Constructing High Performing Organisations - Building Blocks, Structures, And Culture
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Constructing High Performing Organisations - Building Blocks, Structures, And Culture

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Marcus Evans Workplace and Organization Psychology Conference, KL...

Marcus Evans Workplace and Organization Psychology Conference, KL

* Analysing organisational structures and climates in order to maximise the satisfaction and effectiveness of individuals and work groups
* Developing organisational development assessment and improvement tools and techniques via the ‘People based approach,’ ‘Quality based approach,’ ‘Systems based approach’ and ‘Dialogues based approach.’
* Cultivating loyalty by aligning employees’ career growth with company goals

More in: Business , Technology
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  • 1. CONSTRUCTING HIGH-PERFORMING ORGANISATIONS: Building Blocks, Structures, And Culture Case Study, Concepts and Debatable Ideas Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com
  • 2. Workforce Psychology
    • “ Cow don’t drink water cannot push cow head down”
  • 3. Workforce Psychology Behavior Influence Decision Making Direct Communication In-Direct Environment
  • 4. Summary: Today’s presentation 1. Business Model 2. Building Blocks www.myCNI.com.my www.OOBEY.com
  • 5. 1. Get the right Business Model first www.myCNI.com.my www.OOBEY.com
  • 6.
    • How to fail without trying
    1. Wrong Business Model www.myCNI.com.my www.OOBEY.com
  • 7. The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
  • 8. Denial and Defense
    • “ It’s not really good value our competitor is offering, because it doesn’t include a lot of our features.” - ABC vs Air Asia
    • “ It’s good value but not in our preferred customer market.” - ABC vs Toyota
    • “ Sure they’re hurting us, but with their unfair advantage, what can we do?” – ABC vs MILO
    • “ The rules we are playing by have always worked before” – AMEX vs VISA
    www.myCNI.com.my www.OOBEY.com
  • 9. The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
  • 10. Ad Hoc Tactics
    • Selectively hold discounts to hold business that has started to go elsewhere
    • Introduce new promotions, terms, conditions, and offers to confuse and cloud the market
    • Beef up customer service by adding people to fix mess-ups and quicken delayed shipments
    • Delay capital investments and adjust accounting methods to portray quarterly financial results more favorably
    • Introduce “new and improved” products that are new in form, but not in substantive ways that are of consequence to purchasers
    • Introduce Balanced Scorecards and Performance Management Systems
    www.myCNI.com.my www.OOBEY.com
  • 11. The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
  • 12.
    • “ What is the moral of the story?”
    www.myCNI.com.my www.OOBEY.com
  • 13. What is the Business Model? USP Market Discipline Profit Model www.myCNI.com.my www.OOBEY.com
  • 14. Intro: Market Discipline
    • Mamak stall
    www.myCNI.com.my www.OOBEY.com
  • 15. Intro: Market Discipline
    • "Exactly what I need"
    • Customized products
    • Personalized communications
    • "They're very responsive"
    • Preferential service and flexibility
    • Recommends what I need
    • "I'm very loyal to them"
    • Helps us to be a success
    "They are the most innovative" "Constantly renewing and creative" "Always on the leading edge" "A great deal!" Excellent/attractive price Minimal acquisition cost and hassle Lowest overall cost of ownership "A no-hassles firm" Convenience and speed Reliable product and service Product Leadership Operational Excellence Customer Intimacy www.myCNI.com.my www.OOBEY.com
  • 16. Strategy: Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
  • 17. Intro: Market Discipline * Treacy & Wiersema, The Discipline of Market Leaders , 1995 Product/Service Attributes Relationship Image www.myCNI.com.my www.OOBEY.com
