6. Retrieving experience from :
1. The ENRON case
2. The Barings case
3. The subprime crisis case
4. The Too big to fail case
5. The desert case
6. The retail sale of investments case
Program 7. The lean thinking approach
8. The future files statements
14,15 & 16/10/2011
9. The SPIN approach
10. The Jack Welch approach
12. 16 YEARS TO GO FROM 10bn TO 65bn &
24 DAYS TO GO BANKRUPT
ENRON IS NOT ABOUT NUMBERS BUT
ABOUT PEOPLE _ IN REALITIY :
A HUMAN TRAGEDY
13. Discussion • What were the
CONSEQUENCES of
the wrong decisions?
• What would have
been CORRECT
decisions?
13
14. WHAT WENT WRONG?
Senior management unloading stock?
Substantial contributions to political parties
Shredded documents
Manipulating market risk
Unusual high profits
15. WHAT WENT WRONG?
Feeling of something unusual going on
Falsified bank records
Manipulation of earnings
Trading beyond stated limits
Unread reports
Inappropriate use of legal loopholes
16. WHAT WENT WRONG?
Booking potential profits at the moment of the
conclusion of a contract
Hypothetical future value accounting
Performance evaluation system taken to the
extreme
17. WHAT WENT WRONG?
Profits without ethics
Black box accounting
« You have to do whatever you have to do t
stay there! »
Stock manipulation
Abusive public relations
18. WHAT WENT WRONG?
Convincing anyone else that they are smarter
Unusual large profits & risk taking
Abuse of deregulation
Many un-answered questions
19. WHAT WENT WRONG?
Pressure to do business at any price or
abuse
Corruption
Perception = the reality
Plenty of warning signs without control
Conflict of interest – special purpose vehicles
20. WHAT WENT WRONG?
Ambition versus modesty
Demonstrated dangers of structured finance
Lack of independance
Using company stock to garantee own transactions
GREED
Sale – repurchase transactions (warehousing)
21. WHAT WENT WRONG?
How is it that they reach the numbers?
Traders run the company
Absence of whistle blowing procedures
DEADLY MISTAKE of ARTHUR
ANDERSON = Death of the company itself
24. Discussion
What have you
learned from the
ENRON case?
25. Discussion
What would be
appropriate tools
to assure
accountability?
26. 1. Management by objectives
2. Code of conduct
3. Performance evaluation
4. Mission statements
5. Internal and external communication
6. Determine key values
7. Determine behavioural norms
8. Requires leadership
26
27. 1. Good decisions have taken consequences into
account
2. Good decisions entail clearly defined
responsibilities
3. Good decisions require the right corporate
culture
27
28. Accountability is the concept in ethics and
governance with several meanings. It is often
used synonymously with such concepts as
responsibility, answerability, blameworthiness,
liability, and other terms associated with the
expectation of account-giving.
(Source: Wikipedia)
28
29. Corporate governance
Corporate governance is about:
Assuring a correct management and control of a
company, based on laws and rules and
« behaviour » of management and staff!
It implies duties such as:
• An effective and efficient control
• Solvency
• Discipline of all involved
30. Corporate governance
The ten (10) principles of corporate governance
1. Required qualifications of the principal shareholders
2. Adequate management structure
3. Clear guidelines for powers and responsibilities
4. Definition of individual tasks among management
5. Independence of the control functions
6. Required qualities of the managers
7. Financial reward of the managers
8. Strategic objectives, corporate values and avoidance of
conflict of interest
9. Corporate structures and products
10. Publicity in publications
35. Barings Bank (1762 to 1995) was the oldest
merchant bank in London until its collapse in
1995 after one of the bank's employees, Nick
Leeson, lost £827 million ($1.3 billion) due to
speculative investing, primarily in futures
contracts, at the bank's Singapore office
36. Discussion • What were the
CONSEQUENCES of
the wrong decisions?
• What would have
been CORRECT
decisions?
36
37. WHAT WENT WRONG?
The MAJOR error is the lack of Chinese wall
So superficial
No “hands-on” management
Control & audit
Reporting
No understanding
38. WHAT WENT WRONG?
Feeling of something unusual going on
Falsified bank records
Manipulation of earnings
Trading beyond stated limits
Unread reports
Inappropriate use of legal loopholes
39. WHAT WENT WRONG?
Profits without ethics
Black box accounting
« You have to do whatever you have to do t
stay there! »
Stock manipulation
Abusive public relations
40. WHAT WENT WRONG?
Convincing anyone else that they are smarter
Unusual large profits & risk taking
Many un-answered questions
41. WHAT WENT WRONG?
Pressure to do business at any price or
abuse
Corruption
Perception = the reality
Plenty of warning signs without control
42. WHAT WENT WRONG?
Ambition versus modesty
Demonstrated dangers of structured finance
Lack of independance
Using company stock to garantee own transactions
GREED
Sale – repurchase transactions (warehousing)
43. Discussion
What have you
learned from the
BARINGS case?
