Strategisk
Strategisk Vaerksted
Vaerksted for
for Topledelse
Topledelse
2.
2. Vaerksted,
Vaerksted, FUHU,
FUHU,
Copenhagen,
Copenhagen, 66 September
September 2006
2006
Paul
Paul Evans
Evans
Shell
Shell Chair
Chair Professor
Professor of
of Human
Human Resources
Resources
and
and Organisational
Organisational Development
Development
INSEAD,
INSEAD, Fontainebleau
Fontainebleau and
and Singapore
Singapore
Leadership and Change
Management in connection
with Merger Integration
Our Agenda
MORNING: Input and workshop discussion
Three themes:
1) Leadership competencies & leadership development
2) Leading change
3) Building teamwork (« tvaergaaende samarbejde »)
AFTERNOON: Team-on-team consulting
Semi-structured and fast paced
Initiated by GRPI analysis (GOALS-ROLES-PROCESS-INTERPERSONAL)
Also involving Henrik, consultants, Paul
© Paul Evans
Leadership
Competencies
& Leadership
Development
© Paul Evans
What do people look for and admire in their leaders?
What research* says …
• Honest …
• Forward-looking …
• Competent …
• Inspiring …
* Kouzes & Posner, « The Leadership Challenge », Jossey-Bass, 2002.
© Paul Evans
Back to the basics …
How do we develop people?
How do you
develop leaders?
© Paul Evans
Spot the people who have potential …
and then put them in a position
where they HAVE to lead
REMOVE EXPERTISE FROM
UNDER THEIR FEET
© Paul Evans
The pathologies of
© Paul Evans
• On the one hand,
don’t « job rotate » …
• … but on the other hand,
don’t allow people to stay in jobs for too
long !!!
© Paul Evans
Job satisfaction and
involvement
0
1
2
3
4
5
6
7
8
9
10
11
12
Number of years in the same job
© Paul Evans
Three elements of leadership development
1. Assignments (Challenge!!):
• Scope : Increase in numbers of people, dollars, and functions to manage
•
Project/task force assignments (Integrative skills) :
Working with other experts, defining objectives, and working collectively to deliver a
result meeting the often unclear needs of sponsors
• Cross-functional assignments (Integrative skills): Moving to a job where one
has no expertise, learning how to set an agenda & get results through people
who have more expertise than oneself.
• International assignments (Integrative skills)
• Change projects: Fixing or stabilizing a failing operation
• Entrepreneurial projects : The go ahead and resources to test out a project initiative
© Paul Evans
The Developmental Experiences of Global Executives
Source: M. McCall & G.Hollenbeck, Developing Global Executives,
Harvard Business School Press, 2002
% of people describing the event
as a key developmental experience
Foundation Assignments
- Early work experiences
- First managerial responsibility
12%
7%
Major Line Assignments
- Business turnarounds
- Building or evolving a business
- JVs, alliances, mergers or acquisitions
- Business start-ups
30%
16%
11%
10%
Shorter-term Experiences
- Significant other people
- Special projects, consulting roles, staff advisory roles
- Development and educational experiences
- Negotiations
- Stint at headquarters
32%
24%
23%
8%
7%
Perspective-Changing Experiences
- Culture shock
- Career shifts
- Confrontations with reality
- Changes in scope or scale
- Mistakes and errors in judgment
- Family and personal challenges
- Crises
27%
21%
18%
17%
10%
8%
7%
© Paul Evans
Challenging assignments require Risk Management so as
to avoid failure …
2. Risk Management :
•
•
•
•
•
•
•
Assessment of the skills, motives, attitudes of the individual
Clarification of the goals and targets in the new assignment
Coaching (supervision or informal)
Mentoring ; access to people with experience
Role models
Training
Access to people with experience
© Paul Evans
Coaching as risk management
GARANTIA :
Latin America’s
fastest growing
company
in the 90s
© Paul Evans
This requires Risk Management so as to avoid failure …
… but not so much that success is guaranteed,
and people will never learn to deal with HARDSHIP
3. Hardship Testing
Preventing “derailing” ; minimizing the risk of the “dark” face of leadership ;
developing EMOTIONAL COMPETENCE and Resilience
•
•
•
•
•
•
•
•
•
Dealing with a significant failure where you are responsible
Coping with a bad boss and competitive peers
Losing your job or being passed over for promotion
Being part of an acquisition or merger
Living in a different country or culture
Finding a meaningful balance between work and family
Facing personal upheaval
Letting go of ambition
Losing faith in the system
© Paul Evans
How to help people to give up behaviors that made them
successful in the past?
