Executing Strategic Change Operational Excellence Leadership Forum October 4, Research and experience from ODR

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1 Operational Excellence Leadership Forum October 4, 2012 Research and experience from ODR

2 Context for Strategy Execution Strategy Formulation Strategy Execution Operational Excellence 2 Typical Leader Concerns I m up here pushing the right strategic buttons, but the lights aren t coming on. Based on the way we keep score, I can t tell if we re really making progress or not. We don t learn from our mistakes. We reinvent the wheel every time we implement something new. Everyone s busy with all these initiatives but we re moving in different directions. How many times do I have to say this is non-negotiable? Yet people still act like it s only a suggestion. How can so much money be spent and so much energy be expended, yet we are no closer to our real goals? It doesn t seem to matter how much we communicate. People operate as if they ve never heard of what we re doing and deadlines are being consistently missed. 3

3 Failure is more common than success. 30% 143% Top Quartile 70% Expected realization of value based on change execution competency 35% Bottom Quartile 4 There are four levels of organizational change. Slight Incremental Major Paradigm 5

4 MAJOR- AND PARADIGM- LEVEL CHANGES POSE UNIQUE CHALLENGES. 6 Not all dramatic shifts are the same. Some are bigger than others. Some demand that promises made be fully accomplished. Some are more crucial because of the implications for failure. 7

5 These three factors characterize the most challenging change initiatives. Transformational Intent Realization Focused Business Imperative 8 Degree of Difficulty Profiles Transformational Intent Project A Project B Project C 5 0 Realization Focused Business Imperative 9

6 WHAT ARE THE REQUIREMENTS FOR SUCCEEDING WITH DIFFICULT CHANGE? 10 Our research has identified specific patterns for implementation success. There are dynamics running beneath change execution. These dynamics are invisible to the untrained eye. They cluster into certain patterns. 11

7 THE PATTERNS RELATED TO SPONSORSHIP ARE BY FAR THE MOST CRUCIAL. 12 There are four key roles in the change process. SPONSOR Individual (or group) having the power to sanction a change AGENT Individual (or group) facilitating the development and/or execution of implementation plans TARGET ADVOCATE Individual (or group) who must actually change Individual (or group) who wants a change but does not have sufficient power to sanction it 13

8 Sponsorship patterns fall into two categories. Mindsets: How sponsors think about executing change Behaviors: What they actually do 14 CERTAIN MINDSET PATTERNS CONTRIBUTE TO SPONSOR SUCCESS. 15

9 Examples of Mindset Patterns That Contribute to Success Firmness Messiness Priorities Risk Discomfort Teamwork 16 Examples of Mindset Patterns That Contribute to Success (Cont.) Urgency Catharsis Effectiveness Humility Introspection 17

10 CERTAIN BEHAVIOR PATTERNS CONTRIBUTE TO SPONSOR SUCCESS. 18 Effective Sponsorship PURPOSEFUL Dissatisfied with the present state Clearly define change Shape expectations Narrow attention ATTENTIVE Understand the organizational impacts of change Understand the human impacts of change Foster commitment Surface barriers to realization Protect capacity Address resistance COMMITTED Demonstrate public conviction Demonstrate private tenacity Communicate powerfully Apply consequences Convey status Eager to learn 19

11 Effective Sponsorship (cont.) DECISIVE Make tough decisions Allocate resources Cascade sponsorship Recalibrate RESOLUTE Focus on realization Sustain support Orchestrate key roles Hold peers accountable Bear the price 20 Conner Partners We can t make change easy. We make it possible. 21 Conner Conner Partners Partners, All rights All rights reserved. reserved