Here is a Webinar which provides further insight into my book, 'The Wisdom Chronicles: Competing to Win'. If you look at the slides in 'notes' format, you will see some of the comments I made as well. Enjoy.
Dr. Ted MarraProfessor Strategic Leadership en Cotrugli Business School
9. The Leadership TeamThe Leadership Team
It must be a ‘ team’ – ‘ all one team’
All team members must be passionate and embrace the core
values/beliefs of the organisation – ensuring they are role models and
are leading by example
Common understanding, commitment to achieving and regular
reinforcement of the core purpose & vision
Inspirational – looking for ways to help their people reach their full
potential; engagement specialists
Earn and maintain trust and confidence of all stakeholders
Doing the right things right – holistic not parochial thinking;
excellence, not just quality; long-term view, not expediency
Take every opportunity to ensure their organisation is creating and
delivering value to all key stakeholders
11. Merck (Late 1920’s)Merck (Late 1920’s)
Core Shared PurposeCore Shared Purpose
We are in the business of preserving and
improving human life. All of our actions must
be measured by our success in achieving this
12. Your Number OneYour Number One
Enabler or Inhibitor toEnabler or Inhibitor to
Your Organisation’s SuccessYour Organisation’s Success
14. Our Values @ weworkOur Values @ wework
We do what we love and are connected to something greater than ourselves.
We are creators, leaders, and self-starters. We try new things, we challenge
convention, and we’re not afraid to fail.
We are genuine to our brand, mission, and values. We're not perfect, and we don't
pretend to be. We are, though, always honest and as transparent as we can be.
We never settle. We get shit done and we get it done well. Be persistent and knock
down walls--literally if you have to. You have our permission.
We are grateful for each other, our members, and to be part of this movement. We
don't take success for granted. We’re happy to be alive.
We are in this together. This is a team effort. We always look out for one another. We
have empathy, we know we're all human, and know we can’t do any of this alone.
16. Renewal – The Continuous RejuventationRenewal – The Continuous Rejuventation
The Operating Environment
a drop off!
‘ I want to discuss why a company exists in the first
place… I think many people assume, wrongly, that a
company exists simply to make money. While this is an
important result of a company’s existence, we have to
go deeper and find the real reasons for our being… We
inevitably come to the conclusion that a group of people
get together and exist as an institution that we call a
company so that they are able to accomplish something
collectively that they could not accomplish separately –
they make a contribution to society
20. The BT Ireland Vision
“To become the leading provider of networked
IT services and communications solutions on
the island of Ireland by driving value for our
customers and people and through relentless
pursuit of outstanding service, innovation and
21. When the Direction is Unclear, the
Message Interpreted Differently or
There are Hidden Agendas
Doing the right things for the business
and doing them right can be compromised as
the ‘silo mentality’ reigns supreme
22. Total Petroleum – Desired Future
“All One Team”
24. Vision Alignment
V OS BEI
D1 D2 D3 D1 D2
Madinah Institute Webinar: Magic, Myth, Madness orMadinah Institute Webinar: Magic, Myth, Madness or
Best Practise Methodology? 11 September 2013Best Practise Methodology? 11 September 2013
29. Defining ‘Value’ – The RightDefining ‘Value’ – The Right
Value is any intangible or tangible ‘ benefit’ which the
customer or other stakeholders perceive & appreciate
and which the competition or other providers are either
unwilling or unable to make available
31. Attitude of
what you do
Be the best
you can be –
The 8 Pillars of Service Excellence
32. 80 % 18% 2%
Systematic approaches utilized
The Innovation Continuum
33. Managing the Customer Relationship:
Customer Engagement Map (B2B)
Sales Process Delivery
Installation Repair Service / Maintenance
Training Technical Support
“Xerox Copier Business”
What are some of the Critical Questions Senior Management Need to Ask
and Answer about this Engagement Map?
36. Defining ‘Agility’ – The RightDefining ‘Agility’ – The Right
Agility is the capability of an organisation to anticipate,
clarify, assess and act e.g., decide and execute on an
opportunity (or counter a threat) faster and better than
37. The Changing Requirements for
Rapidly Changing Stable
Where is your organization today? How fast is your operating and market environment
Whether you like it or not – whether you are ready or not, every organization is moving
toward the most uncomfortable cell in the above matrix!
