Gallup Culture Audit - Transformation Model 2023.pdf

Audit

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Gallup’s Culture Transformation Approach
HELPING ORGANIZATIONS STRENGTHEN THEIR UNIQUE IDENTITY
2

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LEADERSHIP HUMAN CAPITAL WORK TEAMS AND
STRUCTURES
VALUES AND
RITUALS
PERFORMANCE
What We Know About Culture
3
•is “how we do things around here”
•is the sum of all messages we receive from our environment
•is inherently unique and complex
•is heavily influenced by your organization’s purpose and brand
•creates expectations related to how employees interact and accomplish their work
WE KNOW THAT CULTURE:

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Why Culture Matters
4
In times of uncertainty and chaos, culture brings an organization’s brand to life. How an organization operates
and maintains culture during a challenging time will define both its current and future employment and
customer brands.
1 2 3 4
Culture attracts
world-class talent to
your organization.
It creates alignment in
how employees,
customers,
shareholders and
industry influencers
talk about the
company.
It helps to focus
engaged employees.
Culture affects
performance.

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1 CLARITY
2 CONSISTENCY
3 ALIGNMENT
4 COMMITMENT
Culture Connects to Purpose and Brand
5
EVIDENCE OF A STRONG
CULTURE:
BRAND
CULTURE
PURPOSE
IDENTITY
PURPOSE
How We Do Things
Around Here
How We Are Known
Why We Exist

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Culture Connects to Purpose and Brand
6
BRAND
CULTURE
PURPOSE
IDENTITY
PURPOSE
How We Do Things
Around Here
How We Are Known
Why We Exist
Purpose describes why we exist.
An effective purpose reflects the importance people attach to the
company’s work—it taps their idealistic motivations—and gets at the
deeper reasons for an organization’s existence beyond just making
money.
(Collins and Poras)
Missionis how we are going to achieve our purpose.
An effective mission describes what business the organization is in
(and what it isn’t) both now and projecting into the future.
Brand is the public expression of who you are to all
stakeholders.
A powerful brand identity effectively communicates your core
message through all aspects of a brand experience. Brand
campaigns come and go but your brand essence remains.
Cultureis how we are going to together to achieve our
purpose.
An effective culture defines the behaviors the organization expects
from its people and defines the accountability for unacceptable
behavior.
The Culture Lexicon

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20
19
19
26
0
5
10
15
20
25
30
I feel connected to my
organization’s culture.
My coworkers are committed to my
organization's cultural values.
My manager explains how
my organization's cultural
values influence our work.
The leaders of my
organization are committed
to our cultural values.
% Strongly agree
Two in 10 Employees Feel Connected to Their Company’s Culture
Employees are more likely to strongly agree their leaders, versus their coworkers, are committed to their company's cultural values.
WF Q1 2022, MOE ±1 point
7
Perceptions of Culture, Among Employees Overall

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The Case for Culture Transformation
8
only four in 10 strongly agree with the statement,
“The mission and purpose of my organization makes me feel my job is important.”
By moving that ratio to eight in 10 employees, business units could realize …
33%
H I G H E R Q U AL I T Y
50%
L O W E R S AF E T Y I N C I D E N T S
41%
L O W E R AB S E N T E E I S M

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23%
of employees
strongly agree that they
can apply their organization’s
values to their work.
27%
strongly agree that
they “believe in” their
organization’s values.
Most organizations don’t successfully tie their valuesto individuals’ daily work.
Our research shows that:
JUST ONLY
The Case for Culture Transformation

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WF Q1 2022, MOE ±3 points
Those who strongly agree with “I feel connected to my
organization’s culture” are:
A Connection to Culture Drives Professional and Personal Results
10
The Q
12®
item most highly
connected to
“Ifeelconnected to my
organization’sculture”:
“The mission or purpose of
my company makes me feel
my jobis important.”
3.7times as likely to be engaged at work
5.2times as likely to strongly agree they would recommend their
organization as a great place to work
37%more likely to be thriving
68%less likely to feel burned out at work always or very often
55%less likely to be actively looking or watching for another job
MISSION AND
PURPOSE MATTER

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How Does Culture Relate to Engagement?
11
ENGAGEMENT VS. CULTURE:
Engagement is the ‘Performance
Dimension’ of culture, but only a sub-set of
the overall organizational culture.
C u l t u r e
Owned By Leadership Team
Company-Wide Focus
Unifying Identity Across Organization
E n g a g e m e n t
Owned by Managers
Local Team Focus
Basic Employee Needs

