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Leading and Managing Transformational Change

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Successful transformational change requires leaders throughout the organization to focus relentlessly and courageously in three areas: align the organization by building clarity and commitment, equip the organization for future success and maintain the diligence, courage and a bias for action to sustain the change

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Leading and Managing Transformational Change

  1. 1. PRESENTATION  TO   The  Conference  Board     Talent  Management  Conference       Axiom  Consul?ng  Partners   February  12,  2016   Leading & Managing Transformational Change
  2. 2. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  2   What we will cover today  Our  perspec7ves  on:   §  What  it  takes  to  lead  and  manage  transforma7onal  change   §  What  we  look  for  in  terms  of  leadership  readiness  for   transforma7onal  change   §  The  role  of  HR  in  transforma7on  
  3. 3. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  3   Axiom Consulting Partners helps leaders to align strategy, organization and talent to deliver sustainable and profitable growth We  help  clients  clarify  strategy       and  create  compe??ve  advantage:   §  Strategy  Clarifica7on   §  Leadership  Alignment   §  Value  Analysis  (Value  Tree  Mapping)   §  Growth  &  Sales  Effec7veness   §  M&A  Integra7on   We  help  clients  build   organiza?ons  designed  to   support  effec?ve  execu?on:   §  Organiza7on  Design  &  Restructuring   §  Governance  &  Opera7ng  Model   §  Business  Process  Improvement   We  help  clients  ensure  they  have     the  right  mix  and  quality  of  people,   deployed  in  the  right  roles:   §  Strategic  Workforce  Planning     §  Reward  Strategy  &  Compensa7on  Program  Design   §  Succession  Planning       §  Talent  Assessment  &  Selec7on  Systems   §  High  Poten7al  &  Execu7ve  Leadership  Development   §  Employee  Engagement  &  Value  Proposi7on        strategy   talent   organiza?on   For  further  informa.on,  go  to:  www.axiomcp.com   FIRM  SNAPSHOT   §  Founded  in  2005     §  Experienced  Prac77oners:  average  of     20  years  experience  as  consultants  and   corporate  execu7ves   §  Five  loca7ons:  Aus7n  TX,  Chicago,  New   York,  Washington,  D.C.,  and  Brussels  (EU)  
  4. 4. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  4   Companies and their leaders often make three common mistakes when undertaking transformational change 1.  Lack of Workforce Alignment—From Leaders to the Front Line a.  Too little emphasis and/or assumed to already be in place b.  Focus on gaining compliance versus commitment c.  Only appeal to the head (facts) and not the heart (motivation) 2.  Lack of Understanding of and Investment in Required Future Culture and Capability a.  Failure to step back and understand future culture and capability requirements (knowledge, skills, processes) and current gaps and their impact b.  Lack of business focus when identifying/developing new capability c.  Failure to invest (time, $$, effort) to close gaps d.  People are unclear about what support will be provided and what is expected of them in return (i.e., “the deal”) 3.  Lack of Focus, Mechanisms, or Courage to Sustain the Change a.  Change seen as a sprint versus marathon/event versus process b.  Focus only on what’s broken vs. recognizing success and dealing decisively with the rest c.  Failure to install mechanisms that maintain resilience and momentum and that reinforce required future culture and capability
  5. 5. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  5   Successful transformational change requires leaders throughout the organization to focus relentlessly and courageously in three areas Align   §  Strategy  and  Vision   §  Ra?onale  for  Change   §  Organiza?on  and  Individual  Expecta?ons   §  Net  Benefits   §  Roadmap   Equip   §  Organiza?onal  Capabili?es  and  Individual   Competencies   §  Organiza?on  Design   §  New  Cultural  Norms  of  Behavior   Sustain   §  Leadership  that  is  pa?ent  with  first  steps  and  ruthless   with  obstacles   §  Measurement  and  Reinforcement   §  Course  Adjustment  and  Fine  Tuning   LEADER  FOCUS  
  6. 6. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  6   Focus and effort across all three areas will shift over time as you seat the change and establish the “new normal” Rela?ve  %  of  ?me     on  each  priority   Time   ALIGN   EQUIP   SUSTAIN   Leadership  Focus  in  Transforma.onal  Change  ALIGN,  EQUIP,  SUSTAIN    All  are  necessary—none  are   sufficient  on  their  own    All  occur  throughout  — albeit  to  varying  degrees   depending  on  where  you  are   in  your  journey    %  of  ?me  spent  in  each  area   will  shi  over  ?me—that   said,  leaders  should   recognize  that  their  efforts   are  never  “done”  in  any  area    
