16
The Unspoken Opportunities at Your Doorstep: Performance Breakthroughs Start with the Right Question By David Narramore and Steve Jacobs Critical thinking for critical times

The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

Embed Size (px)

DESCRIPTION

— In nearly every organization, significant opportunities to unlock new performance are known by many, but remain unspoken and therefore unrealized year after year. In all of the rhetoric about “breakthrough thinking”, most companies fail to mine the improvements that people are already thinking but are reluctant to voice. — The real breakthrough begins when leaders ask a different question, namely, “What are the unspoken opportunities within our midst?”, and then create the conditions that encourage candid dialogue. — This article summarizes the results of a recent study that asked precisely this question, and discusses implications for the new behavior that will drive new results. Notably, leadership failures were the most frequently cited “unspoken opportunity.” — There is a way to ask the question, to establish conditions for constructive candor, and to achieve profound impact if leaders demonstrate a genuine and consistent desire to place the interests of customers and employees ahead of their own interests.

Citation preview

Page 1: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep:Performance Breakthroughs Start with the Right Question

By David Narramore and Steve Jacobs

Critical thinking for critical times™

Page 2: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 1

AT A GLANCE— Innearlyeveryorganization,significantopportunitiestounlocknewperformanceareknownbymany,

butremainunspokenandthereforeunrealizedyearafteryear.Inalloftherhetoricabout“breakthroughthinking”,mostcompaniesfailtominetheimprovementsthatpeoplearealreadythinkingbutarereluctanttovoice.

— Therealbreakthroughbeginswhenleadersaskadifferentquestion,namely,“Whataretheunspokenopportunitieswithinourmidst?”,andthencreatetheconditionsthatencouragecandiddialogue.

— Thisarticlesummarizestheresultsofarecentstudythataskedpreciselythisquestion,anddiscussesimplicationsforthenewbehaviorthatwilldrivenewresults.Notably,leadershipfailureswerethemostfrequentlycited“unspokenopportunity.”

— Thereisawaytoaskthequestion,toestablishconditionsforconstructivecandor,andtoachieveprofoundimpactifleadersdemonstrateagenuineandconsistentdesiretoplacetheinterestsofcustomersandemployeesaheadoftheirowninterests.

INTRODUCTIONNomattertheseasonorbusinesscycle,organizationsareunderpressuretogrow,profit,anddelivervalueforitsstakeholders.Achievingnewlevelsofperformanceisnoeasytaskforthoseinleadershipwhethertheyareexecutives,managementorteamleaders.Alltoofrequentlyleadership’sresponsedefaultstoacomfortzonewithobviousandwidelyacceptedpathstoimprovement.Sometimescalled“quickwins”or“lowhangingfruit”,theseimprovementsareusuallydrivenfrommandatedexpensereduction,processefficiencies,ortechnologyenablement.Afterrepeatedlypickingoverthesametypesofsolutions,thepathtonewperformanceresultsbecomeslessclear,withremainingideasfrequentlyrequiringsignificantinvestmentandanelongatedpayback.

However,innearlyeveryorganization,“unspokenopportunities”existtounlocknewperformance.Thesefreshopportunitiescomefromaskingthequestion:“What are the issues that the organization is not likely to address, but would have significant organizational value if resolved?”Theseunspokenopportunitiesarepervasive,willsignificantlyimpactperformanceandmorale,andarecommonlydiscussedinthehallways,butarerarelyvettedinformalsettings.Unspokenopportunitiesinorganizationsarethosethatbydefinitionareunderstoodbymanybutdiscussedbyfew.Thereisoftenabeliefthatsurfacingsuchissuesisunwiseorworse.

Examplesofsuchopportunitiesinclude:

Warning:Themajorityofreaderswillskimthisarticle,perhapsnodinagreement,andthendonothingmore.Theimplicationsareuncomfortableandcourageisrequired.However,forleaderswillingtodowhatittakestotrulyencouragefreshdialogue,opportunitiesexisttodevelop“newbehaviors”thatwillleadto“newresults”.Theseopportunitiesquicklybecomeapparentonceleadersintentionallylookforthem.Whetheryourorganizationisagloballeader,middlemarketcompany,emergingbusiness,non-profit,oragovernmentalentity,itcannotaffordtocontinueleavingunspokenopportunitiesunaddressed.

