Performance Culture
Leadership Model
Carsten Hentrich
Performance Culture
Performance Culture Implies a Paradigm Shift
Mechanical
Organisation
- Information Age
- Organic World
- Trust and Flexibility
Paradigm
Change
- Industrialisation
- Mechanical World
- Control and Hierarchy
Knowledge
Organisation
- Investment in Machines
- People as Objects
- Investment in People
- People as Individuals
- Linear Paradigm
(static)
- Non-linear Paradigm
(dynamic)
Performance Culture
RESULT: Profit – CG ECM Solutions FY08
DCM increase of 1700% compared to FY07
DCM target achievement of 150%
600
500
Profit [k€]
400
300
Change in Leadership Style
(Transition Phase)
200
100
0
Apr 07
May 07
Jun 07
Jul 07
Aug 07
Sep 07
-100
Period
Plan
Performance Culture
Actual
Trend
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
RESULT: Employee Development – CG ECM Solutions FY08
30% Growth
50
Change in
Leadership Style
(Transition Phase)
45
40
No. of employees
35
30
25
20
15
10
5
0
Apr 07 May 07 Jun 07
Jul 07
Aug 07 Sep 07
Oct 07 Nov 07 Dec 07
Period
Performance Culture
Jan 08
Feb 08 Mar 08
RESULT: Chargeability – CG ECM Solutions FY08
100
90
80
70
60
%
Change in Leadership
Style
(Transition Phase)
50
40
30
20
10
0
Apr 07
May 07
Jun 07
Actual Billability
Performance Culture
Jul 07
Aug 07
Plan Billability
Sep 07
Oct 07
Period
Actual Utilization
Nov 07
Dec 07
Jan 08
Plan Utilization
Feb 08
Mar 08
RESULT: Profit – CG ECM Solutions FY09
DCM increase of 250% compared to FY08
DCM target achievement of 240%
1600
1400
1200
Profit [k€]
1000
800
600
400
200
0
Apr 08
May 08
Plan
Performance Culture
Jun 08
Actual
Jul 08
Trend
Aug 08
Sep 08
Oct 08
Period
Nov 08
Dec 08
Jan 09
Feb 09
Mar 09
RESULT: Employee Development – CG ECM Solutions FY09
18% Growth
70
60
No. of employees
50
40
30
20
10
0
Apr 08 May 08 Jun 08
Jul 08
Aug 08 Sep 08
Oct 08 Nov 08 Dec 08
Period
Performance Culture
Jan 09
Feb 09 Mar 09
RESULT: Chargeability – CG ECM Solutions FY09
100
90
80
70
60
%
50
40
30
20
10
0
Apr 08
May 08
Jun 08
Actual Billability
Performance Culture
Jul 08
Aug 08
Plan Billability
Sep 08
Oct 08
Period
Actual Utilization
Nov 08
Dec 08
Jan 09
Plan Utilization
Feb 09
Mar 09
RESULT: Profit – CG IT Architecture FY10
Clearly perceivable performance increase after only 4 months
295% target achievement in December
Over-performance creates Investment Opportunities
Already
200
150
Profit [k€]
100
50
Change in Leadership Style
(Transition Phase)
0
Apr 09
May 09
Jun 09
Jul 09
Aug 09
Sep 09
Oct 09
-50
-100
-150
Period
Performance Culture
Nov 09
Dec 09
Jan 10
Feb 10
Mar 10
RESULT: Employee Development– CG IT Architecture FY10
Performance increase without any personnel growth!
40
35
No. of employees
30
25
20
15
10
5
0
Apr 09
May 09
Jun 09
Jul 09
Aug 09
Sep 09
Oct 09
Period
Performance Culture
Nov 09
Dec 09
Jan 10
Feb 10
Mar 10
RESULT: Chargeability – CG IT Architecture FY10
100
90
80
70
%
60
50
Change in Leadership Style
(Transition Phase)
40
30
20
10
0
Apr 09
May 09
Jun 09
Jul 09
Aug 09
Sep 09
Oct 09
Period
Plan
Performance Culture
Actual
Nov 09
Dec 09
Jan 10
Feb 10
Mar 10
What to do?