47. A BRAND IS LINKED TO CULTURE
“The culture of a group can be defined as:
• a pattern of shared basic assumptions learned by a group
as it solved its problems of external adaptation and internal
integration,
• which has worked well enough to be considered valid
therefore, to be taught to new members as the correct way
to perceive, think, and feel in relation to those problems”
(Recommended reading: Organisational culture and leadership,
E.H.Schein, Jossey-Bass, 2010)
47
51. The objectives to be reached are:
NIKE SHOES
“NO GAMES, JUST SPORT”
51 A culture of listening
52. The objectives to be reached are:
For instance, this PC is the
result of a constant search for
excellence:
• BETTER
• FASTER
• CHEAPER
• SMALLER
• SIMPLER
52
A culture of excellence
53. The objectives to be reached are:
What is YOUR corporate
culture?
How do you evaluate it?
What is its decision
making process?
A culture of searching 53
55. « Every day in life,
there is a new
question. That is
what keeps us
going. »
55
56. According to Jack Welch
What leaders do
1. They relentlessly upgrade their team
2. They live and breathe their vision
3. They exude positive energy and optimism
4. They establish trust and transparency
5. They have to courage to take unpopular
decisions
6. They probe and push with a curiosity
7. They set the example
8. They celebrate 56
57. Motivation
In the final analysis a variety of SKILLS will
contribute as much as your formal academic training to
your and the organisation’s SUCCESS
57
58. Assessing Your Ability
No matter what life
throws at you in a day,
always keep FOCUSED
on your goals.
« Does is matter to my
goal?» If not, then
cross it off!
58
59. 1. Good DECISIONS have taken consequences
into account
2. Good decisions entail clearly defined
responsibilities
3. Good decisions require the right corporate
culture
4. Good decisions require leadership
5. Good decisions require the knowledge of the
broader picture
59
60. 1. Strict adherence to (behavioural) norms
2. Internal and external communication
3. Clearly spelled out procedures
4. Efficient and effective controls
5. Efficient reporting
6. Hands on management
7. The qualities of good leaders
60
63. Discussion • What were the
CONSEQUENCES of
the wrong decisions?
• What would have
been CORRECT
decisions?
63
64. WHAT are the characteristics of a good credit?
The five C’s of Credit assessment
– Character - the willingness of the borrower to repay
– Capacity - the ability to repay the debt from cash flow
– Collateral - the security backing the loan
– Capital - the strength of the borrower’s balance-sheet
– Conditions - the sensitivity of the project to outside
factors such as economic cycles and competition
65. WHAT WENT WRONG?
So superficial
No “hands-on” management
Control & audit
Reporting
No understanding
66. WHAT WENT WRONG?
Feeling of something unusual going on
Unread reports
Inappropriate use of legal loopholes
Profits without ethics
Abusive public relations
Black box accounting
67. WHAT WENT WRONG?
Convincing anyone else that they are smarter
Unusual large profits & risk taking
Many un-answered questions
Pressure to do business at any price or
abuse
Perception = the reality
No or little values
68. WHAT WENT WRONG?
Lack of structured thinking
1. Simplification to allow for best & worse case
scenario
2. Visualisation to understand the issues
3. Assuring the understanding of the key issues
4. Right presentation to allow for an educated
decision making
5. Associations are a strong helping hand
69. The subprime crisis
Discussion
In your view:
(1)What could or should have
been done?
(2)Is regulation the answer?
(3)Will it re-occur?
69
70. How would you explain the financial markets?
Discussion
70
72. The power of association
What might be the difference between those
markets?
1. The money market
2. The capital market
3. The foreign exchange market
4. The stock market
5. The futures market
72
73. The power of association
•ASSOCIATION is a helping hand to
your long term memory, i.e.
retaining and retrieving information
•A powerful help is IMAGES - they
speak a thousand words
73
77. 1. Good decisions have taken consequences into
account
2. Good decisions entail clearly defined
responsibilities
3. Good decisions require the right corporate
culture
4. Good decisions require leadership
5. Good decisions require values
77
78. 6. Good decisions require skills
7. Good decisions require anticipation
8. Good decisions require structured thinking
78
79. A last note on values
« Values are best
demonstrated as
opposed to talk
about it! »
Richard Hytner,
Saachi & Saatchi
79
93. Think Different
Steve Wheeler, University of Plymouth, 2011
Kick start your brain.
New ideas come from
watching something,
talking to people,
experimenting, asking
questions, getting out
of the office
- Steve Jobs
http://steve-jobs-biography.pics-grabber.appspot.com/
100. Getting out
• You are in the Arizona desert in the hottest time of the year.
Because of a fire, the plane had to land and most of the contents
have been destroyed but fortunately none of the three passengers
and the pilot are hurt. You know that you are about 75 miles from
the nearest town. Fortunately you have some pieces of equipment
and items left that you could use for your survival.
• The decision to make is: either to stay put and wait for help or move
and walk the 75 miles to the nearest town.
• Whatever the decision it needs to be taken unanimously!
