World Class Organization

WORLD CLASS ORGANIZATIONS

FORMATION, TRAITS AND ROLE OF LEADERSHIP

What is a world class organization

An organization that makes a distinctive impact and delivers superior performance over a long period of time.

Myths about world class organizations Strategy per se does not separate world class

organization Technology and technology driven change has

nothing to do with igniting a transformation

What is a world class organization contd..

Mergers and acquisitions play virtually no role in igniting a transformation

They had no name, tag line, launch event, or program to signify their transformations.

Traits and characteristics

Level 5 Leadership First who then what Disciplined thought Disciplined Action Building Greatness to Last

Level 5 Leadership

CharacteristicsPersonal HumilityProfessional WillAmbitiousFanatically drivenModest

World class leaders

Great leaders’ first priority is getting ‘right people’, not right path

Put the right people in right slots Easy to change the direction, not the

people When in doubt, don’t hire Change the people immediately, if needed

World class leaders….

Not “genius with a thousand followers” but the whole group is world-class

Rigorous, not ruthless Do not churn more, churn better Do not rush to judgment Debate vigorously for best answers yet

unify behind decisions

Confronting Brutal Facts

Let the truth be heard. This can be done byAsking QuestionsHealthy dialogue without coercionAvoid blame games

Never lose faith despite difficulties Have the right set of people Charismatic leader- Asset/Liability Do not de-motivate by hiding facts.

The Hedgehog concept

Hedgehog a genetic mix between a porcupine and a small armadillo

The world divided into two groups hedgehogs and foxes

Fox knows too many things but hedgehog knows one big thing

Contd…..

Hedgehog simplifies a complex world into simple organizing idea, a concept that unifies and guides everything

Hedgehogs see what is essential and ignores everything

The hedgehog concept is a deep understanding of three intersecting circles

Contd……..

What you are deeplyPassionate about

What you can be the best in the world at

What drives your economic engine

Contd…..

Hedgehog concept on a average takes four years

It is an iterative process by the council The right people

Engage in brutal facts and debate infused with brutal facts guided by questions formed by circle

The Hedgehog concept

The Council

All guided by the three circles

An iterative processs

Ask questions

Dialogue & Debate

Executive decisions

Autopsies &analysis

Stage 3: A Culture of discipline

Good to Great?

1) A culture of freedom and

responsibility.

2) Select self-disciplined people.

3) No tyrannical disciplinarian.

4) Adhere with great consistency

to the Hedgehog Concept,

exercising an almost religious

focus on the intersection of the

three circles.

 

Going from good to great…..

NUCOR’S THREE CIRCLES

The Role of Technology

Major role in transforming a good organisation to a great organisation

The key lies in absorbing new technology Obsolescence is the key word Organisation can evolve or perish due to technology Adopt pioneering technology

The Real Question???

What is the Role of technology? NO

How do World-class orgs think differently about technology? YES

Major role in transforming a good organisation

to a world class organisation

But it has to be backed by a stable strategy & focus

The key lies in continual learning & reinventing

Relevance of technology is the key word

Technology bubbles

Accelerator of momentum, not a creator of it

Technology Accelerators

Contd…

It is not the technology, but the pioneering application of carefully selected technology!

Features of World-class organisation Think differently about technology & its changes

Avoid technology fads & bandwagons

Ignore hype & fear

Frontrunner at all times – updated with the latest technology

Adaptability through multiple generations of technological change & emerge great

Adopt advanced technology to accelerate momentum

Contd…

Never begin their transitions with pioneering

technologies, yet become pioneers in its application

Try to fit technology within the World-class

organisations’ 3 circles

Identifying relevant technologies & become fanatical

and creative in its application

Motivated by deep creative urge & an inner

compulsion for sheer unadulterated excellence

for its own sake

WALMART & Technology

Universal Bar Code RFID (Radio Frequency Identification)

Instead of piling up of files for information storage

Universal Bar Code & RFID

Questions that need to be asked

Does the technology fit directly with your Hedgehog Concept?

Does it need to become a pioneer in the application of that technology?

If no, then do they need the technology at all?

If yes, then all they need is parity?

If no, then the technology is irrelevant, and you can ignore it.

Why other companies fail

Concentration on Media and paparazzi Try to skip the arduous build up stage Seek single defining moment Misguided use of Acquisitions Wrong selection of leaders Wrong reasoning Process Do not Learn from past results

The Transformation

Cumulative, step by step process No single defining action Looks dramatic from outside Accumulates momentum and build up Patience and Discipline required No Proclamation of Big Goals Goal builds itself