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Your Key to Successful Strategic

Management

Your Key to Your Key to Successful Successful StrategicStrategic

ManagementManagement

PART 7:THE SIX NATURAL LEVELS

OF LEADERSHIP COMPETENCIESThe Most Universal Thinking Framework on Earth

BY STEVE HAINES AND BARBARA COLLINS

Founded in 1990 • Offices in over 25 Countries

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WHO IS BARBARA COLLINS?

BARBARA COLLINSIS THE

HAINES CENTRE’S GLOBAL PARTNERIN THE WASHINGTON DC AREA

SHE IS A:Facilitator – Consultant – Executive Coach27 years as an Executive in private companies and government 13 years as a Consultant to executives and managers Developing Effective Strategic Plans, change management processes and Systems to accomplish them Creating Effective Leadership and Talent Development Systems

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WORLD LEADER: THE CENTRE

“We Are The World Leaders in Strategic ManagementPowered by Systems Thinking”

Planning—People—Leadership—ChangeTo

Deliver Customer Value

Haines Centre’s Five Integrated Lines of Business:

www.HainesCentre.com

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HAINES CENTRE BEST PRACTICES RESEARCH

“We Are Interpreters and Translators of Proven Best Practices Research”

From Academics To the Haines Centre for Strategic Management® To Clients

Sustained Results:We Measure

Quadruple BottomLine Results:

1. Customers2. Employees3. Stockholders4. Society/

Community

Proven Research• Review Original

Proven Research

• PerformIndividualStudies/Research

• ReviewManagementPractices/Benchmarks

• StudyOrganizationalPractices/Benchmarks

“Translators”• Clarify• Simplify• Organize• Practical and

Useful

“Interpreters”• Do Action

Research

• Combine allthe Research

• Study theResults

• Interpret theResults

•Take a SystemsThinking Approach®

“Best PracticesWe Publish:

• Surveys• Assessments• Check Lists• Models• Articles• Executive

BriefingBooklets

• Haines StrategicLibrary

•Books•Best Practices

Reports

AND =

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WHO IS STEVE HAINES?

STEVE HAINESFounder & CEO:

Haines Centre for Strategic Management®

Systems Thinking Press®

Founded in 1990—38 Offices—20 Countries

STEVE is a:

“CEO—Entrepreneur—Global Strategist”and

“A Facilitator—Systems Thinker—Prolific Author”(of 14+ books)

A graduate of the US NAVAL ACADEMY’s Legendary Leadership Class of 1968

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OUR LEVEL OF THINKING

Problems that are created by our current level of thinking

can't be solved by that same level of thinking.

—Albert Einstein

Problems that are created by our current level of thinking

can't be solved by that same level of thinking.

—Albert Einstein

So ...if we generally use analytical thinking,we now need real “Systems Thinking ”

to resolve our issues.

—Stephen G. Haines

So ...if we generally use analytical thinking,we now need real “Systems Thinking ”

to resolve our issues.

—Stephen G. Haines

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WHY THINKING MATTERS

The way you think creates the results you get.

The most powerful way to

impact the quality of your results Is

To improve the ways you think

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THINK—PLAN—ACT—RESULTS

How you think

Is how you plan

Is how you act

And that

Determines the results you get in work and life

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GET A HIGHER AND BROADER PERSPECTIVE

Take a Helicopter View of Life!

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SESSION #1:SHIFTING VIEW OF THE WORLD

WORLD HISTORY THROUGH THE AGES: A NEW COPERNICUS SHIFT

HUNT---AGRICULTURAL---INDUSTRIAL---INFORMATION---SYSTEMS

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SYSTEMS THINKING

The Science of Living Systems

“The natural way the world works”

Backed by 50+ Years of Scientific Research

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FIVE MAIN CONCEPTS OF THE SCIENCE OF SYSTEMS THINKING

THE FIVE MAIN CONCEPTS OF

THE SCIENCE OF SYSTEMS THINKING

CONCEPT #1: SEVEN LEVELS OF LIVING/OPEN SYSTEMS (Day Two)

