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7 August 2003
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
This material was used by McKinsey & Company during an oral
presentation; it is not a complete record of the discussion.
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CONTENTS
• Introduction
• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts
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• Organizations change most effectively when individuals change their mindsets and behaviors. Change
programs that do not address mindset and behavior shifts may work for some time, but they generally do
not achieve lasting change. Therefore, changing mindsets and behaviors should be one of the major aims
of any change program. The Influence Model describes how this change can be driven.
• The Influence Model consists of four key levers to shift mindsets and behaviors:
- role modeling
- fostering conviction and understanding
- reinforcing with formal mechanisms
- developing talent and skills
• For each of the four influencers there are specific levers that can be used to define the set of actions that
will lead to the desired change. Most effective change programs will incorporate complementary and
consistent actions from all four influencers.
• The Influence Model is a practical and flexible tool. It is an integral part of the Performance Leadership
framework, but it can also be used alone. Teams working on change projects can use it as a framework for
developing concrete, tangible ideas to translate future plans into something actionable as the Influence
Model addresses a step typically missing in many change programs – development of explicit actions to
influence mindset and behavior change. Teams have also used the Influence Model as a diagnostic tool to
gain insights into the conditions for lasting change and the potential barriers to it.
• This pack briefly explains how the Influence Model fits with the Performance Leadership approach and then
provides a general introduction to the model and how teams can use it. The appendix includes theoretical
background, a number of case studies and further sources of information.
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CONTENTS
• Introduction
• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts
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The Influence Model forms the second phase of the Performance Leadership approach
Where are you today and What do you need to How do you lead the
where do you want to go? do to get there? implementation?
Direction
Role-modeling Fostering
Account-
ability
Coordination
& Control understanding
and conviction
External
Behavior
Orientation
Leadership Innovaton
and mindset
shifts
Developing Reinforcing
Capability Motivation talent with formal
and skills mechanisms
Environment &
Vaues
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CONTENTS
• Introduction
• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts
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The Influence Model consists of four change levers designed to shift mindset and behaviors
Role-modeling Fostering
“I see superiors, peers understanding and
and subordinates conviction
behaving in the new way” “I know what is
expected of me – I
agree with it, and it
is meaningful”
Mindset &
behavior
shifts
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Each change lever can be broken into a number of more actionable categories
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• Setting an example of exemplary • Increase visibility of leaders through regular staff interaction
Leadership behavior in day-to-day interactions • Create forums for leaders to interact with the rest of the organization
actions with subordinates • Use symbolic language and actions to emphasize importance of the desired change
to customers and employees
• Rebalance time commitments to emphasize priorities
• Engage leaders in work in-line with organizational priorities
• Provide feedback and/or personal development workshops to improve style/EQ
• Use action learning and leadership dialog process to align leadership group around
corporate values
• Evaluate managers on their attention to company values
• Enlisting the support and involvement • Identify influential stakeholders from all levels of the organization
Opinion of influential stakeholders at all levels • Understand reasons for resistance
shapers of the organization to assist in • Appoint formal ‘change champions’
shaping the desired behaviors • Change team composition to include key opinion leaders in change processes
– Formal leaders • Appoint formal top management initiative ‘sponsors’
– Informal leaders • Ensure top management ownership of change through linkage of program
– Champions or change leaders success to their evaluation and rewards
• Task change agents to carry the message to their environs (e.g., BU, team, etc.)
• Develop strategies to explicitly address the needs and concerns of influential
organizational members
• Explicitly seek the support and involvement of opinion shapers in the design of
the change process – ensure involvement of influential ‘resistors/detractors’
• Remove ‘blockers’ from key positions
• Ensuring that group dynamics are • Improve quality of direction, interaction and renewal
Interactions effective in pivotal performance – Identify and agree on team roles & priorities
groups – Encourage inquiry and reflection within groups
– Spend time analyzing the root causes of problems
– Provide coaching to individual members
• Understand current degree of alignment around corporate story/change agenda
– Open discussion forums
– Conduct consensor workshop
• Encourage team alignment by engaging groups in real work
* For further information please refer to The Influence Model: Creating Context Specific Initiatives to Change Mindsets & Behaviors 9
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• Articulating, updating, and integrating • Develop story plot to include case for change
Story key elements (e.g., strategy, case for • Update mission/vision to align with organizational agenda
development change, vision) needed to align the • Develop corporate story by including key people in story
organization to achieve performance development (e.g., pivotal players, opinion shapers)
objectives into compelling, energizing • Conduct audience analysis and develop variants of the story for
and meaningful stories different levels/audiences (e.g., top team, R&D, frontline)
• Recasting the change/transformation
plot in dramatic terms of a rallying cry
with the intent to energize and entice
members of the organization for
addressing change
– Why do we need to change?