  • 18. Intro: Market Discipline * Treacy & Wiersema, The Discipline of Market Leaders , 1995 Product/Service Attributes Price Quality Time Selection √ √ Smart Shopper Relationship Image Operational Excellence : Quality and selection in key categories with unbeatable prices www.myCNI.com.my www.OOBEY.com
  • 19. Intro: Market Discipline * Treacy & Wiersema, The Discipline of Market Leaders , 1995 Product/Service Attributes √ Brand Time Function √ √ Best Product Relationship Image Product Leadership: Unique products and services that push the standards www.myCNI.com.my www.OOBEY.com
  • 20. Intro: Market Discipline * Treacy & Wiersema, The Discipline of Market Leaders , 1995 Product/Service Attributes √ √ √ √ Service Trusted Brand Relationship Image Customer Intimacy: Personal service tailored to produce results for customer and build long-term relationships Relations www.myCNI.com.my www.OOBEY.com
  • 21. Summary: Today’s presentation 1. Business Model 2. Building Blocks  Done www.myCNI.com.my www.OOBEY.com
  • 22. 2. Strategies, Structures, Culture www.myCNI.com.my www.OOBEY.com
  • 23. Dangers of Best Practice and Benchmarking… “ Abraham Wald’s Work on Aircraft Survivability”, M. Mangel and F.J. Samaniego Where would you focus reinforcement? www.myCNI.com.my www.OOBEY.com
  • 24. Dangers of Best Practice and Benchmarking… www.myCNI.com.my www.OOBEY.com Company Performance high low ‘ Best Practice’ theories low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line
  • 25. Dangers of Best Practice and Benchmarking… www.myCNI.com.my www.OOBEY.com Company Performance high low ‘ Best Practice’ theories low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line
  • 26. How about Competencies? www.myCNI.com.my www.OOBEY.com Success high low ‘ Superior’ Competencies low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line
  • 27. Dangers of ‘Superior’ Competencies… www.myCNI.com.my www.OOBEY.com Success high low ‘ Superior’ Competencies low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line
  • 28. Dangers of Best Practice and Benchmarking…
    • Selection Bias:
    • Success Traits = Failure Traits
    • Successful Cases + Failure Cases
    • Worst effects in ‘Old’ industries
    • Overvalue ‘best practice’ theories
    • Current accomplishments unfairly magnified by past achievements
    • Reverse Causal
    www.myCNI.com.my www.OOBEY.com
  • 29. Dangers of Best Practice and Benchmarking…
    • Also known as ‘Beware of Consultants’:
    • Selection Bias
    • Big vs. Small company
    • Selective success stories
    • Correlation vs. Causal
    • Survey problems
    • Practical vs. Glamour-to-have
    • Leaders who benchmark
    www.myCNI.com.my www.OOBEY.com
  • 30. Focus: Corporate Alignment Financial “ To satisfy our stakeholders, what Financial objectives must we accomplish?” www.myCNI.com.my www.OOBEY.com Internal Process “ To satisfy our customers, in which internal business processes must we excel?" Customer “ Who are our target customers? What is our value proposition?” Learning & Growth “ What capabilities and tools do our employees require to help them execute our strategy?
  • 31. Linking BSC to Strategy Revenue Growth Base Retention Share Gain Positioning Adjacent Market New Business Operational Excellence Product Leadership Customer Intimacy Competencies Information Systems Motivation, empowerment, alignment Financial Learning & Growth Internal Process Customers Investment Strategy Productivity Market Value www.myCNI.com.my www.OOBEY.com
  • 32. Focus: Corporate Alignment Financial Learning & Growth Internal Process Customers / Distributors www.myCNI.com.my www.OOBEY.com Revenue Growth Productivity Market Value Department Operations Supplier & Alliances External Involvement Target Markets Products/ Services Channel Strategies Human Resources Technology Information & Intelligence Systems & Processes
  • 33. Alignment: 4-Wheels Model Culture Business Model Strategic Planning www.myCNI.com.my www.OOBEY.com Structure Person Leadership Resources
