Welcome
The Line of Sight to Success
AlEx™
Copyright PDS Group 2009 All Rights Reserved
Why do so many initiatives fail?• 60%+ of change initiatives fail in North
America• 70%+ of leaders expectations are
not understood by their people about a major change – particularly when down-sizing
• 72% of people hired are terminated within 2 yrs due to lack of alignment
In the last 12 years, 2 in 3 failure rate has not changed – From Kotter (1996) to McKinsey (2009)
To Err is Human…..10yrs onINQRI observed (12/09):
• Ten years later, medical errors are still a widespread problem in the American health system. More than 1.5 m Americans are sickened, injured, or killed by medication errors each year. 1.7m Americans battle illnesses due to hospital acquired infections, 99,000 of whom die.
• The information from INQRI shows that medical error morbidity and mortality is on the rise, not on the decline, despite the attention paid to this vexing issue
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How can these quality issues be addressed?
• Are there best practices that are easily transferable from setting to setting?
• What taking concrete steps to improve quality by aligning integrated delivery systems?
• What role can an alignment process play in overcoming cultural inertia?
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Implementation Challenge
Poor Strategy Execution - Impact95% of employees don’t understand company strategy50% of average employee’s time spent on non-productive work50% more likely to have turnover
Non-Financial FactorsValued Most By Investors
Attract Talented People
Innovativeness
Quality of Strategy
Management Credibility
Strategy Execution
FactorsStrategy Execution
Sources: “The Balanced Scorecard” David P. Norton; Arthur Andersen estimate: Corporate Strategy Board research;Measures That Matter,” Ernst & Young, LLP, Gates, Stephen, Aligning Strategic Performance Measures and Results
Companies Not Delivering Consistently on Strategy
Only 1 in 10 can consistently achieve their Strategy’s full potential
>90%
<10%
AlEx™
Sales
Employees
Business Partners
Executive Team
Owner
Research
Customer Relations
Marketing
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Increased sales 10%-15% in 30 weeks
Increased Customer Sat.
Ratings(4th – 1st)
Increase Revenue14% in 6 months
Prevented Restructuring
Failures
Gross Revenues Up from $20m to $30m
Closing RateImproved by 66%
Delivered Building OTIF & No Legal IssuesIsolated Hi
Performing TeamsFactors
Signs of misaligned expectations
“That’s not what I meant…”
“This is not what I asked for!”
“My colleagues don't seem to do what I expect...”
“They never tell us the whole story!”
“I can never do anything right!”
“They never send us information,
we’re always sending information to them!”
Sound familiar?
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Aligning Expectations is a Two Way Street – Four Blocker
Your Expectations
of Me
What You Think I
Expect of You
What I Think You Expect
of Me
My Expectations
of You
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Cliff & Tom’s Four Blocker
What Cliff Thinks Tom Expects of
Him
Tom’s Expectations
of Cliff
What Tom Thinks Cliff Expects of
Him
Cliff’s Expectations
of Tom
22 12
4 13
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Four Blocker Problem
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2 People
4 People
8 People
20 People
Aligning Expectations Process (ALEX™)
AlignmentDiscussions
Performance Criteria
DiscardsUnresolved
IssuesNew & Matched Expectations
What Others’ Think I Expect
Them(OEMs)
My Expectations
of Others(MEOs)
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Key Component Prioritization
& Implications
Use CrossHairs Reports to
develop problem definitions
6
AlEx
DevelopStrategic
Components
Select Key Players &/or
Focus Groups
2 3
Coach Participants &Collect Their Expectations
5
AlEx™ - The Alignment Process
Mission & Strategy
1Introduce
Components & Process
4
Integration &Transfer
CapabilityKnowledge
SkillsCapacity
9Alignment ProcessBrief, Train, Coach
Rapid Improvement Cycles(Based on Tracking TBDs,
Discards, Complete & Unresolved Expectations)
7
Develop Metrics & Rewards perComponent
8
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Project Sizes• Royal Bank of
Canada • IMS Health
(Canada)• Qwest Telecoms
• Genzink Steel
• Turner Construction
• 20 participants/6 weeks
• 25 participants/10 weeks – Phase 1
• 12 participants/8 weeks – Phase 1
• 6 participants/14 weeks
• 12p/8w;86p/1yr; 100+/Ongoing
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Health Care Quality
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1. Patient-Centered Care2. Teamwork & Collaboration3. Evidence-Based Practice4. Quality Improvement5. Safety6. Informatics
Key Components Example
Business Development
Com
pete
ncy D
eve
lopm
ent
Leaders
hip
Performance Assessment
Management
Delegating
Team Working
Value Delivery Risk Management & Planning
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Component DefinitionRespectful Communication
• Using all available resources to accurately and effectively relate ideas and positions to associates and colleagues.
• Manage the tensions created by the conditions, people and conflicting objectives.
• Respectfully listen to others’ contributions, allowing them to engage and own their contributions.
• Respond with thoughtfulness, taking into consideration the contributions of others.
