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PLAYING TO WINReenergizing Institutionalized Development
Jeffrey Schmidt
Vice President, Research & Development
Carl Zeiss MeditecCarl Zeiss Meditec
WARNINGWARNING
Los Angeles
Salt Lake CityOperations Salt Lake City
Washington DC
Portland
Operations
R&D
Service-Consulting
Singapore
Syracuse
IT
Sales & Marketing
San FranciscoBusiness Management
OBLIGATORY BACKGROUND
When you hold nothing back …When there is no thought of what I might lose …When there is no concept that I could fail …Your singular focus is on achieving the GOALYour singular focus is on achieving the GOAL…
DEFINITION: WHAT IS “PLAYING TO WIN”?
“Consistent and organizedpattern of behaviour or activities (established by law or custom) that is self-regulating) g gin accordance with generally accepted norms.”
Might be how it feels, Might be how it feels, but it is not today’s topic!
DEFINITION: WHAT IS AN INSTITUTE?
DO I WORK FOR AN INSTITUTE?
AM I INSTITUTIONALIZED?
‘ that’s OK ’… that s OK …
‘… enjoy the rest …’SO IF YOU ARE HAPPY WITH THE INSTITUTE …
IF YOU ARE READY FOR CHANGE …
Speed and adaptability of a start-upwith the resources of a market leader
“… all the strengths and none of the weaknesses …
“If only we had their energy, passion,
“If only we had their budgets, customers,
we could create …commitment, speed, ...” channels, portfolio, ...”
A giant Chihuahua?
==++A giant Chihuahua?
The Start Up The Market Leader
MY THREE DECADES EXPERIMENTATION …
NO …
HAVE YOU FIGURED IT OUT?
NPD from 34 months 16 months 9 months
New products exceeding sales and profit targets
4x improvement in field and manufacturing quality4x improvement in field and manufacturing quality
The ‘preferred’ R&D centers for Product Mgrs
6x product output with the same resources
4x more scientific innovation
A hi i B d & CEO fidAchieving Board & CEO confidence
Reestablishing sales confidence
BUT SOME SUCCESS HAS BEEN ACHIEVED …
WHERE TO BEGIN?
Large Enterprise
SMESMEProtecting the GOAL
Start-Up Playing to SCORE
Decline
Playing to WIN
SURVIVESURVIVE
WE ALL BEGAN A START UP, WHAT HAPPENED?
CAN WE BREAK THIS CYCLE?
THREE START-UP GENES …
We are all part of a business ecosystem …
You cannot create a sustainable change if gdependent functions do not change with you.
WORD OF CAUTION …
BELIEF … CONVINCING THE ORGANIZATION
BELIEF … YOU HAVE TO EARN IT
WHAT ARE THEY GOING TO BELIEVE?
I h t I d i In what I am doing …
In the people I work In the people I work …
YOU HAVE TO MAKE IT PERSONAL …
Two approaches …pp
Application:
Share a great enemy
Application:Saved family member
Family has the diseaseHelp not hurt
Application:Community business v competition
Internal attitudes towards team
Share a great cause
“I am tired of losing!”
BELIEVING … “I MAKE A DIFFERENCE”
The ‘Full’ 360° view …
Be consistent Positive energy
Walk the talk Have small wins
BELIEVING … IN THE TEAM
SORTING OUT THE DISBELIEVERS …
reImplementation tools:Title or role changePerformance Plan
recu
ltur
re …
”
Reviews (formal/informal)Individual development plans
U d th t l th t il bl
d on
futu
n ge
t us t
her
The 9 Box Used the tools that were available, sometimes differently than how they were designed
Meas
ured“Can
Measured on today’s results“Can get things done …”
M
THE POWER OF 9 …
61% ↓ in under performance↑65% ↑ in exceptional performance
Leadership began to behave like a team
Challenge: Some of the managers weren’t believers and some weren’t performers so the initial efforts were ‘sub-optimal’
AND THE RESULTS OVER 12 MONTHS …
YOU’VE CREATED BELIEVERS … WHAT NEXT?
THE SECOND GENE THERAPY…
SOMETIMES SUBTRACTION IS EASIER …
Meetings
NOT 0!NOT 0!
ProcessDocumentation ProcessDocumentation
INSTITUTIONAL TIME SINKS …
“Or this?”“Is this your calendar?”
If you spend your d i i days in meetings
you are not getting thi danything done.
PROTECT YOUR CALENDAR …
Later that year…
“What to do?”
Later that week …
Later that month …
CONSENSUS MEETINGS … JUST DON’T GO
#1 Know WHY you are there#2 Add VALUE or LEAVE#3 DECIDE ASSIGN#3 DECIDE or ASSIGN
HALF any standing meeting
Own your calendarOwn your calendar
JUST STOP …
You have a 100 page ou a e a 00 pagestrategy and 200 page business plan p g p… is it helping?
DOCUMENTATION TAKES TIME …
Parses workMakes visual
Tells a storyOnly the essential infoM tl b ll tMostly bulletsFluidic in natureDoubles as a reporting toolDoubles as a reporting tool
WHAT’S A ONE PAGER?
OPERATIONSAssumes: Stability
Business cornerstone:The 3 year strategyThe annual planAnnual objectives
TimeOPERATIONS
OnePage
r
Assumes: Moving Target
OnePage
r
Update EventCollection of 1 pgs creates Plan
THE CHALLENGES WITH CURRENT PLANNING
Responded to a competitive threat in
3 weeks from identification rather than 12-14 months
Cut the business planning cycle by
50% with significant more team more team
participation/buy in
ARE ONE PAGERS VALUABLE?
… and end up here.
We start off here …
WE LOVE OUR PROCESSES …
… results in an SOP.
The complexity of thisprocess ….process ….
SOPS EVOLVE TO TELL PEOPLE WHAT TO DO
… and they stop thinking.
We train people to followthe SOP …the SOP …
WE TRAIN PEOPLE TO FOLLOW PROCEDURE
… they stop.
When a situation is notcovered by the SOP …covered by the SOP …
THE PROCEDURE REPLACES THINKING
R d SOP t th Reduce SOPs to the essential few; then cut essential few; then cut
that in half.
Value Stream Maps and kaizens
THEN SIMPLIFY WHAT’S LEFT
DEVELOPMENT CELLS
MatrixHierarchy
Coordination & communicationFlexibilityComplexity: accountability
Authority & control over resourcesFunctional specializationDistance: decision ↔ execution
RACI MODELOver specifying decisions
Adding ‘everyone’ to the model RACI MODELKeep everyone ‘engaged’
HIERARCHY TO MATRIX …
Evolved Matrix Organization:Portfolio Lifecycle Development Cells
Evolved Matrix Organization:Portfolio of work vs a projectSmaller core team; self selectingAbility to move resources
Small Core Teams (cell)
Small Core Teams (cell)
Portfolio Lifecycle Management Function
yAbility to deviate from process/rulesAbility to make strategic investments
Internal & External Support Teams
Role vs structure driven
SUPPORT team
Investments:Longer term commitments
Return:Start-up responsivenessLonger term commitments
Access to core team membersPlan/process deviationsResponsive to escalations
Start-up responsivenessUltrahigh outputTeam ownership
sp s s sAccept higher failure rates
EVOLVING TO DEVELOPMENT CELLS