haines centre strategic management - adapt...

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Haines Centre for

Strategic Management

The Systems Thinking Approach®to

Strategic Management . . . Our Only Business

Founded in 1990 • Offices in over 20 Countries

2008 STATE OF THE ART REPORT: PART II

LEADING STRATEGIC & CULTURAL CHANGETO

PREVENT ITS 75% FAILURE RATE

The Top 12 Common Mistakes

Most Organizations Make

Using“The Systems Thinking Approach®”

PART II

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WORLD LEADER: THE CENTRE

“We Are The World Leaders in Strategic ManagementPowered by Systems Thinking”

Planning—People—Leadership—ChangeTo

Deliver Customer Value

Haines Centre’s Five Integrated Lines of Business:

www.HainesCentre.com

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BACKGROUND OF THISSTATE-OF-THE-ART

BEST PRACTICES REPORT

This Report is the result of a blend of three fundamental sources:

1. The Strategic IQ Audits that the Haines Centre does

2. Our Interpretation and Translation of Others Best Practices Research (We do not do original research ourselves-rarely paid for)

3. Our consulting practices around the world in over 20 countries

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STRATEGIC MANAGEMENTDESIRED OUTCOMES-RESULTS

WHAT ARE YOUR DESIRED OUTCOMES-RESULTS? 1. Higher Profits?_______________________________2. Greater Revenue? ____________________________3. Lower Costs/Decrease? _______________________4. Enhance Market Share? ________________________5. Drive Competitive Advantage? ___________________6. Increase Customer Service & Satisfaction? ________7. Deliver Better Customer Value ___________________8. Implement New Product/Service Offerings? ________9. Growing Community/Society Reputation___________10. Change the Employee Culture? ___________________11. Execute a Merger or Acquisition? _________________12. Enhancing our Commitment to the Community______13. Develop Strategic Alliances or Partnerships? _______14. Turn Around an Underperforming Business? _______15. Enhance safety? _______________________________16. Protect and Enhance the Environment? ___________17. Decrease Waste/Simplify your Bureaucracy? _______

CASE STUDY

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FAILURE OF ENTERPRISE-WIDE STRATEGIC

CHANGE

MAJOR CHANGE FAILS 75% OF THE TIME:

WHY?

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SINGLULAR CHANGE EFFORTS FAIL

A SINGLE AND ONE TIME INTERVENTIONWILL NOT CHANGE MUCH OF ANYTHING

EXCEPT FORANOTHER SHORT TERM FIX

REAL CHANGE REQUIRES MULTIPLE STRATEGIES

FOCUSED ON CLEAR OUTCOMES

OD Practitioner, May 2007

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ORGANIZATION DEVELOPMENT CUBE

CLASSIFYING AND CLARIFYING CHANGE PROJECTSIntervention Roles

1. Refl

ector/C

atalys

t

2. Pro

cess

Facilit

ator

3. Alte

rnati

ve

Identifi

er

4. Exp

ert Advic

e

5.Advo

cate/

Partici

pant

6. Educa

tion/Trai

ning

7. Man

ager

1A. One/One Relationships

1. Individual/Self

System

Levels

(of Atte

ntion)

2. Teams2A. Intergroups

3A. Org’n/Envirmnt

Vision/Mission/Results

Feedback Loop/Goals

EW Assessment Data

• Culture/Values

• Plans/Strategies/Tasks

• Change Management

• People/Teams

• Leadership

• Customer-Focused

• Delivery/Processes

A

C

B

D

Ente

rpris

e-W

ide

Dia

gnos

tic

3. Total Org’n

ENVIRONMENTAL SCANNINGE

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A NEW APPROACH TO CHANGE IS REQUIRED IN THE 21ST CENTURY

THINK DIFFERENTLY—THINK STRATEGICALLYUse The Systems Thinking Approach®

LOOK FOR SYSTEMS SOLUTIONS TO SYSTEMS PROBLEMS(Not Analytic & Piecemeal Solutions to Systems Problems)

CLARITY AND SIMPLICITY = SUCCESS(Simplicity Wins the Game Every Time)

THIS IS WHAT THIS STATE OF THE ART REPORT IS ALL ABOUT(So Do Not Take These Best Practices Separately)

NEW APPROACH

NEEDED

THE 21ST CENTURY MACRO BEST PRACTICE:

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LEADING STRATEGIC CHANGE TO DELIVER CUSTOMER VALUE

StrategicStrategicPlanningPlanning

StrategicStrategicChangeChange

Strategic Strategic ThinkingThinking VALUE

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THINK—PLAN—ACT—RESULTS

How you think

Is how you plan

Is how you act

And that

Determines the results you get in work and life

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GET A HIGHER AND BROADER PERSPECTIVE

Take a Helicopter View of Life!

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THE ABCs OF STRATEGIC CHANGE MANAGEMENT

STRATEGIC PLANNING HAS BEEN REINVENTED:

IT IS NOW STRATEGIC CHANGE MANAGEMENT—FOUR COMPONENTS:

1. Planning

2. People

3. Leadership

4. CHANGE

To Deliver Customer Value

SO. . . Strategic Change Management is the new way—A yearly cycle

onHow to ACHIEVE Business Excellence & Superior Results

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STATE OF ART BEST PRACTICES: STRATEGIC CHANGE # 1

Problem: Lack of execution and follow through

Best Practice: A monthly Change Leadership Team Meeting

People do what you inspect, not what you expect!

