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Regarding the potential for failure types 2 and 3, the CEO was mostly focused on economic alignment by necessity, as was the CFO. However, the COO, VP of operation, and VP of HR were focused on both economic alignment and cultural attunement, a refreshing perspective.
The board's main concern was for a group of customers in other states, not for the economics of the situation. This was an unusual reversal. Man-
Assessing the Enterprise as a Living System
agement had to constantly show the board that the customers in the other states would have the option to be better taken care of by a larger financial institution—one with more resources and better rates and convenience than ECFCU could provide, given their current financial challenges.
The employees in those states would be better off, too, a key variable for both management and the board. They would probably get higher salaries and benefits if their branches were sold to a larger financial institution.
Activity #2. Thus, constant informal business excellence assessments and reviews of the status of the Enterprise-Wide Change process, along with stay-in by the board, was crucial.
Activity #3. The CFO continually developed and updated simple, one-page economic documents. He used them to remind the board of the enormity of the situation. He also kept data in front of management and the board regarding the customers being poorly served in the branches in the other states where ECFCU's market share was minuscule. These documents proved to be extremely valuable in every board EWC meeting, as well as in all the management and PMO sessions.
To be continued . . . M
Chapter Six Recap
1. Those involved in leading an Enterprise-Wide Change effort must share the same mental map—and only one mental map. To make this happen, select only one consulting firm and adopt or revise their mental model.
2. The SWOT technique is a good diagnostic tool, but it is not the place to start a systems approach to Enterprise-Wide Change.
3. A comprehensive systems-based enterprise as a system mental model can be used to best deal with the complexity of strategic change.
4. The eight modules of an Enterprise-Wide Assessment can be used to clarify and simplify one's focus.
5. The eight modules are
• Building a Culture of Performance Excellence
• Reinventing Strategic Planning
• Leading Enterprise-Wide Change
• Creating the People Edge
• Achieving Leadership Excellence
• Becoming Customer-Focused
• Aligning Delivery
• Creating Customer Value
6. Whatever map you develop of your organization as a system, it is best served by using the Simplicity of Systems Thinking model as the core technology and ABCDE framework.
7. The simplified Enterprise-Wide Assessment template at the end of this chapter is a quick tool for a more in-depth assessment of an organization's strengths and weaknesses.
8. You can download the Baldrige Criteria for Performance Excellence directly from the National Institute of Standards and Technology at www.quality. nist.gov.
9. The six activities of an Enterprise-Wide Assessment process are
Activity #1: Hold a Change Leadership Team meeting to build a mental map of the organization.
Activity #2: Build a visual representation of this map of your organization as a system.
Activity #3: Conduct a parallel involvement process with the collective management team to share, critique, and build consensus on it.
Activity #4: Build a questionnaire to reflect the details of the system's framework.
Activity #5: Conduct an Enterprise-Wide Assessment based on your visual model.
Activity #6: Use the assessment results as you begin the formal "simplicity of execution" in the next chapter.
Enterprises are Living Systems—the natural way the world works. We need to learn the synergy of systems solutions versus the failure of fragmented functions. Although the dominant paradigm in our lives is analytic thinking, the natural order of life on Earth and in organizations is a living systems one.
1. Please list each module’s strengths and weaknesses. Name of Organization
2. Then score each module. (Put an X Low 1 to High 6.) 3. Connect the scores with a straight line. Date
1. Building a Culture of Performance Excellence 2. Reinventing Strategic Planning 3. Leading Enterprise-Wide Change 4. Creating the People Plan 5. Achieving Leadership Excellence 6. Becoming Customer- Focused 7. Aligning Delivery
High High High High High High High
6 • 6 • 6 • 6 • 6 • 6 • 6 •
• • • • • • •
5 • 5 • 5 • 5 • 5 • 5 • 5 •
• • • • • • •
4 • 4 • 4 • 4 • 4 • 4 • 4 •
3 • 3 • 3 • 3 • 3 • 3 • 3 •
• • • • • • •
2 • 2 • 2 • 2 • 2 • 2 • 2 •
• • • • • • •
1 • 1 • 1 • 1 • 1 • 1 • 1 •