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All In the Strategic Mind


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The eight business challenges every CEO should know about

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All In the Strategic Mind

  1. 1. All In the Strategic Mindthe eight leadership challengesevery CEO should know about “The term head to head competition is literal. Global competition is not just product vs. product, company vs. company, or trading bloc vs. trading bloc. It is mind-set vs. mind-set, managerial frame vs. managerial frame." Michael G. Hamel & C.K Prahalad
  2. 2. IntroductionSustaining consistently high levels of corporate performance is These are difficult challenges for leaders. And our researchthe goal. It’s always been a tough challenge. Ask Marconi, indicates that personal psychology is no small measure part ofScottish & Newcastle, Safeway and other firms listed in the the reason for strategic decline and why organisations:FTSE 250 in 1998 that have now disappeared. And it’s gettingtougher? How many will remain by 2018? find it difficult to exploit and manage the process of business innovationShifting industry dynamics, global competition, andtechnological change are key dynamics in shaping survival and over-stretch themselves and mismanage the growthsuccess. But if turning in consistent levels of performance over momentumthe long haul is a combination of strategic repositioning and usually get it right by pursuing the customer, butsuperb execution then the focus must be on business forget the future customerleadership. get into trouble when they believe their own publicWe can blame the weather or Alistair Darling, but it is the task relationsof leaders to recognise when the battleground of competition isshifting and when choices need to be made to reposition the don’t always see the benefits when they invest inorganisation. And it is leaders who manage execution, people capabilitycoordinating the implementation process to direct might be disappointed when they place control andorganisational resource to where it will have most impact. efficiency at the heart of their strategy need to deploy Trouble-Shooters but only for a short time should have another think before implementing major transformation© AM Azure Consulting Ltd 2008 2
  3. 3. Leadership dynamics and business challengesBased on a data set of over 500 senior executives, we What is needed is a shrewd insight into the diversity ofidentified the impact of leadership psychology on strategic business leadership, recognising how different businessdecision making and implementation. leaders think and act, and understanding what motivates them and the dynamics that might derail them.This analysis of the personality and motivational dynamics ofbusiness leaders suggests how organisations can optimise the And rather than attempting to create balanced leaders,odds of long-term success by overcoming eight business organisations should look to build balanced leadershipchallenges: across its executive population. speeding up the process of strategic creativity managing sustainable expansion getting close to the future customer building strategic space and maintaining corporate reputation making the HR function a key driver of success exploiting the gains of administrative consistency and financial discipline “Nothing is more dangerous navigating through the tough times whilst playing the long game than an idea when it is the only one you have.” managing the implementation of organisational change Emile Chartier© AM Azure Consulting Ltd 2008 3
  4. 4. A framework of strategic leadershipBusiness Challenges¹ was developed by AM Azure Consultingin the mid 90s in response to the recognition that “martini What are the majormanagers” - managers equally effective “anytime, anyplace, strategic challenges weanywhere” - were in short supply. Despite the best efforts of the Strategy face?competency enterprise and associated activity in management On what battle grounds aretraining and business education, the outcomes of succession we going to compete?reviews indicated a shortage of “all singing-all dancing”executives².And the growing research in strategic leadership suggestedthat organisations might be better served by assuming a What do we need to do to:leadership model of “horses for courses” rather than attempt to Stay in the gameaccess large numbers of “strategic leaders for all seasons”. Organisational Excel and win? Capability What combination ofThe Business Challenges framework provides a vocabulary to professional expertise andconnect strategy and leadership. The model maps out eight knowledge will build thethemes that can be used in pinpointing an organisation’s capability we need tostrategic emphasis and the focus of its capability, as well as in advance our strategicdescribing different leadership patterns. position? What are the implications Leadership for leadership capability? Effectiveness In which areas do we need outstanding leadership?¹ “Competences: Dialogue Without a Plot”, Executive Development, vol 7, no 6, 1994, A Munro & B Andrews² “Practical Succession Management, A Munro, 2004© AM Azure Consulting Ltd 2008 4
