The document discusses performance leadership and increasing organizational performance. It addresses the top challenges leaders face in 2011, including excellence in execution, improvements to profitability, and engaging the workforce. It also discusses translating potential to performance through strategic focus, leadership alignment, and productive synergy. Leaders are advised to focus on strategic drivers, know their people's capabilities, and develop individual operational leadership through focus, strategy, and follow through.
7. Execution remains
the top challenge for
all organizational
leaders.
“Key elements of Canada’s history
and industrial structure may have
nurtured a complacent business
culture.”
Don Drummond, TD Bank
8. Productivity is often understood to be
working harder or working longer.
“Nothing can be farther from the truth,
it’s deriving more output from the same
amount of time and effort.”
Don Drummond, TD Bank
10. Approximately 78% of
execution losses are due to
issues of people
performance.
How can organizations
support people to perform
at higher levels to execute
against the strategy?
12. Execution is more important than
strategy – 85% of bottom line results
are due to people performance via
execution than the strategy itself.
13. The leader who understands how
to maximize return on execution
depends on an awareness of the
strengths of the team’s talent in
order to execute the game plan.
14. The levers to increase the return
on execution are business
alignment and people
performance.
15. Define the strategic
drivers
What are the performance
elements that if done better
would most impact the
execution of the strategy
(positions or actions).
16. Know Your People
The greater the leader’s
insight into the
performance capability of
the team (and individual
members) the more likely
an increase in execution
will occur.
18. The performance leadership framework
evaluates the three fundamental
elements of team/organizational
performance:
The Leadership
alignment
The Strategic The Productive
Focus synergy
19. The Execution Advantage
The productivity economy will reward
“do it smarter” organizations that
build a better business model.
Smart organizations will increase
their return on execution by focusing
on drivers to achieve alignment and
productive synergy.
22. “Only when you know yourself and operate
from your strengths can you achieve true
excellence as a manager.”
Peter Drucker
23. What do people need to be successful
in their new role as performance-based
leaders?
“Help me understand what success is going
to look like in my new role, show me with
examples, help me think differently so I can
apply these things to the development of my
people and the appropriate influencing of the
organization.”
25. Skills most needed for performance
leaders:
• Self-awareness and Emotional Intelligence
• Vision and Strategy
• Communication
• Tactical Management
• Leading Others 3.0 – coaching, delegating,
and feedback
26. The three steps to developing individual
operational leadership:
Focus • Tactical
• Individual - Know
• Strategic
– Know What, Whe
– Know
Yourself n and How
Where &
Who
Clarity Follow
Through
28. Organizational strategy is a
learning process that includes
five elements:
1. Assessing where we are
2. Understanding who we are and
where we want to go
3. Learning how to get there
4. Making the journey
5. Checking progress
29. Leaders display performance
leadership when they think, act, and
influence in ways that promote the
sustainable competitive advantage
of the organization.
30. Only 27% of organizations
integrate strategy and tactics.
Benchmarking Solutions Study
31. Leaders need to focus on the strategic
drivers of the organization …
• The relatively few determinants of
sustainable competitive advantage for a
particular organization in a particular industry
or environment.
32. Most organizations have 3 to 5
strategic drivers at any point in
time.
Drivers can change – or the
relative emphasis – over time.
33. Business strategy is the pattern
of choices an organization makes
to sustainable competitive
advantage.
Leadership strategy describes the
organizational and human capabilities
needed to fulfill the business strategy
effectively.
35. Strategic thinking revolves
around the ability of a leader to
help people make sense of the
world around them – the
challenges they collectively face
and how they will face them
together.
37. Strategic acting is committing
resources to build sustainable
competitive advantage.
Not every action is strategic – it is critical to
apply actions that will impact the
strategic drivers of the organization.
38. Strategic decisions always involve
uncertainty …
The key is not to make quick decisions but
to make timely decisions.
41. Forging relationships inside and outside
the organization, inviting others to the
process, building and sustaining
momentum, and purposefully using
organizational systems and culture.
42. Influence must be used in all
directions … up to senior
executives, laterally to peers, down
to reports, and outside to
stakeholders and customers.
43. Key strategic influencing tactics…
-Influence others by involving
them in the process
- Create common
understanding, create
champions, demonstrate others are
valued
44. Key strategic influencing tactics…
-Influence others by connecting
on an emotional level
- Learn what is important to others
- Use the power of language
- Connect to aspirations
45. Developing Performance
Leadership:
• Assessing where you are, to
• Understand who you are and where you
want to go, to
• Learn how to get there, to
• Make the journey, and
• Check your progress
51. Planning routinely progresses through four
discrete phases of development.
At each phase, a company adopts attitudes
and gains capabilities needed in the phases
to come.
52. Phase One
Financial Planning
Annual budgeting process to forecast
revenue, costs, and capital needs over the next year.
53. Phase Two
Forecast-based Planning
Extend the financial budgeting beyond the
one-year time horizon
Start using trend analysis, regression
models, and simulation models
54. Phase Three
Externally Oriented
Planning
Issues orientation – responsibility to lay out
the key issues facing the organization
55. Attention is shifted externally to
customers, suppliers, and competitors.
