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Aligning Expectation in a Business Transition.V1

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The role of realigning stakeholders and Key players that enable a business owner to transition out of their business

The role of realigning stakeholders and Key players that enable a business owner to transition out of their business


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  • At the start Overall Distraction (Misalignment) was about 85%After three months of alignment work we were to this point
  • Four additional months of work brought us here.
  • Our experience with a large construction company…OAC – Owner-Architect-Contractor meetingsRFI – Requests for informationCO – Change OrderNote the very small numbers of expectations related to these three issues and yet the Core Team placed a high value on these activitiesThese were key issues in project delay and cost overrun
  • Talk about fast cycle time versus monolithic approach RORI – Return on Resources Invested
  • Transcript

    • 1. AlEx™
      The Line of Sight to Transition
      Reducing Business Dependence on the Owner
      Copyright PDS Group 2009 All Rights Reserved
    • 2. Why do so many initiatives fail?
      60%+ of change initiatives fail in North America
      70%+ of leaders expectations arenot understood by their people about a major change – particularly when down-sizing
      72% of people hired are terminated within 2 yrs due to lack of alignment
      In the last 12 years, 2 in 3 failure rate
      has not changed –
      From Kotter (1996) to McKinsey (2009)
    • 3. Non-Financial Factors
      Valued Most By Investors
      Only 1 in 10 can consistently achieve their Strategy’s full potential
      Factors
      <10%
      Strategy Execution
      >90%
      Management Credibility
      Quality of Strategy
      Innovativeness
      Companies Not Delivering Consistently on Strategy
      Attract Talented People
      Implementation Challenge
      Strategy Execution
      Poor Strategy Execution - Impact
      95% of employees don’t understand company strategy
      50% of average employee’s time spent on non-productive work
      50% more likely to have turnover
      Sources: “The Balanced Scorecard” David P. Norton; Arthur Andersen estimate: Corporate Strategy Board research;
      Measures That Matter,” Ernst & Young, LLP, Gates, Stephen, Aligning Strategic Performance Measures and Results
    • 4. The elastic band of dependence
      Organization
      Owner
    • 5. What do you allow employees to do?
      Habits of dependence they think is required:
      It’s easier – “if I don’t make decisions, I can’t make mistakes”
      Lean on the founder because they fear change...who will take over after…On the plus side…..
      Employee Involvement (EI) is greater in companies under 25 employees who typically have developed a working relationship with the owner:
      Encourages commitment to managerial goals & the success of the enterprise
      Increases profitability
    • 6. Signs of misaligned expectations
      “That’s not what I meant…”
      “This is not what I asked for!”
      “My colleagues don't seem to do what I expect...”
      “They never tell us the whole story!”
      “I can never do anything right!”
      “They never send us information,
      we’re always sending information to them!”
      Sound familiar?
      Copyright PDS Group 2009 All Rights Reserved
    • 7. 1
      2
      4
      3
      Can you Transition? Dependency Analysis
      Hi
      You ain’t
      going
      Anywhere!
      They don’t
      get it!
      What you expect
      You can
      Transition!
      You don’t
      get it!
      Independent
      Lo
      Lo
      Hi
      What they think you expect
    • 8. Copyright PDS Group 2009 All Rights Reserved
      Increased sales by
      10%-15% in 30 weeks
      Increased
      Customer Sat. Ratings
      (4th – 1st)
      Gross Revenues
      Up from $20m to $30m
      AlEx™
      Prevented
      Restructuring
      Failures
      Closing Rate
      Improved by 66%
      Isolated Hi
      Performing Teams
      Factors
      Delivered Building
      OTIF & No Legal Issues
      Increase Revenue
      14% in 6 months
    • 9. Genzink Steel Case Study
      “My aim was to transition out of operations while getting more visibility and insight about GS people.
      I needed an approach that could show:
      Which people are that understand their job;
      Which people need a little help to get the job done;
      Who are the people who just don’t get it?
      With bringing in new people quickly, an assessment was needed to see if the blend of new and existing team were able to sit down and understand what needs to get done. “Are they going to hook up?”
    • 10. Genzink Steel Case Study (contd.)
      AlEx™…..helped me:
      Gain insight about the new people and those we had on-board for some time
      Realize more than ever that many decisions and observations were assumptions....AlEx™ verified and challenged my assumptions
      Verify and test other peoples’ assumptions by mapping out the key inter-relationships…
      Depend on five key managers …which showed how well they hooked up and how I could get to the point of standing back.
    • 11. Cliff & Tom Case Study
      Cliff’s Expectations of Tom
      What Cliff Thinks Tom Expects of Him
      12
      22
      What Tom Thinks Cliff Expects of Him
      Tom’s Expectations of Cliff
      13
      4
    • 12. Four Blocker Problem
      Copyright PDS Group 2009 All Rights Reserved
      2 People
      4 People
      8 People
      20 People
    • 13. Unresolved
      Issues
      PerformanceCriteria
      Discards
      New & Matched Expectations
      Aligning Expectations Process (ALEX™)
      My Expectations of Others(MEOs)
      What Others’ Think I Expect Them(OEMs)
      AlignmentDiscussions
      Copyright PDS Group 2009 All Rights Reserved
    • 14. My Expectations
