Designing a Custom Leadership System: Process Design Studio · 2013. 12. 11. · Deep Change -...

Designing a Custom Leadership System:Process Design Studio

John Latham, PhDDirector, The Monfort Institute andExecutive Professor of ManagementMonfort College of Business at the University of Northern Colorado

[email protected] 970.351.1230

John Latham (c) 2007 - All Rights Reserved

John Latham, PhD

September 20, 2007The Meritage Resort at Napa

Napa, California


Materials Check

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For more information visit: www.baldrigeusersguide.com

leader

ship

sy

stem

1.1a Vision and Values - Example Section from the Baldrige User’s Guide

Contents: Baldrige Criteria Questions - The

actual Malcolm Baldrige National Quality

Award Criteria are presented verbatim in the

boxed area labeled Questions. Included are

the actual questions and notes (explanations)

from the Malcolm Baldrige National Quality

Award Criteria.

Foundation - This introduction is a

“common sense” description of what the

criteria in the particular Area to Address are

trying to achieve. The introduction focuses on

what the criteria actually mean and not just

the questions in the criteria. This focus will

help new and experienced users gain a better

understanding of the criteria, their

background as well as their meaning.

Example Key Factors, Processes, and

Results – A mix of business, healthcare, and

education examples are included to help

“bring alive” the key elements of the

particular Areas to Address. These tangible

real world examples are included courtesy of

the individual Baldrige Award recipients and

other world-class organizations. Typically

these examples include graphics and

descriptions of best practices from excellent

organizations.

Worksheets – The "fill-in-the-blank"

worksheets help writers and assessors collect

and organize information about the

organization’s key factors, processes, and

results. Completing these worksheets will help

the writing team develop responses to the

criteria in the form of an award application.

The worksheets are structured and aligned in

a manner that will help the user understand

the breadth and depth of what the criteria are

trying to address. The worksheets presented

in the book are condensed to save space, but

full-size editable (landscape) format

worksheets are available on the CD-ROM

included with the book.

Diagnostic Questions – These

questions help the assessor quickly “take the

temperature" of the organization by providing

a rough estimate score. This portion of the

book can also be used as a survey across

different groups to understand how they feel

the organization is currently performing.

Blueprints – The blueprints provide a

"visual version" of the criteria. These

flowchart diagrams depict the logic flow and

relationships of the elements found in the

particular Area to Address as well as linkages

to other Areas to Address (context a.k.a. key

factors, the system of processes, and the

results).

System Integration (a.k.a. Linkages) –

The system integration sections support the

blueprints by describing the nature of the

relationships, or linkages, to other Areas to

Address. This section provides descriptions of

the linkages depicted in the blueprint and

their relationships to other criteria context

a.k.a. key factors, system of processes, and

the results.

Thoughts for Leaders - Thoughts for

leaders are included for each Area to

Address and typically use brief anecdotes to

bring the concepts alive for the leaders of the

organization. In some cases, they provide

leaders a view of why this portion of the

criteria should be important to them.

John Latham and John Vinyard (c) 2007 - All Rights Reserved

2

4

mcb.unco.edu/monfortinstitute

Knowledge forGlobal Excellence

University of Northern Colorado

3

Process Design Process

Purpose and Requirements

1

Theories and Concepts

2

Examples

3

Context

4

Design Principles

5

System Perspective

6

Process Description

7

Process Diagnosis

8

Design andDevelop

9


The Mind of the Process Architect

Anthropologist

Psychologist

Artist

Designer

Economist

Engineer

ProcessArchitect

PracticalDimension

HumanDimension

CreativeDimension



1. Understand the Purpose(s) and Requirements of the Process

- Understand the purpose(s) and requirements for the process. - Frame the need. - Why do you need this process? - What key capabilities are needed?

1. Identify the Purpose(s) of the Process – What is the benefit?

2. Identify the key requirements.

3. Identify the “nature” of the process.

BUG p. 105


NIST’s Definition

The term “leadership system” refers to how leadership is exercised, formally and informally, throughout the organization–the basis for and the way key decisions are made, communicated, and carried out.

It includes structures and mechanisms for decision making ; selection and development of leaders and managers; and reinforcement of values, directions, and performance expectations.

An effective leadership system respects the capabilities and requirements of employees and other stakeholders, and it sets high expectations for performance and performance improvement.

