True Story. Leadership Research. What it means for organizational change activities such as Performance Management and Asset Management

Transcription

1 Research American Public Works Association 2005 Congress & Exposition Minneapolis, MN September 13, 2005 Richard L. Gerstberger TAP Resource Development Group What it means for organizational change activities such as and Asset Management True Story Why Good Improvement Programs Fail

2 A True Story True Story Some Background Information Multi-billion dollar manufacturer Produces powerful, potentially harmful and very expensive products Must work first time, no margin for error Organized in a highly structured manner Operates with strict policies & procedures & management are authoritative, directive and systematic True Story To increase organizational effectiveness they: Created Organizational Development Department Staffed up with internal and external professionals Determined that the organization was outdated, outmoded, and ineffective.

3 True Story To increase organizational effectiveness they implemented: Quality circles Participative leadership & management Self-directed teams Benchmarking and best practices TQM Empowerment Human potential development Management by consensus True Story All organizations are, fundamentally, living social organisms Organizational culture is more powerful than anything else System-focused interventions work: componentcentered interventions usually do not Interventions clearly tied to business strategy work, those not clearly tied to strategy do not. One Size doesn t fit all There are some basic fundamentals that are the same Four basic ways of leading Strategic Focus determines the right approach to leadership

4 Organizational Development Strategic Focus Culture Process Organizational Development Focus Alignment Integration Balance Completeness Organizational Development Strategic Focus The fundamental focus for action that the organization or unit must take in order to provide significant added value to its customers.

5 Strategic Focus Customer Intimacy* Total Solution. Synergistic customer relationship High customization. Incremental, step-by-step relationship with customer, High demand for co-involvement Enrichment + Growth of customer Fuller realization of potential Raise the human spirit Further realization of ideals, values, higher order Purpose Operational Excellence* Low Unit Cost Consistent, reliable, dependable service at appropriate quality Market share dominance High distribution-intensive Life-and-death Product * Best Product/Service Excellence. Create market niche Constant innovation to stay ahead One-of-a-Kind * Treacy & Wiersema + William Schneider Strategic Focus Customer Intimacy Operational Excellence Enrichment Product * Strategic Focus Customer Intimacy Nordstrom Harley Davidson PR Firm Home Remodeling Contractor Enrichment Habitat for Humanity ARC Celestial Seasonings W. L. Gore Operational Excellence Wal-mart Federal Express Southwest Airlines Monopolies Emergency Organizations Utilities Product Intel Law Firms Lexus Sony Bell Labs (Lucent Technologies) From CDG * Treacy & Wiersema

6 The Basics of Definitions is creating a vision and direction for the organization and mobilizing people to accomplish the vision and direction. Books on MacGregor: The Human Side of Enterprise Melohn: The New Partnership Whiteley & Hessan: Customer Centered Growth DePree: is an Art Covey: Principle-Centered Kouzes & Posner: The Challenge Donnithorne: West Point Way of Jaques: Requisite Organization Sullivan & Harper: Hope is not a Method Freiberg & Freiberg: Nuts Peters & Waterman: In Search of Excellence Grove: High Output Management Tomasko: Rethinking the Corporation

7 Core Principles Participative Foster full participation First among equals Quick adaptation Build Trust Push for consensus Team decision making Ensure diversity Charismatic Cultivator Steward of others Foster development Build commitment Articulate values Empower people Inspire people Build faith Directive Authoritative Maintain control Carefulness Firmness Preserve Stability Ensure predictability Standard Setter Stretch people Conceptual visionary Taskmaster Utilize expertise Set high standards Push the limits Utilize incentives Push for innovation Books Participative MacGregor: The Human Side of Enterprise Melohn: The New Partnership Whiteley & Hessan: Customer Centered Growth Directive Donnithorne: West Point Way of Jaques: Requisite Organization Sullivan & Harper: Hope is not a Method Freiberg & Freiberg: Nuts Charismatic DePree: is an Art Covey: Principle-Centered Kouzes & Posner: The Challenge Corporate Development Group, Inc. Standard Setter Peters & Waterman: In Search of Excellence Grove: High Output Management Tomasko: Rethinking the Corporation Alignment Core Strategic Focus Core Practices Corporate Development Group, Inc.

8 Setting Direction Strategic Focus Customer Intimacy Unique Customer Goal Attainment Operational Excellence Organizational Goal Attainment Enrichment Value Centered Goal Attainment Product Conceptual Goal Attainment From CDG * Treacy & Wiersema District s Purpose The District s purpose is to provide the best value to our current and future customers by protecting public health and the environment of a growing region. We do this by providing a full range of safe, efficient, and innovative wastewater collection and conveyance services.

9 Setting Direction Mobilizing Commitment Trust Stewardship Integrity Maker of Meaning Organizational Values Communication Positive Regard for Self and Others Trust is the essential quality that creates a following for the leaders in which we are most interested. (Vision, Empathy, Consistency, & Integrity) Integrity is honoring ones commitments and promises and being ethical in your relationships. Learning to Lead Warren Bennis and Joan Goldsmith

10 Stewardship is defined as the willingness to be accountable for the well-being of the larger organization... Stewardship Peter Block Setting Direction Mobilizing Commitment Building Organizational Capability Culture Alignment The organization s or unit s core leadership is logically and behaviorally consistent with its Strategic Focus.

