Downloaded 14 times
![ “Before the sales accelerator came along not one
Account Manager wanted to sell SN [Storage
Networking]. … In 6 months since, we have closed deals
in Morocco, Saudi [Arabia], UAE and Pakistan worth
$2.5M. We have $10M in the pipeline.”
Systematic evaluation study compiled for Cisco Systems
$4.4M (min) attributable to sales in 6 months
First few interviewees within a large global sales force
Six month ROI min. of 38 x project cost ($116k)](https://image.slidesharecdn.com/focgov-150320033630-conversion-gate01/75/Transforming-the-Boardrooms-Boardroom-Effectiveness-42-2048.jpg)
Uploaded bySAROJ BEHERA
Transforming the Boardrooms "Boardroom Effectiveness "
The document discusses governance issues within organizations, emphasizing the distinction between successful and unsuccessful companies based on their approaches to governance, board effectiveness, and management practices. It highlights the importance of critical success factors, situational analysis, and a compelling organizational vision as drivers of corporate performance. Furthermore, it outlines the need for structured processes, stakeholder engagement, and adaptive behavioral changes to foster a culture of continuous improvement and competitiveness.
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Transforming the Boardrooms "Boardroom Effectiveness "
- 2. Problems withGovernance: ◦ ‘box ticking’ v. thinking ◦ Structure v. behaviour ◦ Avoiding risks v. creating opportunities ◦ Developing policies, etc. v. implementation Evidence about link between ‘Governance’ and performance: ◦ Problem of ‘association’ v. ‘cause & effect’ ◦ Is association because ‘effective’ boards and management teams endeavour to follow ‘governance’, HRD, etc ‘best practice’? Importance of the chairman of the board Overview of presentation: ◦ Differing approaches of the best run and OK companies ◦ Creating a winning board and building a competitive company ◦ Developing winning people – enabling them to live the values ◦ Improving board effectiveness – Being World Class
- 3. Why aresome companies /people more successful? Identify apparent critical success factors Survey and interview practitioners Rank responses in order of results/benefits Compare the top and bottom quartiles Isolate the factors that make a difference Publish critical success factors reports/books/tools
- 4. People Process Technology Supply Chain e-business WinningBusiness Customer Relationship Management Purchasing Pricing ‘The Responsive Organisation’ ‘The Competitive Network’ Information, Knowledge and Understanding The Knowledge Entrepreneur Corporate Learning Developing a Corporate Learning Strategy ‘Winning Major Bids’, ‘Winning Business in …’ ‘Developing Strategic Customers & Key Accounts’ ‘The Future of the Organization’ ‘Creating the Global Company’ ‘ Strategic Direction Performance Management ‘Creating Excellence in the Boardroom’ ‘Developing Directors’ ‘Transforming the Company’ ‘Business Process Re-engineering, myth & reality’ ‘Individuals and Enterprise’ ‘Shaping Things to Come’
- 5. Clear distinctionbetween winners and losers Critical success factors ◦ can be determined ◦ can be built into processes and support tools Success is directly related to the number of critical success factors put in place Even the best companies could do much better Behavioural factors can be addressed: ◦ Workgroup productivity can be improved ◦ Board effectiveness can be improved ◦ Corporate performance can be transformed
- 6. Need tounderstand winning approaches in key areas, e.g. bidding, building relationships, differentiation, pricing, communication, etc. Main differences between winners and losers are attitudinal and behavioural With the same or similar processes, etc ….. winners do it differently Ordinary people can be helped to understand, buy and behave like superstars
- 7. Organisation Finance People Technology Management and business processes and tools BusinessOpportunity vision, goals, values Business Environment
- 8. Determining what needsto be done Deciding how to do what needs to be done Reporting to stakeholders on what has been achieved Ensuring what is done satisfies legal and ethical requirements Ensuring that what needs to be done actually is done Creating the capability to do what needs to be done
- 9. Where do wewant to be? (Visioning) What are the gaps between where we are and where we want to be? (Gap analysis) Monitoring and reporting what has been achieved (assessment and feedback) Communicating plans and supporting their implementation What do we need to do to close the gaps? (Action planning) Where are we now? (Situation analysis)
- 10. INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT Market Place Understanding Listening to theCustomer Technology Resources Organisational Development Products & Services CORE PROCESS Analysis & Diagnosis Corrective Actions & Improvements Monitoring QIP PSP BMK ACTIONS LEARNING Competitive Intelligence
- 11. ENVIRONMENTAL ASSESSMENT •Economic / Social •Political/ Competitor •Technological SWOT •Strengths •Weaknesses •Opportunities •Threats SITUATION ANALYSIS •Desired state •Current state •Barrier analysis VISION •Values •Priorities •Quality principles MARKET MAP •Case I High growth •Case II Mid growth •Case III Low Growth •Implications •Agreed direction VITAL FEW •Company •Functional
- 12. What arethe major trends & developments in the external business environment? How will they impact upon the company? How will they impact upon: Customers? Competitors? What needs to be done in response ◦ at local level? ◦ at operating unit level? ◦ at group/corporate level? … to address problems and opportunities … to help customers respond
- 13. Stretching, distinctiveand compelling vision that paints a picture of a better future Desired and attainable state of affairs that can engage and motivate A clear vision is of value internally and externally: ◦ Internally it motivates people to achieve and focus their efforts ◦ Externally the vision should differentiate a company from its competitors If the vision were an animal, a car or a person …
- 14. Do youhave a compelling reason for: … existing? … charging a premium? What is unique, special or distinctive? Why should people buy from you? What would the world lose if you folded? Who would notice or care? Do customers, staff, business partners, etc. understand your critical differentiators? Can they quickly communicate the essence of what you are about?
