1. THOUGHTS ABOUT THE FUTURE John Pickering
Commonwealth Centers
FOR HIGH-PERFORMANCE ORGANIZATIONS
THOUGHTS ABOUT THE FUTURE
John Pickering
and
Center for Executive Leadership
THE FEDERAL EXECUTIVE INSTITUTE
THE WELDON COOPER
CENTER FOR PUBLIC SERVICE
University of Virginia
FOURTH HIGH-PERFORMANCE
CHANGE CONFERENCE
March 2-4, 2004
Charleston, SC

2. THANKS
PHIL, JOAN, and KEITH!
BERNIE
EVERYONE FOR ATTENDING

3. REFLECTIONS ON THE JOURNEY

4. TWO “QUOTES OF THE CONFERENCE”
“Organization years are like dog years; human years = 1 organization year”
“Only three things in organizations happen naturally: friction, confusion, and under-performance. Everything else requires Leadership.” Peter Drucker

5. TWO THOUGHTS FOR THE FUTURE
THE “NATURE OF WORK,” THE NETWORKED TALENT MODEL, AND INDIVIDUAL JOB PERFORMANCE
GOVERNMENT AND “THINKING LIKE A BUSINESS”

6. TWO THOUGHTS FOR THE FUTURE
THE “NATURE OF WORK,” THE NETWORKED TALENT MODEL, AND INDIVIDUAL JOB PERFORMANCE
GOVERNMENT AND “THINKING LIKE A BUSINESS”

7. A QUICK REVIEW OF CONCEPTS

8. BUILDING HIGH-PERFORMANCE THE TWENTY-FIRST CENTURY
Commonwealth Centers
FOR HIGH-PERFORMANCE ORGANIZATIONS
MODULE I:
SETTING THE
CONTEXT--THE
EVOLUTION OF
“THE NATURE
OF WORK”
BUILDING HIGH-PERFORMANCE
ORGANIZATIONS IN
THE TWENTY-FIRST CENTURY

9. 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

10. 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

11. “WORK” IS HOLISTIC IN THE NETWORKED TALENT MODEL
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

12. Compensation Based On “Value”TS T M L
Journey-Level Position TS
Value to the Organization T M L TS T T M L TS
Entry-Level Position T
Entry Filter X
Time in the Organization X X X

13. INDIVIDUAL PERFORMANCE LINKED TO ORGANIZATIONAL PERFORMANCE
Personal (Individual) Focus
Team (Interpersonal) Focus
Network (Microbusiness) Focus
TEAM/ NETWORK PERFORMANCE UNDER CONTROL (e.g., Project Management)
INDIVIDUAL DELIVERS COMPETENCIES & BEHAVIORS TO TEAM/ NETWORK
INDIVIDUAL COMPETENCIES +
VALUES/ BEHAVIORS + +

14. INDIVIDUAL PERFORMANCE LINKED TO ORGANIZATIONAL PERFORMANCE
Personal (Individual) Focus
Team (Interpersonal) Focus
Network (Microbusiness) Focus
TEAM/ NETWORK PERFORMANCE UNDER CONTROL (e.g., Project Management)
INDIVIDUAL DELIVERS COMPETENCIES & BEHAVIORS TO TEAM/ NETWORK
INDIVIDUAL COMPETENCIES +
VALUES/ BEHAVIORS + +
Base Pay (90%)
Variable Pay
(5%)
(5%)

15. TWO CRITICAL WORKFORCE TRENDS
RANDOM OBSERVATION:
TWO CRITICAL WORKFORCE TRENDS
INCREASING CONTRACTOR PERCENTAGE; DECREASING GOVERNMENT EMPLOYEE PER-CENTAGE – GET GOOD AT INTEGRATING CONTRACTOR/PUBLIC WORKFORCES
THE MOVE FROM TASK BASED JOBS TO COMPETENCY BASED JOBS, AND THE MOVE FROM RANK-IN-JOB TO RANK-IN-PERSON – GET READY FOR PAY BANDING

16. TWO THOUGHTS FOR THE FUTURE
THE “NATURE OF WORK,” THE NETWORKED TALENT MODEL, AND INDIVIDUAL JOB PERFORMANCE
GOVERNMENT AND “THINKING LIKE A BUSINESS”

17. BALANCED SCORECARD EXAMPLE FROM SOUTHWEST AIRLINES
SM-49a
BALANCED SCORECARD EXAMPLE FROM SOUTHWEST AIRLINES
Objectives
Measures
Goals
Strategies
Profitability
Market Value
30 % CAGR *
Increased Revenue
Seat Revenue
20 % CAGR
Plane Lease Cost
5 % CAGR
Lower Costs
FAA On Time Arrival Rating
No. 1
Quality Management
On-time flights
Lowest Prices
Customer Ranking (Market Survey)
No. 1
Customer Loyalty Program
Learning Internal Customer Financial
Time on Ground
30 Minutes
Cycle Time
Optimization
Fast Ground Turnaround
% On Time Departure
90 %
Program
% Ground Crew Shareholders
Employee Stock Option Plan
Year 1: 70%
Year 3: 90%
Ground Crew Alignment with Company Goals
% Ground Crew Trained
Ground Crew Training
Year 5: 100%
* CAGR = Compound Annual Growth Rate

