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Transformational Leadership Page 1 of 8 [email protected] The Practices of Transformational Leaders Niel Nickolaisen ([email protected]) Objective: To provide you a proven set of best practices that you can start to use today to transform both your organization and your leadership role. Important Note: From today’s session, select the one or two things you will implement in the next few months. Then, select the next one or two things you will implement. This iterative approach will improve your chances of success. Good luck and please reach out to me with any questions. Agenda Introductions and exercise Context – the evolving role of the CIO Decision-making (Business Value Model and Purpose Alignment) Trust / Ownership Model Why Are You Here? What Is The One Thing You Need To Change? Introduction The world is different now. All competition is driven by technology. Much of innovation is driven by technology. And, IT is no longer a monopoly. In this environment, what type of IT leaders will we be? The Transformational IT Leader The Operational IT Leader The At-risk IT Leader The content is this course is targeted at becoming Transformational IT Leaders. The content describes specific tools (not concepts) you can use to be a transformational IT leader. The content is divided into two categories. Transformational Leaders Make Great Decisions Transformational Leaders Create Cultures of Trust and Ownership Making Great Decisions – Business Value Model and Purpose Alignment We need a way to build a common view of business value. In traditional Cost/Benefit models, costs are an estimate and benefits are a guess. Using this traditional approach to make decisions is fraught with risk. How can leaders increase their ability to: § Build a sustainable competitive advantage § Unleash the potential and maximize the effectiveness of our teams

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Transformational Leadership Page 1 of 8

[email protected]

ThePracticesofTransformationalLeaders

NielNickolaisen([email protected])

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

Transformational Leadership Page 2 of 8

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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?

Transformational Leadership Page 3 of 8

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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?

Transformational Leadership Page 4 of 8

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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

Transformational Leadership Page 5 of 8

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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.

Transformational Leadership Page 6 of 8

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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

Transformational Leadership Page 7 of 8

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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

Transformational Leadership Page 8 of 8

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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([email protected])?