- 15. Level of Marginor Return 0 Shared vision Accepts challenges New approaches Flexibility Innovation Adds value Shares risk Business relevance Level of Risk Legalistic Protective Damage limitation Safeguards Caution Avoids risk Technical competence Commodity supplier Business partner
- 16. Purpose: Vision,goals and values? Image and reputation? People: Skills? Understanding? Support? Processes: Way of working and learning? Products and services? Basis of charging? Approaches? Methodologies? Tools and techniques? Relationships: Partnering? Risk sharing?
- 17. Will, Rationale,Purpose and Vision Goals, Values, Objectives and Strategy Resources, Capability and Processes Competent Management Team Framework of Policies and Values Agree & monitor plans & performance Safeguard assets & ethical standards Report performance to owners / interests
- 18. Establishing vision,mission, values, objectives and policies Setting business/financial direction/strategy Ensuring appropriate structure/capability Delegation to management and control Exercising responsibility to shareholders and other interested parties
- 19. Board Responsibilities andActivities Outward looking Inward looking Providing accountability Providing direction and Formulating strategy Monitoring performance and Supervising management Establishing policies Source: Hilmer and Tricker, 1991 Past and present oriented Future oriented
- 20. Private Company: ◦Entrepreneurial drive v. prudent control ◦ Be knowledgeable about and answerable for corporate activities v. standing back and maintaining an objective longer-term view ◦ Sensitivity to short-term pressures v. being informed about market/broader trends ◦ Focus upon company’s commercial needs v. acting responsibly towards various stakeholders Public Sector Board: ◦ Public accountability requirement for objective measures ◦ Quantitative targets v. needs
- 21. Positive and NegativeBoards High / right Low / wrong Talkers Invest Irrelevant Threat Awareness and Strategy Commitment and Drive Low High
- 22. Proactively creatinga better future Exploring, pioneering and discovering Turning organisations into incubators of new enterprises Creating and launching new ventures Creating and exploiting knowledge/intellectual capital Generating new options and additional income streams Establishing new markets and winning new customers Building more intimate customer/partner/etc relationships Transforming performance with job support tools
- 23. Change modelof operation (network, virtual) Change relationships (partnering) Change processes (improvement, re-engineering) Change work patterns (outsourcing, teleworking) Change teamwork approach (activities, exercises) Change approaches to learning (e-learning, tools) Change approaches to management (democracy) Change assumptions and expectations (visioning) Change attitudes, skills & knowledge (enterprise) Change focus & allocation of time (vital few) Change support provided (tools with CSFs/winning ways)
- 24. Lack ofawareness of full range of options Focus on corporate not client requirements Failure to address greatest opportunities Excessive faith in single solutions Insufficient tailoring to particular culture, situation and context Excessive emphasis upon ‘hard’ issues Inadequate balancing of interests Inadequate attention to people factors
- 25. Restructuring disruptsrelationships Downsizing causes loss of experience Re-engineering results in loss of specialists Outsourcing and the loss of key capabilities Regression when systems upgraded Standard solutions destroying diversity Assumption of linearity
- 26. Activity andreflection Action and reaction Change and continuity Complexity and simplicity Surface and substance Fads and fundamentals Individuals and organisations Citizens and communities Performance today and capability tomorrow
- 27. Understand whatis happening in the business environment and marketplace Anticipate events, address specifics and confront realities Develop additional income streams, new capabilities and fresh intellectual capital Inspire, energize and motivate Are determined, pragmatic and positive Initiate, e.g. proactively approach those they would like to do business with Focus upon areas that make a difference and critical success factors for competing and winning Understand that change can disrupt valued relationships, and only change what needs to be changed
- 28. Trust reliablepeople and take calculated risks Delegate and encourage entrepreneurship Think for themselves and reflect before they act Adopt simple solutions and differentiate their companies’ approaches, products and services Create bespoke offerings, additional choices and new markets Are open and self-aware and monitor their own performance Welcome questions, invite feedback and encourage challenge Choose pragmatic colleagues and competent advisers
- 29. Display thewill to win and are driven to succeed, while being able to show that they care Take a longer-term view and provide strategic leadership Assume responsibility and are prepared to be accountable for their actions Understand the different roles of director, manager and shareholder and the distinction between direction and management Are clear about directorial duties and responsibilities and preoccupied with enabling and supporting the achievements of others