• 1. Make sure that managers follow a higher purpose
• 2. Reduce fear and create trust
• 3. Distribute responsibility on many shoulders
• 4. Extend employees’ creative influence
• 5. Establish internal markets for ideas, talents and resources
• 6. Create passion on all hierarchical levels
• 7. Consider leadership network effects
Performance Culture
How to do it?
Holistic
Person
Heart,
Body,
Mind,
Spirit
Collaborative
Leadership
(CRAIS)
Trust,
Encouragement,
Talent development,
Personal value,
Responsibility,
Self-determination,
Innovation
Performance Culture
Organisational
Framework
Vision,
Mission,
Values,
Guiding Principles for Leadership,
Leadership quality,
Strategy
How to do it?
Holistic
Person
Heart,
Body,
Mind,
Spirit
Collaborative
Leadership
(CRAIS)
Trust,
Encouragement,
Talent development,
Personal value,
Responsibility,
Self-determination,
Innovation
Performance Culture
Organisational
Framework
Vision,
Mission,
Values,
Guiding Principles for Leadership,
Leadership quality,
Strategy
Holistic Person – The Foundation of All Motivation
Human Needs
To
Love
To Leave a
Legacy
To
Learn
(Heart)
(Spirit)
(Mind)
To Live
(Body)
Performance Culture
Holistic Person– Finding your Inner Voice
Passion
and
Relationships
(Heart)
Where is my fire
(passion)?
What does my conscience
say (Purpose)?
Performance Culture
Personal
Contribution
(Purpose)
(Spirit)
Talent
Development
and
Education
(Intellect)
What are
my talents (Focus)?
Align
Compensation to
Contribution
(Body)
What are my goals and
am I committed? (Discipline)?
Moral Authority
… the battle against the „5 emotional cancers“ means NOT to view
people as objects but rather as valuable human beings:
• criticising
… for a sense of personal worth
• comparing
… the personal worth
• competing
… for a sense of personal worth
• complaining
… about personal worth
• contending
… for personal worth
Inner
Voice
Performance Culture
Leaders that Treat People as Objects
(often as a reaction to danger and crisis)
Control
(Heart)
Boss
(Spirit)
Rules
(Intellect)
Do only what
you are told
No trust;
carrot and stick
Efficiency
(Body)
Knows best and
decides all important
decisions
Performance Culture
Implements systems
for efficient work
What Happens if Leaders Treats People as Objects?
(the result is decrease of performance)
Demotivation
(Heart)
Low Trust
(Spirit)
apathy, rage,
inertia, fear
trench warfare,
victim mentality
Performance Culture
No
Collective
Vision
(Intellect)
political games,
hidden agendas,
ambiguity
Lack of
Direction
(Body)
hypocrisy, misalignment,
rivalry
Leaders that Treat People as Valuable Human Beings
Coach
(Heart)
Role
Model
(Spirit)
Coordinator
(Body)
Performance Culture
Visionary
(Intellect)
A New Philosophy of Leadership
Role Model
Visionary
Coordinator
Coach
Integrity
Performance Culture
• Inspire trust, without expecting it
• Create order, without demanding it
• Cultivate vision and competence, without declaring it
• Unleash potential without external motivation
Moral Authority
Inner Voice
How to do it?
Holistic
Person
Heart,
Body,
Mind,
Spirit
Collaborative
Leadership
(CRAIS)
Trust,
Encouragement,
Talent development,
Personal worth,
Responsibility,
Self-determination,
Innovation
Performance Culture
Organisational
Framework
Vision,
Mission,
Values,
Guiding Principles for Leadership,
Leadership quality,
Strategy
Surfing the Edge of Chaos
The market changes faster and faster
Unforeseen influences require quick adaptation
Quick und flexible reaction to influences becomes progressively important
Re-invention: One must always be a step ahead
Strategies must always be adaptable
Advancement of knowledge becomes progressively important
Performance Culture
Our Code
• We are always ready to adapt (Agility)
• We learn to „think and act 360°“ (finding your Inner Voice)
• We take responsibility for one another
• We build knowledge networks (Synergy)
• We are always ready to learn
• We build on stable principles
Each individual contributes with special talents.
The business is like a rafting boat on white-water.
