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“The Senior Leadership Challenge” David Spong

“The Senior Leadership Challenge” David Spong. Management Set of processes used to keep people and technology running smoothly. Leadership Set of processes that creates/adapts organizations to significantly change th em. The Leader’s Role. Captain The “Leader”. Uncharted Waters.

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“The Senior Leadership Challenge” David Spong

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  1. “The Senior Leadership Challenge” David Spong

  2. Management Set of processes used to keep people and technology running smoothly Leadership Set of processes that creates/adapts organizations to significantly change them The Leader’s Role Captain The “Leader” Uncharted Waters Steering Communications Entertainment Navigation Catering Engines

  3. Leadership Impacts the Bottom Line * 5M 20 19 Turnover Percent Net Profit 4M 18 2.4 M 4.5 M 3M 16 2M 14 1M 14 0 12 -1M 9 10 -1.7 M 8 100 90 Intention to stay with Company 82 Customer Satisfaction 79% 80 80 70 60 60 50% 50 50 40 40 21 20 20 19% 20 0 10 Leadership Effectiveness * Extraordinary Leader, Zenger & Folkman (2002)

  4. Join if espouse shared values Leave if cannot accept shared values The Leader establishes the culture to be shared by his/her behavior Culture – A Set of Shared Vision/Values/Beliefs/Goals Shared Value Filter Integrity Learning The Organization Corporate Citizen Quality Stakeholder Requirements & Expectations Diversity Teamwork INVOLVE AND COMMUNICATE Safety Innovation Customer Satisfaction Sharing & Supportive Agility

  5. Business Results Vision achievement requires change and investment How do you achieve a vision? W ha t H o w $ Strategies/ High Level Implementation Plans Detailed Implementation Plans Strategic Intent Execution Vision Thinking P l a n n i n g Doing

  6. The “Challenge” at Aerospace Support Aerospace Support 2003 Recipient Manufacturing Service Complex: Bus./Sites/Functions Primarily one program Primarily one Dispersed – 130+ locations Stable Chaos Yes Not recognized None Some Many Few

  7. State of the Inherited Leadership Team • Prior Leader Autocratic • Un-empowered • Dispirited/untrusting • Mostly Non-believers • Did not understand my Leadership style

  8. What Spong thinks he did! • Personal Commitment • Knowledgeable • Staffed BE Office with: • Believers • Experts • Consultants • Lot’s of personal time • Dealt with non-believers Consistent & Persistent with Passion

  9. PLUS Launched Continuous Improvement! All the Usual Stuff! • Met with each member of the Leadership Team • Met with the Customers • Held meetings with the People • Tried to understand the Business

  10. Initial focus • Created a Leadership System and Operating Principles • Identified and Deployed Overall Initiatives • Employee Involvement • Process Based Management • Management by Information • Assigned Executive Championsfor Initiatives & Criteria • Adopted Baldrige Criteria as the Business Model • Assessed the organization by sites and overall • Customer Satisfaction • Enterprise Planning Process Established a culture of excellence and continuous improvement

  11. Set and Communicate Direction Continuously Improve Be Role Models Vision & Values Integrity Learning Organizational & Employee Learning Stakeholder Requirements & Expectations Quality Corporate Citizen Organize, Plan, and Align • Customer • Work force • Suppliers • Community • Shareholders INVOLVE AND COMMUNICATE Diversity Teamwork Sharing & Supportive Motivate Employees Empower Teams Innovation Customer Satisfaction Agility Reward & Recognize Perform to Plan Analyze & Compare Our Leadership System GP30117.ppt

  12. Businesses Functions Sites Business Excellence Office AS Business Excellence Debbie Collard Initiatives Deployment Business Excellence Organization Reporting to the Office of the President

  13. Business/Site/Functions RAA CLEARLY DEFINED & INTEGRATED ROLES FACILITATE EFFECTIVE OPERATIONS

  14. Spong SLT Bus & Site LT’s All the way to the people who do real work! The Leadership Shadow

  15. Executive Champion Requirements • Learn & understand the criteria for your assigned element • Identify needed improvements • Work with Business Excellence Office to drive improvements • Communicate throughout the organization • Champion world-class approaches & lead by example • Make a personal commitment to the Leadership Team for the improvement of your element

  16. Focused Offsites • Not a Business Performance Review • Business Model • Internal Assessment • Gaps • Process to close gaps • Progress

  17. Focused Survey • Aerospace Support • 58 Questions • 3Narrative questions • + • 28 Focused questions • Results to the Business, Program, • Function, Site, to the manager level • with 5 or more D/R • Resultsactionable • Summary for 17 key issues • Exec summaries for each Bus, • Site, & Function • IDS • 58 Questions • 1 Narrative question • Results to only the Business, • Function, Department? Level • Resultsnot actionable

  18. Leadership Drives the Employee Satisfaction Index 90 Great Leadership Results in Top Quartile Satisfaction 80 78 73 70 71 66 Good Leadership Results in Okay Satisfaction 62 60 ESI Percent Positive 60 58 52 50 47 Poor Leadership Results in Low Satisfaction 40 39 30 1 2 3 4 5 6 7 8 9 10 Leadership Effectiveness Deciles

  19. Expectations Achieved Leadership in Action Leader’s expectations supported Case I Leader supports thru “visible” actions Word of mouth • Leader • communicates • written/spoken • expectations • Vision • Values • Strategy • Mission • Initiatives Case II Leader does not “visibly” support Grapevine in action Leader’s expectations not supported Poor Results CC30181004

  20. Leadership Communication The first time you say something, it’s heard The second time it’s recognized And the third time, it’s learned William H Rastetter, CEO, Idec Pharmaceuticals Corp. Relentless Repetition!

  21. Leadership Required “Projects are most successful when top management takes ownership” – Deming How Good Others Think You Are 3 2 1 How Good You Think You Are

  22. Boeing Aerospace Support’sRevenue Performance Started Baldrige 2000 2001 2002 2003 PLAN ACTUALS AVG GROWTH

  23. Boeing Aerospace Support’sEarnings Performance Started Baldrige 2000 2001 2002 2003 PLAN ACTUALS

  24. Boeing Aerospace Support’s employees are more motivated Started Baldrige 66 ESI 62 EI 50% 58 54 50 2003 2001 2002 1999 2000

  25. Recognition Ethics Operating Principles Diversity “Open Door” Empowerment Employee Involvement Vision & Values Summary

  26. Motivated Employees “Smells Good” Business Results “Taste Great” Recognition Ethics Diversity Operating Principles Vision & Values Employee Involvement Empowerment Focused Offsites Exec Champions Focused Survey Don’t study it long – Don’t change it! – Just Do it! Summary CC40170002.ppt

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