Employee Engagement

Adventuring Together: Life at Epic
Adventuring Together: Life at Epic 1052 789 SageRiver Consulting, Inc.

In our “Stories from the Field” series, SageRiver sits down with senior leaders who are transforming their organizations for tomorrow. Our latest conversation is with Mallory Heinzeroth, who leads the Asia Pacific region for Epic. A global leader in healthcare IT, Epic is known for its electronic medical records software and implementations. The company stays at the leading edge of healthcare technology by investing in a creative culture based on collective learning, adventure and fun.

The year was 1979. In a basement in Madison, Wisconsin, an unknown software engineer named Judith Faulkner decided to launch a business. She had a novel idea, but the road ahead was uncertain. Her goal was to develop software that would enable healthcare providers to improve patient care.

With 1-1/2 employees and a $70,000 investment, she established a company whose software now benefits 250 million people worldwide. She also helped create the electronic medical records industry, which revolutionized the way doctors and hospitals care for patients.

It’s the stuff of tech legends.

“Our philosophy is very simple: Do Good, Have Fun, Make Money—in that order,” said Mallory Heinzeroth “Our work affects both individuals and our societies at large, so we have a huge responsibility to do the right thing and help shape systems to improve patient care.”

In a Galaxy Far, Far Away

Known for its unique culture, Epic takes a “learners welcome” approach that fosters innovation and continuous improvement. The company doesn’t require employees to have healthcare technology experience and commits to train and develop them throughout their careers. Epic’s growth mindset extends far beyond on-the-job training and tuition reimbursement, however, as even a quick trip to its headquarters shows.

Located in rural Verona, Wisconsin, the Epic campus is a galaxy unto itself. (In fact, Epic refers to it as the “Intergalactic Headquarters.”) Whimsical artwork dots the landscape, and a treehouse often serves as a meeting spot.

All photos courtesy of Mallory Heinzeroth

Ad hoc employee groups—known as “Motley Crews”—can be seen playing board games, competing in sports or exploring other shared interests after work. Participation is voluntary and employee-led, but it’s all part of Epic’s commitment to fostering an engaging workplace.

“We’ve done a lot of research about what it means to have an enriching, productive environment that inspires people,” Heinzeroth said. “We allow space for people to be creative, have fun and try something new.”

To that end, Epic organizes a “Shark Day” to give employees the opportunity to learn together about topics outside their work. The company also enlists speakers and professors from the University of Wisconsin – Madison to lead classes and workshops. Epic employees teach seminars as well.

The activities build camaraderie and create an expectation of continual growth, Heinzeroth said.
“There’s always a new learning adventure, so it feels like something people do every day rather than something that is a set requirement. That’s an aspect of our culture that is unique in the business world.”

Iliads, Odysseys, Sabbaticals

The fun continues off campus through Epic’s adventure and exploration programs, which support experiential learning inside and outside the United States.

Each year, Epic plans Odysseys to far-flung—and often difficult-to-reach—locations. Any employee can sign up for these opportunities to join colleagues on a vacation, and friends and family members are welcome.

After two years with the company, employees who travel for work can earn an Iliad adventure underwritten by Epic. Employees can choose where they go and how they spend their time. The goal is to give them an opportunity to recharge and have fun.

Employees are also eligible for a paid four-week sabbatical every five years, which they can spend in the place and manner of their choosing. Some enjoy time at home exploring outside interests, while others travel internationally to volunteer or experience different cultures. Epic pays a portion of the costs.

Although these adventures have no direct connection to Epic’s work, employees post pictures online and return to the office with renewed energy and fresh learnings.

Mallory Heinzeroth during a sabbatical in New Zealand.

Fuel for Success

After 40 years, Epic now numbers 10,000 strong. It continues to be an innovation leader and enjoys one of the highest employee retention rates in the industry.

Its learning-and-adventure-fueled culture may be a reason why.

“We invest in not-so-basic benefits because they help broaden the views and perspectives of people who work here, which, in turn, makes us better able to design and implement software for all people especially those who may be different from us,” Heinzeroth said.

The results have driven Epic’s success—and improved the lives of patients worldwide.

To learn more about building learning and adventure into your organizational culture, contact SageRiver at (720) 443-2551.

The Habit of Adventure: Five Steps Toward Rejuvenating Your Mind and Spirit
The Habit of Adventure: Five Steps Toward Rejuvenating Your Mind and Spirit 1989 1329 SageRiver Consulting, Inc.

As a team builder and executive coach, I know leaders worry about keeping their workforce motivated. Disengaged employees lower morale and cause productivity to plummet. If the problem persists, it can have serious consequences for the whole organization.

Why do employees lose their passion and purpose? One of the main culprits is boredom. According to the 2016 Udemy Workplace Boredom Study, employees who are bored at work are more than twice as likely to quit. When faced with stagnant workplaces or repetitive tasks, they look for new mountains to climb. They believe, as Helen Keller once said, that “life is either a daring adventure or nothing at all.”

Smart leaders know this and offer engaging opportunities to fuel learning and collaboration among their team members. But here’s a question: Do you offer those same opportunities to yourself? Do you keep your own engine humming by incorporating adventure into your work and life?

