Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations Tony Gardner Cell: Commonwealth Centers for High-Performance Organizations University of Virginia Senior Executive Institute: LEAD Program: Tony Gardner Cell: Commonwealth Centers for High-Performance Organizations University of Virginia Senior Executive Institute: LEAD Program: HPO OVERVIEW

© Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation THE FEDERAL EXECUTIVE INSTITUTE Commonwealth Centers FOR HIGH-PERFORMANCE ORGANIZATIONS THE WELDON COOPER CENTER FOR PUBLIC SERVICE UNIVERSITY OF VIRGINIA BUILDING HIGH-PERFORMANCE ORGANIZATIONS IN THE TWENTY-FIRST CENTURY BUILDING HIGH-PERFORMANCE ORGANIZATIONS IN THE TWENTY-FIRST CENTURY John W. Pickering, Ph.D. Gerald S. Brokaw, B.S. Philip D. Harnden, Ph.D. Anton S. Gardner, M.A. For information about custom programs at The Federal Executive Institute, contact: Director of the FEI v For information about the Weldon Cooper Center for Public Service at the University of Virginia, contact: Director of Executive Development v

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations HPO Overview WHERE ARE WE GOING?  What are after?  Are we getting there? HOW DO WE GET THERE?  Are we doing the right things?  Are we doing them “right”? WHAT CULTURE PROPELS US?  How do we treat each other?  How do we keep energized? HOW DO WE WORK TOGETHER?  How do we organize to improve performance? WHERE ARE WE GOING?  What are after?  Are we getting there? HOW DO WE GET THERE?  Are we doing the right things?  Are we doing them “right”? WHAT CULTURE PROPELS US?  How do we treat each other?  How do we keep energized? HOW DO WE WORK TOGETHER?  How do we organize to improve performance?

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation COME UP WITH THE BEST WORDS OR SHORT PHRASES TO DESCRIBE WORKERS WHO ARE: 1. ENGAGED IN THEIR WORK 2. NOT ENGAGED IN THEIR WORK 3. ACTIVELY DISENGAGED FROM THEIR WORK COME UP WITH THE BEST WORDS OR SHORT PHRASES TO DESCRIBE WORKERS WHO ARE: 1. ENGAGED IN THEIR WORK 2. NOT ENGAGED IN THEIR WORK 3. ACTIVELY DISENGAGED FROM THEIR WORK ] Commonwealth Centers for High Performance Organizations

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation IN GROUPS OF 3 OR 4 WHAT PERCENTAGE OF WORKERS ARE: IN YOUR ORGANIZATION NATIONALLY ENGAGED IN THEIR WORK ? ? NOT ENGAGED IN THEIR WORK ? ? ACTIVELY ­DISENGAGED IN THEIR WORK ? ? IN GROUPS OF 3 OR 4 WHAT PERCENTAGE OF WORKERS ARE: IN YOUR ORGANIZATION NATIONALLY ENGAGED IN THEIR WORK ? ? NOT ENGAGED IN THEIR WORK ? ? ACTIVELY ­DISENGAGED IN THEIR WORK ? ? Commonwealth Centers for High Performance Organizations

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations WHAT INFLUENECES ENGAGEMENT? What could you do, personally, to increase engagement where you work? What could your organization do to increase engagement throughout the organization? WHAT INFLUENECES ENGAGEMENT? What could you do, personally, to increase engagement where you work? What could your organization do to increase engagement throughout the organization? HPO OVERVIEW

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations WHY DOES ENGAGEMENT MATTER? In world-class organizations, the ratio of engaged to actively disengaged employees is 9.6:1. In average organizations, the ratio of engaged to actively disengaged employees is 1.8:1. * WHY DOES ENGAGEMENT MATTER? In world-class organizations, the ratio of engaged to actively disengaged employees is 9.6:1. In average organizations, the ratio of engaged to actively disengaged employees is 1.8:1. * HPO OVERVIEW

