Real Strategy or Corporate Theatre with Roger Martin

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REAL STRATEGY or CORPORATE THEATRE

Nordic strategy summit 2016: Roger Martin

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PROGRAMME

09:00 Welcome and introduction

09:10 The Corporate Theatre challenge?

09:30 Playing to Win – Getting REAL on strategy

10:10 Break

10:30 Corporate Theatre detox session – Discussion in small groups

11:00 Panel discussion on key paradoxes in “Getting REAL”

11:20 Building choice-making capabilities – A key enabler for winning

12:00 End of workshop and lunch


FACTS ON STRATEGY & CHANGE


85% of CEOs expect more turbulence and complexity in

the years ahead.

ABOUT

change


90% of the change agenda happens in

“projects”.

33% of all critical change projects are successfully

implemented.

44% don’t understand the change they are expected to

make. 38% understand it, but don’t agree with it.

14% of all employees in organisations consider

themselves fully engaged.

ABOUT

change projects


58% of leaders have a top-down approach to strategy with limited

involvement of employees.

70% of “not successful”transformations were planned

by 10 or fewer people.

The main barrier to execution success is:

“Creating meaningfulness to front-end employees”.

30% of employees receive no information

about how to execute the strategy.

ABOUT

strategy

50% of leaders can explain their company strategy, priorities

and must-win battles.

8

“Top management mindset” and “top-down hierarchy” are evaluated a key

barrier to successful change, but not by top management respondents.

ABOUT

leadership

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Sources for Facts on Change

› Black, J. S. (2013). It starts with one: Changing individuals changes organizations. Pearson FT Press.

› Cabrey, T. S., Haughey, A., & Cooke-Davies, T. (March 2014). “PMI’s pulse of the profession in-depth report: Enabling organizational change through strategic initiatives”. Project Management Institute. www.pmi.org/~/media/PDF/Publications/Enabling-Change-Through-Strategic-Initiatives.ashx

› “Capitalizing on complexity” (study, May 2010). IBM Institute for Business Value. http://public.dhe.ibm.com/common/ssi/ecm/gb/en/gbe03297usen/GBE03297USEN.PDF

› Ewenstein, B., Smith, W., & Sologar, A. (July 2015). “Changing change management”. McKinsey & Company. www.mckinsey.com/insights/leading_in_the_21st_century/changing_change_management

› “Global executive survey on culture and change management” (2013). The Katzenbach Center.

› “How to beat the transformation odds” (survey, April 2015). McKinsey & Company. http://www.mckinsey.com/insights/organization/how_to_beat_the_transformation_odds

› “Innovation survey” (2009). Bain & Company.

› Jorgensen, H., Bruehl, O., & Franke, N. (August 2014). “Making change work … while the work keeps changing: How change architects lead and manage organizational change”. IBM Institute for Business Value. http://public.dhe.ibm.com/common/ssi/ecm/gb/en/gbe03618usen/GBE03618USEN.PDF

› Rick, T. (May 2011). “Top 12 reasons why people resist change”. http://www.torbenrick.eu/blog/change-management/12-reasons-why-people-resist-change/

› “Risk history survey” (2013). Bain & Company.

› Sull, D., Homkes, R., & Sull, C. (March 2015). “Why strategy execution unravels – and what to do about it. Harvard Business Review. https://hbr.org/2015/03/why-strategy-execution-unravelsand-what-to-do-about-it

› “Thought leaders survey” (2013). Implement Consulting Group.

› Towers Perrin (2014). Employee engagement/global workforce study.


CHALLENGE?

THE

Corporate Theatre


Corporate Theatre

Steering committee

Performance management

Strategy process

Budget process


The management model for “efficiency” is not appropriate for “innovation”.

Paradigm shift

Passion vs. compliance


No. 1 challenge

Democratise choice-making

Empower, engage, choice cascade, self-management, distributed authority and trust in the collective intelligence.


