Transcript No Slide Title

Building High-Performance Organizations
Commonwealth Centers
FOR HIGH-PERFORMANCE ORGANIZATIONS
www.highperformanceorg.com
MODULE IV:
LEADERSHIP
FUNCTIONS
BUILDING
HIGH-PERFORMANCE
ORGANIZATIONS IN
THE TWENTY-FIRST
CENTURY
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IV-1
Building High-Performance Organizations
3. According
to whom?
ENV
LEADERSHIP
• Philosophy
• Functions
• Form
STRATEGY
STRUCTURE
SYSTEMS
1. What is it?
WORK
CULTURE
LEADERSHIP
FUNCTIONS
4. Why do
we need to
Stakeholders
be high performance?
Beneficiary
• Strategic Customer Value Analysis (SCVA)
• Higher Moral
Chain
• Vision/Values
 Strategy/Structure/Systems
Purpose
• Suprasystems Integration/Stewardship
• Self Pride
• Learning/Thinking/Changing/Renewing
• Survival
• Enabling/Empowering/Energizing
Partners
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HP
2. How would we know?
5.Right
“What?”
6. How
Good?
7. How
Treat?
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LEADERSHIP FUNCTIONS
LEADERSHIP VS. MANAGEMENT
Leaders and leader/managers distinguish themselves from the
general run of managers in the following ways:
•
•
•
•
•
•
They think longer-term.
They look beyond the unit they head and grasp its
relationship to larger realities.
They reach and influence constituents beyond their
jurisdictions, beyond boundaries.
They put heavy emphasis on the intangibles of vision,
values, and motivation and understand intuitively the nonrational and unconscious elements in the leaderconstituent interaction.
They have the political skill to cope with the conflicting
requirements of multiple constituencies.
They think in terms of renewal -- both personally and
organizationally.
From: John W. Gardner, Leadership Papers, “Number 1: The Nature of Leadership,”
(The Independent Sector, January, 1986), p. 8
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LEADERSHIP FUNCTIONS
“WORK” IS HOLISTIC IN THE NETWORKED TALENT MODEL
Management
Leadership
Skills, Abilities,
and Behaviors
Skills, Abilities,
and Behaviors







Causal Modeling/Systems
Analysis
Performance Planning
Project Management and
Execution
People Development
Plan Implementation,
Monitoring, and Adjustment
Outcome/Results Variance
Analysis
Open Communication

M
Team Skills,
TS

L



T
Task/Technical
Skills, Abilities, and
Behaviors
Abilities, and Behaviors

see slide I-9 for these skills
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Strategic Customer Value
Analysis
Vision/Values to Strategy/
Structure/Systems
Suprasystems Integration/
Stewardship
Learning/Thinking/Changing/
Renewing
Enabling/Empowering/
Energizing

continuously broaden and deepen
task/ technical skills and abilities
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LEADERSHIP FUNCTIONS
“THE WORK OF LEADERSHIP”
1. Strategic Customer Value Analysis (SCVA)




Who are/should be our customers (“beneficiary chain,” “food chain,” “other stakeholders”)
What do they value (want/need/expect) now and in the future?
Who are our “competitors;” implications for us?
What is happening in the larger environment; how might the this affect us (conduct environmental scan, market
analysis, “political” analysis, feasibility review)
2. Vision / Values Connected to Strategy, Structure, and Systems




What does high-performance mean for us, what higher moral purpose are we trying to serve, and what is the
desired future state we are seeking?
Causing a shared vision/values for unit/organization to be formulated, articulated, and lived; must “nest” within
next higher level’s vision/values.
Strategic thinking: mission/niche analysis interacting with “theory of the business” review -- results in a
strategic plan showing direction and need for capacity building -- must be translated into a “tactical”
operational plan (actions matched with resources, goals and objectives, monitoring, corrective actions) -results in “performance.”
The organization’s/unit’s “values” work involves causing the values (leadership philosophy/ individual
behavioral values/operating systems values) to be made actionable (by focusing on required/prohibited
behaviors) -- results in “work culture.”
3. Suprasystems Integration / Stewardship


Gluing the parts of the organization back together to accomplish the vision; creation of mechanisms that align
the parts to form an integrated whole.
Requires a stewardship role from individuals; rising above “turf” to serve the larger whole; linking with others
to address cross-organizational issues; “steward of the whole” versus “owner of the piece.”
4. Learning, Thinking, Changing, Renewing



