Organizational development esi_08292013

16-10-03

Event Solutions International

Organizational Development

Presented by:First Light LLC – jgillis767@aol.com

2 6-10-03

Event Management and Logistics

Consumer events Launch events Motorsports events Owner loyalty events Promotional events Sales training events

Hands-on

Inviting

Live

Memorable

Dynamic

Experiential

Targeted

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Strategy Structure

Chandler Model

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Shared Values

Strategy

Structure

Systems

Style

Staff

Skills

McKinsey 7-S Framework

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Principles

1.  Division of work. To produce more and better work with the same effort.

2.  Authority and responsibility. Personal authority is the indispensable complement of official authority.

3.  Discipline. Obedience, application, energy, behaviour and outward marks of respect.  

4.  Unity of command. An employee should receive orders from one superior .

5.  Unity of direction. One head and one plan for a group of activities having the same objective.

6.  Subordination of individual interest to the general interest.

Fayol

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Principles

7.  Remuneration of personnel. Should be fair and afford satisfaction both to personnel and firm.

8.  Centralization. The finding of the measure which affords the best overall yield.

9.  Scalar chain. The chain of superiors ranging from the ultimate authority to the lowest ranks. Route of communications.

10. Order. A place for everything and everything in its place.

11. Equity. Results from the combination of kindliness and justice.

12. Stability of tenure of personnel. A mediocre manager who stays is preferable to outstanding managers who come and go.

Fayol

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13. Initiative. The power of thinking and executing, and the freedom to propose and execute. Tact and integrity required.

14. Esprit de corps. ‘Union is strength.’ Harmony, union among the personnel of a company, is great strength in that company.

Principles

Fayol

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InfrastructurePeople, process,

technology

ContextProduct, service,

live, print, Internet

ContentIdeas,goals,

purpose, VMV

How’s it working?

How do we deliver it?

What’s the strategy?

BattlefieldLogisticsCommand

Action Matrix Organization

Communication

Big Picture – Event Picture

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Battlefield Infrastructure

People• Yours, mine and ours

Process• People, budgets and schedules• Macro and micro

Technology• Operational• Deliverable

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ESI INFRASTRUCTURE

PEOPLE

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Lesson 1

Being responsible sometimes means pissing people off.

Colin Powell

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Lesson 2

The day soldiers stop bringing you their problems is the day you have stopped leading them. They have either lost confidence that you can help them or concluded that you do not care. Either case is a failure of leadership.

Colin Powell

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People

What do you want me to do? Why is it important? How do I do it? What’s in it for me? How do I know when I’ve done it right?

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People

What would you like me to keep doing? What would you like me to do more of? What would you like me to do less of? What would you like me to stop doing? What would you like me to start doing?

Mordecai Magencey

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Lesson 3

Organization doesn’t really accomplish anything. Plans don’t accomplish anything either. Theories of management don’t much matter. Endeavors succeed or fail because of the people involved. Only by attracting the best people will you accomplish great deeds.

Colin Powell

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Lesson 4

Powell’s rules for picking people: Look for intelligence and judgment, and most critically, a capacity to anticipate, to see around corners. Also look for loyalty, integrity, a high energy drive, a balanced ego, and the drive to get things done.

Colin Powell

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Lesson 5

Have fun in your command. Don’t always run at a breakneck pace. Take leave when you’ve earned it: spend time with your families.

Corollary: surround yourself with people who take their work seriously, but not themselves – those who work hard and play hard.

Colin Powell

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People

Questions? Comments?

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ESI INFRASTRUCTURE

PROCESS

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Lesson 6

Never neglect details. When everyone’s mind is dulled or distracted the leader must be doubly vigilant.

Colin Powell

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Lesson 7

You don’t know what you can get away with until you try.

Colin Powell

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Lesson 8

Keep looking below surface appearances. Don’t shrink from doing so (just) because you might not like what you find.

Colin Powell

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Lesson 9

Perpetual optimism is a force multiplier.

Colin Powell

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Lesson 10

Great leaders are almost always great simplifiers, who can cut through argument, debate and doubt, to offer a solution everybody can understand.

Colin Powell

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Lesson 11

Part I: • Use the formula P = 40 to 70, in which P

stands for the probability of success and the numbers indicate the percentage of information acquired.

Part II:• Once the information is in the 40 to 70

range, go with your gut.

Colin Powell

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Lesson 12

The commander in the field is always right and the rear echelon is wrong, unless proved otherwise.

Colin Powell

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Process

Business happens horizontally. Input – Process – Output The problems and solutions usually

occur at the interfaces, connections and handoffs.

