1c Leaders engage with external stakeholders, International Human Resources Management

1. 1c Leaders engage with external
stakeholders
http://www.flickr.com/photos/silkegb/3995479010/sizes/o/

2. What we have learnt.
• Overview of the EFQM Model • Criteria 1
to be applied for HR- • Tasks/Roles of Leaders
Departments • Leaders drive the vision
• Various Theories, Types, Traits
• Criteria 3
about Leadership
• People Approaches
• Process of coordinator, owner and
• Criteria 5 manager
• HR Process Management • Regular BSC review
• Criteria 4e • Assessor/ auditor
• Learning Organization
g g
• People, Places and Objects
Approach
• Intercultural Management by
Lixiu
• Criteria 7
• People’s Perception measures
• People’s Performance Indicators
International Human Resources Management,
Dr. Jörg Klukas

3. The EFQM excellence model
Q
Enablers Results
People
People Results
Policy and Customer Key
Leadership
p Strategy Processes Results Performance
Results
Partnerships Society
& Resources Results
Innovation and Learning
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4. The EFQM excellence model
Q
People
People
Results
Key
1. Leadership
1 L d hi
Customer
Leadership Strategy
Strateg Processes Performance
Results
Results
Partnership Society
& Resources Results
a. Leaders develop the Mission, Vision, Values and ethics and act as role
model
b. Leaders define, monitor, review and drive the improvement of the
organization’s management system and performance
c. Leaders engage with external stakeholders
d.
d Leaders reinforce a culture of excellence with the organization s people
organization’s
e. Leaders ensure that the organization is flexible, and managers change
effectively
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5. The EFQM excellence model – People
Q p
1c Leaders engage with external stakeholders.
1 L d ith t l t k h ld
In practice, excellent organizations:
• Know who their different external stakeholder groups are and
g p APPROACHES
develop approaches to understand, anticipate and respond
to their different needs and expectations. Leaders manage
• Establish approaches to engage partners, customers and external stakeholders
society i generating ideas and innovation.
i t in i id di i
Corporate Social
• Use innovation to enhance their organization's reputation
Responsibility
and image and attract new customers, partners and talent.
• Identify strategic and operational partnerships based on Direct Influence
organizational and strategic needs, complementary strengths Methods
and capabilities
Leaders manage Shareholder
g
• Ensure transparency of reporting to key stakeholders
stakeholders,
by Strategy (2)
including appropriate governance bodies, in line with their Leaders manage Partners (4a)
expectations.

6. 1C LEADERS ENGAGE
WITH EXTERNAL
STAKEHOLDERS
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7. 4 Tasks of Leaders
4 types of actions are performed by leaders: Strategic leadership includes the alignment of the organization towards a long-term goal.
Operational leadership means the day-to-day interaction with all stakeholders. Process leadership represents the responsibility for
continuous improvements. Leadership of change realizes break-through improvements to redesign the organization.
Strategic Leadership Operational
1a Leadership 1c/d
• Process Coordinator, Process Owner
people
ship
Process Manager
g
Leadership Processs
of Change Leaders
• Leader of Improvement Team
1b
• Assessor / Auditor (EFQM, Bootstrap/SPICE)
Visionary
Enabler • Member of Management Review
g
e
Role Model • Responsible for Strategic Initiatives
• Manger of Innovations; Member of Disruptive
1e
Innovation Decision Teams; Leader/Member
of Focus Innovations
experiences
• Set challenging goals, create belief • Leading employees
and commitment to these goals, • Account Manager
involving people at all company • Partner Manager
levels, stick with the challenging • Responsible for Cultural Activities,
goals, focus on it and execute Educational Institutions,
• by Offsites, Management Meetings, Governmental Relationships
BU/Account Reviews, Strategy
Mapping, BSC
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8. Changing world. New Requirements for
Leaders to manage their Stakeholders.
g
Industrial Age at the End: Knowledge Age is coming:
“Provider Power”, “Customer Power”,
start of mass markets,
t t f k t strong competition, individualized demand,
t titi i di id li d d d
Taylorism as superior working model decentralized and adoptable models establish
Features and leadership skills:
• Discontinuous changes  agile management
and flexibility
Dynamism
• Short life-cycles  drive disruptive innovation
• Ongoing price reduction  foster operational excellence
• Customer as designer  role model for customer service
d
D
Features: • Picky Employees  define great place to work
• Incremental change • Transparency and society awareness  social behavior,
• Long life-cycles sustainability
• Stable prices
• C
Customers as receiver
i
• Picky employers
• “Managed” results
1890 1980 1990 2000 2010 2020 2030
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9. Roles of Leaders in managing their
stakeholders
Shareholder Values, expectations,
Interests, needs
Task
T k
Products/ Processes
Services
Supplier/ Values, expectations,
Partner Employee
Interests, needs
Customer
Leader Values, expectations,
Values, expectations, Interests, needs
Relation
Interests, needs
Organization
Society
S i Values, expectations,
Values expectations
Interests, needs
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10. Leaders are strategic partners of their
customers
Leaders acquire new customers and manage existing
customers
– Acquisition + Account-Manager (Key Account Manager)
– Top Account Review
– Escalation, Customer-Feedback-Management
– Customer Survey
– Project Review
Build up knowledge about Focus on creating
Customer needs and expectations value for customer
Map customer structure to Increase customer
organizational structure loyalty
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11. Map customer structure to organizational
structure; example for Big Projects
; p g j
General General
Manager Steering Board
Manager
Department Escalation Department
Leader Board Leader
Project P j t
Project
Manager Project
Leader Team Leader
Internal
and
Project Team external
Project Project Team
Team
Customer Organization
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12. Interaction Level with Customers
The t
Th customer is a partner
i t building d i t i i l
b ildi and maintaining long-term, win/win relationships
t i / i l ti hi
The customer is a co-designer developing services together with the customer
The customer informs surveying the customer`s opinion
The customer is considered taking on the customer`s perspective
The customer is a receiver producing an selling products and services
How does the company see the customer? What are the company`s tasks?
Source: IAO Study, 2003
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Dr. Jörg Klukas

