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Achieving Alignment

February 4, 2009

The higher one climbs in an organization, the greater the need to emphasize the role of organizational architect. Strategy, structure, systems, skills, management approaches, and compensation / rewards programs must be in alignment. Otherwise the leader will feel like s/he is pushing a boulder uphill every day. Planning to assess these areas should be in the 90 day plan.

To effectively design organizational architecture, five elements of organizational architecture need to work together.

1)      Strategy. The core approach the organization will use to accomplish its goals

2)      Structure. How people are situated in units and how their work is coordinated

3)      Systems. The processes used to add value

4)      Skills. The capabilities of the various groups of people in the organization

5)      Culture. The values, norms, and assumptions that shape behavior

Misalignments in any of these areas can make even the best strategy useless. Strategy determines each of these elements and if you change strategy, there will be need to be adjustments in each of these areas.

During the first 90 days, the goal is to identify misalignments and design a plan for correcting them. Common types of misalignments include the following:

  • Skills and Strategy Misalignment
  • Systems and Strategy Misalignment
  • Structure and Systems Misalignment

Frequently, leaders attempt to address these problems without doing the appropriate analysis. This typically only exacerbates the problem. Here are examples of efforts that are likely to fail.

  • Trying to restructure your way out of deeper problems without understanding the root causes. Doing so may create other misalignments, disrupting the group, lowering productivity, and damaging your credibility.
  • Creating structures that are too complex, such as matrix management, can often create bureaucratic paralysis. Simplifying the structure may be the right solution because it provides for the greatest degree of accountability.
  • Automating problem processes often creates problem processes that create problems faster. In any redesign, analyze processes first, then apply technology and then refine the organizational structure for that process.
  • Making changes for the sake of change alone and before there is an understanding of the business may aggravate difficulties.
  • Overestimating your group’s capacity to absorb strategic shifts may result in greater confusion. Groups need to absorb changes.

There is a specific logic to aligning an organization.

1)      Start with Strategy. The author dedicates a few pages to crafting strategy. He asserts that it centers on customers, capital, capabilities, and commitments. While accurate, he acknowledges that his discussion is limited and is too simplistic. He suggests additional books be read on the subject. A deeper understanding of the industry, competition, differentiation and positioning, tactical planning, etc is required.

2)      Look at supporting structure, systems, and skills. The author examines this area briefly as well. Although he does not discuss this, what needs to be reviewed are the three layers of every department /  organization:

  • Physical / Technical Layer which contains the processes, supporting technologies and organizational structures
  • Infrastructure Layer which addresses measurements, management methods, and rewards system
  • Values Layer which addresses the organizational culture, political power / decision making and individual belief systems.

It is important to assure that there is an appropriate knowledge base, neither too broad nor narrow, in each group so that it may perform effectively.

3)      Decide how and when you will introduce the new strategy.

4)      Reshape structures, systems and skills, simultaneously. This is business process redesign and involves the physical / technical layer, infrastructure layer and value layer.

5)      Close the loop. There will be lessons learned that will lead to continuous improvement.

To initiate a cultural change, consider the following methods:

  • Adjust the performance measures and incentives. People will take action on what is measured and rewarded.
  • Set up pilot projects. Allow opportunities to test new approaches or methods.
  • Judiciously bring in people from the outside to stimulate creative thinking and discipline among group members. Facilitators, with broad business backgrounds, can surface issues that will create dialogue and change.
  • Promote collective learning so that alternatives are investigated.
  • Engage in collective visioning as brainstorming stimulates new thinking.

Categories: Hiring, Leadership, Strategic Plans, Strategy

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Negotiating Success

January 30, 2009

According to Professor Watkins, to succeed with a new boss (the American People?)  or  for that matter, a new Congress, it is critical to invest the time in the relationship up front. Your new “boss” (and here you can substitute the word “Americans” to relate to President Obama’s situation) sets your benchmarks, interprets your actions for other key players, and controls access to the resources that you need. This person will have more impact than any other individual on your eventual success or failure.

Negotiating with the boss is about determining the shape of the game so that you have a fighting chance of success in achieving your desired goals. It is here that realistic expectations are established, consensus is reached, and resources secured.

If you are in realignment, you need the boss to help you make the case for change. In a sustaining success situation, you need help to learn about the business and avoid early mistakes that threaten the core assets. In start-ups, you need resources and protection from too much higher-level interference. In turnarounds, you may need to be pushed to cut back the business to the defendable core more quickly.

There are certain dos and don’ts concerning how to build a productive relationship with one’s boss.

