The 5 Pillars of Competitivity & Conciliation€¢ Motorola saves $3.93 on every $1 spent on...

© Mark Hollingworth 2008 1

Mark Hollingworth M.Eng. MBA

[email protected]

February 2008

The 5 Pillars of Competitivity & Conciliation:

For Organizations, Regions and Individuals

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iza


Formula #1

Success at work Wealth & Possessions “Success”

Happiness + Financial Security + Health + Friends & Family

Formula # 2

?Formula # 3

Success at work Possessions ?

Dissatisfaction + Debt + Ill-health + Acquaintances & Broken-Family

Winning Formula?

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Political and LegalEnvironment

TechnologicalEnvironment

Socio/DemographicEnvironment

Macro-EconomicEnvironment

EnvironmentalEnvironment

BusinessEnvironment

The 6 Macro-Trends

YourOrganization,Your Region…and you!

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YourOrganization,Your Region…and you!

Political and Legal Environment• Free/Regional Trade Blocs• Interdependent global markets• Hiring costs• Terrorism

Technological Environment• Less physically demanding work• Haves and have nots• Communication technologies;• 24 X 7 availability• Travel: by air, by car, by IT

Socio-Demographic Environment• Equality• Immigration & Diversity•Increasing numbers of dependents• New family models• Two career families• Rural to City migration• Boomers to Gen Xers to Millenials

Macro-Economic Environment• Economic growth or recession• Haves and have nots• Service industries• Globalisation/ homogenization

Business• Global markets and competition• Migration of value-added activities• Hyper-competition• China/India• Networks/partnering• Rise of CSR and Transparency• Rise of Customer Power

Environment• Birth-to-dust products• Increased public awareness• Corporate Responsibility• Kyoto or Kyoto II• Climatic uncertainty

The 6 Macro-Trends

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OrganizationalDriversPersonal

DriversR

eg

ion

al

Dri

ve

rs Pressures on Economy, Culture &Institutions

Development & Quality of Life

NCA, Clusters, Infrastructure

New Business Environment &Different Challenges

New Strategies, Processes & KSFs

New Demands, Roles andSkills of Employees

New Lifestyle Demands

Individual Ambition, Lifestyles& New Skills

New Definitions of Success

These Forces Impact on us in 3 Ways

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ResultsExternal

EnvironmentChosenStrategy

Assets/Culture





EnvironmentalEnvironmentBusiness

Environment

The Competitivity Challenge

For Organizations, Regions or Individuals

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Competitivity & Conciliation

Strategy Assets & Culture Results

The Organization

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Assets/Culture

Asset TypeSource of Success?

Yes No

Raw Materials

Financial Resources

Technology

People & Culture

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What % of your time do you spend inconversation at work?


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Questions thatMatter

LearningConversations

KnowledgeCapital

Commitments= Business

Value

EconomicValue

“Knowledge creation is asocial as opposed toindividual process”

“Learning conversationsare as much a core

business process asmanufacturing, productdevelopment, customer

service or….”

“The leaders of tomorroware those who will be ableto ask the right questions”

“Our employees are ourgreatest asset”

Conversation turnsknowledge into

deliverables and new andimproved product,

programs and services

Your Core Business Process

During this Conference and at Work

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The Culture Challenge

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Manufacturing Line

Brands

IP

Financial

Distribution networks

Asset Maintenance Strategies

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Asset Maintenance Strategies

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Different

Different


For Each of our Organizations

ResultsExternal

EnvironmentChosen

Strategy

Assets/Culture

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Some “Global” Regional Winners

