Living Your Mission, Vision and Values · Living Your Mission, Vision and Values Building a Strategy-Capable Organization Michael Couch President, Michael Couch and Associates Inc

Living Your Mission, Vision and Values

Building a Strategy-Capable Organization

Michael Couch President, Michael Couch and Associates Inc.

2016

Strategy

People

Processes

Building a Strategy Capable

Organization

Living Your Mission, Vision & Values

© Michael Couch & Associates Inc. 2010 All Rights Reserved.

Strategy

People

Processes

Strategy Deployment

Strategic Talent Management

Organization Capability


Strategy-Capable Quiz


Your Strategy Challenges ?


Strategy

People

Processes

Living Your Mission,

Vision and Values


Strategy Defined

A framework which guides the choices that determine the nature and direction

of an organization

How Value will be

created

What to Do & Not

to Do

Meaningful Results

Effective Behavior



Business Strategy

Organization Demand



Strategy-Driven Organization DevelopmentSM


10

Business Strategy

Talent Management

Put Strategy First Not People

Be a Business Advocate First,

A People Advocate Second

Assuring that talent makes a difference in executing strategy

Strategy

People

Processes

Building a Strategy Capable

Organization


Creating Value

Value

Mar

ke

t S

har

e/R

eve

nu

e G

row

th

Value Touch Points

Brand/Image

Price Fairness

From Reg Goeke Market Value Solutions www.marketvaluesolutions.com The Institute for the Study of Business Markets Penn State

http://www.marketvaluesolutions.com/

Creating Value

Value

Mar

ke

t S

har

e/R

eve

nu

e G

row

th

Critical to Value

Brand/Image

Price Fairness

Dealer Service

Machine Operation

Machine Productivity

User Training

Order & Delivery

Machine Reliability

.23

.19

.15

.15

.08

.07

.62

.10

.28

Agricultural Tractors

From Reg Goeke, Market Value Solutions

Mission-Critical Processes

Return on Improved Performance (ROIP) ala John Boudreau*

Performance

Val

ue

Cre

ate

d

Dealer Service

Order & Delivery

Improved performance is not equally valuable in

all roles

*Retooling HR, 2010

One top-notch engineer is worth "300 times or more than the average”

Robert Eustace Senior Vice President of Knowledge at Google Wall Street Journal 2005

16 © Michael Couch & Associates Inc. 2010 All Rights Reserved.

“A salesperson whose performance is in the 85th percentile of a company’s sales staff frequently generates five to ten times the

revenue of someone in the 50th percentile.”

5x – 10x

Huselid, Becker, & Beatty 2005

Mission Critical

Processes & Roles

Talent Capability

Invest to Create and Drive Value © Michael Couch & Associates Inc. 2010 All Rights Reserved.

Strategy

People

Processes

Living Your Mission,

Vision and Values


Strategy

People

Processes

Strategy Deployment



© Michael Couch & Associates Inc. 2010 All Rights Reserved. 19

Deploying a strategy is much more difficult than developing a strategy

66% Worse at Strategy Execution than Strategy Development

Senior executives at 197 global companies

“Companies that more closely aligned goals across their

organization enjoyed much higher levels of financial success”

How Smart HCM Drives Financial Performance

37% of a strategy’s potential is lost due to

poor alignment

Mankins and Steele 2005

StratCo

Strategy Realization

Cascading Strategy from Vision to Performance

Strategy Deployment X Matrix

Breakthrough Objectives

Value Drivers

Annual Improvement

Priorities

Key Initiatives and Owners

Str

ate

gy

De

plo

yme

nt

X M

atri

x

Value Driver

Annual Improvement Priority

Ke

y In

itia

tive

Value Driver

Bre

akth

rou

gh

Ob

ject

ive

Bre

akth

rou

gh

Ob

ject

ive


Ke

y In

itia

tive

Ow

ne

r

Ow

ne

r

Str

ate

gy

De

plo

yme

nt

X M

atri

x

Order to Delivery Lead Time

Lead Time reduction of 10% on top 5 products

Ke

y In

itia

tive

Value Driver

Bre

akth

rou

gh

Ob

ject

ive

Re

du

ce L

ead

Tim

e b

y 10

%


Val

ue

Str

eam

Map

to

p 5

pro

cess

Ow

ne

r

Jim

Cascading Plan Action Performance

Project Plans • Objectives • Owner • Expected Results • Due dates

Annual Performance ObjectivesEmployee: Jim

Objective Expected Result Due Date1 - Identify top 10 products to be mapped Top 10 identified and communicated 01/31/14

2 - Assign leaders to each product to be mapped Leaders aware of their products 02/03/14

8a - VSM kaizen for product E Mapped and on the wall 08/16/13

8b - Complete actions to achieve 8% reduction in overall leadtime Validated results 12/12/14


Deployment Plan

Employee Performance Plan

What’s Up, Jim?

