SIOP Organizational Capability
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Transcript of SIOP Organizational Capability
2
Questions for this Session
As a practitioner, what are some of the challenges you see when it comes to execution of business strategy?
How do you get from higher-level strategy to something that can be executed by the business? How do you go about what it will “really take” to execute the strategy? How do you ensure that plan is successfully executed?
How can I/O psychologists/OD practitioners help? What is the Role of I/O professionals at the table to facilitate the right dialogue & process to achieve the business result.
3
The Case for Organizational Capability Alignment
65% of leaders do not consider their own organizations successful at executing their strategies. (AMA, 2012)
Only 17% of senior-level talent leaders indicate their workforce strategy is consistently aligned with their business strategy. (Hewitt Associates & HCI, 2008)
4
What are your specific challenges?
What will it really take? What will we do?
How will we get there?
Unclear Strategic Priorities
Lack of ConsensusOn Strategic Priorities
Undefined Capabilities Needed to Execute Priorities
Lack of Strategic Short- and Long-Term Priorities
How to Close theCapabilities Gap?
Are Work Streams investments Justified by value gains?
Unclear path from Work Streams to results…
Need to adapt/refine existing strategy to shifts in the environment
Unclear path from Work Streams to results…
5
Change Execution Model: Four Phases
Full realization of critically important endeavors requires disciplined execution of:• Decide
• Define
• Implement
• Sustain
SUSTAIN
PR
EP
AR
E
DECIDE IMPLEMENTDEFINE
Achieving minimum acceptable realization; no turning back
Achieving realization of intended business benefits
Clarifying what it will take and committing to the path ahead
Reframing, designing the solution, planning how we will get there by when & at what cost
© Conner Partners 2008. All rights reserved.
Re-decide
© Conner Partners 2008. All rights reserved.
6
Merck & Co. Model - Work in Progress…
1. Strategic Intelligence
2. Strategy Development
3. Business Portfolio Mgmt
4. Portfolio Resource Allocation Choices
5. Strategy Translation
6. Alignment & Execution Resources
7. Measures & Targets
8. Execute Initiatives
Operating planDashboardsBudgetsP&Ls
Performance metrics
Results
Performance metrics
8
Shell Strategic Planning:Scenarios
“OUR GOAL IS NOT TO PREDICT THE FUTURE BUT TO ENABLE POLICYMAKERS TO MAKE RICHER AND BETTER DECISIONS INVOLVING THE FUTURE, AS A RESULT OF HAVING A DEEPER GRASP OF KEY DRIVERS AND KEY UNCERTAINTIES.”
JEREMY BENTHAM, HEAD OF SCENARIOS, STRATEGY AND BUSINESS DEVELOPMENT, ROYAL DUTCH SHELL
March 2013
MountainsThe first scenario, labeled “mountains”, sees a strong role for government and the introduction of firm and far-reaching policy measures. These help to develop more compact cities and transform the global transport network. New policies unlock plentiful natural gas resources – making it the largest global energy source by the 2030s – and accelerate carbon capture and storage technology, supporting a cleaner energy system.
OceansThe second scenario, which we call “oceans”, describes a more prosperous and volatile world. Energy demand surges, due to strong economic growth. Power is more widely distributed and governments take longer to agree major decisions. Market forces rather than policies shape the energy system: oil and coal remain part of the energy mix but renewable energy also grows. By the 2070s solar becomes the world’s largest energy source.
http://www.shell.com/global/future-energy/scenarios/new-lens-scenarios.html
http://youtu.be/jIwzMhDFP2M
Copyright Royal Dutch Shell
10
Shell Change Architecture:Change Health Tracker Process Overview
Dan
ger
Cau
tion
Un
der
Con
trol
Op
tim
ised
SCORING
EXAMPLE
SUGGESTED DIAGNOSTIC PROCESS
Introduce and explain the 10 change principles and the tracker tool
Agree which change programme or project to health track
Take each principle in turn and ask “How well has this principle been applied to the change so far?”Assign a score and move to next oneCapture diagnostic insights on a flipchart as you go
Complete the diagnostic scoring
Step back and draw conclusions
Through discussion, convert diagnosis into a structured set of follow up actions that:- mitigate identified change risks in each change principle- further strengthen and leverage proven strengths of the change programme/project
Programme
Management
Leadership
People
Programme
Management
Leadership
People
4. Implementation driven by leadership as an integrated
whole
3. Diagnostic review of organization capability leading to a prioritized portfolio of interventions
5. Clear understanding of the
case for change, the future
state, the impact on them
and their role in it
7. Involvement of those most
impacted
9. Progress monitored
and used to correct
8. Change plans defined and resourced
1.Dissatisfied leaders personally committed to the change 2. Compelling case
for action among a
critical mass of leadership
10. Sustainable change
celebrated and institutionalised
