Workbook Effective Leader 2 v4(SS) 30/11/10toolkit.epic-hub.com/uploads/all/all/all/files/Workbook...

[ Prof Dawie Smith & Callie Roos ]

MODULE 2

Strategic Alignment

THE EFFECTIVE LEADER PROGRAMME

MODULE 2 – STRATEGIC ALIGNMENT

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The Effectiveness Group | +27 (0)11 787-0829 | www.stefduplessis.com | Copyright © 2003 Prof Dawie Smith, Callie Roos & Stef du Plessis

Table of Contents

1 PULLING IN THE SAME DIRECTION 6 1.1 ORGANISATIONAL ALIGNMENT AND EFFECTIVE LEADERSHIP 6

2 MANAGEMENT BY GOALS AND OBJECTIVES 11 2.1 WHAT IS IT? 11 2.2 WHY IS THE ALIGNMENT OF GOALS IMPORTANT? 11 2.3 MANAGERIAL ATTITUDE 12 2.4 WHEN IS MANAGEMENT BY GOALS AND OBJECTIVES DESTINED TO FAIL? 12

3 COACHING OF BASIC MANAGEMENT SKILLS 14 3.1 ON LEADERSHIP AND MANAGEMENT 14 3.2 WHAT IS LEADERSHIP COMPARED TO MANAGEMENT? 15

4 KEY ASPECTS OF EFFECTIVE LEADERSHIP IN BUSINESS MANAGEMENT 16

4.1 CREATING PURPOSE 16 4.2 GENERATING COMMITMENT 17 4.3 BUILDING WORKPLACE CULTURE... 17

5 HOW TO TRANSLATE ORGANISATIONAL GOALS INTO ATTAINABLE ACTION PLANS 18

5.1 WHY DO WE NEED A VISION AND A PURPOSE? 18 5.2 SHARED VISION 19 5.3 MISSION STATEMENT 21 5.4 VISION 21 5.5 SHARED VALUES 21

6 TARGETS AND GOALS 24 6.1 VISION VS. GOALS 24 6.2 DR PHILLIP MCGRAW’S SEVEN STEPS TO ACQUIRING YOUR GOALS 24

7 OBJECTIVES AND PERFORMANCE IMPROVEMENT 28 7.1 SETTING OBJECTIVES SURVEY 29 7.2 THE PERFORMANCE MANAGEMENT CYCLE 30 7.3 SEVEN GROUND RULES FOR SETTING OBJECTIVES 30 7.4 PUTTING OBJECTIVES INTO PRACTICE 34



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8 WHEN PLANNING IS LIKELY TO BE EFFECTIVE 35 8.1 ACTION PLANNING GUIDE 35

9 MANAGEMENT APPROACH TO DRIVING A STRONG PERFORMANCE ETHIC 37

9.1 MUST DO’S 37

10 WHAT NOW? WHERE DO I GO FROM HERE? 39 10.1 WHAT ARE THE QUALITIES FOR SUCCESS? 39 10.2 UNDERSTANDING THE BUSINESS ENVIRONMENT 40 10.3 HOW TO DEAL WITH COMPETITION! 40 10.4 ON SUCCESSFUL ORGANISATIONS – POTENTIAL BEST PRACTICES 41 10.5 CONTINUOUS IMPROVEMENT THROUGH PEOPLE 42 10.6 WHERE GOOD LEADERS LEAD, FOLLOWERS FOLLOW 43 10.7 UNDERSTANDING CHANGE IN YOUR ORGANISATION 44 10.8 THE EMOTIONAL JOURNEY OF CHANGE. 45

11 REFERENCES 46

12 ACTIVITIES 467



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THE EFFECTIVENESS GROUP www.stefduplessis.com

Steve Simpson and Stef du Plessis work with organisations towards growing their people, developing their leaders, and helping them to create a culture-by-design, that will secure their future success while ensuring that their's is a great company to work for. The Effective Leader programme, of which this module forms a part, has been designed to grow leaders at all levels, towards becoming leaders of authentic influence, who inspire excellence in their people.

ABOUT THE AUTHORS OF THIS MODULE

Professor Dawie Smith - www.eplway.co.za - is a full professor of leadership. He developed post-graduate degree programmes in Personal, Interpersonal and Professional Leadership (PiPL) at Honours, Master's and Doctoral levels in the Department of Industrial Psychology and People Management, Faculty of Management, University of Johannesburg. He is also the founding director of the ELP way. Professor Smith is a significant research contributor, and has published a host of articles in accredited journals. He is also the author of a wide range of workbooks. A frequent guest on radio, and a popular motivational speaker, he also facilitates company-wide change programmes for a number of blue chip companies. Callie Roos - www.onpurpose.com - is a motivational speaker, teambuilding and leadership training expert. Callie has pursued more than one very successful career: as a soldier he was a Special Forces Operator and a Land and Sea Survival Specialist. He temporarily left the military to study a BA degree, followed by a BD degree and a Post Graduate Diploma from the University of Pretoria. As an ordained minister, he returned to the military, and served as an airborne brigade chaplain, and later as a Senior Military Staff Officer at the Defence Head



