21C Organization Presentation

NOTICE: The content presented in this document, along with all models and images are the intellectual property of Banks International, LLC and have been copyrighted. The copying or reproducing of any part of this document in any manner whatsoever without the express written consent of Banks International is expressively prohibited, and violators can be subject to legal actions. © Banks International, LLC 2008-2011. All rights reserved. The New 21st Century Organization is an organization that functions with Adaptability, Efficiency, and Flexibility,has adopted The New Contract, has a predominantly Adult-Adult culture, and concentrates on creativity andinnovation Flexibility (Organizing to cope with unexpected turns of events) Quick handling of emergencies and sudden crises Quick response to sudden overloads and unusual demands Efficiency (Organizing for routine production) High quantity and quality of product High Output/Input ratio Continuously improving current routines Adaptability (Organizing to change routines) Breaking old routines Anticipating problems and developing timely solutions Staying abreast of new methods applicable to the organization’ activities Prompt acceptance of solutions Widespread acceptance of solutions © BANKSinternational, LLC 2005. Based on the published Works of Dr. Min Basadur. © Basadur Cemtre for Applied Creativity. By definition, Efficiency and Flexibility are the tactical and dynamic short term targets. Adaptability is the long term,sustainable strategic posture. Adaptability is also where the real competitive advantage lies. However, it’s whereresistance to change is most overt since it’s where change tends to be most disruptive and cause most organizationalstress. The demonstrated best way to develop and organization to be Efficient, Flexible, and Adaptable requires an effective, repeatable and reproducible Creative Problem Solving process, an Adult-Adult culture, a 21stCentury style of Leadership, and a modern functional culture with modern processes and controls, such as 6δ, 5S,S&OP, MOS, Lean, etc.Copyright © Banks International LLC 2006-2011. All rights reserved. Controlled Document No. 2011.3.26

The New Contract or Partnership Strategy refers to the modern agreement between employees and their employer,(represented by the bosses). It requires a paradigm shift in the roles of employees and their bosses - a paradigm shiftin the way bosses see and interact with their people, and vice-versa. It requires a change of behavior (Adult toAdult), a change in relationships between bosses and subordinates, distribution of responsibility, and sharing ofmarket risks. It requires that employees capture an intimate knowledge of how the business operates (what we callbusiness literacy), that they make themselves responsible and accountable for results, and that they take ownershipof the organization, its clients, its Vision and Organizational Mission, and of their own future.The 160+ year old Traditional Contract suggests that there be a paternalistic relationship between bosses (whounknowingly and unwittingly act as “parents”) and employees (who may also unknowingly and unwittingly act asdependents of the “parents”). This leads employees to wait for bosses to make all decisions, give orders, break newground, steer them, protect them, and take care of them. The success or failure of the enterprise lies in the hands ofthese “parents.” This, in turn, strips the individual employee of their own responsibility in producing success. He/shethen mostly worries about following orders, executing to expectations, and hopefully continuing to consistently gainthe favor of the “parents.” Here we lose the intellectual capital of people, and the knowledge and experience gainedthrough time does not necessarily contribute to or advances the organization’s Mission. The weight of responsibilityfor results is placed on the bosses’ shoulders (which isn’t entirely fair), and unconsciously provokes them to treatpeople with a high degree of control over them. The transformation of an organization to The New Contract is achange of culture, which takes time, runs into some opposition, and requires a distribution of authority and power.This may be tough in some environments, because the needed levels of mutual trust don’t exist and the risks areseen as too high, especially in risk-averse environments. Yet, there is evidence that suggests that the fears may notbe justified in most environments, particularly when the process of evolving to the New Contract is executed well.This transformation to The New Contract requires a concerted change in some of how an organization traditionallyfunctions. The most critical element is starting with a transformation at the top and moving down to functional levels,until arriving organization-wide at what are 21st Century Leadership skills. Core Workers Leadership Mature Let Go Participate CULTURE Involve Others Take Ownership Inspire & Lead © BANKSinternational, LLC 2004 3 DISTINCT EVENTS MUST TRANSPIRE FROM BOTH SIDES OF THE INFLUENCES OF CULTURE Evolve from “dependent” Evolve from “parent” role and Mature role and make choices Let Go become coach Get involved with the whole Involve others in the business; Participate business, not just your job Involve coach, delegate, empower Own the end results – see Inspire Think possibilities, think big, Ownership your complete role think can do, enable everyone & Lead © BANKSinternational, LLC 2004Copyright © Banks International LLC 2006-2011. All rights reserved. Controlled Document No. 2011.3.26