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Why Culture Change Often Fails
12
B a r r i e r s a n d R i s k s t o C u l t u r e Tr a n s f o r m a t i o n
Going too fast
or too slow
Shiny object /
Flavor of the year
Lack of local-
level ownership
Underestimating
scale
Inability to break
old habits
HR vs. business
ownership
Inadequate
leadership
commitment
Lack of talent
(especially in
manager roles)
Assessment heavy as
opposed to change or
development focus
Not considering
implications for customers
Not addressing
microcultures

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Is Culture Eroding or Are Employee Expectations Changing?
•Rapid growth
•Leadership change
•Mergers and acquisitions
•Turnover
•Change in work mode
•Key programs failing to progress
•Leadership alignment behind the cultural aspects that should
be strengthened or preserved
•Inclusion of cultural tenants throughout the employee lifecycle
–onboarding, development, promotions, etc.
•Immersive experiences that communicate cultural values
•Adapting to changing realities (internal and external) by
intentionally evolving company culture with a robust culture
change strategy
13
Ingredients that can lead to
unintentional culture change:
Elements that protect against culture erosion:

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Gallup’s Culture Transformation Framework
14
(RE)DEFINE
Your Culture
Determine and clarify the
current state of how culture is
experienced at your
organization and the gap
between the current and
aspirational state.
1
ALIGN
Your Workforce
Create awareness, shared
understanding and belief among
senior leadership and the
workforce at all levels, on how to
achieve the aspirational state.
2
DRIVE
Adoption
Incorporate the defined culture
into behaviors and work practices,
and recalibrate systems, policies
and processes.
3
SUSTAIN
Your Ecosystem
Foster and enrich the culture
through ongoing monitoring,
accountability and reinforcement
mechanisms for the long term.
4

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Gallup’s Guiding Principles for Effective Culture Change
Leader Led, Gallup Enabled: We work in experiential partnership with the organization to drive ownership and collaboration.
Strengths-Based: We codify and scale the best of who an organization is rather than building to a pre-designed culture archetype.
Freedom and Focus: We strike the balance between the need for cultural cohesion and the need to foster individualization.
Continuous Care: We recognize that culture is a living, breathing ecosystem that must be continually nurtured and evolved.
15

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Introduction to Culture Audits
A SYSTEMATIC APPROACH TO UNDERSTANDING THE CURRENT STATE OF AN ORGANIZATION’S CULTURE
16

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What is a Culture Audit?
17
A Culture Audit is a systematic approach to understanding the current state of an organization’s culture and
providing a roadmap to achieve a desired future state. Gallup helps organizations leverage culture audits to
drive performance through:
•Identifying cultural attributes
•Measuring the strengthof key cultural indicators
•Assessing the organization’s ability to reinforce culture
•Ensuring that cultural attributes drive business outcomes

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Why Conduct a Culture Audit?
18
Sometimes culture problems are not initially seen as culture problems at all. They may instead seem like a
general but growing feeling of unease that “we are not who we once were.”
WARNING SIGNS OF A BROKEN CULTURE INCLUDE:
•an eroding identity in the marketplace and within the organization
•declining customer engagement feedback
•the inability to attract world-class talent
•difficulty driving organic growth based on customer-employee interactions
•leadership initiatives stalling out

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20194 in 10
20204 in 10
20214 in 10
Q1 20223 in 10
Organizations Have Long Struggled to Build Connection to Culture
Despite significant investment, efforts to improve culture have not delivered desired returns.
19
Organizations spend $2,200 annually per
employee, on average, on efforts to
improve culture. Only 30%of CHROs
report a good return on that investment.
68%of executive teams are reevaluating
their company’s culture to reflect the new
normal of virtual and hybrid work.
Both CEOs and CHROs say that
“managing and improving the culture” is
the top priority for talent management.
Source: Gartner
Copyright © 1993-1998, 2022 Gallup, Inc. All rights reserved.
The Gallup Q
12
items are Gallup proprietary information and are protected by law.
You may not administer a survey with the Q
12
items or reproduce them without written consent from Gallup.
A Low Connection Between Employees’ Job and Company
Mission/Purpose Contributes to Culture Struggles
Strongly agree: The mission or purpose of my company makes
mefeelmyjobisimportant.

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Outcomes of a Culture Audit
20
D E L I V E R A B L E S :
•Executive Presentation of Culture Audit Findings
•Leadership Team Collaborative Visioning Session and Summary Report
Leaders have a shared understanding of the
current state of organizational culture.
Leaders are aligned around Purpose, Mission and
Values statements that serve as a foundation for
future-state culture.

