Leading to a Higher Level

John Rose, VP

Irwin Siegel Agency, Inc.

www.siegelagency.com

800-622-8272

2009 NCE Summer Leadership

Nashville, TN - August 6-8, 2009

What is Organizational Effectiveness?

Organizational Effectiveness can be defined as achieving the Mission and Strategic Goals in a sustainable, efficient and measurable manner and is largely dependent upon Leadership, Organizational Culture and Internal Control Processes and a persistent rededication to results and performance .

• How does Leadership ensure Organizational Effectiveness?

• What are some indicators of Organizational Effectiveness?

• What role does risk management play in Organizational Effectiveness?

• What keeps leaders striving for Organizational Effectiveness?

Defining Organizational Effectiveness Four Academic Models

1. Traditional Model

• Production – output flow

• Commitment – degree of organization attachment

• Leadership – degree of influence/personal ability

• Interpersonal Conflict – degree of perceived misunderstandings

2. Developed Primarily as a Tool for Mgmt Considerations

• Uses organizational survival and maximization of returns as key

variables along with self-regulation to monitor sensitivity to state

change, contribution to constituents, transformation, promotion of

advantageous transactions, flexibility, adaptability and efficiency

Defining Organizational Effectiveness – con’t

3. Six Indicators of Organizational Effectiveness

• Management Experience

• Political Impact

• Internal Communication

• Organizational Structure

• Volunteer Involvement

• Board Involvement

Defining Organizational Effectiveness – con’t

4. The Competing Value Framework

•Human Relations – stresses participation, discussions, openness, ways

to improve morale and achieve commitment

•Open Systems – insight, innovation and adaptation as a path toward

external recognition, support and growth

•Rational Goals – seeks efficiency and productivity through clear

direction and goals

•Internal Process – see internal processes as measurement,

documentation and information management as methods to achieve

stability, control and intensity

This model has been tested and validated more than the other

three models in Academic Literature

Why Businesses Fail?

•Poor Business Planning

•Poor Financial Planning

•Poor Marketing (Fund Development)

•Poor Management (Leadership)

Source: Study by US Bank

“Leadership is the most important single factor in determining business

success or failure in our competitive, turbulent, fast-moving economy” - Brian Tracy – business consultant

Leadership: The Meaning of the Circle

Five Elements of Effective Leaders according to Kouzes & Posner

• Model the way – Show by Example

• Inspire – Shared Vision

• Challenge the Process

• Enable Others to Act

• Encourage the Heart – Passion - Recognition

The Five Shapes

• Square / Box: loves rules, manuals, policies

• Rectangle: introspective, in-between, uncertain

• Triangle: left-brained, strong, decides quickly, hierarchy

• Circle: harmony, sensitive, need to be needed

• Squiggle: creative, innovative, idea person, hates rules

Legacy of a Leader

•What keeps you going?

•What are you leaving behind?

•Did you see your vision

accomplished?

“Good business leaders create a

vision, articulate the vision,

passionately own the vision and

relentlessly drive it to completion”

Jack Welsh

Chameleon Principles

1. Have a set of overarching principles

and philosophies.

2. Use SMART goals throughout

(Specific, Measurable, Achievable,

Relevant, Timebound)

3. Measure productivity/efficiency at

several levels

4. Create leaders at many levels, not just

a few

5. Create a climate of pride

6. Create a climate of professionalism

7. Educate, educate, educate

8. Communicate, communicate,

communicate

9. Create organizational discipline and loyalty

10. Provide everyone a stake in the outcome

11. Integrate authority and responsibility- not

separate them. Know the difference

12. Set up internal competition and

comparison where feasible

13. Make it better

14. Make it happen

15. Make it last

Pinnacle of Performance L

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Compliance

Organizational Culture

Performance Outcomes

Quality

Mtn.

Incident

s

Incident

s

What is your Organizational Culture?

• Four Types - according to Roger Harrison

• Edgar H. Schein

http://web.mit.edu/scheine/www/home.html

http://www.amazon.com/Diagnosing-Organizational-Culture-Instrument-Harrison/dp/0883903164

“Diagnosing Organizational Culture”

1. Members of the organization are expected to give first priority to?

a. meeting the needs and demands of their supervisors and other high-level people in the organization.

b. carrying out the duties of their own jobs; staying within the policies and procedures related to their jobs

c. meeting the challenges of the risk, finding a better way to do things

d. cooperating with the people with whom they work, to solve work and personal problems

2. Decision-making processes are characterized by?

a. directives, orders, and instructions that come down from higher levels.

b. the adherence to formal channels and reliance on polices and procedures for making decisions.

c. decisions being made close to the point of action, by the people on the spot.

d. the use of consensus decision-making methods to gain acceptance and support decisions

By Roger Harrison

Factors that Influence Behavior

Trust

Acquisition

Norms

Perception

Symbols

Autonomy

Leadership

Stories

Turnover Crisis

Recognition

Hiring

Tangible

Incentives

Safety

CULTURE

Communication

Job

Satisfaction

Fear

Credibility Caring

Commitment Peers

Culture

ORGANIZATIONAL CULTURE…….

Culture is characterized as consisting of three

levels. Schein (88)

Behaviors & Artifacts

• The observable level-physical layout of work

spaces, dress code- shows what the group is doing,

but not why.

Values

•Values underlie and to a large extent determine

behavior, but not directly observable. People will

attribute this behavior to stated values.