— Directionnotclearornotcompelling

— Seniorteamdiscord

— Salesterritoryconfusion

— Internalcompetition

— Cross-sellingincentivesdon’tincent

— Lackofaccountabilityforresults

— Poorperformersnotaddressed

— Superiorperformancenotrewarded

Page 3: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 2

A major healthcare company convened its Top 100 leaders to launch the company’s new strategy for strengthening competitive position in the face of regulatory reform and significant cost challenges. Throughout the two-day session, presentations were met with polite applause and roundtable discussions offered uninspired recommendations. In contrast, informal discussions during breaks and dinner were quite animated and centered on a common refrain: “If the senior exec’s are serious about this, then they need to ‘get their hands dirty’ and play an active role in leading successful execution. At no point during the entire event did anyone say this publicly, nor did any of the senior executives hear this privately. One year later the group convened again, this time to address the slow and inconsistent progress to date. Although participants made vague and safe references to conflicting priorities, unmade trade-off decisions, and diffused accountability, no one voiced the barrier that most in the room believed would unlock true progress, namely the specific execution roles that the senior team needed to play. — Source: CLG

UNSPOKEN OPPORTUNITIES IN OTHER ORGANIZATIONSTobeginyourthoughtprocessonunspokenopportunitiesthatmayexistinyourorganization,considertheissuesidentifiedinarecentFTIsurvey.Toaddressthedepthandbreadthoforganizations’unspokenopportunities,FTIconductedasurveyaskingthequestion:“Whatinternalbusinessproblemsareusuallyavoided,butwouldaddsignificantorganizationalvalueifresolved?”1Respondents’interestinthisquestionwasevidentacrossthe223respondentswhoprovidedtheirtop3answerstothisquestionduringNovemberandDecember2009.Whileuniqueunspokenopportunitiesdoexistinanorganization,therearemanymoreunspokenopportunitiesthatarepervasiveacrossorganizationsandwillprovideacompetitiveadvantageforthoseorganizationsthatresolveandcapitalizeontheopportunity.Thesesurveyfindingscanserveasachecklisttothinkthroughwheretheremaybeunspokenopportunitiesinyourownorganization.

Analysis Conducted –Therespondentswereprovidedtheopportunitytoeitherprovidetheirowncustomanswerorselectaresponsefromalistof46potentialanswersasdetailedinAppendixAthatweregroupedinthefollowingeightcategories:

Eachrespondent’sanswerwasgivenaweightof3pointsforthefirstanswerassociatedwiththeproblemifresolvedthatwouldprovidethehighestincreaseinorganizationalvaluefollowedbya2pointweightforsecondanswerand1pointforthethirdanswertothequestion.Eachrespondent’sanswerwaslinkedtooneofthestandardanswercategoriesaswellasnewcategorieswerecreatedtocaptureresponseoutsideofthestandardanswersprovided.Atotalpointscorewascalculatedforeachorganizationalcategoryandthecategory’sunderlyingissuesassociatedwithunspokenopportunities.Thisscoringapproachprovidesvisibilityintotherelativepain/opportunityassociatedwithinternalbusinessproblemsassociatedwiththeseorganizationalcategoriesaswellastheunderlyingproblemsassociatedwitheachcategory.AppendixBincludesadetailedsummaryofthesurveyresults,andasummaryoffindingsishighlightedbelow.

Findings –Oneoftheclearestmessagesfromrespondentsispointingtoleadershipasanareatosearchforunspokenopportunities.Oftheeightorganizationalcategoriesnotedabove,theleadershipcategoryscored60%to310%higherinweightedpointsthantheothersevencategories.Thesinglelargestindividualanswercategorywasleadershipwherenofurtherissuespecificationwasprovided,anditscored2.6Xhigherinpointsthanthenextlargestindividualcategory.