- 30. Concentrate uponthe external, strategic and business development aspects of corporate governance Strive to ‘build the business’ and deliver additional value for customers and shareholders Provide clear direction, a distinctive purpose, and achievable goals that prove compelling to those working towards their achievement Manage performance by means of an appropriate range of indicators and develop new income streams, capabilities and intellectual capital Invest in director/board development & the professional selection, appointment and induction of new directors
- 31. Determining theknowledge required ◦ ‘Shaping Things to Come’ / Differentiation Creating the knowledge required ◦ ‘Developing a Corporate Learning Strategy’ Managing the knowledge created ◦ ‘Managing Intellectual Capital to Grow Shareholder Value’ / K-frame Exploiting the knowledge created ◦ ‘The Knowledge Entrepreneur’ Applying the knowledge created ◦ Developing knowledge based job support tools
- 32. Information overload People need to be helped to understand & buy People need tools and relevant knowledge Opportunities for new knowledge-based services and offerings (37 categories) Income opportunities (31 learning services) Superstar know-how can be captured / shared Need for knowledge entrepreneurs/support tools
- 33. Make iteasy for people to locate/understand what they need Help people to: ◦ understand technology/benefits for users/customers ◦ tackle more complex problems Help and enable your people to behave like winners Capture and share best practice & superstar approaches Build critical success factors into how work is done Provide simple, scalable and cost effective support tools (e.g. Tools used by Avaya, B&Q, Cisco Systems, Dana, Eyretel, Friends Provident, etc. see www.cotoco.com)
- 34. SWOT Analysis Opportunities Threats Strengths Weaknesses Theimportance of inter-relationships between SWOT elements
- 39. Sales up25% in 8 weeks £500k orders direct result of tool in first 8 wks. Sales cycle down from 12-16 to 8-12 weeks Sales technical support requirement down 66% Savings achieved of £2.5M per year Eyretel submission to eBusiness Innovation Award £3M direct benefits in year one (£500k + £2.5M) Year one ROI 71.43 x project costs (£42k)
- 42. “Before thesales accelerator came along not one Account Manager wanted to sell SN [Storage Networking]. … In 6 months since, we have closed deals in Morocco, Saudi [Arabia], UAE and Pakistan worth $2.5M. We have $10M in the pipeline.” Systematic evaluation study compiled for Cisco Systems $4.4M (min) attributable to sales in 6 months First few interviewees within a large global sales force Six month ROI min. of 38 x project cost ($116k)
- 43. Traditional Approach: ◦Checks and Reviews ◦ Delays and Higher Costs ◦ People focused on compliance rather than customers ◦ Bespoke responses discouraged as they create compliance issues New Approach: ◦ Build checks and reviews into support tools ◦ People cannot produce proposals, etc that miss-sell etc. ◦ Faster responses and lower costs ◦ People free to deliver bespoke responses ◦ Also build CSFs and winning ways into support tools ◦ Large improvements in key work group performance ◦ High returns on investment: 20+X, 30+X, 70+X
- 46. Provide theeasiest way to accomplish a task Keep it simple: Use should improve understanding Improve processes, capture and share best practice Build critical success factors into practices/tools Most cost-effective with homogenous groups/tasks Enable bespoke responses to individual customers Focus on applications with the greatest impact Review, refine and maintain
- 47. Limited andshort-term vision Obsession with ratios and cost cutting Internal and win-lose orientation Protection of own interests Working harder and cutting corners Staying close to existing know-how Low margin commodity supplier Squeezed margins and falling profitability
- 48. Broad andlong-term vision Focus on the customer and opportunity generation External and win-win orientation Ensuring mutually beneficial outcomes Working smarter and building relationships Exploring, pioneering and discovering Sought after business partner Rising margins and profitability
- 49. Distinction betweendirection and management / Directorial qualities Multi-functional experience International / network perspective Entrepreneurial attitudes Complement qualities of colleagues The learning board and counselling
- 50. Career evolution: ◦Managerial progression ◦ First appointment to board ◦ Becomes managing director ◦ NED on another board ◦ Becomes CEO of quoted company ◦ Becomes chairman of board ◦ Creates portfolio of NEDs ◦ Establishment of own business Development needs: ◦ Management development ◦ Duties and responsibilities ◦ Role of the CEO ◦ Role of the NED ◦ Understand listing requirements ◦ Role of the chairman ◦ Understand company specific issues ◦ Business start-up and financing
- 51. Understanding ofcontext Strategic awareness Holistic perspective Ability to ‘vision’ / look ahead Personal qualities IOD / Henley standards The Winning Board ‘Transforming the Company’/’Winning Companies, Winning People’
- 52. Strategic awarenessand perception Analytical understanding/ thinking skills Decision making capability Communication and inter-personal skills Board skills: planning, delegating, appraising, developing colleagues …. Achieving results: energy, drive, integrity ..