PRACTICE#1

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Problem: Lacking the Organizational Capacity for Change

Best Practice: Invest in, Hire and Develop the Capacity to make change succeed

You now have two full time jobs—the day-day and Leading Strategic Change

PRACTICE#2

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REQUIRED ORGANIZATIONAL CAPACITY

(FOR SUCCESS IN ENTERPRISE-WIDE CHANGE)

1.Demonstrated Long-Term Commitment by the Collective Leadership Team to Culture Change

2.Effective Organizational Change Processes to facilitate successful outcomes.

3.Effective Enterprise-Wide Organizational Change Infrastructures in place.

4.High Level Individual Competencies to lead Enterprise-Wide Change effectively.

5.Adequate Resources devoted exclusively to Enterprise-Wide Change.

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Problem: Ignoring the Power of Simplicity

Best Practice: Learn and apply the Rules of Elegant Simplicity

Everything is Simple You seeBut

You Just have to See it

PRACTICE#3

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STRATEGIC THINKING – ABCs TEMPLATE“Clarify and Simplify Your Thinking” – About your Project

___________________________________________________________________(Name of the Organization – Issue – Problem – Project – Change Effort, etc

Future Environmental Scan:What will be changing in your future

environment that will affect us?

EE

CC DD

AASystem Throughput/Processes:How do we get there (close the gap from C A )?CC AA

___________Today’s Date

Feedback Loop/ Key Success Measurements: How will we know when we get there?•

•

•

•

BB

Desired Outcomes-#1 System Question:

Where do we want to be?

Strengths•

•

•

•

•Threats•

•

•

•

•

Weaknesses•

•

•

•

•Opportunities1• 2

•3

•4

•5

•4

•

•

•

•

•

___________Future Date•

•

•

•

•

Inputs (SWOT): CORE STRATEGIES: TOP PRIORITY ACTIONS: OUTPUTS/OUTCOMES:

Current State Assessment:Where are you now?

.

.

.

.

.

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KEEP IT SIMPLE—IN STRATEGIC CHANGE MANAGEMENT

SIMPLICITY WINS THE GAME EVERY TIME:

ONE PIECE OF PAPER DOCUMENTS/TEMPLATES:

1. ABCs of Strategic Thinking Template

2. Strategic Plan Trifold

3. Annual Plan Priorities (Cheat-Sheet—To Do List: Who—What—When?)

4. Key Success Measures Matrix (Continuous Improvement—year/year)

5. Yearly Comprehensive Map of Implementation

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Problem: Missing the Key Structures and Roles to make Change successful

Best Practice: Installing the Players of Change Roles and Infrastructure

Think Structures/Roles first, then processes to support the content of your desired changes and outcomes

PRACTICE#4

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Problem: Lack of fully required Change Infrastructure

Best Practice: Choose and Tailor from Change Infrastructures to Cascade the Change throughout the organization

Structure Influences Behavior—Use it to your Benefit

PRACTICE#5

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LIVING SYSTEMS WITHIN LIVING SYSTEMS ON EARTH

Nested and Interdependent Systems: Systems within Systems within Systems

Boundaries and Inter-Connectedness:

Nothing exists in isolation—Relationships are everything!

Boundaries and Inter-Connectedness:

Nothing exists in isolation—Relationships are everything!

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CASCADE AND WATERFALLOF CHANGE

HOW DOES CHANGE OCCUR?

IndividuallyLevel by Level

Unit by UnitDept by Dept

Functional SubculturesManagement vs. those

Being managed

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SHARED VISION AND VALUES

SHARED VISION AND VALUES ARE KEY—IN ALL MGMT. BOOKS

HOWEVER, THERE IS A THIRD “SHARED” DOCUMENT

THAT IS KEY TO:

1. STRATEGIC THINKING ON A DAILY BASIS (EAB)

2. EXECUTING AND CASCADING YOUR POSITIONING (DOWN AND ACROSS THE ENTIRE ENTERPRISE)

3. THE ONLY REASON FOR THE EXISTENCE OF YOUR ENTIREORGANIZATIONAL CHART

WHAT IS IT?

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SHARED VISION AND SHARED VALUES —YES!

1. “The Business Glue ”—of an organization is for employee teamwork. The Shared Vision is usually too high a level. It is Shared Strategiesacross all departments/units that is also needed.

2. “The Social Glue ”--of an organization holds its culture together.It is the Values that guide behavior and “How we do things around here.”

“The Glue ” is THE Decision Making Criteria:a. Social =Shared Values =How to do it?b. Business =Shared Strategies =What to do?

IT IS SHARED STRATEGIES!!

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CORE STRATEGIES ARE LIKE THE WEBBING IN A CHAIR

“The Glue That Holds It All Together”

CEO

A D ECB

1. CORE STRATEGIES ARE CROSS FUNCTIONAL

2. CORE STRATEGIES

3. CORE STRATEGIES

4. CORE STRATEGIES

F u n c t i o n s - S i l o s: Business Unit Drivers

ENTERPRISE-WIDE DRIVERS:

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TWO-PAGE YEARLY CEO CHEAT SHEET

Core Strategy #41.2.3.




When Done?Who IsResponsible?

