White Paper: The Clarity Framework - GP Strategies Corporation

White Paper: The Clarity Framework – A Fresh Approach to Organizational Performance TYPICAL BUSINESS REALITY: The project team develops the implementation process and drives it forward. Many new initiatives are launched around a new IT system, a new HR system, a new product launch, or the latest sales push. The focus in most cases is around the tangible elements: software, HR policies, or sales framework. Little attention is paid to the business processes that must be stopped, altered, or developed for the tangible asset to be successfully deployed. Often, the contexts in which the tangible elements must be deployed are ignored. It is not with the belief that the processes are unimportant, but rather that the resources, the know-how, or the required management support is lacking or insufficient. As these new initiatives are launched, the design of new business processes is relegated to a project team focused on system requirements. Often these project teams are sequestered from the day-to-day business operations. The well-intentioned team is typically given a high-level glance at the strategy it is expected to execute, with no clearly developed goals around which to design a proper process. Without clear goals, process measures go unaddressed and business benefit is left to chance. The result of this approach is that: Business-related processes are loosely defined. Processes do not address transitions and interfaces between processes. Expected outcomes are defined only at a high level. Decision criteria are not defined or are defined without securing proper authority. Roles are unclear or narrowly defined, leading to inability to handle exceptions, independent decisions, or escalations. THE CLARITY FRAMEWORK APPROACH: Developing a clear, efficient process that meets its intended goals is a multi-stage activity that requires deliberate attention, expertise, and iteration. Process is the linkage between strategy and execution, and it defines how an organization provides its value in delivery of services and products. Process defines how work gets done. Processes vary greatly in terms of a number of factors, including: Technical complexity Workforce requirements Regulatory oversight Standardization/variance across industries GP Strategies Corporation However, all are measured by value. Regardless of the specific metrics—such as throughput, defects, profit, and customer satisfaction—the perception of value by the internal or external customer is the ultimate measure. This measure is usually the prime target of the strategy being implemented. Iteration is the crucial design principle required to deliver an effective process that is clear to all constituents. The project team must be well-positioned to develop a draft process, one they believe embodies leadership’s intended change in strategy and one that is viable in their given business and culture. To achieve true alignment by senior leadership, this draft process must serve as the discussion template. In particular, leadership must align on the changing dynamics and perceived shifts in power that come with the new business processes. Simultaneously, the draft process must be co-created with the workforce. In all likelihood, the draft that is presented to a cross-functional workforce team will not have the appropriate level of detail in terms of roles, responsibilities, process transitions, etc. required to operationalize the new approach. An iterative approach provides the best chance of achieving the necessary clarity. Process clarity is a measure of how well business processes are articulated. The roles, the tasks for those roles, and the associated decision capability need to be clearly defined. But what constitutes a clear process definition? Processes can be clear but ineffective. Process effectiveness is a measure of how well a business process supports and accomplishes the organization’s goals as delineated in the strategy. Processes must be designed to fit the strategy and must be executed efficiently to achieve targets. For this to occur, measurement systems must be established that reflect the strategic goals established by the leadership team. An effective process is largely a reflection of how well the project team aligned with the leaders in the development of the process. Key indicators of a clear, effective, and iterated process are: Processes “fit” strategies (that is, process outcomes achieve strategic goals). Processes are efficient and are measured as cost/ benefits in relation to the strategic goals. Process outcomes are measurable. Process roles are clear and well-articulated. Individuals know what to do and what authority they have to do it. Processes allow for exceptions (that is, process performers are capable of making necessary decisions and escalations). 4