— Leadership

— Strategy

— Governance&DecisionMaking

— Markets&Customers

— Culture

— People

— PerformanceManagement

— PerformanceImprovement

1. Foradditionaldetailonsurveyresults,refertoAppendixAandB.

Page 4: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 3

Whiletheleadershipcategoryisclearlyanimportantareatosearchforunspokenopportunities,thereareotherareasaswell.Table1highlightstheemergingthemesandtoparticulatedissuesdevelopedfromthe223respondents’opinionsonthetop3unspokeninternalbusinessproblems.Insummarizingthefindings,theeightcategorieswerestreamlinedintofivecategoriestoreflectlinkagesinthepresentationofresults.Thetotalweightedpointsbycategorywere:

Source:FTIConsultingSurveyresults.SeeAppendixAforadditionaldetails.

ForeachoftheorganizationalcategorieslistedinTable1,thethemesemergingfromthesurveyresponsesarepresentedalongwiththetoparticulatedinternalbusinessissueslinkedtothefiveorganizationalcategories.Insomerespondents’answers,theydidnotarticulateindetailtheissue;rathertheyprovidedacategoryresponsesuchas“Leadership”withnofurtherdetail.ThearticulatedissuesinTable1represent14issuesthatcomprisethetop10rankingofdetailedissues.

IMPLICATIONSLeadership matters. Really!Thismessagecamethroughbothinthesurveyresultsandthesupplementalsurveycomments.Commentssuchasthoseintheadjacentwindowprevailed.Ultimately,leadershipcanandshouldbeaboutleavingtheorganizationinabetterplacethanwhenaleaderstarted,NOTaboutleavingone’spublicimageandpersonalnetworthinabetterplace.Employeesknowthisinstinctively,andtheyknowthedifferencebetweenself-servingleadershipversusservantleadership.Thesefindingsareaclearreminderoftheimportanceofthisdistinction.

VOICE OF RESPONDENTS

— IncrementalismwillbethedeathofUScompanies.[Thereisalackof]ethicalleaderswhoaredrivingcompaniestobecompetitiveinthenextcentury.

— Intermsoflackofresponsibility,Iwishtopmanagerscouldacknowledgeiftheymadeabaddecisionanduseitasanopportunityoflearningratherthanhidethefactthatabaddecisionwasmade.

Source:SelectedcommentsfromFTIConsultingSurvey.

“Soft issues” are the key to “hard results.” Really. Thetoptwocategoriesofunspokenopportunities,i.e.,“Leadership”and“PeopleandCulture”areoftenviewedas“soft”andintangibleimprovementoptions,yettheyrepresentnearlyone-halfoftheopportunitiesidentifiedbyrespondents.Readingthesurveycomments,oneisremindedofDr.CharlesO’Reilly’sobservationthat“Cultureeatsstrategyforbreakfast.”

Category Total Points Scored % of Total Points Scored

1.Leadership 324 24.2%

2.PeopleandCulture 290 21.6%

3.Strategy,Markets,andCustomers

282 21.1%

4.PerformanceImprovementandManagement

261 19.5%

5.GovernanceandDecisionMaking

180 13.5%

Page 5: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 4

TABLE 1 – SUMMARY OF EMERGING SURVEY THEMES AND TOP ARTICULATED AVOIDED INTERNAL BUSINESS PROBLEMS

Source:InsightsandanalysisonFTIConsultingsurveyresultsjointlydevelopedbyCLGandFTIConsulting.

Takentogether,theseimplicationsarebothsoberingandencouraging.The“shadow”thatleaderscastthroughtheirbehaviormostcertainlyinfluencestheculture,andultimatelytheeffectiveness,ofanorganization.4Onerecentexampleofthis,amongmany,isFastandTiedens’workon“blamecontagion”thatdemonstratesthatwhenpeopleblameothersformistakesratherthantakepersonalaccountability,fearandperformancedecrementsoccuratadisproportionaterate.5Thegoodnewsisthatthe“soft”opportunitiesthatleadersoftenviewasintangibleandimpracticalcan,withtheproperapproach,beimminentlytangible,practical,andproductive.6

Otherinsightsfromthesurveyfindingsinclude:

— Mostoftheunspokenopportunitiesidentifiedbyrespondentsdonotnecessarilyentailcost.Thoughaninvestmentoftimeandfocusisclearlyrequired,additionalbudgetexpendituremaynotbeneeded.