– Is the suggested change right?
– Are we capable of doing it?
– Who is supporting this?
– What’s in it for me?
Story • Communicating and cascading the • Communicate the story in different forums, e.g.,
delivery story throughout the organization in – Corporate event
order to reach and energize all the – One day off-site
members – Management workshop
– Leadership council
• Measuring understanding, reinforcing, • Communicate the story in different formats, e.g.,
and updating the story based on the – Memos
organizational agenda and reception – Visual representations (e.g., intranet, carry-cards, posters,
of the story in the organization banners)
* For further information please refer to The Influence Model: Creating Context Specific Initiatives to Change Mindsets & Behaviors 10
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Organization
Organization • Changing the organization structure, decision • Flatten organization into numerous performance units with P&L responsibilities
structure
structure rights and responsibilities, and coordination • Redesign roles and responsibilities of Board of Directors
mechanisms that formally dictate interactions • Revise top management job descriptions
• Redistribute decision rights
Targets
Targets and
and • Setting up individual and organization-wide • Identify BU/corporate targets which reinforce the strategy
metrics
metrics performance goals necessary to reach or • Identify value drivers and set performance metrics (KPIs) at the BU/corporate
exceed aspirations level
• Translate corporate/BU objectives into individual targets and KPIs
Management
Management • Aligning management processes (including • Redesign operations planning processes
processes
processes strategic, operational and people planning and • Emphasize financial performance reviews
review and knowledge management • Transfer best practices between divisions
processes) and systems with the mission and • Institute individual performance appraisal and feedback systems
key value drivers • Incorporate knowledge sharing metrics into individual scorecards
Business
Business • Reducing costs, improving quality and • Build cross-functional procurement teams
processes
processes decreasing process times by redesigning • Consolidate R&D activities
business processes such as new product • Set up key account teams
development, customer management,
procurement, etc.
Rewards,
Rewards, • Motivating individual and group performance • Institute ‘’pay for performance’ system
recognition
recognition and
and and aligning employee interest with the • Institute meaningful non-financial rewards, team rewards (e.g., extra
consequences
consequences organization’s objectives through financial vacation days)
and non-financial incentives and consequence • Tie at-risk pay to individual performance as well as corporate performance
management • Provide promotion opportunities to high performers
Information
Information
• Enabling tighter coordination, enhancing • Install enterprise-wide MIS system for performance reporting/management
systems
systems
access to information, redesigning business/ • Develop intranet system for knowledge capture and sharing
organizational models, and improving front- • Build decision support systems to assist customer-facing functions
line performance through investments in
technology
* For further information please refer to The Influence Model: Creating Context Specific Initiatives to Change Mindsets & Behaviors 11
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Hiring • Selecting and placing individuals • Define and communicate an employee value proposition
into jobs (including temporary • Hold managers accountable for the quality of their talent pool
support such as consultants) • Map high value jobs to high value people
Talent upgrading
Retaining • Reducing the voluntary departure • Assign top talent to good managers
of top performers • Use long-term incentives, stock grants or options to encourage
tenure
• Track attrition levels and work to maintain an attractive value
proposition
• Shape work content and environment to excite, motivate, and stretch
high performers
• Embedding development •• Offer most attractive development opportunities to high performers
Explicitly evaluate and reward managers based on their skills and
On-the-job
On-the-job opportunities within operational job commitment to coaching
development
development assignments, or providing • Post internal transfer opportunities on bulletin board
development conjunction with these • Assign a mentor to every new employee based on common background
assignments • Create “development plans” for “top 50”
• On-the-job developmental activities • Promote job rotation and cross-functional transfers
Learning
include coaching, mentoring, job • Develop individualized assistance and action plans for underperformers
rotation, and special assignments,
etc…
Before going into implementation planning the final set of actions needs to be checked
Note: While each initiative is resident under one lever, it may impact more than one element (e.g., stories impact direction, leadership, and
environment) 13
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CONTENTS
• Introduction
• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts
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• A few teams have used the Influence Model as a starting point for developing diagnostic tools or
surveys. Questions structured around the four change levers can help to identify areas in which changes
need to be made in order to accomplish behavior and mindset shifts and build the conditions for lasting
change.
