Transcript review

- Personal reflections on Ro experience. I like taking on organizations where it's impossible to fail. The only way to go is up. Marcy is here today in celebration of the full Ro implementation.
- We're beginning to implement what I will describe as the requisite leadership behaviors that are needed to be successful in Ro. We were driving reform within the Mallancrop Baker organization and we are continuing to roll that out. We are now in a position to look at systems and install systems.

- So we get out of the old Glasgow office and sub it. The only question left is the timing. Put it up at the next board meeting. Perhaps you're right. You're tired. Then stop overdoing it and start by having an early night.
- Model procedure. Peels procedure council. Tend to grow larger and larger. One of the results of this growth is a rapid increase in the amount of confusion, anxiety and hostile behavior. The thought of major organizational change is worrying him. It's not change I'm suggesting, it's awareness.
- If organizations so formal, human relationships will suffer. Random confusion in organization produces anxiety, hostility and antisocial behavior. If we want to avoid such behavior, we must be able to organize better.
- Three ranks of management. Each manager has a staff officer attached. BS, CS and DS responsible for giving CS task instructions. B and BS are therefore co managers of CS. The worry now is the point of resistance. The plant managers are your problem, aren't they?
- Wherever an employment hierarchy exists, three other systems of roles interact with it. To get real managerial authority, I've got to have an appeal system. To make it work, I must have policies. How are you going to get all this agreement? With works councils.
- Work councils are company institutions. They can't deal with national problems. Set up a series of conferences in which you adapt this procedure agreement to the needs of Dunsyth with reps from all grades. These ideas aren't Panacea's for all problems but at least they get them into focus.

- Jax: What we can do at DTS that we don't know of anyone else who's doing what we're doing yet. We've developed an assessment system that is completely independent of particular content. We can track the development of an individual over the course of many years in multiple domains.
- The ruler is based on unimental constructs, so that a five is always a five. Individuals function at different levels in different knowledge domains. Looking at the content and the structures separately makes it possible for us to describe learning pathways.

- As Mike's been talking, there's obviously a lot of similarities about what they're doing. But our situation is quite different. I do have a table full of hecklers, executive level hecklers over here. So I'm probably in a worse situation.
- Level four projects actually require level four management and you require a level four organization. complexity, if successfully delivered, also creates a huge amount of competitive advantage. There are some clear lessons that we now take into consideration on any of our future project pursuits.
- Our annual volumes have jumped from billion dollar mark to 2.3 billion, 2.2 billion probably this year. Our organizational structure continues to evolve, including recent changes. And we're preparing over the next five years to double in size again to 5 billion a year.
- Charlie Corey had a question about the Matrix Organization. By that you mean projectized across functions. Can you describe that in terms of requisite organization theory? Catch me later.
- Employees buy in at book value, which is probably half to a third of what it would be outside of on perhaps a public structure. The returns are multiplied by potentially twice as much because you're buying at half the price. Is there an obligation for employees to no obligation?
- It's about building and managing level four relationships to get level four projects. We made sure that we aligned all of our organizations crosswise between the various stakeholders. When we're developing the next level seven organization, we're also talking about introducing a client stream.

- A new CEO and a new human resource manager asked our help in order to install a conversation inside the organization about talent pool and talent management. The project has three steps. The first one is mostly focus on design, the second one in training and the third one is implementation.

- The Roche Canada story essentially began in the early to mid ninety s. The pharmaceutical industry has long been one of the world's most complex. I'm going to briefly describe some of that turbulence and how Roche as a corporation decided to respond to that.
- Kevin is a very, very smart young man who's not had a lot of education. By using patterns that you can see when you're working at your level versus the individual detail that he's working, you're able to make different kinds of decisions. It's just how you decide to conceptualize the issue.
- There's a shift in the number of functions that you have to cross integrate in order to move up level. At the MD level, the reason why time is required to resolve complex problems. And that's what drives time.
- There's probably new markets because the level shift has actually created a new market. Strategy is about functional execution. It's about industry structure. If your competition is thinking at this level and you're thinking at that level, you're going to kill them.
- Different felt truths at each level. Down here is manufacturing is what makes this business work. Then we misallocate survival vigor to felt truths that may not be true. The dominant player in the market is operating one level above the others. Parity is insufficient if you want to make any money.
- That's enough. We'll leave a little bit of time for questions. Any questions out there? Everybody's hungry? It was great. Thank you very much.

