1c leaders engage with external stakeholders
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1c Leaders engage with external stakeholders, International Human Resources ManagementTRANSCRIPT
1c Leaders engage with external
http://www.flickr.com/photos/silkegb/3995479010/sizes/o/
stakeholders
What we have learnt.• Overview of the EFQM Model
to be applied for HR-• Criteria 1
• Tasks/Roles of LeadersDepartments
• Criteria 3• People Approaches
• Criteria 5
• Leaders drive the vision• Various Theories, Types, Traits
about Leadership• Process of coordinator, owner and
• Criteria 5• HR Process Management
• Criteria 4e• Learning Organization
manager• Regular BSC review• Assessor/ auditor
g g• People, Places and Objects
Approach• Intercultural Management by
LixiuLixiu• Criteria 7
• People’s Perception measures• People’s Performance Indicators
International Human Resources Management,Dr. Jörg Klukas
The EFQM excellence modelQ
Enablers Results
People
Leadership
People
Policy andStrategy Processes
People Results
CustomerResults
KeyPerformancep Strategy
Partnerships& Resources
Processes Results
SocietyResults
Results
Innovation and Learning
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The EFQM excellence modelQ
Leadership
People
Strateg Processes
People Results
Customer Key Performance 1 L d hiLeadership Strategy
Partnership& Resources
Processes Results
Society Results
PerformanceResults 1. Leadership
a. Leaders develop the Mission, Vision, Values and ethics and act as role model
b. Leaders define, monitor, review and drive the improvement of the organization’s management system and performance
c. Leaders engage with external stakeholders
d Leaders reinforce a culture of excellence with the organization’s peopled. Leaders reinforce a culture of excellence with the organization s people
e. Leaders ensure that the organization is flexible, and managers change effectively
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The EFQM excellence model – PeopleQ p
1 L d ith t l t k h ldIn practice, excellent organizations:• Know who their different external stakeholder groups are and
1c Leaders engage with external stakeholders.
APPROACHESg pdevelop approaches to understand, anticipate and respond to their different needs and expectations.
• Establish approaches to engage partners, customers and i t i i id d i i
Leaders manage external stakeholders
society in generating ideas and innovation.
• Use innovation to enhance their organization's reputation and image and attract new customers, partners and talent.
Corporate Social Responsibility
• Identify strategic and operational partnerships based on organizational and strategic needs, complementary strengths and capabilities
• Ensure transparency of reporting to key stakeholders
Direct Influence Methods
Leaders manage Shareholder • Ensure transparency of reporting to key stakeholders, including appropriate governance bodies, in line with their expectations.
gby Strategy (2)
Leaders manage Partners (4a)
1C LEADERS ENGAGE 1C LEADERS ENGAGE WITH EXTERNAL STAKEHOLDERSSTAKEHOLDERS
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4 Tasks of Leaders4 types of actions are performed by leaders: Strategic leadership includes the alignment of the organization towards a long-term goal. Operational leadership means the day-to-day interaction with all stakeholders. Process leadership represents the responsibility for continuous improvements. Leadership of change realizes break-through improvements to redesign the organization.
OperationalLeadership 1c/d
Strategic Leadership 1a
people
ss
ship
• Process Coordinator, Process OwnerProcess Manager
p e • Member of Management Review
VisionaryVisionaryEnablerEnabler
Proc
esLe
ader
s1b
g• Leader of Improvement Team• Assessor / Auditor (EFQM, Bootstrap/SPICE)
Lead
ersh
iof
Cha
nge
1e
g• Responsible for Strategic Initiatives• Manger of Innovations; Member of Disruptive
Innovation Decision Teams; Leader/Member of Focus Innovations
experiences
Role ModelRole Model
• Leading employees• Account Manager• Partner Manager• Responsible for Cultural Activities,
Educational Institutions,Governmental Relationships
• Set challenging goals, create belief and commitment to these goals, involving people at all company levels, stick with the challenging goals, focus on it and execute
• by Offsites, Management Meetings,
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BU/Account Reviews, Strategy Mapping, BSC
Changing world. New Requirements for Leaders to manage their Stakeholders.g
Industrial Age at the End:“Provider Power”,
t t f k t
Knowledge Age is coming:“Customer Power”,
t titi i di id li d d dstart of mass markets,Taylorism as superior working model
strong competition, individualized demand,decentralized and adoptable models establish
Features and leadership skills:
Dyn
amis
md
flexi
bilit
y
Features and leadership skills:• Discontinuous changes agile management• Short life-cycles drive disruptive innovation• Ongoing price reduction foster operational excellence• Customer as designer role model for customer service
D and
Features:• Incremental change• Long life-cycles• Stable prices
C i