Assumptions & Beliefs

• Schein contends that underlying assumptions grow

out of values, until they become taken for granted

and drop out of awareness. People may be

unaware of or unable to articulate the beliefs and

assumptions forming their deepest level of culture.

Performance Culture A shared set of values and foundational pillars with a

commitment to Quality Management Practices

• Performance Management – the activity of tracking Performance and

identifying opportunities for improvement in regards to Mission & Objectives

• Performance Management Demonstrates:

- You know what you are aiming for

- You know what you have to do to meet objectives

- You know how to measure progress (Performance Management System)

- You know that it requires a TEAM effort

• Performance Management Leads to:

- Customer Satisfaction

- Organizational Excellence: ‘Mission Achieved’

- Workforce Excellence: Engagement & Satisfaction

Performance Culture

Monitor

*Dashboard

*Duties

-Reputation-

Performance Measures

Compliance

Pillars

Customer – Workforce – Community - Organizational Practices

Committee

Board

Community

State

Agency

What do Employee’s Want?

1. Work with people who treat me with respect.

2. Interesting work.

3. Recognition for work well done.

4. Chance to develop skills.

5. Work with people who listen if I have ideas about how to do

things better.

6. A chance to think for myself rather than carry out instructions.

7. Seeing the end results of my work.

8. Working for efficient managers.

9. A job that is not too easy.

10. Feeling well informed about what is going on.

Source: The Public Agenda Foundation

Leadership

“ If your actions inspire others to dream more,

learn more, do more and become more, you are

a leader.”

John Quincy Adams

DSP…

Your Community Ambassadors

Defining Risk Management

• Risk Management: RIMS defines ERM as the culture, processes

and tools to identify strategic opportunities and reduce uncertainty.

ERM is a comprehensive view from both operational and strategic

perspectives and is a process that supports the reduction of

uncertainty, operational efficiency, and provides the exploration of

opportunities as well as increased stakeholder value.

www.rims.org

Risk Potential Categories

Compliance

• Licensure

• OSHA

• FLSA

• ERISA

• Corporate

Compliance

• Insurance

• Accreditation

• Federal, State,

Local…

Operational

• Fraud-Theft - Fiscal

• Employment Practices

• Policies & Procedures

• Physical Plant

• Administrative

• ISP, IEP, IHP, IPUP

• Disaster/Crisis Mgmt.

• Technology

• Auto

• Assets: People, Property,

Reputation, Income

• And So On…

Environmental

• Economy

• Natural Disasters

• Competition

• Opportunity

Mandated Internal Process

Crystal Ball

Why Develop Internal Fiscal Controls?

• GAO – ‘High Risk List’

• Qui Tam – False Claim Act

• Operational Efficiency/Effectiveness

• Reputation

• Stakeholder Confidence

Financial Risk

• Compliance

• Operational

• Funding

• Mandats sans Coverture

Internal Controls Example: Accounts Payable

Control Objective for accounts

payable function might be,

“payments are only made to

authorized vendor for goods

and services received”

Control Procedure designed to

achieve this objective is, “the

accounts payable system compares

the purchase order, receiving

record and vendor invoice prior to

authorizing payment”.

Control Objective Control Procedure

Limitations

Internal Controls not Absolute

• Individual Judgment

• Human Error

•Management Override

JR’s Top 10 Risk Focus Areas

1. Auto

2. Personnel/Culture

3. Incident Management

4. ISP

5. Corporate Compliance

6. Medical Emergency Protocol

7. Governance/Fiscal

8. Crisis Management

9. Contracts/Contractors

10. Disaster Planning

•Succession Planning

•Strategic Planning

•Support Planning

•Systems Planning

Stress

1. Jam 39 marshmallows up your nose and try to sneeze

them out.

2. When someone says, “have a nice day,” tell them you

have other plans.

3. Make a list of things that you have already done.

4. Go shopping, buy everything, sweat in it, return it the

next day.

5. Bill your doctor for the time spent in his waiting room.

6. Write a short story using alphabet soup.

7. Make up a language and ask people for directions.

8. Pay your electric bill in pennies.

9. Use your MasterCard to pay your Visa.

10.Tattoo ‘out to lunch’ on your forehead.

Missionomics

Mission

“Missionomics is the application of scarce resources and

appropriate human behavior in relationship between

organizational processes and organizational purpose, in an

attempt to close the gap in ‘positive’ and ‘normative’

economics”. (Positive is about ‘what is’ and negative is

about ‘what ought to be). John Rose

The Year 2020

• Chelsea Clinton is President (US Population tops 400,000.000)

• Waiting list is 767,392

• US average DSP hourly rate: Unchanged

• LON is determined by a Lottery

• HCBS has over 2000 Waivers

• Global Warming has doubled energy consumption

• Braddock reports on technology changes:

* DSP is replaced by BSP

* EE Homes on the rise – funded by EE Waivers

• Average age of exec is 45 and average age of DSP is 61

• Associations continue to drop the “R” word and add “ID” except VOR

9/06

Bridging the Gap

Culture

Leadership ‘Bridge Builders’

Internal

Controls OE/QO

1.Vision

2.Mission

3.Strategy

?

Influencers/Perceptions

Leadership

“ Some are born great, some achieve greatness, and

some have greatness thrust upon them”

Shakespeare - 12th Night

Thank you!!!