ICANS 2011

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PERFORMANCE LEADERSHIP

I.C.A.N.S.

2011

Leading People for Greater Performance


The Challenge:

The top challenges for leaders in 2011…

1. Excellence in execution

2. Improvements to profitability

3. Engaging workforce


Canada shows a lack of urgency and leadership in resolving their productivity and competitiveness

issues.

The Situation:


The Result:


Our Objective Today

Translating Potential to Performance

PotentialFrom PerformanceTo


The Role of Leaders


“Key elements of Canada’s history and industrial structure may have nurtured a complacent business

culture.”Don Drummond, TD Bank

Execution remains the top challenge for

all organizational leaders.


The Productivity Imperative

Productivity is often understood to be working harder or working longer.

“Nothing can be farther from the truth, it’s deriving more output from the same

amount of time and effort.”Don Drummond, TD Bank


Where is performance going now?


Approximately 78% of execution losses are due

to issues of people performance.

How can organizations support people to perform at higher levels to execute

against the strategy?


Organizations achieve 63% of their potential performance!

HBR Study 2009


Execution is more important than strategy – 85% of bottom line

results are due to people performance via execution than the

strategy itself.


The leader who understands how to maximize return on execution depends on an

awareness of the strengths of the team’s talent in order to

execute the game plan.


The levers to increase the return on execution are

business alignment and people performance.


Define the strategic drivers

What are the performance

elements that if done better would most impact

the execution of the strategy (positions or

actions).


Know Your People

The greater the leader’s insight into the

performance capability of the team (and individual members) the more likely an increase in execution

will occur.


People Performance


The performance leadership framework evaluates the three

fundamental elements of team/organizational performance:

The Leadership alignment

The Productive synergy

The Strategic Focus


The Execution Advantage

The productivity economy will reward “do it smarter” organizations that build a better business model.

Smart organizations will increase their return on execution by focusing on drivers to achieve alignment and

productive synergy.

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The Performance

Leader


Where do you focus to be an effective performance

leader?


“Only when you know yourself and operate from your strengths can you achieve true

excellence as a manager.”

Peter Drucker


What do people need to be successful in their new role as performance-based leaders?

“Help me understand what success is going to look like in my new role, show me with examples, help me think differently so I can apply these things to the development of my people and the appropriate influencing of the organization.”


Skills most needed for performance leaders:

• Self-awareness and Emotional Intelligence

• Vision and Strategy• Communication• Tactical Management• Leading Others 3.0 – coaching,

delegating, and feedback


The three steps to developing individual operational leadership:

• Individual– Know Yourself

Clarity

• Strategic – Know Where & Who

Focus • Tactical- Know What, When and How

Follow Through


Becoming a Performance

Leader


Organizational strategy is a learning process that includes five elements:

1. Assessing where we are2. Understanding who we are and

where we want to go3. Learning how to get there4. Making the journey5. Checking progress


Leaders display performance leadership when they think, act,

and influence in ways that promote the sustainable

competitive advantage of the organization.


Only 27% of organizations integrate strategy and

tactics.

Benchmarking Solutions Study


Leaders need to focus on the strategic drivers of the organization …

• The relatively few determinants of sustainable competitive advantage for a particular organization in a particular industry or environment.


Most organizations have 3 to 5 strategic drivers at any

point in time.

Drivers can change – or the relative emphasis – over

time.


Business strategy is the pattern of choices an organization makes to

sustainable competitive advantage.

Leadership strategy describes the organizational and human capabilities needed to fulfill the business strategy

effectively.


Strategic Thinking


Strategic thinking revolves around the ability of a leader to help people make sense of the world around them – the challenges they collectively face and how they will face

them together.


Strategic Acting


Strategic acting is committing resources to

build sustainable competitive advantage.

Not every action is strategic – it is critical to apply actions that will

impact the strategic drivers of the organization.


Strategic decisions always involve uncertainty …

The key is not to make quick decisions but to make timely decisions.


Without strategic clarity and focus it is nearly impossible to make sound tactical decisions.


Strategic Influencing


Forging relationships inside and outside the organization, inviting

others to the process, building and sustaining momentum, and

purposefully using organizational systems and culture.


