leading & managing transformational change

PRESENTATION TO

The Conference Board Talent Management Conference Axiom Consul?ng Partners February 12, 2016

Leading & Managing

Transformational Change

Axiom Consul7ng Partners | Perspec7ves on Transforma7onal Change | PAGE 2

What we will cover today

 Our perspec7ves on: §  What it takes to lead and manage transforma7onal change

§  What we look for in terms of leadership readiness for transforma7onal change

§  The role of HR in transforma7on


Axiom Consulting Partners helps leaders to align strategy, organization and talent to deliver sustainable and profitable growth

We help clients clarify strategy and create compe??ve advantage: §  Strategy Clarifica7on §  Leadership Alignment §  Value Analysis (Value Tree Mapping) §  Growth & Sales Effec7veness §  M&A Integra7on

We help clients build organiza?ons designed to support effec?ve execu?on: §  Organiza7on Design & Restructuring §  Governance & Opera7ng Model §  Business Process Improvement

We help clients ensure they have the right mix and quality of people, deployed in the right roles: §  Strategic Workforce Planning §  Reward Strategy & Compensa7on Program Design §  Succession Planning §  Talent Assessment & Selec7on Systems §  High Poten7al & Execu7ve Leadership Development §  Employee Engagement & Value Proposi7on

strategy

talent

organiza?on

For further informa.on, go to: www.axiomcp.com

FIRM SNAPSHOT §  Founded in 2005 §  Experienced Prac77oners: average of 20 years experience as consultants and corporate execu7ves

§  Five loca7ons: Aus7n TX, Chicago, New York, Washington, D.C., and Brussels (EU)


Companies and their leaders often make three common mistakes when undertaking transformational change 1.  Lack of Workforce Alignment—From Leaders to the Front Line

a.  Too little emphasis and/or assumed to already be in place b.  Focus on gaining compliance versus commitment c.  Only appeal to the head (facts) and not the heart (motivation)

2.  Lack of Understanding of and Investment in Required Future Culture and Capability a.  Failure to step back and understand future culture and capability requirements

(knowledge, skills, processes) and current gaps and their impact b.  Lack of business focus when identifying/developing new capability c.  Failure to invest (time, $$, effort) to close gaps d.  People are unclear about what support will be provided and what is expected of them in

return (i.e., “the deal”)

3.  Lack of Focus, Mechanisms, or Courage to Sustain the Change a.  Change seen as a sprint versus marathon/event versus process b.  Focus only on what’s broken vs. recognizing success and dealing decisively with the rest c.  Failure to install mechanisms that maintain resilience and momentum and that reinforce

required future culture and capability


Successful transformational change requires leaders throughout the organization to focus relentlessly and courageously in three areas

Align

§  Strategy and Vision §  Ra?onale for Change §  Organiza?on and Individual Expecta?ons §  Net Benefits §  Roadmap

Equip §  Organiza?onal Capabili?es and Individual Competencies

§  Organiza?on Design §  New Cultural Norms of Behavior

Sustain §  Leadership that is pa?ent with first steps and ruthless with obstacles

§  Measurement and Reinforcement §  Course Adjustment and Fine Tuning

LEADER FOCUS


Focus and effort across all three areas will shift over time as you seat the change and establish the “new normal”

Rela?v

e % of ?

me

on each priority

Time

ALIGN

EQUIP

SUSTAIN

Leadership Focus in Transforma.onal Change ALIGN, EQUIP, SUSTAIN  All are necessary—none are

sufficient on their own

 All occur throughout —albeit to varying degrees depending on where you are in your journey

 % of ?me spent in each area will shi\ over ?me—that said, leaders should recognize that their efforts are never “done” in any area


Area Key Topics Priori?es

Align

§  Strategy and Vision §  Ra7onale for Change §  Organiza7on and

Individual Expecta7ons §  Net Benefits §  Roadmap

•  Engage con7nuously in purposeful and engaging conversa7on

•  Successively increase levels of specificity and decrease levels of op7onality

•  Create understanding and resonance at the personal level (WII-‐FM)

•  Show a realis7c path forward and candidly describe the challenges ahead

LEADER FOCUS

Alignment efforts build both clarity and commitment



Equip

§  Organiza7onal Capabili7es and Individual Competencies

§  Organiza7on Design §  New Cultural Norms

of Behavior

•  Know and act on what drives value •  Translate value into organiza7on capabili7es and individual competencies

•  Comprehensively assess how current design and culture help/hinder strategy

•  Brutally and honestly assess talent gaps

•  Invest with focus to re-‐align talent •  Fully engage workforce in organiza7on and culture redesign