  5. 5. Business Challenges: eight strategic themesARCHITECT - redefining the organisation VISIONARY - planning next generation products andinfrastructure to create new operating methods and services to formulate an innovative businesspractices; exploiting technological capability to create strategy; developing new business concepts whichnew organisational structures, systems and operating redefine the rules of business success; addressingstyles; conducting a re-appraisal of the organisational the impact of emerging trends and developments ininfrastructure in the context of improved technological the market-place for the organisation’s long-termcapability strategic positionTROUBLE-SHOOTER - identifying and removing EXPLORER - investigating opportunities to breakunproductive and inefficient business function; into new markets in pursuit of a diversificationtackling those business activities which are no longer strategy; developing relationships with other keycontributing to corporate performance; divesting players in the industry to explore scope for alliancesunprofitable activities which are failing to support and joint ventures; identifying opportunities for thecorporate priorities and objectives future growth and expansion of the businessREGULATOR - focusing attention on the efficiency BUILDER - translating business strategy into salesand consistency of all internal processes; monitoring and marketing priorities; reviewing the customerwork flow for opportunities to standardise service delivery process for areas of improvement;organisational activity; applying financial discipline exploiting the organisation’s customer-base throughand administrative control over organisational activity attention to sales and marketing activityto gain improved levels of efficiency LOBBYIST - representing the organisation’sINTEGRATOR - raising the overall skill level of the interests across the wider business community towork-force through focusing resources on training, improve corporate image; planning a programme ofdevelopment, recognition and reward; raising levels corporate communication which gains greaterof staff capability and motivation to improve influence and freedom of manoeuvre for theorganisational loyalty and pride; breaking down organisation; building relationships with key playersfunctional differences and resolving complex views to throughout the industry to improve the company’sunite the efforts of different groups standing in the market-place© AM Azure Consulting Ltd 2008 5
  6. 6. Business Challenges and leadership assessment¹This research is based on 513 senior managers who Business Challenges is a suite of selfundertook a series of assessments as part of a assessment questionnaires, incorporatingvariety of executive resourcing and development a choice of response options, rating andassignments. In addition to Business Challenges, the forced choice. The version used in thisgroup also completed OPQ32i, the Motivation exercise was preference based, 84 pairsQuestionnaire, and the Hogan Development Survey, of statements profiling eight themes ofwell established self report instruments with strategic leadership.respectable measurement properties. The OPQ32i is an ipsative measure ofThe data set was predominantly UK based (70%), personality for use in a variety ofwith a spread of other nationalities. General occupational applications. It maps out 32management was the typical functional background, scales, although the test publishersfollowed by Finance, Sales & Marketing and a mix of indicate the results can be summarisedothers in IT, Operations, HR and Corporate Affairs. against the established Big 5 of personality.The population came from a mix of industry sectors, The Motivation Questionnaire is awith a skew towards financial services, utilities, questionnaire designed to identifytransport, consumer and media. Around 16% of the motivational patterns and strengths,group were from the public sector. profiling 18 dimensions. The Hogan Development Survey is a personality questionnaire that highlights the “dark side” of leadership and the factors that can derail leadership careers. Based on 168 items, the HDS measures 11 themes that represent risks to leadership effectiveness.¹ See Appendix 1 for the full listing of the assessment frameworks.© AM Azure Consulting Ltd 2008 6
  7. 7. The personality and motivational dynamics of strategic leadershipFor each of the eight Business Challenges, we have mappedout the correlates with the OPQ, Motivational Questionnaire “There is no one who has not aand Hogan Development Survey. Results are outlined in counter balance to their mostAppendix 2. conspicuous merit, and if it isThis analysis identifies how personality and motivation underpin nourished it may grow to be athe leadership gains and hazards associated with each tyrant.”Business Challenge and indicates ways in which organisationscan optimise the gains and mitigate the risks of different Balthasar Gracianleadership approaches.© AM Azure Consulting Ltd 2008 7
  8. 8. The Visionary challengeWhy organisations: “Strategic experiments are likely find it difficult to exploit and manage the process of to fail if the company relies solely business innovation on the heroism of a hyperAnd how organisations can optimise the odds of long-term talented individual.”success by: speeding up the process of strategic creativity Vijay Govindarajan and Chris Trimble© AM Azure Consulting Ltd 2008 8
