the 22nd icpsk · firms of endearment average annual return 13.10% s&p 500 average annual...
TRANSCRIPT
THE 22nd ICPSK
ANNUAL
INTERNATIONAL
CONFERENCE
April 11th-13th, 2018
THE SAROVA WHITESANDS BEACH RESORTAND SPA, MOMBASA
‘The Governance Profession’
Presented by Dr Caesar Mwangi
Centre for Personal Leadership
‘The Governance Profession’
Organisational excellence
The role of Leadership
Presented by Dr Caesar Mwangi
Centre for Personal Leadership
Leadership drives culture
Culture drives
ORGANISATIONAL
EXCELLENCE
Leadership needs to focus on
values and culture to achieve
excellence........
‘The Governance Profession’
My Hypothesis
‘The Governance Profession’
Presentation outline:
1.Reflections on leadership
2. The concept of excellence
2. Understanding culture
3. link to performance excellence
3. ENTROPY – KILLER OF EXCELLENCE
4. RESEARCH FINDINGS - SEEKING EXCELLENCE
5. Making the link – Leadership, culture, excellence
6. WAY FORWARD AND DISCUSSION
‘The Governance Profession’
Defining Excellence:
Organizational excellence helps an organization to
excel in all its sphere of activities. It makes the
organization to achieve and sustain outstanding
levels of performance which meets or exceeds the
expectations of all the stakeholders.
‘The Governance Profession’
‘The Governance Profession’
Source: Ispatguru.com
Individual Exercise
1. Take one minute and jot down the names of three leaders whom you believe stand out as great leaders. At least one should be a Kenyan
2. Next to the name indicate why you believe they are effective.
‘The Governance Profession’
‘The Governance Profession’
9
‘The Governance Profession’
Why are they great? Feed back from the past
Made a differenceHad a visionFocused on the common goodDecisive and determinedCompassionateInspired others to actionCan be trusted by othersWalks the talkEthical in all dealingsAdmirable human qualities (Character)
‘The Governance Profession’
Who is a leader?
“When I first recognized a call to write a book on leadership, I resisted the idea. I was unsure I could add anything to the volumes of books that have already been written on this topic . When I did a search on Leadership, Amazon listed 330,000 books”.
Richard Barrett, Author of The new leadership paradigm, 2010.
Who is a leader? Barretts view
• “ A leader is someone who has a way of being that enabled them to handle any situation they had to face from a place of calm and in a way that benefited the greater common good”
Who is a leader? Someone who…• Could take charge in a crisis situation;• Could connect with the common man;• Could build high performing systems that
make things work;• Empowers people to become all they could
become• You can trust and creates an inspirational
vision• Has empathy and cooperates with others in
strategic alliances for mutual benefit• Has the wisdom compassion and foresight to
to build a sustainable future for humanity.
Who is a leader….View from Havard
• “ Leadership is not reserved to an elite. It is the vocation not of the few, but the many……..
• Heads of state and school teachers, captains of Industry and house wives, military chiefs and health care workers – all exercise leadership”
Alexandre HavardAuthor of Virtuous Leadership: 2007)
Leadership link to service….
• “ Mature Human beings seek not only a decent salary and interesting things to do, but also the means to develop themselves as persons, to serve others, to find a sense of meaning in their work” p.40
Alexandre Havard… Virtuous leadership (2007)
Leadership link to service……
• We all it seems need a purpose beyond ourselves to make the best of ourselves
• (Charles Handy: The hungry spirit: Beyond Capitalism - A quest for purpose in the modern world)
Leadership linked to service….
• Work enables a person to overcome his ego centeredness by joining with other people in a common task.
• (EF Schumacher, German Economist, 1973)
Leadership linked to service….
• Servant Leadership: “Servant Leadership begins with the natural feeling that one wants to serve; to serve first.”
• Robert K. Greenleaf introduced the concept in 1970
• Ultimate test: Do those served grow as persons; become healthier, wiser, freer, more autonomous, more likely themselves to become servants?
Leadership linked to Character….….
• “It is Character through which leadership is exercised”.
• Peter Drucker, The practice of management, p155.
What is ..The content of your character?The sum total of the virtues that you practiceona daily basis......
Leadership Key themes
• About serving others
• About our character (Exercise virtues)
• Purpose beyond ourselves
• From “I” to “we”
• It is about our being (Who we are)
• More than a title.
• Need to know ourselves
• Need to reflect on our values
Evolution of Business Paradigms
Culture is now a fundamental driver of operational and financial performance
Consciousness Age
Information Age
Industrial Age
Agrarian Age
1800 1900 2000 2100
Quality and skilled labour
Manpower
Intellectual capital
Cultural capital
Insights on Culture: Peter Drucker
“Culture” eats strategy for breakfast.”
— Peter Drucker
Insights on Culture: Defining culture
Organisational culture expressed in the valuesand behavioural standards a specific organisation considers important.
Organisational culture influences behaviour.
