Transcript Six types of customer

Three types of organisation
Those that make things happen
Those that watch things happen
Those that wonder what happened
Three rules for making an
organisation great
Better before cheaper
…compete on differentials other than price
Revenue before cost
…prioritise increasing revenue over decreasing cost
There no other rules
…so to change anything you must follow rules 1 and 2
Three lessons we need to learn from success
When we succeed, we tend to give too much
credit to our talents, our model, or strategy,
and too little to external factors and luck.
Success can make us so overconfident that
we believe we don’t need to change anything.
We have a tendency not to investigate the
true causes of good performance.
Source: Gino and Pisano
Three leadership strategy questions
What products and services should we offer and not
offer?
What markets and types of customer should we
service and not service?
How are we going to win?
Source: Cokins
Three reasons people oppose
change long-term
They don’t have fundamental personal competencies
They don’t want to learn
They aren’t actively committed to the cause
Source: Elash
Three key issues on improving
corporate performance...
Being different (and better) gets you noticed
It takes very little to be better than the rest
Most organisations won’t do what little it takes to be
different to, and better than the rest
Three types of change
Developmental change
- improvement of an existing situation
Transitional change
- implementation of a new state: management of the
interim transition state over a controlled period of time
Transformational change
- emergence of a new state, unknown until it takes
shape out of the remains of the chaotic death of the
old state: time period not easily controlled
Source: Ackerman
Three personal needs in times of change
Control
Inclusion
Openness
Source: Teamtechnology.com
Three stages in an improvement journey
Preparation
Implementation
Embedding
Four components of corporate culture
Values
Heroes
Rites
Rituals
Four ways to kill good ideas
Delay
Fear mongering
Confusion
Ridicule
Source: John Kotter
Four blockages to organisational change
Ignorance – fear of the unknown
Lethargy – insufficient pace and urgency
Committees – stodgy bureaucracy
Inflexibility – aversion to risk or learning
Source: John Kotter
Four elements to the balanced scorecard
The financial perspective
The internal business perspective
The innovation and learning perspective
The customer perspective
Source: Kaplan and Norton
Four measures from the balanced scorecard
High quality products and services
Motivated and skilled employees
Responsive internal processes
Innovation and productivity
Source: Kaplan and Norton
Four considerations when
outsourcing work
Efficiency
Cost
Flexibility
Capability
Four organisational characteristics
Organisations are:
Complex
Surprising
Deceptive
Ambiguous
Source: Shepko and Douglas
Four external factors to consider when
planning strategic change
P olitical
E nvironmental
S ocio-demographic
T echnological
Four parts to the TORI model
T
O
R
I
rust
penness
espect
nterdependence
Four stages of the change process
Denying
Dodging
Doing
Sustaining
this does not affect us
ignore this, don’t get involved
this is very important, we have
got to do it now
we have a new way of moving
forward
Source: Rashford and Coghlan
Four essentials for change
Pressure for the change
A clear, shared vision
Capacity for change
Action
Source: UK Govt office South west
Four factors for enduring
organisational success
Happiness
Achievement
Significance
Legacy
do people enjoy being here?
have we really mastered real
problems?
does our product or service create real
value for others?
is success being maintained by
investing in people, innovation,
customer needs and systems?
Source: Nash and Howard
Crosby’s four absolutes of
quality management
Conformance to requirements
Prevention not appraisal
Zero defects
Measuring the cost of non-conformance
Source: Phillip Crosby
Four reasons change management fails
Lack of consistent leadership
Demotivated staff kept in the dark
Lack of capacity: budget cuts, no spend-to-save policy,
short term approach to investment,
stressed staff working hard to stand still
Lack of initiative to ‘do something different’
Source: UK Government Office South West
As an organisation, what are our...
S trengths
W eaknesses
O pportunities
T hreats
The four stages of
change
Shock
Avoidance
Acceptance
Adaptation
Four stages to business process management
Strategise
Plan
Monitor and analyse
Take corrective action
Source: Frolick
Four options when change is needed
Appease
Accommodate
Challenge
Confront
Source: Andrew Gibbons
Four types of organisational orientation
Role orientation
Task orientation
People orientation
Power orientation
Source: Roger Harrison
Four reasons organisations
are vulnerable
Ignorance
Inflexibility
Indifference
Inconsistency
Source: Paul Light
Four characteristics of real change
Scale
How much of the organisation will be affected?
Magnitude
By how much will it shift the current status quo?
Duration
How long will it take?
Strategic
How prepared are we for resistance, problems
Importance and setbacks? Do we have the leadership?