If you don’t, then it’s time to start. By making adventure a habit, you’ll remain fresh and curious as you strive to become the best version of yourself. Here’s how: 

Mine Your Memories

Adventures are simply exciting or unusual experiences, and they can be challenging, pleasurable—or both! Often, the past offers clues about the adventures we’ll enjoy most. Think back to your childhood or other times when you felt loose, happy and free. Some of my best memories are exploring outside or playing sports with friends. Although I was building skills, those experiences felt nothing like school. I remember only friendship and fun. What about you? What were you doing in your happiest memories? Who were you with? What clues do those experiences offer about adventures you’d enjoy today?

Take Small Steps for Big Results

Often, the best way to build your “adventure muscle” is through small changes that take you into unexplored spaces. For example, you may want to invite another person to lunch, visit a local museum you’ve never tried, read a different type of book, vary your route home from work or enroll in a class. These “mini adventures” require little time or money; they just foster discovery and open you up to bigger adventures down the road. As B.J. Fogg noted in his book, “Tiny Habits,” small steps matter because they help us build momentum toward larger goals.

Plan Your Itinerary

Planning will help you keep the momentum going. Consider scheduling quarterly check-ins with yourself to decide what to explore next and plan bigger adventures that require more time, money or information. The point is not to turn adventures into a task, but rather to make space for novelty and the juicy anticipation of learning.

Bring Buddies

Including others in your adventures will increase your enjoyment. As a team-building facilitator, for example, I intentionally design experiential learning into our client engagements. We’ve asked teams to build and sail boats, oriented through wilderness areas and competed in indoor games. These shared experiences help team members see each other in new ways and deepen their relationships. Adventures also spur learning and retention, as our brains build neural pathways to remember new or unusual experiences.

Reward Yourself

The great thing about adventures is that they’re a reward in and of themselves. It’s just plain fun to experience different cultures, swing down a zip line or meet more people. Still, take a moment to congratulate yourself on having the courage to step out into the unknown. Celebrate your adventure and reflect on what you’ve learned and loved most. Above all, look for ways to bring that newfound fun into your daily life.

Just as ships weren’t built to stay in harbor, people aren’t meant to live without adventure. You were born for it. Get started today—and share your experiences with us on Twitter and Facebook. Or, contact SageRiver to learn more about bringing adventure to your workplace through team building and enhanced organizational design.

 

Beliefs→ Behaviors→ Results: Engaging Teams in Defining Values-Based Behaviors
Beliefs→ Behaviors→ Results: Engaging Teams in Defining Values-Based Behaviors 1630 1223 SageRiver Consulting, Inc.

The excitement grew as employees flipped the posters to reveal six winning words and then placed them in a new order. When the audience realized the words formed the acronym “WE CARE,” they rose for a thunderous ovation.

The enthusiastic crowd wasn’t a group of fans cheering a rock star. They were DaVita employees—better known as “teammates”—applauding DaVita’s new descriptors of how they would translate their patient care beliefs into everyday behaviors.

The descriptors were unveiled at a 2018 DaVita Academy in Denver. The two-day event is held to nurture the culture of DaVita, which is known as a village because DaVita places community at its center. The unveiling capped a highly democratic process that involved hundreds of teams and thousands of voters worldwide.

Giving Life to Guiding Principles

As part of SageRiver’s “Workplace of the Future” e-newsletter series, we’ve been exploring how leading companies are bringing their guiding principles to life and sharing those insights with clients. After contacting DaVita to learn more about its intentional culture, I was invited to attend a 2018 DaVita Academy. The experience gave me a unique opportunity to see how DaVita was translating its vision, mission and values into behaviors that would guide day-to-day interactions within a specific organizational context.

Why does defining behaviors matter? Because the workplace today includes five generations working across time zones and cultures at a faster pace than ever. Given those factors, employees may understand company values differently without even realizing it. By tying values to specific actions, companies like DaVita help develop a shared understanding that allows teammates to better accomplish their purpose.

Respecting the Commitment

A Fortune 500 company and a leading provider of kidney care, DaVita is known for its human-centered, democratic culture. In fact, DaVita was literally named by its teammates, and its team values were defined almost 20 years ago through a democratic process. That same community spirit guides all aspects of DaVita’s village life today.

A core tenet of DaVita’s culture is that “beliefs drive behaviors, which drive our results.” Village values—or beliefs—are reflected in every aspect of DaVita’s workplaces, events, communications and more. DaVita determined it was time to turn its beliefs around caring for patients into specific, tangible behaviors.

Given its culture, DaVita knew what launching a democratic process to define those behaviors would entail.

“If you truly engage your people, it can make your culture much stronger,” said Dave Hoerman, chief wisdom officer of DaVita Inc. “You have to be ready to listen to what your teammates say, however, and decide to live in integrity and accept the answer, even if it wasn’t what you expected to hear.”

Before engaging teammates, DaVita thinks carefully about the type and level of input they’re seeking and how it will be used. They also consider whether they can commit enough time, money and energy to engage the village in effective ways. As a result, when teammates are asked to provide input, they know their voices will be heard and valued, which helps build trust throughout the village.

