Level 5 Leadership and Vision Direction

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Level 5 Leadershipand Vision Direction
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Organizational Challenges
Globalization
Technical Innovation
Deregulation
The New Service Society
Shared Leadership
The New World Order
Knowledge Work and Human Capital
The Leaders Job and the Organizations Challenges
Increase Capabilities of Employees
Intellectual Capital
Competition
Changing Markets
Core Competencies (behavioral)
The New Work Force
Labor Force Demographics
Source Barry A. Macy, Successful Strategic
Change, Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
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Five Levels of Exemplary High Performance
Organizations Level 5 Leadership - 2
Great companies first got the right people on
the bus (and the wrong people off the bus) and
then figured out what direction (vision
direction) the bus would go. They got the right
people on board the bus\and the wrong people off
the bus, the right people in the right seats,
and then figured out how to take it some place
great!
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Five Levels of Exemplary High Performance
Organizations Level 5 Leadership - 1
LEVEL 5 LEVEL 5 EXECUTIVE Builds enduring
greatness through a paradoxical Blend of
personal humility and professional will. LEVEL
4 EFFECTIVE LEADER Catalyzes commitment to and
vigorous pursuit of a clear and compelling
vision, stimulating a higher performance
standards. LEVEL 3 COMPETENT MANAGER Organizes
people and resources toward the effective and
efficient pursuit of pre-determined
objectives. LEVEL 2 CONTRIBUTING TEAM
MEMBER Contributes individual capabilities to
the achievement of group objectives and
works effectively with others in a group
setting LEVEL 1 HIGHLY CAPABLE
INDIVIDUAL Makes productive contributions
through talent, knowledge, skills, and good
work habits.
Source J. Collins, Good to Great, Harper
Business, 2001, p. 20.
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Five Levels of Exemplary High Performance
Organizations Level 5 Leadership - 3
Level 5 leaders channel their ego needs away
from themselves and into the larger goal of
building a great company. Its not that Level
5 leaders have no ego or self- interest. Indeed,
they are incredibly ambitious but their
ambition is first and foremost for the
institution, not themselves.
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Five Levels of Exemplary High Performance
Organizations Level 5 Leadership - 4
In over three quarters of the comparison
companies, Collins found executives who set
their successors up for failure or choose weak
successors, or both.
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Five Levels of Exemplary High Performance
Organizations Level 5 Leadership - 5
In over two thirds of the comparison cases,
Collins noted the presence of a gargantuan
personal ego that contributed to the demise or
continued mediocrity of the company
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Five Levels of Exemplary High Performance
Organizations Level 5 Leadership - 6
Ten out of eleven good-to-great CEOs came from
inside the company, three of them by family
inheritance. The comparison companies turned
to outsiders with six times greater frequency
yet they failed to produce sustained great
results.
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Five Levels of Exemplary High Performance
Organizations Level 5 Leadership - 7
Level 5 leaders look out the window to apportion
credit to factors out- side themselves when
things go well (and if they cannot find a
specific person or event to give credit to, they
credit good luck). At the same time, they look
in the mirror to apportion responsibility, never
blaming bad luck when things go poorly.
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Five Levels of Exemplary High Performance
Organizations Level 5 Leadership - 8
Exemplar Organizations
Good to OK Organizations
Level 5 Management Team (Good-to-Great
Companies) Level 5 Leader First Who Get the
right people on the bus. Build a superior
executive team. Then What Once you have the
right people in place, figure out the best
path to greatness.
A Genius with a Thousand Helpers
(Comparison Companies) Level 4
Leader First What Set a vision for
where to drive the bus. Develop a road map
for Driving the bus Then Who Enlist a
crew of highly capable helpers to make the
vision happen.
Source J. Collins, Good to Great, Harper
Business, 2001, p.47.
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Star Model How Organizational Design Affects
Behavior -2
Strategies

• Major Drivers of High Performance
• 1. Commercial/Customer Changes
• 2. Technological Changes
• Organizational Changes
• Workforce and Societal Changes

Abilities, Skills and mind-sets
Structures
People
Vision Direction Culture, Mission And other 9
dimensions
Systems
Processes (Business People)
Rewards
Information
Motivation
Performance Balanced Scorecard
Behaviors
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Vision Direction Setting Process (VDSP)
External Business Environment Customers
Ours Future
Environment
Business, Product, and Worksite and
Individual Needs
Business Strategies and Givens
Mission/Purpose Statement
Vision Direction (VDSP) (Corporate,
Business, Unit and Site)
Business and People Goals/KPIs
Core Values, Philosophies, Principles
Expectations (Peoples Performance and their
Citizenship)
Organizational Transformation and Design Criteria
Major Inputs for Transformation Transitions Over
Time 1,2,3,4, etc.
Transformation and Redesign Proposals/Changes
B.A. Macy, Successful Strategic Change, Berrett
Koehler Publishers, San Francisco, CA
(forthcoming)
13
G.E. Pooled Financial Services N.A.
Redesigning a White- collar Organization The
Transformation Strategy
Vision Direction Analysis
Recommendation Implementation
CEO
Steering Committee Review and Acceptance
Senior Management Review
Vision Direction Statement Guiding Values,
Philosophies, and Principles (the
Culture) Task Force Selection
Management and
Employee Education
Task Force Training
Steering Committee