Personal learning, renewal, growth, and change; requires seeking and using feedback.
Staying “on the cutting edge” individually and organizationally; requires building a “learning organization.”
Best practices / benchmarking / reengineering / continuous improvement.
5. Enabling, Empowering, and Energizing

Teaching, mentoring, motivating, and bureaucracy busting; providing knowledge, skills, and information
required to make good decisions; being proactive; removing barriers to empowerment.
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LEADERSHIP FUNCTIONS
1. Strategic Customer Value Analysis (SCVA)




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Who are/should be our customers
(beneficiary chain, food chain, other
stakeholders)?
What do they value (want/need/ expect)
now, and what will they value in the
future?
Who are our competitors; implications for
us?
What is happening in the larger environment, and how might that affect us?
Building High-Performance Organizations
“Other
Stakeholders ”
Analysis
LEADERSHIP FUNCTIONS
STRATEGIC CUSTOMER VALUE ANALYSIS
The Case Of The U.S. Geological Survey
W
DC M
OC
BC
XXX
PART C
AH
PART B
D of I
“The Food Chain”
PRES
“Marketing”
PART D





Airlines
Utilities
Analysis
P
P
P
P
“Key Products &
PEERS
Services”
PART A
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Review of
Competition
Policy Makers
Environmentalists
Education/Science
State & Local
Other Federal
Private Sector
XXX
“Partnership”
S.J.A.
B.R.
“Beneficiary Chain”
CONGRESS

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LEADERSHIP FUNCTIONS
2. Vision / ValuesStrategy / Structure / Systems