Don’ts

Dos
  • Don’t trash the past. Understand it instead — and concentrate on assessing current behavior and results and making the changes necessary to improve performance.
  • Take 100% responsibility for making the relationship with your boss work. The responsibility rests with you.
  • Don’t stay away. Get on your boss’ calendar regularly. Be sure that your boss is aware of the issues that you face and that you are aware of the boss’ expectations and how they are shifting
  • Clarify mutual expectations early and often. Begin managing expectations right away.
  • Don’t surprise your boss. Report emerging problems early enough. The worst scenario is for your boss to learn about a problem from someone else. Give him or her a heads-up as soon as you become aware of a developing problem.
  • Negotiate timelines for diagnosis and actual planning. Do not let yourself get caught up immediately in firefighting. Buy yourself some time to understand the organization and come up with an action plan.
  • Don’t approach your boss with only problems. Bring along a plan as well. This does not mean that you need full blown solutions every time. The key is to give some thought to how you plan to address the problem, to your role, and the help that you will need.
  • Aim for early wins in areas important to your boss. Figure out what the boss cares about the most. One way to do this is to focus on three things that are important to your boss and discuss what you are doing about them every time you interact. However, do not take actions that you think are misguided.
  • Don’t run down your checklist. Running through a checklist of what you have been doing is inappropriate. However, updating on what is being attempted and how the boss can help is appropriate.
  • Pursue good marks from those whose opinions your boss respects. Be alert to the multiple channels through which information about you reaches your boss.
  • Don’t try to change the boss. Adapt to his or her style and idiosyncrasies.

There are five conversations that should be held on an ongoing basis.

1)      Situational Analysis Conversation. It is important to understand how your new boss sees the business situation. How did the organization reach this point? What are the challenges? What resources can be drawn upon?

2)      Expectations Conversation. What does your boss need you to do in the short-term and medium-term? What will constitute success? How will performance be measured? When? Are there any areas that are untouchable? Learning the answers to these questions will allow you to reset expectations. If you are operating from different perspectives, it is critical that you have a conversation that creates alignment. Be conservative in what you promise and focus on over-delivering. If you have multiple bosses, it makes sense to bias your efforts to the one who has substantially more power early on, as long as you redress the balance, to the extent possible later on. If you cannot get agreement working with your bosses one-on-one, it is appropriate to bring them to the table together to avoid getting pulled to pieces.

3)      Style Conversation. This is about how you and your boss can best interact on an ongoing basis, i.e., in writing, face-to-face, voice-mail, and/or email? How often? On what kind of decisions does s/he want to be consulted and where can you make the call yourself? How are your styles different and what are the implications of those differences?

4) Resources Conversation. This conversation is essentially a negotiation for critical resources and should be had once you have agreed upon the diagnosis. The first step is to identify what resources are needed given the state of the business. In turnarounds and realignments, the need for resources is far greater because different skills and experiences are required. A menu approach that reflects different results based on different levels of commitment may be appropriate. Focus on the underlying interests of your boss and tailor resource requests accordingly. Look for mutually beneficial exchanges that support both of your agendas.

5) Personal Development Conversation. This conversation should only be held once your relationship has matured. In what areas do you need improvements? What actions or courses could you take? Discipline yourself to be open to learning about new skills that are required for the new role.

Categories: Crisis Management, Leadership, Sales, Strategic Plans, Strategy
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Securing Early Wins

January 28, 2009

While it is important to secure early wins, it is equally important to avoid early losses. Common causes of early losses include the following:

  • Failing to focus. This appears as having too many initiatives. Identify the moist promising opportunities and concentrate on them
  • Not taking the business situation into account. What constitutes an early win in one situation can be a waste of time in another. See the table above regarding examples for each type of situation.
  • Not adjusting for the culture. Leaders who come from outside the organization naturally assume their old culture is in existence. Be sure to understand what the organization considers a win.
  • Failing to get wins that matter to your boss. Addressing problems that your boss cares about will go a long way toward building credibility and cementing access to resources.
  • Letting your means undermine your ends. Process matters. The early win must be accomplished in a manner that exemplifies the behavior you hope to instill in the organization.

Studies show that successful change is implemented in “waves” with distinct phases. These phases include acclimatization, change, consolidation, and deeper learning so people can catch their breaths. What follow are deeper and more thorough structural changes. The final wave is focused on fine-tuning to maximize performance.

Each wave ought to consist of distinct phases.

