AlEx™<br />The Line of Sight to Transition<br />Reducing Business Dependence on the Owner<br />Copyright PDS Group 2009 Al...
Why do so many initiatives fail?<br />60%+ of change initiatives fail in North America<br />70%+ of leaders expectations a...
Non-Financial Factors<br />Valued Most By Investors<br />Only 1  in 10 can consistently achieve their Strategy’s  full pot...
The elastic band of dependence<br />Organization<br />Owner<br />
What do you allow employees to do?<br />Habits of dependence they think is required:<br />It’s easier – “if I don’t make d...
Signs of misaligned expectations<br />“That’s not what I meant…”<br />“This is not what I asked for!”<br />	“My colleagues...
1<br />2<br />4<br />3<br />Can you Transition? Dependency Analysis<br />Hi<br />You ain’t<br />going<br />Anywhere!<br />...
Copyright PDS Group 2009 All Rights Reserved<br />Increased sales by<br /> 10%-15% in 30 weeks<br />Increased <br />Custom...
Genzink Steel Case Study<br /> “My aim was to transition out of operations while getting more visibility and insight about...
Genzink Steel Case Study (contd.)<br />AlEx™…..helped me:<br />Gain insight about the new people and those we had on-board...
Cliff & Tom Case Study<br />Cliff’s Expectations of  Tom<br />What Cliff Thinks Tom Expects of Him<br />12 <br />22 <br />...
 Four Blocker Problem<br />Copyright PDS Group 2009 All Rights Reserved<br />2 People<br />4 People<br />8 People<br />20 ...
Unresolved<br />Issues<br />PerformanceCriteria<br />Discards<br />New & Matched Expectations<br />Aligning Expectations P...
My Expectations<br />What I expect of people during the transition. Includes:<br />What I expect you to Keep doing . . . ....
Others’ Expectations<br />What I think others will expect of me during the transition, Including:<br />What things I think...
Keep, Start & Stop<br />In all planned change the minimum number of alignment components needed is:<br /><ul><li> What do ...
 What do they need to start doing
 What they must stop doing</li></li></ul><li>Keep Expectations<br />Ensure all PO&apos;s and subcontracting will be direct...
Start Expectations <br />Help people in the plant look at the big picture when planning the work at each station and be ab...
Stop Expectations<br />Become increasingly less involved in the MRO improvement process with me in an overview of the obje...
AlEx™ - The Alignment Process<br />2<br />4<br />1<br />3<br />Introduce<br />Components & Process<br />DevelopStrategic <...
Project Sizes<br />Royal Bank of Canada <br />IMS Health (Canada)<br />Qwest Telecoms<br />Genzink Steel<br />Turner Const...
Progressive DIs<br />Copyright PDS Group 2009 All Rights Reserved<br />
Cliff & Tom’s Four Blocker<br />Cliff’s Expectations of  Tom<br />What Cliff Thinks Tom Expects of Him<br />12<br />22<br ...
Cross HairsAlignment Issues identified <br />Q1<br />Q4<br />Q3<br />Q2<br />Copyright PDS Group 2009 All Rights Reserved<...
Independence Cross Hairs<br />Copyright PDS Group 2009 All Rights Reserved<br />
Right Focus <br />Right People<br />Right Responses<br />Achieving Successful Transition<br />
Over Channeling<br />Inside Groups<br />Managers<br />AlEx™<br />Content<br />Priorities<br />What’s your Line of Sight?<b...
Phased Competency Development - Priorities<br />Copyright PDS Group 2009 All Rights Reserved<br />
Initial Component Alignment Indices<br />Copyright PDS Group 2009 All Rights Reserved<br />
Current Component Alignment Indexes<br />Copyright PDS Group 2009 All Rights Reserved<br />
Cross Hairs -  Targeting on what counts<br />OAC’s as a percentage of total expectations – 11:2489=.44%<br />RFI’s /design...
Time<br />Getting Aligned – Weekly!<br />Requirements<br />ImprovingAlignment<br />Weekly<br />Alignment<br />Meetings<br ...
