Riding the Whirlwind

Transcription

1 Riding the Whirlwind Innovating in Tough Times Fons Trompenaars 2 February 2009 Dresden Germany

2 To the wealth creation model Productivity and innovation among human resources mobilize new enterprise.5 for members of larger society so that they re-invest in 2. leading to goods and services of measured efficiency being strategically prepared for markets 4. revenues from which shareholders are rewarded, so that they create wealth for 3. where these enjoy a degree of customer and social satisfactions, generating

3 Creating the Sustainable Organization of the 21st Century Develop our people versus Become more cost conscious Employee Development and Learning 2 Reward & motivate our people versus Satisfy our shareholder 1 Operational Effectiveness and Efficiency 8 Shareholder Returns and Financial Performance Cut costs for shareholder s return versus Invest for sustainability 5 Satisfy our customers at 9 all costs versus Generate shareholder value Cash flow & working capital versus Serve 6 wider community Anticipate customers 10 needs versus Customer is always right 7 Equal opportunities for 3 all employees versus Positive discrimination Global or standardized products versus Local tastes and needs Satisfaction of the Client Enhance reputation in wider community versus Serve what our customers 4 want Contributions to Society Maximize shareholder return versus Create a sustainable future for society

4 Approaching Dilemmas: Navigating Strategic Tensions To Innovate is to Combine Values That are not easily joined Therefore scarce... Therefore profitable.

5 This approach leads to concrete and measurable actions Impact Realize and and Root Implement Implement Reconciling Reconciling Actions Actions Respect Appreciate Appreciate Cultural Cultural Differences Differences Reconcile Resolve Resolve Cultural Cultural Differences Differences Recognize Increase Increase Awareness Awareness Time

6 Core Proposition Successful leaders have the propensity and competence to help organizations and its teams reconcile dilemmas for sustainable innovation

7 Some hard evidence

8 Our research reveals that propensity to reconcile dilemmas correlates with bottom line business performance Correlation (Spearman s coefficient of rank correlation) Correlation between reconciliation and 360 o feedback by peers and subordinates 0.71 Correlation between reconciliation and bottom line business performance in profit centre/budget stream 0.69 Source: 21 Leaders for the 21 st Century p429

9 Recent Research Innovation = Inclusion Diversity Leadership

10 Question One Please get ready to vote

11 01/ The Car Accident What happens to your friend?

12 01/ What right does your friend have? A. My friend has a definite right as a friend to expect me to testify to the lower figure. B. He has some right as a friend to expect me to testify to the lower figure. C. He has no right as a friend to expect me to testify to the lower figure.

13 01/ Dilemma: INTEGRITY The top 2 of your corporate values are: 1. Integrity 2. We respect the cultures of others Please discuss in the context of these values what your answer would be

14 01 Universalism versus Particularism 02 Individualism versus Communitarianism 03 Neutral versus Affective 04 Specific versus Diffuse 05 Achievement versus Ascription 06 Sequential versus Synchronic 07 Internal versus External Control

15 01/ Universalism vs Particularism Consistency Systems, standards & rules Uniform procedures Demanding of clarity Letter of the law Flexibility Pragmatic Make exceptions It depends At ease with ambiguity Spirit of the law

16 01/ Universalism Friend has no/some right and would not help Switzerland Canada USA Sweden United Kingdom Australia Netherlands Germany Czech Rep France Singapore Japan Mexico India China Russia Korea Venezuela

17 01/ Dilemma Globalism and Localism Global Standards (Critical Mass) Cultural Diversity (Differing solutions)

18 01/ Globalize and Localism Global Standards (Critical Mass) Be like US (1,10) Transnational Centers of Excellence (10,10) (10,1) Small Nations Multi-Localism Cultural Diversity (differing solutions)

19 01/ Main Challenges 1. Mass-Customization 2. Co-Opetition 3. It is Cool to be emotional 4. Moments of Truth 5. Servant Leader 6. Just In Time Synchronizing Sequences 7. Pushing through the Pull

20 01/ This approach assumes three connected stages Impact The Innovative Organization The Inventive Team The Creative Individual Time

21 Impact 01/ This approach assumes three connected stages STAGE 1 The Creative Individual Time

22 01/ Flaw: based only on linear scale models Creative people are more Intuitive Perceiving Thinking Extrovert Tortoise mind Lateral Risk-taking Hunting Individualistic Right brain Etc. Creative people are less Sensing Judging Feeling Introvert Hare brain Focused Securing Gathering Consensus seeking Left brain Etc.