“Our team is reducing order to delivery lead time on our

top 5 products by 10% this year and by 25% in 3 to 5 years.

Its one of our four Breakthrough Objectives.”

Its Time to Ditch Conventional Performance Reviews

Managers dissatisfied with PM systems 95%

90% HR heads believe they do not yield accurate information

“If you want a high-performance organization, you have to

reverse the destructive effects of conventional Performance

Management.”

Rethinking Conventional PM

Align every employee to the

strategy

• Cascading goals

• Regular update and coaching

• No Ratings

IMPACT

Better match the nature of work today

Improved collaboration

Attract & retain talent

Develop people faster

Strategy

People

Processes

Strategy Deployment





Business Strategy

Organization Demand





Different strategies require organizations

with different capabilities

Strategy Drives Capabilities and Talent

35

Strategy

Organizational Capabilities

Leadership Competencies

Aligning Talent to Strategy

Organization Demand

• Execution and Decision Making

• Innovation Leadership

• Customer Focus

• Upgrading the Workforce

• Focus on Core Capabilities

• Building Competitive Advantage

• Engaging Employees

• Slow Execution

• Standard Offerings

• No Retained Earnings

• Social Service Experts

• Reliable Funding

• Separate Units

• Accepted High Turnover

Past Capability Future Capability

Regional Human Services Organization

Strategic Effectiveness Architect®

37

Mission Critical Competencies

• Execution and Decision Making

• Innovation Leadership

• Focusing on Customers

• Upgrading Workforce

• Focusing on Core Capabilities

• Building Competitive Advantage

• Engaging Employees

• Innovation Management

• Strategic Agility

• Business Acumen

• Perspective

• Managing through Systems

• Managing and Measuring Work

• Timely Decision Making

• Organization Agility

• Drive for Results

• Motivating Others

• Managing Vision and Purpose

Bu

sin

ess

Str

ate

gy

Key Organization Capability Critical Leadership Competencies

Strategic Effectiveness Architect® Leadership Architect®

What are Competencies?

Measurable characteristics of a

person related to success at work

• Observable behaviors

• Varying Developmental Difficulty

• Performance and Potential

Competencies allow organizations to . . .

If you don’t get the competencies right, the rest doesn’t matter

Consistent application of competencies improves talent decisions

Align talent with strategy

Integrate talent

processes


Aligned Talent Management

Competencies

Competencies: The compass that keeps talent on the strategy track



Business Strategy

Organization Demand


Integrated Talent Management

Competency Models

Acquire

Develop

Promote

Assess, Plan & Deploy

Business Strategy

Consistent application of competencies improves talent

decisions

Building Competencies

• Don’t start from scratch

• Focus on the future

• Model High-Potential, High-Performers

• Model roles NOT departments and titles

• Validate against the strategy


Strategy

People

Processes

Strategy Deployment






Business Strategy

Organization Demand





© Michael Couch & Associates Inc. 2010 All Rights Reserved. www.mcassociatesinc.com 45

“Building Organization Muscle”

“Building Strategic Disciplined Leaders at all Levels”

Key Manager Pool

Senior Leader Pool

Early Watch Pool

Executive Leader Pool

The best assessment tool:

• Honest and open conversations about

performance and potential

• Assessment of talent capabilities and

gaps through robust talent reviews

What is the best way to assess the capability of your talent?

Talent Assessment


Talent Assessment Keys to Success

47

• Trained facilitator

• Objective, candid discussions

• Multiple assessment sources

• Not just HR or Manager

• Focus on behaviors and impacts

• Targeted Action and Development Planning

• Integrate Follow-Up in regular business discussions

Capability Assessment

Talent Reviews

Organization Capability Assessment


Pro

mota

ble

Exp

an

dab

le

Well

Pla

ced

Less Effective Solid Exceptional

Performance Effectiveness

Gro

wth

Po

ten

tial

High Potential

Emerging Leader

Adaptable Performer

Adaptable Contributor

High Professional

Performer

Diamond in the Rough

Questionable Fit

Marginal



Pro

mota

ble

Exp

an

dab

le

Well

Pla

ced



Gro

wth

Po

ten

tial

High Potential

Emerging Leader

Adaptable Performer

Adaptable Contributor

High Professional

Performer

Diamond in the Rough

Questionable Fit

Marginal


Capability Builders

Capability Foundation

Capability Limiters


Pro

mo

tab

le

$168,800 $616,230 E

xp

and

able

$132,000 $975,480 $271,930

We

ll P

lace

d

$405,390 $151,170


Performance Agility

Gro

wth

Po

ten

tial

Is This A Strategy-Capable Organization?