100
101. Getting out
• Below is list of available items, you should list them in order of importance
to your survival, one being the most important, and decide what items to
take with you in case you decide to move. You may also take the decision
to stay and wait for potential help but should still list the items in order of
value to your survival:
1. Compass 8. 1 case of rations
2. Small transistor radio 9. Maps of the desert
10. Cushions
3. Shaving mirror
11. 5 litre of an oil/gas
4. Snake repellent mixture
5. 5-liter of water for the four of you 12. 1 bottle of rum
6. 4 square meter of opaque plastic 13. Two boxes of
7. Mosquito netting chocolate
14. 5 meter of ropes
15. One boomerang
101
102. Creating consensus
1. Clearly frame the issue to be decided & determine the
result you desire to achieve (during the meeting).
2. Clearly explain the process of decision making which
will be used.
3. Clearly explain the role of the facilitator.
4. Use a "straw polling" procedure to see how the group is
leaning on an issue and to facilitate the decision making
process.
102
103. Creating consensus
5. The standard for consensus is that the whole group
must agree with the decision. Each individual member
must agree that the decision is what he or she wants.
Do not allow the standard to drop to "I can live with it."
or "I'll go along to get this meeting over with."
Encourage participants to stand their ground.
6. 6. Expect dissent and disagreement during the process
and view this as a positive step towards a high quality
decision. Decisions made without dissent are often of
poor quality.
7. Encourage participants to be direct and concise in all
communications.
103
104. Creating consensus
8. Encourage everyone to actively listen to each person in
the group and to seek to understand other points of
view. Look for the possible merit of each other's
opinions.
9. Encourage everyone to approach the meeting and the
decision in a rational manner rather than an emotional
one.
10. If the meeting gets off track or people become focuses
on their own comfort or emotion, re-focus the group on
the desired result
104
105. 11.Good decisions require consensus
12.Good decisions require a structured approach
and methodology
105
108. Communication
« Communications
are an essential part
of what you have to
offer to the
stakeholders »
(Michael Dell)
108
109. Communication
• « Corporate communication is a management
function that offers a framework for the effective
coordination of all internal and external
communication with the overall purpose of
establishing and maintaining a favourable reputation
with stakeholders groups upon which the
organisation is dependent. »
(J. Cornelissen)
109
110. Communication
Communication requires
• An emphasis on dialogue and interactivity
• Focus on stakeholders’ needs
• Involvement of all functions and people
• A focus on branding (excellence)
• A focus on how well staff members are regarded
• A focus on the context
• The willingness to be a key driver
• Branding as a key aim
110
111. Communication
The goal of communication
• Is geared towards establishing a favourable corporate
image and reputation with all the stakeholders, so that
they act in a way that is conductive to the success of
the organisation!
• It is the spectre of damaged reputation that lies behind
the urgency of doing and saying the right things, now!
111
113. The requirements for a professional
communicator (based on a recent UK survey / in order of importance)
Verbal communication
Integrity
Influence, persuasion and diplomacy
Writing and editing skills
Critical judgment
Enthusiasm, motivation and curiosity
Assertiveness and confidence
113
114. The requirements for a professional
communicator (based on a recent UK survey / in order of importance)
(continued)
Reflection, learning from previous experience
Intuition and perception
Creativity
Problem solving
Organisation, planning and task focus
Understanding the business strategy
Presentation skills
Using information technology & e-communications
Budget management
114
115. Communication
• Promises arise from
spoken and written
communication
•It is a matter of gaining a
position in the minds of the
stakeholders
115
116. Communication
There are three concepts that form the
theoretical foundation of corporate
communication:
1. The stakeholders
2. The corporate identity
3. The reputation
• Organisations have realised that now more
than ever they need to listen to and
communicate with a large range of
stakeholders
116
117. Communication- stakeholders
investors
political
governments
groups
suppliers organisation customers
trade
associations communities
employees
117
Source: Corporate communication, J. Cornelissen
118. Communication
Stakeholders
• A stakeholder is any group or individual who
can affect or is affected by the achievement
of the organisation’s purpose and objectives
• The interest can be of an economic or of
moral nature.
• Example of community stakeholders:
consumers, regulators, government,media,
local communities,pressure groups
118
119. Communication
stakeholder awareness understanding involvement commitment
tactics newsletters discussions consultation collective
reports meetings debate problem
memos advertising solving
free adds educational
campaigns
type of informational persuasive dialogue dialogue
strategy
119
Source: Corporate communication, J. Cornelissen
120. Communication
A communication strategy should be based
upon an assessment of the GAP between
how the issue is currently seen and how
YOU want it to be seen.