Systems thinking. A way of doing business.

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ISO

“Say what you do and do what you say.” Make the process explicit.

• ISO elements• System Level Procedures (SLPs)• Work Instructions

Process Owners.• Accountability and responsibility• Review, monitor, measure, improve

Management Responsibility.

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Process

Quality System Corrective and Preventive Action Continuous Improvement Radical Improvement Customer Satisfaction

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Process

Questions? Comments?

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ESI INFRASTRUCTURE

TECHNOLOGY

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Lesson 13

Don’t be buffaloed by experts and elites. Experts often possess more data than judgment. Elites can become so inbred that they produce hemophiliacs who bleed to death as soon as they are nicked by the real world.

Colin Powell

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Lesson 14

Fit no stereotypes. Don’t chase the latest management fads. The situation dictates which approach best accomplishes the team’s mission.

Colin Powell

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Lesson 15

Don’t be afraid to challenge the pros, even in their own backyard.

Colin Powell

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Questions

The role of technology in the future of ESI?

The cost of technology in the infrastructure of ESI?

The role of technology in long-term efficiency?

The role of technology in integration?

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Technology

Questions? Comments?

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Management

SOMMD Sets objectives Organizes Motivates and communicates Measures Develops people

Peter Ferdinand Drucker

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Respect & Professionalism

“If Judge MacMahon had been asked what he was training Paul Crotty, Ken Caruso, Jim Duff, David Denton, or Rudy Giuliani or any of his clerks to be, he would have said it was to be a fine trial lawyer. Being able to communicate, being able to explain, being able to simplify. He expected a lot from lawyers because he saw them as professionals, from whom one should expect the highest standards…the high standards he set were born out of respect.”

Rudolf W. Giuliani

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Corporate Lifecycles

Infancy The Wild Years: Go-Go The Second Birth and the Coming of

Age

Prime The Signs of Aging Aristocracy The Final Decay

Adizes

Prime = Optimal condition of the lifecycle – balance between self-control and

flexibility.

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Courtship

The Wild Years: Go-Go

Infancy

PrimeCorporate Lifecycles

The Second Birthand the

Coming of Age

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The Wild Years: Go-Go

Normal Problems• Self confidence• Eagerness• High Energy• Sales orientation• Seeking what else to do• Sales beyond capability to deliver

• Insufficient cost controls• Insufficiently disciplined staff

meetings• No consistent salary administration• Increasingly remote leadership

Adizes

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The Wild Years: Go-Go

Normal Problems• Leadership’s inflated expectations• Unclear communication• Hope for miracles• Unclear responsibilities• Company subject to criticism

• Internal disintegration• Cracking infrastructure• Workable people-centric org structure• Everything is a priority?• Founder indispensable

Adizes

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The Wild Years: Go-Go

Abnormal Problems• Arrogance• Lack of Focus• Energy too thinly spread• Sales and premature profit orientation• No boundaries on what to do

• Selling despite inability to deliver quality

• No cost controls • No staff meetings• Overpaid employees• Leadership’s paranoia

Adizes

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The Wild Years: Go-Go

Abnormal Problems• No communication• Reliance on miracles• Lack of accountability• Diminishing mutual trust and respect• Collapsing infrastructure

• Unworkable people-centric organizational structure

• Everything is a priority!

Adizes

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Institutionalizing Leadership

It is the difficult process of transferring the integration function that retards companies’ abilities to institutionalize entrepreneurial functions.

For a company to preserve its hard-won gains, it must make the change from management-by-intuition and management-by-the-seat-of the pants – Go-Go management – to a more professional process.

Adizes

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Guns or Butter

The sooner the Go – Go realizes the necessity for setting priorities, the faster it will focus and become more efficient. The organization must learn that resources are limited and that the law of opportunity-costs prevails. Doing one thing means that one cannot do something else – and the cost of doing one thing is the price of not doing another.

Adizes

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Goals

Teamwork Build integration to reduce the need for

administrative systems Purpose Focus Get over the “We’re too busy to get

organized.” Grow up

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ESI

Efficient in the short run

SystematizedAdminister

Effective in the short run

FunctionalProvide the desired needs

Input (Role) Throughput Output

Effective in the long run

Efficient in the long run

Proactive

Organic

Entrepreneur

Integrate

Adizes

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Entrepreneuring

“We cannot afford the luxury of waiting to see the future before we decide what to do in the present.” Adizes

“Imagination is more important than knowledge.” Einstein

Creativity and risk taking. Planning.

