A MANAGEMENT/ LEADERSHIP SYSTEM · Gerard Egan. Models A, B, and C Are Communication and...

A MANAGEMENT/ LEADERSHIP SYSTEM

Gerard Egan

PROFESSIONALIZINGMANAGEMENT

TAKING MANAGEMENT SERIOUSLY

Management is Currently a Job.

It Needs to Become a Profession.

CHOOSING MANAGERS

Across the World, the Average Manager is Chosen For That Role Because He or

She Is Good at Something Else.

TRAINING MANAGERSOnce "Ordained" a Manager,

the Average Manager Receives Little or No Training

in Specifically Managerial Competency.

CREATING ABUSINESS-BASED

MANAGEMENTSYSTEM

MANAGEMENT SYSTEMEnterprises Need a Shared Management System That

Provides Managers With the Frameworks, Models,

Methods, & Skills Needed to Add Value.

DEFAULT MANAGEMENT SYSTEM

If There Is No Explicit Management System in Place,

There is Still aDEFAULT SYSTEM

or Set of Systems That Add Value or Cost or A Mixture of the Two

to the Business.

A COMPREHENSIVEBUSINESS-BASED

MANAGEMENTSYSTEM

THE FOUR FRAMEWORKS OF THE SYSTEM

• A. Designing, Running, & Taking the Pulse of the Enterprise

• B. Initiating & Managing Innovation and Change

• C. Managing the Shadow Side of the Business

• D. Communicating: Value-Driven Dialogue

NO FORMULAModels A, B, C, D Provide

Principles, Not Formulas.Each Enterprise Must Use the

Principles to Create Its Own Set of Formulas Which Must Be

Integrated Into the Management System Kept Evergreen.

Gerard Egan

MODEL A:DESIGNING, RUNNING, & TAKING THE

PULSE OF THE ENTERPRISE

MODEL-A FUNCTIONS

• Design Business Realities

• Run, Manage, Lead

• Take the Pulse

WHAT DO WE WANT?Creation of

Wealth

DynamicBalance

DelightedCustomers

SuccessfulEmployees

MODEL A THE MASTER TASKS OF MANAGEMENT

1. STRATEGY

Delighted Customers Successful Employees

Creation Of Wealth

3. STRUCTURE

6. LEADERSHIP

4. HUMAN RESOURCES

5. MANAGEMENT

2.OPERATIONS

MODEL-A APPLICATIONS

• The Entire Company• Every Division• Every Unit• Every Function• Every Project • Every Program

STRATEGYFormulate a Strategy to

Provide Focus and Direction for the Entire Enterprise, for

Every Division, for Every Unit, for Every Program, and

Every Activity

STRATEGY

MISSION VISION VALUES

MARKETSMAJOR

PRODUCTS &SERVICES

CORECOMPETENCIES

ENVIRONMENT STAKEHOLDERSCRITICAL

RESOURCES

FOCUS/DIRECTION

MODEL B:INNOVATION & CHANGE

Gerard Egan

• What are the problems, unused opportunities, issues?

• What do we want (instead of what we have)?

• What do we need to do to get what we want?

• How do we turn talk into action, leading to valued outcomes?

INITIATING CHANGEFour Critical Questions

MANAGING INNOVATION & CHANGEI

CURRENTII

PREFFEREDIII

STRATEGIES

HOW DO WE IMPLEMENT OUR PLANS?

WHAT'S THE

PRESENT STATE OF AFFAIRS?

HOW DO WE GET WHAT

WE NEED OR

WANT?

WHAT DO WE

NEED/WANT INSTEAD OF

WHAT WE’VE GOT?

ICURRENTSCENARIO

IIPREFFEREDSCENARIO

IIIACTION

STRATEGIESPOSSIBILITIESSTORY

BLIND SPOTS

LEVERAGE

CHANGEAGENDA

COMMITMENT

POSSIBLEACTIONS

BEST FIT

PLAN

ACTION LEADING TO VALUED OUTCOMES

MANAGING INNOVATION & CHANGE

FLEXIBILITYSeldom, if ever, do change agents march through the

model from beginning to end.Rather they move back and

forth among both stages and steps, plowing learnings from

one area into another.

MODEL DTHE POWER OF DIALOGUE

Gerard Egan

Models A, B, and C Are Communication and

Relationship Intensive.Effective Managers are Effective Communicators and Relationship

Builders.

