Strategy Transformation Playbook - Revision 2

Strategy Transformation Playbook

Copyright © 2022 by TM

Nagarajan. All rights

reserved.

Published by TM Nagarajan, Kuching, Sarawak.

Published simultaneously in Malaysia.

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Strategy Transformation Playbook

A Guide to Self, Team, Organization and Stakeholder Transformation

Written by TM Nagarajan

Designed by Mac Kevinney Anak Sanchez

Karuna (Sarawak) Ent. Sdn. Bhd.

want to

“You can’t build an adaptable organization without adaptable people - and individuals change only when they have to, or when they want to.”

Gary Hamel

HOW TO READ THIS BOOK

This book is a compilation of transformation best practices, with detailed visual guides on strategic planning tools, case studies and practical how-to guides. It provides you with frameworks, implementation methodologies, sample templates and examples. It also helps you to design and implement quickly, and serves as an ongoing reference to help you in any transformation situation.

TRANSFORMING SELF TRANSFORMING TEAMS

INTRODUCTION

Businesses today are deluged with challenges from a multitude of directions. Staying relevant in the marketplace is a monumental effort. The business environment is filled with uncertainty, and is being continuously disrupted. Clayton Christensen termed it “Disruptive Innovation”. Products and services are constantly being displaced by competitors, due to the following contributing factors:

Globalization

Globalization has grown due to advances in transportation and communication technology. With increased global interaction, comes the growth of international trade, ideas, and culture.

While trade and international integration tend to increase the overall economic pie, distribution of the larger pie may be very uneven. In fact, slices for individual groups may shrink. Some employees, particularly those in industries that are less able to compete and whose skills have become less relevant, can be hurt and find it difficult to adjust. This often requires individuals to change industries and to relocate to different regions. So, while trade is almost always a win for a country’s economy, not everyone within that economy will be a winner.

Digital Revolution

The digital revolution has never been about technology, but more to do with people and how they are impacted in their day-to-day life. This also leads to widespread transition of telecommunications creating innovative ways of working and socializing.

Digital revolution has boosted new avenues of communication, empowering the economy and consumers by providing them with access to information at any point of time through its diverse platforms. Examples include mobile internet, cloudbased technology, Big Data, IoT (Internet of Things), nanotechnology, artificial intelligence, robots, and other digital technologies.

Millennials

(Born between 1980 - 2000)

One of the largest generations in history is about to move into its prime spending years. Millennials are poised to reshape the economy; their unique experiences will change the ways we buy and sell, forcing companies to examine how they do business for decades to come.

Millennials have been reluctant to buy items such as cars, music and luxury goods. Instead, they are turning to a new set of services that provides access to products without the burden of ownership, giving rise to what is being called a “sharing economy”. Millennials’ affinity for technology is reshaping the retail space. With product information, reviews and price comparisons at their fingertips, millennials are turning to brands that can offer maximum convenience at the lowest cost.

Millennials are forcing organizations to make tough choices in the way they do business, communicate with customers, and create product and service offerings, internal processes, applications and IT infrastructure.

The Unknown Unknown

In his book “The Black Swan: The Impact of the Highly Improbable”, statistician Nassim Nicholas Taleb defines the eponymous moments as rare and unpredictable events with severe consequences – both good and bad – that many then claim should have been predictable in hindsight.

The invention of the internet and subsequent widespread availability of personal computers. Franz Ferdinand’s assassination as the impetus to World War I. The tragic 9/11 terrorist attacks on the World Trade Centre. All unpredictable. All with severe consequences.

Every time some great disruption happens, you will read and hear statements like “unprecedented event” and “never saw it coming” in the media, and coffee shop conversations. You may have even said it yourself.

That is how the COVID-19 pandemic is being described: an unknown unknown.

But is it really? Even Nassim Taleb who was recently interviewed, has pointed out that it is not a black swan, but rather more of a white swan event: a known unknown. Certainly, it is not the first pandemic to hit us. There have been others, far more deadly and contagious. We might not have known the exact date history would repeat itself, but surely we should have been prepared.

In summary, change is happening all the time and at a rapid speed. These disruptive changes impact individuals, communities, and business models of organizations.

Besides organizations, individuals obviously need the capability to adopt change, make decisions and align their purpose, goals and priorities. It is equally important to “get from strategy to execution”, where individuals and organizations need the capability of designing and implementing change based on strategic direction.

“ Transformation” is imperative today and no longer an option. It is an essential process for all including individuals and organizations to prepare for uncertainties.

“Strategic Transformation” is an approach for structured and planned change that helps:

Individuals

Steps in self-transformation

Teams

Process of building a high-performance team

Organizations

Translation of business strategy into executable plans

Stakeholders

Engagement and management of stakeholders

This book is a compilation of transformation best practices, with detailed visual guides on strategic planning tools, case studies and practical how-to guides.

It provides you with frameworks, implementation methodologies, sample templates and examples. It also helps you to design and implement quickly, and serves as an ongoing reference to help you in any transformation situation. A typical chapter consists of:

• Description

• Framework

• Implementation methodology

• Sample templates

• Examples

• Summary

STRATEGY TRANSFORMATION FRAMEWORK

The framework is built around the Paradox of Change.

TRANSFORMING STAKEHOLDERS

Stakeholder engagement and management - by improving collaboration with the Board of Directors (BoD), and communities.

TRANSFORMING SELF

Self Transformation is an approach to inner change neccessary for resolving both personal and social problems of life.

TRANSORMING ORGANIZATIONS

Real change management requires more than just changing behavior - it is dependent upon the culture, environment and change management process.

TRANSFORMING TEAMS

Building an effective team, improving teamwork and collaboration, sustaining team performance, and aligning team and individual goals.

FRAMEWORK INTRODUCTION

Self Transformation

Self Transformation is an approach to the inner change necessary for resolving both personal and social problems of life. Self Transformation implies that we seek to reshape ourselves, to shift into a new person entirely. This takes us way beyond self-awareness. In the transformation process, we consciously and actively refine ourselves to our liking, smoothen the edges, mold ourselves through hard work and discipline, so we can achieve a result that reflects our strongest beliefs and values.

Self Transformation involves the following:

• Examine your personal or leadership journey.

• Discover your personal or leadership style.

• Act by identifying your purpose and establishing it as a cornerstone of your leadership approach.

FRAMEWORK INTRODUCTION

Team Transformation

Team Transformation involves working with teams to identify and surface any obstacles to team cohesion, synergy and high performance.

Building an effective team is a gradual process and cannot be accomplished in just a day or week. Although it will take hard work, your team will become more cohesive, cooperative, collaborative and effective when they embrace the principles of teamwork.

The Team Transformation Framework provides guidelines in identifying your team members’ behaviors, approaches to work with different behavioral types, team values, vision, and goals.

FRAMEWORK INTRODUCTION

Organization Transformation

The first step to understanding the organization is an assessment based on the Strategic Organization Transformation Framework. The assessment reviews the following areas of an organization:

• Corporate Governance

• Sustainability Management

• Strategy Management

• Financial Management

• Operations & Technology Management

• Customers & Marketing

• Leadership & Organizational Development

The Strategic Organization Transformation Framework embodies a model which ensures organizations “get from Strategy to Execution”. It also takes into account that ever-changing world and the disruptions that revolve around it.

The Framework is a 7 Vantage Points approach which can be applied iteratively as a whole or independently, to fix a particular business challenge.

FRAMEWORK INTRODUCTION

Stakeholders Transformation

Stakeholder management is the process by which we organize, monitor and improve relationships with our stakeholders.

It involves systematically identifying stakeholders, analyzing their needs and expectations, as well as planning and implementing various engagement initiatives. A good stakeholder management process will be the means through which we are able to coordinate interactions and assess the status and quality of our relationships with various stakeholders.

Self Transformation

Mahatma Gandhi’s quote, “You must be the change you want to see in the world” leads us to believe that Change begins with ourselves! Based on the Paradox of Change, the only constant is Change and the most impactful is Transformational Change.

Self-Transformation Process

The Self Transformation process is an approach to the inner change necessary for resolving both personal and social problems of life. It involves the following process:

• Examine your personal or leadership journey.

• Discover your personal or leadership style.

• Act by identifying your purpose and establishing it as a cornerstone of your leadership approach.

EXAMINE DISCOVER ACTION

Examine your personal or leadership journey.

Discover your personal or leadership style.

Identify your purpose and establishing it as a cornerstone of your leadership approach.

EXAMINE

It is a process of examining your Leadership Journey via these self-analysis tools:

Examine your leadership journey

a) Leadership Journey Map.

b) Maslow’s Hierarchy of Needs.

c) The Wheel of Life.

Analysing your formative experiences to find critical lessons that inform your authentic leadership.

Recognizing and overcoming personal impulses that can lead to problematic leadership behaviors.

Learning how the most difficult times in your life can shape your passion to lead.

It’s the journey that matters, not the destination.

A) Leadership Journey Map

Leadership is a journey travelled by an individual who has been handed the responsibility of guiding people towards achieving a certain business / life objective.

It is also a process of analysing your inner growth over the years.

Achievements

Sample - Leadership Journey Map

Challenges

HEALTH- RAN MY 1ST MARATHON

EXPATRIATE JOBMOVED TO LONDON

JOB PROMOTION

PERFORM HAJJ WITH WIFE

BOUGHT OUR 1ST HOUSE

RETRENCHMENT FROM THE COMPANY

POOR PRACTICING MUSLIM

EXTENDED FAMILY RECONCILIATION

PROMOTED TO CHIEF FINANCIAL CONTROLLER

SON WAS 1ST POSITION IN QURAN RECITATION COMPETITION

KIDS DOING EXCELLENT IN STUDIES A+ GRADES

PARENTS PASSED IN A CAR ACCIDENT

EXAMINE A) Leadership Journey Map

This sample Leadership Journey Map template enables you to record every achievement and challenge in your own timeline.

Achievements

Sample template Leadership Journey Map

B) Maslow’s Hierarchy of Needs

Maslow’s Hierarchy of Needs is a motivational theory in psychology comprising a five-tier model of human needs, often depicted as hierarchical levels within a pyramid.

Maslow stated that people are motivated to achieve certain needs and that some needs take precedence over others. Our most basic need is for physical survival, and this is the first thing that motivates our behavior.

Once this level is fulfilled the next level up is what motivates us, and so on.

respect, self-esteem, status, recognition, strength, freedom

Maslow’s Hierarchy of Needs

B) Maslow’s Hierarchy of Needs

Maslow’s Hierarchy of Needs example

B) Maslow’s Hierarchy of Needs EXAMINE

One must satisfy lower level deficit needs before progressing on to meet higher level growth needs.

When a deficit need has been satisfied, it goes away and our activities become habitually directed towards meeting the next set of needs that we have yet to satisfy.

These then become our salient needs. However, growth needs continue to be felt and may even become stronger once they have been engaged. Once these growth needs have been reasonably satisfied, one may be able to reach the highest level called self-actualization.

Every person is capable and has the desire to move up the hierarchy toward a level of self-actualization. Unfortunately, progress is often disrupted by a failure to meet lower level needs.

Life experiences, including divorce and job loss, may cause an individual to fluctuate between levels of the hierarchy. Therefore, not everyone will move through the hierarchy in a uni-directional manner but may move back and forth between the different types of needs.

Maslow noted only one in a hundred people become fully self-actualized because our society rewards motivation primarily based on esteem, love and other social needs.

C) The Wheel of Life

When life gets busy, or all your energy is focused on a special project, it is all too easy to find yourself off balance, not paying enough attention to important areas of your life. While you need to have drive and focus if you are going to get things done, taking this too far can lead to frustration and intense stress.

That is when it is time to take a “helicopter view” of your life, in order to bring things back into balance.

This is where the Wheel of Life (or Life Wheel) can help.

It helps you consider each area of your life in turn and assess what is off balance. As such, it helps you to identify areas that need more attention. Wheel of Life

Start by brainstorming the six to eight dimensions of your life that are important for you. Different approaches to this are:

The roles you play in life, for example: husband/wife, father/ mother, manager, colleague, team member, sports player, community leader, or friend.

Areas of life that are important to you, for example: artistic expression, positive attitude, career, education, family, friends, financial freedom, physical challenge, pleasure, or public service.

Your own combination of these (or different) things, reflecting the things that are your priorities in life.

C) Wheel of Life EXAMINE

Here is a Wheel of Life sample template. Use it to help you consider each area of your life and assess what is off balance.

Write down these dimensions on the diagram – one on each spoke of your Wheel of Life.

This approach assumes that you will be happy and fulfilled if you can find the right balance of attention for each of these dimensions. Different areas of your life will need different levels of attention at different times. So the next step is to assess the amount of attention you are currently devoting to each area.

Consider each dimension in turn, and on a scale of 0 (low) – to 10 (high), write down the amount of attention you are devoting to that area of your life. Mark each score on the appropriate spoke of your Wheel of Life.

Now join up the marks around the circle. Does your Wheel of Life look and feel balanced?

So the question is, what would the ideal level of attention be for you in each life area?

Discover your personal or leadership style

“Only as you do know yourself can your brain serve you as a sharp and efficient tool. Know your own failings, passions, and prejudices so you can separate them from what you see.”

Bernard Baruch

Self - Assessment

If you are still trying to find that elusive “career calling” you are certainly not alone. This can be a great adventure with passion, often coming as a consequence of effort.

Self-awareness is key to making smarter career choices. The better we understand our own strengths and limitations, the easier it becomes to navigate through the unlimited number of opportunities. Once we understand our strengths, finding the “sweet spot” is the next step to success when it comes to our career.

Choosing a job that fits your strengths means you are more likely to progress and succeed which in turn, can lead you to become more passionate about the job. Finding a job you love may take time, but be sure to choose one that gives you the opportunity to keep learning and exploring what you like.

Self - Assessment

Taking a career test is a little like playing “What do you want to be when you grow up?” with a twist.

The twist is that career tests can give you concrete ideas about what you may be designed to do rather than just an opportunity to simply ponder what you want to do.

It can help you understand the type and environment of work that will help you thrive as a person.

Career Assessment

If you are looking to enjoy your career more, you want to go on a path of self-assessment. Here is a list of career and selfassessment tools you can find online and use them for free.

123 Career Test

This popular aptitude test can help you gain insight into the careers that best fit your personality. It will help you learn what kind of work environments and occupations suit you best.

CareerOneStop Interest Assessment

Answer 30 quick questions online to get a list of careers that might be a good fit for your interests.

CareerOneStop Work Values Matcher

Answer questions about different aspects of a job or workplace to help you find your ideal work environment.

Test Color

With this test, a team of psychologists and human resources experts leads you through a two-part colour selection process to determine your personality and aptitude. While the initial results are free, you can pay extra for a more in-depth analysis.

Keirsey Temperament Sorter

This test helps you to understand your personality type and discover what type of temperament you have. Test results suggest a predominant personality type, including Artisan, Guardian, Rational, or Idealist. Your temperament influences career satisfaction, job search strategies, and job performance. A free description of your profile will be provided with an option to purchase the full report.

Career Assessment

Human Metrics

Human Metrics takes you through 64 questions to rate you on both scales. The results explain to you how each piece relates to your personality type.

O*NET Interests Profiler

My Next Move’s O*NET Interest Profiler is administered by the United States Department of Labor. Users take a 60-question interest inventory that yields a profile of interest tendencies, including six areas: Realistic, Investigative, Social, Enterprising, Conventional, and Artistic.

PathSource

This free career exploration solution helps students and job seekers make better career choices with its free mobile app. Users can produce lists of careers based on personality characteristics and an interest profile. Lifestyle issues and income expectations are factored into the analysis. An extensive collection of 2,600 informational interviews on video provides an insider’s view from workers in a broad range of professions.

16 Personalities

Using the Myers-Briggs Model (hence the name), 16 Personalities is a site designed to help you understand yourself, contribute valuable data to researchers, and take tangible steps in your personal and professional relationships. While the test is completely free, most of the tools require that you join for a fee.

Career Assessment

CareerExplorer

Career Explorer is a free platform for users to assess their interests, personality types, abilities, career values, and preferred work and social environments in order to find matches that will lead to satisfying careers. The assessment suggests careers after users respond to a series of questions. There is detailed information available on each of the suggested career options. In addition, users can browse occupations by clusters like health and nutrition, law, arts and entertainment, animals, food and drink, politics and law, sports, travel, music, engineering, and science.

Red Bull Wingfinder Skills Matcher

Take a free 35-minute online personality assessment to identify and leverage your strengths in four different areas of your personality, including connections, creativity, thinking, and drive. Wingfinder test takers immediately receive a free 19-page feedback report containing an analysis of their strengths, along with advice, and coaching from Red Bull athletes who have the same strengths.

The Department of Labor has developed this resource to enable users to assess the skills they want to incorporate into their careers. You will rate basic skills like reading, writing, speaking, scientific reasoning, and critical thinking, as well as more specialized social, technical, analytical, computer, problem-solving, and resource management skills.

Truity

Truity offers a variety of tests you can use to explore your personality career interests. There is a free short report on the results, and there is a fee to unlock the full report if you want more information.

Personality Assessment

The Myers-Briggs Type Indicator is the most well-known, authoritative personality test available in the psychology and human resources community. It assesses your personality type and explores career options. If you are a college student or graduate, check to see if your career office offers no-cost testing. Otherwise, review these options for taking the assessment either online or in-person.

This test categorizes people into one of 16 different personality types. With a series of questions, the test determines whether you gravitate toward extroversion or introversion, sense or intuition, thinking or feeling, and judging or perceiving.

Here is a quick guide to understanding the four categories within the Myers-Briggs test:

Extroversion (E) or Introversion (I): This is about how you get your energy. Do you turn inward or outward for sources of energy?

Sense (S) or Intuition (N): Which one you gravitate toward reveals how you perceive and absorb information. People who get an S result are more likely to use past experience and common sense to evaluate situations, while the Intuition-focused readily see the big picture and patterns.

Thinking (T) or Feeling (F): With this personality trait, your decision-making style is revealed. Thinkers are guided by logic and common sense, while Feelers may rely on values feelings. For Feeling types, the decision-making process may be guided by how a decision would affect others.

Judging (J) or Perceiving (P): This last piece of the personality type reveals lifestyle preferences, or how you like to live your life. Judging types are organized and comfortable working within rules and framework. You can count on someone of this type having a five-year plan. Perceiving types are more likely to prefer a flexible environment, adapting plans as needed.

Personality Assessment

Self - Assessment

Exercise Objective:

Use the tool to assess your personality and suitable career.

Exercise Process:

Based on the list of free assessments, pick one and answer the assessment accordingly. Generate the self assessment report from the site.

Self Transformation

ACT

After we Examine and Discover ourselves, the next step is to put it together and Act. The key steps in this process are as follows:

1. Identify your purpose and establish it as a cornerstone of your life.

2. Develop your Big Rocks / Goals.

3. Align the above (Big Rocks / Goals) with the roles we play in life, plus develop Personal Development Plans and schedule them based on priorities.

4. Review with your coaches / mentors for feedback and guidance.

Purpose and Values

Identify your purpose and establish it as a cornerstone of your leadership approach.

Our purpose and values are our personal energy sources. Identifying our personal energy calls for high level of self-awareness. Crystalizing our purpose and values creates high level of selfawareness – foundation of leadership.

Purpose and Values

Alfred Nobel (1833-1896) is the inventor of dynamite. In 1888, a French newspaper mistook the death of his brother Ludvig for his, headlining his obituary

“The merchant of death is dead.”

“Dr Alfred Nobel, who made his fortune by finding a way to kill the most people as ever before in the shortest time possible, died yesterday,” the newspaper wrote.

Alfred was disappointed with what he read and concerned with how he would be remembered. He subsequently changed his personal mission in life, giving the largest share of his fortune to a series of prizes, the Nobel Prizes.

The world’s most prestigious peace prize, the Nobel Peace Prize, is awarded to individuals for work in peace-related initiatives

Exercise - Review Purpose and Develop Personal Development Plan

Exercise Objective:

Identify your purpose and establish it as a cornerstone of your leadership approach. Develop a Personal Development Plan for Action.

Exercise Process:

Follow the 4-step process described in the following pages.

Identify your purpose and establish it as a cornerstone of your life.

