Introduction To The Influence Model: Confidential

CONFIDENTIAL
Introduction to the Influence Model
Elizabeth Mohr, Christina Palme
7 August 2003
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
This material was used by McKinsey & Company during an oral
presentation; it is not a complete record of the discussion.
070803LN(M)ZZT606GREM-P1
CONTENTS
• Introduction
• The Influence Model and Performance Leadership
• Overview of the Influence Model
• The Influence Model as Diagnostic Tool
• Appendix
– Theoretical Background
– Case Studies
– Further readings and contacts
2
THE INFLUENCE MODEL: INTRODUCTION
• Organizations change most effectively when individuals change their mindsets and behaviors. Change
programs that do not address mindset and behavior shifts may work for some time, but they generally do
not achieve lasting change. Therefore, changing mindsets and behaviors should be one of the major aims
of any change program. The Influence Model describes how this change can be driven.
• The Influence Model consists of four key levers to shift mindsets and behaviors:
- role modeling
- fostering conviction and understanding
- reinforcing with formal mechanisms
- developing talent and skills
• For each of the four influencers there are specific levers that can be used to define the set of actions that
will lead to the desired change. Most effective change programs will incorporate complementary and
consistent actions from all four influencers.
• The Influence Model is a practical and flexible tool. It is an integral part of the Performance Leadership
framework, but it can also be used alone. Teams working on change projects can use it as a framework for
developing concrete, tangible ideas to translate future plans into something actionable as the Influence
Model addresses a step typically missing in many change programs – development of explicit actions to
influence mindset and behavior change. Teams have also used the Influence Model as a diagnostic tool to
gain insights into the conditions for lasting change and the potential barriers to it.
• This pack briefly explains how the Influence Model fits with the Performance Leadership approach and then
provides a general introduction to the model and how teams can use it. The appendix includes theoretical
background, a number of case studies and further sources of information.
3
CONTENTS
• Introduction
• Appendix
– Case Studies
4
The Influence Model forms the second phase of the Performance Leadership approach
THE INFLUENCE MODEL AND PERFORMANCE LEADERSHIP
Where are you today and What do you need to How do you lead the
where do you want to go? do to get there? implementation?
Direction
Role-modeling Fostering
Account-
ability
Coordination
& Control understanding
and conviction
External
Behavior
Orientation
Leadership Innovaton
and mindset
shifts
Developing Reinforcing
Capability Motivation talent with formal
and skills mechanisms
Environment &
Vaues
Performance Profile Influence Model Tailored

Understand current Develop a set of Implementation
performance and set initiatives required to Architect an
aspirations for the future change mindsets and implementation program
based on a diagnosis of behaviors and close the and make choices
the nine elements of existing performance around tailoring the
organizational gaps changes
performance
5
CONTENTS
• Introduction
• Appendix
– Case Studies
6
The Influence Model consists of four change levers designed to shift mindset and behaviors
THE INFLUENCE MODEL: CHANGE LEVERS

"I will change my own behavior if…"
“I see superiors, peers understanding and
and subordinates conviction
behaving in the new way” “I know what is
expected of me – I
agree with it, and it
is meaningful”
Mindset &
behavior
shifts
Developing talent and Reinforcing with formal

skills mechanisms
“I have the skills and “The structures, processes
competencies to behave and systems reinforce the
in the new way” change in behavior I am
being asked to make”
7
Each change lever can be broken into a number of more actionable categories
THE INFLUENCE MODEL: CHANGE LEVERS AND LEVER CATEGORIES
Lever categories Lever categories
• Leadership actions Role-modeling Fostering • Story development

• Opinion shapers “I see superiors, peers understanding and (includes all the key
• Interactions and subordinates conviction elements, e.g., values,
behaving in the new way” “I know what is strategy, case for
expected of me – I change)
agree with it, and it • Story delivery (across
is meaningful” relevant levels, i.e.,
organizational, employee,
Mindset &
functional)
behavior
• Talent management shifts • Organization structure
– Hiring • Targets and metrics
– Replacing Developing talent and Reinforcing with formal • Management processes
– Retaining skills mechanisms • Business processes
• Learning “I have the skills and “The structures, processes • Rewards, recognition
– On-the-job competencies to behave and systems reinforce the and consequences
development in the new way” change in behavior I am • Information systems
– Training being asked to make”
– Action learning
8
LEVER CATEGORIES – ROLE MODELING

Description Example actions
• Setting an example of exemplary • Increase visibility of leaders through regular staff interaction
Leadership behavior in day-to-day interactions • Create forums for leaders to interact with the rest of the organization
actions with subordinates • Use symbolic language and actions to emphasize importance of the desired change
to customers and employees
• Rebalance time commitments to emphasize priorities
• Engage leaders in work in-line with organizational priorities
• Provide feedback and/or personal development workshops to improve style/EQ
• Use action learning and leadership dialog process to align leadership group around
corporate values
• Evaluate managers on their attention to company values
• Enlisting the support and involvement • Identify influential stakeholders from all levels of the organization
Opinion of influential stakeholders at all levels • Understand reasons for resistance
shapers of the organization to assist in • Appoint formal ‘change champions’
shaping the desired behaviors • Change team composition to include key opinion leaders in change processes
– Formal leaders • Appoint formal top management initiative ‘sponsors’
– Informal leaders • Ensure top management ownership of change through linkage of program
– Champions or change leaders success to their evaluation and rewards
• Task change agents to carry the message to their environs (e.g., BU, team, etc.)
• Develop strategies to explicitly address the needs and concerns of influential
organizational members
• Explicitly seek the support and involvement of opinion shapers in the design of
the change process – ensure involvement of influential ‘resistors/detractors’
• Remove ‘blockers’ from key positions
• Ensuring that group dynamics are • Improve quality of direction, interaction and renewal
Interactions effective in pivotal performance – Identify and agree on team roles & priorities
groups – Encourage inquiry and reflection within groups
– Spend time analyzing the root causes of problems
– Provide coaching to individual members
• Understand current degree of alignment around corporate story/change agenda
– Open discussion forums
– Conduct consensor workshop
• Encourage team alignment by engaging groups in real work
* For further information please refer to The Influence Model: Creating Context Specific Initiatives to Change Mindsets & Behaviors 9
LEVER CATEGORIES – FOSTERING UNDERSTANDING AND CONVICTION

• Articulating, updating, and integrating • Develop story plot to include case for change
Story key elements (e.g., strategy, case for • Update mission/vision to align with organizational agenda
development change, vision) needed to align the • Develop corporate story by including key people in story
organization to achieve performance development (e.g., pivotal players, opinion shapers)
objectives into compelling, energizing • Conduct audience analysis and develop variants of the story for
and meaningful stories different levels/audiences (e.g., top team, R&D, frontline)
• Recasting the change/transformation
plot in dramatic terms of a rallying cry
with the intent to energize and entice
members of the organization for
addressing change
– Why do we need to change?
– Is the suggested change right?
– Are we capable of doing it?
– Who is supporting this?
– What’s in it for me?
Story • Communicating and cascading the • Communicate the story in different forums, e.g.,
delivery story throughout the organization in – Corporate event
order to reach and energize all the – One day off-site
members – Management workshop
– Leadership council
• Measuring understanding, reinforcing, • Communicate the story in different formats, e.g.,
and updating the story based on the – Memos
organizational agenda and reception – Visual representations (e.g., intranet, carry-cards, posters,
of the story in the organization banners)
LEVER CATEGORIES – REINFORCING WITH FORMAL MECHANISMS

Organization
Organization • Changing the organization structure, decision • Flatten organization into numerous performance units with P&L responsibilities
structure
structure rights and responsibilities, and coordination • Redesign roles and responsibilities of Board of Directors
mechanisms that formally dictate interactions • Revise top management job descriptions
• Redistribute decision rights
Targets
Targets and
and • Setting up individual and organization-wide • Identify BU/corporate targets which reinforce the strategy
metrics
metrics performance goals necessary to reach or • Identify value drivers and set performance metrics (KPIs) at the BU/corporate
exceed aspirations level
• Translate corporate/BU objectives into individual targets and KPIs
Management
Management • Aligning management processes (including • Redesign operations planning processes
processes
processes strategic, operational and people planning and • Emphasize financial performance reviews
review and knowledge management • Transfer best practices between divisions
processes) and systems with the mission and • Institute individual performance appraisal and feedback systems
key value drivers • Incorporate knowledge sharing metrics into individual scorecards
Business
Business • Reducing costs, improving quality and • Build cross-functional procurement teams
processes
processes decreasing process times by redesigning • Consolidate R&D activities
business processes such as new product • Set up key account teams
development, customer management,
procurement, etc.
Rewards,
Rewards, • Motivating individual and group performance • Institute ‘’pay for performance’ system
recognition
recognition and
and and aligning employee interest with the • Institute meaningful non-financial rewards, team rewards (e.g., extra
consequences
consequences organization’s objectives through financial vacation days)
and non-financial incentives and consequence • Tie at-risk pay to individual performance as well as corporate performance
management • Provide promotion opportunities to high performers
Information
Information
• Enabling tighter coordination, enhancing • Install enterprise-wide MIS system for performance reporting/management
systems
systems
access to information, redesigning business/ • Develop intranet system for knowledge capture and sharing
organizational models, and improving front- • Build decision support systems to assist customer-facing functions
line performance through investments in
technology
LEVER CATEGORIES – DEVELOPING TALENT AND SKILLS

Hiring • Selecting and placing individuals • Define and communicate an employee value proposition
into jobs (including temporary • Hold managers accountable for the quality of their talent pool
support such as consultants) • Map high value jobs to high value people
Talent upgrading
• Evaluate proposals from external consultants

