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Leadership Link Between Business & Operational Excellence-GEARS

Cognascents presentation on how to develop and sustain leadership for process safety excellence.
by

Ian Sergo

on 30 June 2011

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Transcript of Leadership Link Between Business & Operational Excellence-GEARS

Our Value Prop What value do we bring? How do we price and execute engagements? We help people and organizations... We leverage our differentiators to:
Strive for business excellence;
Develop leaders;
Facilitate and create strategies;
Manage change;
Improve organizational intelligence;
Improve employee engagement;
Increase profitability;
Achieve and maintain compliance;
Improve decision-making;
Drive behavior consistent with core values. Achieve competitive sustainability... And sharp business acumen. Through aggressively-priced business and engineering consulting services... That leverage our rare combination of technical problem-solving skills... We approach each engagement as though it were the first and only engagement in our portfolio.
We price for high utilization of high-quality talent on a fixed-price basis.
Our clients enjoy a single point of contact with a professional and competent project manager. Business consulting services Leadership training;
Leadership development programs;
Employee engagement surveys;
Competitive sustainability suite of surveys (employees, leaders, competitors);
Strategy facilitation;
Work process analysis and development;
Change management consulting;
Data analysis;
Theory of constraints. Engineering consulting services Process simulations;
Process design;
Project management;
Management consulting;
Process safety leadership training;
Process safety management support;
HAZOPs and LOPAs;
Process safety information generation;
Action item resolution;
Process safety management work process optimization. Companies we have performed work for: How do we establish leadership effectiveness and cultural baselines? Competitive sustainability survey;
One-on-one interviews;
Review of corporate collateral. Companies we have sold to, managed and performed work for: Process safety leadership Establish leadership effectiveness and cultural baselines;
Identify individual capacities/capabilities;
Define organization and individual profiles;
Develop profile-specific leadership awareness and/or development program in alignment with corporate strategy;
Apply Find the Wind(TM) leadership framework;
Deliver blended training program;
Follow-up with coaching/mentoring;
Track and measure success of leadership against business excellence criteria. More specifics on pricing We only hire top-notch talent.
Salaries are in the top quartile of the industry.
We also use semi-retired professionals.
Our overhead is extremely low.
We assume 90% resource utilization.
We look to make 15-20% profit. We did say aggressively-priced... We will work with you on pricing.
How about one rate no matter the discipline or level of experience?
How about guaranteed 5% lower rate than competition?
How about open-book/transparent pricing? What is your goal? What is keeping you from achieving your goal? Process safety excellence is the constant application of deep and broad operational integrity knowledge by every responsible entity for every resource.

Process Safety is a behavior ... not a value. The goal of any business is to make money ethically and sustainably. You are not headed towards and/or have not reached business and/or operational excellence. Where does Process Safety come in? The performance process: How do we identify/measure capacities and capabilities? Community involvement;
Emotional intelligence;
Formal training;
Formal responsibilities;
Experience with incidents;
Years in the industry;
Strengths and weaknesses profile;
360-degree perspective;
Self-evaluation performance metrics. Leaders are the source of values (wisdom, humanity, temperance, transcendance) Culture represents our operating envelope and dictates our behavioral norms. It is slow to change and can outlast a leader's tenure. Performance is dependent on leadership, culture, and work processes. Work processes are developed by the culture ... with our biases and behaviors embedded into them. Leadership is the link between Business and Operational Excellence Effective Leaders are the culture of an organization and the culture is an organization's operating envelope. If the integrity of either is compromised, then the organization becomes vulnerable. Effective leaders work tirelessly to preserve personal and organizational integrity. The Big Picture The Find the Wind(TM) Leadership Framework provides a symbol for both Business and Operational Excellence. Through true leadership the gears keep turning and company goals are reached ethically and sustainably. A major focus of Find the Wind is the people. We can only crunch so many numbers and re-write so many work processes before we realize that our focus must return to the people. We need to lead. Laying the Keel Laying the Keel – Centering Leadership
Actions:
ID inconsistencies in values and behaviors
ID strengths and weaknesses
Safeguard blind spots
Implement effective individual development action plan
Invest for succession
Tools:
Rigorous 360° feedback
Personality assessment
Self-study on leadership
Leadership group discussion
Experiential learning focused on leadership
Mentoring and coaching program
Leadership talent assessment matrix and development program Laying the Keel - Operational Excellence

Operational Excellence requires a strong base, an everpresent awareness of people and processes to ensure sound decision making.

Constant awareness requires up to date information and processes. There cannot be an expectation for sound decision making if data is always gathered last minute and hastily reviewed.

This includes knowing your people. Are they struggling? Are they bored? What has happened recently that may affect their performance? Constant awareness.

