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VERTRAULICH

CONFIDENTIAL

Introduction to the Influence Model

Elizabeth Mohr, Christina Palme

Dokument
Date
7 August 2003

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CONTENTS Legend
Unit of measure Legend
Legend
Legend

• Introduction

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
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THE INFLUENCE MODEL: INTRODUCTION Legend


Unit of measure Legend
Legend
• Organizations change most effectively when individuals change their mindsets and behaviors. Change Legend
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.

1
• This packFootnote
briefly explains how the Influence Model fits with the Performance Leadership approach and then
2 Footnote
provides a general introduction to the model and how teams can use it. The appendix includes theoretical
3 Footnote
background,
4 a number of case studies and further sources of information.
Footnote
*5 Footnote
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CONTENTS Legend
Unit of measure Legend
Legend
Legend

• Introduction

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
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The Influence Model forms the second phase of the Performance Leadership approach Legend
Unit ofINFLUENCE
THE measure MODEL AND PERFORMANCE LEADERSHIP Legend
Legend
Legend
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
Behavior
External
Orientation
Leadership Innovaton
and mindset
shifts
Developing Reinforcing
Capability Motivation talent with formal
and skills mechanisms
Environment &
Vaues

Performance Profile Influence Model Tailored


Understand current Develop a set of Implementation
performance and set initiatives required to Architect an
aspirations for the future change mindsets and implementation program
based on a diagnosis of behaviors and close the and make choices
the nine elements of existing performance around tailoring the
organizational
1 Footnote gaps changes
performance
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
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CONTENTS Legend
Unit of measure Legend
Legend
Legend

• Introduction

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
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The Influence Model consists of four change levers designed to shift mindset and behaviors Legend
Unit ofINFLUENCE
THE measure MODEL: CHANGE LEVERS Legend
Legend
"I will change my own behavior if…"
Legend

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

Developing talent and Reinforcing with formal


skills mechanisms
“I have the skills and “The structures, processes
competencies to behave and systems reinforce the
in the new way” change in behavior I am
being asked to make”
1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
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Each change lever can be broken into a number of more actionable categories Legend
Unit ofINFLUENCE
THE measure MODEL: CHANGE LEVERS AND LEVER Legend
CATEGORIES
Legend
Legend
Lever categories Lever categories

• Leadership actions Role-modeling Fostering • Story development


• Opinion shapers “I see superiors, peers understanding and (includes all the key
• Interactions and subordinates conviction elements, e.g., values,
behaving in the new way” “I know what is strategy, case for
expected of me – I change)
agree with it, and it • Story delivery (across
is meaningful” relevant levels, i.e.,
organizational, employee,
Mindset &
functional)
behavior
• Talent management shifts • Organization structure
– Hiring • Targets and metrics
– Replacing Developing talent and Reinforcing with formal • Management processes
– Retaining skills mechanisms • Business processes
• Learning “I have the skills and “The structures, processes • Rewards, recognition
– On-the-job competencies to behave and systems reinforce the and consequences
development in the new way” change in behavior I am • Information systems
– Training being asked to make”
– Action learning

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
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LEVER CATEGORIES – ROLE MODELING Legend


Unit of measureDescription Example actions Legend
Legend
• 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 Legend
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
1 Footnote • Understand current degree of alignment around corporate story/change agenda
2 Footnote – Open discussion forums
3 Footnote – Conduct consensor workshop
4 Footnote • Encourage team alignment by engaging groups in real work
*
5 Footnote
*Quelle:
For further information please refer to The Influence Model: Creating Context Specific Initiatives to Change Mindsets & Behaviors
Source 9
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LEVER CATEGORIES – FOSTERING UNDERSTANDING AND CONVICTION


Legend
Unit of measure Legend
Description Example actions
Legend
• Articulating, updating, and integrating • Develop story plot to include case for change Legend
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,
1 Footnote of the story in the organization banners)
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
*Quelle:
For further information please refer to The Influence Model: Creating Context Specific Initiatives to Change Mindsets & Behaviors
Source 10
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LEVER CATEGORIES – REINFORCING WITH FORMAL MECHANISMS Legend


Unit of measure Legend
Description Example actions
Legend
Organization • Changing the organization structure, decision • Flatten organization into numerous performance units with P&L responsibilities
Organization
rights and responsibilities, and coordination • Redesign roles and responsibilities of Board of Directors Legend
structure
structure
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

• Enabling tighter coordination, enhancing • Install enterprise-wide MIS system for performance reporting/management
1
Information
Information Footnote access to information, redesigning business/ • Develop intranet system for knowledge capture and sharing
systems
systems2 Footnote organizational models, and improving front- • Build decision support systems to assist customer-facing functions
3 Footnote line performance through investments in
4 Footnote technology
*
5 Footnote
*Quelle:
For further information please refer to The Influence Model: Creating Context Specific Initiatives to Change Mindsets & Behaviors
Source 11
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LEVER CATEGORIES – DEVELOPING TALENT AND SKILLS Legend


Unit of measure Description Example actions Legend
Legend
Hiring
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 Legend
support such as consultants) • Map high value jobs to high value people
Talent upgrading

• Evaluate proposals from external consultants


• Select consultants based on personal fit with the organization

Replacing
Replacing
• Replacing low performers • Replace underperformers based on annual review
occupying key positions

Retaining
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…

Training
Training • Instructing on specific knowledge or • Build a “corporate university”
skills • Develop on-line training materials
• Formally prepared in advance and • Introduce a tuition reimbursement program
delivered within defined time period • Prepare a personalized training schedule based on individual’s needs
1 Footnote • Addressing day-to-day problems • Integrate action learning methods into existing training and development
2
ActionFootnote
Action learning
learning within a facilitated, interactive forum strategy
3 Footnote • Brings people together to learn, • Engage in role plays and focus groups to test solutions
4 Footnote reflect, and find solutions to real • Roll out by involving in workshop to practice new solutions
*
5 Footnote business issues
*Quelle:
For further information please refer to The Influence Model: Creating Context Specific Initiatives to Change Mindsets & Behaviors
Source 12
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Before going into implementation planning the final set of actions needs to be checked Legend
Unit of measure
TESTING ACTIONS FOR “GOODNESS OF FIT” Legend
Legend
Legend
Influence model initiatives
Profile
✓ 1. Consistency: Ensure alignment
elements of actions among performance
Leadership X X X X model elements
Direction X X X X
Environment and X X X X
✓ 2. Complementarity: Ensure
values integrated actions are taken
X X X X
Accountability across all 4 influence model
Coordination and X X X X quadrants
control
X X X X
Capability ✓ 3. Comprehensiveness: Ensure
Motivation
X X X X sufficient actions are taken across
External orientation
X X X X performance profile and influence
Innovation X X X X model to achieve desired outcome
but taking care not to overwhelm
the organization with too many
actions
“Goodness of Fit” is the extent to which
the complete set of initiatives are
consistent, complementary, ✓ 4. Context: Ensure actions are
comprehensive, and context specific aligned with the organization's
1 Footnote strategic objectives and context
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Note: While each initiative is resident under one lever, it may impact more than one element (e.g., stories impact direction, leadership, and
Quelle:
environment) Source 13
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CONTENTS Legend
Unit of measure Legend
Legend
Legend

• Introduction

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
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THE INFLUENCE MODEL AS DIAGNOSTIC TOOL Legend


Unit of measure Legend
Legend
Legend
• 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.

• Such diagnostic/surveys can be used at various stages of an engagement. Practitioners recommend using them
at the beginning of a study only if a team has a good understanding of the client situation. Diagnostics/surveys
can also be used in ongoing studies when the issue of behavior and mindset change is critical to implementation.
The repeated use of the diagnostic can monitor and measure the degree of change throughout the course of a
study.

• 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.