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Component DefinitionTeam Integration
• This is the effective working between one of more team’s so that a team‘s effort adds to the impact of another teams effort. So optimizing resources and maximizing outcomes is a natural outcome. It is based on every one recognizing that "we are all in this together."
• Welcome the talents and contributions of all members into the team environment. Manage communication, decisions and actions so all are committed to agreements. - Raise the bar by consistently sharing knowledge, advising, mentoring and developing associates and colleagues.
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My Expectations of Others(MEO)
What I expect of another person or people during this change process includes:
• What I expect you to keep doing . .
• What I want you to start doing . . . .
• What I want you to stop doing . . . .
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Others’ Expectations of Me(OEM)
What I think others will expect of me during this change process includes:• What things I think others will expect me to keep
doing . . . .
• What new things I think others start doing . . . .
• What things I think others want me to stop doing . . . .
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Expectations Status after 9 mths
Project Finances
Project Leadership
Project Quality
Respectful Communications
Team Integration
Value Innovation
0
500
AgreedCompleteDiscardTBDUnresolved
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General Contractor - Subs TBDs
Project Finances
Project Leadership
Project Quality
Respectful Communications
Team Integration
Value Innovation
0
100
200
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Turner - Subcontractors
Filters1. Tension = 5 & 42. Group Focus = Inter3. Acc Grp = Same4. Expect. Type = MEO & OEM5. Decision = TBD
Project Finances
Project Leadership
Project QualityRespectful Communications
Team Integration
0
10
20
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Cliff & Tom’s Four Blocker
What Cliff Thinks Tom Expects of
Him
Tom’s Expectations
of Cliff
What Tom Thinks Cliff Expects of
Him
Cliff’s Expectations
of Tom
22 12
4 13
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Cross HairsAlignment Issues identified
Q1
Q4
Q3 Q2
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AlEx™Priorities Content
Over Channeling
Under Channeling
Managers
Direct Reports
Inside Groups
Between Groups
What’s your Line of Sight?
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Under & Over Channeling
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Airport All projects
Sacramento
Airport
Grand Total
Holder Type Brown, Jamie
Griffanti, Grant
Corey, Rich
Ginoza, Mike
Gunter, Lee
Hiser, Matt
Hull, Jim
Plushnick, Bob
Pulliam, Marc
Ralls, Gary
Reich, Katheri
ne
Romo, Alesand
er
Sauer, Brian
Sloan, Joel
Brown, Jamie MEO 2 2
Griffanti, Grant MEO 37 37
OEM 1 5 6Corey, Rich MEO 1 1 1 1 1 1 1 1 1 1 1 1 12
OEM 2 2Ginoza,
Mike MEO 2 2 4
OEM 1 1 2Gunter, Lee OEM 1 1Hiser, Matt MEO 2 3 2 3 2 12
OEM 2 1 3 6 12Hull, Jim MEO 7 7 9 8 31
OEM 2 10 3 3 3 2 23Plushnick,
Bob MEO 1 2 4 3 1 1 1 13
OEM 1 1 2Pulliam,
Marc MEO 1 1 3 5
OEM 1 1 2Ralls, Gary MEO 1 4 2 3 10
OEM 1 6 4 1 5 2 1 20Reich,
Katherine MEO 3 1 4
OEM 1 2 1 4Romo,
Alesander MEO 7 7
OEM 1 2 1 4Sauer, Brian MEO 2 1 3 5 1 1 3 5 1 1 2 25
OEM 1 2 3Sloan, Joel MEO 9 9
OEM 20 1 2 1 242 22 16 20 4 24 33 9 5 31 24 14 20 52 276
An Airport Project CrossHairs
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Pairing Q1 Q2 Q3 Q4 Grand Total
AR-JmH 7 2 8 2 19
BP-JmH 4 7 1 12
BS-MP 3 1 3 7
BS-MtH 5 6 3 2 16
GG-JS 37 20 5 62
GR-JmH 2 3 4 9
GR-JS 3 2 9 1 15
GR-MtH 4 2 6 12
GR-RC 1 1 2
JmH-KR 9 2 3 3 17
JmH-MG 7 1 2 10 20
Grand Total 81 37 38 35 191
An Airport Project DRs
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Phased Competency Development - Priorities
Tension Rating Coaching/TrgRating
#Expectations
5 4 42
5 3 107
5 2 54
5 1 38
4 4 54
4 3 114
Total 318
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Expectations (MEO) vs. Assumptions (OEM)
Manager’sExpectations
(MEO’s)Direct Reports’ Assumptions
(OEM’s)
By permission Qwest Tel.