Deciding What Caring Looks Like

For this effort, DaVita underwent a global, iterative process to determine which behaviors were critical to making patients feel cared for. The process involved:

  • Facilitating multiple rounds of input to collect top behavior ideas from more than 500 teams across the village
  • Democratically voting to winnow the list of behaviors from 14 to six
  • Engaging more than 11,000 voters from 13 countries (Voters included clinical and corporate office teammates, as well as physicians.)
  • Reviewing the list with all top executives to ensure the behaviors were actionable, not duplicative, and aligned with the mission and values.
  • Organizing the final behaviors into an easy-to-remember acronym

Rather than simply announce the final result, DaVita engaged teammates in an exciting interactive event. The unveiling included more than 2,000 teammates attending the Academy and thousands of others streaming in live from across the globe. Three teammates came on stage to engage this world-wide audience in guessing which six of the final 14 behaviors had been voted the winners.

DaVita defines itself as a community whose teammates “care for each other with the same intensity with which we care for our patients.” Appropriately enough, when the winning behaviors were revealed the next day, their first letters spelled “WE CARE.”

Continuing the Journey

While the Academy reveal generated excitement, DaVita was just beginning its journey toward understanding and living the WE CARE behaviors.

“Relentless reinforcement is absolutely critical to making the behaviors sticky,” Hoerman says, noting that he’s changed his email sign-off to “Every interaction matters!” as a reminder about the importance of WE CARE actions.

As an organization, DaVita will integrate WE CARE behaviors into the culture in several ways, such as:

  • Leaders will share WE CARE stories during village meetings and events to reinforce the meaning, purpose and impact of the behaviors.
  • Team activities will be suggested to help teams learn about and practice the behaviors during regular meetings.
  • Leaders will observe their teams as they interact with patients to identify opportunities for recognition and coaching.
  • The teammate onboarding process will include education around what the behaviors are, how to live them and why they’re critical to DaVita’s culture of caring.
  • WE CARE will become a part of DaVita’s visual imagery and will be represented in its centers, offices, and major events to keep the behaviors top of mind.

Renewing and Strengthening Your Culture

As DaVita’s experience shows, engaging your team in defining behaviors can help renew and strengthen your culture. Behaviors must be embraced by everyone, and teammates are more likely to enthusiastically “own” new behaviors if they create and celebrate them together. Once that initial work is done, the behaviors must then be integrated into HR practices, training, branding and meetings so the culture change takes hold.

The process takes effort, but it’s an investment worth making if you want to breathe new life and power into your vision, mission and values. To discover more about how DaVita built its “radically human” culture, click here.

 

Eating the Elephant: A Bite-by-Bite Approach to Evolving Your Organizational Design
Eating the Elephant: A Bite-by-Bite Approach to Evolving Your Organizational Design 622 415 SageRiver Consulting, Inc.

Your board of directors has selected a new leader for your organization. Smart and dynamic, the leader sends a jolt of energy through the company.

A few months later, a memo arrives announcing an organizational redesign.

The goals aren’t well defined, but you’re determined to support the change. Your employees, customers and vendors express frustration and ask why the change is happening. You aren’t sure, but you respond as well as you can to move everyone forward in an uncertain direction.

If this scenario sounds familiar, you’re not alone. More than 75 percent of organizational redesigns fail to deliver the intended results, a 2015 McKinsey report showed. Redesigns can lift performance, but they require time, energy and collective will to succeed. When organizations beat the odds, it’s usually because they’ve thought holistically and engaged their team through a full change management process. In short, successful organizations embrace the adage, “You have to go slow to go fast.”

Begin with the End in Mind

As the rate of change accelerates, many organizations are rethinking their designs to help them move faster. One size doesn’t fit all, but the trend is toward flatter, more decentralized organizations that adopt a “team of teams” approach. This type of design can deliver greater speed, innovation and agility by allowing interdisciplinary teams to form and reform in response to organizational needs.

If speed is the desired outcome, then why approach organizational redesigns at a more deliberate pace? Because a redesign involves more than just moving boxes on an organizational chart. In fact, changing your structure may be the final step you take after you assess how the building blocks of your company, which include your people, systems, processes, technology and more, help you execute your strategy. The way you fit those components together is what we mean by organizational design.

Time in the Trenches

At SageRiver, we review your design as one factor in the strategy process. Before recommending changes, we collaborate with you to explore points of light and pain within the organization. For example, we look for efficiency gains, innovation centers and leadership approaches that improve performance. We also consider resource constraints, process gaps and misalignments that hamper your team.

By digging deep and listening carefully, we discover whether evolving your organizational design will help you to realize your strategic vision.

This process involves engaging leaders, employees and stakeholders from all facets of your organization. In addition to asking for their insights, we’re gauging how ready they are for change, using the ADKAR model developed by Jeff Hiatt at Prosci. In the early stages, we assess whether your team sees the need for change. Later, we evaluate what information, tools, training and reinforcement they need to make the desired changes.

