Focus on Excellence!

Gordon J. Stevenson
October 2014
 Discipline of Getting Things Done

2
 Discipline of Getting Things Done

Do not fall prey to believing

that when things go wrong & mistakes happen

that it must always be a disciplinary matter.

Though the costs of failure in any business can

be critical & the fine-line difference between

success & failure.

There is a need to determine whether the issues

on hand are behavioural or systematic failure !

3
 Discipline of Getting Things Done

If multiple people make the same mistake

then this should tell us something about

the nature of the mistake being made : its

cause probably isn’t individual but

systematic.

Systematic errors have their roots at a level

ABOVE the individual. Don’t always ‘look down’

learn more to ‘look up’….

4
 Discipline of Getting Things Done
When something goes wrong the cause

is overwhelmingly attributed to human error :

CAR WRECKS- 90%

WORKPLACE ACCIDENTS- 90%

AIRPLANE CRASHES- 75-80%

Almost 50% of all crashes at railroad crossings

occur where automatic devices, gates, flashing

lights are functioning properly.

5
 Abstract of the book
“Presents the positive side of conformance principles by
‘engaging’ staff & employees at all levels, as opposed to
‘enforcing’ compliance via coercion. Reveals opportunities
for breakthroughs & continuous improvement in
performance through achieving the optimum balance
between management control and employee
empowerment. Describes the implementation of a
structured framework – the conformance cycle –
through which levels of non-conformance can be
measured, significantly reduced & performance standards
effectively improved. Suggests that organizations should
avoid guru speak & re-focus on a ‘back to basics’
approach and use this as a solid foundation on which to
achieve their vision, build future success & witness
sustainable profitable growth.”

6
 I. Introduction

Compliance:
 Implies coercion
 About enforcing obedience

Conformance:
 Implies agreement & willingness
 Implies engagement

7
 The Conformance Principles
are not about enforcing obedience …

control empowerment

Just Right!

on the contrary, it is about engaging your people in a process that will provide
that winning edge by achieving
balance between control and empowerment

8
 “Over the years I’ve come to see self-discipline as invisible magic !

You cant see sense or smell it but its affects are enormous.

It can transform fat into slim, sag into buff, uniformed into expert,

poor into rich, misery into happiness.

It’s the submerged part of the iceberg, others don’t see when they

recognise what they think is natural genius”.

Mark Tyrell
9
 Behavioural studies indicate that while

autocratic leadership styles may secure

short term gains, if the initiative is not

SELF-DRIVEN, coming from within the

practitioners themselves, then any

immediate improvement is not

sustainable in the longer term.

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 Discipline of Getting Things Done

“In business as well as in our private lives, we need to strike

a balance between our own independent willpower & the

need to subordinate our feelings, impulses, and moods in

favour of held values.

It is essential, that management firmly establishes and

practices a set of behavioural guidelines’.

At the same time, they must painstakingly explain & promote the benefits,

which will be realised not only by the business but also by the

employees involved”
G.J.S.

11
 When we are talking about Strategic
Management , we need to primarily focus
on a few critical integrated components:

Vision/Mission/Values
Strategy,
Strategic Intent,
Deployment,
Evaluation & Control
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 The organization’s
desired future state

Why do we exist? Envisioned

What defines success?
Future Ideals that underlie the
culture and the company’s
actions
Vision

Core Purpose Core Values

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 VISION

15
 Vision Should Be a Short Succinct,

Inspiring Statement Of What The

Business Intends To Become & Achieve In The Future.

It Is The Responsibilty Of Leadership To Provide The Inspiration

And Communicate Effectively A Vision Which Energises The

Entire Organisation Towards Newer Heights !

“Vision Without Action Is But A Daydream”……….JAPANESE PROVERB

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 VISION EXAMPLES

McDonalds
To be the worlds best quick service restaurant experience.

Amazon
To be the earth’s most customer centric company, to build a place
where people can come to find and discover anything they might
want to buy online. (combined Vision & Mission)

Ford
To become the worlds leading consumer company for automotive
products and services.