Influence must be used in all directions … up to senior

executives, laterally to peers, down to reports, and outside to

stakeholders and customers.


Key strategic influencing tactics…

-Influence others by involving them in the process

-Create common understanding, create champions, demonstrate others are valued


Key strategic influencing tactics…

-Influence others by connecting on an emotional level

-Learn what is important to others

-Use the power of language-Connect to aspirations


Developing Performance Leadership:

• Assessing where you are, to• Understand who you are and where

you want to go, to• Learn how to get there, to• Make the journey, and• Check your progress


The Evolution of Strategic

Management


Strategy arose as a managerial discipline in the 1960s.


Models were developed to define

strategy.

Boston Consulting Group and McKinsey & Company were

key in developing frameworks to explain

strategy.


The Definition of Strategy:

An integrated set of actions designed to create a sustainable advantage over competitors.

PotentialFrom PerformanceTo


The Evolution of Strategic Management – four phases …

Potential

Performanc

e


Planning routinely progresses through four discrete phases of development.

At each phase, a company adopts attitudes and gains capabilities needed

in the phases to come.


Phase One

Financial Planning

Annual budgeting process to forecast revenue, costs, and capital needs over the next year.1


Phase Two

Forecast-based Planning

Extend the financial budgeting beyond the one-year time horizon

Start using trend analysis, regression models, and simulation models2


Phase Three

Externally Oriented Planning

Issues orientation – responsibility to lay out the key issues facing the organization3


Attention is shifted externally to customers, suppliers, and competitors.

Resource allocation becomes dynamic and plans are adaptive

Portfolio analysis is used to focus on competitive attractiveness and strengths


Phase Four

Strategic Management

Planning techniques are cascaded throughout the organization and strategic thinking is linked to operational decision making4


Discussions are defined by tomorrow’s strategic issues rather

than today’s organizational structure

Systems are in place to negotiate trade-offs, review progress, and

motivate and reward performance


The Performance

EdgeStrategy for a Bigger

Future


For achievers and teams, the struggle is focus.


The Dip Between Potential and Performance


How do we bridge the gap between potential and

performance?Potential

Performance


Strategy is the North Star that drives action and

performance.


Strategy …

• Builds prepared minds• Provides a framework for effective

decision-making• Acts as a catalyst for team engagement


STRATEGY is the real competitive advantage.


Most individuals and teams don’t do strategy well:

• Only 8% of strategies achieve results as planned

• 37% of strategies fail outright• Teams assess leaders as 69%

effective at performing against plans


Why is strategy so difficult?


It is human nature to talk about the future and then

move directly to short-term tactics.

We skip strategy!


Without strategy, we become distracted by…

• Shiny Object Syndrome• Commitment Creep


The results:

• The short term takes over• The pace is accelerated• Work is reactive rather than proactive• We are tactical not strategic


Defining Strategy:The plan that a team takes to differentiate itself positively from the competition using

its strengths to provide value to satisfy customer needs now and in the future.


Strategy involves:• Clear, concise and measurable statement

of 3-5 objectives• Realistic assessment of key factors

guiding team actions• Description of key approaches used to

realize results


We need to resist the urge to hit the ground running.


The Strategy Perspective:Bridging the Performance

Gap

Diagnose before the cure


The Strategy Triangle:Working the Sweet Spot

Understand the interaction of the three key influencers on your performance …

your team, your clients, and your competitors.


The Strategic Sweet Spot

The strategic sweet spot of a company is where it meets customers’ needs in a way that rivals can’t, given the context in which it competes.

CONTEXT(Technology, Industry demographics,

regulation, and so on)

COMPETITORS’offerings

CUSTOMERS’needs

COMPANY’Scapabilities

SweetSpot


The Strategic Drivers:The Art of Focus

Mindpower over manpower.


Start with the end in mind and clarify your results – then work

back.


Focus on five key strategies – gives a great feeling of

motivation for everyone.


The Performance Scorecard:

Measuring for Success

“What gets measured gets better”


The Performance Scorecard is an instrument to navigate your future success, and a means of effective communication and motivation.