• Contact: Renate Osterchrist, Specialist (MUN)

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
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THE INFLUENCE MODEL AS DIAGNOSTIC TOOL – EXAMPLE QUESTIONS


Legend
Unit of measure
• To what extent does the top team act collectively to promote the vision • Have clear objectives been defined? Legend
and the path to achieve it? • How many employees are familiar with the company's business situationLegend
(best
• What percentage of the key stake-holders (labor representatives, opinion practice comparisons, customer satisfaction, revenues, market position)?
leaders, etc.) support the project in all necessary aspects? • How many employees have understood why the change is necessary, inLegend
what
• Is middle management actively involved? direction the company should head, and what steps are needed to do so?
• Is the top team clear about what it must do in order to support the • How many employees are committed to the goal and the path for getting there?
transformation? • How many executives communicate target-group-specific messages about the
• Do managers "live" the principles of the desired change, e.g., focus on "What," "Why," and "How" of the company's plans for change?
customer orientation, process orientation, quality, cost reduction? • To what extent are interactive communications used (e.g., forums, small-group
• How clearly does the top team provide recognition for committed discussions, one-on-one discussions, dialog workshops, etc.)?
employees and promoters? • To what extent are feedback instruments used to evaluate
the effectiveness of the top/middle management's
• To what extent is non-performance or poor communication and to derive action from the results?
Role-modeling Fostering
performance penalized? understanding and • Are the people affected by changes actively involved in
conviction developing solutions?
• To what extent do patterns of interaction in the
organization support the change effort (e.g., trust, no turf
wars, ...)?

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 what1extent
Footnote
is top talent already filling the positions that are critical
2
for success? Footnote
3 team
• Is the top Footnote
capable of handling resistance from the organization
constructively?
4 Footnote
• Do the 5
*internalFootnote
project leaders have the necessary project management
skills (for the overall program and sub-projects)?
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CONTENTS Legend
Unit of measure Legend
Legend
Legend

• Introduction

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
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THE INFLUENCE MODEL IS BACKED UP BY RESEARCH FROM MULTIPLE


Legend
DISCIPLINES
Unit of measure Legend
Legend
• “People take their cues • “It’s difficult to behave in Legend
from those who they a different way if the
consider as ‘significant behavior is inconsistent
others’ and model their with your view of the
behavior accordingly.” world.”
– Imprinting work by – Cognitive dissonance
Lorenz work by Festinger
Role-modeling Fostering
understanding and
• “People don’t leap from
conviction
unskilled to highly skilled
in one bound. The job of • “The prize for behaving
a parent (organization) is differently must be
to underpin (or scaffold) greater than the
the learning at any stage Mindset perceived pain involved
of development so that it and behavior in entering into the new
becomes embedded in shifts behavior.”
patterns of behavior – Personal motivation
Developing talent Reinforcing with work by Kurt Lewin
before the next
and skills formal mechanisms • “The surrounding
developmental leap
occurs.” environment sends us
– Scaffolding work signals which we each
by Vroom interpret in different ways
• “Adults learn through a but which cause greater
trial and error approach.” likelihood to behave in a
– Adult learning certain way.”
1 Footnote
work by Kolb – Operant conditioning
2 Footnote work by Skinner
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 18
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Larry Bossidy's discussion about making change touches on the four change levers of the Influence Model
Legend
Unit ofINFLUENCE
THE measure MODEL IS RELEVANT TO PRACTITIONERS Legend
Legend
Representative actions to improve Legend
accountability and collaboration

“First, you tell people clearly


what results you’re looking
Fostering
understanding and
conviction
• Weekly emails from CEO telling all employees his vision and asking for
for… suggestions

Then you discuss how to get


those results…

• New organization structure, centered on market segments


Then you reward people for • New compensation system linking rewards to performance
producing those results… Reinforcing with
• Web-based evaluation tools and quintile performance rankings
formal mechanisms

If they come up short, you


provide additional
coaching…
• “After class” coaching sessions, led by CEO for top leaders who have
struggled to meet numbers or convey results

Sometimes the “ahas” come


Developing talent
and skills

from watching others’


behaviors”

1 Footnote
Role-modeling
• Monthly “performance calls” led by CEO, COO and CFO with top 150
2– Larry Bossidy
Footnote leaders
3 Footnote • HR department renamed Leadership and Change Management
4 Footnote
*
5 Footnote
Quelle: Source 19
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Recognized business leaders engage in a range of actions similar to components of the Influence Model
Legend
Unit ofINFLUENCE
THE measure MODEL IS RELEVANT TO PRACTITIONERS Legend
Legend
Legend
• 2-day meetings to review • Customer surveys – IBM
business for the top 150 • Employee surveys – GE
executives – Bossidy • Employee educational programs –
• Change the vocabulary and the Role-modeling Fostering IBM
dress code of the organization, understanding and • Work-Out – GE
stop the ‘non-concur’ process, conviction • Structured dialogues – Bossidy
stop ‘Lou said’ orders – • Personal notes - Bossidy
Gerstner • Define leadership expectations –
• Elevate the HR function – GE, Bossidy, IBM, GE
IBM Mindset
and behavior
shifts
• Coaching – IBM, GE, Bossidy • Restructuring board & management
• 6 Sigma – GE, Bossidy Developing talent Reinforcing with process – IBM
• Rigorous succession planning and skills formal mechanisms • Pay in stocks & options – IBM
• Reorganize structure & power – IBM
process – GE • Clear goals, priorities and review process –
Bossidy
• Fix, sell or close philosophy embedded –
GE

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 20
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CONTENTS Legend
Unit of measure Legend
Legend
• Introduction Legend

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

• 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
1 Footnote • Nissan
2 Footnote • BAE Systems
3 Footnote
• Further readings and contacts
4 Footnote
*
5 Footnote
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TRANSPORTATION COMPANY CASE STUDY – SUMMARY Legend


Unit of measure Legend
Legend
• Public sector organization responsible for transportation in large European city.
Legend
• In 2000 five previously independent entities responsible for streets, taxis, buses, trams,
Situation rail and all other modes of transport were combined into one organization of 3000
employees.
• Proposed integration of additional major organization responsible for subway system
would bring total employees to 16 500.

• 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
1 Footnote • The Influence Model was then used to identify a set of actions aimed at closing existing
actions
2 Footnote performance gaps and bringing about the desired changes.
3 Footnote
4 Footnote
*
5 Footnote
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THEME ONE – ALIGNING THE ORGANIZATION AROUND A COMMON Legend


DIRECTION
Unit of measure Legend
TRANSPORTATION COMPANY CASE STUDY
Legend
From… To…
• Lack of clear and Legend
• 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

Mindsets • I see us as running our own • I see us as the leaders of a united


1 Footnote businesses rather than TransportCo with the common goal of running
2 Footnote running TransportCo an integrated transport system
3 Footnote • I think our blame culture • We and our employees collaborate across
4 Footnote keeps us from working businesses and functions to effectively deliver
*
5 Footnote together more effectively an integrated transport system
Quelle: Source 23
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THEME TWO – EMBEDDING COORDINATION & CONTROL THROUGHOUT Legend


THE
Unit ofORGANIZATION
measure Legend
TRANSPORTATION COMPANY CASE STUDY
Legend
From… To… Legend

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

Mindsets • There’s no real consequence • I am accountable for performance and results


for me if I perform well or poorly • I see how decisions are made and I am an
1 Footnote • I don’t really understand how active contributor to the process
2 Footnote decisions are currently made,
3 Footnote so I just go along with the
4 Footnote process as it stands
*
5 Footnote
Quelle: Source 24
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THEME THREE – DEVELOPING CAPABILITIES TO DELIVER Legend