CONCEPT #2: 12 NATURAL LAWS OF LIVING SYSTEMS/EARTH (Day One)

CONCEPT #3: THE A-B-C-D-E SYSTEMS MODEL (Day One)

CONCEPT #4: THE NATURAL CYCLES OF CHANGE IN LIFE (Right now) -----

CONCEPT #5: THE LAW OF UNINTENDED CONSEQUENCES

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SESSION #2:SIMPLICITY OF SYSTEMS THINKING

ENVIRONMENT

A Holistic, Integrated, Organizing Framework

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STRATEGIC THINKING – ABCs TEMPLATE“Clarify and Simplify Your Thinking” – About your Project

___________________________________________________________________(Name of the Organization – Issue – Problem – Project – Change Effort, etc

Future Environmental Scan:What will be changing in your future

environment that will affect us?

EE

CC DD

AASystem Throughput/Processes:How do we get there (close the gap from C A )?CC AA

___________Today’s Date

Feedback Loop/ Key Success Measurements: How will we know when we get there?•

•

•

•

BB

Desired Outcomes-#1 System Question:

Where do we want to be?

Strengths•

•

•

•

•Threats•

•

•

•

•

Weaknesses•

•

•

•

•Opportunities1• 2

•3

•4

•5

•4

•

•

•

•

•

___________Future Date•

•

•

•

•

Inputs (SWOT): CORE STRATEGIES: TOP PRIORITY ACTIONS: OUTPUTS/OUTCOMES:

Current State Assessment:Where are you now?

.

.

.

.

.

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SESSION #3

TheTop 10

ToolsFor Daily Strategic Thinking

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SESSION #4: SIX STAGES--THE ROLLERCOASTER OF CHANGE

EE AA BB CC AADD BB

Sustain Business

Excellence

Loss IsA Given

#3 Anger/ DepressionAcknowledge Thru:ListeningEmpathizingExplaining Why?

#5 Hope/Readjustment:Thru•Involvement•Participation in the new Vision•Showing WIIFM

Integrated ChangeIs Optional

#6 Rebuilding

Vision

#4 – Persevere/ Hang In

#2 – Shock/Denial

#1 – Smart start

Perseverance: Key To Strategic Change

The Rollercoaster is “Natural, Normal and Highly Predictable”

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SESSION #5:ENHANCED PROBLEM-SOLVING

SYSTEMS SOLUTIONS ARE CIRCULAR..."...they achieve desired future outcomes

...they fit within their dynamic future environment...they don't just solve today's problems...and they are more likely to stay solved

ImplementSolutions

Today’sReality &Problems

DesiredFuture

Outcomes

Change!(Close the Gap)

MeasurableGoals

“Gaps”Solution Seeking

The Future

Environment

EE

CC

DD

AA

BB "For Disciplined Innovation"

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TheTop 10

ToolsFor

DailyProblem-Solving

HANDBOOK #1WILL BE USED HERE

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SYSTEMS THINKING

The Science of Living Systems

“The natural way the world works”

Backed by 50+ Years of Scientific Research

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STRATEGIC MANAGEMENTDESIRED OUTCOMES-RESULTS

WHAT ARE YOUR DESIRED OUTCOMES-RESULTS? 1. Higher Profits?_______________________________2. Greater Revenue? ____________________________3. Lower Costs/Decrease? _______________________4. Enhance Market Share? ________________________5. Drive Competitive Advantage? ___________________6. Increase Customer Service & Satisfaction? ________7. Deliver Better Customer Value ___________________8. Implement New Product/Service Offerings? ________9. Growing Community/Society Reputation___________10. Change the Employee Culture? ___________________11. Execute a Merger or Acquisition? _________________12. Enhancing our Commitment to the Community______13. Develop Strategic Alliances or Partnerships? _______14. Turn Around an Underperforming Business? _______15. Enhance safety? _______________________________16. Protect and Enhance the Environment? ___________17. Decrease Waste/Simplify your Bureaucracy? _______

CASE STUDY

PART 7:THE SIX NATURAL LEVELS

OF LEADERSHIP COMPETENCIESThe Most Universal Thinking Framework on Earth

BY STEVE HAINES AND BARBARA COLLINS

Founded in 1990 • Offices in over 20 Countries

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LIVING SYSTEMS WITHINLIVING SYSTEMS

Nested and Interdependent Systems:

Boundaries and Inter-ConnectednessNothing exists in isolation.

