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Mark Beliczky
Mark Beliczky

Accountable and high-performing leaders, teams and companies.

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Accountable & High Performing Companies & Cultures Skopje, Macedonia November 10, 2017 Mark Beliczky The Carlyle Group Washington, DC New York City 1
Accountable & High Performing Companies & Cultures Skopje, Macedonia November 10, 2017 High Commitment/High Involvement Companies & Cultures Academic Theory, Research & Implications Business journals Global management consulting firms Cutting edge books 2
Questions YOU May Wish to Consider Today What are business academics thinking and saying? What are management consultants doing? How would I rate myself and my organization with regard to high performance? WIIFM? Are there validated instruments to measure HCHIC What would Peter Drucker say? What will I do differently Monday morning? 3
Questions Your ORGANIZATION May Wish to Consider What are my team’s talents & abilities to perform? What is my organization’s ability to innovate? What is my organization’s ability to grow? What is my organization’s ability to adapt to a changing context? What is my management’s ability to unlock the organization’s potential? 4
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Academic Theory, Research & Implications Center for Evidence-Based Management Academic Journal Articles Carnegie Mellon University Pittsburgh, Pennsylvania USA High performance organizations High performance companies High performance cultures High performance executives TOTAL: 719,388 peer-reviewed articles 6
8 Companies Reveal Their Secret Sauce to a High-Performance Culture 7
Organizational design is what holds everything together Good organizational design: constructive tension, conflict, disagreement between product functions and geography Most spend too much time drawing an org chart and too little on redesigning processes and rewards 8 Designing a high performance organization Denison
Galbraith’s 5 Star Model: most widely used policies strategies processes rewards people Good org design — happens before the crisis Org design follows strategy No such thing as a perfect org design 9 Designing a high performance organization Denison CONTINUED…
Fewer than 10% of applicants receive the award Why employees become cynical about leaders and lose motivation — “talk a good talk” but do NOT “walk a good talk” 10 CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson
CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED… Key differences that drive excellence need to drive continuous evolution high focus on systems low need for sole responsibility high focus on learning from the past high focus on information low tolerance for actions that are inconsistent with the values of the organization 11
CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED… Top 2 priorities for how Baldrige winners differ: leadership and culture CEOs more likely to evolve change and drive continuous improvement What transformational leaders do: (1) create environment where org members question the org’s processes, (2) develop new ways to understand and run org 12
CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED… “While you have to put the rudder over hard, the ship doesn't turn quickly. It takes time for culture to change and you have to take the group along with you.” 13
CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED… Leaders of HPOs focus short-term wins create momentum consolidate small wins into bigger gains Leaders also sponsored breakthrough projects to achieve world-class performance “I think of continuous improvement as 3-5 % and breakthrough improvement as 20%+.” 14
CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED Strongly motivated to focus on systems and processes They are more team then self oriented would rather share than keep it themselves leading to more teamwork increased employee engagement 15
CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED CEOs demonstrated a moderate degree of humility gave credit to their teams advocate their ideas (demonstrating confidence) inquire into alternative ideas from the group (showing humility) 16
CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED Shared/collaborative approach and increased new management processes, solutions and strategies and decrease resistance to change “ The increasing complexity of products, services, and experiences has replaced the myth of the lone creative genius with the reality of the enthusiastic interdisciplinary collaborator.” As the level of collaboration increases, the level of resistance among the workforce decreases —critical to successful transformation to excellence 17
CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED Use a comprehensive scorecard: current performance levels trends over time comparisons to other high-performing organizations develop plans for improvement Many Baldrige CEOs identified accountability as key to getting people to take the necessary actions 18
CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED Baldrige leaders are rare — intolerant of behaviors that were inconsistent with the vision and values of the organization Key success driver collaboration of diverse group leaders wide variety of functional perspectives 19
High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch Southwest Airlines and Federal Express: “Our people come first, even before customers.” Southwest experience October 17, 2017: Baltimore, Maryland to Charleston, South Carolina Studies have shown higher stock price to book values market values per employee about $41,000 higher 5 year annual returns 27.5% compared to 17.3% 20
High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch CONTINUED Anderson Consulting research found that 75% of executives surveyed noted human performance more important than than productivity and technology 21
High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch CONTINUED Company’s ability to stay competitive/become more competitive is a major factor in increasing employee commitment and loyalty: Lexus MBNA Bank Chick-fil-A Leo Burnett A.G. Edwards Southwest Airlines Starbucks Coffee Enterprise Rent-A-Car Microsoft Anheuser-Bush IBM Nordstrom Federal Express 22
High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch CONTINUED Selection and training key must have the right people selection training and development ALL EMPLOYEES ARE INCLUDED IN TRAINING and demand and expect growth 23
High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch CONTINUED Managers act as teachers informally and formally performance appraisals ID areas for development challenge their people help them develop the skills needed to meet the challenges 24
High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch CONTINUED Beyond company and mission — managers set goals and performance expectations provide feedback direction hold people accountable for achieving their goals 25
High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch CONTINUED Six key action items develop clear and compelling mission and strategy select and train the right people explain the mission and strategy and give them information to understand performance requirements give them timely information and feedback so that they can do a good job embed company goals in a strong company culture reward people for doing what you want them to do 26
Role balance and team development: A study of team role characteristics underlying high and low performing teams Chong Study of high-performing work teams — analysis of 342 individuals and 33 teams Key factors in team success creativity coordination cooperation 27
Role balance and team development: A study of team role characteristics underlying high and low performing teams Chong CONTINUED… Team members reported enthusiasm in taking on management roles managed their time effectively worked well under pressure people centered emphasis on securing consensus, morale building and effective training 28
High Performance Executive Teams Taneja High performance teams develop goals and plans enhance communication among members develop and maintain positive relationships make decisions on a timely basis successfully manage conflict 29
High Performance Executive Teams Taneja CONTINUED… High performance teams facilitate productive meetings clarify roles for team members operate in a productive manner exhibit effective team leadership provide development opportunities for team members 30
High Performance Executive Teams Taneja CONTINUED Teams that demonstrate that performance excellence is their way of life are HIGH PERFORMANCE TEAMS High performance teams are a rarity — high performance culture must exist in high performance teams 31
High Performance Executive Teams Taneja CONTINUED What would Peter Drucker say… ask what needs to be done what is right for the company develop an action plan be responsible for the decisions be responsible for communicating focus on opportunities rather than problems have productive meetings focus on teamwork rather than individual effort 32
High Performance Executive Teams Taneja CONTINUED Steps in developing a high performing executive team review product and service offering, market position and competition — develop a sound strategy develop vision, mission, core values and goals consistent with strategy develop strategies that can deliver in the long run 33
High Performance Executive Teams Taneja CONTINUED Steps in developing a high performing executive team communicate strategic and tactical plans to all employees establish clear definitions of expectations and duties monitor progress 34
High Performance Executive Teams Taneja CONTINUED What HP Executive teams do develop goals and strategic plans enhance communication among team members and organization maintain positive relationships among members solve problems and prevent them when possible make decisions on a timely basis 35
High Performance Executive Teams Taneja CONTINUED What HP Executive teams do continued… successfully manage functional conflict facilitate productive meetings clarify roles for team members operate in a productive, efficient and effective manner exhibit effective and efficient team leadership provide development opportunities for team members 36
High-performance companies: the distinguishing profile Osborne CULTURE Emotion-packed vision: a simple, compelling vision for the future and which resonate with employees, easy to understand — a picture of what the company can be True-believer mentality: everyone believes in the vision of the business and that it will bring success Plain vanilla values: 3-4 values guide (and cultures of high-performing companies will NOT accommodate unfair treatment of employees) 37
High-performance companies: the distinguishing profile Osborne CONTINUED CULTURE Pride and dissatisfaction: have a commitment to learning from every mistake and success Peer respect: the urge to earn and maintain respect of one another — instinct to be the best is the greatest motivator for HPOs 38
High-performance companies: the distinguishing profile Osborne CONTINUED CULTURE Long-term relationships: HP employees believe, indeed expect that long-term relationships are the path to personal success Fun: HP workplaces are filled with fun 39
High-performance companies: the distinguishing profile Osborne CONTINUED PEOPLE Maintain a “can do” attitude —failure is unthinkable Crush the competition: obsessed with beating the competition Hang tough: emotional toughness is a badge of honor — these team members are described as invigorated by adversity 40
High-performance companies: the distinguishing profile Osborne CONTINUED PEOPLE Be the best in the business: try to recruit the best — training and development are important No excuses: no finger pointing — problems are for solving The boss is a colorful character — not necessarily universal 41
High-performance companies: the distinguishing profile Osborne CONTINUED SYSTEM Superb execution is what separates from middle of the road — A management system focused on execution at the highest order Precise expectations/measurement/frequent feedback: everyone knows exactly what is expected of them how they will be measured how they are doing Performance is King: CEOs of HP orgs anoint employees who deliver superior results as heroes 42
High-performance companies: the distinguishing profile Osborne CONTINUED SYSTEM Truth is told: important to tell the truth, deliver bad news faster and are rewarded Communication in all directions is wide open 43
High-performance companies: the distinguishing profile Osborne CONTINUED SYSTEM HP companies and sustainable success take a hard look at their cultures staffing practices management systems following the culture, people and systems model 44
Organizational culture is a key foundation for HP work practices Setting practices and values for a positive and meaningful work climate clear, compelling direction (mission, vision and strategy) embraced by all employees at all levels, employee involvement (teamwork, capability, development, and empowerment) 45 Cultural Basis of high performance organizations Gupta
Cultural Basis of high performance organizations Gupta CONTINUED HP organizations create and build human capital positive organizational climate organizational social capital 46
Cultural Basis of high performance organizations Gupta CONTINUED Strategic diversity programs have evolved and have deepened workplace democratization diversity initiatives bring entrepreneurial creativity SUSTAINED high levels of value addition 47
High Commitment, High Performance Management Beer Long periods of excellence Southwest Johnson& Johnson Hewlett Packard Nucor Steel McKinsey Goldman Sachs Toyota GE Becton Dickinson Campbell Soup IBM ASDA (UK Grocery) 48
High Commitment, High Performance Management Beer CONTINUED What HCHP leaders do: performance alignment: organizational design business processes goals measures capabilities 49
High Commitment, High Performance Management Beer CONTINUED What HCHP leaders do psychological alignment provides employees with a sense of higher purpose challenging work capacity to make a difference capacity of learning and change have “learning governance systems” means of having honest, collective and public conversations 50
High Commitment, High Performance Management Beer CONTINUED Six barriers unclear strategy, priorities and values too top down (failure to engage people that allows for open and honest problem- solving and dialogue) ineffective leadership team (does not work as a unit fails to spend enough time on strategic, organizational and people issues) 51
High Commitment, High Performance Management Beer CONTINUED Six barriers poor coordination and collaboration inadequate leadership development closed vertical communication — lower levels have NOT been communicated with about values, strategy and priorities 52
High Commitment, High Performance Management Beer CONTINUED HCHP leadership vision and values empowerment collaboration maintaining firm identity learning humility non-heroic approach to the job Leaders must be able to confront conflict 53
Linking knowledge processes with firm performance: organizational culture Nold Trust in management and among individuals essential element of organizational culture required for individuals to interact/share knowledge Power of organizational culture impact of strategic deployment knowledge management initiative 54
Linking knowledge processes with firm performance: organizational culture Nold CONTINUED link between “knowledge management” and firm performance researchers of the “missing link” need for an instrument that collects “perceived cultural attributes” enables the knowledge process to translate into superior performance 55
Linking knowledge processes with firm performance: organizational culture Nold CONTINUED Knowledge Management System (“KMS”) — acquiring, sharing, leveraging, and using information to gain competitive edge 80% of company knowledge is Tacit Knowledge: mental models, experience, and habits of individuals and groups 56
Linking knowledge processes with firm performance: organizational culture Nold CONTINUED organizational cultures exist: “pattern of basic beliefs and assumptions learned and shared by a group that is taught to new members as the accepted way to perceive, think, and feel when interacting with other members of the group…” Schein (2001) 57
Linking knowledge processes with firm performance: organizational culture Nold CONTINUED companies with high levels of trust, pride, and camaraderie may be more effective in knowledge processing converting knowledge into action contribute to improved operating results 58
Linking knowledge processes with firm performance: organizational culture Nold CONTINUED effective knowledge processes may unlock barriers to the organization’s tacit knowledge base 80 percent of the total knowledge within the organization 59
Linking knowledge processes with firm performance: organizational culture Nold CONTINUED Great Places to Work (“GPTW”) list of 100 best firms in America — superior average annual growth rates compared to firms not on the list generating superior financial results leaders successfully cultivate a culture of trust pride camaraderie 60
Linking knowledge processes with firm performance: organizational culture Nold CONTINUED Effective knowledge processes ultimately contribute to creating valuable intangible assets intellectual capital for the organization generates value, operating performance, and growth 61
Make your company high commitment, high performance… Dr. Michael Beer 62
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Business Journals What high performers want at work Harvard Business Review Joint SAP/Oxford Economics study across 27 countries and 2,872 employees: 40% HP, 40% avg. and 20% below average high performers more satisfied with jobs and less likely to leave in next 6 months 20% of HP employees are likely to leave in 6 months compared to 25% for all employees and less than half of HP employees are satisfied with their jobs 64
What high performers want at work Harvard Business Review CONTINUED Top 5 areas valued by employees competitive compensation bonus and merit-based rewards retirement plans supplemental training programs flexible work location 65
What high performers want at work Harvard Business Review CONTINUED Pay significantly more variation in bonus pay for top 5% of performers KPMG — found 73% of top performing companies placed no cap on bonus for best performers. 81% of low performing companies placed a cap on bonus 66
What high performers want at work Harvard Business Review CONTINUED 50% of HP employees expect at least a monthly sit down with their managers — only 53% state that their managers deliver on their feedback expectations 67
What high performers want at work Harvard Business Review CONTINUED HPers showed strong tendency to direct their own learning Professional development is a high priority in N. America 66% of HPers reported that their supervisors did NOT support them for formal training 68
Toward a theory of high performance Harvard Business Review Search of 83 years of HBR Top Performing Companies did not occur until 1980 (Tom Peters In Search of Excellence) and a publishing sensation for the first 1,000 or so years of business history nothing material written on HPC 69
Toward a theory of high performance Harvard Business Review 10 leading Scholars discover keys to High Performance Peters/Waterman Kotter/Heskett Collins/Porras Jain Katzenbach Foster/Kaplan Weick/Sutcliffe Zook/Allen Joyce/Nohria/Robertson Breene/Nunes 70