Core Strategies/Drivers—Priority Actions

ANNUAL PLANS AND PRIORITIES

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“WORK PLAN” FORMAT(FOR FUNCTIONAL/DIVISION WORK PLANS)

# : Strategy/Goals:

StatusHow to Measure

When Done

Who else to Involve

Who is Responsible

Support/Resources Needed

Action ItemsYearlyPriority

#

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COMPLEXITY – THE RUBIKS CUBE

"The Organization as a System"

From:Chaos & Complexity

To:Elegant Simplicity

How to Start Moving:

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PERFORMANCE APPRAISALS...KISS

Tied to Strategic Planning

Performance Appraisals —must be tied to support ...

#1Your organization's Core Strategies

(i.e., results)

#2Your organization's Core Values

(i.e., behaviors)

and #3Their own learning and growth

(i.e., career development)(If you are serious about your Strategic Plan)

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#1: Best Practice: A monthly Change Leadership Team Meeting#2: Best Practice: Invest in, Hire and Develop the Capacity to make change

succeed#3: Best Practice: Learn and apply the Rules of Elegant Simplicity#4: Best Practice: Installing the Players of Change Roles and Infrastructure#5: Best Practice: Choose and Tailor from Change Infrastructures to Cascade

the Change throughout the organization

NEW APPROACH QUESTIONS


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Problem: Failing to understand the Sequence of Change

Best Practice: Learn and use the Rollercoaster of Change

The Rollercoaster is natural, normal and highly predictable—Use it!

PRACTICE#6

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ALL CHANGE IS A LOSS EXPERIENCE

Question: Which issues or concerns do we have in our changes?

1. Loss of influence

2. Loss of control

3. Loss of money

4. Concerns about family reaction to change

5. Loss of social status

6. Concerns about starting over- “new kid”

7. Loss of future

8. Loss of relationships, networks

9. Loss of autonomy

10. Loss of professional identity

11. Loss of territory

12. Concerns about ability to handle new group

13. Loss of role

14. Loss of employment

15. Loss of meaning

16. Concerns about competency

17. Fear of failure

18. Loss of satisfaction

19. Loss of support

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WHAT IS THE GRIEVING CYCLE?

WHAT ARE ITS STEPS AND SEQUENCE??

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ROLLERCOASTER OF CHANGESIX STAGES

EE AA BB CC AADD BB

Sustain Business

Excellence

Loss IsA Given

#3 Anger/ DepressionAcknowledge Thru:ListeningEmpathizingExplaining Why?

#5 Hope/Readjustment:Thru•Involvement•Participation in the new Vision•Showing WIIFM

Integrated ChangeIs Optional

#6 Rebuilding

Vision

#4 – Persevere/ Hang In

#2 – Shock/Denial

#1 – Smart start

Perseverance: Key To Strategic Change

The Rollercoaster is “Natural, Normal and Highly Predictable”

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ROLLERCOASTER MAJOR QUESTIONS

Not “if” but “when” will we start to go through shock/depression?

1. How deep is the trough?

2. How long will it take?

3. Will we get up the right (optional) side and rebuild?

4. At what level will we rebuild?

5. How many different Rollercoasters will we experience in this change?

6. Are there other changes/Rollercoasters occurring?

7. How will we “hang-in” and “persevere” at the midpoint (bottom)?

8. How will we deal with normal resistance?

9. How will we create a “critical mass” to support and achieve the change?

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SYSTEMS – THE INNER WORKINGSOF AN ORGANIZATION AS A SYSTEM

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MACRO ISSUES WITH CHANGE

1. Everyone changes at different rates and depths.

2. Management undergoes change before the rank-and-file employees.

3. The Parts of the organization don’t fit and work together.

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ROLLERCOASTER USES

Major Uses1. Personal transitions2. Employee self-management3. Stages of learning – all types4. Interpersonal relationships5. Coaching sequence6. Dialogue and discovery7. Conflict management8. Situational leadership tasks9. Teams, groups, meetings10. Strategic Planning11. Core Strategies (cutting/building)12. Overall Change Management

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#1: Best Practice: A monthly Change Leadership Team Meeting#2: Best Practice: Invest in, Hire and Develop the Capacity to make change

succeed#3: Best Practice: Learn and apply the Rules of Elegant Simplicity#4: Best Practice: Installing the Players of Change Roles and Infrastructure#5: Best Practice: Choose and Tailor from Change Infrastructures to Cascade

the Change throughout the organization#6: Best Practice: Learn and use the Rollercoaster of Change

NEW APPROACH QUESTIONS?


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Problem: Lack of involvement of Key Stakeholders

Best Practice: A Parallel Involvement Process with all Key Stakeholders

People support what they help create: A basic life truism

PRACTICE#7

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MAIN PREMISE #2

“PEOPLE SUPPORT WHAT THEY HELP CREATE ”

(The Parallel Involvement Process)

PARTICIPATIVE MANAGEMENT“People want input into decisions that affect them

prior to those decisions being finalized.”—Stephen Haines

“PEOPLE SUPPORT WHAT THEY HELP CREATE ”

(The Parallel Involvement Process)

PARTICIPATIVE MANAGEMENT“People want input into decisions that affect them

prior to those decisions being finalized.”—Stephen Haines

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PARALLEL INVOLVEMENT PROCESS

Instead of D.A.D.: (Decide, Announce, Defend)

Set up the Planning Community

Goals1. Ownership For Implementation

2. Best Possible Decisions On Future Direction

3. Test Assumptions

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KEY STAKEHOLDER ASSESSMENT EXERCISE

1. Who are all our stakeholders (both Internal and External)? Be specific:

INTERNAL EXTERNAL

2. Decide who are the top 5-7 stakeholders in terms of importance to the success (both plus and minus) of our Strategic Planning / Enterprise-Wide change process.

