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

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

LIKERT’S ORGANIZATIONAL “SYSTEMS”* SYSTEM 1 (Exploitative Autocratic) Security Money None Down Only Boss Alone Top Down Hostile Mediocre SYSTEM 2 (Benevolent Autocratic) Status Little Mostly Down Boss Mostly, Some Technical at 1st Level Top Down Mixed (toward negative) Fair to Good SYSTEM 3 (Consultative) Growth Recognition Some Up and Down Boss Focused: Asks, Decides, Explains At Top, with Consultation Mixed (toward positive) Good to Excellent SYSTEM 4 (Participative) Identity Achievement Influence Much Up, Down, and Sideways Team Based Group Participation Favorable Excellent SYSTEM “ZERO”** (Laissez Faire) Higher Level (comes from outside org.) Mixed (but mostly within tech. areas) Mixed (but mostly on technical issues) Mixed (often avoided) Mixed (sometimes not set at all) Mixed (positive toward job but not org.) Mixed (poor to good) EMPLOYEE MOTIVATION TEAMWORK COMMUNI-CATION DECISION MAKING GOALS SET EMPLOYEE ATTITUDES OUTPUT * Adapted from Rensis Likert, The Human Organization, (New York: McGraw-Hill, 1967) ** Adapted from Marvin Weisbord, “Why Organizational Development Hasn’t Worked (So Far) in Medical Centers” Health Care Management Review (Spring, 1976).

The Evolution of “THE NATURE OF WORK” INDUSTRIAL ENGINEERS “SCIENTIFIC MANAGERS” 1900 L OWNERS EXECUTIVES Upper Class INDUSTRIAL PHASE M M M MANAGERS FOREMEN Division of Labor Vertical Horizontal T T T T T 2B LABOR Working Class

The Evolution of “THE NATURE OF WORK” Leadership Team 2000 NETWORKED TALENT MODEL M L TS T M L M L TS TS T T M L M L TS TS T T Management Team Task Team

“WORK” IS HOLISTIC IN THE NETWORKED TALENT MODEL IV-7 The Evolution of “THE NATURE OF WORK” “WORK” IS HOLISTIC IN THE NETWORKED TALENT MODEL Management Skills, Abilities, and Behaviors Causal Modeling/Systems Analysis Performance Planning Project Management and Execution People Development Plan Implementation, Monitoring, and Adjustment Outcome/Results Variance Analysis Open Communication Leadership Skills, Abilities, and Behaviors Strategic Customer Value Analysis Vision/Values to Strategy/ Structure/Systems Suprasystems Integration/ Stewardship Learning/Thinking/Changing/ Renewing Enabling/Empowering/ Energizing M L TS T Task/Technical Skills, Abilities, and Behaviors continuously broaden and deepen task/ technical skills and abilities Team Skills, Abilities, and Behaviors see slide I-9 for these skills

The Evolution of “THE NATURE OF WORK” PERCENT OF TIME SPENT ON EACH FUNCTION AT EACH LEVEL OF THE ORGANIZATION IN THE NETWORKED TALENT MODEL First Line L CUSTOMER M TS T LINE TECHNICAL SUPPORT TS GS GENERALSUPPORT T M TOP MANAGE- MENT TS L Top Management

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 WORK CULTURE VALUES 7. How treat? Quality Customer “Value” Financial Performance Compe-tition Other Stake- holders Environ-mental Scan 4. Why do we need to be high performance? Higher Moral Purpose Self Pride Survival 2. How would we know? Food Chain Beneficiary Chain Marketing HP Partners P P US “PICK 3+” P