staff review of harvard learning annotated 2

8/14/2019 Staff Review of Harvard Learning Annotated 2

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Harvard Advanced ManagementHarvard Advanced ManagementProgramProgram

This a review of my key learning experiences from the Harvard University AdvancedManagement Program, which I attended in September-October 2009.


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Awareness Test Awareness Test

nn http://www.youtube.com/watch?v=Ahg6qcgoay4http://www.youtube.com/watch?v=Ahg6qcgoay4
http://www.youtube.com/watch?v=Ahg6qcgoay4http://www.youtube.com/watch?v=Ahg6qcgoay4http://www.youtube.com/watch?v=Ahg6qcgoay4http://www.youtube.com/watch?v=Ahg6qcgoay4http://www.youtube.com/watch?v=Ahg6qcgoay4


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Why the video? Why the video?

nn The video is a metaphor for the lessons I The video is a metaphor for the lessons Ilearned at Harvard. Because of the way yourlearned at Harvard. Because of the way yourmind works, sometimes you cannot see the mostmind works, sometimes you cannot see the mostobvious issues. In the eight weeks that I wasobvious issues. In the eight weeks that I wasaway I had the opportunity to question the waysaway I had the opportunity to question the waysthat I have approached issues in the past, andthat I have approached issues in the past, andreached some new conclusions about life going reached some new conclusions about life going forward.forward.


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HarvardHarvard s Goals:s Goals:nn Integrated Expertise and KnowledgeIntegrated Expertise and Knowledge

nn Financial Management, International Economics, TeamFinancial Management, International Economics, TeamDecision Making, Organizational Learning, Leading Decision Making, Organizational Learning, Leading Innovation, Corporate Accountability, Strategy Development,Innovation, Corporate Accountability, Strategy Development,Marketing, Negotiating Marketing, Negotiating

nn Individual Development and IntrospectionIndividual Development and Introspectionnn

360 Feedback, Personality Profile, Executive Coach360 Feedback, Personality Profile, Executive Coachnn Action Planning Action Planning

nn AECI Case Studies: Availability, Project Management, AECI Case Studies: Availability, Project Management,Strategic Planning Strategic Planning

nn Global Peer Network Global Peer Network

These were the stated goals from Harvard for the program.

The individual development section provided good candid feedback on my ownperformance. I had an individual executive coach with whom I met to craft a personaldevelopment plan.

We were encouraged to develop personal case studies, applying what we werelearning to real-world issues back home.


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Students from: Airbus, Avery Dennison, Biomerieux, Boeing, Chick-Fil-A,

China Petroleum, Credit Suisse, CSX, Ernst & Young, FederalReserve, Foster-Wheeler, Freemantle UK, Great Plains Energy,Heineken, IBM, IKON, India TV, Itochu Corporation, LVMH,Malaysia (PM, IP), Mitsubishi, Mitsui, MWH, NorthropGrumman, Occidental, Ormat, Parker Hannifin, SerbianAmbassador, Singapore (IP), South Africa Treasury, StoneEnergy, Sumitomo, Stryker, Telegraph Media, Toshiba,Unilever, Vanguard, Zeppelin and others.

My peer network was 160 students from around the world. A few representativecompanies are listed.


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My BlogMy Bloghttp://http:// highleyunlikely.blogspot.comhighleyunlikely.blogspot.com //

I kept a blog of my experiences, and if you really want to learn more about my dailyadventure you can yead it at http://highleyunlikely.blogspot.com

This was my most popular post, an image of Tom Cruise and family gazing at mydormitory, snapped by one of my classmates. I think I got over 80 unique hits that day.Most days averaged 20 to 40 unique visitors to the blog, so I know it wasnt all mymother!


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Financial ManagementFinancial Management

One key area of study was Financial Management.


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Financial ManagementFinancial Management

These were the four main areas of study in Financial Management. I really feel as if Iimproved my understanding of finance in these classes.


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Financial Management LessonsFinancial Management Lessons

nn Importance of Appropriate Staffing Importance of Appropriate Staffing nn One unnecessary employee can destroy $1 million inOne unnecessary employee can destroy $1 million in

shareholder value.shareholder value.nn Importance of ruthless cost controlImportance of ruthless cost controlnn

Value of Equity Value of Equity

I came away with three big impressions from the Financial Management case studiesand my interaction with my classmates.

1) We need to really watch staffing levels and keep them in check. I believe that myDivision has all the people it needs. Rather than add staff we can redeploy thepeople we have.

2) We need to be more vigilant on cost control (a colleague at AECI suggested we

focus on rate control, which is even better because it implies a cost/benefitevaluation).

