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Organizational Performance Meeting the Challenges Of the New Business Environment Dr. Karl Albrecht Chairman Karl Albrecht International © 2011.

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Presentation on theme: "Organizational Performance Meeting the Challenges Of the New Business Environment Dr. Karl Albrecht Chairman Karl Albrecht International © 2011."— Presentation transcript:

1 Organizational Performance Meeting the Challenges Of the New Business Environment Dr. Karl Albrecht Chairman Karl Albrecht International © 2011

2 The pursuit of mediocrity is always successful. Karl Albrecht The pursuit of mediocrity is always successful. Karl Albrecht

3 Severe recession / survival thinking Business is not fun any more The Internet is creating and destroying opportunities The electronic culture is invading business culture Short attention spans and cycles Relentless atomization and acceleration Depersonalized: customer “moat” Depersonalized: management by email Executives in quandary “Fad fatigue” – death of “excellence” The Current Business Environment

4 IBM Global CEO Study, 2010 1500+ CEOs, 60 countries, 33 industries CEOs concerned about massive, rapid change Global economic shifts Disruptive impacts of technology 80% expect it to get worse > 50% say their organizations not prepared to cope Biggest needs they identified: “creativity” “closeness to customers” “organizational dexterity”

5 “The usual stuff’s not working…”

6 Leadership and Organizational Performance “Organizational performance cannot be divorced from executive leadership. The executives must learn, grow, and co-develop with the organization.” - Dr. Karl Albrecht Author of: Service America: Doing Business in the New Economy The Power of Minds at Work: Organizational Intelligence in Action Social Intelligence: the New Science of Success Practical Intelligence: the Art & Science of Common Sense

7 Are Executives Equipped for the Challenges? Prof. Warren Bennis, USC “We found that adaptive capacity was the single most important attribute for success, whatever the field.” “We discovered that all of the leaders had undergone a crucible, a transformative experience that had prepared them to lead.” Adaptive Capacity = Intelligence “… a leader’s life is the summation of the leader’s judgment calls. Making judgment calls, we concluded, is the primary job of a leader, the DNA of leadership. With good judgment, little else matters. Without it, nothing else matters.” From Still Surprised: a Memoir of a Life in Leadership

8 Re-thinking Organizational Performance Performance: the extent to which an organization achieves a set of pre-defined targets that are unique to its mission. These targets will include both objective (numerical) and subjective (judgmental) indicators. Performance Drivers: key dimensions of an organization’s functioning that are critical to its capacity to perform. Also called domains of excellence (DOE).

9 Domains of Excellence Domains of Excellence are key performance drivers - dimensions of organizational capacity that enable the enterprise to succeed. They are the universal “management dashboard.” 1. Strategic Focus 2. Customer Value 3. Leadership & Team Performance 4. Culture, Values, & Ethics 5. Process Excellence 6. Talent Management 7. Knowledge Management Seven Domains of Excellence: “Take care of the means, and the end will take care of itself.” - Gandhi

10 Performance: Means and Ends Executive Leadership Performance Drivers (DOE) Performance Outcomes

11 DOE 1: Strategic Focus An ongoing “strategic conversation” Continuous environmental scanning Clear purpose: the “story” Clear driving values, priorities Linked to financial / economic results

12 DOE 2: Customer Value Key cultural & operational focus Continuing research & feedback Value proposition clearly understood Synergy between “tech” & “touch” Masterful delivery

13 DOE 3: Leadership & Team Performance High standards for leader-managers Executives who lead and model Effective leader selection Effective leader training / dev. Regular assessment / feedback

14 DOE 4: Culture, Values, & Ethics A strong sense of community Executives who model core values High quality of work life (QWL) Morale, esprit de corps, shared fate Social / ecological responsibility

15 DOE 5: Process Excellence Appropriate organization structure Processes are aligned w/ mission Processes are friendly to customers Processes empower performance Processes are always improving