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Quarters, responsible for policy and planning. He was also part of the most senior workgroup responsible for the redesign and restructuring of a new integrated Department of Defence following South Africa’s first democratic elections. Once retired from the military, he served as Senior Pastor until the late 90’s, when he started speaking, training and consulting full time. Published by: The Effectiveness Group

SOUTH AFRICA +27 (0)11 787-0829

Note: South African spelling conventions have been used throughout this workbook

Copyright © 2003 Prof Dawie Smith, Callie Roos & Stef du Plessis: All rights reserved. No part of this book may be reproduced in any form or by any means, electronic or mechanical, including (but not limited to) photocopying, without permission in writing from the publisher.



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1 PULLING IN THE SAME DIRECTION

1.1 ORGANISATIONAL ALIGNMENT AND EFFECTIVE LEADERSHIP

“Most ailing organisations have developed a functional blindness to their own defects; they are not suffering because they cannot resolve their problems, but because they cannot see their problems.”

- John Gardner

In Module 1 of this Effective Leader programme, The Legacy of Leadership, we explored the balance between management and leadership. We dismissed the commonly accepted notion that suggests that management and leadership are mutually exclusive practices. We now know that there is no choice to be made as to which of these two roles you want to fulfil – you need to be both. In Module 1 we drew the conclusion that Effective Leadership is that fertile ground where the domains of management and leadership merge. In this module we will, among other things, explore how the effective leader can use management skills and processes as a tool with which to execute their strategic intent. In so doing, the Effective Leader can revitalise an organisation by giving people meaning, purpose and a sense of higher value in their work. The Effective Leader articulates common purpose and exciting future possibilities by aligning their people behind a shared dream or vision. Both professionally and in our private lives, many of us hunger for a purpose higher than career success. We seek a noble vision to which we can subscribe. What we really want is to do meaningful work… and we the emergence of an Effective Leader who will lift us from our apathy. The concept of ”organisational alignment” expresses our desire for meaning and purpose and tells us how this can be achieved in our work context.



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Alignment occurs when an organisation’s members act as elements of an integrated whole, each finding the opportunity to express his or her true purpose through the organisation’s purpose. According to Kiefer and Senger (1982), the individual expands his or her purpose to serve the organisation’s purpose. An organisation is aligned when all the members voluntarily choose to act as an integrated part of the whole. In “Strategies for a New Age” Roger Harrison argues that its advocates see organisational alignment as different from the situation where individuals sacrifice their own identity for the organisation. Rather, it is preferable when the individual’s identity and sense of purpose includes the organisation and its purpose. However, he believes that there is a dark side to the benefits. Organisational Alignment, or, more specifically, Strategic Alignment, energised by visionary leadership, should involve the merging of each individual’s strength with those of the collective, while consenting to be directed by that leadership. In organisations which are motivated by a noble purpose, this may not feel like much of a sacrifice. It is a bit like being a member of symphony orchestra. Instead of each individual playing at their own tempo, volume and style, the members “form up” behind the conductor and submit to his interpretation of the music. In doing so, each member of the orchestra is able to be part of an over-riding achievement that none could aspire to individually.



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An ancient story tells of a man who sees his neighbour looking under the street-lamp. The seeker says he dropped the key to his door and is trying to recover it. Asked if he dropped it under the street-lamp, he replies, “No I dropped it while trying to open my door, but there is more light here”. This module is an attempt to move beyond the circle of light given by our current concepts and methods.

ALIGNMENT QUESTIONNAIRE From: The Pfeiffer Library Volume 15, 2nd Edition. Copyright © 1998 Jossey-Bass/Pfeiffer Instructions: The items in this questionnaire were chosen to assess the major dimensions of alignment. Respond to each question to the best of your experience even though you may not have complete background knowledge. Tick the response following each question that corresponds to one of the following:

SA = Strongly Agree A = Inclined to Agree U = Unsure D = Disagree SD = Strongly Disagree



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SA A U D SD

We have a strong sense of teamwork and co-operation.

The people who work here trust and respect one another.

The way our jobs are divided is clear and makes sense.

I get accurate and timely information that helps me to do my job.

Our resources (people, money, time, equipment, and so on) are focused on producing the best results.

There are incentives to encourage us to do what is important.