Bite by Bite

Although organizations are often tempted to jump right into restructuring their organizations, redesigns work best if you tackle other elements first. For example, if you plan to transition to a flexible team-based structure, it’s important to ask questions such as:

  • Have your employees fully understood and embraced your vision, mission and values?
  • What steps could you take to help your leaders be effective guides, facilitators and coaches, rather than top-down managers?
  • How would you describe your culture in terms of your approach to developing employees? Is feedback offered continually at all levels of your organization and welcomed as an opportunity for growth?
  • What internal tools, structures and coaching resources can you offer to facilitate effective collaboration?
  • How do you share individual and team goals and track progress in achieving them? (Transparent accountability is key to helping teams understand how responsibilities and activities align.)
  • What mechanisms do you have in place to evaluate, reward and advance employees within a flexible team(s) environment?

As you consider those questions and more, you’ll understand how much foundational work a successful redesign requires.

It’s the rare organization that can “eat the elephant” all at once. Successful organizations eat the elephant bite by bite through a series of small snacks.

Welcome Back, Kotter

If this process rings a bell, it’s because it draws on the stages outlined in John Kotter’s change model. One of his key insights was that change must be approached as a shared journey toward a compelling future.

As you begin your journey, it’s important to start with manageable pilot efforts, which you can test, refine and retest before implementing them across the organization. The reason for this is simple: Broadscale change involves big risks and can spark mistrust and resistance if it fails. By focusing first on smaller changes that deliver value, you can invite input from your team as you go and engage them in creating an organization that works for everyone. As you celebrate wins along the way and work together to make improvements, you’ll build trust and ownership and create an accelerating snowball of change. (Kotter’s See-Feel-Change framework, which he outlines with co-author Dan Cohen in their book, “The Heart of Change: Real-Life Stories of How People Change Their Organizations,” describes why this approach is so effective.)

Evolution Revolution

This approach to organizational redesign is a far cry from the old way, in which leaders huddled with a few people and then imposed a new structure on the organization. That top-down approach matched the top-down structures that characterized an earlier economy.

In the workplace of the future, which demands greater speed, agility, engagement and innovation, the process must fit the type of organization you hope to create. If your vision is of an organization that evolves constantly to meet the changing demands of the marketplace, then you must take a revolutionary approach to change by inviting your team to help design your future.

To find out more about SageRiver’s strategy development and organizational design services, contact us today.

Radically Human: The DaVita Way
Radically Human: The DaVita Way 977 652 SageRiver Consulting, Inc.

In our “Stories from the Field” series, SageRiver sits down with senior leaders who are transforming their organizations for tomorrow. Our latest conversation is with Dave Hoerman, chief wisdom officer of DaVita Inc., a Fortune 500 company and a leading provider of kidney care in the United States. DaVita’s human-centered, democratic culture has caused executives nationwide to rethink why companies exist and how they should be led.

“Sitting outside his home on a Nigerian mountainside, Modupe looked out over the farmlands below. As always, his fellow villagers were tending the fields and caring for their children. But on that day, Modupe watched in fear as a river overflowed its banks and rushed toward his village.

Knowing he couldn’t warn everyone in time, Modupe set fire to his home. When the villagers saw the flames consuming his house, he knew they would come to his aid. Better to lose a home, he thought, then the villagers he loved.

Just as he expected, the villagers saw the flames and abandoned their crops to help him. As they ran up the mountainside, the river flooded their fields. Although their harvest was lost, the villagers all lived to plant again in another valley.”

Leaders tell this story, whose original author is unknown1, at many meetings at DaVita Inc. “What lesson does the story teach?” a leader will ask. “One for all, and all for one,” the DaVita team will often answer. (Taken from the book “The Three Musketeers,” the expression is used as a reminder of their mission and commitment to each other.) In the story, the villagers are not defined by their roles as home owners or farmers. They are part of a community, and community members care for each other. That is what why the village exists and why the villagers thrive.

What We Do Is Not Who We Are

At DaVita, Modupe’s story has special resonance because it speaks to the core purpose of the company, which is to nurture the well-being of the community. This belief is so central that employees, who call themselves “teammates,” refer to their company as a village.

Although many companies describe their culture as a blend of how people think, relate and carry out their work, DaVita distinguishes between what the community is and what the company does.

“When people ask us who we are, we say we’re a community first, and we care for each other,” says Dave Hoerman, chief wisdom officer for DaVita Inc. “What we do is provide healthcare. That fuels the economy of the village. Community first, company second—that’s the shorthand description of our culture.”

Keepers of the Flame

Hoerman should know, as his team focuses full time on tending the flame of DaVita’s culture. Hoerman’s group developed the village credibility book and welcomes new teammates to the village during a two-day experience called the DaVita Academy. They also ensure DaVita’s language, symbols and traditions reflect the community’s values and spirit.

“We’ll often say, `in the spirit of our values’,” Hoerman says. “We believe we have a spirit. We believe love and caring are at our core. We don’t shy away from those ideas and that language because we want this place to feel soulful.”

Under the careful eye of Hoerman’s team, every communication, meeting, event and workspace is designed to reflect DaVita’s spirit. Village leaders’ quotations are painted on office walls, and caring stories are shared with teammates. Storytelling, in fact, is a central component of life at DaVita, as stories open conversations, illuminate meaning and connect to people’s emotions and beliefs.

Voice of the Village

From the beginning, DaVita has taken a radically democratic approach to creating its culture and co-leading the company.

