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that practiced in other “engaged and empowered” companies. In HPOs the singleminded objective of empowerment is performance. In the matrix below, the HPOs we studied were all in the top half of the matrix (high performance)。 many were reaching, in addition, for the righthand side of the matrix(engaged and empowered).,PERFORMANCE AND EMPOWERMENT AT HPOs,Most large companies start out in the lower lefthand corner of the matrix (low performance and commandandcontrol management approach). We discovered that HPOs that have successfully transitioned to the upper righthand corner have first achieved high performance and then experimented with and adopted empowerment. Empowerment without first establishing a true performance ethic in the company tends to result in continued low performance. If your client falls in the lower lefthand corner of this matrix, it needs to concentrate first on building a true performance ethic. Empowerment, alone, is unlikely to yield performance improvement.,TRANSFORMATION PATH,7S FRAMEWORK,McDONALD’S WINNING FORMULA,Vision : to become the leading restaurant chain in the world,Strategy,Shared values,Skills,Convenient Good quality Consistent Familyoriented environment Fair value,Quality control over all aspects of business Superior site selection Continuous new product development Strong promotion of products and McDonald’s image,Quality Service Cleanliness price,Organizations usually change in response to discontinuities – either external shocks (such as deregulation ) or internal changes (such as new leadership) that make it clear that the old , “grooved” way of doing things is no longer winning. The successful ones will create a new winning formula that is based on changes in strategy, newer or stronger skills, and/or shared values. Contrasting the new winning formula to the old formula identifies and gauges the change that the organization is considering and defines the vision for the change program. A change vision is a creed that summarizes what an organization is trying to become and why. As such, it guides organizational priorities by redefining and recombining business objectives, required institutional skills ,and corporate values about what is important around here. A change vision is at the heart of top management’s role in improving performance and is often the first step. It provides the vital bridge between the initial dissatisfaction with the status quo and the first practical steps taken in a change program – the articulation of a clear target that represents something better that is both logically sound and emotionally appealing.,IMPROVING ORGANIZATIONAL PERFORMANCE,Grooved,Redirected,Unfrozen,Discontinuities,External shocks New competitors, economics New technologies Deregulation Internal changes New aspirations New leader,Major change through people,New strategy,New or stronger skills,Shared values,CHANGE VISION,Certain key people in the organization hold positions that determine success or failure in instituting a new strategy, skill, or shared value. These people fill what we call pivotal jobs. We will only succeed in implementing the change vision if we succeed in changing the behavior of pivotal jobholders. At McDonald’s, for example, pivotal jobs include the centralized purchasers of all raw materials for all stores, the store managers, and the hourly employees who take and assemble orders.,PIVOTAL JOBS What people must do,What are they ? Positions that have direct impact on delivery of value to the customer. Typically they Design the product Make the product Sell the product Positions that must capably master new skills Where are they? Close to the front line,In a recent study at a chain store retailer, the change vision included a significant improvement in instore convenience. Two positions were identified as pivotal jobs – the store manager and the area operations manager. This study employed a contrast analysis in two forms. The first considered each element of behavior and defined how the new behavior would need to differ from current practices. A behavior contrast analysis often proves helpful in defining precisely how the pivotal job holders need to change.,CONTRAST ANALYSIS Pivotal jobs: store manager, chain retailer,The second analysis contrasted the percentage of time spent on critical tasks under current practices and envisioned in the future.,CONTRAST ANALYSIS BY PERCENTAGE OF TIME SPENT Pivotal job: area operations manager,100%,Merchant/owner,Coach,Player,Administraor,ORGANIZATIONAL DESIGN LEVERS AT McDONALD’S,Winning formula,Pivotal jobs,Design levers,Organizational structure,Management systems,Leadership style,Staff,ORGANIZATIONAL DESIGN LEVERS AT McDONALD’S,Winning formula,Pivotal jobs,Design levers,Organizational structure,Management systems,Leadership style,Staff,STRUCTURAL OPTIONS,CHANGE BOARD,Skill to be built,* Modified as appropriate for company ** E.g., customers, suppliers, trade unions,CHANGE BOARD – CHAIN RETAILER EXAMPLE,Delivering instore convenience,CHANGE BOARD – CHAIN RETAILER EXAMPLE,Delivering instore convenience,Lock in support,Create shared responsibility for progress,Build a success model from below,Force awareness of realities,Restructure field organization,To answer the question, “How should change happen?” , the OP developed the “organizational transformation triangle” t