  9. 9. Visionary leadership: the gains and risksOrganisations need Visionaries, leaders with the imagination togenerate the product and service innovations that redefine therules of the business game and shape the corporate future.The psychological profile of Visionaries:Our analysis indicates that Visionaries manage ambiguity anduncertainty, drawing on strengths in forward planning to lookahead and generate ideas about future possibilities. Motivated The bottom line is inby a changing environment, Visionaries dislike the constraints heaven.of an imposed structure, valuing their independence and look tooperate to their own distinctive agenda. Edwin Land PolaroidThe risks: going off on a personal tangent, pursuing ideas of individual interest rather than engaging fully with others to translate promising concepts into a practical programme of action a naiveté that assumes good business ideas about the future will speak for themselves rather than lobby vigorously with key stakeholders to build support and “Organisations find it difficult to backing exploit the gains of innovation when becoming sidelined from the “rough and tumble” of the leaders who shape business corporate debate rather than compete assertively for “mental shelf space” with their colleagues creativity are overlooked …or allowed to pursue an expensive personal agenda.”© AM Azure Consulting Ltd 2008 9
  10. 10. Visionary leadership: exploiting the gains and avoiding the risksOrganisations committed to long-term success optimise thestrengths of Visionaries, whilst avoiding the potential hazards.Visionaries need breathing space to develop their ideas. Toomuch corporate control will stifle creativity. Insufficient controland Visionary leaders will bankrupt the firm in search of the bigidea.Shrewd organisations speed up the process of business To turn really interestinginnovation when: ideas and fledgling technologies into a strategy isn’t formulated by the “law of the squeaky company that can continue wheel”. Instead the organisation is open minded and to innovate for years, it comprehensive in its trawl for the most promising ideas. requires a lot of disciplines. And the issues are reviewed sympathetically and objectively, not subject to the “line them up to shoot them Steve Jobs down corporate fairground” Apple the top team take time to go out and meet those leaders who might not typically come to their attention, and are willing to listen to controversial perspectives that might challenge their thinking they help Visionary leaders spend time on what they do best, but provide support from those professionals and executives who understand the mechanics of organisational politics and decision making discourage corporate isolationism to ensure Visionary leaders are also engaged in the practical problems of their peers and accessing direct feedback from the market place© AM Azure Consulting Ltd 2008 10
  11. 11. The Explorer challengeWhy organisations: “Were on a pirate ship at sea...Im over-stretch themselves and mismanage the growth your captain. Were going to go out momentum and raid all the other ships on theAnd how organisations can optimise the odds of long-term ocean."success by: managing sustainable expansion Ted Turner, Cable News Network© AM Azure Consulting Ltd 2008 11
  12. 12. Explorer Leadership: the gains and risksThe Explorer theme provides strategic energy to push into themarket place and identify opportunities for growth: moving intonew territory, diversifying the product-service mix, and spottingwhere partnerships, mergers and acquisitions can accelerateexpansion.The psychological profile of Explorers:The personality and motivational pattern for Explorer leaders It is harder for us becausehighlights highly competitive individuals, looking to impress we are growing faster thantheir colleagues with the boldness of their business thinking. most of the other banks.Commercially minded, Explorers are also confident in Adam Applegarthpresenting high profile plans to command organisational former CEOattention and persuade others to their ideas. Northern RockThe risks: over-selling the arguments for growth; a confidence about future possibilities based on personal aspiration rather than business imperative drawing on persuasive influence to build enthusiasm for plans rather than work through the detail of different proposals and options “Organisations mismanage growth embarking on an ambitious course of action without by allowing competitive and taking the time to build emotional commitment from others charismatic leaders seize the strategic agenda, agreeing to ideas that owe more to personal ambition than business logic.”© AM Azure Consulting Ltd 2008 12
  13. 13. Explorer leadership: exploiting the gains and avoiding the risksMomentum in business is everything. When organisationsstand still, they fall back quickly as more adventurouscompetitors seize the initiative. Organisations looking to passthe test of corporate longevity find ways to manage the growthmomentum. Explorer leaders provide strategic edge, but over-deployed, they have the potential to take the organisation intomisguided ventures. We seem to find ways toOrganisations manage sustainable growth when they: invest the retained earnings every year and a build in robust disciplines in risk management to evaluate little more, so as long as fully the extravagant business claims Explorers may be there are good investment tempted to make opportunities available to establish clear ethical standards and operating their us we will keep some cash intellectual exuberance and personal principles to available for it. underpin the scope of Explorer decision making Sir John Bond apply intense debate to analyse the proposals of former Chairman Explorers and ensure critical scrutiny and business logic HSBC aren’t out manoeuvred by persuasive charm partner Explorers with tough minded pragmatists to temper ambition© AM Azure Consulting Ltd 2008 13