• The following section shows a series of sample questions that have been used in various client settings.
Teams may decide to use these questions and, if needed, tailor them to the specific needs of the client,
or they may decide to develop their own set of questions based on the four change quadrants of the
Influence Model.
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Mindset
and behavior
shifts
• Are the requirements defined that employees • Have strategies been developed to achieve the vision/goal,
and executives must meet in the future (target Developing talent Reinforcing with with clearly formulated milestones along the way?
profile) in order to effect change and make it and skills formal mechanisms
sustainable? • Do the current area-specific strategies match the company's
overall strategy?
• Is the current level of skills among employees
and executives known and recorded? • Are the management systems aligned to the envisioned
changes, e.g., policy deployment, KPIs, incentives, job profiles,
• Are employees and executives sufficiently job appointments, organization structure?
qualified for new tasks/ processes
(actual/target profile gap analysis)?
• Have the processes and information systems been adapted to support the
• Have qualification activities (e.g., training) been derived from the results envisioned changes?
of the actual/target gap analysis?
• Have the necessary investments to adjust the structure/systems been taken into
• Have placements been specified based on the actual/target gap account?
analysis?
• To what extent is top talent already filling the positions that are critical
for success?
• Is the top team capable of handling resistance from the organization
constructively?
• Do the internal project leaders have the necessary project management
skills (for the overall program and sub-projects)?
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CONTENTS
• Introduction
• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts
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Larry Bossidy's discussion about making change touches on the four change levers of the Influence Model
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Recognized business leaders engage in a range of actions similar to components of the Influence Model
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CONTENTS
• Introduction
• Appendix
– Theoretical Background
– Client Case Studies
• Transportation company
• Financial services group
• UK Petroleum company
• US Petroleum company
• Electric Utility
• UK Retail Bank
• Asia Pacific Bank
• Pricing
– Case study of influence model as diagnostic tool
– Outside- In Case Studies
• Nissan
• BAE Systems
• Further readings and contacts
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• Initial diagnostic using the OPP Survey, interviews and fact-based analysis identified
Themes for three principal themes to be addressed:
change - Align the new organization around a common direction
- Embed effective coordination and control mechanisms throughout the organization
- Develop the people capabilities required for effective delivery
• The top team was identified as one of the priority groups to focus on, in order to
Kicking off establish a clear, common direction for the new organization and to role model effective
the change interaction, integration and accountability.
Designing
• Each theme was broken down into the necessary outcome changes and corresponding
behavior and mindset shifts.
effective • The Influence Model was then used to identify a set of actions aimed at closing existing
actions performance gaps and bringing about the desired changes.
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From… To…
• Lack of clear and • Clearly defined and implementable Common
Outcome implementable common Transport Strategy and business strategies
strategy (Bus, subway etc.) in place and
• Employees unclear where communicated throughout the organization
TransportCo is going or how • All employees understand the Common
their business/team fits in Transport Strategy, the business plan and
• Top team not seen to interact their business strategies and what role they as
effectively as a team by peers individuals/ teams/ businesses play in its
or immediate reports delivery
• Top team members act as a role model to the
Align organization of a unified team with delivery of
organization Common Transport Strategy and business
around plan as common goal
common
direction
Behaviors • Top team not communicating • Top team decisions are systematically and
consistent messages to wider consistently communicated to direct reports
organization and cascaded as appropriate to allow fully
• Top team not encouraging informed management activities
participation or incorporating • Employees interact effectively with senior
input from wider organization managers to share ideas and contribute to
direction of the organization
From… To…
Outcome • Unclear roles and • Clear roles and responsibilities for top
responsibilities team members and their respective teams
• Performance management • Performance management contracts used
targets disconnected from effectively to support delivery of strategy
overall strategy and not • Comprehensive and integrated system of
supported by direct management processes in place to
consequences for under/over support top team activities
performance
• Top team not supported by
adequate management
Embed
processes to deliver
coordination
and control
throughout Behaviors • Little encouragement by top • Top team members role model
organization team of collaboration among collaboration among themselves and
