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

Aligning Expectation in a Business Transition.V1 Presentation 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