To develop a 21st Century New Organization with its associated better results, the functional culture (how things aredone) and the social culture (how people interact) must evolve. Currently, the dominant corporate culture today is theTraditional culture, defined by consolidation of power (at the top), and by “Parent-Child” attitudes, relationships,treatment, interactions, and conversations. The Traditional Culture, also known as a Paternalistic Culture and/or theOld Contract, will not take an organization easily, swiftly, or cost-effectively to the levels of performance or the resultssought in our economy or the global market.Traditional Cultures, although they demand a sense of ownership, do not promote, support, or reward true ownershipof the whole enterprise. This particular characteristic is indispensable to becoming a 21st Century New Organization.Generally, people take ownership of their jobs and functions, but not of the whole, not of the enterprise. In TraditionalCultures, the functional domain is highly controlled by Consolidation of Power, most often discouraging bringing innew ideas or even improvements from levels below the consolidated power.In Traditional Cultures, the social domain of the culture is oftentimes dominated by unhealthy postures, such ascynicism, skepticism, victim/villain thinking, by-standing, detachment of work, politics, and search for power, status,and/or control. In these cultures, many leaders tend to prefer tactical management over strategic thinking, planning,and execution. Unknowingly and unwittingly, these cultures tend to discourage people from self-empowering so thatthey can advance the cause of the organization.Shedding a traditional paternalistic culture and evolving towards an Adult-Adult environment requires deliberate workon the two domains that influence culture. Employees cannot and will not evolve until the leadership uses itspatriarchic influence to systematically help them evolve into “adults,” independent and co-accountable for execution,performance, results, and their own well being. Likewise, employees must want and pursue that state. Research bywell regarded and prestigious academic institutions, as well as by reputable private interests, suggest that the mosttransformational commercial strategy that will lead an organization to a better economic performance in the 21stCentury is the progression of a paternalistic-style culture into an adult to adult type culture (what we refer to as TheNew Organization, The New Contract, or The Partnership Strategy).Under the Partnership Strategy, people are invited to participate in and are rewarded for embracing the risk of beingin the marketplace and for choosing accountability for the whole of the business. People become much morebusiness literate, deal with their own emotional welfare, have a point of view about the business, and choose goodwilland contribution for the success of others. They maximize their skills and competencies to contribute to the overallMission of the organization, rather than just contribute to their own organization/department/function.Most organizations claim that the above describes their organization to one extent or the other. Sadly, by the otherdefining parameters of what constitutes the New Contract/Partnership Strategy, they’re not exactly that. There maybe manifestations of some of these characteristics here and there, but they tend to be somewhat isolated and areoftentimes frowned upon by some corporate powers that see it as “rebellion” (or at worst “mutiny”) to depart from theirnormal way of executing. These organizations remain by all definitions paternalistic cultures. Most don’t know howNOT to be a paternalistic organization, while others are terrified of the idea of changing. Yet evidence suggests thatorganizations operating under the New Contract or new Partnership Strategy are indeed more profitable, stable, andcan in the end reach market supremacy.While there are many classifications, types, and characteristics of corporate cultures, most have been defined by apredominant style that establishes a hierarchy of authority, vested on only a few. This has given birth to “tribes,”“clans,” and subcultures within the given corporate culture, so as to react to internal and external forces. And, whilemore times than not, corporate cultures are defined by their dominant subcultures (high or low risk; quick, slow, or nofeedback), they all fall into the general style of a paternalistic culture. The 21st Century now calls for these subculturesto engage in the governing of the organization through contributing outside of their designated roles.Copyright © Banks International LLC 2006-2011. All rights reserved. Controlled Document No. 2011.3.26