  7. 7. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  7   Area   Key  Topics   Priori?es   Align   §  Strategy  and  Vision   §  Ra7onale  for  Change   §  Organiza7on  and   Individual  Expecta7ons   §  Net  Benefits   §  Roadmap   •  Engage  con7nuously  in  purposeful  and   engaging  conversa7on   •  Successively  increase  levels  of   specificity  and  decrease  levels  of   op7onality   •  Create  understanding  and  resonance   at  the  personal  level  (WII-­‐FM)   •  Show  a  realis7c  path  forward  and   candidly  describe  the  challenges  ahead   LEADER  FOCUS   Alignment efforts build both clarity and commitment
  8. 8. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  8   Area   Key  Topics   Priori?es   Equip   §  Organiza7onal   Capabili7es  and   Individual   Competencies   §  Organiza7on  Design   §  New  Cultural  Norms     of  Behavior   •  Know    and  act  on  what  drives  value   •  Translate  value  into  organiza7on   capabili7es  and  individual   competencies   •  Comprehensively  assess  how  current   design  and  culture  help/hinder   strategy   •  Brutally  and  honestly  assess  talent   gaps     •  Invest  with  focus  to  re-­‐align  talent     •  Fully  engage  workforce  in  organiza7on   and  culture  redesign   LEADER  FOCUS   Leaders must clearly understand the interplay among strategy, organization, talent, and culture to equip their organization for future success 8  
  9. 9. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  9   Sustaining the change requires diligence, courage, and a bias for action Area   Key  Topics   Priori?es   Sustain   §  Leadership   Measurement  and   Reinforcement   §  Course  Adjustment     §  Removal  of  Most   Persistent  Obstacles   •  Formal  changes  in  both  formal  and   informal  measures  and  rewards   •  Relentless  focus  on  reinforcing  and   promo7ng  new  ways  of  working  and   behavior   •  Swig  and  appropriate  consequences   for  destruc7ve  behaviors  and  ways  of   working   •  Make  regular,  honest  assessments  of   progress  on  all  the  required  changes  –   and  act  on  the  result   LEADER  FOCUS  
  10. 10. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  10   Five attributes we look for to understand a leader’s readiness to transform their organization—and themselves Honest  Reflec?on   §  Personally  as  a  leader   §  Their  track  record  of  performance   §  The  organiza7on  they  have  built  or  led   §  Their  leaders  and  employees   Courage   §  Speak  the  truth   §  Burn  bridges  behind  them     §  Change  course,  but  always  with  the   end  in  mind   §  Take  smart  risks   §  Make  tough  calls  on  processes  and   people,  especially  those  they  care   about  most   Confidence  and  Trust   §  To  say  “I  don’t  know”  and  “It’s  my   fault”   §  Lead  from  the  front  and  take  leaps   of  faith   §  Be  alone  at  7mes  during  the  journey   §  Trust  and  empower   Pa?ence   §  Engage  in  meaningful  conversa7on   (balance  learning  with  telling  and   selling)   §  Stay  the  course   §  Invest  for  the  long  term,  sustainable   return   1 2 3 4 Bold  Thinking  and  Bias  for  Ac?on  5
  11. 11. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  11   We believe HR plays a critical role in transformation §  Shape  the  strategy  and  help  surface   and  ar7culate  the  case  for  change   §  Help  leaders:   •  develop  and  apply  the  skill  of  leading   others  through  change   •  understand  the  interplay  among  strategy,   organiza7on,  talent  and  culture   •  translate  the  strategy  into  a  plan  that   clearly  ar7culates  future  workforce  needs   •  translate  the  strategy  into  tangible  and   personal  change  statements  that  build   employee  clarity  and  commitment   •  Communicate:  two-­‐way,  mul7-­‐channel   §  Help  leaders  and  employees  maintain   focus  and  faith  in  midst  of  what  may   feel  (and  be)  chao7c  and  fa7guing   §  Shine  a  light  on  the  organiza7on  and  its   leaders  and  do  it  with  facts  and  figures   §  Func7on  as  an  objec7ve  third  party   when  it  comes  to  tough  discussions  and   decisions  on  people,  organiza7on  and   culture,  and  insist  that  leaders  lead     §  Build  leader  understanding  of  changing   organiza7on  design  and  culture  and   lead  them  through  it     §  Design  and  implement  simple   processes  that  work  to  enable  leaders   to  equip  themselves  and  the  business   with  the  right  talent  and  organiza7on   §  Drive  the  changes  needed  in  formal   and  informal  consequences  to  sustain   the  transforma7on   Equip   Sustain  Align   and  
  12. 12. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  12   We keep an eye out for these signs that indicate a transformation is stalled or at risk of failure 1.  Old  ways  of  work  re-­‐emerge  without  challenge   2.  “Budget”  considera7ons  reduce  communica7ons  and  engagement     3.  Organiza7on  design  focused  on  boxes  and  lines  and  not  on   fundamentally  changing  the  work  and  how  it  gets  done   4.  Underes7ma7ng,  ignoring,  or  trea7ng  organiza7on  culture  as  if  it   were  a  ‘send  the  memo  and  it  shall  be  so’  issue   5.  Deferring/ignoring  tough  conversa7ons/decisions     6.  Senior  team  blames  lack  of  progress  on  the  levels  below  them  