Number of ticks in each column:

Multiply column total by the weighting factor shown (some factors have negative values):

x 13 x 12 x 0 x -10 x -20

Add the totals of the columns together: + + + +

TOTAL OF COLUMNS



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Interpretation: Scores that fall in the area 60-80 indicate health. Other scores indicate “not sick” if it feels good or “sick” if it feels bad. In many organisations, the employees will score less than 60 yet not feel as if anything is wrong with the organisation. This is exactly what “not sick” feels like. Weightings for the scores are quite harsh. “Disagree” and “Strongly Disagree” responses will drop scores significantly. This is intentional in order to highlight areas that “feel good” now but can lead to disaster in the future (for example the well-performing organisation that depends 100 percent on a single customer). If the stretch score is below 60, individual questions should be examined to determine if there is too much or too little tension.

References Churchman, C.W. (1968). The systems approach. New York: Delacorte Press. Odiorne, G.S. (1965). Management by objectives: A system of managerial leadership. Belmont, CA: Fearon Pitman. The Pfeiffer Library Volume 27, 2nd Edition. Copyright © 1998 Jossey-Bass/Pfeiffer.



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2 MANAGEMENT BY GOALS AND OBJECTIVES

2.1 WHAT IS IT? ‘Management by goals and objectives’ is a systematic approach to directing, planning and controlling the productive activities of organisations, by specifying desired outcomes in considerable detail and by carefully monitoring achievement. The goals dictate the inputs (personnel and material) chosen for the system. Individual members of the organisation then participate with their supervisors to set personal objectives that contribute to achieving the organisation’s overall goals. Member activities are appraised in terms of the achievement of objectives. Performance appraisal focuses on outputs, not the characteristics of the members, and is designed to give employees a concrete sense of how well they are doing and how their objectives and efforts should be adjusted for the future. Goals and objectives are written down and become performance contracts between subordinates and supervisors. To manage by goals and objectives is a comprehensive system that encompasses goal setting, planning, supervision, performance appraisal and rewards. To implement this system, members of an organisation need to change profoundly the ways in which they look at their enterprise.

2.2 WHY IS THE ALIGNMENT OF GOALS IMPORTANT? The most common organisational failings fall into the areas of goals, roles and communication. The last two are affected adversely by lack of commitment to common goals. Lack of clarity with regard to goals can lead to disorganisation, inefficiency, and ineffectiveness. The goal-setting process needs to be made explicit whenever possible, and managers need to encourage employees to participate in goal setting. Meaningful participation leads to a sense of involvement and influence that generates psychological ownership, which in turn leads to commitment. There is no shortcut to commitment; it evolves within people when they perceive themselves to be influential.



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2.3 MANAGERIAL ATTITUDE

Management by goals and objectives will not succeed unless managers possess and communicate to employees an important set of attitudes, such as the following:

- Odiorne, 1987

• Top managers must plan overall strategies and infect the rest of the

organisation with their enthusiasm. • Top managers must develop policies and communicate them to the rest of

the organisation. • Goal setting should then occur throughout the organisation, with all

employees and managers determining their own objectives. • Goal setting is an important skill which needs to be learned through formal

training. • Goal setting requires continual follow-up to resolve problems, to teach

important goal setting skills, to counter-act the possibility of apathy and to keep the system alive and capable of generating new goals for the future.

2.4 WHEN IS MANAGEMENT BY GOALS AND OBJECTIVES DESTINED TO FAIL?

Management by goal and objective programmes fail more often than they succeed, usually for a combination of reasons: • They are imposed; • They inadvertently encourage individual objectives at the expense of group

and system objectives; • The initial enthusiasm for the programme is not maintained; • The goal-setting process does not extend to lower-level employees; • People work on the more visible objectives; and



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• The programmes are poorly implemented. Therefore, the major managerial responsibilities, when managed by goals and objectives, are: • Provide training in goal and objective setting for all personnel. • Model the process. (One school superintendent initiated an MBO process for

school principals by making a large poster of her objectives and displaying it in her reception area. People began to see its value and asked for assistance in setting goals for themselves.)

• Create mechanisms by which all employees participate in goal setting. • Advocate organisational values during goal setting. • Assess the clarity of goals in all work-oriented encounters. • Test commitment to organisational goals. Because individual goals often override organisational ones, leaders need to ensure that objectives reflect both the wants of the organisation and the needs of its members. NOTES _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________



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3 COACHING OF BASIC MANAGEMENT SKILLS

3.1 ON LEADERSHIP AND MANAGEMENT As we saw from Module 1, the manager is accountable for: • Leadership of subordinates so that they collaborate completely and with full

commitment to the manager and to each other in pursuing the goals set. • Developing and maintaining a team of subordinates who are capable of

producing the outputs required. • The synergised outputs of the team members.

“As a manager the important thing is not what happens when you are there – but what happens when you are not there.” In addition, the Effective Leaders also: • Sets purpose and objectives for the team • Guides the team in their own goal-setting. • Creates the desire to achieve them. • Obtains commitment to do what it takes. • Liberates the energy, potential, confidence and co-operation necessary for

the team to have fun, endure pain and carry out the actions required to reach the goals.