Increased need for
data & information
surprises, e.g., not
Travel to Location
Managing the Consumer Relationship:
Consumer Engagement Map (B2C)
The Customer Promise,
Convince & Convert to or
Resolving problems or
return in the
40. AT&T Universal Card Services
Operations Feedback Strategies
Selected Feedback Strategies
Data Service Examples
Customer Satisfier Survey
Customer Value Tree
Data Source Ex.
Cust. Satisfier Srvy.
Data Source Ex.
Data Source Ex.
Call Type Trend
Organization Improvement Activities
Customer Listening Post Team
Modification of Existing
Integration of Cust.
Feedback into the
(see Item 3.1
Customer Relationship Management Strategies
Malcolm Baldrige Award
Summary Document provided
by AT&T at the 1992 Winner’s
43. Identifying the Key Strategic
Decision Making Positions in Your
What Decision Domains are the focus of more of your decisions – Human Performance
Excellence; Operational Excellence; Competitiveness and Growth; Relationship
The Decision Making Process
“High Level” View
“Systematic, Integrated, Comprehensive”
Moving Toward Hyper-Decision Making
Feedback Loop to Planning and
Future Decision Making and Execution
• = Identify, collect and analyse the right and most comprehensive data and information;
ensure that not only core decision factors but also other ‘influencing’ factors are considered;
include a rigorous evaluation (not just a ‘gut feel’) of the potential consequences of alternatives including
what would happen if only 50% of the desired impact occurred; the value created and/or delivered
and to whom; what if we did nothing?
** = Is the decision approaching optimality? Are we minimising the ‘cost of lost opportunity?
*** = Is the execution flawless?
**** = Are the right , best and most advanced analytical tools being utilised for assessment? What about
I would like to personally welcome everyone – thank you for coming!
I have been fortunate:
160 organisations – private, public, NGO; Hi-tech, low-tech; large multinational (shell, IBM, Xerox, Johnson and Johnson, Boeing) – virtually every industry, product/service category; SME’s
+ 28 years of working with either the Baldrige or EFQM Excellence frameworks
Chronicle – record of a journey – my journey – my observations and hopefully some wisdom
How I define wisdom – analogy to 98 Octane petrol
To me, running an organisation today is a lot like the game of chess:
Anticipation of your opponent (or other forces in your operating environment)
Planning your own moves in advance and having contingencies
There is a time limit – ‘opportunities’ - the ‘window stays open just so long’ – General Patton
How to build an enduring organisation – one that through dynamic change and turbulence, stands the test of time and through it all sets the standard for excellence by delivering superior performance and continuously creates and delivers value to all key stakeholders
Business schools and consultants love to make the world more complex – buzz words like complexity and big data reign supreme (although as Steven Jobs has said, big data is about the past. Decisions are about the future.
In the end, you have to choose – complexity or simplicity. I offer the latter
In my mind the world is a complex or simple as you allow it to be. One can easily create a hundred parameters to worry about when running an organisation, but not that many of them really count for that much. Academics and consultants love it because it gives them something to write and teach about or consult about
To me, if I have learned anything in my 42 years, it is that success comes down to having a relentless focus on a vital few factors. That’s really what my book is all about – those vital few factors as I see them – the ones which allow you to ‘cut through the fog’ of things like complexity and big data and stay on track toward better ensuring you win a ‘pole position’ or something close to it in the future.
To me there is only one place to start and that is with the business model, which, as you will see, I define differently than most
My observations over time have been that the business model of an organisation should consist of the following:
We are going to speak briefly about each one of these
Two key observations:
The leadership team of an organisation will either make it or break it as far as organisational success is concerned
What I have seen, and others like Dr. Philip Sadler in London, top authour in the UK, is that 90%+ of the time when you see an organisation under-performing or failing the root cause is due to a leadership team which is under-performing or failing to do the right things right for their organisation
What are a few of the characteristics of the leadership team that I have seen can make a difference between success and failure of an organisation? (there are more in my book, The Wisdom Chronicles)
I will just highlight a few:
Role model – Agrokor
Relationship mastery – employee engagement – PBZ Bank; customer engagement – lethal weapons
Doing the right things right – Peter Drucker (one of these is to create and deliver value to all key stakeholders )
The shared purpose – people must buy in, feel a sense of pride and ownership, resonate (feel good)
It is the anchor that keeps the ship from drifting into uncharted or dangerous waters,
Keeps senior management from being distracted (e.g., constancy of purpose – my 7 Deadly Sins of Management research)
Let’s look at an example
Literally at EVERY management committee meeting (and Board meeting) one of the last items on the agenda should be: ‘By the decisions we made here today, have we been true to our core purpose – our reason for being? How do we know?’