Resource allocation becomes dynamic and
plans are adaptive
Portfolio analysis is used to focus on
competitive attractiveness and strengths
56. Phase Four
Strategic Management
Planning techniques are cascaded throughout
the organization and strategic thinking is linked to
operational decision making
57. Discussions are defined by tomorrow’s
strategic issues rather than today’s
organizational structure
Systems are in place to negotiate trade-
offs, review progress, and motivate and
reward performance
66. Most individuals and teams
don’t do strategy well:
• Only 8% of strategies achieve results
as planned
• 37% of strategies fail outright
• Teams assess leaders as 69%
effective at performing against plans
68. It is human nature to talk about
the future and then move
directly to short-term tactics.
We skip strategy!
69. Without strategy, we become
distracted by…
• Shiny Object Syndrome
• Commitment Creep
70. The results:
• The short term takes over
• The pace is accelerated
• Work is reactive rather than
proactive
• We are tactical not strategic
71. Defining Strategy:
The plan that a team takes to differentiate itself
positively from the competition using its strengths
to provide value to satisfy customer needs now
and in the future.
72. Strategy involves:
• Clear, concise and measurable statement of 3-
5 objectives
• Realistic assessment of key factors guiding
team actions
• Description of key approaches used to realize
results
73. We need to resist the urge to hit
the ground running.
75. The Strategy Triangle:
Working the Sweet Spot
Understand the interaction of the three key
influencers on your performance … your
team, your clients, and your competitors.
76. The Strategic Sweet Spot
The strategic sweet spot of a company is
where it meets customers’ needs in a way
that rivals can’t, given the context in which
it competes.
CONTEXT
(Technology, Industry
demographics, regulation, and so on)
COMPETITORS’ CUSTOMERS’
offerings needs
Sweet
Spot
COMPANY’S
capabilities
81. The Performance Scorecard is an
instrument to navigate your future
success, and a means of effective
communication and motivation.
You link cause and effect.
127. Organizations face a
daunting and seemingly
contradictory set of goals:
• Provide a differentiated client
experience at lower costs
• Generate significant growth while
managing the bottom line
128. Organizations face a
daunting and seemingly
contradictory set of goals:
• Use technology for greater
efficiency without losing personal
client connection
• Standardize and … customize
129. The Common Element:
People – people are more than
ever a source of critical skill and
knowledge as well as the
foundation for sustainable
competitive advantage.
130. The Global Engagement Gap
Where does Canada stand?
7%
23% Engaged
25%
Enrolled
45% Disenchated
Disengaged
Source: Towers Perrin (2009)
131. The engagement gap can be defined
as:
the difference between the
discretionary effort that employers
need for competitive advantage and
employers’ ability to elicit this effort
from a significant portion of their
workforce.
133. The Economics of
Engagement
Part 1
Improving the engagement – and in
turn the performance – of an
employee has the potential to
increase overall productivity by up to
23% on average.
Source: Cascio (2009)
134. The Economics of
Engagement
Part 2
Approximately 68% of your
employees have the potential to
increase overall engagement and
leverage productivity.
Source: Cascio (2009)
135. The Economics of
Engagement
Part 3
The key question is not which talent
group has the greatest value but
rather in which talent group would a
change in performance variation
have the greatest impact?
136. The Economics of
Engagement
Part 4
Performance varies across jobs.
• The nature and scope of the
job
• The relative value of
variations in performance of
the job
137. The Economics of Engagement
Part 5
Potential engagement / productivity
enhancement is position dependent
Low complexity position … 15% boost
Moderate complexity position … 25% boost
High complexity position … 46% boost
Source: Cascio (2009)
138. The Economics of Engagement
What are the high complexity
positions in your organization that
can be most highly leveraged with an
increase in engagement to a boost in
productivity?
139. The Economics of Engagement
Invest in positions where the value of
performance variance is the highest and
the organization gains the most
strategic return.
Find the most pivotal position.
140. Leaders play a pivotal role in the
engagement equation:
The need for effective leadership at
the top
The need for customizing the
culture and work environment to
support employee engagement
Putting employees under the same
microscope as customers to take
actions
145. How Employees Rate Leaders on Key
Engagement Supports
Source: Towers Perrin (2009)
146. The Leadership Divide
Many senior leaders began their
careers in specific professional /
technical positions with key
analytical and rational skills.
Empathy, communication, and
gaining perspective may not be
key strengths even now.
147. The Five Steps
1. Start with the end in mind
2. Specify the skills needed
3. Develop the right skills the
right way
4. Support the transition of pivot
positions
5. Engage and inspire people to
meet business needs
148. The Pivotal Investment
Overall workforce engagement can
be increased with the greatest
leverage through the right
investment – leaders are the critical
supporters needed for this
investment.
149. The Pivotal Investment
To move the productivity curve
outward …
“An investment in
knowledge pays the best
interest.”
Benjamin Franklin
152. People Performance
The leader’s ability to measure and
manage the team’s (and individual’s)
instinctive approach to the drivers of
the strategy will close the gap.
153. The Performance Process
Productive
Action
Motivation
Reason
Instincts Will
Affective Conative Cognitive
154. The Five-Factor Framework™:
Improving Execution through
People Performance
1. Define the strategic drivers
2. Measure the instinctive leadership
approach
3. Measure & assess the instinctive culture to
support the strategy and the
organizational culture
4. Assess the organizational instinctive
performance map
5. Identify and close gaps
155. Define the strategic
drivers
What are the performance
elements that if done better
would most impact the
execution of the strategy
(positions or actions).