project report

profileboomshaka
Lectureppt.ppt

SWOT

*

6 Key Elements of a Strategic Plan

11


Actions

Initiatives

Vision

Strategy

Mission

Objectives

What do we want to be?

(in relation to our strategy) .

How we will get there?

What we will achieve?

What we need to change in order to “get there”?

What steps will we take and who is accountable?

What, Where, How?

*

Types of Business Strategy

*

How is a firm competing with its rivals for customer’s business?

Cost Leadership

Differentiation

Focus Cost Leadership

Focus Differentiation

Integrated Cost / Differentiation

Broad Target

Narrow Target

Competitive Scope

Cost

Uniqueness

Competitive Advantage

*

Types of Business Strategy

  • Achieving lower overall costs than rivals
  • Performing activities differently (drive down

costs and focus on efficiency)

  • Possessing the capability to differentiate the firm’s product or service and command a premium price
  • Performing different (valuable) activities
  • Meeting the unique needs of customers

*

  • Broad Scope
  • The firm competes in many customer segments
  • General needs
  • Narrow Scope
  • The firm selects a segment or group of segments in the industry and tailors its strategy to serving them at the exclusion of others
  • Specific needs

Types of Business Strategy

*

Strategic Intent

*

Miles and Snow Typology

Reactor

Little consideration of environment; drift with little concern for strategy

Prospector

Stress innovation and growth; seek new opportunities

Analyzer

Stress maintenance

of status quo with moderate innovation and growth

Defender

Stress stability, conservatism, and maintenance of status quo

Dynamic, growing

environment

characterized

by high uncertainty

and risk

Moderately stable

environment with

some uncertainty

and risk

Very stable

environment with

little uncertainty

and risk

*

*

Pre-Reading: Blue Ocean Strategy

  • Red Ocean Strategy
  • Compete in existing market space
  • Beat the competition
  • Exploit existing demand
  • Make the value-cost trade-off

Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost

  • Blue Ocean Strategy
  • Create uncontested market space
  • Make the competition irrelevant
  • Create and capture new demand
  • Break the value-cost trade-off

Align the whole system of a firm’s activities in pursuit of differentiation and low cost

Achieving Strategy Alignment

*

Value

Proposition

The utility buyers receive from an offering minus the price they pay for it

Profit

Proposition

The revenue an organization generates from an offering minus the cost to produce and deliver it

People

Proposition

The positive motivations and incentives put in place for people needed to support and implement the strategy

Structuralist Approach

The alignment of the three strategy propositions in pursuit of Either differentiation or low cost

Reconstructionist Approach

The alignment of the three strategy propositions in pursuit of Both differentiation and low cost

W.C. Kim and R. Mauborgne, HBR, 2009

*

SWOT ANALYSIS

*

External and Internal Analysis

By studying the external environment, firms identify:


What they MIGHT choose to do

By studying the internal environment, firms identify:


What they CAN do

Examine opportunities and threats by analyzing:

General Environment

Industry Environment

Competitive Environment

Examine strengths and weaknesses by understanding:

Resources,

Capabilities,

Core Competencies

*

The External Environment

*

Industry Environment

Competitor Environment

Demographic Environment

Political/Legal Environment

Technological Environment

Global Environment

Sociocultural Environment

Economic Environment

*

Porter’s Five Forces of Competition

*

Threat of

New Entrants

Bargaining Power

of Buyers

Threat of

Substitute Products

Bargaining Power

of Suppliers

Rivalry among

competing firms

Organization

*

Five Forces of Competition

*

Threat of New Entrants (Barriers to entry): Economies of Scale, Product Differentiation, Capital requirements, Switching Costs, Access to Distribution Channels, Cost Disadvantages independent of scale, Government Policy, Expected Retaliation
Bargaining power of suppliers increases when: Suppliers are large and few in number, Suitable substitute products are not available, Individual buyers are not large customers of suppliers and there are many of them, Suppliers’ goods are critical to buyers’ marketplace success, Suppliers products create high switching costs, Suppliers pose a threat to integrate forward into buyers’ industry
Bargaining power of Buyers increases when: Buyers are large and few in number, Buyers purchase a large portion of an industry’s total output, Buyers’ purchases are a significant portion of a supplier’s annual revenues, Buyers can switch to another products without incurring high switching costs, Industry’s products are undifferentiated or standardized, Buyers pose a threat to integrate backwards into sellers’ industry
Threat of Substitute Products increases when: Buyers face few switching costs, The substitute product’s price is lower, Substitute product’s quality and performance are equal to or greater than the existing product
Intensity of Rivalry among competitors increases when: There are numerous or equally balanced competitors, Industry growth slows or declines, There are high fixed costs or high storage costs, There is a lack of differentiation opportunities or low switching costs, When the strategic stakes are high, When high exist barriers prevent competitors from leaving the industry

*

*

The value of the product to customers

The intensity of competition

Relative bargaining power at different levels within the value chain

3 key influences:

The Determinants of Industry Profitability

*

5

Internal Analysis

Internally, firms need to understand their strengths and weaknesses. These generally stem from resources, capabilities, and core competencies.

Resources – tangible (e.g., financial, operational) as well as intangible assets (e.g., intellectual capital, reputation)

Capabilities – organizational processes that enable the attainment of task and functional outcomes. Often associated with functional areas.

Core Competencies – resources and capabilities that produce a firm’s sustainable competitive advantage.

*

Internal Analysis - Resources

  • Firm assets
  • Inputs into a firm’s production process
  • Both tangible and intangible resources

Tangible resources are:

Resources

Core Competencies

Capabilities

Financial Ability to raise capital and fund operations
Organizational Formal reporting structure, formal planning, controlling, and coordinating systems
Physical Sophistication and location of facilities and equipment
Technological Stock of technology such as patents, trademarks, copyrights, trade secrets

*

Internal Analysis - Resources

*

  • Firm assets
  • Inputs into a firm’s production process
  • Both tangible and intangible resources

Intangible resources are:

Resources

Core Competencies

Capabilities

Human Knowledge, intellectual capital, trust, managerial capabilities, organizational routines
Innovation Ideas, scientific capabilities, capacity to innovate
Reputational Reputation with customers, brand name, perceptions about product quality, durability, and reliability, reputation with suppliers, etc.

*

Internal Analysis - Capabilities

*

  • Firm’s capacity to deploy resources

  • Emerge over time through interactions

among tangible and intangible resources

  • Often based on developing, carrying, and

exchanging information and knowledge

through human capital.

  • Often developed in a specific functional areas

or as part of a functional area.

Resources

Core Competencies

Capabilities

*

Internal Analysis – Core Competencies

*

Resources

Core Competencies

Capabilities

Core Competencies must meet four criteria

to create a sustainable competitive advantage:

Valuable Help a firm neutralize threats or exploit opportunities
Rare Are not possessed by many others
Costly to Imitate Historical – unique and valuable organizational culture or brand name Ambiguous – the cases and uses of a competence are unclear Social complexity – interpersonal relationships, trust, friendship among managers, suppliers, and customers
Nonsubstitutable No strategic equivalent

*

The Resource-Based View of the Firm

  • Core Competency: a resource or capability that sets an organization apart from its competitors and has potential to lead to a sustainable competitive advantage (SCA)
  • able competitive advantage (SCA)?
  • What makes a resource or capability a core competency (i.e., what causes it to be a source of SCA)?

Four criteria: VRIO

  • Valuable
  • Rare
  • Not easily Imitated (or substituted)
  • Organized to capture value (i.e. the firm is organized to capture value from the resource)

V R I O

  • Value: Resources that help improve quality, innovation, efficiency, effectiveness, leverage opportunities in external environment, avoid threats in the external environment…
  • Rareness: Resources not possessed by large numbers of competitors or potentially competing firms are sources of sustained competitive advantage.

Can apply to a single resource,

Can apply to a unique bundle of resources (i.e., physical capital, human capital, and organizational capital)

V R I O

  • Imperfectly Imitable Resources: Valuable and rare resources can only be sources of sustained competitive advantage if firms that do not possess these resources cannot obtain them. Three means by which this happens:

(1) Unique Historical Conditions – a firm’s ability to acquire and exploit some resources may depend on their place in time and space, e.g., circumstances of firm’s founding or history, development of resource (or combination of resources over time), etc.

(2) Causal Ambiguity – when the link between the resources controlled by a firm and comp. advantage are not well understood. Lack of understanding leads to difficulty for duplication or imitation.

(3) Social Complexity – resources are embedded in complex social

relations, e.g., Interpersonal relations among managers, organizational culture, reputation among suppliers

V R I O

  • Substitutability: There must be no strategically equivalent resource through which a competitor can achieve the same outcome
  • Competitors may be able to imitate another firm’s advantage through substituting either:

Similar resources – e.g., developing an equivalently strong top management team or R&D group, etc.

Very different resources – using technological advances to achieve an equivalent ability provide customer service

V R I O

  • Organized to Capture Value: For a resource to lead to a competitive advantage, an organization’s structure, coordinating systems, and strategic priorities must be aligned to capture the value a resource offers.

Company Examples of Core Competencies & Applications

4-*

*

Internal Analysis – Core Competencies

Is it valuable? Is it Rare? Is it costly to imitate? Is it Non-substitutable Competitive Consequences Performance Implications
NO NO NO NO Comp Disadvantage Below-average Returns
YES NO NO YES/NO Comp. Parity Average Returns
YES YES NO YES/NO Temporary Comp. Advantage Average to above average Returns
YES YES YES YES Sustainable Comp. Advantage Above Average Returns

*

What is an “A” position?

