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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

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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

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