  13. 13. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  13   Biographies
  14. 14. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  14   Don Ruse Expertise Don  Ruse  has  over  30  years  of  experience  helping  companies  improve  their   ability  to  execute  strategy.  Mr.  Ruse  has  worked  in  a  variety  of  global   organiza7ons  across  a  broad  spectrum  of  businesses,  including  considerable   experience  working  with  innova7on-­‐based  mul7na7onals  in  both  developed   and  emerging  markets.  Mr.  Ruse  specializes  in  helping  companies  clarify   business  strategy  and  improve  execu7on  through  changes  in  work  process,   job  design,  organiza7on  structure  and  organiza7on  governance.  He  also   specializes  in  helping  companies  ensure  they  have  the  right  number  and  type   of  talent  needed  to  execute  their  strategy  through  talent  management   processes  that  forecast,  develop  and  manage  talent.     Notable Achievements §  Developed  and  deployed  a  capabili7es-­‐based  business  strategy  and   organiza7on  for  a  division  of  a  global  technology  company  resul7ng  in   improved  technology  development,  technology  commercializa7on,  and  top   and  bonom-­‐line  growth.   §  Designed  and  implemented  new  work  processes  and  organiza7on   structure  for  the  North  American  Financial  Shared  Services  Center  and   Indian  Finance  Opera7ons  Center  of  a  global  diversified  technology   company  that  reduced  cycle  7me  and  total  cost  to  serve,  while  increasing   customer  sa7sfac7on  with  services  received.   §  Designed  a  corporate  strategy  and  structure  for  a  Japanese  Pharmaceu7cal   company  to  coordinate  and  govern  four  discrete  businesses  established  to   discover,  develop,  make  and  sell  drugs  within  the  NAFTA  market  resul7ng   in  increased  coordina7on  and  collabora7on  across  the  businesses,   improved  speed  to  market,  and  reduced  overall  infrastructure  costs   through  the  implementa7on  of  a  shared  services  model  covering  the  HR,   Finance,  IT,  and  Legal  func7ons.   §  Designed  and  implemented  a  Manufacturing  and  Engineering  strategy  and   global  organiza7on  structure  for  a  $4bb  division  of  a  diversified  global   technology  company  based  in  Tokyo  that  underwent  significant  and  rapid   matura7on  of  its  worldwide  product  markets.   §  Designed  and  implemented  large-­‐scale  organiza7on  transforma7on  for  a  property   and  casualty  company.    Worked  with  senior  leadership  to  develop  strategy  for   merging  two  businesses  into  one  geographic  business  unit,  define  strategy  and   direc7on  of  new  business  unit,  and  define  accountabili7es  for  execu7ve  team     and  next  level  down.     §  Developed  comprehensive  organiza7on,  change  management,  and  talent  strategy   to  support  mul7-­‐year  transforma7on  of  global  Finance,  IT  and  HR  organiza7ons   for  a  diversified  technology  company.  Worked  directly  with  senior  leadership  to   iden7fy  organiza7on,  change  management  and  people  implica7ons  of  moving  to     a  centralized  model  intended  to  halve  func7onal  costs  to  1.1%  of  revenue.   Professional Background Prior  to  joining  Axiom  in  2008,  Mr.  Ruse  spent  13  years  with  Sibson  Consul7ng.     Mr.  Ruse  helped  establish  and  co-­‐led  Sibson’s  Organiza7on  and  Talent  Prac7ce,   managed  Sibson’s  Raleigh  office  and  served  as  an  elected  Managing  Partner  of  the   firm.    Before  joining  Sibson,  Mr.  Ruse  spent  12  years  as  a  prac77oner  and  manager     in  the  areas  of  organiza7on  development,  human  resources  and  strategic  planning.     He  held  various  management  posi7ons  with  AlliedSignal,  Mobil  Oil,  The  Quaker  Oats   Company  and  Lennox  Interna7onal.   Education Mr.  Ruse  earned  his  MBA  from  the  TRIUM  Global  Execu7ve  MBA  program  offered   through  NYU  Stern  School  of  Business,  London  School  of  Economics  and  Poli7cal   Science,  and  the  HEC  School  of  Management,  Paris.    He  earned  his  BSBA  from   Bowling  Green  State  University.   Professional Affiliations / Published Works Mr.  Ruse  speaks  frequently  on  the  topics  of  Organiza7on  and  Talent.  His  most  recent   speeches  have  highlighted  how  companies  can  effec7vely  forecast  and  manage  talent   and  deploy  flexible  organiza7ons  in  developed  and  developing  markets.  He  has   shared  his  perspec7ves  with  such  organiza7ons  as  The  Conference  Board,  Human   Resources  Planning  Society,  and  Ins7tute  for  Interna7onal  Research.    Mr.  Ruse  is   frequently  published  and  his  work  has  included  ar7cles  in  Research  and  Technology   Management,  HR  Execu7ve,  and  Associa7on  for  Manufacturing  Excellence.  