  • Position that generates a firm’s core competencies;
  • A critical position within a firm’s strategic capability;
  • A position that has a direct impact on the firm’s strategy success (impacts the firm’s success with customers) and creates wealth for the firm;
  • Mistakes and opportunity costs can be very expensive;
  • Usually a position where the external labor market is in short supply;
  • Poor performance is immediately detected;
  • A position that requires professional expertise, as well as extensive knowledge of the firm;
  • Can exist at any level throughout the business
  • What are your company’s A positions?


What, historically, have been Apple’s competitive advantages?

  • Ease of use (user-friendly graphical interface; plug-and-play peripherals)
  • Proprietary environments (especially with its operating system)
  • Industrial design (clever, innovative, appealing design and packaging)
  • Strong brand / Customer loyalty
  • Ecosystem of complements (apps, music, videos, etc.)
  • Economies of scale (e.g., one of the largest purchasers of flash memory in the world)
  • Economies of scope (e.g., the ability to cross-sell iPhones. iPads, and Macs) through Apple stores

*


How sustainable is Apple’s competitive position in smartphones?

Positives:

  • Expanding ecosystem
  • Buyer loyalty
  • Competitive prices on older models

Challenges:

  • Declining differentiation
  • Increased competition
  • Rapidly falling prices
  • Fashion fad?

*


Discussion Question

Why did Apple struggle historically in PCs?

*

Broader Lessons from Apple

  • Big difference between having a product advantage and having a competitive advantage. Product advantages are difficult to sustain.
  • Companies must have a deep understanding of the driving forces within their industries
  • Timing is everything
  • Innovation is key to creating sustainable competitive advantage

*

Mapping Human Capital and A Positions

*

Managing Human Capital Effectively requires Internal and External Alignment

Work Environment

Competency

Management

Behavior

Management

External Environment

Globalization, Gov’t, Responding to the Market

Internal Environment: Strategy, Culture, etc.

Competitive

Advantage

Employee

Outcomes

*

Bill Castellano, Ph.D., Rutgers University

*

Internal Alignment

*

Work Environment

Attitudes and Behaviors

Employee Competencies

Job Design

Organizational Structure

Participation / Empowerment

Recruitment, Selection, Training & Development

Incentives and Rewards

Performance evaluation and Appraisal

Compensation

An HR system is directly concerned with how all the practices fit together – their alignment…

*

What’s Happening in Firms Today?

Industry Changes

  • Globalization
  • Information technology

Need for…

  • Organizational agility
  • Speed
  • Innovation
  • Cost
  • Knowledge-based strategies
  • Core competencies
  • Strategic capability
  • External partnerships

Leading to…

New Business Equation

*

Bill Castellano, Ph.D., Rutgers University

Focus on:

Core

Competencies

Network

Structures

Intellectual

Capital

Partners &

Contractors

What are your company’s core competencies?

What do your customers value? How do you create that value?

What sets your company apart from your current and potential rivals in delivering that value?

What is your company’s strategy? How do you translate your core competencies into company success?

*

Bill Castellano, Ph.D., Rutgers University

Focus on:

Core

Competencies

Network

Structures

Intellectual

Capital

Partners &

Contractors

Managing Human Capital

  • What are the key skill areas that support your company’s core competence?
  • Contribution to customer value
  • Firm-specific or unique (market)
  • Do you know which employees contribute toward your core competence?
  • What are your other employees doing to help realize a competitive advantage?

*

Bill Castellano, Ph.D., Rutgers University

Focus on:

Core

Competencies

Network

Structures

Intellectual

Capital

Partners &

Contractors

B

C

D

A

Low STATEGIC VALUE high

Low UNIQUE high

Mapping Human Capital

*

*

Mapping Human Capital

Related to how valuable or unique the work is, based on:

Strategic Value:

  • Degree the work directly contributes to important work group or organizational goals
  • Degree to which the work contributes to a firm’s competitive advantage or core competencies

Uniqueness:

  • Degree to which it is rare and not readily available in the labor market
  • Degree to which it is specialized or is idiosyncratic to a particular firm

*

EXERCISE – Map out your workforce

Business Strategy _______________________________________________________
Employee Group How do they add value? (operational excellence, innovation, customer relations, etc.) How much value added? How much uniqueness?
Manufacturing 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
R&D 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
IT 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Supply Chain 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Legal 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Marketing 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
HR 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Customer Service 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Sales 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Finance 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Logistics 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Engineering 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Other: ________ 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Other: ________ 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10

What is an “A” position?

  • Position that generates a firm’s core competencies;
  • A critical position within a firm’s strategic capability;
  • A position that has a direct impact on the firm’s strategy success (impacts the firm’s success with customers) and creates wealth for the firm;
  • Mistakes and opportunity costs can be very expensive;
  • Usually a position where the external labor market is in short supply;
  • Poor performance is immediately detected;
  • A position that requires professional expertise, as well as extensive knowledge of the firm;
  • Can exist at any level throughout the business

Wealth Creation

Strategic Value

High

-$

$$$

0

“C”
Positions

“B” Positions

“A” Positions

Low

Median

Median

Median

Its Not Just the Mean….

But Also the Variance!

Company Examples of Core Competencies & Applications

4-*

*

*

B

C

D

A

R&D

Sales

HR

Diagnostics

Low VALUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

TMT

Core

*

Bill Castellano, Ph.D., Rutgers University

*

B

C

D

A

R&D

Sales

HR

Diagnostics

Customer

Service

Low VALUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

MIS

Laboratory

Services

Fin

Quality

TMT

Core

Compulsory

*

Bill Castellano, Ph.D., Rutgers University

*

B

C

D

A

R&D

Sales

HR

Diagnostics

Customer

Service

Low VALUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

MIS

Laboratory

Services

Fin

Quality

TMT

Core

Compulsory

*

Bill Castellano, Ph.D., Rutgers University

Manufacturing

Operations

Distribution

Ancillary

*

B

C

D

A

R&D

Sales

HR

Diagnostics

Customer

Service

Low VALUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

MIS

Laboratory

Services

Fin

Quality

TMT

Core

Compulsory

*

Bill Castellano, Ph.D., Rutgers University

Manufacturing

Operations

Distribution

Legal Counsel

Ancillary

Idiosyncratic

*

An Architectural Perspective

  • If people contribute in different ways to the strategic advantage of a firm, then…

…do employment modes differ?

…do employment relationships differ?

…do HR practices differ?

  • An architectural approach stands in opposition to a universalistic “best practices” approach.

*

Bill Castellano, Ph.D., Rutgers University

R&D

Manufacturing/

Operations

Distribution

Sales

Sales

TMT

Cust

Serv

HR

R&D

Rapids

Fin

Customer

Service

Mfg

R&D

R&D

Partners

Low VALUE high

Low UNIQUE high

Rapids

HR

Legal

MIS

Biologicals

Fin

Quality

TMT

Core

Compulsory

Idiosyncratic

Ancillary

R&D

Partners

R&D

Partners

R&D

Partners

R&D

Partners

Lepak and Snell (1999, 2002, 2002). Different skill groups have different employment arrangements and different HR configurations. The integration of these different skill groups remains an issue for research. The focus is on relationship development, knowledge creation, transfer, and integration. HR practices are the principle levers we are looking at in this study.

An Architectural Perspective

External
Employment

Internal
Employment

Low Strategic Value

High Strategic Value

Strategic value of employee skills: Makes a significant contribution to customer value through increased:

  • efficiency
  • creativity and innovation
  • quality
  • customer responsiveness
  • etc.

*

Bill Castellano, Ph.D., Rutgers University

An Architectural Perspective

Relational

Employment
Relationship

Transactional

Employment
Relationship

High Uniqueness

Low Uniqueness

Uniqueness of employee skills: Difficult for competitors to imitate and are competitively unique due to:

Firm specific application of abilities

Not readily available in the marketplace

*

Bill Castellano, Ph.D., Rutgers University

low Strategic Value high

Relational

Transactional

Internalization

Externalization

Knowledge Work

  • HR: Commitment-based

- staff based on potential

- develop (firm-specific)

- extensive pay & benefits

- autonomy/self-direction

Strategic Partnerships

  • HR: Collaborative-based

- select on past experience

- develop the relationship

- evolving scope

- rewards for ideas

Traditional Jobs

  • HR: Productivity-based

- staff based on current skill

- less development

- market wage

- focus on ST performance

Contract Work

  • HR: Compliance-based

- standardize/simple (outsource)

- focus on rules & procedures

- narrow scope

- error avoiding

- hourly pay

The Human Resource Architecture

low Uniqueness high

*

Bill Castellano, Ph.D., Rutgers University

*

R&D

Manufacturing/

Operations

Distribution

Sales

Sales

TMT

Cust

Serv

HR

R&D

Rapids

Fin

Customer

Service

Mfg

R&D

R&D

Partners

Low VALUE high

Low UNIQUE high

Rapids

HR

Legal

MIS

Biologicals

Fin

Quality

TMT

Core

Compulsory

Idiosyncratic

Ancillary

R&D

Partners

R&D

Partners

R&D

Partners

R&D

Partners

Lepak and Snell (1999, 2002, 2002). Different skill groups have different employment arrangements and different HR configurations. The integration of these different skill groups remains an issue for research. The focus is on relationship development, knowledge creation, transfer, and integration. HR practices are the principle levers we are looking at in this study.