18. SSC San Diego Strategy Map Integrated Products & Services
SM-50
To Be the Nation’s Pre-eminent
Provider of Integrated C4ISR Solutions for Warrior Information Dominance
Innovation
Integrated Products & Services
Execution Excellence
Customer, Buyer & Stakeholder
(C 1) Develop Innovative Capabilities
(C 2) Deliver Quality Products & Services
(C 3) Provide Fully Supported Products
(C 4) Provide Affordable Solutions
(C 5) Deliver On Time & Within Budget
(F 1) Invest in Future Capacity
(F 2) Manage Cost of Operations
(F 3) Maintain Financial Health
Financial
(I 5) Improve Strategic Outreach
(I 1) Develop Innovative Solutions
(I 2)
Transition Technology Into Capabilities
(I 4)
Build Trusted Relationships
(I 6)
Team Across Technical, Support & Administrative Functions
Internal
(I 3)
Shape the Business
(I 7) Standardize Technical Work Processes
(I 8) Improve Financial & Administrative Processes
Learning & Growth
(L 1) Ensure a Workforce with Critical Skills
(L 2) Share Corporate Information
(L 3) Align to Shared Vision & Values
(L 4) Cultivate an Enriching Work Environment
V June 2002

19. EPA – Office of Inspector General
SM-51
Measuring the Office of Inspector General’s Performance
GOAL 3: Produce timely, quality and cost
effective products and services that
meet customer needs
GOAL 4: Enhance diversity, innovation,
teamwork and competencies
GOAL 2: Improve EPA’s management and
program operations
Resources
Activities/Program
Outputs
Customers
Short-term
Behavioral
Outcomes
Intermediate
Behavioral and
Organizational
Long-term
Environmental
Ecosystem and
Human Health
Improved
and Natural
Environment
and Human
Health
Improvements •
Changes
Deterred Crimes
Better Systems
and Processes
Employees
Contracts
Technology
Travel
Training
Audits
Evaluations
Investigations
Special Studies
Consulting
Services
Legislative/
GOAL 1: Contribute to improved
GOAL 1: Contribute to improved
environmental quality and human health
environmental quality and human health •
Audits • •
Reports
Reports • •
Congress
Congress • •
Increased
Increased •
Evaluations • •
Briefings
Briefings • •
EPA
EPA • •
OMB
OMB
Knowledge
Knowledge •
Investigations • •
Civil Actions
Civil Actions • •
Changes in
Changes in •
Special Studies • •
Criminal Actions
Criminal Actions • •
Other
Other
Attitude
Attitude •
Consulting • •
Administrative
Administrative
Federal,
Federal,
Services
Actions
Actions
State, Local
State, Local • •
Improved Skills
Improved Skills • •
Aspirations to
Aspirations to •
Legislative/
Agencies
Agencies • •
Private
Private
Improve EPA/
Improve EPA/
Regulatory
Regulatory
Environment
Environment
Reviews
Reviews
Sector
Sector • •
Public
Public
- Legislative changes
- Risks reduced or
- Risks reduced or
- Regulatory changes
eliminated
eliminated
- EPA policy or directive
- Examples of
- Examples of
changes
environmental
environmental
- Risks identified
improvements
improvements
- Best practices identified
- # and % of performance
measures affected
- # of best practices
transferred
- Questioned costs
- Time saved (cycle time)
- Costs avoided or saved
- Recommended
- % of recommendations
% improvement in
GPRA
efficiencies
implemented
rating
- Criminal/ civil/
- Best practices
- Time to resolve
administrative actions
implemented
- examples of
management challenges
- Best practices identified
process/ practice changes
- % satisfaction with EPA
-Fines/recoveries and
service quality
restitutions
- # of collaborative
- # of contacts with
- % of
OIG
work requested
efforts, states/feds
congressional staff
- % customer satisfaction
- Cost and time per
ratings
assignment
- % of cases/
recommendations accepted
- % of engagement letter
expectations met
- % positive image rating
- # of requests to testify
OIG LOGIC MODEL
- % of staff meeting
- % of work
- % of products available
training standards
completed by multi-
electronically
- % of staff in parity
disciplinary teams
with civilian workforce
- % of work
- # of awards for
performed
creativity, innovation
electronically
and teamwork
- # of innovative
- % staff satisfaction
techniques/processes
on internal surveys
and % implemented