White Paper: The Clarity Framework – A Fresh Approach to Organizational Performance Process definitions are completed (that is, precise learning and development plans can be prepared for each role). People Readiness Individuals at all levels in the organization need to be equipped to continually deliver the appropriate and expected results. This is accomplished by integrating learning, performance support, and collaboration. The evolution of the Clarity Framework lies in a long history of serving clients in the quest to help their workforce be ready to perform in the face of new initiatives and organizational mandates. It has become exceedingly clear that to effectively prepare people for new roles and new tasks, it is essential to establish process clarity and leadership alignment first. Only then can the sum of strong processes, a supportive organizational environment, and able performers combine to produce exceptional organizational performance. TYPICAL BUSINESS REALITY:Training occurs right before rollout. Training has, through the years, carried the connotation of a single, transforming transactional event. As a result, preparation for training, which considers these fundamental questions, is often left until the last minute. Who will be affected by this initiative? How will they be affected? How do they need to be prepared to adequately perform their new undertakings? The history of training in the workplace leaves many with the idea that training is a one-dimensional activity that can be held until just before rollout. In addition, this last-minute training often covers all aspects of the new product or process, regardless of whether or not each role requires such a complete level of training. Efforts such as this—coupled with the notion that employees will learn what they really need “on the job”—sets the stage for dismal performance at the initiative’s launch and long after. Typically, the investment is for one-time training events. Unfortunately, this strategy is not a winner. These events are only of value to people in the organization and in their roles at the time. They are often expensive and not repeatable. Knowledge retention is low. Therefore, performance changes are inhibited. Extension of the classroom to the workplace is often impossible. The ability for management to evolve job roles and responsibilities is limited since they rely on these fleeting events. GP Strategies Corporation With this approach, it’s difficult to determine if employee resistance is based on a lack of understanding, a selfdiagnosed lack of ability, or true unwillingness to embrace the “new way.” This performance confusion is compounded when informal motivators undercut whatever formal motivators have been put into place to promote new performance goals. These informal motivators include reverting to what people know (the comfort zone) and remaining inconspicuous. THE CLARITY FRAMEWORK APPROACH: Effective people readiness requires a systematic approach to job performance that is included early in the strategy. The key to creating and sustaining people readiness lies in the realization that today’s business processes and organizations are complex and constantly changing. Preparing employees to perform consistently and at a high level requires a structured approach. A one-dimensional, traditional approach isn’t sufficient for developing job performers who clearly understand what’s required of them in their new roles, who understand how to stay up to date on their role, and who know how to appropriately perform it. A systematic approach to people readiness begins in process design. Efforts designed to facilitate readiness start with a clear understanding of what people need to do—the specific key performance elements that result in achieving what the business needs to succeed. Before addressing the details of the plan for developing people readiness, employee learning, and performance support programs, design activities must establish a clear profile of success that identifies the: Intended results Methods to produce them With performance objectives clearly identified, it is possible to design and implement a multifaceted enablement system that facilitates the ongoing and continuous learning efforts necessary in today’s workplace. Such a system: Introduces new concepts and frames of reference Provides access to accurate, up-to-date information Facilitates and encourages collaboration with peers and experts to quickly discover problems and obstacles in order that appropriate solutions can be developed to address customer needs. This approach allows for a system that can be regularly updated to sustain and improve employee performance aligned to the strategic targets that have been implemented. Learning is no longer defined by events or modes of delivery; instead, the workplace is viewed as an enablement environment. Performers quickly develop the habit of becoming self-sufficient in seeking and obtaining the 5

White Paper: The Clarity Framework – A Fresh Approach to Organizational Performance knowledge and skills required of them to achieve excellent performance. They have clear avenues to take responsibility in continuously developing their ability. upper and middle management closer to their belief that the project team will build and deliver the new way and line operations will execute as they are told. Enabling people readiness is deliberate and requires consistent and diligent effort employing an adopted approach. Clear indicators of an enabled workforce are: Learning is an ongoing process incorporating formal and informal methods. Job design is focused on producing specific outcomes that drive business objectives. Performance-based criteria are used to carefully select people for jobs. Learning and performance support are always available. Coaching is always available to help employees do the right things. Communication occurs through multiple channels and is frequent, direct, and aligned. Formal and informal motivators are aligned to promote desired results. THE CLARITY FRAMEWORK APPROACH: Organizational obstacles are discovered and addressed by leadership before implementation, in order to remove barriers and position the initiative for success. Organizational Context Leadership must be aligned. Their involvement clearly demonstrates the