Aetna consensus slides

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Communities of Communities of LeadersLeaders

Culture of Trust, Knowledge Culture of Trust, Knowledge Sharing, Values, and Sharing, Values, and

Dynamic TeamingDynamic Teaming

Key Themes Key Themes

• Culture of Trust

• Knowledge Sharing (Intellectual Capital)

• Values

• Dynamic Teaming

• Communities of Leaders

Case Example Based Case Example Based

Organization A Organization B

1. Economic/Success 1. Pioneerism

2. Administration 2. Technology

3. Service 3. Administration

4. Technology 4. Collaboration

Skills Map

Phase ISURVIVING

Phase IIBELONGING

Phase IIISELF-INITIATING

Phase IVINTERDEPENDENT

1: SAFETY 2: SECURITY 3: FAMILY 4: INSTITUTION 5: VOCATION 6: NEW ORDER 7: WISDOM8: WORLD

ORDER

GoalsSelf Interest/Control

Self PreservationWonder/Awe/Fate

MeansFood/Warmth/Shelter

Function/PhysicalSafety/Survival

GoalsPhysical Delight

Security

MeansAffection/PhysicalEconomics/ProfitProperty/Control

Sensory/PleasureTerritory/SecurityWonder/Curiosity

GoalsFamily/Belonging

Fantasy/PlaySelf-Worth

MeansBeing LikedCare/Nurture

Control/Order/DisciplineCourtesy/Hospitality

Dexterity/Co-ordinationEndurance/Patience

EquilibriumFriendship/Belonging

Obedience/DutyPrestige/ImageRights/Respect

Social/AffirmationSupport Peer

Tradition

GoalsBelief/Philosophy

Competence/ConfidencePlay/Recreation

Work/Labor

MeansAchievement/SuccessAdministration/ControlCommunication/Info

CompetitionDesign/Pattern/Order

Duty/ObligationEconomics/Success

Education/CertificationEfficiency/Planning

Hierarchy/OrderHonor

Law/RuleLoyalty/FidelityManagement

Membership/InstitutionOwnership

Patriotism/EsteemProductivity

ReasonResponsibility

Rule/AccountabilityTechnology/Science

Unity/UniformityWorkmanship/Art/Craft

GoalsEquality/Liberation

Integration/WholenessSelf-ActualizationService/Vocation

MeansAdaptability/Flexibility

Authority/HonestyCongruence

Decision/InitiationEmpathy

Equity/RightsExpressiveness/Joy

Generosity/CompassionHealth/HealingIndependence

Law/GuideLimitation/Acceptance

Mutual ObedienceQuality/Evaluation

RelaxationSearch/Meaning/Hope

Self AssertionSharing/Listening/Trust

GoalsArt/BeautyBeing Self

Construction/New OrderContemplation

Faith/Risk/VisionHuman Dignity

Knowledge/InsightPresence

MeansAccountability/Ethics

CollaborationCommunity/Supportive

ComplementarityCorporation/Stewardship

CreativityDetachment/Solitude

DiscernmentEducation/Knowledge

Growth/ExpansionIntimacy

Justice/Social OrderLeisure

Limitation/CelebrationMission/Objectives

Mutual AccountabilityPioneerism/Innovation

ResearchRitual/Communication

Simplicity/PlayUnity/Diversity

GoalsIntimacy/Solitude

Truth/Wisdom

Means Community/Personalist

InterdependenceMinessence

Prophet/VisionSynergy

Transcendence/Solitude

GoalsEcority

Global HarmonyWord

MeansConvivial Technology

Global JusticeHuman Rights

Macroeconomics

Instrumental Skills Interpersonal Skills Imaginal Skills Systems Skills

5/99

Example of Group Skills

The Old Economy: Culture of The Old Economy: Culture of ScarcityScarcity

Phase ISurviving

Phase IIBelonging

Phase IIISelf-Initiating

Phase IVInterdepending

AUTOCRACYPower in Land

BUREAUCRACY Machine &

Measurement

PARTNERINGKnowledge/Relationship

SELF ORGANIZINGGlobal &

Networked

• Mass Production • Human Freedom • Industrial Know how• Hierarchical Organizations

Pre 1780Pre 1780 same standardsame standard

of living for 3000of living for 3000 yearsyears

1800’s

1950

The New Economy: The New Economy: Culture of Relationship & Culture of Relationship &

AbundanceAbundance

Hierarchies

The Knowledge Era

Dependence

Loyalty

Innovative Minds

Relationships Customers

1980....

Phase ISurviving

Phase IIBelonging

Phase IIISelf-Initiating

Phase IVInterdepending

AUTOCRACYPower in Land

BUREAUCRACY Machine &

Measurement

PARTNERINGKnowledge/Relationship

SELF ORGANIZINGGlobal &

Networked

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Culture of TrustCulture of Trust

Trust is the belief or confidence in the honesty, integrity, reliability, and justice of our colleagues

• Highest forum of human motivation• Brings out the very best in people & generates

community • Takes time and patience because...