6. Their psychological responses are
addressed
Copyright Shell Organisation Effectiveness
11
Shell Change Architecture:Plan on a Page (POAP) steps for each work stream
Programme Set-up
1Change Programme CharterChange Impact AssessmentChange StrategyChange Implementation PlanDesign Strategy Document Programme Kick off Workshop *Programme OverviewImplementation History Assessment
Change Implementation Plan
Change Health Tracker
Individual Readiness Assessment
Implementation Plan
5 Manage and Document Programme10
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Direction Setting Design & Plan Close OutConsolidation
& Improvement
Mobilisation Delivery TransitionBCIM Workstreams
Close-out, Communicate, Celebrate, Redeploy
Engage Leaders2
3 Stakeholder Engagement Plan
4 Conceptual Design
8 Training
9 Implement Organisation Design
7 Stakeholder Engagement and Communication
6 Change Agent Training 11
Implementation Assessment
Change Health Tracker Communications Health Traker
Communications & Engagement Strategy Stakeholder Analysis & Engagement PlanCommunications Plan
Training StrategyTraining Needs Assessment
Communications & Engagement Strategy Stakeholder Analysis & Engagement PlanProgramme Roles & Responsibilities Matrix Change Agent AssessmentSponsor Assessment
Communicating Change ProgrammeChange Agent AssessmentSponsor Assessment
Context SettingVisioningOrganisational Capability DiagnosticDesign CriteriaDesign Blueprint
After Action Review
Post Organisation Design Capability Diagnostic
Level of Alignment Survey
Preparing the workforce commences in the Design and Plan phase
After Action Review
Transition Project Plan
Programme Roles and Responsibilities
Detailed Design Tools: (Processes, People, Structure, Culture, Leadership)Design ProposalTransition Project Plan
Copyright Shell Organisation Effectiveness
12
Fundamental Questions
How well are you positioned to compete in the marketplace? Do you have the resources to play? Is your strategy robust? How well can your organization implement your strategy? Do your actions create the results you want?
IF NOT, YOU HAVE TO CHANGE YOUR STRATEGY, YOUR CAPABILITY, OR BOTH
13
Successful Strategy Implementation Requires:Understanding of a Company’s Building Blocks
®CCorporate Governance
Strategy
Financial Capital
Technology
Product Portfolio
Context: Business Environment, Corporate History, Competitive Landscape, Marketplace (s), Regulatory Environment
Strategic Direction
Resources
Policies, Systems and
Processes
Organization Structure
Talent Culture
Leadership
Organization CapabilityBusiness Results
Financial Return
Market Share
Share Price
Reputation
®Parlyle Consulting
14
Successful Strategy Implementation Requires:
① Dissatisfaction with the status quo ② Coalition of Leaders
Compelling case for action among a critical mass of leaders
③ Robust Strategy④ Organization Capability Gap Analysis =
portfolio of interventions Policies, Systems, Processes Organization Structure Culture Talent Leadership
⑤ Rigorous ‘Change Management’ of each ‘intervention’
Change itself People’s psychological reorientation to the change
⑥ Metrics to Know You’ve Arrived Quantitative Qualitative
Become Aware of their own dissatisfaction – so much so that they have energy to change
Paradox of Change(‘as-is’ better starting point than ‘should be’)
Move from Beginning, Middle to End of Intervention
Overcome Getting Stuck(Defense Mechanisms/Resistance)
Policies, Systems and Processes
Organization Structure
Talent Culture
Leadership
Action Steps Support Client to:
Desensitize Introjection
Projection Retroflection
Deflection Blurred Boundaries
Intellectualization
15
Polling question
1. To what extent are you involved in your organization’s strategic planning process?a) Not at allb) Somewhat involvedc) Very involved
2. How robust is your approach to secure organization capabilities?a) Not so robustb) Somewhat robustc) Very robust
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What is an Organization Capability?
BMS Definition:
• An area of collective ability required of our organization in order to successfully execute the strategy and deliver value
• Not just about people skills--tend to comprise a larger integrated system
• Not about tasks or activities• Capabilities to play...win!
“When we create a system of mutually reinforcing capabilities, we create competitive advantage”1
1”The Coherence Premium,” Paul Leinwand and Cesare Mainardi, Harvard Business Review, June 2010, 86-92
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BMS Organization Capability Framework: An iterative process
• Identify organization capabilities required of strategy
• Define what “good “looks like• Conduct
External Benchmarking
• Assess current and desired capability maturity level, and timing
• Identify actions to close gaps & timing: Organization Capability Plan
• Integrate actions into:• Workforce plan• Learning &
Development• Org Design
• Execute plan• Monitor
Performance• Refresh
regularly
ExecuteIdentify(What do we need?Where is “there”?)
Assess(Where are we
today? Where do we need to be, by
when?)
Prioritize & Action
Plan(What will we do to
get there?)
