1. Building High-Performance Organizations I-1 Ver 4.10/5/2016 BUILDING HIGH-PERFORMANCE ORGANIZATIONS IN THE TWENTY-FIRST CENTURY MODULE I: RI LINKAGES TO HPO CHANGE MODEL Commonwealth Centers FOR HIGH-PERFORMANCE ORGANIZATIONS www.highperformanceorg.com

2. Building High-Performance Organizations I-2 Ver 4.10/5/2016 FOCUS OF THE HPO MATERIAL Individual Team/Unit Micro- Business “NOG’s” ALIGNMENT Organization Circle of Concern Circle of Influence Circle of Control

3. Building High-Performance Organizations I-3 Ver 4.10/5/2016 HP ENV VISION STRATEGY STRUCTURE SYSTEMS VALUES LEADERSHIP THE HPO CHANGE MODEL What Do We Need to Do to Build a High-Performance Organization?

4. Building High-Performance Organizations I-4 Ver 4.10/5/2016 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?

5. Building High-Performance Organizations I-5 Ver 4.10/5/2016 FOCUS ON THE CUSTOMER (Outcomes) (Outcomes) Right stuff?Right stuff? Right people?Right people? $ $ = Higher Cost $ FOCUS ON FOCUS ONPROCESSES Right processes?Right processes? “cost of compliance” Done right?Done right? “cost of non-compliance” EFFICIENT DEFINING QUALITY DESIGN AND FEATURES QUALITY VERSUS EXECUTION QUALITY PoorExcellent ExecutionQuality Complex Modest 5. Right “What?” 6.How Good? 6. How Good? EFFECTIVE

6. Building High-Performance Organizations I-6 Ver 4.10/5/2016 VISION STRATEGY STRUCTURE SYSTEMS VALUES LEADERSHIP HP ENV 3. ACCORDING TO WHOM? OtherStake-holders Food Chain Beneficiary Chain US P P P Partners Compe- tition THE HPO CHANGE MODEL THE 3RD KEY DIAGNOSTIC QUESTION

7. Building High-Performance Organizations I-7 Ver 4.10/5/2016 L L L L M M M M We need to get the “work of leadership” and the “work of manage- ment” done at all levels of the organization Individual Team/Unit Micro- Business “NOG’s” ALIGNMENT Organization

8. Building High-Performance Organizations I-8 Ver 4.10/5/2016 TS ML T Management Skills, Abilities, and Behaviors n Causal Modeling/Systems Analysis n Performance Planning n Project Management and Execution n People Development n Plan Implementation, Monitoring, and Adjustment n Outcome/Results Variance Analysis n Open Communication Management Skills, Abilities, and Behaviors n Causal Modeling/Systems Analysis n Performance Planning n Project Management and Execution n People Development n Plan Implementation, Monitoring, and Adjustment n Outcome/Results Variance Analysis n Open Communication Leadership Skills, Abilities, and Behaviors n Strategic Customer Value Analysis n Vision/Values to Strategy/ Structure/Systems n Suprasystems Integration/ Stewardship Stewardship n Learning/Thinking/Changing/ Renewing n Enabling/Empowering/ Energizing Leadership Skills, Abilities, and Behaviors n Strategic Customer Value Analysis n Vision/Values to Strategy/ Structure/Systems n Suprasystems Integration/ Stewardship Stewardship n Learning/Thinking/Changing/ Renewing n Enabling/Empowering/ Energizing Task/Technical Skills, Abilities, and Behaviors n continuously broaden and deepen task/ technical skills and abilities Task/Technical Skills, Abilities, and Behaviors n continuously broaden and deepen task/ technical skills and abilities Team Skills, Team Skills, Abilities, and Behaviors n see slide I-9 for these skills Team Skills, Team Skills, Abilities, and Behaviors n see slide I-9 for these skills “WORK” IS HOLISTIC IN THE NETWORKED TALENT MODEL IV-8 The Evolution of “THE NATURE OF WORK”