Both its:A. Clarity of PurposeB. Simplicity of Execution

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PARALLEL INVOLVEMENT PROCESS

Instead of D.A.D.: Decide, Announce, Defend

Set up the

Planning and

Enterprise-Wide Change

Community

“People Support What They Help Create”

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PARALLEL INVOLVEMENT PROCESS MEETING

PURPOSE AND AGENDA:1.To explain the Enterprise-Wide Change effort and your role/involvement in it.

2.To understand the draft EWC Game Plan documents clearly.

3.To give us input and feedback to take back to the full Change Leadership Team:

Guarantee: Your feedback will be seriously considered.

Limitation: Input is being gathered from many different people. Therefore, it is impossible for each person's input to be automatically placed in the final EWC Game Plan exactly as desired.

OVERALL MEETING PURPOSE1.This is an information sharing and input/feedback meeting.

2.It is not a decision-making meeting. This will be done by the Change Leadership Teamat their next meeting, based on your feedback.

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#1: Best Practice: A monthly Change Leadership Team Meeting#2: Best Practice: Invest in, Hire, Develop the Capacity to make change succeed#3: Best Practice: Learn and apply the Rules of Elegant Simplicity#4: Best Practice: Installing the Players of Change Roles and Infrastructure#5: Best Practice: Choose and Tailor from Change Infrastructures to Cascade the

Change throughout the organization#6: Best Practice: Learn and use the Rollercoaster of Change#7: Best Practice: A Parallel Involvement Process with all Key Stakeholders



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Problem: Lacking Management appreciation and competencies in Leading Strategic Change

Best Practice: Management understanding that Planning and Change are THE PRIMARY job of leaders!

Planning and Change are the PRIMARY job of Leaders

PRACTICE#8

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LEADERSHIP AND MANAGEMENT ROLES

10% Follow-up / Evaluation

70% DirectingAnd Telling “How To”

15% Coaching, DevelopingSupporting, and Building

5% Strategy

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10% Follow-up/ Evaluation

20% DirectingAnd Telling “How To”

50% Coaching, Developing,Supporting, and Building

20% Strategy(including Strategic ThinkingAnd Environmental Scanning

Traditional 21st Century

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SEVEN NATURAL RINGS OF REALITY

Environment Includes:•Other people/groups

•Other organizations

•Customer/competitors

•Society/community

•Regions/earth

Increased Readiness:•Complexity/chaos

•Readiness/willingness

•Skills/competencies growth

Note:

Rings 3 – 4 – 5- 6 are 4 of the “7 Levels of Living Systems”

Rings 3A – 4A – 5A are “Collisions of Systems” with other systems

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EXERCISE:ACHIEVING LEADERSHIP EXCELLENCE

LEVEL 1 –SELF-MASTERY

LEVEL 2 –INTERPERSONAL

LEVEL 3 –INTACT TEAMS

LEVEL 4 –CROSS-FUNCTIONAL

LEVEL 5-ORGANIZATION-WIDE

LEVEL 6-STRATEGIC

ESSE

NTIA

LS

ADVA

NCED

Lead

ersh

ip D

evelo

pmen

t Wor

ksho

ps

FOUNDATION WORKSHOP• Achieving Leadership ExcellenceTM: Enterprise Wide

THE 6 NATURAL LEVELS OF

LEADERSHIP COMPETENCIES

THE SYSTEMS THINKING

APPROACH

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THE CENTRE’S LEADERSHIPDEVELOPMENT COMPETENCIES

2 of 2

Note: 27 Other Authors Researched: None had all 6 competencies.

• Only 3 had four competencies

• Only 4 had three competencies

The Centre does not do basic research. We do action research as well as summarize and synthesize the research of others.

We are translators and interpreters of Best Practices Research.

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Change throughout the organization#6: Best Practice: Learn and use the Rollercoaster of Change#7: Best Practice: A Parallel Involvement Process with all Key Stakeholders#8: Best Practice: Management understanding that Planning and Change are THE

PRIMARY job of leaders!



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QUICK STRETCH BREAK

PLEASE

TAKE A 2 MINUTE STRETCH BREAK

ONLY

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Problem: Failing to understand and appreciate the Structural nature of Culture Change

Best Practice: Understand the need for a focus on all the Seven Pillars of Cultural Change

Your Core Values should be guides to behavior that create your desired culture

PRACTICE#9

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SYSTEMS —THE INNER WORKINGSUSING THE

BUSINESS EXCELLENCE ARCHITECTURETM

BEST PRACTICES:ENTERPRISE-WIDE ASSESSMENT

CREATINGTHE PEOPLE

EDGE

BUILDINGA CULTURE OFEXCELLENCE

REINVENTINGSTRATEGIC PLANNING

LEADINGENTERPRISE-

WIDE CHANGE

ACHIEVINGLEADERSHIPEXCELLENCE

BECOMINGCUSTOMERFOCUSED

ALIGNINGDELIVERY

CUSTOMERVALUE

B

C

D

E

A

BEST PRACTICESASSESSMENT RESULTS

FUTUREENVIRONMENT

FEEDBACK LOOPQUADRUPLE BOTTOM LINE

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SEVEN PILLARS OF CULTURE CHANGE

Seven Pillars of Culture Change(People - Processes - Structures)

Systems Thinking and Learning

Strategic Management System

Infrastructures for Change

Performance Rewards, Recognition and Selection

Leadership

Customer-Focused

Project and Process Management

Using the Business Excellence Architecture: EEFuture

Environmental

ScanAA

BB

DD

Key Success Measures

STRATEGIC DIRECTION

CORE VALUES

ENTERPRISE-WIDE ASSESSMENTCC

DD

1

1 2

2

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33

4444

55

55

77

66

66 77

CUSTOMERVALUE

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DICTATORS ARE EXPERTS ATCULTURE CHANGE?