Behaviour -“observable actions and forms of internal activity” Wijsman (2004)
Culture linked to Beliefs, Behaviours and values
BeliefsAssumptions (opinions, doctrines or principles) held as true by a person or group of individuals.
ValuesThe energetic drivers of our aspirations and intentions.
BehavioursThe visible manifestation of our motivations. Behaviours are driven (consciously or subconsciously) by our beliefs and values.
Culture cannot be seen......Hence it is often ignored…….
OBJECTIVE(STRATEGY)
SUBJECTIVE(CULTURE)
We ignore what we do not see
We focus on what we see and can measure or document
Vision, mission, espoused values, member numbers, structures, policies, processes, procedures, services/ products, financial statements
Ideas, historic patterns, lived values, attitudes, unconscious beliefs, assumptions, perceptions, feelings, fears, leadership styles, stories, myths, group norms
Example of a Great Organisation
Dedicated employees
Costs controlled
Flexibility
Appreciation
Professional attitude
Common goal
Count on each other
Creativity
Entrepreneurship
Perseverance
Ability to make things discussable
Share knowledge and experiences
Drive to achieve something
Goal we all find worthwhile
Everyone contributes in it's of her own way (talents)
Enthusiasm
Meaningful
Accountability
Commitment
Shared vision and values
Openness and transparency
Dare to be criticalPassion
Knowledge
Informing each other
High standards set
Good team spirit
Professional proudness
Good working relationships
Money well spent and accounted for
Room for own decisions
Results driven by values based leadership
Leadership
Policies and procedures followed.
Solve problems well
Engagement from all
Respect
Humor & fun
Empowerment
Diversity
Willing to do more if needed
Trust
Compassion
Celebrate successes
Collaboration
Open communication
Flexibility
Efficiency Urgency
Solution focus
Participative
Engagement
Individual recognition (being seen!).
Adaptability
Targeted Cashflows
Expertise and competence
Cooperation
Consultation
Continuous learningPositive approach
Perseverance
Integrity
All of us were pulling into one direction
Honesty
Friendship
Social interactions
"we are the champions“ mentality/drive
Encouraging atmosphere
Profitable VentureSupporting many families
Example of a Great ICPSK
Membership growing
Costs controlled
Flexibility
Appreciation
Professional attitude
Common goal
Count on each other
Responsive
Entrepreneurship
Perseverance
Share knowledge and experiences
Drive to achieve something
Goal we all find worthwhile
Everyone contributes in their own way (talents)
Enthusiasm
Meaningful
Accountability
Commitment
Shared vision and values
Openness and transparency
EthicalPassion
Knowledge
Informing each other
High standards set
Good team spirit Professional proudness
Good working relationships
Enhanced corporate image
Room for own decisions
Leadership
transform institutions Solve problems well
Engagement from all
Respect
Humor & fun
Empowerment
Diversity
Willing to do more if needed
Trust
Compassion
Celebrate successes
Collaboration
Open communication
Flexibility
Efficiency Urgency
Financial sustainability
Participative
Innovative
Individual recognition
Adaptability
embed good governance practices
Expertise and competence
Cooperation
Consultation
Continuous learningPositive approach
Integrity
All of us pulling in one direction
Honesty
Friendship
Excellence
"we are the champions“ mentality/drive
Encouraging atmosphere
To be the premier centre of excellence in governance promotion and development in Africa.
Results driven by values based leadership
Perseverance
2004
Example of Visionary LeadershipThe Dubai Story- 13 years of progress
1991
2004
Example of Visionary LeadershipThe Dubai Story- 17 years of progress
1991
2008
Role of Leadership
Clarity of purpose
Focused on the good of the people
Audacious goal to be the best in the world
Role of Visionary Leadership
Sense of urgency
Better life of the people
Focus on others not on self
Managing Culture critical for good governance
Be aware that culture Impacts Performance
Important to measure and monitor your culture over time
Culture Measures enable Organisations to improve culture, employee engagement and performance
Research findings prove culture impacts performance and hence needs attention.
Measurement of culture: Cultural Entropy
The amount of energy in a group that is consumed in unproductive work.
A measure of the wasted energy
conflict, friction and frustration that exist within a group.
Cultural EntropyCultural Entropy measures that percentage of
fear, dysfunction, negative and destructive
energy in an organisation due to limiting values.
40% = Crisis
10% = Healthy
Research finding: Low Entropy leads to high levels of employee engagement
This research of 163 organisations in Australia was carried out by Hewitt Associates and Barrett Values Centre.
CULTURAL ENTROPY
STAFFENGAGEMENT
TIER 1 (BEST) 5% 89%
TIER 2 8% 76%
TIER 3 15% 55%
TIER 4 (WORST) 21% 40%
Research finding:Low Entropy Leads to High Revenue Growth
This research of 163 organisations in Australia was carried out by Hewitt Associates and Barrett Values Centre.
