‘The pessimist complains about the wind The optimist expects it to change The leader adjusts the sails’

Real Time Strategic Change Learning Series Session III April 24, 2009

Conference Call Dial In Number The conference call will begin at 12:45pm Access code and pin: Who is Here? Where are you today? In what one or two ways have you been able to apply what you’ve been learning in the Series?

Series Purpose To learn how to make the future happen faster in all of your change work.

Series Outcomes Understand and be able to apply the six RTSC principles to accelerate all of your change work Know the best ways, best times, and best people to include in your change work to achieve the best results Understand how to identify key leverage points to accelerate your change work Gain insights that you can act on right away Know ways that you can support or sabotage your efforts

To understand the Areas of Work of RTSC so you have something to deviate from in your own practice. Session III Purpose

To Understand the three Areas of RTSC Work and what’s required to complete each one Gain insight into how you can support and sabotage your RTSC efforts Leverage your current work by seeing it through the lenses of the RTSC Phases Get some ideas about how you can apply the Areas tohelp you achieve better results Appreciate how together, the Principles and Areas of Work enable you to create the future faster Session III Outcomes

Agenda Responses to Session I Questions Additional Questions and Answers What is Real Time Strategic Change? Case Study: Application of Principles How RTSC Is The Same and Different From Your Current Work

A principle-based approach to engaging people in creating their collective future, faster. What is Real Time Strategic Change?

How do you manage the polarities of participation and direction in a company which over-focuses on participation, and always looks for consensus and relationship? Could you give us an example where you worked in this scenario? Introduce Polarity Management and map this polarity “Getting Unstuck Process” Increase informed discretion – “After Decision Review” used at Unocal Responses to Session I Questions

What questions and insights do you have from any of our work so far? Questions and Insights From Our Work So Far…

Real Time Strategic Change Principles

Real Time Strategic Change Areas of Work Scoping Possibilities Creating Organization-Wide Congruence Developing and Aligning Leadership

Applicable in any context Integrates well with other approaches Invites innovation Directed requirements Clear approach, easily understood Great predictability Works consultant need not client issues Stifles creativity Difficult to “play well” with others Specific work to do is unclear More difficult to apply and master More challenging to learn Effective Change Ineffective Change Structured Processes Flexible Principles and

Scoping Possibilities PossibilitiesScoping A clear purpose and outcomes Ways you can integrate this effort with other work in the organization Leverage points that will accelerate change A roadmap with key events, measures, milestones, and responsibilities Deliverables A clear purpose and outcomes Ways you can integrate this effort with other work in the organization Leverage points that will accelerate change A roadmap with key events, measures, milestones, and responsibilities

Purpose of Work: Create a clear roadmap for the overall effort that accounts for: Past experience with change, Successes you have already had, and, Areas of greatest leverage that will help you create your future, faster. Time and effort invested in Scoping earns dividends throughout the rest of the change effort. The most successful transformation efforts make wise use of limited resources (time, money, political capital, and others), and Scoping enables you to do that. Scoping Possibilities

Developing and Aligning Leadership AligningDeveloping A clear purpose and outcomes Ways you can integrate this effort with other work in the organization Leverage points that will accelerate change A roadmap with key events, measures, milestones, and responsibilities Deliverables Agreement on why change is needed Clarity about your future direction Commitment to make needed changes Confident leaders able to provide the leadership required Leadership

Purpose of Work: Develop the capability, capacity and alignment required in leadership for the effort to succeed. Individual and collective knowledge, skills and abilities Understanding and fulfilling the needed roles Provide and accept support and guidance Live the organization’s preferred future Developing and Aligning Leadership

Creating Organization-Wide Congruence CongruenceOrganization Wide A clear purpose and outcomes Ways you can integrate this effort with other work in the organization Leverage points that will accelerate change A roadmap with key events, measures, milestones, and responsibilities Deliverables A solid fit between your: Internal and external realities, Vision for the future, Strategies and plans, Systems, structures and processes, and Daily work

Purpose of Work: To fully leverage your entire organization, its members and all key stakeholders in creating your future, faster – and sustaining it over time. The greater the congruence the fast and more lasting the changes you’ll achieve Positions you for success now and into the future Change-ability as single most valuable core competency Creating Organization-Wide Congruence

Managing the Tension Between Structure and Flexibility Scoping Possibilities Creating Organization-Wide Congruence Developing and Aligning Leadership

112 year old social services organization 38 Affiliates and National Office New “Aging Strategy” to be implemented History of unproductive, high conflict events Broad based lack of trust Resistance to new strategy Case Study Background

Case Study Purpose and Outcomes Purpose To engage the organization and key stakeholders in effectively implementing the new Aging with Options strategy Outcomes Aligned Leadership Strong Team of Stakeholders for Future Work New Aging Programs and Services in all Affiliates Increased Revenue to Counter-Balance Decreased Government Funding

