60-70% of change initiatives fall short of expectations because leaders have "institutionalized Underperformance." By creating a "Learning Organization," yours need not be among them. Senior executives facing radical change can either: Defer crucial decisions; Engage (and train) external consultants, OR; Leverage tomorrow's leaders to build the "Learning Organization" of tomorrow Lead their organizations to achieve greater than $350 million in financial benefit Resolve significant organizational pain points Radically transform culture Develop the leaders of tomorrow as together they create the future-state

1. TQPI℠
TransformationManagementModel Overview
& InnovationQuotient℠(IQ)Assessment
Overview
• Innovation Quadrant
• Operational Excellence Quadrant
• Alignment Quadrant
• Engagement Quadrant
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2. Top-QuartilePerformance Institute℠
• TQPI℠ is a global community of transformational experts
partnering to help people, organizations & each other
achieve best in class
• wwwTopQuartile.org
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3. George Henderson has helped mid-sized to Fortune 500 clients achieve more
than $350 million in financial benefit since 2002. A speaker, writer, MBA and
executive coach, he has led tough business
transformations including mergers, organizational and management
restructurings, shared services, in-sourcing and outsourcing key functions, and
business process reengineering. His replicable approach to change
management links people, strategy, operations and execution, creating
sustainable models for continuous improvement.
Formerly a nationally recognized rugby coach, George has 25 years of
international experience in consulting, business process re-engineering, Activity
Based Costing, Lean Six Sigma, Balanced Scorecard and leadership in the change
management environment.
George graduated from Tulane University’s Executive MBA program in 1996.
He completed Villanova’s Lean Six Sigma Master Black Belt certificate program
in 2007 and was certified by Kaplan & Norton in the Balanced Scorecard
methodology in 2009.
George helps companies resolve immediate pain points in a self-funding way
while developing the organizational discipline for continuous improvement.
Using tools such as the Balanced Scorecard, Lean Six Sigma and Activity Based
Costing he helps clients reduce costs, eliminate waste, improve customer
satisfaction, and increase earnings. By using short-term wins as learning labs
and allowing people to develop their own solutions, teams transfer
knowledge, are self-funding and succeed where others fail.
Executive Director
George Henderson
ghenderson@topquartile.org
www.topquartile.org
Lead Facilitator
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4. Introduction
• Common Transformational Challenges
• Leadership Skill, Commitment & Sponsorship
• Resourcing
• Realistic Expectations & Timelines
• Culture
• Execution
• The TQPI℠ Transformation Management Methodology
• Roadmap of Self-Funding wins that simultaneously achieve:
• 10:1 Financial Returns
• Resolve organizational Pain Points
• Aligned with Strategy
• Mentor tomorrows leaders while creating the future state
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5. 29% Org Change
22% Politics
26% Lack CRM Ability
12% Poor Planning
4% Budget Problems
2% Software Problems
1% Bad Advice
4% Other
Organizational
Change 29%
Company
Politics / Inertia
22%
Lack of
Process Skill /
Understanding
26%
Poor
Planning 12%
Source: Based on a survey of 700 CRM practitioners conducted by Richard Forsyth.
Published CRM-Forum, June 2001
Why Technology Projects Fail
How We Institutionalize Underperformance

6. Why 89% of Failures Fail: The “Four P’s”
• People – 29% Organizational Change
• Process – 26% Lack of Skill / Understanding
• Politics – 22%
• Planning – 12% Poor Planning
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7. Definitions
• A PROCESS is a sequence of value-added steps leading to a
predictable outcome
• A SYSTEM is a collective grouping of processes organized
around a common function
• TRANSFORMATION MANAGEMENT is a systemic approach to
taking people and organizations to a higher state, while
avoiding the pitfalls commonly associated with change
• Change is a Process that should lead to a
Predictable (and Positive) Outcome! 7
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8. Copyright(C)2012Top-QuartilePerformanceInstitute,LLC
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Engagement Alignment
Operational
Excellence
Change
Management
Planning
Themes & Teams
TQPI℠TransformationManagementModel℠
InnovationQuadrant:StrategicIntent,CommissioningTeams,ProgramPlanning &BuildingthePlatformforChange
Strategic
Intent
Guiding Coalition
Innovation
Known
Solutions
New
Solutions
New
Opportunities
Known
Opportunities
Innovation
• Insights
• Decision Making
• Engagement
• Alignment
Execute
& Sustain

