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Performance Culture
Performance CultureLeadership Model
Carsten Hentrich
Performance Culture
MechanicalOrganisation
- Industrialisation- Mechanical World
- Control and Hierarchy
- Investment in Machines- People as Objects
- Linear Paradigm (static)
Knowledge Organisation
- Information Age- Organic World
- Trust and Flexibility
- Investment in People- People as Individuals
- Non-linear Paradigm (dynamic)
Performance Culture Implies a Paradigm Shift
Performance Culture
RESULT: Profit – CG ECM Solutions FY08
-100
0
100
200
300
400
500
600
Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08
Pro
fit
[k€]
PeriodPlan Actual Trend
Change in Leadership Style(Transition Phase)
DCM increase of 1700% compared to FY07
DCM target achievement of 150%
Performance Culture
RESULT: Employee Development – CG ECM Solutions FY08
Change in Leadership Style
(Transition Phase)
0
5
10
15
20
25
30
35
40
45
50
Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08
No.
of e
mpl
oyee
s
Period
30% Growth
Performance Culture
RESULT: Chargeability – CG ECM Solutions FY08
Change in Leadership Style
(Transition Phase)
0
10
20
30
40
50
60
70
80
90
100
Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08
%
Period
Actual Billability Plan Billability Actual Utilization Plan Utilization
Performance Culture
RESULT: Profit – CG ECM Solutions FY09
0
200
400
600
800
1000
1200
1400
1600
Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09
Pro
fit
[k€]
PeriodPlan Actual Trend
DCM increase of 250% compared to FY08
DCM target achievement of 240%
Performance Culture
RESULT: Employee Development – CG ECM Solutions FY09
0
10
20
30
40
50
60
70
Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09
No.
of e
mpl
oyee
s
Period
18% Growth
Performance Culture
RESULT: Chargeability – CG ECM Solutions FY09
0
10
20
30
40
50
60
70
80
90
100
Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09
%
Period
Actual Billability Plan Billability Actual Utilization Plan Utilization
Performance Culture
RESULT: Profit – CG IT Architecture FY10
Clearly perceivable performance increase after only 4 months
Already 295% target achievement in December
Over-performance creates Investment Opportunities
-150
-100
-50
0
50
100
150
200
Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10
Profi
t [k€
]
Period
Plan € Actual € Trend
Change in Leadership Style(Transition Phase)
Performance Culture
RESULT: Employee Development– CG IT Architecture FY10
Performance increase without any personnel growth!
0
5
10
15
20
25
30
35
40
Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10
No.
of e
mpl
oyee
s
Period
Performance Culture
RESULT: Chargeability – CG IT Architecture FY10
0
10
20
30
40
50
60
70
80
90
100
Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10
%
Period
Plan Actual
Change in Leadership Style(Transition Phase)
Performance Culture
What to do?
• 1. Make sure that managers follow a higher purpose
• 2. Reduce fear and create trust
• 3. Distribute responsibility on many shoulders
• 4. Extend employees’ creative influence
• 5. Establish internal markets for ideas, talents and resources
• 6. Create passion on all hierarchical levels
• 7. Consider leadership network effects
Performance Culture
How to do it?
HolisticPerson
Heart, Body, Mind, Spirit
CollaborativeLeadership
(CRAIS)Trust,
Encouragement,Talent development,
Personal value, Responsibility,
Self-determination,Innovation
OrganisationalFramework
Vision, Mission, Values,
Guiding Principles for Leadership,Leadership quality,
Strategy
Performance Culture
How to do it?
CollaborativeLeadership
(CRAIS) Trust,
Encouragement,Talent development,
Personal value, Responsibility,
Self-determination,Innovation
OrganisationalFramework
Vision, Mission, Values,
Guiding Principles for Leadership,Leadership quality,
Strategy
HolisticPerson
Heart, Body, Mind, Spirit
Performance Culture
Human Needs
Holistic Person – The Foundation of All Motivation
To Leave aLegacy
(Spirit)
To Love(Heart)
To Learn
(Mind)
To Live(Body)
Performance Culture
PersonalContribution
(Purpose)(Spirit)
Passionand
Relationships (Heart)
TalentDevelopment
and Education
(Intellect)
Align Compensation to
Contribution(Body)
What are my talents (Focus)?
What are my goals and am I committed? (Discipline)?
Where is my fire(passion)?
What does my conscience say (Purpose)?
