...Leading Change for Strategy Execution Dr. Robert S. Kaplan Baker Foundation Professor, Harvard Business School Executing strategy: Senior executives’ #1 issue The Balanced Scorecard: The Central Component in a New Strategy Execution Management System Private Sector Organizations Financial Perspective "If we succeed, how will we look to our shareholders?” Customer Perspective "To achieve our vision, how must we look to our customers?” Process Perspective "To satisfy our customers and shareholders, at which processes must we excel?” Non Profit and Public Sector Organizations Mission (Customer) Perspective “How do we have a social impact with our citizens/constituents?” Support Perspective “How do we attract resources and authorization for our mission?” Process “To have a social impact and to attract resources and support, at which processes must we excel?” Learning & Growth “How do we align our intangible assets to improve critical processes?” Learning & Growth “How do we align our intangible assets to improve critical processes?” Financial “How should we manage and allocate our resources for maximum social impact?” 3 Palladium Balanced Scorecard Hall of Fame for Executing Strategy® : By Industry 2000-2010 The Management System for Strategy Execution Links Vision and Strategy to Operational Excellence 2 TRANSLATE THE STRATEGY DEVELOP THE STRATEGY • Mission, Values, Vision • Strategic Analysis • Strategy Formulation 1 • • • • Strategy...
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...Contents Introduction 3 role of Vision, Mission and Strategy 3 Application Analysis 3 Vision 3 Mission 4 Strategy 4 Lessons Learned 4 References 6 Introduction Tofas is one of Fiat Auto's 3 strategic production centers worldwide today. Tofas symbolizes a great value and power beyond argument within the Turkish Automotive Industry. This case discusses the challenges faced by Tofas in their organizational design change. role of Vision, Mission and Strategy Vision is something that is essential to production successful organizational change. It should be articulated early and it’s up to leaders to do this. Vision drives change and vision telling or selling approach to inform people what will be vision and why. Top-down responsibility Vision usually paints a picture of future and inspirational, mission statements are more purposive and instrumental in outlining what needs to be done. Goals and strategy statements define specific outcomes. They articulate how the organization will progress toward the future. In this case change affects the performance, customer service and whole departments. Vision has apparently become core to managing organizational change. Application Analysis Vision To become Turkey’s leading automotive corporation and Fiat’s ‘preferred’ R&D and production hub. R&D plays an important role in the innovation process. It results in the technology that brings new products and services to the market place or underpins better processes...
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...Aligning Employees Leading Strategic Change Robert S. Kaplan Marvin Bower Professor of Leadership Development, Emeritus Copyright © President & Fellows of Harvard College Align employees to the strategy: Four HR processes 1. Create Strategic Awareness Communicate Communicate Communicate 2. Align Personal Goals Personal Scorecard Make Strategy Everyone’s Job 3. Provide Necessary Skills Strategic Job Families Strategic Readiness 4. Align Personal Incentives Variable pay Team based You need a formal process to improve workforce readiness. Strategy should be linked to existing HR programs for performance management. How do we align employees to the strategy? 1. Create Strategic Awareness Communicate Communicate Communicate 2. Align Personal Goals Personal Scorecard Make Strategy Everyone’s Job 3. Provide Necessary Skills Strategic Job Families Strategic Readiness 4. Align Personal Incentives Variable pay Team based Communicate “seven times seven different ways” to make strategy everyone’s job Personal relevance brings the strategy to life Sustained communication uses different channels to get the message across • Leadership meetings • CEO random visits to employees • Dear Colleague Quarterly Letter in Mellon News • Learning lunches & informal discussions • Intranet • Working groups facilitated by HR • Staff briefings Source: Presented by Jack Klinck, Vice Chairman, Mellon Europe at BSCol European...
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...1 Introduction When you check out a company’s website, you will normally find their vision and mission statement posted in their About Us link. This is a statement of purpose determined by management based on an organization’s core values and beliefs that defines the organization’s identity and combines and ideal manifestation of its direction together with a tangible prescription for realizing its goals.1 This is mainly the statement for the overall company. Within different departments, some managers may have an additional vision statement for the department and the workers. At the supply and distribution company that I work for, I believe that there could be a vision, mission and strategy statement for each individual department, especially the Parcel-Packing department. The head department manager recently took on a change initiative to determine why the department was experiencing an overload of orders not being packed, when the flow of work had not changed. From observation, he took on the role of an interpreter in managing the change. In order to go about change, a vision had to be made. For the Parcel-Packing department, I have developed vision, mission and strategy statements that will hopefully help the change manager with the change initiative task. It is important to have these statements for this individual department due to the fact that with a change occurring, it will help to keep the focus of the goal that is to be achieved. Application Analysis While...
