1. Arnarsson, Gestsson and Knútsson A Leadership Program for UNU-FTP and CRFM

2. Learning Objectives That participants are able to state the most important elements of business excellence can explain the importance for leaders to create an environment that nurtures excellence can identify and explain the differences and communalities of excellence leadership models can choose between… apply 2

3. Content Characteristics of excellence companies/institutions Tom Peters and Robert H. Waterman Jr. “In Search of Excellence” 1982, 2004 Jim Collins “Good to Great” 2001 Jim Collins “How the Mighty Fall” 2009 Danny Samson and David Challis “Patterns of Business Excellence” 2002 Warren G. Bennis and Robert J Tomas “ Geeks and Geezers”, 2002 3

4. Peters & Waterman Tom Peters and Robert H. Waterman Jr., presented an initial inside look at 43 of Fortune 500's top performing companies They started with a list of 62 of the best performing McKinsey clients Most of the companies were in high-tech industries The essential message of In Search of Excellence is simply: People Customers Action 4

5. The McKinsey Seven-S Model

6. Attributes for excellent and innovative companies 1. A bias for action, active decision making - 'getting on with it'. 2. Closeness to the customer - learning from the people served by the business 3. Autonomy and entrepreneurship - fostering innovation and nurturing 'champions' 4. Productivity through people - treating rank and file employees as a source of quality 5. Hands-on, value-driven - management philosophy that guides everyday practice - management showing its commitment 6. Stick to the knitting - stay with the business that you know 7. Simple form, lean staff - some of the best companies have minimal HQ staff 8. Simultaneously loose-tight properties - autonomy in shop- floor activities plus centralized values 6

7. “some” eða main Characteristic of excellent companies Communications is open and informal Managers/Leaders are visible Cross functional meetings are regular Problems are solved immediately A strong will to experiment Simplicity is the rule Family “friendly” culture Emphasis on training and learning 7

8. Jim Collins´ GOOD to GREAT A five-year study determining the difference between good companies and great companies Can a good company become a great company, and if so, how? Comparison study used mainly interviews Started with 1,435 good companies. Examined their performance over 40 years. Find Found the 11 companies that became great 28 companies. 11 that made it from good to great, 11 that didn´t and 6 that went from great to good “Good is the enemy of great” http://www.jimcollins.com/tools/diagnostic-tool.pdf 8

9. Good to Great A great organization is one that delivers superior performance and makes a distinctive positive impact over a long period of time For a social sector organization, performance must be assessed relative to mission, not financial returns “Almost any organization can substantially improve its stature and performance, perhaps even become great, if it conscientiously applies the framework of Good to Great ideas” 9 http://www.jimcollins.com/tools/diagnostic-tool.pdf

10. Good to Great Disciplined People Level 5 Leadership First Who … Then What Disciplined Thought/thinking Confront the Brutal Facts (Yet Never Lose Faith) Simplicity (Hedgehog Concept) Disciplined Action A Culture of Discipline Technology Accelerators 10

11. Good to Great Process 11

12. Disciplined People Level 5 Leadership 12

13. Disciplined People First Who … Then What What did “The Halo Effect” say about this? Answer the who questions before the what decision G2G leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus) and then figured where to drive G2G leaders were rigorous but not ruthless with people When in doubt, don’t hire When people challenge needs to take place, act G2G management teams debated in search of best answers and stood unified behind their decisions 13

14. Personal Humility Demonstrates a compelling modesty, shunning public adulation; never boastful Acts with quiet, calm determination; relies principally on inspired standards but not inspiring charisma to motivate Professional Will Creates superb results, a clear catalyst in the transition from good to great Demonstrates an unwavering resolve to do whatever must be done to produce the best long- term results, no matter how difficult The two sides of the level 5 leaders 14

15. Personal Humility Channels ambition into company, not the self, sets up successors for even more greatness in the next generation Looks in the mirror, not out the window, to apportion responsibility for poor results, never blaming other people, external factors, or bad luck Professional Will Sets the standard of building an enduring great company; will settle for nothing less Looks out the window, not in the mirror, to apportion credit for the success of the company – to other people, external factors, and good luck The two sides of the level 5 leaders 15

16. Disciplined Thought Confront the Brutal Facts All G2G companies began the process to greatness by confronting the brutal facts of their current realities Honestly and diligently determine the truth of your situation, and the right decisions become evident Create a climate where truth is heard. Lead with questions, not answers Engage in dialogue and debate, not coercion Conduct autopsies, without blame Build red flag mechanisms that turn information into information that cannot be ignored 16