No. 2 challenge

Humanise the organisation

Realness, work is fun, bring all of who we are to work, real conversations, communities of

passion, leaders as social architects of meaning.


More speedMore authenticity

More passionMore impactMore agility

REALCHANGE

REALSTRATEGY


Reinvent “project management”:On average, projects can deliver

double the impact in half the time.


95% of managers are dissatisfied with their performance management systems

Performance management

59% of employees feel that reviews are not worth the time invested

60% of companies report that their annual budget targets become obsolete by the second quarter

46% of senior finance professionals believe their budget is a politically agreed number – not linked to operational reality

Budget

11% of senior executives of companies with more than $1 billion in sales believe strategic planning is worth the effort

Strategy

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ROGER MARTIN Playing to Win – Getting REAL on strategy

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Strategy versus Corporate Theater

Implement Consulting Group

@RogerLMartin


Copyright © 2016 Roger L. Martin

STRATEGY IS THE ANSWER TO 5 QUESTIONS

What is our winning aspiration?

Where will we play?

How will we win?

What capabilities must we have?

What management systems are required?



THE HEART OF STRATEGY


Where will we play?

How will we win?





STRATEGIC PLANNING

Study Lots of Things

Develop Saleable Options

Forecast Financials for Options

Get Consensus of Key Managers

Polish the Proposal

Sell Hard to Senior Management

Tell the Organization to Execute the Plan



STRATEGY CHOICE MAKING

Problem Reframe the Problem as a

Strategic Choice

Possibility 1

Possibility 2

Possibility 3

Possibility 4

Possibility 5

Barriers Tests Decide

What Would Have to Be True?


MAKING CHOICES IN ORGANIZATIONS

What is true?

What would have to be

true?

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Corporate Theatre


THEATRE

A lengthy 3+ month process

Effective lockdown of the organisation – everybody is “doing the budget”

Detailing sales forecasts to an individual product level on a 3-year horizon – in a fictional search control

BU managers are routinely sandbagging for resources

Admin-light

Open and reasoned

prioritisation across BUs

Focused on the most important choices

Revealing implicit

assumptions

The budget process


THEATRE

The 3-year ritual – our current strategy period is running out, so we need a new one …

BU managers develop saleable options – then polish the slide deck and sell hard to senior management, hoping for a minimum of input

Focus on theoretical where-to-play “gameboard” discussions - detached from how-to-win

Fictional business cases to satisfy upper-level management

Many discussions – no real choices

Slow one-size-fits-all decision-making style

Obsessive, yet unfocused, data analyses

Strategy for the few – no involvement or engagement – entirely separated from execution

Leaves the organisation waiting in apathy for the new strategy

PowerPoint fatigue – town hall “telling” meetings

The strategy process


Conscious cascading of

choices between levels

Curious conversations

Assumption-heavy –

focused on the strategic logic

Strategising when

circumstances change Prototyping

“what could that option look like?”

Choice-focused

How-to-win-focused

Focused deep dive analyses

The strategy process

Separate non-reversible from reversible

decisions


THEATRE

Focused on deliverables

Unclear vision of impact on behaviour and business

No subject matter expertise

Half-hearted resource allocation

Leaders are far away from the project

PMO is tick-marking templates

Watermelon syndrome in steering committee

Scope freeze – even when circumstances change

Project governance Leaders

deeply involved

Choice-focused

Projects are impact-driven

Steering committee

truly removes

roadblocks

Daring to re-scope


THEATRE

Backward-looking and focus on lagging indicators, typically financial

Problem-focused dialogue – why didn’t we meet the targets or milestones?

Exclusively focused on running the business

Curious dialogue

about root causes

Focused on helping

Focused on leading indicators

Appreciative – builds on what works

Business review


Hardwiring Softwiring

Do we have real and meaningful conversations in key touchpoints?

Do our core processes embody speed, impact and engagement?