  • 34. Alignment: Framework
    • Focus point
    • Alignment
    • Quality
    • Innovation & Differentiation
    • Risk taking
    • Performance Management
    • Corporate obsession
    • Decision making
    Culture www.myCNI.com.my www.OOBEY.com
  • 35. Alignment: Framework
    • Org Structure
    • Job Design
    • C&B
    • Policies & procedures
    • Decision making
    • Job fit
    • Management Systems
    • BSC and KPIs
    • Decentralized & Empower
    www.myCNI.com.my www.OOBEY.com Structure
  • 36. Strategy: Framework
    • Role modeling
    • Vision/Mission/Philosophy
    • Leadership Style
    • Delegation & Empowerment
    • C&B, Promotions
    • Sense of Urgency
    • Speak regularly about Performance
    www.myCNI.com.my www.OOBEY.com Leadership
  • 37. Strategy: Framework
    • Recognition
    • Recruitment
    • Training
    • Profit sharing
    • Values
    • Motivation
    • Self Efficacy
    • Awareness
    • Useful Competencies
    • Career aspirations
    • Attribution (control)
    www.myCNI.com.my www.OOBEY.com Person
  • 38. Strategy: Framework
    • Enablers
    • Technology
    • Equipment
    • Materials
    • Human
    • Intellectual Property
    • Partners
    • Property
    • Funding
    • CAPEX
    • OPEX
    www.myCNI.com.my www.OOBEY.com Resources
  • 39. Alignment: 4-Wheels Model Culture Business Model Strategic Planning www.myCNI.com.my www.OOBEY.com Structure Person Leadership Resources
  • 40. The New Rules of Market Competition
    • Rule 1
      • Provide the best offering in the marketplace by excelling in ONE specific dimension of value
    www.myCNI.com.my www.OOBEY.com
  • 41. Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
  • 42. Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
  • 43. The New Rules of Market Competition
    • Rule 2
      • Maintain ‘market standards’ on the other two disciplines of value
    www.myCNI.com.my www.OOBEY.com
  • 44. The New Rules of Market Competition
    • Rule 3
      • Dominate your market by improving value year after year
    www.myCNI.com.my www.OOBEY.com
  • 45. The New Rules of Market Competition
    • Rule 4
      • Build a well-tuned operating model dedicated to delivering unmatched value
    www.myCNI.com.my www.OOBEY.com
  • 46. Each Value Discipline Requires Different Emphasis
    • Product Leadership
    • R&D, Legal (Licenses), Engineering
    • Product development, Concept-to- Customer
    • Linkages, insight, comm, groupware
    • Ideas-thru- funnel, patents, etc.
    • Tomorrow, Product Portfolio, Ideas and Risks
    • Operational Excellence
    • Production,
    • Logistics, Finance
    • Order fulfillment, Resource stewardship
    • Transactions, costs, time
    • Costs, quality, speed
    • Trends (past), Transactions Employee tools/tasks
    • Customer Intimacy
    • Marketing Sales,
    • Service
    • Market
    • mgmt, Customer satisfaction
    • Customers, analysis, linkages
    • Satisfaction, cust. success, share, anecdotes
    • Today, Relation-ships, Employee empowerment
    Functional emphasis Process Emphasis Information emphasis Key metrics Key concerns www.myCNI.com.my www.OOBEY.com
  • 47.
    • Product Leadership
    Each Discipline Requires Different Priorities & Resources Operational Excellence Customer Intimacy Organization, jobs, skills Management systems Information and systems Culture, values, norms www.myCNI.com.my www.OOBEY.com
  • 48. Each Discipline Requires Different Priorities & Resources
    • Operational Excellence
    • Central authority, low level of empowerment
    • High skills at the core of the organization
    • Disciplined Teamwork
    • Process, product- driven
    • Conformance, 'one size fits all' mindset
    • Integrated, low cost transaction systems
    • The system is the process
    • Command and control
    • Quality management
    Organization, jobs, skills Management systems Information and systems Culture, values, norms www.myCNI.com.my www.OOBEY.com
  • 49.