• Select consultants based on personal fit with the organization
Replacing • Replacing low performers • Replace underperformers based on annual review

occupying key positions
Retaining • Reducing the voluntary departure • Assign top talent to good managers
of top performers • Use long-term incentives, stock grants or options to encourage
tenure
• Track attrition levels and work to maintain an attractive value
proposition
• Shape work content and environment to excite, motivate, and stretch
high performers
• Embedding development •• Offer most attractive development opportunities to high performers
Explicitly evaluate and reward managers based on their skills and
On-the-job
On-the-job opportunities within operational job commitment to coaching
development
development assignments, or providing • Post internal transfer opportunities on bulletin board
development conjunction with these • Assign a mentor to every new employee based on common background
assignments • Create “development plans” for “top 50”
• On-the-job developmental activities • Promote job rotation and cross-functional transfers
Learning
include coaching, mentoring, job • Develop individualized assistance and action plans for underperformers
rotation, and special assignments,
etc…
Training • Instructing on specific knowledge or • Build a “corporate university”

skills • Develop on-line training materials
• Formally prepared in advance and • Introduce a tuition reimbursement program
delivered within defined time period • Prepare a personalized training schedule based on individual’s needs
• Addressing day-to-day problems • Integrate action learning methods into existing training and development
Action learning within a facilitated, interactive forum strategy
• Brings people together to learn, • Engage in role plays and focus groups to test solutions
reflect, and find solutions to real • Roll out by involving in workshop to practice new solutions
business issues
Before going into implementation planning the final set of actions needs to be checked
TESTING ACTIONS FOR “GOODNESS OF FIT”
Influence model initiatives

Profile
 1. Consistency: Ensure alignment
elements of actions among performance
Leadership X X X X model elements
Direction X X X X
Environment and X X X X
 2. Complementarity: Ensure
values integrated actions are taken
X X X X
Accountability across all 4 influence model
Coordination and X X X X quadrants
control
X X X X
Capability  3. Comprehensiveness: Ensure
Motivation
X X X X sufficient actions are taken across
External orientation
X X X X performance profile and influence
Innovation X X X X model to achieve desired outcome
but taking care not to overwhelm
the organization with too many
actions
“Goodness of Fit” is the extent to which
the complete set of initiatives are
consistent, complementary,  4. Context: Ensure actions are
comprehensive, and context specific aligned with the organization's
strategic objectives and context
Note: While each initiative is resident under one lever, it may impact more than one element (e.g., stories impact direction, leadership, and
environment) 13
CONTENTS
• Introduction
• Appendix
– Case Studies
14
THE INFLUENCE MODEL AS DIAGNOSTIC TOOL
• A few teams have used the Influence Model as a starting point for developing diagnostic tools or
surveys. Questions structured around the four change levers can help to identify areas in which changes
need to be made in order to accomplish behavior and mindset shifts and build the conditions for lasting
change.
• Such diagnostic/surveys can be used at various stages of an engagement. Practitioners recommend

using them at the beginning of a study only if a team has a good understanding of the client situation.
Diagnostics/surveys can also be used in ongoing studies when the issue of behavior and mindset
change is critical to implementation. The repeated use of the diagnostic can monitor and measure the
degree of change throughout the course of a study.
• The following section shows a series of sample questions that have been used in various client settings.
Teams may decide to use these questions and, if needed, tailor them to the specific needs of the client,
or they may decide to develop their own set of questions based on the four change quadrants of the
Influence Model.
• Contact: Renate Osterchrist, Specialist (MUN)
15
THE INFLUENCE MODEL AS DIAGNOSTIC TOOL – EXAMPLE QUESTIONS

• To what extent does the top team act collectively to promote the vision • Have clear objectives been defined?
and the path to achieve it? • How many employees are familiar with the company's business situation (best
• What percentage of the key stake-holders (labor representatives, opinion practice comparisons, customer satisfaction, revenues, market position)?
leaders, etc.) support the project in all necessary aspects? • How many employees have understood why the change is necessary, in what
• Is middle management actively involved? direction the company should head, and what steps are needed to do so?
• Is the top team clear about what it must do in order to support the • How many employees are committed to the goal and the path for getting there?
transformation? • How many executives communicate target-group-specific messages about the
• Do managers "live" the principles of the desired change, e.g., focus on "What," "Why," and "How" of the company's plans for change?
customer orientation, process orientation, quality, cost reduction? • To what extent are interactive communications used (e.g., forums, small-group
• How clearly does the top team provide recognition for committed discussions, one-on-one discussions, dialog workshops, etc.)?
employees and promoters? • To what extent are feedback instruments used to evaluate
the effectiveness of the top/middle management's
• To what extent is non-performance or poor communication and to derive action from the results?
performance penalized? understanding and • Are the people affected by changes actively involved in
conviction developing solutions?
• To what extent do patterns of interaction in the
organization support the change effort (e.g., trust, no turf
wars, ...)?
Mindset
and behavior
shifts
• Are the requirements defined that employees • Have strategies been developed to achieve the vision/goal,
and executives must meet in the future (target Developing talent Reinforcing with with clearly formulated milestones along the way?
profile) in order to effect change and make it and skills formal mechanisms
sustainable? • Do the current area-specific strategies match the company's
overall strategy?
• Is the current level of skills among employees
and executives known and recorded? • Are the management systems aligned to the envisioned
changes, e.g., policy deployment, KPIs, incentives, job profiles,
• Are employees and executives sufficiently job appointments, organization structure?
qualified for new tasks/ processes
(actual/target profile gap analysis)?
• Have the processes and information systems been adapted to support the
• Have qualification activities (e.g., training) been derived from the results envisioned changes?
of the actual/target gap analysis?
• Have the necessary investments to adjust the structure/systems been taken into
• Have placements been specified based on the actual/target gap account?
analysis?
• To what extent is top talent already filling the positions that are critical
for success?
• Is the top team capable of handling resistance from the organization
constructively?
• Do the internal project leaders have the necessary project management
skills (for the overall program and sub-projects)?
16
CONTENTS
• Introduction
• Appendix
– Case Studies
17
THE INFLUENCE MODEL IS BACKED UP BY RESEARCH FROM MULTIPLE

DISCIPLINES
• “People take their cues • “It’s difficult to behave in
from those who they a different way if the
consider as ‘significant behavior is inconsistent
others’ and model their with your view of the
behavior accordingly.” world.”
– Imprinting work by – Cognitive dissonance
Lorenz work by Festinger
understanding and
• “People don’t leap from
conviction
unskilled to highly skilled
in one bound. The job of • “The prize for behaving
a parent (organization) is differently must be
to underpin (or scaffold) greater than the
the learning at any stage Mindset perceived pain involved
of development so that it and behavior in entering into the new
becomes embedded in shifts behavior.”
patterns of behavior – Personal motivation
Developing talent Reinforcing with work by Kurt Lewin
before the next
and skills formal mechanisms • “The surrounding
developmental leap
occurs.” environment sends us
– Scaffolding work signals which we each
by Vroom interpret in different ways
• “Adults learn through a but which cause greater
trial and error approach.” likelihood to behave in a
– Adult learning certain way.”
work by Kolb – Operant conditioning
work by Skinner
18
Larry Bossidy's discussion about making change touches on the four change levers of the Influence Model
THE INFLUENCE MODEL IS RELEVANT TO PRACTITIONERS

Representative actions to improve
accountability and collaboration
“First, you tell people clearly

what results you’re looking
Fostering
understanding and
conviction
• Weekly emails from CEO telling all employees his vision and asking for
for… suggestions
Then you discuss how to get

those results…
• New organization structure, centered on market segments

Then you reward people for • New compensation system linking rewards to performance
producing those results… Reinforcing with
• Web-based evaluation tools and quintile performance rankings
formal mechanisms
If they come up short, you

provide additional
coaching…
• “After class” coaching sessions, led by CEO for top leaders who have
struggled to meet numbers or convey results
Sometimes the “ahas” come

Developing talent
and skills
from watching others’

behaviors”
Role-modeling
• Monthly “performance calls” led by CEO, COO and CFO with top 150
– Larry Bossidy leaders
• HR department renamed Leadership and Change Management
19
Recognized business leaders engage in a range of actions similar to components of the Influence Model
THE INFLUENCE MODEL IS RELEVANT TO PRACTITIONERS
• 2-day meetings to review • Customer surveys – IBM

business for the top 150 • Employee surveys – GE
executives – Bossidy • Employee educational programs –
• Change the vocabulary and the Role-modeling Fostering IBM
dress code of the organization, understanding and • Work-Out – GE
stop the ‘non-concur’ process, conviction • Structured dialogues – Bossidy
stop ‘Lou said’ orders – • Personal notes - Bossidy
Gerstner • Define leadership expectations –
• Elevate the HR function – GE, Bossidy, IBM, GE
IBM Mindset
and behavior
shifts
• Coaching – IBM, GE, Bossidy • Restructuring board & management
• 6 Sigma – GE, Bossidy Developing talent Reinforcing with process – IBM
• Rigorous succession planning and skills formal mechanisms • Pay in stocks & options – IBM
process – GE • Reorganize structure & power –
IBM
• Clear goals, priorities and review
process – Bossidy
• Fix, sell or close philosophy
embedded – GE
20
CONTENTS
• Introduction
• Appendix
– Client Case Studies
• Transportation company
• Financial services group
• UK Petroleum company
• US Petroleum company
• Electric Utility
• UK Retail Bank
• Asia Pacific Bank
• Pricing
– Case study of influence model as diagnostic tool
– Outside- In Case Studies
• Nissan
• BAE Systems
• Further readings and contacts
21
TRANSPORTATION COMPANY CASE STUDY – SUMMARY
• Public sector organization responsible for transportation in large European city.