- This is a session about global organization and design in government and the not for profit sector and the social sector. We'll allow questions related to each presentation, but then we'll allow a discussion period at the end. We promise to quit precisely at three.
- The International Federation Red Cross Red Crown Society is the largest humanitarian network in the world. The overall organization assisted 233,000,000 people using 105,000,.000 volunteers, just under 300,000 permanent staff, annual expenditures collectively $24 billion.
- The Red Cross had 30 different governments and each had their own systems. Working as a federation was a concept that in order to deal with the challenges in the future. There were 103 recommendations that needed to improve the effectiveness of the organization.
- Only 45% of all managers were aligned properly, 55% were not aligned properly. Big issue in terms of improving our effectiveness and our performance was to get the field geneva relations clearer who were the boss of the field people. Results were enhanced and we changed the performance of the organization.
- Wondering how much this is shared. All NGOs are in competition with each other. But when I call coordination, it works best. At the field level where that happens. It shows the depth and the emergence need so that it's not about putting into a static organization.
- Thank you. I just want to say quickly that I appreciate being here. I feel very fortunate to be here in such a small group to get such high quality presentations. Thank you very much.

- The actual management of the company in combat is a matter of coordinating the movement of platoons. The next level up, the added complexity is largely the addition of a staff. How big should these operations be? 60.
- Complexity is getting more capable, et cetera. Same phenomena is happening in industry. We've pushed complexity down because you're in a global environment. Industry is going global, and so their complexity also is being pushed up.
- Smaller seems to be more adaptive, more agile, more flexible. When business units came in, then the marketplace went global. And so you could begin to see the business unit get smaller in terms of competing. Now you're going to see level four or five business units or 16.

- Most job evaluation systems and most corporations are fundamentally broken. It would not surprise me that you are probably looking at anywhere from 20 to $200 to $2 billion of excess compensation cost due to overlayer. If you're in compensation, you might want to take a hard look at it.
- The problem today in North America is what we're basically disclosing in proxy statements for shareholders is basically operational work. Are we paying CEOs for the right work? And beyond that, we're overpaying them for the operational work they're doing.
- Bob Greene: Watson Wyatt knows nothing about compensation. He asks: Does pay data reflect work that might be more looking, developing new products and developing new businesses. He says there's a five factor difference in complexity of the real work. Greene: Let's see what else we're going to talk about.
- Two clients in the last year had existing contracts with traditional comp consultants. When they tried to use it, it totally distorted the pay numbers we were getting. Can't trust any data coming out of Watson, Wyatt Towers. Parent and I'll go to court with them any day.
- There's a real problem right now in executive pay seeming somewhat off the rails. We took the Russell 3000, scrubbed the data, ended up with about 2500 companies. The concept of welfare pay, the concept of a pay multiplier to help you get a truly differential work, seems to work.

- When I joined Von I found an organization that had around 60 standalone entities that were in a process of trying to merge under one corporate structure. The challenge that I faced and senior management faced is how you build it's. It's a three to five year process, at least, if not longer.

- This is the third time I've spoken in this hotel this week. Yesterday was the first time I spoke with a group that was exclusively female. And the questions were a hell of a lot harder than the ones I had Monday and Tuesday.
- The difference between Suncorps and PetroCanada. A very different set of cultures coming together in that aspect. It was special, but it was too short. That's the one regret I have about the merger.
- The merger was three months of intense, tense activity. The benefits that I saw firstly, we had a common language. It allowed us as well, to really focus on a playbook. And then when the structure was set, it was about selection. But three years in, I'm extremely proud of the results.
- Michael: One of the things we needed to do when we were merging was to not accept the fact that titles over in Petracan would necessarily represent the same level of work complexity. What we'd like you to do now, if you would please, for about five minutes, just huddle at your tables and talk about how the principles may have been helpful.
- I'm curious as to what your staff at the level two would be saying in terms of what they've noticed as the change or the benefits. Having that clarity very quickly was important for them. Starting the ground running with clarity was important.
- How did you measure Operational Excellence, culture and synergy so that you knew that things were progressing the way that you wanted them to? The truest measure was our cost decreased significantly. The biggest piece was just how the groups came together.

- The hit rate of system implementation without requisite structures of project design and appropriate planning is no better than the one in three that any other organization change. No, absolutely no contracting out of a delivery project to any vendor, including me.
- The issue is the staffing capability of adequately qualified stratum four management, high level technologists. To SuckAnd or to delegate becomes the constraint on how fast the company can grow. Fundamental talent development problems are as integral to the issues of it as knowledge itself.

