© 2004 leadership perspectives. all rights reserved. js 01-19-04 leadership perspectives contents...

© 2004 Leadership Perspectives. All rights reserved.

JS 01-19-04LEADERSHIPPERSPECTIVES

Contents

1 Balanced Scorecard

2 Leadership Development

Coaching for Performance3



The Balanced Scorecard Drives Rapid Strategy Implementation

Executive Team Alignment Strategy Map Balanced Scorecards

Translate the Strategy Into Operational

Terms

Governance Process Strategic Management Analytics & Information

Systems

Make Strategy a Continual Process

Corporate Role Business Unit Synergies Support Unit Synergies

Align theOrganization to the

Strategy

Strategic initiatives are clearly identified

Investments are rationalized by the strategy

Link Budgets and Strategy

Prioritize initiativesand

Align Resources

Strategic Awareness Personal Scorecard Balanced Paychecks /

Link to Compensation

Make StrategyEveryone’s Job

1

2

3

5

4STRATEGY



The Balanced Scorecard Provides a Framework to Translate the Vision and Strategy Into Operational Terms

Financial Perspective"If we succeed, how will we look to our shareholders?”

Profit-ability

The Vision

Growth

Share-holderValue

Customer Perspective"To achieve my vision, how must we look to my customers?”

CycleTime

Quality

Service

Price/Cost

Internal Perspective"To satisfy my customers, what business processes must we excel at?”

CycleTime

Quality

Productivity

Organization Learning" To achieve our vision, how must our organization learn and improve?”

Market Innovation

ContinuousLearning

IntellectualAssets

Measurement is the language that gives clarity to vague concepts.

Measurement is used to communicate, not to control.

Building the scorecard develops consensus and teamwork throughout the organization.



Internal Process Perspective

We Use the Balanced Scorecard to Clarify Strategy and Translate it into Focused, Actionable Objectives

The Balanced Scorecard Is Based on an

Understanding of the Cause and Effect

Relationships on Which the Strategy Is Based

Financial Perspective

Learning & Growth Perspective

Customer Perspective

Return on InvestmentReturn on Investment

PricePrice QualityQuality TimeTime FunctionFunction ImageImage RelationRelation

Value Proposition

Sources of Growth Sources of Productivity

Staff Competencies

Technology Infrastructure

Goal Alignment ++

“Build the Brand”

“Build the Brand”

“Make the Sale”

“Make the Sale”

“Deliver the Product”

“Deliver the Product”

“Service Exceptionally”

“Service Exceptionally”

Pathways to Performance

Revenue StrategyRevenue Strategy

Productivity Strategy

Productivity Strategy

Staff Awareness +



Metro Bank VisionMetro Bank Vision

“To be the best broad-based financial institution, a leader in our chosen markets”

The Revenue Growth Strategy

“Improve stability by broadening the sources of revenue from current customers”

The Productivity Strategy

“Improve operating efficiency by shifting customers to more cost-effective channels of distribution”

Improve Returns

Improve Operating Efficiency

Broaden Revenue

Mix

Increase Customer

Confidence in Our Financial

Advice

IncreaseCustomer

Satisfaction Through Superior

Execution

IncreaseEmployee

Productivity

Access to Strategic

Information

Develop Strategic

Skills

Align Personal

Goals

FinancialPerspective

CustomerPerspective

InternalPerspective

Learning Perspective

Cross-Sell the Product

Line

Shift to Appropriate

Channel

Provide Rapid

Response

Develop New

Products

Minimize Problems

Understand Customer Segments

The Balanced Scorecard Is Used to Tell the Story of Your Strategy

Example



4. Solution Delivery

1. Leverage Resources

2. Service Excellence

3. Sales Excellence

5. Redesigning Our Customers’ Business

This Begins With Developing the Key Strategic Themes or Pathways – These Form the Strategy Stairway

Case Example: Odessa Computers Long-Term Strategic

Near-Term Tactical

Pathways



For Each Pathway, We Develop a Cause and Effect Model Across the Four Perspectives of the Balanced Scorecard

