Detecon - Organizational Energy Workshop

Organizational Energy
Context & Overview

Detecon International GmbH
Restructuring & Transformation Community
Marc Wagner

Based on: “Fully charged” by Heike Bruch & Bernd Vogel

August 2012

Circle of Excellence
Efficiency

Deutsche Telekom Group

We make ICT strategies work

FINANCE ROUNDTABLE_6. SITZUNG_PRÄSENTATION_20110408_FINAL.PPT

….

Community: Restructuring & Transformation

–1–

 your company

KC: Restructuring & Transformation: Organizational Energy

The goal of the “OE” workshop is to create awareness on “energetic roadblockers” of
transformations and to derive adequate counter measures

Agenda Main activities
Pre-Reading material + video
Pre-Work Familiarize the participants of the workshop with the energy concept
Measure the energy of the organization with the OEQ 12

What is the goal of the concept? What are the 4 energy states?
Presentation of concept
How do they differ and what are the key characteristics? What are general strategies?

Classification of your Which energy states can be found at your company?
company What are the characteristics and the behavior of your company? Which state is predominant?

Strengths and weaknesses Which strengths and weaknesses can be found in the energy profile?
analysis What are the reasons and what are the consequences for your company?

What are countermeasures for your company?
What to do?
What can we do to move into the targeted energy state?

What are the individual key results? What are the learnings?
Feedback
How could we enhance or improve the concept?

 your company

–2–


A COMPANY’S COLLECTIVE ENERGY CAN BE THE FUEL TO FIRE ITS AMBITIONS
OR THE REASON PERFORMANCE LEVELS CRASH AND BURN.

 your company

–3–


Agenda





What to do?

Feedback

 your company

–4–


Source: Fully Charged; Heike Bruch & Bernd Vogel

 your company

–5–


Agenda





What to do?

Feedback

 your company

–6–


The construct of energy

What is organizational energy?

Organizational energy…

 is the force with which a company works.
 shows the extent to which a company has mobilized its OVERALL PERFORMANCE
emotional, mental and behavioral potential in pursuit of
its goals.
 is measurable and manageable. EMPLOYEE PRODUCTIVITY
 represents itself in two dimensions - intensity and
quality of energy. The combination of these two Organizational COMMITMENT
dimensions results in four different energy states. energy

CUSTOMER LOYALTY
Why should leaders assess and influence organizational
energy?
TURNOVER RATE
 Organizational Energy is central for a company‟s
performance and closely connected with its success.
 It reflects the current state of energy activation in the
company and is fluid, not stable.
A company‟s collective energy can be the fuel to fire its
 This means it ebbs and flows more readily than the ambitions or the reason performance levels crash and burn.
organization‟s culture, and leaders actively can alter it
Source: Fully Charged; Heike Bruch & Bernd Vogel

 your company

–7–


The construct of energy

How can energy be made tangible and measured?

1. Comfortable inertia
• Low animation, relatively high level of satisfaction
• Weak but positive emotions (calm, contentedness)
• Lack the vitality, alertness and emotional tension
necessary for significant change

2. Resignative inertia
• Weak negative emotions, such as frustration,
disappointment, and sorrow
• Cognitive absence, disinterest or emotional distance
toward company goals

• Lethargic behavior

3. Corrosive energy
• Negative internal tension
• High energy devoted negatively to internal issues
(conflicts, rumors, counter-productive activities)
• Robs a company of its vitality and stamina

4. Productive energy
• Intense, positive emotions
• High attention and strong activity levels which are
oriented towards core goals Source: Fully Charged; Heike Bruch & Bernd Vogel

 your company

–8–


The creation of energy

How is organizational energy created?

1. Leadership quality:
Managers need to be able to motivate their followers to
extraordinary efforts by means of role modeling, inspiration,
promoting creativity and strategic employee development

2. Strategic direction:
Clear, strategic orientation of the company; long-term
compelling vision, a clear picture of shared goals

3. Confidence:
Deal successfully with a challenge to use full potential; faith in

own ability will help to pursue even difficult goals with great
persistence and long-term effort

4. Commitment:
A strong, inner sense of obligation to realize shared goals
even in the face of difficulties or setbacks

5. Teamwork:
High cohesion or a strong sense of belonging together in a
company, employees are prepared to put their own interests
behind those of company goals; achieving shared goals and
Source: Bruch, Vogel, & Morhart, 2006 success instead of competition or destructive issues

 your company

–9–


Strategies for managers: How can managers activate energy?

