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CONSTRUCTING HIGH-PERFORMING ORGANISATIONS:  Building Blocks, Structures, And Culture   Case Study, Concepts and Debatable Ideas Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com
Workforce Psychology ,[object Object]
Workforce Psychology Behavior Influence Decision Making Direct Communication In-Direct Environment
Summary: Today’s presentation 1. Business Model 2. Building Blocks www.myCNI.com.my www.OOBEY.com
1. Get the right Business Model first www.myCNI.com.my www.OOBEY.com
[object Object],1. Wrong Business Model www.myCNI.com.my www.OOBEY.com
The Roadmap to Failure   Fred Wiersema and   Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com   Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
Denial and Defense ,[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
The Roadmap to Failure   Fred Wiersema and   Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com   Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
Ad Hoc Tactics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
The Roadmap to Failure   Fred Wiersema and   Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com   Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
[object Object],www.myCNI.com.my www.OOBEY.com
What is the Business Model? USP Market  Discipline Profit Model www.myCNI.com.my www.OOBEY.com
Intro: Market Discipline ,[object Object],www.myCNI.com.my www.OOBEY.com
Intro: Market Discipline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],"They are the most innovative" "Constantly renewing and creative" "Always on the leading edge" "A great deal!" Excellent/attractive price Minimal acquisition cost and hassle Lowest overall cost of ownership "A no-hassles firm" Convenience and speed Reliable product and service Product Leadership Operational Excellence Customer Intimacy www.myCNI.com.my www.OOBEY.com
Strategy: Disciplines Operational Excellence (low cost producer) Ref:  The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
Intro: Market Discipline * Treacy & Wiersema,  The Discipline of Market Leaders , 1995 Product/Service Attributes Relationship Image www.myCNI.com.my www.OOBEY.com
Intro: Market Discipline * Treacy & Wiersema,  The Discipline of Market Leaders , 1995 Product/Service Attributes Price Quality Time Selection √ √ Smart Shopper Relationship Image Operational Excellence :   Quality and selection in key categories with unbeatable prices www.myCNI.com.my www.OOBEY.com
Intro: Market Discipline * Treacy & Wiersema,  The Discipline of Market Leaders , 1995 Product/Service Attributes √ Brand Time Function √ √ Best Product Relationship Image Product Leadership:   Unique products and services that push the standards www.myCNI.com.my www.OOBEY.com
Intro: Market Discipline * Treacy & Wiersema,  The Discipline of Market Leaders , 1995 Product/Service Attributes √ √ √ √ Service Trusted Brand Relationship Image Customer Intimacy:   Personal service tailored to produce results for customer and build long-term relationships Relations www.myCNI.com.my www.OOBEY.com
Summary: Today’s presentation 1. Business Model 2. Building Blocks    Done www.myCNI.com.my www.OOBEY.com
2. Strategies, Structures, Culture www.myCNI.com.my www.OOBEY.com
Dangers of Best Practice and Benchmarking… “ Abraham Wald’s Work on Aircraft Survivability”, M. Mangel and F.J. Samaniego Where would you focus reinforcement? www.myCNI.com.my www.OOBEY.com
Dangers of Best Practice and Benchmarking… www.myCNI.com.my www.OOBEY.com   Company Performance high low ‘ Best Practice’ theories low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line
Dangers of Best Practice and Benchmarking… www.myCNI.com.my www.OOBEY.com   Company Performance high low ‘ Best Practice’ theories low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line
How about Competencies? www.myCNI.com.my www.OOBEY.com   Success high low ‘ Superior’ Competencies low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line
Dangers of ‘Superior’ Competencies… www.myCNI.com.my www.OOBEY.com   Success high low ‘ Superior’ Competencies low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line
Dangers of Best Practice and Benchmarking… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Dangers of Best Practice and Benchmarking… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Focus: Corporate Alignment Financial “ To satisfy our stakeholders, what Financial objectives must we accomplish?” www.myCNI.com.my www.OOBEY.com   Internal Process “ To satisfy our customers, in which internal business processes must we excel?" Customer “ Who are our target customers? What is our value proposition?” Learning & Growth “ What capabilities and tools do our employees require to help them execute our strategy?