  15. 15. Axiom  Consul7ng  Partners    |    Perspec7ves  on  Transforma7onal  Change    |    PAGE  15   Allan Ackerman Expertise Allan,  an  Axiom  partner,  brings  his  lifelong  interest  and  experience  in   business,  design,  leadership,  and  growing  organiza7ons  to  work  alongside   client  execu7ves  to  shape  and  implement  clear  strategies  that  create  a   compe77ve  advantage.  In  many  cases,  he  helps  clients  develop  and  apply  the   specific  organiza7onal  change  and  leadership  skills  needed  to  achieve   permanent  improvement  in  results.     Over  the  course  of  his  thirty-­‐year  consul7ng  career,  Allan  has  led  projects  and   advised  execu7ves  in  a  range  of  industries  across  Europe,  Asia,  and  the   Americas,  serving  both  large  global  firms  and  smaller  rapidly  growing   organiza7ons  in  the  consumer,  industrial  and  technology  sectors.   Allan’s  dis7nct  areas  of  exper7se  include:     §  Strategic  direc7on-­‐setng,  decision-­‐making,  and  organiza7on-­‐wide   strategy  implementa7on,  including  work  with  teams  to  implement   significant  strategic  ini7a7ves  in  a  range  of  topics  including  organiza7onal   workflow  and  structural  redesign   §  Alignment  of  en7re  organiza7ons,  their  execu7ve  teams,  and  a  cri7cal   mass  of  employees  during  pivotal  periods   §  Leadership  and  management  development  that  improves  organiza7onal   bench  strength,  shigs  the  culture  to  what  is  needed,  and  has  a  posi7ve   impact  on  the  company’s  performance   §  Coaching  senior  execu7ves  and  execu7ve  task  force  members  to  improve   their  effec7veness   Professional Background Allan  served  as  a  Managing  Director  at  RNW  Consul7ng  from  1997  to  September   2012,  when  RNW  merged  with  Axiom.  Allan  also  served  as  a  Vice  President  at  the   Forum  Corpora7on,  another  respected  interna7onal  consul7ng  firm,  where  he  first   started  helping  companies  develop  strategy,  execute  strategy  effec7vely,  develop   bener  leaders  and  drive  complex  technical  and  cultural  change.   Earlier  in  his  career,  Allan  served  as  President  and  Founder  of  Energyworks,  Inc.,  a   company  that  permanently  reduced  the  energy  consump7on  of  buildings  na7onwide   through  lines  of  business  including  sogware  development,  engineering  services,  and   construc7on.  Allan  has  led  teams  conduc7ng  applied  research  for  federal  agencies  in   several  fields,  most  prominently  residen7al  energy  conserva7on.  In  1977,  during   America’s  first  energy  crisis,  Allan  was  lead  author  of  a  guide  to  energy-­‐saving  home   improvements  that  sold  more  than  two  million  copies.   Education Allan  holds  a  Master  of  Architecture  degree  from  the  Harvard  Graduate  School  of   Design  and  a  Bachelor’s  degree  from  Dartmouth  College.   Professional Presence / Published Works Allan  is  an  author  and  co-­‐author  frequently  on  the  topics  of  change,  leadership,   organiza7onal  design,  and  how  to  orchestrate  strategies  integra7ng  all  three.   Five  7mes  a  year,  Allan  leads  high-­‐energy,  memorable  experien7al  sessions    at  the   University  of  Chicago’s  Booth  School  of  Business  for  Execu7ve  MBA  and  entering   MBA  students  in  leadership,  influence,  and  teamwork.  

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