THE COMMUNICATIONMANDATE

1. Turn Taking

2. Connecting

3. Mutual Influencing

4. Co-Creating Outcomes

FOUR REQUIREMENTS FOR DIALOGUE

FOUR KINDS OF TELLER DISCOURSE

1. Stories

2. Points of View

3. Decisions

4. Intentions

MANAGING THE

OF CHANGESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDE

SHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDESHADOW SIDE

Shadow SideShadow SideShadow SideShadow SideFactorsSTUMBLING BLOCKS TO CHANGE

THE MISSING PARTS OF PLANNED CHANGE

HOW CHANGE "LOSES THE NAME OF ACTION"

STUMBLING BLOCKS

DENIALNO CULTURE OF CHANGENO SENSE OF URGENCYNO SHARED MODEL OF CHANGEFADS:THE SEARCH FOR MAGICLACK OF READINESSCHANGE AS DISCRETIONARYTHE OKAVANGO-KALIHARI

READINESS FOR RE-ENGINEERINGEMPLOYEES TRUST THEIR MANAGERS

MANY WORKERS MAKE THEIR OWN DECISIONS

EMPLOYEES ARE PAID FOR PERFORMANCE

PEOPLE OPERATE WELL IN TEAMS

PEOPLE SHARE INFORMATION FREELY

EMPLOYEES ARE WILLING TO TAKE RISKS

THE MISSING PARTS OF PLANNED CHANGEMESSINESS - FROM MESSY TO MESSIER

PERSONAL STYLES AND INDIVIDUAL IDIOSYNCRASIES

SOCIAL SYSTEM DISRUPTION

INTERNAL POLITICS

CHANGE AS COUNTER-CULTURAL

HOW CHANGE "LOSES THE NAME OF ACTION"

OVERLOAD

THE MUNDANE

INERTIA

ENTROPY

NO RELEARNING PROCESS

LEADERSHIP

"Leadership Is One Of Those Sponge Words So

Soaked With Meaning That Interpretations Can Be

Squeezed Out Of It By The Bucketful."

P. GHEMAWAT

Define What Leadership Means in This Company and Develop a Results-

Based Leadership System in Which All

Can Participate

LEADERSHIP SYSTEM

NATURE

Headship and Leadership Are Not The Same Thing. Not

Everyone Who Heads a Company, Unit, Or Function Is a Leader. Headship Is About Position. Leadership Is About

Results.

LEADERSHIP vs HEADSHIP

"Jane and John are excellent leaders. They consistently,

and I emphasize consistently, meet targets. You can count

on them for standard results all the time."

THE ESSENCE OF LEADERSHIP

The Achievement of

Results

Beyond the Ordinary.

RESULTS ORIENTATIONNOT:

• Personality Traits• Activities

RATHER:

• Output• Outcomes• Achievements• Impact

CENTRAL LEADERSHIP FACTORS

Business-EnhancingChange

Through Creative & Committed

Collaborators

Collaborators Situation

THE LEADERSHIPSYSTEM

Leader

ResultsBeyond The

Ordinary

A LEADERSHIP PROCESS

Develop a Leadership Process, That Is, A

Flexible Way of "Doing” Leadership, That Can Be Learned and Practiced

Throughout the Enterprise.

LEADERSHIP PROCESS

Leaders Are Not Super-Heroes

Who Do Everything Themselves. Rather They

Play a Critical Role In Making Sure That These

Five Things Happen.

CRITICAL ROLE

1. CREATIVE IDEASStimulate a steadyflow of business-enhancing ideas.

2. SCREENINGHelp evaluate &

pick the bestideas for

implementation.

Embed the best ideasin projects & programsthat move the business

forward.

3. INNOVATION4. SELLINGHelp team members

buy into and owninnovative projects

and programs.

5. CLIMATECreate a work

climate thatsupports

innovative efforts

6. PERSISTENCEMove viable projects

forward until theyadd value.

RESULTSBEYOND

THEORDINARY

1. CREATIVE IDEASStimulate a steady flow ofbusiness-enhancing ideas.

2. SCREENINGHelp evaluate &

pick the bestideas for

implementation.

Embed the best ideas in3. INNOVATION

projects that move thebusiness forward.

4. SELLINGGet team members to buy

into and own the innovativeproject.

5. CLIMATECreate a workclimate that

supportsinnovative efforts.

6. PERSISTENCEMove viable projects forwarduntilthey actually add value.

RESULTSBEYOND THE

ORDINARY

Leaders Play a Key Role in Making Sure That There Is a Steady

Stream of Business-Enhancing Creative Ideas. While They

Provide Some of These Ideas, They Find Ways to Stimulate the

Organization to Do So. They Are Catalysts.

1. CREATIVE IDEAS

1. CREATIVE IDEASStimulate a steady flow ofbusiness-enhancing ideas.

2. SCREENINGHelp evaluate &

pick the bestideas for

implementation.

Embed the best ideas in3. INNOVATION

projects that move thebusiness forward.

4. SELLINGGet team members to buy

into and own the innovativeproject.

5. CLIMATECreate a workclimate that

supportsinnovative efforts.

6. PERSISTENCEMove viable projects forwarduntilthey actually add value.

RESULTSBEYOND THE

ORDINARY

Leaders Play a Key Role in Making Sure That The Best Business-Enhancing Ideas

Are Chosen for Development.

2. SCREENING

3M, a Company That Lives on Innovation, Has Institutionalized the Screening Process.

All Its New Products Run This Gauntlet.

1. CREATIVE IDEASStimulate a steady flow ofbusiness-enhancing ideas.

2. SCREENINGHelp evaluate &

pick the bestideas for

implementation.

Embed the best ideas in3. INNOVATION

projects that move thebusiness forward.