Do You Agree? Give some examples

What are the main levers they pull to change the Culture of an entire Country?

List them here:

Share and Compare your answers with your neighbors

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CULTURE CHANGE

THREE MAIN AREAS OF FOCUS BY DICTATORS:

1. The Media

2. The Education

3. The Rewards and Punishment

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Change throughout the organization#6: Best Practice: Learn and use the Rollercoaster of Change#7: Best Practice: A Parallel Involvement Process with all Key Stakeholders#8: Best Practice: Management understanding that Planning and Change are THE

PRIMARY job of leaders!#9: Best Practice: Understand need for focus on Seven Pillars of Cultural Change



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STATE OF ART BEST PRACTICES: STRATEGIC CHANGE #10

Problem: Lacking a Culture of Discipline

Best Practice: Creating a Thought Process and Organizing Framework for Solution-Seeking, not just Problem-Solving

Watch out for the Rubik’s Cube Effect of Unintended Consequences

Do you have Watertight Integrity Or

Is your ship slowly sinking?

PRACTICE#10

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STRATEGIC BUSINESS DESIGN

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STRATEGIC THINKING – ABCs TEMPLATE“Clarify and Simplify Your Thinking” – About your Project

___________________________________________________________________(Name of the Organization – Issue – Problem – Project – Change Effort, etc

Future Environmental Scan:What will be changing in your future

environment that will affect us?

EE

CC DD

AASystem Throughput/Processes:How do we get there (close the gap from C A )?CC AA

___________Today’s Date

Feedback Loop/ Key Success Measurements: How will we know when we get there?•

•

•

•

BB

Desired Outcomes-#1 System Question:

Where do we want to be?

Strengths•

•

•

•

•Threats•

•

•

•

•

Weaknesses•

•

•

•

•Opportunities1• 2

•3

•4

•5

•4

•

•

•

•

•

___________Future Date•

•

•

•

•

Inputs (SWOT): CORE STRATEGIES: TOP PRIORITY ACTIONS: OUTPUTS/OUTCOMES:

Current State Assessment:Where are you now?

.

.

.

.

.

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ENHANCED PROBLEM-SOLVING

SYSTEMS SOLUTIONS ARE CIRCULAR..."...they achieve desired future outcomes

...they fit within their dynamic future environment...they don't just solve today's problems...and they are more likely to stay solved

ImplementSolutions

Today’sReality &Problems

DesiredFuture

Outcomes

Change!(Close the Gap)

MeasurableGoals

“Gaps”Solution Seeking

(Problem ID)

The Future

EnvironmentEE

CC

DD

AA

BB

"For Disciplined Innovation"

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Change throughout the organization#6: Best Practice: Learn and use the Rollercoaster of Change#7: Best Practice: A Parallel Involvement Process with all Key Stakeholders#8: Best Practice: Management understanding that Planning and Change are

THE PRIMARY job of leaders!#9: Best Practice: Understand need for focus on Seven Pillars of Cultural Change#10: Best Practice: Creating a Thought Process and Organizing Framework for

Solution-Seeking, not just Problem-Solving



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Problem: Mostly focusing on Cultural Attunement of People’s Hearts and Minds

Best Practice: Building and Implementing a Holistic View of an Organization as a System

An Analytic Approach to a Systems Problem is Doomed to Failure

PRACTICE#11

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THE YIN AND YANG OF STRATEGIES

(Positioning for a Competitive Edge and Customer Value)

Alignment(of Delivery Processes)

Attunement(with People’s Hearts)

Star

Results

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#1: Best Practice: A monthly Change Leadership Team Meeting#2: Best Practice: Invest in, Hire, Develop the Capacity to make change succeed#3: Best Practice: Learn and apply the Rules of Elegant Simplicity#4: Best Practice: Installing the Players of Change Roles and Infrastructure#5: Best Practice: Choose and Tailor from Change Infrastructures to Cascade the Change

throughout the organization#6: Best Practice: Learn and use the Rollercoaster of Change#7: Best Practice: A Parallel Involvement Process with all Key Stakeholders#8: Best Practice: Management understanding that Planning and Change are

THE PRIMARY job of leaders!#9: Best Practice: Understand need for focus on Seven Pillars of Cultural Change#10: Best Practice: Creating a Thought Process and Organizing Framework for Solution-

Seeking, not just Problem-Solving#11: Best Practice: Building and Implementing a Holistic View of an Organization as a

System



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Problem: Mostly Focusing on Economic Alignment of Delivery

Best Practice: Building and tracking a Quadruple Bottom Line based on our Marketplace Positioning

We get what we measure!