DG HR.B.3 - Learning and 120
Development
121. Communication
Formulating the content of a communication strategy
vision reputation
strategic intend
define target
audiences
themed messages
message styles
message media
121
Source: Corporate communication, J. Cornelissen
122. Communication
• Avoid vagueness
• How the message is said is paramount
• Tone and manner of communication are customer
based
• Continuity, consistency
• Altering perceptions is very difficult
• No neglect of consistency & harmony in:
– names
– logo
– colour
– message
122
128. • Internet • Forum - Blog
– Website • Wiki
– Static content – Dynamic content
– 1 webmaster – Community
– Yearly content update – Continuous update
• E-mail • Social networks
– One to one – Collaborative content
– One to many – Many to many communication
128
130. “The rise of social media makes it more
important than ever to get the branding
fundamentals right”
“You do not need to rewrite the marketing
playbook but to exploit social media
opportunities while keeping an
UNWAVERING FOCUS on meeting the
customers’ needs”
HBR Dec, 2010
130
132. 1. Good decisions have taken consequences into
account
2. Good decisions entail clearly defined
responsibilities
3. Good decisions require the right corporate
culture
4. Good decisions require leadership
5. Good decisions require values
132
133. 6. Good decisions require skills
7. Good decisions require anticipation
8. Good decisions require structured thinking
9. Good decisions require questioning
10.Good decisions may require intuition
133
136. Implementation
1. Define
2. Measure
3. Analyse
4. Innovate or
Improve
DMAIC 5. Control
137. Define
HR & mgt
customer
leadership planning results
market
processes
Improving the drivers impacts the results
138. Define
Performance indicators
How do we know we
are getting closer?
Where are Where are How do
we? we going? we get
there?
Assessment Planning Processes
139. Define
HR & mgt improved
motivation
customer improved
leadership planning Results
market service
processes
Improving the drivers impacts the results
140. Define
What is a process?
INPUT OUTPUT
•A process is a set of linked or related activities transforming
inputs
•The quality of the process determines the quality of the output
141. Define
• A project needs a project leader
• Determine the role of the key players
• Define the boundaries of the project
• Help clarifying the objectives
• Define which information is needed
• Determine his role (desire to have power over a team is
a no-win situation!)
142. Define
A project leader’s check list:
1. The problem
2. The goal
3. Role expectations
4. People involved
5. Restrictions
6. Reporting
7. Next stage
143. Define
A project will have greater success if:
• The problem is related to a key business issue
• The problem is linked to a clearly defined process
• The internal and external beneficiaries are clearly identified
• The improvements can be demonstrated
• The improvements contribute to the overall performance
• There is sufficient organisational support
• The results are visible with a pay-back period
144. Define
Example of a potential result analysis
Expected Benefit of that Expected
improvement improvement busines impact
Reduce errors Less time 5 % increase
in processing spend fixing in monthly
errors, speed revenues
up work flow
145. Define
A project leader’s chart:
How to DMAIC & define the milestones & create a
milestone plan
What is a milestone? Milestones are:
• Measurement points
• Indicate a logical order
• Directed towards the goal
• Allow for communication
Project start Finish
146. Define
Questions to consider
Project
What issues are you addressing?
What problems do customers have with the process?
Expected business results
What will be the business impact of the improving process?
How will team members benefit from succesful completion of this project?
Focus
What information will be collected?
What areas are inside or outside the scope of the team?
On what specific parts of the process will the team focus?
Deliverables
What must the team deliver to be succesful?
Measures
What will be the primary measure of success
How will measures be tracked?
How much improvement is needed and when?
147. Discussion TASK
How would you make
sure that (retail)
investors take the right
decision when
purchasing mutual
funds?
147
148. Assuring investors make the right decisions
(1) (2)
Customer profiling Product profiling
(3)
A perfect match at
the right price
148
155. Measure
• Measure is about process mapping technique
• Different process require different types of process
maps
• Process mapping should lead to process improvement
• The word « process » generates fear and resistance
157. Measure
What is a process map?
• A detailed graphical representation of a process flow
• The identification of specific steps eventually opportunities
for improvement
• Required tool to think about value
158. Measure
Why use process maps?
• To sharpen your ideas
• To have a common understanding
• To examen which activities have the greatest impact
on profits
• To reveal non-value added activities
• To serve as a training tool
• To compare the existing process to an ideal, simulated
process
159. Measure
Basic symbols
First and last steps in a
process
Particular steps in a process
Yes-no decision points
Subroutines or connection
points
Flow of movement of the
process
160. Measure
Example : new employee arrival
Arrival Review policies
Office tour
& procedures
no
Clear Answer questions
?
yes
Fill out forms Forms
processing
161. Measure
Example : new employee arrival
Arrival Review policies
Office tour
& procedures
no
What are Clear Answer questions
possible ?
issues? yes
Fill out forms Forms
processing
162. Measure
• Describe the step by
step process of the
things you do between
the alarm clock ringing
in the morning and the
moment you leave the
house.
• How could you
reduce this process or
gain time?
163. Measure
Value stream mapping
A quantitative tool by which one
describes in detail how a process
should operate to create flow
A value stream mapping is the
foundation for all Lean activities
It focuses on the customer and
what he considers as value
Waste abounds in information
processes, which is the reason
why tracking the right
information is so important
164. Measure
Describe the value stream
map for a credit card
attribution process when
an application for a card is
received by mail.