The fundamentals of the Laying the Keel module build on trust. Trust of data, trust of people, trust of ourselves. You must know yourself before you can trust yourself and you must trust yourself before others can trust you. Effective leaders make time for reflection to stay true to their intrinsic character traits and developed values and behaviors. Preserving the Hull Taking the Helm Steering the Boat Trimming the Sails Knowing Who's on Board Preserving the Integrity of the Hull - Setting/Reinforcing/Changing Culture
Actions:
ID inconsistencies in values and behaviors
ID strengths and weaknesses
Safeguard blind spots
Implement effective individual development action plan
Define performance baselines
Tools:
Simple 360° feedback
Personality assessment
Self-study on the big picture
Big picture group discussion
Experiential learning focused on the big picture
Data gathering and analysis Preserving the Hull

To operate with excellence an organization must have a culture built on integrity. Breakdowns in sound decision making must be addressed and reviewed for lessons learned.

Unsound decision making represents a risk to the organization. Similarly, unknown asset risks pose threats to employees, society, and the environment.

The Preseving the Hull module focuses on building and preserving a culture steeped in integrity and risk awareness, because to protect ourselves from risks, we must first know them. Strategy and communication are dependent upon each other – neither can exist without the other. Effective leaders set the course of their organizations based on constant vigilance of internal and external environments. Taking the Helm – Setting & Conveying Direction
Actions:
Adapt or develop strategy using CASCADES
Tools:
CASCADES
Communication – (1) internal, clear, specific responsibilities for each function/discipline; (2) external Market Communication
Adapt ability– real options analysis
Sustainability – address innovation, growth, succession planning, delivery excellence
Competition – VRIO, SWOT, competitor profiling
Achievability – check against in-house capability and external resource availability
Defendability – back-up decisions with data, such as market research, risk assessments, options analysis, financial analysis (project NPV, revenue projections)
Evaluation– define practical indicators that can be measured and monitored
Suitability – assess relevance to current product/service portfolio (e.g. compatibility of M&A activity to current company culture) Taking the Helm

The understanding of risk cannot happen in silos. Once identified, strategies must be developed for mitigating the risk and protecting employees, the community, and the environment. These strategies must be effectively communicated to all affected parties.

The same can be said for the understanding and implementing of change. Whether it be a small system MOC or a unit wide change, strategies must be in place and they must be communicated effectively. It is necessary for all to understand the reason for change and the process for realizing that change effectively. Overly complicated processess will slow work and create resentment towards change

The Taking the Helm module explores methods for effectively developing and communicating strategies. A leader must align and motivate the organization to support and promote the strategy. An effective leader drives the organization to "cognascents" and ever-balanced sustainability. Steering the Boat

Effective change requires alignment of the workforce. Personnel must be motivated to embrace changes and understand the impact of a lackadasical approach to change management.

Processes must be in place to clearly define what constitutes a change, especially those that require an MOC. The process should be clear, allowing very little room for misinterpretation. It should be straight forward to aid in motivating personnel to use it.

That is the second key. Personnel must not only be aligned, but also motivated. This is typically not accomplished by a work process alone.

The Steering the Boat module explores methods for aligning and motivating personnel towards operational excellence. An effective leader continuously monitors the strengths and weaknesses of the organization for developing threats and opportunities. A leader must expect and strive for optimal utilization of an organization's resources. Trimming the Sails - Innovation & Delivery Excellence
Actions:
Drive continuous innovation
Invest in delivery expertise
Manage projects effectively
Tools:
Balanced scorecard
Benchmarking
Re-Engineering
Efficiency analyses
Operational work processes
New product development processes
QA/QC protocols
Continuous improvement program
Knowledge management Trimming the Sails

Operational Excellence is not built over night. It requires a constant drive to measure process effectiveness. To truly measure process effectiveness, those processes must be delivered with excellence.

To deliver with excellence requires rigid adherence to process and quality requirements. This allows for identification of issues within the process that can be corrected when known. Continuous improvement requires and understanding of the change and effective methods to implement it.

The Trimming the Sails module explores methods for driving innovation along with methods for driving delivery excellence in all work processes. An effective leader does not work alone and earns the right to captain an organization. Every organization is made up of unique individuals that deserve and demand a versatile leader that is committed to understanding how best to relate to them. Knowing Who’s On Board – Building & Nurturing Employee, Marketplace, & Community Relationships
Actions:
Nurture relationships between employees
Establish new external relationships
Nurture existing external relationships
Invest in sales expertise
Engage community
Grow business organically and/or inorganically
Retain talent
Tools:
Relationship training
CRM tool
Customer loyalty surveys
CSR program
Mergers and acquisitions
Social media strategy Knowing Who's On Board

At the end of the day, work processes only go so far. It is the people within an organization that will ultimately decide whether or not operational excellence is reached.

To that end, the Knowing Who's on Board module explores methods to build trust into your everyday life. Topics also include crucial conversations and managing up.

For organizations to reach operational excellence they must embrace their employees and prove that business decisions are being made ethically and sustainably. People are the building blocks of organizations, if they are not maintained, they will crumble. Steering the Boat - Aligning and Motivating the Organization
Actions:
Educate organization on “big picture” specific to company strategy and their role
Develop individual-specific development action plans
Invest for retention
Identify organizational risk
Align and motivate to strategy
Tools:
Job design
Incentive plans
Performance evaluations
Individual personality assessments
Team profiles How do they work together?
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