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Organization:OverviewofCoreFrameworksLocalTrainingModuleForFirst-yearAssociates

AssociateHandbookOrganization:LocalTrainingMo1FOREWORDANDOBJECTIVEThisOrganizationPractice(OP)documentprovidesanoverviewforuseinlocaltrainingsessionsforfirst-yearassociates.Itispartofa“seriesonfunctionalareas.”TheobjectiveoftheseriesistointroduceMcKinseypractitionerstothebasicsineachofourfunctionalareasofexpertise.AllthedocumentsintheseriesarecomprehensiveinnatureanddescribethecurrenttoolsandframeworksinthatfunctionalareaAttheendofthisdocument,youcanfindasectiondescribingaselectionofthecoredocumentsandhandbooksthatcangiveyoufurtherdetailsonsomeoftheframeworksdescriedhere.AllofthesedocumentsarenowonPDNet;andhardcopiesofthemcanberequestedfromPDNetExpress,whichwilldeliverthemin24hoursThecontentsofthisdocumenthavebeenadaptedforlocaltrainingsessionsthrough“SwitchingTracks”—OP’sfirst-yearmodulevideotape,whichcommunicatesthebasicconceptsinaconciseandvisualwayusinganactualclient—TheScandinavianRailroadCompany.Itis40minuteslongandshouldbepresentedin3shortsegments.Betweenthesesegments,thefacultymemberrunstheattachedexercises,addsanycommentaryhe/sheconsidersnecessarytoclarifytheconcepts,andprovidespersonalexperienceonselectedtopics.Acopyofthevideotapeandmoderator’sguidewithexercisescanberequestedfromtheFirmFOREWORDANDOBJECTIVEThis2Thisdocumentseekstoanswer4questionsSECTION1Whydoassociatesneedtoconsiderorganizationalissuesineveryengagement?SECTION2Whatframeworksdoweusetohelpourclientsimproveorganizationalperformance?SECTION3Whatroledoesanassociateplayinorganizationwork?SECTION4Wherecananassociatefindoutmore?Thisdocumentseekstoanswer3McKinsey’smissionistohavelastingandsubstantialimpactonourclients.Tosucceed,weneedtoworkallthreeofthecriticalelements:choosethebeststrategy,developworld-classoperations,aligntheorganization.Thesethreeelementsbothreinforceandconstraineachother.Thebeststrategyisonlyrelevantifitisoperationallyandorganizationallyfeasible.Theoptimalorganizationaldesigndependsuponthestrategicrequirementandtheoperationalmethodsoftheclient.Thisdocumentfocusesononevertexofthistriangularrelationship.Itwouldbewrong,however,tobelievethatyoucanachievetheimpactweseekbyfocusingononevertex.Weneedtoconsiderallthreeineverystudy.McKinsey’smissionistohave4CRITICALELEMENTSFORIMPACTSuccessfulstrategyEfficientoperationsEffectiveorganizationCRITICALELEMENTSFORIMPACTSu5Weonlyachieveimpactwhentheorganizationsweservearesuccessfulinimplementingthestrategiesandoperationalmethodswepropose.However,arecentsurveyofengagementsinwhichclientsfailedtoimplementproposedstrategiesfound,inthreecasesoutoffour,thattheclientorganizationwasnotchange-readyorevencapableofimplementingthestrategyweproposed.Toensurethatwehaveimpact,weneedtoconsiderorganizationalissuesaswedevisestrategies.Wemustchoosestrategiestheclientsarereadyandabletoimplementorcomplementourstrategyworkwithinvestmentinbuildingtheorganization’sskillssothattheorganizationcanstepuptothechallengethesuperiorstrategyposes..Weonlyachieveimpactwhenth63OUTOF4STRATEGIESTHATFAILDOSOBECAUSEOFTHEORGANIZATION’SINABILITYTOEXECUTE100%=340responsesPercentMcKinseyrecommendationsflawedClientnotchange-readyorcommittedOrganizationlackedthecapabilitiestoexecutestrategyOther3OUTOF4STRATEGIESTHATFAI7Thedemandfororganizationalworkisincreasing.Trendsinthemarketplaceandtheevolvingnatureofourclientslargelyexplainthisincreaseindemand.Thepaceofchangeinthemarketplaceisaccelerating.Astrategicchoiceoranoperationalinnovationevokesarapidreactionfromcompetitor.Rarelycanadurablecompetitiveadvantagebefoundinthesechoices.Ratheritisthedevelopmentofauniqueorganizationalcapabilitywiththeinherentflexibilityandcommitmenttosustainworld-classperformancethatprovidesdurablecompetitiveadvantageinthesetimesofrapidchange.Theclientsweservearechangingaswell.Theyhaveincreasinglyhiredin-housestrategiccapabilities.MosthavebuiltstrategyshopsclosetotheCEO.Few,however,havethein-housecapabilityandobjectivitytodotheorganizationalworkrequiredtomakechangehappen.Thedemandfororganizational8ORGANIZATIONALWORKGROWINGINIMPORTANCEEvolvingmarketplaceQuickeningpaceofstrategicadaptationDurablecompetitiveadvantageoftenrootedinuniqueorganizationalcapabilitiesEvolvingplayersManybusinessesacquiringin-housestrategiccapabilityMakingchangehappenremainsthe“neglectedart”McKinsey’sengagementmixPercentoftimeIncreasingdemandforhelpwithorganizationissuesandchangemanagementCraftingtheanswerHelpingimplementchange10yearsagoTodaySource:Surveyof23MGMsacrosstheFirmORGANIZATIONALWORKGROWINGIN9Therecentevolutioninourclientshasnotbeenmissedbyourcompetitors.Eachofourcompetitorshasrecentlyintroducedabrandedorganizationalelementtotheirportfolio.Theirorganizationalexpertisefiguresprominentlyintheirmarketingcampaigns.Therecentevolutioninourcl10COMPETITORSHAVEBRANDEDORGANIZATIONTOOLSConsultingfirm

