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Future of Public Sector /  Mikko Kosonen
 

Future of Public Sector / Mikko Kosonen

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Kansallisen ennakointiverkoston kutsuvierasseminaari julkisen sektorin tulevaisuuden haasteista.

Kansallisen ennakointiverkoston kutsuvierasseminaari julkisen sektorin tulevaisuuden haasteista.

Videomateriaali tilaisuudesta: http://www.youtube.com/watch?v=IS-uyOLl-dM

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    Future of Public Sector /  Mikko Kosonen Future of Public Sector / Mikko Kosonen Presentation Transcript

    • Strategic Agility-a new competitive requirement for Public Sector? November 27, 2008 Mikko Kosonen President Sitra, Finnish Innovation Fund
    • Key Dimensions of Strategic Agility Strategic Sensitivity: Seeing and framing opportunities and threats in a fresh way – as they emerge Resource Fluidity: Fast and efficient resource mobilization, redeploymentLeadership Unity:Collective decision makingand commitment
    • Why Strategic Agility Now? Why so hard ? Fast Entrepreneurship Strategic AgilitySpeedof Change Focus on Strategic Operational Planning Excellence Slow Simple/ Nature Complex/ Linear of Change Systemic
    • The Curse of Success Strategic Agility easily Turns into Strategic Paralysis Over Time … Strategic Sensitivity • Tunnel Vision • Tyranny of the core activity • Strategic Myopia • Dominance mindset • Snap judgment and intellectual laziness • Management divergence Resource Fluidity • Heady charm of fame and power • ‘Expert’ management • Emotional apathy • Imprisoned resources • Business system rigidity • Ties that bind • Management mediocrity and competence trapsLeadershipUnity
    • Single-minded attention to high efficiency leads to… Driver Consequence Toxic side-effect•Strong units •Core managers •Resource imprisonment with sufficient autonomy ‘sitting on their resources’ as they grow•Highly efficient •Increasingly differentiated •Activity system systems and processes and specialized (‘fit for purpose’) rigidification activity systems•Deep collaborative •Customer & partner ‘lock •Ties that Bind relationships with key in’ and decreasing strategic partners freedom•Learning by doing and •Forgiven and hidden •Management mediocrity building on experience misbehavior and and competence shortcomings gaps
    • Single-minded attention to quick decisions leads to… Driver Consequence Toxic side-effect•Clear charters for all •Declining intensity of •Management organizational units dialogue and decreasing divergence need for collective commitments•Strong leaders with •Inflated egos, overly bold •Heady charm of fame and proven track-record commitments, implicit power pecking order•Preference for fast •Decisions elevating to the •Expert decision making top team; decisions made management by the ‘same’ leaders•Successful leaders •Tired hero syndrome; •Emotional apathy future opportunities looking less thrilling than past experiences
    • Single-minded attention to ‘clear’ direction and focus leads to… Driver Consequence Toxic side-effect•Clear vision for the future of our •Considering everything outside •Tunnel visioncore mission the core as non-relevant•Sustained effort at maximally •Framing everything in the light of •Tyranny of the coreleveraging our core mission the core mission activity•Tight focus on continuous •Short term internal orientation •Strategic myopiaimprovement•Leadership position in •Reluctance to open •Dominance mindset everything we do collaboration and experimentation•High action orientation •Action hero syndrome, •Snap judgment and and self-confidence no time and interest for intellectual laziness alternatives
    • Strategic Agility imperativeMost organizations die not because they do the wrong things,but because they keep doing what used to be the right thingsfor too long…
    • When is Strategic Agility most needed? Strategic AgilityGrowth Strategic Rigidity Operational Excellence Entrepreneurial Insight and Flexibility Time 04-04-06
    • Key Capabilities enabling Strategic Agility Strategic Sensitivity • Open Strategy Process • Heightened Strategic Alertness • High Quality Internal Dialogue • Cabinet responsibility • Top team collaboration • Leadership style and Resource Fluidity capabilities of the CEO • Fluid re-allocation and utilization of capital resources • Mobility of people and knowledge • Modular structuresLeadershipUnity
    • Drivers of Strategic Sensitivity Co-strategizing with multiple stakeholders Open Strategy process Experimentation Stretched and Contradictory goals Heightened STRATEGIC Strategic Alertness SENSITIVITYOpen business definition Factual and conceptual richness High Quality Cognitive diversity Internal Dialogue
    • Drivers of Leadership Unity Shared agenda & incentives Cabinet responsibility Mutual dependencyEmbracing conflict +dialogue LEADERSHIP Top team collaboration UNITY Institutionalized top team renewalCEO First among peers Leadership style and Capability to play capabilities of the CEO multiple roles
    • Embracing Conflict and Dialogue Conflict Consensus + + Dialogue Debate From genuine visible From soft personal dissent personal disagreement to… to……Collective agreement …Public agreement, private dissent Energized action Passive sabotage