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What does high-performance mean for us, what higher moral
purpose are we trying to serve, and what is the desired future state
we are seeking?
Causing a shared vision / values for unit / organization to be
formulated, articulated, and lived; must “nest” within next higher
level’s vision/values.
Strategic thinking: mission/niche analysis interacting with “theory
of the business” review -- results in a strategic plan showing
direction and need for capacity building -- must be translated into a
“tactical” operational plan (actions matched with resources, goals
and objectives, monitoring, corrective actions) -- results in
“performance.”
The organization’s/unit’s “values” work involves causing the
values (leadership philosophy / individual behavioral values /
operating systems values) to be made actionable (by focusing on
required/prohibited behaviors) -- results in “work culture.”
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LEADERSHIP FUNCTIONS
LEADERSHIP AND VISION
“Great leaders...inspire their followers
to high levels of achievement by
showing
them
how
their
work
contributes to worthwhile ends. It is an
emotional appeal to some of the most
fundamental needs - - the need to be
important, to make a difference, to feel
useful, to be part of a successful and
worthwhile enterprise.”
Warren Bennis and Bert Nanus, Leaders
(NY: Harper & Row, 1985)
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LEADERSHIP FUNCTIONS
THE “INTANGIBLES” OF VISION, VALUES, AND MOTIVATION
“If you want to move people, it has
to be toward a vision that’s
positive for them, that taps
important values, that gets them
something they desire, and it has
to be presented in a compelling
way that they feel inspired to
follow.”
Martin Luther King
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LEADERSHIP FUNCTIONS
DEVELOPING A SHARED VISION AND SET OF
ORGANIZATIONAL VALUES
These describe the ultimate or “end” values
that the organization is seeking to achieve;
provide a test of an organization’s worth in
society; answer the questions: Why are we
doing what we are; what is the higher moral
purpose the organization is trying to serve?”
A statement of philosophy explaining the
assumptions upon which management
actions are based and judged; helps define
the work culture; answers the questions:
What do we believe about the nature of
people, how people choose to be motivated,
the distribution of knowledge and creativity,
and the nature of work?
These help define the “human
side” of the organization’s
work culture; provide a
standard for judging
interpersonal behavior;
answer the questions: “How
are we going to treat each
other and, by extension, our
customers?”
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ULTIMATE
OR “END”
VALUES
LEADERSHIP
PHILOSOPHY
INDIVIDUAL
BEHAVIORAL
VALUES
OPERATING
SYSTEMS
VALUES
These three boxes are “means” values
SHARED
VISION
MISSION/
NICHE
THEORY
OF THE
BUSINESS
STRATEGIC
PLAN
VISION: an image of our
desired future state; a direction
for the organization; it must
inspire members of the organization and galvanize them into
coordinated action directed at
a common future; units at each
level must “nest” into the
higher level vision; answers the
questions: What is “high
performance” for us; according
to whom; and how would we
know if we were? What is our
special or unique niche? Who
would miss us if were were
gone? A shared vision allows
us to proceed to a discussion of
mission/niche, theory of the
business, etc.
These define the “technical side” of the
organization’s culture; provide a standard
for judging the organization’s strategies,
structures, systems, and work processes;
answer the question: What values should
guide our operating processes?
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LEADERSHIP FUNCTIONS
DEVELOPING A SHARED VISION/VALUES AT ARLINGTON COUNTY GOVERNMENT
VISION
“Arlington County is a diverse community of dynamic, secure residential and commercial
neighborhoods; a learning, caring, participating community in which each person is important.”
From the community visioning document:“THE FUTURE
OF ARLINGTON:The Year 2ooo and Beyond
We, the employees of Arlington County, are committed to developing a far-sighted,
responsive organization which will build partnerships with all people of the
community to create an environment which enables Arlington residents, businesses,
employees, and visitors to achieve their individual and collective goals and
aspirations.
LEADERSHIP PHILOSOPHY
We believe that people want to do the best job possible. When all of us share
responsibility for creating a work environment with clear goals, mutual support, and
opportunities for continuous learning, Arlington County can best achieve its goals.
We will realize our full potential through teamwork, respect for each other, sharing
information, and support for individual creativity and initiative.
PRINCIPLES OF GOVERNMENT
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• High Quality Service
• Empowerment
• Commitment to Employees
• Teamwork
• Diversity
• Leadership
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LEADERSHIP FUNCTIONS
THE ROLE OF VISION / VALUES IN THE
PHOENIX POLICE DEPARTMENT
Before you do anything, ask yourself
these questions:
Is it right for the community?
Is it right for the department?
Is it ethical and legal?
Is it consistent with our values
and policies?
Is it something I’m willing to be
accountable for?
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LEADERSHIP FUNCTIONS
THE ROLE OF VISION / VALUES IN THE
continued
PHOENIX POLICE DEPARTMENT
If the answers to these questions
are “YES,” don’t ask permission;
JUST DO IT!
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LEADERSHIP FUNCTIONS
USE OF VISION / VALUES TO BOUND EMPOWERMENT
The Case of U.S. Navy Shipyards
“07” -- Admiral in Charge of SY’s
Customer Value
Project Manager
APM
Project
Team
APM
APM
APM
APM
APM
“Profit”
FP = ICP/Revenue
Quality = DFQ + EQ
Quality
CV = SCH\REL
Values = Leadership Philosophy
Behavioral Values
Values
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Financial Performance
Loss
“100” -- Shipyard Commander
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LEADERSHIP FUNCTIONS
VISION / VALUES TO STRATEGY/STRUCTURE/SYSTEMS
(moving from vision to performance and values to work culture)
VISION
DO WE HAVE THE
RIGHT __________ ?
End Values/Higher Moral
Purpose/Desired Future State
•PEOPLE
– Right competencies
– Development process
– Feedback/Coaching
(360o)
– Resolution Process
(Performance
Appraisal)
(Outcomes)
Strategic Thinking:
{
• Customers
• Key Products &
Services
• Business Strategy
• Org. Structure
• Work Processes
• Support Processes
• Equipment, Facilities,
Technology,
Information, etc.
PM
• Mission/Niche
• Theory of the Business
PM
Leadership Philosophy
Individual Behavioral Values
Operating Systems Values
Means Values
(strategy/structure/systems)
Behaviors
Prepare Business Case
Strategic Planning:
• Set Direction
• Capacity Building
PM
Prepare Business Plan
Tactical/Operational Plan
• Action Plan
• Resources Plan
PERFORMANCE
(Strategic Goals
and Objectives)
+
~~~
~~~
~~~
~~~
~~~
~~~
PM
Feedback / Coaching (360o)
PM (Input/Thro- Resolution Process
Monitoring & Corrective Action
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VALUES
ughput/Output)
(Discipline System)
PM
WORK CULTURE
PM
= Performance Measures
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STRATEGIC THINKING IN THE HPO MODEL
MISSION (“niche”)
 What’s our “niche?” What are we -- in
our organization/unit -- going to take
responsibility for? Which other
organizations must we partner with
to be successful?
 Are we doing the right things for the
right customers?
 Are we being effective?
 H.P. Indicators:


“Design and Features” Quality
Customer “Value”
 Key Services and Product Analysis