Philips
In a world where complexity increasingly touches every aspect of
our daily lives, we will lead in bringing sense & simplicity to people.

Note: Many companies blend Vision & Mission Statements .

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 MISSION

A few benefits attributed to mission statements :

1/ Enable companies to focus their strategy defining some

boundaries within which to operate.

2/ Define the dimensions by which the organisations performance

is to be measured.

3/ Propose standards by which to guide individual ethical

behaviour

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 Mission

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 MISSION

Mission
The University of Edinburgh contributes to contemporary,
global management issues by :

 Conducting research of high international standards that makes an impact on theory

& practice
 Delivering a high-quality educational experience at undergraduate, postgraduate and
executive level
 Providing a forum for discussion and debate, that brings global academic and practitioner
communities together

The school is anchored in the core business disciplines. Areas of speciality cover financial services,
entrepreneurship and innovation, public management and climate change

VISION
Our vision is to be a highly ranked research-based business school of international
standing, educating socially responsible graduates, who make a sustainable
impact on global well being

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 VALUES

OUR HELD VALUES

GOVERN OUR

BEHAVIOUR

21
 Example: 4D’s Values

 Delight customers

 Deliver on commitments

 Develop people

 Depend on each other

22
 Reinforce Values

Ensure that the basic VALUES and general STANDARDS to all

business aspects are:
. . . KNOWN
. . . UNDERSTOOD
. . . ACCEPTED
. . . AGREED
throughout the organization

This will build a common foundation from which

everyone can move forward in unison

23
 How Do We Measure Values?

24
 Environment Scans

25
 ANALYSIS

The Five Forces Analysis Model Helps Identify

The Factors That Shape The Character Of The

Competition. It Aims To Assess The Structural

Attractiveness & Business Value Of Any Industry

& To Pinpoint Strengths And Weaknesses In A

Company.

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 ANALYSIS

The Five Forces Analysis Tool Is Designed To Explain

The Relationship Between The Five Dynamic Forces

That Affect An Industry’s Performance ;

• Intensity of competitive rivalry

• Threat from new entrants
• Threat from substitutes
• Bargain power of purchasers
• Bargaining power of suppliers

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 SWOT

THE FOUNDATION FOR EVALUATING

INTERNAL POTENTIAL & THE LIMITATIONS

AND THE PROBABLE OPPORTUNITIES &

THREATS FROM THE EXTERNAL

ENVIRONMENT.

28
 WHAT IS STRATEGY?

A particular plan for achieving

success in a particular activity

or alternatively

plotting to gain competitive

advantage

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 STRATEGY ?

A BROAD COURSE OF ACTION FOR

HOW TO ATTAIN THE GOAL IN THE

FACE OF UNCERTAINTY.

STRATEGIES ARE CHOSEN FROM

A NUMBER OF ALTERNATIVES !

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 STRATEGY ?

Strategy is the direction and scope of

an organisation over the long term, which
achieves advantage in a changing
environment through its configuration of
resources and competences with the aim of
fulfilling stakeholder expectations !

Pearson

31
 Strategy and Purpose of Business

NOW FUTURE
FUTURE (3-5
(3-5 YEARS)
YEARS)
WHAT IS YOUR BUSINESS?

THEORY OF THE VISION

VISION
THEORY OF THE BUSINESS
BUSINESS WHAT
MISSION WHAT COMPANY
COMPANY SHOULD
SHOULD BE?
BE?
MISSION
PURPOSE
PURPOSE OFOF BUSINESS
BUSINESS

LONG TERM OBJECTIVES:

SHORT-TERM
SHORT-TERM OBJECTIVES:
OBJECTIVES: MARKETING
MARKETING
MARKETING and
and INNOVATION
INNOVATION EVALUATION
FINANCIAL
FINANCIAL
FINANCIAL WHAT
WHAT WILL
WILL OUR
OUR BUSINESS
BUSINESS BE?
BE? INNOVATION
PERFORMANCE
PERFORMANCE GAPS?
GAPS? PERFORMANCE GAPS