— Unspoken opportunities are not typically isolated to only impact one area of an organization; they frequently impact the entire organization.Surveyrespondentsreportedthatover70%ofavoidedinternalbusinessissueswerelinkedtotheentireorganization.

Organizational Category Emerging Themes2 Top Avoided Internal Business Problems3

Leadership24.2%ofsurveypoints

Failures in leadershipmustbeaddressedorperformancewillcontinuetosuffer

Lackof:— Communication— Character/integrity— Senseofresponsibility

People and Culture21.6%ofsurveypoints

Misalignmentisprevalentthroughoutorganizationinhibitingresults.

Lackof:— Candortoaddress

uncomfortable/sensitiveissues— Organizationalalignment— Culturalalignmentwithvision

andstrategy— Collaboration

Strategy, Markets, And Customers21.1%ofsurveypoints

Recognizecritical informationis missing tooptimallyguideandmanageorganization

Lackof:— Abilitytobalancestrategicfocus

anddailytacticalneeds— Market,customer,and

competitivestrategy— Strategicframeworktoview,

plan,andmanagebusiness

Performance Improvement and Management19.5%ofsurveypoints

Lack of accountabilitysetsthestagefororganizationalfailureandpoormorale

Lackof:— Alignmentofstrategy/priorities

toindividualperformanceplans— Accountabilitytodeliverresults

Governance and Decision Making13.5%ofsurveypoints

Inferiorresultsemergefromdecision making lacking alignment, process, and structure

Lackof:— Structureforeffectivestrategic

and/ortacticaldecisionmaking— Alignmentofdecisionmaking

acrosstheorganization

2. Theemergingthemesweredevelopedfromareviewofthetoparticulatedavoidedinternalbusinessproblems.

3. Insomerespondents’answers,theydidnotarticulateindetailtheissue;rathertheyprovidedacategoryresponsesuchas“Leadership”withnofurtherdetail.ThearticulatedissuesinTable1represent14issuesthatcomprisethetop10rankingofdetailedissues.

4.LarrySennandJimHart,WinningTeamsWinningCultures,TheLeadershipPress,2006-2009.

5. NathanialFastandLarissaTiedens,Blamecontagion:Theautomatictransmissionofself-servingattributions,JournalofExperimentalSocialPsychology,46,2010.

6. LeslieBraksick,UnlockBehavior,UnleashProfits,McGraw-Hill,2007.

Page 6: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 5

— Unspoken opportunities to drive improved results will likely be found disproportionately in the sales organization.13%oftherespondents’#1internalbusinessissueswerelinkedtothesalesorganizationwhichwasonaverage3.3Xhigherthanthepercentofissueslinkedtootherareasoftheorganization.

— Other specific business areas to consider once you move to considering the #2 and #3 internal business issues include: Sales, Executive Office, Marketing, Customer Service, and Information and Technology.

GO AHEAD, ASK THE QUESTIONItstartswithaskingthequestion.Taketimeoutandaskyourself,“Whataretheissuesthatwearenotlikelytoaddressandthatwouldhavesignificantorganizationalvalueifresolved?”Symptomsofunspokenopportunitiescantakeonmanyforms.Considerthefollowingasyouconsiderunspokenopportunitiesinyourorganization.Tostarttheprocess,reviewthesymptomlistingbelowandcheckthosesymptomsobserved,identifywhereintheorganizationdoyouobservethesesymptoms,andwhatisissueisassociatedwiththesesymptoms.

TABLE 2 – ASSESSING THE SYMPTOMS IN YOUR ORGANIZATION

Source:JointlydevelopedbyCLGandFTIConsulting

Afterconsideringtheabovesymptoms,takeafewminutestoreflectonthe5areasnotedinTable3indicatingwhereonthecontinuumyourorganizationisoperatingandthenatureoftheunderlyingissue(s).

What symptoms are observed in your organization?

What issue is associated with the symptoms?

Where in the organization do you observe these symptoms?