    • Drivers of Leadership Unity Shared agenda & incentives Cabinet responsibility Mutual dependencyEmbracing conflict +dialogue LEADERSHIP Top team collaboration UNITY Institutionalized top team renewalCEO First among peers Leadership style and Capability to play capabilities of the CEO multiple roles
    • Drivers of Resource Fluidity Dissociating resultsfrom resource ownership Fluid Re-allocation and Utilization of Capital Resources Assumption based planning/resource allocation process Institutionalized job rotation Mobility of People and RESOURCE Knowledge Sharing FLUIDITYValues and management system emphasizing knowledge sharing‘Plug and Play’ modular Modular structures structures
    • Dissociating business results from resource ownership – case Nokia Business Groups Mobile Multimedia Enterprise Networks Customer and Phones Solutions Market OperationsHorizontal Groups Technology Platforms Brand and design Developer support Research and venturing Business infrastructure Corporate Functions
    • Drivers of Resource Fluidity Dissociating resultsfrom resource ownership Fluid Re-allocation and Utilization of Capital Resources Assumption based planning/resource allocation process Institutionalized job rotation Mobility of People and RESOURCE Knowledge Sharing FLUIDITYValues and management system emphasizing knowledge sharing‘Plug and Play’ modular Modular structures structures
    • ‘Plug and Play’ modular structures -in Nokia Rapidly changing Market opportunities markets FIT Business system 1 Reconfigurable Business system 2business systems Business system 3 Combining FIT Economies of Process A Process B scale and Process C Modular Flexibility business Processes infrastructure Apps & Data IT Platforms
    • Key Capabilities enabling Strategic Agility Strategic Sensitivity • Open Strategy Process • Heightened Strategic Alertness • High Quality Internal Dialogue • Cabinet responsibility • Top team collaboration • Leadership style and Resource Fluidity capabilities of the CEO • Fluid re-allocation and utilization of capital resources • Mobility of people and knowledge • Modular structuresLeadershipUnity
    • Where is Finland and its Public Sector on this curve? Strategic AgilityGrowth Strategic Rigidity Operational Excellence Entrepreneurial Insight and Flexibility Time 04-04-06
    • How Strategically Agile – or Paralyzed - are You? Not Relevant Highly TOXIC SIDE-EFFECTS OF FAST GROWTH AND HIGH PERFORMANCE STRATEGIC ACUITY Source Consequence 1 2 3 4 5 6 7 DISTROYERS OF • Strategic myopia - Caused by tight focus on core - Considering everything outside the business trajectory core as non-relevant - Caused by tight focus on - Internal short term orientation • Tunnel vision incremental improvements and consistency - Framing everything in the light of - Caused by performance pressures core business; committing • Tyranny of core and familiarity to core business business resources through core businesses - Caused by over-reliance on own - Reluctance to open collaboration • Dominance mindset experience & implicit assumptions and experimentation RESOURCE FLUIDITY DISTROYERS OF • Imprisoned resources - Caused by continuous resource - Core business managers wanting constraints and growing doubts to own their resources, lack of about corporate-level resource transparency allocation - Caused by increasingly tight fit - Highly differentiated & specialized • Business system rigidity between activities activity systems - Caused by product compatibility - Decreased strategic freedom • Ties that bind needs and customer partner commitments - Forgiven & hidden shortcomings, • Management mediocrity - Caused by hasty recruitment and partly wrong competence profile and competence gaps insufficient people development LEADERSHIP UNITY • Management divergence - Caused by naturally increasing - Declining intensity of dialogue, DISTROYERS OF subunit advocacy and decreasing stalemates, and polictics need for collective decisions • Heady charm of fame - “Action Hero Syndrom”, implicit and power - Caused by the inflated egos and pecking order, risk aversion or • Expert management hubris of the key leaders overly bold commitments - Caused by action orientation and - Decisions elevating to the top team perceived time pressure where they are done quickly based • Emotional apathy on individual expertise - Caused by future opportunities © Yves Doz and Mikko Kosonen, 2006 looking less thrilling than past - “Tired Hero Syndrom”
    • More National level Strategic Agility needed! Strategic sensitivity Seeing and framing opportunities in a fresh way – as they emergeCollective decision making and Well-coordinated foresight activitycommitment Systematic cross-sectoral strategy process to Mutual dependency via shared feed in ”Government Program”targets & agenda (based on”government program”) Enhancing cross-sectoral dialogue via Resource Fluidityrotation & executive education Fast and efficient resource allocation & redeployment Dissociate results from resource ownership Leadership Unity cross-sectoral programs as the main vehicle for change Modular process and IT-systems based on open architectures 22
    • Strategic Agility requires increasing integration -without loosing speed and differentiation! Value from Value from Autonomy IntegrationPerformance Danger Zone Single business Portfolio of company Businesses
    • Cornerstones of Finland’s Innovation Strategy WORLD WITHOUT BORDERS INNOVATIVE HUMAN/ INDIVIDUALS INNOVATION END USERAND COMMUNITIES PROCESS CENTRIC SYSTEMIC APPROACH 24
    • Thank You!