Relationships are everything!

Boundaries and Inter-ConnectednessNothing exists in isolation.

Relationships are everything!

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LIVING SYSTEMS

QUOTE

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SEVEN LEVELS OF LIVING SYSTEMS

SEVEN LEVELS OF LIVING (OPEN) SYSTEMS

1. Cell2. Organ

3. Organism/Individual

4. Group

5. Organization

6. Society/NationOrganizational Focus

7. Supranational System/Earth

SOURCE: James Greer MillerLiving Systems, 1978, revised 1995

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SEVEN LEVELS OFLIVING SYSTEMS QUESTIONS?

Question: Do each of these seven levels constitute a “system ”?

(i.e., sets of interrelated components that [should ] work together for the overall objective good of the whole)

Question: Are systems, then, the natural order of the earth?

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STATE OF ART BEST PRACTICES: STRATEGIC & SYSTEMS THINKING # 1

Problem: Thinking that Leadership Development is a list of skills to be learned

Best Practice: There are Six Natural Levels of Leadership Development Competencies to be Mastered

Leadership is the #1 Core Competency of Successful Organizations

PRACTICE#1

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“SIX NATURAL LEVELS OF LEADERSHIP COMPETENCIES”

Hierarchy of Six Levels:#3 Self

#3A One-to-One (Collision of two systems)

#4 Workteams

#4A Between Departments (Collision of two systems)

#5 Total Organization

#5A Organization–Environment (Collision of lots of systems)

Is our organizational focus usually these THREE levels?

--(#3,4,5) of the Living Systems–

--and the collisions and collaborations of these systems with each other

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SEVEN NATURAL RINGS OF REALITY

Environment Includes:•Other people/groups

•Other organizations

•Customer/competitors

•Society/community

•Regions/earth

Increased Readiness:•Complexity/chaos

•Readiness/willingness

•Skills/competencies growth

Note:

Rings 3 – 4 – 5- 6 are 4 of the “7 Levels of Living Systems”

Rings 3A – 4A – 5A are “Collisions of Systems” with other systems

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PURPOSES OF EACH RING

SEVEN NATURAL RINGS OF REALITY

Ring #3: Individuals (“Self-Mastery ”)• Improve personal competency and effectiveness• Trustworthiness issues within myself

Ring #3A: One-to-One Relationships (“Interpersonal skills”)• Improve the interpersonal and working relationships and effectiveness

between individuals.• Trust issues between people

Ring #4: Workteams/Groups (“Team Empowerment & Effectiveness ”)• Improve the effectiveness of the work team as well as its members.• Empowerment & results issues

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PURPOSES OF EACH RING

Ring #4A Intergroups (“Conflict vs. Horizontal Collaboration ”)• Improve the working relationships and business processes between teams

& departments horizontally to serve the customer better.• Horizontal collaboration & integration issues.

Ring #5 Total Organization (“Fit ” & Enterprise-Wide Change)• Improve the organization ’s systems, structures and processes to better

achieve business excellence & superior business results.• Alignment & Attunement issues.

Ring #5A Organization-Environment (Marketplace Positioning)• Improve the organization ’s sense of direction & positioning,

responsiveness to its’ customers and proactive management of its environments & stakeholders.

• Adaptation to & synergy with the global environment and its issues.

