The Four Enablers of Strategy 24 February 2014

The Four Enablers of Strategy Systems Structure Capability CultureStrategy

Systems The language and methods used by the organisation to talk to its people and communicate how processes are to be carried out. Structure The methods by which people can effectively understand their roles and responsibilities while being clear on their ability to exercise authority and hold others accountable. Capability The ability to get things done through your own work and that of others. The effectiveness of turning thoughts into actions. Culture The perceptions people hold about how things are to be done and communicated and what is accepted in how work is carried out. Enablers Described

CultureSystemsStructure Capabilit y Enabler Interdependencies Capabilit y SystemsStructureCultureSystemsCultureStructure Capabilit y StructureSystemsCulture Capabilit y

Enabler 1 - Systems Systems are the language in which the organization talks to its employees Systems exist to underpin productive behaviour Regardless of what is said in speeches and employee bulletins, people believe the message that comes from systems People will observe any system change through a ‘lens’ of beliefs to interpret ‘what management’s real intention is’ and form judgments against their set of values Based upon the actions taken by management or by employees, Systems will emerge that are either can be authorised or un-authorised (without responsibility, accountability or authority)

Enabler 1 - Systems

Enabler 1 - Recommendations Design systems with the origination's people in mind If you don’t have this option, engage in sufficient and extensive consultation. Be prepared to make system changes based upon that consultation Consider the message that employees will take from the implementation of a system, as well as from the system in use

Enabler 2 - Structure Management is accountable for ensuring that employees have clear answers to the questions: What is my work? How am I going? What is my future? The Leadership Team is accountable for ensuring that management have clear answers to the questions: What am I responsible to deliver through my team’s efforts? Do I have sole authority to delegate work and assign tasks to my direct reports? What is my role with respect to holding my direct reports accountable and how will I be supported by my manager (i.e. the next-up-manager?

Enabler 2 – Structure Continued

When Structure Breaks Down Value Destruction Levels of WorkCosts to the Business I II III IV V “As Is”“Should Be”  Causes confused accountability  Focus on problem solving rather than strategy and design conversations  Multiple disconnected initiatives... perpetual sense of being very busy  Inability to anticipate – sense of “always catching up with yesterday”  Failure to leverage the full talent of the leadership team  Tendency for problems to be pushed up to higher levels for resolution rather than solve at right level  Sense of frustration and boredom, managers look for other challenges CEO GM MGR TEAM LDR CEO GM MGR TEAM LDR

TARRs and TIRRs Task Assigning Role Relationship (TARR) – carry the accountability and authority to assign tasks to others. Task Initiating Role Relationship (TIRR) – carry responsibilities to initiate tasks but do not carry neither accountability nor authority to assign tasks to others.

TARRs and TIRRs Continued

When Structure Breaks Down Jim General Manager Roger Manager Jane Planning Officer

Enabler 2 - Recommendations Establish minimum authorities for managers and adhere to them strictly These may include: Veto power of the appointment of new team member; Sole authority to assign tasks and delegate work to team members (i.e. a clear TARR); Principle authority to recognize, review and reward performance of team members within policy; and Power to initiate the removal of a team member (i.e. termination) with the action to be taken by the next-up-manager Monitor and control TARRs and TIRRs from getting out of control outside of the authority of the manager

Enabler 3 - Capability Capability is… Our ability to act based upon our skills and knowledge; The choices we make when deciding how to act; and Our ability to balance the type of work we undertake between people, scheduling and technical responsibilities.

Enabler 3 - Capability Behaviour (How I do what I do) What others see you do? Observable behaviour? Actions? Verbs? Thinking (Why I do what I do) What is top of mind? What concerns you? What do you think about? Thinking (Why I do what I do) What is top of mind? What concerns you? What do you think about? Values (What drives what I do) What is important? What you value? What matters? Values (What drives what I do) What is important? What you value? What matters? Motivations (What shapes the context of why I do what I do) What I hold true? How I see the world? Motivations (What shapes the context of why I do what I do) What I hold true? How I see the world? We Think We Respond Our Attitude Determines Our Action TVMTVM SKEWSKEW

Capability for all Types of Work Getting things done through others Bringing things and or people together in the right place and time to optimize effectiveness Delivering output directly through ones own technical skills and knowledge

“The shared values, norms and expectations that govern the way people approach their work and interact with each other.” Enabler 4 - Culture

Culture is Not Climate Climate Culture Based on perceptionsBased on shared beliefs “How things are around “What’s expected (or valued here”or assumed) around here Example: In this Example: People in this organization, people areorganization are expected or rewarded in proportionimplicitly required to compete to the excellence of theirrather than cooperate job performance Short-term implicationsLong-term implications Easier to changeHarder to change Most managers focus only on this But outcomes are more reliably predicted by this

Culture or Climate Culture... what is below the surface Climate... what is above the surface

Our values How we want people to think & behave What we do What people actually experience in the organisation Culture The conclusions people make from what they experience Outcomes How people feel about the organisation How Culture Actually Works

How People Experience the Organization Defines Culture

Managing Culture – 4 Step Model 1.Determine the gap between current and preferred culture 2.Interpret prevailing mythologies regarding people’s experience with systems, structure and capability 3.Test interpretations through consultation 4.Make small and continuous improvements within systems, structure and capabilities and monitor for change

How can the Enablers be used to Move People through Change?

Other Questions to Check for Strategic Effectiveness Is there one or more enabler that you perceive to be fixed, that you must alter the others to accommodate for? (i.e. people are fixed or systems are fixed) Does the organization lack the capability to implement change? Are systems given priority over people processes? How has your organization leveraged the 4 Enablers during its most recent strategic initiative?

Enablers Assessed EnablerRatingComments for Improvement SystemsC+ StructureB- CapabilityC- CultureB

How does your business leverage the Four Enablers? Systems We effectively consult with users before systems are implemented and we use feedback to make changes We design systems around specific needs Structure We clearly communicate responsibility for accountability and authority, i.e. clear TARRs and TIRRs. We swim in our respective lanes. Capability Time is provided for people to achieve balance across people, scheduling and technical requirements We do not focus and reward solely on task delivery. Culture We are clear and deliberate through our actions to design and implement systems, structure work, assign authority and responsibilities and communicate a shared vision for the organisation.

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