Develop your Big Rocks / Goals.

Review with your coaches / mentors for feedback and guidance. SELF TRANSFORMATION

Transforming Self

Step 1 - Identify Purpose (Personal Mission Statement)

How do YOU want to be remembered?

Benefits of Personal Mission Statement:

• Identify your Purpose and Values.

• Clarify what is Important to you and Provide Focus

• Help you Design your life instead of having it designed for you.

• Guide your day-to-day Decisions.

• Give you greater sense of Meaning and Purpose.

Example: Purpose of Life

Example 1: 2013 - CEO

To serve as a leader, live a balanced life, and apply ethical principles to make a significant difference.

Example 2: 2018

To enjoy the journey of life through:

• Inspiring and influencing transformation of people/ organizations - to have a sustainable impact in their live.

• Adventure travels.

Doing things which make me happy everyday - 6 years old kid

Bring colours to people’s lives - 70 years old painter

Bring meaning to others - senior executive in a purpose-driven organization

M A E N

Make my loved ones happy

Enrich and inspire others

Achieve my goals

New: Explore new areas perpetually

Transforming Self ACT

Definition of Values

Values are basic and fundamental beliefs that guide or motivate attitudes or actions. They help us to determine what is important to us. Values in a narrow sense is that which is good, desirable, or worthwhile.

Values are the motive behind purposeful action. They are the ends to which we act, and come in many forms. Personal values are personal beliefs about right and wrong, and may or may not be considered moral.

Example of Values:

• Trust

• Integrity

• Teamwork

• Inspiration

Transforming Self

Step 2 - Develop Big Rocks / Goals

GOAL SETTING TECHNIQUE: FOCUS ON “BIG ROCKS”

When prioritizing goals, use our “Big Rock” goal-setting technique.

Think of each goal in terms of the weight it carries in your life. In other words, does the goal represent a big rock, carrying a lot of weight, that if achieved would make a positive impact on your life? Or, would the goal represent a smaller rock or pebble in terms of its ability to impact your life? Lastly, would your goal more adequately represent a grain of sand in terms of impact on your life?

While each goal may represent a positive move upward in your life, you must understand that the smaller the impact of the goal (or the smaller the rock) on your life, the less of a priority it should be.

ALWAYS PRIORITIZING THE BIGGEST ROCKS FIRST

In doing so, you will be amazed at how many of the smaller rocks/pebbles/sand still get done along theway, or simply vanish because they really were never important in the first place.

Here is the primary point of this goal setting technique: The big rocks are the ones that count! Focusing your efforts on the big rocks first will eventually take you to realizing your life’s ambitions.

Examples:

• Be financially free (e.g. 2023)

• Experience diverse cultures via travelling the globe (e.g. 3 new countries every year)

• Summit the 7 Summits (highest peak in each continent by 2023)

• Be an inspiration to others - continue to coach and mentor (500 people, 5 organizations in 2022)

• Write a book on Strategy Transfomation - 2021

• Learn a new subject every year (e.g. neuroscience - 2022, etc)

Transforming Self

Step 3 - Identify The Roles We Play In Life

When selecting your roles:

• Choose both personal and professional.

• Choose no more than seven.

• Recognize that some roles remain for life.

Sample Roles:

• Administrator

• Architect

• Artist

• Brother

• Caregiver

• CFO

• Challenger

• Chairperson

• Chef

• Citizen

• Coach

• Companion

• Consultant

• Counselor

• Daughter

• Designer

• Editor

• Energizer

• Explorer

• Friend

• Grandparent

• Influencer

• Inventor

• Manager

• Mentor

• Musician

• Neighbor

• Parent

• Partner

• Peacemaker

• Reporter

• Salesperson

• Sister

• Son

• Spouse

• Supervisor

• Teacher

• Technician

• Trainer

• Vice-president

• Volunteer

• Writer

Transforming Self

Step 4 - Develop Dreams / Goals Action Plan & Personal Development Plan

Develop Dreams / Action Plan

The contents of this plan should be from the exercise of examining purpose. Ensure to align the goals with

• the roles, and

• prioritize with timelines

Wife / Husband Happy life

2020 Dec

Develop Personal Development Plan

The content of this plan should be from the career assessment.

Fund her, Moral support & Additional Tuition

• Support to identify through matching agency

• Couple Dinner every month

• Couple vacation

• Motivate the team by reviewing it monthly and team activities (bowling...)

• Provide incentives

• Provide guidance to the team

Acceptance Improve Self confidence & less self critical

use the exercises from the Assessment (on reflecting on self acceptance) and practise

“The key is in not spending time,

investing

– Stephen R. Covey

but in investing it.”

Transforming Self ACT

Prioritizing and Scheduling

Scheduling is the art of planning your activities so that you can achieve your goals and priorities in the time you have available. When it is done effectively, it helps you: Understand what you can realistically achieve with your time. Make sure you have enough time for essential tasks.

Steps:

1. Block out time for your Big Rocks / Goals in your agenda or on a calendar.

2. By seeing the important things listed, you can then plan when you will do them.

• Prepare for the meeting (reports, etc.)

• Volunteer

3. Schedule everything else.

• Fill in day with the little to-dos like daily tasks, chores, appointments.

Transforming Self

Schedule the Week

Three

Transforming Self

Tips for Daily Planning:

• When? Before the day begins

• Where? Someplace quiet.

• How long? 5-10 minutes.

Transforming Self

Element of an Effective Planning System

Highly effective people have a reputation for consistent follow-through. Putting first things first each week requires not only discipline, but good planning tools.If you are going to do the job right, you have got to have the right tools. An effective planning system is:

• Integrated. The Core Four are all-in-one system — tasks, appointments, notes, and contacts.

• Mobile. It is with you all the time.

• Personalized. It is customized for your own needs.

Tasks

Appointments

Contacts

Notes

Bringing it all TOGETHER TOGETHER

Transforming Self

Next Steps...

FIND A COACH OR MENTOR

Coach

The purpose of coaching is to unlock people’s potential to maximize their own performance. It is helping them to learn rather than teaching or telling them. Take learning to walk as an example – most people do not learn how to walk by instruction.

Mentor

The purpose of mentoring is to tap into the existing knowledge, skills, and experience of senior or high performing employees and transfer these skills to newer or less experienced employees in order to advance their careers. Mentoring is non-evaluative, meaning that unlike performance management, the mentor is typically not a direct manager or supervisor of the mentee.

COACHING PROGRESS

Effective coaching programs have four key characteristic:

• Clear development objectives and specific goals in line with coachee’s aspirations, and the sponsor organisation’s strategic direction and operational priorities (if it is being sponsored by the organization).

• Detailed analysis of coachee’s needs.

• Regular reviews of desired success against goals with the program sponsor, coachee and other key stakeholders.

• Evaluation of program outcomes.

Coaching occurs in an environment of complete confidentiality, where the individual is encouraged to explore key issues and the opportunity to gain deeper insight and understanding.

Team Transformation

Transforming Teams

A team is a group of people who collaborate on related tasks toward a common goal. Sports teams are a good example of how teams work. For example a football team has individual players who each contribute toward the goal of winning a game.

Similarly, in business settings most work is accomplished by teams of individuals who collaborate on activities with defined outcomes. Because teams are so prevalent in business organizations, it is important for employees to have the necessary skills to work effectively with others.

BUILDING A HIGH PERFORMANCE TEAM

• A “high performance work team” refers to a group of goal focused individuals with specialized expertise and complementary skills who collaborate, innovate and produce consistently superior results.

• The group relentlessly pursues performance excellence through shared goals, shared leadership, collaboration, open communication, clear role expectations and group operating rules, early conflict resolution, and a strong sense of accountability and trust among its members.

Team Transformation

TRANSFORMING TEAMS FRAMEWORK

A) ASSESS B) ALIGN

Understand everyone’s behaviour and competencies in a team - Team Assessment.

Align team for results and commit them to endure over time.

C) ENGAGE

Improve team engagement via:

• Positive Communication

• Win-Win Performance

Management

• Coaching

A) Assess

An individual alone cannot run a certain business. An effective and efficient teamwork instils business operations smoothly. The relevance of having an efficient performance team within your business enterprise cannot be undermined at any costs.

A high-performance workforce or team is a set of highly focused business people who have determined to achieve superior business results by generating consistent collaboration and innovation in their task performance.

Understand everyone’s behaviour and competencies in a team - Team Management

The following are some challenges to the Successful Functioning of High-Performing Teams:

A) Assess

Barriers to the Successful Functioning of High Performing Teams

1. Issues in problem resolution or finding out quick solutions.

Inability of team members to provide quick resolution for various issues or conflicting matters result in lack of productivity and poor performance from the team members. It is because the members waste their time in finding out solutions for fruitless conflicting causes and lose their focus from the productive matters concerning the organizational growth and progress of the team members along with the organization. The team members may struggle with individual disputes, role conflicts, disputes amongst the team members or may have differences on various policy matters of the organization, which should be timely addressed with effective solutions

2. Lack of trust.

As discussed before, the success of high-performance teams greatly depends upon the extent of trust and confidence which the team members have for each other and their collaborative functioning. Lack of trust can be a major barrier in the path of success of high-performance teams as the members will fail to work towards a single purpose and will give importance to individual concerns. In the absence of trust, team efficiency, productivity, quality and probability will be adversely affected.

3. Relationship problems.

Poor interpersonal relationship amongst the team members can pose a big threat or challenge to the successful performance of High-Performance teams. The members will prioritize individual well-being and success over team success.

A) Assess

4. Leadership problems.

In the absence of able leadership, the performance of team members is bound to suffer. Leaders play the role of trendsetters and set examples for the team members. They provide strategic direction and set a vision for the team members towards which the collaborative efforts are directed by members of the team. Leaders enforce a framework of compliance and establish a high-performance culture for the team members; they motivate and ignite teams to achieve superior benchmarks at work.

5. Absence or poorly defined core values.

Core values are the pre-defined standards of conduct for individuals in an organization. These are the salient principles or guiding framework which influences the behavior of team members and their day-to-day actions as well. The management enforces Core Values by aligning the same with the performance management system, appraisals or performance review process and with the organizational policies.

6. Inefficiently designed performance management system and incentive structure.

A poorly designed and implemented performance management metrics and in the absence of a proper incentive structure, the team members lack the motivation to deliver their best and indulge in unhealthy competition internally with fellow colleagues. Poor incentives may lead to not-so-desirable consequences not only for team members, but will also give rise to internal conflicts within the organization.

A) Assess

7. Role Ambiguity.

In the absence of role clarity amongst team members, conflicts will happen which will ultimately impede the overall performance of high-performance teams.

8. Politics.

High-performance teams suffer due to internal politics and unfair decisions which are implemented as a result of undue pressure from leaders and team members with vested personal interests. When politics overrule good judgment or fair decision-making, highperformance teams are bound to suffer.

9. Poor communication or lack of proper dialogue exchange.

Members of high-performance teams should work collaboratively and be focused towards the achievement of a common goal. Their roles are so interdependent, that without proper coordination or regular interaction between the team members, the team members will fail to achieve business objectives. In the absence of effective communication and exchange of dialogues, the business will suffer in terms of quality, productivity and overall efficiency.

10. Absence of a proper feedback framework.

Constructive feedback facilitates performance improvement and helps team members to overcome their limitations and improve continuously at work. Feedback acts as the guiding framework for team members to perform better, learn from their mistakes and to avoid such mistakes in future. In the absence of an effective feedback framework, teams will fail to deliver optimal results and act upon their performance-related loopholes with effective solutions.

A) Assess

A team assessment is an exercise that allows you to evaluate a team’s strengths and weaknesses. Although even an informal assessment can be helpful, team assessment tools have become more sophisticated, applying principles from organizational theory and human resource management.

We suggest a simpler team assessment for a start. The Merrill & Reid social styles assessment is unique AND effective compared to others. It is not a “personality” program like Myers-Briggs; it is founded on valid and proven research and the focus on Observable Behaviours – how people Think, Act and React.

The power of SOCIAL STYLE happens when we come to understand ourselves through the eyes of others, learn to modify our actions to better match others’ needs, and observe again and again how relationships, communication, and influence with others improve.

Merrill & Reid Social Styles Assessment

The Social Style Model demonstrates that each of the four Social Styles has positives and negatives associated with their behaviour.

It is the ability to leverage the strengths of your own style while recognizing and responding effectively to others’ unique Styles. It allows you to create meaningful and productive relationships with people of any style whether they are like you or not.

Because Social Style is based on observable behaviour, you can quickly identify a person’s preferences and make informed choices to make that person comfortable.

A) Assess

Merrill & Reid Social Styles - Personal Styles at Work

The four SOCIAL STYLES are the DRIVING style, the EXPRESSIVE style, the AMIABLE style, and the ANALYTICAL style.

Personal

Styles and Effective Performance, David Merrill and Roger Reid

A) Assess

Exercise Objective:

Use the Merrill & Reid Social Styles framework to assess and understand which profile fits you and your team members.

Exercise Process:

Follow the following steps as below:

Start by identifying which profile do you closely fit among the 4 presented.

If your team members are in the room, evaluate the profile characteristics which they have chosen.

Next step is to use the slide materials given to understand why do we find others so difficult to work with?

Upon understanding that next is to find out how to work better as a team.

Also, as a team what should we start, stop and continue doing.

What are your strengths?

ANALYTICAL DRIVER

• Logical

• Efficient

•

•

TRANSFORMATION TEAM FRAMEWORK TEAM TRANSFORMATION 66

Systematic • Prudent

XPRESSIVE ••

Independent • Candid • Decisive • Pragmatic • Loyal • Cooperative • Supportive • Diplomatic • Patient

A) Assess

Why do we find others so difficult to work with?

ANALYTICAL DRIVER

1. I want to know “how”.

2. I value numbers, statistics, and love details, fear losing face, tend to be introverted.

3. In a problem solution, I want exact answers. Written material. No emotional stories.

1. I want to know “what”.

2. I want to save time, value results, love being control, fear giving up control or no emotion.

3. In a problem situation, I want results. Tell me exactly what you will do. Then do it!

1. I want to know “why”.

2. I want to build relationship, love to give others support and attention, and value suggestions from others, fear disagreements. I display lots of emotion.

3. In a problem solution, I would like reassurance, reassurance,reassurance that the problem will be fixed.

1. I want to know “who”.

2. I vaue appreciation and a pat on the back, love social situations and parties, like to inspire others, fear being rejected and am extroverted, readily showing emotion to others.

3. In a problem solution, I want you to understand me.

A) Assess

Why do we find others so difficult to work with?

ANALYTICAL DRIVER

• Reserved

• Uncommunicative

• Catious

• Strict

• Impersonal

E XPRESSIVE

• Take-charge attitude

• Fast actions

• Aggresive

• Excitable

• Expressive loud voice

• Slow pace

• Risk averse

• Go along attitude

• Quiet

• Indecisive

• Fluid attitudes

• Emotional

• Undisciplined about time

• Easy-going with self

• Dramatic opinions

A) Assess

How to work better as a team?

ANALYTICAL DRIVER

“Speak more and smile more”

1. Show appreciation and personal interest.

2. Relax.

3. Share information and be more open to others.

4. Remember, enthusiasm won’t kill you.

“Slow down with ‘slow’ people”

1. Take more time to listen.

2. Try to hold back from dominating and learn when to relinquish some control.

3. Show more patience, and act more relaxed.

“Speed up when talk with ‘fast’ people”

1. Talk more, listen less.

2. Take control occasionally.

3. Be assertive. Take some risks.

“Listen more, slow down”

1. Write things down.

2. Set specific goals.

3. Check details and remember to stay calm.

4. Learn to “focus”.

A) Assess

Example: How Expressive individual can work better with Analytical people?

ANALYTICAL DRIVER

AMIABLE

EXPRESSIVE

1. Be systematic, thorough, deliberate and precise.

2. Provide analysis and facts.

3. Don’t get too personal.

4. Use as much evidence as you can.

A) Assess

Stop - Start - Continue

Identify specific actions that should be stopped, need to be started, or should be continue to move the organization forward.

Stop - Start - Continue

Identify specific actions that should be stopped, need to be started, or should be continue to move the organization forward.

What current practices and behaviors do we need to stop doing to create a blame-free environment?

What do we need to start doing to create a blame-free environment?

What are we doing well that we need to continue to do to create a blame-free environment?

Align TRANSFORMATION TEAM FRAMEWORK

B)

Accomplishing an organization’s vision and mission are among the top priorities of the management. One of the pivotal factors in achieving this feat is proper team alignment. Team alignment is the term used to describe how all employees, teams, and executives of an organization share a common goal. It becomes quite challenging if your teams’ alignment is not in sync with the organization’s goals and objectives.

Align team for results and commit them to endure over time.

How Purpose and Vision Fit

Every organization has a mission, a vision, values, and a strategy. Every team should have a purpose and a vision that connect with the larger organization.

Key Definitions

PURPOSE: Your essential reason for existence; the value you provide to those you serve.

VISION: What your team’s purpose looks like when achieved with excellence.

And the data says...

In a landmark, 10-year study of winning companies, a clearly communicated, customer-focused strategy was found to be one of four practices essential to sustained business success.

JOYCE, NOHRIA, AND ROBERSON, WHAT REALLY WORKS

B) Align TRANSFORMATION TEAM FRAMEWORK

Exercise Objective:

Development of Team Purpose and Vision.

Exercise Process:

Follow the following steps:

Clarify team purpose by answering three questions.

Assigned

What is the specific job your customer (internal or external) are “hiring” you to do?

How does your team connect with organization’s mission and strategy?

Develop vision of the team using the provided Shared Vision Builder template. 73 TEAM TRANSFORMATION

B) Align

A clear purpose answers three questions:

1. Assigned work. What is the specific job your customers (internal or external) are “hiring” you to do?

2. Strategic link. How does your team connect with the organization’s mission and strategy?

3. Contribution. How does your team contribute to the economic model of organization?

Align

Shared-Vision Builder

B) Align

“Coming together is a beginning, together

together together

staying together is progress, and working together is a success.”

– Henry Ford

C) Engage TRANSFORMATION TEAM FRAMEWORK

The importance of employee engagement cannot be overstated – employee engagement has been proven to:

• Reduce staff turnover

• Improve productivity and efficiency

• Improve customer service and retention, and deliver higher profits

Levels of Engagement

When people are treated as “whole people”, they volunteer their highest efforts and energies. When people are treated as things, they withhold their full commitment.

Improve team engagement via:

• Positive Communication

• Win-Win Performance Management

• Coaching

CHOICES

The most valuable assets of a 20th century company were its production equipment. The most valuable assets of a 21th century instituition, whether business or non-business, will be its knowledge workers and their productivity.

PETER DRUCKER, MANAGEMENT CHALLENGES FOR THE 21TH CENTURY

CREATIVE EXCITEMENT

HEARTFELT COMMITMENT

CHEERFUL COOPERATION

WILLING COMPLIANCE

MALICIOUS OBEDIENCE

REBEL OR QUIT

Engage

Levels of Engagement

The challenge is how do you move people’s engagement from formal authority to informal authority?

Moral or Informal Authority

CHOICES

Formal Authority

The Whole-Person Paradigm

CREATIVE EXCITEMENT

Spirit

HEARTFELT COMMITMENT

Mind

CHEERFUL COOPERATION

Heart

WILLING COMPLIANCE

Most people tend to be at this level

MALICIOUS OBEDIENCE

REBEL OR QUIT

C) Engage TRANSFORMATION TEAM FRAMEWORK

Team Engagement - Engagement Process: The Whole Person Paradigm

The Whole-Person Paradigm

Leaders see people as whole—body, heart, mind, and spirit—and work to unleash their full creative potential.

Spirit: Meaning & Contribution

Mind: Growth & Development

Heart: Relationships

Body: Survival

C) Engage TRANSFORMATION TEAM FRAMEWORK

Exercise Objective:

Understanding of levels of engagement and process of engagement.

Exercise Process:

Follow the following steps and answer the questions:

What about your team?

Where are the people in your team at this level of engagement?

How much of their talent, passion, and commitment are voluntary?

employees managers productive relationship

“Talented employees need great managers ... how long that employee stays and how productive he is while he is there is determined by his relationship with his immediate supervisor.”