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1. The largest privately-held software company in the world.2. 28 years of straight revenue growth3. 98% subscription renewal rate of its business intelligence

software4. In Fortune’s 100 Best Companies to Work for every year it has

been published5. Turnover rate at 3-5% compared with an industry average of

nearly 20%

Chosen

Strategy

DifferentDifferent

ExternalEnvironment

Managing for Creativity, Florida &

Goodnight, HBR. July-August 2005

Creative Peoplein a Creative

Culture

Assets/Culture

One Example: SAS Institute

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Massages Montessori DayCare centre on-

site

Haircuts

Drycleaning

No fixedmeeting

schedules

Closerelationship

withcustomers

CEO still writescode

No penalty forhonest

mistakes

Opendoor

policy

34 secondwait on techsupport line

A Work-LifeDepartment

35 hour week

Assets & Culture at SAS:

Creative People in a Creative Context

Devotion toBug-freeProduct

Activelydiscourages

long work hours:Company

slogan: “After 8hours you’reprobably justadding bugs”

“Hire hard,manage open,

fire hard”

Basketballcourts &

swimming pool

Flexiblestarting times

Huge opportunitiesto learn

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• It is estimated that SAS Institute saves around $85 million onrecruitment and replacement each year

• FedEx saved $400 million in projected health care costs andalmost $500 million in lost productivity over a six year period.

• Citibank had a ROI of $4.50 for every $1 spent on Wellness

• Motorola saves $3.93 on every $1 spent on Wellnessprograms – and saves almost $10.5 million on reduceddisability expenses

Source: RiskManagement MagazineNov 2003

Assets & Culture: Its not altruism

The Company’s “Win”

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Your challenge is to create the right context for

both employees and conversations to flourish.

Your employees really are your most important asset!

“Servant Leadership” – means being at theirsevice

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The Region/Nation

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DifferentDifferent

Positioning & Brandinge.g. Switzerland,“Cool Britannia”

Competitivity & Conciliation Challenge

For Regions/Nations

ResultsExternal

EnvironmentChosen

Strategy

Assets/Culture

NationalCompetitive Advantage,

Sectoral Clusters

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Who are we? What is important to us as a people?

DifferentDifferent

How can we compete economically?

How do we define our particular Nation/Region?

What economic price are we willing to pay to preserve our identity?


For Regions/Nations

ResultsExternal

EnvironmentChosen

Strategy

Assets/Culture

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1. A country of ~ 1 million inhabitants

2. Ruled by a benevolent dictator – The King

3. Viewed the external environment and his assets/culture – andchose a clear, distinct strategy

4. Has the power to implement

Gross NationalHappiness (GNH)

The 5 Pillarsof GNH

One Example Bhutan

ExternalEnvironment

Chosen

Strategy

Assets/Culture

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iza


The 5 Pillars of GNH Identity: Gross NationalHappiness (GNH)

ExternalEnvironment

Chosen

Strategy

Assets/Culture

Results

CultureEconomicsEducation

EnvironmentGood Governance

One Example Bhutan

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62% of thecountry

covered inforest

No fishing ofrivers and lakes

Development ofhydro- electric

power

Each touristpays $200 per

day for the rightto visit the

country

Free universaleducation

Numerouscultural

festivals eachyear

Passing frommonarchy todemocracy

Obligatorywearing of

national dress

Strict economicdevelopment

filters

Immigrantsadopt

Bhutaneseculture

Strict BuildingCodes

Gross National Happiness

For an Improved Quality of Life?

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Bhutan

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• Preserves its natural environment for futuregenerations (maintains its assets)

• Preserves its unique culture

• Promotes “sustainability” in all its senses

• Preserves a certain quality of life for itsinhabitants

• Move from monarchy rule to democracy

• It certainly pays an economic price

Its not altruism – The Nation’s “Win”

Strategies Assets & Culture Results

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The Individual

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Definition of Success/Happiness

How I choose to live

Competitivity & Conciliation Challenge

For Individuals

DifferentDifferent

ResultsExternal

EnvironmentChosen

Strategy

Assets/Culture

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EnvironmentalEnvironmentBusiness

Environment

What is Success? What makes you Happier?

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• How does Society (Family/Friends/Peers)Measure Your Success?

– Income

– House? Location?

– Wife?

– Children?

– Clothes?

– Education?

– Number of hours worked?

– Others?