Linking BSC to Strategy Revenue Growth Base Retention Share Gain Positioning Adjacent Market New Business Operational Excellence Product Leadership Customer Intimacy Competencies Information Systems Motivation, empowerment, alignment Financial Learning & Growth Internal Process Customers  Investment Strategy Productivity Market Value www.myCNI.com.my www.OOBEY.com
Focus: Corporate Alignment Financial Learning & Growth Internal Process Customers / Distributors www.myCNI.com.my www.OOBEY.com   Revenue Growth Productivity Market Value Department Operations Supplier & Alliances External Involvement Target Markets Products/ Services Channel Strategies Human Resources Technology Information & Intelligence Systems & Processes
Alignment: 4-Wheels Model Culture Business  Model Strategic Planning www.myCNI.com.my www.OOBEY.com   Structure Person Leadership Resources
Alignment: Framework ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Culture www.myCNI.com.my www.OOBEY.com
Alignment: Framework ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com   Structure
Strategy: Framework ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com   Leadership
Strategy: Framework ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com   Person
Strategy: Framework ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com   Resources
Alignment: 4-Wheels Model Culture Business  Model Strategic Planning www.myCNI.com.my www.OOBEY.com   Structure Person Leadership Resources
The New Rules of Market Competition ,[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Market Disciplines Operational Excellence (low cost producer) Ref:  The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
Market Disciplines Operational Excellence (low cost producer) Ref:  The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
The New Rules of Market Competition ,[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
The New Rules of Market Competition ,[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
The New Rules of Market Competition ,[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Each Value Discipline Requires  Different Emphasis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Functional emphasis Process Emphasis Information emphasis Key metrics Key concerns www.myCNI.com.my www.OOBEY.com
[object Object],Each Discipline Requires Different Priorities & Resources Operational Excellence Customer Intimacy Organization, jobs, skills Management  systems Information and  systems Culture, values, norms www.myCNI.com.my www.OOBEY.com
Each Discipline Requires Different Priorities & Resources ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Organization, jobs, skills Management  systems Information and  systems Culture, values, norms www.myCNI.com.my www.OOBEY.com
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Each Discipline Requires Different Priorities & Resources Organization, jobs, skills Management  systems Information and  systems Culture, values, norms www.myCNI.com.my www.OOBEY.com
Each Discipline Requires Different Priorities & Resources Organization, jobs, skills Management  systems Information and  systems Culture, values, norms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Core Processes for Each Discipline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Sample KPIs for Each Discipline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
[object Object],[object Object],[object Object],[object Object],[object Object],Strategy: Value Disciplines www.myCNI.com.my www.OOBEY.com
Strategy: Value Disciplines ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategy: Value Disciplines www.myCNI.com.my www.OOBEY.com
The Final Lever: PAY ,[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
What’s the Difference?  ,[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Employee Distinction Group I (Talent Pool) Group II (   Potential) Group III (   Performance) Group IV (Counseling) 2 3 4 5 2 3 4 5 PERFORMANCE POTENTIAL ,[object Object],www.myCNI.com.my www.OOBEY.com
Curse of the Bell Curve ‘ A’ Staff ‘ B’ Staff ‘ D’ Staff ‘ E’ Staff ‘ C’ Staff www.myCNI.com.my www.OOBEY.com
Reminder… ,[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Other thoughts… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.myCNI.com.my www.OOBEY.com
Thank You. soft copy of slides:  www.totallyunrelatedrandomanddebatable.blogspot.com

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Constructing High Performing Organisations - Building Blocks, Structures, And Culture

  • 1. CONSTRUCTING HIGH-PERFORMING ORGANISATIONS: Building Blocks, Structures, And Culture Case Study, Concepts and Debatable Ideas Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com
  • 2.
  • 3. Workforce Psychology Behavior Influence Decision Making Direct Communication In-Direct Environment
  • 4. Summary: Today’s presentation 1. Business Model 2. Building Blocks www.myCNI.com.my www.OOBEY.com
  • 5. 1. Get the right Business Model first www.myCNI.com.my www.OOBEY.com
  • 6.
  • 7. The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
  • 8.
  • 9. The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
  • 10.
  • 11. The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time www.myCNI.com.my www.OOBEY.com Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
  • 12.
  • 13. What is the Business Model? USP Market Discipline Profit Model www.myCNI.com.my www.OOBEY.com
  • 14.
  • 15.