11 Culture Collaboration Affiliation Family/Sports Team Relationship Power Team Builder/Integrator/Coach Personal Cultivation Self-Actualization Religious Organizations Charisma Power Catalyst/Commitment Builder Corporate Development Group, Inc. Actuality Possibility In Control Power Military Role Power Authoritative/Directive/Systematic Impersonal Competence Achievement University Expert Power Taskmaster/Convincing Persuader Culture

12 The Research Project Research 360 o Assessment Process Non-judgmental (No right or wrong) 6 Sets of Attributes 22 Attributes Scores Presented in Percentiles Research Attributes Creating a Vision Conservative Innovative Technical Strategic Developing Followership Persuasive Outgoing Excitement Restraint

13 Research Management Attributes Implementing a Vision Structuring Tactical Communication Delegation Following Through Control Feedback Achieving Results Management Focus Dominant Production Research Relationship Attributes Team Playing Cooperation Consensual Authority Empathy Research

14 Research Organizational change activities must fit with the way things get done (culture) and be guided by leaders. Research is often not aligned with Strategic Focus and/or Culture. Research is often not aligned with Strategic Focus and/or Culture. is not focussed on results

15 Research Management Score Comparison Following Through Manager (Self) Direct Reports Control Feedback 33% 37% 21% 21% Research Management Score Comparison Achieving Results Manager (Self) Direct Reports Mgt. Focus Dominant Production 25% 25% 19% 25% 15% 9% Research & Results Development Performance Management Effective Organizational Change

16 Development Development Development Assessment Workshop Individual Development Plans Development

17 Development Development Assessment Workshop Individual Development Plans Development Development Assessment Workshop Individual Development Plans Development Build the development plan 1. Assess capabilities 2. Prioritize issues 3. I.D. Training needs 4. Set SMART development objectives

18 Development Plans Attribute Control Goal Identify and establish clear goals to be met. Ensure that subordinates and peers understand their role and responsibility in an activity or project. Honor commitments made to other projects & activities. Complete projects & commitments on time Metric Working with my staff, I will develop SMART goals for our group by April 1, For this calendar year, 85% of my projects will be on time & within budget. Each project will be reviewed monthly. Development Plans Attribute Feedback Goal Schedule meetings with my staff on a regular basis to review projects and assignments and provide feedback Develop a standard format for delivering feedback. Metric By August 5, 2002 my staff will have developed a meeting schedule for each project or assignment. At a minimum, each project or assignment will be discussed monthly. By December 1, 2002 I will have developed a std. format using open ended questions. Performance Management

19 System Strategic Purpose Key Results Areas Goals Communicate Results & Celebrate Tracking & Monitoring Metrics Key Results Areas Internal Focus Process Organization Financial Create organizational capabilities Employees Investment in organization s human capital Contribute to financial health Customer Add customer value External Focus People Definitions Key Results Areas Employee Results focus on the organization s investment in human capital. They emphasize the importance of employees as producers and users of the information and knowledge that allow organizations to compete.

20 Key Results Areas Organizational Results focus on creating organizational capabilities. They ensure that organizational achievements outlive the energy and action of any one individual; that organizational accomplishment takes precedence over individual performance; that the organization operates with an internal culture about how to accomplish work and that there is an external identity that distinguishes the organization. Key Results Areas Customer Results Are results that add customer value. They are both tangible values related to the product or service provided and intangible values related to the organization's image or identity. Key Results Areas Financial Results Are results that contribute to the financial health of the organization. They include shareholder value for publicly traded firms and ratepayer or taxpayer value and the organization s bonding capability for public agencies.

21 SMART Goal Setting Specific Measurable Attainable Results-oriented Time-bound Goal Best water quality. Reliable water service. Environmentally responsible operations. Metric Meet State and District water quality goals 100% of the time. No unplanned system outages; no unmet water demands. WTPs meet permit conditions; annual audits; action plans completed. Goal Improve the leadership effectiveness of Section management and supervisory staff. Metric Complete action plans in leadership team performance plans. Section works well with internal teams to resolve important issues. WTS works well in external teams to resolve important issues. WTS accomplishes 90% of planned results by for OPMS & Local Safety Committee. WTS staff successfully participates and contributes in key district teams.

22 Goal Develop and maintain high level of knowledge and skill for Water Treatment Section staff. Maintain the Section s Lost Time Injury Rate at a low level. WTPs comply with all safety regulations. Metric Demonstrated improvement in operator s understanding of 1) Lab Skill; 2) Dose Calculation; 3) Filtration. Lost time injury rate stays below 5 per 1000 employee hours. WTPs meet all safety regulations 100% of the time. Goal Minimize total annual water treatment while meeting all operating objectives. Metric Annual water treatment costs within cost plan. Supervisors Monthly Report - System or Facility Status - Action Item Status - Development Superintendent s Monthly Report - System or Facility Summary - Action Item Status - Development Division Manager s Monthly Report - System or Facility Summary by Exception - Action Item Status - Development All reports include Off Plan Feedback Mechanism

23 System or Facility Status Performance results vs. targets could include water quality, reliability, safety, regulatory compliance, overtime, etc. Communicates level of success for the month. Posted at each plant Representative of the team effort. Action Items Status Report on progress vs. milestones for each particular supervisor. Generally include continuous improvement on project items not related to day-to-day success. Items assigned to individuals Examples: Develop water quality goal by date; develop mission statement by date; participate on specified projects; develop specific training program by date Development Includes development items specific to the individual based on assessment conducted at the beginning of the process. Progress vs. milestones. Succession Planning

24 Communication Results Celebrating Successes QUESTIONS Richard Gerstberger TAP Resource Development Group, Inc (303)