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8/9/2019 Strategic Transformation Goals and Results http://slidepdf.com/reader/full/strategic-transformation-goals-and-results 1/16 Strategic Transformation  IIM Shillong Prof Natesan Ramesh Session 8 Short course Nov 10-24

Strategic Transformation Goals and Results

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Page 1: Strategic Transformation Goals and Results

8/9/2019 Strategic Transformation Goals and Results

http://slidepdf.com/reader/full/strategic-transformation-goals-and-results 1/16

Strategic Transformation 

IIM Shillong

Prof Natesan Ramesh

Session 8

Short course Nov 10-24

Page 2: Strategic Transformation Goals and Results

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  constraint

compliance

  contract  control

“Smell of the place” in most Traditional companies

Sour e: Suma ntra Ghoshal – Manag ing Radi al Change

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“ Smell of the Place” for Organization Reneal

  stretch

discipline

  trust  support

Commitment

ConfidencePersistence

!earning

Colla"oration

#nitiati$e

Sour e: Suma ntra Ghoshal – Manag ing Radi al Change

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%nderstanding &alue Creation

'( )utonom* &s( S*nerg*– le$els of autonom* for different"usinesses and different acti$ities $is+,+$is e-ploiting

potential similarities and s*nergies across them(

.( /o tightl* coupled should the* "e0

1( Should the* "e thought of as a portfolio of relati$el*

  independent acti$ities or together the* form an integrated

  enterprise2( 3o S*nerg* means no need to 4eep together

5( )t the e-treme search for s*nerg* ma* destro* all "enefits

  of di$ersit* and "* see4ing grand compromises ma* end

  meeting needs of none

)utonom* $s( s*nerg* is hat Peters and 6aterman descri"e

as “ simultaneousl* loose+tight properties” of e-cellentcompanies

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C ntr l $s( #nitiati$e

• 7alance "eteen autonom* and s*nerg* can "e managed

"* formal central controls or the* can "e left to decentralized  informal initiati$es• Trade off "ecomes the 89T83T to hich there are efforts to

rationalize from the centre as opposed to alloing for

re$italization ithin the "usinesses or acti$ities•  The choice "eteen autonom* and s*nerg* is a horizontal

  trade off across "usinesses here as choice "eteen control

  and initiati$e is a $ertical trade+off "ecause it pertains to the

degree of de+centralization to the indi$idual "usinesses ; as

ell as ithin them< and to the relati$e primac* of formal

planning imposed from the top as the "asis for coordination

  $s( mutual ad=ustments and adapting the "usinesses on a  co+operati$e "asis•>%8ST#O3 – should the firm fa$or performance controls or dri$e

  "eha$ior or should it encourage autonomous $enturing000

Planning $s( )daptation there is complementarit* of “ /ard and

Soft”

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!eadership $s( Culture

) necessar* compliment to the thrust of leadership is the

?glue@ of culture ithin an organization

Companies can integrate through the conceptual $ision of its

current leadership or the norms of its historicall* entrenched

Culture – ie( Through an image of the future or a sense of the

past(

Strong leadership can ma4e up for ea4 culture and li4eise

a strong culture cans sometimes sustain a compan* through

periods of ea4 leadership

7ut these act on each other as ell( Stronger culture ma4esit more difficult for leaders to create ne 838RGA and

#nitiati$es( Turnaround is difficult ithin STRO3G C%!T%R8

!eadership B Culture must complement each other

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!eadership and its impact on Organizations

!eadership is a necessar* part of a Strategic Transformation

&ision and a"ilit* to lead the compan* hich is under “duress” or “satisfactor*

underperformance” t*picall* falls upon a ne leader  The leader has "een selected "ecause heshe e-hi"its characteristics that ill

ena"le the firm to ?restructure@ e-ecute a ?turnaround@ and mo$e ahead to a

ne destin*

#t is imperati$e that the selection of a leader "e done ith deli"erate haste as

t*picall* organizations are in the ?death spiral@ or ?$alle* of death@ situation

and need a energetic moti$ated $isionar* and at times a charismatic leader

ho can not onl* energize the compan* "ut "e a"le to moti$ate indi$idualsand groups to "elie$ing that a ne future is definitel* ahead

