mdp module 1€¦ · values driven driving performance relevance to stakeholders vision mission...
TRANSCRIPT
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MANAGEMENT AND LEADERSHIP
MDP
Module 1
July 2019
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Key Themes – Management and Leadership
STRATEGY
ALIGNMENT
PERFORMANCE
Global Context (Competitive
Operating
Environment)
Strategy
OrganisationCulture
(Values, Ethics)
Management and
Leadership
(Governance)
Implementation
(Driving Performance, Competition)
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VUCA World: Investor and Trade Challenges
Crises in 2019:
Natural Disasters:
• Severe drought in Africa and Southern Africa (El Niño); implications for agriculture and food prices; consumer price inflation
Rand Currency Fluctuations:
• Rand recently appreciating against US Dollar and foreign currencies, after depreciating by more than 20% (3 years)
Energy Prices:
• Oil has fluctuated from highs of $147 a barrel to below $33 a barrel, with its impact on economies globally (e.g. Nigeria and Opec countries such as UAE)
Global Migration:
• Particularly the wars in North Africa and instability in the Middle East, leading to millions of migrants moving to Europe and other safer countries
Leadership Issues:
• Elections and political crises; Government instability; lack of statesmanship/global leadership; US-China trade wars; Brexit
International Terrorism
• ISIS, Boko Haram and other groupings, regular reports of bombings and civilian deaths, driven by various ideologies
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Source: World Health Organisation
2050: World Population Growth
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GLOBAL CONTEXT - COMPETITIVE
WEF: Global Competitiveness Report
2018
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Competition is Global
“Unlike others, we are not content to settle for
what was accomplished in the past, because life
doesn't stop and it doesn't care about those who
stop because they are content with what they
have achieved.”
HH Sheikh Mohammed bin Rashid Al Maktoum
Vice President, Prime Minister and Ruler of
Dubai
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GLOBAL CONTEXT - COMPETITIVE ENVIRONMENT
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SOUTH AFRICA – GDP GROWTH RATE (2016-2019)
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CONTEXT – South Africa
Competitors
Substitutes
CustomersSuppliers
Social
Economics
PoliticsTechnology
Ecology
Media
Demography
Rules&
regulationsMICRO
ORGANISATION
MACRO
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SA: Policy Making in a Complex World
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• Greater regional economic integration is
necessary for long term development
• Many of our problems such as energy
and food security can be solved taking a
regional respective
• Obstacles include infrastructure,
corruption, protectionism and weak
regional institutions
• Global linkages and need for break into
fast growing markets
SA: Vision - Inclusive Economic Growth
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SA Vision - Social Inclusion and Radical Economic Transformation
• Social inclusion is necessary to transform
the country while reducing poverty and
enhancing opportunity for young people
are critical to building social cohesion
• Despite diverging interests, success will
depend on building partnerships across
society
• Rallying people around the Constitution
and its values
• Active citizenship through enhancing
communication channels between
government and society
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• Context (4IR and Employment)
• Marikana Watershed
• Outlook for Mining Sector
• Trade Unions
MINING INDUSTRY SNAPSHOT
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STRATEGY: Vision, Mission, Implementation
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Game Changers:
• Landscape (Broad Context
- Quantum computing
- Open Intellectual Property (IP - Open Source)
- User control and orientation
- MOOCs and education/knowledge access
- Disruptive technologies
• Technology (Platforms)
- Universal memory
- Multi-core availability 24/7 (always on)
- ‘Internet of things’
- Silicon photonics (big data transfer/networks)
- Cloud computing (data storage)
• Software Applications (How messages delivered)
- Appropriate access
- Natural user interfaces (connectivity)
- Artificial intelligence (users/technology)
Market Intelligence, Research, Data Analytics
Source: Government Communication Service, HM Government, July 2015
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Source: Government Communication Service, HM Government, July 2015
Market Intelligence, Research, Data Analytics
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Source: N. Chorn
Strategic Alignment: PADI LOGICS (Strategy and Behaviour)
Dominant Logic?
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Source: N. Chorn
Strategic Alignment: PADI LOGICS
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Source: N. Chorn
Strategic Alignment: PADI LOGICS (Organisation Life Cycle)
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Source: N. Chorn
Strategic Alignment: PADI LOGICS (Organisation Life Cycle)
New Cycle?
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Source: Donald Sull,
Harvard Business
Review
Strategic Alignment: VUCA - STRATEGIC AGILITY (AND ABSORPTION)
Approach*
- Probing for opportunities
- Mitigating risk
- Staying in the game
Portfolio Agility
Operational Agility
Organisation Resilience (Absorption)
Triple Bottom Line and Sustainability
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ORGANISATION CULTURE
• Attitude and atmosphere of a company
• Fit person and culture (unspoken rules)
• Reading the cultural gaps (organ
transplant/rejection)
• Examples: lifestyle, pace of change, internal
competition, power centralised?
Corporate culture is the shared behaviours, experiences,
stories, beliefs, and norms that characterize an organization
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NATIONAL PATTERNS OF CORPORATE CULTURE
Source: Riding the Waves of Culture, Fons Trompenaars
INCUBATOR GUIDED MISSILE
FAMILY EIFFEL TOWER
Decentral
Central
Informal Formal
Sweden
France
Belgium
India
JapanSpain
USA
Canada
UK
Denmark Netherlands
Germany
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ORGANISATION: VALUES
Values are important or lasting beliefs or ideals shared by the members
of a culture about what is good or bad and desirable or undesirable
Values have a major influence on a person’s behaviour and
attitude and serve as broad guidelines in all situations (dilemmas)
• Values versus behaviours - and performance
• Global organisations?