17. Disciplined Thought The Hedgehog Concept Foxes pursue many ends at the same time and see the world in all its complexity Hedgehogs simplify a complex world into a single organizing idea, basic principle that unifies everything 1. What can you be the best in the world at? 2. What drives your economic (resource) engine? 3. What are you deeply passionate about? This is not a goal to be the best, a strategy to be the best, an intention to be the best, a plan to be the best. It is an understanding of what you can be the best at 17

18. The Hedgehog Concept 18

19. Disciplined Action A Culture of Discipline Sustained great results depend upon building a culture of self-disciplined people who take disciplined action, fanatically consistent with the three circles Involves a duality: requires a consistent system and gives people freedom and responsibility within the framework of that system Fanatically adhere to the Hedgehog Concept and shun opportunities that fall outside the three circles 19

20. Disciplined Action Technology Accelerators G2G organizations avoid technological fads, yet become pioneers in carefully selected technologies Does the technology fit with your Hedgehog? Technology without a clear Hedgehog Concept, and without the discipline to stay within the three circles, cannot make a company great Technology accelerates the momentum, does not create it No new technology, no matter how great, can ignite a shift from good-to-great 20

21. G2G Leaders Surprisingly 10 out of 11 of the leaders in the great companies were hired from within the company Most of the leaders of the comparative companies had been hired externally Level 5 leaders see themselves as a part of their team, as expendable This is a sharp contrast with CEOs of Dunlop, Iacocca and Welch who see themselves as indispensable leaders 21

22. How the Mighty Fall Stage 1: Hubris born of success the cultural tipping point when hard work and focus to earn the business turns into a sense of entitlement to future success Stage 2: Undisciplined pursuit of more People chasing goals that take them away from their core, their competitive advantage all in the name of growth, abandoning the hedgehog concept in favor the rabbit's pursuit of quick gains Stage 3: Denial of risk and peril chasing things that are not part of your core, you fail to see the problems or blame the problems on the outside world. You are blind to the brutal facts Stage 4: Grasping for salvation often in the form of the silver bullet, visionary leader all of which keep your attention away from the core (Flywheel) and lead you into further decline Stage 5: Capitulation to irrelevance or death The terminus of the lifecycle, the one place you cannot recover from 22

23. Denial of Risk and Peril 23 Stage 1 Arrogance Born of Success Stage 2 Undisciplined Pursuit of More Stage 3 Denial of Risk and Danger Stage 4 Grasping for Salvation Stage 5 Capitulation to Irrelevance or Death

24. Daniel Samson and Davis Challis describe and illustrate a holistic management system and set of guiding principles that are common to the world’s best companies The system comprises closely connected elements of the integrated improvement strategy, action plans, performance management, external benchmarks, and rewards for all employees Leaders can then set up an action plan to permanently change the state of their organization and achieve a significantly improved likelihood that improvement initiatives will work sustainably 24

25. 14 Factors that support Excellence 1. Alignment 2. Distributed leadership 3. Integration 4. Being out front 5. Being up front 6. Resourcing the medium term 7. Being time-based 8. Implementation excellence 9. Having a learning focus 10. Being disciplined 11. Measurements and reporting/publication 12. Driving customer value 13. Capabilities creation 14. Micro to Macro 25

26. Bennis and Thomas On leadership and learning and about the process by which some people succeed again and again Why some people are able to extract wisdom from experience, however harsh, and others are not It is a model, that explains how individuals make meaning out of often difficult events they call crucibles, and how that process of meaning-making gives them a distinctive voice 26

27. Geezers and Geeks interviewed 27

28. Differences Careers: Geezers saw a conventional career path, followed for a time if not forever Geeks tended to see their careers as adventures, fashioned for themselves, usually in collaboration with their peers Balancing personal life and work: Most Geezers were workaholics, leaving family issues to their wives Geeks are more confident of meeting their survival needs and are not content to work to the exclusion of everything else 28

29. Commonalities Both generations were able were able to thrive in complex, ambiguous situations Geeks, who came of age in an era of relentlessly accelerating change continuously face new tests Many of the geezers interviewed, having enjoyed predictable and conventional success, later became risk takers 29

30. Bennis and Thomas 30

31. Summary Leaders have to build holistic management system to create environment for excellence The business excellence criteria's needs to by updated in accordance to time Leaders needs to work with other in the team to build up excellence Personal Humility Personal Will The will to learn and improve is necessary to build up excellence environment 31

32. Reference 32