Performance Culture
Our Principles
• People are always first
• Delegate and accept responsibility
• Demand and encourage self-determination
• Leverage and develop talents
• Develop relationships (customers, partners,
internally)
• Set and fulfill the right qualitative goals
Performance Culture
Strengthen
Trust
Our Qualitative Goals
Synergy
Market Oriented
Innovation
Knowledge Culture
Performance Culture
•Synthesise existing knowledge to new solutions
•Build knowledge networks
•Internationalisation & globalisation – the world is flat!
•Optimise performance through structural improvement
•Actively market our solutions
•Regular exchange on solutions (Sales/Delivery)
•Develop Sales/Delivery networks
•Incorporate customers demands systematically
•Development of innovative ideas/solutions
•Customer requirements orientation
•Create room for creativity and individual responsibility
•View innovation as competition
•Individual responsibility and self-determination
•Leadership as a matter of choice not formal position
•Sensemaking through collective vision und business ethics
•Actively change behavioural patterns (think and act 360°)
What Do These Qualitative Goals Mean?
Synergy
• New philosophy of leadership
• Knowledge Sharing & Networking
Market
Oriented
• Exceed customer expectations
• Solutions oriented sales
Innovation
• Self-initiative
• creativity
Knowledge
Culture
• Activation of intrinsic motivation
• Delegation of responsibility and power
Performance Culture
Our Strategy
Competitive Cost
Structure
We realise it by…
Improvement of
Solution Sales
We realise it by…
Continuous
Cultural
Transformation
We realise it by…
Performance Culture
•
•
•
•
Balancing the proportion of Professionals/Associates with Leaders/Seniors
Placing smaller teams in projects
Leaders/Seniors act as coaches for Associates/Professionals
Use innovative delivery models that leverage global delivery structures
• Establish a knowledge culture und knowledge organisation
• Develop mutual learning, knowledge sharing, and collaboration
• Systematically drive idea and solution development
• Live our values
• Establish a culture based on our values by the guiding principle of
leadership among all hierarchical levels
• Understand leadership as the matter of „choice“ and not of position
Quantitative Results
Our Code
Trust
Utilisation
Our
Principles
Responsibility
Our
Qualitative
Goals
Our
Strategy
Performance Culture
Knowledge culture
Innovation
Synergy
Market Oriented
Adaptive Organisation
Qualitative Results
Profit
Growth
Investment
Capital
How to do it?
Holistic
Person
Heart,
Body,
Intellect,
Spirit
Collaborative
Leadership
(CRAIS)
Trust,
Encouragement,
Talent development,
Personal value,
Responsibility,
Self-determination,
Innovation
Performance Culture
Organisational
Framework
Vision,
Mission,
Values,
Guiding Principles for Leadership,
Leadership quality,
Strategy
Collaborative Leadership - CRAIS Communities Model
Customers &
Partners
Sales &
Resources &
Marketing
Controlling
Collaboration
Innovation &
Strategy
Performance Culture
Assets &
Solutions
Replication Mechanism of the CRAIS Communities for Building
Effective Tribes
Sales &
Marketing
Customers &
Partners
Resources &
Controlling
Tribe 1
Innovation &
Strategy
Sales &
Marketing
Customers &
Partners
Resources &
Controlling
Tribe 2
Innovation &
Strategy
Performance Culture
Assets &
Solutions
Assets &
Solutions
Sales &
Marketing
Customers &
Partners
Resources &
Controlling
Tribe 3
Innovation &
Strategy
Assets &
Solutions
Coaching as Knowledge Catalyst – Building Relationships
Leaders Coach Professionals
Leaders
C
Seniors Coach Associates
Leaders
Senior
Professionals
Senior
Professionals
Professionals
Professionals
Associate
Professionals
Associate
Professionals
Performance Culture
C
Cultural Transformation or How to Build Effective Tribes
Life is great!
We are great!
Let people work
together on complex
projects
I am great!
Build triads
My life sucks!
Show people that
power comes from
networks
Life sucks!
Show each
individual that
his/her contribution
is important
Performance Culture
Performance
What to do?
Collective Focus
Topology
Individual Focus
Guideline
Control vs Creativity – How Does Innovation Happen?
Creativity
Control
Performance Culture