Toward a theory of high performance Harvard Business Review CONTINUED Key questions — what to study or what the scorecard looks like individual team business unit corporation 71
Toward a theory of high performance Harvard Business Review CONTINUED “Who stands the tallest” is NOT straightforward links between strength of org culture and economic success (annual growth of net income, avg. return on invested capital, and stock price appreciation) Kotter/ Haskett growth in revenues and profits — Chris Took, Bain 72
Toward a theory of high performance Harvard Business Review CONTINUED Turns out — In Search of Excellence — no real predictive models of HPO used — went around and asked “who was cool and who was doing cool work” generated list of 62 companies and eventually cut to 43 Jim Collins “winner circle” — “Good to Great” used cumulative investor returns relative to the stock market 73
Toward a theory of high performance Harvard Business Review CONTINUED Metrics still a matter of debate, but consensus is forming that a ten year view might be right John Katzenbach’s 5 paths mission, vision, values, and pride process and metrics entrepreneurial spirit individual achievement recognition/celebration 74
Toward a theory of high performance Harvard Business Review CONTINUED Foster/Kaplan — transforming companies periodically rather than steady, incremental improvement Weick/Sutcliffe — creating a state of mindfulness (state of active, open attention on the present) Joyce/Nohria/Robertson: “ We have reached a critical point in the evolution of a theory of high performance — the point where management researchers have begun to build effectively on one another’s work.” 75
Use this secret weapon: High performing work groups Consulting to Management Hudson Highland Center for High Performance (“Chip”): surveyed 3,000 knowledge workers in US, Europe, Japan, Australia, Beijing, Shanghai about work groups Critically important characteristics of high-performing workgroups value people optimize critical thinking seize opportunities 76
Reinventing Performance Management Harvard Business Review Deloitte performance management system 58% of executives believe that their current performance management approach does NOT drive employee engagement or high performance 77
Reinventing Performance Management Harvard Business Review CONTINUED New Deloitte system eliminates cascading objectives once-a-year reviews 360 feedback New system speed agility one-size-fits-one constant learning & collecting reliable performance data 78
Reinventing Performance Management Harvard Business Review CONTINUED old ratings” system consumed 2Mil hours/ year, and assessing someone’s skills produced inconsistent data 79
Reinventing Performance Management Harvard Business Review CONTINUED Best teams are strength-oriented — “At work , I have the opportunity to do what I do best every day.” — for those that chose “strongly agree” were 44% more likely to earn high customer satisfaction scores 50% more likely to have low turnover 38% more likely to be more productive 80
Reinventing Performance Management Harvard Business Review CONTINUED new performance management redesign recognize performance, particularly through variable compensation able to see each person’s performance clearly fueled performance 81
Reinventing Performance Management Harvard Business Review CONTINUED What employees want of organization know us we want to know ourselves at work — can’t really be done with a single number (rating) Now have technology to go from a small data version of people to a big data version 82
This is the secret sauce for a high productive company Fast Company Apple, Netflix, Google, Dell are 40% more productive than other companies inspiring leaders trust teamwork 83
This is the secret sauce for a high productive company Fast Company CONTINUED Research from Bain and Co dispels myth — HPC do well simply because they attract employees that are “naturally gifted at productivity” Research by Michael Mankins of Bain — productive companies have about the same percentage of star players as less productive competitors 84
This is the secret sauce for a high productive company Fast Company CONTINUED Leading companies more strategic about where they place those employees in “business critical” positions and of high value for the company goals value teamwork and smart about projects in need of an all-star team to succeed inspired workers energized by a fantastic leader are 125% more productive than satisfied workers inspirational leadership can be taught 85
How to create a high performance culture Andrew Sillitoe 86
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Global Management Consulting Firms Decoding High Performance McKinsey & Company The McKinsey persona be selfless be prepared to sacrifice money and personal glory for the sake of building a stronger firm never take public credit always be confident and discreet 88
Decoding High Performance McKinsey & Company CONTINUED “As I drove into the parking garage, I still had that rush of excitement. I found myself walking faster than usual from the parking garage into the office building. As I climbed the stairs all I could think about was getting to my desk and jumping into the work I left the night before.” 89
Decoding High Performance McKinsey & Company CONTINUED 2 years later… transformed the way he thought about organizations and high performance altered expectations about himself made him realize that people are capable of more than they believe 90
Decoding High Performance McKinsey & Company CONTINUED McKinsey high performance model top talent values-driven culture, powerful stories, and respect for people continuous improvement 91
Decoding High Performance McKinsey & Company CONTINUED “BS” Proof Values-Driven Culture reinforced by powerful stories (stories that reinforce the values and create context for how to operate within the culture) respect for people (open and candid feedback) autonomy and a “caring meritocracy” 92
Decoding High Performance McKinsey & Company CONTINUED Continuous improvement getting the right people wired for continuous improvement cultivating institutional humility opportunity to tweak or radically disrupt the culture AND the business model 93
Decoding High Performance McKinsey & Company CONTINUED Top talent development: over-invest in training and development — a high performance culture of learning, development and coaching supportive culture: obsession with creating/ maintaining a culture that supports the people that perform — “create and unrivaled environment for exceptional people” firing people: not keeping people that slow them down — ALL exiting employees are seen as valuable alums and members of the “family” 94
Decoding High Performance McKinsey & Company CONTINUED Values-driven culture regularly hear over and over about values once a year “values day” — spending a full day talking about the values and re-engaging The values-based culture works powerful stories underlying respect for people speak of values and stories — here is how we do it here and this is why 95
Decoding High Performance McKinsey & Company CONTINUED Respect for people — core elements: start with self reflection — do you want their help or are you just annoyed by their behavior build a foundation of respect — show someone you care then help them improve 96
Decoding High Performance McKinsey & Company CONTINUED Respect for people — core elements timely feedback — deliver feedback close to event as possible be specific — use actual examples of what you observed offer to help — offer actionable next step and personally be part of that growth 97
Decoding High Performance McKinsey & Company CONTINUED “Convinced that behavior and conduct are every bit as important as skills and expertise…I sought to build the firm into an enduring, values-based institution.” Marvin Bower Marvin Bower’s secret of business: “Business Models change, industries appear and disappear — but values are forever…” 98
High-performing teams: A timeless leadership role McKinsey Team composition kept small—not too small (7-10) structure of organization should NOT dictate the team’s membership consider what complementary skills and attitudes each team member brings 99
High-performing teams: A timeless leadership role McKinsey CONTINUED Team dynamics: (difference between a team of all stars and an all-star team) — asked 5,000 executives to think about their “peak experience” as a team member and resulted in 3 key dimensions of great teamwork alignment and direction — shared belief about what company is striving toward and role of team getting there 100
High-performing teams: A timeless leadership role McKinsey CONTINUED Team dynamics: (difference between a team of all stars and an all-star team) — asked 5,000 executives to think about their “peak experience” as a team member and resulted in 3 key dimensions of great teamwork… high quality interaction —characterized by true, open communication and willingness to embrace conflict strong sense of renewal —environment in which team members are energized because they feel they can take risks, innovate, learn form outside ideas and achieve something that matters and often against the odds 101
High-performing teams: A timeless leadership role McKinsey CONTINUED Getting started with a team assess on the three dimensions (surveys and interviews) offsite workshop and on-the-job practice effective team meetings —should address only those topics that need the team's collective expertise 102
High-performing teams: A timeless leadership role McKinsey CONTINUED Getting started with a team reflective sessions — did the team members feel aligned on what they are trying to achieve? do they feel excited about the conclusions reached? did they feel they brought out the best in everyone? trust deepens regardless of the answers? 103
High-performing teams: A timeless leadership role McKinsey CONTINUED Getting started with a team high performing teams can be built in one year even starting from a low base executives are 5x more productive when working in a HP team than an average one 104
The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup Study of 3,477 managers from oil, gas, banking and finance, property development, tourism, automotive, and telecom sectors from the Gulf Cooperation Council (6 Middle East Countries) — also analyzed data from 30,000 employees 105
The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Best managers set clear expectations define employee roles create trusting environments encourage employee growth and development continuously raise the bar — encouraging higher performance 106
The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Effective performance management process merit-based system differentiating high/ low performers clearly defined standards and expectations at individual, team, dept and org levels develop transparent rewards system articulate, shared goals/objectives 107
The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Create empowerment and authority recognize and respond to changing info from marketplace develop innovative ideas connect with customers 108
The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Increase leadership capability at all levels of company inspiring employees with consistent and regular communication connecting today’s work initiatives and changes with where business is headed providing messaging supporting company mission inspiring trust and respect involving employees in developing strategy 109
The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Develop a customer-centric strategy — employee understanding of individual and collective responsibilities in meeting customer needs and expectations 110
The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Increase communication and collaboration selecting leaders and managers who have potential to be top performers ensuring leaders and managers understand their role in the communication process scheduling regular one-on-one conversations using collaborative approach creating strong levels of trust 111
The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Enhance training and development Key differentiator in most engaged companies heightened intent to change the commitment to change has enhanced their brand with employees and customers 112
High-Performance Organizations: The secrets of their success Boston Consulting Group Broad dimensions that lead to sustained performance leadership: aligned and effective deep in the organization design: structure that reflects org’s strategic focus with clear roles/ responsibilities 113
High-Performance Organizations: The secrets of their success Boston Consulting Group CONTINUED Broad dimensions that lead to sustained performance people: translates business strategy into a people strategy — attracting, retaining most capable change management: ability to drive and sustain large-scale change culture and engagement: a culture shaped to achieve strategic goals — motivated employees go beyond in pursuit of co objectives 114
High-Performance Organizations: The secrets of their success Boston Consulting Group CONTINUED Leadership high performance teams of leaders drive urgency and direction pipeline is stocked with future leaders — skills matched to future needs middle managers embrace and translate strategy 115
High-Performance Organizations: The secrets of their success Boston Consulting Group CONTINUED Design structure and resource allocation reflect strategic tradeoffs few layers separate the CEO and the frontline, and spans of control are wide accountabilities, decision rights collaboration constructed with thoughtful consideration individual capabilities matched to role requirements 116
High-Performance Organizations: The secrets of their success Boston Consulting Group CONTINUED People employer brand is a core asset —brand or employee value proposition critical roles and key talents clearly identified and treated with care HR is a strategic partner and enabler of the business 117
High-Performance Organizations: The secrets of their success Boston Consulting Group CONTINUED Change management change is a disciplined cascade —ensure leadership group is aligned on goals and means of change organization is evolutionary —HPOs are adaptive and continually detecting market changes and making strategic adjustments 118
High-Performance Organizations: The secrets of their success Boston Consulting Group CONTINUED Culture and engagement culture accelerates strategic objectives engagement measured and cultivated to generate discretionary effort from employees 119
Performance Culture Bain and Company Performance culture is the heart of competitive advantage High performers create an environment with a unique personality and soul and passion for performance A true HP culture provides company with its single greatest source of competitive advantage 120
Performance Culture Bain and Company CONTINUED Culture inspires people to go the extra mile, to make and execute good decisions FEWER THAN 10% OF COMPANIES ACTUALLY SUCCEED IN BUILDING A WINNING CULTURE — AND EVEN ONES THAT ARE SUCCESSFUL FIND IT HARD TO MAINTAIN 121
Performance Culture Bain and Company CONTINUED Two central characteristics of HP cultures Each culture is unique organizational personality/soul derived from deep heritage create their own, distinctive environment potent combination of values, character, rituals and beliefs creates a deep bond with employees 122
Performance Culture Bain and Company CONTINUED Two central characteristics of HP cultures All foster a similar set of behaviors: care passionately about winning orient themselves outward — focused on customers and competitors build teamwork open to change 123
Performance Culture Bain and Company CONTINUED Leadership is key cultural change happens when leaders model behaviors and values that define the new culture spread the word through constant personal contact and communication 124
Performance Culture Bain and Company CONTINUED Leadership is Key recognize linchpin employees who buy into the the culture and whose words carry weight with others make the needed changes to support the new culture altering incentives redistributing decision rights streamlining processes rigorously track progress to ensure the performance stays high 125
Building Your Own High Performance Organization Bain and Company Michael Mankins and Dan Schwartz Survey of 665 companies world-wide organizational outcomes key to high performing organizations aligned with company strategy capable of executing strategy with right talent, processes and tools effective at making and executing critical decisions adaptable in the face of rapid change efficient in dealing the benefits of scale and scope engaged to go the extra mile 126
Building Your Own High Performance Organization Bain and Company Michael Mankins and Dan Schwartz CONTINUED A company that performs in the top 20% is 5x more likely to be a business performance leader as compared to zero outcomes Great strategy is important — real success comes with execution — Ford Motor Company turnaround started in 2006 strategic plan to divest non-core brands like Aston Martin, Jaguar, Volvo and Mercury reduced vehicle platforms from 40 to 10 returned to profitability even after the financial crisis of 127
Building Your Own High Performance Organization Bain and Company Michael Mankins and Dan Schwartz CONTINUED Key questions for executives to address how do we close any gaps in our foundation? how can we eliminate our liabilities? “Systematically changing an organization requires ruthless prioritization.” 128
What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group Four key factors defining high performance leading enabling delivering 129
What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED Important indicators clarity around performance that is expected performance that emphasizes quantity and quality in delivery who is responsible for delivering constructive challenge that creates pressure to perform and people can thrive 130
What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED Important indicators high levels of support high levels of awareness high performance beliefs attitudes and behaviors of all members of the organization 131
What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED Performance levels — key is balancing… vision achievement of metrics/targets/goals as well as quality of delivery innovation (external focus) adaptability (internal focus) — organization’s process flows well-being: caring for its performers — values 132
What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED Leadership responsibility leaders thrive on pressure, and able to frame and respond to the challenge in a positive way focus on providing an environment in which performers can thrive — enabling real performers to deliver embrace and foster internal leadership capability at all levels of the organization 133
What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED Enable people to perform provide the right tools and equipment to maximize efficiency and effectiveness right information in the form of goals and feedback incentivized to perform 134
What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED What HPE performers possess: capacity: job-related skills and knowledge, skills to enable them to thrive under pressure, mental toughness, emotional intelligence beliefs and attitudes high levels of commitment to the organization beliefs and values closely aligned with those of the organization 135
What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED What HPE performers possess behaviors ownership responsibility teamwork voluntarily assume extra-role contributions support fellow performers “HPEs are easy to write about, but not so easy to create.” 136