Slaying the dragon Winning the princess Focusing Energy

• Leaders use an existing, external • Executives use the attractive image of • Redirect destructive energy by
threat to move employees out of their a positive future and opportunities in emphasizing the similarities and unity
complacency order to inspire employees and in the company
• Managers need to communicate the awaken enthusiasm • Plead for the shared goals and
threat in a way that they generate a • Create a specific, clearly defined underscoring the binding vision
feeling of urgency among employees „object of desire‟ – a vision which • Address destructive events directly
• Managers direct attention and seems sensible and relevant and and create opportunities in which
awareness onto the one central threat which is closely connected to the employees are able to work through
company‟s core business and reflect conflicts and internal fights
=> create pressure and willingness on • Explain the vision and communicate it • Building a culture of trust through fair,
the part of employees to take action in a compelling way transparent information and
Source: Fully Charged; Bernd Vogel & Heike Bruch communication processes is key

 your company

– 10 –


Strategies for managers: How can managers maintain energy?

Maintaining energy

… so how is the
energy state
at your company

• Central challenge is to maintain the dynamic force
• Management task: strategically controlling the way in which energy flows
• Executives must avoid the „acceleration trap‟, i.e. the risk of overburdening

•
their company and constantly driving them to the limits of their capabilities
The way the company deals with strategy development, structures and
culture is designed to prevent inertia, stimulate activity, maintain alertness
and promote emotional involvement (i.e., early warning systems, close-to-
market structures, deliberate development of a culture that encourages self-
initiative, innovation, collaboration and trust)
?
• Overarching goal: change initiatives system to proactive action-taking and
personal initiative in the promotion of the company
Source: Fully Charged; Bernd Vogel & Heike Bruch

 your company

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Agenda





What to do?

Feedback

 your company

– 12 –


Estimation of the energy states of your company

Please take a moment to ask yourself…

• Do we regularly challenge the status quo of our strategy, products & customer relationships?
• Do we continually come up with excellent ideas on how your company can avoid risks, and do we know how to take advantage of
Produc-
opportunities we have identified?
• Is it easy for your company to implement change or new ideas in the company?
A
tive
Energy
• When working on tasks critical to your company’s success, do your employees seem unconcerned about working overtime or on weekends,
or appear prepared to do so?

• Are innovations not really welcome here?
• Is your company primarily engaged in optimizing the status quo? Comfor-
• Does the decision making involve a long process? B
table
• Do consultants highly identify with the situation at your company as it is? Energy
• Is your company dominated by satisfaction with the current situation of products, services, and processes?

• Do you have the impression that many employees are not working toward the company goals, but rather are trying to maximize their own
benefits?
Corrosive
• Is silo thinking prevalent in many of our clusters? C
Energy
• Are conflicts a dominant feature of the work in top management?
• Do you have the impression that certain groups of employees annoy one another, no longer trust one another, or even hate one another?

• Do you have the impression that our employees no longer care about the well-being of the company?
• Do most people in your company express negativity about the viability of new initiatives and change? Resig-
• Does it seem as if our people only communicate or interact with one another when it is absolutely necessary? D
native
• Have our employees openly expressed feelings such as frustration, disappointment, and sorrow? Inertia
• Is the humor in your company cynical?

 your company
Source: Fully Charged; Bernd Vogel & Heike Bruch

– 13 –


Agenda





What to do?

Feedback

 your company

– 14 –


Agenda





What to do?

Feedback

 your company

– 15 –


What can Detecon do to improve productive energy?

Next steps…

Symbolic management: Strengthening the collective self-efficacy conviction:

• Valuation of people who engage in
the vision implementation and
highlighting effective actors as well 1 Creating feelings of success (mastery experience)
a swell as slowing down people
Competencies are fully activated; potentials are
who are destructive towards
completely exhausted
change.