  14. 14. The Builder challengeWhy organisations: “Todays customer preferences usually get it right by pursuing the customer, but have no inherent predictive forget the future customer value for tomorrows markets.”And how organisations can optimise the odds of long-term Nicola Diligusuccess by: getting close to the future customer© AM Azure Consulting Ltd 2008 14
  15. 15. Builder leadership: the gains and risksBuilders understand Tom Watson’s insight: “there aren’t anycategories of problems here. There’s just one. Some of usaren’t paying enough attention to our customers.” Builders havea shrewd recognition into customer needs and know theimportance of coordinating the organisational infrastructure torespond to their expectations.The Psychological Profile of Builders: I’ll believe in electronicBuilders are expressive individuals, communicating their ideas commerce when I see it.with passion and commitment. The motivational pattern is one Sir Richard Greenburyof drawing on a commercial outlook to present a credible former Chairmanbusiness position. And it is this combination of innovation, Marks & Spencercommercial mindedness and communication impact that makesBuilders a credible leadership group.The risks: an enthusiasm for the customer that may not stand back to weigh up the full range of organisational risks presenting convincing proposals that may be somewhat one-dimensional rather than addressing the broad sweep “Organisations can lose sight of the of the organisations future challenges future customer when they become obsessed with the current customer. The passion and pragmatism of Builders tempts organisations into a false sense of security that overlooks shifting market realities.”© AM Azure Consulting Ltd 2008 15
  16. 16. Builder leadership: exploiting the gains and avoiding the risksBuilders are at their best focusing on the commercial realities ofthe customer and putting in place solutions to keep fine tuningthe product and service proposition. Builders represent a keyleadership resource, and organisations committed tomaintaining success ensure the Builder mind-set is ingrainedwithin the culture, across all functions and at every level. Thechallenge for organisations is providing consistent service tocurrent customers whilst getting close to the future customer. These results represent good progress across theOrganisations stay close to the future customer (avoiding the group in a morehazards of the Builder) when they: challenging year. Terry Leahy look long and hard at the detail of the claims made at sales meetings and conferences rather than get caught Tesco up in the energy of future projections keep alert to the emerging competitors who are identifying niches with the potential to threaten their current position ensure the population of current and emerging Builders are challenged in their thinking about the changing market place to develop scenarios about future customer profitability keep monitoring the specifics of customer activity and profitability, looking for anomalies of service, cost and profitability, indicative of emerging trends in the market place© AM Azure Consulting Ltd 2008 16
  17. 17. The Lobbyist challengeWhy organisations: “Reality must take precedence get into trouble when they believe their own public over public relations, for Nature relations cannot be fooled.”And how organisations can optimise the odds of long-term Richard Feynmansuccess by: building strategic space and maintainingcorporate reputation© AM Azure Consulting Ltd 2008 17
  18. 18. Lobbyist leadership: the gains and risksOrganisations need strategic space in which to operate. Andspace is created through imaginative public relations to connectto the public, building influence with key opinion formers, andmaintaining connections to political and regulatorystakeholders.The Psychological Profile of Lobbyists:The personality and motivational profile for Lobbyists is of a You are as safe with me asgroup that draws on interpersonal skills to address the people you would be in the Bankagenda to build and maintain positive relationships across of England.different stakeholder groups. Lobbyists look to put their best Robert Maxwellleadership foot forward, with little fear of failure. Motivated by Mirror Groupstatus and power, Lobbyists at best, are compelling andforceful communicators, providing a credible and authoritativeleadership presence to articulate the corporate position.The risks: a reliance on relationship management rather than undertaking a critical analysis of the business fundamentals looking to present a “positive spin” on events rather “Organisations get into trouble rather than anticipate emerging operational problems when they assume positive a focus on the “leadership me” which looks to be the headlines and industry awards are centre of corporate attention a measure of business fundamentals, and allow their Lobbyists to run the show.”© AM Azure Consulting Ltd 2008 18
