GEAR UP and GROW
Sustainable Behavioral Change as a
      Competitive Advantage
Rate and Degree of Growth related to How Fast You
                   are able to...
                         • Develop    ...
Add People, increase
Complexity geometrically.                                    +
                                      ...
No matter how much financial power you
  have, or how promising your product or
service is, the critical constraint to grow...
Every company achieves Exactly the Results
it’s System & Structures allow it to Achieve.



 A system = an inter-related, ...
Every system works perfectly.



It always achieves the goals it’s designed to achieve.
If you want different results, you have to
          change the system.
“At some point in the
life cycle of virtually
every organization,
its ability to succeed
in spite of itself runs
out.” Bre...
“At some point in the
life cycle of virtually
every organization,
its ability to succeed
in spite of itself runs
out.” Bre...
Clarity


Alignment


Integration
Clarity


•   Strategy
•   Assumptions
•   Value Chain
•   Behaviors
Lost in (Strategic) Translation
What are the fuzzy words in your Strategy?
  In the way you manage performance?

         Lazy                        Cust...
When was the last time you tested your
            assumptions?
Drives Results.

                           Your Behavior...

                                      Drives Behavior.

    ...
Assumptions


Wrong Assumptions         Wrong Decisions



Wrong Decisions           Wrong Actions
Assumptions



Fail to challenge your assumptions, you may discover - too late -
                       they are out of da...
Conflicting Assumptions



   The path to organizational sluggishness & stagnation.

Where in your company’s causal linkage...
Increased
                        Spend more money
              Sales
                        (eg. on advertising)
      ...
ASSUMPTIONS


                        Increased
                                                  Spend more money
       ...
Alignment


Visible Structures
  • Policies, processes, rules, programs, functions, etc.



Invisible Structures
  • Inter...
Org Design for Top Performance: Clarifying, Aligning, & Integrating

            Input                        Transformati...
Are you allowed to fail?



  What happens when someone does fail?



What are the sources of fear in your company?
How well do you align you intentions with your behavior?




   “Let’s Collaborate & Create a Great Solution.*”

     * Bu...
•   How often does the leadership team get together to
    discuss the key issue? What happens during these
    discussion...
Individual              Business Functions, Value Chain




                   Integration


Systems Thinking             ...
a
                         brush
An elephant is. . .




                                   a    soft and
    a           ...
“For every complex problem there is a solution
that is simple, neat and wrong.”
                       H.L. Menken
New            What’s the Problem?
Behavior
                                               Solution


What are the Assumpt...
Create Shared, Deep
                Understanding of Current Reality


Adjust as Needed or
                               ...
Your Next Steps:
1. Challenge your Assumptions & Clarify your Strategy.

2. Challenge your Value Chain and Patterns of Beh...
Director of Amsterdam-based, internationally-operating
    specialty organization behavior & performance
     practice, de...
Slide Credits
Slide 17: Schwartz, P. (n.d.) Origins: The Map Rap. http://www.gbn.org/public/gbnstory/origins/maprap.htm.
S...
Sustainable behavior change as a strategic imperative
Sustainable behavior change as a strategic imperative
Sustainable behavior change as a strategic imperative
Sustainable behavior change as a strategic imperative
Sustainable behavior change as a strategic imperative
Sustainable behavior change as a strategic imperative
Sustainable behavior change as a strategic imperative
Sustainable behavior change as a strategic imperative
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Sustainable behavior change as a strategic imperative

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The critical constraint to business growth is not how much money you have but how well your company can create sustainable change in behavior - of leaders, of employees and teams, of customers, of suppliers.