ASSESSMENT
ASSESSMENT STRATEGY
STRATEGY (COMPETING)
(COMPETING)
External
External Environment
Environment Assumption:
Assumption:
•• Customers,
Customers, Competitions,
Competitions, Suppliers
Suppliers
•• Industry,
Industry, Government
Government Regulations
Regulations
•• Demographics
Demographics and
and Society
Society Change
Change
•• Opportunities
Opportunities and
and Threats
Threats

Internal
Internal Competencies
Competencies Assumption:
Assumption:
•• Core
Core Competencies
Competencies
•• Strengths
Strengths and
and Weaknesses
Weaknesses in
in
Strategic
Strategic Competitive
Competitive Capabilities
Capabilities (SCC)
(SCC)

DECISION
DECISION

IMPLEMENTATION
STRATEGIES STRATEGIC PLAN
ORGANIZATIONAL CHANGE

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 What is Strategy?

Strategy should cover:

What business are you in, what market

you serve, what specific segment you
want to target, who the competitors are,
and more important is knowing who the
customers are and know what they want.
The key to winning the business is
providing not only of what customer wants
but EXCEEDING them.

33
 Emergent Strategies

A set of certain consistent actions that form an unintended

pattern that was not initially anticipated or intended in the initial

planning phase. For example: although unintended, adopting an

emergent strategy might help a business adapt more flexibly

to the practicalities of changing market conditions.

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 EMERGENT STRATEGIES

35
 STRATEGY

“We & our colleagues have worked alongside >300 organisations

over 12 years. In our practice, we observed no two organsations

that thought about strategy in the same way ! A generally accepted

way to describe strategy did NOT exist……

While each company provides deep insights e.g. IBM, GE, HONEYWELL,

ALLIED SIGNAL,HARLEY-DAVIDSON none provides a

comprehensive & integrated view for describing strategy”

36
 STRATEGY MAPS

Strategy Maps Provide Clear & Comprehensive Descriptions

Of An Organisations Strategy, Lends Executives An Enhanced Ability

To Execute Their Strategies. People Cant Manage What They

Cant Measure & They Cant Measure What They Cant Describe.

The Strategy Map Solves This Problem.

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 Strategy Maps

“ It is said that more than 75 percent of

the average firms market value is
derived from INTANGIBLE ASSETS that
traditional financial metrics don’t
capture”

Taken from : Strategic Maps

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 Any program needs an effective enabler to provide an
organization with a highly visible common direction

 Common languages
 Creates awareness Common Goal
 Remove functional silos
 Across departmental
optimization

FOCUS

Portfolio Order
Commercializa
management Innovation Industrial fulfillment and Demand
tion of
and strategic process process after sales Generation
innovation
marketing service

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 Migration of
management measurement
Balanced Business Scorecards allows
management to focus on relevant key
business drivers

 Integrated business process Additional

Financial
 Customer-driven value chain indicators
Financial
 Mass customization
indicators
 Globalization
 Technological acceleration Additional Additional
 Knowledge workers indicators indicators

 EBIT
 Return on Capital Employed (ROCE)
Balanced Business Scorecards also
 Return on Operating Capital (ROOC) monitors performance of:
 Return on Equity (ROE)  Intangible assets
 Return on Invested Capital (ROIC)  Competitive capabilities
 Economic Value Added (EVA)

40
 Four perspective in the BBSc

 Financial perspective:
 How can we meet / exceed the expectations of our
shareholder
 Customer perspective:
 What do the customer expect from us?
 Process perspective:
 Which business processes / processes’ performance
are key to us?
 Learning / Innovation perspective:
 What competences are key to be acquired and
excelled?
 How can we improve and create values continuously?
41
 BBS

The BBS is a business focus generator

which serve as the instrument panel that
links seemingly disparate information
about the organisation finances and
operations.

Leading indicators of Employee

Motivation
the BBS provides the CIC Throughput Customer Income from
business with an Participation Time Satisfaction Operations
Performance QFN Customer Free Cash
assessment of the Management Time to Ramp Complaints Flow

company’s Technical
Competence
Growth from
Diversification
8D Response
Time
Cost
Reduction
performance and where Safety

it is headed.
Learning Processes Customers
Customers/Clients Financials
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 What does the BBS Show?