• In 2000 five previously independent entities responsible for streets, taxis, buses, trams,
Situation rail and all other modes of transport were combined into one organization of 3000
employees.
• Proposed integration of additional major organization responsible for subway system
would bring total employees to 16 500.
• Initial diagnostic using the OPP Survey, interviews and fact-based analysis identified
Themes for three principal themes to be addressed:
change - Align the new organization around a common direction
- Embed effective coordination and control mechanisms throughout the organization
- Develop the people capabilities required for effective delivery
• The top team was identified as one of the priority groups to focus on, in order to
Kicking off establish a clear, common direction for the new organization and to role model effective
the change interaction, integration and accountability.
Designing
• Each theme was broken down into the necessary outcome changes and corresponding
behavior and mindset shifts.
effective • The Influence Model was then used to identify a set of actions aimed at closing existing
actions performance gaps and bringing about the desired changes.
22
THEME ONE – ALIGNING THE ORGANIZATION AROUND A COMMON

DIRECTION TRANSPORTATION COMPANY CASE STUDY
From… To…
• Lack of clear and • Clearly defined and implementable Common
Outcome implementable common Transport Strategy and business strategies
strategy (Bus, subway etc.) in place and
• Employees unclear where communicated throughout the organization
TransportCo is going or how • All employees understand the Common
their business/team fits in Transport Strategy, the business plan and
• Top team not seen to interact their business strategies and what role they as
effectively as a team by peers individuals/ teams/ businesses play in its
or immediate reports delivery
• Top team members act as a role model to the
Align organization of a unified team with delivery of
organization Common Transport Strategy and business
around plan as common goal
common
direction
Behaviors • Top team not communicating • Top team decisions are systematically and
consistent messages to wider consistently communicated to direct reports
organization and cascaded as appropriate to allow fully
• Top team not encouraging informed management activities
participation or incorporating • Employees interact effectively with senior
input from wider organization managers to share ideas and contribute to
direction of the organization
Mindsets • I see us as running our own • I see us as the leaders of a united

businesses rather than TransportCo with the common goal of running
running TransportCo an integrated transport system
• I think our blame culture • We and our employees collaborate across
keeps us from working businesses and functions to effectively deliver
together more effectively an integrated transport system
23
THEME TWO – EMBEDDING COORDINATION & CONTROL THROUGHOUT

THE ORGANIZATION TRANSPORTATION COMPANY CASE STUDY
From… To…
Outcome • Unclear roles and • Clear roles and responsibilities for top
responsibilities team members and their respective teams
• Performance management • Performance management contracts used
targets disconnected from effectively to support delivery of strategy
overall strategy and not • Comprehensive and integrated system of
supported by direct management processes in place to
consequences for under/over support top team activities
performance
• Top team not supported by
adequate management
Embed
processes to deliver
coordination
and control
throughout Behaviors • Little encouragement by top • Top team members role model
organization team of collaboration among collaboration among themselves and
businesses and functions actively encourage collaboration
• Top team participates in and throughout organization
accepts ineffective • Top team engages in and continuously
management processes shapes new and effective management
processes
Mindsets • There’s no real consequence • I am accountable for performance and results

for me if I perform well or poorly • I see how decisions are made and I am an
• I don’t really understand how active contributor to the process
decisions are currently made,
so I just go along with the
process as it stands
24
THEME THREE – DEVELOPING CAPABILITIES TO DELIVER

TRANSPORTATION COMPANY CASE STUDY
From… To…
Outcome • Top team lack key skills (e.g. • Top team has skills to interact as a high
direction setting and performing team
interpersonal) to operate at • External skills used to complement
full potential increased internal leadership capabilities
• Over-reliance on external
skills
Behaviors • Top team members • All members of the top team able to
demonstrate variable skill in consistently engage in effective
Develop using existing tools effectively management processes
capability • Top team members use • Top team members are aware of and able
to deliver different leadership styles to use a range of leadership styles
inappropriately causing lack of effectively in different contexts
clarity and cohesion
Mindsets • I always have to speak • I trust others to take the lead because I
because other people aren’t know they are well prepared
prepared for our meetings • I feel discussions are well balanced and
• I never get the chance to well moderated and I can contribute
speak or I engage ineffectively freely
because other people • We hold challenging debates without
dominate the floor people reacting defensively
• I’m scared to challenge in case
I’m seen as being antagonistic
25
The Influence Model was used to identify a set of actions aimed at closing existing performance gaps
and bringing about the desired changes
INTEGRATED INFLUENCE MODEL TRANSPORTATION COMPANY CASE STUDY
• Top team sponsors and resources

cross business best practice
sharing initiative
• Top team members establish
coaching relationships with
subordinates (e.g., regular • Quarterly round table discussions
meetings) introduced for Top team to develop and
• Top team holds regular visible monitor Common Transport Strategy
meetings on direction and • Top team workshops held on story
performance development/ communication around
Role-modeling Fostering strategy and change
• Top team members establish
regular follow-on
understanding and • Top team coaches direct reports on
communication/review sessions conviction story development/ communication
with their teams on • CEO holds biannual one on one
– TransportCo strategy & progress meetings with top team to discuss
– Implications for/role of strategy and performance contracts
Business/Function
Mindset
and behavior
• Top team is coached in key skills shifts • Top team defined to take key strategic
(e.g. interpersonal, leadership and policy decisions
styles) Developing talent Reinforcing with • Effectiveness of key management
– One on one sessions, 360° processes improved (e.g., specific
and skills formal mechanisms monitoring of time and calendar)
feedback
– Workshops on styles • Protocol developed for communicating
• Top team reviews roles of team and top team decisions to direct reports
of individual members to: • Top team members include high
– Reprioritize activities (e.g., match potential employees in key meetings/
skill sets with critical tasks) committees/ projects
– Reallocate talent and skills to key • Clearly defined performance contracts
areas, as well as provide for job instituted for top team members,
rotation and skill building incorporating specific consequences
– Make decision making process for over/ under performance
explicit and understood
26
FINANCIAL SERVICES GROUP CASE STUDY – SUMMARY
• Large regional bank in Asia-Pacific region, but poorest performing in home

Situation country. High-risk portfolio with exposure to Asia and mid-East.
• Highest cost-income ratio, poor customer satisfaction and consumer brand.
• Low staff moral with decision-making considered slow and cautious.
• Strategic shift to improve performance was driven by the new CEO

Mandate for • His aim was to reposition the bank as a lower cost, less risky business and to
change create a new performance momentum by driving specialist BUs rather than
remaining a generalist bank.
• Initial diagnostic using surveys, deep structure interviews, a review of the

Themes for performance systems and top team work, showed significant performance gaps
change between the current and desired profile of the organization. Five key themes
were identified:
- Develop people
- Create openness and trust
- Foster interdependency (collaboration)
- Focus on customers
- Foster growth
Designing
effective
• The team developed an Influence Model for each theme. These were then pulled
together into an integrated Influence Model
actions
27
THEME ONE – DEVELOPING PEOPLE FINANCIAL SERVICES GROUP CASE STUDY
• Leadership actions
– Included values dimension in the
CEO evaluations of top 100
• Opinion shapers
– Trained storytellers to tell the story
in their environments using the
visual representation provided on
the corporate intranet • Story development
– Used repeated exposure to story – Developed basic story around strategy and
and peer pressure to persuade 5 core values in top team workshops
potential blockers Role-modeling Fostering – Encouraged BUs to come up with own
• Interactions understanding and versions of the story in high performance
– Used facilitated workshops with workshop days
cross-BU and cross-function conviction • Story delivery
participants to increase levels of • Communicated changes and
trust and collaboration, and create a enhancements to HR processes
sense of interdependency (e.g., – Leaders shared 360º review outcomes with
personal transformation, trust staff to tell story of own leadership journey
exercises) Mindset
and behavior
• Talent upgrading shifts • Rewards, recognition, and consequences
– Hiring: Increased graduate intake, – Established calibration meetings in which
Introduced requirement that staff managers agree in advance what
must have college education to
Developing talent Reinforcing with performance management scores mean in
become manager and skills formal mechanisms rating their people
– Retaining: Introduced internal job – Made remuneration process more
market for everyone with tenure >1 transparent by making ranking known to
year, Established program focused employees; enabled managers to have
on learning and networking for star “hard conversations” based on facts
performers – Established bottom 5% rule to remove
• Learning underperformers
– Training: Provided training for • Information systems
managers on coaching and – Created internal job market website
conducting open and honest – Introduced e-enabled tools that support line
performance and development managers in delivering meaningful,
discussions, Developed e-MBA effective, and efficient performance review
program in conjunction with feedback
University for staff
– Action learning: Used management
workshops to hone people skills
(e.g., executive coaching on
providing feedback)
28
THEME TWO – CREATING OPENNESS AND TRUST FINANCIAL SERVICES GROUP CASE STUDY
• Story development
– Included “earn the trust of the
• Interactions community” amongst the 5 core values
– Used facilitated workshop program • Story delivery
for the top team, significant portion – Told story in transparent way to
of which was focused on Role-modeling Fostering external forums, analysts etc
encouraging trust, openness, and understanding and – Used consensor and interactive
readiness to dissent conviction keyboard tools in senior team
– CEO revealed his 3 major workshops to encourage open
weaknesses from 360º feedback discussion and dissent
in interview with press – Tied all communications of business
decisions to values
Mindset
• Learning and behavior • Organization structure
– Action learning shifts – Increased transparency through
– Used targeted exercises in top delayering
team workshops, such as • Rewards, recognition, and consequences
Developing talent Reinforcing with
-Set up trust framework and – Created consequences through
encouraged self-rating against it by and skills formal mechanisms
remuneration systems for top team
the participants, followed by sharing
members not living the values
perspectives in pairs on each
element
- Held group discussions on overall
strengths/ weaknesses of the team
using dots-on-chart exercise (green
for strength, red for weakness)
- Used interaction improvement
exercises
29
FINANCIAL SERVICES GROUP CASE STUDY