3) We need to recognize the value of our members equity is greater than the cost of our federally-subsidized debt rate.


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OrganizationalOrganizationalLearningLearning

Another area of emphasis was leading organizational learning.


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2003 2004 2005 2006 2007 2008

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f I n c

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SafetySafety -- OSHA Incident RateOSHA Incident Rate -- CoalCoal AECI AECI

4Q4Q

1Q1Q

NMNM

THTHCoal Avg.Coal Avg.

Our safety performance at AECI was the subject of a personal case study inOrganizational Learning


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In one case, the incidence of incorrect prescriptions was analyzed for several hospitals.You would think you would want to send your child to Memorial 3, right? But actually,Memorial 1 was the safest hospital. Their high reporting numbers reflect anenvironment where employees feel free to report each and every inconsistency andnon-conformance to procedure. As a result, their performance continues to improve.Locations with low reported numbers are not necessarily safer, especially if employeesare reluctant to report due to the threat of reprisal.


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Fundamental Attribution ErrorFundamental Attribution Error

nn The bias of attributing the observed behavior of The bias of attributing the observed behavior of an individual to personality factors rather thanan individual to personality factors rather thanexternal situational factors.external situational factors.

nn e.g. laziness instead of lack of training e.g. laziness instead of lack of training

This is a classis human response to any non-conformance.


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Developing Psychological SafetyDeveloping Psychological Safety

nn DonDon t waste a good crisis!t waste a good crisis!nn Failure is an opportunity for learning.Failure is an opportunity for learning.nn Respond to a failure as if it wereRespond to a failure as if it were data data instead of instead of

sabotage sabotage ..nn (Power Production expanding the use of (Power Production expanding the use of IntelexIntelex,,

considering MOSS as an alternative)considering MOSS as an alternative)

We are attempting to begin this practice in our Division. It is already well-establishedin our safety and environmental compliance areas. We want to take the same process-oriented philosophy and apply it to plant non-conformance events such as forcedoutages and equipment failures.

(MOSS is the acronym for Microsoft Sharepoint.)


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NegotiationNegotiation

Another area in which I really improved my understanding was negotiation techniques.


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NegotiationNegotiationnn Evaluate BATNA, ZOPAEvaluate BATNA, ZOPAnn Underestimation of varianceUnderestimation of variancenn Influence of anchoringInfluence of anchoringnn Leverage loss aversion (losses loom larger than gains)Leverage loss aversion (losses loom larger than gains)nn Status Quo bias (default agreement is sticky)Status Quo bias (default agreement is sticky)nn Token, unilateral concessions (norm of reciprocity) Token, unilateral concessions (norm of reciprocity)nn Aggregate losses, disaggregate gains (lots of small wins, Aggregate losses, disaggregate gains (lots of small wins,

one lumpone lump --sum loss)sum loss)nn Make multiple simultaneous offersMake multiple simultaneous offersnn Assess real options Assess real optionsnn Deal with differing expectations via contingent settlementsDeal with differing expectations via contingent settlementsnn Seek postSeek post --settlement settlementssettlement settlements

These were some key issues we covered. Its all covered in Max Bazermans booknegotiating genius.

I have seen others successfully use these techniques against us in negotiations. Now Iwant to deliver them back.

These topics are based on solid research studies into human interactions.

I was particularly intrigued by the concept of post-settlement settlements. Once the

gloves are off and weve shook hands on an agreement, we should offer to revisit ourrespective cost curves to see if a better agreement can be crafted between us.


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Team Decision Team DecisionMakingMaking

Another good area of study was the human dynamics of Team Decision Making


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We studied Mt. Everest climbers that perished on the mountain, even when there wasclear evidence that they should turn back. We studies the NASA Challenger disaster(and were visited by their chief engineer to discuss the case in detail). By studying howteams can fail in decision making, we can better identify our own weaknesses. We hada number of examples from this page occur during our Norborne discussions.


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Team Decision Making Lesson Team Decision Making Lesson

nn Encourage Encourage conflict and dissent inconflict and dissent indecision making decision making

nn Insure Insure that dissenting opinions havethat dissenting opinions have

a voice (observed a great examplea voice (observed a great exampleat Thomas Hill)at Thomas Hill)


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Strategy DevelopmentStrategy Development

This was another key learning area.


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This has occurred in our division. We once set the bar for others, now we haveregressed to just average. The Red Queen refers to Alice Through the Looking Glass ,in which the Red Queen states that one must run faster and faster, just to stay in thesame place.


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Professor David Yoffes common pitfalls of strategic planning.