13. Roles of Leaders in managing their
stakeholders
Shareholder Values, expectations,
Interests, needs
Task
T k
Products/ Processes
Services
Supplier/ Values, expectations,
Partner Employee
Interests, needs
Customer
Leader Values, expectations,
Values, expectations, Interests, needs
Relation
Interests, needs
Organization
Society
S i Values, expectations,
Values expectations
Interests, needs
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14. Leaders manage their shareholders
(
(2a-d)
)
Leaders report to shareholder and manage their
results
– Strategy and Planning
– Medium-term planning, budget-planning and review
– Balance Scorecard, Agreement of Corporate Targets
f
(Management by Objectives)
– Business Unit Review
– Management Review
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15. Roles of Leaders in managing their
stakeholders
Shareholder Values, expectations,
Interests, needs
Task
T k
Products/ Processes
Services
Supplier/ Values, expectations,
Partner Employee
Interests, needs
Customer
Leader Values, expectations,
Values, expectations, Interests, needs
Relation
Interests, needs
Organization
Society
S i Values, expectations,
Values expectations
Interests, needs
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16. Leaders develop a network of win-win
p
partnerships and suppliers ( )
p pp (4a)
Make-or-Buy, Know-How, Learning, Bundeling-of-
Competence are only some examples for strategic
partnerships
– Manage strategic business partners (bundling products
for
f same customers)
t )
– Evaluate and provide feedback for classical suppliers
– Network with educational partners (universities, schools)
– Learn&Improve with quality partners (Benchlearning
circles, EFQM)
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17. Roles of Leaders in managing their
stakeholders
Shareholder Values, expectations,
Interests, needs
Task
T k
Products/ Processes
Services
Supplier/ Values, expectations,
Partner Employee
Interests, needs
Customer
Leader Values, expectations,
Values, expectations, Interests, needs
Relation
Interests, needs
Organization
Society
S i Values, expectations,
Values expectations
Interests, needs
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18. Leaders represent Corporate Social
Responsibility (
p y (CSR)
)
Leaders take social responsibility by
– Using the results of their business to support the
development of the society
– Sponsoring of computers for educational institutions
– Providing webpages for elderly people (barrier free internet)
– Provide produced medicine for poor contries
– …
– Prevent society from any harm pollution etc generated
harm, pollution, etc.
by the business
– Environmental and sustainability aspects
– Green IT cool silicon, etc.
IT, silicon etc
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19. Drivers for CSR
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20. INFLUENCE MODEL OF
LEADERSHIP
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21. Ways to influence
y
Leader
Leading by vision,
Leading by structure corporate values and HR
and systems policy
Processes, Objectives and Vision, corporate culture,
Direct Influence
Rewards shared values and norms
Governance by
Go ernance b
objectives, rules and Governance by
rewards Follower, Peer, Partner, Superior… sozialization
Self-Governance by
Extra-organizational
socializations or teams
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22. Leaders Toolset of Direct Influence
Cause Criticism
(Observable)
Emotions
(Unobservable)
Conflict
Values, expectations, Values, expectations,
Interests, needs Interests, needs
Sender Receiver
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23. Direct Influence – Criticism
Talk about objectives, not about emotions.
j ,
Cause Criticism
(Observable)
• Sender and receiver
exchange information on an
objective level
level.
• In an ideal situation, the
emotional level is not a
topic.
• The foundation is an agreed
Emotions standard that is assessed by
(Unobservable) both parties.
• In this situation the cause is
only described, not
evaluated.
evaluated
Values, expectations, Values, expectations,
interests, needs interests, needs
Sender Receiver
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24. Basics of Criticism
Do it objectively, positively and encouraging.
j y, p y g g
• If there is not a reasonable deviation of an
agreed objective or standard criticism must be
standard,
replaced by a personal feedback
• Phases of a criticism
• Invitation
• Introduction
• Describing the facts
• Listen to follower; reflecting the facts
• Agreement on objective/standard
• Apreciation
A i ti
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25. Direct Influence – Feedback
Talk about emotions of only the sender.
y
• There is no need for an
agreed objective or standard
Cause • The sender describes the
(Observable) cause and his/her interests,
expectations, values and/or
needs
• The sender is using “I”-
messages
Emotions
(Unobservable)
Values, expectations, Values, expectations,
interests, needs interests, needs
Sender Receiver
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26. Rules of Feedback
Feedback Sender has the responsibility for the feedback
Feedback Sender Feedback Receiver
1.
1 Describe perception 1.
1 Signal „Thank you“ for
Thank you
2. Evaluate subjectively sharing personal view
(
(interests, values,
, , 2. Compare self-
p
needs, expectations) perception with the
3. Ask for change perception of the other
3. Adopt ith t lf
3 Ad t without self-
abandonment (Selbst-
Aufgabe)
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27. Direct Influence – Conflict
Exchange opinions on an emotional level.
g p
Cause • Sender and receiver are
(Observable) situated at an emotional level
• Different values,
expectations, interests and/or
needs are confronted within
such a talk
• If no one of the parties is
willing to move on an
objective and cause level, the
conflict cant be solved
Emotions
(Unobservable)
Conflict
Values, expectations, Values, expectations,
interests, needs interests, needs
Sender Receiver
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28. Conflict is a problem when it:
p
Hampers productivity.
Lowers morale
morale.
Causes inappropriate
behaviors.
b h i
Causes more and continued
conflicts.
International Human Resources Management,
Dr. Jörg Klukas