ProductClientexampleBCGTime–basedcompetitionGEGeneralSystemsProcessredesignUPRRBoozAllenContinuousimprovementExxonUnitedResearchProcessredesignandfacilitationMobilDeltaPointTransformationalchangeSmithKlineBeechamCOMPETITORSHAVEBRANDEDORGAN11McKinsey’sconsultingapproachmustevolveasourclientsevolve.Thesechangesprovokeashiftinthenatureofourworkandanevolutionoftheroleoftheassociateonengagements.Theincreaseddemandfororganizationalworkimpactsassociatesdirectly.Associatesaredrawnintoleadershiprolesonlargerteamsatanearlierpointintheircareers.ThisplacesgreateremphasisontheneedforassociatestodevelopquitesoonafterjoiningMcKinsey-superbteamleadershipskills.McKinsey’sconsultingapproach12EVOLUTIONINMcKINSEY’SAPPROACH*Surveyof23MGMsacrosstheFirmFrom…

To…“Theanswer”Solvingforthe“answer”andthechangeprocessManagingclientteamsBuildingclientcapabilitiesSmall,analyticallyfocusedteams

––averageclientteamof3*Multiple,highlyleveragedMcKinsey/clientteams—Averageclientteamof10*CEOcounselingbyseniorpeopleCoachingandfeedbackatalllevelsEVOLUTIONINMcKINSEY’SAPPROA13Beforewediveintotheorganizationmaterials,weshouldannounceonecriticalcaveat:theframeworksyouareabouttoseeareonlyasgoodasthejudgmentandinsightusedtofillthemout.Theframeworksareoftenmerechecklists,usefultoolstoensureyoudonotoverlookakeydimension.TheOPcanprovideinterviewguidesandquestionnairesthatyoucanusetofleshouttheframeworks,aswellasappliedexamplesinarangeofsettings.However,almostallorganizationalissuesare“situationdependent”,andalmostallclientsettingsareunique.Yourjudgment,insight,creativity,andorganizationalacumenwilldeterminewhetheryouaddvalueintheclientsetting.Beforewediveintotheorgani14ACRITICALCAVEAT“Garbagein,garbageout”O(jiān)rganizationalpracticeframeworksChecklistsSurveys,questionnairesAppliedexamplesGarbageGoodjudgment,keeninsight,creativity,organizationalacumenGarbageClientimpactCONCEPTUALACRITICALCAVEAT“Garbagein,15Aseriesofframeworksareavailabletohelpclientsidentifyandaddressorganizationallimitsoneffectivenessorobstaclestochange.Theyalsopointtowardsolutions.Theseframeworkshelpteamsanswertwofundamentalquestions:?Whatchangeisneeded??Howshouldtheclientimplementthechange?TheOPhasderivedasetofsixattributesthatcharacterizehigh-performingorganizations(HPO).Byassessingwhetheryourclientorganizationexhibitsthesesixattributes,youcandiagnosewhetheranorganizationalperformancegapexistsaswell.Additionally,the7-Sswillhelpyouidentifystrengthsanddeficienciesintheorganization.The7-Ssfocusteamsonaligningstructure,staff,systems,andstyletopromotebehavioralchangeandbuildskillsinpivotaljobholders.Bycontrastingtherequiredskillset(atboththeorganizationandthepivotaljobholderlevel)withthecurrentskillset,youcanoftenclarifytheorganizationalgapthatexists.Youcompletethediagnosticbyfillingoutthechangeboard.Thatexercisehelpsteamsunderstandtheorganizationalskilldeficitsorresistancetochangesotheycandeliberatelyplantobuildthenecessaryskillsandwillingnesstochangeintheorganization.Oncethegapshavebeenidentified,theteamneedstolayoutachangeprogramtoclosethegaps.Thetransformationtrianglehighlightsthethreecriticaldimensionsofanyeffectivechangeprogram-topdown,bottomup,cross