Principle Based Leadership Establishing True North. Troy DuMoulin VP Research & Development Pink Elephant. 1. Principles / Values Based Leadership

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1 Principle Based Leadership Establishing True North Troy DuMoulin VP Research & Development Pink Elephant Welcome & Agenda 1. Principles / Values Based Leadership 2. Personal Balance & Fulfillment 3. Establishing True North 4. Hoshin Kanri Planning 5. The Results Pyramid Objective Understand how Lean Leaders establish organizational alignment & produce results 2

2 Lean Leadership Is Principle Based A Principle" is a shared understanding and acceptance of a value or truth that is certain and is not up for debate. A Value" is a person's personal belief for or against something. 3 Shared Values & Culture Organizational Culture is the collective result of how people on the team think and behave, their shared values and how they react to internal and external stimuli. A company culture is either decisively created and nurtured from the very beginning or - more typically - it develops haphazardly over time through the beliefs and experiences of those on the team. How Values-Based Leadership Transforms Organizational Cultures - Forbes 4

3 Principles and Values Should Match Finding Balance: Principled-driven people typically develop their personal values to align with a larger set of shared principles. 5 Finding Meaning & Fulfillment Autonomy: The need of a person to direct their own path Mastery: The desire and pleasure of people who become excellent at something. Purpose: People are motivated by the fact that they do something for a reason or contribute to something greater than themselves 6

4 The Three Dimensions Of Behaviour External Pressures Principles (True North) What do I value? How do I respond? Choices? Self-Interest Habit 1 - The practice of intentional and proactive choice means to be led by Principle vs. External Pressure or Self-Interest. Lean describes specific principles that drive organizational effectiveness. 7 Establishing True North Motivating employees by connecting organizational goals to employees personal values. Any organization that wishes to gain alignment needs to start with a shared Vision. Lean Leaders understand the importance of creating True North Values. 8

5 Systems Thinking & IT Culture Velocity = Speed With Direction! 9 Shingo Model - Utah State University Business improvement through the understanding of the relationship between principles, systems, tools and results 10

6 Hoshin Kanri (Policy Deployment) A management system in which all employees participate, from the top down and from the bottom up, and humanity is fully respected. - Dr. Kaoru Ishikawa Ensures alignment across all aspects of IT operations: Vertical alignment ensures all stakeholders from the boardroom to operations are aligned Horizontal alignment ensures that cross-functional stakeholders of each value stream have aligned goals 11 Catch-Ball Communication What A method of idea generation To confirm the practicality of proposed plans Actively solicit feedback and ideas from the "lower" level people that are responsible for actually implementing the plans How A proposed vision is expressed by the leader The subordinate responds with an interpretation The leader then reviews the feedback The ball (idea) is passed back and forth, new ideas emerge, as do consensus on the right course of action When Any time when cascading goals Any time that a higher level planning team is asking others to implement their plans 12

7 The 7 Steps of Hoshin Planning 1 Establish Organizational Principles & Vision Develop Breakthrough Objectives (Missions) Develop Annual Objectives (Strategy Planning) Deploy Annual Objectives (Program Mgmt.) C A T C H B A L L 5 Implement Annual Objectives (Projects / Kaizen) 6 Monthly Review 7 Annual Review Self Reflection 13 True North: Case Study Example Principles / Values Build Trust Speak Up Reach Out Innovate Now Prioritize Work Go Team Discussion, there is no way to align, qualify / quantify / measure the Key Result Areas without the grey areas being defined and mapped Business Vision? IT Vision Blue: Exists Grey: Undefined Break Though Objectives (Missions) Annual Key Result Areas: Customer Sat. - Baseline Cost of Ops 5% decrease Close Problems Close to 0% Reduce Tech Diversions (Shadow IT) by 10% Associate Onboarding Employee Start Day IT Operating Model Capability Process Roles (K&S) Portfolio Mgmt. Program Mgmt. Projects 14

8 The Results Pyramid Results 1 Results 2 Behavior Change Culture Change Actions 1 Actions 2 Beliefs 1 Beliefs 2 Experiences 1 Experiences 2 Rogers Connors / Tom Smith 15 Questions & Thank You Troy DuMoulin t.dumoulin@pinkelephant.com

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