    • Product Leadership
    • Ad hoc, organic and cellular
    • High skills abound in loose-knit structures
    • Concept, future-driven
    • Experimentation and 'out of the box' mindset
    • Person-to-person communications systems
    • Technologies enabling cooperation
    • Rewarding individuals' innovative capacity
    • Risk and exposure management
    • Product Life Cycle profitability
    Each Discipline Requires Different Priorities & Resources Organization, jobs, skills Management systems Information and systems Culture, values, norms www.myCNI.com.my www.OOBEY.com
  • 50. Each Discipline Requires Different Priorities & Resources Organization, jobs, skills Management systems Information and systems Culture, values, norms
    • Customer Intimacy
    • Empowerment close to point of customer contact
    • High skills in the field and front-line
    • Customer-driven
    • Variation and 'have it your way' mindset
    • Strong customer databases, linking internal and external information
    • Strong analytical tools
    • Customer equity measures like life time value
    • Satisfaction and share management
    • Focus on ‘Share of Wallet’
    www.myCNI.com.my www.OOBEY.com
  • 51. Core Processes for Each Discipline
    • Operational Excellence
    • Product Delivery and basic service cycle
    • Built on standard, no frills fixed assets
    • Customer Intimacy
    • Client acquisition and development
    • Solution Development
    • Flexible and responsive work procedures
    • Product Leadership
    • Invention, commercialization
    • Market exploitation
    • Disjoint work procedures
    www.myCNI.com.my www.OOBEY.com
  • 52. Sample KPIs for Each Discipline
    • Operational Excellence
    • Price
    • Selection
    • Convenience
    • Zero Defects
    • Growth
    • Customer Intimacy
    • Customer Knowledge
    • Solutions Offered
    • Penetration
    • Customer Data
    • Customer-success focus
    • Product Leadership
    • Marketing
    • Functionality
    • # of Successes
    • # of Failures
    • Learn from key users
    • Interdisciplinary teams
    • Pipeline
    www.myCNI.com.my www.OOBEY.com
  • 53.
    • Operational Excellence
        • Move know-how from top performing units to others
        • Benchmark against best in class
        • Ensure operations training for all employees
        • Use disciplines like TQM for continuous learning to reduce costs and improve quality
    Strategy: Value Disciplines www.myCNI.com.my www.OOBEY.com
  • 54. Strategy: Value Disciplines
    • Customer Intimacy
        • Capture knowledge about customers
        • Understand customer needs
        • Empower front line employees
        • Ensure that everyone knows the customer
        • Make company knowledge available to customers
    www.myCNI.com.my www.OOBEY.com
  • 55.
    • Product Leadership
        • Reduce time to market
        • Commercialize new products fast
        • Ensure that ideas flow
        • Reuse what other parts of the company have already learned
        • Ensure there are multiple sources of funding
    Strategy: Value Disciplines www.myCNI.com.my www.OOBEY.com
  • 56. The Final Lever: PAY
    • Pay for Service
    • Pay for Job
    • Pay for Performance
    • Pay for Competency
    www.myCNI.com.my www.OOBEY.com
  • 57. What’s the Difference?
    • Increment
    • Bonus
    • Promotion
    www.myCNI.com.my www.OOBEY.com
  • 58. Employee Distinction Group I (Talent Pool) Group II (  Potential) Group III (  Performance) Group IV (Counseling) 2 3 4 5 2 3 4 5 PERFORMANCE POTENTIAL
    • Identify
    www.myCNI.com.my www.OOBEY.com
  • 59. Curse of the Bell Curve ‘ A’ Staff ‘ B’ Staff ‘ D’ Staff ‘ E’ Staff ‘ C’ Staff www.myCNI.com.my www.OOBEY.com
  • 60. Reminder…
    • Great Wall of China
      • humans are the weakest link
      • bad treatment of staff will lead to weak link i.e. easier to bribe, easier to con, etc;
      • bad treatment examples: insulting, lose face, broken promises, no dignity, public criticism, restructure without communication
    www.myCNI.com.my www.OOBEY.com
  • 61. Other thoughts…
    • Big matters/Small Matters
    • Differentiate of Die
    • Define “Talent”
    • No “Jerk” rule
    • Flat Structure?
    • The Jerk Boss
    • All aspects
    • Hire Strict
    www.myCNI.com.my www.OOBEY.com
  • 62. Thank You. soft copy of slides: www.totallyunrelatedrandomanddebatable.blogspot.com