priority of the initiative and helps illuminate any reasons for urgency. A performance-focused work environment is necessary to give executives a clear line of sight, from the initial strategy and intention to the frontline performers. Corporate culture evolves over time and has powerful influence over how things get done and what gets done in an organization. Initiatives that introduce improvements and new ways of doing things must navigate within the existing organizational context. If the initiative will be confronting existing culture or attempting to change organizational norms, significant effort is needed to address these issues and eliminate obstacles. Otherwise, forward momentum will be negatively impacted, if not lost entirely. TYPICAL BUSINESS REALITY: Organizational issues impacting the initiative are ignored or downplayed, and surface during implementation as barriers to initiative success. Job roles, working relationships, and required skills may change for numerous individuals. It must be clear who makes decisions, what level of authority they have, and the availability of help and support. Organizational boundaries, policies, and rules must facilitate the new way that processes will be performed. Mapping new business processes is essential to understanding and managing the changes driven by an initiative, as changes may require: Business process restructuring Different reporting relationships Changing working relationships A thorough analysis of the impact of the initiative should be executed, and the leadership team needs to be aligned on these results and their implications. Early on, changes to roles, processes, policies, and organization design that are problematic or barriers to the success of the initiative are identified and examined, and improvements are recommended. Key indicators of a supportive organizational environment are: Organizational structures are constantly reviewed for compatibility with new work and decision processes. Public statements are made and positions taken to clearly reflect the current reality. Compromises are often made to have new processes fit current organizational structures, which can put the success of the new process in jeopardy. With attention directed away from the strategic intent, actions become focused on “throwing the switch” with little regard for what happens after the new process goes live. Vanguard Leadership Additionally, communication for the initiative becomes muddled. Cultural aspects are either ignored when developing new processes or the existing culture is an obstacle to the new plan success. All of this distress moves For well-defined and clearly articulated processes to be successfully deployed, the executive team must exhibit leadership that is committed and aligned to the initiative’s vision and goals. GP Strategies Corporation Successful strategy execution requires executives who are leading the change, driving alignment around strategic intent, and able to see the initiative landscape through an operational lens (the eyes of frontline performers). 6

White Paper: The Clarity Framework – A Fresh Approach to Organizational Performance Only through properly aligned leadership can a supportive organizational environment be fostered and maintained. TYPICAL BUSINESS REALITY:The leadership team agrees on the strategy. It’s up to the business to “make it happen.” Leaders often assume an initiative is owned by its sponsor or initiator. As a result, they may assume a hands-off role, even when the change will affect their business unit or department. This behavior can be seen as lack of support for the project, leading to resistance, delay, increased cost, and often, failure. The “wear-in” period is understood, and actions to sustain and improve the initiative are part of the implementation plan. A well-thought out and detailed plan is in place to transition ownership to the line/operational organization well before deployment. Intent To achieve initiative realization, strategic intent must be clear, continually reinforced, and achieved through welldefined, measurable outcomes. The misperceptions generated in this typical situation manifest in a wide range of consequences to the initiative’s effort. Decisions that impact the initiative are slow to be made, causing delays and extra cost. Lack of clarity in direction leads to compromises in the initiatives goals, greatly diluting the business impact, and ultimately failure. For a well-defined and clearly articulated process to be successfully deployed, the executive team and management throughout the organization must exhibit leadership that is committed and aligned to the initiative’s vision and goals. Only through aligned leadership can a supportive organizational environment be created and maintained. THE CLARITY FRAMEWORK APPROACH: Initiatives designed to implement new strategy require aligned leadership at every level, from concept development until the strategic goals are realized. TYPICAL BUSINESS REALITY: Members of the leadership team are not aligned on the initiative’s strategic intent.They lack understanding and commitment, and that weakness propagates throughout the organization. Establishing aligned leadership is the overwhelming key to shaping an environment that supports rather than inhibits the success of the new initiative. Leadership that remains engaged and fully active in support of the initiative is well-positioned to quickly make key decisions that keep the initiative moving forward and avoid delay, excess organizational disruption, or transition cost. Leadership and executive