• Picky Employees define great place to work• Transparency and society awareness social behavior,
sustainability
• Customers as receiver• Picky employers• “Managed” results
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1890 1980 1990 2000 2010 2020 2030
Roles of Leaders in managing their stakeholders
T k
Values, expectations,Interests, needsShareholder
TaskProducts/Services
Processes
Values, expectations,Interests, needs
Employee Leader
Supplier/Partner CustomerEmployee Leader
Relation
PartnerValues, expectations,
Interests, needs
Values, expectations,Interests, needs
Organization
S i Values expectations
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Society Values, expectations,Interests, needs
Leaders are strategic partners of their customersLeaders acquire new customers and manage existing customerscustomers
– Acquisition + Account-Manager (Key Account Manager)– Top Account Review
– Escalation, Customer-Feedback-Management– Customer Survey– Project Review
Build up knowledge about Customer needs and expectations
Focus on creating value for customer
Increase customer loyalty
Map customer structure to organizational structure
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Map customer structure to organizational structure; example for Big Projects; p g j
General ManagerGeneral Manager
General ManagerGeneral Manager
Steering Board
Department Leader
Department Leader
Department Leader
Department Leader
Escalation Board
P j t Project LeaderProject Leader
Project LeaderProject Leader
Project Manager
Team
Internal
Project TeamProject Team Project TeamProject TeamInternal
and external Project Team
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Customer Organization
Interaction Level with Customers
Th t i t b ildi d i t i i l t i / i l ti hiThe customer is a partner building and maintaining long-term, win/win relationships
The customer is a co-designer developing services together with the customer
The customer informs surveying the customer`s opinion
The customer is considered taking on the customer`s perspective
The customer is a receiver producing an selling products and services
Source: IAO Study, 2003
How does the company see the customer? What are the company`s tasks?
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Roles of Leaders in managing their stakeholders
T k
Values, expectations,Interests, needsShareholder
TaskProducts/Services
Processes
Values, expectations,Interests, needs
Employee Leader
Supplier/Partner CustomerEmployee Leader
Relation
PartnerValues, expectations,
Interests, needs
Values, expectations,Interests, needs
Organization
S i Values expectations
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Society Values, expectations,Interests, needs
Leaders manage their shareholders (2a-d)( )Leaders report to shareholder and manage their resultsresults
– Strategy and Planning– Medium-term planning, budget-planning and review
f – Balance Scorecard, Agreement of Corporate Targets (Management by Objectives)
– Business Unit Review– Management Review
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Roles of Leaders in managing their stakeholders
T k
Values, expectations,Interests, needsShareholder
TaskProducts/Services
Processes
Values, expectations,Interests, needs
Employee Leader
Supplier/Partner CustomerEmployee Leader
Relation
PartnerValues, expectations,
Interests, needs
Values, expectations,Interests, needs
Organization
S i Values expectations
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Society Values, expectations,Interests, needs
Leaders develop a network of win-win partnerships and suppliers (4a)p p pp ( )Make-or-Buy, Know-How, Learning, Bundeling-of-Competence are only some examples for strategicCompetence are only some examples for strategicpartnerships
– Manage strategic business partners (bundling productsf t )for same customers)
– Evaluate and provide feedback for classical suppliers– Network with educational partners (universities, schools)– Learn&Improve with quality partners (Benchlearning
circles, EFQM)
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Roles of Leaders in managing their stakeholders
T k
Values, expectations,Interests, needsShareholder
TaskProducts/Services
Processes
Values, expectations,Interests, needs
Employee Leader
Supplier/Partner CustomerEmployee Leader
Relation
PartnerValues, expectations,
Interests, needs
Values, expectations,Interests, needs
Organization
S i Values expectations
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Society Values, expectations,Interests, needs
Leaders represent Corporate Social Responsibility (CSR)p y ( )Leaders take social responsibility by
Using the results of their business to support the – Using the results of their business to support the development of the society
– Sponsoring of computers for educational institutions– Providing webpages for elderly people (barrier free internet)– Providing webpages for elderly people (barrier free internet)– Provide produced medicine for poor contries– …
Prevent society from any harm pollution etc generated – Prevent society from any harm, pollution, etc. generated by the business
– Environmental and sustainability aspectsGreen IT cool silicon etc– Green IT, cool silicon, etc.