HR and strategic implementation

Competitive Advantage

Each Employee Group has (or needs) a unique HR system…

Employee

Group A

Employee

Group C

Employee

Group B

Using the right HR system for each employee group maximizes their potential contribution to competitive advantage

Rewards

Appraisal

Development

Staffing

Job Design

  • enriched & empowered
  • customized
  • sophisticated recruiting and selection
  • aptitude (or able to learn)
  • promote from within
  • high-investment, continuous
  • firm-specific
  • focus on strategic contribution
  • developmental
  • external equity (high wages)
  • pay for knowledge, experience,
    high variance incentive pay based on

strategic objectives

  • equity ownership and perks

COMMITMENT-BASED HRM SYSTEM

Core Human Capital

Employment Mode: knowledge work

Employment Relationship: organization-focused

*

B

C

D

A

R&D

Sales

TMT

HR

Diagnostics

Fin

Mfg

R&D

Low VALUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

MIS

TMT

Core

Rewards

Appraisal

Development

Staffing

Job Design

  • clearly defined
  • moderately empowered
  • external recruitment
  • achievement
  • limited to firm-specific
  • short-term focus
  • developmental
  • focus on performance
  • external equity (market rate)
  • pay for performance

PRODUCTIVITY-BASED HRM SYSTEM

Employment Mode: traditional job

Employment Relationship: job focused

Compulsory Human Capital

*

Bill Castellano, Ph.D., Rutgers University

B

C

D

A

R&D

Sales

Sales

TMT

HR

R&D

Diagnostics

Fin

Customer

Service

Mfg

R&D

Low VALUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

MIS

Laboratory

Services

Fin

Quality

TMT

Core

Compulsory

Rewards

Appraisal

Development

Staffing

Job Design

  • well-defined
  • limited scope
  • outsourced (perhaps)
  • contract for a specific task
  • limited to rules & procedures
  • administrative
  • hourly or contract-contingent

COMPLIANCE-BASED HRM SYSTEM

Employment Mode: contract work

Employment Relationship: transactional

Ancillary Human Capital

*

Bill Castellano, Ph.D., Rutgers University

B

C

D

A

R&D

Manufacturing

Operations

Distribution

Sales

Sales

TMT

HR

R&D

Diagnostics

Fin

Customer

Service

Mfg

R&D

Low VALUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

MIS

Laboratory

Services

Fin

Quality

TMT

Core

Compulsory

Ancillary

Customer

Service

Rewards

Appraisal

Development

Staffing

Job Design

  • team-based
  • enriched & autonomous
  • ability to collaborate
  • achievement
  • continuous on-the-job
  • firm-specific
  • team-oriented
  • goal accomplishment
  • group-based incentives
  • contract, salary, pay-for-
    knowledge

COLLABORATIVE HRM SYSTEM

Employment Mode: partnership

Employment Relationship: collaborative

Idiosyncratic Human Capital

*

Bill Castellano, Ph.D., Rutgers University

B

C

D

A

R&D

Manufacturing

Operations

Distribution

Sales

Sales

TMT

HR

R&D

Diagnostics

Fin

Customer

Service

Mfg

R&D

R&D

Partners

Low VALUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

HR

Legal

MIS

Laboratory

Services

Fin

Quality

TMT

Core

Compulsory

Idiosyncratic

Ancillary

Customer

Service

Diagnostics

R&D

Partners

R&D

Partners

R&D

Partners

R&D

Partners

Discussion

Strategic human resource

Management

Best practice? - Does one size

fit all?

A new mind-set - managing skills and
contributions versus managing jobs

An architectural perspective

  • Balancing and leveraging employment options.
  • Which combinations are best?

*

Bill Castellano, Ph.D., Rutgers University

B

C

D

A

R&D

Manufacturing

Operations

Distribution

Sales

Sales

TMT

HR

R&D

Diagnostics

Fin

Customer

Service

Mfg

R&D

R&D

Partners

Low VALUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

HR

Legal

MIS

Laboratory

Services

Fin

Quality

TMT

Core

Compulsory

Idiosyncratic

Ancillary

Customer

Service

Diagnostics

R&D

Partners

R&D

Partners

R&D

Partners

R&D

Partners

Discussion

Core Competence &

Competitive Advantage

Strategic value - How do we

create value for customers?

Uniqueness - What is our

source of differentiation?

Extendibility – how do we leverage skills to create future value?

Firm Performance - Efficiency and effectiveness

*

Bill Castellano, Ph.D., Rutgers University

*

B

C

D

A

R&D

Manufacturing

Operations

Distribution

Sales

Sales

TMT

HR

R&D

Diagnostics

Fin

Customer

Service

Mfg

R&D

R&D

Partners

Low VALUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

HR

Legal

MIS

Laboratory

Services

Fin

Quality

TMT

Core

Compulsory

Idiosyncratic

Ancillary

Customer

Service

Diagnostics

R&D

Partners

R&D

Partners

R&D

Partners

R&D

Partners

*

II. HR Objectives

Designing an HR System: Objectives

Managing Competencies

  • Objectives: What competencies are needed in “A positions” for sustainable competitive advantage? Indicate the specific SKAs you need. Indicate whether you plan to –Buy, Make/Develop, Acquire, Divest – Indicate Where? Why?

Managing Behaviors

  • Objectives: What specific behaviors and mindset do you need these employees to demonstrate? Why?

Managing Work Environment

  • Objectives: What are your goals for job and organizational design - to promote efficiencies, innovation, risk management, solutions, teamwork, etc. Why?

*

Designing an HR System: Objectives

Organizational Culture

  • Objectives: What type of culture aligns with your corporate strategy? What behaviors and mindset should be developed? Why?

Leadership

  • Objectives: What type of leadership style and characteristics are best to lead this company? Why?

*

*

Strategic Choice and People “Fit”

Operational Excellence

— Cost —

Product Leadership

— Innovation—

Customer Intimacy

—Solutions —

Core Workforce Mindset

• Identifies with process

• Trainable/can learn

• Follow the Battle Plan

• Dedicated to organization

• Shorter-term focus

• Avoid waste and cost

• Driven by incremental improvement

• High concern for output quantity

• High concern for process

• High comfort with stability

• Lower level of risk-taking

• Identifies with, values and is humbled by the discovery process

• Challenges the possible/the status quo

• Anti-bureaucratic

• Longer-term focus

• Versatile

• Driven by learning

• Higher concern for outcomes

• High tolerance for ambiguity

• Greater degree of risk-taking

• Identifies with customers

• Shares “secrets” readily, easily

• Seeks customer intelligence

• Adaptable/flexible

• Makes customer results happen

• Quick study

• Driven by customer success

• Anticipates customer needs

• Not: Free spirits/ostentatious

NOT: Structured/streamlined

NOT: Clones

Typical Behaviors

• Teamwork

• Working to fit in/find a role

• Relatively repetitive and predictable behaviors

• Primarily individual activity as part of process

• Problem solving

· Challenging one another

• Cross-functional collaboration

• High degree of creative behavior

• Share ideas and solutions

• Thinks/works across boundaries

• Develops broad-based skills

• Networks effectively

• Customer management

Examples

Federal Express, Dell, Nucor, Wal-Mart, UPS

Sony, Glaxo, Merck, 3M, Intel, Nike, Microsoft

Four Seasons, Airborne, Roadway, Home Depot, Cott, Cable & Wireless


Managing Competencies Objectives

  • Objectives: What competencies are needed in “A positions” for sustainable competitive advantage? Indicate the specific SKAs you need. Indicate whether you plan to –Buy, Make/Develop, Acquire, Divest – Indicate Where? Why?

Examples:

  • We need top R&D scientists specializing in cancer research. Need PhD and experience in both academic and commercial research. Need both theoretical and practical knowledge. Proven track record of innovation and groundbreaking research is a must. Given the limited availability of individuals with these unique competencies, will target noted universities and key competitors. Will consider targeting specialized R&D companies for potential acquisition. Focus will be globally.

*


Managing Behaviors

  • Objectives: What specific behaviors and mindset do you need these employees to demonstrate? Why?

Given the importance of collaboration and the interdisciplinary nature of this work, employees need to demonstrate the following behaviors:

  • Highly collaborative.
  • Willing to exchange knowledge with team members
  • Very precise and have a keen attention to detail
  • Able to focus on quality control
  • Comfortable working long hours

*


Managing Work Environment

  • Objectives: What are your goals for job and organizational design - to promote efficiencies, innovation, risk management, solutions, teamwork, etc. Why?

Given the need to promote innovation and collaboration:

  • Our R&D scientists must have freedom to determine how their work is to be done.
  • Need to work in a team-based environment
  • Operate in a cross-functional structure

*

*

III. HR Practices

*

low Strategic Value high

Relational

Transactional

Internalization

Externalization

Knowledge Work

  • HR: Commitment-based

- staff based on potential

- develop (firm-specific)

- extensive pay & benefits

- autonomy/self-direction

Strategic Partnerships

  • HR: Collaborative-based

- select on past experience

- develop the relationship

- evolving scope

- rewards for ideas

Traditional Jobs

  • HR: Productivity-based

- staff based on current skill

- less development

- market wage

- focus on ST performance

Contract Work

  • HR: Compliance-based

- standardize/simple (outsource)

- focus on rules & procedures

- narrow scope

- error avoiding

- hourly pay

The Human Resource Architecture

low Uniqueness high

*

Bill Castellano, Ph.D., Rutgers University

*

R&D

Manufacturing/

Operations

Distribution

Sales

Sales

TMT

Cust

Serv

HR

R&D

Rapids

Fin

Customer

Service

Mfg

R&D

R&D

Partners

Low VALUE high

Low UNIQUE high

Rapids

HR

Legal

MIS

Biologicals

Fin

Quality

TMT

Core

Compulsory

Idiosyncratic

Ancillary

R&D

Partners

R&D

Partners

R&D

Partners

R&D

Partners

Lepak and Snell (1999, 2002, 2002). Different skill groups have different employment arrangements and different HR configurations. The integration of these different skill groups remains an issue for research. The focus is on relationship development, knowledge creation, transfer, and integration. HR practices are the principle levers we are looking at in this study.