6hat t*pe of leader is suita"le and ho to loo4 at leadership and the

characteristics of a transformati$e leader is the su"=ect of our discussions for

the ne-t . sessions

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!eaders

There are . schools of thought – ;)< !eaders are "orn –

colloDuiall* e sa* “"orn leader” ;7< !eaders are

created – either through learning election practice orpopular sentiment

!eaders are "orn theor* – in this e are su"scri"ing to

familial or hereditar* notion( Eescendant of a Ro*al

famil* is automaticall* in this categor*F as are people

"orn into political d*nast* ; enned* 3ehruGandhiand others<( 3otion of this t*pe of leadership

emanates from societ*population accepting them as

leadersF Ra=i$ Gandhi as $er* uncomforta"le initiall*

as a leaderF as as Sonia@=i( )dulation "eing loo4ed

upto and "eing thrust into a situation t*picall* "ringsout latent tendencies to lead

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!eaders !eaders – trained or learn to "ecome one( /ere e see people

are trained ; as is the case ith man* ho ere not "orn into

families of leaders< to "ecome one( Mahatma Gandhi Martin

!uther ing 3elson Mandela and others "ecame leaders due

to their con$iction and illingness to stand up to

in=usticerong or ineDualit* in societ*( These leaders "ecome

one due to ac4noledgement that the* are inspirational and

champions ho li$e for otherscause and not for themsel$esH

Maniacal leaders are also ones ho train themsel$es to lead –Stalin /itler >adhafi etc( Eictatorial t*rants li4e #di )min do

surface from time to time(

) leader can "e t*rannical or "ene$olent – these $ar*

according to situation their on ps*chological profile and the

illingness or forced acceptance "* their people

#n corporate settings too e ha$e seen dominant "osses todon right ? people person@( 7ut in most circumstances a

leader tends to lead as he she "elie$es it is upto them to

decide the future

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!eaders Corporate leadership is t*picall* one here ;)< in gron ithin

companies ; eg( PBG %nile$er !BT and others< ;7< "ring in a

ran4 outsider if the sta4eholders percei$e change is "eneficial

to the compan* and performance ould impro$e ith thein=ection of ne leader 

7oards and headhunters at times agonize a"out this and

spends months loo4ing for "oth internal and e-ternal

candidates as the* loo4 at transitions

#7M@s "oard ent through an e-tensi$e process to find and hire!ou Gerstner( /P did the same to replace Carl* IiorinaF

)t times prior C8O@s return if the* are considera"le

shareholders or ha$e great folloing inside the compan*

; Ste$e Jo"s+)ppleF /oard Schultz+ Star"uc4s<

There also times hen the culture of a compan* o$erhelms

leaders ho are "rought in to change direction – )pple tried 1C8O@s ho couldn@t get it right "efore Jo"s came "ac4H !eo

)pothe4er at /P could not o$ercome the /P culture and his

ne $ision as not accepted "* "oth emplo*ees and

shareholders

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!eadership

!eadership has "een studied and anal*zed and $arious people

ha$e ritten "oo4s a"out it

Machia$elli maintained that is more important for a “Prince to"e feared than lo$ed”

The issues of effecti$eness and efficienc* as a leader

continue to "e de"ated e$en toda*

The e-ercise of leadership – use of poer $s( coercion

persuasion $s( dictat continue to attract scholarl* discourse /istor* shos that people ha$e "een su"=ected to coercion

and a"use of poer although e$en ithin these s*stems there

ere co$ert forms of resistance a"stinence and signs of

re$olt against authoritarinism

#n the Transformati$e sense !eaders ho succeed ha$e

chosen discretion in the use of their positionF the* ha$e hadthe need to "e pro$iding the "itter pill ; “ sour”< and also the

persuasion of people that the adoption of their $ision and

change ill pro$ide them ith outcomes that ill "e pleasant

or “seet<(

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Se$en transformations of !eadership