How much time would it
take?
165. Measure
CREDIT CARD PROCESS
Central mail dept
Credit card dept
Request introduction
Request approval
Physical card creation
Verification card
Credit dept mail sort
Central mail dept
166. 3.1.2 Measure
Answer based on an attribution process of a large
bank (source Process Excellence)
The requests for a credit card are sent by the customer via mail.
Central mail officer opens the envelopes (10 sec.) sorts the requests to the
credit card dept. (5 sec.) and places them in the outbox. The mail is
transmitted the next day to the credit card department. Queue time before
next action 8 hours.
Credit card dept mail sort: requests are sorted per region (5 sec.), a data
stamp is added (2 sec.) and the orders are placed in folders for the credit
analysis (10sec.). The work is performed by the credit admin. Qeueu time
before next step 4 hours.
A junior credit analyst is initiating the request (9min. 15 sec.). Queue time
before next step 4 hours.
The senior analyst check the income of the customer (7 min. 45 sec.), check
the internal (5 min.) and external black list (7 min.) for credit abusers and
approve or refuse the request (4 min.). Queue time before the next step 2
hours.
167. Measure
Answer based on an attribution process of a large bank
(source Process Excellence) – (continued)
The junior credit analyst perform the physical creation of the credit card and
print the letter to send the card to the customer (7.5 min.) and files a hard
copy of the card request (90 sec.). Queue time before next step 1 hour.
The senior analyst verifies the created card: name, number, valid date, (3
min.45 sec.). Queue time before the next step 4 hours.
The credit analyst uses the mainframe computer to perform the work.
The credit department mail sorter puts the letter and card in an enveloppe
and closes the envelope (30 sec.) . Queue time before next step 4 hours
The central mail office posts the letter. Queue time before expedition 8
hours.
Total time of the work flow : 128.717 sec.of which
Total cycle time: 2.717 seconds
Total queue time 2100: 126.000 sec.
168. Measure
Funneling is a technique
used to select the critical,
best one or few items
from a whole list of items.
The critical
process/input variable
from all variables
The critical step out of
all steps
The best solution from
a list over several
solutions
169. Measure
Funneling is a technique used:
when there are too many variables which might have
an impact on the output of the process
there are too many solutions to choose from
it would require too much time and money to analyze
everything
team members have different ideas about what
happens in a process
171. Measure
1. List all output variables
Output variables 2. Rank and Weight
3. List all Input and these output
10 shots per
Safe for the
accurate
distance
variables
operator
Process variables
minute
Shot
Weight 10 3 1
Drawback angle 9 0 1
5. Cross-Multiply
Stop position 9 0 0
Weight and
Cup position 9 0 0 relationship factor
Left hand 5 5 9
Right hand 5 5 9
Rubber band 9 5 9
4. Evaluate the Ball type 9 9 0
relationships
Ball number 0 5 9
6. Highlight the
Extra operator 1 9 9
critical few
variables
172. Measure
2. List all selection 3. Discard No Go
Solutions and 1. List all concepts or
criteria and weigh
select the reference solutions
there importance
4. Evaluate every
concept and
criterion versus
the reference
5. Count and and score +
summarize when better, -
weighted sums. when worse and
Calculate the total S when the
score per concept same.
6. Highlight
the best
one
173. Measure
Cause and effect diagram Storm Power
Old
Bulb
Burned
Missing
•A cause and effect diagram
Power Outage Out
Bulb
Power Plant
Broken
graphically displays potential Failure
Is Current
On? Loose
Circuit Breaker
causes of a problem No House
Is Bill
Paid?
Current
Missing
•The layout shows cause-and- Unpaid Bill Wall Switch
Lamp
Turned Off Assembly error
effect relationships between the Doesn’t
Turn On
potential causes Not Plugged In
Switch
Broken
Chewed
by Dog Switch
Missing
Cord Cut
Vandal No Contact
Corroded
Plug/Cord Lamp
175. Measure
Data collection
Collecting and analyzing data
takes time and resources.
It is important to ensure sufficient
data, in quantity and type, is
collected right from the start to
prevent having to collect more
data down the road.
176. Measure
Data collection
However, do not get
overwhelmed by to much
data. Make sure they can still
be reasonably analyzed and
understood, taking into
account the time and
methods available.
Part of the challenge is to
decide just how much data
will be sufficient (and
representative) to reach a
perfect balance.
177. Analyse
Tools for analysis - a time plot is a graph of data
ordered in time
140
130
120
Number of days
110
100
90
80
70
0 10 20 30
178. Analyse
The importance of order of 65
The process has a sudden
shift.
60
time 55
• Process conditions can 50
change over time. 45
40
Data from one point in 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41
time are not always
comparable to those at Four points look very different from the
others.
65
another point in time. 60
• If you ignore time-related 55
patterns, your conclusions 50
45
may be false. 40
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41
180. Improve
• The PDCA Cycle is a set of
activities (Plan, Do, Check,
Adjust) designed to drive
continuous improvement.
