Principle Based LeadershipEstablishing True North

Troy DuMoulinVP Research & Development

Pink Elephant

Welcome & Agenda

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1. Principles / Values Based

Leadership

2. Personal Balance & Fulfillment

3. Establishing True North

4. Hoshin Kanri Planning

5. The Results Pyramid

Objective

Understand how Lean Leaders establish

organizational alignment & produce results

Lean Leadership Is Principle Based

A ”Principle" is a shared understanding and

acceptance of a value or truth that is certain and is not up

for debate.

A ”Value" is a person's personal belief for or against

something.

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Shared Values & Culture

Organizational Culture is the collective result of how people on the team think and behave, their shared values and how they react to internal and external stimuli. A company culture is either decisively created and nurtured from the very beginning or - more typically - it develops haphazardly over time through the beliefs and experiences of those on the team.

4How Values-Based Leadership Transforms Organizational Cultures - Forbes

Principles and Values Should Match

Finding Balance:

Principled-driven people typically develop their

personal values to align with a larger set of shared

principles.

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Finding Meaning & Fulfillment

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Autonomy: The need of a person to direct their own

path

Mastery: The desire and pleasure of people who

become excellent at something.

Purpose: People are motivated by the fact that they

do something for a reason or contribute to

something greater than themselves

The Three Dimensions Of Behaviour

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Self-Interest

Habit 1 - The practice of intentional and proactive choice means to be led by

Principle vs. External Pressure or Self-Interest. Lean describes specific

principles that drive organizational effectiveness.

• What do I value?

• How do I respond?

• Choices?

External

Pressures

Principles

(True North)

Establishing True North

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Any organization that wishes to gain alignment needs to start with a shared Vision.

Lean Leaders understand the importance of creating True North Values.

Motivating employees by connecting organizational

goals to employees’ personal values.

Systems Thinking & IT Culture

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Velocity = Speed With Direction!

Shingo Model™ - Utah State University

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Business improvement through the

understanding of the relationship between

principles, systems, tools and results

Hoshin Kanri – (Policy Deployment)

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“A management system in which all employees participate, from the top down and from the bottom up,

and humanity is fully respected.”

- Dr. Kaoru Ishikawa

Ensures alignment across all aspects of IT operations:

Vertical alignment ensures all stakeholders from the boardroom to operations are aligned

Horizontal alignment ensures that cross-functional stakeholders of each value stream have aligned goals

Catch-Ball Communication

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A proposed vision is expressed by the leader

The subordinate responds with an interpretation

The leader then reviews the feedback

The ball (idea) is passed back and forth, new ideas emerge, as do consensus on the right course of action

How

Any time when cascading goals

Any time that a higher level planning team is asking others to implement their plans

When

A method of idea generation

To confirm the practicality of proposed plans

Actively solicit feedback and ideas from the "lower" level people that are responsible for actually implementing the plans

What

The 7 Steps of Hoshin Planning

Establish Organizational Principles & Vision

Develop Breakthrough Objectives (Missions)

Develop Annual Objectives (Strategy Planning)

Deploy Annual Objectives (Program Mgmt.)

Implement Annual Objectives (Projects / Kaizen)

Monthly Review

Annual Review

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C

A

T

C

H

B

A

L

L

Self Reflection

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2

3

4

5

6

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True North: Case Study Example

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Principles / Values

• Build Trust

• Speak Up

• Reach Out

• Innovate Now

• Prioritize Work

• Go Team

IT Vision

Business Vision?

Annual Key Result Areas:

• Customer Sat. - Baseline

• Cost of Ops – 5% decrease

• Close Problems – Close to 0%

• Reduce Tech Diversions (Shadow IT) – by 10%

• Associate Onboarding – Employee Start Day

• Portfolio Mgmt.

• Program Mgmt.

• IT Operating Model

• Capability

• Process

• Roles (K&S)

Blue: Exists

Grey: Undefined

Discussion, there is no way to align, qualify

/ quantify / measure the Key Result Areas

without the grey areas being defined and

mapped

Break Though Objectives

(Missions)

• Projects

The Results Pyramid

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Results1 Results2

Actions1 Actions2

Beliefs1 Beliefs2

Experiences1 Experiences2

Behavior Change

Culture Change

Rogers Connors / Tom Smith

Questions & Thank You

Troy DuMoulin

t.dumoulin@pinkelephant.com

blogs.pinkelephant.com/troy

@TroyDuMoulin