© 2013 Bristol-Myers Squibb Company
18
1
Lessons Learned
Deliberate Alignmentto Strategic Priorities
2Follow the Energy
and embed Organization Capability work in existing sponsored initiatives
Capability Planning allows the organization to deliver its strategic intent…
strategy only creates value if it’s implemented
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How will capability-building work streams translate into detailed work plans?
What will the organization need to look like in terms of structure, processes, skills and culture to achieve strategic priorities? Where are the gaps compared to today’s organization?
Define short and long-term
strategic priorities
Turning Strategy into Action
Examples of Capability Building Work Streams
Redefinition of work activities
Organizational Restructuring
Skill-Building and Alignment
Workforce Engagement
An Integrated Implementation Roadmap provides detailed information about tasks, roles, deadlines and milestones
12-18 Mo. 2-5 years
Are strategic priorities specific enough to be actionable but simple enough to be well understood?
Capability Building Work Streams are defined based on which gaps are most critical to close, considering time and resource requirements.
Current Organization
Organizational Requirements
Vs.
6 months
18 months
2 years
Reorder or modify strategic priorities?
Reorder or modify Capability Building Work
Streams
Investment
Forecasted value creation
© Bristol-Myers Squibb Company & Fisher Rock Organizational Consulting
What will it really take? What will we do? How will we get there?
21
I/O Competencies
Process Consulting & Stakeholder Engagement
Organizational Design
Team Building and
Facilitation
Talent Management
Expertise
Research Methods & Analytics
I/O Psychologists bring a wide array of competencies to the table to facilitate the right dialogue & process to achieve the business result.
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Internal and External I/O Partnership: Influence and Power Dynamics
Internals Externals
Customer Intimacy – part of the System
‘Expert’ with external perspective
Internal – External External - External
Work “up” via the hierarchy Networked in to the Top – not part of the hierarchy
Subordinate to the CEO Trusted Advisor to the CEO (safer to speak ‘truth’ to power)
Fixed Cost Variable Cost
Mutual Investment Expendable
Deep Roots in the CultureAnthropologist – external
observer with knowledge of other systems and cultures
Strategic
Operational
Tactical
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A Suite of Tools
What will we do?
Strategic Capability Alignment: Assessment and Report
Leadership Team Offsite
Team Effectiveness: Negotiation Toolbox
Decision-making Network
What will it take? Joint Business-HR
Summit Gap Visioning and
Identification ROI Assessment and
Calibration Tool
How to get there?
Work Stream Roadmap Program Governance
Architecture Roadmap Dashboard and
Processes RACI Project Plans Project Management
Office tools and processes kit
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Assessments to Calibrate Understanding and Commitment
Issue: Leadership Team Alignment to Strategy
Approach/Tool: CAP Assessment and Report
Outcomes: Assessment of Leadership Team Alignment to Strategic Priorities
AP AssessmentSample Questions
The Business Model: What concerns do you have about the potential of your business model for fueling the organization’s growth?
Current Organization Architecture: What competencies are needed by members of the organization in order to be successful? How does this fit with the current skill profile within the various units of the organization?
Current Organization Architecture: What are the requirements of the organization’s leaders to fuel growth for the organization?
Feedback for CEO: What would you like the CEO and others to learn about improving the organization’s performance that they may not already know?
What will we do?
25
Strategy Alignment and Work Streams Planning Offsite
Issues: Closing the gap between current and required capabilities, defining capability-building work streams, and justifying strategic priorities
Approach/Tool: CAP Joint HR-Business Summit Agenda
Outcomes: Capability gaps and work streams identified, an aligned understanding and confirmation of short and longer term strategic priorities
Time Agenda Item Intended Outcome Lead9:00 – 9:15 Opening Understand objectives of meeting
Agree on ground rules CEO
9:15 – 9:45 Icebreaker Get comfortable with other attendees and create open and trusting environment
I/O
9:45 – 10:45 Characteristics of high-growth organizations
Understanding of key attributes of high growth organizations
I/O
10:45 – 11:00 Break 11:00 am – 12:00 Present results of
assessments Begin to build understanding, alignment and commitment on strategic priorities. Identify large workstream buckets.
I/O
12:00– 1:30 Break
1:30 – 3:30 Workstream Planning
Small cross-functional teams draft workstream plans, which include goals, resources, and timeline
Head of HR
3:30 – 4:30 Refinement & Prioritization
Report out of workstream plan. Refinement and prioritization
4:30 – 5:00 Next Steps Planning of next steps and clarify accountabilities and resources needs
CEO
Proposed Agenda: Day 1
What will it really take?
26
Program Governance
Issue: Translating capability-building work streams into overall charter, roadmap and detailed work plans.
Approach/Tools: Program Governance Architecture
Outcomes: The structure, roles and accountabilities of senior leadership, the steering committee, the core program team and the project teams
Senior Leadership Team
Core Team
Workstream Teams
Steering Committee
Special Advisors
Strategy
Structure and Processes
Talent & Capability
Leadership & Change
Management
Project Teams
Subject Matter
Experts
How will we get there?
Governance Architecture