Innovation/
Business
Learning/ Customers Financial
Processes
Competence
“To achieve our “To satisfy our “To achieve our “To succeed
vision, how will shareholders and vision, how financially, how
we sustain our clients/customers should we appear should we appear
ability to change ,what business to our to our
and improve?” processes must clients/customers shareholders?”
we excel at?” ?”

Leading Indicators Lagging Indicator

“Performance Drivers” “Outcomes”

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 Traffic Light Reporting

Learning Processes Customers Financials

Colors are used to indicate how the actual performance compares with the target:
 Green – exceeding target
 Yellow – performance is in line with the plan / target
 Red – performance is below plan

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 Example!
Business Balanced Strategy (1 - 4 year horizon)

Leadership Marketing Shareholder Value

Competencies PMG Customer (COO)
Service
Teamwork Purchasing Cost Reduction
(No. of Green Belt) PMG Customer (FSP)
Satisfaction)
Employee Human Resource BOA
Satisfaction PMG Product Quality Reduction
(DPPM)
Functional Cycle Time BOM
Competencies Reduction Reduction

Competence Processes Customers Financial

Leading Indicators Lagging Indicators

45
 STRATEGY MAP

Relationship Mapping

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 BBSc

“On the basis of

WHAT WE MEASURE WE CAN CONTROL

and
WHAT WE CAN CONTROL WE CAN
IMPROVE

critical intangible like people, information and

culture need quantification”

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 Example: BBSc

2006 PSI Balanced Score Card GOALS

Critical Success Factors Performance Measures 2005 2006 Owner
Q1 Q2 Q3 Q4
Employee Motivation top 3 EMS Actions % Improvement Ellen
Learning

CIC Participation % of people actively involved in CIC Gil

Performance Management % of all managers + directors with objectives (P.A.) Jeffrey
Technical Competence % of technical community awarded "belts" Jedi Ada/Gil
Safety % Accident Reduction vs. 2005 Bing

Cycle Time % Improvement in Cycle time of Top 2 Customers Cynthia

QFN Time-to-ramp % of critical processes better than 1 (Cpk>1) Jim
Process

Growth from diversification % of sales from new customers (Laguna) Freddie

Qual Hit Rate % Hit Rate Aris
EHS Standards Compliance to Standards (based on 2005) Cesar

Customer Satisfaction % improvement vs. 2005 quality survey score of Top 4 customers Mena
Customers

Customer Complaints Number of complaints vs. 2005 Nanie / Chato

8D Response Time Number of days (2.5 Target) Neng

Income from Operations Result (%) Arthur

Financials

Free Cash Flow Result Gordon

Cost Reduction % Savings Thelma

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 STRATEGY

We need to integrate the strategy with

systems specially designed to fulfill the
Vision

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 DEPLOYMENT STRUCTURE

VISION, MISSION, VALUES

BUSINESS BALANCED STRATEGY

STRATEGIC INTENT

STRATEGIC DEPLOYMENT SYSTEM

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 Quality Operating System (QOS)

Translates business policies, strategies and

goals into specific (focused) objectives.
It provides structure and proceeds through to
the formulation of detailed improvement plans
implemented by empowered quality
improvement teams.

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 Quality Operating System(QOS)

 Focuses on key drivers / critical success factors

 Top-down (management led), but also facilitates bottom-up proactive
participation and involvement
 Establishes clear accountability and commitment
 Facilitates a process-way of working and continual improvement culture
 Improves cross-functional teamwork
 Lays the foundation for a learning organisation and is fully supported by
comprehensive training
 Provides visibility of progress and trends for systematic review
 Facilitates managing by exception technique
 Monitors effectiveness of the deployment process optimising employee
participation
 Provides a vehicle for employee stimulus and recognition

52
 Managing by Exception

Key resources are always limited. Thus by learning to

manage by exception, you can optimize your
effectiveness by always having them focused on your
most critical operations.