businesses and functions actively encourage collaboration
• Top team participates in and throughout organization
accepts ineffective • Top team engages in and continuously
management processes shapes new and effective management
processes
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Outcome • Top team lack key skills (e.g. • Top team has skills to interact as a high
direction setting and performing team
interpersonal) to operate at • External skills used to complement
full potential increased internal leadership capabilities
• Over-reliance on external
skills
Behaviors • Top team members • All members of the top team able to
demonstrate variable skill in consistently engage in effective
Develop using existing tools effectively management processes
capability • Top team members use • Top team members are aware of and able
to deliver different leadership styles to use a range of leadership styles
inappropriately causing lack of effectively in different contexts
clarity and cohesion
Mindsets • I always have to speak • I trust others to take the lead because I
because other people aren’t know they are well prepared
prepared for our meetings • I feel discussions are well balanced and
• I never get the chance to well moderated and I can contribute
speak or I engage ineffectively freely
because other people • We hold challenging debates without
dominate the floor people reacting defensively
• I’m scared to challenge in case
I’m seen as being antagonistic
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The Influence Model was used to identify a set of actions aimed at closing existing performance gaps
and bringing about the desired changes
INTEGRATED INFLUENCE MODEL TRANSPORTATION COMPANY CASE STUDY
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• Leadership actions
– Included values dimension in the
CEO evaluations of top 100
• Opinion shapers
– Trained storytellers to tell the story
in their environments using the
visual representation provided on
the corporate intranet • Story development
– Used repeated exposure to story – Developed basic story around strategy and
and peer pressure to persuade 5 core values in top team workshops
potential blockers Role-modeling Fostering – Encouraged BUs to come up with own
• Interactions understanding and versions of the story in high performance
– Used facilitated workshops with workshop days
cross-BU and cross-function conviction • Story delivery
participants to increase levels of • Communicated changes and
trust and collaboration, and create a enhancements to HR processes
sense of interdependency (e.g., – Leaders shared 360º review outcomes with
personal transformation, trust staff to tell story of own leadership journey
exercises) Mindset
and behavior
• Talent upgrading shifts • Rewards, recognition, and consequences
– Hiring: Increased graduate intake, – Established calibration meetings in which
Introduced requirement that staff managers agree in advance what
must have college education to
Developing talent Reinforcing with performance management scores mean in
become manager and skills formal mechanisms rating their people
– Retaining: Introduced internal job – Made remuneration process more
market for everyone with tenure >1 transparent by making ranking known to
year, Established program focused employees; enabled managers to have
on learning and networking for star “hard conversations” based on facts
performers – Established bottom 5% rule to remove
• Learning underperformers
– Training: Provided training for • Information systems
managers on coaching and – Created internal job market website
conducting open and honest – Introduced e-enabled tools that support line
performance and development managers in delivering meaningful,
discussions, Developed e-MBA effective, and efficient performance review
program in conjunction with feedback
University for staff
– Action learning: Used management
workshops to hone people skills
(e.g., executive coaching on
providing feedback)
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THEME TWO – CREATING OPENNESS AND TRUST FINANCIAL SERVICES GROUP CASE STUDY
• Story development
– Included “earn the trust of the
• Interactions community” amongst the 5 core values
– Used facilitated workshop program • Story delivery
for the top team, significant portion – Told story in transparent way to
of which was focused on Role-modeling Fostering external forums, analysts etc
encouraging trust, openness, and understanding and – Used consensor and interactive
readiness to dissent conviction keyboard tools in senior team
– CEO revealed his 3 major workshops to encourage open
weaknesses from 360º feedback discussion and dissent
in interview with press – Tied all communications of business
decisions to values
Mindset
• Learning and behavior • Organization structure
– Action learning shifts – Increased transparency through
– Used targeted exercises in top delayering
team workshops, such as • Rewards, recognition, and consequences
Developing talent Reinforcing with
-Set up trust framework and – Created consequences through
encouraged self-rating against it by and skills formal mechanisms
remuneration systems for top team
the participants, followed by sharing
members not living the values
perspectives in pairs on each
element
- Held group discussions on overall
strengths/ weaknesses of the team
using dots-on-chart exercise (green
for strength, red for weakness)
- Used interaction improvement
exercises
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and behavior
shifts • Organization structure
• Learning – Atomized the organization by creating 15+