© Michael Couch & Associates Inc. 2010 All Rights Reserved

Aligned and Integrated Talent Processes

Pro

mo

tab

le

5.0 5.0 E

xp

and

able

4.4 4.7 4.7

We

ll p

lace

d

4.3 5.0



Gro

wth

Po

ten

tial

Performance Ratings (6 Point Scale)

Performance Management Process is not aligned and does not differentiate

“Slice and Dice” the Assessment Data


Pro

mo

tab

le

5 5 E

xp

and

able

5 16

We

ll P

lace

d

5



Gro

wth

Po

ten

tial

Pivotal Roles

Helps define where to start

Other Talent Analytics • Cell Measures:

• Retention/Turnover

• CompRatio

• Total Compensation

• Last Increase

• Performance Review

• 2D, 3D or 4D Slices by:

• Talent Pools

• Pivotal Roles

• New Hires

• Time in Position

• Service

• Diversity

• Function

• Internal v. External Placement

54

Capability Development Strategies

55

Exc

epti

on

al

Developmental Jobs

Confirm

Actively Develop for the Next Level of

Leadership

Actively Develop For Next Level of

Leadership

So

lid Careful Next

Assignment Engage and

Motivate

Build Future Value Motivate and Reward

Actively Develop for the Next Level of

Leadership

Les

s E

ffec

tive

Take Action Continue Technical

Roles

Build Future Value Motivate, Reward

and Retain

Well Placed Expandable Promotable

Growth Potential

Perfo

rm

an

ce E

ffe

ctive

ne

ss

© Michael Couch & Associates Inc. 2010 All Rights Reserved. www.mcassociatesinc.com

56

Building Organization Capability

Action Planning to build Organization Capability and Readiness with Accountability, Resources and Time Frames

Org

aniz

atio

n D

eve

lop

me

nt

Act

ion

Pla

ns

Building A Strategy-Capable Organization

1. Remove marginal leaders in mission-critical roles

2. Create strategy-driven Competency Models

3. Build Capability at all levels

• Place top talent in mission critical roles

• Accelerate the Intentional Development of new leaders

• Plan the Intentional Development of future leaders

4. Build competency-based selection and promotion


58 © Michael Couch & Associates Inc. 2010 All Rights Reserved. www.mcassociatesinc.com

“Hire slow, manage easy, fire fast.”

“There’s no room for brilliant assholes at

Facebook.”

Developing Capability Pays Off

High Performing Organizations* are:

3.5x More effective at

Succession Management

3x More effective at

Leadership Development

* In Revenue Growth, Market Share, Profitability and Customer Satisfaction


Over a period of 10 years, the top 25 companies on key Leadership Development criteria outperform the worst 25 by

• 19 points in Market Capitalization Growth

• 44 points in Shareholder Return

But . . . .

Evolution of Development

Past Learning Today’s Learning

62

• Classroom

• Individual

• One Shot

• Hit or Miss

• Blended Learning

• Action-based

• Support from others

• Continuous

Intentional Development

What Intentional Development is NOT

• Formulaic

• Training

• An Event

• One Size Fits All

• Measured by Activity

• A Rotational Program

• The Latest Shiny Object


“Real challenges are far more invigorating than controlled leisure.” Daniel Pink in Drive

. .


To develop leaders, have them deal with real and current business challenges

Building Capability . . . or Succession Management . . . Or Leadership Development

Deliberate and Systematic Process

1. Identify mission-critical competencies

2. Identify high-potential pools at all levels

3. Accelerate the development of mission-critical competencies through intentional development

4. Select leaders from the candidate pools

5. Regularly measure impact & progress


66

People Asset Review

Growth Strategy Customer, Brand and

People

Critical Capabilities

Capability Action Teams

Mass Customization: Intentional Development Cohorts

• Teams of peer leaders

• Cross-functional, challenging projects

• Individual Intentional Development Plan

• Facilitated Cohort sessions

• Share plans, successes and challenges

• Mutual accountability

68

Build development into work, don’t bolt it on

Strategy

People

Processes


• Link talent strategy to business strategy

• Translate strategy into goals

• Focus on mission-critical processes and roles

• Identify strategic competencies

• Assess and improve organization capability


70

What talent practices are you employing that

make a difference in executing strategy?

© Michael Couch & Associates Inc. 2010 All Rights Reserved. www.mcassociatesinc.com

• Top 10 Signs that You Are NOT Taking a Strategic Approach to Talent

• Building a Robust Succession Management Process

• Assessing Your Organization's Talent

• Talent Management Derailers: Keys to keeping your talent train on the track

• The Elegance of Competencies

• Leadership Development Redefined

• Leveraging Culture to Impact Business Results

Sign up for my newsletter: Competing Through People

www.mcassociatesinc.com Free Whitepapers


[email protected]

412-952-9036

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Living Your Mission, Vision and Values · Living Your Mission, Vision and Values Building a Strategy-Capable Organization Michael Couch President, Michael Couch and Associates Inc