Gordon J. Stevenson

d e rive d fro m

53 “Co nfro nting Co nfo rm a nc e ”

b y Go rd o n J. Ste ve nso n
C O PYRIG HT © 2003 Ultim a te Ed itio n
 Managing by Exception

Assume a plate represent a

key / critical task to your
operational success. In the
course of your operational
duties, you and each of your
managers and supervisors
have to contend with
multitude of plates all
continuously spinning, each
one too important to let drop.

Unfortunately, for many companies there are occasions when plates are dropped
needlessly, and financial results and prize customers react in a way which hurts.
Often the damage can be considerable, sometime permanent.

d e rive d fro m

54 “Co nfro nting Co nfo rm a nc e ”

b y Go rd o n J. Ste ve nso n
C O PYRIG HT © 2003 Ultim a te Ed itio n
 Quality Operating System
Top Level Goal
To reduce Cycle Time by 30%

Sub Level Goal I

1. Ordering Leadtime
2. Planning Time
3. Mfg Cycle Time
4. Distribution Time

d e rive d fro m

55 “Co nfro nting Co nfo rm a nc e ”

b y Go rd o n J. Ste ve nso n
C O PYRIG HT © 2003 Ultim a te Ed itio n
 Quality Operating System

Top Level Goal

Sub Level Goal I

Sub Level Goal II

Sub Level Goal III

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 QOS – CIT

The QOS engages the organization through Continuous

Improvement Teams (CIT), which are empowered, multi-
functional and inter-disciplinary teams focused on structured
improvement activities aligned with the organization’s key
drivers and sub-level goals.

57
 CIT – Using a S.M.A.R.T. Problem Solving Methodology
Deployment

58
 Closing the Loop

 The Quality Operating System

requires a custodian to oversee the
deployment process (Quality Steering
Committee) and a system to measure
conformance (Conformance Cycle
Assessment) as a means towards
continual improvement.

59
 Quality Steering Committee
Closing the Loop

Purpose
 To translate PSi’s vision & mission, Quality First Policy,
critical success factors into organizational key drivers and
objectives, systematically and regularly reviewing the
deployment process (QDS) for effectiveness and continual
improvement.
Organization
Responsibilities:
1. Ensure the effective utilization and review of the Business Balanced
Scorecard (BBS) Strategic Intent Performance Indicators and Quality
Deployment System.
2. Develop the Site capability to achieve & maintain national & international
standards (e.g. ISO, IEC, GB)
3. Develop the organization's capabilities through regular review and
monitor the progress of the organization's maturity level, identifying
improvement opportunities through the use of Process Survey Tools.
4. Promote a “process way” approach to quality improvement, optimizing
cross-functional activity throughout the organization
5. Create an environment conducive to establishing a learning organization
culture
6. Review the internal audit results (e.g. Conformance Cycle Assessment /
CCA, ISO) ensuring both corrective & preventive actions are implemented
& improvement trends are evident
7. Review customer complaint, improvement trends ensuring organization
awareness and affirmative actions
8. Analyze and endorse Training Master Plan and ensure adequacy with
respect to fulfilling and achieving key driver objectives and compliance
with Quality First Policy.
9. Maintain a communication network ensuring PSi’s Quality First Policy are
known and understood by all employees.
10. Give recognition and review the progress of Continuous Improvement
Circle activities

60
 Example: MANAGING QUALITY IMPROVEMENT
The Deployment Structure
Example! A Fully Deployed Objective Route

TYPE LEVEL OBJECTIVE OWNER TEAM MEMBERS

Intent Business Group Improve Financial John Deer Product Div. President
Maneuverability
Direction Regional Improve Cashflow Peter N. White Regional President
Direction Sub-Regional Reduce Purchase to Cash Marry Brown Sub-Regional GM
Conversion Cycle Time by
20%
Results Plant Reduce Manufacturing Sonny Peterson Managing Director
Through Put Time by 30%
Results Engineering Reduce Total Machine Greg Solomon Maintenance
Maintenance Downtime by 50% Engineering Dept.
Dept. Head
Results Maintenance Reduce Downtime of Simon Grey Maintenance Group
Group Leader Assembly Line # 3 by 60% Leader
Tasks Maintenance Produce SMED (modular Mario Hendricks Engineer & Team
Engineer maintenance system) within 6 Leader
months