PRACTICE#12

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THREE MAIN FAILURES OFENTERPRISE-WIDE CHANGE:

STRUCTURAL PROBLEM:#1. Piecemeal Approach to a System’s Problem (Multiple Conflicting Mindsets)

Involving multiple mind maps, frameworks, consultants and fads

Instead of a Systems Thinking Approach

CONTENT PROBLEM:#2. Mainly Focusing on an Economic “Alignment” of Delivery (Alignment only)

Involving a primary focus on productivity and bottom-line economics

Instead of a combined approach with “attunement” issues below

PROCESS PROBLEM:#3. Mainly Focusing on Cultural “Attunement” and Involvement with People

(Attunement only)

Involving a primary focus on egalitarian, participative, people processes

Instead of one combined approach with #2 above (economic alignment)

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THREE MAIN FAILURES OFENTERPRISE-WIDE CHANGE:

INSTEAD,

TRY A TOTALLY INTEGRATED SYSTEMS SOLUTION:

An Enterprise-Wide, Systems Thinking Approach to Business Excellence –

With a Quadruple Bottom Line measurement system: (economics–employees–customers–society)

That dramatically increases Superior Results:(Profits–Growth–Culture–Customer Value—Sustainability)

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KISS –THE SYSTEMS THINKING APPROACH

TO SUCCESS

Tailored and Totally Integrated Systems Solution (TISS):“Simplicity On The Far Side Of Complexity”

“Tailored” — To your specific needs, issues, and vision—And—

“Totally”— Enterprise-wide (the organization as a system)

“Integrated”— Coordinated and leveraged efforts—Synergistic (Efficiencies/Effectiveness)

“Systems”— The Systems Thinking ApproachSM—Framework and mind map (Science of Systems Thinking—the natural way the world works)

“Solutions”— Proven Best Practices from the research of others “We are the translators and interpreters of Best Practices Research”

To achieve Business Excellence and Superior Results Year after Year

“The Natural Way the World Works”

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CREATING CUSTOMER VALUEA Totally Integrated Systems Solution

"A THREE-PART STRATEGIC MANAGEMENT SYSTEM”

Part I - Goal #1: 20% Effort: Cascade of PlanningPhases E-A-B-C: Develop Plans and Documents

Step #1

•Environ Scan

•Executive Briefing

•SupportCadreTraining

•EnterpriseAssessmt

Steps #2-5•StrategicPlanning

•Customer-Focused

•Compet.• Strategy

•Leader.Develop.System

Steps #6-7• 3-YearBus. Plans.• AnnualPlans &Budgets

• PersonalLdr. Plans

• HR MgmtSystem

Step #8

• EWCGame Pln

• Plan-to-Implemt.

• CapacityBuilding

• Blow-OutBureauc.& Simplicity

Step #9•CLT

• PMO

•ProjectMgmtTeams

• Waves ofChange

•CultureChange

Step #10•StrategicIQ Audit

•AnnualStrategicReview

• CapacityBuilding

• CreatingCustomerValue

Part II – Goal #2: 40% Effort: cascade of ChangePhase D: Ensure Successful Enterprise-Wide Change

SMART START:PLAN-TO-PLAN

STRATEGICTHINKING BUSINESS &

ANNUAL PLANS SMART START: PLAN TOIMPLEMENT

ENTERPRISEWIDE CHANGE SUSTAIN

RESULTSGoal# 3: 40% Effort: Year After YearRecycle

Phase E-A-B-C-D = Business ExcellenceSuperior Results

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77

YEARLY STRATEGIC MANAGEMENT CYCLETHE SYSTEMS THINKING APPROACH

"Thinking Backwards to the Future"

B

C A

D

StrategicManagement

System (Yearly Cycle)

Your IdealFuture

Today

Vision, MissionAnd Values

Feedback/GoalsAnd

Measures

Strategies,Business Plansand Priorities

+++++++Actions, ChangeAnd Follow-Up

EFUTURE

ENVIRONMENT

SCAN

78

Operating ManagersMeeting (Boca)600 LeadersINITIATIVE LAUNCHCase for New InitiativeOutside Company Initiative ExperienceOne Year Search TargetsRole Model PresentationsRe-Launch of Current Initiatives

GENERAL ELECTRIC’S STRATEGIC MANAGEMENT SYSTEM

First Quarter

Second Quarter

Third QuarterFourth Quarter

January March

SeptemberOctober

February

August

April

November

June

DecemberJuly

May

• Intense Energizingof Initiatives AcrossBusinesses

Corporate Executive council:CEC at Crotonville35 Business and SeniorCorporate Leaders•Early Learning?•Customer Reaction?•Initiative Resources Sufficient?•Business Management Course (BMC) Recommendations

Anonymous OnlineCEO Survey:11,000 Employees•Do you “Feel”Initiated Yet?•Do your customers feel it?•Sufficient ResourcesTo Execute?•Messages Clear And Credible?

Leadership PerformanceReviews at BusinessLocations:All Business StaffsInitiative Leadership ReviewLevel of Commitment/Quality of Talent on InitiativesDifferentiation(20% / 70% / 10%)Promote / Reward / Remove

Corporate Executive Council:(CEC at Crotonville Locations:35 Business and SeniorCorporate LeadersInitiative Best PracticesLevel of commitment/Rev. of Initiative Leadership Customer ImpactBusiness ManagementCourse (BMC)Recommendations

Corporate Executive Council:(CEC at Crotonville)35 business and SeniorCorporate LeadersAgenda for BocaIndividual BusinessInitiative HighlightsBusiness Management(BCM) CourseRecommendations

Operating PlansPresented:All Business LeadersInitiatives Stretch TargetsIndividual BusinessOperating PlansEconomic Outlook

Corporate OfficersMeeting: (Crotonville)150 OfficersNext-Year OperatingPlan FocusRole Models PresentInitiative SuccessesExecutive DevelopmentCourse (EDC)RecommendationsAll Business Dialogues:What Have weLearned?

