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Real Strategy or Corporate Theatre with Roger Martin

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Nordic strategy summit 2016 with Roger Martin on eliminating Corporate Theatre and working with real strategies for real people.

Implement Consulting Group and Roger Martin are on a quest to call the bluff on Corporate Theatre – a common state in many large organisations where managers play carefully choreographed roles fighting for resources and status, but often leave the real strategic issues untouched.


Why is that topic so important for us?

Because when we succumb to just playing “the budget game”, the tough prioritisations never really openly surface. Or when we play “the strategy game”, the most difficult strategic choices are never openly explored. So when Corporate Theatre takes over, conversations simply become less explorative, less choiceful and less engaging – and that puts a brake on agility and innovation.

We want to help pull things in a different direction – a direction where real conversations and choices dominate corporate life.

Published in: Business

Real Strategy or Corporate Theatre with Roger Martin

  1. 1. 1@implcg #implsummit REAL STRATEGY or CORPORATE THEATRE Nordic strategy summit 2016: Roger Martin
  2. 2. 2 #implsummit @implcg
  3. 3. 3@implcg #implsummit PROGRAMME 09:00 Welcome and introduction 09:10 The Corporate Theatre challenge? 09:30 Playing to Win – Getting REAL on strategy 10:10 Break 10:30 Corporate Theatre detox session – Discussion in small groups 11:00 Panel discussion on key paradoxes in “Getting REAL” 11:20 Building choice-making capabilities – A key enabler for winning 12:00 End of workshop and lunch
  4. 4. 4 #implsummit @implcg FACTS ON STRATEGY & CHANGE
  5. 5. 5@implcg #implsummit 85% of CEOs expect more turbulence and complexity in the years ahead. ABOUT change
  6. 6. 6 #implsummit @implcg 90% of the change agenda happens in “projects”. 33% of all critical change projects are successfully implemented. 44% don’t understand the change they are expected to make. 38% understand it, but don’t agree with it. 14% of all employees in organisations consider themselves fully engaged. ABOUT change projects
  7. 7. 7@implcg #implsummit 58% of leaders have a top-down approach to strategy with limited involvement of employees. 70% of “not successful” transformations were planned by 10 or fewer people. The main barrier to execution success is: “Creating meaningfulness to front-end employees”. 30% of employees receive no information about how to execute the strategy. ABOUT strategy 50% of leaders can explain their company strategy, priorities and must-win battles.
  8. 8. 8 “Top management mindset” and “top-down hierarchy” are evaluated a key barrier to successful change, but not by top management respondents. ABOUT leadership #implsummit @implcg
  9. 9. 9@implcg #implsummit Sources for Facts on Change ›› Black, J. S. (2013). It starts with one: Changing individuals changes organizations. Pearson FT Press. ›› Cabrey, T. S., Haughey, A., Cooke-Davies, T. (March 2014). “PMI’s pulse of the profession in-depth report: Enabling organizational change through strategic initiatives”. Project Management Institute. www.pmi.org/~/media/PDF/Publications/Enabling-Change-Through-Strategic-Initiatives.ashx ›› “Capitalizing on complexity” (study, May 2010). IBM Institute for Business Value. http://public.dhe.ibm.com/common/ssi/ecm/gb/en/gbe03297usen/GBE03297USEN.PDF ›› Ewenstein, B., Smith, W., Sologar, A. (July 2015). “Changing change management”. McKinsey Company. www.mckinsey.com/insights/leading_in_the_21st_century/changing_change_management ›› “Global executive survey on culture and change management” (2013). The Katzenbach Center. ›› “How to beat the transformation odds” (survey, April 2015). McKinsey Company. http://www.mckinsey.com/insights/organization/how_to_beat_the_transformation_odds ›› “Innovation survey” (2009). Bain Company. ›› Jorgensen, H., Bruehl, O., Franke, N. (August 2014). “Making change work … while the work keeps changing: How change architects lead and manage organizational change”. IBM Institute for Business Value. http://public.dhe.ibm.com/common/ssi/ecm/gb/en/gbe03618usen/GBE03618USEN.PDF ›› Rick, T. (May 2011). “Top 12 reasons why people resist change”. http://www.torbenrick.eu/blog/change-management/12-reasons-why-people-resist-change/ ›› “Risk history survey” (2013). Bain Company. ›› Sull, D., Homkes, R., Sull, C. (March 2015). “Why strategy execution unravels – and what to do about it. Harvard Business Review. https://hbr.org/2015/03/why-strategy-execution-unravelsand-what-to-do-about-it ›› “Thought leaders survey” (2013). Implement Consulting Group. ›› Towers Perrin (2014). Employee engagement/global workforce study.
  10. 10. 10 #implsummit @implcg CHALLENGE? THE Corporate Theatre
  11. 11. 11@implcg #implsummit Corporate Theatre Steering committee Performance management Strategy process Budget process