23 Impact 01/ This approach assumes three connected stages STAGE 2 The Inventive Team The Creative Individual Time

24 01/ Integrating Team Roles of Belbin Dilemma team roles

25 01/ Example Belbin Team roles of participants Completer Finisher Specialist Plant Monitor Evaluator Team Worker Resource Investigator Implementer Coordinator Shaper Most like Least like

26 01/ Belbin team role dilemma The Particular Idea versus the Universal Evaluation

27 01/ Belbin Team roles Realize ideas through critical oxygen Universal Critical Appraisal Strangled at birth Blue Sky Particular Creative Ideas

28 01/ This approach assumes three connected stages Impact The Innovative Organization The Inventive Team The Creative Individual Time

29 01/ Corporate Culture Incubator ORGANIZED CHAOS MBP LEARNING Person oriented NETWORK MBS PROMOTION/ POWER Family Hierarchical Egalitarian Guided missile STRATEGY MBO PAY FOR PERFORMANCE Task oriented STRUCTURE MBJD EXPERTISE Eiffel tower

30 Four Corporate Cultures Person oriented Task oriented

31 The infinity loop for innovation Person oriented

32 01 From Invention to Intention

33 From Invention to Intention INITIAL STRENGTHS: CREATIVE FLEXIBLE WEAKNESS: ANARCHY CHAOS LEADERSHIP CRISIS Person oriented Task oriented INITIAL STRENGTHS: LOYALTY/COMMITMENT STRONG LEADERSHIP

34 01/ Stage 1 Dilemmas 1. Leading participating employees versus respect for authority 2. Team spirit versus individual creativity 3. Effectiveness of teams versus creation of cultural knowledge about these teams

35 Transitional Corporate Cultures Individual performance 1. Which tensions and dilemmas are there between dominant transitional corporate cultures? Group performance

36 01 Universalism versus Particularism 02 Individualism versus Communitarianism 03 Neutral versus Affective 04 Specific versus Diffuse 05 Achievement versus Ascription 06 Sequential versus Synchronic 07 Internal versus External Control

37 Question Two Please get ready to vote

38 02/ Individualism versus Communitarianism a) One said: It is obvious that if one has as much freedom as possible and the maximum opportunity to develop oneself, the quality of one s life would improve as a result. b) Another said: If the individual is continuously taking care of his or her fellows then the quality of life for us all will improve, even if it obstructs individual freedom and individual development.

39 02/ Individualism Percentage opting for individual freedom Israel Canada USA Denmark Netherlands Finland Australia UK Sweden Russia Germany Italy Indonesia Singapore China France Japan India Mexico Egypt

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44 02/ Main Challenges 1. Mass-Customization 2. Co- Opetition 3. Moment of Truth 4. It is Cool to be Emotional 5. Servant Leader 6. Just In Time Synchronizing Sequences 7. Pushing through the Pull

45 01 02 From Intention to Invasion 03 04

46 From Intention to Invasion INITIAL STRENGTHS: LOYALTY/COMMITMENT STRONG LEADERSHIP WEAKNESS: COUNTRYCLUB CENTRALIZATION Person oriented Task oriented INITIAL STRENGTHS: STRATEGIC TASK ORIENTATED CUSTOMER FOCUSED CRISIS OF AUTONOMY

47 Stage 2 Dilemmas 1. Lord, servant, or servant leader? 2. How do we centralise lessons reaching us from decentralised locations? 3. Social learning versus technological learning

48 Transitional Corporate Cultures Leading Practitioner 1. Which tensions and dilemmas are there between dominant transitional corporate cultures? Le Patron

49 01 Universalism versus Particularism 02 Individualism versus Communitarianism 03 Neutral versus Affective Specific versus Diffuse 04 Specific versus Diffuse 05 Achievement versus Ascription 06 Sequential versus Synchronic 07 Internal versus External Control

50 05/ Achievement versus Ascription Performance Status Lost democratic leadership (1,10) The Servant Leader (10,10) Follow the Leader (10,1) Attributed status by seniority or role

51 05/ Achievement versus Ascription

52 From Invasion to Implementation 04

53 From Invasion to Implementation INITIAL STRENGTHS: STRATEGIC CUSTOMER FOCUSED WEAKNESS: SWEATSHOP SHORT TERMISM Person oriented CRISIS OF CONTROL Task oriented INITIAL STRENGTHS: EFFICIENT STRUCTURED

54 Stage 3 Dilemmas 1. The role of standards and benchmarks: should we meet or transcend them? 2. Meeting financial criteria versus developing our people 3. Focus on external customers versus focus on internal processes

55 Transitional Corporate Cultures Shareholder value 1. Which tensions and dilemmas are there between dominant transitional corporate cultures? Long Term Talent Development

56 01 Universalism versus Particularism 02 Individualism versus Communitarianism 03 Neutral versus Affective 04 Specific versus Diffuse 05 Achievement versus Ascription 06 Sequential versus Synchronic 07 Internal versus External Control