Have we correctly identified the
services and products we need to
deliver?
 Strategic Customer Value Analysis



Have we correctly identified who our
customers are and who they should
be? Now and in the future?
Have we partnered with our
customers to determine what they
want/ need, now and in the future?
Do we understand the “food chain”
vs “beneficiaries?”
 Environmental Scanning
 Market Analysis
 Feasibility Review

Understanding the “politics” of the
environment
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interaction
Strategic Thinking
THEORY OF THE BUSINESS
 What do we need to do (i.e., what strategies,
structures, and systems do we need) to
accomplish our vision?
 Are we doing things right? (right process/
done right?
 Are we being efficient?
 H.P. Indicators:

•Examination of
Core Assumptions/Paradigms
•Creativity/Creative Thinking
•Causal Reasoning
•Systems Analysis
and Thinking
•Core Competencies Analysis
•Best Practices
Review; Benchmarking
•SWOC/T Analysis
•Force Field
Analysis

“Execution” Quality
Financial Performance
 Strategy
Do we have the right “business” approach/causal
model?
 Business Process Redesign (BPR)/Reinvention
 Activity Based Costing (ABC)/ Reengineering
 Structure:
Are we structured correctly?
 Reductionist Approaches: (e.g., business
center” functional analysis/”chunking”
 Integrating Approaches: (e.g.., matrix
structure, project management, “partnering”
with clients/others)
 Systems:
Do we have systems which are aligned and
supportive?
 Right work processes (TQM/CPI)
 Right work management and control systems
 Right support systems: including systems that
yield the right people (skills, competencies,
attitudes, behaviors); information; technology;
financial/ procurement support; facilities;
equipment; technical support
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LEADERSHIP FUNCTIONS
FOUR TYPES OF MANAGERS
ACCORDING TO GE’S JACK WELCH
SHARES THE VALUES
(participative management;
empowerment and support)
TYPE 3
More difficult decision:
second chance, new location
DOESN’T MEET
TASK COMMITMENTS
TYPE 2
Tough but clear decision:
OUT
TYPE 1
Easy, clear decision:
onward and upward
TYPE 4
MEETS TASK
COMMITMENTS
Toughest decision:
OUT
DOESN’T SHARE
THE VALUES
(autocratic management;
control and coercion)
Adapted from Jack Welch’s “Letter to Stockholders,” GE Annual Report, January 1991
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LEADERSHIP FUNCTIONS
DISCRETIONARY EFFORT:
THE IMPORTANCE OF A POSITIVE WORK CULTURE
1870 - 1970
Amount of
Worker
Discretion
Amount of
Management
Directed Work
The period of American
industrialization from 1870
to 1970 was characterized
by management determination and specification (“scientific management”), routinized work, minimal worker discretion, pay as the
primary worker motivator,
and compensation tied to
piecework.
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1970 - PRESENT
In recent years, two trends
in the kinds of jobs held by
most Americans -- the move
from blue-collar to whitecollar jobs and from jobs in
industry to jobs in service/
information -- have increased the amount of discretion
held by workers. In the
absence of a positive work
culture, technically trained
employees tend to withhold
discretionary effort.
Amount of
Worker
Discretion
Amount of
Management
Directed Work
Adapted from Daniel Yankelovich and John Immerwahr, Putting the Work Ethic to Work
(New York: The Public Agenda Foundation, 1983)
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LEADERSHIP FUNCTIONS
3. Suprasystems Integration / Stewardship
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
Gluing the parts of the organization back
together to accomplish the vision; creation of
mechanisms that align the parts to form an
integrated whole.

Requires a stewardship role from individuals;
rising above “turf” to serve the larger whole;
linking with others to address cross-organizational issues; “steward of the whole”
versus “owner of the piece.”
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LEADERSHIP FUNCTIONS
4. Learning, Thinking, Changing, Renewing
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
Personal learning, renewal, growth, and
change; requires seeking and using
personal feedback.

Staying “on the cutting edge” individually
and organizationally; requires building a
“learning organization.”

