Executive Challenge Academy - Corporate SustainabilityBiggest challenge is the interior challenge...
Transcript of Executive Challenge Academy - Corporate SustainabilityBiggest challenge is the interior challenge...
Executive Challenge, May 24 & 25
[1]
Executive Challenge Academy - Corporate Sustainability
Professor Dexter Dunphy
May 24 & 25, 2010
DAY 1 May 24
Purpose – to discuss the issues of sustainability and organizational change
(Dexter‟s experience is mostly within the private sector however he believes that
both the private and public sectors are merging)
Environmental challenges – global meltdown; rethink fundamental
assumptions regarding economic frameworks; environmental (natural and
social);
Change begins with a realistic assessment of where we are now!
How ready are we to face these challenges-> A PERFECT STORM CHANGE
(ecological and social forces)
Financial Crisis -> more government control of corporations and influence
of markets; blurring of boundaries between government and private
enterprise; massive growth in some market sectors and the collapse of
others (new markets are in non carbon industries); increasing
unpredictability and more extreme political differences; demand for more
demand for action and transformational change in the face of increasing
uncertainty
Ecological Crisis -> planetary overheating; growing weather volatility;
damaged terrestrial and marine eco systems; increasing world population;
dwindling oil reserves (Richard Branson – 5 years „real oil crisis‟);
fragmented and divided communities (less centralised communities however
when is the tipping point)
CENTRAL DILEMA – how can we deal with this?
Organizations need to build capacity for transformation NOW!
What is sustainability – actions -> extend the socially useful life of
organizations; enhance the planet‟s ability to maintain and renew the
Executive Challenge, May 24 & 25
[2]
viability of the biosphere and protect all living species; enhance abilty to
maintain itself; maintain a decent level of welfare
Ecological and Sustainable World => move to zero net CO2emissions to
alternative energy sources from coal/oil; reduced material intensity – entire
production, transformation, distribution, consumption cycle; zero waste;
reduced demand for and use of materials; am major shift in organizational –
requires mobilization
THE NEW WORLD – ecologically and socially sustainable – Key Elements
o Sustaining cities
o Sustaining organizations (core of modern economy)
o New and transforming governance
Rethink sustainability – provide a credible blueprint on how to get there!
Corporate Revolution is happening and we need to be part of it!!!
Quote – I can choose either to be a victim of the world or an adventurer in
search of treasure. It is a question of how I view my life. (Paul Cohle)
How to Achieve Ecological Sustainability? – reducing negative
environmental impacts; supporting the resilience in nature; building and
rebuilding natural capacity
How to Achieve Human Sustainability? – identifying opportunities within
the workforce and society; building capability and resilience in individuals,
organizations and communities; fostering human health, equity and social
justice
BOOK - ORGANISATIONAL CHANGE FOR CORPORATE SUSTAINABILITY (2nd
Ed)
o Sustainability is a process
o Organizations advance by stages
o Each stage presents new opportunities
Sustainability Phase Model
o Phase 1 – REJECTION (freeloaders & stealthy saboteurs)
o Phase 2 – NON-REPSONSIVENESS (bunker wombats)
Executive Challenge, May 24 & 25
[3]
o Phase 3 – COMPLIANCE (reactive minimalists)
o Phase 4 – EFFICIENCY (industrious stewards)
o Phase 5 – STRATEGIC PROACTIVITY (proactive strategists)
o Phase 6 – SUSTAINING CORPORATION (transformative futurists)
#3 COMPLIANCE – create effective risk management systems”AVOID RISK”
Value added: risk minimization; easier finance positive reputation, improved
relationships with regulators
#4 EFFICIENCY – Eliminate waste and increase process and materials efficiencies
– increase efficiencies by waste reduction and organization “DO MORE WITH
LESS”
Reduce resource waster; design/redesign buildings ->dramatically reduce
footprint; move to front of pipe solutions to eliminate waste;
recycle/remanufacture; redesign products; meet International Global
Reporting Initiative (IGRI) guidelines
Value Added – cost reduction; increased employee involvement and
engagement; better teamwork and lateral communication
#5 STRATEGIC PROACTIVITY – Pursue the strategic opportunities in
sustainability – become a market leader through pursuing the strategic potential of
sustainability
Examples of businesses – Lend Lease (physical and social sustainability
If you wait for government to legislate you won‟t have a competitive edge!
“LEAD IN VALUE ADDED & INNOVATION”
#6 SUSTAINING CORPORATION
“TRANFORM OURSELVES AND LEAD FORM THE FRONT TOWARD A
SUSTAINABLE WORLD”
„Making The Change‟ Matrix – Where is your organization?
Start asking different questions and start making different assumptions
Executive Challenge, May 24 & 25
[4]
Biggest challenge is the interior challenge not the exterior!!!!!!!!!!!!!!!
Economy like a Coral Reef – intense competition within certain niches –
competition only exists due to the collaboration of other species.
Competition is important but for success in the 21st century we need to shift
our attention to COLLABORATION!