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...Understanding the Process of Change is a Key to Successfully Transformed Organization Japeth Jacob Massey school of Engineering 26 April 2010 Abstract Process of change is the key. Change can be brought about only and if we understand the process of change. This paper presents the major obstacle to change and the major failure leader often overlook. Change takes time and cost money. The objective of the paper is to discuss the failure of ineffective transformation and clarifying the process for change to save guide leaders to successfully implement effective transformation. Keywords: Five Ps, Resistance, Vision, Strategy, tactics and People INTRODUCTION Today change is universal. Change is essential in both public and private sector organization to be competitive in today’s turbulent environment. Often leaders failed to successfully transform their organizations in achieving their business goals. In fact, most of the leaders fails to understand the type of resistance involve, therefore ending up wasting a lot time in inappropriate measure of trying to solve the problem. Further more we often miss some of the significant part of the transformation process in which our change efforts turns to be not that effective as we expect to. In order to successfully bring transformation we need to sail out to all the three islands of change 1. RESISTANCE TO CHANGE Change is dealing more with the behaviors. As often when trying to get people out of their comfort zones it’s...
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...shares his experiences of the change process within organizations. He has been observing the change process for about 30 years. He studies a paradigm shift of old management models that are not compatible with today’s fast paced changing business environment and shifting global economy. The book has a lot of helpful advice about dealing with this change process. The book is a guide for today’s organizations to deal with the new technology innovation, economic uncertainty, and ever changing. It’s divided into three sections. The first two chapters discuss the reasons behind the failure of more than 100 companies of making themselves better competitors. The author discusses the reasons behind the failure of most organizations even though they throw money and effort to win, and how executives and leaders can turn the thinking processes and behavior of large groups around. Many organizations are failing because they follow the philosophy “if it’s not broke, don’t fix it”. The author calls companies to embrace transformations from the old strategy of micro-managing, constant strategizing, downsizing, and new cost-cutting approaches to the twenty-first century strategy of leading change. The author talks about how managers and leaders are quite different, and explains that manager is trained to think in a risk-limiting manner. The next section discusses Kotter’s Eight Stage Change Process that provides a detailed framework to guide leaders for change. The eight stage process are:...
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...LEADERSHIP AND ORGANIZATIONAL CHANGE Nebojša Janićijević Belgrade University, School of Economics jnebojsa@eunet.rs MGT 597 ETHICS & LEADERSHIP References Mandatory Yukl G. (2010).Leadership in Organizations. 7th edition. Upper Saddle River: Pearson Supplementary Kotter J. (1996). Leading Chnage. Cambidge Ma.: Harvard Business School Press Janićijević N. (2009). Upravljanje organizacionim promenama. Beograd: Ekonomski fakultet . MGT 597 ETHICS & LEADERSHIP The process of organizational change management Initiating Diagnosis Creating vision Planning Motivating Power management Implementation Management of personal transition Stabilization Monitoring and control UNFREEZING MOVE REFREEZING MGT 597 ETHICS & LEADERSHIP Initiating changes The first step in change management The importance of leader’s mental change In order to initiate changes, a leader has to: 1. 2. 3. 4. Recognizes causes and drivers of change; Develops his own awareness of the necessity of breaking with status quo Develops his wish to make changes and to make decision to start changes; Identifies and appoint a change agent, define his roles and responsibilities and build productive relationship with him MGT 597 ETHICS & LEADERSHIP Model of causes of organizatioonal changes External soruces – changes in environment The inertia of organization Internal sources -. Changes in the company 1 Anticipation of the crisis External and / or internal misbalance 1 ...
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...Introduction A Vision statement outlines what the organization wants to be, or how it wants the world in which it operates to be. It concentrates on the future. It is a source of inspiration. It provides clear decision-making criteria. Vision is the image of the future we seek to create. A mission statement is a statement of the purpose of a company or organization. The mission statement should guide the actions of the organization, spell out its overall goal, provide a path, and guide decision-making. It provides "the framework or context within which the company's strategies are formulated. Strategy statement is a general direction set for the company and its various components to achieve a desired state. A strategy statement is all about integrating organizational activities and utilizing and allocating the scarce resources within the organizational environment so as to meet the present objectives. Statements McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. A McDonald's restaurant...