61
 Quality Operating System

62
 Strategic Management

Strategic Plan Process

N
V IS IO
IO
MISS Deployment/
Deployment/
N Gather
Gather
Facts
Environ
Environ
Scans
Review
Review
Inputs
Strategic
Strategic
BBS
Strategic
Strategic
Intent
Objective
Objective
Review
Review &
Improve
&
AND Facts Scans Inputs BBS Intent Route Improve
Route
ES
VALU
Aciculate Gather Inputs SWOT Analysis Review Inputs Strategic Matrix Strategic Intent Deployment Review
• Your Vision • From all • External Analysis • All Stakeholders • All Stakeholders • Key Strategies • All Stakeholders • Close the Loop
• Begin with End Stakeholders · Opportunities • Review Inputs • Define Strategies • Short & Long • Review • Verification Sustainable Profitable
in Mind • Customer · Threats • Review SWOT to address SWOT Term Goals Strategies growth
• What important External/Internal • Internal Analysis • Analysis combinations: • Operational Plans • Review Goals
to us? analysis · Strengths · Opportunities vs • Review Plans
• Competitor · Weaknesses • Adjust as
analysis • Strategic Strength necessary
• Industry analysis • Questions · Opportunities vs
• Environmental • Strategic Issues
• Company Weaknesses
performance · Threats vs
• Company Strengths
strategies · Threats vs
Weaknesses

Strategic Formulation Strategic Implementation Strategic Evaluation

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 Leadership

CREATING ENVIRONMENT
FOR CHANGE

64
 THE PROCESS WAY

Maturity Grid Milestones

Basic
1st Level Core
Mindset Behavior Capabilities/ Results
Results Capabilities
Processes

Improvement Benchmark

Not until basic processes operate effectively can the organization

build the foundations for capturing its dormant capabilities and
achieving world-class results

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2
 WHAT IS A PROCESS

Input
1 2 3 Output

Adding value Process

A stream of activities transforming input into

output by adding value.

This may be a transformation of material into material,

of information into a decision or of energy into action.
In each process, input is provided by a supplier and
output is delivered to a customer.

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3
 WHAT IS A PROCESS

An organizational, managerial and instrumental

framework for aligning all members of the
organization and their activities with processes.

The Process Organization needs to be systematically

structured, planned, controlled and led, e.g. Quality
Operating System (QOS) led by Quality Council.

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4
 WHY PROCESS WAY

A cultural setting with the objective to focus all employees

on the way we produce value for the customer and other stake-holders.

The Process Way stimulates our people to

experience their work as part of a process,
and enables them to contribute to the improvement of
the final result of the process.

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5
 WHY PROCESS MANAGEMENT

The traditional functional organization offers

insufficient potential for realizing the levels
of improvement needed to compete
in today’s global market.

There is need for a formula which helps to increase

the customer perception of value at the same time
enhancing our companies chances of success by
eliminating waste inherent to the functional organization.

69
6
 Why Process Management?

Management must actively implement

structures that support functional
“The Process Way
PLEASE”
cooperation. Cross-boundary
cooperation needs to be enabled!

Focus on process, not functions.

Interfaces are often the barriers to
improvement.

70
7
 Functional Organization Model

Managing Director
Executive Assistant

Sales & Manufacturing Supply Chain Finance

Quality Manager HR Director
Marketing Director Director Controller

Quality System & Customer Production PPC OD and Accounting

Document Control Service Manager- FOL Training

Product Marketing Production Warehouse & Personnel &

Quality Comm. Manager- EOL Mat’l Planning Admin Treasury

SPC & Production Strategic

Sales C&B IT
Calibration Manager- Test Purchasing

Maintenance & Procurement Employee TAX

Equipment Relation

New Product Traffic and Facility &

Engineering Distribution Security

A traditional organization structure not conducive to facilitate a

“Process Way of Working”

