AlEx - Your Line of Sight to Success

Welcome

The Line of Sight to Success

AlEx™

Copyright PDS Group 2009 All Rights Reserved

Why do so many initiatives fail?• 60%+ of change initiatives fail in North

America• 70%+ of leaders expectations are

not understood by their people about a major change – particularly when down-sizing

• 72% of people hired are terminated within 2 yrs due to lack of alignment

In the last 12 years, 2 in 3 failure rate has not changed – From Kotter (1996) to McKinsey (2009)

To Err is Human…..10yrs onINQRI observed (12/09):

• Ten years later, medical errors are still a widespread problem in the American health system. More than 1.5 m Americans are sickened, injured, or killed by medication errors each year. 1.7m Americans battle illnesses due to hospital acquired infections, 99,000 of whom die.

• The information from INQRI shows that medical error morbidity and mortality is on the rise, not on the decline, despite the attention paid to this vexing issue


How can these quality issues be addressed?

• Are there best practices that are easily transferable from setting to setting?

• What taking concrete steps to improve quality by aligning integrated delivery systems?

• What role can an alignment process play in overcoming cultural inertia?


Implementation Challenge

Poor Strategy Execution - Impact95% of employees don’t understand company strategy50% of average employee’s time spent on non-productive work50% more likely to have turnover

Non-Financial FactorsValued Most By Investors

Attract Talented People

Innovativeness

Quality of Strategy

Management Credibility

Strategy Execution

FactorsStrategy Execution

Sources: “The Balanced Scorecard” David P. Norton; Arthur Andersen estimate: Corporate Strategy Board research;Measures That Matter,” Ernst & Young, LLP, Gates, Stephen, Aligning Strategic Performance Measures and Results

Companies Not Delivering Consistently on Strategy

Only 1 in 10 can consistently achieve their Strategy’s full potential

>90%

<10%

AlEx™

Sales

Employees

Business Partners

Executive Team

Owner

Research

Customer Relations

Marketing


Increased sales 10%-15% in 30 weeks

Increased Customer Sat.

Ratings(4th – 1st)

Increase Revenue14% in 6 months

Prevented Restructuring

Failures

Gross Revenues Up from $20m to $30m

Closing RateImproved by 66%

Delivered Building OTIF & No Legal IssuesIsolated Hi

Performing TeamsFactors

Signs of misaligned expectations

“That’s not what I meant…”

“This is not what I asked for!”

“My colleagues don't seem to do what I expect...”

“They never tell us the whole story!”

“I can never do anything right!”

“They never send us information,

we’re always sending information to them!”

Sound familiar?


Aligning Expectations is a Two Way Street – Four Blocker

Your Expectations

of Me

What You Think I

Expect of You

What I Think You Expect

of Me

My Expectations

of You


Cliff & Tom’s Four Blocker

What Cliff Thinks Tom Expects of

Him

Tom’s Expectations

of Cliff

What Tom Thinks Cliff Expects of

Him

Cliff’s Expectations

of Tom

22 12

4 13


Four Blocker Problem


2 People

4 People

8 People

20 People

Aligning Expectations Process (ALEX™)

AlignmentDiscussions

Performance Criteria

DiscardsUnresolved

IssuesNew & Matched Expectations

What Others’ Think I Expect

Them(OEMs)

My Expectations

of Others(MEOs)


Key Component Prioritization

& Implications

Use CrossHairs Reports to

develop problem definitions

6

AlEx

DevelopStrategic

Components

Select Key Players &/or

Focus Groups

2 3

Coach Participants &Collect Their Expectations

5

AlEx™ - The Alignment Process

Mission & Strategy

1Introduce

Components & Process

4

Integration &Transfer

CapabilityKnowledge

SkillsCapacity

9Alignment ProcessBrief, Train, Coach

Rapid Improvement Cycles(Based on Tracking TBDs,

Discards, Complete & Unresolved Expectations)

7

Develop Metrics & Rewards perComponent

8


Project Sizes• Royal Bank of

Canada • IMS Health

(Canada)• Qwest Telecoms

• Genzink Steel

• Turner Construction

• 20 participants/6 weeks

• 25 participants/10 weeks – Phase 1

• 12 participants/8 weeks – Phase 1

• 6 participants/14 weeks

• 12p/8w;86p/1yr; 100+/Ongoing


Health Care Quality


1. Patient-Centered Care2. Teamwork & Collaboration3. Evidence-Based Practice4. Quality Improvement5. Safety6. Informatics

Key Components Example

Business Development

Com

pete

ncy D

eve

lopm

ent

Leaders

hip

Performance Assessment

Management

Delegating

Team Working

Value Delivery Risk Management & Planning


Component DefinitionRespectful Communication

• Using all available resources to accurately and effectively relate ideas and positions to associates and colleagues.

• Manage the tensions created by the conditions, people and conflicting objectives.