Rewards

Appraisal

Development

Staffing

Job Design

  • enriched & empowered
  • customized
  • sophisticated recruiting and selection
  • aptitude (or able to learn)
  • promote from within
  • high-investment, continuous
  • firm-specific
  • focus on strategic contribution
  • developmental
  • external equity (high wages)
  • pay for knowledge, experience,
    high variance incentive pay based on

strategic objectives

  • equity ownership and perks

COMMITMENT-BASED HRM SYSTEM

Core Human Capital

Employment Mode: knowledge work

Employment Relationship: organization-focused

*

B

C

D

A

R&D

Sales

TMT

HR

Diagnostics

Fin

Mfg

R&D

Low VALUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

MIS

TMT

Core

Strategic choices and HR alignment
Work Design Selection Training / Development Rewards Performance Management Communication
Processes Job design Org Design Hire, Move, Exit Orientation, Current job, future job, career management Attitudes, behaviors, consequences, reward levels Culture, Expectations, Evaluation, Feedback, Strategy, mindsets, status
Operational Excellence
Product Leadership
Customer Intimacy

Strategic choices and HR alignment
Work/Org. Design Recruiting/ Selection Training / Development Compensation Performance Management Communication
Processes Job design Org Design Hire, Move, Exit Orientation, Current job, future job, career management Attitudes, behaviors, consequences, reward levels Culture, Expectations, Evaluation, Feedback, Strategy, mindsets, status
Operational Excellence Standardized/ Strict Policies and Procedure oriented Centralized / Controlled Basic Education – (quant, verbal, written, oral) Process Skills Passive learners Focus on compliance with rules, regulations Predictable career ladder Team productivity awards Gain sharing tied to Cost savings Performance-based pay Process Total Costs, Errors, Abandoned Calls, Net sales/head count, speed / deadlines met Encourage process improvements Productivity improvement feedback
Product Leadership Complex / Increased autonomy High discretion/decision making Cross functional Technical , Outside the box creative thinkers, Applied Competencies Active Learners Highly interactive Employee involvement in learning Mandatory skill development Team incentives % sales from new products, Margins, New Sales Growth, Competency based pay Collaboration New Ideas Innovation awards/Industry accolades, Copyrights Patents Anti-bureaucratic, Feedback on products/services
Customer Intimacy Quality control Teams Flexible / Coordinated Resourcefulness, active learners, Adaptability Helpfulness Relationships Management Customer Support Customer satisfaction/ retention Market share Responsiveness Knowledge sharing Customer Retention New Customers / referrals Processes for success Line of sight.

Designing an HR System: Practices

Managing Competencies

What competencies are needed? How to acquire?

Recruit- what sources (top universities, search firms, etc.), employee referrals, how, who is involved

Select – based on what criteria, what methods, who is involved

Succession Management Program – how to identify talent, how to assess and select, what criteria, what kind of developmental programs

T&D – competency model, what methods, who is involved

Acquire – what external competencies may be needed either now or in the future - M&A, strategic partnership, where, how to integrate. Will there be a need to restructure – eliminate obsolete functions, redeploy, why

Describe specifically how you will design these practices – Why? How? What criteria?, What methods?, Who will be involved?, How to process?

*

Designing an HR System: Practices

Managing Behaviors

What behaviors do you want to reinforce? How will you motivate employees?

PM System - Describe your measurable goals and targets: must have variance, how to measure / evaluate, what methods, how to provide feedback etc. Why?

Compensation - How will you incentivize these behaviors? Describe the specific components of compensation: base pay, incentive based on what, how to structure: must have variance, ST: cash bonus, profit sharing; versus LT pay: stock options/equity; what type of benefits. Why?

*

Designing an HR System: Practices

Managing Work Environment

  • Job Design – how will these jobs be designed? Degree of standardization/complexity, autonomy, decision making authority, degree of interdependencies – Why?
  • Organizational Structure – what will be the structure of the organization of these positions? Reporting relationships, hierarchical, flat, cross-functional, networked? Based on what – product, region, function, etc. What?

*

Designing an HR System: Practices

Organizational Culture

  • Practices: How/Which HR practices support this culture? Why?

Leadership

  • Practices: How will you find and/or develop leaders. What specific practices? Why?

*

IV. Organizational Culture and Leadership

*

What Is Organizational Culture?

Characteristics:

  • Innovation and risk taking
  • Attention to detail
  • Outcome orientation
  • People orientation
  • Team orientation
  • Aggressiveness
  • Stability

Organizational Culture

A common perception held by the organization’s members; a system of shared meaning.

*

Organizational Culture

*

  • Assumptions, values and beliefs of a company that affect how employees behave
  • Informal or unwritten
  • Observed in how employees talk to one another
  • Seen in employees’ interaction with customers

  • Bureaucratic cultures value rules, formalization, hierarchy
  • Entrepreneurial cultures value creativity, knowledge exchange, innovation
  • Other cultures value competition, teamwork, cooperation, fun

What Do Cultures Do?

Culture’s Functions:

  • Defines the boundary between one organization and others.
  • Conveys a sense of identity for its members.
  • Facilitates the generation of commitment to something larger than self-interest.
  • Enhances the stability of the social system.
  • Serves as a sense-making and control mechanism for fitting employees in the organization.

*

What Do Cultures Do?

Culture as a Liability:

  • Barrier to change
  • Barrier to diversity
  • Barrier to acquisitions and mergers

*

How Culture Begins

  • Founders hire and keep only employees who think and feel the same way they do.
  • Founders indoctrinate and socialize these employees to their way of thinking and feeling.
  • The founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.

*

Creating Culture

*

  • Values
  • What you stand for
  • What you communicate
  • Behaviors
  • How leaders and managers act
  • How decisions are made
  • How employees are treated

*

How Organization Cultures Form

*

50.bin

Shaping Organizational Culture – HR Practices

  • Who you hire – your selection criteria
  • What competencies are developed
  • What behaviors do you motivate
  • What you measure – how are employees are evaluated

What is rewarded: individual bonuses versus team bonus, etc.

  • How are jobs/organization designed – how much autonomy and involvement, team versus individual tasks

How decision's are made – top down, bottom up

Formal versus informal dress/work environment

  • How do you select and develop leaders – what leadership characteristics

ASA Model – Attraction – Selection - Attrition

*

How Organizational Cultures Form
ASA Model

Similar people are Attracted to the organization

Hiring managers Select people

who look and act like other employees

The Attrition rate for people

who don’t fit in is high.

Keeping Culture Alive

  • Selection
  • Concern with how well the candidates will fit into the organization.
  • Provides information to candidates about the organization.
  • Top Management
  • Senior executives help establish behavioral norms that are adopted by the organization.
  • Socialization
  • The process that helps new employees adapt to the organization’s culture.

*

*

LOOSE

TIGHT

INTERNAL

EXTERNAL

5

4

3

2

1

1

2

3

4

5

5

4

3

2

2

3

4

5

PL

OE

CI

What is the cultural focus of your organization?

*

Types of Organizational Cultures

Adaptability Culture

  • Characterized by values that support the organization’s ability to interpret and translate signals from the environment into new behavior responses
  • Employees make decisions and act freely to meet needs
  • Responsiveness to customers is highly valued
  • Leaders create change by encouraging creativity, experimentation, and risk taking

*

Achievement Culture

  • Characterized by a clear vision of the organization’s goals and leaders’ focus on the achievement of specific targets
  • Results-oriented culture that values:
  • Competitiveness to get it right
  • Diligence ensuring quality
  • Personal initiative to meet customer needs
  • Willingness to work long and hard

*

Involvement Culture

  • Has an internal focus on the involvement and participation of employees
  • Places value on meeting the needs of organization members
  • Leaders:
  • Emphasize cooperation, consideration, and fairness
  • Avoid status differences

*

Consistency Culture

  • Has an internal focus and consistency orientation for a stable environment
  • Supports a methodical, rational, orderly way of doing business
  • Following the rules and being thrifty are valued
  • Focus on efficiency

*

Workforce Mindset

*

The Hearts and Minds of the Workforce

Wal-Mart

Intel

Pfizer/Merck

Accenture

Fast

Inexpensive

Convenient

Best

Fastest

Easiest

“Sure cure”

Safe/Reliable

Worth the price

Problem solver

Customizer

Leverage competitive advantage

Operational Excellence

Product Leadership

Customer Intimacy

*

Strategic Choice and People “Fit”

Operational Excellence

— Cost —

Product Leadership

— Innovation—

Customer Intimacy

—Solutions —

Core Workforce Mindset

• Identifies with process

• Trainable/can learn

• Follow the Battle Plan

• Dedicated to organization

• Shorter-term focus

• Avoid waste and cost

• Driven by incremental improvement

• High concern for output quantity

• High concern for process

• High comfort with stability

• Lower level of risk-taking

• Identifies with, values and is humbled by the discovery process

• Challenges the possible/the status quo

• Anti-bureaucratic

• Longer-term focus

• Versatile

• Driven by learning

• Higher concern for outcomes

• High tolerance for ambiguity

• Greater degree of risk-taking

• Identifies with customers

• Shares “secrets” readily, easily

• Seeks customer intelligence

• Adaptable/flexible

• Makes customer results happen

• Quick study

• Driven by customer success

• Anticipates customer needs

• Not: Free spirits/ostentatious

NOT: Structured/streamlined

NOT: Clones

Typical Behaviors

• Teamwork

• Working to fit in/find a role

• Relatively repetitive and predictable behaviors

• Primarily individual activity as part of process

• Problem solving

· Challenging one another

• Cross-functional collaboration

• High degree of creative behavior

• Share ideas and solutions

• Thinks/works across boundaries

• Develops broad-based skills

• Networks effectively

• Customer management

Examples

Federal Express, Dell, Nucor, Wal-Mart, UPS

Sony, Glaxo, Merck, 3M, Intel, Nike, Microsoft

Four Seasons, Airborne, Roadway, Home Depot, Cott, Cable & Wireless

Strong versus Weak Culture

Symbolizes a complete agreement or shared mind-set on key values and norms, with leaders playing a key role.