Well, this says it all really and that #1 enabler or inhibitor is your (who knows?)
Your culture – how you do things around here – your attitudes, values/beliefs and associated behaviours
Fear and intimidation/ draconian – General Motors – I worked there almost 8 years – (another deadly sin of management – anti-role model behaviour – de-motivates, de-moralises, erodes the fabric of the organisation – weakens it
Or strengthens it – here’s an example
Redefining the shared office industry with a new model
What we have here are the values of the organisation
I cannot tell you the number of organisations that I have gone into where there is nice list of values on the wall behind lucite or glass (teamwork, innovation) and no one knows what they mean – they have never been defined or reinforced and senior management behaves badly and inconsistently relative to the values (they have not been internalised, they don’t ‘live’ them) – most of the time they don’t even ‘talk’ about them
The above need to go one step further – to the behaviours – what would you need to observe an employee including a senior executive doing in order to be able to say ‘they are a role model’ for teamwork or innovation or being grateful?
Here’s possibly a new concept for many of you
One of the comments by Gary Hamel last year at a conference was the need to develop organisations which continuously renew themselves as few have been able to do.
Some like Proctor and Gamble, Nestle, Ford have done so – other newer entrants such as Apple, Google, Amazon, Ebay were born with that genetic characteristic. Kodak, General Motors, Blackberry didn’t – to mention just a few
It is the seamless integration of adaptation, innovation and learning as shown in the following diagramme
Adaptation is more of an outside in process – your sensing system must identify emerging trends, changing requirements, competitive intelligence, technological evolution and more which can impact what you do as an organisation as well as how you do it – ‘change’ – linkage should be to your core competencies
Innovation is more of an inside out process in my opinion – it is here that you are building a stimulating environment which nurtures creativity and innovation – always looking for new and better ways of doing everything you which add value – a key
Learning – are we conducting lessons learned sessions after every project or initiative? Do we ask as supervisors, managers and senior managers almost daily – what can we do better and differently tomorrow to improve our performance or the performance of our organisation? We must ‘reflect’ and ask ourselves ‘What have we learned this past week that can help us be better next week?’
Are we a learning organisation or are we lack any institutional memory – no documentation – information carried in people’s heads, tribal knowledge?
Principles of engagement – ‘with society’ and with communities
Image/reputation/brand strength is impacted by what we do or don’t do as just one example:
governance, ethical business practices, corporate social responsibility, environmental sustainability issues and more would be included here
Another is Johnson and Johnson Credo, Merck, Sony and more believe that they have a responsibility to be stewards for ensuring better quality of life for people – for communities, for society
I consider the ‘output’ of the business model to be the ‘vision’ and it should be ‘visionary’ and clear to all and be time delimited (not something like: our vision is that during the next 100 years we will get better…..)
It must inspire people – make them want to participate – to follow, to join you on your voyage to the future – excite them, get them to rally around it and to feel as though they can contribute and make a difference
It must do the same for key stakeholders – key customer accounts, for example, suppliers and more
You know you have a problem when the audience begins to yawn when the vision statement is read!
The major issue faced by organisations is not just formulation, but more the execution – the how do we get there
One last point:
Does every employee know what their contribution needs to be and are they fully capable of making that contribution – have we given them all the knowledge, skills, tools and methods they need??????????
This is just one example. What’s missing? Timing – when will this be achieved?
What is included? CSF’s
The challenge is how do you harness the full power of the organisation to achieve the vision? What do I mean? Let’s take a look at two charts which can help………
This is often the way it is after the vision is announced – everyone may nod their head ‘yes’ in the management committee meeting, but what happens after is anyone’s guess……………
What do we want? Anyone?
Here, everyone across the organisation as well as up and down the organisation is focused on one thing - the common goal of achieving the vision
Organisational alignment is not a new concept – in 1994 ODI in Boston and Paul Labovitz wrote a book on it (I had discussions with him). Unfortunately it went no where. Senior management didn’t get it and, well, to be honest, it was not defined in the best possible way. Like many consultants, it was overly complicated
It is, nonetheless, one of the single most powerful approaches – if done right (as you will see in the next diagramme) available to an organisation for achieving success – and superior performance as well as achieving the vision!
