1. © 2003, Robert V. Fogel All Rights Reserved. Bob Fogel Dean for Administration Harvard Graduate School of Education Congruence: A Point of View About Organizational Change & Performance

2. © 2003, Robert V. Fogel All Rights Reserved. How do you go about diagnosing and solving organizational problems? Do you have a favorite “formula” or process? Do you have a mental model of an organization? What is it? Do you use it?

3. © 2003, Robert V. Fogel All Rights Reserved. Vision/Strategy/Objectives What is our vision ? How will we succeed? What are our objectives? Vision/Strategy/Objectives What is our vision ? How will we succeed? What are our objectives? Executive Leadership Behavior Information Symbolic action Critical Tasks What key tasks have to get done to implement the strategy? Critical Tasks What key tasks have to get done to implement the strategy? People Do people have the re- quired competencies? Are they motivated? People Do people have the re- quired competencies? Are they motivated? Culture What are the norms, values, attitudes, and behaviors needed? Formal Organization Structure? Controls? Rewards? Careers? Fit Performance Congruence Is All About Alignment!!! CONTEXTCONTEXT CONTEXTCONTEXT PERFORMANCEPERFORMANCE PERFORMANCEPERFORMANCE

4. OUTPUT ENVIRONMENT RESOURCES HISTORY VISION STRATEGY OBJECTIVES VISION STRATEGY OBJECTIVES © 2003, Robert V. Fogel All Rights Reserved.

5. Environment Stakeholders; Options Legal, Political Technology Students, Markets Environment Stakeholders; Options Legal, Political Technology Students, Markets Vision, Strategy, Objectives What is our larger intent? How will we be most successful? Services, Initiatives? Key Stakeholders? Technology; Resources; Partners? Timing; Priorities? How will we measure progress? Vision, Strategy, Objectives What is our larger intent? How will we be most successful? Services, Initiatives? Key Stakeholders? Technology; Resources; Partners? Timing; Priorities? How will we measure progress? Resources Internal strengths Weaknesses Core competencies Resources Internal strengths Weaknesses Core competencies History Major figures Defining events History Major figures Defining events Organizational Context (the inputs) Drives Vision, Strategy and Objectives Harvard Business School Proprietary © 2003, Harvard Business School, All rights reserved © 2003, Robert V. Fogel All Rights Reserved.

6. Vision Strategy Objectives What Are Your Vision, Strategy and Objectives? © 2003, Robert V. Fogel All Rights Reserved.

7. OUTPUT ENVIRONMENT RESOURCES HISTORY VISION STRATEGY OBJECTIVES VISION STRATEGY OBJECTIVES © 2003, Robert V. Fogel All Rights Reserved.

8. Outputs/Performance Definition: What The Organization Actually Produces... How It Performs... How Effective It Is. © 2003, Robert V. Fogel All Rights Reserved.

9. Performance Measures How Do You Measure Performance? © 2003, Robert V. Fogel All Rights Reserved.

10. OUTPUT ENVIRONMENT RESOURCES HISTORY VISION STRATEGY OBJECTIVES VISION STRATEGY OBJECTIVES GAPS? © 2003, Robert V. Fogel All Rights Reserved.

11. All Organizations Have Performance and Opportunity Gaps Gap = Difference between objectives and Outputs. A PERFORMANCE gap is occurring NOW. An OPPORTUNITY gap may happen in THE FUTURE. Problem Solving Steps: 1. IDENTIFY Gaps Clearly defined Quantifiable 2. PRIORITIZE Gaps Strategic impact Cost Forgone benefit Interdependencies © 2003, Robert V. Fogel All Rights Reserved.

12. Video: GAPS © 2003, Robert V. Fogel All Rights Reserved.

13. OUTPUT ENVIRONMENT RESOURCES HISTORY VISION STRATEGY OBJECTIVES VISION STRATEGY OBJECTIVES GAPS? Performance? Opportunity? © 2003, Robert V. Fogel All Rights Reserved.

14. Performance Gaps Opportunity Gaps Are There Recognized Gaps in Your Units Today? © 2003, Robert V. Fogel All Rights Reserved.

15. The Congruence Proposition: “Congruence is the degree to which characteristics of one organizational component are consistent or compatible with those of another component. and It is the degree to which all components are aligned with strategy” Inconsistencies are root causes of performance problems FitGood Performance InconsistencyPoor Performance © 2003, Robert V. Fogel All Rights Reserved.

