SwitchPoints

JUDY JOHNSON, PhD, a Partner with the Continuous Learning Group (CLG), applies behavioral science to help leaders create environments that dramatically improve organizational performance and profitability. Johnson coaches executives on personal leadership and executing strategies through pinpointing key behaviors that lead to success. LES DAKENS, retired Senior Vice President of People for CN, was responsible for strategic direction of CN's Human Resources and Labour Relations in North America and worldwide. Prior to joining CN, Dakens was Vice President of Human Resources for the North American division of the H.J. Heinz Company. PETER EDWARDS, Vice President of Human Resources for CN, is responsible for human resources, culture change, implementation, leadership, and organizational development. He assisted CN's CEO in writing two landmark books for employees. EDWARD (NED) MORSE, a Senior Partner with CLG, offers three decades of experience helping Fortune 500 executives develop and implement business-critical strategies. Morse has worked with clients in transportation, petrochemicals, food service, healthcare, engineering, telecommunications, insurance, pharmaceuticals, and retail.

• List of Illustrations xviiForeword xixPreface xxiiiAcknowledgments xxvIntroduction: A Broken Culture xxixThe Culture of Early Quits xxxA New Trip Plan xxxiSwitchpoints xxxiSpiking the Switch xxxiiiPart I Building One of North America’s Top Railroads 1Chapter 1 The Road to Best-in-Class 31830: Pioneering Days 31919: Nationalization 3The 1980s: Deregulation 51992: Organizational Redesign 6A Quick Change 71995: Privatization 8The Right Leaders for the Job 91998: Precision Railroading 102003: Passing the Reins 13Chapter 2 Culture Change on the Fast Track 15Acquisitions 15Buying Other Cultures 16The Challenge 17The Results 17The Trip Plan for Culture Change on the Fast Track 18Part II Clarifying the Vision 21Chapter 3 CN’s Five Guiding Principles 23Chapter 4 The Culture of Precision Railroading 27The Organizational Culture Continuum 28The Spectrum of Employee Engagement 29The Role of Organizational Leaders 30Washing Out the Mud in the Middle 31Part III Choosing the Right Switchpoints 35Chapter 5 How to Change CN’s Culture? 37Culture Equals Behavior 37Chapter 6 Creating a Culture of Discretionary PerformanceSM 40What’s in It for the Employee? 41Chapter 7 Creating Q4 Leaders to Drive Change 43Culture Change Begins with Leadership 43The Q4 LeadershipSM Model 44How Did CN Create Q4 Leaders? 46Changing Your Style Isn’t Easy 47Building Leadership Fluency 49Part IV Selecting the Tools for Change 51Chapter 8 The Science of the ABCs 53It’s All about Behavior 53The ABCs of Behavior 54The ABCs Make Fundamental Sense 55Chapter 9 The Commanding Power of Consequences 58Timing 59Importance to Recipient 59Probability of Recurring 60Where Does the Consequence Come From? 60Which Consequences Should I Use? 62Consequences and Culture Change 63Authors’ Note: Doing the Right Thing with the ABCs 63Chapter 10 The ABC Toolkit 65The Five-Step Model 65Part V Aligning the Switches 73Chapter 11 Finding a Champion 75A Quiet Tryout in Capreol 75“I Hate Consultants!” 77Chapter 12 Testing the Business Case 81Pilot 1: Partnering in Memphis 82Pilot 2: Partnering in Capreol (Northern Ontario) 83Pilot 3: Partnering in Transcona (Winnipeg) 84Learnings from the Pilots 85We Did What We Said We Would Do 86A Skeptical Hunter Gives the Nod 87Chapter 13 Gaining Visible Sponsorship: The CEO’s Essential Role 89“How We Work and Why” 89Addressing the Naysayers 91Chapter 14 Learning from a Strike 93Spiking the Switch 94Start with the Supervisors 95Chapter 15 Planning the Trip 98Going to Rome (and Paying for It) 98Implementing the ABCs CN-Wide 99Selling the ABCs to the Operating Regions 100I Love Your Passion, But . . . 