The 5 success factors of a High Performance Organization (HPO) 137
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Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price Feedback from Gary Hamel: “World’s most influential business thinker” WSJ Survey of hundreds of thousands of executives who reported how they worked — developed over 10 years — unprecedented in scope and revolutionary in conclusions Sifted through more than 900 books and articles Changing things at scale is never easy — complex, perilous, and gut-wrenching 139 Cutting Edge, Game-Changing Books
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Feedback from Gary Hamel: “World’s most influential business thinker” WSJ No silver bullets in this book — you find ways to deal directly and creatively with challenges of overcoming status quo and embracing change Management Innovation eXchange (www.management exchange.com) — MIX is world’s first open-innovation platform — offering fresh approaches to management — a “MIX Community” At the heart of every successful transformation lies a stretching and soul-stirring sense of purpose 140
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Explains conceptually and practically what it means to achieve excellence in leading and managing organizations Central message: focusing on organizational health: the ability of your organization to align, execute and renew itself faster than your competitors can — just as important as focusing on drivers of performance 141
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED “Healthy organizations get things done quicker, better, and with more impact than unhealthy ones.” Sir William Castell, Chairman of the Wellcome Trust 142
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED What you learn in the book how to set aspirations for performance and health unique to your organization learn how to assess how ready your organization is to change 143
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED What you learn in the book learn how to develop a powerful plan to move organization to where you want to to be master what it takes to implement the plan successfully discover how to help your organization make a gradual transition to a self- sustaining state of continuous improvement in performance and health 144
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED “A field guide to harnessing the full potential of your organization.” charting your own recipe for excellence 145
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Charting your own recipe for excellence history capabilities passions of its people external environment aspirations 146
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED 21st century competitive advantage: increasingly derived by hard-to-copy intangible assets like company culture and leadership effectiveness “…the fittest win out at the expense of their rivals because they succeed in adapting themselves best in their environment.” 147
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Success is not only winning in the marketplace but also winning and retaining talented employees Survey of 5,000 executives from top 200 of their respected companies and asked what employees expect of their companies when deciding to join, stay or leave freedom and autonomy exciting challenges 148
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED “Talented people don’t come here just to perform tasks. They want to offer their ideas, discuss freely, grow professionally, and contribute to the future of the company.” Roberto Setubal, CEO of Brazil’s Itau Unibanco US job satisfaction 1987 — 61% satisfied, 2000 — 51%, and 2009 — 45% and holds true for all ages and all incomes 149
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED US employee productivity also on decline — between ’95-09 output increased more slowly than any 15 year period since 1950 Early publications written on HPO/excellence (in Search of Excellence or Built to Last) companies provided no guarantee of staying power by 2006 20% of companies no longer existed 46% were struggling only 33% remained high-performers 150
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED John Kotter — Leading Change — “ONLY 33 % of all change programs succeed” review of 25,000 books on organizational change and hundreds of business cases still only 33% of change programs succeed Only 33% of excellent companies remain excellent over the long term 151
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Beyond Performance uses a fact-based technical approach more than 600,000 respondents, more than 500 organizations across the globe survey on the experience of transformational change —more than 6,800 CEOs and senior executives more than 900 books and articles from academic journals 152
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Beyond Performance uses a fact-based technical approach one-on-one interviews with 30 CEOs and sr. executives learning from more than 100 McKinsey clients on engagements specifically related to performance and health worked with four eminent business scholars 153
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Key Findings those who focused on performance and health 2x more successful as those who focused on health 3x more successful than those focused solely on performance 154
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Key Findings companies in top 25% of org health are 2.2x more likely than lower rated to have above-median EBITDA 2x more likely to have above median growth in enterprise value to book value 155
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Key Findings 1.5x more likely to have above median growth in net income to sales 50% of the performance variance between companies is accounted for by the differences in organizational health 156
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Key Findings at least 50% of your organization’s success in the long term driven by health and something that can be controlled transformations that ignore HEALTH and focus only on performance are 1.5x more likely to fail in the long run 157
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Performance: what an enterprise delivers to its stakeholders in financial and operational terms (e.g. net operating profit, return on capital employed, total returns to shareholders, net operating costs, stock turn) Health: ability of an organization to align, execute, and renew itself faster than competition so that it can sustain exceptional performance over time Achieving sustainable excellence: must manage BOTH performance and health 158
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED “The soft stuff —people’s beliefs and behaviors — is at least as important as the hard stuff. Making changes in strategy or structure by itself takes a company only so far.” Larry Bossidy, former Chairman and CEO of Honeywell and Allied Signal 159
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Organizational health: extent to which your organization able to adapt to the present and shape the future faster and better than your competitors health encompasses all the human elements required to achieve sustainable success 160
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Coca Cola 161
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Atari — A Study in Contrast 162
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Pixar 163
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: General Motors 164
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: IBM 165
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Enron — A Study In Contrast 166
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Lehman Brothers — A Study In Contrast 167
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Sport teams that take steps to improve team performance and health create a virtuous cycle of sustained excellence over time World Class Athletes monitor their body fat correct diet fitness regime lifestyle curb habits smoking, drinking and staying up late at night 168
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED The Sports Analogy Monitor leading health indicators blood pressure cholesterol heart rate Financial markets DO recognize that health is essential for turning a company’s growth prospects, capabilities, relationships and assets into future cash flows 169
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Beyond Performance: Process for Achieving organizational excellence: the 5As Aspire: where do we want to go Assess: how ready are we to go there Architect: what do we need to do to get there Act: how do we mange the journey Advance: how do we keep moving forward 170
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Performance Aspire: how to develop a change vision and targets — strategic objectives Assess: how to ID and diagnose an organization’s ability to achieve it’s vision and targets — the capability platform 171
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Performance Architect: how to develop a concrete, balanced set of initiatives to improve performance — the portfolio of initiatives Act: how to determine and execute the right scaling-up approach for each initiative in the portfolio — the delivery method Advance: how to make transition from a one- time change to ongoing improvements 172
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Health Aspire: how to determine what “healthy” looks like for your organization — the health essentials Assess: how to uncover the root-cause mindsets that drive organizational health — the discovery process 173
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Health Architect: how to reshape work environment to healthy mindsets — influence model Act: how to ensure that energy for change is continually infused and unleashed — the change engine Advance: how to lead transformation and sustain high performance from a core of self-mastery — centered leadership 174
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED McKinsey’s research of 2,000 executives most companies already know how to keep a close eye on performance it is organizational health that often suffers When these executives were asked where they wished they had more information — more than 65% chose “determining what needs to be done to strengthen the company’s health for the long term.” 175
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Why do change programs fail more than 70% of failures driven by poor organizational health negative employee attitudes or employees resistance to change unproductive management behaviors or management behavior does not support change “The soft stuff is always harder than the hard stuff.” Roger Enrico, CEO PepsiCo 176
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Determinants of long-term success for McKinsey research internal alignment on direction compelling vision well articulated strategy — meaningful to individual employees supported by culture and climate of the organization 177
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Determinants of long-term success for McKinsey research a high quality execution right capabilities effective management processes high motivation 178
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Capacity for renewal — organization’s ability to understand interact shape adapt 179
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Procter and Gamble 180
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Telefonica - Spain 181
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Transformations are 2.6x more likely to succeed if they have strong involvement from the top of the organization 182
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Leadership role making the transformation meaningful — how senior leaders make it personal, openly engage others spotlight successes as they occur 183
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Leadership role role modeling desired mindsets and behaviors — leaders show what new behavior looks like encourage employees to adopt it in their own daily work 184
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Leadership role building a strong and committed top team — senior leaders making the tough decisions about capability and motivation to make the journey relentlessly pursuing impact — senior leaders rolling up their sleeves and getting personally involved 185
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Indra Nooyi ,CEO PepsiCo: “I had the immigrant feeling arriving in the US… I had to do an extra good job; if it didn’t work out, where was I going to go?” Andy Grove former CEO of Intel — conveys importance of courage and decisiveness by describing his escape from Hungary and determination to make a new life 186
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED John Chambers CEO of Cisco describes growing up with a learning disability to illustrate “how we can overcome anything that comes our way, and why it is so important to treat others as you would want to be treated.” David Novak , CEO of YUM Brands — “They see their CEO and it makes a big company small…(and when they get knowledge directly from their senior leader) they “care more about the company and (they are) more committed.” “Do or do not. There is no ‘try’.” Star Wars Jedi Master Yoda 187
Exhibit 1.1 Healthy Companies Are More Profitable EBITDA margin Growth in enterprise value/ book value Growth in net income/sales * Comprised of 2nd and 3rd quartiles Likelihood that companies with strong health profile have above-median financial performance, % 68 48 31 62 52 31 58 53 38 Top Mid* Bottom ×2.0 ×2.2 ×1.5 188
Exhibit 3.1 Assessing Organizational Health Ailing Able Direction Creates a strategy that fails to resolve the tough issues Crafts and communicates a compelling strategy, reinforced by systems and processes… …and provides purpose, engaging people around the vision Culture and climate Lacks a coherent sense of shared values Creates a baseline of trust within and across organizational units… …and creates a strong, adaptable organization- wide performance culture Accountability Creates excessive complexity and ambiguous roles Creates clear roles and responsibilities; links performance and consequences… …and encourages an ownership mindset at all levels Coordination and control Establishes conflicting and unclear control systems and processes Aligns goals, targets, and metrics managed through efficient and effective processes… …and measures and captures the value from working collaboratively across organizational boundaries Capabilities Fails to manage talent pipeline or deal with poor performers Builds institutional skills required to execute strategy… …and builds distinctive capabilities that create long-term competitive advantage Motivation Accepts low engagement as the norm Motivates through incentives, opportunities, and values… …and taps into employees’sense of meaning and identity to harness extraordinary effort External orientation Directs the energy of the organization inwards Makes creating value for customers the primary objective… …and focuses on creating value for all stakeholders Innovation and learning Lacks structured approaches to harness employees’ ideas Able to capture ideas and convert them into value incrementally and through special initiatives… …and able to leverage internal and external networks to maintain a leadership position Elite Leadership Provides excessively detailed instructions and monitoring (high control) Shows care towards subordinates and sensitivity to their needs (high support)… …and sets stretch goals and inspires employees to work at their full potential (high challenge) 189
Exhibit 1.3 The Five Frames of Performance and Health Performance Health Assess How ready are we to go there? Aspire Where do we want to go? Architect What do we need to do to get there? Act How do we manage the journey? Advance How do we keep moving forward? TRANSFORMATION STAGES Delivery model Change engine Centered leadership Continuous improvement Health essentials Strategic objectives Capability platform Discovery process Portfolio of initiatives Influence model 190
Exhibit 2.3 The Practices Underpinning Organizational Health Practice n o i t p i r c s e D n o i s n e m i D Direction Culture and climate Leadership leadership Authoritative Emphasizing hierarchy and managerial pressure to get things done Consultative leadership Involving and empowering employees through communication, consultation, and delegation Supportive leadership Building a positive environment characterized by team harmony, support, and care for employees’welfare Challenging leadership Encouraging employees to take on tough challenges and do more than they thought possible Encouraging honesty, transparency, and open dialogue Open and trusting Internally competitive Emphasizing results and achievement, with a healthy sense of internal competition to drive performance Operationally disciplined Fostering clear behavioral and performance standards, with close monitoring of adherence to those standards Creative and entrepreneurial Supporting innovation, creativity, and initiative taking Setting the direction by creating and communicating a Shared vision compelling, vivid image of what the future will look like Articulating a clear direction and strategy for winning, Strategic clarity and translating it into specific goals and targets Employee involvement Engaging employees in dialogue on the direction of the organization and discussing their part in making it happen Performance contracts Accountability driven by clear objectives and formal, explicit performance targets Consequence management Accountability driven by linking rewards and consequences to individual performance Personal ownership Accountability driven by a strong sense of individual ownership and personal responsibility Coordination and control People performance review Using formal performance assessments, feedback, and tracking to coordinate and control flows of talent Operational management Focusing on operational KPIs, metrics, and targets to monitor and manage business performance Financial management Focusing on financial KPIs and the effective allocation and control of financial resources to monitor and manage performance Professional standards Using clear standards, policies, and rules to set behavioral expectations and enforce compliance Risk management Identifying and mitigating anticipated risks, and responding rapidly to unexpected problems as they arise 4 5 6 7 8 9 10 11 1 2 3 13 14 15 16 17 18 19 20 responsibilities 12 Accountability Accountability driven by clear structure, roles, and Role clarity 191
McKinsey on Performance and Health The four archetypes and the practices that drive them Exhibit 3.4 Exhibit 3.4 The Four Archetypes and the Practices that Drive Them Top ten management practices for each archetype Leadership driven Execution edge Market focus Knowledge core 1 Career opportunities Business partnerships Knowledge sharing Talent acquisition 2 Open and trusting Creative and entrepreneurial Customer focus Role clarity 3 Performance contracts Employee involvement Competitive insights Consequence management 4 Inspirational leaders Talent development Government and community relations Rewards and incentives 5 Strategic clarity Internally competitive Financial management Personal ownership 6 People performance review Personal ownership Capturing external ideas People performance review 7 Operational management Bottom-up innovation Process-based capabilities Career opportunities 8 Operationally disciplined Top-down innovation Shared vision Performance contracts 9 Consultative leadership Meaningful values Outsourced expertise Professional standards 10 Consequence management Consequence management Strategic clarity Financial management 192
