Welcome The title of the workshop is “Leading the resilient organisation” But before we start let’s quickly look at an example of the climate we are in....
This is what we will do in this workshop Read titles of 3 sections Workshop format using exercises to discuss and work through the tools and models But this can be stilted and not very informative if you have to worry about confidential information So we’ll run case studies in parallel with opportunities for you to consider your own organisation’s circumstances Case study will allow practice in how the models work, personal consideration on own organisation allows some in-workshop prep ready to hit the ground running tomorrow. Plenty of Q&A throughout the workshop – long, don’t wait you might forget. But also concluding Q&A at the end
Before starting to discover new things, let’s make sure we understand – for ourselves – what we mean by some terms. Read the 3 definitions required Ask Attendees to discuss at table and then invite them to share. General discussion, how would these definitions change to cope with changing conditions?
Methodology used in workshop will be following discoveries of some studies – the work of Tom Peters and Jim Collins on recognising sustainable success in organisations, the work of John Kotter on the process of implementing change Pertinence of studies? 1979 study In Search of Excellence surveyed and interviewed 62 companies. In 2009 only 9 out of the 62 have either been taken over, merged or collapsed. So there is some long term sustainability in the results 2001 study Good to Great surveyed mainly 11 companies – in 2009 4 have been taken over or collapsed RECENTLY – Circuit City, Fannie Mae, Kimberly Clark, Wells Fargo. Still good odds – collapses more due to severity of current financial crisis than non-excellence- but question has to be asked, why did likes of Fannie Mae, Circuit City close recently? So, studies have shown some long term results that support the conclusions
Before we look for what the studies have shown builds a sustainable enterprise, let’s see what we should avoid! Barbara Tuchman, historian, wrote a book called In Search of Folly, where she studied how leaders and civilizations made the worse possible decisions in an historical context, such as Hitler deciding to invade Russia US military strategy in Vietnam The British tactics and policy during the American Revolution And she concludes three “outstanding attitudes”. Read each of the 3 attitudes These can be applied to organisations as well – take each in turn, give generic examples.
Now, let’s look at the opposite. Diane Coutu wrote an article in the Harvard Business Review. Intrigued by why some people were resilient and other buckled, She studied resilience in people and organisations.. Excerpts are in your handouts She came up with three “attitudes” Facing Down Reality While optimism has its place, too much misplaced optimism “kills you of a broken heart”, kills motivation and enthusiasm to keep fighting. A cool sense of reality is far more important. Do I truly understand – and accept – my situation, does my organisation? The search for meaning (value) Ability to see reality is linked to 2 nd building block of resilience – ability to make meaning of terrible times. Avoids the inwards “how can this be happening” attitude of surrender by placing in front a vision of the future. Story of Victor Frankl (Man’s Search for Meaning). Meaning in a vision is also linked to having strong core values. Ritualized Ingenuity 3 rd building block – ability to systematise innovation. Constantly looking for new ways. Importantly “ritualised”, not naturally occurring.
So to summarise here are the attitudes that allow organisations to be resilient, or not, as the case may be. Go through table. Which ones are present in your organisation? These set the climate for what happens within an organisation that makes it resilient or not, so now let’s look at the characteristics themselves of long-term successful organisations as seen in the studies
Tom Peters was a consultant at McKinseys and in late 70’s he and fellow consultant Bob Waterman interviewed over 80 US companies to look for “excellence” and drew common traits from the top 60 or so. These are:- (read) I won’t spend much time on these 8 “management principles” – the phrases have entered common usage, because I believe Tom Peters summarised them even further into 5 characteristics of a sustainable organisation in his later book.
In 1987 Tom Peters, now recognised as a management “guru”, collates the finding into a “hot-to” book and summarises the characteristics he found into 5. Total Customer Responsiveness In this, he groups all the traits of being close to the customer and listening to them. Create niches and specialise. QUALITY as PERCEIVED by the customer. Sales & service teams as heros Fast paced Innovation Invest in new things and new ways, encourage TEAM product/service development, role model & reward innovation, support “fast failures”, set quantitative innovation goals Flexibility by empowering people Use self-managing teams, listen/celebrate/involve, train and retrain, incentive systems, simplify structure (and middle management role Leadership at all levels Inspiring Vision, Walk the talk, delegate, create a sense of urgency, Listen, evaluate everyone on Love of Change Systems that can handle chaos Measure what’s important ONLY, decentralise, set conservative targets, Total Integrity
Jim Collins, Professor at Stanford Graduate School of Business, studied companies that “made the leap” against those that didn’t and came up with 6 characteristics why they made the leap of goodness to greatness Level 5 Leadership Someone who has moved past the previous 4 levels of highly capable individual, contributing team member, competent manager, effective leader to “level 5” – leader who builds enduring greatness through a paradoxical blend of personal humility and professional will (unwavering resolve). All ego needs are channelled through the organisation. First who, then what Build a team with great people, then figure out what to do with them, where to put them. Find the talent first, build the org chart later (goes against classic management teaching) Confront the brutal facts We’ve discussed that! Hedgehog concept Fox is cunning and tries everything – hedgehog only knows one thing and does it well Culture of discipline True to the vision, true to the values – fall in line or get out (but Culture, not tyrant) Technology accelerators Use technology to accelerate growth - Innovate to advantage – not tecch for tech’s sake but how to THINK about technology
Summarised studies into 5 characteristics of a resilient organisation. Not in any order, all must be present and balanced. Each work off each other. Leadership – Vision? quality of your leadership? Depth of your leadership? Inspirational and walking the talk. Balanced with good management People – quality people (then where do they sit), empowered, clear goals and rules (values?). Teamworking skills. Engagement of the best, corporate culture Vision & Values – clear vision? Shared? Communicated and explained, all decisions and strategies aligned? Clear rights and wrongs through core values? Openly stated and rewards and punishments based on standards? Ritualised Innovation – new ideas? Culture of encouragement and calculated/vision oriented risk-taking? Systems in place to facilitate, nurture, reward new ideas? Systems in place to periodically search for new ideas? Robust systems – bureaucracy or vision orientation? Measuring what matters? Support what matters? Flexible yet clear rules
Refer to case study Discuss at table, then share – clues of non-resilience? Possibilities of resilience?