Issuesdiscussedinhallways,breaks,and in private, but not in formal meetings

Meetingbehaviorthatindicatesdiscomfort, disagreement, or disappointment

Actionsthatdon’t reflect words spoken

Brewingconflictbetweenindividuals,teams,organizations, or business units

Intentionalsilencewithamessagebehindthe silence

Whyquestionsthatcontinueduetolackofasatisfying response

Page 7: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 6

TABLE 3 – UNSPOKEN OPPORTUNITY CONTINUUM

Source:JointlydevelopedbyCLGandFTIConsulting

MOVING FROM INSIGHT TO BREAKTHROUGH RESULTSBreakthroughresultsrequirethevettingofissueswithkeystakeholderstosecurealignment,buy-in,andapathtoresolution.Thoughtheprocessstartswiththedifficultquestion,realprogressonlycomesthroughintentionaland,yes,courageousleadershipwillingtomaketoughdecisionswhererequired.Fairornot,leadersmustinitiatethedialogue,modelcourageandcandor,andreinforceothersfordoingthesame.Moreover,theymustactuponwhattheyhear.Thatsaid,ALLofusarecomplicitinnotsurfacingunspokenopportunities,andthereforecanplayanimportantroleinvoicingandovercomingthem.

Opportunity Area Opportunity Continuum Nature of Problem

Leadership:Failures in leadership must be addressed or performance will continue to suffer.

Lackof:— GuidanceandClarity— CapabilityandProficiency— OccasionandOpening— DriveandStimulus

People and Culture:Misalignment is prevalent throughout organization inhibiting results.

Lackof:— GuidanceandClarity— CapabilityandProficiency— OccasionandOpening— DriveandStimulus

Strategy, Customers and Markets:Recognize critical information is missing to optimally guide and manage organization.

Lackof:— GuidanceandClarity— CapabilityandProficiency— OccasionandOpening— DriveandStimulus

Performance Management and Improvement:Lack of accountability sets the stage for organizational; failure and poor morale.

Lackof:— GuidanceandClarity— CapabilityandProficiency— OccasionandOpening— DriveandStimulus

Governance and Decision Making:Inferiors result emerge from decision making lacking alignment, process and structure.

Lackof:— GuidanceandClarity— CapabilityandProficiency— OccasionandOpening— DriveandStimulus

Major Weakness Emerging Acceptable Market Problem Issue Leader

Major Weakness Emerging Acceptable Market Problem Issue Leader

Major Weakness Emerging Acceptable Market Problem Issue Leader

Major Weakness Emerging Acceptable Market Problem Issue Leader

Major Weakness Emerging Acceptable Market Problem Issue Leader

Page 8: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 7

Outlinedbelowareafewtechniquesandbestpracticestodrawuponinworkingthroughunspokenopportunities.

DEVELOP UNDERSTANDING OF WHY UNSPOKEN OPPORTUNITY EXISTS Itisimportanttounderstandwhykeyopportunitiesremainunspokenandunaddressed.Sometimes,tacklingsuchopportunitiesleadstomorecomplexity.Moreoften,however,thesolutionsarenomorecomplex.Buttheinitialstepstodiscussthemaremoreuncomfortable.Reasonsforthisinclude:

— Historysuggeststhattheinput“won’tbeheard”orthat“nothingwillchange”,

— Fearofoffendingothers,

— “Someoneelse’srole”,and

— Requirescross-functionalcollaborationofpeoplewhorarelytalkwithoneanother.

SET THE STAGE FOR CANDID DIALOGUEThereisanoldsayingthatpeoplechangeeithertomoveawayfromthefire,ortomovetowardthelight.Givevoicetobothoftheseandconsiderthefollowing:

— Seekoutthefacts,

— Considertheissuesfromtheperspectiveofthosedirectlyandindirectlyinvolved,

— Clarifythedownsideofcontinuingandarticulatebenefitsfromresolution,

— Demonstratesensitivityandcaringregardingthediscomfortassociatedwithaddressingtheissues,

— Acknowledgetheconsequencehistory,theawkwardnessandperceivedrisks,

— Acknowledgeone’sowncontributiontotheproblem,and

— Demonstratethepersonalwillingnesstobreakthecycle.