  19. 19. Lobbyist leadership: exploiting the gains and avoiding the risksLobbyists, at their best, make a distinctive impact in advancingthe organisation’s interests with opinion formers and decisionmakers to protect its reputation and build influence.Organisations need this leadership capability, during the goodtimes to extend the sphere of their activity and during the toughtimes to deal with adversity and protect their space.But they are alert to the potential hazards of Lobbyist Our reputation is moreleadership. They: important than the last hundred million dollars. keep their Lobbyist leaders grounded in business Rupert Murdoch realities, ensuring they understand the detail of the News Corporation operation and the challenges it faces play a long-game, knowing that short-term media hype can only damage future reputation avoid giving Lobbyists too much influence within the organisation remove those Lobbyist leaders whose drive for power and status makes them, not the organisation, the headline of the story© AM Azure Consulting Ltd 2008 19
  20. 20. The Integrator challengeWhy organisations: “The contrast between what don’t always see the benefits when they invest in executives say about the importance people capability of people and how they manage theirAnd how organisations can optimise the odds of long-term organizations is unfortunate at best.success by: making the HR function a key driver of success At worst, it is a major contributor to poor organizational performance.” Ed Lawler© AM Azure Consulting Ltd 2008 20
  21. 21. Integrator leaders: gains and risksOrganisations have the challenge of coordinating the differenttalents and energies of the work force around a commonpurpose. Integrator leaders are instrumental in shapingorganisational culture and in developing people capability.The Psychological Profile of Integrators:The personality and motivational profile indicates thatIntegrators are well meaning and well intentioned leaders. For We achieved what weIntegrators, “people are our most important asset” isn’t a cliché; achieved in spite ofit is their operating principle. Integrators have a positive outlook management.about others and their contribution, looking to involve and Greg Dykeengage them in their thinking. Integrators are motivated to do former DGthe right thing and play by the rules, sensitive to differences, BBCdemocratic in consultation and keen to support thedevelopment of others.The risks: a reliance on others’ good intentions to do the right thing rather than confront problems head on and establish a “For organisations there can be a forthright agenda for change and improvement yawning gap between the intention an under play of financial analysis and commercial and the reality of people practice. thinking in clarifying the business logic of their plans And a key dynamic is Integrator taking a back-seat in strategic debate rather than leadership, which despite strong establish an independent stance to push ideas forward principles and a positive outlook and challenge the prevailing mindset. finds it difficult to implement ideas with urgency and business rigour.”© AM Azure Consulting Ltd 2008 21
  22. 22. Integrator leadership: exploiting the gains and avoiding the risksIntegrators, particularly in a knowledge-based economy thatlooks to leverage expertise and creativity, represent anincreasingly important strategic group. But organisationsserious about playing for long-term success, have to rethink theleadership contribution of Integrators. The challenge is totranslate well meaning proposals for employee potential anddevelopment into grounded business plans and implementationprocesses. People want to do a good job, and if they areAnd organisations achieve the gains (and minimise the provided the properhazards) when: environment, they will do it. Bill Hewlett the top team ask themselves tough questions about their formerly HP own interpersonal behaviour and impact to break down any political barriers and functional silos build trust as a critical element of culture to ensure that Integrator activity is a fundamental theme across all business activity, not something to hive off to the Human Resources function the HR function is part of mainstream decision making, held accountable for its contribution to business outcomes, and asked for greater innovation in shaping the implementation process and speed in the delivery of outcomes they invest in the development of HR professionals, equipping them in the skills of problem analysis, business judgement and project management© AM Azure Consulting Ltd 2008 22
  23. 23. The Regulator challengeWhy organisations: “It is time that financial types might be disappointed when they place control and developed a greater tolerance for efficiency at the heart of their strategy imprecision, because that’s the wayAnd how organisations can optimise the odds of long-term the world is.”success by: exploiting the gains of administrative John C. Burtonconsistency and financial discipline© AM Azure Consulting Ltd 2008 23