9. What is Your IQ (InnovationQuotient℠)?
• Do your behaviors align with your aspirations?
• Culturally, what sort of organization are you?
• Ship Adrift – Riding on past success
• Intellectual Cruise Ship – “Do your job”
• Merchant Marine – Operationally effective
• Navigators – New Horizons
• Innovation = IDEA
• Insights
• Decision Making
• Engagement
• Alignment
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10. TQPIInnovationQuotient℠(IQ)Assessment
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IDEA Attribute
Ship Adrift
(Score of 0 to 1 = Ship Adrift)
Cruise Ship
(Score of 1.01 to 2 = Cruise Ship)
Merchant Marine
(2.01 to 3 = Merchant Marine)
Navigator
(Score of 3.01 to 4 = Navigators) Score
Insights
Idea Gathering
* People with new ideas are
considered trouble-makers
* Responses to a new idea might be
along the lines of, "That won't work
here. We are unique." or "Has your
idea worked here before?" or "What
has that got to do with your job?"
* Not invented here
* First response is to list what's
wrong with it
* Lots of opinions but people won't
champion solutions
* "Somebody should do something
about that …"
* Discussion is more about placing
blame or trashing management than
resolving problems
* "We formed a committee but
nothing happened …"
* Study the competition for ideas
* Voice of the customer / process
* Working teams to find a better
way
* Formal and informal processes for
internal ideas to get implemented
* People are encouraged to identify
and solve problems
* Robust internal and external
scanning
* Robust competitive analysis
* Robust customer insights efforts
* R&D is well resourced
* Those with new ideas are
recognized and rewarded
* "Innovation is part of my job …"
* "How can we do this better?"
Dealing with Uncertainty
* Focus on what we know
* Avoid uncertainty
* Wait and see
* "Let it burn … then respond to the
crisis"
* We don’t' recognize problems,
just symptoms
* The above comments apply at all
levels, including upper management
* Delegate uncertainty upwards
* Documentation and training, if
they exists, are not relevant, not
followed and/or not enforced
* Ask for guidance
* Clarify at the top
* We are paid to "do," not to think
and if something changes, they'll let
us know
* When we recognize a problem we
report it
* Appropriate decision making
authority is delegated
* Get the facts and make a
recommendation
* There are processes for sorting it
out at lower levels
* Processes and policy, for the most
part, are documented and people
are trained … even on what to do
when they are uncertain, and
usually their immediate supervisor
can resolve it
* When we recognize a problem we
try to solve it, or ask for approval of
our recommendation(s) if necessary
* Complex challenges create
intrigue
* Willing to experiment
* Delegate complex challenges to
the functional level
* One of our competencies is
thriving in a VUCA (Volatile,
Uncertain, Changing & Ambiguous)
environment … and we hire and
staff accordingly
* We generally see and resolve the
problem before it is a problem
Permission to Disagree
* Senior team walks on eggshells
with the CEO
* Shoot the messenger
* Rank = right
* People are treated politely but
there is no process to engage new
thinking
* Ideas get tabled or die in
committee
* Little or no feedback
* Leaders are not appropriately
accountable to subordinates for
errors in judgment
* Healthy disagreement is part of
the process
* Those who disagree are treated
respectfully
* Honest feedback, even though
difficult, is expected and valued
* Good ideas rule; hierarchy does
not
* Alternative thinking is treasured
* Opposing ideas are viewed as
opportunities for learning &
exploration
* Teams intentionally include those
with differing viewpoints
Creating Clarity from Chaos
* Chaos and/or crisis management
are the norm
* "We'd rather fight fires than
capture the arsonist"
* Few working mechanisms for
internal or external scanning
* Reporting is largely aggregated,
historical, conflicting and/or
irrelevant
* Excuses for poor results are
acceptable
* Our business model is obsolete
but we don't quite know what to do
about it
* Assign the situation to a
committee without giving
appropriate executive sponsorship,
deliverables or a clear scope of
work
* Get consultants to write a report
or create binders full of process
diagrams that are not accurate and
that nobody uses
* We spend considerable time
refuting each other's facts &
analysis
* There is a bias for measurement,
analysis and getting to root causes
* There are resident experts and "go
to" persons for problem resolution
* Policies & procedures are in place
* Training is evident
* Reporting is relevant and real-time
* We operate well in a VUCA
(Volatile, Uncertain, Changing &
Ambiguous) environment
* We have systems, a model,
language and culture capable of
discussing and addressing the
dynamics of a complex issue
* We look for breakthroughs by
eliminating compromise
* We seek new solutions to new
problems vs. old solutions to
existing problems
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11. Conclusion
• Common Transformational Challenges
• Leadership Skill, Commitment & Sponsorship
• Resourcing
• Realistic Expectations & Timelines
• Culture
• Execution
• The TQPI Transformation Management Methodology
• Innovation
• CEO’s Strategic Intent Summit
• Eight-Weeks to Excellence: The Guiding Coalition
• Creating the Executive Mandate & Master Plan
• Alignment
• Change Governance
• Cascading the Master Plan
• Developing the Roadmap of Self-Funding Improvements
• Engagement
• Developing Internal Consulting Capabilities
• Execute the Roadmap of Self-Funding Improvements
• Make Problem Solving an Operational Competency
• Operational Excellence
• Four Phases of Execution (Readiness, Early Wins, Expand, Anchor)
• Achieve and sustain success
• Deliverables
• Self-Funding Wins that simultaneously achieve:
• 10:1 Financial Returns
• Resolve organizational Pain Points
• Execute Strategy
• Mentor tomorrows leaders while creating the future state
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