Corporate Theatredetox

– two lenses


Slow andcomplex

Fast andsimple

SPEED

HARDWIRING

Are your core processes …

The acid testDo our key processes drive passion and engagement?

ENGAGEMENT Fun and meaningful

Energy-draining

Compliance-focused

Choice-focused

IMPACT

AGILITYRigid andbureaucratic

Flexible andhelpful

The acid testDo we look forward to meetings and leave with energy and engagement?

An exchange ofpoints of view

A curiousconversation

CONVERSATION

EXPERTISE Filled with subject matter mastery

Filled withincompetence

Problematisingand mistrusting

Appreciative,warm and caring

RELATIONS

ENERGYDisengaged Engaged

SOFTWIRING

Are your key meetings …



Corporate Theatre diagnosis1. Scan the list of processes under “hard-wired systems”

– and select the 3 most relevant ones for your company

2. Make a scoring of each of these processes on the four dimensions

3. Reflect for each process on what the main barriers are for you to get more Real – and less Theatrical

4. If time permits, repeat the same steps when diagnosing meetings under “soft-wired systems”

5. Share and discuss reflections with the person next to you


DIAGNOSING THE HARD-WIRED SYSTEM

1. Strategy process

2. Budget process

3. Business review process

4. Performance management process

5. Market guidance process

6. Project governance process

7. Product development process

8. Production capacity planning

9. Sales and marketing process

Speed

Slow andcomplex

Fast andsimple

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Engagement

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Energy-draining

Fun and meaningful

Impact

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Compliance-focused

Choice-focused

Agility

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Rigid andbureaucratic

Flexible andhelpful


BARRIERS

1. Strategy process

2. Budget process

3. Business review process

4. Performance management process

5. Market guidance process

6. Project governance process

7. Product development process

8. Production capacity planning

9. Sales and marketing process


DIAGNOSING THE SOFT-WIRED SYSTEM

1. Market guidance meetings

2. Board meetings

3. Strategy meetings

4. Budget meetings

5. Business review meetings

6. Business unit meetings

7. Steering committee meetings

8. Project meetings

9. Performance appraisal meetings

An exchange of pointsof view

A curiousconversation

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Conversation

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Filled withincompetence

Filled with subject matter

mastery

Expertise

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Problematising and mistrusting

Appreciative,warm and

caring

Relations

1 5432

Disengaged Engaged

Energy


BARRIERS

1. Market guidance meetings

2. Board meetings

3. Strategy meetings

4. Budget meetings

5. Business review meetings

6. Business unit meetings

7. Steering committee meetings

8. Project meetings

9. Performance appraisal meetings

ROGER MARTIN Building choice-making capabilities

– A key enabler for winning



Leadership in Strategy

Implement Consulting Group

@RogerLMartin



STRATEGY IS THE ANSWER TO 5 QUESTIONS


Where will we play?

How will we win?





CORPORATE STRATEGY CHALLENGE: NESTED CASCADES

How to Win

Management Systems

Winning Aspiration

Capabilities

Where to Play

How to Win

Management Systems

Winning Aspiration

Capabilities

Where to Play

How to Win

Management Systems

Winning Aspiration

Capabilities

Where to Play

How to Win

Management Systems

Winning Aspiration

Capabilities

Where to Play

How to Win

Winning Aspiration

Where to Play

Capabilities



MAKING CHOICES ACROSS MULTIPLE CASCADES

1. Make only the set of choices you are more capable of making than anyone else

2. Explain the choice that has been made and the reasoning behind it

3. Explicitly identify the next downstream choice

4. Assist in making the downstream choice, as needed

5. Commit to revisit and modify the choice based on downstream feedback


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KEY LEARNINGS AND TAKEAWAYSFROM TODAY’S SESSIONS


IDEAS THAT WE SHOULD APPLY TO OUR ORGANISATION

48

Notes

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49@implcg #implsummitImplement Consulting Group


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Date post:	08-Jan-2017
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