High Performance Management

23 Sep 2014 © E Goetsch 2000 - 2014 1 | 42

Contemporary Management Skills Development

(for Senior Managers)A structured approach for leading and managing

high-performance teams

22 September 2014Randburg Towers Hotel, Johannesburg

South Africa

Errol Goetsch+27 78 573 5046

[email protected] | www.xe4.org

mailto:[email protected]

23 Sep 2014 © E Goetsch 2000 - 2014 2 | 42

Proposal Contract Budget Work plan Capacity Launch

Monitoring Reporting Expenses Delivery Expectation Need

Test

23 Sep 2014 © E Goetsch 2000 - 2014 3 | 42

Leadership x Management = GovernanceCombining for peak performance

1. Strategic planning and management for outstanding organization performance

Structure Leaders appointing managers into the positions

2. Developing leadership core competencies for optimum outcomes

System Managers creating a paper trail of procedures for performance

3. Building high performance teams

Targets Leaders and Managers setting peak performance targets

Area ActivitySource of Peak Perfornance

People want to achieve the right results

and know how to

and know what the right results are.

Theme

23 Sep 2014 © E Goetsch 2000 - 2014 4 | 42

Governance | Leadership | ManagementDefinitions | Demand vs. Supply

Test of leadership

Team wants to follow you

Test of management Team knows how to

follow you

Its leaders and managers decide the Performance Supply

Leadership

Management

Every project / org. has a

Performance Demand

25%

100%(inspiration)

(direction)How Leadership and

Management combine with Governance

Leaders put a structure in place

Managers put a system in place

Together, leaders and managers put targets in place

50%

50%

23 Sep 2014 © E Goetsch 2000 - 2014 5 | 42

+ System

= 2 AssetsGoing concern

Governance | Leadership | ManagementIn operation

MarketingHR

OperationsPeople

Delivering Performance

ResearchProposalsContractsReports

Satisfaction Survey

OrganogramJob Descriptions

Performance Contracts Work Plans

ProcurementProduction

Risk ReportsProgress ReportsDelivery Schedule

FinanceMoneyBudgetsInvoicesReceipts

Statements

Reserves

BOARD

Sustainability Clear Audits

New income

Repeat income

+ 2 Activities

Board Charter Strategic PlansReportsAction PlansMinutes

Making Promises

+ Targets

= Structure

Leadership

Management

How Leadership and Management combine as Governance

People want to and know how to to and know what are right results

Untied income & Discounts

23 Sep 2014 © E Goetsch 2000 - 2014 6 | 42

= 2 Assets

Governance Problem 1: Structural FailureLeaders not appointing right Managers into right places

MarketingHR

OperationsPeople



Satisfaction Survey






Statements

BOARD

+ 2 Activities

Making Promises

+ Targets+ System

= Structure

People do not want to achieve right results

People want to achieve right results


23 Sep 2014 © E Goetsch 2000 - 2014 7 | 42

= 2 Assets

Governance Problem 2: Systems FailureManagers not putting the papertrail of performance into place

MarketingHR

OperationsPeople



Satisfaction Survey






Statements

BOARD

+ 2 Activities

Making Promises

Reserves

+ System+ Targets

= Structure

People do not know how to deliver right results

New income

Repeat income

People know how to deliver right results



23 Sep 2014 © E Goetsch 2000 - 2014 8 | 42

= 2 Assets

Governance Problem 3: Targets FailureLeaders and Managers not getting and setting the right targets

MarketingHR

OperationsPeople

FinanceMoney

BOARD

Sustainability

Going concern

+ 2 Activities

PerformancePromises

Actual Targets

Actual Targets

Actual Targets

Actual Targets

Reserves

+ System+ Targets

= Structure

New income

Repeat income


Satisfaction Survey





BudgetsInvoicesReceipts

Statements

People do not know what are right results

People know what are right results



23 Sep 2014 © E Goetsch 2000 - 2014 9 | 42

Premises

Power

Products

Policies

Progress

Proof

Pay of

1. “Cash Flow”

5. “Performance Contract KPI's”D

D

D

9. “Total Performance”

Performers

Payments

Payers

7. “Universal Management Equation”