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations HOW DO WE ENGAGE ALL THE EMPLOYEE HAS TO OFFER? Redefine what’s expected Everyone responsible for: Leadership Management Tasks Appropriate to where they work HOW DO WE ENGAGE ALL THE EMPLOYEE HAS TO OFFER? Redefine what’s expected Everyone responsible for: Leadership Management Tasks Appropriate to where they work HPO OVERVIEW

© Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations T T before1800 M M L L Subsistence Farming CRAFTS PHASE Work is Holistic The Evolution of “THE NATURE OF WORK” I-3, p 2

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation 1900 INDUSTRIAL PHASE Division of Labor  Vertical  Horizontal L L FOREMEN T T M M M M M M OWNERSEXECUTIVES INDUSTRIAL ENGINEERS “SCIENTIFIC MANAGERS” LABOR MANAGERS Working Class Upper Class T T T T T T T T Commonwealth Centers for High Performance Organizations The Evolution of “THE NATURE OF WORK” I-4

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation L L M M T T Microbusiness LINE TS GS TOP MANAGEMENT TECHNICAL SUPPORT GENERAL SUPPORT CUSTOMER Commonwealth Centers for High Performance Organizations The Evolution of “THE NATURE OF WORK” I-5

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation 2000 NETWORKED TALENT MODEL TaskTeamTaskTeam ManagementTeamManagementTeam LeadershipTeamLeadershipTeam TS M M L L T T M M L L T T M M L L T T M M L L T T M M L L T T Commonwealth Centers for High Performance Organizations The Evolution of “THE NATURE OF WORK” I-6, p 4

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation PERCENT OF TIME SPENT ON EACH FUNCTION AT EACH LEVEL OF THE ORGANIZATION IN THE NETWORKED TALENT MODEL M M L L T T M M L L TS T T First Line Top Management TS LINE TS GS TOP MANAGEMENT TECHNICAL SUPPORT GENERAL SUPPORT CUSTOMER Commonwealth Centers for High Performance Organizations The Evolution of “THE NATURE OF WORK” I-7

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation T T M M L L Team Skills, Team Skills, Abilities, and Behaviors Team Skills, Team Skills, Abilities, and Behaviors 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 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 TS 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 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 Task / Technical Task / Technical Skill, Abilities, and Behaviors continuously broaden and deepen task / technical skills and abilities Task / Technical Task / Technical Skill, Abilities, and Behaviors continuously broaden and deepen task / technical skills and abilities “WORK” IS HOLISTIC IN THE NETWORKED TALENT MODEL Commonwealth Centers for High Performance Organizations The Evolution of “THE NATURE OF WORK” I-8

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations MICROBUSINESS City personnel are organized for service delivery to specific sets of customers. Operating within clear direction and parameters, the microbusinesses undertake responsibility for delivering High Performance MICROBUSINESS City personnel are organized for service delivery to specific sets of customers. Operating within clear direction and parameters, the microbusinesses undertake responsibility for delivering High Performance HPO OVERVIEW

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations JACK WELCH’S LESSON “All these years you paid me for my hands – when you could have had my brains for free.” JACK WELCH’S LESSON “All these years you paid me for my hands – when you could have had my brains for free.” HPO OVERVIEW

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation SM-6a Commonwealth Centers for High Performance Organizations The Evolution of “THE NATURE OF WORK” THE PRESIDENT’S COUNCIL ON INTEGRITY AND EFFICIENCY (PCIE) Ver 3: na;Ver 4: SM-10

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations The Evolution of “THE NATURE OF WORK” NAVAL AIR SYSTEMS COMMAND CAREER DEVELOPMENT MODEL Ver 3: SM-7;Ver 4:SM-11

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations The Evolution of “THE NATURE OF WORK” ENVIRONMENTAL PROTECTION AGENCY LEADERSHIP MODEL Ver 3: SM-8; Ver 4: SM-12

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations “…the silver lining in any economic crisis is that it can force government to take necessary steps that, in more comfortable times, would fall victim to inertia.” Michael Bloomberg, Mayor, New York City “…the silver lining in any economic crisis is that it can force government to take necessary steps that, in more comfortable times, would fall victim to inertia.” Michael Bloomberg, Mayor, New York City HPO OVERVIEW