29. Conflict styles
y
Competing Collaborating
• Zero-sum orientation
• Expand range of possible options
• Win/lose power struggle
• Achieve win/win outcomes
•Leader directs to win
•Leader cooperates to find win/win
solution
ASSERTIVENESS Compromising
p g
Focus on my needs,
F d
• Minimally acceptable to all
desired outcomes
• Relationships undamaged
and agenda
•Leader finds middle ground
Avoiding Accommodating
• Withdraw from the situation • Accede to the other party
• Maintain neutrality • Maintain harmony
•Leader delays decision making •Leader yields
COOPERATIVENESS
Focus on others’ needs and mutual relationships
Source: www.kilmann.com/conflict.html (Bonnie Burrell, 2001)

30. Types of managerial actions that cause
conflicts
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31. Direct Influence – Convince
Sender explains benefits for the receiver.
p
Cause
(Observable)
• Nobody is easily changing
Emotions his/her opinion, by hearing a
(Unobservable) senders arguments
• In order to convince, it is
necessary to address the
values, expectations,
values expectations
Values, expectations, interests and needs of the Values, expectations,
interests, needs receiver in order to express interests, needs
the benefits on an emotional
level
Sender Receiver
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32. Negotiation based on interests
g
1. Argue on the cause level (separate man and problem)
2. Balance Interests
(Why questions show different interests)
5 Principles
3. Present proof of concept
(show objective criteria)
Harvard-Concept
(Win-Win
4. Find options Approach)
(collect possible solutions)
5. Alternative
(the best alternative does not represent a pro nor a contra to the negotiation
p
partner)
)
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33. Process of negotiation
g
• Identify interests, expectations,
needs and values of the other
d d l f h h
• Set up your options and your Best-
Alternative to Non-Agreement
(BATNA)
• Present facts at the cause level
supporting your options
• Bargain by asking details,
addressing the emotional level of the
other and providing concessions,
namely giving up something to
l i i thi t
achieve something else
• Achieve agreement
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34. Contact me!
Dr. Jörg Klukas
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