Unit of measure Legend
TRANSPORTATION COMPANY CASE STUDY
Legend
From… To…
Legend
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
1 Footnote dominate the floor people reacting defensively
2 Footnote • I’m scared to challenge in case
3 Footnote I’m seen as being antagonistic
4 Footnote
*
5 Footnote
Quelle: Source 25
070803LN(M)ZZT606GREM-P1
The Influence Model was used to identify a set of actions aimed at closing existing performance gaps
and bringing about the desired changes Legend
Unit of measure INFLUENCE MODEL
INTEGRATED Legend
TRANSPORTATION COMPANY CASE STUDY
Legend
• Top team sponsors and resources
cross business best practice Legend
sharing initiative
• Top team members establish
coaching relationships with
subordinates (e.g., regular • Quarterly round table discussions
meetings) introduced for Top team to develop and
• Top team holds regular visible monitor Common Transport Strategy
meetings on direction and • Top team workshops held on story
performance development/ communication around
Role-modeling Fostering strategy and change
• Top team members establish
regular follow-on
understanding and • Top team coaches direct reports on
communication/review sessions conviction story development/ communication
with their teams on • CEO holds biannual one on one
– TransportCo strategy & progress meetings with top team to discuss
– Implications for/role of strategy and performance contracts
Business/Function
Mindset
and behavior
• Top team is coached in key skills shifts • Top team defined to take key strategic
(e.g. interpersonal, leadership and policy decisions
styles) Developing talent Reinforcing with • Effectiveness of key management
– One on one sessions, 360° processes improved (e.g., specific
and skills formal mechanisms monitoring of time and calendar)
feedback
– Workshops on styles • Protocol developed for communicating
• Top team reviews roles of team and top team decisions to direct reports
of individual members to: • Top team members include high
– Reprioritize activities (e.g., match potential employees in key meetings/
skill sets with critical tasks) committees/ projects
– Reallocate talent and skills to key • Clearly defined performance contracts
1 as Footnote
areas, well as provide for job instituted for top team members,
rotation and skill building incorporating specific consequences
2 Footnote for over/ under performance
– Make decision making process
3 Footnote
explicit and understood
4 Footnote
*
5 Footnote
Quelle: Source 26
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FINANCIAL SERVICES GROUP CASE STUDY – SUMMARY Legend


Unit of measure Legend
Legend
• Large regional bank in Asia-Pacific region, but poorest performing in home Legend
Situation country. High-risk portfolio with exposure to Asia and mid-East.
• Highest cost-income ratio, poor customer satisfaction and consumer brand.
• Low staff moral with decision-making considered slow and cautious.

• Strategic shift to improve performance was driven by the new CEO


Mandate for • His aim was to reposition the bank as a lower cost, less risky business and to
change create a new performance momentum by driving specialist BUs rather than
remaining a generalist bank.

• Initial diagnostic using surveys, deep structure interviews, a review of the


Themes for performance systems and top team work, showed significant performance gaps
change between the current and desired profile of the organization. Five key themes
were identified:
- Develop people
- Create openness and trust
- Foster interdependency (collaboration)
- Focus on customers
- Foster growth
Designing
1 Footnote
2 Footnote
effective
• The team developed an Influence Model for each theme. These were then pulled
3 Footnote together into an integrated Influence Model
actions
4 Footnote
*5 Footnote
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THEME ONE – DEVELOPING PEOPLE FINANCIAL SERVICES GROUP CASELegend


STUDY
Unit of measure Legend
• Leadership actions
– Included values dimension in the Legend
CEO evaluations of top 100
• Opinion shapers Legend
– 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,
1
discussions,Footnote
Developed e-MBA effective, and efficient performance review
2
program inFootnote with
conjunction feedback
University for staff
3 Footnote
– Action learning: Used management
4
workshops Footnote
to hone people skills
* executive
5
(e.g., Footnote
coaching on
providing feedback)
Quelle: Source 28
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THEME TWO – CREATING OPENNESS AND TRUST FINANCIAL SERVICES GROUP CASELegend
STUDY
Unit of measure Legend
Legend
Legend
• Story development
– Included “earn the trust of the
• Interactions
community” amongst the 5 core values
– Used facilitated workshop program for the • Story delivery
top team, significant portion of which was – Told story in transparent way to
focused on encouraging trust, openness,
and readiness to dissent
Role-modeling Fostering external forums, analysts etc
– CEO revealed his 3 major weaknesses understanding and – Used consensor and interactive
from 360º feedback in interview with press keyboard tools in senior team
conviction
workshops to encourage open
discussion and dissent
– Tied all communications of business
decisions to values
Mindset
• Learning and behavior • Organization structure
– Action learning shifts – Increased transparency through delayering
– Used targeted exercises in top team • Rewards, recognition, and consequences
workshops, such as – Created consequences through remuneration
-Set up trust framework and encouraged Developing talent Reinforcing with systems for top team members not living the
self-rating against it by the participants,
followed by sharing perspectives in pairs
and skills formal mechanisms values
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

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
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FINANCIAL SERVICES GROUP CASE STUDY


THEME THREE – FOSTERING INTERDEPENDENCY • Story development
Legend
Unit of measure – Developed basic story in top teamLegend
workshops
•Leadership actions around direction and values, Included “lead and
– Used “walk before you talk” approach which inspire each other” as one of the 5Legend
core values,
required top team and direct reports to – Encouraged BUs to come up with own versions
undergo workshop program first
• Opinion shapers •
of the story in workshops
Story delivery
Legend
– Trained storytellers (selected change agents
– Used workshops and visuals to deliver story
from all levels) to tell the story in their
environments using the visual representation “through osmosis, not big bang”, e.g.,
provided on the corporate intranet introduced an e-based visual representation of
– Used repeated exposure to story and peer the corporate story to communicate all the
pressure to persuade potential blockers elements of the story (e.g. long-term goals, BU-
• Interactions specific programs),
– Used facilitator workshops with cross-BU and
cross-function participants to increase levels of
Role-modeling Fostering – Used 360º peer reviews and workshops to
measure understanding of story (e.g., “taking a
trust and collaboration, and create a sense of understanding and stand” exercises required participants to talk
interdependency
conviction about changes they will make based on the
transformation workshop),
– Reinforced delivery: Each participant receives
diploma and key card with 5 top values only
after attending relevant workshops, Tied all
decision communications to values, e.g.,
Mindset “According to our value of…, we plan to…”

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

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 30
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THEME FOUR – INSTILLING A GREATER CUSTOMER FOCUS Legend


Unit of measure Legend
FINANCIAL SERVICES GROUP CASE STUDY
Legend
Legend

• CEO spends a day a month working in • Included “put our customers first” as the first of
a bank branch – ‘be a concierge for a
day’ program instituted for senior
Role-modeling Fostering the 5 core values
understanding and • Used presentations and pilot frontline workshops
leaders to communicate and embed the theme
• CEO publicly offers to buy rural conviction • Held landmark conference for top 100 in
branches when rival announces their personal banking BU including video of
closure – tells media this is to “live up customers talking about the bank
to our values” of putting customer first • Refer to branches as ‘stores’

Mindset
and behavior
• Instituted sales effectiveness program to shifts • Introduced “quasi-franchise” approach to branch
build business planning and customer districts to improve local autonomy – moving to
acquisition skills in frontline districts ‘200+ P&Ls’
Developing talent Reinforcing with • Changed remuneration for frontline from
• Planned and executed as local initiatives
to promote local ownership of issues and skills formal mechanisms transactional to total customer profitability model
• Introduced CRM process to deliver planning
information to the frontline in a timely fashion

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 31
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THEME FIVE – FOSTERING GROWTH FINANCIAL SERVICES GROUP CASELegend


STUDY
Unit of measure Legend
Legend
Legend
• 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