You link cause and effect.


The Strategic Roadmap

A two-page summary of your strategy.


The solution to connect potential to performance is

to proactively set up the environment for success.


The Strategic RoadmapThe Performance Scorecard

Critical to your success.


The benefits:

• Create a winning team• Sharpen your client focus• Add value• Consistent and coordinated action


The Performance Edge:

Mindset for progress not perfection.

Focus strategically to achieve best results.


Creating A Vision


If you want to be an effective

leader – at any level – you should pay attention to

vision.


You’re busy managing others, delivering on objectives,

implementing plans, building a team, and focusing on financial performance – creating a vision

is not your priority.

Right?


Leaders who communicate a strong vision are seen by their bosses and co-workers as more

effective.


The Vision Advantage:

The content of your vision affects employees’ perception

of your organization. Your articulation of the vision affects

their perception of your leadership effectiveness.


The Vision Advantage:

Vision content and communication give your

employees, colleagues, and other stakeholders a powerful

image of how you your organization is and how skilled

you are as a leader.


The process of creating a clear and compelling vision is not widely understood.


A strong vision is correlated with:

• The ability to lead change• Competence in strategic planning• Inspiring commitment• Having a strong executive image


As a leadership characteristic, having vision usually entails the ability to come up with a direction and the ability to sell that direction.


The Elements of a Compelling Vision:

• The Big Idea• The Values• The Story• The Growth Factor• The Change Factor


Success in today’s organizations requires some

level of shared direction, alignment, and commitment

among people.


• Direction is agreement on goals• Alignment is coordination of

work• Commitment is dedication to

success

The starting point comes from a leader’s vision.


Whatever the size or scope of your work, leadership begins with defining and connecting

to a vision.


The Big Idea:

1. Provides overall direction to employees and guides their work toward long-term goals

2. It represents the ideal state3. It speaks to the impact the

work and the peoplehave on others


The Big Idea is the “ideological goal”

• What is the fundamental, enduring ideal on which your work is built?

• Source: DDI 2009


This is element where leaders struggle the most

with vision.

• Executives tend to be too tactical rather than inspirational.

• An ideological goal is the strongest predictor of a strong vision – a vision statement should be exhilarating.


Don’t describe the status quo.

Do express ideals.


The Values

• The question for leaders is what deeply held values underpin – or should underpin- the daily life of the organization.


Vision statements should represent the primary value – core values often focus on

people, customers, products, or business.

What are the values that liveat the core of your organization?


Don’t focus on financials.

Do factor in people.


The Story

“Five years ago today, this division began as a small offshoot when a

customer requested a customized order and we scrambled to pull it off –

because no one else could. Today we are the most innovative,

most profitable segment of the company.”


Every powerful vision includes a frame of

reference – a story – that reveals something about the environment of the

business. It should touch on the past,

present, and future. It should resonate with the culture.


What is your story?

• Don’t isolate goals.• Do create context.


The Growth Factor

Growth is associated with success and seen as an essential for a strong vision.

What is important is defining growth so that it makes sense to the organization.


Why are we growing?

Where are we growing?

How are we growing?


Don’t be vague.

Do clarify expectations.


The Change Factor

The vision should incorporate themes that reflect the changing times. How is the organization going from where it is to where it needs to be in the future? What will need to change and why?


• Don’t ignore the future.

• Do describe the drivers of change.


Putting it all together.

A clear and compelling vision that uses all five

factors in fewer than sixty words.

Think about the impact of the vision on employees

and customers.


The strength of the vision is the relevance.


The C-level View

75% of senior leaders selected developing and

communicating a strong and compelling vision as the critical factor for their

success.

Vision was seen as more important than financials,

talent, communications, and strategy.

CCL


Using Images


Using images connects better to your audience – it

stimulates thinking and opens up new

possibilities.


The Visual Explorer

How will the world look different as a result of your

vision?


Vision and Resilience

The quality of your vision and your ability to pitch your

vision will have an impact on your effectiveness as a

leader.


Vision is also a powerful component of resilience – the ability to adjust and

recover from adversity, challenge, and change.