LeadCoach
PlanCollaborate
CommunicateRecognize
ValueInfluence
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Progressive DIs
Alignment; 51; 78%
Distraction; 14; 22%
Distraction/Alignment Index – Core Team - August
Alignment; 210; 97%
Distraction; 6; 3%
Distraction/Alignment Index – Core Team - January
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Initial Component Alignment Indices
Proj
ect L
eade
rshi
p
Team
Inte
grat
ion
Respe
ctfu
l Com
mun
icatio
ns
Proj
ect F
inan
ces
Proj
ect Q
ualit
y
Value
Inno
vatio
n0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
82%75%
51%
66% 64%70%
18%25%
49%
34% 36%30%
Alignment & Distraction - Percent
DI%AI%
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Current Component Alignment Indexes
Project Lead-ership
Team Integration Project Quality Respectful Communications
Project Finances Value Innovation0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
84%80%
97%
79% 79%
93%
16%20%
3%
21% 21%
7%
Alignment & Distraction - Percent
DI%AI%
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Group Component Tension Ratings
Proj
ect F
inan
ces
Proj
ect L
eade
rshi
p
Proj
ect Q
ualit
y
Respe
ctfu
l Com
mun
icatio
ns
Team
Inte
grat
ion
Value
Inno
vatio
n0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
ArchitectEngineer/ConsultantSubcontractorSutterTurner
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Cross Hairs - Targeting on what counts
• OAC’s as a percentage of total expectations – 11:2489=.44%
• RFI’s /design issues expectations as a total percentage of total expectations 116:2489=4.6%
• CO’s as a total percentage of total expectations 128:2489=5.1%
Copyright PDS Group 2009 All Rights Reserved
Imp
rovin
g
Alig
nm
en
t
Traditional
Getting Aligned – Weekly!Requirements
WeeklyAlignmentMeetings Reduce Costs
& Increase Revenue
Time
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Real Alignment
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OriginatorPromotesDiscussion
Originator &Receiver Decide:
AgreeDiscard
Unresolved
Receiver Agrees Evidence
Originator Rates
Performance
OriginatorCoachesReceiver
The Alignment Process
AlEx™ Easy Entry
AlEx™ Cross Hairs
AlEx™ Priority 5
AlEx™ Cross Hairs
New Expectations
AgreeEvidence
RateCoach
Rate Again
Hold Receivers Accountable
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CoachingStrategically
Seven Alignment Challenges
EmbeddingChange
RemovingDistractions
Rewarding Change
AligningExpectations
OperationalExcellence
Replicating Success
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AlEx™
• Expectations – Aligned, Clear &
Focused• Distractions
identified• Performance Contracts Agreed• Web-enabled
CAM™ • Competencies
focused on $$$• Evidence-based
• Track impact on bottom-line
Practicums™ • Real Accounts
• Evidence-based & $$$ Tracked
• Competencies enabled
Executive Coaching
• Builds Competence• Revenue
Generating & Cost Saving
• Cascade Enabled
LearningDesign
•Performance Contracts Focused
• Addresses Right Competencies
• Measurable• Cascade Enabled
46
The Line of Sight to Success
AlEx™
Summary
Key Component Prioritization
& Implications
Use CrossHairs Reports to
develop problem definitions
6
AlEx
DevelopStrategic
Components
Select Key Players &/or
Focus Groups
2 3
Coach Participants &Collect Their Expectations
5
AlEx™ - The Alignment Process
Mission & Strategy
1Introduce
Components & Process
4
Integration &Transfer
CapabilityKnowledge
SkillsCapacity
9Alignment ProcessBrief, Train, Coach
Rapid Alignment Cycles(Based on Tracking TBDs,
Discards, Complete & Unresolved Expectations)
7
Develop Metrics & Rewards perComponent
8
Copyright PDS Group 2009 All Rights Reserved
PDS Database Administration
AlEx
Set Up DatabaseOrganization Directory
Key ComponentsEngagement Details
Define RelationshipsParticipant Directory
Processes and GroupsCustom Relationship Reports
Create Cross Hairs Standard Reports
Master ListEngagement Summary
Channel Analyses
Create Cross Hairs Custom ReportsGroup and Process Lists
Distraction IndicesTension Ratings
SkillsData
AdministrationInputEdit
Customize
3
AlEx™ - Integration & Transfer
CapabilityData
CoordinatorCollect
DistributeMonitor
1Knowledge
Data Analysis
ReviewTrendReport
2Capacity
Data Management
SecureSet Up
Reorganize
4
PDS Data Management
Client Data Management
49Copyright PDS Group 2009 All Rights Reserved
AlEx™
Copyright PDS Group 2009 All Rights Reserved
Increased sales by 10%-15% in 30 weeks
Increased Customer Sat. Ratings
(4th – 1st)
Increase Revenue14% in 6 months
Prevented Restructuring
Failures
Gross Revenues Up from
$20m to $30m
Closing RateImproved by 66%
Delivered Building OTIF & No Legal Issues
Isolated Hi Performing Teams
Factors
Thank you
The Line of Sight to Success
AlEx™
Copyright PDS Group 2009 All Rights Reserved
Keep, Start & Stop
In all planned change the minimum number of alignment components needed:
• What do people need to keep doing• What do they need to start doing• What they must stop doing