  12. 12. 12 #implsummit @implcg The management model for “efficiency” is not appropriate for “innovation”. Paradigm shift Passion vs. compliance
  13. 13. 13@implcg #implsummit No. 1 challenge Democratise choice-making Empower, engage, choice cascade, self-management, distributed authority and trust in the collective intelligence.
  14. 14. 14 #implsummit @implcg No. 2 challenge Humanise the organisation Realness, work is fun, bring all of who we are to work, real conversations, communities of passion, leaders as social architects of meaning.
  15. 15. 15@implcg #implsummit More speed More authenticity More passion More impact More agility REALCHANGE REALSTRATEGY
  16. 16. 16 #implsummit @implcg Reinvent “project management”: On average, projects can deliver double the impact in half the time.
  17. 17. 17@implcg #implsummit 95% of managers are dissatisfied with their performance management systems Performance management 59% of employees feel that reviews are not worth the time invested 60% of companies report that their annual budget targets become obsolete by the second quarter 46% of senior finance professionals believe their budget is a politically agreed number – not linked to operational reality Budget 11% of senior executives of companies with more than $1 billion in sales believe strategic planning is worth the effort Strategy
  18. 18. 18 ROGER MARTIN Playing to Win – Getting REAL on strategy #implsummit @implcg
  19. 19. 19@implcg #implsummit Strategy versus Corporate Theater Implement Consulting Group @RogerLMartin
  20. 20. 20 #implsummit @implcg Copyright © 2016 Roger L. Martin STRATEGY IS THE ANSWER TO 5 QUESTIONS What is our winning aspiration? Where will we play? How will we win? What capabilities must we have? What management systems are required?
  21. 21. 21@implcg #implsummit Copyright © 2016 Roger L. Martin THE HEART OF STRATEGY What is our winning aspiration? Where will we play? How will we win? What capabilities must we have? What management systems are required?
  22. 22. 22 #implsummit @implcg Copyright © 2016 Roger L. Martin STRATEGIC PLANNING Study Lots of Things Develop Saleable Options Forecast Financials for Options Get Consensus of Key Managers Polish the Proposal Sell Hard to Senior Management Tell the Organization to Execute the Plan
  23. 23. 23@implcg #implsummit Copyright © 2016 Roger L. Martin STRATEGY CHOICE MAKING Problem Reframe the Problem as a Strategic Choice Possibility 1 Possibility 2 Possibility 3 Possibility 4 Possibility 5 BarriersTestsDecide What Would Have to Be True?
  24. 24. Copyright © 2016 Roger L. Martin MAKING CHOICES IN ORGANIZATIONS What is true? What would have to be true? #implsummit @implcg24
  25. 25. 25@implcg #implsummit
  26. 26. 26 #implsummit @implcg Corporate Theatre
  27. 27. 27@implcg #implsummit THEATRE  A lengthy 3+ month process  Effective lockdown of the organisation – everybody is “doing the budget”  Detailing sales forecasts to an individual product level on a 3-year horizon – in a fictional search control  BU managers are routinely sandbagging for resources  Admin- light  Open and reasoned prioritisation across BUs  Focused on the most important choices  Revealing implicit assumptions The budget process
  28. 28. 28 #implsummit @implcg THEATRE  The 3-year ritual – our current strategy period is running out, so we need a new one …  BU managers develop saleable options – then polish the slide deck and sell hard to senior management, hoping for a minimum of input  Focus on theoretical where-to-play “gameboard” discussions - detached from how-to-win  Fictional business cases to satisfy upper-level management  Many discussions – no real choices  Slow one-size-fits-all decision-making style  Obsessive, yet unfocused, data analyses  Strategy for the few – no involvement or engagement – entirely separated from execution  Leaves the organisation waiting in apathy for the new strategy  PowerPoint fatigue – town hall “telling” meetings The strategy process
  29. 29. 29@implcg #implsummit  Conscious cascading of choices between levels  Curious conversations  Assumption- heavy – focused on the strategic logic  Strategising when circumstances change  Prototyping “what could that option look like?”  Choice- focused  How-to-win- focused  Focused deep dive analyses The strategy process  Separate non-reversible from reversible decisions
  30. 30. 30 #implsummit @implcg THEATRE  Focused on deliverables  Unclear vision of impact on behaviour and business  No subject matter expertise  Half-hearted resource allocation  Leaders are far away from the project  PMO is tick-marking templates  Watermelon syndrome in steering committee  Scope freeze – even when circumstances change Project governance  Leaders deeply involved  Choice- focused  Projects are impact- driven  Steering committee truly removes roadblocks  Daring to re-scope
  31. 31. 31@implcg #implsummit THEATRE  Backward-looking and focus on lagging indicators, typically financial  Problem-focused dialogue – why didn’t we meet the targets or milestones?  Exclusively focused on running the business  Curious dialogue about root causes  Focused on helping  Focused on leading indicators  Appreciative – builds on what works Business review