That commitment began in 1999, when Kent Thiry became CEO of a company called Total Renal Care. The company was on the verge of bankruptcy, and its employees were demoralized from working long hours for a failing organization. Although the financial pressures were intense, Thiry decided his first priority was to create a purpose-filled and caring workplace. Accordingly, he invited employees to help transform their company into a place they wanted to be.

Working together, thousands of employees developed and selected a new name, DaVita, which means “he/she gives life.” They also defined seven core values they wanted to live by as a community and held each other accountable for living out those beliefs. Over time, their shared language evolved, and they moved from being employees to teammates who care for each other as a village.

One of the core tenets of DaVita’s culture is that people’s beliefs drive their behaviors, which drive their results, and that quickly proved true. Caring for each other translated into providing extraordinary care to patients, too. That, in turn, fueled DaVita’s turnaround and growth into one of the leading providers of kidney care in the United States.

Today, DaVita teammates are still co-leading the company, and hierarchical titles are rarely used. Even a C-suite executive like Hoerman introduces himself as “a teammate with the wisdom team” to help level the playing field and invite everyone to share their best ideas as equals.

Hoerman’s group also checks in with teammates regularly to ensure the culture is working well and invite input and ideas. Teammates selected the name for the new coffee shop, for example (the winner was “Village Grounds”), and they’re naming a new office tower as well. In addition, DaVita leaders conduct regular “Voice of the Village” calls and drop in on meetings or classes to lead “Town Halls” to solicit instant feedback.

“We gather data and feedback in a lot of different ways, and when we get enough, we adjust,” Hoerman says. “You can stay nimble if you don’t overcomplicate things.”

Deposits in the Village Bank

Instead of prizing status and issuing directives, DaVita’s leaders focus on modeling village values. If the purpose of the company is to nurture the community, Hoerman says, then a leader’s first priority is to know and care about community members.

Hoerman puts this into practice by making what he calls “village deposits.” Each month, he sets a goal for saying hello, introducing himself to teammates he hasn’t met and talking with others about how they’re caring for each other. His assistant holds him accountable by asking questions and noting his progress on a “humanity scorecard.”

The goal is to create a place where people feel welcomed, cared for and known, Hoerman says, and that only happens when people open the door to conversation. Each interaction is like making a deposit in DaVita’s culture bank.

Those caring interactions are bolstered by village programs. One example is a trust fund called the DaVita Village Network, which helps teammates pay for unexpected expenses due to natural disasters or personal or family tragedies. The contributions, which are matched by DaVita, come from other teammates wanting to help their fellow villagers.

DaVita also offers educational programs through DaVita University for teammates with different needs. For example, one course called “Camp Courage” serves teammates battling cancer, while another assists teammates who are military veterans assimilating into life after service.

Mind, Body and Spirit

DaVita promotes other practices to strengthen DaVita’s culture as well. Those include breathing exercises, meditations, yoga poses, stretching breaks and more. Although the techniques are atypical for a Fortune 500 company, DaVita has seen results from acknowledging that people bring all of themselves—mind, body and spirit—to work.

“A community shows up with emotion,” Hoerman says. “We talk about spirit and soul and give people an opening to set their intentions, reflect on an experience or share a story. Initially, people think it’s strange and ask why we’re doing it, but the results are very real.”

The practices help community members care for themselves and each other, as well as perform at their best. One example is starting meetings with a “check-in” to allow teammates to share what is on their minds and in their hearts. As each person talks, the group listens without judgment and asks what the person needs to feel supported. The answer may be as simple as celebrating a success, acknowledging a struggle or letting someone step out of a meeting to take a call.

“What we’ve found is that this process helps people release the worries, stresses, fears and anxieties they’ve brought into the meeting or the class,” Hoerman says. “Once they’ve expressed those feelings, they’re better able to focus on the decisions at hand.”

School for Life

Because DaVita prioritizes community first, company second, learning opportunities are offered continuously and encompass personal transformation as well as professional development.

“We live in a community, and that means we care about the personal beliefs of people,” Hoerman says. “Sometimes those beliefs are self-limiting, and sometimes they’re helpful. We want to give people a chance to examine their beliefs and identify where they can take a step forward to create healthier lives.”

The wisdom team develops and sponsors these human transformation opportunities as part of nurturing the community and its members, Hoerman says. Unlike typical training programs, these programs aren’t tied to job responsibilities or performance measures. Instead, the goal is to care for teammates as whole people and help them grow. That, in turn, strengthens the culture and naturally leads to better patient care.

“Our beliefs drive our behaviors, which in turn drive the results we get in our lives,” Hoerman says. “We want to raise the consciousness of every person in our community because that is what a caring community would do.”

If your organization is interested in transforming its culture, contact SageRiver to learn more.

1 Although the original author of Modupe’s story is unknown, it is included in James M. Kouzes and Barry Z. Posner’s classic book, “Credibility: How Leaders Gain and Lose It, Why People Demand It.”

It’s Time to Ditch the Employee Handbook
It’s Time to Ditch the Employee Handbook 622 415 SageRiver Consulting, Inc.

I approach each new consulting engagement with the eye of an anthropologist. I’m listening for business needs, but I’m also looking for signs about the beliefs, values, norms and traditions of the company. I want to understand the company culture, so I can engage and contribute effectively.