• Learning and behavior • Targets and metrics


– Action learning shifts – Established specific/tailored “perform”
• Used targeted exercises in top and “grow” set of objectives for each
team workshops to develop Developing talent Reinforcing with specialist Bus; introduced Perform,
"AND" mindsets to underpin and skills formal mechanisms Grow and Breakout scorecard
growth • Management processes
– Introduced BU resource bidding from
the growth pool
• Rewards, recognition, and consequences
– Put higher percentage of pay at risk,
increased bonus potential, and linked to
performance
– Created consequences through
remuneration systems for top team
1 Footnote members not living the values
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
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FINANCIAL SERVICES GROUP CASE STUDY
INTEGRATED INFLUENCE MODEL Legend
Unit of measure
• Leadership actions • Story development Legend
– Included values dimension in the CEO – Developed basic story around strategy and 5 core
evaluations of top 100 values in top team workshops Legend
– 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’ Legend
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 Bank”
requirement that staff must have college
education to become a manager philosophy
– Retaining: Introduced internal job market for • Targets and Metrics
everyone with tenure >1 year, Established
Developing talent Reinforcing with – Established specific/tailored “perform” and “grow” set of
program focused on learning and networking and skills formal mechanisms objectives for each specialist BU
– Increased performance transparency through new
for star performers
monthly BU results reports and higher profile for BU
• Learning leaders (photos on results pages)
– Training: Managers taught how to improve
• Rewards, recognition, and consequences
coaching and conduct open and honest – Created remuneration consequences for top team
performance appraisals members not living the values
– Action learning: Held series of workshops and – 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 making
shifts in a collaborative environment ranking known to employees; enabled managers to have
“hard conversations” based on facts
• Information systems
1 Footnote – Created internal job market website
– Introduced e-enabled tools that support line managers in
2 Footnote delivering meaningful, effective, and efficient performance
3 Footnote review feedback

4 Footnote
*
5 Footnote
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UK PETROLEUM COMPANY CASE EXAMPLE Legend


Unit of measure Legend
Legend
Legend

• Role modeling of CEO in • Focus on elephant field strategy


performance reviews Role-modeling Fostering • Focus on agreed KPIs
• Role modeling of peer group understanding and • Focus on near term performance
behaviors, especially the conviction in reviews
leadership role of the peer
group convenors

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
• Skills1andFootnote
capabilities
2 Footnote
developed internally, not
bought3 in Footnote
from outside
4 Footnote
*
5 Footnote
Quelle: Source 34
070803LN(M)ZZT606GREM-P1

US PETROLEUM COMPANY CASE EXAMPLE 1/4 Legend


• Story development
Unit of measure – The CEO, a high-performing executive Legend
of the
parent company, agrees to take on
Legend
underperforming California assets, but only as
the CEO of a stand-alone business Legend
• Convinced that the new company needs to
be free of the bureaucracy of the parent
company and have complete autonomy to
act, he makes case for change
– New vision to “become the leading oil, gas and
resources company in California”
• Orchestrates acquisition of E&P unit of a
Role-modeling Fostering competitor arguing that consolidation in the
understanding and industry and the difficulty of turning a profit
conviction as a stand-alone business in California
means the companies would be better off
together
– With the addition of the acquired E&P unit, the
new corporate mission is to “profitably grow the
value of the business by 1-2% EVA per year”
Mindset – New core values promulgated to build a
and behavior stronger performance ethic in the new
organization:
shifts • Being a part of something special
• Passion for learning and improving
Developing talent Reinforcing with • Being accountable to each other
• Founded upon honesty, integrity, respect
and skills formal mechanisms • Bias for action

• 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
1 Footnote united company
2 Footnote • Teams spearhead the effort to achieve the
3 Footnote new mission, vision and live the values
– Included line organization in sub-teams to
4 Footnote identify close-in opportunities and contribute
*
5 Footnote resources to evaluate
Quelle: Source 35
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US PETROLEUM COMPANY CASE EXAMPLE 2/4 Legend


Unit of measure Legend
Targets and metrics

Legend
• New, clear operations KPIs developed and cascaded down to subunits and teams
– gives them clear targets, goals and metrics against which to manage
• Adapted Balanced Scorecard framework as key performance management tool
Legend
• New transparent and very public performance feedback systems: Rigorous
business review meetings with open forums for discussion, Unit results against
targets displayed on bulletin boards throughout the organization
• Rewards, recognition, and consequence management: Initiated new compensation
system directly tied to performance against balanced scorecards
• Reengineered business processes to achieve further capital and fuel reductions
– Governance system adapts new, tighter operations and capital planning
process and HR management
• Mergers lead to restructured organization
– Major restructuring led to 150 job cuts
• An additional 90 positions were targeted for elimination in 1998
– Redundant management positions were cut and all employees’ roles are
redefined within their team and organizational context to ensure accountabilities
Role-modeling Fostering – Company discards previous organization design in favor of one that integrates
construction, drilling and purchasing functions to better coordinate processes
understanding and and personnel
– New operations-focused design – over 85% of personnel report to the COO
conviction – Interlinking team structure ensures that information is shared across the
surveillance processes
– Flatter and leaner organization is more focused around process teams which
are tailored to specific life-cycle and other requirements of field

Mindset
and behavior
shifts

Developing talent Reinforcing with


and skills formal mechanisms

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 36
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US PETROLEUM COMPANY CASE EXAMPLE 3/4 Legend


Unit of measure Legend
Legend
Legend

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 to
Developing talent Reinforcing with
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
1
descriptions Footnote
and individual evaluation
process
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 37
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US PETROLEUM COMPANY CASE EXAMPLE 4/4 Legend


Unit of measure Legend
• Leadership actions
– CEO provided the vision and Legend
inspirational leadership
• Cut the cord to parent company Legend
and rallied his team
• Demonstrated a highly energetic /
roll-up your sleeves style, going to
great lengths to champion his new
vision
• Dogmatic on accountability and
follow-through Role-modeling Fostering
– Top team members of merged understanding and
company follow CEO's lead and
demonstrate commitment to promote conviction
openness and drive to win
• Spearheaded changes in each
asset to meet cost reduction,
synergy and growth objectives
• Instituted open forums and public Mindset
performance feedback reports and behavior
within their departments/ assets
• Ratcheted up performance goals shifts
each time they were achieved
Developing talent Reinforcing with
• Established joint teams to design and skills formal mechanisms
merged organization
– The joint merger teams were staffed
by managers at all level and in all
functions
• Forced to implement their own
tough cost-reduction initiatives
• Employees from different
businesses or markets work
together on the integration plan
and communicated it to their peers
1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 38
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ELECTRIC UTILITY CASE EXAMPLE Legend


Unit of measure • Story development Legend
– Developed corporate story around the
4 imperatives
Legend
Legend
• Key element “this is what we are
about”
• Missing dynamic elements to
• Leadership actions create burning platform
– Top team demonstrated visible
focus on Wall Street commitments
• Story delivery
– Tom team evaluated using the new
– Created extensive communication
people review system campaign (e.g., newsletter with the
Role-modeling Fostering CEOs’ perspective on the progress,
– BU leaders demonstrated varying
levels of commitment – for those understanding and brochures with theme of the month)
who demonstrated real commitment conviction – Asked each BU head to take part in
the message was very powerful the process and cascade the
and personal (e.g., this is how I am imperatives down in KPI form
personally affected)
• Management processes
– Created leadership committees with all
Mindset stakeholders at the same table
and behavior • Targets and Metrics
– Developed new scorecards, targets and
shifts metrics tying back to the 4 imperatives
– Made changes to the metrics based on value-
• Talent upgrading driver analysis for each BU
– Hiring Developing talent Reinforcing with
• Acquired external talent from growth • Performance reviews and consequences
industries to create new growth and skills formal mechanisms – Developed new competency model to include
• Put in place aggressive recruiting BU results and leadership characteristics
processes – Established review processes where they were
• Agreed to remove the bottom 3-10% missing (e.g., distribution, office services)
annually – Developed a set of evaluation tools –
– Replacing incorporating new KPIs and competencies in
• Learning people review forms and templates
– Training – New consequences for under performers –
• Trained HR managers to run and asked to leave if no improvement within a
orchestrate employee evaluations probation period of 3 to 6 months
• Trained staff involved in auditing and
tracking metrics