Adizes

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Integrating

“To integrate means to change an organization’s consciousness from mechanistic to organic.”

“Managers are as good as their ability to analyze the purpose of their organizations as well as the needs and wants of the people who will accomplish the purpose.”

Adizes

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Integrating

“That internal sense of belonging, of interdependence, is integration. And it is integration that makes an organization efficient.”

Adizes

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Courtship

The Wild Years: Go-Go

Infancy

Prime

Corporate Lifecycles

The Second Birthand the

Coming of Age

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Second Birth/Coming of Age

Normal Problems• Conflicts between partners or

decision makers• Temporary loss of vision• Founder’s acceptance of

organizational sovereignty

• Incentive systems rewarding wrong behavior

• Yo-yo delegation of authority• Policies made but not adhered to• Board of directors’ attempt to exert

controls

Adizes

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Second Birth/Coming of Age

Normal Problems• Love – hate relationship between the

organization and its entrepreneurial leadership

• Difficulty changing leadership style• Entrepreneurial role monopolized and

personalized

• Lack of controls• Lack of accountability• Low morale• Lack of profit-sharing scheme• Rising profits, flat sales

Adizes

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Second Birth/Coming of Age

Abnormal Problems• Return to Go-Go and the founder’s

trap• Inconsistent goals• Organizational paralysis during

endless power shifts• Rapid decline in mutual trust and

respect

• Excessive internal politics• Unchanging dysfunctional leadership

style• Entrepreneur’s refusal to delegate the

role to a depersonalized role

Adizes

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Second Birth/Coming of Age

Abnormal Problems• Divide-and-rule management• Imposition of excessive and

expensive controls• Profit responsibility delegated without

capability to manage it

• Excessive salaries to retain employees

• Rising profits, falling sales

Adizes

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Integration and Administration

An organization can achieve a timely move to the coming of age cycle if management consciously determines that the company is doing well and that now is the time to turn inward and organize.

Extra rules and controls are necessary only for those who lack a system of values to support them.

Adizes

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Goals

Institutionalize entrepreneurship as administration grows

Switch from a sales orientation to a profit orientation

Modify the reward systems Modify the recognition and appreciation

system Integrate

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Sources of Managerial Energy

a

i

pa = authorityp = poweri = influence

a = the right to make a decision to say yes and no to changei = cause people to act

without resorting to authority or power

p = the capability to punish and reward

Adizes

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Shared Values

Strategy

Structure

Systems

Style

Staff

Skills

McKinsey 7-S Framework

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ProductionCreative

Project Mgmt

ClientAccountMgmt

Accounting

SupplierPartners

Warehouse

ESI

ESI Framework

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Agenda I - Plan of Attack

Current Status Work Flow Work-in-House, booked, finished this year, last

year Reporting Structures Cost Control Efficiency Warehouse Bottom Line Financials Purchasing

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Agenda II - Plan of Attack

Everybody works for me – nobody works for me. • Find the champions.

Get to the core – building blocks and essentials of everything.• Make things as simple as possible, but not

simpler. This is a big company – this is a small

company.• Simultaneous loose-tight approach.• Concurrent approach.• Evolving model/scenario.

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Agenda II - Plan of Attack

Communications audit.• Look for the culture in the tangibles.

Performance management• What gets rewarded gets done.• Skills – Knowledge – Attitude – Behavior.

The end is inherent in the means.• If you manipulate you get distrust.• If you mobilize you get commitment.

Process Approach

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Agenda II - Plan of Attack

Financials & Purchasing• Where’s the money?

In revenue In cost – fixed and variable In people In pricing In buying In overhead In profit

• What are the Goals?

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Laws

All living systems seek to be effective and efficient in the short and long run…

…using their fixed amount of energy in the most efficient way possible.

The pattern is the lifecycle. The more integration a system has, the shorter

the route to prime. As long as there is change, there will be

problems. All problems are created by disintegration.

Adizes

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Laws

Disintegration occurs because the subsystems that comprise any system do not change all at the same time.

The role of the leaders is to lead change, integrate to solve the problems created by change, and prepare the system for the next cycle.

Integration predicts development, and lack of it predicts decay.

Adizes

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“Leadership is the art of accomplishing more than the science of management says is possible.”

General Colin PowellChairman (Ret), Joint Chiefs of

Staff Secretary of State

United States of America

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Lesson 16

Command is lonely.

Colin Powell

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Event Solutions International

ESI

Presented by:First Light LLC – jgillis767@aol.com

716-10-03

Veritas

First Light LLCJohn Gillisjgillis767@aol.com248-770-0485

6-10-03