ENTROPY LEVEL
3-YEAR REVENUE GROWTH
TIER 1 (BEST) <10% 32.87%
TIER 2 10–19% 24.90%
TIER 3 20–29% 11.39%
TIER 4 (WORST) >29% 11.07%
Measurement: Example of 2 Organisations
Core Values Core Values Integrity, Compassion, Accountability, Respect, Excellence Client collaboration, Teamwork, Delivery, Meritocracy, Integrity
Accountability
Customer Satisfaction
Being the best
Commitment
Compassion
Continuous improvement
Integrity
Teamwork
Cost effectiveness
Respect
Long hours (L)
Being the best
Cost reduction (L)
Poor communication (L)
Client collaboration
Bureaucracy (L)
Confusion (L)
Arrogance (L)
Hierarchy (L)
Silo mentality (L)
Cultural Entropy 9% Cultural Entropy 37%
Leadership linked to culture and excellence
The Culture of an Organisation is a reflection of
leadership consciousness (values and beliefs)
Organizational change begins with the personal
transformation of the leaders
Therefore
Top 40 publicly traded Best Companies to Work for in North AmericaAverage annual Return 16.39%
S&P 500Average annual Return 4.12%
Lessons from ResearchBest companies to work for in N. America
Firms of EndearmentAverage annual Return 13.10%
S&P 500Average annual Return 4.12%
Rajendra S. Sisodia, David B. Wolfe, and Jagdish N. Seth, Firms of Endearment: The Pursuit of Purpose and Profit (Wharton School of Publishing, 2007)
Lessons from Research: Firms of Endearment
Levels of Organisational ConsciousnessPositive Focus / Excessive Focus
Financial StabilityShareholder value, organisational growth, employee health, safety. Control, corruption, greed
BelongingLoyalty, open communication, customer satisfaction, friendship. Manipulation, blame
High PerformanceSystems, processes, quality, best practices, pride in performance. Bureaucracy, complacency
Continuous Renewal and LearningAccountability, adaptability, empowerment, teamwork, goals orientation, personal growth
Building Corporate CommunityShared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency
Strategic Alliances and PartnershipsEnvironmental awareness, community involvement, employee fulfillment, coaching/mentoring
Service To Humanity And The PlanetSocial responsibility, future generations, long-term perspective, ethics, compassion, humility
Survival
Service
Making a Difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Leadership, Culture and Excellence
GOOD TO GREAT TEAM TEAM OF ENDEARMENT
Perf
orm
ance
Culture
TRANSFORMADAPT
COMPLY
Accomplish tasks and budget to satisfy
self interest
CONTROL
MAKE A DIFFERENCE
Innovate for stakeholder satisfaction and loyalty;for business & system
sustainability
EMPOWER
ACHIEVE
Achieve personal objectives to satisfy
self interest
COORDINATE
ADD VALUEInnovate for that extra mile,
and for the common interest of the organisation
MOTIVATE
CONVENTIONAL TEAM
Where is your organisation on this journey?
Whole system approach to Change.....
A whole system approach calls for actions in all four dimensions at the same time
COLLECTIVEINDIVIDUAL
OBJECTIVE
SUBJECTIVE
Source: K Wilber – Integral Model “A Brief History of Everything”
Environment
MissionAlignment
ValuesAlignment
Pe
rso
nal
Alig
nm
en
t
CharacterActions and Behaviours
of the Leaders
PersonalityValues and Beliefs
of the Leaders
CultureValues and Beliefs of the Organisation
StructuresActions and Behaviours
of the organisation (Excellence)
2 4
1 3
Structu
ralA
lignm
en
t
Stages of transformation
Unconscious
Incompetent
Conscious
Incompetent
Unconscious
Competent(Excellence)Conscious
Competent
Which quadrant are you on?
Key Conclusions
1. Leadership drives culture
2. Culture drives performance excellence
3. Leadership needs to know their dominant beliefs and values
4. Culture needs to be tracked in the quest for excellence
5. Governance is incomplete without culture management
LEADERSHIP DRIVES CULTURE
CULTURE DRIVES ORGANISATIONAL EXCELLENCE
ORGANISATIONS CANNOT AFFORD TO IGNORE CULTURE MANAGEMENT LINKED TO LEADERSHIP TO ENHANCE GOOD GOVERNANCEWAY FORWARD: LEADERS NEED TO MAINSTREAM CULTURE MANAGEMENT AS PART OF GOVERNANCE FOR ORGANISATIONAL EXCELLENCE
My Thesis.................Culture eats strategy for breakfast and culture is primarily driven by leadership
The Governance Profession
Comments, questions, observations
Organizational excellence helps an organization to excel in all its sphere of activities. It makes the organization to achieveand sustain outstanding levels of performance which meets or exceeds the expectations of all the stakeholders.
THANK YOU www.cplafrica.co.ke
WEBSITE
+254 720204922
+254 732204922
PHONE
Dr Caesar Mwangi
Centre for Personal Leadership
ADDRESS