Change Effort Roadmap CEO Meeting At Conference CEO Follow Up Meeting Winter Conference CEO Process Decision Making Process Design Team Four Conference Calls Off-Line Work Annual Conference Late February Mid March Late March Mid April JuneMay Governance Decision Making Process Emergency Board Meeting

RTSC Principles: Polarities and Greater Purposes Real Time Preferred Future Create Community Build Understanding Reality is a key driver Engage and Include All RTSC Work Plan For Future Live Future Now Best of Past/Present Compelling Future Allegiance to Part Allegiance to Whole Common Information Unique Information Internal Realities External Realities ParticipationDirection Accelerated Change Organizational Commitment Aligned Action Informed Decisions Effective Collaboration Organizational Energy

Real Time Needs and Focus  Action and Impact Real Time Preferred Future Create Community Build Understanding Reality is a key driver Engage and Include All RTSC Work Plan For Future NeedsLive Future Now Needs Clarify new strategy and people’s roles in it Understand what stays the same/what changes Collaborative culture Governance agreements Positive experience with conflict Engagement in strategy Needs and Focus for Work Plan For Future ActionsLive Future Now Actions 3 Rounds of Strategy presentation/Q&A at Conference Detailed roadmaps as “take home” Turnaround on Strategy at Conference Safe and fair Discernment Process “Healthy” Leadership Action and Impact

Preferred Future Needs and Focus  Action and Impact Real Time Preferred Future Create Community Build Understanding Reality is a key driver Engage and Include All RTSC Work Needs and Focus for Work Best of Past/PresentCompelling Future Affirm traditional strengths Leverage passion to serve Experience of new way of working Real progress on Aging Strategy At least “do no harm” Best of Past/Present Actions Compelling Future Actions Existing services supported Focus on enabling organization to thrive Use existing governance documents Publicize “early wins”/learning with strategy Develop good governance structures Demonstrate trustworthy process Action and Impact

Create Community Needs and Focus  Action and Impact Real Time Preferred Future Create Community Build Understanding Reality is a key driver Engage and Include All RTSC Work Allegiance to PartAllegiance to Whole Alignment within sub- groups Retain autonomy of Affiliates Sub-group to lead CEO Discernment Process Everyone caring more about the whole Representative cross- sections doing all work Needs and Focus for Work Allegiance to Part ActionsAllegiance to Whole Actions Sub-groups represented in all work Integrity in all work “Part” interests affirmed Max-mix seating at Conference Integrity in all work Discernment Process benefits all Action and Impact

Build Understanding Needs and Focus  Action and Impact Real Time Preferred Future Create Community Build Understanding Reality is a key driver Engage and Include All RTSC Work Common InformationUnique Information Detailed understanding of strategy Needs of each group Approach to constructive dialogue Coaching CEO Tiers for implementing CEO Discernment Process Needs and Focus for Work Common Information Actions Unique Information Actions Sharing of Strategy All “Shepherd Team” activities Documentation of all dialogue CEO Conference dialogue “Shepherd Team” work in progress Feedback from first CEO meeting Action and Impact

Reality is a Key Driver Needs and Focus  Action and Impact Real Time Preferred Future Create Community Build Understanding Reality is a key driver Engage and Include All RTSC Work Internal Reality NeedsExternal Reality Needs Increased trust Owning strategy Requirement for continuing current services Learning from early adopters Learning about new regulations Knowledge about Aging population Internal Reality ActionsExternal Reality Actions Expert consulting support for implementation CEO “truth telling” “Change Possibilities” panel at Conference Inclusion of strong facilitation in all work Broadened base of involvement (e.g., Board) Needs and Focus for Work Action and Impact

Engage and Include Needs and Focus  Action and Impact Real Time Preferred Future Create Community Build Understanding Reality is a key driver Engage and Include All RTSC Work Participation NeedsDirection Needs Many groups needed voices heard Interactive Winter Conference Clarity about what was fixed/flexible Clarity on authority/ decision making Fair process with integrity Needs and Focus for Work Participative ActionsDirective Actions Broad cross-section at Conference Tiers could change Opportunity to influence Strategy “Shepherd” Group for Decision Making Process Strong “facilitative leadership” Governance as focus for work Action and Impact

Healthy, Respectful Process Understood the issues and had the difficult conversations Learned how to use this process for other issues Able to re-focus on our mission and move forward Organizational Alignment Goals For The Decision Making Process

Involve the right people People are committed to the process and decisions made from it Respectful Process Be clear and transparent in all communications Be efficient so that we can focus on our mission Use Existing Governance Structures Design Criteria for the Process

The NEC; Local Boards; The National Board; The Council of Ministers; and, Local CEO’s Stakeholder Groups That Need to be Involved

How is RTSC the Same and Different From Your Current Work?