Leadership Programme Asia Pacific 2012 Module 2 Achieving Organisational Alignment

1. Leadership Programme Asia Pacific 2012Module 2 Achieving Organisational Alignment

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

3. Vision Strategic Intent Goals Inertia – the greatest barrier to strategy execution Vision Strategic direction

4. Organisation inertia Question: • What kind of things contribute to organisation inertia?

5. Tushman & O’Reilly – model for organisational alignment Strategic choices • Vision • Strategy • Objectives Executive Leadership • Competencies & styles • Demographics • Group process Critical Processes • Component tasks • Work flows / processes • projects • People • Skills & experience • Motivations • Culture • Norms and values • Informal role, networks • Informal power Formal organisation • Strategic groupings • Role specifications • Linking mechanisms • Measures & controls

6. Getting the organisation right The right leadership experience, skills and styles The right strategic choices The right business processes The right people & skills The right attitudes, beliefs & behaviours The right structures& systems

7. Critical processes • 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?

8. Formal organisation • 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?

9. People • 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?

10. Culture • 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?

11. Leadership • Competencies • Does the leadership team have the knowledge, skills and experience to leadthe organisation towards the strategic goals? • Demographics • How long has the team worked together? What is the functional mix andwhat are their individual backgrounds? • Dynamics • How effective are the leadership team dynamics?

12. 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.

13. 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.

14. Alignment within Starbucks? Strategic Choices Executive Leadership • 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 Critical Tasks People Culture Formal Organisation

15. 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.’

16. Re-alignment within Starbucks? New Strategic Choices Executive Leadership • Accept limited growthfrom coffee shops • Exploit excellent supply chain • Market brandeddomestic consumer products for distribution throughsupermarkets Critical Tasks People Culture Formal Organisation

17. Worksheet 1: an ideal, perfectly aligned organisation • Consider your new vision, overall goals and intended positioning of the organisation.Record the key aims in the Strategic Choices box on Worksheet 1 • 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 • Note key descriptors of this ideal and perfectly-aligned organisation in each box on Worksheet 1

18. Worksheet 1: an ideal, perfectly aligned organisation The vision, overall goals and intended positioning we have set out for Subsea are: Strategic choices An organisation perfectly aligned to this strategy would ideally look like: Critical Processes Formal Organisation ExecutiveLeadership Culture People

19. 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

20. Worksheet 2: issues with current alignment and work to be done 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: Critical Processes Formal Organisation Executive Leadership Culture People

21. 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

22. Worksheet 3: actions needed to achieve alignment The following actions will need to be implemented if we are to achieve an organisation perfectly aligned with our vision, goals and strategic choices: Critical Processes Formal Organisation Executive Leadership Culture People

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