Exhibit 4.5 Focusing on a Few Critical Shifts From transactional… …to relational From silos… …to collaboration “I am responsible for quickly and efficiently meeting the needs my clients express.” “Probing my clients about their financial situation would be prying into their private affairs.” “Account opening is a chore to be done by junior sales staff.” “I am responsible for bringing the best of my company to clients and addressing their needs whether articulated or not.” “I need to understand my clients’ full situation before I can give them the best advice.” “Account opening is potentially the most important client interaction of all.” “My success depends on optimizing my area.” “I know what’s right for my area and no one else can achieve what I can.” “I view other areas as a hindrance— they are incompetent and selfish.” “My success depends on optimizing my company’s results.” “I can learn from others and there is great value in ‘mining the seams’ together.” “There is no ‘they’—I assume that other people are competent and show goodwill.” From blame… …to accountability “The problems we face are beyond my control.” “There is a lack of clarity regarding accountabilities around here.” “I show up at every meeting so I can watch my back.” “If I’m not part of the solution, I’m part of the problem.” “I seek to clarify my and others’ account- abilities if they are unclear.” “I trust others to do what they are supposed to do in a fair manner.” 193
Exhibit 6.4 The Three-Level Change Structure Example: energy company To become a highly competitive integrated company, recognized as one ofthe top five energy producers worldwide and as the employer ofchoice in our industry Performance themes Corporate citizenship Collaboration People systems De-bureaucratizing Performance themes Talent review overhaul Cross- business councils Health themes Health themes Vendor consolidation Pricing Learning Level 1 : Transformation headline Level 2 : Performance and health themes Level 3 : Specific initiatives Expanding production Integrating the value chain Maximizing downstream Improving efficiency and safety 194
Exhibit 4.2 The Discovery Process Where are we, and what do we want to achieve? What changes in practices do we need to achieve the desired outcomes? What changes in mindsets do we need to make in order to achieve sustainable changes in behaviors? What changes in behavior do we need to breathe life into desired practices? Outcomes (e.g., accountability) Desired state Practices (e.g., clear performance contracts) Behaviors (e.g., ongoing performance dialogue) Mindsets (e.g., “If it is to be, it’s up to me”) Mindsets (e.g., “Keep my head down, watch my back”) Behaviors (e.g., minimal performance dialogue) Current state Practices (e.g., no clear performance contracts) Outcomes (e.g., blame) 195
Exhibit 1.4 Barriers to Organizational Change 70% Factors contributing to failure Health- related factors Source: Michael Beer and Nitin Nohria, editors, Breaking the Code of Change, Harvard Business School Press, 2000; Kim S. Cameron and Robert E. Quinn, Diagnosing and Changing Organizational Culture: Based on the competing values framework, Addison-Wesley, 1999; Bruce Caldwell, “Missteps, miscues: Business re-engineering failures have cost corporations billions, and spending is still on the rise,” InformationWeek, 20 June 1994; “State of re-engineering report (North America and Europe),” CSC Index, 1994; Tracy Goss, Richard Tanner Pascale, and Anthony G. Athos, “The reinvention roller coaster: Risking the present for a powerful future,” Harvard Business Review, 1 November 1993; John P. Kotter and James L. Heskett, Corporate Culture and Performance, Free Press, 1992. Efforts failing to achieve target impact Employee resistance to change Management behavior does not support change Inadequate resources or budget Other obstacles 14% 14% 39% 33% 196
Exhibit 4.1 Elements of an Institutional Capability “How we act” Raw talent Skills, knowledge, and behaviors Training Access to external skills Cultural norms “How we manage” Organizational structure and roles Decision rights and linkage mechanisms Performance management process Talent management process Knowledge management approach and infrastructure Management system Behavioral system Technical system Performance “What we need in order to create value” End-to-end processes and practices for generating value Supporting tools, procedures, intellectual property Enabling technology Physical assets 197
Exhibit 6.5 The Valley of Desolation Starting the pilot Scaling up Telling the story Energy Time Cynics speak out or dig in Local loyalties prevail Much activity but little or no impact Valley of deso l a t i o n 198
Exhibit 7.1 The Elements of Centered Leadership Framing Self-awareness Stepping back Shifting perspective Meaning Happiness Core strengths Purpose Engaging Confidence Ownership Taking action Connecting Reciprocity Inclusiveness Sponsorship Maximizing sources Minimizing depletion Sustaining Energizing Personal and professional context 199
Exhibit 5.4 The Interactive Cascade Process CEO as author CEO drafts a personally meaningful change story taking on board input from the organization and agreements made with senior team CEO as “teacher,” senior managers as “students” Senior managers participate in an interactive session with peers to listen to, understand, and give feedback on CEO’s story Senior managers as authors, CEO as coach Managers prepare their own versions of the story that are relevant to their units, using the CEO’s story as context and receiving coaching from the CEO as needed Senior managers as teachers, next-level managers as students Senior managers facilitate an interactive story session for their employees (with their supervisors attending at least for the kick-off) Next-level managers as authors, senior managers as coaches …and so on 200
High Performance Companies Nitin Pangarkar Principles for companies to use when making day-to-day decisions that will determine their actual strategy Strategic considerations Resource acquisition: discover diamonds among coal to enhance performance (finding undervalued resources or ones which can generate synergy) Resource allocation: build durable assets (create barriers to entry — brand building, technology development, and employee development) Overall business-level strategy: create small wins, replicate several times — cumulative impact of many can achieve big impact 201
High Performance Companies Nitin Pangarkar Principles for companies to use when making day-to-day decisions that will determine their actual strategy Strategic considerations Innovation strategy: integrate the knowledge from various stakeholders and partners to innovate Strategic incremental adaptation (External): companies to be clear about their goals and pursue even during a crisis Beware of Strategic incremental adaptation (Internal ): if tweaking strategies companies should be careful not to undermine core elements of current strategy such as commitments to key stakeholders such as employees or customers 202
Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  Management: the ability of an organization and its people to perform Design: how management contributes to an organization’s success or failure A Good Design: is a unique strength and competitive advantage 203
Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET CONTINUED AGILITYINSIGHTS research over the past 15 years indicates best run organizations have designed management capabilities around 6 benefits Scaling — systems, culture, leadership, people, control Diffusion — strategy, purpose, vision, values, collaboration, relationships Alignment — model, contact, operations, implementation 204
Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET CONTINUED AGILITYINSIGHTS research over the past 15 years indicates best run organizations have designed management capabilities around 6 benefits Effectiveness — decisions, rules, routines, tools Efficiency — discipline, cost, quality, productivity Sustainability — capabilities, development 205
Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED 3 Overarching Objectives/Deliverables Unlocking a team’s talents rapid multiplication of practices, capabilities and technologies actualization of purpose, strategy and values 206
Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED 3 Overarching Objectives/Deliverables Amplification of the team’s impact: growth, innovation, performance future proof-fit of people, organization and context reliable capability to repeat performance 207
Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED 3 Overarching Objectives/Deliverables Management with a future-proof design — the competitive advantage relentless discipline and quality without waste reliable capability to constantly renew and develop 208
Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED ABILITYINSIGHTS focuses on changing the capacity of the entire organization strong sense of purpose strategy implementation ability to balance speed control stability resilience constant renewal 209
Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED ABILITYINSIGHTS programs relate to management assessment & design management = inspiring organization = enabling people = engaging success = peak performance Management with the right design/good design fits its operating context generates high impact 210
Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED ABILITYINSIGHTS core competency: assessing and designing, and executing the management design that gets the right things done FAST combines design thinking latest management research highly actionable assessments of intangibles experienced peer-level mentoring 211
Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED The 5 Minute Online Unique Experience: AGILITYINSIGHTS Diagnostic reviews management determines what design best fits context to generate high impact uncovers the true drivers of performance identifies untapped potential notes potential barriers 212
Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder of AGILITYINSIGHTS.NET  CONTINUED Diagnostic output: unique & customized “Performance Triangle” people — speed and control organization — agility and stability stakeholders — resilience & renewal environment — dynamic capabilities 213
Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED Questions to be asked, answered and action taken People — What is my talents ability to perform? Organization — What is my organization’s ability to innovate? Stakeholders — What is my organization’s ability to grow? Environment — What is my organization’s ability to adapt to a changing context? Management — What is my management’s ability to unlock the organization’s potential? 214
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Building high performance teams — personal insights & experiences Mark Beliczky The Carlyle Group Pepsico market transformations People selection development — real-time feedback Operational excellence Innovation Team Empowerment Self-lead teams Owning the trade area —performance metrics 230
Building high performance teams — personal insights & experiences Mark Beliczky The Carlyle Group CONTINUED Transparent Guiding Principles keep things simple listen/learn be pro-active meaningful specific vs. wandering generality know and truly serve your internal and external customers direct, open, honest & operate with full disclosure 231
Building high performance teams — personal insights & experiences Mark Beliczky The Carlyle Group CONTINUED Transparent Guiding Principles this is competition — winning is important team-oriented — getting results through and with others standards are the standards, are the standards set clear performance expectations and goals — measure and track consistency fair and reasonable invest today for future returns 232
Building high performance teams — personal insights & experiences Mark Beliczky The Carlyle Group CONTINUED Transparent Guiding Principles participative management coaching/supporting role vs. command/ control right brain/left brain focus KSAA be wise, not simply knowledgeable ability & desire to overcome obstacles “SMART” Where are you headed? How are you going to get there? 233
Building high performance teams — personal insights & experiences Mark Beliczky The Carlyle Group CONTINUED Transparent Guiding Principles ask for feedback — respond vs. react in a timely manner err on the side of ACTION vs. inaction willingness to change, feel uncomfortable, put yourself at “qualified risk” — ability to keep on trying even when faced with failure develop your people 234
Building high performance teams — personal insights & experiences Mark Beliczky The Carlyle Group CONTINUED Transparent Guiding Principles achieve desired & sustainable results via workable systems results with integrity be passionate in what you do be personally accountable for your actions and accountable to those who serve you take breaks have fun 235
9 things successful people do differently — realistic optimists Dr. Heidi Grant Halvorson, Columbia University Warren Buffet, Berkshire Hathaway Founder & CEO — a realistic optimist "Optimism is a huge asset…We see this in you, Warren. Your success didn't create your optimism, your optimism led to your success.” Melinda Gates of Gates Foundation Realistic optimists believe they will succeed but also understand they have to strategize, put in effort, plan and be persistent in order to overcome any obstacles and get things done 236
9 things successful people do differently — realistic optimists Dr. Heidi Grant Halvorson, Columbia University CONTINUED 9 things successful people do differently Get specific when you set a goal be as specific as possible Seize the moment to act on your goals Know exactly how far you have left to go Be a realistic optimist: thinking things will come to you easily and effortlessly leaves you ill-prepared for the journey ahead, and significantly increases the odds of failure 237
9 things successful people do differently — realistic optimists Dr. Heidi Grant Halvorson, Columbia University CONTINUED 9 things successful people do differently Focus on getting better, rather than being good Have grit — willingness to commit to long-term goals and to persist in the face of difficulty Build your willpower muscle — your self- control “muscle” 238
9 things successful people do differently — realistic optimists Dr. Heidi Grant Halvorson, Columbia University CONTINUED 9 things successful people do differently Don’t tempt fate — if you overtax it you will temporarily run out of steam Focus on what you will do, not what you won’t do 239
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman Creating individual accountability is the #1 managerial/leadership challenge facing organizations today The Oz Principle: “only YOU can rise above your circumstances and achieve results you desire" It is the “journey” that empowers you 240
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Accountability is an attitude of continually asking “what else can I do to rise above my circumstances and achieve the results I desire” Process: seeing it, owning it, solving it, and doing it Success in business: Choice of getting stuck or getting results 241
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED A thin line separate SUCCESS from failure Above the line — SUCCESS sense of reality ownership commitment solutions to problems determined action 242
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED ©2004 Partners In Leadership IP, LLC. 40PP.AT.1.a. © 1999-2006 Partners In Leadership IP, LLC. All Rights Reserved. THE OZ PRINCIPLE 243
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Below the line — failure or “Victim’s Cycle" excuse making blaming others confusion attitude of helplessness 244
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Below the line — failure behaviors wait and see cover your tail tell me what to do finger pointing it’s not my job ignore/deny 245
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED ©2004 Partners In Leadership IP, LLC. 40PP.AT.1.a. © 1999-2006 Partners In Leadership IP, LLC. All Rights Reserved. THE OZ PRINCIPLE Wait & See Cover Your Tail Finger Pointing It’s Not My Job Ignore/ Deny Confusion/Tell Me What To Do 246
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Accountable work environments apply principles of interdependence and joint accountability spend more time uncovering problems taking risks initiating positive action 247
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Accountable work environments learning replaces punishment success replaces failure victimization gives way to accountability 248
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Accountable behaviors/attitudes invite feedback no hiding the truth readily acknowledged reality 249
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Accountable behaviors/attitudes focus on what you can control/ influence commit 100% to what you are doing own your circumstances and your results 250
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Accountable behaviors/attitudes recognize when you fall “below the line” delight in opportunities to make things happen “What else can I do to rise above my circumstances to get the results I want.” 251
The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Gaining the most honest feedback ask for feedback in the right environment seeking honest feedback don’t get defensive listen carefully — ask for clarity express appreciation 252
How will you measure your life Dr. Clayton Christensen, Harvard University “Management is the most noble of professions if practiced well." "...the powerful motivator in our lives isn't money; it's the opportunity to learn, grow in responsibilities, contribute to others, and to be recognized for achievements." Frederick Herzberg 253
How will you measure your life Dr. Clayton Christensen, Harvard University CONTINUED Three key questions to ask ourselves and where the answers can help frame the purpose to our lives how can I be happy in my career how can I be sure that my relationship with my family is an enduring source of happiness how can I live my life with integrity "...the powerful motivator in our lives isn't money; it's the opportunity to learn, grow in responsibilities, contribute to others, and to be recognized for achievements." Frederick Herzberg 254
How will you measure your life Dr. Clayton Christensen, Harvard University CONTINUED "...if you have a humble eagerness to learn something from everybody, your learning opportunities will be unlimited. Generally you can be humble only if you feel really good about yourself."  255

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AmChamMadedoniaPresentationHighPerformanceMarkBeliczky111017PDF.pdf

  • 1. Accountable & High Performing Companies & Cultures Skopje, Macedonia November 10, 2017 Mark Beliczky The Carlyle Group Washington, DC New York City 1
  • 2. Accountable & High Performing Companies & Cultures Skopje, Macedonia November 10, 2017 High Commitment/High Involvement Companies & Cultures Academic Theory, Research & Implications Business journals Global management consulting firms Cutting edge books 2
  • 3. Questions YOU May Wish to Consider Today What are business academics thinking and saying? What are management consultants doing? How would I rate myself and my organization with regard to high performance? WIIFM? Are there validated instruments to measure HCHIC What would Peter Drucker say? What will I do differently Monday morning? 3
  • 4. Questions Your ORGANIZATION May Wish to Consider What are my team’s talents & abilities to perform? What is my organization’s ability to innovate? What is my organization’s ability to grow? What is my organization’s ability to adapt to a changing context? What is my management’s ability to unlock the organization’s potential? 4