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations GAME-CHANGER? What happens next? Is the recession a Game Changer? Have we learned our lesson? Will our organizations now remain vigilant and constantly “on our toes,” “quick and nimble” and focused on being “lean and productive”? GAME-CHANGER? What happens next? Is the recession a Game Changer? Have we learned our lesson? Will our organizations now remain vigilant and constantly “on our toes,” “quick and nimble” and focused on being “lean and productive”? HPO OVERVIEW

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations GAME-CHANGER? DON’T BET ON IT Time and again: COMPLACENCY and INERTIA set in UNLESS…… There’s a clear continuous focus on PERFORMANCE IMPROVEMENT GAME-CHANGER? DON’T BET ON IT Time and again: COMPLACENCY and INERTIA set in UNLESS…… There’s a clear continuous focus on PERFORMANCE IMPROVEMENT HPO OVERVIEW

© Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Ver 4.6/3/ Key Diagnostic Questions for Exploring Organizations 1.What is High-Performance for us? 2.How would we know if we were? 3.According to whom are we? 4.Why be High-Performance? 5.Are we doing the right “what?” 6.How good are we at it? 7.How are we treating each other and our customers? 1.What is High-Performance for us? 2.How would we know if we were? 3.According to whom are we? 4.Why be High-Performance? 5.Are we doing the right “what?” 6.How good are we at it? 7.How are we treating each other and our customers? Commonwealth Centers for High Performance Organizations Introduction/Overview: HPO CHANGE MODEL II-7, p 17

© Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Ver 4.6/3/2016 Commonwealth Centers for High Performance Organizations Desired Ultimate Outcome WHAT IS “HIGH PERFORMANCE ORGANIZATION” MODEL Not a Program Best Business Practices embedded in how we operate every day. Desired Ultimate Outcome WHAT IS “HIGH PERFORMANCE ORGANIZATION” MODEL Not a Program Best Business Practices embedded in how we operate every day. HPO OVERVIEW

© Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Ver 4.6/3/2016 Commonwealth Centers for High Performance Organizations Desired Ultimate Outcome WHAT IS HIGH PERFORMANCE Employees who are Simultaneously and Consistently Engaged in Improving: Service Quality Customer Value Financial Performance Desired Ultimate Outcome WHAT IS HIGH PERFORMANCE Employees who are Simultaneously and Consistently Engaged in Improving: Service Quality Customer Value Financial Performance HPO OVERVIEW

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations WHAT IS HIGH PERFORMANCE? LIKE MY DOCTOR: DEFINING FULL POTENTIAL FOR PERFORMANCE SEEING WHERE YOU ARE NOW USING “LEVERS” TO CLOSE THE GAP WHAT IS HIGH PERFORMANCE? LIKE MY DOCTOR: DEFINING FULL POTENTIAL FOR PERFORMANCE SEEING WHERE YOU ARE NOW USING “LEVERS” TO CLOSE THE GAP HPO OVERVIEW

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation 7 Key Diagnostic Questions for Exploring Organizations 1.What is High-Performance for us? 2.How would we know if we were? 3.According to whom are we? 4.Why be High-Performance? 5.Are we doing the right “what?” 6.How good are we at it? 7.How are we treating each other and our customers? 1.What is High-Performance for us? 2.How would we know if we were? 3.According to whom are we? 4.Why be High-Performance? 5.Are we doing the right “what?” 6.How good are we at it? 7.How are we treating each other and our customers? Commonwealth Centers for High Performance Organizations Introduction/Overview: HPO CHANGE MODEL II-7, p 17

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation HP ENV What do we need to do to Build a High Performance Organization? VISION STRATEGYSTRUCTURESYSTEMS VALUES LEADERSHIP PhilosophyPhilosophy FunctionsFunctions FormForm Commonwealth Centers for High Performance Organizations Introduction/Overview: HPO CHANGE MODEL II-6, p 16