Buckingham And Coffman, First, Break All The Rules

C) Engage

Three Levels of Engagement

Positive Communication

Constructive, effective, supportive, interactive

Positive Communication

Performance

Clarify expectations and accountability

The way we communicate has an impact on others and on the relationship or connection between us and the people or person we are communicating with. When it comes to building connections, the way we communicate has cues that allow us to connect with people on an emotional level.

These cues provide the emotional context of a message and any change in these changes the message that people receive. It is not about the percentage of the message exactly, it is about the congruence between the three.They impact how much we connect with another person, how much we are influenced by what they have to say, or even believe what they are saying.

Our emotions also play a part in our communication. If we are in a positive and joyous mood, it will show up in our physiology and change the way we behave. This is translated to others through our behaviour and communication cues. It can change the quality of our relationships, and have a radiating effect. (Christakis, 2009).

Coaching

Be a source of help

C) Engage

Positive Communication

Shelly Gable, Assistant Professor of Psychology at the University of California examined the different types of responses we give to other peoples’ good news and classified the following:

The manner in which we respond when others share triumph directly builds or undermines relationships.

Research into couples and intimate relationships suggests that supporting partners will support when good things happen as well being supportive during challenging times.

An active and constructive response is not about overdoing praise and positive feedback, as it can make people feel uncomfortable or patronized. We can focus on asking questions which encourage the person to talk about their good news and savour their positive emotions.

C) Engage

C) Engage

Positive Communication

Practising positive communication is built on observing three key elements in communication that impact emotions:

1. Expand or Contract

2. Positive or Negative

3. Ask or Tell

Expand or Contract

Expand the person or the idea

May or may not expand the coversation

Leads to positive effect

Positive or Negative

Ask or Tell

Commenting on the positive elements

Celebrating success Solution focused Asking questions rather than making statements

“Tell me how you see that working”

Contracts the person or the idea

Often makes meetings longer

Leads to negative effect

Focus on negative elements

Focus on past / why not Problem focused

Statements telling the answer “That won’t work”

Managing Your Team Performance

Build Trust

Leadership can only function on the basis of trust.

Successful leaders recognize errors, learn from them and work to correct faults.

Offer Time

Time spent with a potential team member is an investment.

Believe in People

Believing in people motivates them and release their potential.

C) Engage

Managing Your Team Performance

A Win-Win Performance Agreement is a written understanding that clarifies expectations between leaders and team members.

Boss decides what to work on.

Ambiguous or unclear individual work goals.

Little notion of consequences.

Awkward, infrequent performance reviews that are disconnected from results.

Un-motivating--”wins” are undefined or unclear.

Boss rates employee’s performance on vague criteria.

A bureaucratic, impersonal ritual that doesn’t improve performance.

Boss and employee decide together what the desired results are.

Clear goals with clear measures

“Wins” clearly defined for all parties, as well as consequences for non-filfillment

Frequent reviews where all parties account for progress toward goals.

Highly motivating because performance is driven by “wins”for all parties.

Boss and employee both rate performance on clear criteria.

Performance improves and relationshops are strengthened.

Traditional Performance Management Win-Win Performance Agreement

Source: The 4 Imperative of Leadership - Steven Covey

C) Engage

Follow these steps to make the best use of the Win-Win Performance Agreement. Remember to think Win-Win as you fill in the tool.

1. Desired Results. List the few key goals to focus on during the specified time period. List the key measures that let you know whether or not you have achieved the goal. (Think in terms of current and target results.) Assign a deadline and a weight to each goal: 20 percent? 33 percent? 60 percent?

2. Guidelines. Define the guidelines—the standards and conditions that must be met.

3. Resources. Define the resources required to complete the agreement (people, budget, tools, materials).

4. Accountability. Decide how you will account to each other for progress on the goals. Depending on the level of needed oversight, you might want to meet daily, weekly, monthly, or less frequently.

5. Consequences. Always Think Win-Win. Define specifically and measurably how each party benefits from the agreement, as well as what will happen if the agreement is not fulfilled.

Team Engagement - Engagement Process: The Whole Person Paradigm

C) Engage

Agreement Between For Time Period

WIN-WIN PERFORMANCE AGREEMENT

An Art Director and her manager

Global Product Marketing Materials

Current Quarter

Contribution Statement To create efficient promotional campaigns that measurely increase sales and strengthen our brand as the premier children’s healthcare products. To create a world-class production system to deliver material quickly in response to changing marketing strategies throughout the year, and to facilitate rapid translation and localization of campaigns to our offices in markets where local marketing capabilities do not already exist.

Desired Results

Delivery exceptional material for our upcoming sunscreen and vitamin campaigns.

Finalize the online distribution system and launch the sunscreen and vitaming campaigns through the new system.

Fill two key production-designer positions.

Material delivered on time. Positive pre-launch sales office ratings (lead measure on the scoreboard). Revenue impact (lag measure on the scoreboard). System up and materials distributed Positions filled

Source: The 4 Imperative of Leadership - Steven Covey

Team Engagement - Engagement Process: The Whole Person Paradigm

What do I watch out for?

1. Agreement to the team member.

2. Don’t allow the team member to just “hand it up” either; take the time to define it together.

3. Clearly define the win. It should be more than just “you get to keep your job.”

4. Don’t shelve it; it’s a living document that makes you accountable to each other for progress frequently and openly. At a minimum, you should review and revise it quarterly.

5. Limit the desired results to the few goals you must achieve, or nothing else you achieve really matters much.

6. Make sure the goals and measures are clear. At the end of the time period, both parties should clearly be able to see whether the desired results have been achieved. If not, the goals and measures aren’t clear and specific enough.

7. Each situation is different, so adapt the tool to work for you and each team member.

8. Don’t allow the team member to turn the win-win conversation to his or her benefit by discussing all of his or her wins instead of thinking about wins for the organization. Make sure you keep the conversation focused on the team member’s role at work.

9. Don’t shy away from raising difficult issues, such as how the person feels about his or her job. Instead, welcome the opportunity to clarify the issues.

10. If you already have an existing performance system and can’t replace it, use the new system in addition to your existing system.

Employees who believe that management is concerned about them as a whole personnot just an employee - are more productive, more satisfied, more fulfilled.

management

Anne M. Mulcahy Former Chairperson and CEO of Xerox Corporation

profitability

Satisfied employees mean satisfied customers, which leads to profitability.

C) Engage

Coaching

Managers should not underestimate the impact of coaching on their people as it frequently creates a fundamental shift in their approach to their work. For example, increased self-confidence enables employees to bring more of themselves into the workplace. This results in employees being more resilient and assertive

Coaching can foster a culture of continuous learning, helps break down silos between different parts of the organisation, increase teams’ functionality and maturity by helping teams evolve faster than they could have done on their own and stimulate the entrepreneurial mindset of the employees.

1. Coaching Process - GROW

Coaching is a two-way communication process that requires that the supervisor and the employee both be fully engaged and motivated. Set specific measurable goals, agree on next steps in terms of actions and timing, and gain a commitment. Follow the employee’s progress.

The model was originally developed in the 1980s by business coaches Graham Alexander, Alan Fine, and Sir John Whitmore.

A good way of thinking about the GROW Model is to think about how you would plan a journey. First, you decide where you are going (the goal), and establish where you currently are (your current reality). You then explore various routes (the options) to your destination. In the final step, establishing the will, you ensure that you are committed to making the journey, and are prepared for the obstacles that you could meet on the way.

The GROW Model

GROW Model Diagram for Coaching

C) Engage

Coaching

2. Examine the current reality

Next, ask your team member to describe their current reality. This is an important step. Too often, people try to solve a problem or reach a goal without fully considering their starting point, and often they are missing some information that they need in order to reach their goal effectively. As your team member tells you about their current reality, the solution may start to emerge.

Useful coaching questions in this step include the following:

• What is happening now (what, who, when, and how often)? What is the effect or result of this?

• Have you already taken any steps toward your goal?

• Does this goal conflict with any other goals or objectives?

3. Explore the options

Once you and your team member have explored the current reality, it is time to determine what is possible – meaning all of the possible options for reaching their objective.

Help your team member brainstorm as many good options as possible. Then, discuss these and help them decide on the best ones.

By all means, offer your own suggestions in this step. But let your team member offer suggestions first, and let them do most of the talking. It is important to guide them in the right direction, without actually making decisions for them.

Typical questions that you can use to explore options are as follows:

• What else could you do?

• What if this or that constraint were removed? Would that change things?

• What are the advantages and disadvantages of each option?

• What factors or considerations will you use to weigh the options?

• What do you need to stop doing in order to achieve this goal?

• What obstacles stand in your way?

C) Engage

Coaching

4. Establish the Will

By examining the current reality and exploring the options, your team member will now have a good idea of how they can achieve their goal.

That is great – but in itself, this may not be enough. The final step is to get your team member to commit to specific actions in order to move forward toward their goal. In doing this, you will help them establish their will and boost their motivation.

Finally, decide on a date when you will both review their progress. This will provide some accountability, and allow them to change their approach if the original plan is not working.

Useful questions to ask here include:

• So, what will you do now, and when? What else will you do?

• What could stop you moving forward? How will you overcome this?

• How can you keep yourself motivated?

• When do you need to review progress? Daily, weekly, monthly?

C) Engage TRANSFORMATION TEAM FRAMEWORK

Coaching Example

You are helping a team member, Julie, achieve her goals using the GROW Model. Julie says that she would like a promotion to team leader within the next two years. This is a SMART goal – it is specific, measurable, attainable (as she already has one year of experience, and there are several team leader positions in her department), relevant (both to Julie’s overall career aspirations and the team’s mission), and time-bound.

You and Julie now look at her current reality. She is in an entry-level position, but she already has some of the skills needed to be team leader. You brainstorm the additional skills that she will need in order to be successful in a team leader role: She needs more experience of managing other people, and experience dealing with overseas customers. She also needs to continue performing well in her role, so that she will be considered for a promotion when one is available. You then both review her options. To get the experience she needs, she could lead a small team on a small project. She could also spend time in the overseas team.

Finally, you establish the will. As her manager, you offer to let her lead a small team on a minor project. If she performs well, she can take on additional projects with more responsibility in the future. Julie must also approach the overseas team to arrange to spend time in that department, and continue performing well in her current role. You agree to review her progress in three months’ time.

C) Engage TRANSFORMATION TEAM FRAMEWORK

Exercise Objective:

Understanding of three Levels of Engagement and process of engagement.

Exercise Process:

Follow the following steps as below:

Practice Postive Communication based on the materials with a team.

Develop a Win-Win performance agreement for a team member based on the example provided.

Practice the coaching process based on the materials and example given with a team member.

commitment

–

“Employee engagement is the emotional commitment the employee has to the organisation and its goals.” goals

engagement organisation

Kevin Kruse

Transforming Organizations

Transformation enables an organization to operate differently in support of their business strategy. It occurs at the enterprise, business unit or functional level, and leverages behavioral analytics, actuarial capabilities and research insights to drive the change.

In a world of unprecedented disruption and market turbulence, transformation today revolves around the need to generate new value—to unlock new opportunities, to drive new growth, and to deliver new efficiencies. All transformations require you to rethink how your enterprise creates value today and in the future.

Digital and emerging technologies, changing market conditions, and regulatory pressures are common external forces that drive business transformation.

Internally, it might be new leadership or an event such as a merger or acquisition that sparks change.

Whatever the driving cause, the same challenges apply: How can you align your organizational structure, talent, leadership, and culture with your business strategy to deliver true transformation and sustain it over time?

The Organization Transformation Framework embodies a model which ensures organizations get from Strategy to Execution.

It also takes into account the “ever changing world” and the disruptions which revolve around it.

The Framework is a 7-step approach which can be applied iteratively as a whole or independently to fix a particular business challenge.

It consists of the followings :

• Corporate Governance

• Sustainability Management

• Strategy Management

• Financial Management

• Customers & Marketing

• Operations & Technology / Digital Transformation

• Leadership & Organization Development

Transforming Organization

ASSESSMENT

It is always recommended to start with an organizational assessment. Performing a formal organizational assessment identifies strengths and weaknesses and requires the participation of key stakeholders.

An organizational assessment is also an excellent method to take a figurative step back and evaluate how the organization operates as a whole. This process is designed to help leaders assess where their organization is in the change process, identify organizational gaps, transformation risks/issues, and to determine what they need to do as they move through the process.

The Organizational Assessment provides a comprehensive evaluation of the organization’s strategic management system. It includes four stages:

Stage 1

Information Collection and Analysis

• Conduct interviews with management team.

• Review strategy management processes, documents, and plans.

• Compare your profile to best practice database.

Stage 2

Diagnostic

• Perform detailed analysis of each Transformation Framework principle.

• Define next steps to successfully implement strategy.

Stage 3

Recommendations and action plans for executives

• Identify customized learning program for leadership team with best practice examples.

• Define next steps to successfully implement strategy.

Stage 4

Analysis of progress and results

• Regularly assess progress in closing gaps to achieve breakthrough results.

The assessment will bring a profile of the organization based on each Vantage Point of Business Transformation Framework (Illustrative).

The assessment will bring a profile of the organization based on each Vantage Point of Business Transformation Framework (Illustrative).

The assessment will bring a profile of the organization based on each Vantage Point of Business Transformation Framework (Illustrative).

Transforming Organization

ASSESSMENT

Vantage Point - Corporate Governance - Illustrative

Observations:

• Well established Corporate Governance.

• Board meetings are held quarterly.

• Board reviews performance and investment risks but requires a structured process to manage it.

1.1 Board of Directors & Committees

1.2 Disclosure & Transparency

1.3

1.4

1.5

Proposed Improvements:

• Include Independent Directors who are subject matter experts as part of Board.

• Independent element board assessment is required to further strengthen/increase effectiveness of it.

• Sharing session should be held on the following to increase board effectiveness:

- Value creation

- Risk management

- Portfolio management

- Sustainability

Risk & Performance Management

Legal & Regulatory

Mission/Vision & Corporate Strategy

Transforming Organization

ASSESSMENT

Next Steps - Organizational Transformation Assessment - Illustrative

July - Dec 2020

Validate Strategy & Alignment

1. Refresh 2021 Strategy

a) Objectives

b) Strategic Initiatives

c) Accountability & Budgets

2. Develop 5 year Road Map

3. Refresh the basic concept of Strategy Execution (BSC), Develop Execution Plans

4. Review Shared KPI’s for Alignment

5. Strategy Review Meetings

a) Enhance reporting template and meeting agenda

b) Support Leadership team in developing report & driving meetings

6. Revitalize the OSM / Project Team

a) Equip team with skills

Jan - June 2021

July - Dec 2021

Business Process Enhancement

1. Innovation

a) Review & develop robust funnel planning process and pipeline

2. Operational Excellence Initiative

a) SCM - Network Optimization

b) Demand Forecast Planning process

c) Product rationalization to 80 SKU plus which contributes 20% margin

d) Review Automation and Manufacturing Improvement Initiatives

e) Streamline number of labour force at plants

f) Quality Improvements initiatives

g) Mobile reporting applications

Leadership Development & Readiness

1. Leadership Development Programs

a) Roll out Empowering Leaders in Execution Programs

b) Focus on developing future leaders

2. Develop Vision 2023 Strategic Human Capital Plan

a) Readiness of Global Organization

3. Execute Empowered Cultural Program

Transforming Organization

ASSESSMENT

18-Month “Strategy to Results” Roadmap - Illustrative

Activities

Strategy & Alignment Validation

2020 Strategy Refresh

5-year Roadmap Development

Alignment review of Shared KPI’s Strategy Review Meetings

OSM / Project Team Team Revitalization

Business Process Enhancement

Product Innovation Initiatives

Operational Excellence Initiatives

Leadership Development & Readiness Leadership Development Initiatives

“An organization, no matter how well designed, organization

is only as good as the people who live and work in it.” good live work

– Dee Hock

TRANSFORMING ORGANIZATION

1.0 Corporate Governance

Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate Governance refers to the way in which companies are governed and to what purpose. It identifies who has power and accountability, and who makes decisions.

It is, in essence, a toolkit that enables management and the Board to deal more effectively with the challenges of running a company. Corporate governance ensures that businesses have appropriate decision-making processes and controls in place so that the interests of all stakeholders (shareholders, employees, suppliers, customers and the community) are balanced.

Governance in practice...

Good governance is not an end in itself. The reason governance is important is that good governance helps an organization achieve its objectives. On the other hand, poor governance can bring about the decline or even demise of an organization.

The basic building blocks that need to be considered when establishing or reviewing governance arrangements are:

• strong leadership, culture and communication.

• appropriate governance committee structures.

• clear accountability mechanisms.

• working effectively across organisational boundaries.

• comprehensive risk management, compliance and assurance systems.

• strategic planning, performance monitoring and evaluation.

• flexible and evolving principles based systems.

TRANSFORMING ORGANIZATION

1.0 Corporate Governance

Why improve corporate governance?

This is what the law and guidelines mandate. This is what international community demands. It makes good business sense.

Types of Board

Generally there is Board set up by all companies which is referred to as Governing Board

Operating Board is another concept which has evolved lately for companies that are not listed in stock exchanges, and are more hands-on in running the company. This type of set-up also helps companies to gradually move to a Governing Board.

•

TRANSFORMING ORGANIZATION

1.0 Corporate Governance

Corporate Governance Framework Elements

i. Board Directors & Committees

• Board Composition

• Board Committees

• Board Meetings

ii. Legal & Regulatory

• Corporate Governance Codes/manuals, Code of Ethics

• Role of Corporate Secretary

• Board and Committee Charters

• Shareholder Rights and Treatment of Minority Shareholder

iii. Leadership & Organization

• Support of company structure review and organization

• Support of key position hiring (C-level position)

• Support the compensation process

• Support development of Leaders and their execution of initiatives

iv. Transparency and Disclosure

• Integrity of financial and non-financial reporting

• External audit function

• Disclosure policies

v. Risk & Performance Management

• Risk evaluation and reporting

• Practical risk management

vi. Strategic Direction & Policy Development

• Review and advice on Strategy

• Ensure adherence to organization economic and social framework (CSR / Sustainability policies)

Corporate Governance Framework

1.0 Corporate Governance

Board Roles and Responsibilities

ORGANIZATION

1.0

Corporate Governance

Board Strategy Map clarifies how it contributes

Source: Kaplan & Norton Execution Premium

1.0 Corporate Governance

Source: Kaplan & Norton Execution Premium

TRANSFORMING ORGANIZATION

1.0 Corporate Governance

Board Strategy Map Template

1.0

Corporate Governance

Board Balanced Scorecard Template

1.0 Corporate Governance TRANSFORMING ORGANIZATION

Sample - Annual Agenda of Board Meeting

1.0 Corporate Governance

1.0 Corporate Governance

Sample - Minutes of Board Meeting

Minutes of a Meeting of the Board of Name of Company

Date & Time Location

Present: A Director, Chairman

B Director, Non Executive Director

C Director, Non Executive Director

D Participant, CEO

E Participant, Chieft Financial Officer

F Participant, Company Secretary

G Participant, Safety Auditor (item 6 only)

Apologies: H Director, Non Executive Director (overseas)

1 Opening and attendance

A quorum was present and the meeting opened at 10.05 am. An apology was noted from H Director.

1 a) Conflicts of interest: A Director informed the board that B Director has called him upon receipt of the board papers because G Participant was the brother of his son in law. The board discussed the potential conflict and resolved that, as B Director had not been involved in the hiring decision and as the safet audit was now complete, B Director would be invited to participate in the discussion of item 6 but not in any decisions arising from it.

2 Minutes of previous meeting

Resolved: That the minutes of the previous meeting, previously circulated by email, be signed as a true record of that meeting.

3 Matters arising

The board noted that all matters arising were either complete, not yet due, or covered in the meeting agenda. The board noted the use of external contractors to undertake many of the items and requested a report on projected contracting spend and the possible lack of intellectual property within the company on safety standards and auditing.

Action: HR Manager/Co. Secretary to draft report on IP and contracting. Due May meeting.

4 CEO’s Report

The CEO reported that the company was still LT1 free and that there were plans to celebrate this with supervisiors next month as we have now reached a two year milestone. All staff will get a ‘two safe years’ commemorative mug.

The new HR Manager is settling well into his role and has started a review of employee retention practices as well as the anvisafed development of a recruitment strategy.