THEME THREE – FOSTERING INTERDEPENDENCY • Story development
– Developed basic story in top team workshops
• Leadership actions around direction and values, Included “lead and
– Used “walk before you talk” approach inspire each other” as one of the 5 core values,
which required top team and direct – Encouraged BUs to come up with own versions
reports to undergo workshop program of the story in workshops
first • Story delivery
• Opinion shapers – Used workshops and visuals to deliver story
– Trained storytellers (selected change “through osmosis, not big bang”, e.g.,
agents from all levels) to tell the story in introduced an e-based visual representation of
their environments using the visual the corporate story to communicate all the
representation provided on the corporate elements of the story (e.g. long-term goals, BU-
intranet specific programs),
– Used repeated exposure to story and Role-modeling Fostering – Used 360º peer reviews and workshops to
peer pressure to persuade potential measure understanding of story (e.g., “taking a
blockers
understanding and stand” exercises required participants to talk
• Interactions conviction about changes they will make based on the
– Used facilitator workshops with cross-BU transformation workshop),
and cross-function participants to – Reinforced delivery: Each participant receives
increase levels of trust and collaboration, diploma and key card with 5 top values only
and create a sense of interdependency after attending relevant workshops, Tied all
decision communications to values, e.g.,
Mindset “According to our value of…, we plan to…”
and behavior
shifts • Organization structure
• Learning – Atomized the organization by creating 15+
– Action learning: Held series of specialized BUs with significant autonomy, but
workshops and modules which to date Developing talent Reinforcing with guided by “One Bank” philosophy
involved over 2,000 of 20,000 and skills formal mechanisms – Increased transparency of performance
employees (includes all senior perceptions from the market to specialized BUs
management) to promote mindset and (e.g. true segment reporting) and higher profile
behavior shifts in a collaborative for BU leaders (e.g. photos on results pages)
environment, Developed management • Targets and metrics
leadership skills in workshops (e.g., – Increased transparency through monthly
executive coaching) performance reporting by BUs
• Management processes
– Tied decision-making process to the core
values
– Established allocation of funds through BU
bidding system
30
THEME FOUR – INSTILLING A GREATER CUSTOMER FOCUS

• CEO spends a day a month working • Included “put our customers first” as the
in a bank branch – ‘be a concierge for
Role-modeling Fostering first of the 5 core values
a day’ program instituted for senior
leaders understanding and • Used presentations and pilot frontline
conviction workshops to communicate and embed the
• CEO publicly offers to buy rural
branches when rival announces their theme
closure – tells media this is to “live up • Held landmark conference for top 100 in
to our values” of putting customer first personal banking BU including video of
customers talking about the bank
Mindset • Refer to branches as ‘stores’
and behavior
• Instituted sales effectiveness program shifts • Introduced “quasi-franchise” approach to
to build business planning and customer branch districts to improve local autonomy –
acquisition skills in frontline districts moving to ‘200+ P&Ls’
• Planned and executed as local Developing talent Reinforcing with
• Changed remuneration for frontline from
initiatives to promote local ownership of and skills formal mechanisms transactional to total customer profitability
issues model
• Introduced CRM process to deliver planning
information to the frontline in a timely fashion
31
THEME FIVE – FOSTERING GROWTH FINANCIAL SERVICES GROUP CASE STUDY
– Included “perform and grow to create
value for our shareholders” as one of
the 5 core values
Role-modeling Fostering • Story delivery
understanding and – Introduced an e-based visual
• Interactions conviction representation of the corporate story to
– Used facilitated workshop communicate all the elements of the
program for the top team, story, including long-terms goals, BU-
significant portion of which was specific programs, etc.
focused on developing “AND” – Tied all decisions communication to
mindset to underpin growth Mindset values
• Learning and behavior • Targets and metrics

– Action learning shifts – Established specific/tailored “perform”
• Used targeted exercises in top and “grow” set of objectives for each
team workshops to develop Developing talent Reinforcing with specialist Bus; introduced Perform,
"AND" mindsets to underpin and skills formal mechanisms Grow and Breakout scorecard
growth • Management processes
– Introduced BU resource bidding from
the growth pool
• Rewards, recognition, and consequences
– Put higher percentage of pay at risk,
increased bonus potential, and linked to
performance
– Created consequences through
remuneration systems for top team
members not living the values
32
INTEGRATED INFLUENCE MODEL
• Leadership actions • Story development
– Included values dimension in the CEO – Developed basic story around strategy and 5 core
evaluations of top 100 values in top team workshops
– CEO spends a day a month working in a – Encouraged BUs to come up with own versions of
bank branch – ‘be a concierge for a day’ the story in high performance workshop days
program instituted for senior leaders • Story delivery
– CEO publicly offers to buy rural branches – Used consensor and interactive keyboard tools in
when rival announces their closure to“live up senior team workshops to encourage open
to our values” of putting customer first discussion and dissent
• Opinion shapers – Leaders shared 360º review outcomes with staff to
– Trained storytellers (selected change agents tell story of own leadership journey
from all levels) to tell the story in their – Used workshops and visuals to deliver story
environments using the visual representation Role-modeling Fostering – Reinforced delivery
provided on the corporate intranet understanding and • Each participant receives diploma and key card
– Used repeated exposure to story and peer with 5 top values only after attending relevant
pressure to persuade potential blockers conviction workshops
• Interactions
– Used facilitated workshops with cross-BU
and cross-function participants to increase
levels of trust and collaboration, and create a
sense of interdependency (e.g., personal
transformation, trust exercises) Mindset
• Talent upgrading and behavior • Organization structure
– Hiring: Increased graduate intake, New shifts – Atomized the organization by creating 15+ specialized
BUs with significant autonomy, but guided by “One
requirement that staff must have college
education to become a manager Bank” philosophy
• Targets and Metrics
– Retaining: Introduced internal job market for Developing talent Reinforcing with – Established specific/tailored “perform” and “grow” set
everyone with tenure >1 year, Established
program focused on learning and networking and skills formal mechanisms of objectives for each specialist BU
for star performers – Increased performance transparency through new
• Learning monthly BU results reports and higher profile for BU
– Training: Managers taught how to improve leaders (photos on results pages)
coaching and conduct open and honest • Rewards, recognition, and consequences
– Created remuneration consequences for top team
performance appraisals
– Action learning: Held series of workshops and members not living the values
– Established calibration meetings in which managers
modules which by April 2002 have involved
agree in advance to what performance management
2,000 of over 20,000 employees (including all
scores mean in rating their people
senior management) to promote mindset – Made remuneration process more transparent by
shifts in a collaborative environment making ranking known to employees; enabled
managers to have “hard conversations” based on
facts
• Information systems
– Created internal job market website
– Introduced e-enabled tools that support line managers
in delivering meaningful, effective, and efficient
performance review feedback
33
UK PETROLEUM COMPANY CASE EXAMPLE
• Role modeling of CEO in • Focus on elephant field strategy

performance reviews Role-modeling Fostering • Focus on agreed KPIs
• Role modeling of peer group understanding and • Focus on near term performance
behaviors, especially the conviction in reviews
leadership role of the peer
group convenors
Mindset
and behavior • Initial change to the asset based
shifts model
• Significant effort devoted to
building general • Developing peer groups
Developing talent Reinforcing with • Evolution to BSSs
management skills in new and skills formal mechanisms
BULs • Change to performance
– Formal training programs management processes
– Peer support • GO teams
– Coaching from senior
managers – especially
GVPs, & through the
performance
conversations
• Skills and capabilities
developed internally, not
bought in from outside
34
US PETROLEUM COMPANY CASE EXAMPLE 1/4

– The CEO, a high-performing executive of the
parent company, agrees to take on
underperforming California assets, but only as
the CEO of a stand-alone business
• Convinced that the new company needs to
be free of the bureaucracy of the parent
company and have complete autonomy to
act, he makes case for change
– New vision to “become the leading oil, gas and
resources company in California”
• Orchestrates acquisition of E&P unit of a
Role-modeling Fostering competitor arguing that consolidation in the
understanding and industry and the difficulty of turning a profit
conviction as a stand-alone business in California
means the companies would be better off
together
– With the addition of the acquired E&P unit, the
new corporate mission is to “profitably grow the
value of the business by 1-2% EVA per year”
Mindset – New core values promulgated to build a
and behavior stronger performance ethic in the new
organization:
shifts • Being a part of something special
• Passion for learning and improving
Developing talent Reinforcing with • Being accountable to each other
• Founded upon honesty, integrity, respect
and skills formal mechanisms • Bias for action
• Story delivery
– After each improvement, performance targets
ratcheted up again to reinforce message of
creating a “winning” organization
– Teams formed to create the organization
design and identify potential value creation
opportunities and focus the
• The teams helped communicate the need
for the merger and a smooth transition to a
united company
• Teams spearhead the effort to achieve the
new mission, vision and live the values
– Included line organization in sub-teams to
identify close-in opportunities and contribute
resources to evaluate
35