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Culture Audit Workflow
Building blocks for scoping and delivering a Culture Audit
21
Leadership Kick-Off
Artifact Review
Stakeholder Interviews
Focus Groups
(Optional: On-Site Observations)
Culture Survey
Presentation of Findings
Collaborative Visioning Session
Relationship and Project Management

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A Culture Transformation Strategy Overview
22
SUSTAINMENT
ROADMAP
Road-mapping Exercise
SUSTAINING
STRATEGIC ALIGNMENT
New Managers & Individuals
SUSTAINING
THE FUTURE OF WORK
Replicating Excellence
SUSTAINING
CULTURE
Agile Listening & Improvement
Phase 1: Define
Phase 2: Align
Phase 3: Adopt
Phase 4: Sustain
ADOPTION
ROADMAP
Road-mapping Exercise
LEADERSHIP
ADOPTION
Executive & Senior Leaders
FIELD
ADOPTION
All Managers & Individuals
CORPORATE
ADOPTION
All Managers & Individuals
STRATEGIC
ALIGNMENT
Create Roadmap
EXECUTIONAL
ALIGNMENT
Design Governance
BRAND
ALIGNMENT
Build Attraction Capability
COMPANY
ALIGNMENT
Roadshows and Comms
C A P T U R E
T H E V I S I O N
Q u a l i t a t i v e D i s c o v e r y
U N D E R S T A N D
T H E R E A L I T Y
R o l e E n g a g e m e n t
I N C L U D E
E V E R Y O N E ’ S V O I C E
Org-W i d e E n g a g e m e n t
EXECUTIVE
REVIEW
Workshop
Findings
New Purpose,
Values, EVP
Complete
Roadmap
Complete
Culture
Measure
Culture
Measure
Culture
Measure
EVP
Measure

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Summary –Phase 1
23
Phase 1: Define
D I S C O V E R H O W
T H I N G S W O R K
A r t i f a c t R e v i e w
C A P T U R E
T H E V I S I O N
S t a k e h o l d e r E n g a g e m e n t
U N D E R S T A N D
T H E R E A L I T Y
R o l e E n g a g e m e n t
I N C L U D E
E V E R Y O N E ’ S V O I C E
Org-W i d e E n g a g e m e n t
MONTH 1 MONTH 2 MONTH 3 MONTH 4
Scope Goal Scope Activity
Discover How Things Work
Artifact Review
-Review current purpose and values, past culture measures, PM systems, Exec Comms from past 2 years; Thematic summary of artifactreview
Capture the Vision
Stakeholder Engagement
-34 stakeholder interviews (virtual) (15 past leaders, 5 executives, 5 senior leaders, 5 customers, 4 Field managers)
Understand the Reality
Role Engagement
-15 Focus Groups (mix of virtual & in-person) (2 middle managers, 3 frontline managers, 5 field workers, 3 office workers, 2 specialty workers)
-10 Site Visits (in-person) (2 R&D sites, 4 Field)
Include Everyone’s Voice
Org-Wide Engagement
-Translating findings into questionnaire
-Organizational mapping, survey programming, survey administration
-Analyzingand developing findings and recommendations
Employee Value Proposition
-Review the entire attraction funnel for the company overall, add items to the census survey to capture critical information, conduct candidate survey,
analyzedata, and develop new EVP with training content.
Executive Alignment
Workshop Phase 1 Findings to create New Purpose and Values
-Custom designing workshop experience and create workshop visuals (e.g. gallery walk) / decision tools
-In-person facilitation of 1.5 days. Facilitating post-workshop decision process with CEO and CHRO.
Program Management and
Phase 1 Report
-Kick-off of project and ongoing project coordination
-Weekly client meetings and comms support
-Final report/presentation of findings to be used in phase 2

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Goal Activity
Strategic Alignment
Create Roadmap for New Purpose and Values
-Creating roadmap elements (making the case, readiness assessments, risk assessments, change interventions, branding exercises, comms
strategy, success measurement, etc.)
-Roadmap workshop with select team members –1-Day in-person. Facilitate final decision process
Sr. Leader Alignment
-1 Day of content to help Sr. Leaders align strategically on the new purpose and values and roadmap.
Performance Management BehaviorAlignment
-Assess and adjust the current performance management behaviors, expectations, and associated incentives to align with new purpose and values and
design content to include in trainings
Brand Alignment
Employee Value Proposition Alignment
-Develop new EVP training content and train 6 cohorts (up to 24 per cohort) of recruiters & hiring managers.
Executional Alignment
Design Governance and Develop Capability
-Custom development of governance model. Change Champion content development, and facilitation of 2-Day content for 4 cohorts Change
Champions, with 2 cohort check-ins.
-1 Cohort of Strengths Coaches
Company Alignment
Roadshows and Comms Support
-Design roadshow experience, 15 site visits for co-facilitated roadshows
Program Management
-Phase 2 kick-off and ongoing project coordination. Weekly client meetings and comms support
Summary –Phase 2
24
Phase 2: Align
EXECUTIVE
ALIGNMENT
Workshop Phase 1
STRATEGIC
ALIGNMENT
Create Roadmap
EXECUTIONAL
ALIGNMENT
Design Governance
COMPANY
ALIGNMENT
Roadshows and Comms
MONTH 5 MONTH 6 MONTH 7-8 MONTH 9-12
New Purpose
and Values
Complete
Roadmap
Complete