101Managing the Pull 102Deployment Wasn’t All Rosy 103Chapter 16 Making the Case for Change 105The Case for the ABCs 105Spreading the Word 107Answering Four Basic Questions 108Chapter 17 Expanding Sponsorship 110Example 1: Visiting Sites to Set the Stage 110Example 2: Sponsoring a Safety-First Culture 113Example 3: Personally Walking the Talk 117Part VI Assessing Switchpoints’ Impact 121Chapter 18 Applying the ABCs: Dressed & Ready 123Guess I’ll Have Another Coffee . . . 123Another Switchpoint 124The Science behind the Change 124Of Course There Was Resistance! 128“I Can’t Ask My Friends to Do That!” 128The Rewards of “Dressed & Ready” 130Chapter 19 Early Wins with the ABCs 131Release the Brakes! 131Culture Change in the Michigan Division 133The ABCs Improve ETAs 135Want Better Meetings? Show Up on Time! 136Small Things Matter 138Curing Technophobia 140Chapter 20 Demonstrating Q4 LeadershipSMThrough the ABCs 143“More Work? Are You Nuts?!” 143Improving Reliability: Getting KIST 145Understanding Q4 LeadershipSM—by Knowing What It Is Not 147Chapter 21 Life or Death Leadership 149A Grim Tale 149Safety and Culture Change 150Developing Safety Programs 151Zero Tolerance and Why 154Chapter 22 Sawing Our Way to Improvement 157Tackling Old Problems in New Ways 159Reducing Overtime 159“Improve” Can Even Mean Tossing Old Paper Files 162Formalizing the Opportunity 163Part VII Spiking the Switches 165Chapter 23 Leadership Competencies to Support the Change 167Accountability and Importance 168The New Competency Framework 168Leadership Equals Bonus 170The New Power of Performance Reviews 171Chapter 24 Performance Scorecards for Unionized Employees 173Doing the Unthinkable 174Executing EPS 175Communicating EPS 175Then Came the Problems 176Rollout for Success 177Supervisors: I Didn’t Know That! 178EPS Was Another Switchpoint 178Chapter 25 Learning through the Railroad MBA 180The Railroad MBA 180Railroader Undergraduate Programs 181CN Is a Destination, Not a Job 182Today North America, Tomorrow the World 183Chapter 26 Hunter Camps Develop Leaders 184Expanding the Impact 185Learning from the Master 185Twelve Characteristics of Leadership 186Leadership Is about People 187Some Campers’ Views 188Chapter 27 The Power of Consistency (17 out of 17) 191Inconsistency in the Rules 192Inconsistency in Applying Rules 193Inconsistency Breeds Opportunity 194Be Consistently Flexible 195Chapter 28 Developing Internal Consultants 197Why Internal Consultants? 197Transitioning from CLG to Internal CN Consultants 198Selecting the Right People 199Developing Internal Consultants 199Reality Hits 200The Value of Internal Consultants 202Chapter 29 Sustaining Culture Change 204Preventing Backsliding 204Techniques for Sustaining Change 207Examples of Sustainability 208Chapter 30 Sharing Our Story 209Sharing with Our Customers 210Sharing with Our Suppliers 210Sharing with Our Competitors 212Sharing with Our Communities 213Chapter 31 Improving Relations with Our Unions 216The 2007 UTU Strike 216When to Say Yes, When to Say No 218Confronting a Long Legacy 218The United Steelworkers 220Improving Labor Relations 221What CN Brings to the Bargaining Table 222The Future 223Part VIII Learning from Our Journey 225Chapter 32 Top 10 Tips for Leaders Using theABC Methodology 227Tip 1: Manage Your Culture 227Tip 2: Measure What You Value 228Tip 3: Challenge, Disagree, and Then Make the Decision 228Tip 4: Focus on Behavior You See or Hear at Work 228Tip 5: Ask “Would You, If Your Life Depended on It?” 228Tip 6: Transition from Good to Great Performers 229Tip 7: Deal Quickly with Poor Performers 229Tip 8: Get Face-to-Face 229Tip 9: Balance Your Use of Consequences 229Tip 10: Manage the Learning Curve 230Chapter 33 The Culture Change We Achieved 231Ten Lessons Learned from Our Switchpoints 231Chapter 34 The Final Word 234The Transformation 234What Lies Ahead 235Where We Are Now 236The Trip Is Not Over 237Notes 241About the Authors 243About the Companies 247Index 249