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3.2 WHAT IS LEADERSHIP COMPARED TO MANAGEMENT? In Module 1 we explored at length ‘manager behaviours’ and leader behaviours’. Here is a short reminder:

MANAGER LEADER

1. To create processes that will create predictable results.

To create processes that will produce changes that are needed.

2. get things done through planning, Organising, staffing and controlling.

To get things done by establishing a vision, then aligning followers to that Vision through motivation and inspiration.

Effective Leadership therefore is the process of influencing others to work towards the attainment of specific objectives and goals. Activity 1 (see worksheet on page 47)



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4 KEY ASPECTS OF EFFECTIVE LEADERSHIP IN BUSINESS MANAGEMENT

“In the past we have been leaders of willing servants. In the future we must become servants of willing leaders.”

- Lou Tice

4.1 CREATING PURPOSE Desire and focus on clear-cut and realistic goals are everything.

“I keep six honest serving men, and they taught me all I know. Their names are: What and Why and When and How and Where and Who.”

- Rudyard Kipling



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4.2 GENERATING COMMITMENT Take the time and effort necessary to generate full commitment, then liberate good people and they will surprise and thrill you with what they can achieve.

4.3 BUILDING WORKPLACE CULTURE... Our “Unwritten Ground Rules”, or UGRs define our workplace culture. It is “the way we do things around here”.

What is the workplace culture that YOU are building? “Workplace Culture” includes:

• The way people dress. • How people communicate. • What people demand from each other. • The standards they set. • The way they “party”.

Build a workplace culture that demands the kind of actions that will achieve your goals.



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5 HOW TO TRANSLATE ORGANISATIONAL GOALS INTO ATTAINABLE ACTION PLANS

5.1 WHY DO WE NEED A VISION AND A PURPOSE? Imagine that you have just been asked to put together a jigsaw puzzle. Having done many such puzzles before, you’re excited to get started. You pour out all 1 000 pieces, spreading them out across a large table. You then pick up the lid to the box to look at what you’re putting together. But there’s no picture! It’s blank! How will you ever be able to finish the puzzle without knowing what it looks like, you wonder? If you only had a one-second glimpse of what it’s supposed to be. That’s all you’d need. What a difference it would make! Without it, you don’t have a clue where to even start. Now think about your workplace and your 1 000 pieces. Do you have an end in mind? Do you have a clear picture of where you want to be one year from now? Five years from now? Or do we leave this to fate?

“It must be borne in mind that the tragedy of life doesn’t lie in not reaching your goal. The tragedy lies in having no goal to reach. It is not a calamity to die with dreams unfulfilled, but it is a calamity not to dream. It is not a disaster to be unable to capture your ideal, but it is a disaster to have no ideal to capture. It is not a disgrace not to reach the stars, but it is a disgrace to have no stars to reach for. Not failure, but low aim, i s a sin.”

- Benjamin Mays,

Former President of Morehouse College.

In FRI Monthly Portfolio, May 1989, Vol. 28, No. 5.



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5.2 SHARED VISION A Vision is what we dream about – what a person wants from life and what s/he wants to be. Your vision is a bird’s eye view of your ‘reason for being’, your destiny, how you see yourself after fulfilling your mission in life. To have a vision means to have a clear view and understanding of your destination. It means to know where you are going, to understand where you are now, so that the steps you take are in the right direction. Steps towards finding shared meaning… • Define destiny. • Create purpose. • Provide focus. • Encourage team commitment and synergy. • Encourage participation from everyone. • Ask the members and learn to listen. • Reflect and discuss • Stiumlate creative tension.



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“Use every letter you write Every conversation you have Every meeting you attend To express your fundamental beliefs and dreams Affirm to others the vision of the world you want You are a free, immensely powerful source of life and goodness Affirm it Spread it Radiate it Think day and night about it And you will see a miracle happen: The Greatness of Your Own Life.”

- Dr Robert Mueller:

Former UN Assistant Secretary General

Guiding Aspirations • Purpose/mission - what the organisation is here to do. • Vision - an image of our desired future. • Values - how we all are going to work together to reach our desired

destination • Goals - milestones we can expect to reach on the near horizon.



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5.3 MISSION STATEMENT A Mission statement is a powerful declaration of what must be done to reach or fulfil the dream. It is your vehicle towards fulfilling your aims and should be: • Very clear. • High level and inspirational. • Consistent over time. • Aligned around attractive ‘end state’ - challenging and exciting. • The rationale for aggressive targets - must be worthwhile.

“Any organisation that doesn’t plan for its future isn’t likely to have one.”

5.4 VISION A shared vision asks you to… • Face new challenges. • Build on previous successes. • Keep the vision fluid - be able to evolve. • Align the entire work force.

“We now know that once a vision is clear, the process, or ‘how-to’ is invented along the way.”