alignment is often assumed, incorrectly, within organizations. After all, the leaders have committed to the expense and activity required to develop and implement the initiative. But even so, members of the leadership team often have different interpretations of the real changes required to deploy the initiative successfully. Vanguard Leaders need energy and an aligned understanding of the changes needed to reach their vision, and they must understand their role in support of the implementation. Vanguard Leaders help their peers understand how to be responsible for cascading sponsorship or ownership for the change within their own respective organizations, and they ensure that the correct vision and urgency is communicated throughout all levels of the organization. In this situation, the organization becomes aware that certain leaders are not visibly supporting the initiative. Often leaders use different—or even conflicting—statements to describe the initiative and what it is intended to accomplish. A common indicator of this situation is poor attendance by leaders at meetings associated with the initiative. They are not aligned, and they avoid attempts to align themselves. Employees and management should be engaged in addressing the changes needed to make the initiative successful. They should use their own experiences along with innovation to plan the strongest deployment into their specific workplace. THE CLARITY FRAMEWORK APPROACH: The leadership team aligns on clearly defined vision and business impacts. The integrity of this intent is carefully managed throughout execution, and leaders remain vigilant on achieving measurable outcomes that realize the vision. Only an aligned leadership can sustain positive change past the go-live date. Key indicators of an aligned leadership are: Initiative decisions are made in a well-informed and timely manner. All decisions are trusted and visibly supported by the organization’s leadership. The Clarity Framework provides the executive team with a common: Language Set of expectations Understanding of the risks and mitigation strategies GP Strategies Corporation 7

White Paper: The Clarity Framework – A Fresh Approach to Organizational Performance Understanding of what is required for successful execution of the initiative The key is not to make the change itself the primary focus, but rather to keep the emphasis on the objectives of the strategy and the details of the plan to implement it. This doesn’t suggest the journey is easy, but rather that there is a clear and deliberate path for achieving the kind of success that eludes most strategic initiatives. Key indicators of a leadership team that is aligned on intent are: The initiative vision and intended business impacts are documented in straightforward, clearly understandable, and compelling terms. Leaders across the organization describe the initiative and its intended outcomes in the same way and regularly demonstrate their support for it. Mechanisms are in place to address execution issues and scope changes in a manner that ensures the integrity of the initiative’s intent is maintained. A monitoring process is in place to track progress towards achieving measurable outcomes that reflect the initiative vision. All impacted leaders are aligned and agree that initiative execution is not considered complete until the intent is fully realized. Benefits of the Clarity Framework Improved communication The Clarity Framework provides a structured way to communicate what must happen to build and sustain the commitment, alignment, and energy necessary for strategic initiatives to be successful. There are three audiences for which the Clarity Framework methods and approaches must be addressed: The process design team The leadership team The workforce True success results when these groups work in an integrated and iterative fashion. No requirement for a single set of tools or techniques The Clarity Framework doesn’t favor particular tools and techniques such as Six Sigma or the use of a lean approach. Instead, it articulates the desired outcomes in each of the three dimensions (process, organization, and people) outlined and calls for deliberate approaches in each to be deployed in an integrated manner. A clear structure for implementation The Clarity Framework takes the mystery out of moving major initiatives through an organization that is itself in a constant state of flux and change. It provides a framework to approach the execution of any significant initiative, one which provides common language, common expectations, and most importantly a common approach to the task of initiative execution. The key is to keep the emphasis on the objectives of the strategy and the details of the initiative. This strategic focus suggests that there is a clear and deliberate path for achieving the kind of success that eludes most strategic initiatives. For more information contact us at info@gpstrategies.com or visit our website www.gpstrategies.com GP Strategies World Headquarters 70 Corporate Center 11000 Broken Land Parkway, Suite 200 Columbia, MD 21044 USA 2014 GP Strategies Corporation. All rights reserved. GP Strategies and GP Strategies with logo design are trademarks of GP Strategies Corporation. All ot

The Clarity Framework Delivers a Fresh Perspective The Clarity Framework uses a proven approach to achieving strong organizational performance. It's an approach that delivers in spite of the transient and dynamic nature of modern organizations. The Clarity Framework does not address the macro level of strategy only. Instead, it focuses .