  • Learning
  • Designing the changes
  • Building support
  • Implementing the changes
  • Observing results

The goal of the first wave of change is to secure early wins that build personal credibility, establish key relationships, and identify and harvest low-hanging fruits – the highest-potential opportunities for short-term improvements in organizational performance. These targets should be consistent with your A-item business priorities and introduce the new patterns of behaviors that you want to instill in the organization.

A-item priorities should

  • Follow naturally from core problems
  • Be neither too general nor too specific. They must include measures for overall success so that wins may be recognized. In other words establish S-M-A-R-T goals but not goals that result in micro-managing.
  • Offer clear direction yet allow for flexibility when you learn more about the situation. This is an iterative process. Be prepared to test, refine, and restate the goals.

To realize A-item priorities, it is imperative to eliminate dysfunctional behavior. To alter culture, the new leader must define which behaviors are desired and which ones are not. Some organizations refer to this as the creation of a management philosophy but the key element is that the behaviors must be defined. It is also important to note that every culture has good points and faults. It is crucial that the good points are maintained so that people have stability in times of change. Elevate and praise the good points that already exist so that people have a bridge to the future.

In turnaround situations, bringing in new people from the outside and setting up project teams to secure performance improvement initiatives are a good fit. In realignments, it may be well advised to start out with less obvious approaches to behavior changes. The new leader can set the stage for collective visioning by changing performance measures and beginning to benchmark.

Once the A-items have been identified and behaviors have been defined, detailed plans for early wins may be created. During the first 30 days these wins are about building credibility and deciding where you will focus your energy to achieve early performance improvements in the next 60 days. The goal of a second wave of change, once this has been accomplished, is to address more fundamental issues of strategy, structure, systems and skills to reshape the organization. This is when the real gains of organizational performance are achieved.

To build credibility,

  • Determine what you want to get across about whom you are and what you represent.
  • Decide the best way to convey those messages.
  • Identify your key audiences (direct reports, other employees, and key outside constituencies). Craft messages tailored to each focusing on who you are, the values and goals that you represent, your style, and how you plan to conduct business.
  • Think about how you introduce yourself. Should you first meet with your direct reports as a group or individually? Will the meetings be informal get-to-know-you sessions or immediately focus on business and assessment? What other channels such as e-mail or video will you use to reach people? Will you meet people at other locations?
  • Remove minor but persistent irritants to your organization.
  • Focus on strained external relationships and begin to repair them.
  • Cut out redundant meetings, shorten excessively long ones, and improve physical space problems.

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Matching Strategy to Situation: The STaRS Model

January 21, 2009

Professor Watkins emphasizes the importance of matching strategy to the situation appropriately. The author says that there are essentially four types of business situations that new leaders must address.

Each business situation has different characteristics, challenges, and opportunities. Yet, every business has a portfolio of situations. A new leader must figure out which situations fall into each category. He calls this the STaRS model.

1)  Start-up: There isn’t much existing infrastructure to build on. The new leader must assemble the capabilities including people, funding and technology to get a project or business off the ground. Among other things, to be successful, he must do things right from the beginning, energize people about the possibilities and focus on learning about the technical issues, products, markets, technologies, projects, and strategies. Early wins are putting the right team together and achieving strategic focus as well as determining what not to do and building discipline within the organization.

2) Turnaround: Like the start-up, there isn’t much existing infrastructure to build on. The new leader should take on a unit or group that is in trouble and get it back on track. She or he accomplishes this by cutting it down to a defendable core fast and then beginning to build it back up. Among other things, to be successful, the focus should be on reenergizing demoralized employees and other stakeholders and handling time pressures in order to make a quick, decisive impact. The leader requires authority, backed by political support, in order to make tough decisions such as painful cuts and difficult personnel choices. In this situation, everyone recognizes that change is necessary, but not what changes may be necessary. Affected constituencies may offer significant support and a little success goes a long way.

3) Realignment: This type of organization has significant strengths as well as serious constraints on what you can and cannot do. Typically, there is some time before making major calls. As a result, you can learn about the culture and politics. The intention is to revitalize a unit, product, or process that is drifting into trouble. The major issue here is that the organization is in denial. It is essential to understand what made the organization successful and why it drifted into trouble. To be successful, the leader must deal with deeply ingrained cultural norms that no longer contribute to high performance and convince employees that change is necessary. The successful leader must secure consistent public backing and support to confront the need for change. The leader must teach people about the problem

4) Sustaining success: The organization has significant strengths and serious constraints on what you can and cannot do. In this situation, the successful leader plays good defense by avoiding decisions that cause problems. He should develop the financial and technical resources to sustain the core business as well as exploit promising new opportunities. He should find ways to take the business to the next level. Typically, there is some time before making major calls. As a result, he can learn about the culture and politics and work to preserve the vitality of a successful organization and take it to the next level. S/he will need to invent the challenge and redirect resources.