– Action learning: Held series of specialized BUs with significant autonomy, but
workshops and modules which to date Developing talent Reinforcing with guided by “One Bank” philosophy
involved over 2,000 of 20,000 and skills formal mechanisms – Increased transparency of performance
employees (includes all senior perceptions from the market to specialized BUs
management) to promote mindset and (e.g. true segment reporting) and higher profile
behavior shifts in a collaborative for BU leaders (e.g. photos on results pages)
environment, Developed management • Targets and metrics
leadership skills in workshops (e.g., – Increased transparency through monthly
executive coaching) performance reporting by BUs
• Management processes
– Tied decision-making process to the core
values
– Established allocation of funds through BU
bidding system
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• CEO spends a day a month working • Included “put our customers first” as the
in a bank branch – ‘be a concierge for
Role-modeling Fostering first of the 5 core values
a day’ program instituted for senior
leaders understanding and • Used presentations and pilot frontline
conviction workshops to communicate and embed the
• CEO publicly offers to buy rural
branches when rival announces their theme
closure – tells media this is to “live up • Held landmark conference for top 100 in
to our values” of putting customer first personal banking BU including video of
customers talking about the bank
Mindset • Refer to branches as ‘stores’
and behavior
• Instituted sales effectiveness program shifts • Introduced “quasi-franchise” approach to
to build business planning and customer branch districts to improve local autonomy –
acquisition skills in frontline districts moving to ‘200+ P&Ls’
• Planned and executed as local Developing talent Reinforcing with
• Changed remuneration for frontline from
initiatives to promote local ownership of and skills formal mechanisms transactional to total customer profitability
issues model
• Introduced CRM process to deliver planning
information to the frontline in a timely fashion
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• Story development
– Included “perform and grow to create
value for our shareholders” as one of
the 5 core values
Role-modeling Fostering • Story delivery
understanding and – Introduced an e-based visual
• Interactions conviction representation of the corporate story to
– Used facilitated workshop communicate all the elements of the
program for the top team, story, including long-terms goals, BU-
significant portion of which was specific programs, etc.
focused on developing “AND” – Tied all decisions communication to
mindset to underpin growth Mindset values
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FINANCIAL SERVICES GROUP CASE STUDY
INTEGRATED INFLUENCE MODEL
• Leadership actions • Story development
– Included values dimension in the CEO – Developed basic story around strategy and 5 core
evaluations of top 100 values in top team workshops
– CEO spends a day a month working in a – Encouraged BUs to come up with own versions of
bank branch – ‘be a concierge for a day’ the story in high performance workshop days
program instituted for senior leaders • Story delivery
– CEO publicly offers to buy rural branches – Used consensor and interactive keyboard tools in
when rival announces their closure to“live up senior team workshops to encourage open
to our values” of putting customer first discussion and dissent
• Opinion shapers – Leaders shared 360º review outcomes with staff to
– Trained storytellers (selected change agents tell story of own leadership journey
from all levels) to tell the story in their – Used workshops and visuals to deliver story
environments using the visual representation Role-modeling Fostering – Reinforced delivery
provided on the corporate intranet understanding and • Each participant receives diploma and key card
– Used repeated exposure to story and peer with 5 top values only after attending relevant
pressure to persuade potential blockers conviction workshops
• Interactions
– Used facilitated workshops with cross-BU
and cross-function participants to increase
levels of trust and collaboration, and create a
sense of interdependency (e.g., personal
transformation, trust exercises) Mindset
• Talent upgrading and behavior • Organization structure
– Hiring: Increased graduate intake, New shifts – Atomized the organization by creating 15+ specialized
BUs with significant autonomy, but guided by “One
requirement that staff must have college
education to become a manager Bank” philosophy
• Targets and Metrics
– Retaining: Introduced internal job market for Developing talent Reinforcing with – Established specific/tailored “perform” and “grow” set
everyone with tenure >1 year, Established
program focused on learning and networking and skills formal mechanisms of objectives for each specialist BU
for star performers – Increased performance transparency through new
• Learning monthly BU results reports and higher profile for BU
– Training: Managers taught how to improve leaders (photos on results pages)
coaching and conduct open and honest • Rewards, recognition, and consequences
– Created remuneration consequences for top team
performance appraisals
– Action learning: Held series of workshops and members not living the values
– Established calibration meetings in which managers
modules which by April 2002 have involved
agree in advance to what performance management
2,000 of over 20,000 employees (including all
scores mean in rating their people
senior management) to promote mindset – Made remuneration process more transparent by
