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CONSTRUCTING HIGH-PERFORMING ORGANISATIONS:  Building Blocks, Structures, And Culture   Case Study, Concepts and Debatable...
Workforce Psychology <ul><li>“ Cow don’t drink water cannot push cow head down” </li></ul>
Workforce Psychology Behavior Influence Decision Making Direct Communication In-Direct Environment
Summary: Today’s presentation 1. Business Model 2. Building Blocks www.myCNI.com.my www.OOBEY.com
1. Get the right Business Model first www.myCNI.com.my www.OOBEY.com
<ul><li>How to fail without trying </li></ul>1. Wrong Business Model www.myCNI.com.my www.OOBEY.com
The Roadmap to Failure   Fred Wiersema and   Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com   Clear Sailing T...
Denial and Defense <ul><li>“ It’s not really good value our competitor is offering, because it doesn’t include a lot of ou...
The Roadmap to Failure   Fred Wiersema and   Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com   Clear Sailing T...
Ad Hoc Tactics <ul><li>Selectively hold discounts to hold business that has started to go elsewhere </li></ul><ul><li>Intr...
The Roadmap to Failure   Fred Wiersema and   Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com   Clear Sailing T...
<ul><li>“ What is the moral of the story?” </li></ul>www.myCNI.com.my www.OOBEY.com
What is the Business Model? USP Market  Discipline Profit Model www.myCNI.com.my www.OOBEY.com
Intro: Market Discipline <ul><li>Mamak stall </li></ul>www.myCNI.com.my www.OOBEY.com
Intro: Market Discipline <ul><li>&quot;Exactly what I need&quot; </li></ul><ul><li>Customized products </li></ul><ul><li>P...
Strategy: Disciplines Operational Excellence (low cost producer) Ref:  The Discipline of Market Leaders , Michael Treacy &...
Intro: Market Discipline * Treacy & Wiersema,  The Discipline of Market Leaders , 1995 Product/Service Attributes Relation...
Intro: Market Discipline * Treacy & Wiersema,  The Discipline of Market Leaders , 1995 Product/Service Attributes Price Qu...
Intro: Market Discipline * Treacy & Wiersema,  The Discipline of Market Leaders , 1995 Product/Service Attributes √ Brand ...
Intro: Market Discipline * Treacy & Wiersema,  The Discipline of Market Leaders , 1995 Product/Service Attributes √ √ √ √ ...
Summary: Today’s presentation 1. Business Model 2. Building Blocks    Done www.myCNI.com.my www.OOBEY.com
2. Strategies, Structures, Culture www.myCNI.com.my www.OOBEY.com
Dangers of Best Practice and Benchmarking… “ Abraham Wald’s Work on Aircraft Survivability”, M. Mangel and F.J. Samaniego ...
Dangers of Best Practice and Benchmarking… www.myCNI.com.my www.OOBEY.com   Company Performance high low ‘ Best Practice’ ...
Dangers of Best Practice and Benchmarking… www.myCNI.com.my www.OOBEY.com   Company Performance high low ‘ Best Practice’ ...
How about Competencies? www.myCNI.com.my www.OOBEY.com   Success high low ‘ Superior’ Competencies low high zero Performan...
Dangers of ‘Superior’ Competencies… www.myCNI.com.my www.OOBEY.com   Success high low ‘ Superior’ Competencies low high ze...
Dangers of Best Practice and Benchmarking… <ul><li>Selection Bias: </li></ul><ul><li>Success Traits = Failure Traits </li>...
Dangers of Best Practice and Benchmarking… <ul><li>Also known as ‘Beware of Consultants’: </li></ul><ul><li>Selection Bias...
Focus: Corporate Alignment Financial “ To satisfy our stakeholders, what Financial objectives must we accomplish?” www.myC...
Linking BSC to Strategy Revenue Growth Base Retention Share Gain Positioning Adjacent Market New Business Operational Exce...
Focus: Corporate Alignment Financial Learning & Growth Internal Process Customers / Distributors www.myCNI.com.my www.OOBE...
Alignment: 4-Wheels Model Culture Business  Model Strategic Planning www.myCNI.com.my www.OOBEY.com   Structure Person Lea...
Alignment: Framework <ul><li>Focus point </li></ul><ul><li>Alignment </li></ul><ul><li>Quality </li></ul><ul><li>Innovatio...
