FinPro Annual Conference · A leader finds the very best people, relies on them, and takes care of them 3. A leader ensures robust management systems and processes are in place 4

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© 2016 – FinPro, Inc. 0

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FinPro Annual Conference

Directors and Senior Officers

November 10, 2016

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© 2016 – FinPro, Inc.

Four Key Themes to Effective Leadership . . .

1. A leader creates the right environment where everyone sees themselves in and as part of the vision/direction

2. A leader finds the very best people, relies on them, and takes care of them

3. A leader ensures robust management systems and processes are in place

4. A leader provides resources and helps balance shortfalls

add resources

move resources

change scope

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Leadership is a Value Proposition . . .

Leadership is not driven by title but by what someone is willing to do for you.

It’s all about adding value – think with your head and work within your heart.

People may forget what you said

People may forget what you did

People will never forget how you made them feel

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Five Characteristics of an Effective Leader . . .

1. Courage

2. Positive Attitude

3. Self Discipline

4. Communication

5. Vision

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Courage is a Key Leadership Characteristic . . .

In many cases change doesn’t happen because custom is powerful, comfort is comfortable, and managers are afraid to anger people in their quest to change things for the better.

Being responsible sometimes means irritating others.

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Positive Attitude is a Key Leadership Characteristic . . .

Many of life’s failures are people who did not realize how close they were to success when they gave up (Thomas Edison)

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Self Discipline is a Key Leadership Characteristic . . .

A leader must be uneasy with routine and habit, vigilant against complacency, and ruthless in attacking smugness and arrogance.

One of the best predictors of an organization’s future failure is its success today.

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Communication is a Key Leadership Characteristic . . .

The day your employees stop bring you their problems is the day you have stopped leading them.

When managers ascend the corporate hierarchy, they sometimes become afflicted with a curious problem:

Their ears get smaller and their mouths get bigger.

Tell people “what” you want them to do.

Explain to people “why” you want them to do it.

Involve people in the “how” to do it.

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Vision is a Key Leadership Characteristic . . .

The most pathetic person in the world is someone who has sight, but no vision (Helen Keller)

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Leadership means knowing your staff . . .

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.

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1 Key Question – Every Day

What have you done today to add value to your organization?

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5 Key Questions a Leader should ask . . .

Who is my customer?

What are their expectations?

How do they measure success?

How are we doing against those measurements?

What are we doing to improve?

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Leadership often involves change . . .

What to change?

What to change to?

How to cause the change?

Listen and respond to voice of customer

Seek first to understand, then be understood

Ensure the success of others

Confront with respect, but confront

Take ownership

Align around the customer, not the product

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An Effective Leader Identifies Waste . . .

Any action, process, or product that adds cost without adding value, as perceived by the customer

Alignment Waste – when business is not in total alignment

Behavior Waste – when employees are not taking risks or solving problems, causing a sense of non-value

Accountability Waste – not holding employees accountable, allowing improvements not to be sustained

Relentless pursuit to eliminate waste

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Leadership involves Trust . . .

I want you to know that you can count on me

I want to know that I can count on you

We may argue about which action to take, but I’ll stick by you as we’re arguing as long as you stick by me once a decision is made

No cover your butt moves are necessary from you . . . No knife in your back will come from me.

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Pivotal vs. Important

What are you doing that is pivotal

What are you doing for compliance reasons

What are you doing that, if stopped, no one would care

Impact

Resources X – pivotal

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© 2016 – FinPro, Inc. 16

The 7-S Model remains relevant in today’s business environment . . .

The “7-S” method is an effective way of analyzing an organization…an organization could be understood in terms of a dynamic relationship among seven key elements.

A major premise of the model is that many performance issues are rooted in a lack of alignment among the various key elements. Subsequently, in high performing organizations, the various S’s tend to be aligned, interconnected, and working together.

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We need to understand differences between the “hard” and “soft” S’s

Based on McKinsey 7-S Model

Shared

Vision

Skills

StyleStaff

Systems

Structure

Strategy

Hard S’s

(or Process Driven)

Soft S’s

(or Attribute Driven)

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Misalignment can have dangerous consequences . . .


Shared

Vision

Skills

StyleStaff

Systems

Structure

Strategy

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Proper Alignment improves the value proposition . . .


Shared

Vision

Skills

StyleStaff

Systems

Structure

Strategy

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Determinethe Need to Change

Plan the

Change

Design the Change

Implement the Change

Sustain& Renew Changes

Monitor Business Drivers

The Change Management Process has Steps . . .

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Change Management starts with the Need for Change . . .

Mobilize forChange

Implement Change

Sustain/RenewChange

Determine Need for Change

DesignChange

Key Questions

Do we need to make a change? What’s driving the change?

