1. Booz & Company June, 2011 Creating a more innovative culture Jon Katzenbach

2. Culture matters “ Everything I do is a reinforcement, or not, of what we want to have happen culturally. … You cannot delegate culture.” Steve Ballmer, Microsoft CEO “ If you get the culture right, most of the other stuff will just take care of itself.” Tony Hsieh, Founder and CEO of Zappos.com “ Fixing the culture is the most critical – and most difficult – part of a corporate transformation.” Lou Gerstner, retired CEO of IBM “ No company can sell employees on a culture if it isn’t practiced, and believed in, from the very top down.” Colleen Barrett, former President Southwest Airlines

3. But what is this fuzzy “culture” thing, really? We Say an Organization’s Culture is … … its self-sustaining patterns of behaving, feeling, thinking, and believing

4. Decision Making Information sharing And what does an innovative culture look & feel like? Leadership Effectiveness Work Execution Relationships (In-)formal knowledge exchange Being curious Open feedback Quick, informed decisions Based on expertise Non-risk averse

5. Continuous improvement Proactive behavior Collaboration across units Interacting based on trust Market & competitor observation Accountability Encouraging experimenting Mistakes as teaching moment Decision Making Information sharing (In-)formal knowledge exchange Being curious Open feedback Quick, informed decisions Based on expertise Non-risk averse Work Execution Leadership Effectiveness Relationships And what does an innovative culture look & feel like?

6. Four imperatives when dealing with culture Work “With and Within” Your Existing Culture Use Viral Methods Mobilize Rational and Emotional Forces Start with Changing Behaviors not Mindsets 1 2 2 4 4

10. 3) Mobilize Rational and Emotional Forces Balancing Rational and Emotional Rational Emotional Communities & Networks Vision & Values Strategy Structure & Process Purpose Commitment & Pride “ Front Line” Top Leadership Culture Evolution

12. 4) Spread the behavior changes virally Multiple Mechanisms Pride Builder Cells Communities Focused Networks 4

17. Work “With and Within” Your Existing Culture Target Few Critical Behaviors Mobilize Rational and Emotional 1 2 3 Use Viral Methods Use Messaging, Programmatic, and Interactive Approaches 4 5 Five key takeaways to creating a culture that is much more innovative