  32. 32. 32 #implsummit @implcg Hardwiring Softwiring Do we have real and meaningful conversations in key touchpoints? Do our core processes embody speed, impact and engagement? Corporate Theatre detox – two lenses
  33. 33. 33@implcg #implsummit Slow and complex Fast and simple SPEED HARDWIRING Are your core processes … The acid test Do our key processes drive passion and engagement? ENGAGEMENT Fun and meaningful Energy- draining Compliance- focused Choice- focused IMPACT AGILITYRigid and bureaucratic Flexible and helpful
  34. 34. The acid test Do we look forward to meetings and leave with energy and engagement? An exchange of points of view A curious conversation CONVERSATION EXPERTISE Filled with subject matter mastery Filled with incompetence Problematising and mistrusting Appreciative, warm and caring RELATIONS ENERGY Disengaged Engaged SOFTWIRING Are your key meetings … #implsummit @implcg34
  35. 35. 35@implcg #implsummit Corporate Theatre diagnosis 1. Scan the list of processes under “hard-wired systems” – and select the 3 most relevant ones for your company 2. Make a scoring of each of these processes on the four dimensions 3. Reflect for each process on what the main barriers are for you to get more Real – and less Theatrical 4. If time permits, repeat the same steps when diagnosing meetings under “soft-wired systems” 5. Share and discuss reflections with the person next to you
  36. 36. 36 #implsummit @implcg DIAGNOSING THE HARD-WIRED SYSTEM 1. Strategy process 2. Budget process 3. Business review process 4. Performance management process 5. Market guidance process 6. Project governance process 7. Product development process 8. Production capacity planning 9. Sales and marketing process Speed Slow and complex Fast and simple 1 5432 Engagement 1 5432 Energy- draining Fun and meaningful Impact 1 5432 Compliance- focused Choice- focused Agility 1 5432 Rigid and bureaucratic Flexible and helpful
  37. 37. 37@implcg #implsummit BARRIERS 1. Strategy process 2. Budget process 3. Business review process 4. Performance management process 5. Market guidance process 6. Project governance process 7. Product development process 8. Production capacity planning 9. Sales and marketing process
  38. 38. 38 #implsummit @implcg DIAGNOSING THE SOFT-WIRED SYSTEM 1. Market guidance meetings 2. Board meetings 3. Strategy meetings 4. Budget meetings 5. Business review meetings 6. Business unit meetings 7. Steering committee meetings 8. Project meetings 9. Performance appraisal meetings An exchange of points of view A curious conversation 1 5432 Conversation 1 5432 Filled with incompetence Filled with subject matter mastery Expertise 1 5432 Problematising and mistrusting Appreciative, warm and caring Relations 1 5432 Disengaged Engaged Energy
  39. 39. 39@implcg #implsummit BARRIERS 1. Market guidance meetings 2. Board meetings 3. Strategy meetings 4. Budget meetings 5. Business review meetings 6. Business unit meetings 7. Steering committee meetings 8. Project meetings 9. Performance appraisal meetings
  40. 40. ROGER MARTIN Building choice-making capabilities – A key enabler for winning #implsummit @implcg40
  41. 41. 41@implcg #implsummit Leadership in Strategy Implement Consulting Group @RogerLMartin
  42. 42. 42 #implsummit @implcg Copyright © 2016 Roger L. Martin STRATEGY IS THE ANSWER TO 5 QUESTIONS What is our winning aspiration? Where will we play? How will we win? What capabilities must we have? What management systems are required?
  43. 43. 43@implcg #implsummit Copyright © 2016 Roger L. Martin CORPORATE STRATEGY CHALLENGE: NESTED CASCADES How to Win Management Systems Winning Aspiration Capabilities Where to Play How to Win Management Systems Winning Aspiration Capabilities Where to Play How to Win Management Systems Winning Aspiration Capabilities Where to Play How to Win Management Systems Winning Aspiration Capabilities Where to Play How to Win Winning Aspiration Where to Play Capabilities
  44. 44. 44 #implsummit @implcg Copyright © 2016 Roger L. Martin MAKING CHOICES ACROSS MULTIPLE CASCADES 1. Make only the set of choices you are more capable of making than anyone else 2. Explain the choice that has been made and the reasoning behind it 3. Explicitly identify the next downstream choice 4. Assist in making the downstream choice, as needed 5. Commit to revisit and modify the choice based on downstream feedback
  45. 45. 45@implcg #implsummit @implcg #implsummit
  46. 46. 46 #implsummit @implcg KEY LEARNINGS AND TAKEAWAYS FROM TODAY’S SESSIONS
  47. 47. 47@implcg #implsummit IDEAS THAT WE SHOULD APPLY TO OUR ORGANISATION
  48. 48. 48 Notes #implsummit @implcg
  49. 49. 49@implcg #implsummitImplement Consulting Group
  50. 50. 50 #implsummit @implcg
  51. 51. 51@implcg #implsummitImplement Consulting Group
  52. 52. 52 #implsummit @implcg implementconsultinggroup.com @implcg #implsummit

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