Changing the way we Change and Execute Strategy

Changing the way we change: Making it happen Jeremy Tozer, Associate Faculty Presented at Henley Business School 23 May 2013

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After six months, new business written more than doubled, assets grew by more than 31%. Cost to income ratio remained under 30%, ROE exceeded 36%. Leadership was strengthened, time freed up for strategic work, a healthy internal competitive spirit was developed together with a structure that enables rapid and uninhibited communication flow and effective, timely decisions. Business Customer Division of a Bank.

FACT:

Reduced the budgeted investment of an internetworking company customer service division by 60% through the elimination of unaligned work over six months; while winning 2 industry awards.

FACT:

Resolved an “unsolvable” 18 month old $5 billion global supply chain, inventory and channel partner change problem for an internet working vendor in four months.

FACT:

Making it Happen: Results Guaranteed

Doubled the productivity of a bank’s capital financing division in nine months at the same time as more than halving the two year anticipated time for this major change. Multi-skilling achieved and morale increased.

FACT:

Identified $272 million of annual savings for a technology company through customer service process improvements – within just four months.

FACT:

In eight months, an hotel chain’s bookings increased by 50%, customer satisfaction doubled, and QA audit accuracy was raised from 48% to 97%. Head office staffing was reduced by 25%, annual consultancy spend was reduced by 88% while simultaneously raising morale and reducing staff turnover. After 18 months, revenue doubled and franchisee satisfaction trebled.

FACT:

2 © Jeremy Tozer 2013 www.tozerconsulting.com

http://www.tozerconsulting.com/

1. Where does resistance come from and how do we get aligned hearts and minds behind strategy and change?

2. What does this mean for leaders and leadership in the world of continuous change?

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Making It Happen: Questions for Executives

© Jeremy Tozer 2013 www.tozerconsulting.com


• Globalisation Paradox: Consistency yet Fragmentation, Localisation

of Solutions with Global Coherence

• VUCA & Global Risks: Economic, Illegal Economy, Water/Food/Energy

Security, Climate & Demographic Change

• ICT & The Compression of Time and Space: Social Media,

Smartphone Apps, email results in proliferation of data of dubious

provenance, blurred relationships/boundaries (‘information

anarchy’)

− Exponential Rate of Change

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Context External Factors



• People: Unpredictability, Stress & Emotion, Expectations, Mobility &

Cynicism

• Systemic: Sources of ‘Friction’ in Execution

• Leadership Capability required by an Agile Organization:

− In Depth and Breadth!

− Integrated and Sustainable —beyond the individual

− Common, Adaptable, Scalable, Durable

− Beyond Fads, Panaceas & Silver Bullets!

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Context Internal Factors



Q - Where does resistance come from and how do we get aligned hearts and minds behind strategy and change? • What are the systemic causes of ineffective execution of strategy? • How do we secure commitment in the process of creating ‘alignment’?

“For change you need stability; without stability people pursue survival and, after ructions, return to square one or worse.” Alistair Mant

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Making It Happen: Key Questions for Executives



Strategy: The high-level outline plan to deploy organizational resources and exploit capabilities; in order to achieve a defined ‘end-state’ or long-term aim while fulfilling the organization’s purpose.

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Operational Art : The orchestration of a campaign to convert strategic direction and objectives into tactical activity within a geographical or functional area of responsibility.

Tactics: The deployment of integrated, coordinated and cohesive units and resources in order to achieve tasks with maximum economy of effort and effectiveness, in order to further the achievement of operational and strategic objectives.

What do we mean?



Poor Conceptual Process, Exclusive Social Process

What are the systemic causes of ineffective execution of strategy?



Q - What does this mean for leaders and leadership in the world of continuous change? • What is different & common to leadership at different levels? • How do we systematically and dynamically align activity while

simultaneously engaging people? • How do we make better decisions in VUCA environments? • What are the implications for developing leaders and leadership?

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Making It Happen: Key Questions for Executives



What is different to leadership at different levels?

10 © Jeremy Tozer 2013 © Jeremy Tozer 2013 www.tozerconsulting.com


What is common to leadership at different levels?



• Freedom Implies Discipline

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Embrace the Paradox



You can get in your car and choose where you wish to drive to, that’s freedom ! But why do you drive on the left in the UK?

• Because you expect others to do the same:

– self-interest dictates you drive on the left to avoid a collision, and – consideration for others encourages you to drive on the left

• Because it is illegal not to, and the police will feel your collar if you

don’t!

That’s discipline —a combination of imposed discipline or rules, and self-discipline based on self-interest and consideration of the right and proper thing to do.

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Embrace the Paradox



Trust others to get on with it, provide: • Coaching, Feedback • Performance Management • Conflict Resolution

• Delegate what to achieve and why, not how, to your subordinates and not to theirs! • Minimum constraints for coordinated action • Ensure your intent and desired effects are understood 2 down.

• Facilitate action planning with stakeholders

• Understand higher intent and desired effects ‘2 up’. • Clarify ‘mission’- back brief upwards/sideways •Analyse ‘factors’ , prioritise tasks • Identify options, select one • Facilitate process with stakeholders

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How do we systematically align activity while engaging people?



How the leader does this determines engagement: Facilitate? Coach? Tell?

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•Deliberate Appreciation: Formal & documented, strategic

• Quick Appreciation: Informal & mental, tactical

Making better decisions in VUCA environments? The Appreciation : Effects-Based Decision Making



Decision-Making Cycle: The Appreciation

The Intelligence Cycle

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Making better decisions in VUCA environments? Informed by Intelligence: A neglected part of marketing?



Iterating, recurring and common leadership disciplines to create dynamic alignment, engagement and accountability —flexible handrails, intelligently applied with appropriate style and ‘social process’.

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What do we mean by these terms?

Leader: A person responsible for achieving organizational objectives through the work of others by creating the conditions in which they may be successful, and for building and maintaining the team of which he or she is a member. (Tozer, 2007)

Leadership: The capacity (skills, knowledge, intellect) and will to rally people to a common purpose together with the character (behaviour & attitude, EI) that inspires confidence and trust. (Tozer, 2007 after Montgomery)

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What are the implications for developing leaders and leadership systemically, sustainably?



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What are the implications for developing leaders and leadership systemically, sustainably?



• Doctrine – a framework for common understanding;

‘how to think’ NOT ‘what to think’

An effective leadership doctrine integrates:

• Common expectations of leaders at all levels in all functions

• ‘Leadership principles and practises’ for creating systemic, dynamic

alignment, ‘role and task clarity’

• ‘Organization-building’ features of executive roles

• Organizational values and standards

• Individual adaptable style and appropriate behaviour (emotional

intelligence)

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A Leadership Philosophy or Doctrine?



What does this approach achieve?

• The business performance results on the first slide —

improvement to productivity, cost reduction, revenue growth

and profitability

• Integrates and aligns activity, engages people and stakeholder

groups, improves agility —change capability & readiness

• Builds collective and individual leadership , enables leaders to

lead —change, OD etc —rather than HR!

• Ends reliance on ‘force of personality’ and on the expertise of

individual personalities

• Integrates leadership development with talent

management/succession planning, and performance

management with business planning 22 © Jeremy Tozer 2013 www.tozerconsulting.com
