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Diagnostic Resource Package. Purpose The following worksheets have been designed to help you assess the health of your organization. The twelve items that follow cover strategy, change and leadership issues that are vital to building a high-performance organization.
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Purpose The following worksheets have been designed to help you assess the health of your organization. The twelve items that follow cover strategy, change and leadership issues that are vital to building a high-performance organization. Emphasis here is on “fast diagnosis” and being “roughly right” vs “smart talk” and high level McKinsey like analyses not grounded in “live issues”. In sum, my assumption is that executive education programs should help managers identify levers for change and taking action.
The Five Elements Of Strategy This elegant framework simplifies strategic thinking and implementation to five basic elements. The elements on the vertical axis concern strategic thinking and positioning, while those on the horizontal axis concern the execution of the strategy.
The Five Elements Of Strategy Arenas: Where will we be active? Staging: What will be our speed and sequence of moves? Economic logic: How will we obtain our returns? Vehicles: How will we get there? Differentiators: How will we win in the marketplace?
Execution IQ This framework looks at strategy execution in terms of three related areas to help executives focus on potential problem areas • Clear Intent • Is the thinking behind the strategy clear and simple? • Does the top team share this understanding and support it? • Are there ways to make the strategy actionable to the entire organization? • Supporting Actions • Are there initiatives and projects to advance the strategy? • Do the plans include clear accountabilities, realistic timelines, adequate resources, and defined rewards and penalties for execution? • Disciplined Tracking • Does the organization have mechanisms for tracking progress on key project or strategy drivers? Are key strategy issues built into management meetings for problem definition and resolution?
Structuring Critical Jobs To Implement Strategy Having the right strategy is a solid foundation for success, but if the most important jobs in a firm are not properly structured, the strategy is likely to fail. The following framework provides a way of looking at each key job and making adjustments to either narrow or widen the scope of the job, depending on the firm’s strategy. The framework uses four factors for fine-tuning each position to enhance execution of the strategy.
What Every EmployeeNeeds To Know • CONTROL: What resources do I control to accomplish my tasks? • ACCOUNTABILITY: What measures will be used to evaluate my performance? • INFLUENCE: Who do I need to interact with and influence to achieve my goals? • SUPPORT: How much support can I expect when I reach out to others for help? Executives must adjust the span of control for each key position and unit on the basis of how the company delivers value to customers
Example: Wal-Mart’s Span Of Control For Two Key Positions Wide Many Resources Narrow Few Resources The Strategic Logic • To ensure standardized operations, the store manager’s control is limited • To promote the implementation of best practices, the merchandising manager has a wider span of control Corporate Merchandising Manager Store Manager
Getting The Spans Right For Each Individual Position Wide Many Resources Narrow Few Resources Span Of Control Measures Allow Many Trade Offs Measures Allow Few Trade Offs Span Of Accountability Span Of Influence Interactions Across Units Interactions Within Unit Strong commitments of help from others No commitments of help from others Span Of Support These settings for a marketing and sales manager at a software firm show a narrow span of control and a wide span of accountability, showing the firm wants entrepreneurial behavior. A reasonable span of influence ensures collaboration with colleagues outside his unit to offset a low span of control. Company policy encourages a wide span of support to back entrepreneurial initiatives. The spans are paired as shown in the diagram to depict lines of available resources (control and support) and the demand for resources (accountability and influence). The intersection of the lines depicts a job that is roughly in balance between resources and demand for resources.
McKinsey’s Five ‘Must Do’ Levers For High Performance This framework is based on research of more than 300 high performing organizations, all of which had in place strong performance relative to five factors that McKinsey has labeled as ‘Must Do’ elements for creating and sustaining high performance. While all are important, most firms use one or two levers more frequently than the others.
Four Conditions For Sustainable Change Achieving sustainable change is one of the toughest challenges executives undertake. The following model lays out four conditions that should be in place for change efforts to take hold and succeed. The model helps executives to plan and diagnose change efforts by characterizing the absence of any one of the conditions.
Four Conditions For Sustainable Change A Clear Shared Vision Capacity for Change Pressure for Change Actionable First Steps = Sustainable Change + + + Capacity for Change Pressure for Change Actionable First Steps = A fast start that fizzles + + + A Clear Shared Vision Pressure for Change Actionable First Steps = Ambitions frustrated + + + A Clear Shared Vision Capacity for Change Actionable First Steps = Bottom of the “In” Box + + + A Clear Shared Vision Capacity for Change Pressure for Change = Haphazard efforts, false starts + + +
Understanding The Nature Of The Needed Change And The Proper Tools For Achieving It This model depicts change efforts on a continuum of difficulty. Operational tweaking is relatively simple to undertake, but business transformation in light of industry paradigm shifts is much more difficult. The model also helps executives to focus on the kinds of tools that are appropriate for the change being undertaken.