  24. 24. Regulator leaders: gains and risksTom Peters comments: “When you go to war, you need to haveboth toilet paper and bullets at the right place at the right time.”For organisations there are major battles to fight; these are thefundamental decisions about the organisational future. There isalso a series of skirmishes to out-manoeuvre competitorsthrough smart advertising and shrewd pricing. There is also thedetailed attention to logistics, the focus of Regulators. Dreams have their place inThe Psychological Profile of Regulators: managerial activity, butRegulators are organised leaders, attending to the detail of they need to be keptoperating systems to ensure efficiency. The personality and severely under control.motivational pattern highlights a leadership group which enjoys Lord Weinstockthe familiarity of existing processes and procedures, attending GEto the detail of task analysis and implementation. Motivated bymaterial reward, Regulators are conventional in their outlook,preferring to operate within established structures and systems.The risks: a lack of innovative flair in identifying opportunities outside of the immediate business focus a caution that prefers incremental improvements in “Financial control and efficiency and stifles debate about radically different administrative consistency are possibilities business fundamentals. But failing to give sufficient attention to the interpersonal unchecked, Regulators might dimension in engaging others as part of collective effort create an efficient operation without any future customers.”© AM Azure Consulting Ltd 2008 24
  25. 25. Regulator leadership: exploiting the gains and avoiding the risksRegulators have a key role to play in sustaining high levels ofcorporate performance. Ongoing incremental gains in efficiencyprovide the kind of consistency that drives down cost, improvesproductivity and opens up an advantage vis a vis thecompetition. But left to their own devices, Regulators will keepturning the wheel of short-term efficiency, ignoring market placethreats to long-term effectiveness. It was crammed withOrganisations manage the gains and minimise the hazards of minutiae. It told operatorsRegulator leaders when they: exactly how to draw milk shakes, grill hamburgers, gauge the timing of key senior appointments, recognising and fry potatoes. It when a Regulator is needed to instil cost discipline, and specified precise cooking when a Regulator’s relentless drive on efficiency will hold times for all products and the business back temperature settings for all ensure Regulators are fully engaged in the debate about equipment. It fixed the organisation’s long-term future, not sidelined as standard portions on every “systems number crunchers” food item, down to the conduct regular culls on bureaucracy to eliminate the quarter ounce of onions operating procedures and manuals Regulators relish but and the thirty two slices per are a substitute for trust and common sense and will pound of cheese. weaken organisational culture McDonalds operating require Regulators to spend time in the business, manual interacting regularly with front line staff in sales, service and production© AM Azure Consulting Ltd 2008 25
  26. 26. The Trouble-Shooter challengeWhy organisations: “Leaders who are highly successful in need to deploy Trouble-Shooters but only for a short chaotic contexts can develop an over time inflated self-image, becoming legendsAnd how organisations can optimise the odds of long-term in their own minds .”success by: navigating through the tough times whilstplaying the long game David J. Snowden and Mary E. Boone© AM Azure Consulting Ltd 2008 26
  27. 27. Trouble-Shooter leadership: the gains and risksOrganisations need Trouble-Shooters. Parkinson’s Lawexplains why more input doesn’t always translate into greateroutput, how activity becomes detached from results, and whyproductivity falls. It is Trouble Shooters who cut through theperipheral stuff to get back to business basics and restoreprofitability.The Psychological Profile of Trouble Shooters: The corporation is not aTrouble Shooters, the results indicate, relish the practical world social experience.of the facts and are suspicious of fanciful ideals. Assertive and Al “Chainsaw” Dunlapoutspoken in stating their views about the difficult issues,Trouble Shooters follow through to keep a focus on outcomes.Trouble Shooters aren’t naïve; they see the world “as is” andare shrewd in identifying interpersonal realities, unimpressed bytheoretical discussions of “what might be”.The risks: a short-term focus on pragmatics that lacks a longer-term vision of sustainable success “Trouble Shooters are a a tendency to look for the worst-case scenario rather than necessary but awkward presence formulate imaginative ideas about what is possible in organisational life. They do a commitment to tackle problems quickly that may take expedient short cuts what needs to be done, but in doing it in the wrong way at the wrong time can damage organisational culture and long-term capability.”© AM Azure Consulting Ltd 2008 27