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 39
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UK RETAIL BANK CASE EXAMPLE Legend


Unit of measure Legend
Legend
Legend

• Leadership actions • Story development


– Establish CEO as change Role-modeling Fostering – Build story on themes that lead to
champion understanding and compelling vision
– Appoint cost czar conviction • Story delivery
– Establish 18 month, theme- – Cascade story deep into business
based action plan units
• Interactions – Encourage CEO to use events to
– Instill "on-board or out" relate back to story
philosophy within top team Mindset
and behavior
• Talent upgrading shifts • Organization structure
– Hire new top team members for – Lean out center roles
key roles • Targets and metrics
– Reinvest in recruiting to source Developing talent Reinforcing with – Create cascading metrics
new talent at entry levels and skills formal mechanisms • Management processes
– Establish front-line retention – Set common processes
program for personal bankers • Business processes
• Learning – Centralize where possible
– Train on value-based • Rewards & consequences
management – Increase variable pay
– OD effort on shared values – Align compensation with group
– Train managers on performance targets
feedback – Differentiate employees'
compensation by performance level
1 Footnote • Information systems
2 Footnote – Integrate systems
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 40
070803LN(M)ZZT606GREM-P1

ASIA PACIFIC BANK CASE EXAMPLE 1/3 Legend


Unit of measure Legend
Legend
From . . . • Add new corporate value around
• Our company performs as well as it’s going to Legend
accountability for costs
• I’m doing my job
• CEO personally approves purchases • If we cut more costs, we’ll be hurting our effectiveness • Hold series of top team workshops to
higher than $100k develop story on cost/operating
• Each BU head identifies 5 “opinion improvement (what is happening, why,
shapers’ and has periodic meetings and what it means for the organization)
with them to update them on what is
• Hold all-hands town-hall meeting to
going on; also encourages them to Role-modeling Fostering present the story and have Q&A; repeat
pass on to colleagues
• Eliminate executive dining room
understanding and on bi-monthly basis to update
• CEO and rest of top team each call 5- conviction • Have each manager hold a short one-
10 managers per week to inquire on on-one with each of their subordinates
progress on budget, challenge unit to explain impact and implications of
performance, and support changes on individual
improvement efforts
Mindset
and behavior
• Incorporate “cost consciousness” into shifts
360º feedback
• Hold interactive sessions in each • Delayer the top 5 management levels
unit/function to brainstorm cost
Developing talent Reinforcing with • Create a cross-functional and divisional “idea
and skills formal mechanisms committee” and task with coming up with cost
reduction ideas using best practices
reduction ideas on on-going basis
from similar units in other organization
• Hire “cost czar”
• Put in place a “tough” budget challenging
process that every BU goes through every
• Bring in new people from organizations
quarter
that are known for cost efficiency
• Remove managers who don’t achieve
• Establish KPIs for operating and cost
performance and integrate into company
budget and new KPI targets
scorecard; cascade to all managers in
performance contracts
• Put in place a “3 strikes you’re out”
To . . . consequence management process
• We can improve and we owe it to our shareholders to do it
1 Footnote • I am accountable for performance and results
2 Footnote • We can be creative and strategic in finding improvement
3 Footnote opportunities; they can make us more effective
4 Footnote
*
5 Footnote
Quelle: Source 41
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ASIA PACIFIC BANK CASE EXAMPLE 2/3 Legend


Unit of measure Legend
Legend
From . . . Legend
• 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
1 and
efficiency Footnote
teach them how to • I am accountable for performance and results • Create on-line forum for operational best
apply 2 • We can be creative and strategic in finding improvement practice sharing
Footnote opportunities; they can make us more effective
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 42
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ASIA PACIFIC BANK CASE EXAMPLE 3/3 Legend


Unit of measure Legend
From . . .
• Holding people accountable isn’t worth the ‘upset’ it creates Legend
• Raising issues is better than raising solutions Legend
• Avoiding failure is success
• I am not responsible, the system does it to me
• Someone else always has to consider the matter before • Add ‘closed loop’ and ‘count on me’
the decision is made jargon into corporate story and introduce
new values around ‘empowerment &
• CEO personally evaluates accountability’
performance against key Role-modeling Fostering • Communicate to everyone the new
accountabilities for top 35 GMs understanding and accountability model, why it is happening
each quarter
conviction and what it means
• Hold top team session to realign its
• CEO shares his accountabilities and
accountabilities personal stories with two layers down and
• Post safety, quality service and others emulate
throughput record at all plant
entrances Mindset
and behavior • Atomize the business into more natural
• Incorporate ‘accountability’ shifts performance cells
behaviors into 360º feedback • Map the new decision rights for each
• Roll out action learning workshops Developing talent Reinforcing with business process using RASCI—reset
on accountability spending authorities
and skills formal mechanisms
• Hold special training for managers • Reset KPIs and targets and record
on holding people accountable commitments using performance
• Replace managers who fail to contracts
deliver • Clarify positive and negative
consequences with performance
management grid
To . . .
• We hold people accountable, it strengthens us
• I want to get things done –I will drive solutions to issues
• The far side of failure is success
1 Footnote • I am part of creating the system and am responsible for
2 Footnote influencing it
3 Footnote • I am accountable to make decisions and ‘get on with it’
4 Footnote
*
5 Footnote
Quelle: Source 43
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PRICING CASE EXAMPLE Legend


Unit of measure Legend
Legend
Legend
• Obtain buy-in from management
team on the importance of pricing
• Have senior management in driving profitability and ability
communicate the importance to manage price upwards
of pricing strategy • Clearly communicate pricing
Role-modeling Fostering objectives and everyone’s role
• Have senior management
understanding and
actively and regularly solicit • Show the organization that the
conviction impact is real and substantial
feedback from frontline
• Expect top team leaders to • Communicate enhancements to
visibly engage in pricing pricing strategy in
activities monthly/quarterly meetings
Mindset
and behavior
shifts
• Train managers and sales • Create pricing team with authority
reps in customer-specific Developing talent Reinforcing with to monitor and influence all
"bottom-up" pricing and skills formal mechanisms pricing decisions
initiatives, e.g., • Add specific pricing metrics and
– Front-line transaction price set targets against them
management • Link senior managers’ incentives
– Effective product/ to pricing results
customer mix • Build transaction-based
management information monitoring system
– Price negotiation • Institute rapid knowledge-sharing
techniques mechanisms and processes to
1 Footnote
• Hold workshops with senior facilitate “real time” pricing
2 Footnote
managers to discuss pricing decision support
3 Footnote
strategies and processes
4 Footnote
*
5 Footnote
Quelle: Source 44
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CONTENTS Legend
Unit of measure Legend
Legend
• Introduction Legend

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

• 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
1 Footnote • Nissan
2 Footnote • BAE Systems
3 Footnote
• Further readings and contacts
4 Footnote
*
5 Footnote
Quelle: Source 45
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ENERGY COMPANY CASE EXAMPLE – INFLUENCE MODEL AS PART OF


Legend
DIAGNOSTIC
Unit of measure Legend
Legend
Overview of problem-solving process Legend
End-products

• Interview notes from 58 interviews

Synthesis
• Summary diagnostic

5-whys around
Phase I:
focused questions • Root causes
Diagnostic,
inquiry and
scoping
Clustering
• Intervention areas and design criteria

Causal loops • Holistic, complementary interventions

Phase II:
1
DesigningFootnote
2 Footnote
Interventions
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 46
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DIAGNOSTIC OVERVIEW QUESTIONS Legend


Unit of measure Legend
ENERGY COMPANY CASE EXAMPLE
Legend
• Where is the next performance prize for the organization? What are the Legend
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?