  • 5. 5
  • 6. Academic Theory, Research & Implications Center for Evidence-Based Management Academic Journal Articles Carnegie Mellon University Pittsburgh, Pennsylvania USA High performance organizations High performance companies High performance cultures High performance executives TOTAL: 719,388 peer-reviewed articles 6
  • 7. 8 Companies Reveal Their Secret Sauce to a High-Performance Culture 7
  • 8. Organizational design is what holds everything together Good organizational design: constructive tension, conflict, disagreement between product functions and geography Most spend too much time drawing an org chart and too little on redesigning processes and rewards 8 Designing a high performance organization Denison
  • 9. Galbraith’s 5 Star Model: most widely used policies strategies processes rewards people Good org design — happens before the crisis Org design follows strategy No such thing as a perfect org design 9 Designing a high performance organization Denison CONTINUED…
  • 10. Fewer than 10% of applicants receive the award Why employees become cynical about leaders and lose motivation — “talk a good talk” but do NOT “walk a good talk” 10 CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson
  • 11. CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED… Key differences that drive excellence need to drive continuous evolution high focus on systems low need for sole responsibility high focus on learning from the past high focus on information low tolerance for actions that are inconsistent with the values of the organization 11
  • 12. CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED… Top 2 priorities for how Baldrige winners differ: leadership and culture CEOs more likely to evolve change and drive continuous improvement What transformational leaders do: (1) create environment where org members question the org’s processes, (2) develop new ways to understand and run org 12
  • 13. CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED… “While you have to put the rudder over hard, the ship doesn't turn quickly. It takes time for culture to change and you have to take the group along with you.” 13
  • 14. CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED… Leaders of HPOs focus short-term wins create momentum consolidate small wins into bigger gains Leaders also sponsored breakthrough projects to achieve world-class performance “I think of continuous improvement as 3-5 % and breakthrough improvement as 20%+.” 14
  • 15. CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED Strongly motivated to focus on systems and processes They are more team then self oriented would rather share than keep it themselves leading to more teamwork increased employee engagement 15
  • 16. CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED CEOs demonstrated a moderate degree of humility gave credit to their teams advocate their ideas (demonstrating confidence) inquire into alternative ideas from the group (showing humility) 16
  • 17. CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED Shared/collaborative approach and increased new management processes, solutions and strategies and decrease resistance to change “ The increasing complexity of products, services, and experiences has replaced the myth of the lone creative genius with the reality of the enthusiastic interdisciplinary collaborator.” As the level of collaboration increases, the level of resistance among the workforce decreases —critical to successful transformation to excellence 17
  • 18. CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED Use a comprehensive scorecard: current performance levels trends over time comparisons to other high-performing organizations develop plans for improvement Many Baldrige CEOs identified accountability as key to getting people to take the necessary actions 18
  • 19. CEO Attitudes and Motivators — The Malcolm Baldrige National Quality Award Winners, USA Larson CONTINUED Baldrige leaders are rare — intolerant of behaviors that were inconsistent with the vision and values of the organization Key success driver collaboration of diverse group leaders wide variety of functional perspectives 19
  • 20. High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch Southwest Airlines and Federal Express: “Our people come first, even before customers.” Southwest experience October 17, 2017: Baltimore, Maryland to Charleston, South Carolina Studies have shown higher stock price to book values market values per employee about $41,000 higher 5 year annual returns 27.5% compared to 17.3% 20
  • 21. High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch CONTINUED Anderson Consulting research found that 75% of executives surveyed noted human performance more important than than productivity and technology 21
  • 22. High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch CONTINUED Company’s ability to stay competitive/become more competitive is a major factor in increasing employee commitment and loyalty: Lexus MBNA Bank Chick-fil-A Leo Burnett A.G. Edwards Southwest Airlines Starbucks Coffee Enterprise Rent-A-Car Microsoft Anheuser-Bush IBM Nordstrom Federal Express 22
  • 23. High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch CONTINUED Selection and training key must have the right people selection training and development ALL EMPLOYEES ARE INCLUDED IN TRAINING and demand and expect growth 23
  • 24. High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch CONTINUED Managers act as teachers informally and formally performance appraisals ID areas for development challenge their people help them develop the skills needed to meet the challenges 24
  • 25. High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch CONTINUED Beyond company and mission — managers set goals and performance expectations provide feedback direction hold people accountable for achieving their goals 25
  • 26. High-Performing, Loyal Employees: The Real Way to Implement Strategy Michlitsch CONTINUED Six key action items develop clear and compelling mission and strategy select and train the right people explain the mission and strategy and give them information to understand performance requirements give them timely information and feedback so that they can do a good job embed company goals in a strong company culture reward people for doing what you want them to do 26
  • 27. Role balance and team development: A study of team role characteristics underlying high and low performing teams Chong Study of high-performing work teams — analysis of 342 individuals and 33 teams Key factors in team success creativity coordination cooperation 27
  • 28. Role balance and team development: A study of team role characteristics underlying high and low performing teams Chong CONTINUED… Team members reported enthusiasm in taking on management roles managed their time effectively worked well under pressure people centered emphasis on securing consensus, morale building and effective training 28
  • 29. High Performance Executive Teams Taneja High performance teams develop goals and plans enhance communication among members develop and maintain positive relationships make decisions on a timely basis successfully manage conflict 29
  • 30. High Performance Executive Teams Taneja CONTINUED… High performance teams facilitate productive meetings clarify roles for team members operate in a productive manner exhibit effective team leadership provide development opportunities for team members 30
  • 31. High Performance Executive Teams Taneja CONTINUED Teams that demonstrate that performance excellence is their way of life are HIGH PERFORMANCE TEAMS High performance teams are a rarity — high performance culture must exist in high performance teams 31
  • 32. High Performance Executive Teams Taneja CONTINUED What would Peter Drucker say… ask what needs to be done what is right for the company develop an action plan be responsible for the decisions be responsible for communicating focus on opportunities rather than problems have productive meetings focus on teamwork rather than individual effort 32
  • 33. High Performance Executive Teams Taneja CONTINUED Steps in developing a high performing executive team review product and service offering, market position and competition — develop a sound strategy develop vision, mission, core values and goals consistent with strategy develop strategies that can deliver in the long run 33
  • 34. High Performance Executive Teams Taneja CONTINUED Steps in developing a high performing executive team communicate strategic and tactical plans to all employees establish clear definitions of expectations and duties monitor progress 34
  • 35. High Performance Executive Teams Taneja CONTINUED What HP Executive teams do develop goals and strategic plans enhance communication among team members and organization maintain positive relationships among members solve problems and prevent them when possible make decisions on a timely basis 35
  • 36. High Performance Executive Teams Taneja CONTINUED What HP Executive teams do continued… successfully manage functional conflict facilitate productive meetings clarify roles for team members operate in a productive, efficient and effective manner exhibit effective and efficient team leadership provide development opportunities for team members 36
  • 37. High-performance companies: the distinguishing profile Osborne CULTURE Emotion-packed vision: a simple, compelling vision for the future and which resonate with employees, easy to understand — a picture of what the company can be True-believer mentality: everyone believes in the vision of the business and that it will bring success Plain vanilla values: 3-4 values guide (and cultures of high-performing companies will NOT accommodate unfair treatment of employees) 37
  • 38. High-performance companies: the distinguishing profile Osborne CONTINUED CULTURE Pride and dissatisfaction: have a commitment to learning from every mistake and success Peer respect: the urge to earn and maintain respect of one another — instinct to be the best is the greatest motivator for HPOs 38
  • 39. High-performance companies: the distinguishing profile Osborne CONTINUED CULTURE Long-term relationships: HP employees believe, indeed expect that long-term relationships are the path to personal success Fun: HP workplaces are filled with fun 39
  • 40. High-performance companies: the distinguishing profile Osborne CONTINUED PEOPLE Maintain a “can do” attitude —failure is unthinkable Crush the competition: obsessed with beating the competition Hang tough: emotional toughness is a badge of honor — these team members are described as invigorated by adversity 40
  • 41. High-performance companies: the distinguishing profile Osborne CONTINUED PEOPLE Be the best in the business: try to recruit the best — training and development are important No excuses: no finger pointing — problems are for solving The boss is a colorful character — not necessarily universal 41
  • 42. High-performance companies: the distinguishing profile Osborne CONTINUED SYSTEM Superb execution is what separates from middle of the road — A management system focused on execution at the highest order Precise expectations/measurement/frequent feedback: everyone knows exactly what is expected of them how they will be measured how they are doing Performance is King: CEOs of HP orgs anoint employees who deliver superior results as heroes 42
  • 43. High-performance companies: the distinguishing profile Osborne CONTINUED SYSTEM Truth is told: important to tell the truth, deliver bad news faster and are rewarded Communication in all directions is wide open 43
  • 44. High-performance companies: the distinguishing profile Osborne CONTINUED SYSTEM HP companies and sustainable success take a hard look at their cultures staffing practices management systems following the culture, people and systems model 44
  • 45. Organizational culture is a key foundation for HP work practices Setting practices and values for a positive and meaningful work climate clear, compelling direction (mission, vision and strategy) embraced by all employees at all levels, employee involvement (teamwork, capability, development, and empowerment) 45 Cultural Basis of high performance organizations Gupta
  • 46. Cultural Basis of high performance organizations Gupta CONTINUED HP organizations create and build human capital positive organizational climate organizational social capital 46
  • 47. Cultural Basis of high performance organizations Gupta CONTINUED Strategic diversity programs have evolved and have deepened workplace democratization diversity initiatives bring entrepreneurial creativity SUSTAINED high levels of value addition 47
  • 48. High Commitment, High Performance Management Beer Long periods of excellence Southwest Johnson& Johnson Hewlett Packard Nucor Steel McKinsey Goldman Sachs Toyota GE Becton Dickinson Campbell Soup IBM ASDA (UK Grocery) 48
  • 49. High Commitment, High Performance Management Beer CONTINUED What HCHP leaders do: performance alignment: organizational design business processes goals measures capabilities 49
  • 50. High Commitment, High Performance Management Beer CONTINUED What HCHP leaders do psychological alignment provides employees with a sense of higher purpose challenging work capacity to make a difference capacity of learning and change have “learning governance systems” means of having honest, collective and public conversations 50
  • 51. High Commitment, High Performance Management Beer CONTINUED Six barriers unclear strategy, priorities and values too top down (failure to engage people that allows for open and honest problem- solving and dialogue) ineffective leadership team (does not work as a unit fails to spend enough time on strategic, organizational and people issues) 51
  • 52. High Commitment, High Performance Management Beer CONTINUED Six barriers poor coordination and collaboration inadequate leadership development closed vertical communication — lower levels have NOT been communicated with about values, strategy and priorities 52
  • 53. High Commitment, High Performance Management Beer CONTINUED HCHP leadership vision and values empowerment collaboration maintaining firm identity learning humility non-heroic approach to the job Leaders must be able to confront conflict 53
  • 54. Linking knowledge processes with firm performance: organizational culture Nold Trust in management and among individuals essential element of organizational culture required for individuals to interact/share knowledge Power of organizational culture impact of strategic deployment knowledge management initiative 54
  • 55. Linking knowledge processes with firm performance: organizational culture Nold CONTINUED link between “knowledge management” and firm performance researchers of the “missing link” need for an instrument that collects “perceived cultural attributes” enables the knowledge process to translate into superior performance 55
  • 56. Linking knowledge processes with firm performance: organizational culture Nold CONTINUED Knowledge Management System (“KMS”) — acquiring, sharing, leveraging, and using information to gain competitive edge 80% of company knowledge is Tacit Knowledge: mental models, experience, and habits of individuals and groups 56
  • 57. Linking knowledge processes with firm performance: organizational culture Nold CONTINUED organizational cultures exist: “pattern of basic beliefs and assumptions learned and shared by a group that is taught to new members as the accepted way to perceive, think, and feel when interacting with other members of the group…” Schein (2001) 57
  • 58. Linking knowledge processes with firm performance: organizational culture Nold CONTINUED companies with high levels of trust, pride, and camaraderie may be more effective in knowledge processing converting knowledge into action contribute to improved operating results 58
  • 59. Linking knowledge processes with firm performance: organizational culture Nold CONTINUED effective knowledge processes may unlock barriers to the organization’s tacit knowledge base 80 percent of the total knowledge within the organization 59
  • 60. Linking knowledge processes with firm performance: organizational culture Nold CONTINUED Great Places to Work (“GPTW”) list of 100 best firms in America — superior average annual growth rates compared to firms not on the list generating superior financial results leaders successfully cultivate a culture of trust pride camaraderie 60
  • 61. Linking knowledge processes with firm performance: organizational culture Nold CONTINUED Effective knowledge processes ultimately contribute to creating valuable intangible assets intellectual capital for the organization generates value, operating performance, and growth 61
  • 62. Make your company high commitment, high performance… Dr. Michael Beer 62
  • 63. 63
  • 64. Business Journals What high performers want at work Harvard Business Review Joint SAP/Oxford Economics study across 27 countries and 2,872 employees: 40% HP, 40% avg. and 20% below average high performers more satisfied with jobs and less likely to leave in next 6 months 20% of HP employees are likely to leave in 6 months compared to 25% for all employees and less than half of HP employees are satisfied with their jobs 64
  • 65. What high performers want at work Harvard Business Review CONTINUED Top 5 areas valued by employees competitive compensation bonus and merit-based rewards retirement plans supplemental training programs flexible work location 65
  • 66. What high performers want at work Harvard Business Review CONTINUED Pay significantly more variation in bonus pay for top 5% of performers KPMG — found 73% of top performing companies placed no cap on bonus for best performers. 81% of low performing companies placed a cap on bonus 66
  • 67. What high performers want at work Harvard Business Review CONTINUED 50% of HP employees expect at least a monthly sit down with their managers — only 53% state that their managers deliver on their feedback expectations 67
  • 68. What high performers want at work Harvard Business Review CONTINUED HPers showed strong tendency to direct their own learning Professional development is a high priority in N. America 66% of HPers reported that their supervisors did NOT support them for formal training 68
  • 69. Toward a theory of high performance Harvard Business Review Search of 83 years of HBR Top Performing Companies did not occur until 1980 (Tom Peters In Search of Excellence) and a publishing sensation for the first 1,000 or so years of business history nothing material written on HPC 69
  • 70. Toward a theory of high performance Harvard Business Review 10 leading Scholars discover keys to High Performance Peters/Waterman Kotter/Heskett Collins/Porras Jain Katzenbach Foster/Kaplan Weick/Sutcliffe Zook/Allen Joyce/Nohria/Robertson Breene/Nunes 70
  • 71. Toward a theory of high performance Harvard Business Review CONTINUED Key questions — what to study or what the scorecard looks like individual team business unit corporation 71
  • 72. Toward a theory of high performance Harvard Business Review CONTINUED “Who stands the tallest” is NOT straightforward links between strength of org culture and economic success (annual growth of net income, avg. return on invested capital, and stock price appreciation) Kotter/ Haskett growth in revenues and profits — Chris Took, Bain 72