  28. 28. Trouble-Shooter leadership: exploiting the gains and avoiding therisksTrouble-Shooters take on the organisational mess created bytheir “adventurous” colleagues. Through a combination ofpragmatic analysis, determination and interpersonalruthlessness, they halt decline and turn around performance.Organisations exploit the gains of Trouble-Shooters andminimise the hazards when they: Just go from A to B to get develop a culture of simplicity based on a few key things done. fundamentals, but know when to shift the corporate focus Gerry Robinson to emphasise long-term goals former CEO communicate an overall vision and guiding purpose about Granada what the organisation is setting out to accomplish for the long-term build in checks and balances to avoid the “just do it” factor. “Just do it” may be an exhortation for fast turn around. It may also be permission for the kind of expediency that has devastating long-term consequences talk a lot about about business integrity and reinforce a clear appreciation of ethical standards to keep leaders focused on good management practice don’t generalise from the achievements of Trouble- Shooters in tackling one set of challenges to assume they represent any kind of corporate saviour who can sustain long-term success© AM Azure Consulting Ltd 2008 28
  29. 29. The Architect challengeWhy organisations: “I am a big believer in forcing change should have another think before implementing major on large institutions for the sake of transformation forcing change. The longer anAnd how organisations can optimise the odds of long-term organization stays intact, the lesssuccess by: managing the implementation of organisational successful it is.”change Louis Gerstner, IBM Corp.© AM Azure Consulting Ltd 2008 29
  30. 30. Architect leadership: gains and risksArchitects are the coordinators of redesign and change toformulate a blue print for a more effective organisationalinfrastructure. When Trouble-Shooters have attemptedimprovement and failed, it may be organisations need to rethinktheir fundamental business processes, how work is designedand implement technology to transform the entire operatinginfrastructure. These are trulyThe Psychological Profile of Architects: unimaginable times for ourArchitects put ideas into context to develop an overall industry.conceptual framework that makes sense of complexity. Bob NardelliArchitects enjoy flexibility to manage the ambiguity of changing Chryslerenvironments, and are demotivated by the disciplines andconstraints of structure.The risks: a lack of forceful push in persuading others to their ideas; Architects assume that powerful concepts rather than “Organisations struggle with major compelling arguments will set the agenda change. Not least because Architect proposing ideas for organisational change that lack a leaders might personally know what grounding in commercial realities they want to achieve, but fail to staying on the sidelines rather than seize the strategic communicate a compelling agenda initiative to push forward their ideas forcefully for change. And they lack commercial smarts in aligning technological innovation with business imperatives.”© AM Azure Consulting Ltd 2008 30
  31. 31. Architect leadership: exploiting the gains and avoiding the risksAs technology pushes on relentlessly and employmentpractices shift, Architects should be well positioned toorchestrate major scale transformation. Organisations whoaccelerate the speed with which new operating models andwork processes are introduced and embedded recognise thegains and the risks of Architect leaders.They: I can see the patterns. Peter Wood opt for “fit for purpose” solutions rather than embark on founder of Direct Line pioneering technology. Architects may relish grand schemes but highly innovative systems may be expensive and complex to implement encourage Architect leaders to raise their organisational profile and become more engaged in strategic debate improve the interface between the IT function and other work areas to encourage dialogue between Architects and other business leaders impose the rigours of commercial discipline and project management. Here organisations keep asking difficult questions to ground promising concepts in the detail of do-ability, deadlines and delivery© AM Azure Consulting Ltd 2008 31
  32. 32. Leadership development for long-term successExecutive development over the past 20-30 years has been Organisations committed to long-term success don’t aim tofundamentally flawed. Despite the massive investment in create “balanced” leaders but they do create leadershipmanagement training and business education, there is no balance across the executive population. And they do it by:indication it has delivered a generation of super-leaders. a proactive appointments process that reviews role requirements to deploy different leadership approaches atThe realities of human nature and personal change point different times, accepting there are few “strategic leadersinstead to different leadership styles, firmly rooted in different for all seasons” but leaders may have a limited shelf lifepersonality and motivational dynamics, each with distinctivestrengths and specific hazards. coordinating a robust forum for succession management to discuss current and emerging leaders against the strategic challenges the organisation faces, not simply review listings of “high potentials” and slot names within organisational charts using a variety of mechanisms (peer networking, conferences, projects, secondments) to create a shared understanding of business priorities, the contribution of different leaders and encourages versatility of business outlook valuing diversity of business outlook and ensuring promotion processes aren’t filling the leadership pipeline with the skills and mind-sets that drove past success making character a key plank within resourcing and development frameworks to build the levels of integrity and trust across the executive population that encourages genuine leadership cooperation and support© AM Azure Consulting Ltd 2008 32