From: Jones, Aguirre & Calderone
Five features of a learning organisation
Systematic problem solving
Experimentation with new approaches
Learning from their own experience & past history
Learning from the experience & past history of others
Transferring knowledge quickly and efficiently
throughout the organisation
Source: Garvin
Five stages to organisational maturity
Uncertainty
Awakening
Enlightenment
Wisdom
Certainty
Source: Philip Crosby
Five steps to improving
organisational efficiency
Sort
Set in order
Shine
Standardise
Sustain
Five ways organisations get stuck
The suppressed organisation
The hysterical organisation
The knowing and angry organisation
The frightened organisation
The task organisation
Source: Critchley and Casey
Five parts to the PRIDE model
P
R
I
D
E
eople
esponsibility
nvolvement
evelopment
xcellence
Five requirements for successful change
Shared mind-set the right culture to reach your goals
Competence
the required knowledge skills and attitudes
Consequence
appropriate measures, rewards, incentives
Governance
structure, communications systems, policies
Capacity for
change
Leadership
the ability to improve work processes, to
change, and to learn
the quality of leadership to achieve your
goals
From: Ulrich
Senge’s five disciplines
Shared vision
Mental models
Team learning
Personal mastery
Systems thinking
Five forces that shape competition
Threat of new entrants
Bargaining power of buyers
Bargaining power of suppliers
Threat of substitute products or services
Rivalry amongst existing competitors
Source: Porter
Five principles of change management
Always involve and seek the support of all affected
Really understand where you are starting from
Have clarity of outcomes with specific measures
Plan each stage of the process in measurable steps
Communicate early and often - don’t pull surprises
From: Alan Chapman
Five indicators of readiness for change
History of past change experiences
Clarity of expectations
Origin of driving issues
Support of top management
Compatibility with organisational goals
Source: Schoonover
Five elements of the vicious cycle of
organisational failure
No time for reflection, planning and learning
No improvement in design and implementation
Increasing need to do something
Increasing failure and unplanned consequences
Go back to the top and start again
Source: UK Government Office South West
The change six pack
Establish change imperative
Build the leadership and strategy
Implement the change
Consolidate the gains
Sustaining the new culture
Establish the change imperative
Source: Michael Jarrett
Six characteristics of the
‘dream organisation’
You can be yourself
You’re told what’s really going on
Your strengths are magnified
The organisation stands for something meaningful
Stupid rules don’t exist
Source: Goffee and Jones
Benchmarking: six categories of
organisational effectiveness
\
World class
Potential winners
Vulnerable
Promising
Room for improvement
Could do better
Source: Hanson
Seven issues with measuring
organisational performance
We are not sure:
What the key problems are
What is really happening
What we want
If we have the resources needed
Who is supposed to do what
How to get what we want
How to determine if we have succeeded
Seven McKinsey ‘S’ framework
Structure
Systems
Style
Shared values
Staff
Skills
Strategy
Source: McKinsey and Company
Seven ways leaders prepare for change
Pick up on environmental signals
Be energised about the future
Cut through complexity, get to the essence of all key
issues
Set clear parameters
Provide context and shared language
Identify and engage significant stakeholders
Tap into the best ideas wherever their source
Source: Tichy and Bennis
Seven indicators of
organisational adaptability
Optimism
Self-assurance
Innovation
Collaboration
Purpose
Structure
Proactivity
Source: David Miller
Eight elements to the
Business Excellence Index
Leadership
Delight the customer
Customer focus
Management by fact
Process performance
People-based performance
Continuous improvement
Source: Kanji
Eight characteristics of excellence
Leadership
Autonomy
Control
Involvement
Zero basing
Market orientation
Innovation
Integrity
Source: Clutterbuck and Goldsmith
Key issues for
managing change
Vision and clarity
A free flow of two way communication
Clear roles and responsibilities
More leaders than managers
Handling resistance
Learning for all
Courageous patience
Momentum
Peters and Waterman’s 8 attributes of
organisational excellence
A bias for action
Simple form/lean staff
Close to the customer
Autonomy and entrepreneurship
Hands on, value driven
Stick to the knitting
Productivity through people
Simultaneous loose/tight qualities
Eight errors when creating lasting change
Not establishing a great enough sense of urgency
Not creating a powerful enough guiding coalition
Lacking a vision
Undercommiting the vision by a factor of ten
Not removing obstacles to the new vision
Not planning for, and achieving short term wins
Declaring victory too soon
Not anchoring changes within the organisational culture
Source: John Kotter
Nine tips for change agents
Be open to data from the start
Network like crazy
Document your own learning
Take senior management along
Have no fear
Be a learning person and model the way
Keep your sense of humour
Know the business before you try to change it
Finish what you start
Source: Chris Turner
Nine key issues when changing culture
Capture employee attention and interest
Get the whole organisation involved
Create and maintain momentum
Build on core values
Sow the message
Measure progress
Recognise and reward individual achievement
Commit to developing employees
Foster individual initiative
Source: Bartlett and Goshal
Managers who manage change well...
Have vision not just reactions
Care more about achievement than status
Show they are committed not detached
Are accessible not unapproachable
Are communicators not introverts
Are politically sensitive not politically ignorant
Take responsibility rather than pass it
Are adaptable not inflexible
Are developing and learning not declining
Source: Mike Bichard
The nine elements of the
Business Excellence model
Five enablers:
Leadership
People
Policy and strategy
Partnership and resources
Processes
Four results:
People
Customers
Society
Key performance indicators
Ten change principles
Address the human side systematically
Start at the top
Involve every layer
Make the formal case, with written vision
Create ownership
Communicate the message
Assess core values, beliefs behaviours and perceptions
Address culture explicitly - define an end-state culture
Prepare for the unexpected
Speak to the individual
Source: Jones, Aguirre & Calderone
“Organisation development is concerned with
the planning and implementation of programmes
designed to improve the effectiveness with which
an organisation functions and responds to
change”.
Derek Sheane
“The ultimate test of an organisation is not its
past or current performance, but its fitness for
future action”.
Derek Sheane
“People will support
what they helped to
create”
Donald Kirkpatrick
Creating change isn’t easy
“There is nothing more difficult to take in hand, more
perilous to conduct, or more uncertain in its success
than to take the lead in the introduction of a new
order of things”.
Nicolo Machiavelli
“Change takes place no matter what hates
it…there must be measured, laborious
preparation for change to avoid chaos”
Source: Plato
A key quote from Nancy Dixon
“The viability of an organisation as
a whole, may rest on the ability of
employees to continue to learn”.
Source: Nancy Dixon
Excellence is
a journey
not
a destination
What are the signs
of an
unhealthy
organisation?
How
do we want to be
different to, and
better than,
the rest?
What is the
purpose
of this organisation?
Why do people
resist
change?
Why to people
welcome
change?