WE HAVE TO CONTINUALLY EARN IT!

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The Results of High TrustThe Results of High TrustResults of Low Trust

• Diminishing productivity

• Defensiveness

• Hostility

• Power Struggles

• Alienation

• Depleted energy

• Feeling insatiable

• Anxiety and tension

• Limited creativity and visions

Results of High Trust Increasing productivity Openness Friendship Cooperation Connection Increased energy Satisfaction Peacefulness and Tranquility Expanded creativity and

visions

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The Ethics of Successful The Ethics of Successful Communities of LeadersCommunities of Leaders

• Fairness• Integrity• Honesty• Authenticity• Human dignity• Consistency• Congruence • Encouragement

• Responsibility• Humility• Fidelity• Courage• Justice• Growth• Quality to like people• Trust

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What leaders do, what they What leaders do, what they believe and value, and what they believe and value, and what they

reward:reward:

Nothing is noticed more quickly and considered more significant than a discrepancy between

what executives preach and what they expect

their associates to practice.

you are watched and seen, and minutely interpreted through the whole organization.

• Honesty

• Fairness

• Consistency

• Responsibility

• Justice

• Human Dignity

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Management to Management to LeadershipLeadership

• Planning & budgeting• Organizing & staffing• Controlling & problem

solving• Predictability & order

• Establishing direction• Aligning people• Motivating & inspiring

• Produces change, often

dramatic & breakthrough to be more competitive

Management Community of Leaders

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Reactive and Proactive Reactive and Proactive PeoplePeople

Reactive People• Focus on the weaknesses of other people

• Focus on the problems in the environment

• Use reactive language

• Have increased feelings of victimization VERSUSVERSUS

Proactive People• Focus on and build upon the strengths of others

• Identify and seize opportunities

• Have positive energy

• And are able to forgive

• a focus on the generation of internal opportunities by deepening and broadening customer relationships

A Profound Shift is Taking A Profound Shift is Taking Place ...Place ...

• a portfolio approach to the allocation of financial capital across the competing needs of the firm

From To

in order to...in order to...

• leverage financial capital as a scarce resource

• leverage knowledge to renew and innovate

The traditional organization

• internally-focussed• bureaucratic• reactive/slow moving• rule-bound/inflexible

Command and Control

hierarchical

The inverted pyramid

• seperate businesses• product multiplicity• P&L performance incentives• personal ownership• shared responsibility

Accountability and Responsiveness

customer-focused

The partnering organization

• dynamic / flexible• based on value creation• configuring capabilities• open to stakeholders• leveraging alliances• communities of leaders

Network of Commitments

customer-centered

Effective Organizations are Effective Organizations are HolographicHolographic

• The company’s vision, values, and goals are shared by every member

• As each individual possesses a clear view of the “larger picture” she or he understand and participates in the life of the whole

• Shared visions, values, and goals provide an efficient way of building commitment, guiding decision making, aligning actions, and achieving holographic state that unites members in effective performance and vibrant community

Dynamic Organization Dynamic Organization StructuresStructures

CULTURE

STRATEGY

SOCIO-PSYCHOLOGICAL LEVEL

ECONOMIC-FINANCIAL LEVEL

INFORMATION

PROCESS & MATERIAL FLOW LEVEL

Organizational culture is the generic term which includes the company culture

Values are an essential part of organizational culture -express whole filed of human preference

One must generate a system of objectives based on company philosophy, culture & strategic orientation of the company

Financial Capital

Tangible Assets

The Enterpriseas a whole

Knowledge Capital

...knowledge capital is the sum of human, structural and customer capital

Structural CapitalCustomer Capital

Human Capital

A Framework for Knowledge CapitalA Framework for Knowledge CapitalA Framework for Knowledge CapitalA Framework for Knowledge Capital

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The Human Potential in The Human Potential in an Organizationsan Organizations

Human Beings are both unique and complex

Mental

Emotional

Physical

•Concepts

•Structures

•Ideas

•Actions

•Operations

•Relationships

•Imagination

•Linear

•Logical

•Sequential

•Systemic

•Gathering

•Linking

•Feeling

•Connecting

•Communicating

Using our Whole Selves:Using our Whole Selves:Thoughts and Feelings ...Thoughts and Feelings ...

YangLogical

Linear ThinkingVerbal

“Masculine”Deals with WordsParts, specifics

AnalysisBreak apartSequential Thinking

Thoughts

YinIntuitive

Holistic thinkingAssociative“Feminine”

Deals with PicturesWholes

Synthesis Put together

Simultaneous and Holistic

Feelings

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Being Alive with Being Alive with Meaning ...Meaning ...