New employees feel the same way, which is why leading companies are moving away from policy-filled employee handbooks toward more creative culture books that illuminate their unique “civilization.” This culture investment pays off because culture has become a critical differentiator in attracting and retaining talent, while elevating organizational performance. A vibrant culture is imperative because it provides the “soil” in which employees flourish, which then enables them to embrace and implement a strategic vision. For that reason, smart companies view their cultures as strategic assets and cultivate them accordingly.

What do great culture books look like? They’re as varied as the organizations that produce them. Some are elaborate storybooks; others are simply a series of slides with culture pointers. It really isn’t about the budget or production approach. It’s about painting a picture of life at your company. We’ve summarized key elements from the best culture books to help you inspire, guide and invite new employees into your unique world.

It All Began When…

Your origin story is a powerful way to illustrate the values and purpose that drive you. New employees want to know how your company began, who your founders were and what inspired them to start a company. It’s equally important to show through concrete anecdotes and examples how your mission, vision and values shape your work today. Your culture is an unfolding story that your team is writing together. (IDEO’s culture book is arranged in chapters with just this idea in mind.) Give your new employees a clear picture of how their everyday behaviors will help contribute to your culture.

Many Characters, One Story

A great culture book includes more than a letter from the CEO and a description of what already exists. Great culture books reflect the perspectives of employees, who co-own and shape your evolving culture.

Before you start writing, gather a cross-section of employees and ask them these questions: What do you know today that you wish you’d known on Day One? What makes you stay at this company? What stories or quotations can you share that exemplify this culture? Your new employees will enjoy hearing from the resident experts in their own words, which is why companies like Zappos and Sterling Mining have incorporated employee text messages, photos, video clips and stories directly into their culture books.

Home Away from Home

Help new employees feel at home by explaining the practical dos and don’ts of your workplace, just as New York ad agency Big Spaceship did in its culture book. How do you dress? What communications systems and methods do you use? Where do people congregate or go for breaks? Do you have team activities or recreational events they can join? Are there definite “don’ts,” such as taking calls on speaker in an open office area?

Each company is unique, so identify the tips that will best equip employees to engage in your workplace. Alongside the guidance, try to explain why you live together as you do, so employees can better understand how your daily practices relate back to your values and purpose.

Growth Happens Here

Top performers care about growing throughout their careers. Top companies nurture that desire by providing clear avenues for learning and advancement. Netflix provided a roadmap for its new employees by answering questions, such as: What does top performance looks like, regardless of the individual role? What do teammates expect of each other? What behaviors get rewarded or discouraged? What are some proven avenues for learning and growth? If you answer those questions, you can amplify and direct the enthusiasm new employees feel.

The Best Workplace on Earth

Most workplaces have surprising or “cool” features that make them unique. Epic Systems Corp., a healthcare software company, invites employees to enjoy its beautiful Wisconsin surroundings by climbing up to a treehouse or riding cowhide-painted bikes around campus. True to its outdoor ethos, apparel and gear designer Patagonia lets employees take work-day breaks to go surfing at peak tide. Your surprising workplace benefits will be unique to your company and location. Whatever they are, include them in your culture book so your new employees will know they’ve arrived at the best workplace on Earth.

As your culture book starts to take shape, you’ll identify additional elements that are particular to your workplace and team. You may wonder if you should include policies and procedures, too, as those are critical tools for setting expectations and mitigating risk. We agree that employees need to know the rules that govern them; we’d simply suggest including your policies and procedures as an appendix or directing your employees to your Intranet for the most current and complete listing. Whatever you choose, keep revisiting and evolving your culture book over time. It’s a valuable way to engage your team in strengthening your culture year after year.

Contact us to find out how SageRiver can support your culture book development.

The Learning Organization: Farm Credit Services of America
The Learning Organization: Farm Credit Services of America 884 545 SageRiver Consulting, Inc.

In this new series, titled “Stories from the Field,” SageRiver sits down with senior leaders who are transforming their organizations for tomorrow. Their inspiring stories illustrate how leaders and employees are co-creating the organization of the future to achieve greater agility, engagement, innovation and performance. Our first conversation is with Ann Finkner, senior vice president and chief administrative officer of Farm Credit Services of America (FCSA), a customer-owned financial cooperative serving farmers and ranchers in Iowa, Nebraska, South Dakota and Wyoming. FCSA’s holistic approach to becoming a learning organization makes it a national leader in employee engagement.

You Say You Want a Revolution

Founded in 1916, FCSA has a rich tradition of providing credit services to those who feed the world. Known for its honesty and integrity, the organization serves its members proudly and helps strengthen their farming and ranching operations through good times and bad.

In the late 1990s, FCSA welcomed a new CEO with a passion for organizational development and culture change. His arrival kicked off what Finkner calls a decades-long “cultural revolution” that transformed FCSA from a traditional top-down organization into one that engages all team members in imagining and creating the future. Over the same period, FCSA has more than quadrupled its annual income, which it then reinvests back into serving customers and shares with its customers/stockholders through cash patronage.