Targets and metrics
• New, clear operations KPIs developed and cascaded down to subunits
and teams – gives them clear targets, goals and metrics against which to
manage
• Adapted Balanced Scorecard framework as key performance
management tool
• New transparent and very public performance feedback systems:
Rigorous business review meetings with open forums for discussion, Unit
results against targets displayed on bulletin boards throughout the
organization
• Rewards, recognition, and consequence management: Initiated new
compensation system directly tied to performance against balanced
scorecards
• Reengineered business processes to achieve further capital and fuel
reductions
Role-modeling Fostering – Governance system adapts new, tighter operations and capital
planning process and HR management
understanding and • Mergers lead to restructured organization
– Major restructuring led to 150 job cuts
conviction • An additional 90 positions were targeted for elimination in 1998

– Redundant management positions were cut and all employees’ roles
are redefined within their team and organizational context to ensure
accountabilities
– Company discards previous organization design in favor of one that
integrates construction, drilling and purchasing functions to better
coordinate processes and personnel
– New operations-focused design – over 85% of personnel report to the
COO
Mindset – Interlinking team structure ensures that information is shared across
the surveillance processes
and behavior – Flatter and leaner organization is more focused around process teams
which are tailored to specific life-cycle and other requirements of field
shifts

and skills formal mechanisms
36
understanding and
conviction
• Training
– New training programs instituted to close
skill gaps
– Carefully documented “best practice”
management procedures and Mindset
disseminated knowledge throughout the and behavior
company
shifts
• Skill building
– Formed a strategic development group Developing talent Reinforcing with
to serve as an enabler to achieve
acquisitions and asset portfolio and skills formal mechanisms
management
• Retention
– Joint merger teams closely examined
the company's requirements for level of
work, staffing, and what skills were vital
to keep in-house
– Selection process for new hires
tightened
– Jobs in the new company are awarded
through a careful redrafting of job
descriptions and individual evaluation
process
37

• Leadership actions
– CEO provided the vision and
inspirational leadership
• Cut the cord to parent company
and rallied his team
• Demonstrated a highly energetic /
roll-up your sleeves style, going to
great lengths to champion his new
vision
• Dogmatic on accountability and
follow-through Role-modeling Fostering
– Top team members of merged understanding and
company follow CEO's lead and
demonstrate commitment to promote conviction
openness and drive to win
• Spearheaded changes in each
asset to meet cost reduction,
synergy and growth objectives
• Instituted open forums and public Mindset
performance feedback reports and behavior
within their departments/ assets
• Ratcheted up performance goals shifts
each time they were achieved
• Established joint teams to design and skills formal mechanisms
merged organization
– The joint merger teams were staffed
by managers at all level and in all
functions
• Forced to implement their own
tough cost-reduction initiatives
• Employees from different
businesses or markets work
together on the integration plan
and communicated it to their peers
38
ELECTRIC UTILITY CASE EXAMPLE

– Developed corporate story around the
4 imperatives
• Key element “this is what we are
about”
• Missing dynamic elements to
• Leadership actions create burning platform
– Top team demonstrated visible • Story delivery
focus on Wall Street commitments – Created extensive communication
– Tom team evaluated using the
campaign (e.g., newsletter with the
new people review system Role-modeling Fostering CEOs’ perspective on the progress,
– BU leaders demonstrated varying understanding and brochures with theme of the month)
levels of commitment – for those
who demonstrated real
conviction – Asked each BU head to take part in
the process and cascade the
commitment the message was
very powerful and personal (e.g., imperatives down in KPI form
this is how I am personally • Management processes
affected) – Created leadership committees with all
Mindset stakeholders at the same table
and behavior • Targets and Metrics
– Developed new scorecards, targets and
shifts
metrics tying back to the 4 imperatives
• Talent upgrading – Made changes to the metrics based on
– Hiring Developing talent Reinforcing with value-driver analysis for each BU
• Acquired external talent from • Performance reviews and consequences
growth industries to create new
and skills formal mechanisms – Developed new competency model to
growth include BU results and leadership
• Put in place aggressive recruiting characteristics
processes – Established review processes where they
• Agreed to remove the bottom 3- were missing (e.g., distribution, office
10% annually services)
– Replacing – Developed a set of evaluation tools –
• Learning incorporating new KPIs and competencies
– Training in people review forms and templates
• Trained HR managers to run and – New consequences for under performers –
orchestrate employee evaluations asked to leave if no improvement within a
• Trained staff involved in auditing probation period of 3 to 6 months
and tracking metrics
39
UK RETAIL BANK CASE EXAMPLE

– Establish CEO as change Role-modeling Fostering – Build story on themes that lead to
champion understanding and compelling vision
– Appoint cost czar conviction • Story delivery
– Establish 18 month, theme- – Cascade story deep into business
based action plan units
• Interactions – Encourage CEO to use events to
– Instill "on-board or out" relate back to story
philosophy within top team Mindset
and behavior
• Talent upgrading shifts • Organization structure
– Hire new top team members for – Lean out center roles
key roles • Targets and metrics
– Reinvest in recruiting to source Developing talent Reinforcing with – Create cascading metrics
new talent at entry levels and skills formal mechanisms • Management processes
– Establish front-line retention – Set common processes
program for personal bankers • Business processes
• Learning – Centralize where possible
– Train on value-based • Rewards & consequences
management – Increase variable pay
– OD effort on shared values – Align compensation with group
– Train managers on performance targets
feedback – Differentiate employees'
compensation by performance level
– Integrate systems
40
ASIA PACIFIC BANK CASE EXAMPLE 1/3
From . . . • Add new corporate value around

• Our company performs as well as it’s going to accountability for costs
• I’m doing my job
• CEO personally approves purchases • If we cut more costs, we’ll be hurting our effectiveness • Hold series of top team workshops to
higher than $100k develop story on cost/operating
• Each BU head identifies 5 “opinion improvement (what is happening, why,
shapers’ and has periodic meetings and what it means for the organization)
with them to update them on what is
• Hold all-hands town-hall meeting to
going on; also encourages them to Role-modeling Fostering present the story and have Q&A; repeat
pass on to colleagues
• Eliminate executive dining room
understanding and on bi-monthly basis to update
• CEO and rest of top team each call 5- conviction • Have each manager hold a short one-
10 managers per week to inquire on on-one with each of their subordinates
progress on budget, challenge unit to explain impact and implications of
performance, and support changes on individual
improvement efforts
Mindset
and behavior
• Incorporate “cost consciousness” into shifts
360º feedback
• Hold interactive sessions in each • Delayer the top 5 management levels
unit/function to brainstorm cost
Developing talent Reinforcing with • Create a cross-functional and divisional “idea
and skills formal mechanisms committee” and task with coming up with cost
reduction ideas using best practices
reduction ideas on on-going basis
from similar units in other organization
• Hire “cost czar” • Put in place a “tough” budget challenging
process that every BU goes through every
• Bring in new people from organizations
quarter
that are known for cost efficiency
• Remove managers who don’t achieve • Establish KPIs for operating and cost
performance and integrate into company
budget and new KPI targets
scorecard; cascade to all managers in
performance contracts
• Put in place a “3 strikes you’re out”
To . . . consequence management process
• We can improve and we owe it to our shareholders to do it
• I am accountable for performance and results
• We can be creative and strategic in finding improvement
opportunities; they can make us more effective
41
From . . .
• Our company performs as well as it’s going to • CEO and top team develop story on
• I’m doing my job cost/operating improvement (what is
• If we cut more costs, we’ll be hurting our effectiveness happening, why, and what it means for
• CEO personally evaluates the organization)
performance against budget for top • Have each BU head, and then each
100 Role-modeling Fostering manager within a BU get their
• Identify influencers/opinion shapers understanding and subordinates together to discuss how
in each BU; invite them to changes will affect the BU/unit specifically
conviction and answer questions
governance forum on a rotating
basis • Send monthly cross-company progress
• CEO sends memo to organization update emails
articulating what he will be cutting • Put up a TV monitor showing progress on
from his own budget operating performance in the cafeteria
Mindset
and behavior • Make support functions/shared services
• Hold action learning workshops at shifts into profit centers that BUs pay for
the end of which each group comes service; allow BUs to choose whether
up with the 10 tangible things they Developing talent Reinforcing with they buy services internally or externally
will change to improve operating and skills formal mechanisms • Create a new governance forum with the
performance and how they will do it top 25 executives; have them meet once
• Link promotions to achieving a month to exchange information, make
cost/budget targets decisions, and keep momentum
• Rotate managers who have • Move to economic profit metric as key
achieved good cost results to units measure of company performance;
that have a higher cost structure cascade to all units and managers
• Institute regular training for • Increase variable compensation for
managers to learn about new To . . . managers and base it in large part on
advancements in operating • We can improve and we owe it to our shareholders to do it achieving operating/cost targets
efficiency and teach them how to • I am accountable for performance and results • Create on-line forum for operational best
apply • We can be creative and strategic in finding improvement practice sharing
opportunities; they can make us more effective
42