One reason for that is that if done right, the organisation is constantly challenged – just as in the case of the core purpose by having to answer questions such as: Is each of our key business objectives and strategies defined in a way that we know their achievement will lead to achievement of the vision – avoid wasted effort and wasted resources?
I won’t go through this. There is great webinar presentation – by me, as it happens, on this topic – it is in the archives of Madinah Institute.
Just a couple items of mention:
CSF – from BT – still too high to develop good measures (the Titanic and Corporate level measures analogy)
KBO’s/strategies – action plans – characteristics (see my book and the Webinar for more detail on this) – ownership is part of the action plan – not much good to establish an action plan if no one is accountable
Infrastructure – again my book there is a discussion of the concept of decision domain councils – human performance excellence, operational excellence, relationship excellence, competitiveness and growth and the benefits – subsets of the MC each with it’s own SBIT of hi-pots
Balanced scorecard – although old, it is a foundation – we will look at a new generation one shortly
This really says it all
Peter Drucker said – create a customer
Then I said – identify the customers you want, attract them and keep them by building an exceptional relationship based upon the most appropriate value proposition (again see my book)
I have since simplified it even more
It’s that simple
Here it is – this is the realisation step – the output of all you do as an organisation. If you aren’t creating and delivering value, you shouldn’t exist and I don’t mean stakeholder value – smoke screen for short-termism, greed and profits come first – jeopardising the long-term success of an organisation (Enron, Lehman brothers, Tyco, you name it) – research clearly shows it to be the case as well - an invention of some creative consultants & financial analysts or economists to help make senior management get fatter bonuses
Once again, based upon my observations over the years, the alignment phase includes the formulation and execution of your plans – all of which should result in creation and delivery of value
Those plans should, in my experience focus most often on building capability in a few key areas of the organisation. Sure, there may be others, but if I had to pick the most important ones they would be these:
Operational excellence – getting the routine things right first time, every time – reliability – the foundation.. Reducing variation (6-sigma/lean or other techniques); then building organisational capability in the key areas identified in this chart
Competencies – 2 types core and organisational (7 sins/CEO’s/Managing Directors)
Stakeholder engagement – more about listening , learning and taking action
Human performance excellence – moving beyond ‘feet’ and even ‘head’ to heart – energy, passion, emotional attachment – moving beyond obedience, diligence and expertise to taking initiative , stimulating creativity and releasing passion
New product, service and support development – innovation, customer/end user focus
So, now, how do I define ‘value’?
Just that simple
What are the sources of value? In my work I have found 10. Here they are.
I won’t go into these in any detail – just a few mentions. Chapters 3 and 4 of my book go into great detail on this topics
I will just say this quickly about:
Process – 2 main issues: ease of doing business; responsiveness/cycle time
Now here are a few more
The factors I have found over the years that customers want more than any others from you each and every time they do business with you.
A customer may forget what you say. they may even forget what you do. But they will never forget how you made them feel.
My Morrison’s back to the floor experience – feel good feeling, glad they came, left with a smile on their face – engaged them made them feel special
How many of your senior management could do it?
The truth about innovation – no silver bullet, but needs to be there to a greater or lesser extent – Sonoco products, (low), McDonalds (medium) or Apple (high)
No innovation should be pursued unless it is clear that value is being created for some stakeholder somewhere
This is my opinion of how innovation breaks down – again all innovation is good if it creates value, but realise that 80% is ….., 18% is ….. and 2% maybe is ………… (IPad – redefines an industry - a disruptive technology )
How I define it:
‘Always looking for new and better ways of doing everything you do which adds value for some stakeholder’
This is critical yet so few executives understand it – when I ask them to draw this – they are very often clueless.
Let’s quickly go through it – talk about the interactions
What’s most important
Where is competition doing better
Where can we add greater value so that customers will acknowledge and appreciate it
Our people ………
Customer having greatest difficulty (how would you know?)
How do customers ‘feel’ about doing business with you? It will determine whether they will be back – unless you have a monopoly
Anyone have a cat as a pet?
Lost its whiskers – how would it behave? Unsure of itself?