Actual

Targets

100%= Date E

EE

E

x

10. “Sustainability”

R LD

T

Solution: Tools for Peak Performance10 Tools to guide structure, systems and targets

2. “Board Charter”

Q

Q

8. “Targets”

Benefits

Projects

Change

Donors

Agencies

Programmes

Intermediaries

6. “Capacity”

KPA5

KPA6

KPA4

KPA10

KPA3

KPA2

KPA1

KPA7

KPA8

KPA9

3. “Management Organogram”

3 System3 Structure

4 Targets

64 10321 7 8 9

4. “Job Description KPA's”

5

23 Sep 2014 © E Goetsch 2000 - 2014 10 | 42

= 2 Assets

Governance Problem 1: Structural FailureLeaders not appointing right Managers into right places

MarketingHR

OperationsPeople

Performance

FinanceMoney

BOARD

+ 2 Activities

Promises

+ System

= Structure

+ Targets

3 System3 Structure

4 Targets

23 Sep 2014 © E Goetsch 2000 - 2014 11 | 42

collect

design

decide

produce

deliver

change

$1

T

%

Set of products and services delivered

Delivery mechanism

Designer and Implementer of Solution

Development priority

Government / Donor Agency / Bank

Actual direct + indirect beneficiaries

Taxpayer / Shareholder / Benefactor care

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

Paper Trail

Tool 1: “Development Cash Flow”Context and role in sequence of events, its tasks and report

#

$3

$2

$

Budgets

Work Plans

Impact Assessment

Baseline

Progress reports

Mid-Term reports

Receipts

End-Term reports

Proposals

Delivery Schedule

Scope of Work

Feasibility Analysis

ContractGrants

3 System3 Structure

4 Targets

A

Oc

Op

Ip

Definition Role Measure

23 Sep 2014 © E Goetsch 2000 - 2014 12 | 42

Leadership(Boardroom)

Management(Head Office)

Targets

Score

Decide Strategy (Authority / Balance)

Design System(Responsibility / Skill)

Who (Where)

Do (Need)

Result

Deliver Operations(Directions / Energy) ActualsStaf

(Field Office)

Tool 2: “Board Charter”Set Leader | Manager roles for peak (on-target) performance

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D

23 Sep 2014 © E Goetsch 2000 - 2014 13 | 42

Tool 3: “Management Organogram”See the responsibility for peak (on-Targets) performance

Question Function

Why 1. Research & Development

Who with 2. Human Resources

What for 3. Marketing

What with 4. Finance

Where 5. Facilities

How 6. Procurement

What if 7. Risk

When 8. Production

What 9. Information | Audit | M&E

Who for 10. Strategy

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D


64 10321 7 8 95

23 Sep 2014 © E Goetsch 2000 - 2014 14 | 42

= 2 Assets

Governance Problem 2: Systemic FailureManagers not putting the papertrail of performance into place

MarketingHR

OperationsPeople

Performance


Satisfaction Survey






Statements

BOARD

+ 2 Activities

Promises

+ System

= Structure

+ Targets

3 System3 Structure

4 Targets


23 Sep 2014 © E Goetsch 2000 - 2014 15 | 42

Tool 4: “Job Descriptions | KPA's”The work that managers manage

Function KPA

1 R&D Solving problems

2 Marketing Attracting resources

3 Finance Matching in/out flows

4 HR Getting people working

5 Facilities Getting areas working

6 Procurement Getting inputs in

7 Production Getting outputs out

8 Risk Removing obstacles

9 Information Supporting decisions

10 Strategy Satisfying stakeholders

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D

KPA6

KPA4

KPA10

KPA3

KPA2

KPA1

KPA7

KPA8

KPA9

KPA4

KPA5

23 Sep 2014 © E Goetsch 2000 - 2014 16 | 42

Tool 5: “Performance Contracts | KPI's”The products that managers achieve

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D

Function KPI Q Q

1 R&D Policy

2 Marketing Payers

3 Finance Payments

4 HR Performers

5 Facilities Places

6 Procurement Power

7 Production Products

8 Risk Progress

9 Information Proof

10 Strategy Pay-ofs

KPI5

KPI6

KPI4

KPI10

KPI3

KPI2

KPI1

KPI7

KPI8

KPI9

23 Sep 2014 © E Goetsch 2000 - 2014 17 | 42

Payers Payments Products Proof Pay offPlacesPolicy People Power Progress

Marketing Finance Production StrategyM&EProcurementR&D HR Facilities Risk

What for What with When What Who ForWhereWhy Who with How What If

Tool 6: “Capacity Audit | Risk Analysis”Projects and organisations fail where tasks are unallocated