AGREE ON THE PATH FORWARDPutthefacts,perceptions,andassumptionsonthetable.Namethem,speakcandidlyandconsiderthefollowing:

— Recognizewhena3rdpartyisneededtofacilitatethediscussionandtoshapethepathtoresolution,

— Clarifythenewbehaviorthatwillberequiredtoachievenewresults,

— Identifyandremovethebarrierstoresolution,

— Verifyexplicitalignmentregardingconclusionsandactionplan,and

— Staythecourse.Persistentissuestypicallyrequirepersistentexecution.Remember:Fosteringthenewbehaviorisonly20%ofthesolution.Reinforcingthenewbehavioruntilitbecomeshabitisthe80%.

ESTABLISH ACCOUNTABILITY AND MANAGE TO BREAKTHROUGHFormost,achievingthebreakthroughrequiresestablishingaccountability,monitoring,andaperformanceplanthatcoachesandreinforcesnewhabitsthatleadtotargetedresults.Incorporatethefollowingintoyourresolution:

— Establishclearaccountabilities,

— Implementaperformanceplanwithrewardsandconsequencesthatmotivatebehaviorstonewresults,

— Ensurethattimely,specificandmeaningfulfeedbackisprovidedatalllevels,andthattheratioofpositivetoconstructivefeedbackisaleast4to1,

— Regularlymeasureandreportonprogresstowardsachievingbreakthroughwithbothleadingandlaggingindicatorsofsuccess,and

— Observe,coach,mentor,andmanagetosuccess.

NO BETTER TIME THAN NOWUnspokenopportunitiesforbreakthroughimprovementsresideinmostorganizationsfortheveryreasonthatleadersinmostorganizationseitheroverlook,oravoid,uncomfortablediscussions.Breakthecycle.BEthechangethatothersarewaitingfor.

Page 9: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 8

ABOUT AUTHORSDavidNarramore,aseniormanagingdirectorinFTIConsulting,Inc.’sCorporateFinancesegment,hasover25yearsofexperienceinworkingwithclientstoaddressstrategic,organizational,operational,economic,andfinancialissuesimpactingtheirbusiness.David,aleaderinFTI’sPerformanceImprovementpractice,specializesinsupportingcompaniesenablebusinessimprovementsincludingorganizationalalignment,revenueenhancement,customerdevelopment,supplychainmanagement,andcorporateoverheadreduction.

Hebringsclientsastrongcombinationofbusinessplanningandperformanceimprovementexperiencewithafocusonachievingenterpriseobjectivesandtangiblefinancialbenefits.Thisstrategicvaluedrivenfocuswasdevelopedfrom15yearsofservingclientsasafinancialadvisor,alongwith10yearsofexperienceassistingclientsevaluatepeople,process,andtechnologyimprovementopportunities.

Mr.NarramoreisaChartedFinancialAnalyst(CFA)andholdsaB.B.A.ineconomicsandfinancefromBaylorUniversity.

ContactInformation:[email protected]

SteveJacobs,aCLGSeniorPartner,hasdevelopedasuccessfultrackrecordofresultsandculturechangeacrossarangeofcorporatesituations.Clientsrelyonhimtoprovidequalityleadership,coaching,mentoringandimplementationstrategiesthatleadtosustainablechange.Steveworkswithseniorexecutiveswhoareultimatelyaccountableforthespeed,returnandsustainabilityofmajorstrategicinitiativeswithinternationalapplications.Stevealsoprovidesexpertexecutivecoaching,andspecializesinlarge-scalestrategicchangeinitiativeswithseniormanagementteams,buildingcompanies’ongoingimplementationcapabilitiesandprovidingexecutivecoachingwith

24/7availability.

Steve’scorporateroleshaveencompassednewbusinessstartups,divisionalturnarounds,mergerintegration,divestiture,supplierpartnershipsandenterprise-widestrategicchangeimplementation.Hehasalsobeeninvolvedinfoundingand/orleadingthegrowthofthreesuccessfulprofessionalservicefirmsduringhiscareer.InadditiontohiscurrentinvolvementwithFortune500companies,SteveholdsinterdisciplinaryandpostgraduatedegreesfromtheUniversityofCaliforniaandHarvardUniversity.

