BUILDING HIGH-PERFORMANCE THE TWENTY-FIRST CENTURY Commonwealth Centers FOR HIGH-PERFORMANCE ORGANIZATIONS www.highperformanceorg.com MODULE II: INTRODUCTION TO AND OVERVIEW OF THE HPO CHANGE MODEL BUILDING HIGH-PERFORMANCE ORGANIZATIONS IN THE TWENTY-FIRST CENTURY

Why are We Here? What is the HPO Material All About? What it is not... Downsizing Working Harder/Longer The Same Way Techniques A Cookbook

Why are We Here? What is the HPO Material All About? What it is... A focus on HIGH PERFORMANCE

Why are We Here? What is the HPO Material All About? Or better, a focus on HIGH(er) PERFORMANCE

FOCUS OF THE HPO MATERIAL Organization Micro-Business Team/Unit Circle of Concern ALIGNMENT “NOG’s” Circle of Influence Individual Circle of Control

What Do We Need to Do to Build a High-Performance Organization? THE HPO CHANGE MODEL VISION STRATEGY STRUCTURE SYSTEMS ENV HP LEADERSHIP VALUES

7 Key Diagnostic Questions For Exploring Organizations What is High-Performance for us? How would we know if we were? According to whom are we? Why be High-Performance? Are we doing the right “what?” How good are we at it? How are we treating each other and our customers?

THE FIRST 2 KEY DIAGNOSTIC QUESTIONS THE HPO CHANGE MODEL THE FIRST 2 KEY DIAGNOSTIC QUESTIONS 1. What is it? VISION STRATEGY STRUCTURE SYSTEMS ENV HP LEADERSHIP VALUES 2. How would we know?

THE DEFINITION OF HIGH PERFORMANCE THE HPO CHANGE MODEL THE DEFINITION OF HIGH PERFORMANCE 1. What is it? VISION STRATEGY STRUCTURE SYSTEMS ENV HP LEADERSHIP VALUES Quality Customer “Value” Financial Performance 2. How would we know? HP “PICK 3+”

“PICK 3+” THE HPO CHANGE MODEL “PICK 1” “PICK 2” GOOD FAST CHEAP THE DEFINITION OF HIGH-PERFORMANCE IS RISING GOOD (QUALITY) 2. How would we know? “PICK 3+” “PICK 1” “PICK 2” FAST (CUSTOMER VALUE) CHEAP (FINANCIAL PERFORMANCE)

THE DEFINITION OF HIGH-PERFORMANCE IS RISING THE HPO CHANGE MODEL THE DEFINITION OF HIGH-PERFORMANCE IS RISING 2000 “PICK 3+” 1975 “PICK 2” 1900 “PICK 1”

DEFINING QUALITY DESIGN AND FEATURES QUALITY VERSUS EXECUTION QUALITY 5. Right “What?” FOCUS ON THE CUSTOMER (Outcomes) Right stuff? Right people? Design and Features Quality $ Complex EFFECTIVE 6. How Good? Execution Quality $ FOCUS ON PROCESSES Right processes? “cost of compliance” Done right? “cost of non-compliance” Poor Excellent Modest EFFICIENT $ = Higher Cost

THE 3RD KEY DIAGNOSTIC QUESTION THE HPO CHANGE MODEL THE 3RD KEY DIAGNOSTIC QUESTION VISION STRATEGY STRUCTURE SYSTEMS ENV HP LEADERSHIP VALUES 3. ACCORDING TO WHOM? Compe-tition Other Stake- holders Food Chain Beneficiary Chain Partners P P US P

THE 4TH KEY DIAGNOSTIC QUESTION THE HPO CHANGE MODEL THE 4TH KEY DIAGNOSTIC QUESTION VISION STRATEGY STRUCTURE SYSTEMS ENV HP LEADERSHIP VALUES 4. WHY DO WE NEED TO BE HIGH PERFORMING? Higher Moral Purpose Self Pride Survival

ENV HP THE HPO CHANGE MODEL VISION STRATEGY STRUCTURE SYSTEMS ENV HP LEADERSHIP VALUES These are the 6 “levers” that are available inside the “black box” (which is our organization) that are available for “pulling” to improve the organization’s performance

L Organization L Micro-Business M L Team/Unit M ALIGNMENT L M “NOG’s” We need to get the “work of leadership” and the “work of manage-ment” done at all levels of the organization M Individual

ENV HP THE HPO CHANGE MODEL STRATEGY STRUCTURE SYSTEMS VISION LEADERSHIP Philosophy Functions Form ENV HP WORK CULTURE VALUES A more developed view of the “change levers” showing the “vision to performance” spiral The “values to work culture” spiral

THE FINAL 3 KEY DIAGNOSTIC QUESTIONS THE HPO CHANGE MODEL THE FINAL 3 KEY DIAGNOSTIC QUESTIONS 5. Right “What?” STRATEGY STRUCTURE SYSTEMS VISION LEADERSHIP Philosophy Functions Form 6. How Good? ENV HP 7. How Treat? WORK CULTURE VALUES

PUTTING IT ALL TOGETHER 4. Why do we need to be high performance? THE HPO CHANGE MODEL PUTTING IT ALL TOGETHER 3. According to whom? 5. Right “what?” STRATEGY STRUCTURE SYSTEMS VISION 1. What is it? 6. How good? LEADERSHIP Philosophy Functions Form ENV HP 7. How treat? WORK CULTURE VALUES Quality Customer “Value” Financial Performance 4. Why do we need to be high performance? Higher Moral Purpose Self Pride Survival Compe-tition Other Stake- holders 2. How would we know? Food Chain Beneficiary Chain HP P US P P Partners “PICK 3+”

NOG Change Mechanism How Do We Cause Change to Occur in Organizations? Top of Organization Build a Change Mechanism at every level of the organization NOG (Naturally Occurring Group) Individuals