From . . .
• Holding people accountable isn’t worth the ‘upset’ it creates
• Raising issues is better than raising solutions
• Avoiding failure is success
• I am not responsible, the system does it to me
• Someone else always has to consider the matter before • Add ‘closed loop’ and ‘count on me’
the decision is made jargon into corporate story and introduce
new values around ‘empowerment &
• CEO personally evaluates accountability’
performance against key Role-modeling Fostering • Communicate to everyone the new
accountabilities for top 35 GMs understanding and accountability model, why it is happening
each quarter
conviction and what it means
• Hold top team session to realign its • CEO shares his accountabilities and
accountabilities
personal stories with two layers down and
• Post safety, quality service and others emulate
throughput record at all plant
entrances Mindset
and behavior • Atomize the business into more natural
• Incorporate ‘accountability’ shifts performance cells
behaviors into 360º feedback • Map the new decision rights for each
• Roll out action learning workshops Developing talent Reinforcing with business process using RASCI—reset
on accountability spending authorities
and skills formal mechanisms
• Hold special training for managers • Reset KPIs and targets and record
on holding people accountable commitments using performance
• Replace managers who fail to contracts
deliver • Clarify positive and negative
consequences with performance
management grid
To . . .
• We hold people accountable, it strengthens us
• I want to get things done –I will drive solutions to issues
• The far side of failure is success
• I am part of creating the system and am responsible for
influencing it
• I am accountable to make decisions and ‘get on with it’
43
PRICING CASE EXAMPLE
• Obtain buy-in from management

team on the importance of pricing
• Have senior management in driving profitability and ability
communicate the importance to manage price upwards
of pricing strategy • Clearly communicate pricing
Role-modeling Fostering objectives and everyone’s role
• Have senior management
understanding and
actively and regularly solicit • Show the organization that the
conviction impact is real and substantial
feedback from frontline
• Expect top team leaders to • Communicate enhancements to
visibly engage in pricing pricing strategy in
activities monthly/quarterly meetings
Mindset
and behavior
shifts
• Train managers and sales • Create pricing team with authority
reps in customer-specific Developing talent Reinforcing with to monitor and influence all
"bottom-up" pricing and skills formal mechanisms pricing decisions
initiatives, e.g., • Add specific pricing metrics and
– Front-line transaction price set targets against them
management • Link senior managers’ incentives
– Effective product/ to pricing results
customer mix • Build transaction-based
management information monitoring system
– Price negotiation • Institute rapid knowledge-sharing
techniques mechanisms and processes to
• Hold workshops with senior facilitate “real time” pricing
managers to discuss pricing decision support
strategies and processes
44
CONTENTS
• Introduction
• Appendix
– Client Case Studies
• Transportation company
• Financial services group
• UK Petroleum company
• US Petroleum company
• Electric Utility
• UK Retail Bank
• Asia Pacific Bank
• Pricing
– Case study of Influence Model as diagnostic tool
• Nissan
• BAE Systems
• Further readings and contacts
45
ENERGY COMPANY CASE EXAMPLE – INFLUENCE MODEL AS PART OF

DIAGNOSTIC
Overview of problem-solving process
End-products
• Interview notes from 58 interviews
Synthesis
• Summary diagnostic
5-whys around
Phase I:
focused questions • Root causes
Diagnostic,
inquiry and
scoping
Clustering
• Intervention areas and design criteria
Causal loops • Holistic, complementary interventions
Phase II:
Designing
Interventions
46
DIAGNOSTIC OVERVIEW QUESTIONS

ENERGY COMPANY CASE EXAMPLE
• Where is the next performance prize for the organization? What are the
Background barriers to capturing it?
• Is it important to look at performance management processes at the
moment? Why or why not?
• Is there sufficient energy and excitement?
Conviction and • Does the organization have a clear and shared sense of direction and
purpose?
understanding • Are the performance targets of the organization high enough? Too high?
• Are the performance aspirations of the organization exciting?
Behaviors and • Is there sufficient challenge and support in the organization?

• Is there the right amount of transparency in the organization?
interactions • Is teamwork effective in the organization?
Structures and • Does the organization have the right structure?

• Do the performance management processes facilitate good performance?
processes
Skills and • How is the organization building the core capabilities that it needs to be
distinctive in the market?
capabilities
N.B. Each question is a trigger
with greater depth behind –
filled a 90 minute interview
47
SUMMARY DIAGNOSTIC – THE FIRST INTERVENTION

Context and values Behaviors and interactions
Clear high-level strategy Great site teamwork

Strong performance culture Target driven motivation
Thoughtful environment
 Strategy implications unclear  Challenge process has
 Short-term performance focus broken down
 Overly self-reliant  Weak at execution and
 Executors are not rewarded closure
 Insufficient clarity on managing  Lack of federal behavior
interfaces with other units  Performance is spun
Skills and capabilities Structure and processes
Good fundamental BU model has been empowering

business skills Burdensome data processes with
no feedback
 Limited deep functional  Reduced clarity around space and
expertise accountability
 Poor people  Shared responsibility reduced
development processes  Haphazard one-size-fits-all
 Focus on explaining past approach
performance
48
A SERIES OF FOCUSSED QUESTIONS

Weaknesses from diagnostic Focused questions
Strategy implications unclear 1. Why don’t we have effective and consistent priorities?
Reduced clarity around space and accountability 2. Why have space and accountability become less
Shared responsibility reduced clear?
Challenge process has broken down 3. Why can’t we have honest conversations about
Performance is spun performance?
Executors are not rewarded

Weak at execution and closure 4. Why are we weak at execution and closure?
Burdensome data processes with no feedback 5. Why do we have burdensome data processes?
Haphazard one-size-fits-all approach 6. Why do we take a haphazard approach to
standardization?
Focus on explaining past performance 7. Why do we only focus on past and short-term future
Short-term performance focus performance?
Limited deep functional expertise 8. Why do we have weak people development processes
Poor people development processes that only generate limited deep functional expertise?
Overly self-reliant
Lack of federal behavior
Insufficient clarity on managing interfaces with other units 9. Why are we too inwardly-focused?
49
THE 5-WHY PROCESS DRILLED DOWN BELOW THE SYMPTOMS TO

ROOT CAUSES . . . ENERGY COMPANY CASE EXAMPLE
Summary diagnostic 5-why process Root causes
…
…
Why?
Why? We do not like to say 'no'
Why?
Why?
Why?
There is no consequence of saying yes
Why?
Why? and failing
Why?
Why?
Why? Silent decommitment is tacitly accepted
Why?
Why? behavior
Why?
Why?
Why? We are punished for saying no
Why?
Why?
Why? upward challenge is unacceptable
Why? Open decommitment is not accepted
Why?
Why?
Why?
Why? Saying no to an initiative requires
Why?
Why? significant work
Why?
Why?
Why? It is easier to say nothing than yes or no
Why?
Why?
Why?
It is uncomfortable to say no to data
requests
Silent decommitment is easy and is
tacitly accepted behavior
…
…
50
CONTENTS
• Introduction
• Appendix
– Case Studies
• Nissan
• BAE Systems
51
NISSAN CASE EXAMPLE – CREATING OPENNESS AND TRUST OUTSIDE IN

• Leadership actions – Ghosn begins his tenure as CEO with “active
– CEO Ghosn expects his people to commit to listening” – seeking the opinions of people
every observation or claim they make and sets inside and outside the company to get as much
an example by publicly announcing he would objectivity about the company’s weaknesses as
resign if the major goals of his “Nissan Revival
he could
Plan” are not met within 3 years
– Ghosn revives the company’s flagship sports
– Ghosn quickly realizes that the loss of identity
car to demonstrate that Nissan is rebuilding its is a huge risk for the company and mobilizes
brand and on the road to a full recovery. cross functional teams (CFTs) to develop a
• Cross Functional Teams (CFTs) detailed action plan – the “Nissan Revival Plan”
– Each CFT had two leaders from the executive • Story delivery
committee, but regular members drive the work – The nine CFTs with 10 members and their sub-
and came up with the harsh medicine for
Role-modeling Fostering teams serve as both watchdogs and
Nissan
– CFT members have frontline experience with communicators for the revival plan – explaining
Nissan’s operating problems and credibility
understanding and the necessity for change and projecting difficult
with the rank and file conviction messages across the entire company
• Interactions – Employees recognize that the revival plan is
– Ghosn shows sympathetic ear to employees designed by middle-managers they respect and
who endure hardships at the production level – trust – inside the company it is clear that the
in granting full wage and bonus hikes, he
demonstrated traditional Japanese paternalism
profound changes are meant to preserve
Nissan’s dignity and restore its former glory
by rewarding employees who survived the Mindset
pressure cooker of restructuring
and behavior • Restructure Organization
shifts – To improve transparency and cooperation across
Nissan’s four major divisions, Ghosn eliminates
the regional president posts and replaces them
Developing talent Reinforcing with with 4 management committees chaired by EVPs
in Japan
and skills formal mechanisms – Redefines roles for Nissan managers and
• Learning Renault managers that Ghosn brought with him
– Training so that all had line responsibilities and their
• Mid-level and lower-level employees contributions to Nissan were clear
receive extra training and clear – Ghosn shakes up the top management in a
explanations of how their work fits reshuffle, moving out blockers or those who
into the overall big picture of the failed to meet his targets
• Communications
turnaround – Ghosn institutes a new policy that English – the
– Action learning language of global commerce – will be Nissan’s
• English language training classes official management language
vastly expanded and offered to all • Builds common ground – French and
managers Japanese managers struggle equally to
• To overcome the potential for varying master a language that is not their own
degrees of definitions for important • Edict is like a thunderbolt to management and
concepts, a Nissan team created a serves notice to “old guard” at Nissan to
company English dictionary of 100 shape-up or ship-out
vital words in management with clear
definitions 52
NISSAN CASE EXAMPLE – CREATING A PERFORMANCE ORIENTED