• Respectfully listen to others’ contributions, allowing them to engage and own their contributions.

• Respond with thoughtfulness, taking into consideration the contributions of others.

16Copyright PDS Group 2009 All Rights Reserved

Component DefinitionTeam Integration

• This is the effective working between one of more team’s so that a team‘s effort adds to the impact of another teams effort. So optimizing resources and maximizing outcomes is a natural outcome. It is based on every one recognizing that "we are all in this together."

• Welcome the talents and contributions of all members into the team environment. Manage communication, decisions and actions so all are committed to agreements. - Raise the bar by consistently sharing knowledge, advising, mentoring and developing associates and colleagues.


My Expectations of Others(MEO)

What I expect of another person or people during this change process includes:

• What I expect you to keep doing . .

• What I want you to start doing . . . .

• What I want you to stop doing . . . .


Others’ Expectations of Me(OEM)

What I think others will expect of me during this change process includes:• What things I think others will expect me to keep

doing . . . .

• What new things I think others start doing . . . .

• What things I think others want me to stop doing . . . .


Expectations Status after 9 mths

Project Finances

Project Leadership

Project Quality

Respectful Communications

Team Integration

Value Innovation

0

500

AgreedCompleteDiscardTBDUnresolved


General Contractor - Subs TBDs

Project Finances

Project Leadership

Project Quality

Respectful Communications

Team Integration

Value Innovation

0

100

200


Turner - Subcontractors

Filters1. Tension = 5 & 42. Group Focus = Inter3. Acc Grp = Same4. Expect. Type = MEO & OEM5. Decision = TBD

Project Finances

Project Leadership

Project QualityRespectful Communications

Team Integration

0

10

20


Cliff & Tom’s Four Blocker

What Cliff Thinks Tom Expects of

Him

Tom’s Expectations

of Cliff

What Tom Thinks Cliff Expects of

Him

Cliff’s Expectations

of Tom

22 12

4 13


Cross HairsAlignment Issues identified

Q1

Q4

Q3 Q2


AlEx™Priorities Content

Over Channeling

Under Channeling

Managers

Direct Reports

Inside Groups

Between Groups

What’s your Line of Sight?


Under & Over Channeling


Airport All projects

Sacramento

Airport

Grand Total

Holder Type Brown, Jamie

Griffanti, Grant

Corey, Rich

Ginoza, Mike

Gunter, Lee

Hiser, Matt

Hull, Jim

Plushnick, Bob

Pulliam, Marc

Ralls, Gary

Reich, Katheri

ne

Romo, Alesand

er

Sauer, Brian

Sloan, Joel

Brown, Jamie MEO 2 2

Griffanti, Grant MEO 37 37

OEM 1 5 6Corey, Rich MEO 1 1 1 1 1 1 1 1 1 1 1 1 12

OEM 2 2Ginoza,

Mike MEO 2 2 4

OEM 1 1 2Gunter, Lee OEM 1 1Hiser, Matt MEO 2 3 2 3 2 12

OEM 2 1 3 6 12Hull, Jim MEO 7 7 9 8 31

OEM 2 10 3 3 3 2 23Plushnick,

Bob MEO 1 2 4 3 1 1 1 13

OEM 1 1 2Pulliam,

Marc MEO 1 1 3 5

OEM 1 1 2Ralls, Gary MEO 1 4 2 3 10

OEM 1 6 4 1 5 2 1 20Reich,

Katherine MEO 3 1 4

OEM 1 2 1 4Romo,

Alesander MEO 7 7

OEM 1 2 1 4Sauer, Brian MEO 2 1 3 5 1 1 3 5 1 1 2 25

OEM 1 2 3Sloan, Joel MEO 9 9

OEM 20 1 2 1 242 22 16 20 4 24 33 9 5 31 24 14 20 52 276

An Airport Project CrossHairs


Pairing Q1 Q2 Q3 Q4 Grand Total

AR-JmH 7 2 8 2 19

BP-JmH 4 7 1 12

BS-MP 3 1 3 7

BS-MtH 5 6 3 2 16

GG-JS 37 20 5 62

GR-JmH 2 3 4 9

GR-JS 3 2 9 1 15

GR-MtH 4 2 6 12

GR-RC 1 1 2

JmH-KR 9 2 3 3 17

JmH-MG 7 1 2 10 20

Grand Total 81 37 38 35 191

An Airport Project DRs


Phased Competency Development - Priorities

Tension Rating Coaching/TrgRating

#Expectations

5 4 42

5 3 107

5 2 54

5 1 38

4 4 54

4 3 114

Total 318


Expectations (MEO) vs. Assumptions (OEM)

Manager’sExpectations

(MEO’s)Direct Reports’ Assumptions

(OEM’s)

By permission Qwest Tel.