Ring #6 The Environment (Society, Customers, Competition, Communities)

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TAKE A TWO MINUTE BREAK

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THE CENTRE’S LEADERSHIPDEVELOPMENT COMPETENCIES

BEST PRACTICES RESEARCH

Centering Your Leadership 27 Other Authors

1. Enhancing Self – Mastery

2. Build Interpersonal Relationships

3. Facilitating Empowered Teams

4. Collaborating Across Functions

5. Integrated Organizational Outcomes

6. Creating Strategic Positioning

1. 27 out of 27 had a similar item

2. 17 out of 27 had a similar item

3. 6 out of 27 had a similar item

4. 3 out of 27 had a similar item

5. 13 out of 27 had a similar item

6. 9 out of 27 had a similar item

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THE CENTRE’S LEADERSHIPDEVELOPMENT COMPETENCIES

Note: None had all 6 competencies.

• Only 3 had four competencies

• Only 4 had three competencies

The Centre does not do basic research. We do action research as well as summarize and synthesize the research of others.

We are translators and interpreters of Best Practices Research.

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LEADERSHIP COMPETENCIES— 360 ° FEEDBACK

I. Enhancing Self Mastery IV. Collaborating Across Functions

II. Building Interpersonal Relationships: V. Integrating Organizational Outcomes

III. Facilitating Empowered Teams: VI. Creating Strategic Positioning

1. Personal Goal Setting2. Balancing Body-Mind-Spirit3. Acting with Conscious Intent4. Ethics and Character Development5. Accurate Self-Awareness

6. Caring7. Effectively Communicating8. Mentoring and Coaching9. Managing Conflicts10. Creativity and Innovation

11. Practicing Participative Management12. Facilitating Groups13. Delegating and Empowering14. Training Others15. Building Effective Teams

16. Installing Cross-Functional Teamwork17. Integrating Business Processes18. Institutionalizing Systems Thinking19. Valuing and Serving Others20. Managing People Processes

26. Scanning the Global Environment27. Reinventing Strategic Planning28. Networking and Managing Alliances29. Positioning in the Marketplace30. International Effectiveness

21. Organizing Effectively22. Mastering Strategic Communications23. Cascade of Planning24. Leading Cultural Change25. Organizing and Designing

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LEADERSHIP COMPETENCIES— 360 ° FEEDBACK

Energizing and Motivating Forces:

31. Level #1: Has Desire to grow and develop

32. Level #2: Has Reputation for Integrity

33. Level #3: Recognizes Interdependence with others

34. Level #4: Values Providing Service to Others

35. Level #5: Agrees with the Organization’s Vision and Values

36. Level #6: Believes in mutual influence/synergistic efforts

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CENTERING YOUR LEADERSHIPSM

The Systems Thinking ApproachSM toSix Natural Leadership Competencies

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ACHIEVING LEADERSHIP EXCELLENCE

LEVEL 1 –SELF-MASTERY

LEVEL 2 –INTERPERSONAL

LEVEL 3 –INTACT TEAMS

LEVEL 4 –CROSS-FUNCTIONAL

LEVEL 5-ORGANIZATION-WIDE

LEVEL 6-STRATEGIC

ESSE

NTIA

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FOUNDATION WORKSHOP• Achieving Leadership ExcellenceTM: Enterprise Wide

THE 6 NATURAL LEVELS OF

LEADERSHIP COMPETENCIES

THE SYSTEMS THINKING

APPROACH

THE SIX NATURAL LEVELSOF LEADERSHIP COMPETENCIES

The Most Universal Thinking Framework on Earth:

Other Uses?