1. Financial

2. Customer

3. Internal

4. Learning/Growth

4. Solution Delivery

1. Leverage Resources

2. Service Excellence

3. Sales Excellence

5. Customer Partnering

Case Example: Odessa Computers



Build a Cause and Effect Model for Each Pathway: An Example

Increase Consultative Selling Skills

Shift Revenue Mix to Higher Margin

Products/Services to Improve Margins

Odessa ComputersPathway 3: Sales Excellence

Learning /Growth

Process

Customer

Financial

Deploy Business Unit Offerings

Put Right Sales Team Together

Qualify Opportunities

Solve High Value Business Problems

Discover & Analyze

Customer Needs

A Strategy Map of Odessa Computers: The Sum of the Pathways

Financial

Provide World-Class Ongoing

Support

Customer

Internal

Learning & Innovation

Easy to Do Business With


New Product Development/Service

Opportunities

Share Best Practices

Increase Leadership Skills

Foster Sales/Marketing Alignment

New Product Development Insights/

Raw Creativity

Perform Effective Delivery and Installation

Increase Consultative Selling Skills

Improve Customer Awareness

PROFITABLE GROWTH

Sales Excellence

Manage Inventory and Receivable

Effectively

Leverage Resources

Supply Knowledge Infrastructure (System

and Tools)

Create Success-Oriented Culture

Capture Product/Customer/Industry Knowledge

Create Customer Driven

Marketing Insights

Shift Resources to High Potential Revenue

Generating Roles

Deploy Services Resources to Improve

Productivity


Dynamic Deployment of

Cross- Functional Resources

Just-in-Time Resource

DeploymentManage

Resources

Build Skills

Attract, Retain, and Motivate Associates

Clarify and Communicate Roles & Responsibilities

Leverage People and Financial Assets to Achieve Organizational

Productivity


Products/Services to Improve Margins

Grow Revenue Through Customer

Extension/Expansion

Redefine Customers Businesses

Grow Revenue Through Customer Retention

Service ExcellenceCustomer PartneringSolution Delivery

Simplify Processes and

Enhance Systems

Effective Project Management


Localize Business Unit Offerings


Create Centers of Solution Expertise

Create Customer Competitive Advantage

My Partner for Creating High Value

Solutions

Discover & Analyze

Customer Needs Partners/ Alliances



F

C

I

L&G

Manage Resources

Improve Customer

Awareness]

From Strategy Map to Implementation: Targets and the Business Case Measures



Products/Services


Discover and Analyze

Customer Needs


IncreaseConsultative Selling Skills

ACCELERATE PROFITABLE GROWTH

Attract, Retain, and Motivate Outstanding Associates


Build/EnhanceSet of Skills/

Competencies

• Gross Margin %• Gross Margin %

• CSM Relationship Survey - Overall Solutions Provided to you by Odessa

• CSM Relationship Survey - Overall Solutions Provided to you by Odessa

• % Opportunities Through Bid Review Where PS Risk Assessment Performed

• % Opportunities Through Bid Review Where PS Risk Assessment Performed

• Total HV offering $ in the Funnel (Next 12 Months)

• Total HV offering $ in the Funnel (Next 12 Months)

• Opportunities by Key Marketing Programs - $/#

• Opportunities by Key Marketing Programs - $/#

• % Associates in Customer-Facing HV Positions

• % Associates in Customer-Facing HV Positions

• Number of Associates with Objectives on File

• Number of Associates with Objectives on File • Sales and Pre-Sales

Open Position Days• Associate Turnover

• Associate Satisfaction Survey - overall question

• Sales and Pre-Sales Open Position Days

• Associate Turnover

• Associate Satisfaction Survey - overall question

• Associates Certified within Key Job Families

• Leadership Index

• Associates Certified within Key Job Families

• Leadership Index

Clear Roles & Accountabilities

• 1995 impact of $XX








• We will contribute X% increase in GM – and $XXX in bottom line growth by 1998

• We will contribute X% increase in GM – and $XXX in bottom line growth by 1998



Paper supplies Integration

Price Realization-II

Lead with Service Bundles

High Availability Transaction Processing

Global Realization Process (GRP)

Sustain/Execute The Sales Process(TSP)

Financial

Customer

Internal

Learning

Shift Revenue Mix to Higher Margin Products/Services

to Improve Margins

Deploy Business Unit

Offerings

Discover and Analyze

Customer Needs


Strategic Pathway




Existing Initiatives

Certification Program

Consultative Selling

Integrate media products into our computer and self-service offerings

(Outside Study): Localize Americas programs on a regional basis (e.g., The Sales Process, Marketing Programs for Canada, Latin America and US Area).

Increasing PS and CS service content and enable all 550 salespeople to sell services.

Developing horizontal offerings across industries.

Define and deploy the GRP in the Americas Region

Expand to Professional Services and other sales industries.

Building consultative selling skills within our sales and services organizations.

Manufacturing -Jim S.

Corporate Marketing - Alice L.

Global Sales - Connie C.

Corporate Marketing - Bruce G.

Distribution - Eric S.

Lg Bus. Sales - Barbara R.

HR - Allen V.

Training - Bryan D.