9. Building High-Performance Organizations I-9 Ver 4.10/5/2016 n types of meetings n core values/ground rules n charter n content vs. process n meeting management: procedural rules, agenda, physical setup, evaluation, etc. n process roles: facilitator, recorder, time keeper n setting climate n large group design issues n presentation skills n types of meetings n core values/ground rules n charter n content vs. process n meeting management: procedural rules, agenda, physical setup, evaluation, etc. n process roles: facilitator, recorder, time keeper n setting climate n large group design issues n presentation skills n a guiding model: theory and approaches n steps (opening up and closing down phases) n techniques appropriate in each step/phase n understanding assumptions and causes n using values to test outcomes n bringing creativity into problem- solving; breaking paradigms n a guiding model: theory and approaches n steps (opening up and closing down phases) n techniques appropriate in each step/phase n understanding assumptions and causes n using values to test outcomes n bringing creativity into problem- solving; breaking paradigms n PERSONAL LEVEL n INTERPERSONAL LEVEL u personal assessment (Goleman’s E.Q. vs I.Q.) u personal change (Covey’s 7 Habits) u personality differences (MBTI) u individual management styles (Grid) u learning styles u personal vs. organizational values u time management u communication (style, ego states, non-verbal, assumptions, obtaining information, listening) u feedback and coaching u appreciating differences u conflict management and negotiation u dealing with difficult people u appreciating diversity u dealing with feelings and emotion n TEAM LEVEL u what is a team? u types of teams u team dynamics and stages of development u team roles u culture change u dealing with resistance u team building u characteristics of high- performance teams n PROCEDURAL n PROBLEM-SOLVING n BEHAVIORAL Team Skills, Abilities and Behaviors SURVIVAL KIT

10. Building High-Performance Organizations I-10 Ver 4.10/5/2016 HP ENV THE HPO CHANGE MODEL VISION STRATEGY STRUCTURE SYSTEMS VALUES WORK CULTURE LEADERSHIP Philosophy Functions Form A more developed view of the “change levers” showing the “vision to performance” spiral The “values to work culture” spiral

11. Building High-Performance Organizations I-11 Ver 4.10/5/2016 Build a Change Mechanism at every level of the organization Individuals Top of Organization NOG (Naturally Occurring Group) How Do We Cause Change to Occur in Organizations?

12. Building High-Performance Organizations I-12 Ver 4.10/5/2016 l SCVA l V\V SSS l Integration l L\T\C\R l EEE “My” TopLeadershipTeam “Our” Management Team QI, QIII - -“Urgencies” Task /Mgt. Parent “My” Parent / Child Child S4S4S4S4 (Adult - Adult) S4S4S4S4 NOG Management / Task Team S 3+ NOG Leadership Team QII - - Leadership (Parent / Child) S 1 / S 2 S 3 + (Adult - Adult) S 3+ Adult Adult Adult Adult HIERARCHY PARALLEL ORGANIZATION S4S4S4S4 S4S4S4S4 LEADERSHIP FORM Mid-level Leadership Team PARALLEL ORGANIZATION