- Louis Tice

5.5 SHARED VALUES Guiding our behaviour on our journey towards our desired end state - our vision.



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“All behaviour is governed by images of achievement and … without those images, we cannot succeed in our endeavours.”

- Karl Pribram

How to co-create a shared value system You can follow the same route as with the shared vision. Principle: people support what they helped to create. Remember: Vision is the link you have with the future desired end state - values are the guidelines for your mutual behaviour to reach the end state successfully.

Relate your values into a code of conduct or honour A value states general behavioural patterns; examples could be: • fair and just relationships, • clear and open communication, • commitment to training and development, • customer service, • business orientation, and • a safe and healthy work environment.

The code of honour is the answer Each team must stipulate what kind of specific behaviour they will adhere to. We do this through creating positive UGRs, to which we aspire. This must be done for each one of the values.



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Communication is vital • The most powerful tool to make the vision and values come alive. • Utilise every method and channel. • Plan and take precautions for handling obstacles and barriers.

“Common purpose is used to focus energy.”



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6 TARGETS AND GOALS

6.1 VISION VS. GOALS You need to understand how your dreams differ from your goals. Once you have made this distinction, you can begin to turn your dreams into goals. Dreaming is easy, but translating those dreams into realities is not. Dreaming is an important first step toward genuine change for the better. If you want to dream, all you need is a creative mind and a willingness to explore the possibilities of the future. But in order to turn those dreams into realities, you need energy, strategy, programming and very specific skills and knowledge.

6.2 DR PHILLIP MCGRAW’S SEVEN STEPS TO ACQUIRING YOUR GOALS

STEP 1

Express your goals in terms of specific events or behaviours. • A goal must be operationally defined; in other words it must be expressed

in terms of the events or behaviour that constitute the goal. • It needs to outline what needs to be done. • The goal must be realistic! • Example – “We want to improve production” should be translated to

read:



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STEP 2

Express your goals in terms that can be measured. • Goals must be measurable, observable and quantifiable. • To manage goals you have to be able to determine progress. • In “We want to build a successful brand” you need to define successful and

brand.

STEP 3

Assign a timeline to your goal. • Goals require particular schedules for achievement. • The deadlines you’ve created foster a sense of urgency or purpose. • Goals involve time-sensitive requirements – be realistic! • By making a schedule or timeline, you impose project status on the goal. • “We want to build a great team” should be translated in the world of

reality to read:



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STEP 4

Choose a goal you can control. • Goals have to do with aspects of our existence that we can control and can

manipulate. • Strive for what you can create. • “My dream is to show a profit”, or “My dream is to create a

safe workplace” could change to read:

STEP 5

Plan and programme a strategy that will get you there. • Goals involve a strategic plan for getting there. • Realistically assess the obstacles and resources involved, before you create

a strategy for navigating that reality. • The only way to guarantee forward-movement during down times is to design

a solid strategic plan that sustains your commitment in the absence of emotional energy. The significance of programming is that it recognises that your life is full of temptations and opportunities to fail.



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STEP 6

Define your goal in terms of steps. These steps are defined as different objectives leading towards the same goal. • Goals are carefully broken down into measurable steps that lead, ultimately,

to the desired outcome. These steps are defined as milestones. These are goals that have been made more specific. For example, a goal for improving the order-processing system may generate several objectives such as, “During the next quarter, reduce the data-processing time on an average order by thirty seconds.” When objectives are highly specific, they can be monitored more easily, but the people who implement them may lose sight of the overall goal and values beneath it.

• Major life changes don’t just happen; they happen one step at a time.

STEP 7

Create accountability for your progress towards your goal. • Goals are structured in such a way that you have some measure of

accountability at each step. • Set up an accountability system for yourself that will make it impossible for

you not to achieve your goal.



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7 OBJECTIVES AND PERFORMANCE IMPROVEMENT

An objective is a performance goal or target. It is a specific result or situation that a jobholder expects to achieve within a defined timeframe. Objectives are essentially concerned with bringing about improvement, i.e., with progress and development of performance. This improvement can be in the areas of: • Operations. • Communications and development. • Personal development. Good objective-setting practice requires all role players to be flexible in their approach to the objectives they have set, and does not to stick rigidly to defined targets, which are no longer relevant or practical. Objectives should not be confused with performance standards which are the criteria against which the ability to fulfil professional responsibilities are measured. Objectives are concerned with bringing about improvement in how the job is currently done.