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AECI Application AECI Applicationnn

Scenario Planning Scenario Planning nn Include aInclude a stress teststress test

nn Sustained recession and limited growthSustained recession and limited growthnn Return to fast growthReturn to fast growth

I recommend adoption of scenario planning. To learn more, seehttp://en.wikipedia.org/wiki/Scenario_planning

The chart is from my analysis of avoiding scrubber installation. Red is bad, Green isgood. If gas prices are low relative to coal, and a carbon tax of some type is enacted,then an investment in scrubbers cannot be economically justified. (the analysis is verysimplistic)


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StrategyStrategynn What are the key drivers of change? What are the key drivers of change?

nn Look at dataLook at datann Can we predict structural change?Can we predict structural change?nn What needs to change? (congruence analysis) What needs to change? (congruence analysis)nn One sentence strategy:One sentence strategy:

nn

What, why, where, when, how What, why, where, when, how nn In a safe, ethical, and environmentally responsible manner,In a safe, ethical, and environmentally responsible manner,

become and remain the low become and remain the low --cost producer for our memberscost producer for our membersby relentlessly improving generator performance, reducing by relentlessly improving generator performance, reducing expenses, and maintaining strategic alliances with key expenses, and maintaining strategic alliances with key suppliers.suppliers.

The bottom bullet is a proposed one-sentence strategy statement for our division.


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Leading InnovationLeading Innovation

The most useful area of study I encountered was Leading Innovation


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Congruence AnalysisCongruence Analysis

nn Mission, Vision, ValuesMission, Vision, Valuesnn Measure Congruence in:Measure Congruence in:

nn POP CulturePOP Culture ( ( Scott Crise)Scott Crise)1.1. People (competence, confidence, caring)People (competence, confidence, caring)

2.2. Organization (structure)Organization (structure)3.3. ProcessesProcesses4.4. CultureCulture

The concept of congruence analysis suggests that one examines the four areas listed,and determine if each one is congruent with the organizations stated mission, vision,and values. Scott Crise came up with the pop culture acronym.


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People: Influence of Tenure onPeople: Influence of Tenure on

Team Performance Team Performance

Are our people skills (competency, confidence, and caring) congruent with excellencein achieving our mission?

Performance of a team in innovation increases dramatically in the first couple of yearsof its existence, flattening out in the middle few years, and then diminishing as theteams mean tenure increases. This research has been repeated in several industries;the chemical process industry is shown here. For some industries the time frame maychange, but the tendency for people to get accustomed to business as usual and tocease to be open to new ideas is universal. We need to think about how we rejuvinateteams to stop the red queen effect discussed earlier, and to allow us to continueinnovation. So how do we maintain innovation in an aging industry such as ours?


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Organizational Structure AnalysisOrganizational Structure Analysis

I examined the formal organizational structure of our division, in order to determine if it were congruent with an organization that is focused on operating power plantswith high availability to meet our vision of the low cost producer. I think some changesare needed to improve that focus.


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Also in the area of people, here is the informal organization chart of an actualorganization. Number 50 is the CEO. Who has the most influence in this organization?Probably number 52 and 59. We are conducting this mapping exercise in our ownorganization now.


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Another example


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Business Process AnalysisBusiness Process Analysis

Our business processes must be examined. Are they congruent with excellence in plantavailability?

In our division we have already established an excellent process-based system formanaging safety and environmental compliance. It allows us to track assignments andinsure that important tasks are not overlooked. It forces accountability for projecttasks. This is a model that I wish to export to our plant availability effort.


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The most important of the four items People, Organization, Process and Culture isCulture. You can execute the first three perfectly but still find your change effort failingif the cultural issues are not addressed. Cultural issues can be relatively easy identifybut they are the hardest to modify. It takes lots of listening, questioning, andcommunicating to create an aligned culture. We spent the full eight weeks talkingabout the impact culture can have, and various ways for dealing with culture. It wasmy single biggest take-away from the course work.


