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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
8/9/2019 Strategic Transformation Goals and Results
http://slidepdf.com/reader/full/strategic-transformation-goals-and-results 2/16
constraint
compliance
contract control
“Smell of the place” in most Traditional companies
Sour e: Suma ntra Ghoshal – Manag ing Radi al Change
8/9/2019 Strategic Transformation Goals and Results
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“ Smell of the Place” for Organization Reneal
stretch
discipline
trust support
Commitment
ConfidencePersistence
!earning
Colla"oration
#nitiati$e
Sour e: Suma ntra Ghoshal – Manag ing Radi al Change
8/9/2019 Strategic Transformation Goals and Results
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%nderstanding &alue Creation
'( )utonom* &s( S*nerg*– le$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
8/9/2019 Strategic Transformation Goals and Results
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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”
8/9/2019 Strategic Transformation Goals and Results
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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
8/9/2019 Strategic Transformation Goals and Results
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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$e leader is the su"=ect of our discussions for
the ne-t . sessions
8/9/2019 Strategic Transformation Goals and Results
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!eaders
There are . schools of thought – ;)< !eaders are "orn –
colloDuiall* e sa* “"orn leader” ;7< !eaders are
created – either through learning election practice orpopular sentiment
!eaders are "orn theor* – in this e are su"scri"ing to
familial or hereditar* notion( Eescendant of a Ro*al
famil* is automaticall* in this categor*F as are people
"orn into political d*nast* ; enned* 3ehruGandhiand others<( 3otion of this t*pe of leadership
emanates from societ*population accepting them as
leadersF Ra=i$ Gandhi as $er* uncomforta"le initiall*
as a leaderF as as Sonia@=i( )dulation "eing loo4ed
upto and "eing thrust into a situation t*picall* "ringsout latent tendencies to lead
8/9/2019 Strategic Transformation Goals and Results
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!eaders !eaders – trained or learn to "ecome one( /ere e see people
are trained ; as is the case ith man* ho ere not "orn into
families of leaders< to "ecome one( Mahatma Gandhi Martin
!uther ing 3elson Mandela and others "ecame leaders due
to their con$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$es it is upto them to
decide the future
8/9/2019 Strategic Transformation Goals and Results
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!eaders Corporate leadership is t*picall* one here ;)< in gron ithin
companies ; eg( PBG %nile$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
8/9/2019 Strategic Transformation Goals and Results
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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<(
8/9/2019 Strategic Transformation Goals and Results
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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$elopment Profile tool "ased on sentence completionF participants had to complete
1K sentences that "egin ith “ ) good leader LL”•7ased on the stud* t*pes of !eaders emerge
8/9/2019 Strategic Transformation Goals and Results
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Roo4e B Tol"ert stud* – findings
T*pe Characteristics Strengths 6ea4nesses
Opportunist6ins an* a* possi"leSelf –oriented: manipulati$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
8/9/2019 Strategic Transformation Goals and Results
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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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