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7.1 SETTING OBJECTIVES SURVEY

Be honest. Tick what you do, rather than what you intend to do! Indicate how frequently you do each of the following when working with members of your team: ALWAYS OFTEN SOME-

TIMES SELDOM NEVER

Ensure that team members are aware of organisational goals

Ensure that team members are aware of departmental team goals

Establish clearly-defined goals for every team member

Involve team members in setting their own goals

Ensure that team members’ goals are specific, measurable, achievable, realistic and time- bound

Involve team members in deciding which goals are most important

Check that team members have a clear understanding of their goals and responsibilities

Agree with team members the measures to be used to evaluate their performance

Give team members the chance to influence the standards set for their work

Agree with team members when their performance will be reviewed



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Now list below the actions you can take to improve how to set objectives with your team:

Two golden rules for setting up objectives. Rule No. 1: Objectives are set up by mutual agreement. Rule No. 2: Individual objectives are set within an organisational context.

7.2 THE PERFORMANCE MANAGEMENT CYCLE The cycle is a continuous process of improvement and personal development. Each improvement leads to new opportunity, to identifying new areas of improvement. The following illustrates different management tools:

QUESTION MANAGEMENT TOOL

What is my job? Job Description

What should I achieve? Objective Setting

How am I getting on? Performance Review

What should I do to get better? Development Plan

7.3 SEVEN GROUND RULES FOR SETTING OBJECTIVES



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Case Study

John is working in the Accounts Department and is responsible for producing monthly expenditure reports. The performance standard against which they will be measured it an accurate report which must be presented to all interested parties within five working days of the end of the month. The volume of data is increasing steadily, so that the work now takes three days to collect. This leaves only two days to collate, prepare, and present the report. This does not allow for any contingency or unforeseen delay. Both John and the manager are concerned that soon there will be a shortfall in performance, and they agree that something needs to be done to prevent this happening. So they set an objective to improve the current method of work. If the manager imposes a target such as “maintain the current level of performance” then that is not a fair expectation; the volume of work has changed, so performance levels can only be maintained if there is a change in the way the task is done. The alternative would be for John to work extra hours to deal with the volume increase. This is exploitation rather than objective setting!



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Setting an objective such as “automate the data gathering process within the next three months” gives too much freedom, may be expensive or impossible, and may have an impact outside the intended department. Perhaps even with work implications for people elsewhere in the business. The objective needs to be more constrained and better focused than this example. Activity 2 (see worksheet on page 48) Note: There are two ways in which you can set objectives relating to building the capacity of an individual team-member: • You can set objectives to extend the operational span of the jobholder, i.e. to

increase the parameters of their job; or • You can set objectives to extend the personal abilities of the individual,

without changing the shape of the job.



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Qualities of a good objective: • Consistent with the objectives for the company as a whole. • Specific about what they will achieve. • Personal i.e. tailored to the jobholder. Good objectives should also: (Refer to seven ground rules - VIDEO): 1. Be mutually recognised and agreed (joint process). 2. Be measurable by quantitative means. 3. B realistic in time scale. 4. Be achievable but challenging. 5. Let the employee decide how to get there (action plans). 6. Use objectives for personal development. 7. Review progress regularly. NOTES _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________



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7.4 PUTTING OBJECTIVES INTO PRACTICE An action plan is an essential part of the goal and objective setting process. The following outlines a systematic problem-solving approach to developing an Action Plan for each objective:

STEP 1 Define the problem. This is the ‘WHY’ component of the planning process.

• Why am I doing this? • What do I want to achieve?

STEP 2 Define success criteria. This answers the ‘WHAT’.

• What is the standard that I am trying to reach? • How will I know if I’ve been successful? • What specific results will be needed in my action

plan to achieve the aim?

STEP 3 Define the plan HOW WHO WHEN WHERE And, where relevant, also: WHAT THERERAFTER

• What activities must I include in my action plan? • How will the activities be implemented? • Who will be involved in the activities, apart from

myself? • Have I informed the other people that I will need their

involvement? • Are the deadlines realistic? • By when must the results be achieved? • Will I be able to check and control progress? • Will activities take place inside or outside my

department or organisation?

STEP 4 Activate the plan

• How am I doing? • Does anything need changing? • What changes should I instigate?

STEP 5 STEP 5 Analyse the results

• What went well? • What didn’t work, and why? • What do I need to adjust or correct? • How could I do better next time?



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8 WHEN PLANNING IS LIKELY TO BE EFFECTIVE

Planning needs to fit the purpose and situation it is intended to serve. Planning and plans are means, not ends. A planning executive at Dow Chemical Company, J. Ernest Mitchell Jr., developed Mitchell’s Planning Law, which states: “He who allows detailed trivia to smother clarity of purpose shall suffer the flame of hell.” Organisational effectiveness should increase quite rapidly as more effort is expended on planning, but only up to a critical point. Beyond that point, additional planning is likely to cause organisational effectiveness to drop rapidly and can even become counter-productive.

“Planning without action is futile; action without planning is fatal.”

8.1 ACTION PLANNING GUIDE • Decide on what you want to accomplish - define the problem

This is a statement written in the present tense that describes the current status of the issue.