It builds loyalties and teamwork based on the organization’s values and the pursuit of shared goals.

It encourages and supports initiative and appropriate risk taking, subordinates organization to purpose and function, and avoids chains of command that require long decision paths.

An effective leadership system includes mechanisms for the leaders to conduct self-examination, receive feedback, and improve

BUG p. 445

Criteria and Concepts

Set vision and values

Deploy vision and values - employees, key suppliers and partners and customers

Personal actions reflect commitment

Promote environment - legal and ethical behavior

Create a sustainable organization

Create environment for performance improvement, accomplishing the strategic objectives, innovation, and agility

Create an environment for organizational and employee learning

Personally participate in succession planning and development of future leaders

John Latham (c) 2007 - All Rights ReservedBUG p. 105

Nature of the Process?

Automated ?

Physical ?

Knowledge ?

Creative ?

Customization ?


Purpose, Requirements, and Nature




- Understand the purpose(s) and requirements for the process. - Frame the need. - Why do you need this process? - What key capabilities are needed?

1. Identify the Purpose(s) of the Process – What is the benefit?

2. Identify the key requirements.

3. Identify the “nature” of the process.



2. Understand the Key Theories and Concepts that “Inform” this Process

Leading Change - John Kotter

Level 5 Leadership

Deep Change - Robert Quinn

Individual Change - Richard Beckhard

Transformational Leadership

Transactional Leadership

Servant Leadership - Greenleaf

- Understand the key theories and concepts that inform this process. - Identify what we already know about this type of process.

1. Identify the leading theories.2. Identify the empirical evidence – what works and what doesn’t work.3. Identify the leading thinkers and understand their leading edge ideas.

BUG p. 106

John Kotter

Establish a sense of urgency

Form a powerful guiding coalition

Create a vision

Communicate the vision

Empower others to act on the vision

Plan and create short-term wins

Consolidate improvements and produce still more change

Institutionalize new approaches


Kotter, J. P. (1995). "Leading Change: Why Transformation Efforts Fail." Harvard Business Review 73(2): 59-67.

Collins’ Findings

First Who (people first, then strategy)

Stockdale Paradox (realistic with unwavering faith)

Buildup-Breakthrough Flywheel

The Hedgehog Concept (know one thing really well)

Technology Accelerators

Culture of Discipline

Level 5 Leadership (humility and resolve)


Collins, J. (2001). "Level 5 Leadership." Harvard Business Review 79(1): 66-76.

Beckhard’s Change Formula

Dissatisfaction with the status quo (Forces for Change)

x Compelling Vision (Explicit vision) x First Steps (Strategy, Alternatives, Plan of Action) x Believability (Leadership Priority, Adequate Resourcing) > Resistance (Top-Bottom Involvement)

Adapted from: Richard Beckhard & Reuben T. Harris (1987) Organizational Transitions: Managing Complex Change (2nd ed.)

Addison-Wesley, Reading MA (p. 98) and Richard Beckhard & Wendy Pritchard (1992) Changing the Essence: The Art of Creating and

Leading Fundamental Change In Organizations. Jossey-Bass, San Francisco. (p. 75)

D x V x FS x B > R


Robert Quinn

Sustainable Change Requires:

Changing WHAT we do...

Changing HOW WE WORK TOGETHER...

Changing INDIVIDUALLY


Quinn, R. E. (1996). Deep Change: Discovering the Leader Within. San Francisco, Jossey-Bass.

Beckhard and Quinn Combined1. Quinn - Successful

change initiatives address the system , the

culture, and the individual.

2. Beckhard - Successful change initiatives

address the five critical elements of the change

formula: D x V x FS x B > R

Dissatisfactionwith the

Status Quo

CompellingVision

First Steps

Believability

Resistanceto Change

Diagnosis

Design

Transformation

Involve

System Culture Individuals

Integrate


Key Theories and Concepts ?




- Understand the key theories and concepts that inform this process. - Identify what we already know about this type of process.

1. Identify the leading theories.2. Identify the empirical evidence – what works and what doesn’t work.3. Identify the leading thinkers and understand their leading edge ideas.



3. Understand how others have done it - Review Examples to Clarify and Inspire

Creative Thinking“Double-edged Sword”

- Understand how others have done it. - Review example designs to clarify the concepts, applications and inspire the creative thinking.

1. Review conceptual designs during the first round for clarity and inspiration. 2. Use detailed designs when working on the new detailed design in Step 9.

BUG p. 107

Be Role Models

EmpowerTeams

MotivateEmployees

ContinuouslyImprove

AnalyzePerformance

Develop, Reward,

and Recognize

Set Direction

Organize, Plan, and Align

Perform toPlan

StakeholderRequirements

andExpectations

Learn and Improve

CustomerWork ForceSuppliers

CommunityShareholders

1

2

3

4

5

6

Boeing Airlift and Tanker

Boeing Aerospace Support

Vision & Values

Set andCommunicate

Direction

Perform to Plan

Reward & Recognize

Organizational& Employee

LearningOrganize, Plan,

and Align

Be RoleModels

EmpowerTeams

ContinuouslyImprove

MotivateEmployees

Analyze& Compare

CorporateCitizen

Innovation

Teamwork

Agility

Sharing &Supportive

Learning

Diversity

Quality

CustomerSatisfaction

Integrity

INVOLVE AND COMMUNICATE

StakeholderRequirements

& Expectations

• Customer• Work force• Suppliers• Community• Shareholders

Safety

BI

Owners

Office of the President

Strategic Planning Team

Productivity TeamBusiness Team

BI WayBeliefs Purpose

Mission Vision

ACT

PLAN

DO

CHECK

Los Alamos National Bank

Customers

Community

Employees

Shareholders

Budgeting & PlanningA

lignment &

Im

plementation

Evaluation & Measurements

Ref

inem

ent,

Inte

grat

ion

&

Impr

ovem

ent

Sunny Fresh Foods

(2) Establish andCommunicate Clear Values

(1) Determine Requirements and Expectations

(3) Set Organizational Direction

(4) Monitor Performance

(5) Analyze Organizational Performance

(6) Recognize, Reward, Improve

(7) Continuous Business Process Improvement

Communication and reinforcement of values

Communication of results, employee

motivation, and process optimization

Communication of Expectations

Continuous business process improvement

Tata Chemicals

BUG p. 107

Demonstrate Performance Excellence

Commitment to Workforce Excellence

Clinical O

utcomes

Governance &

Ethics

Leadership Developm

entR

ecruitment

RetentionEmployee Wellness & Safety

Recognition & Reward

Career Enhancement

Educ

atio

nD

iver

sity

Com

mun

icat

ion

Financial Performance Societal Accountability

Stak

ehol

der S

atis

fact

ion

Communicate, Align & Deploy

Measure, Review & Adjust

Learn & InnovateEmployees

Medical Staff Partners

Set Strategic Plan & Goals

Suppliers

Plan for Excellence

Patients

Community

Coaching

Requirements for Excellence

Gro

wth

12

3

4

5

6

78

Bronson

BUG p. 109

Common Themes and Learnings




“Double-edged Sword”

- Understand how others have done it. - Review example designs to clarify the concepts, applications and inspire the creative thinking.

1. Review conceptual designs during the first round for clarity and inspiration. 2. Use detailed designs when working on the new detailed design in Step 9.



4. Understand the Organization’s Unique Context

- Understand the organization's unique context.

- Identify the key organizational factors that impact the design of the particular process.

1. Know your organization.

2. Know your stakeholders and what they want.

3. Know your environment - competitors and strategic advantages and challenges.

BUG p. 114

Context - Key Factors

Mission, Vision, Values - Setting values and direction

Ownership structure and organization

Products and Services - tends to drive the types of employees.

Workforce profile is a key input to developing, deploying, and reinforcing the vision and values. In addition, the workforce profile is also a key input when creating the organization environment for innovation, agility, etc.

Culture - values - Tree example v. Boeing example

Strategic Challenges

Performance improvement system described in the profile should be consistent with the environment that is created to support employee and organizational learning and continuous improvement.


Key Factors ?




- Understand the organization's unique context.

- Identify the key organizational factors that impact the design of the particular process.

1. Know your organization.

2. Know your stakeholders and what they want.

3. Know your environment - competitors and strategic advantages and challenges.



5. Identify the Role Model Characteristics that you want embedded into the Design

Visionary Leadership

Systems Perspective

Focus on the Future

Social Responsibility

Customer-Driven Excellence

Agility

Focus on Results and Creating Value

Valuing Employees and Partners

Organizational and Personal Learning

Management by Fact

Managing for Innovation

- Identify the role model characteristics that you want embedded into the design.

1. Choose from established performance excellence principles.

2. Identify new principles unique to your organization, strategy, etc.

BUG p. 11 - 24

Role Model Characteristics

Structure includes parent organization

Two-way communication - many methods

Lead by example

No tolerance policy - ethical and legal violations

MBWA - Senior leaders spend a portion of each day in the departments

Mission, Vision, values prominently displayed - Visual!

Deployed down to each department - with performance plans, measures, etc...


Design Principles ?



University of Northern Colorado - Identify the role model characteristics that you want embedded into the design.

1. Choose from established performance excellence principles.

2. Identify new principles unique to your organization, strategy, etc.



6. Understand how the Process fits in the Larger Organization System

- Understand the organization (enterprise) system.

- How does this process fit within the larger organization system?

1. Identify key inputs.

2. Identify key outputs.

3. Identify key interconnections and relationships with other processes and parts of the system.

Baldrige User's Guide

114

BLUEPRINT

Visionand

Values

Createthe

Environment

DesiredOrganization

Characteristics

Lead

ersh

ip S

yste

m –

Vis

ion

and

Valu

es

SetVision & Values

1.1a (1)

DeployVision & Values

1.1a (1)

ReinforceThrough

Role Model Behavior1.1a (1)

Createan Environment

1.1a(3)

Mission,Vision &Values

PerformanceReview

Participation

AccomplishMission & Strategic

Objectives

P.1a

2.1a 4.1b

PromoteEnvironment That Fosters

& Requires Legal & Ethical Behavior

1.1a(2)


2.1b

1.2b

P.2c

5.1bStrategic

Objectives

Vision & Values

Senior LeaderBehavior

Createa Sustainable Organization

1.1a(3)

PerformanceImprovement

System

Succession Planning &

Development1.1a(3)

LeadershipInvolvement

Demonstrate commitment to living the organization’s values

1.2a

GovernanceSystem

1.2c


Innovation OrganizationalAgility

Organization& Workforce

Learning

Organizational PerformanceImprovement

Environment

- Workforce- Key Suppliers, Partners, and Collaborators- Customers- Other Stakeholders

7.6a

Competitive orRole ModelPerformanceLeadership

5.1b

LeadershipSystem

P.1a

WorkforceProfile

BUG p. 114

Integration Points

1.2a – Senior Leadership and Board Performance Review process.

1.2b – Legal and ethical behavior consistent with the stated values, directions, and expectations.

1.2c – The mission, vision, and values are all key inputs to determining areas of emphasis for community support and involvement.

2.1a – The mission, vision, and values are key considerations when developing strategies described in 2.1a.

2.1b – The actual strategic objectives and the timetable for accomplishing them as described in 2.1b is an important input to creating an environment to foster the accomplishment of strategic objectives.

4.1b – Leaders participation in the performance reviews is also important for reinforcing the direction and priorities.

5.1b – Succession planning

5.1b - Leadership development

Integrated with the listening and learning approaches to improve employee learning

Integrated with the employee recognition program


Key System Linkages

LeadershipSystem

GovernanceSystem

StrategicMgmtSystem

CustomerFocus

Measures& Reviews

Workforce

ProcessMgmt


Key System Integration Points ?




- Understand the organization (enterprise) system.

- How does this process fit within the larger organization system?

1. Identify key inputs.

2. Identify key outputs.

3. Identify key interconnections and relationships with other processes and parts of the system.



7. Understand the Current Process and System

2. Descriptions

1. Mapping- Understand the current process and system.

- Describe the key characteristics of the existing process.

1. Develop a Diagram of “As Is” process (e.g., flowchart).

2. Develop a Table of the details behind each phase, step, etc. - Who, What, Where, When, Why and How + Inputs and Outputs.

BUG p. 111

Current Process Design




- Understand the current process and system.

- Describe the key characteristics of the existing process.

1. Develop a Diagram of “As Is” process (e.g., flowchart).

2. Develop a Table of the details behind each phase, step, etc. - Who, What, Where, When, Why and How + Inputs and Outputs.