2 3 7 9 1051 4 6 8

Burden

3 System3 Structure

4 Targets

KPA's

KPI's

D

D

D

23 Sep 2014 © E Goetsch 2000 - 2014 18 | 42

= 2 Assets

Governance Problem 3: Targets failureLeaders and Managers not getting and setting the right targets

MarketingHR

OperationsPeople

FinanceMoney

BOARD

SustainabilityClear audits

Going concern

+ 2 Activities

PerformancePromises

+ System

= Structure

+ Targets

Actual Targets

Actual Targets

Actual Targets

Actual Targets

Reserves

New income

Repeat income

3 System3 Structure

4 Targets


23 Sep 2014 © E Goetsch 2000 - 2014 19 | 42

Planned (set Targets for:1. Input (cost)2. Work (time) 3. Output (benefits)4. Outcome (impact)

Actual

Target

Score

Tool 7: “Universal Management Equation”Use the UME to give purpose & confidence

Date

Defining a Project

Special purpose vehicle(unique outcome)

Term-limited(defined end-date)

Implemented(delivery from start / Target)

=

Governing a Project

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D

23 Sep 2014 © E Goetsch 2000 - 2014 20 | 42

Tool 8: “QQ Targets”Set objectives in terms of both Quantity and Quality

How much

How good

Performance Supply

Quantity

Quality

Performance Demand

25%

100%200 km

100 km

10 cm 20 cm

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D

23 Sep 2014 © E Goetsch 2000 - 2014 21 | 42

Satisfaction

Outcomes

Inputs

Households

Factor Market

Organisation

Work

Goods Market

Outputs

%

$

Time

#

Capacity

Performance

Benefits

COSTS: reduce

BENEFITS: increase

ProductionMarketingQuality / RiskInformationStrategyBudget

Organogram

Schedule

Tool 9: “Total Performance Management”The balanced scorecard for complete results

C/B Equity

Economy

Efficiency

Efectiveness

R&DFinance HRFacilitiesProcurement

Review

E X E L E N C EC L=X = e4

3 System3 Structure

4 Targets

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

23 Sep 2014 © E Goetsch 2000 - 2014 22 | 42

TRUST

Donor RetentionIncome

LOYALTYRESPECT

Untied Funding

Actual

Targetsx

Actual

Targetsx

Actual

Targets

Marketing OperationsHR Finance

Tool 10: “Sustainability”Is the balanced scorecard of total performance

DIGNITY

Reserves

Actual

Targetsx

R LD

T

=

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

23 Sep 2014 © E Goetsch 2000 - 2014 23 | 42





South AfricaQ U E S T I O N S?




23 Sep 2014 © E Goetsch 2000 - 2014 24 | 42

Governance | Leadership | ManagementDefinitions

Test of leadership

Team wants to follow you

Test of management Team knows how to

follow you

Performance Supply

Leadership

Management

Performance Demand

25%

100%(inspiration)

(direction)How Leadership and

Management combine with Governance

Leaders put structure in place

Managers put system in place

Together, leaders and managers put targets in place

50%

50%

Test of governancePeople want to achieve the right results and know how to and know what the right results are.