• Becoming a managerial leader means acquiring new
skills, behaviors and mindsets …
• … but it also means giving up skills and behaviors that
led you to be successful in the past
• Remember that you’ll always be better at coaching and managing
others when it builds on skills that you mastered in your « previous
career »
© Paul Evans
What do you have to give up doing?
FROM
• Technical-functionaloperational expertise base
• Strong within-group
relationships
(e.g., direct reports, boss, inside
division)
TO
• Broad-based business
perspective, results through
others, setting direction,
channeling the expertise of
others
• Strong and varied
relationships across groups,
inside and outside the firm
• Being part of the team
• Maintaining social distance
• Fixing mistakes
• Teaching others how to
work properly, coaching
© Paul Evans
FROM
TO
• Talking and showing what
you know
• Listening, encouraging
others to talk, and
interpreting
• Only being comfortable with
what is familiar and
interesting
• Making connections
between a vast number of
parameters
• Thinking and acting for
short-term performance
• Linking up the long-term
and short-term so as to
provide appropriate
direction
• STYLE: analysis, knowing &
critiquing the numbers,
directive
• STYLE: involving, knowing
your people, persuasive
© Paul Evans
Eleven dimensions for the early identification of GLOBAL LEADERS
1. Seeks opportunities to learn
2. Acts with integrity
3. Adapts to cultural differences
4. Is committed to make a difference
5. Seeks broad business knowledge
6. Brings out the best in people
7. Is insightful: sees things from new angles
8. Has the courage to take risks
9. Seeks and uses feedback
10. Learns from mistakes
11. Is open to criticism
Ratings by bosses of 838 managers in six international corporations on three continents.
These 11 characteristics distinguished high potentials from solid performers. Base on
factor analysis of questions in the questionnaire.
Source : M. McCall, High Flyers, Harvard Business School Press, 1998
© Paul Evans
Eleven dimensions for the early identification of GLOBAL LEADERS
1. Seeks opportunities to learn
2. Acts with integrity
3. Adapts to cultural differences
4. Is committed to make a difference
5. Seeks broad business knowledge
6. Brings out the best in people
7. Is insightful: sees things from new angles
8. Has the courage to take risks
9. Seeks and uses feedback
10. Learns from mistakes
11. Is open to criticism
Ratings by bosses of 838 managers in six international corporations on three continents.
These 11 characteristics distinguished high potentials from solid performers. Base on
factor analysis of questions in the questionnaire.
Source : M. McCall, High Flyers, Harvard Business School Press, 1998
© Paul Evans
Eleven dimensions for the early identification of GLOBAL LEADERS
1. Seeks opportunities to learn
2. Acts with integrity
3. Adapts to cultural differences
4. Is committed to make a difference
5. Seeks broad business knowledge
6. Brings out the best in people
7. Is insightful: sees things from new angles
8. Has the courage to take risks
9. Seeks and uses feedback
10. Learns from mistakes
11. Is open to criticism
Ratings by bosses of 838 managers in six international corporations on three continents.
These 11 characteristics distinguished high potentials from solid performers. Base on
factor analysis of questions in the questionnaire.