If Change Is Needed,How Deep A Change? Operational: Doing the right things, but need to do them better. No change to mission, values strategy Strategic: Fundamentals are right. But need to refocus. Possible changes to objectives and strategies, possibly mission Cultural: Need to change thinking and actions. Change, vision, values and leadership Paradigm: Need to re-create the business, or face oblivion. Redefine the entire enterprise Difficulty
What Are The Right Tools? Focus On Efficiency • Operational • Restructure • Re-engineer • Downsize • Strategic • Improve planning • Re-structure product portfolio • Realign facilities/processes • Cultural • Change leadership • Change vision and values • Change performance drivers • Paradigm • Redefine the business • Change definition of success Focus On Effectiveness Focus On Attitudes/Beliefs Focus On Survival
Examining Leadership Capacities With the following model, our focus shifts from the organization to the individual executive. In the first model of this section we look at three attributes that comprise top performing executives and give you an opportunity to grade yourself and develop a plan for maximizing strengths and/or improving.
Gravitas A shorthand list of critical skills necessary for an effective executive: 1. Hunger Hunger is the marriage of imagination to ambition, the desire to accomplish greatness, and the will to struggle to realize goals. 2. Speed Speed is the capacity to learn quickly (especially from one’s mistakes), to master and retain relevant material, to reflect, to see the same set of facts in a different framework. 3. Weight Weight concerns how someone carries his or her authority, accepts the decisions of superiors, listens to the truth from subordinates without defensiveness, takes action that will command respect and follow through.
For your current job, rate the relative importance of hunger speed and weight, and then rate yourself--which of the three factors is your strong suit, and which is your low point? Are your strengths matched to those of your job? What will you commit to doing to get better?
General Electric’s 4E’s Of Leadership Under Jack Welch, General Electric was renowned for selecting and developing strong business leaders. Welch looked for some simple criteria and used them to screen the people he wanted to keep and develop. Welch’s model has a heavy focus on execution.
The 4E’s Of General Electric LeadersUnder Jack Welch • ENERGY: Enormous personal energy--strong bias for action • ENERGIZER: Ability to motivate and energize others. Infectious enthusiasm to maximize organization potential • EDGE: Competitive spirit. Instinctive drive for speed/impact. Strong conviction and courageous advocacy • EXECUTION: Deliver results Values and performance critical to success
Topgrading Jack Welch used the 4E’s and a rigorous talent evaluation system to constantly upgrade the executive talent in GE. This systematic review of talent, coupled with on-going development of high-potential talent (and the weeding out of poor performers) has been labeled as Topgrading. In the diagnostic that follows, you have the opportunity to evaluate how well you are doing at making sure your team and your business have the best people on board.
Topgrading Worksheet Topgrading is about identifying the key jobs in a firm, knowing the competencies that are need for success in the position, and assessing all of the people as either ‘A Players’--the best who should be rewarded and retained; B Players--those who meet job requirements and could be coached to a higher level, and ‘C Players’--those who should be moved to other jobs within the firm where they are more likely to become at least B Players, or, if not, released. Topgrading criteria are also a factor in hiring.
Talent Management Talent management is about putting the right people in the right places and keeping them over the long haul. To retain top talent the most important factor is to become a winning organization. Finding talented people from within the organization requires systematic and strategic searching, and thus a great deal of time. Weeding out non-performers should take absolutely no longer than 12 months.
Example Of A People Evaluation Matrix • Potential • Can be simply ‘has ability to move 2 levels up’ • Can explicitly include traits such as leadership, intelligence, values • Performance • Based on performance evaluation rating, A/B/C rating or quintiles • Emphasizes actual results/achievements, since competencies are captured by the potential axis
Favor Doers • The simplest thing a leader can do to build an organization that executes is to favor ‘doers’--people who get things done • Characteristics of doers: • They energize other people • They are decisive on tough issues • They get things done through others • They follow through and track what they delegate
Consequence Management • A McKinsey study found that top performing firms manage under-performers very differently from average and below average firms • Top performing firms create an environment where under-performers are given fewer second chances • Peer pressure is constructively and actively used to encourage marginal and under-performers to self-select out • Clear and consistent under-performers are simply asked to leave • As a result, complacency is reduced and the right people are matched to appropriate jobs
Roadblocks To Driving Out Under-performers • The leader has no first-hand knowledge of the situation because he is not involved • He or she lacks the courage to deal with poor performance • He or she is comfortable with, or loyal to, the person in question • In sum: Poor performers can hang on due to a lack of personal commitment by the leader
Diagnostic: Is The Leadership Team Ready To Lead? Each member of the senior team should answer the questions below and score them in the box to right of each question as follows: 5=strongly agree; 4=agree; 3=unsure; 2=disagree; 1=strongly disagree
Diagnostic: Is The Leadership Team Ready To Lead? Each member of the senior team should answer the questions below and score them in the box to right of each question as follows: 5=strongly agree; 4=agree; 3=unsure; 2= disagree; 1=strongly disagree
Your Task: In light of what you have learned over the past two days, what things could you work on to make yourself a better leader? Think in terms of the next 100 days as your window of opportunity. What I would work on Notes: Expected payoff Notes: What I need to stop doing Notes: Actions I will take Notes:
