Douglas Reid

dreid@business.queensu.ca@douglasreid

Fundamentals of Strategy:OperationalLeadership

FCMBMarch, 2011

Goals for the session

Today…

Where have we been?

Customer willingness to pay

Cost of delivering

what the customer buys

Strategy

Implementation happen primarily by changing the allocation of resourcesconsistent with objectives

Any non-human assetof an organization thata manager can deploy

Brands, equipment, IP, licenses, machinery, information, etc.

Money

People Skills

Time Duration, sequence and project choices to which you apply the money and people that you have

To become a more effective leader, I will…

Do more of…_______________________________________________________________________________________________

Do less of…_______________________________________________________________________________________________

Start doing…_______________________________________________________________________________________________

Stop doing…_______________________________________________________________________________________________

Misalignment

Why do disconnects between strategy and operations occur? Where do they occur?

Misalignments are properties of systems…

…not of individuals.

Performance: Expectations

Performance: Why before what

Delegation: Outcome defined

Delegation: Importance and urgency communicated

Delegation: Reasonable deadline set

Delegation: Decision rights set

Delegation: Resources

Accountability: Measures

Accountability: Reporting process and frequency

Accountability: Handling exceptions

Performance Expectations

Delegation Outcome defined

Importance and urgency communicatedReasonable deadline set

Decision rights set

Resources

Accountability Measures

Reporting process / frequency

Handling exceptions

AssignmentIn your groups, select and describe one important, but hard to fix misalignment between intended strategy and realized outcome at FCMB.

When called upon, deliver a short presentation (time to be decided):

* What is it? Why does it matter? To whom?(Hint: effect on willingness to pay, cost)

* If it were fixed, what would be the effect on FCMB’s performance?

* How to fix it?

(Hint: what changes would you make to: expectations, clear outcomes, importance and urgency communicated, reasonable deadline, decision rights, resources, measures, reporting process/frequency, handing exceptions)

Do you see any patterns?

"A leader is best when peoplebarely know he exists…Not sogood when people obey and acclaim him; worst when they

despise him."

Lao Tzu, 630 B.C.

Question: Is this statement still relevant today? Why? Why not?

What outcomes can leaders create that managers cannot?

Source: Conger and Benjamin

Leadership: The set of processes that initiates and adapts the organization to significant change

Management: The set of processes that keeps existing systems running smoothly

Brief history of leadership

Behavioural

Trait

Situational

Transformational

Power

Leaders influence

The Six Principles of Persuasion

• Reciprocity• Scarcity• Authority• Consistency• Consensus• Liking

"I don't know.”

"I was wrong.”

"I'm sorry.”

"Would you help me?”

"What do you think?”

"What would you do?”

"Could you explain this to me? I'm not sure I get it."

Trust

Use of time

What signal are you sending?

Tenacity

What will you NOT tolerate?

Let’s summarize

Tomorrow…