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  • Sustainable behavior change as a strategic imperative

    1. 1. GEAR UP and GROW Sustainable Behavioral Change as a Competitive Advantage
    2. 2. Rate and Degree of Growth related to How Fast You are able to... • Develop & Effectively Implement Strategy / Initiatives • Innovate • Improve Performance & Productivity • Solve the Right Problems Really Well (& Avoid Solving the Wrong Problems Really Well) Business Performance ha via e ng rC e vio tag ha an Be Adv ine itive sta et d Su mp Co Time
    3. 3. Add People, increase Complexity geometrically. + 250 - 800 100 - 200 40 - 70 7 - 12 • Increase in interfaces 1- 5 Emplys creates increases in Transaction Costs & Mistake Costs Need: • Leadership • Systems & Structure
    4. 4. No matter how much financial power you have, or how promising your product or service is, the critical constraint to growth is how well you are able to create sustained change in behavior.
    5. 5. Every company achieves Exactly the Results it’s System & Structures allow it to Achieve. A system = an inter-related, interconnected set of components working together to achieve a common purpose.
    6. 6. Every system works perfectly. It always achieves the goals it’s designed to achieve.
    7. 7. If you want different results, you have to change the system.
    8. 8. “At some point in the life cycle of virtually every organization, its ability to succeed in spite of itself runs out.” Brein’s Law
    9. 9. “At some point in the life cycle of virtually every organization, its ability to succeed in spite of itself runs out.” Brein’s Law “The definition of insanity is doing the same thing over and over again and expecting different results.” Albert Einstein
    10. 10. Clarity Alignment Integration
    11. 11. Clarity • Strategy • Assumptions • Value Chain • Behaviors
    12. 12. Lost in (Strategic) Translation
    13. 13. What are the fuzzy words in your Strategy? In the way you manage performance? Lazy Customer-focused Uninspired “To be the best” Sell more. A ‘real go-getter’ Not fast enough. Be a Role Model. Be more commercial.
    14. 14. When was the last time you tested your assumptions?
    15. 15. Drives Results. Your Behavior... Drives Behavior. Your Structures... Drive Structures. Your Rules... Drive the Rules. Your Assumptions...
    16. 16. Assumptions Wrong Assumptions Wrong Decisions Wrong Decisions Wrong Actions
    17. 17. Assumptions Fail to challenge your assumptions, you may discover - too late - they are out of date.
    18. 18. Conflicting Assumptions The path to organizational sluggishness & stagnation. Where in your company’s causal linkages are its assumptions invalid or irrelevant?
    19. 19. Increased Spend more money Sales (eg. on advertising) Revenues A Conflict Profitable Company Control DON’T spend more Costs money
    20. 20. ASSUMPTIONS Increased Spend more money Sales (eg. on advertising) Revenues A Profitable Conflict Company Control DON’T spend more Costs money ASSUMPTIONS Which Assumptions are Invalid? Which Assumptions are Valid but Irrelevant?
    21. 21. Alignment Visible Structures • Policies, processes, rules, programs, functions, etc. Invisible Structures • Interpersonal relationships, power dynamics, conflict, etc.
    22. 22. Org Design for Top Performance: Clarifying, Aligning, & Integrating Input Transformation Output Market Context • Customer Requirements Managing the Work • Competitive Pressure The Way of Working • • Org Structure • Market Pressure Tasks • Governance: Decision-Making & Conflict Resolution • Social, Political, • Job Design & Tools • Accountabilities & Responsibilities Environmental, Legal • Work Flow & Value Chain • Measurement & Feedback system • Products Expectations & • ‘Embedded’ Information & Feedback • Compensation & Rewards (including non-monetary) Constraints • Improvement (Waste - , Revenue+) • Alignment / linkages in goals across levels and teams • Financial Results • Boundary Management • HR Management (selection, training, etc) • Inventory Management • Performance Improvement Process • Impact on Society Resources & Environment • Suppliers, Competencies, Requirements, Constraints Critical Management Tasks • Customer • Raw Materials Engagement • Employees Product Development Problem-solving task, running from concept • Resource Utilization Behavior, Capabilities, through detailed design and engineering to Perceptions production launch. Flow/Concurrency • Adaptability/Agility Organizational DNA • Vision & Purpose • Executive Team Cash Management • Employee • Values, Assumptions, • Leaders Order Taking •Assumptions •Leadership System Information Management task, running Engagement Norms •AR/AP Policies •Succession from order-taking through detailed scheduling to • History & Previous •Sales Behavior • Teams delivery. Pull Experience • Managers • Employees Production Physical transformation task, proceeding from raw materials to a finished product in the • Waste hands of the customer. Flow Strategic Context • Obsolete policies, • Strategic Assumptions procedures, • Aspirations process steps, • Strategic Decisions & Information & Informal Organization • Actual (versus Espoused) Behavior measures, etc. Objectives Knowledge • Value Network (Informal Work, Communication, • Tactical Plans & • Communication processes and Problem-solving, value creation) & Key Nodes Objectives patterns - formal • Informal Roles • Process to develop & • Information exchange • Informal Rewards agree on strategic & • Knowledge capture, storing, and • Power & Politics tactical plans sharing • Inter- & Intra-group relations; Worth & Security • Technology as connector and enabler • Communication patterns • Artifacts
    23. 23. Are you allowed to fail? What happens when someone does fail? What are the sources of fear in your company?
    24. 24. How well do you align you intentions with your behavior? “Let’s Collaborate & Create a Great Solution.*” * But I’ll give you only the info I think you need. I’m after that promotion / bonus. And no way am I going to let you screw this up. Etc.
    25. 25. • How often does the leadership team get together to discuss the key issue? What happens during these discussions? • Do people in the leadership team share a common purpose, language, and mission? • Are there any gaps in awareness and knowledge? • Is there a problem with Silo’s across the enterprise? • Are there multiple views of the issues and possible resolutions?
    26. 26. Individual Business Functions, Value Chain Integration Systems Thinking Team Behavior
    27. 27. a brush An elephant is. . . a soft and a rope mushy snake a tree trunk
    28. 28. “For every complex problem there is a solution that is simple, neat and wrong.” H.L. Menken
    29. 29. New What’s the Problem? Behavior Solution What are the Assumptions & Beliefs Supporting the What’s the Behavior? Structures & Systems? What are the Structures & Systems supporting the Behavior?
    30. 30. Create Shared, Deep Understanding of Current Reality Adjust as Needed or Develop a Hypothesis Standardize Act Plan Check Do Measure the Results Implement the Plan
    31. 31. Your Next Steps: 1. Challenge your Assumptions & Clarify your Strategy. 2. Challenge your Value Chain and Patterns of Behavior. 3. Challenge your Visible & Invisible Systems and Structures. 4. Challenge how you use your Network; broaden your ‘eco-system.’ 5. Create Improvement Plan - Clarify, Align, Integrate. 6. Implement the Plan. Provide new training if needed. 7. Check and Adjust....religiously and quickly. 8. Coach, Teach, Improve the System.
    32. 32. Director of Amsterdam-based, internationally-operating specialty organization behavior & performance practice, designing companies to unleash top performance, hidden capital, and energy. Joe Torrez A guide to... Strengthening your Performance Torrez bv Minimizing your Performance Risks Realizing your Worth +31 6 3430 5420 Improving your Value Fueling your Growth Joe@Torrezbv.com Building a Healthy, Sustainable Business www.Torrezbv.com Supporting... Twitter/torrezbv Strategy Development Strategy Implementation Performance Improvement Problem Solving Merger & Acquisition / Integration Support
    33. 33. Slide Credits Slide 17: Schwartz, P. (n.d.) Origins: The Map Rap. http://www.gbn.org/public/gbnstory/origins/maprap.htm. Slide 19: Napoleon’s Withdrawal from Russia, painting by Albert Northen. Slide 24: F1 Car. © Will Evans, iStockphoto.com. Slide 24: Red Tricycle. © Kristen Stewart, Dreamstime.com. Slide 24: used with permission of Joshua Torrez. Slide 24: Glancing of Racing Driver. © Fouquin Christophe, Dreamstime.com. Slide 24: Hispanic soccer of football player. © Suprijono Suharjoto, Dreamstime.com. Slide 25: David Hannah, David Nadler Slide 27: The Emperor Has New Clothes Apologies to those I have forgotten. Not intended for commercial use.

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