Alignment: Framework <ul><li>Org Structure </li></ul><ul><li>Job Design </li></ul><ul><li>C&B </li></ul><ul><li>Policies &...
Strategy: Framework <ul><li>Role modeling </li></ul><ul><li>Vision/Mission/Philosophy </li></ul><ul><li>Leadership Style <...
Strategy: Framework <ul><li>Recognition </li></ul><ul><li>Recruitment </li></ul><ul><li>Training </li></ul><ul><li>Profit ...
Strategy: Framework <ul><li>Enablers </li></ul><ul><li>Technology </li></ul><ul><li>Equipment </li></ul><ul><li>Materials ...
Alignment: 4-Wheels Model Culture Business  Model Strategic Planning www.myCNI.com.my www.OOBEY.com   Structure Person Lea...
The New Rules of Market Competition <ul><li>Rule 1 </li></ul><ul><ul><li>Provide the best offering in the marketplace by e...
Market Disciplines Operational Excellence (low cost producer) Ref:  The Discipline of Market Leaders , Michael Treacy & Fr...
Market Disciplines Operational Excellence (low cost producer) Ref:  The Discipline of Market Leaders , Michael Treacy & Fr...
The New Rules of Market Competition <ul><li>Rule 2 </li></ul><ul><ul><li>Maintain  ‘market standards’  on the other two di...
The New Rules of Market Competition <ul><li>Rule 3 </li></ul><ul><ul><li>Dominate your market by  improving  value year af...
The New Rules of Market Competition <ul><li>Rule 4 </li></ul><ul><ul><li>Build a well-tuned  operating model  dedicated to...
Each Value Discipline Requires  Different Emphasis <ul><li>Product Leadership </li></ul><ul><li>R&D, Legal (Licenses), Eng...
<ul><li>Product Leadership </li></ul>Each Discipline Requires Different Priorities & Resources Operational Excellence Cust...
Each Discipline Requires Different Priorities & Resources <ul><li>Operational Excellence </li></ul><ul><li>Central authori...
<ul><li>Product Leadership </li></ul><ul><li>Ad hoc, organic and cellular </li></ul><ul><li>High skills abound in loose-kn...
Each Discipline Requires Different Priorities & Resources Organization, jobs, skills Management  systems Information and  ...
Core Processes for Each Discipline <ul><li>Operational Excellence </li></ul><ul><li>Product Delivery and basic service cyc...
Sample KPIs for Each Discipline <ul><li>Operational Excellence </li></ul><ul><li>Price </li></ul><ul><li>Selection </li></...
<ul><li>Operational Excellence </li></ul><ul><ul><ul><li>Move  know-how  from top performing units to others </li></ul></u...
Strategy: Value Disciplines <ul><li>Customer Intimacy </li></ul><ul><ul><ul><li>Capture knowledge about  customers </li></...
<ul><li>Product Leadership </li></ul><ul><ul><ul><li>Reduce  time  to market </li></ul></ul></ul><ul><ul><ul><li>Commercia...
The Final Lever: PAY <ul><li>Pay for Service </li></ul><ul><li>Pay for Job </li></ul><ul><li>Pay for Performance </li></ul...
What’s the Difference?  <ul><li>Increment </li></ul><ul><li>Bonus </li></ul><ul><li>Promotion </li></ul>www.myCNI.com.my w...
Employee Distinction Group I (Talent Pool) Group II (   Potential) Group III (   Performance) Group IV (Counseling) 2 3 ...
Curse of the Bell Curve ‘ A’ Staff ‘ B’ Staff ‘ D’ Staff ‘ E’ Staff ‘ C’ Staff www.myCNI.com.my www.OOBEY.com
Reminder… <ul><li>Great Wall of China </li></ul><ul><ul><li>humans are the weakest link </li></ul></ul><ul><ul><li>bad tre...
Other thoughts… <ul><li>Big matters/Small Matters </li></ul><ul><li>Differentiate of Die </li></ul><ul><li>Define “Talent”...
Thank You. soft copy of slides:  www.totallyunrelatedrandomanddebatable.blogspot.com
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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

* 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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  • Transcript of "Constructing High Performing Organisations - Building Blocks, Structures, And Culture"

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