Source : M. McCall, High Flyers, Harvard Business School Press, 1998
© Paul Evans
Leading
Change:
Fair Process in
Decision Making
© Paul Evans
QxA=E
© Paul Evans
GE’s Change Acceleration framework
Proprietary to GE, used with permission
Leading Change
Creating A Shared Need
Shaping A Vision
Mobilizing Commitment
Current
State
Transition
State
Improved
State
Making Change Last
Monitoring Progress
Changing Systems & Structures
© Paul Evans
There are two types of fairness
« Distributive Justice »
« Procedural Justice »
Fairness of the
Fairness of the
ends/outcomes
approach/process used
achieved
to reach the outcome
Employee satisfaction with
Overall satisfaction with
the outcome
the employer; turnover intentions;
commitment and loyalty
© Paul Evans
Fair Process at Air France 1993-1994
SOURCE: An INSEAD/Cedep case study by Prof. Jean-François Manzoni
Attali
11/93
4,000 departures
2 year salary freeze
Blanc 4/94
5,000 departures
3 year salary freeze
30% productivity improvement
Result:
Blanc calls a referendum
HUGE
RIOTS!!
84% of employees vote
81% VOTE YES!!
© Paul Evans
What does fair process involve?
ENGAGEMENT
• People want their views to be heard
• There is a right to refute
• Communication is sincere and genuine
EXPLORATION
• Different options are explored
EXPLANATION
• People are informed of the decision
• Decisions are based on sound facts and reasoning
EXPECTATIONS
• Decisions are translated into clear goals, action plans and behaviors
• The meaning of a commitment is clear
• There is appropriate coaching and support
EVALUATION
• Decisions are applied with consistency
• Desired behaviors and results are rewarded
© Paul Evans
Engagement
Sell the
problem!!
© Paul Evans
What happens if
we DO change?!!
What happens if
we DON’T change???
Threat
Opportunity
Short
Term
1
3
2
4
Long
Term
© Paul Evans
Norms for Engagement (constructive debate)
Use images and stories
Ensure that we agree on goals
Actively listen before you disagree
Focus on the issues, not the personalities
Data, data, data … Measurement, measurement …
Ensure balanced power structures
Resolve issues without forcing consensus
Inject humour into the process
© Paul Evans
Steps:
Su Stro
pp ng
or ly
tiv
e
y
el
t
ra st
e
al
n
r
i
d
t
o a
eu
M Ag
N
M
Su o d
pp era
or te
tiv ly
e
Names
St
Ag ron
ai gl
ns y
t
Stakeholder analysis
Reason
P
C
T
Action
1.
Plot where individuals currently are with regard to the desired change
2.
Plot where individuals need to be (X=desired) to successfully accomplish desired change; then assess current-desired gaps
3.
Indicate how individuals are linked to each other, draw lines to indicate an influence link
4.
Plan action steps for closing gaps
© Paul Evans
Yes
Empowering the
champions
???
CAPABLE?
No
Outplace
Sideline
Create new
organizations
Low
Train, coach
High
WILLING?
© Paul Evans
A final warning
There is too much change …
and not enough continuity
in change
© Paul Evans
© Paul Evans
Building
Teamwork
(« Tvaergaaende
samarbejde »)
© Paul Evans
A tale of two companies
Organize one way,
manage the other way
© Paul Evans
Tensions and contradictions
• Short term AND Long term
• Locally-responsiveness AND Global integration
• Standardization AND Differentiation
• Group/corporate AND Business
• Top-down AND Bottom-up
• Teamwork AND Accountability
• Change AND Continuity
• Fast decision making AND Full delivery
© Paul Evans
BUILDING MATRIX
OR INTEGRATIVE CAPABILITES
How do we build and manage the
necessary integration between departments,
functions, units, and sites that need
their own separate identities?
© Paul Evans
Matrix pressures for Integration
30%
Standardization
Processes
(Strategy, Finance, Operational
excellence, Back-office … and values/DNA)
50%
20%
Mutual
Adjustment
Centralization
Structure
- Roles & responsibilities
- Central decision making
People & Culture
- Coordination
- Networks
- Teamwork
(Flexibility, innovation, speed of response,
customer orientation)
© Paul Evans
An important caveat!
Don’t focus on building glue unless the performance of
the individual units, functions, countries is satisfactory
Five drunks don’t make a team !!