Now that we have identified the characteristics of a resilient organisation, let’s look at how you can create a corporate culture that builds in resilience. What do you need to do at your organisation? Remember this is a change management process because it is about how people think and how they process work. Culture is rooted in attitudes and it is about changing attitudes. The first thing you have to do is to confront the brutal facts, then you need to understand the process of change management And finally you have to implement that change.
One of the studies I mentioned earlier was the work done by Professor John Kotter of Harvard University who studied large scale change efforts. He found 8 steps that you have to go through in sequence – and all 8 must be completed. Establish a sense of urgency – examine the market and current realities, identify and discuss crises, potential crises, and opportunities Create a guiding coalition – put together a group that sees urgency and has enough power to ilead change Develop a vision and a strategy – create a compelling vision that will direct effort, develop strategies to achieve the vision Communicate the change vision – use every vehicle possible to constantly communicate vision and strategies, have guiding coalition role-model behaviour Empower broad based action – get rid of obstacles, change systems/structures that undermine new vision, encourage risk-taking and non-traditional ideas, activities, actions Generate short term wins – plan for visible improvements, create those wins, recognise and reward Consolidate gains and produce more change – use increased credibility to change systems, structures, policies that do not fit new vision, hire, promote, employ people who fit new vision, reinvigorate process with new projects, crises, opportunities. Anchor new approaches in culture – create better performance through customer and productivity oriented behaviour, more leadership, articulate connections between new behaviours and organisational success
Let’s look at the process – the best way to face the brutal facts is to conduct a SWOT – best explained as internal/external analysis of issues. Consultants launch into a whiteboard exercise, but deserves more analytical processes – we use a breakdown tool. I’ll flash 3 tools on screen and walk you through them
First is a table to categorise Strengths and Weaknesses 5 categories of internal areas – list strengths and weaknesses in each.
Then we look at Opportunities and Threats 4 categories of external areas – each will have trends and external forces that will affect the organisation
Finally we summarise into a SWOT matrix. Later of course we analyse by looking at cause and effect and strategise to ensure we use strengths and eliminate weaknesses. OK, using these 3 tables in your workbooks please discuss at table Nissan’s SWOT in 1999 before Ghosn came on. Audience to complete then share
Now let’s look at how Ghosn applied the 8 step process for initiating change. Reveal each step and open discussion on what he did:- Sense of urgency – message to the Board, press attended AGM told bad news, tolld employees bad news Guiding coalition – brought in hand picked managers, Japanese board members, CFT’s Vision & strategy – restructuring plan Communicate – everywhere Broad based action – toured employees, CFT’s Generate short term wins – new product lineup very soon Consolidate gains – focus on full execution of Revival Plan Anchor new approaches in culture – incentive system
Let’s keep working on your organisation. In handouts, questionnaire on the first 4 phases of change management process “The Start” Try to generate some ideas for your organisation – How would you create a sense of urgency Who would you put together in a guiding coalition How (process) would you develop your vision and strategy How many ways can you communicate vision – vehicles and opportunities Have a go at generating some ideas. On completion invite audience to share or ask clarifying questions
Here’s another questionnaire on the next set of 4 steps “Change Ideas” Ideas to empower broad-based action Ideas of easy wins to aim for first Ideas for the second set of wins later down the line How to anchor changes in culture Generate some ideas for yourself On completion invite audience to share or ask questions.
We use a graphic to collate ideas generated during the process. While doing SWOT and the change management planning process – probably had lost of other ideas as well – don’t lose them. Scribble all ideas down in the category of the 5 characteristics – all should have at least one idea to explore at work.
Had a look at the characteristics of a resilient organisation and how to apply change management processes to create a resilient culture, what are the implications for Leaders? Ask audience to shout out and whiteboard
Great discussion – now let’s look at a summary of what Leaders need to look at when attempting to lead the change to a resilient organisation Communication – big. Must have skills – at all levels of leadership. What vehicles are there? What work? Set aside TIME Understanding true value of leadership vs management (vision and direction vs following sets of guidelines. Both necessary – what is the balance? Where does the Level 5 Leader stand? Focus – are you always referring to vision and strategy? All roads must emanate from that source. Are you hedgehog or fox? Many skills or concentration? Core Values – are yours strong and aligned to the organisation. Role modelling, walk the talk, explain and communicate. People – how are they used? Engaged or in/outers? Viewed as assets, skill-bases or costs?
We’re at the end now. We’ve looked at -characteristics Creating resilience Implications for leaders
Where to with this information? Keep up the momentum Review the models and exercises Work on organisation Vision and Core values Work on the change management plan
Leading the resilient organisation Achieving results whatever the conditions