The best of the report was taken as read. The board noted the excellent result in customer satisfaction rating and the changes proposed to the intellectual property clauses of contracts to safeguard ownership of IP.

The board requested that the engineering manager provide a report and presentation the board on the recent drop in tender responses.

Action: Engineering Manager to provide report and presentation to board on tender responses. Due: August Meeting.

5 Finance Report

The board noted the impact of urgent repairs and asbestos removal from head office on the expected profit at year end. The effect of this on the allocation of resources to the growth projects was discussed in depth.

The CFO was congratulated on the drop in working capital which has been achieved through better credit controls and a targated plan of personal attention to overdue debtors with cash on delivery requested for recalcitrant cases.

6 Safety Audit presentation

G Participant joined the meeting. The board discussed the results of the safety audit. It was resolved to conduct an additional review of the safety culture in six months time and to authorise unbudgeted expenditure on the recommended training programs. G Participant left the meeting.

14

General Business

There were no items of general business.

15 Close

The meeting closed at 13.10pm.

“Good corporate governance, it’s about being proper and prosper” proper prosper

TRANSFORMING ORGANIZATION

2.0 Sustainability Management

What is sustainability management?

The term sustainability itself has numerous definitions and interpretations. Consensus on the interpretation of sustainability remains elusive, despite decades of scholarly work and practical applications. The most commonly used definition is from the 1987 Brundtland Report, Our Common Future, which defined sustainable development as, “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (World Commission on Environment and Development, 1987).

Since then, the concept of sustainability management has developed from a conceptual understanding of development to prescriptive strategies that minimize environmental impact and maximize resource conservation. In Steven Cohen’s 2011 work, Sustainability Management, he observed that, “Sustainability management is simply the organizational practices that result in sustainable development”.

Sustainability management is economic production and consumption that minimizes environmental impact and maximizes resource conservation and reuse.

The depletion and degradation of our natural resources have changed the cost structure of production in all organizations.

Leaders and managers must now double down on efforts to make efficient use of energy, water, and other raw materials, and must pay attention to the content and full cost of waste produced by their production processes. The issue of sustainability is no longer an add-on to other factors routinely addressed by management; it has moved to the core of management concerns (Unruh, 2014).

Sustainable management has been created to be defined as the application of sustainable practices in the categories of businesses, agriculture, society, environment, and personal life by managing them in a way that will benefit current generations and future generations.

Peter Ulrich Swiss Economist and the founder of Integrative Economic Ethics

“Few trends could so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible.”

TRANSFORMING ORGANIZATION

2.0 Sustainability Management

Causes of Global Sustainability Issues

ENVIRONMENTAL ISSUE

GLOBAL POPULATION

RAW MATERIALS AND ENERGY

• Climate change, global warming, desertification, soil erosion, hurricanes

• Ecocide, pollution, radiation exposure

• Forest dieback, extinction

• Air pollution

• Population explosion

• Conflicts over water, mineral resources, wood, pastures and arable land

• Migration and urbanization

• Terrorism, religious and clan warfare

• Increased demand on energy and natural resources

• Industrial waste conflicts

• Depletion of oil, gas, coal, wood, rare-earth elements

TRANSFORMING ORGANIZATION

2.0 Sustainability Management

• Poverty, malnutrition

• Lack of education, illiteracy

• Illness, air and water pollution

• Lack of basic supplies

• Soil erosion, water shortage

• Malnutrition

• Food pollution

• Distribution and storage problems

• Child labor

• Wage dumping, work safety

• Discrimination, injustice

• Oppression, lawlessness

2.0 Sustainability Management

2.0 Sustainability Management

2.0 Sustainability Management

Model of Sustainability Over Time

Since 1990, sustainability has become an increasingly important political and social issue, creating greater demands on companies. Many companies go above and beyond their own corporate commitment to sustainability.

2.0 Sustainability Management

TRANSFORMING ORGANIZATION

2.0 Sustainability Management

Sustainability Management Framework

Corporate sustainability emphasizes growth and profitability through intentional business practices in three pillars of society; Environment, Social and Economy. The goal is to provide long-term value for stakeholders without compromising people, the planet, or the economy.

Sustainability Management Framework

2.0 Sustainability Management

Sustainability Management Framework

The environmental pillar is often the most talked-about of the three pillars of corporate sustainability. It includes various actions companies can take to reduce their environmental impact and carbon footprint. Examples include reducing packaging waste, reducing water usage, recycling materials, and using sustainable energy sources.

The social pillar focuses on a company seeking the approval of its stakeholders, employees, and the local community

A big part of corporate sustainability is a company’s dedication to taking good care of people inside and outside of the business. Social pillar practices include eliminating child labour, offering paternity and maternity leave, and giving back to the community.

The economic pillar involves implementing sustainable business practices to promote long-term profitability. After all, a company cannot have a positive impact on the environment or community if it is not profitable. Elements of the economic pillar include compliance and good corporate governance. Meaning, the values of stakeholders and management align in terms of how to spend resources. The economic pillar makes it possible for a company to strategize and invest in new corporate sustainability methods.

All that said, no one pillar should overshadow the others. Otherwise, businesses get caught trying to cut corners and increase profits unethically.

1. Environmental Pillar

2. Social Pillar

3. Economic Pillar

2.0 Sustainability Management

The Three Pillars of Corporate Sustainability Management

ENVIRONMENTAL SUSTAINABILITY

• Adjust value chain to very low usage of all resources.

• Select resources of sufficient supply.

• Process used resources with minimum energy and emissions.

• Avoid air and water pollution as much as possible.

• Strive for closed loops and recovery.

• Design materials and products for optimum recyclability.

• Goal is balance between consumption and regeneration of natural resources including resource recovery.

The

2.0 Sustainability Management

Three Pillars of Corporate Sustainability Management

ECONOMIC MANAGEMENT

• Ensure company’s medium- and long-term economic performance.

• Use resources efficiently and the necessary conversion to long-term available resources.

• Analyze future requirements of international legislation concerning the product range.

• Commit early to research and development

• Strive for innovative leadership.

• Use market strength for high sales volume at attractive prices.

• Communicate product range‘s level of innovation to increase value and rating of the company.

2.0 Sustainability Management

The Three Pillars of Corporate Sustainability Management

SOCIAL SUSTAINABILITY

• Consistently consider legitimate needs of staff, at work and home.

• Support training and personal development.

• Respectfully treat local environment; ensure needs of local residents and municipalities are taken into account.

• Financially support foundations, associations and projects with social, cultural or educational activities.

• Initiate and build long-term success in independent, creative projects in the areas mentioned above.

2.0 Sustainability Management

Key Strategy Components

2.0 Sustainability Management TRANSFORMING ORGANIZATION

Sustainability Strategy

Strategic Focus according to Three Key Principles: Efficiency, Sufficiency, Consistency

EFFICIENCY SUFFICIENCY CONSISTENCY

Increase efficiency to achieve the same result with less resources.

Practice frugal consumption, “live well with less”, downsizing, the slow movement.

Replicate principles of nature and biosphere processes, circular economy, recyclable waste materials.

2.0 Sustainability Management

Measures of Strategic Objectives Within the Three Pillars

• Risk management in procurement and sales markets.

• Far-sighted corporate governance performance.

• Optimization of key figures: equity ratio and return on equity, reserves ratio, investment rate and ROI.

• Shareholder value, brand equity, goodwill, expectations, vision.

• Employee recruitment and relationship.

• Diversity management.

• Motivation, pay system.

• Environmental management, waste water and air management, waste management.

• Commitment to biodiversity.

• Life cycle analysis.

• Production and utilization; recycling and disposal.

• Supply chain management.

• Reporting on environmental performance indicators.

• Ecological assessment.

• With key figures and time series.

• Forecast possibilities and actions.

• Health and safety for employees and environment.

• Labor and social standards for the entire supply chain.

• Employee participation and trade unions.

• Training, staff development and diversity management.

• Stakeholder management.

• Socio-cultural and communal commitment.

• Informative communication with suppliers and customers.

2.0 Sustainability Management TRANSFORMING ORGANIZATION

Sustainability Strategy - Example (Case Study)

Sustainability Pioneers

Examples of companies that optimize their value chain in terms of sustainability and increase sustainability for customers with their products.

3M SAP SIEMENS

• Ambitious and quantifiable corporate objectives.

• Detailed sustainability program.

• Consistent implementation with overachievement of targets.

• Range of software solutions, in-house measures and experiences are the basis of complex software solutions.

• Products support: determining correlations, quantifying effects, calculating key figures, transparent reporting.

• Solid anchoring of responsibilities for sustainability in the organization; Chief Sustainability Officer is a board member.

• Adheres to international requirements for transparency and reporting i.e. Global Reporting Initiative (GRI).

ORGANIZATION

2.0 Sustainability Management TRANSFORMING

Sustainability Strategy - Example

Sustainability Balanced Scorecard (SBSC)

STRATEGY

MISSION

Our organization behaviour and HOW we will achieve our VISION

Our deliberate organization action and WHAT we will do to get our VISION

FINANCIAL PERSPECTIVE

Profit - Incoming Orders - Liquidity Economic Value Added (EVA)

CUSTOMER PERSPECTIVE

PERFORMANCE MILESTONES

INTERNAL BUSINESS PROCESS PERSPECTIVE

Advertising Success Rate - Market Share Contribution - Margins - New Products - Complaints

Manufacturing Compliance - Delivery Capability - Defective Goods - New Investment

WHERE we are going

LEARNING AND GROWTH PERSPECTIVE

Our organization direction and

Staff Turnover - Absences - Innovation Rate

VALUES

Our organization drivers and WHY we will achieve our VISION

VISION

TRANSFORMING ORGANIZATION

2.0 Sustainability Management

Sustainability Strategy - Example

Sustainability Balanced Scorecard (SBSC)

BSC PERSPECTIVE

SUSTAINABILITY DIMENSIONS

ECONOMIC SUTATINABILITY

FINANCIAL PERSPECTIVE

CUSTOMER PERSPECTIVE PROCESS PERSPECTIVE

Profitability, Cash Flow, Enterprise Value

Customer satisfaction, Customer Loyalty, New Customers

Productivity, Throughput Time, Scrap Rate

LEARNING AND DEVELOPMENT PERSPECTIVE

Innovative Capacity, Employee Satisfaction

SOCIAL SUSTAINABILITY

Voluntary Social Benefits, Profit-Sharing, Social Sponsorship

Product Safety, Product Related Information Policy, Social Added Value

Humanization of Work, Occupational Accidents, Realized Suggestions for Improvement

Training Programs, Degree of Participation, Flexible Working Hours

ENVIRONMENTAL SUSTAINABILITY

Environmental Investments, Resource Costs, Environmental Levies, Environmental Sponsorship

Product Responsibility, Product Take-Back and Recycling Systems, Leasing Concepts

Resource and Energy Efficiency, Material Flows, Land Use

Environmental Research and Development, Environmentally - Oriented Environmental Training

2.0 Sustainability Management

Sustainability Strategy

Implementation of BSC in companies through these measures:

Define Original Objectives of the Vision for Relevant Perspectives

• Finances

• Processes

• Employees

• Customers

Integration of BSC Performance Indicators in Regular Controlling Areas

• Reporting

• Budgeting

• Forecasting

Process of Regular Control and Revision of Performance Indicators and Their Relevance to Success

• Target-actual comparison

• Assessment of implications and consequences

Communication of Company Vision

• Representation of derived objectives and performance indicators for regions, departments and teams

TRANSFORMING ORGANIZATION

Sustainability Management

Sustainability Strategy

Quantification of Factors for Strategy Implementation

COMMITMENT RESOURCES SCOPE

• To what extent are people, processes and products included?

• How ambitious is the timeframe scheduling?

• How extensive should sustainability implementation be?

• Are products, divisions or the company included?

• How high should the budget be?

• What are the EDP possibilities?

• Are sufficiently competent employees available?

• Or do they need to be recruited on short notice?

Sustainability Management

“Sustainability is no longer about doing less harm. Sustainability

It’s about doing more good.” more good

– Jochen Zeitz

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy management has become crucial in the world of business and the fast-changing world in which we live and work. Strategy defines how a firm will achieve long-term success. Determining the strategy is a critical decision for management because it involves a significant commitment of resources and, once initiated, it is very difficult and costly to change.

Strategy management is an essential component of businesses. It refers to the formulation and implementation of goals and initiatives involved in strategies, laid out by stakeholders of an organisation.

Strategy management therefore entails evaluating business goals, the organisation’s vision and objectives, as well as the future plans. In addition, a strategy management process is employed to ensure that the business runs effectively and efficiently.

Communicating this strategy internally and externally is crucial for success, in order for both staff and the organisation to understand the purpose and direction. Additionally, it enables external parties to understand what you as an organisation stands for.

3.0 Strategy Management TRANSFORMING ORGANIZATION

Challenges in Managing Strategy

1. Unclear values and conflicting priorities

• Lack of clearly defined and articulated direction — strategy and values — to guide organizational behavior.

• Conflicting priorities, conflicts over resources, and poor strategy execution, due to functions and businesses each championing their own priorities.

• People feeling overloaded, due to everything being labeled a priority

2. An ineffective senior team

• Most of the time spent in meetings is spent on information sharing and updates on short-term operational details — sometimes known as “death by PowerPoint” — rather than on confronting and resolving tough strategic and organizational issues.

• There is little constructive conflict in meetings. The real decisions get made outside the room.

• Members of the senior team do not speak with a common voice about strategy and priorities.

3. Ineffective leadership styles

• The leader tends to get lost in the operational details and works “one level below their pay grade.”

• The leader is not visible. They spend relatively little time on communicating overall strategy or direction or on forcing constructive debate in order to resolve contesting views.

• The leader does not confront issues or people directly to resolve festering conflicts.

3.0 Strategy Management TRANSFORMING ORGANIZATION

4. Poor coordination

• It is painfully hard to execute on cross-functional, business, or geographic initiatives, often even despite good personal relationships.

• Work on horizontal cross-boundary teams is seen as secondary to meeting the goals for one’s own unit (e.g., function, business, or region).

• The roles, responsibilities, and decision rights of functions, business units, or regions are unclear.

5. Inadequate leadership development

• It keeps coming down to the same usual suspects when something important needs to get done.

• Too few opportunities are provided for leadership and management development.

• The senior team does not review leadership talent regularly or offer career paths that enable the development of general management capabilities.

6. Inadequate vertical communication

• There are few forums for upward communication in which managers and associates can openly and publicly communicate with senior management in a low-risk environment.

• Open, public discussion of difficult issues goes against the cultural grain.

• Senior leaders rarely if ever, ask subordinates to tell them about problems that stand in the way of the company’s effectiveness or how those problems can be improved.

Source: 6 Reasons Your Strategy Isn’t Working - HBR June 2020

Michael Beer

3.0 Strategy Management TRANSFORMING ORGANIZATION

Why Strategy Fails

Research explains why most organizations lack the capability to manage strategy.

Typical Strategy Execution Barriers

“We have a strategy; we just can’t explain it that easily.”

“Our leadership team does not agree on our key priorities.”

“We are trying to do 100 things, rather than do 15 critical thing well.””

“We are a collection of silos that do not collaborate.”

“Recognition and rewards are not based on driving the change we need.”

“ Our strategic, operational, and financial plans are not aligned.”

“We spend too much time and effort creating plans instead of getting value from the planning process.”

“ Our management meetings are ineffective.”

“We do not know if our strategy is working-we cannot understand or agree on drivers of under performance-until it is to late.””

Typical company only 5% awareness

Only 25% of managers have incentives linked to overall strategy

60% of companies do NOT link budgets to strategy

85% of exec teams spend < 1 hr/month discussing strategy

Inability to Test and Adapt Performance

Source: Kaplan & Norton Strategy Focused Organization

3.0 Strategy Management

Part of the problem with execution is that the major components of most organisation’s governance process are out of alignment

Successful execution requires governance that brings these meta processes into alignment

3.0 Strategy Management

A common set of principles that guide the organization to make informed decisions needs to be established.

• Clear objectives

• Performance measures

• Targets

• Initiatives

• Reporting

• Governance

• Dynamic decision making

• Behavioral development

3.0 Strategy Management

Strategy Management Framework

The Execution Premium Process provides an integrated framework to execute strategy and drive alignment between:

• Strategy

• Operations

• Leadership

• Organization

Palladium Execution Premium Process (XPP)™

Source: Kaplan & Norton The Execution Premiium

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management Framework

At the highest conceptual level, the Strategy Management System is a framework that helps organizations translate strategy into operational objectives that drive both behavior and performance.

The new strategy management system is built around a shared framework for Strategy that standardizes language and conventions, and permits integration of the silos.

Source: Kaplan & Norton The Execution Premiium

3.0 Strategy Management

Strategy Management System

1. Develop the Strategy

The integrated management system begins with managers developing the strategy. During this process, companies address three questions:

A) What are the key issues? (Conduct strategic analysis) through PESTLE, SWOT and Strategic Agenda (the need for strategy changes)

B) What business are we in, and why? (Clarify your mission, values, and vision)

C) How can we best compete? (Formulate the strategy)

In the final step, executives create a strategy by addressing these issues:

• In what niches will we compete?

• What customer value proposition will

• differentiate us in those niches?

• What key processes create strategy differentiation?

• What are human capital directions required by the strategy?

• What are technology enablers of the strategy?

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

A) SWOT Analysis

Identify the following in the Organization:

• Strengths

• Weaknesses

• Opportunities

• Threats

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

The following areas will guide your thinking in developing the SWOT Analysis:

Financial

• Investment in new plants / equipments

• Assets utilization

• Cost of goods

Customers

• Satisfaction level of customers

• Trends and future needs of our customers

Internal Process

• Production challenges

• Product portfolio

• R&D

• Suppliers

Learning & Growth

• Skilled workforce

• Retention

• Training

• Information capital

• Technology

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

SWOT Analysis Template

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

SWOT Analysis Template

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

B) Mission, Values and Vision Statement Summary

3.0 Strategy Management

Strategy Management System

Writing a Vision Statement

Option A: Quantitative Method

Vision provides guidance regarding the future direction of an organization. It answers the question: “Where are we going?”

Point B

Point A

1. Quantification of the highest level success indicator.

Three important components in a vision statement: “ Top quartile in profitability”

2. Definition of the niche in which to compete.

“Domestic market”

3. A timeline for execution.

“5 years”

3.0 Strategy Management

Strategy Management System

Example: Vision Statement

Qualification of the highest- level success indicator Definition of niche in which to compete

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

Writing a Vision Statement

Option B: Qualitative Method

Written based on the Purpose (Mission) & Values of the organization.

Examples: Vision Statement

Disney

To make people happy

Cold Stone

Creamery

The ultimate ice cream experience

Charles

Schwab

To make people happy

Harley Davidson Motor Company

To fulfil dreams through the experiences of motorcycling

Instagram

Capture and Share the World’s Moments

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

C) The “Value Gap” is the starting point for any strategy

The strategic vision establishes the long term aspiration. The vision can be established in many ways:

• Shareholder expectations

• BHAG (“Big, Hairy, Audacious Goals”)

• Competitive benchmarks (e.g., Growth Rate)

The value gap defines the difference between an organization’s aspiration and its reality. How to close the value gap is the essence of a strategy.

The Vision

“To be the biggest, best and most profitable”

The Strategy

Source: Kaplan & Norton The Execution Premiium

of Strategy Definition

Break

“A good strategy sets objectives for a company with clear choices about which market to target, how to serve the specified market in a

and

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

Approach to Strategy Development

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Strategic Theme Template

Strategic Theme

What are our goals?

Where will we play?

How will we win?

Assets and Capabilities required

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

Example - Private Sector Strategic Direction : Expand Transportation

IMA

Strategic Theme

Expand Transportation

What are our goals?

• Revenue USD 56.2m by 2020

• Revenue USD 27.9m by 2016

Where will we play?

• To focus on direct customers such as AM, B etc. Acquisition of long term contracts.

• We also need to extend our industry base and enter in new areas such as heavy lift business.

How will we win?

Assets and Capabilities required

• With efficient sales and marketing services to develop various new businesses.

• More importantly we also need to develop our after sales service department.

• Manage other companies transport division

• Modernization of our fleet.