• Imposed versus emergent culture
• Integrity
• Fun
• Customer Service
• Honesty
• Excellence
• Reliability
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ORGANISATION: ETHICS AND GOOD GOVERNANCE
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ORGANISATION: ETHICS AND GOOD GOVERNANCE
4IR
- Technology
- Risk Management
- Cyber Security
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DEVELOPMENT OF HUMAN CAPITAL
• What are you worth?
• What determines your value in the marketplace?
• Potential and experience
• Trends in supply and demand (across sectors, functions,
• geographies
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THREE CAREER PHASES
PHASE 1:
Promise
Perceived Value
(Potential +
Experiential)
PHASE 2:
Momentum
PHASE 3:
Harvest
Value of
Human
Capital
Career Timeline
Career Beginning Retirement
Experiential value
Source: Citrin & Smith, 2003
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LEADERSHIP
Styles of Leadership
•Visionary — mobilize people toward a vision. ...
•Coaching — develop people for the future. ...
•Affiliative — create emotional bonds and harmony. ...
•Democratic — build consensus through participation. ...
•Pacesetting — expect excellence and self-direction. ...
•Commanding — demand immediate compliance…
Leadership in an African Context? Ubuntu / Legacy of Nelson Mandela
Situational Leadership
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PROBLEM SOLVING - THINKING HATS
Edward de Bono
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LEARNING FROM LEADERS
What makes a successful leader?
• To lead is to serve
• Overcome permissions paradox
• 20/80 performance principle
• Practice benevolent leadership
• Find right fit (strengths, passions, people)
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LEADER PROFILE: Liu Chuanzhi
• “Perseverance – stick to your
goals and keep trying all the time”
• Lenovo Group Chairman
• 1984: founded Legend as a
distributor of foreign PCs
• 2004: China’s largest computer
manufacturer
• Returning to core computer
business
• 2014: #1 Global Vendor of PCs
At 73, Lenovo's Liu Chuanzhi is still a legend in the world of Chinese business
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LEADER PROFILES: South Africa (Mentoring Role)
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Source: Donald Sull,
Harvard Business
Review
Strategic Alignment: STRATEGY IMPLEMENTATION
Guidelines / Rules
- Align all behavior/activities with organization objectives
- Adapt to the operating environment and changing context
- Foster co-ordination
- Process for problem solving and making better decisions
- Simplicity is a virtue
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WHO Principles of Strategic Communication
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Strategic Alignment: ORGANISATION SUPPLY CHAIN
Wheelen/Hunger
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Resources: COMPETENCIES
AT QA TD CP CS MP EC IN
Business Core Function
Investment Management
Harvard
Business
School
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Resources: COMPETENCIES
AT QA TD CP CS MP EC IN
Business Core Function
Production and Operations Management
Harvard
Business
School
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Degree of Authority
Management Dilemmas
Degree of Participation
XX
Reality
Perception
Individual
Communication
Group/Team
Communication
X
Short Term
Objective
Long Term Vision
X
Source: Trompenaars and Voerman, 2009
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A Steep Contribution Curve
Pursuing Excellence Through Optimal Organisation Performance
Leadership
Renewal
Transformation
Common Purpose
Competencies
Differentiation
Values Driven
Driving
Performance
Relevance to
Stakeholders
Vision
Mission
Strategy
Making the Future a Reality
for all Stakeholders
Building a Culture to Underpin
and
Deliver Organisation Vision
Leadership and Management
Su
cc
es
sfu
l Ex
ec
utio
n
2019 2020 2021
Organisation
Value
Key Performance Areas and Objectives
Contribution of Effective Organisation Performance
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Strategy – plan to achieve objectives
• Vision, Mission and Culture underpin
strategy
• Identifies clear and measurable
objectives with evaluation
• Relevant target markets and
stakeholders
• Plan of activities and a timetable
• Address risks and mitigation
• Leverage of resources – financial and
people
Implementing Strategy - Turning Theory and Plans into Action
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45
Organisational Capital and Alignment (Example)
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TRANSFORMATION – HIGH PERFORMANCE ORGANISATIONS
• On a large scale
• New ways of working
• New behaviours
• Leadership role?
• People processes as a source of competitive advantage
• Trust and commitment
• Operating Environment
• Strategy
• Culture
• Leadership
• Implementation
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STRATEGIC ALIGNMENT?
Up to 50% of senior management time is taken up with people matters.
Senior management spends less than 1% of their time on
strategic planning.
Companies focused on issues have 16% greater profits than
companies focused on business units.
Harvard Business Review
Finding the right issues and then focusing on them is the only
way forward in business today.
Prof. Peter D Skinner Texas A&M
‘A Review of all major Business Schools in the USA’
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EFFECTIVE ORGANISATIONS
Tight focus on customers and local markets
Flat structures and decentralized controls
Empowered Management and staff
A concentration on core activities
Controls that are both loose and tight
Consultative decision-making
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Truths about LEADERSHIP
• You can make a difference
• Credibility is the foundation of leadership
• Values drive commitment
• Focusing on the future sets leaders apart
• You can’t do it alone
• Trust rules
• Challenge is the crucible for greatness
• Either lead by example or don’t lead at all
• The best leaders are the best learners
• Leadership is an affair of the heart
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COMMON PURPOSE
(COMMON GOOD)
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MANAGEMENT AND LEADERSHIP
MDP
Module 1
July 2019