  33. 33. Appendix 1: Assessment methods Business Challenges OPQ32i Motivational Questionnaire Hogan Development Survey Visionary Persuasive Variety Seeking Level of Activity Enthusiastic-Volatile Explorer Controlling Adaptable Achievement Shrewd-Mistrustful Builder Outspoken Forward Thinking Competition Careful-Cautious Lobbyist Independent Detail Conscious Fear of Failure Independent-Detached Integrator Outgoing Conscientious Power Focused-Passive Regulator Affiliative Rule Following Immersion Aggressive Trouble-Shooter Socially Confident Relaxed Commercial Outlook Charming-Manipulative Architect Modest Worrying Affiliation Vivacious-Dramatic Democratic Tough Minded Recognition Imaginative-Eccentric Caring Optimistic Personal Principles Diligent-Perfectionistic Data Rational Trusting Ease & Security Dutiful-Dependent Evaluative Emotionally Interest Behavioural Controlled Flexibility Conventional Vigorous Autonomy Conceptual Competitive Material Reward Innovative Achieving Progression Decisive Status© AM Azure Consulting Ltd 2008 33
  34. 34. Appendix 2: Business Challenges and personality correlates© AM Azure Consulting Ltd 2008 34
  35. 35. VISIONARY Occupational Personality HoganHIGHER Motivation Questionnaire Development Questionnaire Survey Innovative Flexibility Conceptual Autonomy Forward Thinking Variety Seeking Rule Following Charming-Manipulative Controlling Shrewd-Mistrusting Outspoken ConscientiousLOWER © AM Azure Consulting Ltd 2008 35
  36. 36. EXPLORER Occupational Personality HoganHIGHER Motivation Questionnaire Development Questionnaire Survey Competitive Commercial Outlook Vivacious-Dramatic Persuasive Status Confident-Arrogant Innovative Charming-Manipulative Caring Personal Principles Careful-Cautious Detail Conscious Diligent-Perfectionistic Rule Following Trusting WorryingLOWER © AM Azure Consulting Ltd 2008 36
  37. 37. BUILDER Occupational Personality HoganHIGHER Motivation Questionnaire Development Questionnaire Survey Persuasive Commercial Outlook Imaginative-Eccentric Innovative Emotionally Controlled Recognition Careful-Cautious ModestLOWER © AM Azure Consulting Ltd 2008 37
  38. 38. LOBBYIST Occupational Personality HoganHIGHER Motivation Questionnaire Development Questionnaire Survey Outgoing Status Vivacious – Dramatic Democratic Power Shrewd-Mistrustful Data Rational Fear of FailureLOWER © AM Azure Consulting Ltd 2008 38
  39. 39. INTEGRATOR Occupational Personality HoganHIGHER Motivation Questionnaire Development Questionnaire Survey Caring Affiliation Dutiful-Dependent Democratic Personal Principles Behavioural Personal Growth Data Rational Status Confident-Arrogant Innovative Material Reward Competitive Commercial Outlook IndependentLOWER © AM Azure Consulting Ltd 2008 39
  40. 40. REGULATOR Occupational Personality HoganHIGHER Motivation Questionnaire Development Questionnaire Survey Rule Following Material Reward Diligent-Perfectionist Detail Conscious Independent-Detached Conventional Careful-Cautious Data Rational Innovative Flexibility Vivacious – Dramatic Affiliative Autonomy Imaginative-Eccentric Persuasive Socially ConfidentLOWER © AM Azure Consulting Ltd 2008 40
  41. 41. TROUBLE-SHOOTER Occupational Personality HoganHIGHER Motivation Questionnaire Development Questionnaire Survey Data Rational Shrewd-Mistrustful Outspoken Diligent-Perfectionist Controlling Innovative Personal Imaginative-Eccentric Forward Thinking Principles Conceptual OptimisticLOWER © AM Azure Consulting Ltd 2008 41
  42. 42. ARCHITECT Occupational Personality HoganHIGHER Motivation Questionnaire Development Questionnaire Survey Conceptual Flexibility Persuasive Commercial Outlook Socially Confident PowerLOWER © AM Azure Consulting Ltd 2008 42
  43. 43. About usAM Azure Consulting Ltd works with a broad portfolio of clients we’re professionals but we’re not pompous. We are atin the design and implementation of on line services in the edge of the latest research and thinking in the field ofrecruitment and selection; management assessment, people management, but we’re not precious about thedevelopment and career management; performance “one thing”. We have some good ideas to help yourmanagement; and talent and succession management. organisation perform even better, but we know that you have some better ones, but want support in making themIf you are interested in our general approach to leadership work. We don’t impose the “solution”.assessment, development and talent management, or we design but we also implement. Our content, designaccessing the Business Challenges instrument, call us on: and technology can build cost effective solutions quickly. 44 (0) 1608 654007 or email Our consultancy experience of “real world” implementation will move things forward from initial concept to results rapidly. we start things to build momentum but we also follow through. Results come from the discipline of “making it stick”, of evaluation, learning and continual improvement. And we maintain ongoing relationships with our clients to keep achieving positive outcomes.© AM Azure Consulting Ltd 2008 43