Adjust Plan
• Initially implemented in
manufacturing, it has broad
Check Do
applicability in business. First
developed by Walter Shewhart,
it is more commonly called the
Deming cycle in Japan where it
was popularized by Edwards
Deming.
181. Improve
What is the PDCA cycle?
• PLAN: plan ahead for change
• DO: execute the plan, taking small steps in controlled
circumstances
• CHECK: check and study the results.
• ADJUST: take action to standardize or improve the
process, eventually adjust the plan
182. Improve
PLAN
• Analyze what you intend to improve, looking for areas
with opportunities for change.
• The first step is to choose areas offering offer the most
return for the effort you put in.
Plan
183. Improve
DO
• Implement the change you decided on in the plan
phase.
• Implement the corrective action.
Do
184. Improve
CHECK
• This is a crucial step in the PDCA cycle.
• After you have implemented the change for a short
time, you must determine how well it is working: is it
really leading to improvement in the way you had
hoped and planned?
Check
185. Improve
ADJUST
• Implementing and then monitoring the change, you must
decide whether it is worth continuing.
• If it consumed too much time, was difficult to adhere to, or
even led to no improvement, you may consider aborting
the change and planning a new one.
• However, if the change led to a desirable improvement or
outcome, you may consider to proceed or adjust.
• Make the changes a routine part of your activity.
Adjust
186. Improve
The usefulness of the PDCA cycle:
• The PDCA cycle is a valuable process that can be
applied to practically anything
• Offers you the most effective and efficient roadmap to
implementation of a solution.
• The PDCA cycle is designed to be used as a dynamic
model: the completion of one turn of the cycle flows
into the beginning of the next.
• Following in the spirit of continuous improvement, the
process can always be reanalyzed and a new test of
change can begin
187. Improve
When can a PDCA cycle be used?
• For daily routine management (for the individual and/or
the team).
• For project management.
• For implementing solutions.
• For problem solving.
• For continuous development and continuous
improvement.
188. Improve
How to use a PDCA cycle
• This is a schematic representation of the use of the
PDCA cycle in the improvement process.
• As each full PDCA cycle comes to completion, a new
and slightly more complex project can be undertaken.
This rolling over feature is integral to the continuous
improvement process.
189. Control
What ?
Why ? Criteria for a good scorecard
1. Policy deployment
Every measure is a part of a chain of cause and
effect linkages that represent the strategy.
2. Linked to business results
Every measure ultimately ties to business
Balanced results.
Scorecard = a control 3. Well-defined KPI’s
dashboard - Expected outcome
- Performance indicator
- Target
4. The balanced scorecard provides a framework
The strategic objectives/critical goals are to be
linked to any of the 9 boxes of the Process
Excellence Assessment Model.
190. Control
A balanced scorecard
• is a system of linked objectives and performance
measures (KPI's) which collectively describes the
strategy of an organization and how that strategy can be
achieved.
• Balanced :
– Not only financial outcomes
191. Control
A balanced scorecard’s use
• A. Typical measurement system weaknesses
• B. We need measures to manage the three main levels
of an organization :
• Organizational level
• Interdepartmental level
• Individual level.
192. Control
Without measures, managers have no basis for :
• Specifically communicating performance expectations to
subordinates;
• Knowing what is going on in their organization;
• Deploying their strategy down to the lowest level;
• Effectively making and supporting decisions regarding
resources, plans, policies, schedules and structures;
• Providing feedback that compares performance to a
target.
193. Control
Strategy How
vision
Organizational level
Critical goals/objectives X+3
KPI
How
What Target
Items to work on
Interdepartmental level
Critical goals/objectives X+1
KPI How
What Target
Projects/problems/processes
Individual level
Objective on individual level
KPI
What Target
Every measure is a part of a chain of cause and effect linkages
that represents the strategy
194. Control
Examples of a KPI
KPI
Expected outcome Perform. indic Target
Strategy Critical goals
Positive trend in Market share 10 %
no. of customers Brand recognition
who differentiate
us from our com-
Delighted customer Improve brand dominance petitors by the
brand they buy
Critical goals KPI
Expected outcome Perform. indic. Target
Positive trend in On time delivery > 95 %
Enhance customer service to the cust. Vendor scorecard Score of 90-95%
service in terms of time, (# complaints) < 5/year
quality & cost
KPI
Individual goals Expected outcome Perform. indic Target
Multi-skill ness
Positive trend in Multi-skill ness Improvement
flexibility to matrix with 1 level
react quicker
to customer
inquiries
195. 1. Good decisions have taken consequences into
account
2. Good decisions entail clearly defined
responsibilities
3. Good decisions require the right corporate
culture
4. Good decisions require leadership
5. Good decisions require values
195
196. 6. Good decisions require skills
7. Good decisions require anticipation
8. Good decisions require structured thinking
9. Good decisions require questioning
10.Good decisions may require intuition
196
201. Changing attitudes
Changing attitudes is a challenge
confirmation,
justification rational
opinions,
principles
80% of the
activities of
motivation people
decisions
personality
structure
203. Changing attitudes
The wrong attitudes
• Standards are made to be
followed not to be improved.