ContactInformation: [email protected]

Page 10: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 9

APPENDIX A – FTI CONSULTING, INC. SURVEY

SURVEY OVERVIEWTherearesignificantorganizationalissuesthataresacredissuesthatareavoidedanddonotemergefordiscussion.Organizationsfrequentlygoafterthequickwinsand/orlowhangingfruit.Thequickwinsareimportanttorealize,buttherearepotentiallyotherissuesthatcanmakeahugedifferenceintermsofaccomplishingtheprimarybusinessobjectives.Tosupportidentifyingunspokenopportunitiesthatmaygounrealized,FTIConsulting,Inc.conductedasurveyduringtheperiodmid-NovemberthroughDecember2009askingthefollowingquestionthroughanonlinesurvey:

“What internal business problems are usually avoided, but would add significant organizational value if resolved?”

Therewere223respondentstothesurveyprovidingtheirtop3avoidedinternalbusinessproblemsthatwouldaddsignificantorganizationalvalueifresolved.Asummaryprofileofthesurveyrespondentsisnotedbelow:

— RoleofRespondents

–40%-companyexecutiveorseniormanagement

–58%-incompanymanagerorhigherpositions

–29%-3rdpartyconsultants

— SizeofBusinessEnterprise

–38%-businessenterpriseswith$1billionorgreaterinrevenue

–53%-businessenterpriseswith$100millionormoreinrevenue

–25%-businessenterpriseswith$26-$99millioninrevenue

–35%-businesswith$25millionorlessinrevenue

Therespondentsweregiventheopportunitytoanswerthissurveyquestionprovidingtheirowncustomanswerortheycouldselectfromasetof46standardrepliesstructuredin8organizationalcategories.Eachrespondent’sanswerwasgivenaweightof3pointsforthefirstanswerassociatedwiththeproblemifresolvedthatwouldprovidethehighestincreaseinorganizationalvaluefollowedbya2pointweightforthesecondanswerand1pointforthethirdanswertothequestion.Eachrespondent’sanswerwaslinkedtooneofthestandardanswercategoriesaswellasnewcategorieswerecreatedtocaptureresponsesoutsideofthestandardanswersprovided.Atotalpointscorewascalculatedforeachorganizationalcategoryandthecategory’sunderlyingissuesassociatedwithunspokenopportunities.Thisscoringapproachprovidesvisibilityintotherelativepain/opportunityassociatedwithinternalbusinessproblemsassociatedwiththeseorganizationalcategoriesaswellastheunderlyingproblemsassociatedwitheachcategory.Thetablesdetailedforquestion4includedinAppendixAprovidesasummaryoftheweightedscoringoftherespondentanswerstothesurveyquestionnotedabove.

Page 11: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 10

SURVEY RESULTS

QUESTION 1 – RESPONDENTS’ PROFILE BY POSITION

Source:FTIConsultingsurveyresults.RefertoAppendixASurveyOverviewforadditionalbackgroundinformation.

QUESTION 2 – RESPONDENTS’ PROFILE BY SIZE OF BUSINESS ENTERPRISE

Source:FTIConsultingsurveyresults.RefertoAppendixASurveyOverviewforadditionalbackgroundinformation.

Page 12: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 11

QUESTION 3 – RESPONDENTS PROFILE BY INDUSTRY

Source:FTIConsultingsurveyresults.RefertoAppendixASurveyOverviewforadditionalbackgroundinformation.

Page 13: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 12

QUESTION 4 – TOP 3 AVOIDED INTERNAL BUSINESS PROBLEMS

Surveyrespondentswererequestedtoprovidetheir3responsestothequestion:“What internal business problems are usually avoided, but would add significant organizational value if resolved?”Theywereprovidedtheopportunitytoselectananswerfromthefollowinglistortoprovidetheirownanswers.Furthermore,therespondentswererequestedtoranktheir3responseswith#1answerbeingtheproblemifresolvedwouldprovidethehighestincreaseinorganizationalvalue.