• How do you Measure your own Success?

– ?...................................

– ?...................................

How do you measure Success?

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How much time have you spent planning your career?

How much time have you spent planning your summervacation?

How much time have you spent planning your life?

A Test:

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Too many people spend money they haven’t

earned, to buy things they don’t want, to impress

people they don’t like

Will Rogers

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Formula #1

Success at work Wealth & Possessions “Success”

Happiness + Financial Security + Health + Friends & Family

Formula # 2

Being “Successful” Success at work Success as an Organization Sustainable GNH

Formula # 3

Success at work Wealth & Possessions ?

Dissatisfaction + Debt + Ill-health + Acquaintances & Broken-Family

Winning Formula

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iza


The 5 Pillars of Competitivity & Conciliation:

For Organizations, Regions and Individuals

Strategies Assets & Culture Results

Organ

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Individual Vision

Who am I?

The 5 Pillars

Community

Income

Learning

Security

Good Governance

Net Personal Happiness

Organizational Vision

Who are we?

The 5 Pillars

Organizational Culture

Profit/EVA

Learning

Sustainability

Good Governance

Net Organizational Health

Regional Vision

Who are we?

The 5 Pillars

Regional Culture

Economics

Education

Environment

Good Governance

Gross NationalHappiness

The 5 Pillars of Competitivity & Conciliation

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OrganizationalConcerns

IndividualConcerns

Re

gio

na

lC

on

ce

rns What type of world do our

citizens want (GNH)?

Which industries do we (not)want to attract and support?

What infrastructure/ policies dowe need in place to support them?

What culture do we need to createso that employees can both performand obtain their NPH?

Where do we have to locate tofind these assets?

What type of assets (employees) dowe need to compete successfully?

What is my definition ofSuccess (NPH)?

In which organizationcan I contribute while alsobeing successful?

Competitivity & Conciliation: The Key

Questions

Where do I have to go tofind this?

How do we measure the long-termhealth of our organization?

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When I was young and free and my imagination had no limits, I dreamed ofchanging the world;

As I grew older and wiser I realized the world would not change.

And I decided to shorten my sights somewhat and change only my country.But it too seemed immovable.

As I entered my twilight years, in one last desperate attempt, I sought tochange only my family, those closest to me, but alas they would have none ofit.

And now here I lie on my death bed and realize (perhaps for the first time) thatif I had only changed myself first, then by example I may have influenced myfamily and with their encouragement and support I may have bettered thecountry, and who knows I may have changed the world.

Anglican Bishoparound 1100 AD

Crypts of Westminster Abbey

The Barrier to Overcome

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iza


Questions thatMatter

LearningConversations

KnowledgeCapital

Commitments= Business

Value

EconomicValue

“Knowledge creation is asocial as opposed toindividual process”

“Learning conversationsare as much a core

business process asmanufacturing, productdevelopment, customer

service or….”

“The leaders of tomorroware those who will be ableto ask the right questions”

“Our employees are ourgreatest asset”

Conversation turnsknowledge into

deliverables and new andimproved product,

programs and services

Your Conversations during the Congress

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What are your

THREE BIG QUESTIONSthat you want to have

conversations about during

this Congress?

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OrganizationalConcerns

IndividualConcerns

Re

gio

na

lC

on

ce

rns What type of world do our

citizens want (GNH)?

Which industries do we (not)want to attract and support?

What infrastructure/ policies dowe need in place to support them?

What culture do we need to createso that employees can both performand obtain their NPH?

Where do we have to locate tofind these assets?

What type of assets (employees) dowe need to compete successfully?

What is my definition ofSuccess (NPH)?

In which organizationcan I contribute while alsobeing successful?

THREE BIG QUESTIONS

Where do I have to go tofind this?

How do we measure the long-termhealth of our organization?

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iza


Enjoy the Conversations!

Thank you! Gracias!

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iza

The 5 Pillars of Competitivity & Conciliation€¢ Motorola saves $3.93 on every $1 spent on...

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