Symbolizes a lack of agreement or shared mind-set on key values and norms.

*

Weak cultures are generally associated with low performance.

There is a low degree of fit between strategy and an organization’s culture.

Characteristics of Weak (Low) Performing Cultures

Characteristics of Strong (High) Performing Cultures

*

Strong cultures are generally associated with high performance.

There is a higher degree of fit between strategy and an organization’s culture.

The Leader’s Role in Influencing Culture

Leaders use different tools for changing, modifying, or sustaining culture.

  • Substantive actions are explicit and highly visible and indicative of management’s commitment to a new way of doing things.
  • Instituting new policies and practices
  • Aligning strategy and structure to culture
  • Matching rewards/incentives to the culture
  • Matching work environment design to culture
  • Symbolic actions are valuable for the signals they send about the kinds of behavior and expectations leaders wish to encourage.
  • Modeling expected behavior
  • Recognizing and celebrating organizational accomplishments
  • Being visible

Dimensions of Social Styles

ASSERTIVENESS

The way in which a person is perceived as attempting to influence the thoughts and actions of others

RESPONSIVENESS

The way in which a person is perceived as focusing on the task or feelings when relating to others

VERSATILITY

Adapting one’s behavior to meet the concerns and expectations of others

*

*

ASK-DIRECTED

ASSERTIVENESS

  • Deliberate
  • Seldom interrupts
  • Seldom emphatic
  • Tends to lean back

TELL-DIRECTED

ASSERTIVENESS

  • Quick
  • Declarative statements
  • Often interrupts
  • Often emphatic
  • Tends to lean forward

TASK-DIRECTED

RESPONSIVENESS

  • Talks about tasks, facts
  • Minimal body gestures
  • Tends not to expose personal feelings
  • Limited facial expressions

PEOPLE-DIRECTED

RESPONSIVENESS

  • Talks about relationships
  • Many, varied gestures
  • Easily exposes personal feelings
  • Varied facial expressions

Ask-Directed

Assertiveness

Task-Directed

Responsiveness

People-Directed

Responsiveness

Tell-Directed

Assertiveness

Driver

  • Take charge
  • Make quick decisions
  • Like challenges
  • Focus on results

Analytical

  • Focus on facts and logic
  • Act when payoff is clear
  • Careful not to commit

too quickly

Amiable

  • Coach and counsel
  • Provide support
  • Communicate trust

and confidence

Expressive

  • Create excitement and

involvement

  • Share ideas and dreams
  • Very enthusiastic

*

*

Task-Directed

Responsiveness

Tell-Directed

Assertiveness

Ask-Directed

Assertiveness

People-Directed

Responsiveness

Relating to Drivers:

  • Place business before relationships
  • Make efficient use of their time
  • Provide accurate and useful information
  • Offer options in a way that allows them

to feel they’re making the decision

  • Provide them with the odds for success

Relating to Expressives:

  • Develop an open and friendly relationship
  • Be tolerant of their causal use of time
  • Let them know you can help them succeed
  • Provide them with recognition (even applause)

of their visions and actions

  • Assure them of the quality of the work

being done

Relating to Amiables:

  • Have an open an honest approach
  • Spend time to develop a meaningful

relationship

  • Provide assurance of being congenial

and trustworthy

  • Give them personal support
  • Provide them with guarantees and

assurances

Relating to Analyticals:

  • Adopt a predictable and objective

approach

  • Be well prepared and organized
  • Provide confirmation of expertise
  • Provide factual, detailed information
  • Provide solid evidence to help them

make good decisions

Back-up Behaviors When Threatened

*

Analytical – AVOIDING

  • Avoids confrontation.
  • Retreats to other distractions
  • Delays decisions
  • Controls emotions

Driver – AUTOCRATIC

  • Confronts others
  • Focuses on results
  • Becomes demanding

Amiable – ACQUIESCING

  • Yields to others’ viewpoints
  • Soothes relationships
  • Feels hurt or slighted

Expressive – ATTACKING

  • Confronts others
  • Verbalizes judgmental feelings
  • Shows extreme emotion

Disc Profile

*

Analytical

Driver

Expressive

Amiable

*

Ask-Directed

Assertiveness

Task-Directed

Responsiveness

People-Directed

Responsiveness

Tell-Directed

Assertiveness

Driver

  • Direct Leadership Style

Analytical

  • Systematic Leadership Style

Amiable

  • Considerate Leadership Style

Expressive

  • Spirited Leadership Style

*

Leadership Styles

*

The Four Leadership Styles

Direct - Leads by taking charge

Spirited - Leads by inspiring

Considerate - Leads by building group harmony

Systematic - Leads by planning carefully

*

*

Direct Leaders - Strengths

  • Likes to compete
  • Produce quick results
  • Get down to business
  • Focus on deadlines
  • Take charge no matter how challenging
  • Energetic- Move people

*

Direct Leaders

Most Effective

In crisis situations or rapidly changing situations in which bold action and quick decisions are needed.

Less Effective

Situations requiring careful planning and situations requiring tact and sensitivity to other’s feelings.

*

Spirited Leaders - Strengths

  • Visualize the big picture
  • Create a fun exciting atmosphere -work into play
  • Motivates others to develop fresh ideas
  • Rally support
  • Imagine possibilities

*

Spirited Leaders

Most Effective

Situations in which people need to be motivated to develop innovative ideas.

Less Effective

Urgent situations in which deadlines must be met and in situations in which long-term planning is vital.

*

Considerate Leaders

  • Create a comfortable environment
  • Build cohesiveness / team harmony
  • Take everyone’s input into account
  • Follow procedures that are “tried and true”
  • Provide support
  • Provide team harmony

*

Considerate Leaders

Most Effective

In sensitive situations requiring patience, tact, and team harmony.

Least Effective

Situations requiring quick adjustments because of unforeseen changes in which the need to take charge of others is crucial.

*

Systematic Leaders

  • Provides structure for activities
  • Makes sure people do not overlook important data
  • Require accuracy and precision
  • Makes decisions based on facts
  • Strong orientations toward objectivity

*

Systematic Leaders

Most Effective

Situations calling for careful long-term planning, accuracy, and objective analysis.

Less Effective

Situations requiring quick decision-making or when flexibility is needed

*

Are leaders born or made?

The Answer: BOTH

Attributes

Developmental

Experiences

Leadership

Success

Leadership Development =
V+C+L

Variety of Experiences +
Challenging Assignments +
Ability & Willingness to Learn

—Center for Creative Leadership

*

“There are two kinds of people in organizations: Those with 20 years experience and those with one year experience repeated 20 times.”

*

Assessment of

Key Positions

Identification of

Key Talent

Assessment of

Key Talent

Generation of

Development Plans

Development

Monitoring & Review

Key

Elements

Succession Planning: Key Elements

*

1. Assessment of Key Positions:

• What are the competencies and experiences needed

to qualify for each key position?

2. Identification of Key Talent:

• Typically people at the top two levels of the organization

and high potential employees one level below.

• Identified by their management’s assessment of their

performance and potential for advancement.

3. Assessment of Key Talent:

• For each person on the radar screen, primary development

needs are identified focusing on what they need in order

to be ready for the next level.

Succession Planning: Key Elements

*

4. Generation of Development Plans:

• A development plan is prepared for how we will help the

person develop over the next year.

5. Development Monitoring & Review

• An annual or semi-annual succession planning review is

held to review progress of key talent and to refresh or

revise their development plan.

Succession Planning: Key Elements

*

FOUR LEVERS FOR LEARNING

55-65%

25-30%

5-10%

5-10%

*

Highest Return…

 New Position Focused On Development Needs

 Job Enrichment Based On Development Needs

 Temporary P&L Assignments

 Cross Functional Project Leadership Or Assignment

 Leadership Coaching & Counseling

 University Leadership Program

 Industry Presentations

 Customer Visits Accompanying Senior Executives

 Custom Education Programs

 Full 360 Degree Feedback and Evaluation

 Motivated Self Development

 Seminars and Conferences

… Lowest Return

LEADERRSHIP

DEVELOPMENT

PROGRAMS

*

Leadership Development Plan

Overall Performance Summary:

(Indicate recent performance including major accomplishments

or performance issues.)

Key Strengths:

(List 2 - 3. Indicate key technical or professional competencies,

skills, or knowledge the person has.)

               

Development Needs:

(List 2 or 3. Indicate key experiences, skills, or knowledge the

person lacks in order to move to the next level.)

