Tag Archives | Organizational Constitution

One Company’s Values Journey, Part II

Luck-02This week I continue my interview with the Luck Companies Chief Leadership Officer, Mark S. Fernandes. Mark is the person charged with transforming Luck Companies into a Values Based Leadership organization.

Last week we learned about the genesis of Luck Companies’ decision to change its culture. In 2004, senior leaders crafted four values – leadership, integrity, commitment, and creativity – and defined corresponding behaviors for each of those values. That was phase one, the foundation of Luck Companies’ transformation into a values based organization.

In 2009, senior leaders came to the conclusion that organizational cultures are shadows of the leaders. To have the culture that they wanted, Luck Companies’ leaders had to go first, modeling the way as an example for all others to follow. That was phase two, which they’re still engaged in.

I told Mark I loved the emphasis on defining their company values in measurable, behavioral terms. Mark said, “This became obvious to us in the first months of phase one. When we rolled our new values out to the company in 2005, outcome statements and corresponding behaviors were attached to each of the four values. These became part of every associates’ performance reviews that year.

In phase two, those behaviors became part of the Values Based Leadership 360 that all formal leaders complete annually.”

Accountability for values is much easier when you’ve defined specific behaviors for desired values. Typically when a company sets new values expectations, some leaders and players just don’t fit in the “new culture.” I asked Mark if Luck Companies’ had experienced that. Mark said, “We typically have 12-14 people on our senior leadership team. Over the past 11 years we have ‘lovingly set free’ eleven senior leadership team members.

Most were very smart people. They were wonderful human beings who performed quite well. It just became obvious by their attitudes, actions, and behaviors that their personal values did not align with the company’s values.”

If you’re not going to hold everyone accountable for valued behaviors, “your values are just words hanging on a wall,” Mark explained. “You’re better off not having them.”

How do leaders at Luck Companies know their culture is on track? Mark said, “We analyze trend data from our annual leader 360’s and our annual associate engagement surveys. We hold ‘What’s on Your Mind?’ sessions at all locations throughout the year.

We demand transparency and feedback. We train for it, assess for it, and reward for it through out evaluation process. There is daily dialog across the enterprise relative to our mission and values – our organizational constitution.”

The big question for any company and it’s culture is about the “big three” – engagement, service, and results. Culture impacts each of these, deeply. Mark said, “The impact of Values Based Leadership has far exceeded our expectations. In our most recent engagement survey, 91% of our associates said they were engaged! The Hay Group’s global average is 30-40%.

Our employee effectiveness score was 84% compared to the Hay Group’s top performing benchmark of 55%. Our customer satisfaction score is 76% compared to an industry norm of 55%. Our results show us outperforming industry norms by similar margins.”

I’m inspired by the work Mark and his peers are doing at Luck Companies. They are proof that being intentional about values pays off – in many ways.

I’m indebted to Mark and to Megan Dougherty who willingly and ably facilitated this interview.

What are your takeaways from the Luck Companies’ values journey? Share your insights on Twitter, Facebook, LinkedIn and Google +.

How healthy is your team or company’s culture? Don’t guess – get the data with my online Culture Effectiveness Assessment.

Want hands-on guidance for boosting productivity while reducing drama at work? Join me in Denver for my Culture Leadership Roundtable. This series, based on my book, The Culture Engine, meets one-morning-a-month starting in March.

Photo © Luck Companies and Values Based Leader. All rights reserved.

Subscribe!Podcast – Listen to this post now with the player below. Subscribe via RSS or iTunes.

The music heard on these podcasts is from one of my songs, “Heartfelt,” copyright © 2005 Chris Edmonds Music (ASCAP). I play all instruments on these recordings.


Subscribe to Chris’ mobile updates, texted right to your smartphone! Text VALUES to 72000 or head here.


Chris’ new “Culture Leadership Charge” series and the rest of his video clips can be found on YouTube. Subscribe to Chris’ YouTube channel.


vimeo_logoChris’ new “Culture Leadership Charge” series and the rest of his video clips are also available on Vimeo. Subscribe to Chris’ Vimeo channel.


podcast_subscribeSubscribe to Chris’ posts via RSS.


itunes_subscribeListen to or subscribe to over 300 of Chris’ Culture Leadership Podcasts on iTunes.


The music heard on Chris’ podcasts is from one of his songs, “Heartfelt,” copyright © 2005-2017 Chris Edmonds Music (ASCAP). He played all instruments, recorded all tracks, and mastered the final product for your listening pleasure.

Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, Chris will receive an affiliate commission. Regardless, Chris only recommend products or services he uses personally and believes will add value to his readers. Chris is disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

One Company’s Values Journey

VBL-definitionIf you’re a frequent reader of these pages, you know I’m always enthused to discover high performing, values-aligned organizations.

I’m delighted to bring you the Luck Companies story. Over the next several weeks I’ll share my conversation with Mark S. Fernandes, Chief Leadership Officer, the person charged with transforming Luck Companies into a Values Based Leadership organization.

Most companies don’t start by being intentional about the culture they want. They have a desired product or service so they build their business around crafting those desired elements and getting them into customers’ hands, under budget and profitably. Only when company leaders stop to examine the health of their culture do they actively engage in making it better.

Luck Companies is a 92-year-old organization based in Richmond, VA. On first glance, you’d see Luck Companies as a stone company – crushed stone, architectural stone, and even clay courts. A deeper look finds an organization that is intentional, focused, and committed to igniting human potential through Values Based Leadership (VBL).

I asked Mark, “What was the genesis of Luck Companies’ decision to change it’s culture?”

Mark explained, “When Charles Luck IV became the CEO and President in 1995 – our third generation leader from the Luck family – we were a small, tight-knit, family owned and operated organization. We decided to grow the company, and grow we did!

By 2002, we had close to 1,300 associates and sales had quadrupled. Cash flow increased by nine times during that timeframe.”

Along with that growth came organizational stresses and dysfunction. Mark explained, “We no longer looked like the company Charlie’s dad and grandfather had built. We brought in a consultant to work with our leadership team.

That first morning, the consultant introduced himself and asked us to take out a piece of paper and to write down everything we wanted to change about the company. He gave us ten minutes. With all the dysfunction, we each had a lot to say!

The consultant then asked a vital question: ‘How many of you wrote down yourselves?’

That question changed our lives forever. We began our values journey soon after and in 2009, we amped up the expectations and became a Values Based Leadership organization.”

I asked Mark to define VBL. He said, “Values Based Leadership is living, working, and leading in alignment with your core values, principles, beliefs, and purpose to in turn ignite the extraordinary potential in those around you.

Our company values are leadership, integrity, commitment, and creativity. We began our values journey by defining corresponding behaviors for each of our four values. We wanted to innovate for the future while preserving our values core. We felt that commitment and integrity were values that had existed in the organization since its founding. We wanted to preserve those going forward.

Leadership and creativity were two values that would carry us into the future.

We’ve had two phases in our journey. The first was to become a Values Based Organization (2004-2009) and the second as a Values Based Leadership organization. The distinguishing point came from learning that company cultures (defined by values) are shadows of the leaders.

To have the culture we wanted, leaders had to go first, modeling the way as an example for all others to follow.”

My interview with Mark continues next week.

How well are your team or company’s values lived in your organization? Share your insights on Twitter, Facebook, LinkedIn and Google +.

I’m indebted to Megan Dougherty who willingly and ably facilitated my conversation with Mark – and added to my understanding of values-based leadership at Luck Companies.

How healthy is your team or company’s culture? Don’t guess – get the data with my online Culture Effectiveness Assessment.

Want hands-on guidance for boosting productivity while reducing drama at work? Join me in Denver for my Culture Leadership Roundtable. This series, based on my book, The Culture Engine, meets one-morning-a-month starting in March.

Photo © Luck Companies and Values Based Leader. All rights reserved.

Subscribe!Podcast – Listen to this post now with the player below. Subscribe via RSS or iTunes.

The music heard on these podcasts is from one of my songs, “Heartfelt,” copyright © 2005 Chris Edmonds Music (ASCAP). I play all instruments on these recordings.


Subscribe to Chris’ mobile updates, texted right to your smartphone! Text VALUES to 72000 or head here.


Chris’ new “Culture Leadership Charge” series and the rest of his video clips can be found on YouTube. Subscribe to Chris’ YouTube channel.


vimeo_logoChris’ new “Culture Leadership Charge” series and the rest of his video clips are also available on Vimeo. Subscribe to Chris’ Vimeo channel.


podcast_subscribeSubscribe to Chris’ posts via RSS.


itunes_subscribeListen to or subscribe to over 300 of Chris’ Culture Leadership Podcasts on iTunes.


The music heard on Chris’ podcasts is from one of his songs, “Heartfelt,” copyright © 2005-2017 Chris Edmonds Music (ASCAP). He played all instruments, recorded all tracks, and mastered the final product for your listening pleasure.

Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, Chris will receive an affiliate commission. Regardless, Chris only recommend products or services he uses personally and believes will add value to his readers. Chris is disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

Positive Proof that Culture Works

Group of co-workers standing in office space smiling (I’m a culture geek. I’m bold with leaders, telling them they’re leaving money on the table if their team or department or company culture isn’t based on trust, respect, and dignity.

My ideas are not always embraced with open arms! There is a natural cynicism about culture change. Leaders are used to dealing with facts and hard data. So, I share the facts and hard data about the benefits my culture clients have enjoyed.

One client came to us because of low employee engagement survey scores. They scored 32 out of 100 possible points, the worst score of the eight business units owned by their corporate parent. This plant’s senior leadership team embraced our culture process fully and promptly.

They defined values with observable behaviors so everyone – leaders and employees – understood what the rules were for effective daily interactions. They increased performance accountability across their production lines. They measured how well leaders lived the organization’s new valued behaviors. They praised leaders who modeled their values, coached leaders who struggled, and redirected leaders who didn’t model or manage to the new values.

Within six months, conflicts, absenteeism, re-work, and grievances dropped by 60 percent. Within twelve months, efficiency had improved by over 40 percent. Customers reported amazement at the “new service attitude” that company staff displayed.

When the next “all company” employee engagement survey came around twelve months later, their plant scored 62 out of 100 points! Theirs was the biggest gain in engagement scores of any of business unit in their company system. And, their plant earned the top score across the organization.

At the eighteen-month mark, employee engagement had grown 45 percent, customer service rankings had grown 45 percent, and hard dollar profits gains surpassed 35 percent.

Plant leaders gave all the credit to every leader and employee’s alignment to their organizational constitution.

Another client, a seven-state region of a large retailer, embraced our culture change process because the new senior leader’s vision wasn’t taking hold fast enough.

Joel, the region’s senior leader, believed and preached “People with Passion drive Performance!” Joel’s messaging and coaching in his first 18 months in the position helped some store managers “get it.” However, most store managers did not.

Twelve months after creating their organizational constitution and managing to it (with our guidance), Joel’s region enjoyed 40 percent gains in employee engagement, 40 percent gains in customer service, and 30 percent gains in profits.

Another client, a manufacturing plant in the Midwestern USA, discovered a fabulous peripheral benefit to their organizational constitution. Their small town suffered flash flooding one spring, which caused tremendous damage in their community. Families were evacuated with little time to gather necessities.

Within hours, plant employees banded together to provide food, clothing, and transportation for their neighbors. They volunteered hundreds of hours for the Red Cross at the evacuation center. They secured funds from the plant’s parent company to rebuild homes and businesses in the following months.

The plant manager said in the 40 years that plant had been operating in that town, no one had ever seen employees rally so quickly and confidently to serve their fellow community members. Some of the employees who volunteered to help had also suffered significant losses in the flooding. “Our values and behaviors didn’t just apply inside the plant. These employees made sure they applied in our town, too,” she said.

The reality is that your culture drives everything that happens in your organization, good or bad. If you’re only paying attention to results, you’re leaving money on the table.

My latest book, The Culture Engine, guides leaders to create workplace inspiration with an organizational constitution. Get your free sample chapter here.

How healthy is your team or company culture? Don’t guess – get the data with my online Culture Effectiveness Assessment.

Photo © Monkey Business – Dollar Photo Club. All rights reserved.

Subscribe!Podcast – Listen to this post now with the player below. Subscribe via RSS or iTunes.

The music heard on these podcasts is from one of my songs, “Heartfelt,” copyright © Chris Edmonds Music (ASCAP). I play all instruments on these recordings.


Subscribe to Chris’ mobile updates, texted right to your smartphone! Text VALUES to 72000 or head here.


Chris’ new “Culture Leadership Charge” series and the rest of his video clips can be found on YouTube. Subscribe to Chris’ YouTube channel.


vimeo_logoChris’ new “Culture Leadership Charge” series and the rest of his video clips are also available on Vimeo. Subscribe to Chris’ Vimeo channel.


podcast_subscribeSubscribe to Chris’ posts via RSS.


itunes_subscribeListen to or subscribe to over 300 of Chris’ Culture Leadership Podcasts on iTunes.


The music heard on Chris’ podcasts is from one of his songs, “Heartfelt,” copyright © 2005-2017 Chris Edmonds Music (ASCAP). He played all instruments, recorded all tracks, and mastered the final product for your listening pleasure.

Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, Chris will receive an affiliate commission. Regardless, Chris only recommend products or services he uses personally and believes will add value to his readers. Chris is disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

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The Right to Work Place Inspiration

Bright ideasWhat are your organization’s KPIs – key performance indicators? If I ask you to list your company’s top five KPIs, it’s likely that you’ll know some of them right off the bat. Others may not be so clear.

It is the responsibility of senior leaders to make KPIs simple and succinct, to communicate them regularly, to demonstrate them, and to hold staff accountable for them.

Clear KPIs help everyone in the organization align daily plans, decisions, and actions to those important metrics.

KPIs are an important right in organizations today. Every organization member – leaders, managers, supervisors, front line team members – has the right to know what performance is expected and what performance they’ll be held accountable to deliver.

Everyone in your company has the right to, what I call, WPIs, as well – policies, procedures, and practices that create Work Place Inspiration.

It is the responsibility of senior leaders to make WPI practices simple and succinct, to communicate them regularly, to demonstrate them, and to hold staff accountable for them.

Clear WPI practices help everyone in the organization align daily plans, decisions, and actions to those practices.

In my culture work with senior leaders, I help them craft their organizational constitution – a formalized statement of agreements outlining how their organization will deliver promised performance (KPIs) in alignment with the organization’s valued behaviors (WPIs).

They build an organizational constitution that “holds these truths to be self-evident” – employees deserve KPIs and WPI practices!

The benefits of work place inspiration have been proven time and again. Research* indicates that happy employees – those with positive personal well-being – compared to unhappy employees:

  • Deliver 31% higher productivity
  • Demonstrate 3 times higher creativity on the job
  • Are ten times more engaged by their jobs
  • Are 40% more likely to receive a promotion within a year
  • Generate 37% greater sales figures
  • Are three times more satisfied with their jobs

* The Economics of Wellbeing by Tom Rath & Jim Harter and Positive Intelligence by Shawn Achor (from the January/February 2012 Harvard Business Review)

Some companies take their organizational constitution more literally, outlining governance of the business, i.e. employee ownership of the company (Shift Communications did that recently).

Most of my culture clients do not have concerns with or need for refining business governance. Their opportunity lies with understanding their organization is too KPI-oriented and is not a “great place to work.” Their constitution addresses both KPI and WPI rights.

KPIs raise awareness of performance metrics but do not, alone, guarantee delivery of those KPIs. WPI practices consistently boost employee performance, passion, and profits.

Your employees deserve a safe, inspiring, productive work environment. Honor their rights to both KPIs and WPI practices.

To what extent does your organization clarify both KPIs and WPI practices? To what degree is your company’s work environment consistently productive, safe, and inspiring for you?  Note your thoughts about this post/podcast in the comments section below.

How does your boss fare in my new fast & free Great Boss Assessment? Contribute your experiences – it takes only minutes. Results and analysis will appear on my blog’s research page once we reach 100 global responses.

My assessments & research findings can help you boost the effectiveness of your organization’s leadership and culture. Contact me to schedule a free phone call to discuss your needs.

Photo © istockphoto.com/moshimochi. All rights reserved.

Subscribe!Podcast – Listen to this post now with the player below. Subscribe via RSS or iTunes.

The music heard on these podcasts is from one of Chris’ songs, “Heartfelt,” copyright © Chris Edmonds Music (ASCAP). Chris plays all instruments on these recordings.


Subscribe to Chris’ mobile updates, texted right to your smartphone! Text VALUES to 72000 or head here.


Chris’ new “Culture Leadership Charge” series and the rest of his video clips can be found on YouTube. Subscribe to Chris’ YouTube channel.


vimeo_logoChris’ new “Culture Leadership Charge” series and the rest of his video clips are also available on Vimeo. Subscribe to Chris’ Vimeo channel.


podcast_subscribeSubscribe to Chris’ posts via RSS.


itunes_subscribeListen to or subscribe to over 300 of Chris’ Culture Leadership Podcasts on iTunes.


The music heard on Chris’ podcasts is from one of his songs, “Heartfelt,” copyright © 2005-2017 Chris Edmonds Music (ASCAP). He played all instruments, recorded all tracks, and mastered the final product for your listening pleasure.

Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, Chris will receive an affiliate commission. Regardless, Chris only recommend products or services he uses personally and believes will add value to his readers. Chris is disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

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