16. PERFORMANCE ENVIRONMENT RESOURCES HISTORY VISION STRATEGY OBJECTIVES VISION STRATEGY OBJECTIVES Root Causes of Gaps Are Inconsistencies Critical Tasks Critical Tasks Culture Formal Organization Formal Organization People Leadership © 2003, Robert V. Fogel All Rights Reserved.

17. Critical Tasks Critical Tasks Culture Formal Organization Formal Organization People Leadership Let’s Examine These Components of Congruence © 2003, Robert V. Fogel All Rights Reserved.

18. Critical Tasks What key tasks have to get done to implement the strategy? © 2003, Robert V. Fogel All Rights Reserved.

19. Tasks: Critical Work to be Done What tasks are essential to success? What are the important characteristics of these tasks? - Task uncertainty/complexity... certain, uncertain - What knowledge and skill requirements? What are the interdependencies among the tasks... E.g how do pieces of work flow together: - pooled - linear - reciprocal © 2003, Robert V. Fogel All Rights Reserved.

20. Types of Interdependencies Pooled: Simplest... work done independently by different entities Example: Branch A Branch B Branch C Consumer Banking Division © 2003, Robert V. Fogel All Rights Reserved.

21. Types of Interdependencies Pooled: Simplest... work done independently by different entities Example: School A School B School C District, County School System © 2003, Robert V. Fogel All Rights Reserved.

22. Types of Interdependencies Reciprocal: Complex, interlinked feedback loops Example: ResearchManufacturingMarketing © 2003, Robert V. Fogel All Rights Reserved.

23. Types of Interdependencies Reciprocal: Complex, interlinked feedback loops Example: New Curriculum or Other initiative “Dreamed Up” Piloting & Testing Larger Rollout, Stakeholder Buy-In & Implementation © 2003, Robert V. Fogel All Rights Reserved.

25. Critical Tasks Critical Tasks Culture Formal Organization Formal Organization Leadership Let’s Examine These Components of Congruence People © 2003, Robert V. Fogel All Rights Reserved.

26. People Who are they? Do they have the required competencies? Are they motivated? © 2003, Robert V. Fogel All Rights Reserved.

27. Critical Tasks Critical Tasks Culture People Leadership Let’s Examine These Components of Congruence Formal Organization Formal Organization © 2003, Robert V. Fogel All Rights Reserved.

28. Formal Organization Structure? Controls? Rewards? Careers? © 2003, Robert V. Fogel All Rights Reserved.

29. Critical Tasks Critical Tasks Formal Organization Formal Organization People Leadership Let’s Examine These Components of Congruence Culture © 2003, Robert V. Fogel All Rights Reserved.

30. Culture Norms attitudes and behaviors. © 2003, Robert V. Fogel All Rights Reserved.

31. “Organizational culture is the pattern of behavior expectations, or norms, that if they are widely shared and strongly felt can powerfully shape the attitudes and behaviors of individuals and groups.” “Organizational culture is the pattern of behavior expectations, or norms, that if they are widely shared and strongly felt can powerfully shape the attitudes and behaviors of individuals and groups.” © 2003, Robert V. Fogel All Rights Reserved.

32. When we watch people behave, we tend to “see” their behavior as being “caused” by something about their personality or dispositions. When we explain our own behavior, we are far more conscious of the pressure of the situation (e.g., deadlines, rewards, the opinions of others.) In general, we are not sensitive to how powerfully our behavior and that of others is shaped by the situations we are in. When we watch people behave, we tend to “see” their behavior as being “caused” by something about their personality or dispositions. When we explain our own behavior, we are far more conscious of the pressure of the situation (e.g., deadlines, rewards, the opinions of others.) In general, we are not sensitive to how powerfully our behavior and that of others is shaped by the situations we are in. © 2003, Robert V. Fogel All Rights Reserved.

33. Why should leaders care about culture? Culture is a social control system that already operates within your work units and in the larger organization. If you don’t manage it, this control system can undermine innovation and creativity and hinder your ability to execute your strategy. You can diagnose and manage the culture in your units. © 2003, Robert V. Fogel All Rights Reserved.

34. Cultural Diagnosis Imagine a close friend is joining your unit. What advice would you give? What are the espoused values? What behavior is rewarded by management? What to do to be accepted in the group? What behavior will get them “kicked out” of the group? © 2003, Robert V. Fogel All Rights Reserved.