Initiatives Description Sponsor


Increase Consultative

Selling Skills

From Strategy Map to Implementation: The Alignment of Initiatives and Resources



StrategicPathways

Targets and Measures

Supporting Initiatives and

Implementation Plan

Financial

Provide World-Class Ongoing

Support

Customer

Internal

Learning &Innovation

Easy to DoBusiness With

Solve High ValueBusiness Problems

New ProductDevelopment/Service

Opportunities

Share BestPractices

IncreaseLeadership Skills

Foster Sales/Marketing Alignment

New Product Development Insights/

Raw Creativity

PerformEffective Deliveryand Installation

Increase ConsultativeSelling Skills

Improve Customer Awareness

PROFITABLE GROWTH

Sales Excellence

Manage Inventoryand Receivables

Effectively

LeverageResources

Supply KnowledgeInfrastructure

(System and Tools)

Create Success-Oriented Culture

Capture Product/Customer/Industry Knowledge

CreateCustomer Driven

Marketing Insights

Shift Resources to High Potential Revenue

Generating Roles

Deploy Services Resources to Improve

Productivity


DynamicDeployment of

Cross- FunctionalResources

Just-in-TimeResource

DeploymentManage

Resources

BuildSkills



Leverage Peopleand Financial Assets toAchieve Organizational

Productivity

Shift Revenue Mix toHigher Margin

Products/Services toImprove Margins

Grow Revenue ThroughCustomer

Extension/Expansion

Redefine CustomersBusinesses

Grow Revenue ThroughCustomer Retention

Service Excellence Our VisionSolution Selling

SimplifyProcesses and

Enhance Systems

Effective ProjectManagement

Deploy BusinessUnit Offerings

Localize BusinessUnit Offerings

Discover andAnalyze Customer

Needs

QualifyOpportunities

Create Centersof Expertise

Create CustomerCompetitive Advantage

Differentiate OdessaFrom Competition

Context For

• Clear roles and responsibilities in managing initiatives

• Executive Meetings

• Balanced Scorecard provides a key communication tool to the entire organization

Aligning the Managing Process and Balanced Scorecard Architecture

Balanced Scorecard Architecture

Managing Process



Contents






The Implementation of a Balanced Scorecard Management Process is a Leadership Challenge

The number one key success factor for BSC implementation is the support and follow through of leaders in the organization

The BSC implementation process (the design and cascading) typically raises difficult issues for the Leadership team

• The translation of the strategy into operational terms forces a number of important strategic issues to be clarified and reconciled with short term business challenges

• Aligning resources with strategic initiatives raises issues of priorities – and forces decisions around what a leadership team will not do

The ongoing use of a BSC-based Management Process also raises key leadership challenges

• BSC use drives greater accountability and transparency of decision making for the leadership team and the organization

• The BSC provides feedback that requires more team based problem solving rather then traditional command and control approaches

BSC implementation requires the conscious management of change by the leadership team

BSC implementation requires the conscious management of change by the leadership team



Individual Leader’s Challenge

Individual Leader’s Challenge

Analytical side/

Process drivenapproach

Designing the BSC

Using the BSC to manage the business / function

What role do I play in doing this?

Emotional side of change - what we do & how we behave

Conscious leadership of change

“Felt leadership” in the organization

Key ActivityKey ActivityApproachApproach

Leadership Teams Are More Comfortable with Process and Less Comfortable with the “Soft-side”of Change

How will I model the type of leadership required to make this change work?



The Team Must Take the Organization With Them

A campaign of influence (power does not work)

Events/process (leadership forums, action learning teams etc.)

Leading by example

Communication, communication, communication

Early engagement in the process Value and use this early feedback Walk the talk and stay the course

How do we engage the “top leaders” in

the organization?

How do we build ownership and buy-in from the broader

organization?

Having the Best Strategy Won’t Matter if You Don’t Have Motivated People to Execute It

Having the Best Strategy Won’t Matter if You Don’t Have Motivated People to Execute It



Using the BSC to Drive Strategy Implementation Is Both an Art and a Science… and It Requires Transformational Leadership

Developing a BSC-based Management Process is very much a transformational leadership issue • You are fundamentally changing how the leadership team operates

• …and how you engage the rest of the organization in tracking strategy implementation and adjusting that plan based on real-time feedback

It requires both the analytical process of BSC design and implementation as well as the “soft-side” of leading change by behaving differently as leaders

Transformational leadership must be designed for and executed as a critical element of the overall BSC and transformation effort

“…one of the greatest benefits of the BSC implementation has been how it has changed the quality and effectiveness of the top

team’s conversations. It has challenged us all to be better leaders.”Craig Naylor, Executive VP, DuPont



