8/12/2020

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Welcome (back)

• You’ve watched intro• VUCA, change, friction/confusion/underperformance• Sustainable competitive advantages are difficult

• Let’s introduce you to your competitors!

• You’ve been quizzed on the pre-work• XXXXXX $5,000,000!• Feedback/elaboration

• Show portal

• Your questions?

• Discuss “rules”

• Alignment & Leadership

Max Hernandez

Jeff Lefebvre

Dave Semb Less Boyd

Recall: behaving “naturally” …

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Star

tYr.

1Yr

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3Yr

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6Yr

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8Yr.

9Yr.

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RO

I % Top Half

Bottom Half

Source: Ghemawat, Commitment

692business

unit’s ROI comparison over time

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8/12/2020

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“Built to Last” & “Good to Great”

• Studied “Great” companies

• Finding 1.⁻ “We’ve learned that, if anything, we

underestimated the importance of alignment”

• Finding 2.⁻ Leadership is key

• However, beware of the myth that visionary companies require charismatic leaders: “A charismatic visionary leader is absolutely NOT REQUIRED.”

• Think of ARCHITECTS

Built to Last, Collins and Porras; and Good to Great, Collins

Management"Coping withComplexity"

Leadership"Coping with

Change"

Shorter-Term Longer-Term

Risk Averse Seek Risk

Compromise Increase Options

Process Focus Substance Focus

Control Influence

Order Focus Change Focus

Source: Kotter, What Leaders Really Do

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Who Wins?• After the 5 Rounds of competition…

⁻ Each Team in each competitive World will present to the other Teams in their World and the PMs assigned to the World. 5-minutes each.

• Tell everyone why your Team deserves their vote

• Mission, strategies, goals, competitors

• Things that worked, things that didn’t

• How the Team worked together

• Why you’re best positioned for the future

• …Then, each person casts one vote for the best company in their World:

⁻ Be honest and ethical in your selection! PMs have veto power.

⁻ Can’t vote for your own Team; the PMs vote too

⁻ One vote per person (it’s not Chicago…)

• Team with the most votes wins that “World”!

• The Performance Measurement Sheet will be used to break a tie.

Consider:Profits CPAREmpl. of Choice BacklogBooking Margin ROEStock Price Revenues

CustomerSatisfaction

FinancialPerformance

StrategicDialogues

HR & WorkforcePlanning

BusinessDevelopment

AnnualOperating

Plan &Finance

SupplyChain

Management

OperationsReviews

CustomerFocused

Marketing

Methodology• You run a business (active, not passive

learning – a “laboratory”)

• Total immersion (overwhelmed with data. A representation of reality, not a replication)

• By doing it! (making mistakes)

• Focus on the bigger picture (get outsideyour specialty area – talk to others, listen to others)

• As an organized team (divide/conquer/report)

• Competing (focusing on end-goals)

• Fun!

10 lbs in 5 lb bagOutcome:

Improved Decision-Making

Common “Blind Spots” & Thinking Points

1. About the “whole” picture of A&D operations and the need for coordinated/aligned decision-making

2. About how you make money (i.e., financial reports, metrics)

3. About long-term positioning (i.e., strategy)

• About the need for management & leadership

• The advantages of teams/multiple perspectives/dialogue/debate (prepare you for IMPACT projects!)

An opportunity to share thoughts & best practices

in real-time

Survey Results

1=Lower Competency 5=Higher Competency

Avg Min Max

Work Exp (years) 2.4 1 7

Strategic Thinking 3.4 1 5

Business Planning 3.0 1 5

Plan Execution 3.4 1 5

Financial Statements 2.6 1 5

Metrics 2.7 1 5

Leadership 3.7 2 5

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Who Wins?• After the 5 Rounds of Competition…

⁻ Each team in each competitive “world” will present to the other teams in their world and PMs assigned to the world. 5-minutes each.

• Tell everyone why your team deserves their vote

• Mission, strategies, goals, competitors

• Things that worked, things that didn’t

• How the team worked together

• Why you’re best positioned for the future

• …Then, Each Team Casts One Vote for the Best Company in Their World

⁻ Be honest and ethical in your selection!

⁻ Can’t vote for your own team; the PMs vote too

• And Write 2 Bullet Points About Each Presentation You Heard:

⁻ One positive and one negative

⁻ Hand in to PMs

• Team With the Most Votes Wins That “World”!

• The Performance Measurement Sheet Will Be Used to Break A Tie.

• NOTE: Make sure no “contracts in crisis” in last round (CPAR <=8.5)

Consider:

Profits CPAR

Empl. of Choice Backlog

Booking Margin ROA/ROE

Stock Price Revenues

“To-Be”: FocusMission,

Objectives, Strategies,

Tactics

“As-Is”: LearnStrengths,

Weaknesses, Opportunities,

Threats

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Defining the “As-Is” with SWOT

“Discovery consists of seeing what everybody has seen and thinking what nobody has thought.”Albert Szent-Gyorgyi, in Irving Good, The Scientist Speculates (1962) US (Hungarian-born) biochemist (1893 - 1986). Discovered Vitamin C

Inte

rnal

As

sess

men

tEx

tern

al

Asse

ssm

ent

Strengths

S

Weaknesses

W

Opportunities

OThreats

T

“My conclusion… is that a good managerial record is far more a function of what business boat you get into than it is of how effectively you row.” Warren Buffett, in The Essays of Warren Buffett, 2015

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