CULTURE OUTSIDE IN
– Ghosn mobilizes cross functional teams
• Leadership actions (CFTs) to develop a detailed action plan –
– CEO Ghosn publicly offers to resign if the major the “Nissan Revival Plan”
goals of his “Nissan Revival Plan” are not met • Working from the inside, the teams help
within 3 years him identify the radical changes that had
– When the revival goals are met a year ahead of
time, Ghosn pushes for an even more difficult to be made and built on the best of
target – the Nissan 180 plan elements of Japanese national culture
• “Complacency is the enemy” • Story delivery
– Ghosn takes a personal interest in selection of – Ghosn uses the middle managers from his
CFT members so he could shape the next CFTs to disseminate the difficult messages
generation of Nissan leaders
• Cross Functional Teams (CFTs) Role-modeling Fostering about the revival plan
– After achieving his goals a year early,
– Drawn from the ranks of middle management, understanding and Ghosn pushes for even greater
CFT members had line responsibilities and fully
understood the harsh medicine of their revival conviction performance improvement with the “Nissan
plan 180” plan – sell an additional 1 million cars
– CFT members had credibility with the rank and and trucks each year, reach 8% operating
file and took some of their own harsh medicine
on cost cutting and downsizing
profit margin and bring automotive debt
down to zero
Mindset • Restructure Organization
and behavior – Ghosn ends the practice of deciding promotions solely
on tenure and age, focusing instead on actual
shifts performance. The fundamental change to Nissan’s
culture is difficult, but sends a clear message to
managers
Developing talent Reinforcing with – Ghosn shakes up the top management, moving out
and skills formal mechanisms blockers or those who failed to meet his targets in a
reshuffle
• Learning • Rewards, recognition, and consequences
– On-the-job – Revamped the remuneration systems to focus on
• High performing managers are performance
– The use of stock options as a form of performance-
promoted over more tenured
based pay is sharply increased – available to only 30
managers and forced to win respect top executives in 1999, by 2002 some 700 employees
of subordinates who are older receive them
• Reengineer business processes - cost reductions
– Cuts supplier costs by 20% by demanding price cuts
from suppliers
– Dismantles Nissan’s reliance on the Keiretsu system of
interlocking cartels
– Engineers are challenged to take costs out of
production by reducing quality standards that were
much higher than competitors
53
NISSAN CASE EXAMPLE – ESTABLISHING SIGNIFICANT AND OUTSIDE IN
SUSTAINABLE COST IMPROVEMENTS

– Ghosn discovers that Nissan has an
enormous cost burden to bear, leaving it with
• Leadership actions dangerously low margins and no profits
– CEO Ghosn publicly offers to resign if the – Mobilizes cross functional teams to develop
major goals of his “Nissan Revival Plan” are a detailed action plan – the “Nissan Revival
not met within 3 years Plan” that focuses largely on cost reduction
– When the revival goals are met a year ahead • Working from the inside, the teams help
of time, he pushes for an even more difficult him build buy-in, motivation and trust in
targets – reach 8% operating profit margin the turnaround plan so it can be achieved
and bring automotive debt down to zero very fast
• “Complacency is the enemy”
Role-modeling Fostering • Story delivery
• Cross Functional Teams (CFTs) – Members of the CFTs disseminate the
– Drawn from the ranks of middle understanding and difficult messages about cost reductions
management, CFT members had line conviction across the entire company
responsibilities and took some of their own – Ghosn personally works hard to convince
harsh medicine on cost cutting and labor leaders that while the rank and file
downsizing would endure some pain, the downsizing of
Nissan would prevent the collapse of the
company and the loss of all its 148,000 jobs
Mindset
• Learning and behavior • Restructure Organization
– Major restructuring leads to the closure of 5 plants
– Training shifts
and cutting 29,000 jobs
• Mid-level and lower-level employees
• Reengineer business processes - cost reductions
receive extra training and clear
explanations of how their work fits into
Developing talent Reinforcing with – Cuts 20% off supplier costs by demanding price
cuts from suppliers
the overall big picture of the turnaround and skills formal mechanisms – Dismantles Nissan’s reliance on the Keiretsu
system of interlocking cartels – despite widespread
fears, the sell-offs fail to damage relationship with
former partners
– Engineers are challenged to take costs out of
production by reducing quality standards that were
much higher than competitors
• Rewards, recognition, and consequences
– In sharp contrast to the other auto companies,
Ghosn agrees to a MetalWorkers union demand
for pay and bonus increases
– Created new “lean manufacturing” operating
system that allows for custom-built cars and trucks
using major components that are delivered to
Nissan factories on a carefully timed schedule
54
BRITISH AEROSPACE CASE EXAMPLE – FOCUSING ON CUSTOMERS

OUTSIDE IN

– Top team formed Group of – Placed customer focus as the top
130 managers to be leaders of corporate value
transformation, and the • Story delivery
Customer Value Team to lead – Communicated corporate story
this aspect of the widely at all levels of the
transformation, and convince organization through a variety of
the group of 130 of the viability forums, e.g.,
of their plan Role-modeling Fostering • CEO forums
• Team visited exemplary • Team meetings
understanding and
customer service • Customer-focus workshops and
companies
conviction brainstorming sessions held with
• Mirrored best practices customers present
• Opinion shapers
– Group of 130 “touched” other
members of the organization Mindset
by providing role modeling and • Restructuring the organization
change champions in their and behavior
– Some BAe divisions, e.g. Military
local environs shifts Aircraft and Aerostructures, are
– Snowball effect ensued realigned around customers
Developing talent Reinforcing with • Targets and metrics
• Learning and skills formal mechanisms – Put in place Customer Satisfaction
– Training Process Model
• Trained employees against • Set service benchmarks
• Applied benchmarked service
the set customer service
standards standards
• Assigned customer personnel to
customers to ensure appropriate
coverage
• Used customer feedback to
ensure all customers received
benchmark service levels
• Rewards, recognition, and
consequences
– Rewarded employees against their
execution on set customer service
standards 55
BRITISH AEROSPACE CASE EXAMPLE – FOCUSING ON PERFORMANCE

OUTSIDE IN

– Top team formed Group of 130 – Used centrally launched and directed
managers to be leaders of change program, Benchmark BAe, as a
transformation, and the corporate story for the entire corporation
Performance Value Team to lead (e.g., replaced BUs individual change
this aspect of the transformation, programs)
develop action plan and convince – Placed performance focus as one of the
the Group of 130 of the viability of top corporate values, and communicated
their plan Role-modeling Fostering widely
• Identified best practices
understanding and • Story delivery
• Mirrored best practices – Cascaded new performance objectives
• Opinion shapers conviction down the organization, tying workgroup
– Group of 130 “touched” other and personal programs to the story at
members of the organization by corporate and BU/function level
providing role modeling and
change champions in their local
Mindset • Targets and metrics
environs
– Snowball effect ensued and behavior – Set cascading goals, targets, and
shifts metrics across the organization
– Eliminated BUs’ ability to select their
• Talent upgrading own performance measures
– Replacing/retaining Developing talent Reinforcing with – Adopted external best practices as
• Completed lay-offs of 60,000 of and skills formal mechanisms benchmarks
127,000 people to achieve
– Measured Benchmark BAe impact
organizational alignment with
against Benchmark scorecard and
renewed focus on core business
values against values scorecard
and skills
• Learning – Set and broadly communicated KPIs for
– Training
all managers using Value Based
• Instituted BEST (Benchmark
Management (VBM)
Executive Skills Training) – a
• Rewards, recognition, and consequence
series of workshops over 18
management
months to expose the top 1500 – Initiated ambitious, high-reward
managers to the skills connected
employee suggestion programs –
to the 5 values
– New profit sharing program awarded all
• Trained employees in
employees an equal allotment of free
appropriate use of performance
shares in BAe if the company exceeded
measures 56
its profit targets
BRITISH AEROSPACE CASE EXAMPLE – FOCUSING ON PEOPLE OUTSIDE IN
DEVELOPMENT
– CEO and all executive directors – Placed people development as one of
have their own Personal the top corporate values
Development Plan (PDP) – Polled employees of the biggest
Interactions divisions comparing results against UK
• Annually updated, the PDPs average and using it as a case for
assess key weaknesses and change
how to address them • Story delivery
– Used peer 360° reviews to Role-modeling Fostering – Communicated story and the
reinforce and track desired understanding and heightened sense of job security
behavior changes conviction throughout the organization
– Continued to use and communicate
regular, issue-driven opinion surveys
• Learning • Organization structure

– Corporate, BU/function level
– Personal Development Plans (PDPs) Mindset • Flattened the “command and control” hierarchy in
• A bold proposal from the People
and behavior favor of employee empowerment
– Workgroup/individual level
Values Team to institute PDPs for
all 46,000 employees was adapted shifts • Formed teams as the dominant unit of working, and
integrated personal development plans into team value
– Used by supervisors and plans
members of work teams for Developing talent Reinforcing with • Rewards, recognition, and consequence management
• Tied 5% of managers bonus to employee satisfaction
career planning and skills
enhancement
and skills formal mechanisms surveys
• Targets and metrics
– Facilitated the creation of – Workgroup/individual level
• Established personal development metrics, including
different behaviors and helped job appraisals
employees find more fulfillment • Defined everyone’s role within their team and
in their work organizational context, and aligned it with the new
– Training value system
• Built systems and methods for new
skills and knowledge methods
• Put in place virtual university, team
leader training
57
BRITISH AEROSPACE CASE EXAMPLE – FOCUSING ON INNOVATION