8. Understand the Quality and Convenience of the Current Process

- Understand the quality and convenience of the current process.

1. Identify strengths and opportunities for improvement.

2. Identify the maturity level - approach, deployment, learning, and integration.

3. Identify process participant perceptions - what is it like to experience or execute this process? Is it convenient?

BUG p. 113

Maturity Model - Simple View

Operations are characterized by activities rather than by processes, and they are largely responsive to immediate needs or problems.

Reacting to Problems

The organization is at the beginning stages of conducting operations by processes with repeatability, evaluation, and improvement, and some coordination among organizational units.

Early Systematic Approach

Operations are characterized by processes that are repeatable and regularly evaluated for improvement, with learnings shared and with coordination among organizational units.

Aligned Approach

Operations are characterized by processes that are repeatable and regularly evaluated for change and improvement in collaboration with other affected units. Efficiencies across units are sought and achieved.

Integrated Approach



Process Maturity Model

Effective systematic approach fully responsive to multiple requirements

Fully deployed - no significant gaps or

weaknesses

Fact-based systematic E&I, org Learning, analysis, and sharing key org-wide tools

Well integrated with org needs - key factors and

processes

Effective systematic approach - Multiple

requirements

Well deployed - no significant gaps

Fact-based systematic E&I and org learning are key

management tools

Integrated with org needs - key factors and and

processes

Effective systematic approach - Overall

requirements

Well deployed - deployment may vary is some areas

Fact-based systematic evaluation and

improvement process

Aligned with org needs - key factors and processes

Effective systematic approach - basic

requirements

Deployed - some areas in early stages of deployment

Beginning systematic approach to evaluate and

improve key processes

Early stages of alignment with org needs - key

factors and processes

Beginning of a systematic approach - basic

requirements

Early stages of deployment in most areas - inhibits

progress

Early stages of transitioning from

reacting to problems to improvement orientation

Approach is aligned with other processes - primarily

via joint problem solving

No systematic approach Little or no deploymentImprovement orientation no evident - reacting to

problems

No organizational alignment - processes operate independently

Approach Deployment Learning Integration

6

5

4

3

2

1

90 - 100%

70 - 85%

50 - 65%

30 -45%

10 - 25%

0 - 5%

MBNQA

BUG p. 41

Dimensions of Assessment

Quality

Convenience


Diagnosis of Current Process




- Understand the quality and convenience of the current process.

1. Identify strengths and opportunities for improvement.

2. Identify the maturity level - approach, deployment, learning, and integration.

3. Identify process participant perceptions - what is it like to experience or execute this process? Is it convenient?


Process Design Framework

Purpose and Requirements

Theories and Concepts Examples

ProcessDiagnosis

Design andDevelop Context

Process Description

System Perspective

Design Principles



Design

Develop

Imagine!Ideal

DoableConcept

DetailedDesign

Prototype Develop &Deploy

Reflect &Improve

9. Design and Develop


Making the Leap!

Discovery

Diagnosis Design

Development

Critical Thinking Creative Thinking

The Wall

Left Brain Right Brain???


1. As Is

Doable

2. Ideal

Desired Path

3. Doable’

Desired Path

UnlimitedResources &Technology

BudgetedResources &Technology

Imagination

Improvement

Imagine the “Ideal” Design

Example Posters

Ideal Design ?






Next Steps

Detailed Design

Limited Deployment - Prototype

Develop

Training

Full Deployment

2. Descriptions

1. Mapping

Detailed Design

Da Vinci Method


Beckhard and Quinn Combined1. Quinn - Successful

change initiatives address the system , the

culture, and the individual.

2. Beckhard - Successful change initiatives

address the five critical elements of the change

formula: D x V x FS x B > R

Dissatisfactionwith the

Status Quo

CompellingVision

First Steps

Believability

Resistanceto Change

Diagnosis

Design

Transformation

Involve

System Culture Individuals

Integrate



Conditions for Studio Success

People - attitude and diversity - 7 to 10

Facilitation - with ROE

Variety of Media - Low and High Tech

Structure - just enough and no more

Environment - no fear & no inhibitions


Resources

www.baldrigeusersguide.com

www.mcb.unco.edu/monfortinstitute

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Designing a Custom Leadership System: Process Design Studio · 2013. 12. 11. · Deep Change -...

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