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The role of realigning stakeholders and Key players that enable a business owner to transition out of their business
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Reducing Business Dependence on the Owner
The Line of Sight to Transition
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)
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%
The elastic band of dependence
Organization
Owner
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
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?
Copyright PDS Group 2009 All Rights Reserved
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
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
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?”
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.
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
Four Blocker Problem
Copyright PDS Group 2009 All Rights Reserved
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)
Copyright PDS Group 2009 All Rights Reserved
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 . . . .
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 . . . .
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
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
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
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
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
Copyright PDS Group 2009 All Rights Reserved
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
Copyright PDS Group 2009 All Rights Reserved
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
Copyright PDS Group 2009 All Rights Reserved
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
Copyright PDS Group 2009 All Rights Reserved
Cross HairsAlignment Issues identified
Q1
Q4
Q3 Q2
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Independence Cross Hairs
Copyright PDS Group 2009 All Rights Reserved
Achieving Successful Transition
Right Responses
Right Focus Ri
ght P
eopl
e
AlEx™Priorities Content
Over Channeling
Under Channeling
Managers
Direct Reports
Inside Groups
Between Groups
What’s your Line of Sight?
Copyright PDS Group 2009 All Rights Reserved
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
Copyright PDS Group 2009 All Rights Reserved
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%
Copyright PDS Group 2009 All Rights Reserved
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%
Copyright PDS Group 2009 All Rights Reserved
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%
Copyright PDS Group 2009 All Rights Reserved
Imp
rovin
g
Alig
nm
en
t
Traditional
Getting Aligned – Weekly!Requirements
WeeklyAlignmentMeetings Reduce Costs
& Increase Revenue
Time
40Copyright PDS Group 2009 All Rights Reserved
The Alignment Process
AlEx™ Easy Entry
AlEx™ Cross Hairs
AlEx™ Priority 5
AlEx™ Cross Hairs
New Expectations
AgreeEvidence
RateCoach
Rate Again
Hold Receivers Accountable
Copyright PDS Group 2009 All Rights Reserved
CoachingStrategically
Seven Alignment Challenges
EmbeddingChange
RemovingDistractions
Rewarding Change
AligningExpectations
OperationalExcellence
Replicating Success
39Copyright PDS Group 2009 All Rights Reserved
Thank you
The Line of Sight to Success
AlEx™
Copyright PDS Group 2009 All Rights Reserved
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