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