It will be interesting to view the actions of President Obama in the context of these models.

Categories: Hiring, Leadership, Strategic Plans, Strategy
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A Blueprint for the New Leader to Effect Change

January 18, 2009

The transition from one presidential administration to another is nearly complete and the country is visibly excited.

There is no doubt that part of this excitement stems from public’s sense that Mr. Obama has demonstrated extraordinary effort in planning his presidency. He certainly seems to be working diligently to avoid the consequences of the aphorism, “Failing to plan is planning to fail.” Our country seems to appreciate the efforts of the President-elect and this is reflected in his approval ratings which are remarkably high.

There have been numerous books written on how a new leader should take charge and this seems like a great time to look at how Mr. Obama should be approaching this important initial period. One of my favorite books on this topic is The First 90 Days by Harvard Professor Michael Watkins.

Watkins’ work is instructive for all of us, but in the context of this “new beginning” one can see the areas that Mr. Obama has been addressing and which ones he will likely be focusing on in the days ahead.

Here’s the short list.

1)     Promote Yourself. Psychologically break from your previous role in order to take charge of your new role. You are likely to need new skills to be successful at this new level.

2)     Accelerate Your Learning. Focus on understanding markets, products, technologies, systems, and structures as well as its culture and polities. Do this systematically.

3)     Match Strategy to Solution. Diagnose whether you are in a start-up, turnaround, realignment, or sustaining success situation. Each requires a different strategy. You may have different parts of your organization in different situations.

4)     Secure Early Wins. Early wins build credibility and create momentum.

5)     Negotiate Success. Figure out how to build a productive relationship with your boss and manage his or her expectations. This means critical conversations about the situation, expectations, style, resources, and personal development. Gain consensus on your 90 day plan.

6)     Achieve Alignment. This is a strategic role. The higher that you rise within the organization, the more that you have to play the role of strategic architect. This means evaluating strategy, developing appropriate organizational structures, and developing the systems and skills necessary to realize your strategic intent.

7)     Build Your Team. Inheriting a team frequently means restructuring it to better meet the demands of the situation.

8)     Create Coalitions. Develop supportive alliances, both internal and external. Identify them now as well as ways to line them up on your side.

9)     Keep Your Balance. Develop a network that can advise and counsel you so that you do not lose perspective. It can be difficult to look out from the inside.

10)  Expedite Everyone. Help everyone accelerate their own transitions to their new roles.

This week, we’ll talk more about the bottom half of this list.

* * *

Now some thoughts about President Bush as he leaves office…

Without a doubt, the Bush Administration left us with far too many challenges. We should, however, also acknowledge that there were no further attacks on American soil after 9/11. At that time, we were shaken and disheartened and scared and whether by intention or good fortune, the Bush Administration did keep us safe at home and helped us to reclaim our sense of balance.

We likely will never know if we were safe by design or by the Good Lord watching over us (or, of course, both) nor will we probably ever know how many plots to hurt our fellow citizens were thwarted.

Still, if we choose to discredit this Administration for the financial situation we find ourselves in today and the war in Iran, for our safety after 9/11, we should express our appreciation. The Bush administration also looks to have worked diligently during this transition period and that will, without a doubt, help the new president in moving us forward. Thank you, President Bush.

Let us also take a moment to remember that we are still blessed to live in a country that has the greatest opportunities and the most remarkable freedoms.

And now on to new beginnings and may the best be yet to come.

Categories: Crisis Management, Hiring, Leadership, Sales, Strategic Plans, Strategy
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Guidelines for Delegation

January 4, 2009

As with most management techniques and interventions, there are guidelines and strategies that will help to assure a successful delegation process. Here are some that I have found to be most effective and important.