Dominant Cultural Styles Leaders: Act like parents in relationships with subordinates Demand compliance and conformance Control activities, resources, use of time, and information Make most decisions, including those that belong in lower levels of the organization Provide physical and emotional safety Face challenges (quite often by themselves) Solve problems and provide solutions (quite often by themselves) Answer questions Continuously assert their authority and control Centralize control at the top Hold people accountable for their responsibilities React unfavorably and oftentimes aggressively to o Disappointment o Disagreement Parent-Child Cultures o Resistance o Opposition o Dissention o Push-back o Challenges to status-quo o Non-compliance o Non-conformance Core Workers Act like “dependents” in relationships with superiors Look to be taken care of (their safety, job security, employment viability, etc.) by those in authority Place responsibility for their individual success and the success of the enterprise on leaders Avoid self-expression and choose the comfort of stability over ownership Put their future in the hands of leaders React to disappointment in leaders with o Blame o Victim/villain thinking o Apathy o Malcontent o Fear o Resignation o Helplessness React to pressures with o Confusion o Denial o And/or by hiding or distorting information and “bad news”Copyright © Banks International LLC 2006-2011. All rights reserved. Controlled Document No. 2011.3.26

Dominant Cultural Styles Leaders: Recognize and accept that people have and make choices Freely share information about the state of the business Impart business literacy to everyone Encourage and consider all perspectives and points of view Engage everyone in the running of the business Enable innovation and unique solutions Encourage and enable self-accountability Promote empowerment and self-reliance React unfavorably to people’s o Lack of individual accountability o Externalization of individual accountability o Deference to authority o Dependency on external decision-making o Lack of ownership (of the whole) Adult-Adult Cultures Core Workers Have the right and responsibility to embrace the risk in the marketplace and take responsibility for the whole Master their own business literacy Deal with their own emotional welfare Manage and do the work of the organization Have a point of view about the business Contribute to the success of others Make choices that benefit the whole enterprise Feel safe responding assertively to o Excessive or unneeded control o Demeaning or disrespectful treatment o Rejection or negation of feedback o Lack of consultation on decisions that affect themIn order to offer a model that would deliver the strategic intent of developing a 21st Century New Organization, thefollowing dual strategy is proposed:1. Change the culture to the New Contract (change the Social Culture and, in part, the Functional Culture)2. Change the organization to a Team Based Organization (change the Functional Culture and, in part, the Social Culture)The 2 models that follow on the next pages illustrate the overall strategy for changing the culture Copyright © Banks International LLC 2006-2011. All rights reserved. Controlled Document No. 2011.3.26

To transform the social culture, the following model is proposed: Strategic Intent: DEVELOP A 21ST CENTURY NEW ORGANIZATION CHANGE THE CULTURE TO THE NEW CONTRACT AND EVOLVE THE Strategy: ORGANIZATION TO A TEAM BASED ORGANIZATION Strategic Model for The New Contract: Core Workers Leadership Mature Let Go Participate CULTURE Involve Others Take Ownership Inspire & Lead © BANKSinternational, LLC 2004 Strategic Approach: Change Culture from “Parent-Child” Change leadership style type Interactions to “Adult-Adult” type inter- from paternal to Transformatio- actions nal Advance leadership style from all tactical to include a strategic orientation Tactical Elements: While many specific tactical elements are unknown until a full culture assessment is conducted, based on direct experience, the following interventions have been core or fundamental to changing a culture to the New Contract. Conversations Workshop™ 21st Century Leadership™ Teamworking Conversations Workshop™ Challenge-based Problem Performance Problem Solving™ Solving Sessions (BAC CPS) Exercise: Vision Web™ Handling Conflict Exercise: Competitor Over the Horizon™ Profile: Strategic Orientation Strategic Problem Solving Sessions Executive Coaching © BANKSinternational, LLC 2004 Copyright © Banks International LLC 2006-2011. All rights reserved. Controlled Document No. 2011.3.26