Best practices / benchmarking / reengineering / continuous improvement.
Building High-Performance Organizations
LEADERSHIP FUNCTIONS
THE FOUR STAGES OF LEARNING
Unconscious Competence
“don’t know you know”
Conscious Competence
“know you know”
ENV
Shift
Conscious Incompetence
“know you don’t know”
Unconscious Incompetence
“don’t know you don’t know”
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RENEWING: ORGANIZATIONAL LIFECYCLES
Stable
Prime
Aristocracy
Performance
Premature
Aging
Unfulfilled
Entrepreneur
Adolescence
Founder or
Family Trap
Go-Go
Infant
Early
Bureaucracy
Bureaucracy
Infant
Mortality
Courtship
Death
Affair
Growing
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Aging
From: Ichak Adizes, Corporate Lifecycles: How and Why Corporations Grow and Die
and What to Do About It (Englewood Cliffs, NJ: Prentice Hall, 1988)
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RENEWING: ORGANIZATIONAL LIFECYCLES
Entrepreneurial




During this stage, an
individual has an idea
and sets up a small
business
As the business
grows, friends,
relatives and others
join the company
Motivation remains
high
However, if the business is to flourish,
attention must be
paid to planning,
organization and
basic administrative
functions
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Administrative



During this stage,
an executive is
typically hired with
strong organization
and planning skills
Systems and procedures are routinized
and specific goals
and objectives are
established
A key characteristic
of this phase is that
realistic risk-taking
by subordinates is
both encouraged
and rewarded
Bureaucratic





Organizations reaching this stage of
development have
become calcified
Change is seen as
a threat
Procedure has triumphed over
substance
Employees are more
concerned with their
own comfort than
with meeting the
needs of their
customers -- both
internal and external
Typically, cover-yourbackside (CYA)
practices are evident
Building High-Performance Organizations
LEADERSHIP FUNCTIONS
5. Enabling, Empowering and Energizing
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
Teaching and mentoring; motivating
and bureaucracy busting;

Providing knowledge, skills, and
information required to make good
decisions;

Being proactive;

Removing barriers to empowerment.
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ENABLEMENT: THE KEY TO EMPOWERMENT
EMPOWERMENT
(Level of Personal and
Organizational Power)
High
Loose
Cannons
Entrenched
Bunkers
Low
Low
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Fully
Empowered
Caged
Eagles
High
ENABLEMENT
(Level of Competency in
Power and Autonomy)
Robert Barner, “Enablement: The Key to Empowerment,” Training & Development,
American Society for Training and Development (June 1994), p. 33.
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LEADERSHIP FUNCTIONS
THE IMPORTANCE OF ENABLING IN EMPOWERMENT
“I know of no safe depository of the
ultimate powers of a society but the
people themselves, and if we think them
not enlightened enough to exercise their
control with a wholesome discretion, the
remedy is not to take it from them, but to
inform their discretion.”
Thomas Jefferson, 1820
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LEADERSHIP FUNCTIONS
THE IMPORTANCE OF ENABLING IN EMPOWERMENT
“If you empower dummies,
you get bad decisions
faster.”
Rich Teerlink, CEO, Harley-Davidson, quoted
in Fortune, August 22 1994, p. 20.
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LEADERSHIP FUNCTIONS
ENABLING, EMPOWERING, AND BUREAUCRACY BUSTING AT GE
“It’s open season on bureaucracy, autocracy, and the
waste and nonsense that grow
in any large institution.”
Jack F. Welch, Jr., Chairman and CEO,
General Electric Company
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LEADERSHIP FUNCTIONS
ENABLING, EMPOWERING, AND BUREAUCRACY BUSTING AT GE
“For 25 years, you've paid
only for my hands when you
could have had my brain for
nothing.”
A union president to Jack F. Welch, Jr., Chairman and CEO
of General Electric Company, at an employee meeting
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LEADERSHIP FUNCTIONS
WHY LEADERSHIP FUNCTIONS ARE NOT GETTING DONE IN MOST ORGANIZATIONS
CONSEQUENCES DELIVERED
More
Significant
Less
Significant
IMPACT OF
CONSEQUENCES
Near-term
Task / Management
1st
Leadership
LAST
QI QII
QIII QIV
2nd
Task / Management
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Longer-term
3rd
Order in which
the four
quadrants are
most often
handled
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LEADERSHIP FUNCTIONS
WHY LEADERSHIP FUNCTIONS ARE NOT GETTING DONE IN MOST ORGANIZATIONS
CONSEQUENCES DELIVERED
More
Significant
Less
Significant
IMPACT OF
CONSEQUENCES
Near-term
Longer-term
Task / Management
QI QII
QIII QIV
Eliminate unneeded
QIII and QIV work
to gain time for QII
Management \ Task
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Leadership