Straw Model of Leadership Development Process

Context is the Business Strategy Defined by the Scorecard

Define the Leadership PopulationDefine the Leadership Population

Agree on a Leadership

Model

Agree on a Leadership

Model

MeasureLeadership( Baseline)

MeasureLeadership( Baseline)

Set Improvement

Objectives

Set Improvement

Objectives Create & Implement

Development Plans

Create & Implement

Development Plans

Re-measure& Set NewObjectives

Re-measure& Set NewObjectives

The Business



Process Steps for Transformational Leadership Development

a. Conduct half day leadership model and 360-degree process training session

b. Participants select up to 8 people each to give them feedback

c. Distribute 360-degree assessment instruments

d. Collect instruments and process feedback reports

1. Baseline Assessment against TLP model

2. Deliver Individual Feedback

4. Group Development sessions

a. Conduct half day group training sessions followed by:

b. Individual one hour coaching sessions

c. Creation of individual development plans by participants

a. Embed this process within the new Managing Process by developing scorecard Leadership Development metrics and targets from baseline data

a. Analyze individual developmental needs across the organization

b. Determine common needs

c. Design appropriate group level intervention to meet common needs

3. Organizational Development Planning

5. Embed process within the Managing Process

a. Implement first round of high impact Group Development sessions linked to individual skill application in the workplace



The Transformational Leadership Process (TLP) Encompasses Ten Scales of Leadership

1. Capable Management“People don’t know their jobs or roles and responsibilities of others”

Measures day to day basic administrative or managerial tasks

2. Reward Equity“People don’t understand and are unhappy with HR issues”

Measures degree to which goals are made clear and goal accomplishment is rewarded

3. Communication Leadership“ Communication is inconsistent, unclear, and incomplete”

Assesses the ability to manage and direct the attention of others through clear and focused interpersonal communication

4. Credible Leadership (Trust)“Trust is at a low. Real focus is required to rebuild it”

Measures perceived reliability and integrity

5. Caring Leadership (Respect)“I’m concerned at how people are treated”

Measures degree to which respect and concern for others is demonstrated

Process Detail



The TLP Encompasses Ten Scales (cont.)

6. Creative Leadership“Employees and channel partners are looking for new approaches to the business”

Assesses ability to create opportunities and learn from failure

7. Confident Leadership“People are looking for leaders who are in control - change tends to destroy confidence”

Measures the extent to which self confidence is displayed and instilled in others

8. Follower-Centered Leadership“Channel partners want empowered field reps and employees want to be empowered”

Measures degree to which leader sees followers as empowered partners and not as pawns to be manipulated

9. Visionary Leadership“Channel partners need to know where this business is heading”

Measures ability to define and clearly express a future for the group or organization

10. Principle-Centered Leadership“Merging two cultures and creating a new one is important to future success”

Measures ability to develop and support shared values and beliefs

Process Detail



360-Degree Feedback Concept

MANAGER

SELF

REPORTS

PEERS

360 means you will get

feedback on Leadership

Behaviors from all sides

Good feedback is the key to beginning

the Personal Development

Process

Process Detail



Contents






Overview Of the Process

Data Analysis & Development Planning with each Individual

Team Development Sessions

One Day Leadership Team Workshop

One on One Coaching

One on One

Team Based Approaches



With Individuals- Our Process in More Detail

The coach will…

•Gather and review all available data about the person being coached including 360-degree feedback and survey data

•Interview 4-5 selected direct reports

•Conduct a half-day one on one session with the leader to review the data and agree on developmental goals

Individual Data Analysis & Development Planning

Each coach will schedule and conduct monthly one on one coaching sessions with each leader.

•These sessions may be face to face or by telephone.

•We utilize a coaching model called GROW which asks people to focus on; - their Goals, - the current Reality, - Options for improvement, - and a commitment to what they Will actually do differently and by When.

One On One Coaching



With Teams – Our Approach in More Detail

The coaches will design and facilitate a one-day leadership team meeting with the top level leadership team to build consensus around the following:

•Group/Team goals (where are the real breakthrough opportunities)•Individual development plan sharing•Mutual developmental support•Plan to share successes and best practices in personal and employee development

One Day Leadership Team Workshop

To help accelerate development, every two months the coach will facilitate a half-day group session with the leader being coached and their direct reports to accomplish the following:

•Share team member individual development plans and actions regarding selected breakthrough business goals•Work on group support and development processes•Coach the leader on how to develop both the individuals who report to them and to develop the workplace culture in their organizations (how they work together)

Leader Team Development Sessions

© 2004 leadership perspectives. all rights reserved. js 01-19-04 leadership perspectives contents...

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