- The seminar is a variation of the On Leadership Seminar that Harry Levinson has been teaching for 45 years. The slides are used in training physician executives at our Harvard Medical School seminar. I find this is a very powerful way of engaging any group in any organizational setting.

- We've got a big business transformation ro engagement going, but we have an enormous bureaucracy that we're fighting. Our objective in the army is to apply proven business principles to these business challenges. Everybody needs a burning platform. And that's my challenge, to really change the way we're doing business.
- Transforming requires a value proposition, and our value proposition is to increase and maximize our combat readiness. As we transform, our warfighting units were transforming to smaller, more mobile, more adaptive units business. How do we prepare our people to be able to support that expanded role?

- I'm passionate about pushing as big a rock as I can in the church world. It has really changed my life. I've got a second track going now where I train other pastors in how to get the right management structures in their church. This has done great things for me, and I think it will help you too.
- Pastor: I want to share with you how Ro came to our church. The other track of interest in my life was leadership, leadership management. He asks why there are different levels of leadership capability in the population. We will be taking an offering after his presentation.
- Our church is generally described as an outreach oriented evangelical church. We think of the church in an entrepreneurial way. Our core business model is to attract people into the faith. Mission trumps tradition in this kind of church.
- The entrepreneurial church says the mission is worth it. We're helping them get onto what God's really designed them to do. It's brought peace to our staff. And it brings a sanity. It brings functional alignment. If you're not structured right, you're setting yourself up for civil war.
- When I came to our church, our board was primarily guys that were twos and threes. What has helped us do is to train potential board members. We try to screen board members so that we have fours and up, which means they can communicate about strategy.
- Faith communities are very vital to a lot of people's lives. I think it's very vital at the higher level of what's happening in world events. Those of you who feel any sense of a draw into helping maximize the spiritual world, the world of faith or spiritual leadership, I really want to encourage you.

- I come from a counseling and psychotherapy background and practice. I've had the opportunity to work with a lot of people who thought they were having emotional problems due to the lack of requisiteness in their their companies. What we tend to do in this almost magical way is we recreate in our adulthood situations that are repetitions of our childhood.

- When we talk about assessment, we are talking about one part of the system which about people. There are many reasons why clients or potential clients ask us for run assessments. We use the CPA approach. Appreciation process has to do to identify value and to create value.
- LPA is based on seven subtests like an assessment center tim roles, conflict handling, work style and so on. Why LPA? Reliability, convenience, flexibility. We can customize output, make role profiles and soon. That's how we transform human resources in bars and numbers.

- I wanted to invite Robbie Stamp, who's been with us these last few days, to come and say a few words to you because he's coming to sniff us out and get to know us. Jen, just a thank you to everybody, I've had a fantastic time, I think it's been terrific.
- I'm the chairman of BIOS International. BIOS was the institute that Elliot founded in 1967 at Brunell University in Uxbridge. Now has a network of BIOS companies around the world. A lot of it is really helping clients to live with uncertainty.
- The world is deeply interconnected. If something happens, the markets might be responding before the chief executive has actually had the phone call to tell him what's going on. It is a blistering pace of complexity and change. Having the opportunity to help leaders at all levels in organizations to deal with that complexity and uncertainty is a great privilege.
- One of the people we've been most in awe of is Ken Craddock. His contribution to what we've all done has been absolutely astonishing. Ken, thank you very much indeed.

- Start with Judy Holbrook from BiOps. Glenn Meltredder, who's with People Fit. Jerry Cranes is with the Leventon Institute. So you really don't need to hear from me. Thanks you.
- I'd like to see more contact between the sales manager and the clients. We get a lot of complaints about late deliveries. It makes the sales reps look bad and it angers the customers. We need to train our representatives on how to offer exceptional customer service.
- We need to separate the salespeople from the account managers. Asking someone to do both adds stress when they are working on a side they're not comfortable with. People will be able to spend 100% of their time doing what they're good at and enjoy. Here are the transcript.
- We have kind of a set up way to transcribe these that's about 600 words per page. We review it by two compare results, and whether the results agree or not. There's a number of validation check. We evaluate them, and then we link it back to benchmark.
- A project that was inside an organization, was sponsored by succession planning. It was a major telecommunications company. They screened 1200 director and executive director level people. Three out of 103% out of 150 people were able to move into leadership. The data is holding up very well.
- If someone has been underemployed for a long enough period of time, they start to become demoralized. How quickly does an organization have to move to move them through regression to get them to the higher job before they get frustrated and leave?

