Aligning Expectation in a Business Transition.V1

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Reducing Business Dependence on the Owner The Line of Sight to Transition AlExopyright PDS Group 2009 All Rights Reserved

description

The role of realigning stakeholders and Key players that enable a business owner to transition out of their business

Transcript of Aligning Expectation in a Business Transition.V1

Page 1: Aligning Expectation in a  Business Transition.V1

Reducing Business Dependence on the Owner

The Line of Sight to Transition

AlEx™

Copyright PDS Group 2009 All Rights Reserved

Page 2: Aligning Expectation in a  Business Transition.V1

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)

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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%

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The elastic band of dependence

Organization

Owner

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What do you allow employees to do?

Habits of dependence they think is required:• It’s easier – “if I don’t make decisions, I can’t make

mistakes”• Lean on the founder because they fear

change...who will take over after…On the plus side…..

• Employee Involvement (EI) is greater in companies under 25 employees who typically have developed a working relationship with the owner: Encourages commitment to managerial goals &

the success of the enterprise Increases profitability

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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?

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Page 7: Aligning Expectation in a  Business Transition.V1

Can you Transition? Dependency Analysis

Independent

1 2

34

Wh

at

you

exp

ect

What they think you expect

You ain’t going

Anywhere!

You canTransition!

They don’tget it!

You don’tget it!

Hi

Hi

Lo

Lo

Page 8: Aligning Expectation in a  Business Transition.V1

AlEx™

Copyright PDS Group 2009 All Rights Reserved

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

Page 9: Aligning Expectation in a  Business Transition.V1

Genzink Steel Case Study

“My aim was to transition out of operations while getting more visibility and insight about GS people.

I needed an approach that could show:• Which people are that understand their job; • Which people need a little help to get the job done; • Who are the people who just don’t get it? • With bringing in new people quickly, an assessment was

needed to see if the blend of new and existing team were able to sit down and understand what needs to get done. “Are they going to hook up?”

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Genzink Steel Case Study (contd.)

AlEx™…..helped me:• Gain insight about the new people and those

we had on-board for some time • Realize more than ever that many decisions

and observations were assumptions....AlEx™ verified and challenged my assumptions

• Verify and test other peoples’ assumptions by mapping out the key inter-relationships…

• Depend on five key managers …which showed how well they hooked up and how I could get to the point of standing back.

Page 11: Aligning Expectation in a  Business Transition.V1

Cliff & Tom Case Study

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

Page 12: Aligning Expectation in a  Business Transition.V1

Four Blocker Problem

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2 People

4 People

8 People

20 People

Page 13: Aligning Expectation in a  Business Transition.V1

Aligning Expectations Process (ALEX™)

AlignmentDiscussions

Performance Criteria

DiscardsUnresolved

IssuesNew & Matched Expectations

What Others’ Think I Expect

Them(OEMs)

My Expectations

of Others(MEOs)

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Page 14: Aligning Expectation in a  Business Transition.V1

My Expectations

What I expect of people during the transition. Includes: What I expect you to Keep doing . . . .

What I want you to Start doing . . . .

What I want you to Stop doing . . . .

Page 15: Aligning Expectation in a  Business Transition.V1

Others’ Expectations

What I think others will expect of me during the transition, Including: What things I think others will expect me to Keep

doing . . . .

What I think others want me

to Start doing . . . .

What things I think others want me to Stop

doing . . . .

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Keep, Start & Stop

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

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

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Keep Expectations

• Ensure all PO's and subcontracting will be directed through Matt G. for pricing review, final approval, communication and follow-up.

• Consistently convey the message to troops that we have to work as a team to meet the schedule objectives that the customer expects - not as separate departments

• Ensure that all processes and planning documents that I have developed are used consistently and continually improved

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Start Expectations

• Help people in the plant look at the big picture when planning the work at each station and be able to quickly adapt the schedule according to the availability of parts and the work required at the next station.

• Support me to work with the service people and sales people to change their attitude from "us" to "we" (cross functional problem solving)

• All PO's or subcontracting of raw materials will be directed through Matt G and progress of any subcontracting will be followed up by Matt G

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Stop Expectations• Become increasingly less involved in the MRO

improvement process with me in an overview of the objectives limitations and capabilities of the modified software

• Stop being so impatient!• Overcoming the mindset "These are our customers

and we do every thing to take care of them" with balancing their needs with our ability to do profitable work with on-time delivery.

• Stop people finger pointing by getting them together to resolve issues when an incident occurs and consistently stress that this is not acceptable

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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

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Page 21: Aligning Expectation in a  Business Transition.V1

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

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Page 22: Aligning Expectation in a  Business Transition.V1

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

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Page 23: Aligning Expectation in a  Business Transition.V1

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

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Page 24: Aligning Expectation in a  Business Transition.V1

Cross HairsAlignment Issues identified

Q1

Q4

Q3 Q2

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Page 25: Aligning Expectation in a  Business Transition.V1

Independence Cross Hairs

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Page 26: Aligning Expectation in a  Business Transition.V1

Achieving Successful Transition

Right Responses

Right Focus Ri

ght P

eopl

e

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AlEx™Priorities Content

Over Channeling

Under Channeling

Managers

Direct Reports

Inside Groups

Between Groups

What’s your Line of Sight?

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Page 28: Aligning Expectation in a  Business Transition.V1

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

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Page 29: Aligning Expectation in a  Business Transition.V1

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%

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Page 30: Aligning Expectation in a  Business Transition.V1

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%

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Page 31: Aligning Expectation in a  Business Transition.V1

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%

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Page 32: Aligning Expectation in a  Business Transition.V1

Imp

rovin

g

Alig

nm

en

t

Traditional

Getting Aligned – Weekly!Requirements

WeeklyAlignmentMeetings Reduce Costs

& Increase Revenue

Time

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Page 33: Aligning Expectation in a  Business Transition.V1

The Alignment Process

AlEx™ Easy Entry

AlEx™ Cross Hairs

AlEx™ Priority 5

AlEx™ Cross Hairs

New Expectations

AgreeEvidence

RateCoach

Rate Again

Hold Receivers Accountable

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Page 34: Aligning Expectation in a  Business Transition.V1

CoachingStrategically

Seven Alignment Challenges

EmbeddingChange

RemovingDistractions

Rewarding Change

AligningExpectations

OperationalExcellence

Replicating Success

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Page 35: Aligning Expectation in a  Business Transition.V1

Thank you

The Line of Sight to Success

AlEx™

Copyright PDS Group 2009 All Rights Reserved