© Paul Evans
GLUE
TECHNOLOGY
© Paul Evans
Knowledge management
Capability management
Global mindset and values
International leadership development
Best practice / Cross-boundary
Councils,
Global Process
know how
teams (project steering groups, Management
sharing
management) internal boards
(matrix roles)
Face-to-face relationships
© Paul Evans
Two Consulting Practices: (a) Fragmented, (b) Integrated
© Paul Evans
The Role of Network Brokers
© Paul Evans
CROSS-BOUNDARY PROJECT WORK
Solving problems via PROJECT GROUPS and
ad hoc TASK FORCES rather than via corporate staff
Linking business development closely to global talent
development
© Paul Evans
Projects: Working in « split egg » roles
2%
The Development/
Project Role
98%
The Operational
Role
© Paul Evans
What gets you fired …
and what gets you promoted
Strategy, market and business
development (EXTERNAL)
INTERNAL development
(e.g. cost reduction)
30%
The Development/
Project Role
70%
The Operational
Role
Leverage and linkage across the
organization (HORIZONTAL)
Uncompromising attention to
getting the right people in the right
places at the right times
Clarity of objectives and areas of
accountability
© Paul Evans
Tomorrow’s
services &
capabilities
Today’s
performance
© Paul Evans
Kommune/Regional
roles
Local/functional
roles
© Paul Evans
What do you learn from cross-boundary
teamwork?
• How to work with people who have more expertise than you
• How to cooperate with people who are very different from you
• How to negotiate clear goals and deliverables on complex but important
tasks that do not fit into job descriptions
• The importance of paying careful attention to staffing
• The importance of investing in “time out” team-building
• How to lead and manage people over whom you don’t have authority
• How not to waste your time
• “Virtual team” processes - How to exploit communications technology
• Contention and conflict management
• Team skills
• How to learn from experience when things go wrong
LINKING ORGANIZATION DEVELOPMENT TO TALENT
MANAGEMENT: NOBODY should move into a position of responsibility
without proven, demonstrated ability in cross-boundary teamwork … and that
means GETTING RESULTS!
© Paul Evans
Matrix isn’t a structure, it’s a frame of mind
Don’t misuse Structure
Keep the structure CLEAR … (accountability)
… as simple as possible …
… and build MATRIX into
RESPONSIBILITIES
ROLES
COUNCILS, INTERNAL
BOARDS, and
STEERING GROUPS
CAREER PATHS
into MINDS
© Paul Evans
An EndNote
Guidelines for Global Leadership in the 21st Century
SOURCE: Evans, Pucik, Barsoux The Global Challenge: Frameworks for International
Human Resource Management McGraw-Hill January 2002
Understand cultural stereotypes
… but don’t use them in practice
Be sensitive to local culture and
context
… but make sure that a person’s
passport is of no importance
Make sure that subsidiaries and
people are clearly accountable
… and then focus on building
teamwork where it will add value
Organize one way (for example
a globally integrated structure)
… but manage the other way
(to encourage local entrepreneurship)
Benchmark against others, copy
practices, network externally to
learn
… but never forget that superior
performance only comes from
being different
Foster constructive debate about … so that you will have no debate
your options and alternatives
when it comes to action
© Paul Evans
To innovate you need slack,
diversity, flexible budgets,
and lots of experimentation
… and to make profits from your
innovations you need discipline,
targets and deadlines
Tackle ‘sour’ processes like
…
global rationalization and layoffs
today
with the awareness that you will
need teamwork, commitment and
loyalty tomorrow
Be prepared to cannibalize what …
makes you a leader today
in order to have a chance of
being a leader tomorrow
Nurture your capabilities by fine …
tuning the coherence that lies
behind them
but don’t forget that these
strengths can be your biggest
liabilities
Develop your people by giving
them more challenge than they
think they can handle
and train them, coach them,
guide them so they won’t make
big mistakes
…
© Paul Evans
Organizational values and
…
management philosophy provide
the consistency underlying
great organizational cultures
and they can lead to cloning,
kill the lifeblood of
innovation, and lead to the
weakness of strong cultures
Build face-to-face relationships
well
…
so that you can use e-technology
to bridge the distance
Make sure that your future
leaders have business line
experience
…
in order to function effectively
in key country or regional
leadership roles
Work hard as a professional in
your operational job
…
in order to find a maximum of
time for your project role
Matrix everything
…
except the structure
Think locally
…
and act globally
© Paul Evans
© Paul Evans