7. Good to Great
Comparison Companies placed a great effort in
managing change and creating “alignment” yet
Did not transform
Good to Greats didn’t spend time on overt
managing change yet they
Did transform….
8. Found in Comparison Companies
Absent in GTG Companies
Larger than life, charismatic leaders
The right executive compensation strategy
Great strategy per se
Mergers/acquisitions
Technology and technology driven change
Major initiatives with grand kick-off
Motivating people or creating alignment
9. Found in All Good to Great Companies
Absent in Comparison Companies
“Level 5” Leadership
First Who….Then What
Confront the Brutal Facts (Yet Never Lose Faith)
The Hedgehog Concept (Simplicity)
Culture of Discipline
Technology Accelerators
10. First Who ….Then What
GTG Leaders began by
Get the right people on the bus
Get the wrong people off the bus
Get the right people in the right seats
The “right person” is more about “who they are”
Innate Capabilities (Talents)
Character Traits
Than…
Knowledge, Skill or Experience
11. “How to” First Who
“Good to Great” provided the observation
Lacked an explicit “How to”
1. Create a Case for Change
2. Complete Assessment
3. Take Action to Re-Shape
4. On-going Talent Management
13. Define a Role, Define the Talent
Talent and traits define the potential axis
Innate ability and personality
How strong is the fit for the role?
How strongly to they match the values you want?
Performance
The results they generate in the role
How they can affect the performance of others?
How well do Leaders impact the performance of their team ?
16. Initial Assessments
Manager places individuals into 9-Box
Box for each relevant role
Maybe just Manager & Individual Contributors
Sanity Checks
Does the aggregate team view match the overall performance?
Do relative placements between individuals make sense?
19. Live Sessions
Leader plus Trusted Input Providers
A Case for Change
What could performance be with a great team?
What are the consequences of leaving things alone?
The Leader starts by describing
How group as a whole is performing
Review placement one person at a time
Others Provide
Different perspectives on the individual
Sanity check in relative rankings
Devil’s Advocate
20. Mental Shifts Needed
Colleagues provide objective feedback
NOT
“Good Person, Bad Person”
“Like or Dislike”
INSTEAD
“Fit or Not Fit”
“Perform or Not Perform”
21. Between Live Sessions
Managers “take more data”
Shift from “benefit of the doubt”
to seeing patterns of undesirable behaviors
Recognize how undesirable behaviors effect rest of the
team/organization
Gain greater appreciation for some of the right behaviors
22. Taking Action
More difficult due to the nature of the work
Confronting performance issues
Addressing miscasts
Setting higher standards = raising the bar
Easier to leave well-enough alone
Many times you want to back out
Must have conviction to see it through
25. Miscast Role Player Trusted Pro
Under Performer Core Employee High Performer
PERFORMANCE
POTENTIAL
Low High
LowHigh
Talent and potential not
being fulfilled. Performance
management essential.
Solid performance that is
essential to any team. The
foundation of a high-
performance team.
Strong contributor that
reaches their potential.
Reward and invest in skill.
Potential mentors found in
this group.
High Potential
Top tier talent for their role
Come to work plugged in.
Aim at best opportunities,
reward, recognize &
promote. Avoid miscasting
trap.
Development Opportunity
High potential remains
somewhat untapped.
Valuable talent to be
cultivated through
challenging and coaching.
Dilemma
High potential hidden
behind poor performance.
Must coach or intervene to
turn around. Potential to go
either way.
Talent is a mismatch for
the role. Either find suitable
role or develop path for
exit.
Usually specialized talents
for narrower set of
assignments. Keep
focused within their
bandwidth.
Specialized or expert
talent. Reaching potential
within their craft. Reward,
retain and use them in
developing skill of others.
7
1
23
17
4
2
16
13
20
6
21
18
5
9
12 22
19
3
8
15
10
14
11
Miscast Role Player Trusted Pro
Under Performer Core Employee High Performer
PERFORMANCE
POTENTIAL
Low High
LowHigh
Talent and potential not
being fulfilled. Performance
management essential.
Solid performance that is
essential to any team. The
foundation of a high-
performance team.
Strong contributor that
reaches their potential.
Reward and invest in skill.
Potential mentors found in
this group.
High Potential
Top tier talent for their role
Come to work plugged in.
Aim at best opportunities,
reward, recognize &
promote. Avoid miscasting
trap.
Development Opportunity
High potential remains
somewhat untapped.
Valuable talent to be
cultivated through
challenging and coaching.
Dilemma
High potential hidden
behind poor performance.
Must coach or intervene to
turn around. Potential to go
either way.
Talent is a mismatch for
the role. Either find suitable
role or develop path for
exit.
Usually specialized talents
for narrower set of
assignments. Keep
focused within their
bandwidth.
Specialized or expert
talent. Reaching potential
within their craft. Reward,
retain and use them in
developing skill of others.
1
23
17
2
16
13
20
21
18
5
9
22
19
3
8
15
10
14
11103 100
101
26. Keeping the Culture Healthy
Three philosophical
Hiring: When in doubt, keep looking
When you need to make a people change, act
Put your best people on your biggest opportunities
Management routines (9-Box)
Subject of 1:1 between managers
Quarterly deep dives
27. Qualitative Outcomes
Feedback is more common and constructive
Standards are more consistent and higher
Role fit is higher on average and
Development focuses on strengths and not weaknesses
Engagement is higher
Performance is higher
28. Success
Change ready
The Right
People
”Then What” = Buy-In
>> In this together
Who “BEFORE” What
More intrinsic force
to get through the
curve
>> Face Brutal Facts
Bandwidth to “invest”
29. 2005 Supply Chain &
Ops
2003 R&D
2002 Process & Mfg
Eng
2001 Quality
Post-Big Bertha Boom
NPI issues: cost overruns, short supply and escapes
Assembly and Material Costs stagnate for years
Market Share & Profitability wrong direction
After
Launches on-time, at cost and in-full
Assembly costs hit record lows
Warranty returns driven to all-time lows
Margin improvements drive record EPS in 2007
Employees comment “Just like the Eli Days”
Large body of improvements sustained today
30. Just stories about other companies
Can’t apply to my span of control
We’re good enough
This is ……..BUNK
This is Way TOO HARD
Some are still thinking….
And the “Go To” Fact
31. “For every nine people who denounce innovation only one will encourage it...
For every nine people who do things the way they have always been done,
only one will ever wonder if there is a better way.
For every nine people who stand in line in front of a locked building, only one
will ever come around and check the back door.
Our progress as a species rests squarely on the shoulders of that tenth person.
The nine are satisfied with things they are told valuable. Person 10 determines
from himself what has value.”
The 10th Person
Za Rinpoche-The Backdoor to Enlightenment