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Putting It All Together HP ENV LEADERSHIP  Philosophy  Functions  Form WORK CULTURE WORK CULTURE STRATEGYSTRUCTURESYSTEMS VALUESVALUES VISIONVISION 5. Right what? 5. Right what? 6. How good? 6. How good? 7. How treat? 7. How treat? 4. Why do we need to be high performing? 3. According to whom? 1. What is it? 2. How would we know? Quality Customer “Value” Financial Performance Commonwealth Centers for High Performance Organizations Introduction/Overview: HPO CHANGE MODEL II-19, p 23

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations TWO BODIES OF WORK NEEDED THROUGHOUT THE ORGANIZATION 1.Taking the vision – what we are trying to achieve – and drilling it down with discipline into High Performance. 2. Establishing and living values that create a work culture more likely to support achievement of our goals TWO BODIES OF WORK NEEDED THROUGHOUT THE ORGANIZATION 1.Taking the vision – what we are trying to achieve – and drilling it down with discipline into High Performance. 2. Establishing and living values that create a work culture more likely to support achievement of our goals HPO OVERVIEW

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation VISION Environmental Scan Citizen Survey and Feedback Focus Groups Governing Body and Staff Retreat Organizational Mission & Vision Strategic Plan Performance Measures Departmental Operational Plans Employee Goals Employee Feedback Strategic Thinking Strategic Planning Tactical/Operational Plans Performance VISION TO PERFORMANCE

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation VALUES Employee Development Performance Appraisals Appraisals Coaching Employee Expectations Organizational Values Leadership Work Culture Leadership Philosophy Individual Behavioral Values Operating Systems Values Behaviors Feedback Work Culture VALUES TO WORK CULTURE

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation DO WE HAVE THE RIGHT __________ ? Customers Customers Key Products & Key Products & Services Services Business Strategy Business Strategy Org. Structure Org. Structure Work Processes Work Processes Support Processes Support Processes Equipment, Facilities, Equipment, Facilities, Technology, Technology, Information, etc. Information, etc. PEOPLEPEOPLE – Right competencies – Development process – Feedback/Coaching (360 o ) (360 o ) – Resolution Process (Performance (Performance Appraisal) Appraisal) VISION PM VALUES Leadership Philosophy Individual Behavioral Values Operating System Values Behaviors + ~~~ - ~~~ Feedback/Coaching (360º) Resolution Process (Discipline System) { PERFORMANCE WORK CULTURE = Performance Measures PM Strategic Thinking: Mission/Niche Theory of the Business (strategy/structures/systems) + Prepare Business Case Strategic Planning Set Direction Capacity Building Prepare Business Plan Tactical Operational Plan Action Plan Goals & Objectives Resources Plan Monitoring & Corrective Action PM (Outcomes) (Strategic Goals & Objectives) (Input, Throughput, Output) VISION / VALUES TO STRATEGY / STRUCTURE / SYSTEMS PM Commonwealth Centers for High Performance Organizations LEADERSHIP FUNCTIONS IV-16

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations LEADERSHIP PHILOSOPHY 1.Strong research says the philosophy of how one does leadership influences engagement and dramatically affects performance. 2. Leadership Philosophy coincides with one or two systems indentified by Rensis Likert. LEADERSHIP PHILOSOPHY 1.Strong research says the philosophy of how one does leadership influences engagement and dramatically affects performance. 2. Leadership Philosophy coincides with one or two systems indentified by Rensis Likert. HPO OVERVIEW

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation * Adapted from Rensis Likert, The Human Organization, (New York: McGraw-Hill, 1967) * 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). 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 1 st 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 FavorableExcellent EMPLOYEE MOTIVATION TEAMWORK TEAMWORK COMMUNI- CATION DECISIONMAKING GOALS SET EMPLOYEE ATTITUDES OUTPUT 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) LIKERT’S FOUR ORGANIZATIONAL PHILOSOPHIES* Commonwealth Centers for High Performance Organizations LEADERSHIP PHILOSOPHY III-9

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation III-11, p 36 Leadership Motivation Team Work Communication Decision Making Goals Control System 1 System 2 System 3 System 4