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8
 ORGANIZATION

Integrated Managing Director

Manufacturing Team Executive Assistant

Manufacturing Manufacturing Manufacturing

Director 1 Director 1 Director 1

Production Manager Production Manager Production Manager Core

Engineering Engineering Engineering
Manager Manager Manager

Quality Director Quality Quality Quality

Supply Chain
Logistic & Planning Logistic & Planning Logistic & Planning Director

Finance
Finance & Admin Finance & Admin Finance & Admin
Controller

HR Director Personnel Personnel Personnel

Training manager Training Training Training

Facility manager Facility Facility Facility

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9
 PROCESS MATURITY GRID

Strategic Business Planning Process

1.Strategic HRM Planning Process

3. Organizational Capability
8. HRM Systems & Data Mgt 2. Performance Management Development

9. Health & Safety 4. Staffing/ Resourcing 5. Talent management

10. Industrial Relations 6. Compensation & Benefits 7. Employee Development

PMG Survey
Human Resources Process Management
Target: Average 5.5 by December 1999

1. Strategic HRM Planning

Dec 1998
2. Performance Mgt.
Dec 1998
3. Org. Capability Dev’t
Legend:
Dec 1998
4. Staffing / Resourcing Benchmark Levels
Dec 1998
5. Talent Management
Dec 1998 Industrial Standard
6. Compensation & Benefit
Dec 1998
7. Employee Development Below Standard
Dec 1998
8. HRM Systems & Data
Dec 1998
9. Health & Safety
Dec 1998
10. Industrial Relations
Dec 1998
Jan. 2000: 63
Current Status : 72 (calibrated in May 2001) Dec. 1999 59
Dec. 1998 33

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26
 PROCESS MATURITY GRID

Element 1: HR Strategy Process

• HR aspects are not part of the Business Strategy process.
• HR function has a little awareness of business strategy
0 • Activities with respect to HR are mainly transactional, individually oriented; HR focus is primarily on
basic processes and practices.
• Little HR planning takes place.

1 • HR gets targets for a limited set of HR parameters (e.g. hirex people).

• Some basic data collection on HR takes place.

2 • HR advises the business on specific issues on ad hoc basis.

• HR considers, on request of management, the implications of some HR aspects of the Business Plans
and translates them into actions.
• Focus on business planning. HR still considered as an ‘after thought’. HR contributes on an ad hoc basis
3 to the business planning process, covering some people related issues in the strategic business plans.
• For the majority of basic HR processes, data collection is in place; however follow-up is limited and not
integrated in the regular business review cycle.
• HR planning is takingplace, however still fragmented and linkage with overall business strategy is weak.

8 • Internal and external benchmarking is a regular part of the HR strategy process.

• HR scenario planning based upon internal strategy and external developments (e.g. labor markets,
9 demographics) are regularly-done; scenarios play a central role in the strategic business planning process.

• Mid and long term HR strategy clearly seen as meeting the conditions to safeguard a strategic position
and competitive edge in the future.
10 • HR strategy viewed as the reference benchmark in the industry.

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27
 Intellectual Capital

Businesses are created,

expanded, diverted, and destroyed
by the influx and exodus of ideas.
This flow of intellectual capital
must be managed much more carefully
than almost any other asset in a business enterprise.

75
Response to Confronting Conformance
 Intellectual Capital

Therefore it is not
unreasonable to conclude that
amassing intellectual capital
will provide a competitive
edge for any enterprise,
however, this positive force
may effectively be wiped out,
should insufficient attention
be given towards employees
needs, resulting in high
turnover & failure to retain
key staff.
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 The Comfort Zone Phenomena

“Comfort Zones are created wherever members of an

organization, collectively or individually, come to believe that

they are performing their assigned tasks at or near to an

optimum level of performance. This belief then generates an

attitude which assumes that any problem from which the

organization as a whole suffers is not, in any way, connected

with themselves.”