The Alignment Process<br />Agree<br />Evidence<br />Rate<br />Coach<br />Rate Again<br />AlEx™ Easy Entry<br />AlEx™ Cross...
Seven Alignment Challenges<br />Embedding<br />Change<br />Coaching<br />Strategically<br />Replicating <br />Success<br /...
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Aligning Expectation in a Business Transition.V1

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The role of realigning stakeholders and Key players that enable a business owner to transition out of their business

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  • At the start Overall Distraction (Misalignment) was about 85%After three months of alignment work we were to this point
  • Four additional months of work brought us here.
  • Our experience with a large construction company…OAC – Owner-Architect-Contractor meetingsRFI – Requests for informationCO – Change OrderNote the very small numbers of expectations related to these three issues and yet the Core Team placed a high value on these activitiesThese were key issues in project delay and cost overrun
  • Talk about fast cycle time versus monolithic approach RORI – Return on Resources Invested
  • Aligning Expectation in a Business Transition.V1

    1. 1. AlEx™<br />The Line of Sight to Transition<br />Reducing Business Dependence on the Owner<br />Copyright PDS Group 2009 All Rights Reserved<br />
    2. 2. Why do so many initiatives fail?<br />60%+ of change initiatives fail in North America<br />70%+ of leaders expectations arenot understood by their people about a major change – particularly when down-sizing<br />72% of people hired are terminated within 2 yrs due to lack of alignment<br />In the last 12 years, 2 in 3 failure rate <br />has not changed – <br />From Kotter (1996) to McKinsey (2009)<br />
    3. 3. Non-Financial Factors<br />Valued Most By Investors<br />Only 1 in 10 can consistently achieve their Strategy’s full potential <br />Factors<br />&lt;10%<br />Strategy Execution<br />&gt;90%<br />Management Credibility<br />Quality of Strategy<br />Innovativeness<br />Companies Not Delivering Consistently on Strategy<br />Attract Talented People<br />Implementation Challenge<br />Strategy Execution<br />Poor Strategy Execution - Impact<br />95% of employees don’t understand company strategy<br />50% of average employee’s time spent on non-productive work<br />50% more likely to have turnover<br />Sources: “The Balanced Scorecard” David P. Norton; Arthur Andersen estimate: Corporate Strategy Board research;<br />Measures That Matter,” Ernst & Young, LLP, Gates, Stephen, Aligning Strategic Performance Measures and Results<br />
    4. 4. The elastic band of dependence<br />Organization<br />Owner<br />
    5. 5. What do you allow employees to do?<br />Habits of dependence they think is required:<br />It’s easier – “if I don’t make decisions, I can’t make mistakes”<br />Lean on the founder because they fear change...who will take over after…On the plus side…..<br />Employee Involvement (EI) is greater in companies under 25 employees who typically have developed a working relationship with the owner: <br />Encourages commitment to managerial goals & the success of the enterprise<br />Increases profitability<br />
    6. 6. Signs of misaligned expectations<br />“That’s not what I meant…”<br />“This is not what I asked for!”<br /> “My colleagues don&apos;t seem to do what I expect...”<br />“They never tell us the whole story!”<br />“I can never do anything right!”<br />“They never send us information,<br /> we’re always sending information to them!”<br /> Sound familiar? <br />Copyright PDS Group 2009 All Rights Reserved<br />
    7. 7. 1<br />2<br />4<br />3<br />Can you Transition? Dependency Analysis<br />Hi<br />You ain’t<br />going<br />Anywhere!<br />They don’t<br />get it!<br />What you expect<br />You can<br />Transition!<br />You don’t<br />get it!<br />Independent<br />Lo<br />Lo<br />Hi<br />What they think you expect<br />