23 Sep 2014 © E Goetsch 2000 - 2014 25 | 42

+ System

= 2 AssetsGoing concern

Governance | Leadership | ManagementIn operation

MarketingHR

OperationsPeople



Satisfaction Survey






Statements

Reserves

BOARD

Sustainability Clear Audits

New income

Repeat income

+ 2 Activities

Strategic PlansReportsAction PlansMinutes

Making Promises

+ Targets

= Structure

Leadership

Management

How Leadership and Management combine as Governance

People want to and know how to to and know what are right results


23 Sep 2014 © E Goetsch 2000 - 2014 26 | 42

Premises

Power

Products

Policies

Progress

Proof

Pay of

1. “Cash Flow”

5. “Performance Contract” (KPI's)D

D

D

9. “Total Performance”

Performers

Payments

Payers

7. “Universal Management Equation”

Actual

Targets

100%= Date E

EE

E

x

10. “Sustainability”

R LD

T

Audit: Tests for Peak Performance10 Tools to guide structure, systems and targets

2. “Corporate Governance”

Q

Q

8. “Targets”

Benefits

Projects

Change

Donors

Agencies

Programmes

Intermediaries

6. “Capacity”

KPA5

KPA6

KPA4

KPA10

KPA3

KPA2

KPA1

KPA7

KPA8

KPA9

3. “Management Organogram”

3 System3 Structure

4 Targets

5 64 10321 7 8 9

4. “Job Descriptions | Performance Contracts”

23 Sep 2014 © E Goetsch 2000 - 2014 27 | 42

collect

design

decide

produce

deliver

change

$1

T

%

Set of products and services delivered

Delivery mechanism

Designer and Implementer of Solution

Development priority

Government / Donor Agency / Bank

Actual direct + indirect beneficiaries

Taxpayer / Shareholder / Benefactor care

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

Paper Trail

Tool 1: “Development Cash Flow”Context and role in sequence of events, its tasks and report

#

$3

$2

$

Budgets

Work Plans

Impact Assessment

Baseline

Progress reports

Mid-Term reports

Receipts

End-Term reports

Proposals

Delivery Schedule

Scope of Work

Feasibility Analysis

ContractGrants

3 System3 Structure

4 Targets

A

Oc

Op

Ip

Definition Role Measure

TestPaper trail? N Y

23 Sep 2014 © E Goetsch 2000 - 2014 28 | 42

Leadership(Boardroom)

Management(Head Office)

Targets

Score

Decide Strategy (Authority / Balance)


Who (Where)

Do (Need)

Result

Deliver Operations(Directions / Energy) ActualsStaf

(Field Office)

Tool 2: “Corporate Governance”See the responsibility for peak (on-Targets) performance

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D

TestBoard Charter? N Y

23 Sep 2014 © E Goetsch 2000 - 2014 29 | 42

Tool 3: “Management Organogram”Look for orphan functions

Question Function

Why 1. Research & Development

Who with 2. Human Resources

What for 3. Marketing

What with 4. Finance

Where 5. Facilities

How 6. Procurement

What if 7. Risk

When 8. Production

What 9. Information | Audit | M&E

Who for 10. Strategy

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D


Test:Count | 10

23 Sep 2014 © E Goetsch 2000 - 2014 30 | 42

Tool 4: “Job Descriptions | KPA's”Look for orphan KPA's

Function KPA

1 R&D Solving problems

2 Marketing Attracting resources

3 Finance Matching in/out flows

4 HR Getting people working

5 Facilities Getting areas working

6 Procurement Getting inputs in

7 Production Getting outputs out

8 Risk Removing obstacles

9 Information Supporting decisions

10 Strategy Satisfying stakeholders

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D

Test:Count | 10 `

23 Sep 2014 © E Goetsch 2000 - 2014 31 | 42

Tool 5: “Performance Contracts | KPI's”Look for orphan KPI's with no measurable levels

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D

Function KPI Q Q

1 R&D Policy

2 Marketing Payers

3 Finance Payments

4 HR Performers

5 Facilities Places

6 Procurement Power


8 Risk Progress

9 Information Proof

10 Strategy Pay-ofsTest:Count | 10 pairs

23 Sep 2014 © E Goetsch 2000 - 2014 32 | 42

Payers Payments Products Proof Pay offPlacesPolicy People Power Progress

Tool 6: “Capacity Audit | Risk Analysis”Expect problems where the gaps are

2 3 7 9 1051 4 6 8

3 System3 Structure

4 Targets

KPA's

KPI's

D

D

D

Test:Count | 10 0

23 Sep 2014 © E Goetsch 2000 - 2014 33 | 42

Tool 6: Capacity Audit: Risk SolutionFill gap from most to least

2 3 7 9 1051 4 6 8

1 1 2 34 4 4 456

3 System3 Structure

4 Targets

Test:Check Performance Contracts| 100

23 Sep 2014 © E Goetsch 2000 - 2014 34 | 42

Planned (targets for:1. Input ($ of inputs)2. Work (T of work) 3. Output (# of outputs)4. Outcome (% of iimpact)