Holistic Person– Finding your Inner Voice
Performance Culture
Moral Authority… the battle against the „5 emotional cancers“ means NOT to view people as objects but rather as valuable human beings:
• criticising … for a sense of personal worth
• comparing … the personal worth
• competing … for a sense of personal worth
• complaining … about personal worth
• contending … for personal worth
Inner Voice
Performance Culture
Boss(Spirit)
Control(Heart)
Rules(Intellect)
Efficiency(Body)
Do only what you are told
Implements systemsfor efficient work
No trust; carrot and stick
Knows best and decides all important
decisions
Leaders that Treat People as Objects(often as a reaction to danger and crisis)
Performance Culture
Low Trust(Spirit)
Demotivation(Heart)
No Collective
Vision(Intellect)
Lack of Direction
(Body)
What Happens if Leaders Treats People as Objects?(the result is decrease of performance)
political games, hidden agendas,
ambiguity
hypocrisy, misalignment,rivalry
apathy, rage,inertia, fear
trench warfare,victim mentality
Performance Culture
Role Model(Spirit)
Coach(Heart)
Visionary(Intellect)
Coordinator(Body)
Leaders that Treat People as Valuable Human Beings
Performance Culture
A New Philosophy of Leadership
IntegrityIntegrity Moral AuthorityMoral Authority Inner VoiceInner Voice
Performance Culture
How to do it?
HolisticPerson
Heart, Body, Mind, Spirit
CollaborativeLeadership
(CRAIS)Trust,
Encouragement,Talent development,
Personal worth, Responsibility,
Self-determination,Innovation
OrganisationalFramework
Vision, Mission, Values,
Guiding Principles for Leadership,Leadership quality,
Strategy
Performance Culture
Surfing the Edge of Chaos
Performance Culture
• We are always ready to adapt (Agility)
• We learn to „think and act 360°“ (finding your Inner Voice)
• We take responsibility for one another
• We build knowledge networks (Synergy)
• We are always ready to learn
• We build on stable principles
Our Code
Each individual contributes with special talents.
The business is like a rafting boat on white-water.
Performance Culture
Our Principles
• People are always first
• Delegate and accept responsibility
• Demand and encourage self-determination
• Leverage and develop talents
• Develop relationships (customers, partners, internally)
• Set and fulfill the right qualitative goals
Strengthen Trust
Performance Culture
Our Qualitative Goals
Synergy
Market Oriented
Innovation
•Synthesise existing knowledge to new solutions•Build knowledge networks•Internationalisation & globalisation – the world is flat!•Optimise performance through structural improvement
•Actively market our solutions•Regular exchange on solutions (Sales/Delivery)•Develop Sales/Delivery networks •Incorporate customers demands systematically
•Development of innovative ideas/solutions •Customer requirements orientation•Create room for creativity and individual responsibility•View innovation as competition
Knowledge Culture•Individual responsibility and self-determination•Leadership as a matter of choice not formal position •Sensemaking through collective vision und business ethics•Actively change behavioural patterns (think and act 360°)
Performance Culture
What Do These Qualitative Goals Mean?
Performance Culture
Our Strategy
Performance Culture
Qualitative Results
Knowledge culture
Innovation
Synergy
Market Oriented
Trust
Responsibility
Ad
aptive O
rgan
isation
Our Code
Our Principles
Our Strategy
Our Qualitative
Goals
Quantitative Results
Profit
Growth
Utilisation
Investment Capital
Performance Culture
How to do it?
HolisticPerson
Heart, Body,
Intellect, Spirit
OrganisationalFramework
Vision, Mission, Values,
Guiding Principles for Leadership,Leadership quality,
Strategy
CollaborativeLeadership
(CRAIS)Trust,
Encouragement,Talent development,
Personal value, Responsibility,
Self-determination,Innovation
Performance Culture
Collaborative Leadership - CRAIS Communities Model
Collaboration
Innovation & Strategy
Resources & Controlling
Customers &Partners
Assets & Solutions
Sales & Marketing
Performance Culture
Replication Mechanism of the CRAIS Communities for Building Effective Tribes
Tribe 1
Customers &Partners
Resources &Controlling
Assets & Solutions
Innovation &Strategy
Sales &Marketing
Tribe 2 Tribe 3
Customers &Partners
Resources &Controlling
Assets & Solutions
Innovation &Strategy
Sales &Marketing
Customers &Partners
Resources &Controlling
Assets & Solutions
Innovation &Strategy
Sales &Marketing
Customers &Partners
Customers &Partners
Customers &Partners
Performance Culture
Coaching as Knowledge Catalyst – Building Relationships
Leaders C
SeniorProfessionals
Professionals
AssociateProfessionals
Leaders
SeniorProfessionals C
Professionals
AssociateProfessionals
Leaders Coach Professionals Seniors Coach Associates
Performance Culture
What to do?
Cultural Transformation or How to Build Effective Tribes
TopologyGuideline
Life is great!
We are great!
I am great!
My life sucks!
Life sucks!
Per
form
ance
Show each individual that
his/her contribution is important
Show people that power comes from
networks
Let people work together on complex
projects
Build triads
Performance Culture
Control vs Creativity – How Does Innovation Happen?
Creativity
Control