Corporate ExecutiveCouncil: (CEC at Crotonville)35 business and SeniorCorporate LeadersBusiness ManagementCourse (BMC)RecommendationsClear Role Models Identified Outside Company BestPractices PresentedInitiative Best Practices(All Businesses)Customer Impact of Initiatives

Informal IdeaExchanges atCorporate andBusinesses

Session 1: 3-Year StrategyEconomic / CompetitiveEnvironmentGeneral Earnings OutlookInitiatives Update/StrategyCustomer ImpactInitiative ResourceRequirements

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79

THE “SECRET” OF NUMMI

THE TOYOTA MANAGEMENT SYSTEM:

The “secret” is not in the individual pieces.

THE TOYOTA MANAGEMENT SYSTEM:

The “secret” is not in the individual pieces.The “secret” is in the integration of

practices into a management system.

Corporate GM Study; Detroit, Michigan; 0919X/4/7/86/page 6Shnummi2.dtp

060691

80


The “secret” is not in the individual pieces, although NUMMI employs many management techniques that differ from GM.

The success of NUMMI’s version of the Toyota system lies in the careful integration of practices to manage people, processes, and suppliers into a management system.

This implies that we can’t implement the individual pieces and expect the same results as if we had implemented the entire system. Implementing pieces can result in improvements, and should not be discouraged.

However, the “quantum leap” improvement seen at NUMMI only comes after the entire system is in place, and in place for some time.

Corporate GM Study; Detroit, Michigan; 0919X/4/8/86/page 7Shnummi3.dtp

060691

41

81


Technology?

KAIZEN?

MUDA?MURA?MURI?

Training?

Team Concept?

Just-In-Time?Back-to-Basics?

JIDOKA?

Flexible Work?

Simple Product?

ConsensusDecisionMaking?

KANBAN?

Education? CULTURE

Quality Circles?

Corporate GM Study; Detroit, Michigan; 0919X4/7/86/page 4Shthesec.drw

060691

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THE SINGAPORE CITY-STATESTRATEGIC MANAGEMENT SYSTEM

URBAN REDEVELOPMENT AUTHORITY (URA)

CONCEPTPLAN

-1971/2001

MASTER PLAN

-10 to 15 years

-

Supported by numerous Citizen involvement and Feedback

D

D

CB

A

DEVELOPMENTIMPLEMENTATION

DEVELOPMENTCONTROL

-Formal Review 5 Years

LANDSTRATEGIC

MANAGEMENTSYSTEM

42

83

ANNUAL STRATEGIC REVIEW (AND UPDATE)

START

Within a Strategic Management System and Yearly Cycle

The FlywheelAnd

The Rollercoaster

StrategicManagement System

And Yearly Cycle

EE

DD

CC BB

AA

YEAR 1 YEAR 2 YEAR 3 YEAR 4

BU

SIN

ESS

EXC

ELLE

NC

E &

SU

PER

IOR

RES

ULT

S(Planning – People – Leadership – Change – Customer Value)

1

2

34

TIMELINE ANNUAL STRATEGIC REVIEWS

84



#1: Best Practice: A monthly Change Leadership Team Meeting#2: Best Practice: Invest in, Hire, Develop the Capacity to make change succeed#3: Best Practice: Learn and apply the Rules of Elegant Simplicity#4: Best Practice: Installing the Players of Change Roles and Infrastructure#5: Best Practice: Choose and Tailor from Change Infrastructures to Cascade the Change

throughout the organization#6: Best Practice: Learn and use the Rollercoaster of Change#7: Best Practice: A Parallel Involvement Process with all Key Stakeholders#8: Best Practice: Management understanding that Planning and Change are

THE PRIMARY job of leaders!#9: Best Practice: Understand need for focus on Seven Pillars of Cultural Change#10: Best Practice: Creating a Thought Process and Organizing Framework for Solution-

Seeking, not just Problem-Solving#11: Best Practice: Building and Implementing a Holistic View of an Organization/System#12: Best Practice: Building/tracking Quadruple Bottom Line based on Marketplace Position



43

SUMMARY:

THE STATE OF THE ART REPORT

HOW TO GET STARTED IN LEADING STRATEGIC CHANGE ?

86

STRATEGIC & SYSTEMS THINKING—

A NEW WAY TO THINK“Think Differently”

START THINKING ABOUT:

1 of 2

B

A

D

E

D

B

A

1. The Environment

2. The Outcomes

3. The Future

4. The Feedback

5. The Goals

6. The Whole Organization

7. The Relationships

(and opportunities)

(and results)

(and direction)

(and learning)

(and measures)

(and helicopters @ 5,000 feet)

(and patterns)

44

87

STOP THINKING JUST ABOUT:

1. Issues and Problems

2. Parts and Events

3. Boxes/Silos

4. Single Activities of Change

5. Defensiveness

6. Inputs and Resources

7. Separateness

How we think ... is how we act ... is how we are!