  • 73. Toward a theory of high performance Harvard Business Review CONTINUED Turns out — In Search of Excellence — no real predictive models of HPO used — went around and asked “who was cool and who was doing cool work” generated list of 62 companies and eventually cut to 43 Jim Collins “winner circle” — “Good to Great” used cumulative investor returns relative to the stock market 73
  • 74. Toward a theory of high performance Harvard Business Review CONTINUED Metrics still a matter of debate, but consensus is forming that a ten year view might be right John Katzenbach’s 5 paths mission, vision, values, and pride process and metrics entrepreneurial spirit individual achievement recognition/celebration 74
  • 75. Toward a theory of high performance Harvard Business Review CONTINUED Foster/Kaplan — transforming companies periodically rather than steady, incremental improvement Weick/Sutcliffe — creating a state of mindfulness (state of active, open attention on the present) Joyce/Nohria/Robertson: “ We have reached a critical point in the evolution of a theory of high performance — the point where management researchers have begun to build effectively on one another’s work.” 75
  • 76. Use this secret weapon: High performing work groups Consulting to Management Hudson Highland Center for High Performance (“Chip”): surveyed 3,000 knowledge workers in US, Europe, Japan, Australia, Beijing, Shanghai about work groups Critically important characteristics of high-performing workgroups value people optimize critical thinking seize opportunities 76
  • 77. Reinventing Performance Management Harvard Business Review Deloitte performance management system 58% of executives believe that their current performance management approach does NOT drive employee engagement or high performance 77
  • 78. Reinventing Performance Management Harvard Business Review CONTINUED New Deloitte system eliminates cascading objectives once-a-year reviews 360 feedback New system speed agility one-size-fits-one constant learning & collecting reliable performance data 78
  • 79. Reinventing Performance Management Harvard Business Review CONTINUED old ratings” system consumed 2Mil hours/ year, and assessing someone’s skills produced inconsistent data 79
  • 80. Reinventing Performance Management Harvard Business Review CONTINUED Best teams are strength-oriented — “At work , I have the opportunity to do what I do best every day.” — for those that chose “strongly agree” were 44% more likely to earn high customer satisfaction scores 50% more likely to have low turnover 38% more likely to be more productive 80
  • 81. Reinventing Performance Management Harvard Business Review CONTINUED new performance management redesign recognize performance, particularly through variable compensation able to see each person’s performance clearly fueled performance 81
  • 82. Reinventing Performance Management Harvard Business Review CONTINUED What employees want of organization know us we want to know ourselves at work — can’t really be done with a single number (rating) Now have technology to go from a small data version of people to a big data version 82
  • 83. This is the secret sauce for a high productive company Fast Company Apple, Netflix, Google, Dell are 40% more productive than other companies inspiring leaders trust teamwork 83
  • 84. This is the secret sauce for a high productive company Fast Company CONTINUED Research from Bain and Co dispels myth — HPC do well simply because they attract employees that are “naturally gifted at productivity” Research by Michael Mankins of Bain — productive companies have about the same percentage of star players as less productive competitors 84
  • 85. This is the secret sauce for a high productive company Fast Company CONTINUED Leading companies more strategic about where they place those employees in “business critical” positions and of high value for the company goals value teamwork and smart about projects in need of an all-star team to succeed inspired workers energized by a fantastic leader are 125% more productive than satisfied workers inspirational leadership can be taught 85
  • 86. How to create a high performance culture Andrew Sillitoe 86
  • 87. 87
  • 88. Global Management Consulting Firms Decoding High Performance McKinsey & Company The McKinsey persona be selfless be prepared to sacrifice money and personal glory for the sake of building a stronger firm never take public credit always be confident and discreet 88
  • 89. Decoding High Performance McKinsey & Company CONTINUED “As I drove into the parking garage, I still had that rush of excitement. I found myself walking faster than usual from the parking garage into the office building. As I climbed the stairs all I could think about was getting to my desk and jumping into the work I left the night before.” 89
  • 90. Decoding High Performance McKinsey & Company CONTINUED 2 years later… transformed the way he thought about organizations and high performance altered expectations about himself made him realize that people are capable of more than they believe 90
  • 91. Decoding High Performance McKinsey & Company CONTINUED McKinsey high performance model top talent values-driven culture, powerful stories, and respect for people continuous improvement 91
  • 92. Decoding High Performance McKinsey & Company CONTINUED “BS” Proof Values-Driven Culture reinforced by powerful stories (stories that reinforce the values and create context for how to operate within the culture) respect for people (open and candid feedback) autonomy and a “caring meritocracy” 92
  • 93. Decoding High Performance McKinsey & Company CONTINUED Continuous improvement getting the right people wired for continuous improvement cultivating institutional humility opportunity to tweak or radically disrupt the culture AND the business model 93
  • 94. Decoding High Performance McKinsey & Company CONTINUED Top talent development: over-invest in training and development — a high performance culture of learning, development and coaching supportive culture: obsession with creating/ maintaining a culture that supports the people that perform — “create and unrivaled environment for exceptional people” firing people: not keeping people that slow them down — ALL exiting employees are seen as valuable alums and members of the “family” 94
  • 95. Decoding High Performance McKinsey & Company CONTINUED Values-driven culture regularly hear over and over about values once a year “values day” — spending a full day talking about the values and re-engaging The values-based culture works powerful stories underlying respect for people speak of values and stories — here is how we do it here and this is why 95
  • 96. Decoding High Performance McKinsey & Company CONTINUED Respect for people — core elements: start with self reflection — do you want their help or are you just annoyed by their behavior build a foundation of respect — show someone you care then help them improve 96
  • 97. Decoding High Performance McKinsey & Company CONTINUED Respect for people — core elements timely feedback — deliver feedback close to event as possible be specific — use actual examples of what you observed offer to help — offer actionable next step and personally be part of that growth 97
  • 98. Decoding High Performance McKinsey & Company CONTINUED “Convinced that behavior and conduct are every bit as important as skills and expertise…I sought to build the firm into an enduring, values-based institution.” Marvin Bower Marvin Bower’s secret of business: “Business Models change, industries appear and disappear — but values are forever…” 98
  • 99. High-performing teams: A timeless leadership role McKinsey Team composition kept small—not too small (7-10) structure of organization should NOT dictate the team’s membership consider what complementary skills and attitudes each team member brings 99
  • 100. High-performing teams: A timeless leadership role McKinsey CONTINUED Team dynamics: (difference between a team of all stars and an all-star team) — asked 5,000 executives to think about their “peak experience” as a team member and resulted in 3 key dimensions of great teamwork alignment and direction — shared belief about what company is striving toward and role of team getting there 100
  • 101. High-performing teams: A timeless leadership role McKinsey CONTINUED Team dynamics: (difference between a team of all stars and an all-star team) — asked 5,000 executives to think about their “peak experience” as a team member and resulted in 3 key dimensions of great teamwork… high quality interaction —characterized by true, open communication and willingness to embrace conflict strong sense of renewal —environment in which team members are energized because they feel they can take risks, innovate, learn form outside ideas and achieve something that matters and often against the odds 101
  • 102. High-performing teams: A timeless leadership role McKinsey CONTINUED Getting started with a team assess on the three dimensions (surveys and interviews) offsite workshop and on-the-job practice effective team meetings —should address only those topics that need the team's collective expertise 102
  • 103. High-performing teams: A timeless leadership role McKinsey CONTINUED Getting started with a team reflective sessions — did the team members feel aligned on what they are trying to achieve? do they feel excited about the conclusions reached? did they feel they brought out the best in everyone? trust deepens regardless of the answers? 103
  • 104. High-performing teams: A timeless leadership role McKinsey CONTINUED Getting started with a team high performing teams can be built in one year even starting from a low base executives are 5x more productive when working in a HP team than an average one 104
  • 105. The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup Study of 3,477 managers from oil, gas, banking and finance, property development, tourism, automotive, and telecom sectors from the Gulf Cooperation Council (6 Middle East Countries) — also analyzed data from 30,000 employees 105
  • 106. The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Best managers set clear expectations define employee roles create trusting environments encourage employee growth and development continuously raise the bar — encouraging higher performance 106
  • 107. The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Effective performance management process merit-based system differentiating high/ low performers clearly defined standards and expectations at individual, team, dept and org levels develop transparent rewards system articulate, shared goals/objectives 107
  • 108. The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Create empowerment and authority recognize and respond to changing info from marketplace develop innovative ideas connect with customers 108
  • 109. The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Increase leadership capability at all levels of company inspiring employees with consistent and regular communication connecting today’s work initiatives and changes with where business is headed providing messaging supporting company mission inspiring trust and respect involving employees in developing strategy 109
  • 110. The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Develop a customer-centric strategy — employee understanding of individual and collective responsibilities in meeting customer needs and expectations 110
  • 111. The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Increase communication and collaboration selecting leaders and managers who have potential to be top performers ensuring leaders and managers understand their role in the communication process scheduling regular one-on-one conversations using collaborative approach creating strong levels of trust 111
  • 112. The Keys to Building a High-Performance Culture Ehssan Abdallah Gallup CONTINUED Enhance training and development Key differentiator in most engaged companies heightened intent to change the commitment to change has enhanced their brand with employees and customers 112
  • 113. High-Performance Organizations: The secrets of their success Boston Consulting Group Broad dimensions that lead to sustained performance leadership: aligned and effective deep in the organization design: structure that reflects org’s strategic focus with clear roles/ responsibilities 113
  • 114. High-Performance Organizations: The secrets of their success Boston Consulting Group CONTINUED Broad dimensions that lead to sustained performance people: translates business strategy into a people strategy — attracting, retaining most capable change management: ability to drive and sustain large-scale change culture and engagement: a culture shaped to achieve strategic goals — motivated employees go beyond in pursuit of co objectives 114
  • 115. High-Performance Organizations: The secrets of their success Boston Consulting Group CONTINUED Leadership high performance teams of leaders drive urgency and direction pipeline is stocked with future leaders — skills matched to future needs middle managers embrace and translate strategy 115
  • 116. High-Performance Organizations: The secrets of their success Boston Consulting Group CONTINUED Design structure and resource allocation reflect strategic tradeoffs few layers separate the CEO and the frontline, and spans of control are wide accountabilities, decision rights collaboration constructed with thoughtful consideration individual capabilities matched to role requirements 116
  • 117. High-Performance Organizations: The secrets of their success Boston Consulting Group CONTINUED People employer brand is a core asset —brand or employee value proposition critical roles and key talents clearly identified and treated with care HR is a strategic partner and enabler of the business 117
  • 118. High-Performance Organizations: The secrets of their success Boston Consulting Group CONTINUED Change management change is a disciplined cascade —ensure leadership group is aligned on goals and means of change organization is evolutionary —HPOs are adaptive and continually detecting market changes and making strategic adjustments 118
  • 119. High-Performance Organizations: The secrets of their success Boston Consulting Group CONTINUED Culture and engagement culture accelerates strategic objectives engagement measured and cultivated to generate discretionary effort from employees 119
  • 120. Performance Culture Bain and Company Performance culture is the heart of competitive advantage High performers create an environment with a unique personality and soul and passion for performance A true HP culture provides company with its single greatest source of competitive advantage 120
  • 121. Performance Culture Bain and Company CONTINUED Culture inspires people to go the extra mile, to make and execute good decisions FEWER THAN 10% OF COMPANIES ACTUALLY SUCCEED IN BUILDING A WINNING CULTURE — AND EVEN ONES THAT ARE SUCCESSFUL FIND IT HARD TO MAINTAIN 121
  • 122. Performance Culture Bain and Company CONTINUED Two central characteristics of HP cultures Each culture is unique organizational personality/soul derived from deep heritage create their own, distinctive environment potent combination of values, character, rituals and beliefs creates a deep bond with employees 122
  • 123. Performance Culture Bain and Company CONTINUED Two central characteristics of HP cultures All foster a similar set of behaviors: care passionately about winning orient themselves outward — focused on customers and competitors build teamwork open to change 123
  • 124. Performance Culture Bain and Company CONTINUED Leadership is key cultural change happens when leaders model behaviors and values that define the new culture spread the word through constant personal contact and communication 124
  • 125. Performance Culture Bain and Company CONTINUED Leadership is Key recognize linchpin employees who buy into the the culture and whose words carry weight with others make the needed changes to support the new culture altering incentives redistributing decision rights streamlining processes rigorously track progress to ensure the performance stays high 125
  • 126. Building Your Own High Performance Organization Bain and Company Michael Mankins and Dan Schwartz Survey of 665 companies world-wide organizational outcomes key to high performing organizations aligned with company strategy capable of executing strategy with right talent, processes and tools effective at making and executing critical decisions adaptable in the face of rapid change efficient in dealing the benefits of scale and scope engaged to go the extra mile 126
  • 127. Building Your Own High Performance Organization Bain and Company Michael Mankins and Dan Schwartz CONTINUED A company that performs in the top 20% is 5x more likely to be a business performance leader as compared to zero outcomes Great strategy is important — real success comes with execution — Ford Motor Company turnaround started in 2006 strategic plan to divest non-core brands like Aston Martin, Jaguar, Volvo and Mercury reduced vehicle platforms from 40 to 10 returned to profitability even after the financial crisis of 127
  • 128. Building Your Own High Performance Organization Bain and Company Michael Mankins and Dan Schwartz CONTINUED Key questions for executives to address how do we close any gaps in our foundation? how can we eliminate our liabilities? “Systematically changing an organization requires ruthless prioritization.” 128
  • 129. What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group Four key factors defining high performance leading enabling delivering 129
  • 130. What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED Important indicators clarity around performance that is expected performance that emphasizes quantity and quality in delivery who is responsible for delivering constructive challenge that creates pressure to perform and people can thrive 130
  • 131. What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED Important indicators high levels of support high levels of awareness high performance beliefs attitudes and behaviors of all members of the organization 131
  • 132. What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED Performance levels — key is balancing… vision achievement of metrics/targets/goals as well as quality of delivery innovation (external focus) adaptability (internal focus) — organization’s process flows well-being: caring for its performers — values 132
  • 133. What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED Leadership responsibility leaders thrive on pressure, and able to frame and respond to the challenge in a positive way focus on providing an environment in which performers can thrive — enabling real performers to deliver embrace and foster internal leadership capability at all levels of the organization 133
  • 134. What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED Enable people to perform provide the right tools and equipment to maximize efficiency and effectiveness right information in the form of goals and feedback incentivized to perform 134
  • 135. What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED What HPE performers possess: capacity: job-related skills and knowledge, skills to enable them to thrive under pressure, mental toughness, emotional intelligence beliefs and attitudes high levels of commitment to the organization beliefs and values closely aligned with those of the organization 135
  • 136. What are you doing to create high performance in your organization? Graham Jones Lane4 Management Group CONTINUED What HPE performers possess behaviors ownership responsibility teamwork voluntarily assume extra-role contributions support fellow performers “HPEs are easy to write about, but not so easy to create.” 136
  • 137. The 5 success factors of a High Performance Organization (HPO) 137