• Specialized fleet and equipment such as temperature controlled and heavy lifts.

• Increase operational and customer care team with qualified specialists.

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

Example - Public Sector Strategic Plan : Leverage Global Technology Partners for Innovations & Trainings

CTES

Strategic Theme

Leverage Global Technology Partners for Innovations & Trainings

What are our goals?

• Builds 3 new partners to create new programmes in a year (Technical, Digital & Heritage)

How will we win?

Assets and Capabilities required

• Build good relationship and benchmarking (site visits, events, roundtable) with strategic partners (in terms of knowledge and technology transfer), to align with industry demand)

• Policy dialog (We are supported by government and coordinating agencies)

• Competent trainers.

• To improve innovation and training effectiveness with better financing.

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

Example Private Sector Strategic Direction : Sustain & Optimize Shipping Agency Business

AET

Strategic Theme

What are our goals?

• USD 83 Million by 2020

Where will we play?

• In the KSA market, GCC

Sustain & Optimize Shipping Agency Business

How will we win?

Assets and Capabilities required

• JV with existing Shipping line - KSA

• Setup offices in Oman (Sohar), Qatar (Doha) and Dubai(2018)

• Hire Sales & Marketing staffs to drive sales.

• Ensure existing shipping lines stay (MOL & H) with us,

• Add more shipping lines in GCC

• Market intelligence, client data base

• Develop a plan to separate into 2 business units - MOL and H lines

• Review manpower, training, allocate cost, budget separately, systemize and streamline accordingly.

• Required more manpower in sales, integrated shipping system which can monitor and manage operation and finance simultaneously.

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

2. Translate the Strategy

In this stage, managers plan the strategy by developing strategic objectives, measures, targets, initiatives, and budgets that guide action and resource allocation. Companies typically address four questions in this stage:

How do we describe our strategy?

A strategy map provides a one-page visual representation of all strategic dimensions, which we now call strategic themes.

How do we measure our plan?

In this step, we convert the objectives defined in the strategy maps and strategic themes into a Balanced Scorecard of measures, targets, and gaps.

How do we fund our initiatives?

This requires explicit funding for the portfolios of strategic initiatives. The creation of a special budget category called STRATEX (strategic expenditures) facilitates this.

Who will lead the execution of the strategy?

They assign executives to become theme owners, fund them with STRATEX, and support them with theme teams drawn from across the organization.

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

Strategy Map built around Strategic Themes

VISION: By 2020, become the leading company in our industry

F1 -

Increase return on capital

F3 -

Improve productivity

F2 - Increases revenues in existing segments and markets

Improve quality and productivity

C1 -

Grow high value customer relationships

C2 -

“Be a leader in quality and reliability”

“Provide valued service, applications, expertise and support”

F4 -

Grow revenues in new products and services

Accelerate product innovation

C3 -

“Introduce innovative, high performance products and solutions”

P1-

Improve supply chain efficiency and effectiveness

P2 -

Improve quality, cost and flexibility of operating processes

L1 -

Expand and build strategic skills, capabilities and expertise

I4 -

I5 -

Optimize customer profitability

I3Expand channels, offerings and markets

Build and maintain strong customer relationships

Create a High Performance Culture

L2 -

Develop leadership and an execution-driven culture

Source: Kaplan & Norton The Execution Premium

I6Identify next generation market opportunities

Excel at technology, product development and life cycle management

I7 -

L3 -

Enable and require continuous learning and knowledge sharing

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

The Balanced Scorecard then creates the management framework for each theme

Source: Kaplan & Norton The Strategy Focused Organization

3.0 Strategy Management

Strategy Management System

The Balanced Scorecard then creates the management framework for each theme

Source: Kaplan & Norton The Strategy Focused Organization

3.0

3.0 Strategy Management

Strategy Management System

3. Align the Organization with the Strategy

This process captures the full benefits of operating a multi-business, multifunction organization, the executives of its individual business and functional units. All employees must understand the strategy, and they must be motivated to help the company succeed with the strategy. Companies address three questions during the alignment process, and these must link the company strategy to the strategies.

How do we ensure that all organizational units are on the same page? (Align business units) Corporate strategy is described by a strategy map that identifies the specific sources of synergies. Managers then cascade this map vertically to business units, whose own strategies can then reflect:

1. Objectives related to their local strategies and

2. Objectives that integrate with the corporate strategy and the strategies of other business units.

How do we align support units with business unit and corporate strategies? (Align support units)

1. Support units should negotiate servicelevel agreements with business units to define the set of services they will provide.

2. Creating support unit strategy maps and scorecards, based on the service-level agreements, enables each unit to define and execute a strategy that enhances the strategies being implemented by business units.

How do we motivate employees to help us execute the strategy?(Align employees)

1. Companies use formal communication programs (“communicate seven times seven different ways”) to help employees understand the strategy and motivate them to achieve it.

2. Managers reinforce the communication program by aligning employees’ personal objectives and incentives with business unit and company strategic objectives.

3. Also, training and career development programs help employees gain the competencies they need for successful strategy execution.

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Alignment Defined

Alignment is about making the whole greater than the sum of its parts. As leaders cascade and integrate their units’ scorecards, they generate tremendous benefits for their organization: Synergy Resource Focus

They gain insight into what their business units must do to fulfill higher-level strategic objectives and capture synergies across units.

They clearly see how to best focus their business unit’s resources to achieve the overall organization’s mission.

Understanding

People understand how their own efforts relate to the overall organization’s strategic objectives.

Communication and Action

Along with other business unit leaders, they find it easier to communicate - and design action plans for strategic objectives.

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Alignment Defined

This vertical and horizontal coordination is known as alignment. When an organization achieves alignment:

Everyone understands his or her part in executing the organization’s strategy. There is a direct “line of sight” to the enterprise strategy.

Organizations create synergies; unexpected opportunities to generate results that benefit the participating units and the overall organization.

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Maps are a tool to assist aligning the strategy across the organization.

KPIs / Targets / Initiatives

KPIs / Targets / Initiatives

KPIs / Targets / Initiatives

Strategic Alignment

Testing the “what” (strategic priorities) gets cascaded down through the organization; the “how” (strategic results) gets rolled back up.

Level 3 - Regions / Retail etc

Level 3 - Deparments

Source: Kaplan & Norton The Execution Premiium

TRANSFORMING ORGANIZATION

3.0 Strategy Management

“Cascading” creates synergy across the organization that is based on a clear understanding of the corporate role.

The Balanced Scorecard aligns priorities throughout the Organization

Source: Kaplan & Norton The Execution Premiium

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Alignment Through Themes

Themes Defined Strategic Themes:

• Help to focus the organization on arriving at the strategic destination

• Are usually limited to 3 5 major business thrusts

• Include a stream of linked objectives

• May slice across all four business perspectives

© 2008 Balanced Scorecard Collaborative, a Palladium company

Financial

Customer Internal Process Learning & Growth

Customer Management Innovation Operations

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Themes as Tools in Alignment

Themes:

• Form the language of the strategy

• Focus business units on strategic importance, not tactical urgency

• Focus business units on key areas of management (i.e. innovation, customer management, operating efficiency)

We often find themes in an organization’s existing:

• Goals

• Areas of focus

• Key business drivers

• Strategic direction

Area of Focus

Goals

Strategic Direction

Key Business Drivers

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

Theme Cascade Approaches Using Themes

Themes

Cascade themes if you want to reinforce a common focus, such as “product innovation”, across the organization.

Similar operations mean that themes should be mandated and remain consistent across the organization.

Objectives

Themes

Passive Role (Holding Company)

Active Role (Operating Company)

Cascade Approaches - Using Objectives

Cascade objectives that reflect shared policy or stakeholder priorities - most often seen in the financial and learning & growth perspectives.

The majority of objectives on the parent scorecard should be cascaded to sub-organizations when they are operationally similar.

Passive Role (Holding Company)

Active Role (Operating Company)

Many organizations fall somewhere on a spectrum between these two definitions. It’s a matter of degree.

Source: Kaplan & Norton The Execution Premiium

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

Objective Cascade Methods Overview

Identical

Same objectives

Translated, but matching objectives

Contributory New

Unique objectives that do not link directly to the parent

Source: Kaplan & Norton The Execution Premiium

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Vertical Alignment

Roles and Responsibilities

Department Role:

• Identify contribution to corporate objectives.

Corporate Roles:

• Confirm contribution to corporate objectives.

• Remove objectives that are not aligned to the unit’s strategy.

• Approve Department objectives and measures that are aligned to the unit’s strategy.

Source: Kaplan & Norton The Execution Premiium

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Vertical Alignment

Objective Matrix

Purpose: To check Department’s alignment to Corporate/Group objectives

Sufficient Coverage to Meet Corporate Objectives???

Source: Kaplan & Norton The Execution Premiium

3.0 Strategy Management TRANSFORMING ORGANIZATION

Horizontal Alignment

Alignment Workshop

Department’s Role:

• Identify contribution to corporate and SBU objectives.

• Propose cross unit coordination where applicable (shared objectives).

Corporate Roles:

• Confirm contribution to corporate objectives.

• Remove objectives that are not aligned to the unit’s strategy.

• Validate department’s objectives and measures relevant to the unit.

Source: Kaplan & Norton The Execution Premiium

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Shared Objectives

Shared objectives among business units can promote synergy in the organization - exposing value previously untapped.

Corporate Strategy Map

Source: Kaplan & Norton The Execution Premiium

Two or more Departments jointly own an objective

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Horizontal Alignment

Objective Matrix

Purpose: To check Department’s alignment to Corporate and other Departments’ objectives.

Sufficient Coverage to Meet Corporate and DepartmentalObjectives???

Source: Kaplan & Norton The Execution Premiium

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Enabling an organization to realize these synergies requires that strategies throughout the business are aligned to deliver the greatest value.

Corporate

Source: Kaplan & Norton The Execution Premiium

Vision without execution

execution is

hallucination.

- Thomas Edison

3.0 Strategy Management TRANSFORMING ORGANIZATION

Vertical Alignment Examples Gap

Observations

There is a vast difference between SIGMA Group Revenue Target with the Business Units:

• SIGMA – IMA Target: USD 300 Mil vs USD 270 million

• SIGMA – AET Target: USD50 Mil vs SAR USD 40 million

Each company has to review and plan for new sources of revenue to close the gap in the next few months.

Potential Overlap Objective

IMA is planning to establish FF/CC services as an added value service for existing customers, and on the other hand AET is planning to establish a FF unit in the next few months. Detailed scope of work needs to be discussed for each company to enable management decision (e.g. JV between IMA and AET).

All other objectives from 3 companies (IMA, AET, STTB) and 3 Service Departments (Finance, HR, IT) are tightly integrated with SIGMA Group Objectives.

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Vertical Alignment Examples

Objectives are I: Identical, C: Contributory, N: New Objectives or NA: Not Applicable

3.0 Strategy Management TRANSFORMING ORGANIZATION

Horizontal Alignment Examples

Observations

Potential Collaboration

FF Services, to discuss immediately with IMA to understand the scope to avoid overlap or future disputes.

Revenue Gap

• AET has currently targeted Revenue of USD 30 million versus SIGMA Group’s target revenue for AET which is USD 50 million.

• AET Management needs to work on identifying and planning for new sources of revenue to close the gap in the next few months

• Finance – to provide financial reports on-time for business discussion and financial indicators to prepare for the Management for any advantageous or adverse situations

• IT – to provide System Integration to government departments to improve efficiency and productivity

3.0 Strategy Management

Horizontal Alignment Examples

Notes: Establishing FF Services are overlapped with IMA Objective

Objectives are I: Identical, C: Contributory, N: New Objectives or NA: Not Applicable

3.0 Strategy Management TRANSFORMING ORGANIZATION

Horizontal Alignment Examples

Human Resource (HR)

Observations

HR Department in the past was always seen as P&A department (managing staff payroll and other administrative activities). It is welcomed news for all SBUs & SSUs that this department makes the transition to Human Resources.

Below are a few key requirements from SBUs and SSUs:

• Pro-active & efficient recruitment process

• Better working environment

• Training and development programs to improve current staffs’ soft and technical skills

• Better company benefits based on performance

Government Relation (GR) functions are not part of HR. Many HR activities (especially entry and exit visas, operating licenses, etc.) are dependent on GR. It is becoming a bottle neck and impacting many business areas. Hence there will be a separate discussion on this matter with GR Manager to sort out pending issues and find ways to move forward.

3.0 Strategy Management

Horizontal Alignment Examples

Human Resource (HR)

Objectives are I: Identical, C: Contributory, N: New Objectives or NA: Not Applicable

3.0 Strategy Management

Strategy Management System

4. Plan Operations

How a distinguishing feature of the comprehensive management system articulated in this book is its explicit link between long-term strategy and daily operations. Companies need to align their process improvement activities with strategic priorities. Also, funding for resources to operate the business must be consistent with the strategic plan. During the operational planning process, managers address the following two key questions:

Which business process improvements are most critical for executing the strategy? (Improve key processes)

• Some process improvements are designed to deliver the financial perspective’s cost reduction and productivity objectives, whereas others focus on excelling at regulatory and social objectives.

• Companies need to focus their total quality management, Six Sigma, and reengineering programs on enhancing the performance of those processes identified as critical for delivering the desired improvements in the strategy’s customer and financial objectives.

Source: Kaplan & Norton The Execution Premium

How do we link strategy with operating plans and budgets?

(Develop the resource capacity plan). The operating plan has three components:

• a detailed sales forecast

• a resource capacity plan

• budgets for operating expenses and capital expenditures

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

How do we link strategy to operations?

The Strategy Map identifies high-level factors that must be further defined at a lower level of detail.

Performance improvement programs at the operational level define how strategic objectives will be achieved.

Source: Kaplan & Norton The Execution Premiium

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Linking Strategy to Operations: Logical Framework

Purpose of Linkage: To improve perfomance at the operational level consistent with performance gaps dictated by the strategy.

Strategy Map divides strategy into several dimensions:

• Core Processes (Themes)

• Intangible Assets (Learning & Growth)

The “Linking Pin” defines operational drivers that impact strategic objectives.

Strategic readiness programs identify changes in processes and assets that impact linking pins and, hence, the strategy.

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

A relevant Concept: “LINKING PINS”

About the “Linking Pin”

The “linking pin model” was developed by Rensis Likert, a social scientist at the University of Michigan. He viewed an organization as a number of overlapping work units in which a member of one unit is the leader of another unit. These individuals are the linking pins within the organization. They become the focus of leadership development activities and, hence, performance improvement.

Source – Likert, Rensis (1967), The Human Organization: Its Management and Value (New York: McGraw Hill)

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

“LINKING PINS” that link Strategy to Operations

• The overall strategy can be divided into 3 or 4 strategic themes and objectives.

• A set of “operational drivers” identifies factors which influence and improve strategic objectives.

• Innovation and analytic techniques are used to find process improvements that will impact operational drivers.

The “Operational Drivers” are the Linking Pins

3.0 Strategy Management

Strategy Management System

Integrate Financial and Resource Capacity Planning with Strategy

Successful Strategy Execution requires Linking Strategy and Financial Planning

The planning process is at the core of linking strategy to operations

The financial planning process is how an organization translates strategy into action

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Financial Planning sits in the “Middle” of the Business Planning Spectrum

Strategic Planning Target Planning Tactical Planning Financial Planning Reporting Forecast Take Action

Develop/confirm vision and mission

Determine the value gap

Develop strategic change agenda

Develop strategic themes

Determine initiative portfolio

Develop measures and targets

Develop budget guidelines

Develop driver models to translate tactical plan into financial numbers

Conduct scenario analysis

Define strategic issues

Develop strategy directional statements

Develop strategy maps

Compare scenarios to upfront targets

Formal budget approval

Load budget numbers into company system

Adjust if neccessary

Define operational reporting requirements and calendar

Define strategic reporting requirements and calender

Develop/confirm vision and mission

Develop strategic change agenda

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Foundation for Operational and Financial Planning is Driver-Based Performance Models

3.0 Strategy Management

Strategy Management System

Use Driver Models to unearth True Financial and Non-financial Performance Drivers.

Driver models provide the analytical framework to focus on key leverage points and to link operational KPIs and action plans to strategic priorities.

3.0 Strategy Management

Strategy Management System

Driver-based Planning facilitates a shift towards a Horizontally Integrated Planning Process.

• Based on hierarchy of units. departments, etc.

• Collection of the individuals’ projections of revenues and expenses for which units/ departments are responsible.

• Causal relationships that run horizontally across an organization.

• Based on operational drivers that cross functions and define a process-centric view.

Traditional View (i.e. Vertical)

Process View (i.e. Horizontal)

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

Driver-based Performance Models serve as the Basis for Planning and Provide an Important “Connection” to link Strategy, Operations, and Financials.

With a focus on operational drivers influencing financial results, use causal analysis as the foundation for the feedback, review, and analysis.

Strategic Objectives

Establish causal relationships between strategic objectives and decompose the key processes supporting the relationship.

Operational Drivers

Leverage driver models to align strategic targets with operational plans and to determine the operating and financial impact of strategic initiatives.

Financial Outcomes

Generate financial plans and rolling forecasts from driver models to provide the best estimate of future performance.

“Strategy is thinking about a choice and choosing to stick with your thinking” choice thinking

- Jeroen De Flander

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

5. Monitor, Learn and Act

Companies use operational review meetings to examine departmental and functional performance, and to address problems that have arisen or persist. They conduct strategy review meetings to discuss the indicators and initiatives from the unit’s Balanced Scorecard and assess the progress of and barriers to strategy execution.

By separating the operational and strategy review meetings, companies avoid the pitfall of having shortterm operational and tactical issues drive out discussions of strategy implementation and adaptation.

Topics Covered

• Performance against strategic objectives

• Review of correlation analysis

• Review of root cause analysis

• Anecdote reporting and initiative reviews

Topics Covered

• Budget reviews

• Theme/initiative reviews

• Issue identification

• Review diagnostic operating measures outside of Scorecard

Source: Kaplan & Norton The Execution Premium

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Operational vs. Strategic Review Meeting

Strategic Review Meeting

• Focused on big picture, longer-term strategic destination horizon.

• Less Frequent - typically quarterly.

• Forward looking.

• Balanced Scorecard Report.

• Analysis and graphs.

• Decision-making.

• Strategic Themes:

- Objectives

- Measures (RYG)

- Initiatives (RYG)

• Strategic Issues Review

• Strategic Risks Review

Operational Review Meeting

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

Focus Strategic Review Meeting Time on Strategic Issues & Learning

217 ORGANIZATION TRANSFORMATION

(Event-Driven

• Provide input to strategic issues currently being worked on

• Dialogue about performance

- explain anomalies

- suggest solutions

- identify issues

- communicate

• Identify strategic issues for discussion at next group meeting

• Review performance data (available online)

THE QUATERLY REVIEW MEETING

BETWEEN THE MEETINGSOPERATIONAL REVIEWS

Review Strategic Issues (60%)

FUTURE (Continuous Learning) Discuss Implications (30%)

3.0 Strategy Management

Strategy Management System

The Strategy Review Meeting can be used for Strategic Learning by asking the right questions.

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

Companies use strategy scorecards and operational dashboards to inform their different management meetings.

Operational Review Meetings: Role for KPI Dashboards

• Frequent (daily, twice weekly, weekly).

• Departmental and functional personnel.

• Identify and solve operational problems (late deliveries, equipment downtime, supplier problems).

• Promote continuous improvement (better, faster, cheaper).

Strategy Review Meetings: Role for Balanced Scorecard Reports

• Monthly or quarterly.

• Management team; cross functional, multiple business units.

• Discuss and solve problems with strategy implementation.

• Manage product and customer profitability.

TRANSFORMING ORGANIZATION

3.0 Strategy Management

Strategy Management System

Strategy Review meeting - Three Level Reporting

Level 1: Objective summary using the Strategy Map

• Green = meeting or exceeding

• Yellow = caution or warning

• Red = off target

Level 2: Theme-level Reporting

• Green = meeting or exceeding

• Yellow = caution or warning

• Red = off target

• Theme Performance Summary

Level 3: Detail-level including measures

• Graphical representation

• Performance summary

• Reference information

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

IIAA Report Template

Strategy Management System

Initiative Report Template

3.0 Strategy Management

Strategy Management System

Example - Illustrative

John

John

David

John

“However beautiful the strategy , strategy

you should occasionally look at the results .” results

- Winston Churchill

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

6. Test and Adapt The Strategy

The strategy testing and adapting meeting addresses the following fundamental question: Is our strategy working?