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The problem (culture) The problem (culture)Management Quality Feedback Index

Plant OverallNew Madrid Lab Electric/Ins t Mechanical Operations Yard

>10 Years service 9 31 67 45 59 14 391 Overall Satisfied 11 67 67 27 66 78 772 Poor Management 13 15 0 33 0 12 253 Dissat is fied + Change Seekers 17 32 33 73 33 23 234 12-month Progress 19 75 67 45 63 90 75

More work than I can finish 27 20 17 36 25 12 465 Your morale 29 59 50 18 50 71 626 Department morale 29 37 17 0 17 56 23

AECI morale 29 35 33 0 25 48 317 Sa tis fac tion wi th sup erviso r 30 64 50 27 50 85 46

Sa tis fac tion wi th Plan t Mg t 31 71 50 27 59 90 70Sa tis fac tion wi th HQ Sr s ta ff 31 64 60 55 58 77 50

8 Commitment to Integrity/Ethics 50 50 9 25 62 70

Composite of 8 measures 63 59 28 55 76 63

Plant OverallThomas Hill Lab Electrical Instrument Mechanical Operations Yard

>10 Years service 9 48 20 33 57 57 34 681 Overall Satisfied 11 50 90 67 43 48 49 382 Poor Management 13 33 0 22 17 30 33 503 Dissat is fied + Change Seekers 17 50 10 33 57 52 51 624 12-month Progress 19 39 80 44 29 20 31 44

More work than I can finish 27 27 60 22 0 19 25 325 Your morale 29 43 80 33 0 55 44 356 Department morale 29 11 30 22 0 5 6 15

AECI morale 29 6 10 0 0 0 8 127 Sa tis fac tion wi th sup erviso r 30 52 70 100 14 57 57 29

Sa tis fac tion wi th Plan t Mg t 31 31 70 33 14 14 27 37Sa tis fac tion wi th HQ Sr s ta ff 31 40 67 51 50 18 33 47

8 Commitment to Integrity/Ethics 37 60 33 43 22 38 35

Composite of 8 measures 44 75 56 32 41 43 36

DepartmentsAttribute

DepartmentsAttribute

We have a fantastic tool for beginning our cultural assessment: the annual employeesurvey. This is an excerpt of our internal analysis of the survey data. This has providedclues to areas we can address in culture.


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Congruence Analysis of Congruence Analysis of Performance GapsPerformance Gaps

nn Root cause analysisRoot cause analysisnn Why, why, why Why, why, why

nn Some questions to ask Some questions to ask nn What Whats important around here? (culture)s important around here? (culture)nn How are you rewarded? (culture)How are you rewarded? (culture)

nn How is your time spent? (culture)How is your time spent? (culture)nn How is our organization structured? (organization)How is our organization structured? (organization)nn What practices need to change? (process) What practices need to change? (process)nn What skills are needed to succeed? (people) What skills are needed to succeed? (people)nn How do people react to you? (people)How do people react to you? (people)

Some more thoughts on how to analyze the congruence of an organization with itsstated goals.


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Leading Change Framework Leading Change Framework

We are now firmly in phase one, and moving into phase two of our change effort onplant availability. The change effort on project cost management is just entering phaseone.


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Explore vs. Exploit an Ambidextrous organization

We need to continually exploit our existing strengths and assets, while simultaneouslycultivating a group that continually explores the horizon for other new opportunities.This is the concept of the ambidextrous organization.


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Social Networks andSocial Networks andNew MediaNew Media

One final area of study that I believe offers great opportunities for our company issocial networks and new media. They offer more ways to communicate our goals andobjectives while seeking feedback from our employees. They are very effective atflattening the organization. No one mode of communication is perfect for everyone.Some people will read a printed flyer, while others prefer email. Some want a voicemail, some want an email. Some would turn first to Facebook or Linkedin. Somewould read a blog; others wouldnt touch it. For us to be effective we have to embrace

all of these forms.


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New MediaNew Media

nn Wikipedia pages Wikipedia pages internal Wiki?internal Wiki?nn InnocentiveInnocentive internalinternal innocentiveinnocentive??nn Communication ToolsCommunication Tools

nn Twitter Twitternn Facebook Facebook nn LinkedinLinkedinnn BlogsBlogsnn SharepointSharepoint!!

nn AECI needs to manage these media AECI needs to manage these media

If we dont manage these media, someone else will.


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For example, we have a corporate page on Linkedin, but we arent currently managingit.


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CorporateCorporate Accountability Accountability

(Governance & Ethics)(Governance & Ethics)

Our final major area of case studies involved governance and ethics.


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Theres that culture idea again, you just cant get away from it.


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8 Weeks Summarized8 Weeks Summarized

nn Become a Force for Change. If notBecome a Force for Change. If not youyou, who?, who?nn Waiting just delays improvement. Waiting just delays improvement.

nn Ruthless pursuit of cost reduction (a.k.a. rateRuthless pursuit of cost reduction (a.k.a. ratereduction)reduction)

nn

Importance of cultureImportance of culturenn Importance of accountability/measurementImportance of accountability/measurementnn You can You can t overt over--communicatecommunicate

staff review of harvard learning annotated 2

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