  • Define the task and clarify the goals. Confirm in your mind that the task is suitable to be delegated. Understand what you hope to achieve by delegation.
  • Select the individual. Be clear as to why you are selecting this person to perform the assignments. Make certain that he or she has the skills or can grow from the opportunity. Assess the person’s ability and provide the appropriate training and coaching, if necessary.
  • Explain the reasons for delegation and clarify relevant policies. You must explain to the person why the job is being delegated and why he or she has been selected. The person must also have context as to where the assignment fits into the overall scheme of things and be provided with any background data that is necessary.
  • Agree on the expected results and deadlines. Make sure that the individual understands what tasks he is expected to perform, what the expected outcome is, and by when the task must be completed. This will also assure that you have the individual’s buy-in. Such goals should always be linked to the company’s basic objectives of profitability, effectiveness, efficiency, customer satisfaction, community service, etc. Be explicit. For example, “When you report back, I’ll be expecting information on the costs of the project, how much manpower we’ll need, any obstacles you foresee, the sequence in which we will have to operate, and the milestones for each stage.”
  • Define authority and responsibility. The authority needed to get the job done should be commensurate with the responsibility. Make sure the individual knows whom to turn to if the demonstration of authority causes a problem.
  • Make sure the appropriate resources are available and limitations are set. Discuss and agree what resources are required to get the job done. Consider people, location, premises, equipment, money, materials, other related activities and services. Fix a top limit for expenditures and determine the limitations that may have to be imposed if you anticipate possible conflict with another department.
  • Check the lines of communication. Make sure that the delegate knows with whom he or she will have to interact and that all such people are committed to being available to him or her for giving and receiving needed information.
  • Institute controls. Establish reporting intervals with the delegated party so that progress can be discussed. Establish milestones that allow for spot-checking. Make certain the person understands what milestones and controls will be used.

    Setting up guidelines though is not enough, especially in the case of a permanent delegation. Delegation is never abdication. Contact must be maintained for the purposes not only of control, but also to give assistance, recognition and encouragement as necessary or desirable. To delegate responsibility is not like launching a ship and praying that it will make safe harbor; you have to serve as the lighthouse for all of your ships at sea.

    Categories: Hiring, Leadership, Strategic Plans, Strategy
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    Five Practical Guidelines when Hiring

    November 9, 2008

    Here are some practical considerations that are now part of my hiring process. They are a result of both experience and my research into what other executives, such as Jack Welch, have done to make their hiring process more successful.

    1. Think Through the Assignment

    Job descriptions may last a long time, but the assignments and the challenges associated with a position fluctuate with the changing conditions of the organization and the environment or marketplace. If the challenges are different, then the talents and skills necessary for the role will change. Undoubtedly, the role of Treasury Secretary today is different than the one of two years ago – yet the job description may well be the same. To grow a new area from scratch is very different from managing a seasoned team. If the team is getting close to retirement age, the new sales manager may need people development skills to grow the new team. As a leader, you must get to the heart of the assignment.

    One of the ways to determine what is at the “heart of the assignment” is to revisit the strategic plan. By understanding the strategic goal and the tactics necessary to achieve the goal, one will be able to understand the key skills required to achieve success in a role. As a result, your thinking shifts and a new set of candidates may emerge.

    2. Look at a Number of Potentially Qualified People

    The key word here is number. Formal qualifications are a minimum for consideration, as their absence would eliminate the candidate. The person and the assignment need to fit each other. To make an effective decision, three to five candidates should be considered.

    3. Think Hard about How to Look at These Candidates

    The crucial issue is to understand the focus and priority of the assignment. The primary questions are, “What strengths does each candidate possesses?” and “Are these strengths the right ones for the assignment?” While weaknesses may rule a candidate out, if the answers to these questions are that s/he is the right person for the assignment, regardless of a particular weakness, then that person gets the job. It is then the company’s responsibility to provide the additional training, talent, or skills to mitigate the effects of that weakness.

    4. Discuss Each of the Candidates with Several People who have Worked with Them

    One executive’s opinion is worthless. That’s because we all have biases, prejudices, likes, and dislikes. Competent executives do this routinely and informally. My former partner, a senior executive at Microsoft, has five to seven people in the interview loop. If the candidate does not meet the approval of this group, the candidate is eliminated from consideration. Each interviewer is also assigned a specific attribute or characteristic of the candidate for evaluation. One might evaluate analytical problem solving while another might evaluate collaborative skills. By following this discipline, one gains valuable additional perspectives.

    5. Make Sure the Appointee Understands the Job

    After the appointee has been in a new job for three or four months, he or she should be focusing on the demands of the job rather than on the requirements of preceding assignments. It is the executive’s responsibility to call that person and say, “You’ve now been manager for three months. What do you have to do to be a success in your new job? Think it through and come back to me in ten days and show it to me in writing.” It is critical that you, as a manager, assist others to think through what a job requires. Frequently, these requirements are not the traits that the performer thinks got him the job in the first place. And as we will discuss later on, if this person was promoted to this position, it is almost a one hundred per cent certainty that he will have to shift his work approach and focus in order to be successful in his new role.

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