shifts in a collaborative environment making ranking known to employees; enabled
managers to have “hard conversations” based on
facts
• Information systems
– Created internal job market website
– Introduced e-enabled tools that support line managers
in delivering meaningful, effective, and efficient
performance review feedback
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Mindset
and behavior • Initial change to the asset based
shifts model
• Significant effort devoted to
building general • Developing peer groups
Developing talent Reinforcing with • Evolution to BSSs
management skills in new and skills formal mechanisms
BULs • Change to performance
– Formal training programs management processes
– Peer support • GO teams
– Coaching from senior
managers – especially
GVPs, & through the
performance
conversations
• Skills and capabilities
developed internally, not
bought in from outside
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• Story delivery
– After each improvement, performance targets
ratcheted up again to reinforce message of
creating a “winning” organization
– Teams formed to create the organization
design and identify potential value creation
opportunities and focus the
• The teams helped communicate the need
for the merger and a smooth transition to a
united company
• Teams spearhead the effort to achieve the
new mission, vision and live the values
– Included line organization in sub-teams to
identify close-in opportunities and contribute
resources to evaluate
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Role-modeling Fostering
understanding and
conviction
• Training
– New training programs instituted to close
skill gaps
– Carefully documented “best practice”
management procedures and Mindset
disseminated knowledge throughout the and behavior
company
shifts
• Skill building
– Formed a strategic development group Developing talent Reinforcing with
to serve as an enabler to achieve
acquisitions and asset portfolio and skills formal mechanisms
management
• Retention
– Joint merger teams closely examined
the company's requirements for level of
work, staffing, and what skills were vital
to keep in-house
– Selection process for new hires
tightened
– Jobs in the new company are awarded
through a careful redrafting of job
descriptions and individual evaluation
process
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From . . .
• Our company performs as well as it’s going to • CEO and top team develop story on
• I’m doing my job cost/operating improvement (what is
• If we cut more costs, we’ll be hurting our effectiveness happening, why, and what it means for
• CEO personally evaluates the organization)
performance against budget for top • Have each BU head, and then each
100 Role-modeling Fostering manager within a BU get their
• Identify influencers/opinion shapers understanding and subordinates together to discuss how
in each BU; invite them to changes will affect the BU/unit specifically
conviction and answer questions
governance forum on a rotating
basis • Send monthly cross-company progress
• CEO sends memo to organization update emails
articulating what he will be cutting • Put up a TV monitor showing progress on
from his own budget operating performance in the cafeteria
Mindset
and behavior • Make support functions/shared services
• Hold action learning workshops at shifts into profit centers that BUs pay for
the end of which each group comes service; allow BUs to choose whether
up with the 10 tangible things they Developing talent Reinforcing with they buy services internally or externally
will change to improve operating and skills formal mechanisms • Create a new governance forum with the
performance and how they will do it top 25 executives; have them meet once
• Link promotions to achieving a month to exchange information, make
cost/budget targets decisions, and keep momentum
• Rotate managers who have • Move to economic profit metric as key
achieved good cost results to units measure of company performance;
that have a higher cost structure cascade to all units and managers
• Institute regular training for • Increase variable compensation for
managers to learn about new To . . . managers and base it in large part on
advancements in operating • We can improve and we owe it to our shareholders to do it achieving operating/cost targets
efficiency and teach them how to • I am accountable for performance and results • Create on-line forum for operational best
apply • We can be creative and strategic in finding improvement practice sharing
opportunities; they can make us more effective
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CONTENTS
• Introduction
• Appendix
– Theoretical Background
– Client Case Studies
• Transportation company
• Financial services group
• UK Petroleum company
• US Petroleum company
• Electric Utility
• UK Retail Bank
• Asia Pacific Bank
• Pricing
– Case study of Influence Model as diagnostic tool
– Outside- In Case Studies
• Nissan
• BAE Systems
• Further readings and contacts
45
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End-products
Synthesis
• Summary diagnostic
5-whys around
Phase I:
focused questions • Root causes
Diagnostic,
inquiry and
scoping
Clustering
• Intervention areas and design criteria
Phase II:
Designing
Interventions
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• Where is the next performance prize for the organization? What are the
Background barriers to capturing it?
• Is it important to look at performance management processes at the
moment? Why or why not?
• Is there sufficient energy and excitement?