Same for an organisation – it needs to have good whiskers – sensing system – strategic information architecture or the judgement of the leadership team will be impaired - lacking
Your ‘sensing system’ is THE Key to agility and key to decision making – optimal decisions faster and better
Let’s take a quick look at both of these issues – first agility. What do I mean?
Without a best practise sensing system, how can your organisation be agile? It is a CSF!
Here is what is happening
This is a simplified picture of the operating environment in which many organisations find themselves
Read the words
if time, talk about General Motors 1973 and then …………………
This concept of sensing system clearly carries over to the engagements customers have with your organisation. Here is a retail setting – it could be Bauhaus, Home Depot, B&Q, any retailer really (is advertsing working – attracting customers – the right customers? – it starts there and keeps going ……….)
At the very least you would want to know what? How many of the 4 key decisions identified above in the diagramme are being made in your favour. If not, why not?
Are your customers coming back? Are they buying more? Are they giving positive referrals to others?
There is clearly a lot more beyond just this as the next diagramme clearly shows
Here you see other dimensions – other parameters that need to be included in any comprehensive ‘sensing system’
Again my book devotes a full chapter – chapter 5 to this topic
However, many organisations build their sensing system to complement their core strength – for example AT&T Universal Card Services (or First Direct Bank in the UK)
We won’t go into detail here, but have look and you will see that in this ‘customer relationship domain’ the ‘sensing system’ is, in fact world class. This system, by the way was one of several factors that contributed to AT&T Universal Card Services winning the prestigious Baldrige Performance Excellence Award in 1992, marking this company as being ‘world-class’ or among the best of the best
Yet, this system which is 23 years old remains world-class today! Few organisations have anything even remotely close.
A few words on decision making – a topic which is so vitally important to organisational success but about which little is written, little research is done.
Would you say this is a key topic?
Who is writing or doing things in this area: PWC, Baker Street, Informed Decisions, Ontonix, Quantellia…..
My own ‘Hyper-Decision Making’ – slide share
An organisation’s ‘decision intelligence quotient’ – there may be more, but ………….
Is decision making in your organisation better than a zero-sum game?
Strategic positions – next chart
What are yours? How well are decision being made? Are you experiencing any ‘cost of lost opportunity’ because too slow, sub-optimal, unintended consequences, more?
Decision making should be a legitimate business process
Here is an example – walk through it quickly
Note: The ‘sensing system’ plays a huge role in the planning step and in assessing impact – to mention just a two.
So how do we measure if we have been successful as an organisation?
This is the actualisation step – the measurement step
Are we even measuring the right things and doing so the right way?
If I had to pick 4 performance categories, these would be the ones – to me most important of all
In the beginning there was…………..
The logic is inescapable – Kaplan and Norton 1996, but Baldrige in 1987!
Trying to drive strategic planning from this, to me is putting the cart before the horse – yet some practitioners try
Aside from the fact that the research says 60-80% of balanced scorecard implementations fail
But the logic is the key and needs to be kept in mind as follows:
All business results are the consequence of people working in a process – no other way
if you had your choice – great people, even dysfunctional processes or dysfunctional people and great processes, which would you pick and why?
Your people and processes touch the customer in many cases – your engagement maps – remember. If you do it right, the customer ‘feels good’. If they feel good, good things will happen for your organisation one of which is financial success
Dave McCamus 1987 – Xerox Canada – ahead of his time
Here is what I am seeing as the new generation balanced scorecard – or at least the performance categories senior management should start paying attention to.
Why? Because competitiveness is being driven, influenced by more critical factors than before. How much each will ‘weigh in’ or count is unclear – each organisation will be different. what is clear to me is that these performance categories need to be seriously evaluated for every organisation moving forward if they are serious about ‘winning’ and not just being an ‘also ran’
However, relentless focus on purpose and vision – and critical success factors are keys
Talked about human performance excellence, agility, renewal, societal benefits, value creation and delivery, relationship mastery
Human performance excellence – generational issues – Millennials, Gen X, Y, Z
resiliency – J&J
Execution – research - Childress - Fastbreak 85%/15% (formulation/execution)
Technology – digitalisation, mobility, connectivity, networking increasingly critical
So, here we are – we have finished our tour for this time.
I hope you have gained some insights and understanding – possibly are feeling compelled to take action for improvement in key areas of your organisation as a result.