To transform the functional culture, the following model is proposed: Strategic Intent: DEVELOP A 21ST CENTURY NEW ORGANIZATION CHANGE THE CULTURE TO THE NEW CONTRACT AND EVOLVE THE Strategy: ORGANIZATION TO A TEAM BASED ORGANIZATION (TBO) Strategic Model for Developing a TBO: Team Development Strategic Architectures™ Approach SELF DIRECTED TEAM EMPOWERED TEAM Self Directed Team Empowered Team FUNCTIONAL TEAM Functional Team DIRECTED TEAM Directed Team © BANKSinternational, LLC 2002 Evolve work groups through the 4 stages of Team Strategic Approach: development towards Self-Directed Tactical Elements: Many of the tactical elements are unknown until a full culture audit is conducted. Ultimately the tactical elements will depend on: the knowledge and skills work groups already have, the leadership styles, as well as the skills/knowledge of leaders to lead groups, and the organizational models and hierarchical structure in use. To put into play the eventual tactical elements, the generic TDA™ architecture would be customized to the specific customer. © BANKSinternational, LLC 2004 Copyright © Banks International LLC 2006-2011. All rights reserved. Controlled Document No. 2011.3.26

Many efforts to evolve to 21st Century Organizations have fallen short of doing so and/or fallen short of deliveringexpectations typically identifiable with The New Organization. Research suggests that in nearly all instances, the rootcause of the failed efforts was that the culture never evolved out of the Traditional Culture/Old Contract. In theseorganizations where the efforts failed, work groups were formed, people were trained, much empowerment wasdelegated, many responsibilities were transferred, boundaries were reestablished, decisions were moved to lowerlevels, and much more was done. The problem was that leaders continued to act like “parents” and core workerscontinued to act like “dependents.” Although core workers took ownership of their work, they never took ownership ofthe whole and never brought forth many of the improvements or ideas they had to contribute to the success of others.And although the hierarchical structure and control systems in organizations today have brought much success tomany organizations during the last 160 years, it will not position companies advantageously to be able to effectivelycompete in today’s commercial environment and in the global market of the 21st Century. Only in Adult-Adult culturesdo you find true ownership of the whole, widely shared mutuality of purpose, high levels of individual business literacy,and a steadfast (or even fierce) commitment to the cause of the organization.Organizations will always have a much needed hierarchy of control, just like societies cannot exist without some sortof leadership. We’re not talking here about democratic enterprises. There’s plenty of evidence that they don’t workwell and eventually fail as a business. We’re talking here about businesses where everyone shares in the risks of themarket, as well as the rewards. We’re talking about environments where everyone is interdependent, but not relianton others for their personal satisfaction of participating in the enterprise. We’re talking about an environment whereeveryone sees and interacts with everyone else in an adult way – telling the unconditional truth, extending good willto others, trusting the intentions of colleagues and coworkers to be noble, knowing everyone else has your back, asyou have theirs, recognizing the shared mutuality that will propel everyone to give their very best to pursue the goalsof the organization, and treating everyone as a responsible, mature, and conscientious adult. All you have to do islook at truly exceptional organizations, like Pixar Animation Studios, or Southwest Airlines, or Google, or DreamWorksAnimation SKG, or Cisco, or Whole Foods Markets, or Microsoft, or Marriott Hotels, and others. These companies notonly made Fortune’s top 100 companies to work for, as judged by their employees, they actually grew and thrivedduring these last several years of this economic challenge.This document presents the basics of what needs to be done to arrive at a 21st Century New Organization. Wespecialize in leading you through this process.Banks International, LLC also offers consultation services to customize and implement the strategy presented, aswell as how to use, strategically and tactically, the models presented. Services would include all activities required fora successful transfer to the customer of all concepts and models. Services would also include licensing the customerto use these concepts and models without additional compensation to Banks International.Banks International has been a preferred vendor in culture change and 21st century leadership development over thelast 30 years in North, Central, and South America, as well as in Western Europe and the Caribbean. Customershave included Ford, Visteon, GM, Delphi, TRW, Molex, Motorola, Emerson, Volkswagen, NCR, Pella Windows,Budget, Parke-Davis, Pfizer, and many more.Copyright © Banks International LLC 2006-2011. All rights reserved. Controlled Document No. 2011.3.26

21C Organization Presentation

by Banks International, LLC on Nov 22, 2011

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21C Organization Presentation — Document Transcript