Harry Debes New Reality

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Values, Vision, Rocks

Harry DebesDecember 2007

Old Reality / New RealityHow Good Leader/Managers Adapt

Harry DebesFebruary 2010

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I met the CEO of Garret Manufacturing when I was 17

Born or Made ?

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Old Reality 1950’s – 1980’s

The Industrial revolution changed production from small workshops to large scale manufacturing

Owners of the factory often served as managers

They viewed the organization as a machine and the employees as any other tool.

The theory of “Scientific Management" focused on improving efficiency.

Theory “X” management style

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Scientific Management, Command & Control Leadership

Specialization

Clear separation between managerial functions and employee activities

Strict rules and procedures

A strong correlation between income and output

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For Employees Joined a company and stayed for life

Worked your way up the chain of command

Children worked in the same company

Paper, typewriters, memos, letters, filing cabinets, secretaries, suits and ties

Gold watch when you retired after 40 years

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New Reality 1990’s – Present

Technology – Computers, Internet ,

Communication, Digitization, Virtualization

Globalization, Multinational Companies, Shared Standards, everything is Integrated

Knowledge workers – newfound power of individuals to collaborate and compete

Work is being done where it is most efficient offshore, near-shore or at home

Hierarchies are being flattened

Everything is Faster

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Changes in working environment

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Office Space is being downsized

Space reduced by more than 60%

Mobile workers

Virtual teams

Very few permanent offices or even desks

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For Employees

Mobile devices, telecommuting, virtual & matrixed teams Family, lifestyle and health are major considerations Company loyalty is limited (I could get out-sourced) Work where Ethical and Social responsibility are important Expectation of training and skills development High expectations of advancement and rewards Want a voice in decision making Plan to retire early

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Accepting change is hard

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Charles Darwin on Change

It is not the strongest of the species that survive, nor the most intelligent …… but the one most responsive to change.

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How the Leader/Manager Adapts

1. Establish Trust through Core Values and Integrity

2. Focus

3. Embrace Diversity

4. Simplify

5. Maintain a Positive Attitude

6. Communicate

7. Own the Results

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1. Establish Trust

High

Integrity

Who you are rings so loudly in my ears that I cannot hear what you are saying.

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Core Values? What Core Values ?

WHAT you do is importantShow me the Money Greed is Good

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The New Importance of Core Values

WHAT you do is as important as HOW you do it

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How do 4000 people in 35 countries make the right decisions ?

Decisions are easy when Values are clear.

The Importance of Core Values

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18-month inclusive process to define Core Values

Clear Core Values & Behavioral Expectations

Passion and Commitment

Integrity and honesty in all of our relationships

Teamwork

Personal responsibility for results

A conviction that Simpler is Better

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Imbed the Core Values

Core Values

Living the Values must become a hiring / performance / promotion criteria

Measuring adherence become part of the performance review process

Celebrate and reward adherence, do not tolerate non-compliance

LOTS of communication

– Use symbols, Icons, metaphors, celebrate people who live the values, and many illustrations to communicate the mission, vision and values

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Answer the “Where are we going” question

Many companies are trying to do too much.

Chasing every opportunity, even when it is not right

2. FOCUS

Basic Problem: Lack of Focus

Poor Decision MakingUnhappy CustomersDissatisfied Employees

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Lawson’s Vision and Focus

To be the global ERP leader in each of

our target markets.

We will achieve this Vision by:

1. Focusing our development and go-to-market efforts in our target markets

2. Offering our customers a superior experience

3. Achieving world-class performance in each of our functional disciplines

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Lawson’s Focused Strategy

21

SERVICE INDUSTRIES

EQUIPMENTSERVICE &

RENTALHEALTHCARE

PUBLICSECTOR

FASHIONFOOD &

BEVERAGE

Growth Markets

MANUFACTURING& DISTRIBUTION

INDUSTRIES

STRATEGIC HUMAN CAPITAL MANAGEMENT

General Industries

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3. Embrace Diversity

RaceAgeMinority

Baby BoomersGeneration XMillennials

Respect and become educated about the differences

Rally around your company Core Values

SwedesFrenchGermansDutch

JapaneseChineseIndiansFilipinos

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4. Maintain a Positive Attitude

We cannot change the past.

We cannot change the fact that some people act in a certain way.

We cannot change the inevitable.

The only thing we can do is play on the one string we have, and that is our attitude.

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Maintain a Positive Attitude

Everyone looks to the leader for assurance every day

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Maintain a Positive Attitude

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Basic Finance 100 – 90 = 10

Advanced Finance 100 – 80 = 20

Bad Finance 100 – 105 = going out of business

= no future

= career is over

5. Simplify (the Numbers)

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Basic Financial Questions and Answers

Simplify (some concepts)

QUESTION: How much of a salary increase can we expect this year?

ANSWER: Salary increase = (revenue or productivity increase) / 2

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Basic Financial Questions and Answers

Simplify (some concepts)

QUESTION: I need a new car, a new kitchen, a new TV, a second car, a two week vacation in Mexico, new golf clubs, some cool new clothes. My problem is that I can only afford to do one of these things. What should I do?

ANSWER: Do only one of these things.

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6. Communicate

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6. Communicate

Written - memos, manuals, Newsletters, e-mail, blogs

Verbal - phone, audio-conferences

Face to Face - meetings, web-conferences

Explain – what, why, who, when

Enable Feedback – Engagement Surveys, 360 Feedback

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6. Communicate – in new ways

Cicso Virtually Eliminates Internal Travel

11 February 2009 –

…internal travel and meetings are redirected to Cisco's various virtual meeting technologies …including TelePresence, WebEx and standard audio-video conferencing.

The efforts have slashed Cisco's travel expenses from a "run rate of $750 million to the current run rate of approximately $350 million," CEO John Chambers said last week during a conference call with analysts.

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For any initiative to take hold, leaders must be involved and act as a role model. This involvement cannot be delegated.

Eg. Goal setting:

Advisor sets high goals and expects people to deliver

Owner/Leader/Manager sets high goals, shows people how to execute, inspects progress, personally helps to achieve the objective and owns the results.

7. Own the Results

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Leadership traits and skills can be developed

Conclusion

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Adapting to the Next Reality

1. Establish Trust2. Focus3. Embrace Diversity4. Simplify5. Maintain a Positive Attitude6. Communicate7. Own the Results

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Old Reality -- Summary Management style

– Top-down

Authority

– Centralized

Decisions

– Made at top of the hierarchy

Communication pattern

– Top-down – from the center outwards

– Very little bottom-up communication

Communication content

– Mainly instructions

Critical issue: How to tell employees what to do efficiently and consistently

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New Reality - Summary

Management style

– Collegial, educational

Authority

– Pushed downward and outward

Decisions

– Made close to the customer

Communication pattern

– Top-down, bottom-up and sideways

– Much more emphasis on listening skills

Communication content

– Mainly values and data

Critical issue: How to instill common values so employees will know what to do and how to do it

Harry Debes New Reality

Business

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