LeadCoach

PlanCollaborate

CommunicateRecognize

ValueInfluence


Progressive DIs

Alignment; 51; 78%

Distraction; 14; 22%

Distraction/Alignment Index – Core Team - August

Alignment; 210; 97%

Distraction; 6; 3%

Distraction/Alignment Index – Core Team - January


Initial Component Alignment Indices

Proj

ect L

eade

rshi

p

Team

Inte

grat

ion

Respe

ctfu

l Com

mun

icatio

ns

Proj

ect F

inan

ces

Proj

ect Q

ualit

y

Value

Inno

vatio

n0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

82%75%

51%

66% 64%70%

18%25%

49%

34% 36%30%

Alignment & Distraction - Percent

DI%AI%


Current Component Alignment Indexes

Project Lead-ership

Team Integration Project Quality Respectful Communications

Project Finances Value Innovation0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

84%80%

97%

79% 79%

93%

16%20%

3%

21% 21%

7%

Alignment & Distraction - Percent

DI%AI%


Group Component Tension Ratings

Proj

ect F

inan

ces

Proj

ect L

eade

rshi

p

Proj

ect Q

ualit

y

Respe

ctfu

l Com

mun

icatio

ns

Team

Inte

grat

ion

Value

Inno

vatio

n0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

ArchitectEngineer/ConsultantSubcontractorSutterTurner


Cross Hairs - Targeting on what counts

• OAC’s as a percentage of total expectations – 11:2489=.44%

• RFI’s /design issues expectations as a total percentage of total expectations 116:2489=4.6%

• CO’s as a total percentage of total expectations 128:2489=5.1%


Imp

rovin

g

Alig

nm

en

t

Traditional

Getting Aligned – Weekly!Requirements

WeeklyAlignmentMeetings Reduce Costs

& Increase Revenue

Time


Real Alignment


OriginatorPromotesDiscussion

Originator &Receiver Decide:

AgreeDiscard

Unresolved

Receiver Agrees Evidence

Originator Rates

Performance

OriginatorCoachesReceiver

The Alignment Process

AlEx™ Easy Entry

AlEx™ Cross Hairs

AlEx™ Priority 5

AlEx™ Cross Hairs

New Expectations

AgreeEvidence

RateCoach

Rate Again

Hold Receivers Accountable


CoachingStrategically

Seven Alignment Challenges

EmbeddingChange

RemovingDistractions

Rewarding Change

AligningExpectations

OperationalExcellence

Replicating Success


AlEx™

• Expectations – Aligned, Clear &

Focused• Distractions

identified• Performance Contracts Agreed• Web-enabled

CAM™ • Competencies

focused on $$$• Evidence-based

• Track impact on bottom-line

Practicums™ • Real Accounts

• Evidence-based & $$$ Tracked

• Competencies enabled

Executive Coaching

• Builds Competence• Revenue

Generating & Cost Saving

• Cascade Enabled

LearningDesign

•Performance Contracts Focused

• Addresses Right Competencies

• Measurable• Cascade Enabled

46


AlEx™

Summary

Key Component Prioritization

& Implications

Use CrossHairs Reports to

develop problem definitions

6

AlEx

DevelopStrategic

Components

Select Key Players &/or

Focus Groups

2 3

Coach Participants &Collect Their Expectations

5

AlEx™ - The Alignment Process

Mission & Strategy

1Introduce

Components & Process

4

Integration &Transfer

CapabilityKnowledge

SkillsCapacity

9Alignment ProcessBrief, Train, Coach

Rapid Alignment Cycles(Based on Tracking TBDs,

Discards, Complete & Unresolved Expectations)

7

Develop Metrics & Rewards perComponent

8


PDS Database Administration

AlEx

Set Up DatabaseOrganization Directory

Key ComponentsEngagement Details

Define RelationshipsParticipant Directory

Processes and GroupsCustom Relationship Reports

Create Cross Hairs Standard Reports

Master ListEngagement Summary

Channel Analyses

Create Cross Hairs Custom ReportsGroup and Process Lists

Distraction IndicesTension Ratings

SkillsData

AdministrationInputEdit

Customize

3

AlEx™ - Integration & Transfer

CapabilityData

CoordinatorCollect

DistributeMonitor

1Knowledge

Data Analysis

ReviewTrendReport

2Capacity

Data Management

SecureSet Up

Reorganize

4

PDS Data Management

Client Data Management


AlEx™


Increased sales by 10%-15% in 30 weeks

Increased Customer Sat. Ratings

(4th – 1st)

Increase Revenue14% in 6 months

Prevented Restructuring

Failures

Gross Revenues Up from

$20m to $30m

Closing RateImproved by 66%

Delivered Building OTIF & No Legal Issues

Isolated Hi Performing Teams

Factors

Thank you


AlEx™


Keep, Start & Stop

In all planned change the minimum number of alignment components needed:

• What do people need to keep doing• What do they need to start doing• What they must stop doing

AlEx - Your Line of Sight to Success

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