Strategy Testing helps pinpoint more precisely where the strategy needs more work (weakness). Strategy Testing is NOT a strategy development framework or tool. Strategy Testing helps generates a deeper and more fruitful strategic dialogue.

Case for Strategy Testing

Uncertain Business Enviroment

Short Planning Cycle

The financial crisis of 2008 and the recession that followed made some strategies obsolete, revealed weaknesses in others, and forced many companies to confront choices and trade-offs they put off in boom years.

A shift toward shorter planning cycles is increasing the utility of a common set of tests.

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Strategy Testing

STEP 10

Test for strategy execution

STEP 1

Test against market forces

STEP 2

Test claimed competitive advantage

STEP 9

Test for conviction

STRATEGY TESTING

STEP 8

Test for Bias

STEP 7

Test for balance between commitment and flexibility

STEP 6

Test for uncertainty readiness

STEP 5

Test the source of your market insights

STEP 3

Test what is really working or not?

STEP 4

Test if you are ahead of the curve

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Test 1: Will your strategy beat the market?

Reverse use of Porter 5 Forces for testing rather than formulating strategy by answering the following questions.

3.0 Strategy Management

Strategy Management System

Test 2: Does your strategy tap a true source of advantage?

Vigorously test claimed competitive advantage before pinning your hope on it.

** Positional Advantage are results of industry structure which favor the incumbents

What can erode your positional advantage?

From Test 1, we identify a set of competitive advantages. Now test further by answering the next set of questions?

Is the claimed competitive advantage a positional advantage or special capabilities?

** Special Capabilities are distinctive compentencies consisting of things a company does particulary well or tradable scarce assets

Which special capabilities are becoming vulnerable?

3.0 Strategy Management

Strategy Management System

Test 3: Is your strategy granular about where to compete?

Understand if the variance in revenue growth is the result of choices made on (1) where to play or (2) how to win.

3.0 Strategy Management

Strategy Management System

Test 3: Is your strategy granular about where to compete?

Check the variance in performance improvement as a result of implementing a set of linked initiatives (how to win).

What is the impact of initiative(s) on target segments revenue growth?

2. Determine tangible impact of a set of linked initiatives.

Initiative(s) is aimed at improving performance in target segment(s)

A set of linked initiatives designed to create competitive advantage

** Avoid building strategy on false assumptions about what was and wasn’t working for the operation as a whole

What is the impact of initiative(s) on target segments revenue growth?

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Test 4: Does your strategy put you ahead of trends?

Test your strategy for readiness to capitalize on potentially high impact but slow changing emerging trends.

1. Identify emerging trends

How are early adopters and that small cadre of consumers who seem to be ahead of the curve acting?

What are small, innovative entrants doing?

What technologies under development that could change the game?

Test this set of emerging trends by asking the following set of questions

2. Identify potentially high impact emerging trends

Which consumer behaviours would change?

Which particular product lines would be affected?

3. Lastly, check today’s investment priorities against the identified potentially high impact emerging trends.

Which particular product lines would be affected?

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Test 5: Does your strategy rest on privileged insights?

Examine the source of insights your strategy is based on.

1. List down insights that help you arrived at your strategy.

Industry Insights

Consumer Insights

Map the source(s) to these insights

Competitor Insights

** Companies that go out of their way to experience the world from the customer’s perspective routinely develop better strategies

2. Check if the insights came from privileged or openly available source.

Widely Available Reports

Third Party Research / Information Provider

In House Research / Data Analysis

Field Observation

3.0 Strategy Management

Strategy Management System

Test 6: Does your strategy embrace uncertainty?

Test your strategy readiness for uncertainty of key variables.

Develop a list of variables that impact your business

Prioritize these variables by potential impact and degree of uncertainty

Develop a list of variables that impact your business

Does your strategy cater for uncertainty of the key variables identified sufficiently?

** Rigorously understanding the uncertainty you face starts with listing the variables that would influence a strategic decision and prioritizing them according to their impact

3.0 Strategy Management

Strategy Management System

Test 7: Does your strategy balance commitment and flexibility?

Test your strategy for balance between commitment and flexibility. The greater the commitment, the less flexibility remains.

3.0 Strategy Management TRANSFORMING ORGANIZATION

Strategy Management System

Test 8: Is your strategy contaminated by bias?

Test your strategic initiatives for bias due to inference problems.

3.0 Strategy Management

Strategy Management System

Test 9: Is there conviction to act on your strategy?

Test the conviction of your organization especially the top team to act on the strategy.

3.0 Strategy Management

Strategy Management System

Test 10: Have you translated your strategy into an action plan?

Check if your action plan has been define clearly to move from your present point to the future state.

1. Present State

Has the action plan been developed to change the business model, organization and capabilities?

2. Future State

Is the budget and resource allocation linked to the strategy?

experimenting reinventing

“Designing a winning strategy is the art of asking questions, experimenting and then constantly renewing the thinking process by questioning the answers. No matter how good today’s strategy is, you must always keep reinventing it.”

- Constantinos Markides

4.0 Financial Management TRANSFORMING ORGANIZATION

Financial Management is a vital activity in any organization. It is the process of planning, organizing, controlling and monitoring financial resources with a view to achieve organizational goals and objectives.

It is an ideal practice for controlling the financial activities of an organization such as procurement of funds, utilization of funds, accounting, payments, risk assessment and every other thing related to money.

Financial Management Challenges

1. Accurate Record Keeping

A company that thrives and grows can only convince the outside world of its marketing prowess if it can correctly record operating transactions. Managers rely on a team of accountants and bookkeepers whose interdisciplinary background combines analytical skills with financial acumen to record transactions.

2. Timely Financial Reporting

Organizations that do not present their financial data in a timely manner often face a defiant tone from the investment community. Unhappy corporate financiers, who may equate reporting delays with sluggish performance, could demand a leadership reshuffle if the business consistently misses its reporting deadlines

3. Fundraising

Raising cash for operating activities is a subject that lies on top of management’s agenda. Without money in corporate vaults, a company cannot go far in its economic adventure and may drop out of the competitive landscape.

4.0 Financial Management TRANSFORMING ORGANIZATION

4. Financial Analysis

Financial analysis enables accounting managers to pinpoint business units that are struggling, comparing segment current data to historical information. By doing so, financial supervisors can find ways to prop up business units. In other words, financial managers work under the guidance of senior management to shield segments from financial turmoil, especially those that were previously the company’s breadbasket.

5. Regulatory Compliance

This is often the dilemma that financial managers must cope with. In a global economy replete with international exchanges, managers must carefully pick foreign business partners and make sure overseas commercial practices do not break domestic laws.

TRANSFORMING ORGANIZATION

4.0 Financial Management

Challenges for the CFO & Finance Team

Importance of Alignment of Corporate (divisional) Goals, Product Market Strategies, Functional Strategies (eg R&D, HR, Manufacturing ) and Financial Strategy. Functional Strategies must come together as a consistent, reinforcing whole to produce strong consumer, competitive and economic performance on a sustained basis.

Alignment is important to ensure that the resource needed will be accessible on acceptable terms on a timely basis;

• If adversity strikes

• If the growth options materialize

Profitability is not a luxury good, it is a necessity if organizational and system health is assured. It is the key to:

TRANSFORMING ORGANIZATION

4.0 Financial Management

Responsibility of CFO

The primary role is to ensure:

A Critical Resource is TIME!

Continuity of the flow of funds to all strategic initiatives on a timely basis

Future health and balance of the corporate financial system

We cannot afford to wait until system imbalance shows up in the financials

The key is to recognize that the system is out of balance and to do so before disequilibrium becomes any larger than necessary

To do so while there is time to negotiate the necessary strategic and operating changes

TRANSFORMING ORGANIZATION

4.0 Financial Management

Responsibility of CFO & Finance Team

4.0 Financial Management

Financial Management Framework

Financial Management Framework is built around the primary responsibility of a CFO and financial objectives of an organization.

Financial Planning - Operating Budgetary Process

• Operating Budgetary Process

• Cash Management

Financial Policy & Execution

• Debt Policy

• Dividend Policy

• Timing of Securities Issues

• Design of Securities

Maximize Shareholders Value

• Valuation of Companies & Business Units

Resource Allocation & Capital Budgeting

• Business Units

• Support Units

• Employees

TRANSFORMING ORGANIZATION

4.0 Financial Management

Financial Management Framework

Stage 1

Financial Planning - Typical Forecasting Income Statement & Balance Sheet

Generally, a thorough understanding of corporate goals, product market strategies and the market/ competitive/ regulatory/ operating characteristics is essential to the development of sensible financial forecasts, policies and plans.

Typical method:

Problems in forecasting

• Estimating interest expenses

• Making right assumptions

• Dealing with uncertainty

- Several sets of forecasts within the same macro environment

- Forecast based on different macro-scenarios

• Operational plans, budgets, resources planning are not aligned to strategy

• Financing needs

- Long-term need (rapid sales growth combined with low profit retention or very lumpy, large capital expenditure

- Seasonal need

- “Adversity need”

TRANSFORMING ORGANIZATION

4.0 Financial Management

Financial Management Framework

Stage 1

Financial Planning - The Solution

Budgets, incentives, and operational plans must be linked to the strategy

Resource portfolios should be organised to ensure that adequate human and financial capital are in place to fund the strategy without compromising operational performance

No forecast is more important than the forecast of profitability

Forecast the levers of Financial Performance - ROE:

• Profit Margin (Return On Assets, Gross Margin)

• Asset Turnover (Inventory Turnover, Collection Period, Fixed Asset Turnover, etc.)

• Financial Leverage (Balance Sheet Ratios, Coverage Ratios, Market Value Ratios)

TRANSFORMING ORGANIZATION

4.0 Financial Management

Financial Management Framework

Financial Planning - Example

3A.

Start with the outer most layer...

Describe to what extent your department hit monthly target? Is it on track to hit quarterly, full year target?

Peel another layer...

Describe more specifically which major drivers contributed to your monthly financial performance and quarterly target?

3B.

If required, peel another layer...

To what extent are the activities you have in place to influence your key drivers on track to deliver? Having the desired affect? Are still the critical few activities?

Peel one layer back...

Describe more specifically for a product group, which lines contributed to its monthly financial result? To quaterly result?

If required, peel another layer...

Use dashboard of major driver in question to provide information on what contributed to its performance.

Feedback Loop - Adjust Model, Predict Performance

1. FINANCIALS

1A. Consolidated P&L

1B. Department P&L

2. DRIVERS

2A. Driver Model (Across Department)

2B. Major Driver Dashboard

3. ACTIVITIES

Project/Initiative Summary

Project/Initiative Report

TRANSFORMING ORGANIZATION

4.0 Financial Management

Financial Management Framework

Stage 2

Financial Policy and Execution

Debt Utilization and Management are crucial due to:

• Limited access to equity capital

• Exposure management

• Increase of common stock value, ownership/control maintenance

In most countries, interest on borrowed money is a tax-deductible expense but dividends to shareholders are not tax deductible. Under these tax conditions, the use of debt increases the total amount of cash that can be paid out to suppliers of capital. Personal tax conditions also influence the decision as to the use of debt.

• Moderate Debt as % Capital (At book value) Level of Profitability (EBIT % Capital)

• High Debt as % Capital (At book value)

• Low Debt as % Capital (At book value)

Minimizing the cost of capital can maximize the value of the firm’s capital and the value of its common stock. If a firm has HIGH business risk, then it normally should be financed with low financial leverage.

• Moderate Debt as % Capital (At book value)

If a firm has LOW business risk, than it normally can be financed with high financial leverage. The amount of debt that can be safely used is also strongly influenced by the future level of profitability.

TRANSFORMING ORGANIZATION

4.0 Financial Management

Financial Management Framework

Stage 2

Financial Policy and Execution - The Solution: Financing Plan

Developing a Financing Plan:

Identify a key adversity scenario

Develop a time dimensioned operating –competitive plan (for each adversity scenarios)

Model the Operating

– Competitive plan in financial terms:

• How much additional finance will be needed

• How much warning

• Perceived condition of company

Develop inventory resources adequate to meet “adversity need”

Develop focused monitoring systems

• To maximize available adjustments

• To minimize dislocations

TRANSFORMING ORGANIZATION

4.0 Financial Management

Financial Management Framework

Stage 2

Financial Policy and Execution - The Solution: Debt Policy

Assured access to debt financing on acceptable terms in good & bad times

Ability to service

Ability to comply with loan

DEBT POLICY

• Maturities

• Currencies

• Debt as % Capital

• Amount in Reserve

• Type sources

Competitive vunerability if excessive use of debt

Ability to raise fund in the mix needed

• Fixed vs. Floating Rate

Impact on shareholders Management attitudes

Competitive vunerability if mismanage or forego strategic initiatives

Develop Debt Policy – as depicted focusing on:

• Characteristics of finance

• Requirements (present & future) to tap each market (times earned, debt % capital, current ratio, firm size, etc)

TRANSFORMING ORGANIZATION

4.0 Financial Management

Financial Management Framework

Stage 3

Resource Allocation and Capital Budgeting

Financial evaluation of any investment opportunity involves three discrete steps:

• Estimate relevant cash flows

• Calculate a figure of merit for investments

• Compare figure of merit to an acceptance criterion

Common challenges in Investment Project Evaluation:

Inconsistency between general rate of inflation embedded in project cash flows

Use of single hurdle rate for projects of different risks

Inclusion of extra risk premiums to compensate for diversifiable (nonsystematic) risk

Use of cost of specific mix of the finance being used to finance a specific project

Use of hurdle rate based on weighted cost of capital in a currency from the currency in which the cash flows are expressed

TRANSFORMING ORGANIZATION

4.0 Financial Management

Financial Management Framework

Stage 3

Resource Allocation and Capital Budgeting - The Solution

Rigorous evaluation of individual investment proposals – 8 step model

Project & Underlying ProductMarket Strategy should be sound in strategic terms. To support with a comparative advantage with competitors (present & potential).

Project & the Underlying Product-Market Strategy should be consistent with PEST in host country.

It is essential that the Product – Market is attractive in terms of prospective profitability especially:

- Outlook for market demand

- Comparative advantage

Specific investment should be consistent with thrust of the underlying Product – Market Strategy.

Operating and competitive assumptions that lie behind the project IRR are reasonable and correct.

Calculated returns are reasonable in view of the level of returns in competitive markets. Also to compare with other industries.

Important benefits that are not captured in the analysis (organization capabilities, spill overs to units beyond the sponsoring units, creation of future of investment opportunities).

Project impact on stakeholders, balancing concerns without jeopardizing economic viability.

TRANSFORMING ORGANIZATION

4.0 Financial Management

Financial Management Framework

Stage 4

Maximize Shareholder Value

Common challenge in valuing shareholder value involves distinction between Market Value and Book Value. Book Value tends to be more transaction-based and adapted from financial statement. Argument of Market Value is that it is based on shareholders equity if it is traded publicly but intangible assets such as brand names, patent has found its way into financial statements and recorded as “Goodwill”.

Valuation Methodologies

• Book value of debt + Equity

• Liquidation value of assets

• Current market value

• Replacement cost

• EBIAT times an appropriate market multiple

• Discounted Cash Flow Analysis

Maximize Shareholder Value - The Solution

Improve Internal Operations

• Asset Management

• Cost Cutting

Financial Acrobatics

• Increase use of debts

• Reduce excess of cash

• Change management incentives

Divest or liquidate losing business units

Divest business units to better buyers

Change ProductMarket strategies Financial public relations - manage expectationss

TRANSFORMING ORGANIZATION

4.0 Financial Management

Financial Management Framework

Financial Planning - Template

P l a ns areworthless.

Planningis essential .

Planning essential

- Dwight D. Eisenhower

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

The customer of the future is here now, and engagement, experience, and loyalty strategies must evolve in response. Successful strategies require data-driven, creative, customer-centric approaches that leverage the latest technologies to deliver outstanding service and value to brands like yours.

Customer marketing focuses on elevating and leveraging current customers’ experiences to improve retention and growth. Successful customer marketing relies on properly segmenting your audience, effectively engaging with customers, and maintaining a customer advocacy program.

The value of customer marketing is two-fold:

With an emphasis on quality over quantity, customer marketing strengthens client bonds while attracting new users. Marketing teams can actually decrease spending while increasing loyalty and customer lifetime value.

First, provide an exceptional customer experience that makes customers want to stick around. Then, establish a full-fledged program that makes it easy for current customers to invite new ones. Retention

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Customer Experience

Customer Experience is about, “Adding value for customers buying products and services through customer participation and connection, by managing all aspects of the encounter”.

The encounter includes touchpoints. Businesses can create and modify touchpoints so that they are suited to their consumers which change/enhance customer experience. Creating an experience for the customer can lead to greater brand loyalty and brand recognition in the form of logos, color, smell, touch, taste, etc.

Customer Experience is the product of an interaction between an organization and a customer over the duration of their relationship. This interaction is made up of three parts:

The customer journey The brand touchpoints the customer interacts with The enviroment the customer experiences (including digital enviroment) during the journey

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Customer Journey Mapping

A customer journey map is merely an illustration or diagram of all the places (touchpoints) your customers come into contact with your company online or offline. The goal of the customer journey map is really to get a holistic view of what the customer is going through from their point of view and really what it is like for them on a personal level, that human level.

Customer Journey Map example

Rail Europe Experience Map

Guiding Principles

People choose rail travel because it is convenient, easy, and flexible. Rail booking is only one part of people’s larger travel process. People build their travel plans over time. People value service that is respectful, effective and personable.

Customer Journey

Opportunities

Rail Europe Experience Map

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Customer Journey Map Template

TRANSFORMING ORGANIZATION

Experience Map Template

Marketing Plan

Marketing Introduction and Challenges

TRANSFORMING ORGANIZATION

Marketing Plan

Process to create a marketing plan

2

Strategic Analysis

• Market and enviroment analysis

• Customer and competition analysis

Objectives and Indicators

Strategic Selection and Combination

• Strategic and operational objectives

• Financial objectives

• Market-and customer-related objectives

4

• Competitive strategies

• Portfolio strategies

• Positioning strategies

• Innovation strategies

Strategy Implementation

• Marketing Mix

• Product and pricing policy

• Communication and distribution policy

• Effectiveness of marketing tools

• Performance of people involved

• Profitability of chosen products, markets and customer success estimation

1. Analysis

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Macro Enviromental Analysis - PESTEL/PESTLE

Show macro-environmental factors that influence your business.

POLITICAL ECONOMICAL SOCIOCULTURAL

• Domestic and foreign policy directly affecting economical interests

• E.g. tax policy, labor law, trade restriction, tariffs, and political stability

• Important economical factors influencing a company’s market and core business

• E.g. economic growth, interest rates, exchange rates, inflation rate, unemployment, etc.

• Trends in social factors affecting demand for a company’s products and how that company operates

• E.g. cultural aspects such as health consciouness, population growth rate, age distribution, career attitudes and emphasis on safety

TECHNOLOGICAL ENVIRONMENTAL LEGAL

• Technological factors affecting production and innovation level including:

• R&D activity, automation, technological incentives, rate of technological change, technological shifts, barriers to entry, etc.

• Ecological and environmental factors affecting company operations and products (growing awareness).

• E.g. environmental laws, environmental protection, weather, climate, climate change, etc.

• State legal factors affecting company operations, costs, and product demands

• E.g. discrimination laws, consumer laws, antitrust laws, employment laws, and health and safety laws

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Market Analysis - Market Segmentation

Individual segments of core and submarkets require an individual approach.

Market Segmentation

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Market Analysis - Market Growth

Market potential, market volume and market growth in the course of time. Market

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Customer Segmentation

Differentiation and description of target groups.

CUSTOMER SEGMENT X

Characteristics:

... ...

Core motive:

CUSTOMER SEGMENT Y

Characteristics: Core motive:

CUSTOMER SEGMENT Z

FEATURE A

FEATURE B

INDIVIDUAL

...

...