77
 Advantages of Benchmarking

 Benchmarking is a powerful management tool

because it overcomes “paradigm blindness.”
Paradigm blindness can be summed up as the
mode of thinking, “the way we do it is the best
because this is the way we’ve always done it.”
Benchmarking opens organizations to new
Captive elephant tightly chained to a tree.
methods, ideas, and tools to improve their
effectiveness. It helps crack through resistance
to change by demonstrating other methods of
solving problems than the one currently
employed, and demonstrating that they work,
because they are being used by others.

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 II. The Conformance Road

The Comfort Zone Mentality

Comfort Zone Mentality leads to complacency!

What is complacency?
• State of being satisfied.
• Feeling contented.
• Contentment.
• “Everything OK”
• “All is Well”

BUT…
This “good” feeling is borne from unawareness of actual
deficiencies and danger.
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 Benchmarking

DON’T JUST BENCHMARK

B’SMART

GO BEYOND BENCHMARKING

IMPETUS: “ THE FUTURE IS ALREADY HERE ; ITS JUST NOT EVENLY

DISTRIBUTED “ –WILLIAM GIBSON.

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 Survey Tools (experience)

 Using one of the best

practice benchmarking tools
within my previous business
the site was scored 33. This
was the “shock horror” and a
“wake up call” for the
people.

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 Survey Tools

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 European Foundation For Quality Management(EFQM)

Philips China
PBE Bronze in 2004-2005

Philips Indonesia Large Scale Supply Centre

Philips Business Excellence (EFQM Model)
GOLD in 2003 – 2008 at benchmark level
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 Critical Enablers

There are many Critical Enablers which

need specific focus and prioritization these
are but two :

 Leadership

 Communication

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 5 Levels of Leadership

5
4
3 Corporate
2 The Achievement
1
Integrity and Trust Vision
Character and Credibility
Competence
Corporate Effectiveness
Interpersonal Effectiveness
Leadership Effectiveness
Personal Effectiveness

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 Micromanagement

THE VALUE OF TRUST

Where were management when things
were deteriorating?

“They had become increasingly

bogged down in the detail of things. As
a result, they had learned more &
more about less & less until
eventually they knew
everything about nothing”
d e rive d fro m

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b y Go rd o n J. Ste ve nso n
C O PYRIG HT © 2003 Ultim a te Ed itio n
 Micromanagement

THE VALUE OF TRUST

Ultimately Micromanagers who trust only

themselves can take their companies only as
far as they themselves can take them. They
are unable to leverage themselves. They can
be very demoralizing to work with & often
drive away the best & best talented people
who simply can’t work or grow in a
respective environment of control…
Taken from the book “The Speed of Trust”

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 Communication
Failing to Listen

Communication is a two-way process,

but most people concentrate on
communicating outwards and
onwards.

 When people speak to us, we are

the lights ON but no body home
often engrossed in thinking of
our reply, failing to absorb the
message properly.

 Triggered by ‘hot’ emotional

statement, a mental barrier is
raised.
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b y Go rd o n J. Ste ve nso n
C O PYRIG HT © 2003 Ultim a te Ed itio n
 Example: Communication Policy

Objectives:
 Establish an empowering environment where employees can proactively participate in the creation
process facilitating a learning organization
 To provide employees with information regarding the company’s performance and goals in order that
everyone understand the priorities
 To involve employees in contributing positively to meet our targets and solve problems which may arise
 To encourage a climate of positive employees relations
 To remove barriers to concentration of effort in order to optimize job performance
 To ensure employees permitted to realize their full potential by providing set goals targets

Points:
 Annual GM speech to all employees
 ‘Inside View’ lunchtime discussion with GM
 ‘Reflections’ internal quarterly magazine
 Daily Operational Review
 Integrated Operations Team Review
 Quality Council Review
 Mid-Year and End-Year Reviews

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b y Go rd o n J. Ste ve nso n
C O PYRIG HT © 2003 Ultim a te Ed itio n
 Leaders in Summary

 An Energized Leader will need the following to

succeed

 Develop your Management Skills (less hands-on

control)
 Able to understand and articulate vision where your
business is headed
 Bury your EGO and lead by example
 Share (communicate and deploy the vision to all
levels translating in way to be understood if
necessary)
 Create the appropriate environment where
employees can participate contribute to realizing the
vision
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