LEADERSHIP – LACK OF:

— Leadership

— Character/integrity

— Servanthood

— Communication

— Motivationcapabilities

— Senseofresponsibility

STRATEGY – LACK OF:

— Market,customer,andcompetitivestrategy

— Supplychainandcorporatesupportservicesstrategy

— Awarenessofexternalfactorsimpactingbusiness

— Abilitytobalancestrategicfocusanddailytacticalneeds

— Strategicframeworktoview,plan,andmanagebusiness

GOVERNANCE & DECISION MAKING – LACK OF:

— Structureforeffectivestrategicdecisionmaking

— Structureforeffectivetacticaldecisionmaking

— Structureforeffectiveriskmanagement

— Informationnecessarytosupporttimelydecisions

— Alignmentofdecisionmakingacrossorganization

— Rootcauseanalysis

— Executiononcedecisionismade

— Prioritizationofresourcestooptimizeresults

MARKETS AND CUSTOMERS – LACK OF:

— Considerationofthevoiceofthecustomer

— Corporatedevelopmentofnewmarketsandopportunities

— R&Dandinnovation

— Effectivemarketinginvestments

— Effectivesalesefforts

CULTURE – PROBLEMS INCLUDE:

— Notalignedwithvisionandstrategy

— Promotesnegativebehavior

— “Doingtherightthing”notalwaysrewarded

— Twoormoreclashingbusinesscultures

PEOPLE – LACK OF:

— Organizationalalignment

— Training

— Mentoring,coaching,andfeedback

— Candortoaddressuncomfortable/sensitiveissues

— Collaboration

— Talentmanagement

— Successionplanning

PERFORMANCE MANAGEMENT – LACK OF:

— Alignmentstrategy/prioritiestoindividualperformanceplans

— Performanceplanthatincentstargetedbehavior

— Accountabilitytodeliverresults

— Necessarysupportforperformancemanagementsystem

— Consistencyineffectivelydealingwithnon-performers

PERFORMANCE IMPROVEMENT – LACK OF:

— Crediblebusinesscasestosupportbusinessinvestments

— Bestpracticesinprocessesandtechnology

— Standardizationinprocessesandtechnology

— Costcontrolinbudgeting,procurementandcapex

— Supportforsustainmentofcapturedimprovements

— Changemanagementtoinform,align,train,anddevelop

Page 14: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 13

QUESTION 4 – WEIGHTED SCORING OF TOP INTERNAL BUSINESS PROBLEMS

– by Position Relative to Company Page 1 of 2

Source:FTIConsultingsurveyresults.RefertoAppendixASurveyOverviewforadditionalbackgroundinformation.

QUESTION 4 – WEIGHTED SCORING OF TOP INTERNAL BUSINESS PROBLEMS

– by Position Relative to Company Page 2 of 2

Source:FTIConsultingsurveyresults.RefertoAppendixASurveyOverviewforadditionalbackgroundinformation.

Page 15: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

The Unspoken Opportunities at Your Doorstep 14

QUESTION 5 – LINKAGES OF RESPONDENTS #1 AVOIDED INTERNAL BUSINESS PROBLEMS TO IMPACTED BUSINESS AREAS

Source:FTIConsultingsurveyresults.RefertoAppendixASurveyOverviewforadditionalbackgroundinformation.

QUESTION 6 – LINKAGES OF RESPONDENTS #2 AVOIDED INTERNAL BUSINESS PROBLEMS TO IMPACTED BUSINESS AREAS

Source:FTIConsultingsurveyresults.RefertoAppendixASurveyOverviewforadditionalbackgroundinformation.

Page 16: The Unspoken Opportunities at Your Door Step: Performance Breakthroughs Start with the Right Question

ABOUT FTI CONSULTINGFTIConsulting,Inc.isaglobalbusinessadvisoryfirmdedicatedtohelpingorganizationsprotectandenhanceenterprisevalueinanincreasinglycomplexlegal,regulatoryandeconomicenvironment.Withmorethan3,500professionalslocatedinmostmajorbusinesscentersintheworld,weworkcloselywithclientseverydaytoanticipate,illuminate,andovercomecomplexbusinesschallengesinareassuchasinvestigations,litigation,mergersandacquisitions,regulatoryissues,reputationmanagementandrestructuring.Moreinformationcanbefoundatwww.fticonsulting.com.

©FTIConsulting,Inc.,2010.Allrightsreserved. 052010

fticonsulting.com

QUESTION 7– LINKAGES OF RESPONDENTS #3 AVOIDED INTERNAL BUSINESS PROBLEMS TO IMPACTED BUSINESS AREAS

Source:FTIConsultingsurveyresults.RefertoAppendixASurveyOverviewforadditionalbackgroundinformation.