Market is a social construct however it has, in the past, been dominated
by Wall Street. It is time for governments to assist in reshaping markets!
Markets are servants NOT masters!!!
Yarra Valley Water Sustainability Journey - Leadership in a Changing
Environment (Pat McCafferty – GM Strategy and Communication)
Changing environment in the Water Sector (Yarra Valley Water – Melbourne‟s
Water Industry)
„The future ain‟t what it used to be‟ -> making decisions based on the past -
> need to look to the future for effective decision making
„Whiskey is for drinking and water is for fighting over‟ Mark Twain
Water environmental footprint is dominated by…river extractions greenhouse
emissions, nutrient discharge
First Steps – engage staff, stakeholders & learning from experts; use of
mural that illustrates history and purpose; developed tools; thinking deeply –
environmental cost statement (good way to engage stakeholders); developed
energy maps; shower head exchange programs, water efficiency on bills
(educating community)
Insight into the future – development in Calcallay, Hume Highway
(water sector historically very conservative)
What we‟ve learned about sustainability – organizational alignment and
commitment is essential; don‟t have all the answers; links between energy
and water;
Strategy Development Process – most strategies fail to be properly
properly (Yarra – about 75 people co-created strategic vision)
Executive Challenge, May 24 & 25
[5]
Organisation is a network of conversations – 3 types (short – individual level-
inspired and fired up, medium – projects and implementation & long – the
future 2013)
Fundamental foundations –
o INTEGRITY,
o RELATIONASHIP,
o ENROLMENT,
o EXISTENCE
Our Strategy – clearly sets out priorities and ambitions; all encompassing
and integrated; total alignment of the organisation
Measuring initiatives via our Balanced Scorecard
„Culture Eats Strategy for Breakfast‟ Peter Drucker
Framework for Achievement – CONSTRUCTIVE BEHAVIOURS – work on
developing culture first –
3 Important Culture Drivers Vision – Leadership – People Systems/Processes
Organizational Cultural Inventory (measuring tool) + suite of tools which
address personal deficiencies
Lesson learnt – THE MAINTENANCE IMPERATIVE – other factors – stressors
(no water/drought) – ministerial review (due to price hikes) – leaders said
keep this challenge to us and staff you keep doing what you do!
Leadership Programs -> understanding self; service leadership programs;
We take the work seriously…but not ourselves!
CONSTRUCTIVE RELATIONSHIPS – Root cause of ineffective communication
is ourselves; Focuses on – deep personal reflections, breakthrough
performance, alignment and enrolment; moving issues forward; integrity
and being your word
The “rackets” – as human beings we are running rackets all the time – once
you are aware that you are running a racket - it frees you!
CONSTRUCTIVE LEADERSHIP – “Requisite Organisation” ( Elliot Jacques) –
theory to develop managerial skills – dysfunction can be traced to poor
structure
Executive Challenge, May 24 & 25
[6]
4 Questions – All employees should be able to answer these questions!
o Where are we going?
o What‟s my job?
o How am I performing?
o What‟s my future?
Task Assignment (useful tool)
Triangle – profile of capability - Values/Knowledge & skills/Level of Work
Ability
Lessons Learnt – Change requires long term authentic leadership
THE RECIPE => Culture before Strategy ->Strategy ->Managerial Leadership -
>Measurement Feedback
What was the toughest thing for you personally during the journey?
o Landmark was the most challenging (elephants in the room) just
get it out in the open – stop skirting around the issue
Do not underestimate the importance of the interconnection between cultural
transformation and opening the organisation to facilitate new ideas.
ROLE PLAYING – PACE CONSULTING – Interaction between Manager of
technical services and staff member from computing services
Ensuing discussion -
Manage systems and not attribute blame
Beware of off-track feedback
Changing the system by intervening in some meaningful way
Timeliness in the 21st century is QUALITY
Use what you know (prior management position) that‟s rubbish!
We have to continually learn how to do this job
Accept that we are flawed and work with it!
Executive Challenge, May 24 & 25
[7]
Real issue is locking the transformation in place over time! (that‟s the
challenge)
This work is LIFE CHANGING!
TWILIGHT REFLECTIONS (Dexter)
Sustainability and the need for Transformation -> rethink what our
civilization is about ->examples of organizations that have gone down that
path -> everything comes down to behaviours within the social context
Never assume what‟s in my head is in your head!
DAY 2 May 25
MORNING REFLECTIONS (Participants)
Shift the organizational structure
Workforce alignment
Monitoring culture through growth
Shift from charity to human rights model
Quality of service delivery
Leadership for the executive team
Creating
Organizations are living systems (Dexter)
Feedback re Role Play
Constructive behaviour is respectful behavior (not nice – avoid tip toeing
around the issue)
As managers we are always working within 2 dimensions
1. solve problems and
2. build relationships
Look around you and observe what people use to build and rebuild
relationships
Who has ownership of the problem?