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Summary –Phase 3
25
Phase 3: Adopt
ADOPTION
ROADMAP
Road-mapping Exercise
LEADERSHIP
ADOPTION
Executive & Senior Leaders
FIELD
ADOPTION
All Managers & Individuals
CORPORATE
ADOPTION
All Managers & Individuals
MONTH 13 MONTH 14-16 MONTH 17-20 MONTH 21-24
Goal Activity
Adoption Roadmap Road-mapping Exercise; Create expanded project plan for phase 3 based on overall roadmap
Leadership Adoption
Executive & Senior Leaders (top 100-200 leaders)
-Executive & Sr. Leader content, leadership tools development
-Facilitation of 2 days of content on leading with purpose and values using strengths and engagement
-1:1 Leadership coaching session on each leader’s individual strengths
Field Adoption
All Field Managers & Individuals
-Content and tools development for Field Managers, Frontline Managers, & Individuals
-2-Day experience + 1:1 coaching for Field mid-level managers (or equivalent)
-3 Half-Day experiences for front-line Field managers
-Self-Paced Micro-learning and toolkit for Field individual contributors
Corporate Adoption
All Corporate Managers & Individuals
-Corporate content and tools development for Mid-Level Managers, Frontline Managers, & Individuals
-2-Day experience + 1:1 coaching for 150 Corporate mid-level managers (or equivalent)
-3 Half-Day experiences for 500 Corporate front-line managers
-Self-Paced Micro-learning and toolkit for Corporate individual contributors
Discover Your Strengths CliftonStrengthsAssessment for Employees
Culture Measure
Agile Listening & Improvement (takes place during phases 3 and 4)
-Annual Survey + analytics and presentation
-Culture data adoption strategy sessions
Program Management and Culture
Integration
-Phase 3 kick-off and ongoing project coordination
-Weekly client meetings and comms support and strengths integration with purpose and values
-Content licensing agreement

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SUSTAINMENT
ROADMAP
Road-mapping Exercise
SUSTAINING
STRATEGIC ALIGNMENT
New Managers & Individuals
SUSTAINING
THE FUTURE OF WORK
Replicating Excellence
SUSTAINING
CULTURE
Agile Listening & Improvement
Summary –Phase 4
26
Phase 4: Sustain
MONTH 24 MONTH 25-26 MONTH 27-30 MONTH 30
Goal Activity
Sustainment Roadmap
Road-mapping Exercise
-Create expanded project plan for phase 4 based on overall roadmap
Sustaining Strategic Alignment
Training New Managers
-Training 330 new managers each year (assuming 10% turnover of 3,300 managers)
-(2 sr. leaders, 2 middle managers, 11 frontline managers)
Onboarding New Managers & Individuals
-Develop content for IVECO to insert into manager and individual employee onboarding (BC and WC)
Sustaining The Future of Work
Replicating Excellence –Manager Best Practice Study
-Manager Interviews with 100 managers (60 great / 40 contrast) + Team Focus Groups + Final Report
Replicating Excellence –Observational Site Visits & Storytelling
-Conduct 25 site visits (half-day each) + storytelling tools for managers/champions, channels to gather more
Replicating Excellence –Upskilling Champions & Managers
-Content & Tool Refresh
-Train Champions on new updates and skills and Manager cohort check-ins
Sustaining Culture
Agile Listening & Improvement (takes place during phases 3 and 4)
-2 years of annual surveys, semi-annual pulses, adoption support, analytics, business impact analyses
-Culture data adoption strategy sessions for two years (each year includes session with 2 executive sessions, 10 sr. leader teams, 2 champions sessions,
13 Field leaders, and 10 corporate office leaders)
Program Management & Final
Program Report
-Phase 3 kick-off and ongoing project coordination, and weekly client meetings and comms support
-Final phase 4 report of program accomplishments, adoption rates, and recommendations going forward

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