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ThePracticesofTransformationalLeaders

NielNickolaisen(nnick@octanner.com)

Objective:Toprovideyouaprovensetofbestpracticesthatyoucanstarttousetodaytotransformbothyourorganizationandyourleadershiprole.

ImportantNote:Fromtoday’ssession,selecttheoneortwothingsyouwillimplementinthenextfewmonths.Then,selectthenextoneortwothingsyouwillimplement.Thisiterativeapproachwillimproveyourchancesofsuccess.Goodluckandpleasereachouttomewithanyquestions.

Agenda

Introductionsandexercise

Context–theevolvingroleoftheCIO

Decision-making(BusinessValueModelandPurposeAlignment)

Trust/OwnershipModel

WhyAreYouHere?WhatIsTheOneThingYouNeedToChange?

Introduction

Theworldisdifferentnow.Allcompetitionisdrivenbytechnology.Muchofinnovationisdrivenbytechnology.And,ITisnolongeramonopoly.Inthisenvironment,whattypeofITleaderswillwebe?

• TheTransformationalITLeader

• TheOperationalITLeader

• TheAt-riskITLeader

ThecontentisthiscourseistargetedatbecomingTransformationalITLeaders.Thecontentdescribesspecifictools(notconcepts)youcanusetobeatransformationalITleader.Thecontentisdividedintotwocategories.

• TransformationalLeadersMakeGreatDecisions

• TransformationalLeadersCreateCulturesofTrustandOwnership

MakingGreatDecisions–BusinessValueModelandPurposeAlignment

Weneedawaytobuildacommonviewofbusinessvalue.IntraditionalCost/Benefitmodels,costsareanestimateandbenefitsareaguess.Usingthistraditionalapproachtomakedecisionsisfraughtwithrisk.

Howcanleadersincreasetheirabilityto:

§ Buildasustainablecompetitiveadvantage§ Unleashthepotentialandmaximizetheeffectivenessofourteams

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TheBusinessValueModel

TheBusinessValueModel-Purpose

TheDifferentiating“Rules”• Alwaysbethemarketleaderbyinnovatingnowandforever.• Focusinnovationbyhavingonly1-3differentiatingactivities.• Internallyownthedifferentiatingactivities.

TheParity“Rules”• BecauseParitygapkill,fillanygapsbyadopting–no,embracing–bestpractices(thatare

definedbyothers)• BecauseParityactivitiesaremissioncritical,wecannottolerateriskssoreducerisksthrough

rigoroussimplification.• BecauseParityactivitiesconsumethevastmajorityofourresources,freeupthoseresources

throughrigorousstandardization.

DiscoveringWhatConstitutes“Differentiating”:

The4ImportantQuestions:1. Whodoweserve?2. Whatdotheywantandneedmost?3. Whatdowedo–betterthananyoneelse–tomeetthesewantsandneeds?4. Whatisthebestwayforustoprovidethis?

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UseBillboardTest• Whatwillweputonourbillboardthatdescribesourcompetitiveadvantage?

DefineDecisionFilters§ Identifyasimplesetofquestionsthatwecanpropagatethroughouttheorganizationfor

aligneddecisionmaking.

Caveats§ Parityismissioncritical§ Treatexceptionsasexceptions§ Differentiatingchangesovertime§ Differentiationrequirescontinuousinnovation

ForYourOrganization,WhatisDifferentiating?

Ifyouneedtodefineyoursustainablecompetitiveadvantage,trythe4ImportantQuestions:1. Whodoweserve?2. Whatdotheywantandneedmost?3. Whatdowedo–betterthananyoneelse–tomeetthesewantsandneeds?4. Whatisthebestwayforustoprovidethis?

WhatisYourOrganization’sBillboard?YourDecisionFilter?

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ForOneofYourProjectsorInitiatives,WhereDoesItBelong?

TheBusinessValueModel-Considerations

Thereareofteninputsthataffectourdecisionsbutarefactorsthatwecannotquantifyasacostorbenefit.Forexample,whatisthemarketwindowandhowdoeshittingormissingthatmarketwindowaffectourdecisions?Howmatureisourprojectteam?Howmucharewedependingonthebusinessprocesstochange?

