ACESA and CEO Forum N. Ireland Plan or be Planned for Slieve Russell Hotel 14 – 15 April, 2011 Eddie Molloy, Ph.D. Director Advanced Organisation 1

Four Stances vs. Environment Inactive: Lie low, sit tight Rely on inertia This too will pass Reactive: Do nothing until you’re told Retaliate, blame them Minimal response Good boy scout Preactive: Get ready for what you can predict Plan Proactive: Change how you are framed/viewed Find a new more relevant role it’s up to us. ‘it is naive to believe someone else will work it out correctly.’ 2

Strategic Re-think and Adjustment Companies on a positive, predictable trajectory, then Hit by perfect storm: (Ireland’s Five-Part Crisis; NESC) Banking Public finances Competitiveness Social crisis Reputation Plus legitimacy of major institutions Implications: - Discontinuous change (vs. incremental) - Urgency of execution 3

Scale and Urgency Incremental/ContinuousStrategic/Radical/ Discontinuous AnticipatoryTuningRe-orientation Re-directing ReactiveAdaptationRe-creation Overhauling 4

What changes when the change is discontinuous/radical? Wind down in orderly way Rationalisation of portfolio Mergers, acquisitions New business model, e.g. fee for service. On-line vs. face-to-face service delivery 20 – 30% reduction in costs New internal structures Significant innovation Cultural change New blood at Senior levels (Public Service) New Name/brand 5

StakeholdersWant to-dayWill want tomorrow Ought to want tomorrow FixPlanReframe Open Systems Planning 6

Unit of Analysis and Change Future competitiveness Plan23 Separate Performance improvement Plans Continuing competitiveness Plan 1 Plan for Dublin Brewery C C P No. 2 1 Plan for all Breweries in Ireland C C P No. 3 1 Plan for all Breweries in Ireland and UK 7

Mergers/Joint Ventures Org. AOrg. BOrg X (Prospectus) Mission Values Strategy Portfolio Differentiation Vehicles Pace Bus. Model (Financial Strategy) ORGANISATION Structure Skills Process Facilities Info Measures Culture Place to Work People HR policies Leadership/ Management Competence Processes External Relations += 8

The Change Story Why / Drivers Compelling Case Burning platform Vision Destination Who is impacted +-+- When – sequence Name responsible person Is budget allocated System of Accountability Dates of 1 st, 2 nd Review ‘ Hard’ ‘Soft’ How Change What Where to Strategy Structure Budget Culture Staffing Facilities, ICT Work practices Measurement Management Processes Etc. Relations 9 Appeals to Guilt and Fear Appeals to Ideals, Inspires

Time Fast What has to be addressed? The Organisational Iceberg Strategy: Portfolio, priorities, arenas Structure Resource allocation Management processes Core Business processes Work practices Reward systems Staff numbers Skills, competencies Etc. Culture Loyalties Beliefs Work Ethic Identity Attitudes to Depth Slow Risk Etc. 10 Taboo Discussible Technical Challenge Cultural Challenge

Tactics Which has been dominant mode Given urgency and scale where do we need to be? Consequences of any shift in mode? The Place of ‘Partnership’ Theory E: Action, Results, Decisiveness Theory O: Dialogue, Collegiality /5 Suboptimal compromise Avoidance 10/10 11

Plan or be planned for Thank you 12