            

*

Leadership Development Plan

Development Actions:

1. On The Job: (What new responsibilities do you plan to assign

to help this person develop this year?)

2. Special Assignment: (What task force, projects, or special

assignments will be given this year to aid development?)

3. Training: (What specific training or seminars are

recommended this year for his/her development?)

*

Leadership Development Plan

Potential For Promotion:

(Indicate this persons readiness to be promoted to the next

organizational level.)

___ Ready now for the next level.

___ Ready in the next 24 months.

___ Ready in 2 to 3 years.

Recommended Next Position: (List the next assignment that

would most benefit the individual in his/her development.)

*

Designing an HR System (Project): Objectives

Organizational Culture

  • Objectives: What type of culture needs to be reinforced? Why?

Leadership

  • Objectives: What type of leader is needed to execute the business strategy? What key specific leadership characteristics are required? Why?

*

Designing an HR System (Project): Practices

Organizational Culture

  • Practices: Which HR practices support this culture? How?

Leadership

  • Practices: How will you find and/or develop leaders. What specific practices? Why?

*

VI. Executing Strategy

1. How grow?

2. What strategic capabilities/culture?

3. What obstacles?

4. How overcome?

5. How accelerate?

6. How measure success?

Six Questions for Line Executives

The Leader’s Message

Strategy Implementation

Human Resource Management

Competitive Advantage

Strategy

Organizational Structure and Control

Strategic Leadership

*

6 Key Elements of a Strategic Plan


Actions

Initiatives

Vision

Strategy

Mission

Objectives

What do we want to be?

(in relation to our strategy) .

How we will get there?

What we will achieve?

What we need to change in order to “get there”?

What steps will we take and who is accountable?

What, Where, How?

*

“We will be a leader of our industry in the future, committed to delivering excellent quality and service to our customers, increasing returns to our shareholders, showing responsibility to the environment, and building a highly motivated and empowered workforce…”

Key Questions

*

1. To what extent does our workforce understand our firm’s strategy, how well we’re doing, and what we must do to be strategically successful?

2. What are our firm’s strategic capabilities and what is our inventory of top talent in our strategic positions?

3. To what extent are we getting the critical behaviors necessary to make our business model a reality?

4. To what extent are our strategic positions creating the wealth (revenue enhancement or cost reduction) that sustains our growth, provides job security, and reinforces the success of our business model?

Understand the Drivers of Success

Improve Shareholder Value

Revenue Growth Strategy

Productivity Strategy

Enhance the Franchise

Enhance Customer Value

Improve Cost Structure

Improve Asset Utilization

Shareholder Value

ROCE

New Product Revenue

Customer Profitability

Cost per Unit

Asset Utilization

Financial Perspective

Customer Perspective

Internal Perspective

Learning & Growth Perspective

“Build the Franchise”

“Increase Customer Value”

“Operational Excellence”

“Good Neighbor”

(Innovation Processes)

(Customer Management Process)

(Operations & Logistics Process)

(Regulatory & Environmental Processes)

Customer Value Proposition

Customer Intimacy

Product Leadership

Customer Satisfaction

Customer Acquisition

Customer Retention

Price

Product/Service Attributes

Quality

Time

Function

Service

Relations

Brand

Op Excellence

Relationship

Image

A Motivated and Prepared Workforce

Awareness

Alignment

Incentives

Infrastructure

Applications

Skills

Knowledge Sharing

Strategic Competencies

Climate for Action

Strategic Technologies

Create the Right Measures: Balanced Scorecard

What Must You Excel At?

What do you need to excel at to meet these changing customer needs?

Upon which of these themes will you differentiate yourself?

What barriers are in the way?

Internal
Perspective

Product

Innovation


Customer

Intimacy

Operational Excellence

Regulatory

Management

Source: Kaplan & Norton

*

What skills and competencies does your organization need to have in the next 3-5 years?

What drives motivation in your organization?

What work force behavior should be developed in the next 3-5 years?

What technology or infrastructure should be in place to support the strategic direction?

How will members of your organization know when it is headed in the right strategic direction?

How will the organization need to learn and grow?

Learning and Growth
Perspective

Work Environment

Leadership

Skills

Shared Mindset

Motivation

*

Workforce Behaviors

Workforce Mindset/Culture

Workforce Competencies

The Workforce Scorecard:
Success Metrics for Every Leader

Workforce Success

What leaders want all
employees to understand

What leaders want all
employees to do to deliver
the firm’s strategy

What our firm must be
able to do to create its competitive advantage

What specific business

objectives leaders must deliver (HR’s Deliverables)

Executing Workforce Strategy: The Process

ACCOUNTABILITY IS A CAPABILITY!

CEO/Executive Team Business & Workforce Strategy Expectations

Business Leader/Line Manager Workforce Expectations

HR Function Workforce Expectations

· Strategic Choice

· Firm Culture

· Strategic Capabilities

· Workforce Philosophy

· Leader Accountability

· HR Accountability

· Workforce Mindset/Culture

· “A” Positions

· “A” Players

· “B” Players with “A” Potential

· Developmental Plans for “A” and “B” Players

· “C” Player Exits

· Cascade Accountability

· Workforce Differentiation Practices

· Selection

· Development

· Performance Management

· Rewards

· Communication

· Work Design

· Workforce Metrics

· Culture/Mindset

· Strategic Capabilities

· Performance

Customer Success
What specific customer desires and expectations must be satisfied?

Financial Success
What specific financial commitments must be met?

Operational Success
What specific internal operational processes must be optimized?

Balanced Scorecard

Workforce Success
Has the workforce accomplished the key strategic objectives for the business?

Leadership and Workforce Behaviors Are the leader-ship team and workforce consistently behaving in ways that will lead to achieving our strategic objectives?

Workforce Mind-set and Culture Does the workforce understand our strategy and embrace it, and do we have the culture we need to support strategy execution?

Workforce Competencies
Does the workforce, especially in the key or “A” positions, have the skills it needs to execute our strategy?

Workforce
Scorecard

HR
Scorecard

HR Systems

  • Align
  • Integrate
  • Differentiate

HR Workforce
Competencies

  • Strategic partner
  • Change agent
  • Employee advocate
  • Administrative expert
  • Work design
  • Staffing
  • Development
  • Performance management
  • Rewards
  • Communication

HR Practices

Managing
Human Capital to Execute Strategy

*

*

Align Your HR System

Work Environment

Employee Attitudes and Behaviors

Employee Competencies

Job Design - Decisions / Empowerment

Organizational Structure – Flat, Hierarchical

Recruitment, Selection, Training & Development

Performance Management Goals

Evaluation and Appraisal

Compensation and Incentives

Organizational Challenges

Environmental Challenges

*

Preparing for Strategic Transformation

  • Four key components for rapid growth
  • Strategy
  • Organization design
  • Culture and values
  • Leadership and people

The 4 R’s

  • Reframing the Organization: Core competencies and markets served: What business should we be in? How should we operate? Who do we need to be?
  • Restructuring: how can we support this new picture
  • Revitalization – growth – every new beginning has an ending associated
  • Renewal – engaging the minds and hearts of the organization –investing in individuals

Strategic Success

What really works (4+2)*

* Joyce, Nohria, and Roberson (2003)

THE PRIMARY FOUR:

1. Strategy: Devise and maintain a clearly stated, focused strategy

2. Execution: Develop and maintain flawless operational execution

3. Culture: Develop and maintain a performance-oriented culture

4. Structure: Build and maintain a fast, flexible, flat organization

THE SECONDARY FOUR:

1. Talent: Hold on to talented employees and find more

2. Leadership: Keep leaders and directors committed to the business

3. Innovation: Make innovations that are transforming

4. Mergers and partnerships: Make growth happen with mergers and partnerships

Findings

  • The best (companies that consistently out performed the rest) had to be really good at all FOUR foundation practices
  • Strategy, Execution, Culture, Structure
  • The best (companies that consistently out performed the rest) had to be really good at TWO of the complimentary (any two!!)
  • Talent, Leadership, Innovation, Mergers and partnerships

This has become the 4 + 2 formula

*

4+2 Differentiators on “Strategy”

Source: What Really Works, Joyce et. al., p. 72

Keep growing your core business; beware of the unfamiliar

Clearly communicate your strategy internally and externally

Develop strategy from the outside in

Build a strategy around a clear value proposition for the customer

Maintain antennae to marketplace changes and fine-tine strategy

Primary

*

4+2 Differentiators on “Execution”

Source: What Really Works, Joyce et. al., p. 110

Constantly strive to improve productivity and eliminate waste

Empower front lines to respond to customer needs

Deliver products and services to consistently meet customers’ expectations

Primary

*

4+2 Differentiators on “Culture”

Source: What Really Works, Joyce et. al., p. 133

Establish and abide by clear company values

Create a working environment that is challenging, satisfying and fun

Reward achievement but keep raising the bar

Inspire all to do their best

Primary

*

4+2 Differentiators on “Structure”

Source: What Really Works, Joyce et. al., p. 158

Put your best people closest to the action and keep your frontline stars in place

Promote cooperation and information exchange across the company

Eliminate layers and bureaucratic behaviors; simplify

Primary

*

4+2 Differentiators on “Talent”

Source: What Really Works, Joyce et. al., p. 184

Become personally involved in winning the war for talent

Design jobs that challenge your best performers

Create and maintain
top-tier training and education programs

Fill mid and high-level jobs with internal talent

*

4+2 Differentiators on “Leadership”

Source: What Really Works, Joyce et. al., p. 203

Closely link the pay of the leadership team to their performance

Appoint a board of directors with a financial stake in the company’s success

Hone capacity to spot opportunities and problems early

Inspire management to strengthen relationships with people at all levels

*

4+2 Differentiators on “Innovation”

Source: What Really Works, Joyce et. al., p. 221

Don’t hesitate to cannibalize existing products

Exploit new and old technologies to design products and enhance operations

Introduce disruptive technologies and business models

*

4+2 Differentiators on “Mergers and Partnerships”

Source: What Really Works, Joyce et. al., p. 237

Build a systematic capability to find, screen, and close deals

Move into new businesses that use partners’ talents

Enter businesses that
complement existing strengths

Acquire relationships that lever existing customer relationships

What are the strategies/initiatives of, company, division, department?

