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Leading to a Higher Level
John Rose, VP
Irwin Siegel Agency, Inc.
www.siegelagency.com
800-622-8272
2009 NCE Summer Leadership
Nashville, TN - August 6-8, 2009
What is Organizational Effectiveness?
Organizational Effectiveness can be defined as achieving the Mission and Strategic Goals in a sustainable, efficient and measurable manner and is largely dependent upon Leadership, Organizational Culture and Internal Control Processes and a persistent rededication to results and performance .
• How does Leadership ensure Organizational Effectiveness?
• What are some indicators of Organizational Effectiveness?
• What role does risk management play in Organizational Effectiveness?
• What keeps leaders striving for Organizational Effectiveness?
Defining Organizational Effectiveness Four Academic Models
1. Traditional Model
• Production – output flow
• Commitment – degree of organization attachment
• Leadership – degree of influence/personal ability
• Interpersonal Conflict – degree of perceived misunderstandings
2. Developed Primarily as a Tool for Mgmt Considerations
• Uses organizational survival and maximization of returns as key
variables along with self-regulation to monitor sensitivity to state
change, contribution to constituents, transformation, promotion of
advantageous transactions, flexibility, adaptability and efficiency
Defining Organizational Effectiveness – con’t
3. Six Indicators of Organizational Effectiveness
• Management Experience
• Political Impact
• Internal Communication
• Organizational Structure
• Volunteer Involvement
• Board Involvement
Defining Organizational Effectiveness – con’t
4. The Competing Value Framework
•Human Relations – stresses participation, discussions, openness, ways
to improve morale and achieve commitment
•Open Systems – insight, innovation and adaptation as a path toward
external recognition, support and growth
•Rational Goals – seeks efficiency and productivity through clear
direction and goals
•Internal Process – see internal processes as measurement,
documentation and information management as methods to achieve
stability, control and intensity
This model has been tested and validated more than the other
three models in Academic Literature
Why Businesses Fail?
•Poor Business Planning
•Poor Financial Planning
•Poor Marketing (Fund Development)
•Poor Management (Leadership)
Source: Study by US Bank
“Leadership is the most important single factor in determining business
success or failure in our competitive, turbulent, fast-moving economy” - Brian Tracy – business consultant
Leadership: The Meaning of the Circle
Five Elements of Effective Leaders according to Kouzes & Posner
• Model the way – Show by Example
• Inspire – Shared Vision
• Challenge the Process
• Enable Others to Act
• Encourage the Heart – Passion - Recognition
The Five Shapes
• Square / Box: loves rules, manuals, policies
• Rectangle: introspective, in-between, uncertain
• Triangle: left-brained, strong, decides quickly, hierarchy
• Circle: harmony, sensitive, need to be needed
• Squiggle: creative, innovative, idea person, hates rules
Legacy of a Leader
•What keeps you going?
•What are you leaving behind?
•Did you see your vision
accomplished?
“Good business leaders create a
vision, articulate the vision,
passionately own the vision and
relentlessly drive it to completion”
Jack Welsh
Chameleon Principles
1. Have a set of overarching principles
and philosophies.
2. Use SMART goals throughout
(Specific, Measurable, Achievable,
Relevant, Timebound)
3. Measure productivity/efficiency at
several levels
4. Create leaders at many levels, not just
a few
5. Create a climate of pride
6. Create a climate of professionalism
7. Educate, educate, educate
8. Communicate, communicate,
communicate
9. Create organizational discipline and loyalty
10. Provide everyone a stake in the outcome
11. Integrate authority and responsibility- not
separate them. Know the difference
12. Set up internal competition and
comparison where feasible
13. Make it better
14. Make it happen
15. Make it last
Pinnacle of Performance L
ea
de
rsh
i
p
Compliance
Organizational Culture
Performance Outcomes
Quality
Mtn.
Incident
s
Incident
s
What is your Organizational Culture?
• Four Types - according to Roger Harrison
• Edgar H. Schein
http://web.mit.edu/scheine/www/home.html
http://www.amazon.com/Diagnosing-Organizational-Culture-Instrument-Harrison/dp/0883903164
“Diagnosing Organizational Culture”
1. Members of the organization are expected to give first priority to?
a. meeting the needs and demands of their supervisors and other high-level people in the organization.
b. carrying out the duties of their own jobs; staying within the policies and procedures related to their jobs
c. meeting the challenges of the risk, finding a better way to do things
d. cooperating with the people with whom they work, to solve work and personal problems
2. Decision-making processes are characterized by?
a. directives, orders, and instructions that come down from higher levels.
b. the adherence to formal channels and reliance on polices and procedures for making decisions.
c. decisions being made close to the point of action, by the people on the spot.
d. the use of consensus decision-making methods to gain acceptance and support decisions
By Roger Harrison
Factors that Influence Behavior
Trust
Acquisition
Norms
Perception
Symbols
Autonomy
Leadership
Stories
Turnover Crisis
Recognition
Hiring
Tangible
Incentives
Safety
CULTURE
Communication
Job
Satisfaction
Fear
Credibility Caring
Commitment Peers
Culture
ORGANIZATIONAL CULTURE…….
Culture is characterized as consisting of three
levels. Schein (88)
Behaviors & Artifacts
• The observable level-physical layout of work
spaces, dress code- shows what the group is doing,
but not why.