LEADER FOCUS

Leaders must clearly understand the interplay among strategy, organization, talent, and culture to equip their organization for future success

8


Sustaining the change requires diligence, courage, and a bias for action


Sustain

§  Leadership Measurement and Reinforcement

§  Course Adjustment §  Removal of Most

Persistent Obstacles

•  Formal changes in both formal and informal measures and rewards

•  Relentless focus on reinforcing and promo7ng new ways of working and behavior

•  Swig and appropriate consequences for destruc7ve behaviors and ways of working

•  Make regular, honest assessments of progress on all the required changes – and act on the result

LEADER FOCUS


Five attributes we look for to understand a leader’s readiness to transform their organization—and themselves

Honest Reflec?on §  Personally as a leader §  Their track record of performance §  The organiza7on they have built or led §  Their leaders and employees

Courage §  Speak the truth §  Burn bridges behind them §  Change course, but always with the end in mind

§  Take smart risks §  Make tough calls on processes and people, especially those they care about most

Confidence and Trust §  To say “I don’t know” and “It’s my fault”

§  Lead from the front and take leaps of faith

§  Be alone at 7mes during the journey §  Trust and empower

Pa?ence §  Engage in meaningful conversa7on (balance learning with telling and selling)

§  Stay the course §  Invest for the long term, sustainable return

1

2

3

4

Bold Thinking and Bias for Ac?on 5


We believe HR plays a critical role in transformation

§  Shape the strategy and help surface and ar7culate the case for change

§  Help leaders: •  develop and apply the skill of leading others through change

•  understand the interplay among strategy, organiza7on, talent and culture

•  translate the strategy into a plan that clearly ar7culates future workforce needs

•  translate the strategy into tangible and personal change statements that build employee clarity and commitment

•  Communicate: two-‐way, mul7-‐channel

§  Help leaders and employees maintain focus and faith in midst of what may feel (and be) chao7c and fa7guing

§  Shine a light on the organiza7on and its leaders and do it with facts and figures

§  Func7on as an objec7ve third party when it comes to tough discussions and decisions on people, organiza7on and culture, and insist that leaders lead

§  Build leader understanding of changing organiza7on design and culture and lead them through it

§  Design and implement simple processes that work to enable leaders to equip themselves and the business with the right talent and organiza7on

§  Drive the changes needed in formal and informal consequences to sustain the transforma7on

Equip Sustain Align and


We keep an eye out for these signs that indicate a transformation is stalled or at risk of failure

1.  Old ways of work re-‐emerge without challenge

2.  “Budget” considera7ons reduce communica7ons and engagement

3.  Organiza7on design focused on boxes and lines and not on fundamentally changing the work and how it gets done

4.  Underes7ma7ng, ignoring, or trea7ng organiza7on culture as if it were a ‘send the memo and it shall be so’ issue

5.  Deferring/ignoring tough conversa7ons/decisions

6.  Senior team blames lack of progress on the levels below them


Biographies


Don Ruse Expertise

Don Ruse has over 30 years of experience helping companies improve their ability to execute strategy. Mr. Ruse has worked in a variety of global organiza7ons across a broad spectrum of businesses, including considerable experience working with innova7on-‐based mul7na7onals in both developed and emerging markets. Mr. Ruse specializes in helping companies clarify business strategy and improve execu7on through changes in work process, job design, organiza7on structure and organiza7on governance. He also specializes in helping companies ensure they have the right number and type of talent needed to execute their strategy through talent management processes that forecast, develop and manage talent.

Notable Achievements

§  Developed and deployed a capabili7es-‐based business strategy and organiza7on for a division of a global technology company resul7ng in improved technology development, technology commercializa7on, and top and bonom-‐line growth.

§  Designed and implemented new work processes and organiza7on structure for the North American Financial Shared Services Center and Indian Finance Opera7ons Center of a global diversified technology company that reduced cycle 7me and total cost to serve, while increasing customer sa7sfac7on with services received.

§  Designed a corporate strategy and structure for a Japanese Pharmaceu7cal company to coordinate and govern four discrete businesses established to discover, develop, make and sell drugs within the NAFTA market resul7ng in increased coordina7on and collabora7on across the businesses, improved speed to market, and reduced overall infrastructure costs through the implementa7on of a shared services model covering the HR, Finance, IT, and Legal func7ons.