Why are these the initiatives?

How are they measured?

How do these initiatives and measures affect me?

How can I affect them?

What are my specific objectives?

How will I be measured?

How will other initiatives/measures impact me?

If I affect the initiatives/measures, what is the benefit to:
my division, my department and... to me?

People need answers to several questions in order to effectively understand how Strategy applies to them.

From those who create it to those who can implement it!

Making the Plan Understandable

Communication Strategy

*

*

Characteristics of Strategic Leaders

  • Clear practical executable vision – skills to create a vision
  • Willingness to change – skills to lead change
  • Willingness to ask the tough questions – skills in questioning, listening and giving feedback
  • Willingness to innovate – creativity and facilitation, challenge the status quo
  • Willingness to include – building relationships internally and externally

Barriers to Change

Success

History / Founding

Cognitive schema

Top management team composition

Culture

HR Systems

Competitive Dynamics

HURDLES

  • Policy versus practice (Design versus implementation)
  • What level of analysis is appropriate to target interventions?
  • How do you get those who implement strategies to carry them out (in practice) appropriately?
  • How to implement an effective change management initiative?

Overcoming Implementation Hurdles

  • Communicate a Clear Vision
  • Develop Meaningful Metrics – Create line of sight
  • Ensure Leadership Buy in – Make necessary TMT changes
  • Manage Competencies – A players in A positions
  • Manage the Work Environment – Redesign jobs and organizational structures aligned with the business strategy
  • Manage Behaviors – Establish new goals and align with compensation and incentive plans
  • Implement an effective Change Management Program

What Stimulates Organizational Change?

Major external forces / shifts:

  • Shift in domestic policy
  • Substantial cuts in funding
  • Decreased market opportunity
  • Dramatic increase in services
  • Global events

Reactive

Generally respond by reviewing technical or structural opportunities.

Proactive

Strategic decision to shift product or service to anticipate /create new or niche markets

Slide *

*

Kinds of Change

  • Incremental
  • Smaller change that aligns systems and practices with strategy
  • Tweaking the system or process
  • Transitional
  • Restructuring, reorganizing
  • Transformational
  • Results in major and comprehensive redirection of the organization
  • New vision, new mission, new values

John Kotter

*

Four Areas of
Organizational Change

Strategy: a transformation in Goals, Boundaries, Activities

Structure & Culture : change of people or authority relationships

Organizational Systems: change of competencies, motivation, work environment

People: Reluctance, commitment, collaboration

Four Areas of
Organizational Change

Strategy: a transformation in Goals, Boundaries, Activities

Structure & Culture : change of people or authority relationships

Organizational Systems: change of competencies, motivation, work environment

People: Reluctance, commitment, collaboration

Four Areas of
Organizational Change

Strategy: a transformation in Goals, Boundaries, Activities

Structure & Culture : change of people or authority relationships

Organizational Systems: change of competencies, motivation, work environment

People: Reluctance, commitment, collaboration

Four Areas of
Organizational Change

Strategy: a transformation in Goals, Boundaries, Activities

Structure & Culture : change of people or authority relationships

Organizational Systems: change of competencies, motivation, work environment

People: Reluctance, commitment, collaboration

Transformations do not occur in organizations – they occur within people’s minds

Both management AND employees

The Importance of People

*

Why People Resist Change

  • Rational or irrational reaction to
  • Uncertainty
  • Actual, perceived, or imaged threats
  • Parochial self-interest
  • Misunderstanding
  • Lack of trust
  • Different assessments
  • Low tolerance for change

Reducing Resistance to Change

  • Employee resistance can be reduced by utilizing:
  • Education and communication
  • Participation and involvement
  • Facilitation and support
  • Negotiation and agreement
  • Explicit and implicit coercion

Managing Change

  • Determine Desired State
  • Identify Key Players
  • Determine Needed Commitment
  • Assess Present Commitment
  • Determine Gaps
  • Identify Driving & Restraining Forces
  • Determine Leverage Points
  • Act

Change Model

  • Unfreeze
  • Assess readiness
  • Overcome Resistance
  • Change
  • Transition Phase
  • Build coalition/Develop consensus
  • Refreeze
  • Establish new norms/culture
  • Reward/Punish
  • Renewal
  • Monitor/Evaluate
  • Learning/Improvement

Change Model

  • Analysis-------------Vision
  • Design---------------Model of Change
  • Communicate------Consensus & Coalition
  • Implement--------- Action Plan
  • Institutionalize-----New Culture

*

Overview of Change Processes

  • Leading change (WHO)
  • Creating a shared need (WHY)
  • Shaping a vision (WHAT)
  • Mobilizing commitment (WHO ELSE)
  • Using levers for change (HOW)
  • Monitoring progress (HOW)
  • Making it last (HOW)

Kotter’s Change Model

Establishing a sense of urgency

Creating the guiding coalition

Developing a vision and strategy

Communicating the change vision

Empowering broad-based action

Generating short-term wins

Consolidating gains and producing more change

Anchoring new approaches in the culture

Failing to follow these steps is the reason why change initiatives fail.

*

Establishing a Sense of Urgency

Actions Needed

  • Examine market competitive realities for potential crises and untapped opportunities
  • Convince at least 75% of your managers that the status quo is more dangerous than the unknown

Pitfalls

  • Underestimating the difficulty of driving people from their comfort zones
  • Becoming paralyzed by risks

*

Form a Powerful Guiding Coalition

Actions Needed

  • Assemble a group with shared commitment and enough power to lead the change effort
  • Encourage them to work as a team outside the normal hierarchy

Pitfalls

  • No prior experience in teamwork at the top
  • Relegating team leadership to a staff or strategic planning executive rather than a business executive or senior line manager

*

Create a Vision

Actions Needed

  • Create a vision to direct the change effort
  • Develop strategies for realizing that vision

Pitfalls

  • Presenting a vision that is too complicated or vague to be communicated effectively in five minutes

*

Communicate the Vision

Actions Needed

  • Use every vehicle possible to communicate the new vision and the strategies for achieving it
  • Teach new behaviors by the example of the guiding coalition

Pitfalls

  • Under communicating the vision
  • Behaving in ways antithetical to the vision

*

Empower Others to Act on the Vision

Actions Needed

  • Getting rid of obstacles to change
  • Remove or alter systems or structures undermining the vision
  • Encourage risk taking and nontraditional ideas, activities, and actions

Pitfalls

  • Failing to remove powerful individuals who resist the change effort

*

Plan for and Create Short-term Wins

Actions Needed

  • Define and engineer visible performance improvements
  • Recognize and reward employees contributing to those improvements

Pitfalls

  • Leaving short-term success up to chance
  • Failing to score success early enough (12-24 months into the change effort)

*

Consolidate Improvements and Produce More Change

Actions Needed

  • Use increased credibility from early wins to change systems, structures, and policies undermining the vision
  • Hire, promote, and develop employees who can implement the vision
  • Reinvigorate the change process with new projects and change agents

Pitfalls

  • Declaring victory too soon – with the first performance improvement
  • Allowing resistors to convince “troops” that the war has been won

*

Institutionalize New Approaches

Actions Needed

  • Articulate connections between new behaviors and corporate success
  • Create leadership development and succession plans consistent with the new approach

Pitfalls

  • Not creating new social norms and shared values consistent with changes
  • Promoting people into leadership positions who don’t personify the new approach

*

Change Agent Skills

Team Player

Process skills: Understanding both relationships and tasks

Political skills: To form and work with coalitions

Understanding interests: principled negotiations

Building organizational capabilities and accountability

Fair, flexible, fast, friendly

CONFLICT DEFINED

“Conflict is a felt struggle between two or more interdependent individuals over perceived incompatible differences in beliefs, values, and goals, or over differences in desires for control, status and connectedness.”

Wilmot & Hocker (2011)

*

CONFLICT MANAGEMENT STYLES

Degree of Cooperation

Non-supportive

Supportive

Dominant

Submissive

Accommodation

Collaboration

Competition

Avoidance

Compromise

High Relationship

Low Issue

High Relationship

High Issue

Low Relationship

High Issue

Low Relationship

Low Issue

*

Degree of Assertiveness

The Conflict Grid

COMPETING

Win-lose power struggles are fought out.

COLLABORATING

Looking for Solutions to satisfy both parties’ concerns.

ACCOMMODATING

Tend to please the other party than meet its own needs.

COMPROMISING

Middle-ground positions are accepted. “Divide the pie.”

AVOIDING

Tend to behave as indifferent to concerns of both parties.