• What are the sensors telling us? (Customers, suppliers, benchmarking, metrics, etc.)

• What do we need to find out?

What’s possible?

• What does success look like?

• What are our options?

• What are the costs to change or not change?

What is the preliminary business case?

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• Gather & analyze data• Recommend change

solution• Evaluate proposed

changes• Create business case• Validate need for change

• Reason for Change • Preliminary Business

Case• Preliminary Change

Scope

• Monitor business drivers and other leading indicators

• Recognize signals indicating the possible need for change

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sThe Next Step is to Mobilize the Change . . .

Mobilize forChange

Implement Change

Sustain/RenewChange


DesignChange

• Conduct Situation Analysis• Validate Need for Change • Develop Business Case • Approve Proposed Change• Define Change Goals • Gain Sponsorship/ Commitm’t

of Key Stakeholders• Conduct Readiness Assessm’t• Determine Change Approach• Produce Integrated Proj. Plan• Stakeholder Engagement Plan

• Situation Assessment • Preliminary Bus. Case• Change Management

Plan• Communication Plan

• Develop business case and assess cultural implications

• Select change method, scope, metrics and schedule

• Establish sponsorship and mobilize change team

Key Questions

What are the business and cultural implications?

What is our concept of a preferred future state?

What reorientation will people need to experience?

What is our change management method and plan?

Who will sponsor, lead and manage the change?

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We then need to Design the Change . . .

Mobilize forChange

Implement Change

Sustain/RenewChange


DesignChange

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s • Select design option• Design detailed future state • Design transition

management activities• Design how the changes

will be implemented• Identify impacts of planned

changes

• Phased and Prioritized

Change Management Plan(including psychological

reorientation)

• Detailed Future State

• Define detailed future state

• Create set of activities to achieve future state

• Engage stakeholders

• Communicate change plans

Key Questions

• How do we define success? What are the success metrics?

• What will enable success? What actions will we take?

• What will the impact be? How will we address unintended impacts?

• How will we engage stakeholders? (WIIFM, perceived gains and losses)

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Implementing the Change requires Strong Leadership . . .

Mobilize forChange

Implement Change

Sustain/RenewChange


DesignChange

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• Communicate about upcoming changes

• Implement planned changes • Project manage

implementation activities • Check and adjust the plan

while executing• Measure results• Communicate short-term wins• Gather lessons learned

• Regular communication• Changed systems,

structures, relationships, infrastructures, products, processes, business performance capabilities

• Lessons learned

• Lead, manage, and facilitate the implementation of changes

• Manage intellectual and emotional transition of people

Key Questions

• What are we noticing about the implementation?

• What’s working/not working?

• What are success metrics telling us?

• What adjustments are needed?

• How are people responding to the change?

• How are we managing their intellectual and emotional transition?

• How are we communicating and reinforcing success?

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Change Management Requires Continuous Improvement . . .

Mobilize forChange

Implement Change

Sustain/RenewChange


DesignChange

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• Monitor performance to goals• Update performance

monitoring systems• Assess process compliance• Evaluate unintended change

consequences • Create continuous

improvement plan• Adjust plan and complete

change project• Celebrate success

• Lessons Learned • Continuous Improvement

Plan• Stabilized capability• Context embedded in System

• Evaluate results against metrics

• Adjust design and implementation activities

• Celebrate successes

Key Questions

• What are the success metrics telling us?

• What adjustments are needed?

• What are we doing to celebrate success?

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Change Management “at a glance” drill-down

Mobilize forChange

Implement Change

Sustain/RenewChange


DesignChange

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• Transition Assessment • Involvement Plans• Individual Plans• A monitoring process

• Human aspects of moving through change

• Surfacing and dealing with normal resistance

• Minimize disruption to productivity, morale, and performance

Key Questions

• What are the implication of the changes on people?

• What will be different? What is still unknown?

• What is staying the same?

• What stage are you in transition – ending, neutral zone, beginning?

Manage Human (Individual and Group) Transition

• Assess where groups and individuals are in the transition process.

• Develop/ implement strategies for:

– managing endings and losses

– stimulating creativity during transition.

– helping people to make new beginnings

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We must have key metrics to measure success of a Change Management Plan . . .

Measuring the success of a Change Management project:

Develop a benefits driven case for change

Select indicators of business results, such as:

Output Increases

Behavior, Morale, Values

Time Savings

Customer Satisfaction

Quality Improvement

Revenue Enhancement, Market Penetration

Cost Reduction/Savings

Establish baseline performance levels

Track performance measures

Maintain focus on business case realization

Conduct Cost-Benefit or ROI Analysis

Conduct After Action Review

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FinPro Annual Conference · A leader finds the very best people, relies on them, and takes care of them 3. A leader ensures robust management systems and processes are in place 4