57 04/ Specific versus Diffuse PUBLIC PRIVATE

58 04/ Specific versus Diffuse PUBLIC PUBLIC Specific Relationship

59 04/ Specific versus Diffuse PUBLIC PRIVATE

60 04/ Specific versus Diffuse No Relationship

61 04/ Specific versus Diffuse PRIVATE PRIVATE Diffuse Relationship

62 04/ Specific versus Diffuse PUBLIC PRIVATE PRIVATE Danger Zone

63 Question Three Please get ready to vote

64 04/ Specificity A boss asking to paint his house The colleague argues: You don t have to paint the house if you don t feel like it. He is your boss in the company. Outside the company, he has little authority The subordinate argues: Despite the fact that I don t feel like it, I will paint the house anyway. He is my boss and you cannot ignore it outside your work either.

65 04/ Specificity Would not paint the house Sweden Netherlands Denmark UK Canada USA Australia Japan Mexico Thailand Greece Belgium Korea Singapore Venezuela Kuwait Nigeria China %

66 From the Balanced to the Integrated Score Card Balanced Score Card Dilemma

67 From the Balanced to the Integrated Score Card Specific Financial Performance Diffuse Development of People

68 From the Balanced to the Integrated Score Card Specific financial performance Cost cutting yourself (1,10) (10,10) Integrated growth: Train for Cost Cutting (10,1) Subsidised seminar Interests in future innovating and learning

69 04/ Main Challenges 1. Mass-Customization 2. Co-Opetition 3. It is Cool to be Emotional 4. Moments of Truth 5. Servant Leader 6. Just In Time Synchronizing Sequences 7. Pushing through the Pull

70 From Implementation to Innovation

71 From Implementation to Innovation INITIAL STRENGTHS: LEAN PROCESSES STRUCTURED WEAKNESS: BUREAUCRACY INFLEXIBLE INITIAL STRENGTHS: CREATIVE CLIENT IS KING Person oriented Task oriented CRISIS OF RED TAPE

72 Stage 4 Dilemmas 1. Authority of sponsor versus empowered teams 2. Lean Processes versus Client is King 3. Should we strive to be right first time, or make errors and correct them quickly? 4. Do we learn explicitly or tacitly?

73 Transitional Corporate Cultures Client is King 1. Which tensions and dilemmas are there between dominant transitional corporate cultures? Lean Processes

74 01 Universalism versus Particularism 02 Individualism versus Communitarianism 03 Neutral versus Affective 04 Specific versus Diffuse 05 Achievement versus Ascription 06 Sequential versus Synchronic 07 Internal versus External Control

75 07/ Internal versus External Control External Control Nature as an organism Subjugation to nature Internal Control Nature as a mechanism Dominance over nature

76 Question Four Please get ready to vote

77 07/ Internal versus External Control A. What happens to me is my own doing. B. Sometimes I feel that I do not have enough control over the direction my life is taking.

78 07/ Internal versus External Control What happens to me is my own doing Israel Norway USA UK France NL Belgium Italy Korea Germany Japan India Czech Republic Singapore Kuwait Russia China Venezuela

79 From the Balanced to the Integrated Score Card Balanced Score Card Dilemma

80 From the Balanced to the Integrated Score Card Inner Directed Improvements in Business Processes Outer directed increase in customer satisfaction

81 From the Balanced to the Integrated Score Card Inner directed improvements Lean but mean (1,10) Integrated growth: Pushing through the Pull (10,10) Customer s creature (10,1) Outer directed increase in customer satisfaction

82 07/ Main Challenges 1. Mass-Customization 2. Co-Opetition 3. It is Cool to be Emotional 4. Moments of Truth 5. Servant Leader 6. Just In Time Synchronizing Sequences 7. Pushing through the Pull

83 Person oriented Exnovation!

84 Egalitarian Task oriented

85 Stage 5 Dilemmas 1. Internal versus external innovations 2. Investing in R&D efforts versus co-operating with rival companies 3. Hi-tech versus hi-touch in virtual teams 4. Systemic versus modular innovation

86 Knowledge Management Controlling systemic innovation Innovation jealously guarded Knowledge Broking Unco-ordinated supply Free flowing modular innovations

87 INNOVATION = INCLUSION LEADERSHIP DIVERSITY

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91 INNOVATION = PARTNERSHIP INCLUSION LEADERSHIP DIVERSITY

92 INNOVATION = PARTNERSHIP INCLUSION SERVANT LEADERSHIP LEADERSHIP ACROSS CULTURAL DIVERSITY BOUNDARIES

93 Sustainability = PARTNERSHIP INCLUSION SERVANT LEADERSHIP LEADERSHIP ACROSS CULTURAL DIVERSITY BOUNDARIES

94 Thank You! To download this presentation: Go to: Password: SEMI2009 Fons Trompenaars