35. Managing Culture Participation: Encourage people to make choices and to get involved, leading them to feel responsible and justify their choices Management as Symbolic Action: Provide a clear vision and consistently support through language, symbols, rewards, and recognition Management of Information: Communicate consistent, relentless messages with vivid examples Reward Appropriate Behavior: Provide desired rewards for critical tasks © 2003, Robert V. Fogel All Rights Reserved.

36. Our company values are:  Communication  Respect  Integrity  Excellence Our company values are:  Communication  Respect  Integrity  Excellence Espoused Values are of Little Use if They are Not Real © 2003, Robert V. Fogel All Rights Reserved.

37. Our company values are:  Communication  Respect  Integrity  Excellence Our company values are:  Communication  Respect  Integrity  Excellence Don’t mistake value statements for norms of daily behavior © 2003, Robert V. Fogel All Rights Reserved.

38. Video: Managing Culture © 2003, Robert V. Fogel All Rights Reserved.

39. Critical Tasks Critical Tasks Culture Formal Organization Formal Organization People Let’s Examine These Components of Congruence Leadership © 2003, Robert V. Fogel All Rights Reserved.

40. Leadership Behavior Information Symbolic Action © 2003, Robert V. Fogel All Rights Reserved.

41. Vision/Strategy/Objectives What is our vision ? How will we compete? What are our objectives? Vision/Strategy/Objectives What is our vision ? How will we compete? What are our objectives? Executive Leadership Behavior Information Symbolic action Critical Tasks What key tasks have to get done to implement the strategy? Critical Tasks What key tasks have to get done to implement the strategy? People Do people have the re- quired competencies? Are they motivated? People Do people have the re- quired competencies? Are they motivated? Culture What are the norms, values, attitudes, and behaviors needed? Formal Organization Structure? Controls? Rewards? Careers? Fit Performance Congruence Is All About Alignment!!! CONTEXTCONTEXT CONTEXTCONTEXT PERFORMANCEPERFORMANCE PERFORMANCEPERFORMANCE © 2003, Robert V. Fogel All Rights Reserved.

42. Vision/Strategy/Objectives What is our vision ? How will we compete? What are our objectives? Vision/Strategy/Objectives What is our vision ? How will we compete? What are our objectives? Executive Leadership Behavior Information Symbolic action Critical Tasks What key tasks have to get done to implement the strategy? Critical Tasks What key tasks have to get done to implement the strategy? People Do people have the re- quired competencies? Are they motivated? People Do people have the re- quired competencies? Are they motivated? Culture What are the norms, values, attitudes, and behaviors needed? Formal Organization Structure? Controls? Rewards? Careers? CONTEXTCONTEXT CONTEXTCONTEXT PERFORMANCEPERFORMANCE PERFORMANCEPERFORMANCE Managers Often Emphasize the Vertical © 2003, Robert V. Fogel All Rights Reserved.

43. Vision/Strategy/Objectives What is our vision ? How will we compete? What are our objectives? Vision/Strategy/Objectives What is our vision ? How will we compete? What are our objectives? Executive Leadership Behavior Information Symbolic action Critical Tasks What key tasks have to get done to implement the strategy? Critical Tasks What key tasks have to get done to implement the strategy? People Do people have the re- quired competencies? Are they motivated? People Do people have the re- quired competencies? Are they motivated? Culture What are the norms, values, attitudes, and behaviors needed? Formal Organization Structure? Controls? Rewards? Careers? CONTEXTCONTEXT CONTEXTCONTEXT PERFORMANCEPERFORMANCE PERFORMANCEPERFORMANCE But, Behavior & Performance is Often Driven by the Horizontal © 2003, Robert V. Fogel All Rights Reserved.

44. “We trained hard, but it seemed that every time we were beginning to form into teams, we would be re- organized. I was to learn later in life that we tend to meet any new situation by re-organizing and a wonderful method it can be for creating the illusion of progress while producing confusion, inefficiency, and demoralization.” Restructuring Is Not Enough! Who said this? © 2003, Robert V. Fogel All Rights Reserved.

45. Roman General Gaius Petronius AD 66 © 2003, Robert V. Fogel All Rights Reserved.

46. Would You Play Poker With Fewer Than Four Suits? © 2003, Robert V. Fogel All Rights Reserved.

47. Would You Play Poker With Fewer Than Four Suits? Critical Tasks People Culture Organization © 2003, Robert V. Fogel All Rights Reserved.

48. It is not necessary to change. Survival is not mandatory. W. Edwards Denning © 2003, Robert V. Fogel All Rights Reserved.