- 53.
- 54. Chairman ChiefExecutive Officer Non-executive Director Functional v Process Owner Director Director of Learning / Transformation ‘Owner Director’ Aspirant Director
- 55. Business environment Company specific Specific to board Contribution to the board
- 56. Evaluating individualand team performance Identifying obstacles & barriers ‘Cosy club’ versus ‘healthy debate’ Outstanding individuals versus team effectiveness Interaction of particular personalities
- 57. Creating anenterprise culture Stimulating entre/intrapreneurship Buy-outs and buy-ins The company as an enterprise colony Supporting enterprise development Create, package and exploit know-how From employee to business partner
- 58. Freedom todream, aspire, build and create Freedom to enter into mutually beneficial relationships Freedom to do what is necessary to deliver value and satisfaction to customers Freedom as a customer to seek new sources of benefit and value Freedom to initiate debates, explore, question, challenge, innovate and learn Freedom to understand one’s self, be true to one’s self, and develop and build upon natural strengths Freedom to work at a time, location and mode that best contributes to desired outputs Freedom to use the most relevant technology, tools and processes depending upon what it is that needs to be done Freedom to confront reality, identify root causes and tackle obstacles and barriers Freedom to learn according to one’s individual learning potential
- 59. Are therecompelling reasons for change? Why should anyone be interested or care? Are you clear about what you are seeking to do? What’s in it for those whose help you need? Do they understand why change is needed, what needs to be done and how they can help? Are your aspirations expressed as clear objectives? Can these objectives be measured and monitored? Have they been agreed by your change partners? Are likely obstacles & barriers identified & addressed?
- 60. Have the‘vital few’ tasks been identified? Are people visibly committed to their achievement? Do rewards, communications and performance management support what needs to be done? Does everyone understand the critical success factors for competing and winning? Are individual roles, responsibilities and contributions understood? Have people identified the knowledge, understanding and support tools they will require? Are they motivated / equipped to communicate / act?
- 61. Provide peoplewith a distinctive and compelling vision Give them good reasons to follow you and/or change Enable your people to differentiate and make a difference Give them opportunities for personal growth Provide them with relevant support tools Enable them to communicate, share and live the vision Recognise their unique contributions Inspire trust and encourage innovation Back initiative and responsible risk taking Reconcile commercial success and personal fulfilment
- 62. Providing Knowledgeis not enough People may also require skills and tools to apply it Tools work best with homogenous groups and tasks Don’t use inflexible tools in rapidly changing areas Regular review, updating and maintenance extends life Improve rather than automate current practices Support tools enhance performance/understanding Superstar practice and expertise can be spread Behaviour can be changed through traffic lighting, etc. Returns on Investment (ROI) of over 20 x achieved
- 63. Build aneffective board (‘Developing Directors’) Build a Winning Team (‘Winning Companies; Winning People’) Attract, motivate, enable and support entrepreneurs (‘Individuals & Enterprise’) Create new options, genuine choices and alternative offerings (‘Shaping Things to Come’) Exploit know-how to create new offerings/services (‘Knowledge Entrepreneur’) Transform business units into flexible networks for managing change, competing and winning (‘Transforming the Company’)
- 64. Publications: ◦ Books, ◦Reports and ◦ Briefings Presentations Benchmarking Reports Health Checks Course Modules Consultancy Support Support Tools