-functional.Theproperbalanceamongthesedimensionsdependsonthegap,theclientsetting,andthecompetitivecontext.Everychangeprogramcontainssomemixofsixfundamentalenergizingelements.Eachmustbeconsideredaswedesignchangeprograms.Thissectionofthehandbookwilldiscusseachframeworkinturn.Aseriesofframeworksareava16COREFRAMEWORKSHigh-performingorganizationattributesVisionPerfor-manceCEOledPeopleSkillsSimple7-SframeworkWinningformulaPivotaljobsDesignleversOrganizationalstructureWhatchangeisneeded?Howshouldtheclientmakechangehappen?Whatgapsinorganizationalperformanceexist?Whatorganizationalchallengesexist?Whatinitiativescomprisethechangeprogram?Howdowecreateenergyforthechangeprogram?StrategySkillsSharedvaluesVISIONStaffManagementsystemsLeadershipstyleChangeboardAgenda/platformDirectionsettingStructuringBottom-upenergizingTransformationtrianglePerformancemanagementVisionandleadershipcommunicationOrganizationalinfrastructurePeopledevelopmentProblemsolvingprocessEnergizingelementsCOREFRAMEWORKSHigh-performing17TheOPundertookastudyof10high-performingcompanies,trueindustryleaders,thatweknewverywell.Thecompanieshadsustainedpace-settingperformanceintheirrespectiveindustriesover2decades.These10HPOssharedsixmanagementattributes,eachofwhichfocusesonperformance.BycomparingyourclientorganizationtotheseHPOs,youmayidentifyopportunitiestoimproveyourclientorganization.TheOPundertookastudyof1018“HIGH-PERFORMANCECOMPANY”ATTRIBUTESDrivenbyleadersAlignedbysimplestructuresandcoreprocessesBasedonworld-classskillsRejuvenatedbywell-developedpeoplesystemsBuiltbyrelentlesspursuitofbefore-the-factstrategies/visionEnergizedbyanextraordinarilyintense,performance-drivenenvironmentWhatchangeisneeded?Howshouldtheclientmakechangehappen?OrganizationalchallengesInitiativesEnergizingelementsGapsinperformance“HIGH-PERFORMANCECOMPANY”ATT19Thefirstthreeofthesixcommonmanagementattributes:?Drivenbyleaders.Theleadersofthesecompanieshadveryhighperformanceaspirations.Fortheseleaderstherewasnosuchnotionas“goodenough”.Atthecenteroftheseleadershipgroups,weconsistentlyfounddemanding,unreasonableCEOs.?Builtbyrelentlessbefore-the-factstrategies/visions.HPOsspendtheirtimelookingforward,notback.Theirstrategiesdriverelentlesslyforbothprofitabilityandgrowth.?Energizedbyanextraordinarilyintense,performance-drivenenvironment.HPOshaveademanding,occasionallypunishing,workpace.Thereisrealaccountability,especiallyatthetop.HPOs,whilebeingverygoodplacestowork,arenotalwaysniceplacestowork.Thefirstthreeofthesixcom20ATTRIBUTESOFANHPODrivenbyleaderVeryhighperformanceaspirationsheldbyallkeyleadersDemanding,“unreasonable”CEOsEffectiveworkinggroupattopAbilitytopenetratetomicro-leveloftheirbusinessesSingle-mindedadherencetosimple,clearsuccessmeasures-notjustfinancialProductive“fearoffailure”Builtbyrelentlesspursuitofbefore-the-factstrategies/visionHighlymotivating,ifnotinspiring,“end”stateFrequentlyorientedtowardindustryleadershipConsistentlystrivingforbothprofitabilityandgrowthPassionatedefendersofcorebusinessesUnderstandingofhowindustry(s)works,whatcustomerswant,andwhatcompetitorscando-andhowthesemightchangeEnergizedbyanextraordi-narilyintense,performancedrivenenvironmentDemanding,occasionallypunishing,workpace;oncallallthetimeRealfollow-throughonaccountability–especiallyatthetopAggressivelearningfromthingsthatdonotwork“good”placestoworkbutnotalways“nice”PerformanceshortfallschangecareersMembersfeelrewardedbybeingpartofwinninginstitutionATTRIBUTESOFANHPODrivenby21Thelastthreecommonmanagementattributesfocusonstructure,skills,andsystems:?Alignedbysimplestructuresandcoreprocesses.HPOsalignauthority,accountability,andperformancechallenges.Linesofcommunicationandapprovalaresimpleandaremirroredfromonedivisiontothenext.?Basedonworld-classskills.HPOsareworldclassinatleastonecriticalskilloftheirindustry,e.g.,productdevelopmentinhightechnology,riskmanagementinwholesalebanking,direct-to-storedeliveryinconsumergoods,best-costmanufacturing.Additionally,HPOsexhibitsuperiorprocessmanagementskillsthatinandofthemselvesbecomeasourceofcompetitiveadvantage.?Rejuvenatedbywell-developedpeoplesystems.TheCEOinthesecompaniesistheChiefPersonnelOfficer.TheCEOinteractsregularlywiththeentireleadershipgroup,understandstheindividualdevelopmentneedsandgoals,andleadsstaffingreviews.Thelastthreecommonmanageme22ATTRIBUTESOFANHPO(CONTINUED)AlignedbysimplestructuresandcoreprocessesStraightforwardalignmentofauthority,accountability,andperformancechallengesUncomplicatedlinesofcommunicationandapproval–linetolineSimilarinternalstructuralunitsandkeymanagementprocessesacrossthecompanyMinimalcriticalstaffreviewsRegularcalendarofkeymanagementprocessesandcommunicationBasedonworld-classcompanyskillsDomanythingswell,butatleast1functionalskillatworld-classcompetencelevelunderpinsstrategyAlsofocusonbuildingcorporateskillinthewaytheyruntheplaceCompanykeymanagementprocessesviewedasrealcompetitiveadvantageRejuvenatedbywell-developedpeoplesystemsCEOisChiefPersonnelOfficerClearfocusonperformanceandmotivation–successfullong-termwealth-buildingprogramsseemkeyManagementprocessesensureleadershave“informed”viewofkeycontributors2-3levelsdownCEOleadsannual“staffingreview”–bestpeople/teamsinmostcritical/demandingjobs“Benchstrength”isatoppriorityATTRIBUTESOFANHPO(CONTINUE23TheHPOresearchfoundsomethingelsecommontotheHPOs:all10wereexperimentingwithself-governance.Self-governanceintheseHPOsmeansempowermentwithaccountability.TheHPOssharethecommoncharacteristicofinvolving“awiderangeof“or“broadcross-sectionof”employeesindrivingforimprovedperformance.Theirgoalistoimbueeveryemployeewithanowner’smind-set.Self–governanceintheseHPOsisdifferentfromthatpracticedinother“engagedandempowered”companies.InHPOsthesingle-mindedobjectiveofempowermentisperformance.Inthematrixbelow,theHPOswestudiedwereallinthetophalfofthematrix(highperformance);manywerereaching,inaddition,fortheright-handsideofthematrix(engagedandempowered).TheHPOresearchfoundsomethi24PERFORMANCEANDEMPOWERMENTATHPOsHPOsPerformance-focused,top-down-drivenorganizationsPerformance-driven,empowered,andaccountableorganizationsHierarchical,command-andcontrol-oriented,“entitled”organizationsActivity-driven,“engagedandempowered”organizationsCommandandcontrolEngageandempowerHighLowAveragePerformanceManagementapproachPERFORMANCEANDEMPOWERMENTAT25Mostlargecompaniesstartoutinthelowerleft-handcornerofthematrix(lowperformanceandcommand-and-controlmanagementapproach).WediscoveredthatHPOsthathavesuccessfullytransitionedtotheupperright-handcornerhavefirstachievedhighperformanceandthenexperimentedwithandadoptedempowerment.Empowermentwithoutfirstestablishingatrueperformanceethicinthecompanytendstoresultincontinuedlowperformance.Ifyourclientfallsinthelowerleft-handcornerofthismatrix,itneedstoconcentratefirstonbuildingatrueperformanceethic.Empowerment,alone,isunlikelytoyieldperformanceimprovement.Mostlargecompaniesstartout26TRANSFORMATIONPATHPathfollowedbyhigh-performancecompaniesPathexperiencedbycompaniesthatfailtoinstillperformanceethicfirstEmersonPepsicoSonocoSunTrustVF3MGEHallmarkJohnson&JohnsonManyhighperfor-mers”onthejourney”MostcompaniesBPFP&LWallaceCommandandcontrolEngageandempowerHighLowAveragePerformanceManagementapproachTRANSFORMATIONPATHPathfollow27Asdiscussedabove,thefirstphaseoftheorganizationdiagnosticidentifiesperformancegaps.Thesecondphasefocusesonidentifyingorganizationalissuesandimpedimentstochange.Theframeworkmostcommonlyusedtoidentifyorganizationalissuesincludessevenbucketsthatstartwith“S”.Strategy.Anintegratedsetofactionsthatdeliverasuperiorvaluetoasetofcustomerswithacoststructureallowingexcellentcontinuingreturns.Institutionalskills.End-resultactivitiesthecompanymustbereallygoodatinordertodeliverthevalueproposition.Sharedvalues.Simple,agreed-uponprinciplesthatsaywhatisimportantaroundhere.Takentogether,thefirst3-Ssdefinethecompany’svision:anoverridinggoalthatpeopleintheorganizationstrivetoachieve;thatischallenging,valuable,andexcitingtothem;andvaluableanddifferentiatedtotheintendedcustomer.Toachievethevision,thecompanymustdesignandalignleverstoguidethebehaviorofthoseholdingpivotaljobsclosetothefrontline–i.e.,thosewhodirectlyaffectdeliveryofvaluetothecustomer.Organizationalstructure.Anorderlyandpredictablesystemtodeterminewhoreportstowhomandhowtasksaredividedupandintegrated.Staff.Thepeopleintheorganizationconsideredintermsoftheircapabilities,experience,andpotential.Managementsystems.Theprocessesandproceduresthroughwhichthingsgetdoneday-to-day.Leadershipstyle.Thewayleadersfocustheirtimeandattentionandthepersonaltonetheyset.Asdiscussedabove,thefirst287-SFRAMEWORKWhatchangeisneeded?Howshouldtheclientmakechangehappen?GapsinperformanceOrganizationalchallengesinitiativesOrganizationalchallengesEnergizingelementsWinningformulaPivotaljobsDesignleversOrganizationalstructureManagementsystemsLeadershipstyleStaffStrategySkillsSharedvaluesVISION7-SFRAMEWORKWhatchangeisne29Attheheartofwemeanbyorganizationalperformanceisa“winningformula”creatingacombinationofstrategy,skills,andsharedvaluestocarryoutanorganizationalpurpose.Whatlinkstheseelementstogether(the“overlap”)istheorganization’svision:Thevisionistheoverridinggoaloftheorganization–theplacewherestrategy,skills,andsharedvaluesintersect.Itisthesingle,noblepurposethatguidesorganizationalprioritiesandgivesmeaningtotheday-to-dayactivityofthestaff.Forexample,McDonald’shasavision-driven“winningformula,”asdescribedbelow.Attheheartofwemeanbyorg30McDONALD’SWINNINGFORMULAVision:

tobecometheleadingrestaurantchainintheworldStrategySharedvaluesSkillsConvenientGoodqualityConsistentFamily-orientedenvironmentFairvalueQualitycontroloverallaspectsofbusinessSuperiorsiteselectionContinuousnewproductdevelopmentStrongpromotionofproductsandMcDonald’simageQualityServiceCleanlinesspriceMcDONALD’SWINNINGFORMULAVisi31Organizationsusuallychangeinresponsetodiscontinuities–eitherexternalshocks(suchasderegulation)orinternalchanges(suchasnewleadership)thatmakeitclearthattheold,“grooved”wayofdoingthingsisnolongerwinning.Thesuccessfuloneswillcreateanewwinningformulathatisbasedonchangesinstrategy,newerorstrongerskills,and/orsharedvalues.Contrastingthenewwinningformulatotheoldformulaidentifiesandgaugesthechangethattheorganizationisconsideringanddefinesthevisionforthechangeprogram.Achangevisionisacreedthatsummarizeswhatanorganizationistryingtobecomeandwhy.Assuch,itguidesorganizationalprioritiesbyredefiningandrecombiningbusinessobjectives,requiredinstitutionalskills,andcorporatevaluesaboutwhatisimportantaroundhere.Achangevisionisattheheartoftopmanagement’sroleinimprovingperformanceandisoftenthefirststep.Itprovidesthevitalbridgebetweentheinitialdissatisfactionwiththestatusquoandthefirstpracticalstepstakeninachangeprogram–thearticulationofacleartargetthatrepresentssomethingbetterthatisbothlogicallysoundandemotionallyappealing.Organizationsusuallychangei32IMPROVINGORGANIZATIONALPERFORMANCEGroovedRedirectedUnfrozenDiscontinuitiesExternalshocksNewcompetitors,economicsNewtechnologiesDeregulationInternalchangesNewaspirationsNewleaderMajorchangethroughpeopleStrategySkillsSharedvaluesVISIONNewstrategyNeworstrongerskillsSharedvaluesCHANGEVISIONIMPROVINGORGANIZATIONALPERFO33Certainkeypeopleintheorganizationholdpositionsthatdeterminesuccessorfailureininstitutinganewstrategy,skill,orsharedvalue.Thesepeoplefillwhatwecallpivotaljobs.Wewillonlysucceedinimplementingthechangevisionifwesucceedinchangingthebehaviorofpivotaljobholders.AtMcDonald’s,forexample,pivotaljobsincludethecentralizedpurchasersofallrawmaterialsforallstores,thestoremanagers,andthehourlyemployeeswhotakeandassembleorders.Certainkeypeopleintheorga34PIVOTALJOBS