- Judy Hobrera shows you both an organizational tool and also, as Richard said, the individual assessment tools. The whole technology movement within BIOS is something that's quite new, I think, within BIOS within the last five years.
- The compensation module is a part of the decision making process. The action plan should be formulated jointly by the manager and the manager once removed. Who develops the action plan? Is this whole process coordinated by a consultant?
- The other question is when you're doing. sort of assessments, typically the assessment of capabilities is done by the mor. This is the third time we'll have taken the carry operations through it and. There'S a better understanding. And our objective is always to train the organization up.
- Acquire was the original creators of the automatic chart. We now have around 1900 customers and we have customers using our product in 123 countries. We are privately held, we are a woman owned business. We currently have 6 million employees under management.
- Sustainability is what's required to get any company to purchase technology. What is it going to do long term for the organization? Almost everything that I will show you is replicated from a customer site. We're driving most of this from data. We are trying to automate this as much as possible.
- There are three ways of approaching assessment of capability, each from a very clearly structured and rigorous and validated basis. Have you ever validated because you devised a method doing it? Mr. Kasaris, maybe it's wrong for MROs to use this at all themselves.

- Herb Coplewitz is one of four trainers in the global organization design professional development program. The program is really an introduction to design and management of organizations. There will be ongoing telephone support in telephone seminars and face to face training.

- I'm going to talk about a project that Steve Clement and I did 92, 92, having to do with the reorganization of the Army Medical Department. We reorganized it as an example and wrapped underneath it all the levels of support services. There's much to say about how a model like that, I think, can work.
- The military healthcare system is different than the VA system. There is direct care, that is, those patients we see directly within our hospitals and clinics. Also had responsibility in another role for the TRICARE contract. Which was 1.2 million beneficiaries we spent.

- Session is about Ro in HR and we minute kate Erickson and I first started talking about this earlier this year. Until we've got a way of making the HR community winners in an Ro implementation, we haven't got the answer. And so that's what I'm hoping we'll do this morning.
- There's been an incredible shift in the world in terms of the valuation of assets over the last 20 years. In the range of 53 or 54% of the Fortune 500 companies, their actual value is more in intangible assets than tangible assets. We try to get as senior a person in HR as we can to actively partner with us.
- There's kind of generalist HR work that goes on. And then there's the classic specialist work. Do you have the right balance? Because very often what will happen is the specialist work can sometimes take over.
- Core is more than willing and happy to have you use this. The idea is for HR to be our partner. If any of this is helpful at all to you, you may use it. Depends upon what we're held accountable to.
- Clement: HR hasn't done a good enough job of communicating the value of human resources. He says we need more people in HR who are more oriented to being an architect of the work system. Clement: What's pushing that shift is the CEOs.
- HR tends to be a waterhead, which suggests there's not much surprise in that. What Ro has helped HR with is provide evidence based discourse, and those go to a mutual trust. Use that to design an integrated set of systems in the organization with those underpinning principles.

- When I assign you to do something, if I'm not clear about that, you may leave with an expectation. One of the simplest acronyms qqtr quality targeted completion time and the assigned resources. The important thing is to think about this each time you assign a task.
- The first thing we want to do from a nuclear point of view is what are the safety considerations then? The quantity, quality, target time with what resources? By doing it this way you're going to reduce the frustration the manager and the worker has. Clarity and trust. To keep reinforcing in task assignment.
- Key accountability starts with the essence of task assignment. Accountabilities of the role help you tie the work to the corporate goals. It sets up the process for establishing employee feedback. Once a manager learns how to do this, the rest of it is not easy.
- Grammarically across Language what Terry and I find is very, very useful is making sure that the manager understands what is the verb related to that task. The other thing is that the accountabilities are constructed in complete sentences.
- The next slide talked about how managers decide priorities. If managers cannot get clear around the task, they will not necessarily be able to get clear about the priorities. Helping managers get clear and helping them understand prioritization is very critical in the system.
- So we often talk about what is managerial work. And we talk about this as the accountability of a manager. They're agreeing to make sure that they're clear about their own work. They will set up a process for employee feedback and task reporting procedures.

- The owners of a company have values. And what the owners have to do is translate the value into behavioral policy. We're always confusing the values and the policy issue. And I think it's really critical.