Conviction and • Does the organization have a clear and shared sense of direction and
purpose?
understanding • Are the performance targets of the organization high enough? Too high?
• Are the performance aspirations of the organization exciting?
Skills and • How is the organization building the core capabilities that it needs to be
distinctive in the market?
capabilities
N.B. Each question is a trigger
with greater depth behind –
filled a 90 minute interview
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Strategy implications unclear 1. Why don’t we have effective and consistent priorities?
Reduced clarity around space and accountability 2. Why have space and accountability become less
Shared responsibility reduced clear?
Challenge process has broken down 3. Why can’t we have honest conversations about
Performance is spun performance?
Burdensome data processes with no feedback 5. Why do we have burdensome data processes?
Haphazard one-size-fits-all approach 6. Why do we take a haphazard approach to
standardization?
Focus on explaining past performance 7. Why do we only focus on past and short-term future
Short-term performance focus performance?
Limited deep functional expertise 8. Why do we have weak people development processes
Poor people development processes that only generate limited deep functional expertise?
Overly self-reliant
Lack of federal behavior
Insufficient clarity on managing interfaces with other units 9. Why are we too inwardly-focused?
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…
…
Why?
Why? We do not like to say 'no'
Why?
Why?
Why?
There is no consequence of saying yes
Why?
Why? and failing
Why?
Why?
Why? Silent decommitment is tacitly accepted
Why?
Why? behavior
Why?
Why?
Why? We are punished for saying no
Why?
Why?
Why? upward challenge is unacceptable
Why? Open decommitment is not accepted
Why?
Why?
Why?
Why? Saying no to an initiative requires
Why?
Why? significant work
Why?
Why?
Why? It is easier to say nothing than yes or no
Why?
Why?
Why?
It is uncomfortable to say no to data
requests
Silent decommitment is easy and is
tacitly accepted behavior
…
…
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CONTENTS
• Introduction
• Appendix
– Theoretical Background
– Case Studies
– Outside- In Case Studies
• Nissan
• BAE Systems
– Further readings and contacts
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DEVELOPMENT
• Leadership actions • Story development
– CEO and all executive directors – Placed people development as one of
have their own Personal the top corporate values
Development Plan (PDP) – Polled employees of the biggest
Interactions divisions comparing results against UK
• Annually updated, the PDPs average and using it as a case for
assess key weaknesses and change
how to address them • Story delivery
– Used peer 360° reviews to Role-modeling Fostering – Communicated story and the
reinforce and track desired understanding and heightened sense of job security
behavior changes conviction throughout the organization
– Continued to use and communicate
regular, issue-driven opinion surveys
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CONTENTS
• Introduction
• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts
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• The Influence Model: Creating • contact Christina Palme for a copy of this document
Context Specific Initiatives to
Change Mindsets & Behaviors
• Improving Talent Management using • PD Net 612913
the PLI Influence Model - Case
Examples
Note : For further information please refer to the PLI section on the Global Organization and Leadership Practice website 60
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Leadership
Leadership
actions
actions
• PD Net 512309
• Improving Top Team Performance -
Interactions
Interactions CST Toolkit
• Teamwork at the Top • PD Net 600379
Note: For further information please refer the following sections of the Global Organization and Leadership Practice website: Change Roles,
Leadership Teams 62
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Story
Story • A Challenge for New CEOs: Telling • PD Net 512168
development
development a Great Story
• Best Practices in Communicating • PD Net 512195
Changes
• Dialogue-based Planning:
Story
Story delivery
delivery Cascading Strategy into Action • PD Net 604117
• The Cascadable Story: A Writer's
Guide for Use in Dialogue-based • PD Net 616619
Planning
Note: For further information please refer the Change Communications section on the Global Organization and Leadershio Practice website 63
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Organization
Organization • The Formal Organization Design • PD Net 601527
structure
structure Handbook
Business
Business • The Business Process Redesign • PD Net 511039
processes
processes Almanac - How to Make Overhead
Functions More Effective and
Efficient
Rewards,
• Financial Incentives - A Risky • PD Net 603178
Rewards,
Business
recognition
recognition &
&
consequences
consequences • Making Value Happen - Motivating • PD Net 444CFS
People for Performance
Information
Information • please turn to BTO for Information
systems
systems on this topic
Note: For further information please refer to the following sections of the Global Organization and Leadership Practice website: Organization
Design, Business Performance Management Top Management, Compensation and Incentives 64