• Cowboy individualism
• Fear of the unknown
• What is in it for me only?
• « Been there, done that… »
204. Why Do People Resist Change?
• The phrase, “overcoming resistance,” indicates an adversarial
relationship … since resistance is an emotional process, the key
is understanding it:
– People resist change because the change is:
• Perceived by them to be negative, and
• They do not want to deal with the reasons for it
– Resistance is a way of expressing feelings of concern about making a change
– These concerns tend to be:
• Concerns over loss of control
• Concerns over vulnerability
– Your task is to help the person who is resisting change to express these
concerns directly
205. Why Resistance Occurs . . .
• Resistance can occur because
people fear:
– Loss of credibility or reputation Indirect Expressions
– Lack of career or financial of Concerns/
Visible Resistance
advancement
– Possible damage to relationships Real/
with boss Underlying
Concerns
– Loss of employment
– Interpersonal rejection
– Change in job role
– Embarrassment/loss of self-esteem
– Job transfer or demotion
Your task is to encourage the full expression of the
real/underlying concerns.
206. Three Steps to Dealing with Resistance
• Step 1: Identify the form the resistance is taking:
– Trust what you see more than what you hear
– Pick up cues
– Listen to yourself — use your own feelings as a barometer
• Uneasy, bored, irritated
– Listen for repetition/telltale phrases
– Make two good-faith responses
• Step 2: Acknowledge, name the resistance:
– Tell person your perception of the resistance
– Do it in a “win/win” manner; neutral, non-aggressive - “What I think I hear you saying
is . . .”
– Tell the person how the resistance is making you feel
– Be specific, clear, authentic
• Step 3: Be quiet, listen, let the person respond:
– Get him/her talking
– Encourage full expression of the concerns
– Gradually uncover underlying resistance/issue - be aware of other forms of
resistance surfacing
207. Dealing With Resistance: What Not To Do
• Fight the resistance • Expect approval,
encouragement, support
• Go into more data and/or affection
collection
• Lose your confidence
• Reengineer in the attempt
to get a better intervention • Expect to have all the answers
• Avoid the individual • Collude with the individual
• Work more with your • Avoid giving “bad news”
“allies” • Use aggressive language
• Give lots of reasons – “You Dummy” Rule
• Get hooked into the details • Delay/wait one more day
208. Tactics to Minimise Resistance
• Explain why • Provide appropriate training in new skills
and coaching in new values and
• Identify the benefits behaviors
• Invite and answer questions • Encourage self-management
• Give more feedback than usual to ensure
• Solicit participation, and, if possible, people always know where they stand
early involvement
• Allow for resistance. Help people let go
• (“first-draft/strawmodel” of the “old”
reviews, membership in
planning/implementation teams, • Measure results, step back and take a
etc.) look at what is going on. Keep asking “Is
the change working the way we want it
• Avoid surprises to?”
• Encourage people to think and act
• Set standards and clear targets creatively
• Look for any “opportunity” created by the
• Inform/involve informal leaders change
• Recognize and reward efforts • Allow for withdrawal and return of people
• Over communicate who are temporarily resistant
209. Changing attitudes
The right attitudes
• Excellent people and companies focus
primarily on beating themselves
• How can we improve ourselves to do
better tomorrow than we did today?
•Where can we improve the end to end
process?
•You are the only one who can change
YOU = M.B.O.
MANAGEMENT BY OBJECTIVES !
210. Changing attitudes
Changing attitudes
Your
know-how Professional Trust Satisfaction
Status
Appreciation &
Income
Every member of staff is at the beginning of
a personal value chain
211. Changing attitudes
• Transforming corporate
performance by
measuring and managing
the drivers of business
success
•80 % of change
initiatives fail due to
human factors
•An organisation moves
slower than the
individuals who make up
the organisation!
212. Changing attitudes
Discussion
•What do you and your
colleagues truly value?
•What can you do as an
individual in a company
that is embarking upon
a different journey?
213. Changing attitudes
•Change management
means the ability to listen,
the ability to teach and
guide, and the ability to
learn and consider
alternative viewpoints.
•It develops the attitude
that you do not always be
right or have all
the answers.
216. Changing attitudes
Summary step by step goal setting
1. Determine the goals by means of a swot and
questions
2. Determine qualitative and quantitative goals
3. Plan the implementation in a time frame
4. Control in a time frame
5. Establish accountability
6. Determine alternative actions
7. Communication and information to all involved
Management by Objectives
217. Changing attitudes
• You do not directly motivate people, they are
motivated to fulfil the their basic human needs, which
vary in degree or intensity from individual to individual
• The manager’s task is to create reinforcing conditions
where staff can see “what’s in it” for them on
condition they stretch themselves and gap the
difference between goals and performance.
218. Changing attitudes
• Performance should be reviewed on a continuous
basis. This means that in case of none or weak
performance the employee is counselled immediately.