    8. 8. Copyright PDS Group 2009 All Rights Reserved<br />Increased sales by<br /> 10%-15% in 30 weeks<br />Increased <br />Customer Sat. Ratings<br />(4th – 1st)<br />Gross Revenues<br /> Up from $20m to $30m<br />AlEx™<br />Prevented<br /> Restructuring <br />Failures<br />Closing Rate<br />Improved by 66%<br />Isolated Hi<br /> Performing Teams<br />Factors<br />Delivered Building <br />OTIF & No Legal Issues<br />Increase Revenue<br />14% in 6 months<br />
    9. 9. Genzink Steel Case Study<br /> “My aim was to transition out of operations while getting more visibility and insight about GS people.<br />I needed an approach that could show:<br />Which people are that understand their job; <br />Which people need a little help to get the job done; <br />Who are the people who just don’t get it? <br />With bringing in new people quickly, an assessment was needed to see if the blend of new and existing team were able to sit down and understand what needs to get done. “Are they going to hook up?”<br />
    10. 10. Genzink Steel Case Study (contd.)<br />AlEx™…..helped me:<br />Gain insight about the new people and those we had on-board for some time <br /> Realize more than ever that many decisions and observations were assumptions....AlEx™ verified and challenged my assumptions <br /> Verify and test other peoples’ assumptions by mapping out the key inter-relationships…<br /> Depend on five key managers …which showed how well they hooked up and how I could get to the point of standing back.<br />
    11. 11. Cliff & Tom Case Study<br />Cliff’s Expectations of Tom<br />What Cliff Thinks Tom Expects of Him<br />12 <br />22 <br />What Tom Thinks Cliff Expects of Him<br />Tom’s Expectations of Cliff<br />13<br />4 <br />
    12. 12. Four Blocker Problem<br />Copyright PDS Group 2009 All Rights Reserved<br />2 People<br />4 People<br />8 People<br />20 People<br />
    13. 13. Unresolved<br />Issues<br />PerformanceCriteria<br />Discards<br />New & Matched Expectations<br />Aligning Expectations Process (ALEX™)<br />My Expectations of Others(MEOs)<br />What Others’ Think I Expect Them(OEMs)<br />AlignmentDiscussions<br />Copyright PDS Group 2009 All Rights Reserved<br />
    14. 14. My Expectations<br />What I expect of people during the transition. Includes:<br />What I expect you to Keep doing . . . . <br />What I want you to Startdoing . . . . <br />What I want you to Stop doing . . . . <br />
    15. 15. Others’ Expectations<br />What I think others will expect of me during the transition, Including:<br />What things I think others will expect me to Keepdoing . . . .<br />What I think others want me <br /> to Startdoing . . . . <br />What things I think others want me to Stop <br /> doing . . . . <br />
    16. 16. Keep, Start & Stop<br />In all planned change the minimum number of alignment components needed is:<br /><ul><li> What do people need to keep doing
    17. 17. What do they need to start doing
    18. 18. What they must stop doing</li></li></ul><li>Keep Expectations<br />Ensure all PO&apos;s and subcontracting will be directed through Matt G. for pricing review, final approval, communication and follow-up.<br />Consistently convey the message to troops that we have to work as a team to meet the schedule objectives that the customer expects - not as separate departments<br />Ensure that all processes and planning documents that I have developed are used consistently and continually improved<br />
    19. 19. Start Expectations <br />Help people in the plant look at the big picture when planning the work at each station and be able to quickly adapt the schedule according to the availability of parts and the work required at the next station. <br />Support me to work with the service people and sales people to change their attitude from &quot;us&quot; to &quot;we&quot; (cross functional problem solving)<br />All PO&apos;s or subcontracting of raw materials will be directed through Matt G and progress of any subcontracting will be followed up by Matt G <br />