• Personal and visible participation 2 Model learning (vicarious experience)
of top-management with resources

Cognition of self-confidence strengthens the believe in
and activities in the implementation own skills and team competencies
of the vision
3 Immediate Convincing(social persuasion)
• Repeatedly enhance the symbolic
meaning of prioritites Interest of leadership in ideas and emotions, positive
leadership climate

4 Emotional state (affective states)

Creating positive prevailing mood
(develop enthusiasm)

 your company

– 16 –


What can Detecon do to improve productive energy?

Next steps…

Mobilization through transformational leadership:

1. Idealized influence
Act as role model, set morally high standards, develop conviction of
vision/mission
 Create the big picture (covering years), preferably providing concrete
and clear descriptions of the future
 Definition of a collective agenda provides orientation and sense
 Important: It should be attractive for all stakeholders to be inspired and to
engage towards a collective goal

2. Inspiration
Create incentives through exciting future visions, future vision should be
motivating and emotional thrilling

3. Mental motivation
Known problems need to be reevaluated, employees should be encouraged
to take new perspectives

4. Individual treatment
Skills and potential of employees should be lifted to a new level, individual
appreciation and promotion are necessary

 your company

– 17 –


Agenda





What to do?

Feedback

 your company

– 18 –

Detecon transformation team

Detecon transformation community consists of experts with wide and well-grounded knowhow
and experience in the transformation and innovation area.

Lars Attmer Amadeus Müller- Peter Gere
 HR Management Daubermann  Organizational Behaviour
 Training, Coaching  Strategic Marketing  Strategic Workforce
 Leadership Development  Corporate Responsibility Management
 Due Diligence and Business  Intercultural
Cases Management

Paul Geuting Carolin Vanessa Herman Hanna Nari Kahle
 HR Development  Change and Culture  Social Innovation
 Organizational Development Management  Sustainability
 Restructuring
 Mediation  Innovation Management
 Business Case Development

Sascha Kurth Michael Lehner Christian Lohn
 Digital Transformation  Managementtrainings  Organizational & HR
 Innovation Management  Organizational Management
 Workforce Management Development  Corporate Development
 Human Ressource  Strategy and International
Management Management

© Detecon

– 19 –

Detecon transformation team

Detecon transformation community consists of experts with wide and well-grounded knowhow
and experience in the transformation and innovation area.

Christoph Lymbersky Tanja Misiak Michael Richter
 Turnaround Management  HR-IT Processes
 Corporate Responsibility
 Transformation Management  HR Reengineering
 Sustainability & Climate
 Corporate Restructuring  Stakeholder Management
Change
 Enterprise 2.0 and Social
Media

George Runge Dr. Jörg Sander Dr. Dirk Schrameyer
 Design Thinking and ICT  Education Management  Legal Affairs and Regulations
Innovation  Knowledge Management  Organizational Development
 Knowledge Management and  Learning Enterprise and  Total Workforce Management
Skill Management Enterprise 2.0
 Innovations Performance
Measurement

Moritz Schüngel Carolin Schmidt Marc Wagner
 Innovation Management  Change Management
 Responsible Partner for
 Sustainability  Intercultural Collaboration
Transformation & HR
 Energy Efficiency  Organizational Design
Management
 Efficiency and Restructuring
programs
 Turnaround Management

© Detecon

– 20 –

Contact

Marc Wagner
Partner
Head of Transformation & HR Management

Circle of Excellence Efficiency (CEE)l

Detecon International GmbH
Sternengasse 14 - 16
50676 Köln Germany

Phone: +49 221 91611414
Mobil: +49 175 2206049

Marc.Wagner@detecon.com

Fully Charged: How Great Leaders Boost www.detecon.com
Their Organization's Energy and Ignite
High Performance Aufsichtsrat: Klaus Werner (Vorsitz)
Geschäftsführung: Francis Deprez (Vorsitz),
Heike Bruch / Bernd Vogel
Andreas Baumann
Handelsregister: Amtsgericht Bonn HRB 2093
Harvard Business Review Press Sitz der Gesellschaft: Köln
2011

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