Behaviors and • Is there sufficient challenge and support in the organization?


• Is there the right amount of transparency in the organization?
interactions • Is teamwork effective in the organization?

Structures and • Does the organization have the right structure?


• Do the performance management processes facilitate good performance?
processes

Skills and • How is the organization building the core capabilities that it needs to be
distinctive in the market?
capabilities
1 Footnote
2 Footnote N.B. Each question is a trigger
3 Footnote with greater depth behind –
4 Footnote filled a 90 minute interview
*
5 Footnote
Quelle: Source 47
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SUMMARY DIAGNOSTIC – THE FIRST INTERVENTION Legend


Unit of measure Legend
ENERGY COMPANY CASE EXAMPLE
Legend
Context and values Behaviors and interactions Legend
Clear high-level strategy Great site teamwork
Strong performance culture Target driven motivation
Thoughtful environment
 Strategy implications unclear  Challenge process has
 Short-term performance focus broken down
 Overly self-reliant  Weak at execution and
 Executors are not rewarded closure
 Insufficient clarity on managing  Lack of federal behavior
interfaces with other units  Performance is spun

Skills and capabilities Structure and processes

Good fundamental BU model has been empowering


business skills Burdensome data processes with
no feedback
 Limited deep functional  Reduced clarity around space and
expertise accountability
 Poor people  Shared responsibility reduced
1 Footnote development processes  Haphazard one-size-fits-all
2 Footnote  Focus on explaining past approach
3 Footnote performance
4 Footnote
*
5 Footnote
Quelle: Source 48
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A SERIES OF FOCUSSED QUESTIONS Legend


Unit of measure Legend
ENERGY COMPANY CASE EXAMPLE
Legend
Weaknesses from diagnostic Focused questions
Legend
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?

Executors are not rewarded


Weak at execution and closure 4. Why are we weak at execution and closure?

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 of1federal
Footnote
behavior
2
Insufficient Footnote
clarity on managing interfaces with other units 9. Why are we too inwardly-focused?
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 49
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THE 5-WHY PROCESS DRILLED DOWN BELOW THE SYMPTOMS TO Legend


ROOT CAUSES . . .
Unit of measure Legend
ENERGY COMPANY CASE EXAMPLE
Legend
Legend

Summary diagnostic 5-why process Root causes



Why?
Why? We do not like to say 'no'
Why?
Why? There is no consequence of saying yes
Why?
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

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 50
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CONTENTS Legend
Unit of measure Legend
Legend
Legend

• Introduction

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

• Appendix
– Theoretical Background
– Case Studies
– Outside- In Case Studies
• Nissan
• BAE Systems
– Further readings and contacts

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 51
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NISSAN CASE EXAMPLE – CREATING OPENNESS AND TRUST Legend


OUTSIDE IN
• Story development Legend
Unit of measure
• Leadership actions – Ghosn begins his tenure as CEO with “active
– CEO Ghosn expects his people to commit to every
observation or claim they make and sets an example by Legend
listening” – seeking the opinions of people
publicly announcing he would resign if the major goals inside and outside the company to get as much
of his “Nissan Revival Plan” are not met within 3 years Legend as
objectivity about the company’s weaknesses
– Ghosn revives the company’s flagship sports car to he could
demonstrate that Nissan is rebuilding its brand and on
the road to a full recovery.
– Ghosn quickly realizes that the loss of identity
• Cross Functional Teams (CFTs) is a huge risk for the company and mobilizes
– Each CFT had two leaders from the executive cross functional teams (CFTs) to develop a
committee, but regular members drive the work and
came up with the harsh medicine for Nissan detailed action plan – the “Nissan Revival Plan”
– CFT members have frontline experience with Nissan’s • Story delivery
operating problems and credibility with the rank and file – The nine CFTs with 10 members and their sub-
• Interactions
– Ghosn shows sympathetic ear to employees who Role-modeling Fostering teams serve as both watchdogs and
endure hardships at the production level – in granting communicators for the revival plan – explaining
full wage and bonus hikes, he demonstrated traditional understanding and the necessity for change and projecting difficult
Japanese paternalism by rewarding employees who
survived the pressure cooker of restructuring conviction messages across the entire company
– Employees recognize that the revival plan is
designed by middle-managers they respect and
trust – inside the company it is clear that the
profound changes are meant to preserve
Nissan’s dignity and restore its former glory
Mindset
and behavior • Restructure Organization
shifts – To improve transparency and cooperation across
Nissan’s four major divisions, Ghosn eliminates
the regional president posts and replaces them
Developing talent Reinforcing with with 4 management committees chaired by EVPs
in Japan
and skills formal mechanisms – Redefines roles for Nissan managers and
• Learning Renault managers that Ghosn brought with him
– Training so that all had line responsibilities and their
• Mid-level and lower-level employees contributions to Nissan were clear
receive extra training and clear – Ghosn shakes up the top management in a
explanations of how their work fits reshuffle, moving out blockers or those who
failed to meet his targets
into the overall big picture of the
turnaround • Communications
– Ghosn institutes a new policy that English – the
– Action learning language of global commerce – will be Nissan’s
• English language training classes official management language
1 expanded
vastly Footnote and offered to all • Builds common ground – French and
2
managers Footnote Japanese managers struggle equally to
• To overcome the potential for varying master a language that is not their own
3 Footnote • Edict is like a thunderbolt to management and
degrees of definitions for important
4
concepts,Footnote
a Nissan team created a serves notice to “old guard” at Nissan to
*
5
company Footnote
English dictionary of 100 shape-up or ship-out
vital words in management with clear
Quelle:
definitions Source 52
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NISSAN CASE EXAMPLE – CREATING A PERFORMANCE ORIENTED Legend


CULTURE
Unit of measure Legend
OUTSIDE IN
• Story development
– Ghosn mobilizes cross functionalLegend
teams
• Leadership actions (CFTs) to develop a detailed action plan –
– CEO Ghosn publicly offers to resign if the major the “Nissan Revival Plan” Legend
goals of his “Nissan Revival Plan” are not met • Working from the inside, the teams help
within 3 years him identify the radical changes that had
– When the revival goals are met a year ahead of
time, Ghosn pushes for an even more difficult to be made and built on the best of
target – the Nissan 180 plan elements of Japanese national culture
• “Complacency is the enemy” • Story delivery
– Ghosn takes a personal interest in selection of – Ghosn uses the middle managers from his
CFT members so he could shape the next CFTs to disseminate the difficult messages
generation of Nissan leaders
• Cross Functional Teams (CFTs) Role-modeling Fostering about the revival plan
– After achieving his goals a year early,
– Drawn from the ranks of middle management, understanding and Ghosn pushes for even greater
CFT members had line responsibilities and fully
understood the harsh medicine of their revival conviction performance improvement with the “Nissan
plan 180” plan – sell an additional 1 million cars
– CFT members had credibility with the rank and and trucks each year, reach 8% operating
file and took some of their own harsh medicine
on cost cutting and downsizing
profit margin and bring automotive debt
down to zero
Mindset • Restructure Organization
and behavior – Ghosn ends the practice of deciding promotions solely
on tenure and age, focusing instead on actual
shifts performance. The fundamental change to Nissan’s
culture is difficult, but sends a clear message to
managers
Developing talent Reinforcing with – Ghosn shakes up the top management, moving out
and skills formal mechanisms blockers or those who failed to meet his targets in a
reshuffle
• Learning • Rewards, recognition, and consequences
– On-the-job – Revamped the remuneration systems to focus on
• High performing managers are performance
– The use of stock options as a form of performance-
promoted over more tenured
based pay is sharply increased – available to only 30
managers and forced to win respect top executives in 1999, by 2002 some 700 employees
of subordinates who are older receive them
• Reengineer business processes - cost reductions
– Cuts supplier costs by 20% by demanding price cuts
1 Footnote from suppliers
– Dismantles Nissan’s reliance on the Keiretsu system of
2 Footnote interlocking cartels
3 Footnote – Engineers are challenged to take costs out of
production by reducing quality standards that were
4 Footnote much higher than competitors
*
5 Footnote
Quelle: Source 53
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NISSAN CASE EXAMPLE – ESTABLISHING SIGNIFICANT AND Legend