4. SELLINGGet team members to buy

into and own the innovativeproject.

5. CLIMATECreate a workclimate that

supportsinnovative efforts.

6. PERSISTENCEMove viable projects forwarduntilthey actually add value.

RESULTSBEYOND THE

ORDINARY

Leaders Play a Key Role in Seeing to It That Creative Ideas

Are Turned Into Innovative, Business-Enhancing Projects.

While They May Initiate Some of These Projects Themselves, They

Stimulate Others to Do So.

3. INNOVATION

Leaders Understand the Difference Between

Creativity and Innovation. In the End They Are

Practical.They Play a Key Role in

Getting Business-Enhancing Things Done.

1. CREATIVE IDEASStimulate a steady flow ofbusiness-enhancing ideas.

2. SCREENINGHelp evaluate &

pick the bestideas for

implementation.

Embed the best ideas in3. INNOVATION

projects that move thebusiness forward.

4. SELLINGGet team members to buy

into and own the innovativeproject.

5. CLIMATECreate a workclimate that

supportsinnovative efforts.

6. PERSISTENCEMove viable projects forwarduntilthey actually add value.

RESULTSBEYOND THE

ORDINARY

Leaders Play a Key Role in Making Sure That Key

Stakeholders and Players Buy Into Innovative, Business-Enhancing Projects. They

Both Sell the Projects Themselves and Get Others to

Do so.

4. GETTING BUY-IN

LEVELS OF INVOLVEMENT

• Ownership• Commitment• Buy In• Compliance• Obstruction

1. CREATIVE IDEASStimulate a steady flow ofbusiness-enhancing ideas.

2. SCREENINGHelp evaluate &

pick the bestideas for

implementation.

Embed the best ideas in3. INNOVATION

projects that move thebusiness forward.

4. SELLINGGet team members to buy

into and own the innovativeproject.

5. CLIMATECreate a workclimate that

supportsinnovative efforts.

6. PERSISTENCEMove viable projects forwarduntilthey actually add value.

RESULTSBEYOND THE

ORDINARY

Leaders Play a Key Role in Creating an Environment That

Encourages Creativity & Innovation. They Nurture

Innovative Projects and Get Others to Do So. They Play a

Role in Climate Making.

5. CREATING THE CLIMATE

A CLIMATE OF INNOVATION

"All You Really Have to Do in [Leadership] Is Provide an

Environment. It's Almost Alive, Always Ebbing and Flowing"

A 3M Executive

A CLIMATE OF INNOVATION

"I Manage an Environment. An Environment to Free Up Your

Imagination - That's The Whole Idea."

A 3M Executive

1. CREATIVE IDEASStimulate a steady flow ofbusiness-enhancing ideas.

2. SCREENINGHelp evaluate &

pick the bestideas for

implementation.

Embed the best ideas in3. INNOVATION

projects that move thebusiness forward.

4. SELLINGGet team members to buy

into and own the innovativeproject.

5. CLIMATECreate a workclimate that

supportsinnovative efforts.

6. PERSISTENCEMove viable projects forwarduntil they actually add value.

RESULTSBEYOND THE

ORDINARY

Leaders Don't Give Up. Failure Is Not a Word In Their

Vocabulary. They Drive and Get Others to Drive Projects to

Successful Completion. They Know That Leadership Is About

Business-Enhancing Results.

6. PERSISTENCE

Leaders Talk About "Going Back to the Drawing Board,” "Regrouping,” "Going At the

Project From a Different Angle," and Phrases Like That

Rather Than Using Failure Language.

THE LEADER'S ROLE

• Developing Visions• Choosing Promising Possibilities• Formulating Vision-Based Agendas• Rallying People Around Agendas• Stimulating Agenda-Related Learning• Persisting to Completion Of Agenda

Leaders play a key role in:

LEVELS &AREAS OF

LEADERSHIP

ORGANIZATION-WIDE LEADERSHIP

• Executive• Managerial• Supervisory• Professional/Technical• Operational

Strategy

Management

Supervision

Change

NewVentures

IncrementalImprovement

Crises

PositivePolitics

Environment

ResultsBeyond theOrdinary

LeadershipAreas

LEADERSHIP DEVELOPMENT

"Are Leaders Born Or Made?"

The Answer Is:Yes

Basic Abilities and Skills CanBe Transformed Into theStuff of Leadership. It Is

Mainly Self-Transformation.

The Answer Is:Yes

Basic Abilities and Skills CanBe Transformed Into theStuff of Leadership. It Is

Mainly Self-Transformation.

LEADERSHIPAND CULTURE

Leaders Must BothRespect and Exemplify

the Best in the Enterprise's Tradition While Still Leading It Beyond Itself Into a Better and

More Dynamic Future.

THE LEADER'S DILEMMA

Leaders earn“idiosyncrasy credits”

by respecting theorganizations traditions.They then "spend" these

credits on innovations thatchallenge the culture.

RESOLVING THE DILEMMA

"YOU LEAD,LEAD,FOLLOW, OR

YOU GET OUTOF THE WAY."

Lee Iaccoca