Founded in 1990 • Offices in over 20 Countries

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THREE LEVELS OF LEADERSHIP/ MANAGEMENT DEVELOPMENT

3. Senior Management

2. Middle Management

1. Supervisors

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LEVELS OF THE LEARNING ORGANIZATION

LowestImpact

HighestImpact

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THE CASCADE OF PLANNING“Strategic Consistency and Operational Flexibility”

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6. STRATEGIES: 7. ACTIONS 8. ANNUAL

ACHIEVING LEADERSHIP EXCELLENCE: ENTERPRISE-WIDE

THE SYSTEMS THINKING APPROACHTM TO ACHIEVING LEADERSHIP EXCELLENCE

C INPUT

B FEEDBACK

A OUTPUTD THROUGHPUT

YEARLY LEADERSHIP DEVELOPMENT CYCLE

CURRENTSTATE

CENTERINGYOUR

LEADERSHIPA. 3-Day LeadershipDevelopment SystemSeminar

A. Daily/WeeklyReinforcement

B. Development

Six Natural Levels

of Leadership

CompetenciesB. Succession Management

C. Performance & PLP

LEADERSHIPREVIEW

2. SHAREDLEADERHIP

VISION

BITE SIZEDAPPROACH

3. LEADERSHIPSUCCESS FACTORS

4. ORGANIZATIONALNEEDS ASSESSMENT

5. 360O

INDIVIDUALMANAGEMENTASSESSMENTS

1. PLAN-TO-PLAN

Executive

Development

Board

E

ENVIRONMENTAL

SCAN

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A NEW APPROACH TO STRATEGIC THINKING

IS REQUIRED IN THE 21ST CENTURY

THINK DIFFERENTLY—THINK STRATEGICALLYUse The Systems Thinking Approach®

#1: Best Practice: There are Six Natural Levels of Leadership Development Competencies to be Mastered by the Entire Management Team-not each individual

NEW APPROACH QUESTIONS

THE 21ST CENTURY MACRO BEST PRACTICE:

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Achieving Enterprise-Wide Leadership ExcellenceA Suite of Leadership Development Workshops

LEVEL 1 - SELF-MASTERY• Personal Change Management + Strategic Life Planning

• Personal Leadership Mastery

LEVEL 2 - INTERPERSONAL• Coaching For Results + Supervisory Change Management

• Conflict and Consensus Management

LEVEL 3 - INTACT TEAMS• Effective Team Development + The Learning Org’n

• Group Facilitation - Skill Building

LEVEL 4 - CROSS-FUNCTIONAL• Leadership Excellence for Executives

• Strategic Project Management• GoInnovate - A System of Innovation

LEVEL 5ORGANIZATION-WIDE

• Enterprise-Wide Change• Strategic HR/Management

• Succession Planning

LEVEL 6STRATEGIC

• Strategic Planning• Systems Thinking

• Strategic MarketingES

SENT

IALS

ADVA

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Lead

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Supporting Products and Materials *

FOUNDATION WORKSHOP• Achieving Leadership ExcellenceTM: Enterprise Wide*Supporting Products

and Materials available atwww.SystemsThinkingPress.com

THE 6 NATURAL LEVELS OF

LEADERSHIP COMPETENCIES

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FAILURE OF ENTERPRISE-WIDE CHANGE

MAJOR CHANGE FAILS 75% OF THE TIME:

WHY?

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FOUR KEY MANAGEMENT PARADIGMS THAT NEED CHANGING

1. From analytic to systems thinking2. From conflict is bad to conflict is good-Roller Coaster of Change3. From self-protection to self-development (i.e., saving face vs. Feedback)4. From hierarchal change to Enterprise-Wide Change management (Enlist

the entire organization—not just rely on the Org Chart—it is designed to resist change)

These are the keys to success in Enterprise-Wide Change

Genius is1% Inspiration

And99% Perspiration

Thomas A. Edison

Genius is1% Inspiration

And99% Perspiration

Thomas A. Edison

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12 ABSOLUTES FOR SUCCESS INENTERPRISE-WIDE CHANGE

Create A Yearly Strategic Management Cycle –(Corporate-Wide Core Competency #3)

1. Have a clear Vision, Positioning and shared Core Values of your Ideal Future

2. Develop focused and shared core strategies—as the glue for setting and reviewing annual goal setting and action planning for all major departments/SBUs