Mind Shifts

In those early days, FCSA knew it needed to reconceptualize leaders and teams to become the organization it wanted to be, Finkner says.

Accordingly, FCSA developed a new leadership framework based on the concepts of James M. Kouzes and Barry Z. Posner. The goal was to shift expectations and thinking, so leaders would understand their roles as facilitators, coaches and guides. Rather than manage through top-down directives, leaders were primarily responsible for inspiring a common vision, developing talent and fostering relationships with and among team members. For their part, employees were no longer individual contributors. They were teammates, collaborators and grass-roots leaders focused on shared growth and achievement.

FCSA offered training around these principles, refocused its annual leader meeting around leadership and leadership development, and empowered team members to collaborate in new ways.

“Leaders now had permission to do things differently,” Finkner recalls. “Instead of leading every meeting themselves, for example, they were encouraged to rotate the leadership and develop team ground rules and accountabilities.”

FCSA also retooled some programs to put leaders and team members on more equal footing. Leadership was not about elevated status; it was about accountability and responsibility, Finkner says.

Space Matters

Knowing that the physical environment influences how people think and act, FCSA transformed its workspaces into open settings with casual areas to encourage collaboration and conversation. Leaders work in open offices alongside their team members whenever possible, Finkner says, to strengthen relationships and understand how team members work together. Team members can also gather in conference areas or use enclosed phone booths for private or extended conversations.

FCSA discusses open workspaces in candidate interviews as well, letting applicants know that teamwork is an essential component of FCSA’s culture. That principle is being applied to a new building project at FCSA’s headquarters in Omaha, Nebraska, as well. A cross-functional team of leaders and employees guided the effort to ensure the design supports collaboration and meets essential team needs.

Winning Together

Aligning the compensation structure to team success was another important element of FCSA’s transformation, Finkner says. Annual incentive plans are now entirely team based, with support teams participating with the customer-facing teams they assist. (Individual performance is factored into merit pay.)

“We are a team, not competitors, and we share the same goals,” Finkner says. “We wanted to encourage employees to partner in serving customers and to help everyone win.”

FCSA also eliminated annual performance reviews in favor of more frequent coaching discussions. Leaders facilitate monthly check-ins with team members, as well as more formal semi-annual conversations. Rather than review past performance, however, leaders use inside-out coaching to help employees identify how they can achieve their individual and team goals. Younger employees, who value ongoing feedback and growth, have especially appreciated the stepped-up coaching rhythm.

Teachers Are Everywhere

As FCSA’s evolution continued, a second CEO challenged the organization to think bigger. In addition to being great team members, he wanted FCSA employees to be better people because they worked there.

At FCSA, employee development is driven by experience, exposure and education, at both the individual and team levels. Each team member creates an annual personal development plan as part of annual goal setting. Goals are aligned to each person’s career stage and personal and professional objectives. FCSA also gives employees eight hours of paid volunteer time each year. In addition, employees can take occasional paid personal time to meet family commitments, serve in the community and pursue personal goals.

To support ongoing learning, Finkner’s team also expanded internal training and development opportunities. Employees can now access self-directed learning programs to explore long-term career goals, including future leadership roles. Facilitated trainings are also offered to team members at all levels to support their development. In addition, leaders and employees are encouraged to pursue more coaching, feedback and exposure to other teams and leaders as part of their personal development plans.

True to its team focus, FCSA convenes cross-functional teams to accomplish key objectives. Some of the teams, such as the women and young professionals teams, are standing groups. Others, such as the building design team, have time-limited missions. In addition to driving initiatives forward, the teams give employees the opportunity to learn more about FCSA’s business, build skills through new projects and forge relationships with team members across the organization.

Regular work teams learn and serve together as well. They are asked to complete quarterly activities, including volunteer projects, training sessions, teambuilding activities and celebration events. Employees also connect via online blogs and forums to share interests and ideas and explore mutual learning.

FCSA tracks the impact of these activities via IBM Kenexa, a talent management system that includes employee engagement surveys and analytics. Along with their annual survey results, teams receive a guide that helps them use their information to develop team engagement and business plans to drive continuous improvement. As an enterprise, FCSA consistently achieves among the highest employee engagement scores of all IBM Kenexa customers.

The Story of Us

Over the past 20 years, FCSA employees transformed their organizational culture, which they collaboratively defined in what they call their “We Are” statements. The statements are illustrated on posters throughout FCSA work areas and shared with new employees. In addition, employees develop an annual online publication that showcases what being an FCSA team member looked like during the past year.

New team members receive what Finkner calls “culture in a box”—literally a box including items that represent aspects of FCSA’s culture. In addition, new hires attend executive-led sessions that explore FCSA values and programs, such as new employee orientation, well-being and leadership development.

The culture is strengthened by connecting employees with FCSA members. Each year, employees visit member farming and ranching operations to further connect with the people they serve. FCSA is also involving employees and members in a “Shark Tank”-inspired initiative to create innovative ways to support farmers and ranchers.

Because leaders and employees own the culture together, Finkner says, there is a high degree of trust and transparency. In many ways, she says, the culture evolves organically and fosters mutual accountability based on shared values and expectations.

“New employees will say that our culture just feels different in a good way,” Finkner says. “That type of culture doesn’t just happen, though. You have to work at it and know how to be a team member and lead in that environment.”