SampleConsiderations

§ TimetoBenefit

§ TeamCapabilities

§ Risks

§ MarketWindow § Flexibility

§ TeamSize § MarketUncertainty

§ MissionCriticality § TechnicalUncertainty

§ GeographicallyDispersed § ProjectDurationUncertainty

§ TeamCapacity § NumberofCustomers

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§ Skills § AmountofChange

§ TeamMaturity § Dependents/ScopeFlexibility

§ StackSize § Resource/SkillsAvailability

§ AlgorithmComplexity § MarketRequirements

§ MultipleGoals § MarketOpportunity

§ VariationofTimeZones § Dependencies

§ OrganizationalMatch § Dependent'sNeeds

YourConsiderations?Prioritized.

1.

2.

3.

TheBusinessValueModel–CostsandBenefits

Costsandbenefitsarestillimportantinputstothevaluemodel/decisionprocess.

CostandBenefits?

NowthatyouhaveusedtheValueModeltoframeyourdecision,explorewaystodeliverincrementalbusinessvalue.Itislikelythatyoucanimplementyourprojectorproductin“chunks”thatallowyoutodeliverthehighestvaluefaster.Takingthisapproach,yougetthekeyplayerstogetherandgroupyourdeliverableintointermediatedeliverables.Theintermediatedeliverablesnotonlydeliverthehighvaluesooner,theycanalsofillinknowledgegapsandreducefutureuncertainty.

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ForYourProject,WhatAretheLargestValueChunks?WhatMustBeDoneFirst?Second?

§

§

§

§

RelationshipsofTrust–TrustOwnershipModel

TransformationalLeadership

Asleaders,weshouldbeinthe“What”and“Why”businessandgetoutofthe“How”business.Wenotonlyunleashourstaffwhenweletthemown“How”wealsoremoveourselvesasbottlenecks.

Weshouldalsofocuslotsofattentiononourrelationshipswithourmanagementteampeers,customers,staff,providers,etcetera.Achievingoperationalexcellenceandenablingstrategywillopenthedoortotheserelationshipsbutwemustwalkthroughthatopendoor.

Trust/OwnershipModel

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CollaborativeLeadership

Inafast-paced,networkedworld,leaders“designthecontainer”inwhichworksgetsdone.Theleaderbecomestheconductorwhoarrangesanddirectstheelementandpiecesbutthatdoesnotdothework!WecallthisCollaborativeLeadershipbecauseitrecognizedthattheleaderdoesnothavetheanswersandmustrelyontheextendedteaminordertomakedecisionandimplementthosedecisions.Thisrequires:

• Confrontingtherealityofthischangeinrole.

• Aprocessforcreatingacollaborativeenvironment.

CollaborationProcess

• Identifyanopportunity/issue.

• Brainstorm(usingstickynotesoropendialogue)

• Asateam,group

• Asindividuals,vote

• Asagroup,prioritizeanddefineactionplans

• Letindividualsvolunteerforwhattheywillown

CreatingACultureOfTrust

Therearehighcoststolowtrustenvironmentsincludingtransactionandself-protectioncosts.Tocreateacultureoftrust:

• Trustfirst

• Betrustworthy

• Dealwithtrustissuesamongteammembers

• Useteam-basedmeasurements

• Getearlywinsthroughshortiterations

TheLeader’sRole

FocusonWhatandWhyandstayoutoftheHowbusiness

MacroLeadershipCube

Thisisavisualrepresentationofaleader’sfocusonWhatandWhyratherthanHow.

Results Time

People

Budget

Standards

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MeaningfulMetrics

1. Representreality 2. Measureprocessesnotpeople 3. Arefewinnumber 4. Aremostlynon-financial 5. Alignwithstrategy 6. Showtrends

LeadershipDecisionFilters

Reflectonyourrole,yourrules,andstyle.Askifwhatyouaredoingwillincreasetrustandincreaseownership.

WhatAreSomeSpecificChangesYouWillMakeToYourApproachToLeadership?

YourTransformationRoadmap

Ofthetoolswereviewed

• BusinessValueModel

• PurposeAlignment

• TrustOwnershipModel

• Macro-cube

WhichToolWillYouImplementFirst?Second?MapYourTransformationActionPlan.

WhenWillYouReportBacktoMe(nnick@octanner.com)?