3. Set up Quadruple Bottom Line Measures and a Tracking System. Cascade it down in a Line-of- Sight for accountability of results at all levels – Unit-by-Unit/Dept.-by-Dept

4. Focus on the vital few leverage points of Business Excellence Architecture & Assessment with Watertight Integrity – Corporate-Wide Core Competency #3

5. Set the Top Enterprise-Wide Change Priorities—on only 2 pages

6. Conduct Large Group Enterprise-Wide Change Review and Critique Meetings

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12 ABSOLUTES FOR SUCCESS INENTERPRISE-WIDE CHANGE

7. Institutionalize the Parallel Involvement Process—with all key stakeholders as the new participative way you run your business day-to-day. Create a critical mass for Enterprise-Wide Change–that “goes ballistic” and becomes self-sustaining

8. Gain public commitments of “PLPs” and a Leadership Development System to Achieve Leadership Excellence – Corporate-Wide Core Competency #1

9. Redo your HR Management Practices—to support the positioning and values, especially your high performance management and Rewards system

10. Establish a monthly EWC Change Leadership Team—led by the CEO and facilitated by a master external facilitator—with a Yearly Comprehensive Map of Implementation

11. Set up a Program Management Office/Support with “Change Project Teams” of cross-functional leaders to track, and monitor each core strategy as the vehicle for change

12. Conduct the Annual Enterprise-Wide Review (and Update)—like an independent financial audit to ensure constant updating of your Enterprise-Wide Game Plan—Corporate-Wide Core Competency #2: “Build a Yearly Strategic Management Cycle.”

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THREE MAIN FAILURES OFENTERPRISE-WIDE CHANGE:

#1. Piecemeal Approach to a System’s Problem (Multiple Conflicting Mindsets)

Involving multiple mindsets, frameworks, consultants and fads

Instead of a Systems Thinking Approach

#2. Mainly Focusing on an Economic “Alignment” of Delivery (Alignment only)

Involving a primary focus on productivity and bottom-line economics

Instead of a combined approach with “attunement” issues below

#3. Mainly Focusing on Cultural “Attunement” and Involvement with People(Attunement only)

Involving a primary focus on egalitarian, participative, people processes

Instead of one combined approach with #2 above (economic alignment)

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THREE MAIN FAILURES OFENTERPRISE-WIDE CHANGE:

INSTEAD,

TRY AN INTEGRATED TOTAL SYSTEMS SOLUTION:

An Enterprise-Wide Systems Thinking Approach to Business Excellence –with a Quadruple Bottom Line measurement system:

(economics–employees–customers–society)

That dramatically increases Superior Results:(Profits–Growth–Culture–Sustainability)

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COMPLEXITY – THE RUBIKS CUBE

“An Organization is a Living System"

How many moves are there in a Rubik’s Cube?

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ENTERPRISE-WIDE CHANGE WHY IT FAILS

75% OF ALL MAJOR CHANGE EFFORTS FAIL

WHY?Because

Rubik’s Cubes and OrganizationsAre Both

Complex Systems

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COMPLEXITY – THE RUBIKS CUBE

"The Organization as a System"

How to Start Moving:

From:Chaos & Complexity

To:Elegant Simplicity

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SYSTEMS and ANALYTIC THINKING– Three Steps –

Work ON the Enterprise First

INSIDE(Do)

OUTSIDE(Check)

OUTSIDE(Plan)

3.

Link toDeliverables

AndOutcomes

1.

HelicopterView

ClarityOf

Purpose

1. Work ON the Enterprise

2. Work IN the Enterprise

3. Check ON the Enterprise

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BOTTOM LINE

What we think,or what we know,or what we believe

is, in the end,of little consequence.

The only consequence ......is what we do!

What we think,or what we know,or what we believe

is, in the end,of little consequence.

The only consequence ......is what we do!

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THANK YOU FOR YOUR PARTICIPATION

Steve Haines Barbara CollinsHaines Centre for Strategic Management