Climbing Higher and Higher

As Finkner reflects on FCSA’s journey as a learning organization, she says some lessons are clear.

Employees are more likely to embrace change when they know the business case for new initiatives and can help solve potential challenges. FCSA has also created an expectation of continual learning, and employees know they have a vital voice in FCSA’s evolution.

“It takes time, and you can’t eat the elephant,” Finkner says. “You must decide where the greatest value is and start there. And then, you must continue to push forward, rather than being satisfied with where you are.”

Finkner also stresses the need to rethink leadership. As she has grown as a leader, she spends less and less time on functional responsibilities. Instead, her days are spent listening to stories, facilitating conversations and asking questions to guide development.

“Leadership is less about completing tasks than it is about creating value,” she says. “I’m here to be in service. That is how we add value as leaders.”

If your organization is interested in transforming into a learning organization, contact SageRiver to learn more.

 

Fostering a Healthy Team Ecosystem
Fostering a Healthy Team Ecosystem 2560 1707 SageRiver Consulting, Inc.

Early in my career, I developed an outsourcing consulting practice for Coopers & Lybrand, which later merged with another firm to become PwC. The practice grew quickly, as clients discovered the strategic advantages that outsourcing could offer.

Over time, however, I noticed a pattern. While managers adapted to new operational realities, few invested sufficiently in onboarding contractors and building integrated employee-contractor teams. As a result, their groups met basic business goals but failed to innovate and achieve optimal performance.

Similarly, companies today are adopting matrix organizational structures to achieve key strategic objectives. Pulled from different parts of the company—and often including contractors—these cross-functional “flash teams” need help developing a common purpose, language and operating structure. When leaders neglect those needs, their teams produce predictably mediocre results.

In today’s ever-changing competitive environment, companies need teams to operate at the highest level to ensure organizational success. That makes fostering an ecosystem for optimal team performance Job No. 1 for every leader.

Teams in Flux

Consider a few statistics that illuminate the challenge.

More than 40 percent of the U.S. workforce is employed in contingent roles, according to the General Accounting Office. The agency defines contingent roles as contractors, temps and on-call and part-time employees. At the same time, the U.S. Bureau of Labor Statistics reports that employee tenures are shrinking, with the median tenure currently at only 4.2 years on a job. (That number is even lower for millennial employees.)

With more roles being filled by contractors and employees moving in and out, teams are in constant flux. Is it possible to create cohesive teams in this environment? And, if so, can optimal team performance persist over time?

At SageRiver Consulting, we believe the answer is a resounding “yes,” but teambuilding can’t be left to chance while leaders focus on other tasks. Effective teams are characterized by high levels of trust, commitment, accountability, open dialogue, and results-focused recognition.* No group of employees—let alone of contractors and employees—will develop those traits without sustained effort.

Steps to Success

That is why leaders must focus tirelessly on nurturing a healthy team ecosystem. Here are five steps you can take to build a cohesive, motivated and high-performing team:

Step 1: Engage your team in developing your vision, mission, values and charter.

Commitment comes from understanding your purpose and uniting with others to achieve a worthwhile goal. Begin by defining your vision, mission and values and codifying those in your team charter. This document will also outline your operating principles and define “mission success.” Once the initial work is done, revisit the discussion regularly and bring your mission and values to life with storytelling and story listening. Through this process, you will engage new team members and reaffirm your shared commitment.

Step 2: Invest in individual and team assessments.

At SageRiver, we employ research-based diagnostic tools to support team performance and individual development. The assessments help diagnose challenges and create a common language for problem-solving and cooperation. Armed with these insights, teams can move beyond misunderstandings and labels and find more effective ways of collaborating.

Step 3: Recruit for attitude and aptitude in all roles.

Smart companies know that hiring for culture fit and talent beats hiring for skills alone. But do you select and orient your contractors in the same way? If key functions are filled by contractors, they’re an important part of your team ecosystem. Make sure they support your culture and values, rather than undermine them.

Step 4: Embrace open dialogue and mutual accountability.

Many teams struggle with honest feedback and mutual accountability because the discussions feel too emotionally charged. You may need to invest in training to help team members overcome their fears and build new skills. Ultimately, your goal is to shift the focus from blaming and shaming to mutually supporting team performance and individual growth.

Step 5: Empower peers and reward results.

In effective teams, members cheer for each other and recognize each other’s achievements. To build mutual accountability and commitment, empower team members to reward each other for their contributions to team goals. Ask them to give specific feedback about how and why a peer excelled and to offer that recognition in public.

Legacies That Endure

Although it takes an investment of time, money and energy to foster a healthy team ecosystem, the rewards are enormous. High-performing teams create a culture of their own that persists even after individual members (or leaders) leave. As Peter Drucker famously said, “Culture eats strategy for breakfast.” Creating an optimal team culture may be the most enduring legacy you leave your organization—and perhaps the most valuable one as well.

*Traits based on the research and writings of Patrick Lencioni, author of “The Five Dysfunctions of a Team,” and Adrian Gostick and Chester Elton, authors of “The Orange Revolution: How One Great Team Can Transform an Entire Organization.”

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