutionary Changes

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    Case Study: German MachineryCase Study: German Machinery

    A company with a

    long tradition:Over one hundredfifty years

    In china pre-Maoist

    Revolution

    Clearly enunciatedvision and values

    Employees have asense of belonging

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    Case Study: German MachineryCase Study: German Machinery

    Very low response rate to leaving:

    0%0% of managersof managers plan to leave withintwo years

    Higher than average scores in areas ofMission and Consistency

    Very few people considering leaving for

    money as an option

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    Why Proud of German Machinery?Why Proud of German Machinery?

    Great Corporate

    Image

    63%Quality Products

    10%

    Great Manager

    3%

    Work Environ

    2%

    Role Society

    4%

    Fulfilling Work

    10%

    Not Proud!

    8%

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    German MachineryGerman Machinery

    1

    2

    3

    4

    5

    6

    7

    M1 M2 M3 M4 C1 C2 C3 C4

    German Machinery

    Average

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    Not ProudNot Proud employees and why they wouldemployees and why they would

    leave German Machineryleave German Machinery

    My Supervisor6%

    Low Job Satisfaction

    33%

    Better Pay

    49%

    Lack Respect

    6%

    Other (Besides

    Company)

    6%

    18 out of 221 TotalReponses

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    In ConclusionIn Conclusion

    In Chinas Century organizations who

    wish to keep their talent must look:Inward to Consistency in values throughoutan organizations Culture

    Inward to compelling Missions thatinspire and drive an organizations

    Organizations need the right fit of

    employees aligned to the values andvision of their culture

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