WhatpeoplemustdoWhatarethey?Positionsthathavedirectimpactondeliveryofvaluetothecustomer.Typicallythey-Designtheproduct-Maketheproduct-SelltheproductPositionsthatmustcapablymasternewskillsWherearethey?ClosetothefrontlinePIVOTALJOBS

Whatpeoplemust35Inarecentstudyatachainstoreretailer,thechangevisionincludedasignificantimprovementinin-storeconvenience.Twopositionswereidentifiedaspivotaljobs–thestoremanagerandtheareaoperationsmanager.Thisstudyemployedacontrastanalysisintwoforms.Thefirstconsideredeachelementofbehavioranddefinedhowthenewbehaviorwouldneedtodifferfromcurrentpractices.Abehaviorcontrastanalysisoftenproveshelpfulindefiningpreciselyhowthepivotaljob-holdersneedtochange.Inarecentstudyatachains36CONTRASTANALYSIS

Pivotaljobs:storemanager,chainretailerElements

OldbehaviorNewbehaviorUseoftimeSpendmajorityoftimeondailyroutinetasks–unloadingtrucks,stockingshelves,etc.Devotemuchmoreattentiontotraining/coaching,evaluating/experimentingwithpricing,staffing,merchandisingJobobjectiveEnsurethatday-todaystoreoperationsrunsmoothlyManagestoreprofitabilityandimplementationofnewconveniencestrategyCriticalskillsConscientious,responsibleBasicmathandwritingskillsOldskills,plus…GoodinstinctsabouthowtoaffectprofitsLeadershipqualitiesCriteriaTaskcompletionFinancialperformanceOldcriteriaplusaddedemphasison…CustomerserviceInventorymanagementStoreappearanceCONTRASTANALYSIS

Pivotaljobs37Thesecondanalysiscontrastedthepercentageoftimespentoncriticaltasksundercurrentpracticesandenvisionedinthefuture.Thesecondanalysiscontrasted38CONTRASTANALYSISBYPERCENTAGEOFTIMESPENT

Pivotaljob:areaoperationsmanager100%CurrentProposedTailorproducts,services,pricing,andpromotiontosegments?Searchfornewbusiness?EvaluatebusinessandcustomerserviceperformanceExpandone-on-onetimewithSMandassociates?Trainandmotivateface-to-faceforcustomerservice,inventorymanagement…?EncourageSMtoinnovateClericalsupportshouldeliminatetasksClericalsupportshouldeliminatetasksShortvendorcontacts?RecruitingSMand?pharmacistDisciplining?Balancinginventory?Follow-upontelephone?messagesInventories?Paperwork?Puttingoutfires?Monitoringcompliance?

–Policies

–PlanogramsAnsweringsurveys?Fillingoutappraisals?Districtreports?Merchant/ownerCoachPlayerAdmini-straorCONTRASTANALYSISBYPERCENTAG39The3-Swinningformulasetsthestandards,goals,andmissionoftheorganization.Howdoyougetpeople(particularlypivotaljobholders)toactuallyfollowthosegoals?Whileyoucandictatewhatskillsandsharedvaluesyouwant,theorganizationmustprovideguidance,motivation,andmonitoringtoseethattherightdecisionsaremade.ThisisprovidedthroughtheotherSs–structure,systems,staff,andstyle.Collectivelyknownasthe“designlevers”,eachofthesefourshouldbesetbyconsideringthespecificskillsandsharedvaluesyouwanttoinstillintheorganization’speople–andbalancingthemwithotherdesignsthatmightbesuggestedbyotherspecificskillsandsharedvaluesneeded.?Structure.Whoreportstowhomandhowtasksarebothdividedupandintegrated.?Systems.Theprocessesandproceduresthroughwhichthingsgetdonefromdaytoday,includinghiring,compensation,performanceevaluation,promotionspolicy,andtraining.?Staff.Thepeopleintheorganizationconsideredintermsoftheircapabilities,experience,andpotential.?Style.Thewaymanagerscollectivelybehavewithrespecttouseoftime,attention,andsymbolicactions.The3-Swinningformulasetst40ORGANIZATIONALDESIGNLEVERSATMcDONALD