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...target. Every organization has its own visions and missions. Organizational change management is inevitable to improve an organization’s strength. The speed of managerial change has not been measured in current years and sometimes it may be increasing. The fast paced and repeated improvement in skills is making changes to managerial structure. Strategic change initiatives provide the root to the strategic changes. “The Strategic Change Initiative allows individuals and organizations to discover the Great Hope. The Strategic Change Initiative is designed to respond to that Great Fear that can block our effective response in Times of Great Change” (Woll). A strategic change initiative is mainly built on the missions of the company. It is planned according to the organizational vision and it formulates the scheme which will promote a better change toward the organizational growth. The strategic change initiatives should be undertaken with a long period vision of the prospective outlook and this will be along with the mission reports and its whole objectives that will strengthen the organizational target. These initiatives will provide the way to attain organizational changes. 2. Application Analysis: The vision of the organization is connected with its existence and expertise. The mission will be according to the people’s life in the skills and products reasonable and simple to utilize. The application of this change management based on the vision and mission of the organization helps...
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...Case Analysis | July 26 Sanyo’s Think GAIA Vision and Turnaround Efforts | Strategic ManagementSubmitted By:Abhijit Chandra PandaAditi SinghVidhi SureliaVinay S.M. | Group 7, January 2011 Batch | Case Analysis Sanyo’s ‘Think GAIA’ Vision and Turnaround Efforts* *Source: ICMR Center of Management Research This case elicits a vision that Sanyo adopted and how it went about implementing it. The primary reason for this was to have a turnaround – revive the business areas that were lowering the bottom line for the company. The scale of the company was massive and the old vision did not give a direction to compete in the market that Sanyo faced. The earthquake that destroyed the company’s uninsured semiconductor plan pushed it further into losses. A restructuring was the need of the hour! Amid such lack of coordination, Tomoyo Nonaka, a journalist, was appointed Executive Chairman to be the flag bearer to the diverse businesses of Sanyo. What followed the establishment of an environment friendly vision of ‘Think GAIA’ were the intended turnaround efforts undertaken under the leadership of Nonaka. The analysis of the case that follows showcases the various factors that led to the need of the turnaround, the measures taken as a part of the strategy formulation and the implementation process. As students of the Strategic Management, we intend to learn as to which are the factors that led the current situation in which Sanyo is (as dated in the case) – those that are internal...
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...1. Introduction a. Briefly explain the concepts of vision, mission, and strategy statements. A vision statement is used to express an organization’s fundamental aspirations and purpose: This is typically accomplished by appealing to its employee’s hearts and minds. Thus a vision statement encompasses the basic characteristics that shape an organization’s view of the future and its strategy (Palmer, 2008). A vision should be brief, focused, clear, and inspirational to an organization’s employees.A Mission Statement can be defined as an announcement of what the business does today and why it exists. A Mission Statement captures the uniqueness of theorganization and its purpose or reason for existing (Evans & Lindsay, 2011). Strategies are broad statements that set the direction for the organization and state how the organization intends to achieve its mission and vision. Strategic objectives are important to an organization if it is to remain competitive (Biznik, 2012). 2. Statements a. History. Beckman Coulter began its history as two separate companies; Beckman Instruments and Coulter Electronics. Beckman Instruments was established by Dr. Arnold O. Beckman who invented a way for determining the precise measurement of pH in lemon juice which he called the acidometer, or more commonly known as the pH meter. Separately, the Coulter brothers, Wallace and Joseph, had invented an instrument that could measure cell size through electrical impedance- known today as the...