• Figure out what you have to do to achieve this goal - set desired results

The desired outcomes of a solution to a problem (although not the means of achieving the outcome). Write it in the future tense. Be specific. List criteria and use specific dates.

• Now, make a decision

Which of the listed actions/sacrifices are we willing to make? Good decision-making is based on four keys:

• Be well-informed about the vision, mission, goals and direction. • Collect and study the most recent information. • Consider future consequences. • Remember the successes or failures of past decisions.



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• Adjust your goal If you’re not willing to do what it takes, reduce the goal so that it is in line with the input that you’re willing to make. If, however, you are willing to do more than it takes – expand on your goal!

• When to reset GOALS and when to reprimand? - If a person can’t do something then it is a ‘training problem’. Go back to

goal-setting. - If a person won’t do something, then it is an attitude problem – you

need to reprimand and coach. • Design a plan of action. Describe the means by which you will achieve the

results. Who is responsible for each outcome? Include specific dates and resource options. For actions longer than 1 month, identify milestones.

“The test of a good plan is not how good the plan is, but whether management actually commits resources to those actions which will bring results in the future. Unless this is being done there is no plan; there are only promises and hopes.”

- Peter Drucker

• Decide on how you will measure your progress. Put in place specific

measures that will determine your progress.

• Implement. Take action. Execute your plan.

• Monitor your progress: Rigorously apply the measures outlined during your planning process.

• Take corrective action and make adjustments:

- What am I doing that is working? - DO MORE! - What am I doing that is not working? - DO LESS!



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9 MANAGEMENT APPROACH TO DRIVING A STRONG PERFORMANCE ETHIC

Management must choose primary levers to control/co-ordinate and motivate the workforce and execute these selective levers at a distinctive level (best practice is not good enough). The company’s history and capabilities, senior management, past experience, capabilities and preferences, and the future business requirements, are the keys to selecting the correct performance ethic model.

“When you don’t know where you are going, any road will get you there.”

9.1 MUST DO’S Mission and aspirations - very clear, consistent, and high-level mission statements and aspirations that set the direction to an attractive ‘end state’ and that give a rationale for aggressive targets and goals.

“The best way to predict the future is to invent it.” - Alan Kay

Targets, Goals and Objectives - highly aggressive and measurable stretch goals and targets that make unmistakably clear the expected level of performance and that create a sense of urgency. Always have a new mountain to climb. Organisation approach - a flat and decentralised structure with many accountable and autonomous units to ensure a sense of ownership and responsibility at all levels of the organisation. Performance feedback - a ‘real-time’, transparent reporting system with internal and external benchmarking where rankings are made public in order to avoid a ‘place to hide’.



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“I was out having fun – catching my people doing things right.”

Consequence management - visible consequence management to avoid complacency. Low performers are trained, moved to other positions, terminated, or weeded out through peer pressure.

NOTES _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________



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10 WHAT NOW? WHERE DO I GO FROM HERE?

“People who produce good results feel good about themselves.” There is no longer room in your life for habit, comfort zones or rigidity. You should be willing to challenge everything! You are now equipped to make life-changing strategies, one step, one goal, and one priority at a time. Channel your momentum in a positive direction. Also remember that every individual is unique and will navigate his or her life differently. You will have to discover what works for you, and for each of your people! What are the attitudes, intensities, behaviours and characteristics that will generate peak performance for each of you? Remember that individuals have a right to be who they are and how they are – but only for as long as it is not at the expense of other people’s dignity and respect, nor at the expense of team objectives and goals. Learn from your mistakes, as well as your successes. And also learn from others!

10.1 WHAT ARE THE QUALITIES FOR SUCCESS? • Vision • Strategy • Passion • Truth • Flexibility • Risk • Networking • Action • Priorities • Self-management



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10.2 UNDERSTANDING THE BUSINESS ENVIRONMENT The Integration Of People Development With Business Strategies When integrating people development with business strategies, the following are important for success:

• Embracing a generic strategy of customer intimacy. • Applying generic and basic business strategies that are supported by a

value-based organisational culture of trust. • Value-systems initiated and driven by top leadership and amended and

endorsed by the employees of the organisation in a top-down-bottom-up process.

• Applying a people strategy or philosophy that ensures that their activities and competencies are aligned with generic and business strategies.

• Seeing development as a way of providing business solutions rather than as learning to obtain qualifications.

• Selecting and developing leaders and supervisors in alignment with the needs of the value system and individual needs.

• Entrusting the development of key leaders and supervisors to the CEO. • Passing the responsibility for the development and career progression to the

individuals, while providing access to and facilities for training. • Aligning learning organisations with a people development strategy aligned

and focused on the competencies applicable to its values, processes and products.

10.3 HOW TO DEAL WITH COMPETITION!

In “The death of competition” by J Moore it is suggested that in the place of Industry there will come into being an alternative, namely “business ecosystems”. Competition as we now known it will be dead. The future will be dictated through co-operation. The dominant new ecosystems will likely consist of networks of organisations stretching across several different industries.