    20. 20. Stop Expectations<br />Become increasingly less involved in the MRO improvement process with me in an overview of the objectives limitations and capabilities of the modified software <br />Stop being so impatient!<br />Overcoming the mindset &quot;These are our customers and we do every thing to take care of them&quot; with balancing their needs with our ability to do profitable work with on-time delivery.<br />Stop people finger pointing by getting them together to resolve issues when an incident occurs and consistently stress that this is not acceptable<br />
    21. 21. AlEx™ - The Alignment Process<br />2<br />4<br />1<br />3<br />Introduce<br />Components & Process<br />DevelopStrategic <br />Components<br />Select <br />Key Players &/or Focus Groups<br />Mission & Strategy<br />Coach Participants &Collect Their Expectations<br />6<br />Key Component Prioritization& Implications <br />Use CrossHairs Reports todevelop problem definitions<br />AlEx<br />5<br />7<br />9<br />8<br />Alignment Process<br />Brief, Train, Coach Rapid Improvement Cycles<br />(Based on Tracking TBDs, Discards, Complete & Unresolved Expectations)<br />Integration &Transfer<br />Capability<br />Knowledge<br />Skills<br />Capacity<br />Develop Metrics &<br /> Rewards per<br />Component<br />Copyright PDS Group 2009 All Rights Reserved<br />
    22. 22. Project Sizes<br />Royal Bank of Canada <br />IMS Health (Canada)<br />Qwest Telecoms<br />Genzink Steel<br />Turner Construction<br />20 participants/6 weeks<br />25 participants/10 weeks – Phase 1<br />12 participants/8 weeks – Phase 1<br />6 participants/14 weeks<br />12p/8w;86p/1yr; 100+/Ongoing<br />Copyright PDS Group 2009 All Rights Reserved<br />
    23. 23. Progressive DIs<br />Copyright PDS Group 2009 All Rights Reserved<br />
    24. 24. Cliff & Tom’s Four Blocker<br />Cliff’s Expectations of Tom<br />What Cliff Thinks Tom Expects of Him<br />12<br />22<br />4 <br />13<br />What Tom Thinks Cliff Expects of Him<br />Tom’s Expectations of Cliff<br />Copyright PDS Group 2009 All Rights Reserved<br />
    25. 25. Cross HairsAlignment Issues identified <br />Q1<br />Q4<br />Q3<br />Q2<br />Copyright PDS Group 2009 All Rights Reserved<br />
    26. 26. Independence Cross Hairs<br />Copyright PDS Group 2009 All Rights Reserved<br />
    27. 27. Right Focus <br />Right People<br />Right Responses<br />Achieving Successful Transition<br />
    28. 28. Over Channeling<br />Inside Groups<br />Managers<br />AlEx™<br />Content<br />Priorities<br />What’s your Line of Sight?<br />Between Groups<br />Direct Reports<br />Under Channeling<br />Copyright PDS Group 2009 All Rights Reserved<br />
    29. 29. Phased Competency Development - Priorities<br />Copyright PDS Group 2009 All Rights Reserved<br />
    30. 30. Initial Component Alignment Indices<br />Copyright PDS Group 2009 All Rights Reserved<br />
    31. 31. Current Component Alignment Indexes<br />Copyright PDS Group 2009 All Rights Reserved<br />
    32. 32. Cross Hairs - Targeting on what counts<br />OAC’s as a percentage of total expectations – 11:2489=.44%<br />RFI’s /design issues expectations as a total percentage of total expectations 116:2489=4.6%<br />CO’s as a total percentage of total expectations 128:2489=5.1%<br />Copyright PDS Group 2009 All Rights Reserved<br />
    33. 33. Time<br />Getting Aligned – Weekly!<br />Requirements<br />ImprovingAlignment<br />Weekly<br />Alignment<br />Meetings<br />Reduce Costs& Increase Revenue<br />Traditional<br />40<br />Copyright PDS Group 2009 All Rights Reserved<br />
    34. 34. The Alignment Process<br />Agree<br />Evidence<br />Rate<br />Coach<br />Rate Again<br />AlEx™ Easy Entry<br />AlEx™ Cross Hairs<br />AlEx™ Priority 5<br />AlEx™ Cross Hairs<br />New Expectations<br />Hold Receivers Accountable<br />Copyright PDS Group 2009 All Rights Reserved<br />
    35. 35. Seven Alignment Challenges<br />Embedding<br />Change<br />Coaching<br />Strategically<br />Replicating <br />Success<br />Removing<br />Distractions<br />Operational<br />Excellence<br />Aligning<br />Expectations<br />Rewarding <br />Change<br />39<br />Copyright PDS Group 2009 All Rights Reserved<br />
    36. 36. AlEx™<br />The Line of Sight to Success<br />Thank you<br />Copyright PDS Group 2009 All Rights Reserved<br />

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