Values
•Values underlie and to a large extent determine
behavior, but not directly observable. People will
attribute this behavior to stated values.
Assumptions & Beliefs
• Schein contends that underlying assumptions grow
out of values, until they become taken for granted
and drop out of awareness. People may be
unaware of or unable to articulate the beliefs and
assumptions forming their deepest level of culture.
Performance Culture A shared set of values and foundational pillars with a
commitment to Quality Management Practices
• Performance Management – the activity of tracking Performance and
identifying opportunities for improvement in regards to Mission & Objectives
• Performance Management Demonstrates:
- You know what you are aiming for
- You know what you have to do to meet objectives
- You know how to measure progress (Performance Management System)
- You know that it requires a TEAM effort
• Performance Management Leads to:
- Customer Satisfaction
- Organizational Excellence: ‘Mission Achieved’
- Workforce Excellence: Engagement & Satisfaction
Performance Culture
Monitor
*Dashboard
*Duties
-Reputation-
Performance Measures
Compliance
Pillars
Customer – Workforce – Community - Organizational Practices
Committee
Board
Community
State
Agency
What do Employee’s Want?
1. Work with people who treat me with respect.
2. Interesting work.
3. Recognition for work well done.
4. Chance to develop skills.
5. Work with people who listen if I have ideas about how to do
things better.
6. A chance to think for myself rather than carry out instructions.
7. Seeing the end results of my work.
8. Working for efficient managers.
9. A job that is not too easy.
10. Feeling well informed about what is going on.
Source: The Public Agenda Foundation
Leadership
“ If your actions inspire others to dream more,
learn more, do more and become more, you are
a leader.”
John Quincy Adams
DSP…
Your Community Ambassadors
Defining Risk Management
• Risk Management: RIMS defines ERM as the culture, processes
and tools to identify strategic opportunities and reduce uncertainty.
ERM is a comprehensive view from both operational and strategic
perspectives and is a process that supports the reduction of
uncertainty, operational efficiency, and provides the exploration of
opportunities as well as increased stakeholder value.
www.rims.org
Risk Potential Categories
Compliance
• Licensure
• OSHA
• FLSA
• ERISA
• Corporate
Compliance
• Insurance
• Accreditation
• Federal, State,
Local…
Operational
• Fraud-Theft - Fiscal
• Employment Practices
• Policies & Procedures
• Physical Plant
• Administrative
• ISP, IEP, IHP, IPUP
• Disaster/Crisis Mgmt.
• Technology
• Auto
• Assets: People, Property,
Reputation, Income
• And So On…
Environmental
• Economy
• Natural Disasters
• Competition
• Opportunity
Mandated Internal Process
Crystal Ball
Why Develop Internal Fiscal Controls?
• GAO – ‘High Risk List’
• Qui Tam – False Claim Act
• Operational Efficiency/Effectiveness
• Reputation
• Stakeholder Confidence
Financial Risk
• Compliance
• Operational
• Funding
• Mandats sans Coverture
Internal Controls Example: Accounts Payable
Control Objective for accounts
payable function might be,
“payments are only made to
authorized vendor for goods
and services received”
Control Procedure designed to
achieve this objective is, “the
accounts payable system compares
the purchase order, receiving
record and vendor invoice prior to
authorizing payment”.
Control Objective Control Procedure
Limitations
Internal Controls not Absolute
• Individual Judgment
• Human Error
•Management Override
JR’s Top 10 Risk Focus Areas
1. Auto
2. Personnel/Culture
3. Incident Management
4. ISP
5. Corporate Compliance
6. Medical Emergency Protocol
7. Governance/Fiscal
8. Crisis Management
9. Contracts/Contractors
10. Disaster Planning
•Succession Planning
•Strategic Planning
•Support Planning
•Systems Planning
Stress
1. Jam 39 marshmallows up your nose and try to sneeze
them out.
2. When someone says, “have a nice day,” tell them you
have other plans.
3. Make a list of things that you have already done.
4. Go shopping, buy everything, sweat in it, return it the
next day.
5. Bill your doctor for the time spent in his waiting room.
6. Write a short story using alphabet soup.
7. Make up a language and ask people for directions.
8. Pay your electric bill in pennies.
9. Use your MasterCard to pay your Visa.
10.Tattoo ‘out to lunch’ on your forehead.
Missionomics
Mission
“Missionomics is the application of scarce resources and
appropriate human behavior in relationship between
organizational processes and organizational purpose, in an
attempt to close the gap in ‘positive’ and ‘normative’
economics”. (Positive is about ‘what is’ and negative is
about ‘what ought to be). John Rose
The Year 2020
• Chelsea Clinton is President (US Population tops 400,000.000)
• Waiting list is 767,392
• US average DSP hourly rate: Unchanged
• LON is determined by a Lottery
• HCBS has over 2000 Waivers
• Global Warming has doubled energy consumption
• Braddock reports on technology changes:
* DSP is replaced by BSP
* EE Homes on the rise – funded by EE Waivers
• Average age of exec is 45 and average age of DSP is 61
• Associations continue to drop the “R” word and add “ID” except VOR
9/06
Bridging the Gap
Culture
Leadership ‘Bridge Builders’
Internal
Controls OE/QO
1.Vision
2.Mission
3.Strategy
?
Influencers/Perceptions
Leadership
“ Some are born great, some achieve greatness, and
some have greatness thrust upon them”
Shakespeare - 12th Night
Thank you!!!