  • 16. Strategy: Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
  • 17. Intro: Market Discipline * Treacy & Wiersema, The Discipline of Market Leaders , 1995 Product/Service Attributes Relationship Image www.myCNI.com.my www.OOBEY.com
  • 18. Intro: Market Discipline * Treacy & Wiersema, The Discipline of Market Leaders , 1995 Product/Service Attributes Price Quality Time Selection √ √ Smart Shopper Relationship Image Operational Excellence : Quality and selection in key categories with unbeatable prices www.myCNI.com.my www.OOBEY.com
  • 19. Intro: Market Discipline * Treacy & Wiersema, The Discipline of Market Leaders , 1995 Product/Service Attributes √ Brand Time Function √ √ Best Product Relationship Image Product Leadership: Unique products and services that push the standards www.myCNI.com.my www.OOBEY.com
  • 20. Intro: Market Discipline * Treacy & Wiersema, The Discipline of Market Leaders , 1995 Product/Service Attributes √ √ √ √ Service Trusted Brand Relationship Image Customer Intimacy: Personal service tailored to produce results for customer and build long-term relationships Relations www.myCNI.com.my www.OOBEY.com
  • 21. Summary: Today’s presentation 1. Business Model 2. Building Blocks  Done www.myCNI.com.my www.OOBEY.com
  • 22. 2. Strategies, Structures, Culture www.myCNI.com.my www.OOBEY.com
  • 23. Dangers of Best Practice and Benchmarking… “ Abraham Wald’s Work on Aircraft Survivability”, M. Mangel and F.J. Samaniego Where would you focus reinforcement? www.myCNI.com.my www.OOBEY.com
  • 24. Dangers of Best Practice and Benchmarking… www.myCNI.com.my www.OOBEY.com Company Performance high low ‘ Best Practice’ theories low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line
  • 25. Dangers of Best Practice and Benchmarking… www.myCNI.com.my www.OOBEY.com Company Performance high low ‘ Best Practice’ theories low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line
  • 26. How about Competencies? www.myCNI.com.my www.OOBEY.com Success high low ‘ Superior’ Competencies low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line
  • 27. Dangers of ‘Superior’ Competencies… www.myCNI.com.my www.OOBEY.com Success high low ‘ Superior’ Competencies low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line
  • 28.
  • 29.
  • 30. Focus: Corporate Alignment Financial “ To satisfy our stakeholders, what Financial objectives must we accomplish?” www.myCNI.com.my www.OOBEY.com Internal Process “ To satisfy our customers, in which internal business processes must we excel?" Customer “ Who are our target customers? What is our value proposition?” Learning & Growth “ What capabilities and tools do our employees require to help them execute our strategy?
  • 31. Linking BSC to Strategy Revenue Growth Base Retention Share Gain Positioning Adjacent Market New Business Operational Excellence Product Leadership Customer Intimacy Competencies Information Systems Motivation, empowerment, alignment Financial Learning & Growth Internal Process Customers Investment Strategy Productivity Market Value www.myCNI.com.my www.OOBEY.com
  • 32. Focus: Corporate Alignment Financial Learning & Growth Internal Process Customers / Distributors www.myCNI.com.my www.OOBEY.com Revenue Growth Productivity Market Value Department Operations Supplier & Alliances External Involvement Target Markets Products/ Services Channel Strategies Human Resources Technology Information & Intelligence Systems & Processes
  • 33. Alignment: 4-Wheels Model Culture Business Model Strategic Planning www.myCNI.com.my www.OOBEY.com Structure Person Leadership Resources
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39. Alignment: 4-Wheels Model Culture Business Model Strategic Planning www.myCNI.com.my www.OOBEY.com Structure Person Leadership Resources
  • 40.
  • 41. Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
  • 42. Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
  • 43.
  • 44.
  • 45.
  • 46.
  • 47.
  • 48.
  • 49.
  • 50.
  • 51.
  • 52.
  • 53.
  • 54.
  • 55.
  • 56.
  • 57.
  • 58.
  • 59. Curse of the Bell Curve ‘ A’ Staff ‘ B’ Staff ‘ D’ Staff ‘ E’ Staff ‘ C’ Staff www.myCNI.com.my www.OOBEY.com
  • 60.
  • 61.
  • 62. Thank You. soft copy of slides: www.totallyunrelatedrandomanddebatable.blogspot.com