leadership programme asia pacific 2012 module 2 achieving organisational alignment

Leadership Programme Asia Pacific 2012

Module 2

Achieving Organisational Alignment

Leadership Programme Asia Pacific 2012 | Module 2 | No. 2

Organisational Alignment•Organisational inertia•Tushman & O’Reilly organisational alignment model


Inertia – the greatest barrier to strategy execution

Vision

Strategic direction


Organisation inertia

Question:

• What kind of things contribute to organisation inertia?


Culture•Norms and values•Informal role, networks•Informal power

People•Skills & experience•Motivations

Critical Processes• Component tasks• Work flows / processes• projects

Strategic choices• Vision• Strategy• Objectives

Executive Leadership• Competencies & styles• Demographics• Group process

Formal organisation• Strategic groupings• Role specifications • Linking mechanisms• Measures & controls

Tushman & O’Reilly – model for organisational alignment


The right attitudes, beliefs & behaviours

The right people & skills

The right business processes

The right strategic choices

The right leadership experience, skills and styles

The right structures& systems

Getting the organisation right


• Component tasks• What work must get done successfully to accomplish the strategic goals?

• Work flows• Who has to do what and with whom (internally and externally)?

• Projects• What are the key deliverables and deadlines for implementing the strategy?

Critical processes


• Strategic grouping• What drives the structure: functions / markets / geography / products?

• Linking mechanisms• What are the key organisational arrangements: committees, task forces, projects?

• Reward, measurement, and control systems• Are these equitable and well aligned?

Formal organisation


• Competencies• Do people have the knowledge, skills and experience to perform the critical

tasks and work flows?

• Roles• Are the people in the right jobs where they can contribute their maximum?

• Motives• What conditions are most effective for enabling motivation?

People


• Values and beliefs• What are the deeply held beliefs and values that influence people’s thinking?

• Behavioural norms• What are the widely held expectations about appropriate attitudes and

behaviour?

• Networks• What are the informal communications networks, and how is informal power

distributed in the organisation?

Culture


• Competencies• Does the leadership team have the knowledge, skills and experience to lead

the organisation towards the strategic goals?

• Demographics• How long has the team worked together? What is the functional mix and

what are their individual backgrounds?

• Dynamics• How effective are the leadership team dynamics?

Leadership


Starbucks example

What we are all about (from Starbucks website)

Starbucks purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of complementary food items, a selection of premium teas, and beverage-related accessories and equipment, primarily through company-operated retail stores.

Starbucks also sells coffee and tea products and licenses its trademark through other channels such as licensed retail stores and, through certain of its licensees and equity investees.


Starbucks original vision/mission statement

‘Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.’

The following six guiding principles will help us measure the appropriateness of our decisions:

•Provide a great work environment and treat each other with respect and dignity.

•Embrace diversity as an essential component in the way we do business.

•Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.

•Develop enthusiastically satisfied customers all of the time.

•Contribute positively to our communities and our environment.

•Recognize that profitability is essential to our future success.


Critical Tasks

Formal Organisation

CulturePeople

Strategic Choices Executive Leadership

Alignment within Starbucks?

• Establish Starbucks as the premier purveyor of the finest coffees in the world• Build a presence in all major cities and towns• Maintain our uncompromising principles while we grow


Starbucks new vision statement

Starbucks has changed their vision statement to:

‘To inspire and nurture the human spirit - One person, One cup, and One neighborhood at a time.’


Critical Tasks

Formal Organisation

CulturePeople

New Strategic Choices Executive Leadership

Re-alignment within Starbucks?

• Accept limited growthfrom coffee shops

• Exploit excellent supply chain

• Market brandeddomestic consumer products for distribution throughsupermarkets


Worksheet 1: an ideal, perfectly aligned organisation

1. Consider your new vision, overall goals and intended positioning of the organisation. Record the key aims in the Strategic Choices box on Worksheet 1

2. Think how a perfectly aligned organisation would look, in an ideal world, in each area of the model: the critical tasks and organisational capabilities, then the organisational structure and processes, then the people and skills, then the culture, and finally the leadership

3. Note key descriptors of this ideal and perfectly-aligned organisation in each box on Worksheet 1


Worksheet 1: an ideal, perfectly aligned organisation

Critical Processes

Formal Organisation

Culture People ExecutiveLeadership

Strategicchoices

The vision, overall goals and intended positioning we have set out for Subsea are:• • • • •

An organisation perfectly aligned to this strategy would ideally look like:

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Worksheet 2: issues with the current alignmentand work to be done

• Consider how well the current organisation fits with this perfect alignment scenario

• What are the gaps?• Record in each box on Worksheet 2 the issues that will need to be

addressed if you are to achieve an organisation perfectly aligned with your vision, goals and strategic choices


Worksheet 2: issues with current alignment and work to be done

Critical Processes

Formal Organisation

Culture People Executive Leadership

The following issues in our organisation will need to be tackled if we are to achieve a Subsea organisation perfectly aligned with our vision, goals and strategic choices:

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Worksheet 3: actions need to achieve alignment

• Consider the actions you need to take as a Leadership Team• Record in each box on Worksheet 3 the actions that will need to be

implemented if you are to achieve an organisation perfectly aligned with your vision, goals and strategic choices


Worksheet 3: actions needed to achieve alignment

Critical Processes

Formal Organisation

Culture People Executive Leadership

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The following actions will need to be implemented if we are to achieve an organisation perfectly aligned with our vision, goals and strategic choices:


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leadership programme asia pacific 2012 module 2 achieving organisational alignment

Documents

right attitudes

right jobs

leadership team dynamics

organisation inertiaquestion

strategic goals

strategic groupingwhat

competenciesdo people

work flowswho