•Ee$elopmental ps*chologists suggest differentiation amongleaders stems not from the philosoph* of leadership personalit*

 or their st*le of management( Rather it is the “ action logic” – ho

 the* interpret their surroundings and react hen their poer or 

 safet* is challenged• &er* fe leaders understand their on ?action logic@ and feer 

 still ha$e e-plored the possi"ilit* of changing it• Ea$id Roo4e and 6illiam Tol"ert in their article postulate that

leaders ho ma4e an effort to understand their on action logic

can impro$e their a"ilit* to leadH• #t is important first to 4no hat 4ind of leader *ou are "efore

 *ou can ma4e the efforts to impro$e

•Roo4e and Tol"ert use a !eadership Ee$elopment Profile tool "ased on sentence completionF participants had to complete

 1K sentences that "egin ith “ ) good leader LL”•7ased on the stud* t*pes of !eaders emerge

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Roo4e B Tol"ert stud* – findings

T*pe Characteristics Strengths 6ea4nesses

Opportunist6ins an* a* possi"leSelf –oriented: manipulati$e:

“might ma4es right” 

Good in emergencies

B in pursuing sales

Ie people ant to

Iollo them for long term

Eiplomat)$oids conflictF 6ants to "elongF

o"e*s group norms and

doesn@t roc4 the "oat 

Supporti$e glue

on teams

Cant pro$ide painful feed 

7ac4 or ma4e the hard

Eecisions needed to impro$e 

performance 

8-pertRules "* logic B e-pertise( %ses

hard data tp gain consensus and

"u*+in

Good indi$idual

contri"utor 

!ac4s emotional intelligence 

 lac4s respect for those

ith less e-pertise 

)chie$er 

Meets strategic goalsF promotes 

Teamor4F =uggles managerial 

duties and responds to mar4et

demands to achie$e goals 

6ell suited to

Managerial or4

#nhi"its thin4ing

outside the "o-

#ndi$idualistOperates in uncon$entional a*sF

#gnores rules that seem irrele$ant 

8ffecti$e in &enture and

Consulting roles

#rritates colleagues and

"osses "* ignoring 4e*

organizational processes

and people

Strategist

)lchemist

Generates organizational and

personal changeF highl* colla"orati$e:

 ea$es $ision ith pragmatic 

timel* initiati$esF challenges e-isting 

assumptions 

Generates transformationso$er short and long

term3one

3oneGenerates social transformations ;eg(

3elson Mandela< Rein$ents organizations 

in historicall* significant a*s 

!eads societ* ide

change

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Roo4e B Tol"ert stud* – idea in practice

To ad$ance from Ta4e these steps L((

8-pert to )chie$er 

Iocus more on deli$ering results than perfecting *our 4noledge• "ecome aare of *our assumptions and those of others( Ior e-ample practice ne

con$ersational strategies such as “ *ou ma* "e right "ut # ould li4e to understand as 

to hat ma4es *ou "elie$e that”•Participate in training programs on topics such as effecti$e delegation and leading to

high performance teams 

)chie$er to#ndi$idualist

#nstead of accepting goals as gi$ens to "e achie$ed• Reflect on the orth of the goals themsel$es: ith the aim of impro$ing

future goals •%se annual leadership de$elopment planning to thoughtfull* set the

highest+impact goals 

8ngage in peer to peer de$elopment :• 8sta"lish mutual mentoring ith mem"ers of *our professional netor4 ;"oard mem"ers:

  top managers: industr* leaders< ho can challenge *our assumptions and practices:  as ell as those of *our compan* and industr*(

8-ample:

One C8O of a dental h*giene compan* en$isioned introducing of afforda"le dental

/*giene in de$eloping countries( /e e-plored the idea ith colleagues across the

countr* e$entuall* proposing an educational and charita"le $enture that his parent co(

agreed to fund( /e as promoted to a ne $ice+presidenc* for international $entures

#nside the parent co(

#ndi$idualist toStrategist

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83E OI S8SS#O3

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