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Performance Culture Leadership Model. Carsten Hentrich. Performance Culture Implies a Paradigm Shift. Information Age Organic World Trust and Flexibility. Industrialisation Mechanical World Control and Hierarchy. Paradigm Change. Mechanical Organisation. Knowledge Organisation.
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Performance CultureLeadership Model Carsten Hentrich
Performance Culture Implies a Paradigm Shift • Information Age • Organic World • Trust and Flexibility • Industrialisation • Mechanical World • Control and Hierarchy ParadigmChange Mechanical Organisation Knowledge Organisation • Investment in Machines • People as Objects • Linear Paradigm (static) • Investment in People • People as Individuals • Non-linear Paradigm (dynamic)
RESULT: Profit – CG ECM Solutions FY08 DCM increase of 1700% compared to FY07 DCM target achievement of 150%
RESULT: Employee Development – CG ECM Solutions FY08 30% Growth
RESULT: Profit – CG ECM Solutions FY09 DCM increase of 250% compared to FY08 DCM target achievement of 240%
RESULT: Employee Development – CG ECM Solutions FY09 18% Growth
RESULT: Profit – CG IT Architecture FY10 Clearly perceivable performance increase after only 4 months Already 295% target achievement in December Over-performance creates Investment Opportunities
RESULT: Employee Development– CG IT Architecture FY10 Performance increase without any personnel growth!
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
How to do it? Holistic Person Heart, Body, Mind, Spirit Collaborative Leadership (CRAIS) Trust, Encouragement, Talent development, Personal value, Responsibility, Self-determination, Innovation 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 Organisational Framework Vision, Mission, Values, Guiding Principles for Leadership, Leadership quality, Strategy
Holistic Person – The Foundation of All Motivation Human Needs To Leave a Legacy (Spirit) To Love (Heart) To Learn (Mind) To Live (Body)
Holistic Person– Finding your Inner Voice PersonalContribution (Purpose) (Spirit) Talent Developmentand Education (Intellect) Passion and Relationships (Heart) Where is my fire(passion)? What are my talents (Focus)? Align Compensation to Contribution (Body) What does my conscience say (Purpose)? 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
Leaders that Treat People as Objects(often as a reaction to danger and crisis) Boss (Spirit) Rules (Intellect) Control (Heart) No trust; carrot and stick Do only what you are told Efficiency (Body) Knows best and decides all important decisions Implements systemsfor efficient work
What Happens if Leaders Treats People as Objects?(the result is decrease of performance) No Collective Vision (Intellect) Low Trust (Spirit) Demotivation (Heart) apathy, rage, inertia, fear political games, hidden agendas, ambiguity Lack of Direction (Body) trench warfare, victim mentality hypocrisy, misalignment, rivalry
Leaders that Treat People as Valuable Human Beings Integrity Role Model (Spirit) Trust Visionary (Intellect) Trust Coach (Heart) Trust Coordinator (Body)
A New Philosophy of Leadership Integrity Moral Authority Inner Voice
How to do it? Holistic Person Heart, Body, Mind, Spirit Organisational Framework Vision, Mission, Values, Guiding Principles for Leadership, Leadership quality, Strategy Collaborative Leadership (CRAIS) Trust, Encouragement, Talent development, Personal worth, Responsibility, Self-determination, Innovation
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.
Our Principles • People arealwaysfirst • Delegateandacceptresponsibility • Demand andencourageself-determination • Leverageanddeveloptalents • Developrelationships (customers, partners, internally) • Set andfulfilltherightqualitativegoals Strengthen Trust
Our Qualitative Goals Synergy • Synthesise existing knowledge to new solutions • Build knowledge networks • Internationalisation & globalisation – the world is flat! • Optimise performance through structural improvement Market Oriented • Activelymarketoursolutions • Regular exchange on solutions (Sales/Delivery) • Develop Sales/Deliverynetworks • Incorporatecustomersdemandssystematically Innovation • Development of innovative ideas/solutions • Customer requirements orientation • Create room for creativity and individual responsibility • View innovation as competition Knowledge Culture • 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°)
Qualitative Results Quantitative Results Adaptive Organisation Trust Utilisation Our Code Responsibility Our Principles Profit Knowledge culture Our Qualitative Goals Growth Innovation Synergy Our Strategy Investment Capital Market Oriented
How to do it? Holistic Person Heart, Body, Intellect, Spirit Collaborative Leadership (CRAIS) Trust, Encouragement, Talent development, Personal value, Responsibility, Self-determination, Innovation Organisational Framework Vision, Mission, Values, Guiding Principles for Leadership, Leadership quality, Strategy
Customers &Partners Collaboration Sales & Marketing Resources & Controlling Innovation & Strategy Assets& Solutions Collaborative Leadership - CRAIS Communities Model
Customers &Partners Customers &Partners Customers &Partners Replication Mechanism of the CRAIS Communities for Building Effective Tribes Tribe 1 Customers &Partners Resources &Controlling Sales &Marketing Assets & Solutions Innovation &Strategy Tribe 3 Tribe 2 Customers &Partners Customers &Partners Resources &Controlling Sales &Marketing Resources &Controlling Sales &Marketing Assets & Solutions Innovation &Strategy Assets & Solutions Innovation &Strategy
Coaching as Knowledge Catalyst – Building Relationships Leaders Coach Professionals Seniors Coach Associates
Cultural Transformation or How to Build Effective Tribes Guideline What to do? Topology Performance Collective Focus Life is great! Let people work together on complex projects We are great! I am great! Build triads Individual Focus Show people that power comes from networks My life sucks! Show each individual that his/her contribution is important Life sucks!
Control vs Creativity – How Does Innovation Happen? Creativity Control