13. Building High-Performance Organizations I-13 Ver 4.10/5/2016 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.

14. Building High-Performance Organizations I-14 Ver 4.10/5/2016 n 1. Strategic Customer Value Analysis (SCVA) u Who are/should be our customers (“beneficiary chain,” “food chain,” “other stakeholders”) u What do they value (want/need/expect) now and in the future? u Who are our “competitors;” implications for us? u What is happening in the larger environment; how might the this affect us (conduct environmental scan, market analysis, “political” analysis, feasibility review) n 2. Vision / Values Connected to Strategy, Structure, and Systems u What does high-performance mean for us, what higher moral purpose are we trying to serve, and what is the desired future state we are seeking? u Causing a shared vision/values for unit/organization to be formulated, articulated, and lived; must “nest” within next higher level’s vision/values. u Strategic thinking: mission/niche analysis interacting with “theory of the business” review -- results in a strategic plan showing direction and need for capacity building -- must be translated into a “tactical” operational plan (actions matched with resources, goals and objectives, monitoring, corrective actions) -- results in “performance.” u The organization’s/unit’s “values” work involves causing the values (leadership philosophy/ individual behavioral values/operating systems values) to be made actionable (by focusing on required/prohibited behaviors) -- results in “work culture.” n 3. Suprasystems Integration / Stewardship u Gluing the parts of the organization back together to accomplish the vision; creation of mechanisms that align the parts to form an integrated whole. u Requires a stewardship role from individuals; rising above “turf” to serve the larger whole; linking with others to address cross-organizational issues; “steward of the whole” versus “owner of the piece.” n 4. Learning, Thinking, Changing, Renewing u Personal learning, renewal, growth, and change; requires seeking and using feedback. u Staying “on the cutting edge” individually and organizationally; requires building a “learning organization.” u Best practices / benchmarking / reengineering / continuous improvement. n 5. Enabling, Empowering, and Energizing u Teaching, mentoring, motivating, and bureaucracy busting; providing knowledge, skills, and information required to make good decisions; being proactive; removing barriers to empowerment. LEADERSHIP FUNCTIONS “THE WORK OF LEADERSHIP” IV-5

15. Building High-Performance Organizations I-15 Ver 4.10/5/2016 4. Learning, Thinking, Changing, Renewing u Personal learning, renewal, growth, and change; requires seeking and using personal feedback. u Staying “on the cutting edge” individually and organizationally; requires building a “learning organization.” u Best practices / benchmarking / reengin- eering / continuous improvement. LEADERSHIP FUNCTIONS

16. Building High-Performance Organizations I-16 Ver 4.10/5/2016 THE FOUR STAGES OF LEARNING Unconscious Competence “don’t know you know” Unconscious Incompetence “don’t know you don’t know” ENVShift “Jerkophobia” Conscious Incompetence “know you don’t know” Conscious Competence “know you know” LEADERSHIP FUNCTIONS

17. Building High-Performance Organizations I-17 Ver 4.10/5/2016 RENEWING: ORGANIZATIONAL LIFECYCLES Prime Adolescence Go-Go Infant Courtship Affair InfantMortality Founder or Family Trap UnfulfilledEntrepreneur PrematureAging Stable Aristocracy EarlyBureaucracy Bureaucracy Growing Aging Death From: Ichak Adizes, Corporate Lifecycles: How and Why Corporations Grow and Die and What to Do About It (Englewood Cliffs, NJ: Prentice Hall, 1988) Performance

18. Building High-Performance Organizations I-18 Ver 4.10/5/2016 n During this stage, an individual has an idea and sets up a small business n As the business grows, friends, relatives and others join the company n Motivation remains high n However, if the busi- ness is to flourish, attention must be paid to planning, organization and basic administrative functions n During this stage, an executive is typically hired with strong organization and planning skills n Systems and proce- dures are routinized and specific goals and objectives are established n A key characteristic of this phase is that realistic risk-taking by subordinates is both encouraged and rewarded n Organizations reach- ing this stage of development have become calcified n Change is seen as a threat n Procedure has tri- umphed over substance n Employees are more concerned with their own comfort than with meeting the needs of their customers -- both internal and external n Typically, cover-your- backside (CYA) practices are evident EntrepreneurialAdministrativeBureaucratic RENEWING: ORGANIZATIONAL LIFECYCLES

19. Building High-Performance Organizations I-19 Ver 4.10/5/2016 QI QII QIV QIII LAST 3 rd 2 nd 1 st LeadershipTask / Management LEADERSHIP FUNCTIONS LEADERSHIP FUNCTIONS WHY LEADERSHIP FUNCTIONS ARE NOT GETTING DONE IN MOST ORGANIZATIONS MoreSignificant CONSEQUENCES DELIVERED IMPACT OF CONSEQUENCES LessSignificant Longer-termNear-term Order in which the four quadrants are most often handled

20. Building High-Performance Organizations I-20 Ver 4.10/5/2016