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Drivers for CSR
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INFLUENCE MODEL OF INFLUENCE MODEL OF LEADERSHIP
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Ways to influencey
Leader
Leading by structure and systems
Leading by vision, corporate values and HR
policy
Processes, Objectives and Rewards
Vision, corporate culture, shared values and norms
Go ernance b
Direct Influence
Follower, Peer, Partner, Superior…
Governance by objectives, rules and
rewardsGovernance by
sozialization
Self-Governance byExtra-organizational
socializations or teams
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socializations or teams
Leaders Toolset of Direct Influence
Cause Criticism(Observable)
EmotionsEmotions(Unobservable)
ConflictValues, expectations,
Interests, needsValues, expectations,
Interests, needs
Conflict
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Sender Receiver
Direct Influence – CriticismTalk about objectives, not about emotions.j ,
Cause Criticism(Observable)
• Sender and receiver exchange information on an objective level
Emotions
objective level. • In an ideal situation, the
emotional level is not a topic.
• The foundation is an agreed Emotions
(Unobservable)standard that is assessed by both parties.
• In this situation the cause is only described, not evaluated
Values, expectations,interests, needs
Values, expectations,interests, needs
evaluated.
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Sender Receiver
Basics of CriticismDo it objectively, positively and encouraging.j y, p y g g
• If there is not a reasonable deviation of an agreed objective or standard criticism must be agreed objective or standard, criticism must be replaced by a personal feedback
• Phases of a criticism• Invitation• Introduction• Describing the factsDescribing the facts• Listen to follower; reflecting the facts• Agreement on objective/standard
A i ti• Apreciation
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Direct Influence – FeedbackTalk about emotions of only the sender.y
Cause
• There is no need for an agreed objective or standard
• The sender describes the (Observable) cause and his/her interests,
expectations, values and/or needs
• The sender is using “I”-messages
Emotions
messages
Emotions(Unobservable)
Values, expectations,interests, needs
Values, expectations,interests, needs
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Sender Receiver
Rules of FeedbackFeedback Sender has the responsibility for the feedbackFeedback Sender has the responsibility for the feedback
Feedback Sender1 Describe perception
Feedback Receiver1 Signal Thank you“ for1. Describe perception
2. Evaluate subjectively(interests, values,
1. Signal „Thank you forsharing personal view
2. Compare self-( , ,needs, expectations)
3. Ask for change
pperception with theperception of the other
3 Ad t ith t lf3. Adopt without self-abandonment (Selbst-Aufgabe)
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Direct Influence – ConflictExchange opinions on an emotional level.g p
Cause • Sender and receiver are (Observable) situated at an emotional level
• Different values, expectations, interests and/or needs are confronted within such a talk
Emotions
such a talk• If no one of the parties is
willing to move on an objective and cause level, the conflict cant be solved
Emotions(Unobservable)
ConflictValues, expectations,
interests, needsValues, expectations,
interests, needs
Conflict
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Sender Receiver
Conflict is a problem when it:p
Hampers productivity.
Lowers moraleLowers morale.
Causes inappropriate b h i
Causes more and continued
behaviors.
conflicts.
International Human Resources Management, Dr. Jörg Klukas
Conflict styles
Competing Collaborating
y
ASSERTIVENESSF d
• Zero-sum orientation• Win/lose power struggle
•Leader directs to win
Collaborating• Expand range of possible options
• Achieve win/win outcomes•Leader cooperates to find win/win
solution
CompromisingFocus on my needs,desired outcomes
and agenda
Avoiding Accommodating
p g• Minimally acceptable to all • Relationships undamaged
•Leader finds middle ground
Avoiding• Withdraw from the situation
• Maintain neutrality•Leader delays decision making
Accommodating• Accede to the other party
• Maintain harmony•Leader yields
COOPERATIVENESSFocus on others’ needs and mutual relationships
Source: www.kilmann.com/conflict.html (Bonnie Burrell, 2001)
Types of managerial actions that cause conflicts
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Direct Influence – ConvinceSender explains benefits for the receiver.p
Cause(Observable)
Emotions • Nobody is easily changing Emotions(Unobservable)
his/her opinion, by hearing a senders arguments
• In order to convince, it is necessary to address the values expectations
Values, expectations,interests, needs
Values, expectations,interests, needs
values, expectations, interests and needs of the receiver in order to express the benefits on an emotional level
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Sender Receiver
Negotiation based on interestsg
1. Argue on the cause level (separate man and problem)
2. Balance Interests (Why questions show different interests)
3. Present proof of concept(show objective criteria)
5 Principles Harvard-Concept (show objective criteria)
4. Find options(collect possible solutions)
(Win-Win Approach)
5. Alternative(the best alternative does not represent a pro nor a contra to the negotiation partner)
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p )
Process of negotiationg
• Identify interests, expectations, d d l f h hneeds and values of the other
• Set up your options and your Best-Alternative to Non-Agreement (BATNA)(BATNA)
• Present facts at the cause level supporting your options
• Bargain by asking details, addressing the emotional level of the other and providing concessions,
l i i thi t namely giving up something to achieve something else
• Achieve agreement
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