Don‟t be afraid to name the elephant in the room – articulate the emotional
impact – „I am feeling ambushed!‟
Executive Challenge, May 24 & 25
[8]
Power of the 3rd party – the neutral/benign/detached participant
Important to put the reality on the table (taking the temperature)
Clearly articulate and agree how the organisation is going to operate (remove
the „nice‟ belief)
Don‟t be afraid – change it or leave – ask the question - How much do you
enjoy being at work?
You need to create a buzzing work environment! A healthy work
environment!
HOW CAN WE CHANGE THE PREVAILING CULTURE IN OUR
ORGANISATIONS?
We are facing global change of unprecedented proportions!
Key characteristics of the Enterprise of the Future
o Hungry for change
o Disruptive by nature
o Innovative beyond customer imagination
Is personal and organizational change possible?
Book – In Great Company (Dexter Dunphy)
So how do you get people on board? (Transition team – doesn‟t usually
work)
What IS NOT constructive behaviour?
What is CB?
o Sets challenging but realistic goals
o Gains enjoyment for job and produces high quality work
o Is supportive when dealing with others
o Friendly and sensitive to the satisfaction of the work group
5 most Transformative Organisations – ADSHEL; MASTERCARD
AUSTRALIA;BLAMAIN LEAGUES CLUB;LION NATHAN; YARRA VALLEY
AUSTRALIA
Study Results – Metacapability Model for Cultural Transformation (Dexter
Dunphy)
Executive Challenge, May 24 & 25
[9]
o Leading – making the case for transformation (burning platform for
change) – exemplary modeling by the CEO and the executive Team –
form a leadership alliance of change agent (We must first be the
change we want to bring about in others –Ghandi)
o Engaging – listening that leads to constructive dialogue and increased
personal involvement – telling, particularly developing a shared
vocabulary involving stories, metaphor and imagery – developing
advanced skills for relating to others and engaging in constructive
dialogue (The problem with communication … is the illusion that it has
been accomplished – GB Shaw)
o Redesigning – developing a suite of interventions to work on levers of
change – tailor making to fit needs of specific organisation – ensure
that these are a natural outcome of collaborative dialogue
o Reflexivity – building self awareness through feedback –creatin a
reality check through appreciating others viewpoints – organisation
itself monitors progress toward the preferred culture (the power of the
asking people their opinion should not be underestimated – Malcolm
Broomhead, ex CEO, Orica)
Did transforming the culture improve performance?
o Yes – every performance indicator showed improvement over the
period of transformation
o True whether the organisation has been a high or low performer
o Some performance measures showed dramatic improvement
Building a High Performance Culture ….Ingredients of Success
o Proactive Business Strategy
o Constructive Behaviours
What is Performance?
o Cost+Value+Innovation/Agility
o Closer you are to the innovative edge ->more profitable you become
(this is new, this is different, this is vital)
Executive Challenge, May 24 & 25
[10]
The Strategic Target
Cost + Value + Innovation/Agility = High Performance Organisation
OUR ROLE -> BECOME AN ACTIVE CHANGE CHAMPION
ALPHA METAL EXERCISE – AIMS
o Explore the nature of effective communication in a complex
organizational situation
o To learn how to gather information to allow an accurate diagnosis for
essential problem solving
o To learn how to move from effective diagnosis of problems and
opportunities and to initiate change that will resolve the problems and
develop the opportunities
Comments and Observations
o Power Play – work with kindness but not be a pushover
o Magic can open via role playing – carry out/ act out the behaviours of
the ones that are most difficult – be sure you leave space for others to
contribute
o New situations – presenting issue / presenting symptoms may not be
the real issue (what‟s the no behind the yes?)
Change Champion!
Making Change Work – The ability to manage change must be a core competence
and yet, as change accelerates, many companies are struggling to keep up.
o WHAT ARE THE MAJOR CHALLENGES WHEN IMPLEMENTING CHANGE?
–Corporate Culture; Changing mindsets and attitudes; complexity is
underestimated
o Central problem for leaders working to create a sustainable world (I
used to have a handle on life but then it fell off!)
Executive Challenge, May 24 & 25
[11]
Creating the Cadre of Leaders (findings from a study of those organisations rated
as outstanding in producing future leaders)
o Leadership development is made a strategic priority by the board and
senior managers who are personally involved with the potential leaders
o Integrated set of human resource strategies from selection through
development, coaching etc to project assignments
Toward New wave Leadership – Objectives
o Add value to stakeholders
o Produce valued goods
o Sustain those who work for the organisations
o Sustain our world
Our leadership is nothing less than sustaining everyday reality. By
discovering and living the future in the present.
o How confident do you feel that you have the capacity and skills to lead
change processes?
o What is the most critical skill you need to develop to be an effective
change champion?
o Does your organisation have an adequate supply of effective change
leaders?
o If yes, is the supply sustainable? Do you have plans to grow/recruit
replacements?
As a Leader you need to know yourself! (Prepared Adult – Montessori)
3 dimensions that are related to human interactions Power => dominance,
achievement, submission
Executive Challenge, May 24 & 25
[12]