      What I expect of people during the transition. Includes:
      What I expect you to Keep doing . . . .
      What I want you to Startdoing . . . .
      What I want you to Stop doing . . . .
    • 15. Others’ Expectations
      What I think others will expect of me during the transition, Including:
      What things I think others will expect me to Keepdoing . . . .
      What I think others want me
      to Startdoing . . . .
      What things I think others want me to Stop
      doing . . . .
    • 16. Keep, Start & Stop
      In all planned change the minimum number of alignment components needed is:
      • What do people need to keep doing
      • 17. What do they need to start doing
      • 18. What they must stop doing
    • Keep Expectations
      Ensure all PO's and subcontracting will be directed through Matt G. for pricing review, final approval, communication and follow-up.
      Consistently convey the message to troops that we have to work as a team to meet the schedule objectives that the customer expects - not as separate departments
      Ensure that all processes and planning documents that I have developed are used consistently and continually improved
    • 19. Start Expectations
      Help people in the plant look at the big picture when planning the work at each station and be able to quickly adapt the schedule according to the availability of parts and the work required at the next station.
      Support me to work with the service people and sales people to change their attitude from "us" to "we" (cross functional problem solving)
      All PO's or subcontracting of raw materials will be directed through Matt G and progress of any subcontracting will be followed up by Matt G
    • 20. Stop Expectations
      Become increasingly less involved in the MRO improvement process with me in an overview of the objectives limitations and capabilities of the modified software
      Stop being so impatient!
      Overcoming the mindset "These are our customers and we do every thing to take care of them" with balancing their needs with our ability to do profitable work with on-time delivery.
      Stop people finger pointing by getting them together to resolve issues when an incident occurs and consistently stress that this is not acceptable
    • 21. AlEx™ - The Alignment Process
      2
      4
      1
      3
      Introduce
      Components & Process
      DevelopStrategic
      Components
      Select
      Key Players &/or Focus Groups
      Mission & Strategy
      Coach Participants &Collect Their Expectations
      6
      Key Component Prioritization& Implications
      Use CrossHairs Reports todevelop problem definitions
      AlEx
      5
      7
      9
      8
      Alignment Process
      Brief, Train, Coach Rapid Improvement Cycles
      (Based on Tracking TBDs, Discards, Complete & Unresolved Expectations)
      Integration &Transfer
      Capability
      Knowledge
      Skills
      Capacity
      Develop Metrics &
      Rewards per
      Component
      Copyright PDS Group 2009 All Rights Reserved
    • 22. Project Sizes
      Royal Bank of Canada
      IMS Health (Canada)
      Qwest Telecoms
      Genzink Steel
      Turner Construction
      20 participants/6 weeks
      25 participants/10 weeks – Phase 1
      12 participants/8 weeks – Phase 1
      6 participants/14 weeks
      12p/8w;86p/1yr; 100+/Ongoing
      Copyright PDS Group 2009 All Rights Reserved
    • 23. Progressive DIs
      Copyright PDS Group 2009 All Rights Reserved
    • 24. Cliff & Tom’s Four Blocker
      Cliff’s Expectations of Tom
      What Cliff Thinks Tom Expects of Him
      12
      22
      4
      13
      What Tom Thinks Cliff Expects of Him
      Tom’s Expectations of Cliff
      Copyright PDS Group 2009 All Rights Reserved
    • 25. Cross HairsAlignment Issues identified
      Q1
      Q4
      Q3
      Q2
      Copyright PDS Group 2009 All Rights Reserved
    • 26. Independence Cross Hairs
      Copyright PDS Group 2009 All Rights Reserved
    • 27. Right Focus
      Right People
      Right Responses
      Achieving Successful Transition
    • 28. Over Channeling
      Inside Groups
      Managers
      AlEx™
      Content
      Priorities
      What’s your Line of Sight?
      Between Groups
      Direct Reports
      Under Channeling
      Copyright PDS Group 2009 All Rights Reserved
    • 29. Phased Competency Development - Priorities
      Copyright PDS Group 2009 All Rights Reserved
    • 30. Initial Component Alignment Indices
      Copyright PDS Group 2009 All Rights Reserved
    • 31. Current Component Alignment Indexes
      Copyright PDS Group 2009 All Rights Reserved
    • 32. Cross Hairs - Targeting on what counts
      OAC’s as a percentage of total expectations – 11:2489=.44%
      RFI’s /design issues expectations as a total percentage of total expectations 116:2489=4.6%
      CO’s as a total percentage of total expectations 128:2489=5.1%
      Copyright PDS Group 2009 All Rights Reserved
    • 33. Time
      Getting Aligned – Weekly!
      Requirements
      ImprovingAlignment
      Weekly
      Alignment
      Meetings
      Reduce Costs& Increase Revenue
      Traditional
      40
      Copyright PDS Group 2009 All Rights Reserved
    • 34. The Alignment Process
      Agree
      Evidence
      Rate
      Coach
      Rate Again
      AlEx™ Easy Entry
      AlEx™ Cross Hairs
      AlEx™ Priority 5
      AlEx™ Cross Hairs
      New Expectations
      Hold Receivers Accountable
      Copyright PDS Group 2009 All Rights Reserved
    • 35. Seven Alignment Challenges
      Embedding
      Change
      Coaching
      Strategically
      Replicating
      Success
      Removing
      Distractions
      Operational
      Excellence
      Aligning
      Expectations
      Rewarding
      Change
      39
      Copyright PDS Group 2009 All Rights Reserved
    • 36. AlEx™
      The Line of Sight to Success
      Thank you
      Copyright PDS Group 2009 All Rights Reserved