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citationQIQIQIIQII QIVQIV QIIIQIII LAST 3 rd ` 2 nd 1 st Leadership Task / Management WHY LEADERSHIP FUNCTIONS ARE NOT GETTING DONE IN MOST ORGANIZATIONS WHY LEADERSHIP FUNCTIONS ARE NOT GETTING DONE IN MOST ORGANIZATIONS More-significant CONSEQUENCES DELIVERED IMPACT OF CONSEQUENCES Less-significant Longer-termNear-term Order in which the four quadrants are most often handled Commonwealth Centers for High Performance Organizations LEADERSHIP FUNCTIONS IV-31

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation LEADERSHIPLEADERSHIP LEADERSHIP FUNCTIONS Commonwealth Centers for High Performance Organizations “Only three things in organizations happen naturally: friction, confusion, and under-performance. Everything else requires Leadership.” Peter Drucker

Ver 4.6/3/2016 V-40 l SCVA l V\V SSS l Integration l L\T\C\R l EEE S4S4S4S4 (Adult - Adult) QII - - Leadership QI, QIII - -“Urgencies” l Task l Management HIERARCHY Parent “My” Parent / Child Child (Parent / Child) S 1 / S 2 S4S4S4S4 NOG Leadership Team PARALLEL ORGANIZATION NOG Management / Task Team S 3+ Commonwealth Centers for High Performance Organizations LEADERSHIP FORM © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation GUIDELINES FOR OPERATING INSIDE THE PARALLEL ORGANIZATION “Normal” Hierarchical Organization Rules Are Suspended. All team members are equal inside the parallel organization; decisions are by consensus, but note that decisions inside the parallel organization must also “fly” in the hierarchy a key role of team members is identifying, consulting with, and marketing to major “stakeholders” inside and outside of the hierarchy. Focus Is on Reaching The Best Solutions Possible for the Whole. Members of teams must be committed to a shared vision and values for the organization; a member’s “worth” is determined by his/her contribution (e.g.., ideas, conflict resolution, consensus building, problem-solving) to helping the team reach the best solution possible. Everyone Gets a “Promotion.” To eliminate “turf” and reach solutions that are best for the whole, members of teams must “promote” themselves at least two levels in the organization so they can see themselves and their units as parts of a larger, integrated whole; members must view themselves as part of a “board of joint owners” of the whole. A “Regenerative” Culture Is Critical. Trust-Based Relationships: while operating in the parallel organization, all interactions must be based on complete trust; Honesty: members are expected to level with each other and to have no hidden agendas; Mutual Respect: we can disagree without being disagreeable; no personal attacks; each team member must take personal responsibility for the success of every other team member. Confidentiality. It is often necessary, in order to achieve an open, innovative, and candid discussion of difficult or sensitive issues, for teams to establish a confidentiality rule -- i.e., what is said and decided and why decisions are reached is on the record; but who said what is not. No Retribution for Following These Guidelines. Because a low threat, high trust climate is critical in getting candidness and promote creative problem-solving, no retribution for following these guidelines can be permitted; however, if members do not follow the guidelines, there must be consequences. Enforcing These Guidelines Is Everyone’s Responsibility. Because everyone is equal inside the parallel organization, everyone is responsible for making the process work. Commonwealth Centers for High Performance Organizations LEADERSHIP FORM V-11

Ver 4.6/3/2016 © Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation Commonwealth Centers for High Performance Organizations HPO Overview WHERE ARE WE GOING?  What are after?  Are we getting there? HOW DO WE GET THERE?  Are we doing the right things?  Are we doing them “right”? WHAT CULTURE PROPELS US?  How do we treat each other?  How do we keep energized? HOW DO WE WORK TOGETHER?  How do we organize to improve performance? WHERE ARE WE GOING?  What are after?  Are we getting there? HOW DO WE GET THERE?  Are we doing the right things?  Are we doing them “right”? WHAT CULTURE PROPELS US?  How do we treat each other?  How do we keep energized? HOW DO WE WORK TOGETHER?  How do we organize to improve performance?