OUTSIDE IN

SUSTAINABLE
Unit of measure COST IMPROVEMENTS Legend
• Story development
– Ghosn discovers that Nissan has anLegend
enormous
cost burden to bear, leaving it with
• Leadership actions Legend
dangerously low margins and no profits
– CEO Ghosn publicly offers to resign if the – Mobilizes cross functional teams to develop a
major goals of his “Nissan Revival Plan” are detailed action plan – the “Nissan Revival
not met within 3 years Plan” that focuses largely on cost reduction
– When the revival goals are met a year ahead • Working from the inside, the teams help him
of time, he pushes for an even more difficult build buy-in, motivation and trust in the
targets – reach 8% operating profit margin turnaround plan so it can be achieved very
and bring automotive debt down to zero fast
• “Complacency is the enemy” • Story delivery
Role-modeling Fostering – Members of the CFTs disseminate the difficult
• Cross Functional Teams (CFTs)
– Drawn from the ranks of middle understanding and messages about cost reductions across the
entire company
management, CFT members had line conviction – Ghosn personally works hard to convince labor
responsibilities and took some of their own
leaders that while the rank and file would
harsh medicine on cost cutting and
endure some pain, the downsizing of Nissan
downsizing would prevent the collapse of the company
and the loss of all its 148,000 jobs
Mindset
• Learning and behavior • Restructure Organization
– Major restructuring leads to the closure of 5 plants
– Training shifts
and cutting 29,000 jobs
• Mid-level and lower-level employees
• Reengineer business processes - cost reductions
receive extra training and clear
explanations of how their work fits into
Developing talent Reinforcing with – Cuts 20% off supplier costs by demanding price
cuts from suppliers
the overall big picture of the turnaround and skills formal mechanisms – Dismantles Nissan’s reliance on the Keiretsu
system of interlocking cartels – despite widespread
fears, the sell-offs fail to damage relationship with
former partners
– Engineers are challenged to take costs out of
production by reducing quality standards that were
much higher than competitors
• Rewards, recognition, and consequences
– In sharp contrast to the other auto companies,
Ghosn agrees to a MetalWorkers union demand
1 Footnote for pay and bonus increases
2 Footnote • Information systems
– Created new “lean manufacturing” operating
3 Footnote system that allows for custom-built cars and trucks
4 Footnote using major components that are delivered to
Nissan factories on a carefully timed schedule
*
5 Footnote
Quelle: Source 54
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BRITISH AEROSPACE CASE EXAMPLE – FOCUSING ON CUSTOMERSLegend


Unit of measure Legend
OUTSIDE IN
Legend
• Leadership actions • Story development
– Top team formed Group of – Placed customer focus as theLegend
top
130 managers to be leaders of corporate value
transformation, and the • Story delivery
Customer Value Team to lead – Communicated corporate story
this aspect of the widely at all levels of the
transformation, and convince organization through a variety of
the group of 130 of the viability forums, e.g.,
of their plan Role-modeling Fostering • CEO forums
• Team visited exemplary • Team meetings
understanding and
customer service • Customer-focus workshops and
companies
conviction brainstorming sessions held with
• Mirrored best practices customers present
• Opinion shapers
– Group of 130 “touched” other
members of the organization Mindset
by providing role modeling and • Restructuring the organization
change champions in their and behavior
– Some BAe divisions, e.g. Military
local environs shifts Aircraft and Aerostructures, are
– Snowball effect ensued realigned around customers
Developing talent Reinforcing with • Targets and metrics
• Learning and skills formal mechanisms – Put in place Customer Satisfaction
– Training Process Model
• Trained employees against • Set service benchmarks
• Applied benchmarked service
the set customer service
standards standards
• Assigned customer personnel to
customers to ensure appropriate
coverage
• Used customer feedback to
1 Footnote ensure all customers received
2 Footnote benchmark service levels
3 Footnote • Rewards, recognition, and
consequences
4 Footnote – Rewarded employees against their
*
5 Footnote execution on set customer service
Quelle: Source standards 55
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BRITISH AEROSPACE CASE EXAMPLE – FOCUSING ON PERFORMANCE


Legend
Unit of measure Legend
OUTSIDE IN
Legend
• Leadership actions • Story development
– Top team formed Group of 130 – Legend
Used centrally launched and directed
managers to be leaders of change program, Benchmark BAe, as a
transformation, and the corporate story for the entire corporation
Performance Value Team to lead (e.g., replaced BUs individual change
this aspect of the transformation, programs)
develop action plan and convince – Placed performance focus as one of the
the Group of 130 of the viability of top corporate values, and communicated
their plan Role-modeling Fostering widely
• Identified best practices
understanding and • Story delivery
• Mirrored best practices – Cascaded new performance objectives
• Opinion shapers
conviction down the organization, tying workgroup
– Group of 130 “touched” other and personal programs to the story at
members of the organization by corporate and BU/function level
providing role modeling and
change champions in their local
Mindset • Targets and metrics
environs
– Snowball effect ensued and behavior – Set cascading goals, targets, and
shifts metrics across the organization
– Eliminated BUs’ ability to select their
• Talent upgrading own performance measures
– Replacing/retaining Developing talent Reinforcing with – Adopted external best practices as
• Completed lay-offs of 60,000 of and skills formal mechanisms benchmarks
127,000 people to achieve – Measured Benchmark BAe impact
organizational alignment with
against Benchmark scorecard and
renewed focus on core business
values against values scorecard
and skills
• Management processes
• Learning – Set and broadly communicated KPIs for
– Training
all managers using Value Based
• Instituted BEST (Benchmark
Management (VBM)
Executive Skills Training) – a
• Rewards, recognition, and consequence
1 ofFootnote
series workshops over 18
management
months
2 to expose the top 1500
Footnote – Initiated ambitious, high-reward
managers to the skills connected
3 Footnote employee suggestion programs –
to the 5 values
4 employees
Footnote in – New profit sharing program awarded all
• Trained
*
5 Footnote employees an equal allotment of free
appropriate use of performance
shares in BAe if the company exceeded
measures
Quelle: Source 56
its profit targets
070803LN(M)ZZT606GREM-P1

BRITISH AEROSPACE CASE EXAMPLE – FOCUSING ON PEOPLE Legend


OUTSIDE IN

DEVELOPMENT
Unit of measure Legend
Legend
• Leadership actions • Story development
– CEO and all executive directors – Placed people developmentLegend
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

• Learning • Organization structure


– Corporate, BU/function level
– Personal Development Plans (PDPs) Mindset • Flattened the “command and control” hierarchy in favor of
• A bold proposal from the People employee empowerment
Values Team to institute PDPs for all and behavior – Workgroup/individual level
• Formed teams as the dominant unit of working, and integrated
46,000 employees was adapted shifts personal development plans into team value plans
– Used by supervisors and members of
• Rewards, recognition, and consequence management
work teams for career planning and • Tied 5% of managers bonus to employee satisfaction surveys
skills enhancement Developing talent Reinforcing with • Targets and metrics
– Workgroup/individual level
– Facilitated the creation of different
behaviors and helped employees find
and skills formal mechanisms • Established personal development metrics, including job
appraisals
• Defined everyone’s role within their team and organizational
more fulfillment in their work context, and aligned it with the new value system
– Training
• Built systems and methods for new
skills and knowledge methods
• Put in place virtual university, team
leader training