Actual

Target

Score

Tool 7: “Universal Management Equation”Look for missing project parameters

Date

Defining a Project

Special purpose vehicle(unique outcome)

Term-limited(defined end-date)

Implemented (actuals for1. Input ($)2. Work (T) 3. Output (#)4. Outcome (%)

=

Governing a Project

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D

Test:Count | 10 per project

23 Sep 2014 © E Goetsch 2000 - 2014 35 | 42

Tool 8: “QQ Targets”Look for objectives with 0 or only 1 dimension

How much

How good

Performance Supply

Quantity

Quality

Performance Demand

25%

100%200 km

100 km

10 cm 20 cm

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D

Test:Count | 2 per target

23 Sep 2014 © E Goetsch 2000 - 2014 36 | 42

Tool 8: Problem 1 - No TargetsObjectives involving no measurable outcome

Performance Supply

Performance Demand

?

?

Lagos SchoolsProject

How much learning ?

How much impact ?

3 System3 Structure

4 Targets

How much

200 km

100 km

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D

Test:Count | 2 per target

23 Sep 2014 © E Goetsch 2000 - 2014 37 | 42

Satisfaction

Outcomes

Inputs

Households

Factor Market

OrganisationsWork

Goods Market

Outputs

%

$

Time

#

Capacity

Performance

Benefits

COSTS: reduce

BENEFITS: increase


Organogram

Schedule

Tool 9: “Total Performance Management”Look for projects with less than 4 results

C/B Equity

Economy

Efficiency

Efectiveness


Review

E X E L E N C EC L=X = e4

3 System3 Structure

4 Targets

Test:Count | 8 per project

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

23 Sep 2014 © E Goetsch 2000 - 2014 38 | 42

Satisfaction

Outcomes

Inputs

Households

Factor Market

OrganisationsWork

Goods Market

Outputs

%

$

Time

#

Capacity

Performance

Benefits

COSTS: reduce

BENEFITS: increase


Organogram

Schedule

Tool 9: “Total Performance Management”Look for projects with less than 4 results

C/B Equity

Economy

Efficiency

Efectiveness


Review

100% 50% 25% 20%X = e4

3 System3 Structure

4 Targets

Test:Measure Excellence %

20%

1000 000 50 x 50 000

25 x 200 x 10

1000 000

50 x 200 x 10

100 x 100 000

4%

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

23 Sep 2014 © E Goetsch 2000 - 2014 39 | 42

Tool 9: Solution: “KPI Dashboard”Insert total performance in Performance Contract

KPA KPI E1 E2 E3 E4 X

1 R&D Policies

2 Marketing Payers

3 Finance Payments

4 HR Performers

5 Facilities Premises

6 Procurement Power


8 Risk Progress

9 Information Proof

10 Strategy Payofs

Scorecard = $ T # %

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

D

D

D

Test:Count | 4 per KPA

23 Sep 2014 © E Goetsch 2000 - 2014 40 | 42

TRUST

Donor RetentionIncome

LOYALTYRESPECT

Untied Funding

1000 000

2000 000x

500 000

500 000x

2000 000

2000 000

Marketing OperationsHR Finance

Tool 10: “Sustainability”Is the balanced scorecard of total performance

DIGNITY

Reserves

100 000

200 000x

R L

D

T

=

3 System3 Structure

4 Targets

See PROBLEM

See SOLUTION

Benefits

Projects

Agencies

Programmes

Intermediaries

Community

Donors

See PROBLEM

Test:Measure Sustainability %

23 Sep 2014 © E Goetsch 2000 - 2014 41 | 42

Proposal Contract Budget Work plan Capacity Launch

Monitoring Reporting Expenses Delivery Expectation Need

Re-Test

23 Sep 2014 © E Goetsch 2000 - 2014 42 | 42





South AfricaT H A N K Y O U




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High Performance Management