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Building credibility in the
       boardroom
         David Cotton
      www.davidcotton.co.uk
Evergreen Project
     Company categories
             Outperformed peers
              Outperformed peers
Winner       10-fold return to investors
              10-fold return to investors


             Consistently underperformed
              Consistently underperformed
 Loser       against competitors
              against competitors



             Started poorly; improved
              Started poorly; improved
Climber      dramatically on implementing
              dramatically on implementing
             4+2 formula
              4+2 formula


             Began decade well, then fell far
Tumbler       Began decade well, then fell far
             behind
              behind
                              Nohria, Joyce and Roberson
              2
Evergreen Project
     The 4+2 formula
                            Talent


Strategy        Execution
                            Innovation



                            Mergers &
                            Partnerships
Culture         Structure

                            Leadership


            3
Strategy defined
Strategy is the direction and scope of an
organisation over the long term, which achieves
advantage in a changing environment through
its configuration of resources and competences
with the aim of fulfilling stakeholder
expectations
                                 Johnson, Whittington and Scholes




                       4
Cameron
                                        and



                                                                 Flexibility and discretion
                                      Quinn - 1




    The Clan                                                                                                 The Adhocracy




                                                                                                                                  External focus and differentiation
                                              Friendly and sharing family                     Dynamic and entrepreneurial
                                     Leaders are ‘parents’ or mentors                    Leaders are innovative and risk takers
Internal focus and integration


                                                    Loyalty and tradition                      Experimental and inventive
                                                     High commitment                                 Leading edge
                                    Emphasis on personal development                    Emphasis on growth and new resources
                                 Sensitivity to internal and external clients             Success is new services or products
                                             Participation and consensus                    Individual initiative and freedom
                                                                       Cameron and Quinn
                                                                                       Results oriented, getting the job done
                                  Formal, structured and procedural
                                                                                            Competitive and goal driven
                                   Leaders are efficient organisers
                                                                                         Leaders are tough and demanding
                                     Smooth running is essential
                                                                                               Emphasis on winning
                                         Formal rules and policies
                                                                                         Achievement of measurable goals
                                 Stable and and dependable service
                                                                                     Success is in market share and penetration
                                                  Secure employment
                                                                                           Competitive and hard-driving
    The Hierarchy                                                                                                   The Market
                                                                      Stability and control
                                                                                                               Cameron and Quinn
                                                                                 5
Cameron and Quinn


                                                                                                     The Adhocracy
       -2

                           The Clan

                    Extreme permissiveness                                               Disastrous experimentation
                    Uncontrolled individualism                       Chaos               Premature responsiveness


           Inappropriate participation                                                                   Political expediency
           Unproductive discussion                     Commitment               Innovation               Unprincipled
                                                       High morale              Adaptation               opportunism
                                                         Personal                 Change
                                                       development
                                       Participation                                      External support
                                        Openness                                         Resource acquisition
              Apathy                    Discussion                                            Growth                 Belligerence
                                                   Cameron and Quinn
            Indifference                  Important                                  Productivity                    Hostility
                                         management                                Accomplishment
                                         information                                   Impact
                                                                             Direction
                                                         Stability            Goals
             Procedural sterility                        Control                                           Perpetual exertion
                                                                              Clarity
             Trivial rigour                             Continuity           Planning                      Exhaustion


                     Habitual perpetuation                                                    Undisciplined regulation
                                                                     Rigidity
                     Iron bound tradition                                                     Blind dogma

                       The Hierarchy                                                                    The Market
                                                                        6
3D stakeholder map
 Level of                Likely impact of change on stakeholder
influence                  High           Medium             Low


     High    Person 4                          Person 3




 Medium                           Person 1




     Low                                                  Group A
            Person 2


             Low                 Medium                      High
                        Anticipated level of support
References
Strategy defined            Culture audit             Evergreen project




ISBN-10: 0273737023         ISBN-10: 0470650265       ISBN-10: 0060512784
ISBN-13: 978-0273737025     ISBN-13: 978-0470650264   ISBN-13: 978-0060512781

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Building credibility in the boardroom david cotton

  • 1. Building credibility in the boardroom David Cotton www.davidcotton.co.uk
  • 2. Evergreen Project Company categories Outperformed peers Outperformed peers Winner 10-fold return to investors 10-fold return to investors Consistently underperformed Consistently underperformed Loser against competitors against competitors Started poorly; improved Started poorly; improved Climber dramatically on implementing dramatically on implementing 4+2 formula 4+2 formula Began decade well, then fell far Tumbler Began decade well, then fell far behind behind Nohria, Joyce and Roberson 2
  • 3. Evergreen Project The 4+2 formula Talent Strategy Execution Innovation Mergers & Partnerships Culture Structure Leadership 3
  • 4. Strategy defined Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations Johnson, Whittington and Scholes 4
  • 5. Cameron and Flexibility and discretion Quinn - 1 The Clan The Adhocracy External focus and differentiation Friendly and sharing family Dynamic and entrepreneurial Leaders are ‘parents’ or mentors Leaders are innovative and risk takers Internal focus and integration Loyalty and tradition Experimental and inventive High commitment Leading edge Emphasis on personal development Emphasis on growth and new resources Sensitivity to internal and external clients Success is new services or products Participation and consensus Individual initiative and freedom Cameron and Quinn Results oriented, getting the job done Formal, structured and procedural Competitive and goal driven Leaders are efficient organisers Leaders are tough and demanding Smooth running is essential Emphasis on winning Formal rules and policies Achievement of measurable goals Stable and and dependable service Success is in market share and penetration Secure employment Competitive and hard-driving The Hierarchy The Market Stability and control Cameron and Quinn 5
  • 6. Cameron and Quinn The Adhocracy -2 The Clan Extreme permissiveness Disastrous experimentation Uncontrolled individualism Chaos Premature responsiveness Inappropriate participation Political expediency Unproductive discussion Commitment Innovation Unprincipled High morale Adaptation opportunism Personal Change development Participation External support Openness Resource acquisition Apathy Discussion Growth Belligerence Cameron and Quinn Indifference Important Productivity Hostility management Accomplishment information Impact Direction Stability Goals Procedural sterility Control Perpetual exertion Clarity Trivial rigour Continuity Planning Exhaustion Habitual perpetuation Undisciplined regulation Rigidity Iron bound tradition Blind dogma The Hierarchy The Market 6
  • 7. 3D stakeholder map Level of Likely impact of change on stakeholder influence High Medium Low High Person 4 Person 3 Medium Person 1 Low Group A Person 2 Low Medium High Anticipated level of support
  • 8. References Strategy defined Culture audit Evergreen project ISBN-10: 0273737023 ISBN-10: 0470650265 ISBN-10: 0060512784 ISBN-13: 978-0273737025 ISBN-13: 978-0470650264 ISBN-13: 978-0060512781

Editor's Notes

  1. © The People Development Team 2006
  2. © The People Development Team 2006