STRATEGIC & SYSTEMS THINKING—

A NEW WAY TO THINK

2 of 2

88

YEARLY CYCLE: STRATEGIC CHANGE MANAGEMENT

USING THE BUSINESS EXCELLENCE ARCHITECTURE

ED

AC

B

E

Today

YourFuture

Core StrategiesAnd

Business PlansVision, Mission

And Values

FeedbackAnd

Measures

CREATINGTHE PEOPLE

EDGE

BUILDINGA CULTURE OFEXCELLENCE

REINVENTINGSTRATEGIC PLANNING

LEADINGENTERPRISE

CHANGE

ACHIEVINGLEADERSHIPEXCELLENCE

BECOMINGCUSTOMERFOCUSED

ALIGNINGDELIVERY

Thinking Backwardsto the Future:

The Systems Thinking Approach

45

89

GOAL #3: BUILDING & SUSTAINING HIGH PERFORMANCE

ANNUAL STRATEGIC REVIEW

“Similar to a yearly independent financial audit and update ”

Goal #1: Assess the Strategic Management Process itself: Building on the Baldrige and the Strategic IQ Audit

Goal #2: Assess the status of the Strategic Plan achievement itself

Resulting in Part 2:

1. Update your Strategic Plan

2. Clarify your annual planning and strategic budgeting priorities for next year

3. Problem-solving any issues raised in either goal

4. Set in place next year's Annual Plan and Change Management Process

90

STRATEGIC IQ AUDIT TWO-DAY OVERVIEW

DAY ONE:The Strategic IQ is a comprehensive Enterprise-Wide Auditthat includes an integrated suite of assessments, including:

1. Strategic Management Results, Direction and Marketplace Positioning2. Yearly Strategic Management System and Cycle process and capabilities 3. Customer-Orientation and Focus4. Economic Analysis and Financial Results5. Operational Excellence, Plans, Accountability and Culture (Values)6. Strategic Business Design, Productivity and Efficiencies7. Organizational Capacity for Change-Five Components8. (Optional) Enterprise-Wide Assessment vs. the Baldrige Quality Criteria for

Performance Excellence (either a face-face or online Assessment available)

All of this is based on the proven research of organizational best practices, using the best 21st Century Integrated Organizing Framework and Language

there currently is, The Systems Thinking Approach®

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91

PLAN-TO-IMPLEMENT:DAY TWO

TARGET AUDIENCE:Senior Management Senior Staff Support

PM: PLAN-TO-IMPLEMENT TASKS

3. Organizing4. Tailoring

PRESENT THE STRATEGIC IQ AUDIT

TARGET AUDIENCE:Senior ManagementSenior Staff SupportBoard of Directors?Middle Management?Anyone is fine for AM

AM: EXECUTIVE BRIEFING(On Strategic Change Mgmt):

1. Educating2. Assessing

92

FIVE GUARANTEES OF SUCCESSFULENTERPRISE-WIDE CHANGE

1. Form a Change Leadership Team and have it meet for a half--full day every month with our standard agenda.

2. Set up an overall Project Management Office and internal/external change coordinator.

3. Have the Strategic Change Leadership Team led by the CEO and include all Senior Management members along with the Project Management Office Team and Project/Process Team for each Core Strategy.

4. Set up a “Yearly Comprehensive Map” of the change process and fund it properly.

5. Have all department heads develop Annual Department Plans under the framework of your Core Strategies and top annual priorities—then hold them accountable with rewards and punishments.

47

93

TIME FOR FORMALQUESTIONS AND ANSWERS

94

WRITE UP YOUR LEARNINGS

1-2 MINUTES ONLY: 2-3 KEY LEARNINGS

HOW TO APPLY THEM IN YOUR ORGANIZATION??

CASE STUDY

48

95

STATE OF THE ART BEST PRACTICES IN

LEADING STRATEGIC CHANGE

There are THREE State of the Art Best Practices Research Reports in all:Strategic Planning –Strategic Change –Strategic and Systems Thinking:

We welcome you to pursue these further through:

1. Attend our Reinventing Strategic Planning Webinar available 24/7

2. Attend our Strategic and Systems Thinking Webinar in February 08 and available 24/7 after that.

3. Attend our 2 ½ day Public Workshops on all three topics

4. Have us conduct an Executive Briefing for your Management Team

5. Have us conduct an in-house Workshop

6. Have us support Strategic Planning/Strategic Change for your organization or unit.

96

TIME MANAGEMENT AND ORGANIZATION EFFECTIVENESS

There is nothing else even close!(All the rest are a series of well-meaning, piecemeal efforts)

A Systems Thinking Approach SM & Commitment to Enterprise-Wide Change and a Strategic Management System, and Cycle (Planning,

People, Leadership and Change) is the ultimate

Time ManagementTeam BuildingConflict ResolutionOrganizational Effectiveness andExecutive Development tool

for an entire organization.THE RESULT: Business Excellence and Superior Results!

A Systems Thinking Approach SM & Commitment to Enterprise-Wide Change and a Strategic Management System, and Cycle (Planning,

People, Leadership and Change) is the ultimate

Time ManagementTeam BuildingConflict ResolutionOrganizational Effectiveness andExecutive Development tool

for an entire organization.THE RESULT: Business Excellence and Superior Results!

49

THANK YOU

FOR YOUR PARTICIPATION

Stephen Haines

Founder and CEO

Haines Centre for Strategic Management

12/19/2007