Characteristics: Core motive:

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Strengths and Weaknesses

Strengths and weaknesses of your company compared to strongest competitors.

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Internal Analysis - Potential Analysis

Position of own company in the market according to the following factors:

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Current Situation - SWOT Analysis

Identify internal and external factors favorable and unfavorable to your objectives.

TRANSFORMING ORGANIZATION

5.0

Customers and Marketing

Current Situation - Competitive Advantage

Five criteria of a sustainable competitive advantage

2. Target

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Objectives - Gap Analysis

Revenue targets and their development in the course of time.

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Objectives - Marketing Targets

Economic and non-economic objectives of a business.

3. Strategy

5.0 Customers and Marketing

Growth Strategy (Ansoff)

The lowest risk strategy is for a company to sell its existing products into existing markets as it knows its customers, has established channels and so on. This strategy was termed by Ansoff as ‘Market Penetration’. This is only possible where markets are still growing, or where organisations are prepared to use other elements of the marketing Mix (such as price discounting and additional promotional activity) to penetrate the market at the expense of competitors.

The second strategic option in the Ansoff Matrix is to develop new products for existing markets (customers), through a ‘Product Development’ strategy. Here the ‘Product’ and ‘Promotion’ elements of the Marketing Mix will change (as a minimum), so the risk is higher than market penetration. The success of this strategy is dependent on the organisation being able to effectively conduct research and insight into their customer and market needs, as well as their own internal capabilities and competencies for driving innovation.

The third strategic option involves taking existing products into new markets using a ‘Market Development’ strategy. This is also considered to be riskier than market penetration as it can be difficult to understand the complexities of new markets. Key changes in the marketing mix are likely to be ‘Place’, with consideration of new channels and routes to market, as well as ‘Promotion’, through promoting to new target segments.

The final strategy in the Ansoff Matrix is ‘Diversification’, which is developing new products for new markets. This is seen as the riskiest strategy of all four, as the organisation is moving into an unfamiliar market. However, this risk can be mitigated by undertaking ‘related’ diversification and it could have the potential to gain the highest returns.

Product/market matrix to determine growth strategy according to Igor Ansoff

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Marketing Strategy - Summary

Summary of the basic marketing strategy.

WHERE?

HOW?

WHEN?

In which market is the company active?

What is the central orientation of the marketing strategy?

When will the company become active in the market?

Concentration of company's activities on particularly attractive and promising markets

Conscious selection of markets and definition of future strategies with long-term orientation

Determination of market entry time in compliance with previous development and production efforts

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Marketing Strategy - Marketing Mix

Components and measures of the Marketing Mix.

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Price - Price Policy Objectives

Comparison of possible pricing policy objectives.

Increase and recovery of market shares

Development of new markets or market niches

Improvement of revenue situation

Elimination or discouragement of competitors

Improvement of profit situation

Creation of image for product or product line

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Price - Price Strategies

Matrix with high-price, low price and value-oriented price strategies.

Value Oriented Price Strategies

Product

Product

Product

Low Price Strategies

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Price - Break-Even Analysis

Evaluation model to determine sales volume required to achieve break-even point.

Cost of Sales

Profit

Revenues

Total costs

Break-even Sales

Break-even Point

Variable costs

Loss

Break-even Quantity

Fixed costs

Quantity

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Promotion

Planning

Above The Line (ATL)

Below The Line (BTL)

Alternative marketingmainly visible only for targeted groups

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Promotion - Media Planning

Overview of planned PR actions / measures.

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Promotion - Dimension of Media Strategy

Analysis and visualization of six most important parameters of media strategy.

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Promotion - Market Area Strategies

Basic principles for market areas / market development.

5. Management

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Implementation - Financial Plan

Definition and planning of marketing budget.

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Implementation - PR Measures

Marketing specific measures.

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Marketing Expense to Sales Analysis

Marketing expenses in relation to sales development.

Online Marketing Plan

ONLINE MARKETING STRATEGY

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

5.0 Customers and Marketing

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Traditional

5.0 Customers and Marketing

5.0 Customers and Marketing

stopping your watch to save time”

-

“Stopping advertising to save money is like time

advertising

Henry Ford

5.0 Customers and Marketing

Links, links and more links

Off-page optimization backlinks

Let the world know you are here

Google sitemaps for website indexing

Don’t be too old fashioned

SEO is constantly changing and what worked before could be out-of-date today

Right target audience / right keywords

Have patience and analyze

Keyword databank Don’t constantly make changes to SEO strategy. It takes time to take effect

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Sample Checklists

Advertising Planning Checklist

Starting position

Advertising objectives

Target audience

Objective type (e.g. increasing awareness level)

Geographical area

Time

Advertising content (message, customer benefits, call to action, etc.)

Advertising / Promotional material

Budget Control

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Sample Checklists

Online Marketing Checklist

Do you have a website with information on your products or services?

Do you think that your target audience uses general search engines to find your products or services?

Would you be willing to radically revise your website if required?

Do you analyze what your target audience type into general search engines to find your products or services?

Would you also perform any steps when success doesn’t seem likely?

Do you want your audience to respond even if their search is only for general information without specifying any provider?

5.0 Customers and Marketing

TRANSFORMING ORGANIZATION

5.0 Customers and Marketing

Sample Checklists

What should be weighed

Lead conversion rate

Traffic conversion rate

Cost per lead

KPI

Cost per customer

Websites

Unique visitors

Bounce rate

Popular subpages

Rarely viewed subpages

Websites

A/B testing

Delivery rate

Bounce rate

Open rate

Click-through rate

Unsubscribers

Unique visitors

New entries

Post views KPI

Landing pages

Visit to Lead conversion rate

Landing Pages

Lead to customer conversion rate

Visit to customer conversion rate

Social Media Marketing

Followers, likes,... Generated web traffic Generated conversions

“Good marketing makes the company look smart. Great marketing makes the customer feel smart.” marketing smart

- Joe Chernov

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Operations & Management

Operations Management

Operations management is chiefly concerned with planning, organizing and supervising in the context of production, manufacturing or the provision of services. As such, it is delivery-focused, ensuring that an organization successfully turns inputs to outputs in an efficient manner.

The inputs themselves could represent anything from materials, equipment and technology to human resources such as staff or workers.

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Operations Management Challenges

Productivity concerns

Challenge in trying to get the team up-to-speed and performing their duties quickly and successfully, and continuously.

Process quality improvements

It is from adequate quality and production planning to the end product.

Customer satisfaction challenges

Customer expectations are diverse and constantly changing, and managing them can be a challenge.

Unresolved departmental conflicts

Managing conflicts or competing business practices within an organization is a major challenge for operations managers, who are often left feeling like a school principal.

Excessive reporting

Challenges arise when the business has not kept current or accurate records. Comprehensive record keeping on P&L, as well as sales goals and expenses, is necessary to assess the company’s longterm viability.

Talent recruitment difficulties

Finding and keeping good people is not easy.

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Operations Transformation Framework

BPR (Business Process Reengineering) Framework

BPR is typically pursued to:

BPR Framework to analyse, redesign and improve business process.

Improving business processes

• Improving processes

• Reducing waste

Optimizing business processes

• Ultimate efficiency

• Better business value

Reengineering business processes

• Radical change

• Starting again from scratch

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

BPR: Functional vs. Process-Oriented

BPR aims to transform business from being purely functional to becoming process oriented.

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

The 4Rs of Reengineering

The Basis of BPR

1. Renewing

• Involving employees in the change process.

• Acquiring new skills through training, to be integrated into the business process.

2. Revitalizing

Analyzing the current situation to identify potential for improvement. Developing the TARGET concept.

• Implementing the new designs.

• Monitoring whether objectives are achieved.

• Constant checking and adapting.

3. Reframing

Adapting the existing thinking structures of all those involved. Establishing new methods.

4. Renewing

TRANSFORMING ORGANIZATION

BPR Tools

CHARGING MODELS

Adaption of the charging model to the company’s organizational restructuring.

MONITORING

Introduction of decentralized self-monitoring of processes and process teams.

TOOLS

CHANGE MANAGEMENT

IT

Automated monitoring of processes.

GAP ANALYSIS

Comparison and visualization of actual and potential performance.

BENCHMARKING

Comparison of a business’s products, services and processes with those of a competitor which has best implemented a particular solution to a problem.

ACTIVITY-BASED ACCOUNTING

Process-oriented recording and control of costs from indirect areas of activity.

ORGANIZATION TRANSFORMATION 322

VALUE CHAIN

Analysis of the structure of business processes and identification of critical business processes.

Creation of process chains with reduced throughput times and cost.

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

BPR in 5 Phases 1

Steps Involved in BPR

5 4 3 2

DEVELOPMENT OF THE CORPORATE VISION AND PROCESS OBJECTIVE

IDENTIFICATION OF THE PROCESSES TO BE DESIGNED

UNDERSTANDING AND MEASURING THE EXISTING PROCESSES

RECOGNIZING IT POTENTIAL

CREATING A PROTOTYPE OF THE NEW PROCESS

BPR is driven by a business vision that includes concrete goals (examples: cost reduction, time savings, quality improvement, etc)

The high-impact approach focuses on the most important processes or those that contradict the vision. The complete approach focuses on all processes and prioritizes them according to the urgency of the redesign.

Analyzing the current situation ensures that errors are not repeated in the future and also serves as a reference point for future improvements.

Improving the status quo can be accelerated by using IT solution and resources.

The newly created process is not the end of the BPR process, but rather a prototype that is regularly reviewed and improved.

BPR can thus deliver fast results and still ensures that the client is involved and satisfied.

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

6.0 Operations & Technology Transformation

BPR Cycle Phases

Phase 1

Launch

BPR Cycle Phases

Phase 4

Implement

Phase 3

Reengineer

Phase 2 Analyze

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

BPR Cycle Phase 1 Phase 1

Steps involved in BPR Cycle Phase 1

Launch

Initial request and project definition

• Analyze initial report

• Develop understanding of project requirements

• Define project goals

Initial request and project definition

• Document project requirements

• Document defined project goals

• Document project scope

Kick-off meeting

• Conduct first meetings

• Confirm project requirements and scope

• Secure project approval

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

BPR Cycle Phase 2

Steps involved in BPR Cycle Phase 2

Phase 2 Analyze

Gather and analyze data

• Collect data from various business processes and departments

• Analyze the collected data to understand the status quo Map processes

• Identify the processes to be revised

• Note and document errors and bottlenecks

Discuss results and priorities with the management team

• Present results and errors in the processes to management

• Secure management approval for the reengineering of processes

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

BPR Cycle Phase 3

Steps involved in BPR Cycle Phase 3

Phase 3

Reengineer

Develop desired process

• Develop alternative processes

• Coordinate new process designs with IT and eliminate existing errors in the process

Consult stakeholders

• Involve management relevant employees and end users in the redesign process

• Obtain the end-user’s consent

Finalize the desired design

• Select a final process concept

• Create flow charts for the selected process redesign

Approve the desired processes in a Steering Group workshop

• Conduct meetings with the management team

• Secure approval from management for implementing the reengineered process

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

BPR Cycle Phase 2

Steps involved in BPR Cycle Phase 2

Phase 4

Implement

Program planning

• Draw up plans for introducing the reengineered process

• Secure management approval

Start implementation

• Implement plans

• Secure management approval for each phase of implementation

Steering Group meetings

• Conduct meetings with end users

• Involve the end users in the implementation plans to ensure better flow

Review process regularly

• Regular reviews of the process must be scheduled to monitor implementation

• Check whether the objectives of reengineering the process have been achieved or not

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Process Flow Diagram - Template 1

Template for Process Reengineering

Process Flow Diagram - Template 2

Template for Process Reengineering

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Process Flow Diagram - Template 3

Template for Process Reengineering

TRANSFORMING ORGANIZATION

Organigram - Template 1

Template for Process Reengineering

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Organigram - Template 2

Template for Process Reengineering

Project Planning Timeline

Operations Transformation Additional Templates

Six Sigma DMAIC Improvement Cycle

Change Management Models

“Change is inevitable. Change

Growth is optional.” Growth

- John C. Maxwell

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Supply Chain Management

Supply Chain Management Framework

The SCOR Model is a management tool that analyzes and evaluates the performance of supply chains. It provides a consistent structure for setting metrics, processes, best practices, staff skills and their networks. It also describes the entire value chain process, from suppliers to the end customer.

SCOR Model

6.0 Operations & Technology Transformation

Supply Chain Management Framework - Design

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Supply Chain Management Framework - Design

6.0 Operations & Technology Transformation

Supply Chain Management Framework - Design

SCM Organization Pyramid

Supply

SCM Strategies

“ Transformation isn’t a future event, it’s a present day activity.” Transformation present

- Jillian Michaels

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Technology / Digital Transformation

Technology/ Digital Transformation refers to converting processes, activities and models to meet the digital economy requirements until the company is a fully networked digital organization.

• Introdruction

• Strategy

• Transformed company

(Way

Socrates

of the Peaceful Warrior)

“The secret to change is to focus all your energy not on fighting the old, but on building the new.”

6.0 Operations & Technology Transformation

Technology / Digital Transformation - Introduction

Change Management in a Company

Change Management

Change management encompasses all measures used to change the strategies, structures, processes and behaviors of an organization.

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Technology / Digital Transformation - Introduction

Why Digital Transformation is Needed

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Technology / Digital Transformation - Strategy

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Components of Digital Transformation

Digital

Consequences

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Digital Transformation Implementation Steps

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Digital Transformation - Transformed Company

Roadmap Steps

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

The Value Chain Before Digital Transformation

Rigid Value Chain

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Digital Transformation - Transformed Company

Transformed Strategy

Market Transformation

Market Transformation And Change Of Customer Expectations

Corporate Digital Reorientation

New Employee Needs And Expectations

How are existing jobs evolving?

What future skills will be required for existing jobs?

DIGITAL SKILLS

What skills do employees currently have?

Which jobs will appear or disappear in the future?

Corporate Transformation

Employee Transformation

Developing employee skills to meet the demands of digital transformation

What skills will be required for future digital jobs?

6.0 Operations & Technology Transformation

Digital Transformation - Transformed Company

Dynamic Value Chain

TRANSFORMING ORGANIZATION

6.0 Operations & Technology Transformation

Digital Transformation - Transformed Company

Marketing Digitization - Example

Digital advertising: Online banners, newsletters, etc.

Traditional digital advertising: Vouchers in print media can be scanned via QR codes with smartphones.

“Every digital transformation is going to begin and end with the customer, begin

and I can see that in the minds of every CEO I talk to.” CEO

- Marc Benioff

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Leadership refers to the overarching field of a person (the leader) strategically guiding and managing a group of people (the organization) to meet a common goal. Organizational leaders focus on the company AND its individuals.

Organization development (OD) is the practices, systems, and techniques that affect organizational change. Its goal is to modify an organization’s performance and/or culture. The organizational changes are typically initiated by the group’s stakeholders.

In summary Leadership and Organizational Development are the foundation of any business or establishment.

7.0 Leadership & Organizational Development TRANSFORMING

7.0 Leadership & Organizational Development

The foundation of any business relies heavily on the followings:

In this module we will focus on the process of development of these two key foundations of the business.

Leadership Performance Organization/Culture

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Leadership Development in the Organization

The following framework was developed to identify, develop current and potential talent in the organization. It is a comprehensive program to identify talent and develop them based on required competencies for the organization.

Employees selected for the program should have potential for leadership roles

Based on the assessment, employees will be debriefed and segmented

Employees will be placed/promoted based on expansion, availability etc.

Selected employees will undergo a comprehensive assessment

Employees will go through mentoring and development based on their assessment

1. Performance Evaluation

3. Talent Readiness

5. Succession Management

2. Leadership Identification Assessment

4. Talent Development

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Leadership Development in the Organization

1. Performance Evaluation

Candidates are selected based on the annual performance evaluation. The annual performance evaluation system helps the business to determine potential Managerial/Leadership candidate’s performance.

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Leadership Development in the Organization

2. Leadership Identification Assessment

Chosen candidates based on the performance evaluation are suggested to go through the following assessments:

Job Fit & Talent Management Personality Test Business Acumen Thinking & Behavioural Style

Harrison Assessment for Vertical or Lateral movement in the organization

LSI (Leadership Inventory Style)

This assessment provides an insight to a candidate’s thinking of leadership & managing, plus a 360-feedback on his/her leadership style

16 Personality Factors Case studies with emphasis on Strategy, Innovation & Leadership areas

TRANSFORMING ORGANIZATION

Leadership Development in the Organization

Move to another area

Dismiss if no improvement occurs within 3 months

Continue to develop and coach

Retain and provide future tasks Future

Top

After assessment, candidate results are analysed, and the candidate readiness process looks at the following:

Leadership competencies

Assessment against competencies will also provide more insights on potential of each candidate

Job fit

Percentage of suitability to next promotion in same function

Career options

Other potential career or functional fit for candidates to explore

3. Talent Readiness

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Leadership Development in the Organization

3. Talent Readiness - Samples

Achievement Orientation: Consistently achieves objectives, accept difficult challenges, seizes opportunities, and has a high level of energy and enthusiasm.

Impact and Influence: Influence others to achieve goals, enlists their cooperation, appeals to their interests, build trust, and negotiates mutually benificial and sustainable agreements.

Innovation: Experiments with different ways to improve processes, efficiency, and / or effectiveness while maintaining focus on the desired objective or result.

Leading People: Takes responsibility to achieve the organization’s mission, provides clear direction, promotes team participation and cooperation, and accepts decision-making authority.

Strategic Thinking: Creates effective strategies and long-term plans that seize opportunities, anticipates emerging issues and risks, draws from previous experiences, explores industry information, and collaborates with the right individuals.

Communication: Promotes clear understanding, presents clear ideas, speaks up regarding concerns, listens effectively, provides timely and helpful information, and takes responsibility to confirm that communications are received.

Energizing People: Motivates others to achieve goals, articulates a common vision, engages team members, relatives openly, and empowers others to achieve.

Learning Agility: Gains knowledge from experiences, successes, and mistakes and applies that knowledge to new situatios or responsibilities.

Assesment on Competencies

7.0

7.8

7.6

7.0

2.6

7.9

7.0

Other Functional or Career Options

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Leadership Development in the Organization

3. Talent Readiness - Samples

Job Success Analysis

Satyendra Pratap Singh

For The Renaissance Group

Completed: 11/08/2015

Compared to: Chief Executive Officer (Moderate experience) #HA-1178-M-M

v16/02/2015

Harrison Assessments Suitability

This section includes work preferences and tendencies that you have selected from this job. The score to the right of each factor shows the applicant’s score as calculated for each trait.

The green, yellow or red ball in each graph indicates the degree of positive (green) or negative (yellow and red) impact that the factor is predicted to have on job performance. The ball is always inside a bar graph, which indicates the potential range of impact that the factor can have on performance. note that the bar graph can have a different length of each factor. The lengths and positions of the bars are determined by the weightings you have given to each trait in the Job Success Formula setup.

The questionnaire includes a technological ‘consistency detector’ that indicates the reliability of results by analyzing the consistency of the answers on the questionnaire. Satyendra Pratap’s consistency score is 92 which indicates that Satyendra Pratap is 98.4% consistent in answering the questionnaire. This indicates a high likelihood that Satyendra Pratap was truthful, accurate self-aware, and able to concentrate on the questionnaire.

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Leadership Development in the Organization

Based on Talent Audit, development needs are identified based on:

4. Talent Development

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Leadership Development in the Organization

4. Talent Development

Development needs vary as follows:

Mentoring with key senior executives

Project assignments

On-the-job trainings

External training - business and soft skills

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Leadership Development in the Organization

Project Assignments

Projects give talents an opportunity to assess themselves, and identify potential growth.

External Training

Sending talents for key business or specific functional / soft skills programs. Learning from experts helps talents to progress further.

Trainee Programs

Gives young talents a better understanding of a company’s organizational structure.

Management Training

Provides knowledge on fundamental topics such as communications, project management, and leadership.

Job Rotation

Development tools designed to help talents gain valuable and practical experience.

Coaching

Contributes positively to personal development and improved performance.

4. Talent Development

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Leadership Development in the Organization

5. Succession Management

With organizational growth, candidates from this program will be given first option in fulfilling needs. Candidates who are placed will also continue to be mentored in a structured manner by leveraging some of the assessment tools (LSI and their Performance KPIs).