OUTSIDE IN
– Placed innovation as one of the top
• Leadership actions corporate values
– Formed Group of 130 managers • Story delivery
to be leaders of transformation, – Formed the Innovation Forum, an
and the Innovation and annual 2-day event, to facilitate senior
Technology Value Team to lead management exploration of socio-
this aspect of the transformation, economic trends and BAe responses
develop action plan and convince to them
the Group of 130 of the viability of Role-modeling Fostering – Chairman’s Award for Innovation
their plan understanding and emphasized one-company concept
• Identified external benchmarks and sent the message that BAe values
• Mirrored best practices conviction
brilliant innovation
– Integrated values into processes for
internal transfer of knowledge
• Talent upgrading • Organization structure
– Set up a corporate technology board to spur cross-
– Retaining Mindset divisional technology sharing
• Retained mostly highly skilled people
ready for change as the result of major and behavior – Established Benchmarking and Best Practice
Center to ensure that innovation and knowledge is
lay-offs shifts disseminated across BAe
• Learning
– Training • Targets and metrics
– Established technology plan on corporate and
• Built systems and methods for transfer Developing talent Reinforcing with divisional level setting high-reach, breakaway
of new skills and knowledge methods
(e.g., The Internal Trading Framework and skills formal mechanisms targets
formed to enhance way in which teams – Tasked managers with identifying new products
worked together, supported each other, and solutions, and estimating their revenue
and shared knowledge) potential
– Action learning • Rewards, recognition, and consequences
• Instituted annual 2-day Innovation – Created a corporate Chairman’s Innovation Award
Forum in which senior management to dramatize the need for innovation in all aspects
explores challenges to BAe and of company operations and reward top innovators
potential responses
58
CONTENTS
• Introduction
• Appendix
– Case Studies
59
FURTHER READINGS & CONTACTS
Topic Title Reference/Contact
• The Psychology of Change • can be downloaded from the McQuarterly webpage

Influence
Influence Model
Model Management (McQuarertly)
• The Influence Model: Creating • contact Christina Palme for a copy of this document
Context Specific Initiatives to
Change Mindsets & Behaviors
• Improving Talent Management using • PD Net 612913
the PLI Influence Model - Case
Examples
• Inspiring Performance Leadership: • PD Net 615403

Performance
Performance Creating an Organization ‘Built for
Leadership
Leadership Performance’
• Performance Leadership- Short • PD Net 613737

Introduction
• The Culture Cookbook: How to • PD Net 615042

Improve Business Performance
through Culture
For more information on PL, contact:

Europe – Matthias Beck, Principal (MUN), Colin Price, Director (LON), Bill Schaninger, Organization Practice Expert (LON), Elizabeth
Mohr, Organization Practice Specialist (LON), Christina Palme, Senior Research Analyst (DUS)
North America – Richard Elder, Principal (DCO), Michal Kisilevitz, Associate Principal (DCO), Paul Flatin, Practice Knowledge Specialist
(DCO)
Asia Pacific – Michael Rennie, Director (SYD), Tom Saar, Director (SYD), Priya Ahuja, AP Organization Practice Manager (SYD), Matt
Guthridge, Organization Practice Specialist (SYD), Elizabeth Morris, Senior Research Analyst (SYD), Katty Dos Santos, Senior Research
Analyst (SYD)
Note : For further information please refer to the PLI section on the Global Organization and Leadership Practice website 60
FURTHER READINGS – DEVELOPING TALENT AND SKILLS

• Recruiting: Best Practices in Human Resource Management • PD Net 511990

Hiring
Hiring
• The War for Talent: Chapter Four - Rebuild Your Recruiting Strategy • PD Net 603138
• Strategic Redesign of Employee Value Proposition • PD Net 612914
• Moving on C Players: Best Practices in Human Resource Management • PD Net 512021

Replacing
Replacing
• HBS - A New Game Plan for C Players • PD Net 603146
• HBS - A Market-Driven Approach to Retaining Talent • PD Net 512778

Retaining
Retaining
• HBS - Employee Retention: What Managers Can Do • contact Christina Palme for a copy of this article
• How Executives Grow (McKinsey Quarterly) • PD Net 512313

On-the-job
development • Personal Development: Best Practices in Human Resource Management • PD Net 511994
• Training: Best Practices in Human Resource Management • PD Net 511998

Training
Training • Perspectives on Corporate Learning in the New Economy • PD Net 512010
• Performance Management and Frontline Mobilization • PD Net 615260

Action learning
learning
• Action Learning Guidelines • contact Christina Palme for a copy of this document
Note: For further information please refer the People Performance Management section on the Global Organization and Leadership Practice
website 61
FURTHER READINGS – ROLE MODELING

Leadership
Leadership
actions
actions
• Enabling Corporate Transformation • PD Net 512207

Opinion
Opinion Shapers
Shapers in a Post Merger Environment
• Real Change Leaders • PD Net 512162
• PD Net 512309
• Improving Top Team Performance -
Interactions
Interactions CST Toolkit
• Teamwork at the Top • PD Net 600379
• Top Teams That Get Results • PD Net 600835
Note: For further information please refer the following sections of the Global Organization and Leadership Practice website: Change Roles,
Leadership Teams 62
FURTHER READINGS – FOSTERING CONVICTION AND UNDERSTANDING

Story
Story • A Challenge for New CEOs: Telling • PD Net 512168
development
development a Great Story
• Best Practices in Communicating • PD Net 512195
Changes
• Dialogue-based Planning:
Story
Story delivery
delivery Cascading Strategy into Action • PD Net 604117
• The Cascadable Story: A Writer's
Guide for Use in Dialogue-based • PD Net 616619
Planning
Note: For further information please refer the Change Communications section on the Global Organization and Leadershio Practice website 63
FURTHER READINGS – REINFORCING WITH FORMAL MECHANISMS

Organization
Organization • The Formal Organization Design • PD Net 601527
structure
structure Handbook
• Streamlining Decision-Making • PD Net 512755

• Making Value Happen - Defining • PD Net 512836
Value Drivers
Targets
Targets and
and
metrics
• Making Value Happen - Managing • PD Net 512900
metrics
Business Performance
• Key Performance Indicators (KPI) - A • PD Net 512367
Working Guide
• Effective Top Management • PD Net 512593

Management
Management
processes
processes • Business Disaggregation and • PD Net 512143
Corporate Center Design to Achieve
Superior Performance (Appendix)
Business
Business • The Business Process Redesign • PD Net 511039
processes
processes Almanac - How to Make Overhead
Functions More Effective and
Efficient
Rewards,
• Financial Incentives - A Risky • PD Net 603178
Rewards,
Business
recognition
recognition &
&
consequences
consequences • Making Value Happen - Motivating • PD Net 444CFS
People for Performance
• Performance Goals and Evaluation: • PD Net 512009

Best Practices in Human Resource
Management
Information
Information • please turn to BTO for Information
systems
systems on this topic
Note: For further information please refer to the following sections of the Global Organization and Leadership Practice website: Organization
Design, Business Performance Management Top Management, Compensation and Incentives 64

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CONFIDENTIAL

Introduction to the Influence Model

Elizabeth Mohr, Christina Palme

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

THE INFLUENCE MODEL: INTRODUCTION

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

THE INFLUENCE MODEL AND PERFORMANCE LEADERSHIP

Performance Profile Influence Model Tailored

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

THE INFLUENCE MODEL: CHANGE LEVERS

Developing talent and Reinforcing with formal

THE INFLUENCE MODEL: CHANGE LEVERS AND LEVER CATEGORIES

Lever categories Lever categories

• Leadership actions Role-modeling Fostering • Story development

LEVER CATEGORIES – ROLE MODELING

LEVER CATEGORIES – FOSTERING UNDERSTANDING AND CONVICTION

LEVER CATEGORIES – REINFORCING WITH FORMAL MECHANISMS

LEVER CATEGORIES – DEVELOPING TALENT AND SKILLS

• Evaluate proposals from external consultants

Replacing • Replacing low performers • Replace underperformers based on annual review

Training • Instructing on specific knowledge or • Build a “corporate university”

TESTING ACTIONS FOR “GOODNESS OF FIT”

Influence model initiatives

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

THE INFLUENCE MODEL AS DIAGNOSTIC TOOL

• Such diagnostic/surveys can be used at various stages of an engagement. Practitioners recommend

• Contact: Renate Osterchrist, Specialist (MUN)

THE INFLUENCE MODEL AS DIAGNOSTIC TOOL – EXAMPLE QUESTIONS

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

THE INFLUENCE MODEL IS BACKED UP BY RESEARCH FROM MULTIPLE

THE INFLUENCE MODEL IS RELEVANT TO PRACTITIONERS

“First, you tell people clearly

Then you discuss how to get

• New organization structure, centered on market segments

If they come up short, you

Sometimes the “ahas” come

from watching others’

THE INFLUENCE MODEL IS RELEVANT TO PRACTITIONERS

• 2-day meetings to review • Customer surveys – IBM

• The Influence Model and Performance Leadership

• Overview of the Influence Model

• The Influence Model as Diagnostic Tool

TRANSPORTATION COMPANY CASE STUDY – SUMMARY

• Public sector organization responsible for transportation in large European city.

THEME ONE – ALIGNING THE ORGANIZATION AROUND A COMMON

Mindsets • I see us as running our own • I see us as the leaders of a united

THEME TWO – EMBEDDING COORDINATION & CONTROL THROUGHOUT

Mindsets • There’s no real consequence • I am accountable for performance and results

THEME THREE – DEVELOPING CAPABILITIES TO DELIVER

• Top team sponsors and resources

FINANCIAL SERVICES GROUP CASE STUDY – SUMMARY

• Large regional bank in Asia-Pacific region, but poorest performing in home

• Strategic shift to improve performance was driven by the new CEO