§  Designed and implemented a Manufacturing and Engineering strategy and global organiza7on structure for a $4bb division of a diversified global technology company based in Tokyo that underwent significant and rapid matura7on of its worldwide product markets.

§  Designed and implemented large-‐scale organiza7on transforma7on for a property and casualty company. Worked with senior leadership to develop strategy for merging two businesses into one geographic business unit, define strategy and direc7on of new business unit, and define accountabili7es for execu7ve team and next level down.

§  Developed comprehensive organiza7on, change management, and talent strategy to support mul7-‐year transforma7on of global Finance, IT and HR organiza7ons for a diversified technology company. Worked directly with senior leadership to iden7fy organiza7on, change management and people implica7ons of moving to a centralized model intended to halve func7onal costs to 1.1% of revenue.

Professional Background

Prior to joining Axiom in 2008, Mr. Ruse spent 13 years with Sibson Consul7ng. Mr. Ruse helped establish and co-‐led Sibson’s Organiza7on and Talent Prac7ce, managed Sibson’s Raleigh office and served as an elected Managing Partner of the firm. Before joining Sibson, Mr. Ruse spent 12 years as a prac77oner and manager in the areas of organiza7on development, human resources and strategic planning. He held various management posi7ons with AlliedSignal, Mobil Oil, The Quaker Oats Company and Lennox Interna7onal.

Education

Mr. Ruse earned his MBA from the TRIUM Global Execu7ve MBA program offered through NYU Stern School of Business, London School of Economics and Poli7cal Science, and the HEC School of Management, Paris. He earned his BSBA from Bowling Green State University.

Professional Affiliations / Published Works

Mr. Ruse speaks frequently on the topics of Organiza7on and Talent. His most recent speeches have highlighted how companies can effec7vely forecast and manage talent and deploy flexible organiza7ons in developed and developing markets. He has shared his perspec7ves with such organiza7ons as The Conference Board, Human Resources Planning Society, and Ins7tute for Interna7onal Research. Mr. Ruse is frequently published and his work has included ar7cles in Research and Technology Management, HR Execu7ve, and Associa7on for Manufacturing Excellence.


Allan Ackerman Expertise

Allan, an Axiom partner, brings his lifelong interest and experience in business, design, leadership, and growing organiza7ons to work alongside client execu7ves to shape and implement clear strategies that create a compe77ve advantage. In many cases, he helps clients develop and apply the specific organiza7onal change and leadership skills needed to achieve permanent improvement in results.

Over the course of his thirty-‐year consul7ng career, Allan has led projects and advised execu7ves in a range of industries across Europe, Asia, and the Americas, serving both large global firms and smaller rapidly growing organiza7ons in the consumer, industrial and technology sectors.

Allan’s dis7nct areas of exper7se include:

§  Strategic direc7on-‐setng, decision-‐making, and organiza7on-‐wide strategy implementa7on, including work with teams to implement significant strategic ini7a7ves in a range of topics including organiza7onal workflow and structural redesign

§  Alignment of en7re organiza7ons, their execu7ve teams, and a cri7cal mass of employees during pivotal periods

§  Leadership and management development that improves organiza7onal bench strength, shigs the culture to what is needed, and has a posi7ve impact on the company’s performance

§  Coaching senior execu7ves and execu7ve task force members to improve their effec7veness

Professional Background

Allan served as a Managing Director at RNW Consul7ng from 1997 to September 2012, when RNW merged with Axiom. Allan also served as a Vice President at the Forum Corpora7on, another respected interna7onal consul7ng firm, where he first started helping companies develop strategy, execute strategy effec7vely, develop bener leaders and drive complex technical and cultural change.

Earlier in his career, Allan served as President and Founder of Energyworks, Inc., a company that permanently reduced the energy consump7on of buildings na7onwide through lines of business including sogware development, engineering services, and construc7on. Allan has led teams conduc7ng applied research for federal agencies in several fields, most prominently residen7al energy conserva7on. In 1977, during America’s first energy crisis, Allan was lead author of a guide to energy-‐saving home improvements that sold more than two million copies.

Education

Allan holds a Master of Architecture degree from the Harvard Graduate School of Design and a Bachelor’s degree from Dartmouth College.

Professional Presence / Published Works

Allan is an author and co-‐author frequently on the topics of change, leadership, organiza7onal design, and how to orchestrate strategies integra7ng all three.

Five 7mes a year, Allan leads high-‐energy, memorable experien7al sessions at the University of Chicago’s Booth School of Business for Execu7ve MBA and entering MBA students in leadership, influence, and teamwork.

leading & managing transformational change

Leadership & Management