Step 1: Prepare the followings:

1. Leadership plan - Please refer to the plan developed after the assessment (Hats, 16PF & LSI)

2. Performance Plan: the following is a sample

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Leadership Development in the Organization

5. Succession Management

Candidates will be continuously mentored to continue their personal development. Mentoring is focused on four key characteristics:

Clear development objectives and specific goals in line with mentee aspirations, and the organisation’s strategic direction and operational priorities

Detailed analysis of mentee needs

Regular reviews of desired success against goals with program sponsor, mentee and other key stakeholders

Evaluation of program outcomes

“Great leaders encourage leadership development. By openly developing themselves” encourage developing - Marshall Goldsmith

7.0 Leadership & Organizational Development

Organizational Development - Culture

Managing organizational culture is among the most important and most difficult challenge facing organizational leaders.

Company culture — often called organizational culture — is defined as the shared values, attitudes and practices that characterize an organization. It is the personality of your company and it plays a large part in your employees’ overall satisfaction. A strong company culture will attract the right candidates for the job and keep them engaged as employees.

According to a recent Glassdoor study, 77% of adults would evaluate a company’s culture before applying to an open position. Perhaps more impactful, 56% rank an organization’s company culture as more important than compensation.

Creating a winning company culture takes a lot of time and effort — your corporate culture must accurately reflect your values and align with your overall mission. It is a big to-do, but don’t get discouraged: your efforts will pay off in the long run.

7.0 Leadership & Organizational Development

Peter Drucker

Founding Father of Modern Business

“Culture eats strategy for breakfast.”

TRANSFORMING ORGANIZATION

Organizational Development - Culture

385 ORGANIZATION TRANSFORMATION

Stability Focus

Bureaucratic Competitive

Quinn & Rohrbaugh created the Competing Values Framework based on their research (1983), which showed two key variables that form four basic types of organizational culture.

1. To what extent the organization’s focus is internal (on employees) versus external (on customers and the market).

2. How much the organization leans toward stability and control or toward flexibility and change.

These two variables show 4 types of organizational culture, as depicted on the diagram.

Flexibility Focus

Quinn & Rohrbaugh, Competing Values Framework (1983)

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Organizational Development - Culture

Bureaucratic

There is a well-defined, formal, structured work environment that depends on authority, hierarchy and procedures to keep the organization running smoothly. There is a focus on efficiency, reliability and smooth execution.

• Goal: Predictability

• Identity: Belonging – The organization will take care of you in exchange for loyalty

• Orientation: How things are done – accuracy, efficiency in task completion

• Approach to work: Do things right

• Leadership style: Authority

• Downside: Red tape

Bureaucratic

Competitive

Community Entrepreneurial

Quinn & Rohrbaugh, Competing Values Framework (1983)

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Organizational Development - Culture Community

This is a friendly environment to work in. People are relationshiporiented and express themselves more openly. There is a high level of involvement and teamwork. A great value is placed on trust and morale, and at times established policies may be disregarded in order to maintain positive relationships.

• Goal: Synergy

• Identity: Belonging – You are part of a family that cares about you

• Orientation: How things are done – teamwork

• Approach to work: Do things together

• Leadership style: Mentor

• Downside: Group think

Bureaucratic Competitive Community

Quinn & Rohrbaugh, Competing Values Framework (1983)

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Organizational Development - Culture Competitive

There is a pervasive customer-focused, goal-oriented attitude with a strong emphasis on delivering results. Policies, procedures, and measures are aligned to respond to market demand and meet customer needs. The environment is challenging and competitive. Top performers are rewarded and highly regarded.

• Goal: Winning

• Identity: Meritocracy

• Orientation: Results – winning

• Approach to work: Do things best

• Leadership style: Coach

• Downside: Stress and burnout

Community Entrepreneurial

Quinn & Rohrbaugh, Competing Values Framework (1983)

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational

Organizational Development - Culture Entrepreneurial

There is an entrepreneurial, innovative environment where risktaking, experimentation and creativity are more important than policies or procedures. Individual initiative and freedom are encouraged. The atmosphere is dynamic and free-wheeling, and roles are not always clearly defined.

Development

Goal: Innovation

Identity: Individual initiative

Orientation: Results – creative new ways to solve problems

Approach to work: Do things differently

Leadership: Emergent (arises in relation to what is needed)

Downside: Chaos

Bureaucratic Competitive

Community Entrepreneurial

Quinn & Rohrbaugh, Competing Values Framework (1983)

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Shape of Organizational Culture

Just as each individual’s personality is unique, so is each organization’s culture. Rarely does an organization’s culture lie entirely in one quadrant. For example, this shape would be typical of a tech start up. Free-wheeling, fun-loving, hard-working, creative, and innovative. Lots of mistakes, lots of learning. A strong sense of camaraderie.

However, it might take a different shape, depending on several unpredictable factors such as the values and beliefs of new leaders, effects of disruptive technologies, and changes in regulations or the economy The older and larger the organization is, the more set its culture becomes.

Over time, as that company matures, the shape of the organizational culture is likely to change. It might start to look more like the diagram on the right. Still outward focused, but less camaraderie, more focus on individual performance, and less tolerance for mistakes.

However, it might take a different shape, depending on several unpredictable factors such as the values and beliefs of new leaders, effects of disruptive technologies, and changes in regulations or the economy. The older and larger the organization is, the more set its culture becomes.

There is no one best culture. The best shape for your culture depends on your business and its goals. What is important is that your culture and business strategies are aligned. Monitoring your organization’s culture is as important as monitoring profits.

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Organizational Development

Culture Assessment

All companies have cultures. The question is whether your organization’s culture represents an asset or liability.

The Organizational Culture Inventory (OCI) assessment from Human Synergistic provides reliable and valid information on the culture that should be driving employee behaviours, the culture that is currently driving employee behaviours, the factors that create and reinforce the current culture, and the outcomes that result from that culture.

Based on this information, leaders and other organizational change agents can:

• Determine whether the organization’s culture is an asset or a liability.

• Identify targets for change and improvement.

• Pinpoint levers for achieving internal alignment between the organization’s mission, vision, and values, on the one hand, and its actual day-to-day operating culture, on the other.

• Quantify the impact of change initiatives and interventions.

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Organizational Development

Culture Assessment

How does it work? OCI typically starts with assessing the ideal culture in terms of behaviors and personal styles that should be expected in the organization by respondents.

OUTCOMES

Individual Motivation

Performance

Satisfaction

Stress Group

Teamwork

Coordination

Cooperation

Organizational

Quality

Customer Service

External Adaptability

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Organizational

How does it work? Both current and ideal OCI results are plotted on a normed circumflex that compares an organization’s scores (or the scores of its units).

OUTCOMES

IDEAL CULTURE

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Organizational Development

Culture Assessment

OCI measures 12 different cultural styles that reflect 3 general types of cultures:

• Constructive cultures, in which employees are encouraged to interact with others and approach tasks in ways that will help them to meet their higher-order satisfaction needs (includes Achievement, SelfActualizing, Humanistic- Encouraging, and Affiliative cultures).

• Passive/Defensive cultures, in which employees believe they must interact with people in defensive ways that will not threaten their own security (includes Approval, Conventional, Dependent, and Avoidance cultures).

• Aggressive/Defensive cultures, in which employees are expected to approach tasks in forceful ways to protect their status and security (includes Oppositional, Power, Competitive, and Perfectionistic cultures).

Whether your organization’s current culture will look like its ideal depends on whether its systems, structures, technologies, and skills/qualities are in alignment with the stated values, vision, mission, philosophy, and goals.

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Organizational Development

Culture Assessment

Mapping a course for change - the feedback report focuses on how to use results to plan for improvement in the organization.

TRANSFORMING ORGANIZATION

7.0 Leadership & Organizational Development

Organizational Development

Culture Assessment

Structures

Total influence

Distribution of influence

Empowerment

Employee involvement

Systems

Human Resource Management: Selection and placement

Ideal Culture (Humanistic and Achievement)

Training and development

Respect for members

Appraisal and Reinforcement: Fairness

Use of rewards

Mission and Philosophy

Articulation of mission

Customer service focus

Use of punishment

Autonomy Variety Feedback

Goal setting: Clarity Challenge Participative Acceptance

Current Ideal Culture (Oppositional and Power)

Individual Outcomes

Positive:

Role Clarity

Motivation

Satisfaction

Intention to stay

Technology Skills/Qualities

Communication: Upward Downward Learning

Bases of power: Organizational Personal

Task identity Significance Interdependence

Leadership: Interaction facilitation

Task facilitation

Goal emphasis Consideration

Largest Culture Gaps: Avoidance and Self-Actualizing. Gaps between the ideal and current operating cultures are likely due to misalignment of causal factors (mission and philosophy, structures, systems, technology, skills/qualities) with the ideal culture.

Negative: Role Conflict Job insecurity Stress

Group Outcomes

Intra-unit teamwork and cooperation

Inter-unit coordination

Deparment-level quality

Organizational Outcomes

Organizational-level quality External adaptability

Results are at or better than the Historical Average. Results are not as good as Historical Average.

IDEAL CULTURE (Section 2)

IDEAL CULTURE (Section 2)

CAUSAL FACTORS (LEVERS FOR CHANGE) (Section 3)

OPERATIVE CULTURE (Section 4)

Transforming Organizations

Transformation enables an organization to operate differently in support of their business strategy. It occurs at the enterprise, business unit or functional level, and leverages behavioral analytics, actuarial capabilities and research insights to drive the change.

In a world of unprecedented disruption and market turbulence, transformation today revolves around the need to generate new value—to unlock new opportunities, to drive new growth, and to deliver new efficiencies. All transformations require you to rethink how your enterprise creates value today and in the future.

Digital and emerging technologies, changing market conditions, and regulatory pressures are common external forces that drive business transformation.

Internally, it might be new leadership or an event such as a merger or acquisition that sparks change.

Whatever the driving cause, the same challenges apply: How can you align your organizational structure, talent, leadership, and culture with your business strategy to deliver true transformation and sustain it over time?

The Organization Transformation Framework embodies a model which ensures organizations get from Strategy to Execution.

It also takes into account the “ever changing world” and the disruptions which revolve around it.

The Framework is a 7-step approach which can be applied iteratively as a whole or independently to fix a particular business challenge.

It consists of the followings :

• Corporate Governance

• Sustainability Management

• Strategy Management

• Financial Management

• Customers & Marketing

• Operations & Technology / Digital Transformation

• Leadership & Organization Development

“The only real difference between one organization and another is the performance of its people.” organization performance

- Peter F. Drucker

Transforming Stakeholders

Stakeholder management is the process by which you organize, monitor and improve your relationships with your stakeholders. It involves systematically identifying stakeholders, analyzing their needs and expectations, and planning and implementing various initiatives to engage with them.

A good stakeholder management process will be the means through which you are able to coordinate your interactions, and assess the status and quality of your relationships with various stakeholders. Engaging stakeholders is important because they:

Stakeholder Transformation

TRANSFORMING STAKEHOLDERS FRAMEWORK

1. IDENTIFY

Identify stakeholders and understand their expectations.

Analyze each stakeholder by leveraging Stakeholder Map

Engage with stakeholders regularly

Develop plans to manage each stakeholder

3. PLAN

2. ANALYZE

4. ENGAGE

1. Identify TRANSFORMING STAKEHOLDERS

In business, a stakeholder is any individual or group(s) that has an interest in an organization and the outcomes of its actions. Common examples of stakeholders include employees, customers, shareholders, suppliers, communities, and governments. Different stakeholders have different interests, and companies often face trade-offs in trying to please all of them.

1. Identify TRANSFORMING STAKEHOLDERS

Stakeholder Expectations

Types of Stakeholders in an Organization

• Expectations: Product/service quality and value

• Many would argue that businesses exist to serve their customers. Customers are actually stakeholders of a business, in that they are impacted by the quality of products/services and their value. For example, passengers traveling on an airplane literally have their lives in the company’s hands when flying with the airline.

• Expectations: Employment income and safety

• Employees have a direct stake in the company in that they earn an income to support themselves, along with other benefits (both monetary and non-monetary). Depending on the nature of the business, employees may also have a health and safety interest (for example, in the industries of transportation, mining, oil and gas, construction, etc.)

• Expectations: Financial returns

• Investors include both shareholders and debtholders. Shareholders invest capital in the business and expect to earn a certain rate of return on that invested capital. Investors are commonly concerned with the concept of shareholder value. Lumped in with this group are all other providers of capital, such as lenders and potential acquirers. All shareholders are inherently stakeholders, but stakeholders are not inherently shareholders.

1. Identify TRANSFORMING STAKEHOLDERS

Stakeholder Expectations

Types of Stakeholders in an Organization

• Expectations: Revenues and safety

• Suppliers and vendors sell goods and/or services to a business, and rely on it for revenue generation and on-going income. In many industries, suppliers also have their health and safety on the line, as they may be directly involved in the company’s operations.

• Expectations: Health, safety, economic development

• Communities are major stakeholders of large businesses where these businesses are located. They are impacted by a wide range of aspects, including job creation, economic development, health, and safety. When a big company enters or exits a small community, there is an immediate and significant impact on employment, incomes, and spending in the area. With some industries, there is a potential health impact too, as business operations may change the environment.

• Expectations: Taxes and Gross Domestic Product (GDP)

• Governments can also be considered a major stakeholder in a business, as they collect taxes from the company (corporate income taxes), as well as from its employees (payroll taxes) and from other spending the company incurs (sales taxes). Governments benefit from the overall Gross Domestic Product (GDP) that companies contribute to.

2. Analyze TRANSFORMING STAKEHOLDERS

Stakeholder Mapping

Stakeholder mapping (commonly referred to as stakeholder analysis) is the process of identifying an organization’s internal and external stakeholders, and mapping whose interests should be taken into consideration when developing a policy or program. It is also a way of trying to understand how a particular stakeholder may be affected by decisions.

A stakeholder mapping matrix allows managers to analyse which stakeholders to attach the most importance to when making a decision, by classifying into four most important categories:

• those who require minimal effort to be kept satisfied

• those who must be kept informed

• those who must be kept satisfied

• those who are the most important (key players)

Managers can then break down stakeholders into the level of interest and power that stakeholders have in the decision-making process, ensuring that they focus their attention on the correct stakeholders for the decision being considered.

2. Analyze TRANSFORMING STAKEHOLDERS

Stakeholder Map

Provides a framework for managing stakeholders based on interest and influence.

• Y-axis: “Influence” sometimes labelled as “Power” (but can be a charged term).

• X-axis: Sometimes just labelled as “Interest”.

High Influence and High Interest

• Business owners and others with significant decisionmaking authority

• Have the authority to sustain, nurture or end the project

• Typically easy to identify

• Typically easy to be engaged

• Crucial to set up consistent touch points

2. Analyze TRANSFORMING STAKEHOLDERS

Stakeholder Map

High

• Those with significant decisionmaking authority.

• Lack availability or interest to be actively engaged.

• Usually difficult to have consistent touch points

• Do whatever is needed to keep them satisfied.

• May be impacted by the project or activity, but have little influence.

• May want more of your time than you can give

• Find efficient ways to communicate and keep them informed via:

- Email updates

- Presentations

- Publicity campaigns

• They are not (and do not expect to be) significantly involved.

• They may not even be aware of your project and may not want another email in their inboxes!

• Know who they are.

• Monitor them and be aware if they move into other quadrants.

TRANSFORMING STAKEHOLDERS

2. Analyze

Stakeholder Map Example

The main benefit of a stakeholder map is to get a visual representation of all the people who can influence your project / activity and how they are connected.

2. Analyze TRANSFORMING STAKEHOLDERS

Stakeholder Mapping Benefits

Stakeholder mapping helps you to categorize your stakeholders by deciding where they fall in terms of their influence (high/low) and interest (high/low) regarding your project.

Without this knowledge, you might miss identifying key stakeholders (high interest/high influence) who can positively or negatively impact your project, and without identifying these stakeholders from the start, you might miss a critical opportunity to build trust and relationships.

Stakeholder mapping helps you focus your resources.

Once you have categorized your stakeholders, you have a greater understanding of who needs your attention, so you can focus your resources. The stakeholder mapping process can also help you uncover potential risks that may arise during your project, and gives you the opportunity to assign required resources to combat these potential future issues.

TRANSFORMING STAKEHOLDERS

2. Analyze

Stakeholder mapping helps you understand the volume of stakeholders you will be engaging with and to what extent.

It is beneficial to know how many stakeholders you will need to engage with, so that you can choose the best communication methods to suit the volume of stakeholders (e.g. perhaps a virtual town hall meeting would be beneficial for a larger group who needs to hear similar messaging). This information can also help you to decide how much time may be required from your team, and whether you might have to consider bringing on more team members for the project, or hiring an external contractor to help.

Stakeholder mapping helps bring your team together.

A mapping exercise is best completed with your entire team. Working together helps ensure everyone is on the same page from the very beginning, which is an essential ingredient in effective stakeholder management!

2. Analyze TRANSFORMING STAKEHOLDERS

Identify and Map Stakeholders

Exercise Objective: Exercise Process:

1. Identify stakeholders and understand their expectations.

2. Analyse and map them accordingly based on their needs.

1. Start by listing the type of stakeholders and their expectations.

2. Using flip chart paper and stickies, create a stakeholder map for your team.

“Plans are worthless, but planning is everything.” planning

- Dwight Eisenhower

3. Plan TRANSFORMING STAKEHOLDERS

A stakeholder management plan is a written document that outlines how your team plans to manage the goals and expectations of key stakeholders. With internal alignment and a common understanding of stakeholder engagement, you can move on to building a strategy.

The following steps allow you to:

3. Plan TRANSFORMING STAKEHOLDERS

Primary components of stakeholder management plan:

A list of all known stakeholders

Include their name, role or position, and contact information.

Rank stakeholders based on their ability to influence your project and how much they care about its outcomes.

You cannot manage expectations if you do not know what they are. You must document everything, including how they prefer to communicate and what they want to be involved with.

The plan should outline the level, frequency, and type of communication with each stakeholder, as well as who on the team is their point of contact.

This is the meat of your plan — it is where you outline how you will manage stakeholder involvement and what steps to take to ensure expectations are met.

3. Plan

3. Plan TRANSFORMING STAKEHOLDERS

Planning

Exercise Objective:

1. Draft a stakeholder management plan.

Exercise Process:

1. Start by listing the types of stakeholders and their expectations.

2. Develop the engagement methods and frequency required to ensure they are happy with the activities / initiatives / projects.

TRANSFORMING STAKEHOLDERS

4. Engage

Stakeholder engagement is crucial as it:

4. Engage TRANSFORMING STAKEHOLDERS

Engagement Approach

1. Seek to understand before being understood

Steven Covey shared this principle years ago. It still holds true. Furthermore, people want to know that you really want to hear their perspective first.

2. Listen, really listen

Part of understanding is making time to sit face-to-face, when possible, and truly listen. Ask probing questions.

3. Lead with integrity

Meaningful engagement requires trust. Say what you mean; mean what you say. And then do what you said you would do.

4. Work with your team

The best managers work with their stakeholders to break down their projects / initiatives into deliverables and tasks. This helps everyone to have a better understanding of the project/initiative. Furthermore, stakeholders will more likely support a plan that they helped create.

5. Manage expectations

Each of your stakeholders has expectations, sometimes false expectations. Working with your team will clarify many of these aspects of the project.

6. Say “Thank You”

The managers whom most people prefer most, know two simple words “Thank You”. When team members and other stakeholders complete activities, respond to emails and voicemails, make you aware of things you did not know, respond with thanks.

7. Communicate, communicate, communicate

Ninety percent of a project manager’s job is communication. Develop and maintain a communications plan.

4. Engage TRANSFORMING STAKEHOLDERS

Exercise Objective:

1. Explore potential engagement challenges with each stakeholder from your plan

Exercise Process:

1. Start by reviewing the communication approach and frequency from your plan.

2. Explore potential challenges.

3. Plan mitigation plans to manage stakeholders.

“Stakeholder engagement is a never-ending process. engagement

We have to continually earn stakeholders’ confidence. It’s a relationship.” relationship

- Wouter Vermeulen