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...– August 2012] Strategic Role of Leadership in Strategy Implementation in Zimbabwe's State Owned Enterprises Denver Mapetere Lecturer Department of Business Management Faculty of Commerce, Midlands State University Senga Rd Gweru, Zimbabwe Severino Mavhiki Lecturer Department of Business Management Faculty of Commerce, Midlands State University Senga Rd Gweru, Zimbabwe Tonderai Nyamwanza Chairperson Department of Entrepreneurship Faculty of Commerce, Midlands State University Senga Rd Gweru, Zimbabwe Shingirai Sikomwe Lecturer Department of Business Management Faculty of Commerce, Midlands State University Senga Rd Gweru, Zimbabwe Christopher Mhonde Lecturer Department of Business Management Faculty of Commerce, Midlands State University Senga Rd Gweru, Zimbabwe Abstract The study aimed to explore the link between active leadership involvement and strategy implementation success in State Owned Enterprises in Zimbabwe. The study was conducted between July and October 2010 with a total of 188 respondents randomly selected from four State Owned Enterprises. The data was gathered through an interview and a self-administered open ended questionnaire. The study revealed a relatively low leadership involvement in strategy implementation leading to partial strategy success. Leadership has been failing to role model the ideal behaviour necessary for successful strategy implementation. The absence of a well crafted strategic vision and the lack of communication were also identified...
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...? Change management or change leadership THE ARTICLE Journal of Change Management, 2003 - ROGER GILL ABSTRACT § WELL MANAGED CHANGE IS NOT ENOUGH § EFFECTIVE LEADERSHIP HAS TO BE INTRODUCED § MODEL OF LEADERSHIP FOR CHANGE § DIMENSIONS – cognitive, spiritual, emotional and behavioural § THE MODEL – vision, values, strategy, empowerment and motivation and inspiration CHANGE CHANGE MANAGEMENT Change management is an approach to transitioning individuals, teams, and organizations to a desired future state. WHAT HAPPENS DURING CHANGE PROCESS??? DIFFICULTIES IN IMPLEMENTING CHANGE: • Comfort zone • Cultural taboos • Emotional barriers – fear, ego, threat • Resistance to change • Lack of respect for the people • Lack of self confidence RESISTANCE TO CHANGE WANT CHANGE SUCCESFULLY ???? LEADERSHIP Leadership makes the difference Change Management vs. Change Leadership -- What's the Difference? • Change management is a set of basic tools or structures intended to keep any change effort under control. • The goal is often to minimize the distractions and impacts of the change. • Change leadership, concerns the driving forces, visions and processes that fuel large-scale transformation. • Change leadership is much more associated with putting an engine on the whole change process, and making it go faster, smarter, more efficiently. WHY MANAGEMENT IS NECESSARY BUT NOT SUFFICIENT? Change programme fails:...
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...Vision Change Analysis By: HR 587 Managing Organizational Change K Milburn 4 June 2011 In business a vision is a well articulated view of how a company sees itself as well as an image of how a business wishes model itself during the long-term future. Business visions should be realistic and perceived as accomplishable by the people within an organization. The president of Mentor Graphics; Gerard Lageler (1992), may have had a point when he said “Grand, abstract visions can be too inspirational and that is why the company may wind up making more poetry than products.” Over the years Mentor Graphics changed its vision numerous times but eventually returned to a model that reverberated the goals of their original vision. A vision statement should not just be words to post on a wall but serve the function of defining an organization’s values and their purpose. The vision statement should inspire employees to achieve the goals of the company and though achieving those goals prove to why they should do business with the organization. Initially Mentor Graphics’ unarticulated vision was to “Build Something That People Will Buy” and in the end they found that the vision a company starts with is generally the best to follow. Over the years Mentor Graphics saw fit to continuously change their vision to match their new goals, eventually creating vision statements that where more and more grandiose, inspirational but also indistinguishable to the true...
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...Introduction Vision statements are necessary to promote change and to eventually embrace it. As mentioned in the reading, “effective visions are focused enough to guide decisions-making yet are flexible enough to accommodate initiative and changing circumstances (Cooper et al, 2005). Mission statements are also very important for organizations because they provide the purpose of the existence of that organization. Lastly, strategy statements are the logical steps on how the business is going to reach the vision statement and keep up to its mission statement. Statements A. BBVA Compass Bank experienced five bank acquisitions throughout the past five years and has evolved to ensure one stop service to their customers and promote additional opportunities for sales, by building rapport with current books of business. They are hoping to change the significance of banking by becoming a global universal bank to their customers. B. Mission Statement- BBVA is a global group that offers individual and corporate customers the most complete range of financial and non-financial products and services by being a universal bank (bbva.com). Vision Statement- BBVA, building a better future for people (bbva.com) Strategy Statement- BBVA is a financial services group that strives to grow stronger through improvements in efficiency, profitability and capital adequacy commensurate with competitive advantage (bbva.com). Statement Validation A...
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