0 1 2 3 4 5 6 7 8 9

Concern for satisfying self / Assertive

Concern for satisfying the other party / Cooperative

2

1

3

4

5

6

7

8

9

*

Conflict Management Styles

  • COMPETING: Win-lose power struggles are fought out, decided by the powerful, or through arbitration
  • COLLABORATION: A process used to assess several points of view and alternatives. Solutions involve meeting the minimum needs achieving win-win solutions.
  • COMPROMISE: Compromise, bargaining, & middle-ground positions are accepted. “Divide the pie,” win-win is not possible. Win lose would cause negative repercussions. Compromising people do not fully avoid the problem, nor do they fully collaborate to develop a win-win resolution.
  • ACCOMMODATION: Disagreements are smoothed over so that harmony is maintained - one party gives into another.
  • AVOIDANCE DENIAL: Neutrality is maintained at all costs. Withdrawal from the situation relieves the necessity for dealing with conflict.
  • Individuals can use one or more of the styles, but most of us will feel more comfortable with one style than with others.

*

Focus on:

Core

Competencies

Network

Structures

Network

Network

Structures

Structures

Intellectual

Capital

Intellectual

Intellectual

Capital

Capital

Partners &

Contractors

Partners &

Partners &

Contractors

Contractors

Focus on:

Core

Competencies

Network

Structures

Intellectual

Capital

Partners &

Contractors

R&D

Manufacturing/

Operations

Distribution

Sales

Sales

TMT

Cust

Serv

HR

R&D

Rapids

Fin

Customer

Service

Mfg

R&D

R&D

Partners

Low VALUE hi gh

Low VALUE hi gh

Low UNIQUE high

Low UNIQUE high

Rapids

HR

Legal

MIS

Biologicals

Fin

Quality

TMT

Core

Core

Compulsory

Compulsory

Idiosyncratic

Idiosyncratic

Ancillary

Ancillary

R&D

PartnersR&D

PartnersR&D

PartnersR&D

Partners

R&D

Manufacturing/

Operations

Distribution

Sales

Sales

TMT

Cust

Serv

HR

R&D

Rapids

Fin

Customer

Service

Mfg

R&D

R&D

Partners

Low VALUE hi gh

Low VALUE hi gh

Low UNIQUE high

Low UNIQUE high

Rapids

HR

Legal

MIS

Biologicals

Fin

Quality

TMT

Core

Core

Compulsory

Compulsory

Idiosyncratic

Idiosyncratic

Ancillary

Ancillary

R&D

PartnersR&D

PartnersR&D

PartnersR&D

Partners

BC

D A

R&D

Sales

TMT

HR

Diagnostics

Fin

Mfg

R&D

Low VALUE hi gh

Low VALUE hi gh

Low UNIQUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

MIS

TMT

Core

Core

BC

D A

R&D

Sales

Sales

TMT

HR

R&D

Diagnostics

Fin

Customer

Service

Mfg

R&D

Low VALUE hi gh

Low VALUE hi gh

Low UNIQUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

MIS

Laboratory

Services

Fin

Quality

TMT

Core

Core

Compulsory

Compulsory

BC

D A

R&D

Manufacturing

Operations

Distribution

Sales

Sales

TMT

HR

R&D

Diagnostics

Fin

Customer

Service

Mfg

R&D

Low VALUE hi gh

Low VALUE hi gh

Low UNIQUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

MIS

Laboratory

Services

Fin

Quality

TMT

Core

Core

Compulsory

Compulsory

Ancillary

Ancillary

Customer

Service

BC

D A

R&D

Manufacturing

Operations

Distribution

Sales

Sales

TMT

HR

R&D

Diagnostics

Fin

Customer

Service

Mfg

R&D

R&D

Partners

Low VALUE hi gh

Low VALUE hi gh

Low UNIQUE high

Low UNIQUE high

Mapping Skill Areas at BIOTECH

HR

Legal

MIS

Laboratory

Services

Fin

Quality

TMT

Core

Core

Compulsory

Compulsory

Idiosyncratic

Idiosyncratic

Ancillary

Ancillary

Customer

Service

Diagnostics

R&D

PartnersR&D

PartnersR&D

PartnersR&D

Partners

Strategic Choice and People “Fit”

Operational Excellence

— Cost —

Product Leadership

— Innovation—

Customer Intimacy

—Solutions —

Core Workforce Mindset

Identifies with process

Trainable/can learn

Follow the Battle Plan

Dedicated to organizat

ion

Shorter-term focus

Avoid waste and cost

Driven by incremental

improvement

High concern for output quantity

High concern for process

High comfort with stability

Lower level of risk-taking

Identifies with, values and is

humbled by the discovery

process

Challenges the possible/the

status quo

Anti-bureaucratic

Longer-term focus

Versatile

Driven by learning

Higher concern for outcomes

High tolerance for ambiguity

Greater degree of risk-taking

Identifies with customers

Sh

ares “secrets” readily, easily

Seeks customer intelligence

Adaptable/flexible

Makes customer results happen

Quick study

Driven by customer success

Anticipates customer needs

NOT

: Free spirits/ostentatious

NOT

: Structured/streamlined

NOT

: Clones

Typical Behaviors

Teamwork

Working to fit in/find a role

Relatively repetitive and

predictable behaviors

Primarily individual activity as

part of process

Problem solving

·

Challenging one another

Cross-functional collaboration

High

degree of creative behavior

Share ideas and solutions

Thinks/works across boundaries

Develops broad-based skills

Networks effectively

Customer management

Examples

Federal Express, Dell, Nucor,

Wal-Mart, UPS

Sony, Glaxo, Merck, 3M, Intel,

Nike, Microsoft

Four Seasons, Airborne, Roadway,

Home Depot, Cott, Cable & Wireless

The Hearts and Minds of the Workforce

Wal-Mart

Intel

Pfizer/Merck

Accenture

Fast

Inexpensive

Convenient

Best

Fastest

Easiest

“Sure cure”

Safe/Reliable

Worth the price

Problem solver

Customizer

Leverage competitive

advantage

Operational

Excellence

Product Leadership

Customer Intimacy

On-The-Job

Experiences

Mentoring or Coaching

Training or Continuing

Education

Motivated Self-

Development

“We will be a leader of our industry in

the future, committed to delivering

excellent quality and service to our

customers, increasing returns to our

shareholders, showing responsibility

to the environment, and building a

highly motivated and empowered

workforce…”

1. To what extent does our workforce understand our firm’s

strategy, how well we’re doing, and what we must do to be

strategically successful?

2. What are our firm’s strategic capabilities and what is our

inventory of top talent in our strategic positions?

3. To what extent are we getting the critical behaviors necessary to

make our business model a reality?

4. To what extent are our strategic positions creating the wealth

(revenue enhancement or cost reduction) that sustains our growth ,

provides job security, and reinforces the success of our business

model?

ACCOUNTABILITY IS A CAPABILITY

!

CEO/Executive Team

Business & Workforce

Strategy Expectations

Business Leader/Line

Manager Workforce

Expectations

HR Function Workforce

Expectations

q

Strategic Choice

q

Firm Culture

q

Strategic Capabilities

q

Workforce Philosophy

q

Leader Accountability

q

HR Accountability

q

Workforce Mindset/Culture

q

“A” Positions

q

“A” Players

q

“B” Players with “A”

Potential

q

Developmental Plans for “A”

and “B” Players

q

“C” Player Exits

q

Cascade Accountability

q

Workforce Differentiation

Practices

·

Selection

·

Development

·

Performance

Management

·

Rewards

·

Communication

·

Work Design

q

Workforce Metrics

·

Culture/Mindset

·

Strategic Capabilities

·

Performance

THE PRIMARY FOUR:

1.

Strategy

: Devise and maintain a clearly stated, focused

strategy

2.

Execution

: Develop and maintain flawless operational

execution

3.

Culture

: Develop and maintain a performance-oriented culture

4.

Structure

: Build and maintain a fast, flexible, flat organization

THE SECONDARY FOUR:

1.

Talent

: Hold on to talented employees and find more

2.

Leadership

: Keep leaders and directors committed to the

business

3.

Innovation

: Make innovations that are transforming

4.

Mergers

and

partnerships

: Make growth happen with mergers

and partnerships

46

19

51

9

45

11

60

8

58

8

32

64

30

89

24

87

18

81

27

86

Losers

Winners

Losers

Winners

Losers

Winners

Losers

Winners

Losers

Winners

Rated

Poorly

Rated

Highly

52

10

35

13

36

12

34

82

27

55

25

86

Losers

Winners

Losers

Winners

Losers

Winners

Rated Poorly

Rated Highly

44

13

51

11

63

3

47

5

24

72

22

77

15

87

25

91

Losers

Winners

Losers

Winners

Losers

Winners

Losers

Winners

Rated

Poorly

Rated

Highly

52

17

37

18

40

19

27

67

35

60

40

67

Losers

Winners

Losers

Winners

Losers

Winners

Rated

Poorly

Rated

Highly

48

17

47

14

50

13

56

11

30

73

25

71

21

75

20

77

Losers

Winners

Losers

Winners

Losers

Winners

Losers

Winners

Rated

Poorly

Rated

Highly

57

12

42

14

45

14

64

12

23

75

34

62

24

62

14

80

Losers

Winners

Losers

Winners

Losers

Winners

Losers

Winners

Rated

Poorly

Rated

Highly

45

21

50

26

56

32

31

58

30

53

26

55

Losers

Winners

Losers

Winners

Losers

Winners

Rated

Poorly

Rated

Highly

33

23

39

28

45

19

62

14

2

69

37

53

39

68

21

73

Losers

Winners

Losers

Winners

Losers

Winners

Losers

Winners

Rated

Poorly

Rated

Highly