As a leader, you have a role to play in creating the vision and helping bring it to life – one that brings tangible benefits to yourself and your organization.


Organizational Performance


Organizations face a daunting and seemingly

contradictory set of goals:

• Provide a differentiated client experience at lower costs

• Generate significant growth while managing the bottom line


Organizations face a daunting and seemingly

contradictory set of goals:

• Use technology for greater efficiency without losing personal client connection

• Standardize and … customize


The Common Element:

People – people are more than ever a source of critical skill and knowledge as well as the foundation for sustainable competitive advantage.


23%

44%

25%

7%

EngagedEnrolledDisenchatedDisengaged

The Global Engagement Gap

Where does Canada stand?

Source: Towers Perrin (2009)


The engagement gap can be defined as:

the difference between the discretionary effort that

employers need for competitive advantage and employers’

ability to elicit this effort from a significant portion of their

workforce.


Workforce Engagement is a Normal Distribution


The Economics of Engagement

Part 1

Improving the engagement – and in turn the performance – of an

employee has the potential to increase overall productivity by up

to 23% on average.

Source: Cascio (2009)



Part 2

Approximately 68% of your employees have the potential to increase overall engagement and

leverage productivity.




Part 3

The key question is not which talent group has the greatest value

but rather in which talent group would a change in performance

variation have the greatest impact?



Part 4

Performance varies across jobs.

• The nature and scope of the job

• The relative value of variations in performance of the job



Part 5

Potential engagement / productivity enhancement is position dependent

Low complexity position … 15% boost Moderate complexity position … 25% boost High complexity position … 46% boost




What are the high complexity positions in your organization that can be most highly leveraged with

an increase in engagement to a boost in productivity?



Invest in positions where the value of performance variance is the highest and the organization gains the most

strategic return.

Find the most pivotal position.


Leaders play a pivotal role in the engagement equation:

The need for effective leadership at the top

The need for customizing the culture and work environment to support employee engagement

Putting employees under the same microscope as customers to take actions


Effective Management

Practices

Customer Satisfactio

n

Employee Satisfaction

Drive

Enables Drive

Long-TermProfitability and Growth


Continued business productivity growth today depends on

closing the engagement gap and maximizing employee

input.


How Engagement Affects Financial Performance



How engagement

affects individual

performance …



How Employees Rate Leaders on Key Engagement Supports



The Leadership Divide

Many senior leaders began their careers in specific professional /

technical positions with key analytical and rational skills.

Empathy, communication, and gaining perspective may not be

key strengths even now.


The Five Steps

1. Start with the end in mind2. Specify the skills needed3. Develop the right skills the

right way4. Support the transition of pivot

positions5. Engage and inspire people to

meet business needs


The Pivotal Investment

Overall workforce engagement can be increased with the greatest leverage through the right investment – leaders are the critical supporters needed for this investment.


The Pivotal Investment

To move the productivity curve outward …

“An investment in knowledge pays the

best interest.”Benjamin Franklin


People Performance


People Performance

The leader’s ability to measure and manage the team’s (and

individual’s) instinctive approach to the drivers of the strategy will close

the gap.


The Performance Process

Motivation Motivation

Reason

ProductiveAction

Affective Conative Cognitive

WillInstinctsInstincts


The Five-Factor Framework™:Improving Execution through

People Performance

1. Define the strategic drivers2. Measure the instinctive leadership

approach3. Measure & assess the instinctive culture

to support the strategy and the organizational culture

4. Assess the organizational instinctive performance map

5. Identify and close gaps


Define the strategic drivers

What are the performance

elements that if done better would most impact

the execution of the strategy (positions or

actions).

1


Measure the

leader’s instinctive approach

2


Measure the instinctive strategy culture

3


Measure the instinctive organizational culture

3


Measure the instinctive strategy and

organizational culture 3


Assess the organizational instinctive performance

map 4


Identify and close instinctive performance

gaps5


Insights and Actions:


Thank You!

For More Information, Please contact us at:

(902) 425 – 0467 or email [email protected]

mailto:[email protected]

ICANS 2011

Business

Transcript of ICANS 2011