“You cannot depend upon whatever boundaries already exist to shield your ecosystem from the thrusts of others. Instead, you must create and defend ecosystem boundaries, building them where none exist, and shoring up those that do.”



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“Competition is not about technology, it is not about resources, it’s not about size, it’s not about regulation, it’s not about subsidies, it’s not about investor pressures. It’s about ideas. And the next round of competition is going to be about ideas – ideas about how to govern a large company.”

- CK Prahalad

10.4 ON SUCCESSFUL ORGANISATIONS – POTENTIAL BEST PRACTICES

In an article Horizontal Corporation in the International Business Week, the following characteristics for modern business are discussed: • Organisation around process, not task. • Flat hierarchy. • Everything is managed by teams. • Let customers drive performance. • Reward team performance. • Maximisation of supplier & customer contact. • Informing and training all employees.

Activity 3 (see worksheet on page 49)

In a study done on Integrated People Development and Business Strategies the following best practices were listed: • A business strategy focusing on the Key Strategic Issues (KSI’s). • An organisational culture with values aligned to the business strategy. • Leaders translating the business strategy and values into inspiring

performance targets. • People competent to achieve the targets.



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• Policy procedures and systems which reward and recognise the achievements.

• Stakeholders involved in the process of developing and implementing the business strategy.

“You live by the grace of your environment.” “Performance relates to fit – you have to fit your environment.”

10.5 CONTINUOUS IMPROVEMENT THROUGH PEOPLE

“Responsibility is shared by all members.” Create an environment where: • Everybody acts proactively. • Everything is done with the end in mind. • Everybody puts his/her first things first. • The team follows a win/win approach. • You first seek to understand and then to be understood. • Everybody pulls together towards an attractive end state.

“The whole is greater than the sum of the parts.”



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10.6 WHERE GOOD LEADERS LEAD, FOLLOWERS FOLLOW Research was done in 80 leading growth companies and concluded that the personality of the leader did not matter as much as the leader’s: • understanding of the external environment, • commitment to the need for change, • commitment to enabling others to change, and • the will and capacity to act. What do you consider to be more important: personality or competence? .

”… the next round of competition is going to be about competence. People are going to be a lot more concerned with the capacity to create new businesses rather than being efficient in existing businesses. Competence is going to provide companies with the differential advantage.”

- CK Prahalad



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10.7 UNDERSTANDING CHANGE IN YOUR ORGANISATION In “Changing the way we change” three interventions are mentioned by R Pascale that will restore companies: 1. Incorporating employees fully into the principle business challenges facing

the company. 2. Leading the organisation in a different way in order to sharpen and maintain

incorporation and constructive stress. 3. Instilling mental disciplines that will make people behave differently and then

help them to sustain their new behaviour.

“Changes do not happen one at a time… many changes of varying importance are happening to you all the time.” Activity 4 (see worksheet on page 50) • Organisations don’t change - individuals change. • Change is almost always painful, initially seen as a loss not a gain. • Almost all individuals follow a well-noted emotional journey.

“Excellent firms don’t believe in excellence – only in constant improvement and constant change”

- Tom Peters



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10.8 THE EMOTIONAL JOURNEY OF CHANGE.

“There is no ideal journey – all change will normally come with low creativity and low commitment. You’re likely to experience… “ • Denial and resistance. • Confusion and creativity. • Discovery and recovery. But this journey is worth it. So worth it. And once you’ve mastered a new set of behaviours, and changed some of your habits, you’ll never look back. Good luck ahead!



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11 REFERENCES 1. Kiefer and Senge (1982) 2. Roger Harrison – “Strategies for a New Age” 3. The Pfeiffer Library Volume 15, 2nd Edition, - Alignment Questionnaire 4. Churchman, C.W. (1968) – “The Systems Approach” 5. Odirne, G.S. – “Management by Objectives: A system of managerial

leadership” Belmont, CA: Fearon Pitman 6. The Pfeiffer Library Volume 27, 2nd Edition 7. J. Ernest Mitchell Jr. - “Mitchell’s Planning Law” 8. J. Moore – “The Death of Competition” 9. International Business Week – “Horizontal Corporation” 10. R. Pascale – “Changing the way we change”



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12 ACTIVITIES ACTIVITY 1

Discuss: How does a business operation differ if led by a manager or a leader? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________



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ACTIVITY 2

In small groups formulate a good objective for the problem posed on page 32:

Give at least five good reasons why this a good example of an objective: 1.

2.

3.

4.

5.



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ACTIVITY 3: How well do you perform against the characteristics referred to in the Article Horizontal on page 43?



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ACTIVITY 4: Discussion 1. What recent changes have happened in your organisation?

2. What caused these changes?

3. What was impact/result on the organisation?

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