• External
• Analyses
• Businesses
• Technical
• Social

Redesign Recommen- dations
Implementa- Tion Strategy
Redesign Task Force
Coordinator and Team Training
HPO Consultants
Centralization Create Centers (Functional Units)
Create Work Teams (Logical Work Units)
Implemen- tation Plan
Coordinator Council
Gradual Transition To Self-Management
Work Teams
Redesign Work Structure And Processes
Redesign Redesign Physical Facility Redesign
Technology Infrastructure Redesign Social System
________________ Source B.A.Macy, Successful
Strategic Change Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
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VISION DIRECTION SETTING PROCESS
1
2
Future State (5 years out) Vision Direction
3
Present State
Gap Analysis
- 12 Dimensions
- 12 Dimensions
(Periodically Needs Renewal)
4
Development of Specific and Operational Action
Plans (2008, 2009, 2010, 2011 etc. in order to
reach Vision Direction 2012)
Source B.A.Macy, Successful Strategic Change
Berrett-Koehler Publishers, San Francisco, CA
(forthcoming)
15
Vision Direction statement
Vision-Direction picture of the future
state-purpose, values, direction and framework.
It is dynamic and constantly evolving. It is not
words but the behaviors that associates see and
feel. It demonstrates the overall direction and
philosophy of the organization.
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Vision Direction statement

• Vision Direction is the difference between short
  term moves and long term change. Vision
  Direction transfers strategies you might have on
  paper into a way of life. Vision Direction
  empowers people to change. Vision Direction
  teaches the elephant to dance. Vision Direction
  paints a picture of where you want your
  organization to go and what you want it to be..
  
• James Belasco Teaching the Elephant to Dance

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The Wedge Model
Stakeholders
Balanced Scoreboard Measurements
XYZ Company
Vision Direction Mission Values
What Has to Change?
Critical Issues
Action Plan
External World
Objectives
Results Economic Value-Added
Environment
Industry

• Suppliers
• Customers (End Users)
• Distributors
• Competitors
• Benchmark Best Practices

Source B. A. Macy, Successful Strategic Change,
San Francisco, CA Berrett-Koehler Publishers
(forthcoming).
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Strategic Planning Model The Wedge/ The Cake
The Vision Direction Setting

• The External
• Business
• Environment
• State of the Business/New Business Development
  and Operating Earnings
• Corporate/S.B.U./ Plant Relationships and
  Manufacturing World-Wide Picture
• Our Current Culture(s)/and Employee Relationships
• The Consumer and Our Competition
• Our Customers and Supply-Chain Relationships
• Technologies
• Plant Operations Performance
• Innovation at Other Companies and High
  Performance Systems

Communication
1. Customers Their Expectations,
Our Expectations, Their Future
Expectations 2. Business Strategies,
Givens, and Goals 3. Needs Business,
Worksite, Teams and Individuals
Vision Direction Setting Package
4.Core Values and Philo- sophies/
Principles 5. Mission 6. Critical Business
Issues 7. Key Success Factors 8.
Techno- logies (11)
BALANCED SCOREBOARD
9. External Relation- ships
(10) 10. Expecta- tions of your
People - Perfor- mance -
Relation- ships at work
Strategy Development and Deployment
11. People Characteristics How Treated
How Utilized 12.Organizational Structures
(18)

• Yearly
• Objectives

• Yearly
• Action

• Yearly
• Review

RESULTS
Gap Analysis
Future Direction 5 years out
Strategies for Transformation
Development of Specific Action Plans
Source B.A.Macy, Successful Strategic Change
Berrett-Koehler Publishers, San Francisco, CA
(forthcoming)
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How does it fit together?
Internal Business Environment Vision Direction
and Strategies
Strategies (Corporate SBUs)
Vision Direction (5 years out) (12 Dimensions)
1st
Business Imperatives
Globalization (External)
2nd
Year 2012 Goals/Success Factors (for KPIs)
Capabilities
Strategic Alliances (External)
Exemplar/ HPWS Org. Design
3rd
Future Work Trends
Barry A. Macy, Successful Strategic Change,
Berrett-Koehler Publishers, San Francisco, CA.
(forthcoming)