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 57
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BRITISH AEROSPACE CASE EXAMPLE – FOCUSING ON INNOVATION Legend


Unit of measure Legend
OUTSIDE IN
• Story development Legend
– Placed innovation as one of the top
• Leadership actions corporate values
Legend
– Formed Group of 130 managers • Story delivery
to be leaders of transformation, – Formed the Innovation Forum, an
and the Innovation and annual 2-day event, to facilitate senior
Technology Value Team to lead management exploration of socio-
this aspect of the transformation, economic trends and BAe responses
develop action plan and convince to them
the Group of 130 of the viability of Role-modeling Fostering – Chairman’s Award for Innovation
their plan understanding and emphasized one-company concept
• Identified external benchmarks and sent the message that BAe values
• Mirrored best practices
conviction
brilliant innovation
– Integrated values into processes for
internal transfer of knowledge
• Talent upgrading • Organization structure
– Retaining – Set up a corporate technology board to spur cross-
• Retained mostly highly skilled people ready for
Mindset divisional technology sharing
change as the result of major lay-offs
and behavior – Established Benchmarking and Best Practice Center
• Learning to ensure that innovation and knowledge is
– Training shifts disseminated across BAe
• Built systems and methods for transfer of new
skills and knowledge methods (e.g., The Internal • Targets and metrics
Trading Framework formed to enhance way in – Established technology plan on corporate and
which teams worked together, supported each Developing talent Reinforcing with divisional level setting high-reach, breakaway targets
• Management processes
other, and shared knowledge) and skills formal mechanisms – Tasked managers with identifying new products and
– Action learning
• Instituted annual 2-day Innovation Forum in
solutions, and estimating their revenue potential
which senior management explores challenges • Rewards, recognition, and consequences
to BAe and potential responses – Created a corporate Chairman’s Innovation Award to
dramatize the need for innovation in all aspects of
company operations and reward top innovators

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 58
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CONTENTS Legend
Unit of measure Legend
Legend
Legend

• Introduction

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source 59
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FURTHER READINGS & CONTACTS Legend


Unit of measure Legend
Topic Title
Legend
Reference/Contact
Legend
• The Psychology of Change • can be downloaded from the McQuarterly webpage
Influence
Influence Model
Model Management (McQuarertly)

• 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

• Inspiring Performance Leadership: • PD Net 615403


Performance
Performance Creating an Organization ‘Built for
Leadership
Leadership Performance’

• Performance Leadership- Short • PD Net 613737


Introduction

• The Culture Cookbook: How to • PD Net 615042


Improve Business Performance
through Culture

For more information on PL, contact:


Europe – Matthias Beck, Principal (MUN), Colin Price, Director (LON), Bill Schaninger, Organization Practice Expert (LON), Elizabeth
Mohr, Organization Practice Specialist (LON), Christina Palme, Senior Research Analyst (DUS)
North America – Richard Elder, Principal (DCO), Michal Kisilevitz, Associate Principal (DCO), Paul Flatin, Practice Knowledge Specialist
(DCO)
1 Footnote
Asia
2 Pacific – Michael Rennie, Director (SYD), Tom Saar, Director (SYD), Priya Ahuja, AP Organization Practice Manager (SYD), Matt
Footnote
Guthridge, Organization Practice Specialist (SYD), Elizabeth Morris, Senior Research Analyst (SYD), Katty Dos Santos, Senior Research
3 Footnote
Analyst (SYD)
4 Footnote
*
5 Footnote
Quelle:
Note Source
: For further information please refer to the PLI section on the Global Organization and Leadership Practice website 60
070803LN(M)ZZT606GREM-P1

FURTHER READINGS – DEVELOPING TALENT AND SKILLS Legend


Unit of measure Legend
Topic Title Reference/Contact
Legend
• Recruiting: Best Practices in Human Resource Management • PD Net 511990 Legend
Hiring
Hiring

The War for Talent: Chapter Four - Rebuild Your Recruiting Strategy
• PD Net 603138

• Strategic Redesign of Employee Value Proposition • PD Net 612914


Moving on C Players: Best Practices in Human Resource Management
• PD Net 512021
Replacing
Replacing
• HBS - A New Game Plan for C Players • PD Net 603146

• HBS - A Market-Driven Approach to Retaining Talent • PD Net 512778


Retaining
Retaining
• HBS - Employee Retention: What Managers Can Do • contact Christina Palme for a copy of this article

• How Executives Grow (McKinsey Quarterly) • PD Net 512313


On-the-job
On-the-job
development
development • Personal Development: Best Practices in Human Resource Management • PD Net 511994

• Training: Best Practices in Human Resource Management • PD Net 511998


Training
Training • Perspectives on Corporate Learning in the New Economy • PD Net 512010

1 Footnote
2 Footnote
• Performance Management and Frontline Mobilization • PD Net 615260
3 learning
Action
Action Footnote
4 Footnote
• Action Learning Guidelines • contact Christina Palme for a copy of this document
*
5 Footnote
Note: For further information please refer the People Performance Management section on the Global Organization and Leadership Practice
Quelle:
website Source 61
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FURTHER READINGS – ROLE MODELING Legend


Unit of measure Legend
Topic Title Reference/Contact
Legend
Legend
Leadership
Leadership
actions
actions

• Enabling Corporate Transformation • PD Net 512207


Opinion
Opinion Shapers
Shapers in a Post Merger Environment
• Real Change Leaders • PD Net 512162

• PD Net 512309
• Improving Top Team Performance -
Interactions
Interactions CST Toolkit
• Teamwork at the Top • PD Net 600379

• Top Teams That Get Results • PD Net 600835

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Note: For further information please refer the following sections of the Global Organization and Leadership Practice website: Change Roles,
Quelle: Teams
Leadership Source 62
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FURTHER READINGS – FOSTERING CONVICTION AND UNDERSTANDING


Legend
Unit of measure Legend
Topic Title Reference/Contact
Legend
Story
Story • A Challenge for New CEOs: Telling • PD Net 512168 Legend
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

1 Footnote
2 Footnote
3 Footnote
4 Footnote
*
5 Footnote
Quelle: Source
Note: For further information please refer the Change Communications section on the Global Organization and Leadershio Practice website 63
070803LN(M)ZZT606GREM-P1

FURTHER READINGS – REINFORCING WITH FORMAL MECHANISMS Legend


Unit of measure Legend
Topic Title Reference/Contact
Legend
Organization
Organization • The Formal Organization Design • PD Net 601527 Legend
structure
structure Handbook

• Streamlining Decision-Making • PD Net 512755


• Making Value Happen - Defining • PD Net 512836
Value Drivers
Targets
Targets and
and
metrics
• Making Value Happen - Managing • PD Net 512900
metrics
Business Performance
• Key Performance Indicators (KPI) - A • PD Net 512367
Working Guide

• Effective Top Management • PD Net 512593


Management
Management
processes
processes • Business Disaggregation and • PD Net 512143
Corporate Center Design to Achieve
Superior Performance (Appendix)

Business
Business • The Business Process Redesign • PD Net 511039
processes Almanac - How to Make Overhead
processes
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

• Performance Goals and Evaluation: • PD Net 512009


Best Practices in Human Resource
Management
1 Footnote
2 Footnote
Information
Information • please turn to BTO for Information
systems
systems on this topic
3 Footnote
4 Footnote
*
5 Footnote
Note: For further information please refer to the following sections of the Global Organization and Leadership Practice website: Organization
Quelle:Business Performance
Design, Source Management Top Management, Compensation and Incentives 64