  • 138. 138
  • 139. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price Feedback from Gary Hamel: “World’s most influential business thinker” WSJ Survey of hundreds of thousands of executives who reported how they worked — developed over 10 years — unprecedented in scope and revolutionary in conclusions Sifted through more than 900 books and articles Changing things at scale is never easy — complex, perilous, and gut-wrenching 139 Cutting Edge, Game-Changing Books
  • 140. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Feedback from Gary Hamel: “World’s most influential business thinker” WSJ No silver bullets in this book — you find ways to deal directly and creatively with challenges of overcoming status quo and embracing change Management Innovation eXchange (www.management exchange.com) — MIX is world’s first open-innovation platform — offering fresh approaches to management — a “MIX Community” At the heart of every successful transformation lies a stretching and soul-stirring sense of purpose 140
  • 141. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Explains conceptually and practically what it means to achieve excellence in leading and managing organizations Central message: focusing on organizational health: the ability of your organization to align, execute and renew itself faster than your competitors can — just as important as focusing on drivers of performance 141
  • 142. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED “Healthy organizations get things done quicker, better, and with more impact than unhealthy ones.” Sir William Castell, Chairman of the Wellcome Trust 142
  • 143. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED What you learn in the book how to set aspirations for performance and health unique to your organization learn how to assess how ready your organization is to change 143
  • 144. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED What you learn in the book learn how to develop a powerful plan to move organization to where you want to to be master what it takes to implement the plan successfully discover how to help your organization make a gradual transition to a self- sustaining state of continuous improvement in performance and health 144
  • 145. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED “A field guide to harnessing the full potential of your organization.” charting your own recipe for excellence 145
  • 146. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Charting your own recipe for excellence history capabilities passions of its people external environment aspirations 146
  • 147. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED 21st century competitive advantage: increasingly derived by hard-to-copy intangible assets like company culture and leadership effectiveness “…the fittest win out at the expense of their rivals because they succeed in adapting themselves best in their environment.” 147
  • 148. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Success is not only winning in the marketplace but also winning and retaining talented employees Survey of 5,000 executives from top 200 of their respected companies and asked what employees expect of their companies when deciding to join, stay or leave freedom and autonomy exciting challenges 148
  • 149. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED “Talented people don’t come here just to perform tasks. They want to offer their ideas, discuss freely, grow professionally, and contribute to the future of the company.” Roberto Setubal, CEO of Brazil’s Itau Unibanco US job satisfaction 1987 — 61% satisfied, 2000 — 51%, and 2009 — 45% and holds true for all ages and all incomes 149
  • 150. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED US employee productivity also on decline — between ’95-09 output increased more slowly than any 15 year period since 1950 Early publications written on HPO/excellence (in Search of Excellence or Built to Last) companies provided no guarantee of staying power by 2006 20% of companies no longer existed 46% were struggling only 33% remained high-performers 150
  • 151. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED John Kotter — Leading Change — “ONLY 33 % of all change programs succeed” review of 25,000 books on organizational change and hundreds of business cases still only 33% of change programs succeed Only 33% of excellent companies remain excellent over the long term 151
  • 152. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Beyond Performance uses a fact-based technical approach more than 600,000 respondents, more than 500 organizations across the globe survey on the experience of transformational change —more than 6,800 CEOs and senior executives more than 900 books and articles from academic journals 152
  • 153. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Beyond Performance uses a fact-based technical approach one-on-one interviews with 30 CEOs and sr. executives learning from more than 100 McKinsey clients on engagements specifically related to performance and health worked with four eminent business scholars 153
  • 154. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Key Findings those who focused on performance and health 2x more successful as those who focused on health 3x more successful than those focused solely on performance 154
  • 155. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Key Findings companies in top 25% of org health are 2.2x more likely than lower rated to have above-median EBITDA 2x more likely to have above median growth in enterprise value to book value 155
  • 156. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Key Findings 1.5x more likely to have above median growth in net income to sales 50% of the performance variance between companies is accounted for by the differences in organizational health 156
  • 157. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Key Findings at least 50% of your organization’s success in the long term driven by health and something that can be controlled transformations that ignore HEALTH and focus only on performance are 1.5x more likely to fail in the long run 157
  • 158. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Performance: what an enterprise delivers to its stakeholders in financial and operational terms (e.g. net operating profit, return on capital employed, total returns to shareholders, net operating costs, stock turn) Health: ability of an organization to align, execute, and renew itself faster than competition so that it can sustain exceptional performance over time Achieving sustainable excellence: must manage BOTH performance and health 158
  • 159. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED “The soft stuff —people’s beliefs and behaviors — is at least as important as the hard stuff. Making changes in strategy or structure by itself takes a company only so far.” Larry Bossidy, former Chairman and CEO of Honeywell and Allied Signal 159
  • 160. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Organizational health: extent to which your organization able to adapt to the present and shape the future faster and better than your competitors health encompasses all the human elements required to achieve sustainable success 160
  • 161. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Coca Cola 161
  • 162. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Atari — A Study in Contrast 162
  • 163. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Pixar 163
  • 164. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: General Motors 164
  • 165. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: IBM 165
  • 166. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Enron — A Study In Contrast 166
  • 167. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Lehman Brothers — A Study In Contrast 167
  • 168. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Sport teams that take steps to improve team performance and health create a virtuous cycle of sustained excellence over time World Class Athletes monitor their body fat correct diet fitness regime lifestyle curb habits smoking, drinking and staying up late at night 168
  • 169. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED The Sports Analogy Monitor leading health indicators blood pressure cholesterol heart rate Financial markets DO recognize that health is essential for turning a company’s growth prospects, capabilities, relationships and assets into future cash flows 169
  • 170. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Beyond Performance: Process for Achieving organizational excellence: the 5As Aspire: where do we want to go Assess: how ready are we to go there Architect: what do we need to do to get there Act: how do we mange the journey Advance: how do we keep moving forward 170
  • 171. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Performance Aspire: how to develop a change vision and targets — strategic objectives Assess: how to ID and diagnose an organization’s ability to achieve it’s vision and targets — the capability platform 171
  • 172. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Performance Architect: how to develop a concrete, balanced set of initiatives to improve performance — the portfolio of initiatives Act: how to determine and execute the right scaling-up approach for each initiative in the portfolio — the delivery method Advance: how to make transition from a one- time change to ongoing improvements 172
  • 173. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Health Aspire: how to determine what “healthy” looks like for your organization — the health essentials Assess: how to uncover the root-cause mindsets that drive organizational health — the discovery process 173
  • 174. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Health Architect: how to reshape work environment to healthy mindsets — influence model Act: how to ensure that energy for change is continually infused and unleashed — the change engine Advance: how to lead transformation and sustain high performance from a core of self-mastery — centered leadership 174
  • 175. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED McKinsey’s research of 2,000 executives most companies already know how to keep a close eye on performance it is organizational health that often suffers When these executives were asked where they wished they had more information — more than 65% chose “determining what needs to be done to strengthen the company’s health for the long term.” 175
  • 176. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Why do change programs fail more than 70% of failures driven by poor organizational health negative employee attitudes or employees resistance to change unproductive management behaviors or management behavior does not support change “The soft stuff is always harder than the hard stuff.” Roger Enrico, CEO PepsiCo 176
  • 177. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Determinants of long-term success for McKinsey research internal alignment on direction compelling vision well articulated strategy — meaningful to individual employees supported by culture and climate of the organization 177
  • 178. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Determinants of long-term success for McKinsey research a high quality execution right capabilities effective management processes high motivation 178
  • 179. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Capacity for renewal — organization’s ability to understand interact shape adapt 179
  • 180. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Procter and Gamble 180
  • 181. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Case Study: Telefonica - Spain 181
  • 182. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Transformations are 2.6x more likely to succeed if they have strong involvement from the top of the organization 182
  • 183. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Leadership role making the transformation meaningful — how senior leaders make it personal, openly engage others spotlight successes as they occur 183
  • 184. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Leadership role role modeling desired mindsets and behaviors — leaders show what new behavior looks like encourage employees to adopt it in their own daily work 184
  • 185. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Leadership role building a strong and committed top team — senior leaders making the tough decisions about capability and motivation to make the journey relentlessly pursuing impact — senior leaders rolling up their sleeves and getting personally involved 185
  • 186. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED Indra Nooyi ,CEO PepsiCo: “I had the immigrant feeling arriving in the US… I had to do an extra good job; if it didn’t work out, where was I going to go?” Andy Grove former CEO of Intel — conveys importance of courage and decisiveness by describing his escape from Hungary and determination to make a new life 186
  • 187. Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage Scott Keller and Colin Price CONTINUED John Chambers CEO of Cisco describes growing up with a learning disability to illustrate “how we can overcome anything that comes our way, and why it is so important to treat others as you would want to be treated.” David Novak , CEO of YUM Brands — “They see their CEO and it makes a big company small…(and when they get knowledge directly from their senior leader) they “care more about the company and (they are) more committed.” “Do or do not. There is no ‘try’.” Star Wars Jedi Master Yoda 187
  • 188. Exhibit 1.1 Healthy Companies Are More Profitable EBITDA margin Growth in enterprise value/ book value Growth in net income/sales * Comprised of 2nd and 3rd quartiles Likelihood that companies with strong health profile have above-median financial performance, % 68 48 31 62 52 31 58 53 38 Top Mid* Bottom ×2.0 ×2.2 ×1.5 188
  • 189. Exhibit 3.1 Assessing Organizational Health Ailing Able Direction Creates a strategy that fails to resolve the tough issues Crafts and communicates a compelling strategy, reinforced by systems and processes… …and provides purpose, engaging people around the vision Culture and climate Lacks a coherent sense of shared values Creates a baseline of trust within and across organizational units… …and creates a strong, adaptable organization- wide performance culture Accountability Creates excessive complexity and ambiguous roles Creates clear roles and responsibilities; links performance and consequences… …and encourages an ownership mindset at all levels Coordination and control Establishes conflicting and unclear control systems and processes Aligns goals, targets, and metrics managed through efficient and effective processes… …and measures and captures the value from working collaboratively across organizational boundaries Capabilities Fails to manage talent pipeline or deal with poor performers Builds institutional skills required to execute strategy… …and builds distinctive capabilities that create long-term competitive advantage Motivation Accepts low engagement as the norm Motivates through incentives, opportunities, and values… …and taps into employees’sense of meaning and identity to harness extraordinary effort External orientation Directs the energy of the organization inwards Makes creating value for customers the primary objective… …and focuses on creating value for all stakeholders Innovation and learning Lacks structured approaches to harness employees’ ideas Able to capture ideas and convert them into value incrementally and through special initiatives… …and able to leverage internal and external networks to maintain a leadership position Elite Leadership Provides excessively detailed instructions and monitoring (high control) Shows care towards subordinates and sensitivity to their needs (high support)… …and sets stretch goals and inspires employees to work at their full potential (high challenge) 189
  • 190. Exhibit 1.3 The Five Frames of Performance and Health Performance Health Assess How ready are we to go there? Aspire Where do we want to go? Architect What do we need to do to get there? Act How do we manage the journey? Advance How do we keep moving forward? TRANSFORMATION STAGES Delivery model Change engine Centered leadership Continuous improvement Health essentials Strategic objectives Capability platform Discovery process Portfolio of initiatives Influence model 190
  • 191. Exhibit 2.3 The Practices Underpinning Organizational Health Practice n o i t p i r c s e D n o i s n e m i D Direction Culture and climate Leadership leadership Authoritative Emphasizing hierarchy and managerial pressure to get things done Consultative leadership Involving and empowering employees through communication, consultation, and delegation Supportive leadership Building a positive environment characterized by team harmony, support, and care for employees’welfare Challenging leadership Encouraging employees to take on tough challenges and do more than they thought possible Encouraging honesty, transparency, and open dialogue Open and trusting Internally competitive Emphasizing results and achievement, with a healthy sense of internal competition to drive performance Operationally disciplined Fostering clear behavioral and performance standards, with close monitoring of adherence to those standards Creative and entrepreneurial Supporting innovation, creativity, and initiative taking Setting the direction by creating and communicating a Shared vision compelling, vivid image of what the future will look like Articulating a clear direction and strategy for winning, Strategic clarity and translating it into specific goals and targets Employee involvement Engaging employees in dialogue on the direction of the organization and discussing their part in making it happen Performance contracts Accountability driven by clear objectives and formal, explicit performance targets Consequence management Accountability driven by linking rewards and consequences to individual performance Personal ownership Accountability driven by a strong sense of individual ownership and personal responsibility Coordination and control People performance review Using formal performance assessments, feedback, and tracking to coordinate and control flows of talent Operational management Focusing on operational KPIs, metrics, and targets to monitor and manage business performance Financial management Focusing on financial KPIs and the effective allocation and control of financial resources to monitor and manage performance Professional standards Using clear standards, policies, and rules to set behavioral expectations and enforce compliance Risk management Identifying and mitigating anticipated risks, and responding rapidly to unexpected problems as they arise 4 5 6 7 8 9 10 11 1 2 3 13 14 15 16 17 18 19 20 responsibilities 12 Accountability Accountability driven by clear structure, roles, and Role clarity 191
  • 192. McKinsey on Performance and Health The four archetypes and the practices that drive them Exhibit 3.4 Exhibit 3.4 The Four Archetypes and the Practices that Drive Them Top ten management practices for each archetype Leadership driven Execution edge Market focus Knowledge core 1 Career opportunities Business partnerships Knowledge sharing Talent acquisition 2 Open and trusting Creative and entrepreneurial Customer focus Role clarity 3 Performance contracts Employee involvement Competitive insights Consequence management 4 Inspirational leaders Talent development Government and community relations Rewards and incentives 5 Strategic clarity Internally competitive Financial management Personal ownership 6 People performance review Personal ownership Capturing external ideas People performance review 7 Operational management Bottom-up innovation Process-based capabilities Career opportunities 8 Operationally disciplined Top-down innovation Shared vision Performance contracts 9 Consultative leadership Meaningful values Outsourced expertise Professional standards 10 Consequence management Consequence management Strategic clarity Financial management 192