16 DOE 6: Talent Management A culture w/ attracts talented people Competitive compensation Management of “fit” and fitness Developmental opportunities Systems w/ support career success

17 DOE 7: Knowledge Management A culture w/ values knowledge A culture of collaboration & creativity Effective use of IT capability Infrastructure for social networking Development of thought leaders

18 We Need a New View of the Business The “Wall Street” Model A business is a living enterprise. It’s more than the sum of its parts. There are multiple bottom lines (3 P’s). Success is multi-dimensional. Customers are solution seekers. Employees are agents / performers. Org’n is a complex, adaptive system. It has multiple stakeholders. Performance is caused by synergy. The Emerging Model A business is just a collection of assets. It can be bought, sold, subdivided. There’s one “real” bottom line. Success is defined financially. Customers are sources of revenue. Employees are interchangeable “resources.” Org’n is an apparatus; a set of processes. It’s “owned” by management. Performance is caused by management.

19 We Need a New View of Customers “Wall Street” Model Customers as unique, solution seekers Can be “appreciating assets” We focus on delivering value Our systems reflect their worlds Emerging Model Customers as standard economic units Mostly disposable / interchangeable We push products / services to them They adapt to our “system”

20 We Need a New View of Employees Interchangeable Work Units Human “resources” Transient, disposable Unique Performers Complex motivations High expectations “Wall Street” ModelEmerging Model

21 We Need a New View of the Executive Executive as “Leader of the Band” Leadership as unique and contextual Leader as learner: growing to meet the challenge Leader as serial problem solver

22 The Effective Executive Occupies a pre-defined role Captive of the organization Presides / manages Sorts problems into “bins” Deploys his / her unique intelligences “Owns” the organization Has a “theory” / “story” Engages, inspires, and energizes others Bland Leader?Or Band Leader?

23 The Leader is the “Main Brain” The “thinking style” (preferred information processing pattern) of the leader shapes everything he or she thinks, says, and does. The leader’s thinking style (a.k.a. cognitive style) also influences the collective thinking processes of everyone in the organization under his or her leadership. Thinking styles have been mostly ignored in leadership models.

24 The Polyintelligent Leader “Multiple Intelligence” Concept: Robert Sternberg (Yale): the “IQ” concept is obsolete Howard Gardner (Harvard): 7 – 8 “intelligences” Adapted Model: Karl Albrecht (in his book Social Intelligence) A = Abstract Intelligence S = Social Intelligence P = Practical Intelligence E = Emotional Intelligence A = Aesthetic Intelligence K = Kinesthetic Intelligence The “Triune” Intelligence model for business

25 What are the Steps in an Organizational Performance Initiative? 1. Evaluation / Assessment : a rigorous, evidence-based process of determining what aspects of the organization deserve to be improved; owned and led by management; may be supported by specialized experts or external practitioners. 2. Planning : a carefully considered process of defining the outcomes desired, deciding what methods and resources to employ, and assigning responsibilities for project leadership (e.g. project team or task force). 3. Implementation : a disciplined process of executing the development plan, with support, participation, and guidance by the appropriate levels of management. 4. Continuity : evaluating the success of the project; celebrating success; formalizing the new way of doing things. The “E. P. I. C.” Cycle

26 What are the Critical Success Factors for an Organizational Performance Initiative? 1. Management Ownership 2. Employee Engagement 3. Solutions Unique to the Enterprise 4. Access to Appropriate Expertise 5. Disciplined Analysis & Planning 6. Creative Solutions & Best Practices 7. Flexible Management of the Process Seven Critical Success Factors:

27 Do We Need Outside Consultants? Consultants can sometimes: Educate you about concepts / models Advise & guide your efforts Provide specialized expertise / tools Carry out specific outsourced tasks Consultants vary in their focus: Generalists – assessment / strategy Domain specialists – methodology Subject matter experts Others big firm? guru? specialists?

28 For More Information…

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