• Aliveness

• Passion

• Integrity

• Authenticity

• Relatedness

• Expression

• Reverence

• Perspective

• Fully engage

• Deep meaning, purpose & direction

• Character, ethic, courage, congruence

• Centering/ self-referral, inner peace

• Conversation, vulnerability, compassion

• Generating learning, speaking truth

• Grace, humility, service

• Cultivating a field of view, thinking holistically

Value in waiting

Value creation resultant

Value creation interactionHuman

Customer Structural

The Dynamics of Knowledge The Dynamics of Knowledge CapitalCapital

Value Creation is Driven by the Interaction of the

Three Key Components of Intellectual (Enterprise) Capital

Aspirations

Aspirations

AspirationsAspirations

Capabilities

Capabilities

Capabilities

Capabilities

Customers’ Customers:

Suppliers/Partners:

Customers/Partners:

Aetna:

Aetna’s Field of Aetna’s Field of InteractionInteraction

Opportunities

See your organisation as if it consists of

nothing but Knowledge and Knowledge Flows

Knowledge FocusKnowledge Focus

CustomerCapital

StructuralCapital

HumanCapital

Focus on Knowledge: Start the DialogueFocus on Knowledge: Start the Dialogue

How can we capture data into systemssupporting dialogue with customers? Which IT systems support tacit

knowledge transfer?

How can we build better relationships with customers and suppliers that bring learning to our people?

How can we maximize leverage of all intangible assets in working for customers?

How can we improve relations with customers and suppliers that bring intangible revenues?

•How can we create an office space for knowledge transfer?•How can we change internal control systems to reflect Intangible Assets?

•How can we create events that transfer tacit knowledge?•How can we improve trust among people?

ValuesValues Values priorities are the glue that hold relationships & knowledge together

All relationships, personal & team are based on a minimal set of commonly held values priorities

Since values priorities are measurable they are the KEY to cultural alignment & knowledge management

Knowledge

RelationshipsValues

.. a good team is based on minimal values held in common that gives added values to each person

unclear values

values ofperson 4values of

person 1

values ofperson 3

values ofperson 2

Leadership Team Core

Values

team member values

team member values

team member values

team member values

business team 1

business team 2

business team 3

business team 4

OrganizationalCore Values

alignment of teams within the

organization

alignment of individuals

within teams

The Process of Aligning ValuesThe Process of Aligning Values

The Four “V’s”The Four “V’s”

Values

EnergizingIndividuals

Valuing

Building Relationships

Team “I”ng

Value

KnowledgeCreation

“They are all connected”

Monetary - measures….Values - enhance and measure ...

Valuation

EconomicValue

Aspirations

Aspirations

AspirationsAspirations

Capabilities

Capabilities

Capabilities

Capabilities

Customers’ Customers:

Suppliers/Partners:

Customers/Partners:

Aetna:

Aetna’s Field of Aetna’s Field of InteractionInteraction

Opportunities

Transactions

Product Solutions

Business SolutionsMass Customization

PartneringDynamic Teaming,

Virtual Enterprising &Knowledge NetworkingUnique Customization

StructuralCapital

Community ofCapabilities &

Aspirations

Human CapitalIndividual Capabilities & Aspirations

Customer/SupplierCapital

Virtual Community ofCapabilities & Aspirations

Evolving Business Evolving Business ModelModel

Dynamic Teaming &Dynamic Teaming &Knowledge NetworkingKnowledge Networking

CapabilitiesAspirations

Aspirations

Aspirations Aspirations

Capabilities

CapabilitiesCapabilitiesCompany

Supplier/Partners

Customers’ Customers

Customers

Envisioning

Knowledging

Balanced Scorecard: Balanced Scorecard: Navigating into the FutureNavigating into the Future

Vision

Strategy

Culture

Values

Financial Perspective

Examples:GWBNet IncomeIncome Growth

“If we succeed, how will we look to our shareholders?

Customer Perspective

Examples:Market ShareCustomer SatisfactionService Quality

How do we look to our customers?

Internal Business Perspective

Examples:Time to reactCapacity UtilizationEfficiency

What business processes must we excel at?

Innovation and Learning Perspective

How can we sustain innovation, change and improvement?

Balanced Scorecard: Balanced Scorecard: Navigating into the FutureNavigating into the Future

Vision

Strategy

Culture

Values












CustomerCapital

FinancialCapital

StructuralCapital

HumanCapital

Balanced Scorecard: Balanced Scorecard: Navigating into the Future Navigating into the Future (Revised)(Revised)

Vision

Strategy

Culture

Values












CustomerCapital

HumanCapital

StructuralCapital

FinancialCapital

Balanced Scorecard: Balanced Scorecard: Navigating into the Future Navigating into the Future (Values)(Values)

Vision

Strategy

Culture

Values












Values:

Values:

Values:

Values:

VALUES:InstrumentalInterpersonalImaginalSystems

Communities of LeadersCommunities of Leaders^

Aetna consensus slides

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