• However, once a year the performance should be
appraised in a more formal manner.
219. Changing attitudes
• There should be no surprises as to the items
discussed.
• The purpose of the review should not be an in
depth analysis of the past but an assessment of
reached objectives, of the present situation of the
employee and above all it should be forward
looking.
• The goal is to improve on the present
performance, whatever it is.
223. What are the qualities of an evaluation
process?
MBO should be a win-win situation!
224. Changing attitudes
The qualities of an
evaluation process
1. Importance of the process
2. Partnership
3. Respect
4. Constructive
5. Objective
6. Specific
MBO should be a win-win situation!
225. Changing attitudes
How can you be sure the system works?
• By being fair, by rewarding those who really want
to move forward and by penalising those who do
not. It is a system whereby you either move
upwards or outwards but where there is no room
for mediocrity.
• Average performance pushes overall performance
downwards.
• You want to move upwards, not downwards.
227. Changing attitudes
• The ultimate goal is to be
seen to be better than the
others or at least different
than the others!
• It is the responsibility of
everybody, irrespective of
that person’s position in
the organisation.
228. CHANGE
Discussion
• What kind of
CHANGE is ahead of
us?
• What does it take to
ADAPT?
228
230. Leading Change
insight
wisdom
perspective
A Brief Visual Narrative by Adam Walz
231. Mastering delicate situations
• The more you are
structured the more
chances you have to
reach a solution.
• « Lay back! » You are not
being blamed personally!
• YOU are NOT part of
the problem,
you try to resolve it
232. Mastering delicate situations
• You are looking for a solution in the capacity of a
consultant
• The customer is neither always right nor wrong. It
does not matter. What matters is that you are a
professional solving a problem
• Remember that you are the best advertisement!
233. Mastering delicate situations
• Always take objections very seriously
• Be conscious about your attitude
• Isolate each objection and address them one by one
• Always finish a conversation on a positive note
• Go to the very end
• Conclude with closed questions (yes or no)
234. The attitudes of wisdom
• What matters is concluding
• A customer complaint represents an opportunity
• Think about the marketing aspects of a complaint. A
complaint is a piece of marketing information
• One can commit an error but not twice the same.
235. The attitudes of wisdom
• Never be on the defensive side, you are a
consultant, who is looking for a mutually acceptable
solution
• Never be critical, the only criticism is constructive
criticism
• Never promise what you cannot deliver
236. The attitudes of wisdom
• Learn from each situation what you can make
out of it, knowledge means survival!!!
• Good luck, whatever your level of
professionalism, you do need some luck!
237. Workplace Change
and
Transition
Redirecting your thoughts and overcoming
fear
By Catherine Adenle
http://catherinescareercorner.com
245. The 20 steps for good DECISIONS
1. Examine every alternative
2. Use previous decisions if the are still applicable
3. Make long term decisions with the short term in mind
4. Change decisions that are no longer appropriate
5. Consider the implications of each decision
6. Try to foresee and prepare for any changes
7. Always ask what can go wrong with your decision
8. Always consider the possible outcomes
9. Always try to balance intuition and logic
10. Avoid making decision that have a large element of
chance in them
245
246. The 20 steps for good DECISIONS
11. Follow a precedent when it works
12. Challenge the company culture if need be
13. Be aware of politics behind decisions
14. Weigh the impact of decisions on people
15. Do not be afraid to delegate the process
16. Do not be afraid of rejection, think about an alternative
17. Build your trust in decision making
18. Never make decisions under pressure
19. If it proves to be a wrong decision, take fast action
20. Never postpone vital decisions – make them quickly
246
247. Other final points
• Decision making is not an exact science,
• Behind data there are men and women!
• Thinking is not a tidy process but it should be done with
a sense of order
• Remember that solutions are the seed of new problems
• Bad decisions are unforced errors but if you want to win
their number should be limited
• It is always worthwhile to listen to people
• A problem is a solution in disguise
• Brainstorming: reverse brainstorming = in how many
ways can this idea fail?
247
248. Other final points
• We need critical input from others to remove the filters
from our eyes
• Remember the mental roadblocks:
– Lack of facts
– Lack of conviction
– Lack of a starting point
– Lack of perspective
– Lack of motivation
248
249. Other final points
• IF YOU TRULY WANT TO DEVELOP YOUR
THINKING SKILLS, YOUR TASK IS ESSENTIALLY
ONE OF SELF-DEVELOPMENT
249
250. Other final points
• A STRONG MESSAGE HAS TO BE DELIVERED
BY THE NUMBER ONE
• DATA WITH A SOUL IS A STORY
250
253. ACTION
1. Fix a meeting with you in your agenda on a regular
basis
2. Act as if you are rowing with a large team even if you
are only a few
3. Have goals and performance evaluations even if you
are a ME incorporated
4. Have the PC- development approach: faster, better,
simpler, cheaper!
5. Give yourself a tap on the shoulder occasionally
253
253