  • 193. Exhibit 4.5 Focusing on a Few Critical Shifts From transactional… …to relational From silos… …to collaboration “I am responsible for quickly and efficiently meeting the needs my clients express.” “Probing my clients about their financial situation would be prying into their private affairs.” “Account opening is a chore to be done by junior sales staff.” “I am responsible for bringing the best of my company to clients and addressing their needs whether articulated or not.” “I need to understand my clients’ full situation before I can give them the best advice.” “Account opening is potentially the most important client interaction of all.” “My success depends on optimizing my area.” “I know what’s right for my area and no one else can achieve what I can.” “I view other areas as a hindrance— they are incompetent and selfish.” “My success depends on optimizing my company’s results.” “I can learn from others and there is great value in ‘mining the seams’ together.” “There is no ‘they’—I assume that other people are competent and show goodwill.” From blame… …to accountability “The problems we face are beyond my control.” “There is a lack of clarity regarding accountabilities around here.” “I show up at every meeting so I can watch my back.” “If I’m not part of the solution, I’m part of the problem.” “I seek to clarify my and others’ account- abilities if they are unclear.” “I trust others to do what they are supposed to do in a fair manner.” 193
  • 194. Exhibit 6.4 The Three-Level Change Structure Example: energy company To become a highly competitive integrated company, recognized as one ofthe top five energy producers worldwide and as the employer ofchoice in our industry Performance themes Corporate citizenship Collaboration People systems De-bureaucratizing Performance themes Talent review overhaul Cross- business councils Health themes Health themes Vendor consolidation Pricing Learning Level 1 : Transformation headline Level 2 : Performance and health themes Level 3 : Specific initiatives Expanding production Integrating the value chain Maximizing downstream Improving efficiency and safety 194
  • 195. Exhibit 4.2 The Discovery Process Where are we, and what do we want to achieve? What changes in practices do we need to achieve the desired outcomes? What changes in mindsets do we need to make in order to achieve sustainable changes in behaviors? What changes in behavior do we need to breathe life into desired practices? Outcomes (e.g., accountability) Desired state Practices (e.g., clear performance contracts) Behaviors (e.g., ongoing performance dialogue) Mindsets (e.g., “If it is to be, it’s up to me”) Mindsets (e.g., “Keep my head down, watch my back”) Behaviors (e.g., minimal performance dialogue) Current state Practices (e.g., no clear performance contracts) Outcomes (e.g., blame) 195
  • 196. Exhibit 1.4 Barriers to Organizational Change 70% Factors contributing to failure Health- related factors Source: Michael Beer and Nitin Nohria, editors, Breaking the Code of Change, Harvard Business School Press, 2000; Kim S. Cameron and Robert E. Quinn, Diagnosing and Changing Organizational Culture: Based on the competing values framework, Addison-Wesley, 1999; Bruce Caldwell, “Missteps, miscues: Business re-engineering failures have cost corporations billions, and spending is still on the rise,” InformationWeek, 20 June 1994; “State of re-engineering report (North America and Europe),” CSC Index, 1994; Tracy Goss, Richard Tanner Pascale, and Anthony G. Athos, “The reinvention roller coaster: Risking the present for a powerful future,” Harvard Business Review, 1 November 1993; John P. Kotter and James L. Heskett, Corporate Culture and Performance, Free Press, 1992. Efforts failing to achieve target impact Employee resistance to change Management behavior does not support change Inadequate resources or budget Other obstacles 14% 14% 39% 33% 196
  • 197. Exhibit 4.1 Elements of an Institutional Capability “How we act” Raw talent Skills, knowledge, and behaviors Training Access to external skills Cultural norms “How we manage” Organizational structure and roles Decision rights and linkage mechanisms Performance management process Talent management process Knowledge management approach and infrastructure Management system Behavioral system Technical system Performance “What we need in order to create value” End-to-end processes and practices for generating value Supporting tools, procedures, intellectual property Enabling technology Physical assets 197
  • 198. Exhibit 6.5 The Valley of Desolation Starting the pilot Scaling up Telling the story Energy Time Cynics speak out or dig in Local loyalties prevail Much activity but little or no impact Valley of deso l a t i o n 198
  • 199. Exhibit 7.1 The Elements of Centered Leadership Framing Self-awareness Stepping back Shifting perspective Meaning Happiness Core strengths Purpose Engaging Confidence Ownership Taking action Connecting Reciprocity Inclusiveness Sponsorship Maximizing sources Minimizing depletion Sustaining Energizing Personal and professional context 199
  • 200. Exhibit 5.4 The Interactive Cascade Process CEO as author CEO drafts a personally meaningful change story taking on board input from the organization and agreements made with senior team CEO as “teacher,” senior managers as “students” Senior managers participate in an interactive session with peers to listen to, understand, and give feedback on CEO’s story Senior managers as authors, CEO as coach Managers prepare their own versions of the story that are relevant to their units, using the CEO’s story as context and receiving coaching from the CEO as needed Senior managers as teachers, next-level managers as students Senior managers facilitate an interactive story session for their employees (with their supervisors attending at least for the kick-off) Next-level managers as authors, senior managers as coaches …and so on 200
  • 201. High Performance Companies Nitin Pangarkar Principles for companies to use when making day-to-day decisions that will determine their actual strategy Strategic considerations Resource acquisition: discover diamonds among coal to enhance performance (finding undervalued resources or ones which can generate synergy) Resource allocation: build durable assets (create barriers to entry — brand building, technology development, and employee development) Overall business-level strategy: create small wins, replicate several times — cumulative impact of many can achieve big impact 201
  • 202. High Performance Companies Nitin Pangarkar Principles for companies to use when making day-to-day decisions that will determine their actual strategy Strategic considerations Innovation strategy: integrate the knowledge from various stakeholders and partners to innovate Strategic incremental adaptation (External): companies to be clear about their goals and pursue even during a crisis Beware of Strategic incremental adaptation (Internal ): if tweaking strategies companies should be careful not to undermine core elements of current strategy such as commitments to key stakeholders such as employees or customers 202
  • 203. Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  Management: the ability of an organization and its people to perform Design: how management contributes to an organization’s success or failure A Good Design: is a unique strength and competitive advantage 203
  • 204. Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET CONTINUED AGILITYINSIGHTS research over the past 15 years indicates best run organizations have designed management capabilities around 6 benefits Scaling — systems, culture, leadership, people, control Diffusion — strategy, purpose, vision, values, collaboration, relationships Alignment — model, contact, operations, implementation 204
  • 205. Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET CONTINUED AGILITYINSIGHTS research over the past 15 years indicates best run organizations have designed management capabilities around 6 benefits Effectiveness — decisions, rules, routines, tools Efficiency — discipline, cost, quality, productivity Sustainability — capabilities, development 205
  • 206. Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED 3 Overarching Objectives/Deliverables Unlocking a team’s talents rapid multiplication of practices, capabilities and technologies actualization of purpose, strategy and values 206
  • 207. Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED 3 Overarching Objectives/Deliverables Amplification of the team’s impact: growth, innovation, performance future proof-fit of people, organization and context reliable capability to repeat performance 207
  • 208. Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED 3 Overarching Objectives/Deliverables Management with a future-proof design — the competitive advantage relentless discipline and quality without waste reliable capability to constantly renew and develop 208
  • 209. Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED ABILITYINSIGHTS focuses on changing the capacity of the entire organization strong sense of purpose strategy implementation ability to balance speed control stability resilience constant renewal 209
  • 210. Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED ABILITYINSIGHTS programs relate to management assessment & design management = inspiring organization = enabling people = engaging success = peak performance Management with the right design/good design fits its operating context generates high impact 210
  • 211. Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED ABILITYINSIGHTS core competency: assessing and designing, and executing the management design that gets the right things done FAST combines design thinking latest management research highly actionable assessments of intangibles experienced peer-level mentoring 211
  • 212. Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED The 5 Minute Online Unique Experience: AGILITYINSIGHTS Diagnostic reviews management determines what design best fits context to generate high impact uncovers the true drivers of performance identifies untapped potential notes potential barriers 212
  • 213. Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder of AGILITYINSIGHTS.NET  CONTINUED Diagnostic output: unique & customized “Performance Triangle” people — speed and control organization — agility and stability stakeholders — resilience & renewal environment — dynamic capabilities 213
  • 214. Management Design: New Management Workbook for Turbulent Times Lukas Michel Founder AGILITYINSIGHTS.NET  CONTINUED Questions to be asked, answered and action taken People — What is my talents ability to perform? Organization — What is my organization’s ability to innovate? Stakeholders — What is my organization’s ability to grow? Environment — What is my organization’s ability to adapt to a changing context? Management — What is my management’s ability to unlock the organization’s potential? 214
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  • 228. The high performance team 228
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  • 230. Building high performance teams — personal insights & experiences Mark Beliczky The Carlyle Group Pepsico market transformations People selection development — real-time feedback Operational excellence Innovation Team Empowerment Self-lead teams Owning the trade area —performance metrics 230
  • 231. Building high performance teams — personal insights & experiences Mark Beliczky The Carlyle Group CONTINUED Transparent Guiding Principles keep things simple listen/learn be pro-active meaningful specific vs. wandering generality know and truly serve your internal and external customers direct, open, honest & operate with full disclosure 231
  • 232. Building high performance teams — personal insights & experiences Mark Beliczky The Carlyle Group CONTINUED Transparent Guiding Principles this is competition — winning is important team-oriented — getting results through and with others standards are the standards, are the standards set clear performance expectations and goals — measure and track consistency fair and reasonable invest today for future returns 232
  • 233. Building high performance teams — personal insights & experiences Mark Beliczky The Carlyle Group CONTINUED Transparent Guiding Principles participative management coaching/supporting role vs. command/ control right brain/left brain focus KSAA be wise, not simply knowledgeable ability & desire to overcome obstacles “SMART” Where are you headed? How are you going to get there? 233
  • 234. Building high performance teams — personal insights & experiences Mark Beliczky The Carlyle Group CONTINUED Transparent Guiding Principles ask for feedback — respond vs. react in a timely manner err on the side of ACTION vs. inaction willingness to change, feel uncomfortable, put yourself at “qualified risk” — ability to keep on trying even when faced with failure develop your people 234
  • 235. Building high performance teams — personal insights & experiences Mark Beliczky The Carlyle Group CONTINUED Transparent Guiding Principles achieve desired & sustainable results via workable systems results with integrity be passionate in what you do be personally accountable for your actions and accountable to those who serve you take breaks have fun 235
  • 236. 9 things successful people do differently — realistic optimists Dr. Heidi Grant Halvorson, Columbia University Warren Buffet, Berkshire Hathaway Founder & CEO — a realistic optimist "Optimism is a huge asset…We see this in you, Warren. Your success didn't create your optimism, your optimism led to your success.” Melinda Gates of Gates Foundation Realistic optimists believe they will succeed but also understand they have to strategize, put in effort, plan and be persistent in order to overcome any obstacles and get things done 236
  • 237. 9 things successful people do differently — realistic optimists Dr. Heidi Grant Halvorson, Columbia University CONTINUED 9 things successful people do differently Get specific when you set a goal be as specific as possible Seize the moment to act on your goals Know exactly how far you have left to go Be a realistic optimist: thinking things will come to you easily and effortlessly leaves you ill-prepared for the journey ahead, and significantly increases the odds of failure 237
  • 238. 9 things successful people do differently — realistic optimists Dr. Heidi Grant Halvorson, Columbia University CONTINUED 9 things successful people do differently Focus on getting better, rather than being good Have grit — willingness to commit to long-term goals and to persist in the face of difficulty Build your willpower muscle — your self- control “muscle” 238
  • 239. 9 things successful people do differently — realistic optimists Dr. Heidi Grant Halvorson, Columbia University CONTINUED 9 things successful people do differently Don’t tempt fate — if you overtax it you will temporarily run out of steam Focus on what you will do, not what you won’t do 239
  • 240. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman Creating individual accountability is the #1 managerial/leadership challenge facing organizations today The Oz Principle: “only YOU can rise above your circumstances and achieve results you desire" It is the “journey” that empowers you 240
  • 241. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Accountability is an attitude of continually asking “what else can I do to rise above my circumstances and achieve the results I desire” Process: seeing it, owning it, solving it, and doing it Success in business: Choice of getting stuck or getting results 241
  • 242. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED A thin line separate SUCCESS from failure Above the line — SUCCESS sense of reality ownership commitment solutions to problems determined action 242
  • 243. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED ©2004 Partners In Leadership IP, LLC. 40PP.AT.1.a. © 1999-2006 Partners In Leadership IP, LLC. All Rights Reserved. THE OZ PRINCIPLE 243
  • 244. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Below the line — failure or “Victim’s Cycle" excuse making blaming others confusion attitude of helplessness 244
  • 245. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Below the line — failure behaviors wait and see cover your tail tell me what to do finger pointing it’s not my job ignore/deny 245
  • 246. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED ©2004 Partners In Leadership IP, LLC. 40PP.AT.1.a. © 1999-2006 Partners In Leadership IP, LLC. All Rights Reserved. THE OZ PRINCIPLE Wait & See Cover Your Tail Finger Pointing It’s Not My Job Ignore/ Deny Confusion/Tell Me What To Do 246
  • 247. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Accountable work environments apply principles of interdependence and joint accountability spend more time uncovering problems taking risks initiating positive action 247
  • 248. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Accountable work environments learning replaces punishment success replaces failure victimization gives way to accountability 248
  • 249. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Accountable behaviors/attitudes invite feedback no hiding the truth readily acknowledged reality 249
  • 250. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Accountable behaviors/attitudes focus on what you can control/ influence commit 100% to what you are doing own your circumstances and your results 250
  • 251. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Accountable behaviors/attitudes recognize when you fall “below the line” delight in opportunities to make things happen “What else can I do to rise above my circumstances to get the results I want.” 251
  • 252. The Oz Principle: Getting Results Through Individual and Organizational Accountability Roger Connors, Tom Smith and Craig Hickman CONTINUED Gaining the most honest feedback ask for feedback in the right environment seeking honest feedback don’t get defensive listen carefully — ask for clarity express appreciation 252
  • 253. How will you measure your life Dr. Clayton Christensen, Harvard University “Management is the most noble of professions if practiced well." "...the powerful motivator in our lives isn't money; it's the opportunity to learn, grow in responsibilities, contribute to others, and to be recognized for achievements." Frederick Herzberg 253
  • 254. How will you measure your life Dr. Clayton Christensen, Harvard University CONTINUED Three key questions to ask ourselves and where the answers can help frame the purpose to our lives how can I be happy in my career how can I be sure that my relationship with my family is an enduring source of happiness how can I live my life with integrity "...the powerful motivator in our lives isn't money; it's the opportunity to learn, grow in responsibilities, contribute to others, and to be recognized for achievements." Frederick Herzberg 254
  • 255. How will you measure your life Dr. Clayton Christensen, Harvard University CONTINUED "...if you have a humble eagerness to learn something from everybody, your learning opportunities will be unlimited. Generally you can be humble only if you feel really good about yourself."  255