Organisational Agility in Challenging Times Hugh Hood Director of Leadership and Culture BT
David Young Group Head of Leadership Development Nov 2015
Getting Healthy
2
2008 financial and cultural crisis Reinvent to survive § Stage 1 - Grip, cash, profit
Agility to thrive and grow § Stage 2 - Address cultural issues
§ Cost transformation - removing 25%
§ Investing for growth
§ Command and control
§ Clarity, purpose and innovation § Meritocracy § Empowering leadership
Agility – clarity of strategy Our purpose Our goal
To use the power of communications to make a better world A growing BT: to deliver sustainable profitable revenue growth
Our strategy
Broaden and deepen our customer relationships
Deliver superior customer service
Fibre
Our culture
3
TV and content
Transform our costs
Mobility and future voice
Invest for growth
UK business markets
A healthy organisation
Leading global companies
Agility – clarity of purpose
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Agility – analysis and persuasion
1 year to analyse the data and tell the story
5 weeks from operating committee decision to first implementation
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Skill gaps directly link with our aspiration to create brilliant teams and make a difference
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BT leadership framework Deliver profitable growth
Connect with customers
Create brilliant teams
Principles
Behaviours
Principles
Behaviours
Principles
Behaviours
Think & act commercially
Take ownership of your numbers. Seize opportunities for us to grow profitably. Focus on things that make a difference to effectiveness and efficiency. Anticipate change and act quickly.
Begin and end with the customer
Understand what matters to customers and so to our business. Create value by ensuring that what we do is important to our customers. Remove barriers to good customer service. Do what we say we will do for our customers - end to end.
Inspire, challenge, and coach
Inspire people to drive for a common goal. Live by our values, ethics and standards and expect the same of others. Make sure everyone has the opportunity to succeed. Coach for and recognise great performance. Tackle difficult decisions quickly and fairly. Give honest and respectful feedback on how to improve - and ask for the same in return.
Make change happen
Be bold in making change happen. Drive for simple, compelling plans with clear roles and responsibilities. Knock down barriers to getting the right things done. Be optimistic and get behind other people’s great ideas.
Be easy to do business with
Keep things simple. Share great practice and learn from others. Drive continuous improvement using BT tools and techniques.
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4
8
11 10 12
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Develop great people 2
3
6
9
Make a difference Principles
Behaviours
Create new possibilities
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9
Bring the best services to our customers, quickly and simply. Create a better future for our customers, business and the communities in which we operate.
Contribute to our communities
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Lead in a responsible and sustainable way. Use our strengths to help local communities in ways that make us proud of our company.
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Attract and develop great talent. Be clear what people are accountable for and give teams the room to be responsible for results. Create an environment where people look after their own wellbeing and that of their colleagues. Encourage diversity so that we benefit from different ways of looking at things Build effective relationships in and across teams.
Focus on both performance AND health Performance
Health
What an organisation delivers to stakeholders in financial and operational terms
The ability of an organisation to align, execute and renew itself better than the competition
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There is a proven link between strong, healthy leadership and business performance Likelihood that OHI quartile has above-median financial performance1, %
1.8x
Bottom
Mid
Top
The likelihood that a company with top quartile leadership has above median EBITDA margin is 59%, indicating it is a key contributor to financial performance
Link between strong leadership and performance seen to hold across BT leaders2
1 As measured by EBITDA margin 2 Top performers show better balance of leadership practice than average – see appendix – for example John Petter, Graham Sutherland and Colm O’Neill all score higher for challenging than authoritative leadership SOURCE: Organisational Health Index database mining effort (N = 60,000)
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WHY DO WE NEED THIS PROGRAMME? 9
Strong leadership correlates with strong overall health Overall organisational health Percent
R2 = 0.78
Likelihood that companies have top quartile overall health given their leadership score
Percent Bottom quartile
3rd quartile
2nd quartile
Top quartile
â–Ş Leadership outcome Percent
SOURCE: McKinsey Organization Practice
â–Ş
27
65
Low scoring practices negatively impact leadership outcomes An authoritative style is least likely to deliver overall organisational health1
WHY DO WE NEED THIS PROGRAMME? 10
Authoritative leadership is the least likely style to deliver healthy leadership outcomes Percent likelihood that Leadership outcome is top quartile given Authoritative leadership is each quartile Percent
Percent likelihood that Leadership outcome is top quartile given Consultative leadership is each quartile Percent
Bottom quartile
Bottom quartile
3rd quartile
3rd quartile
2nd quartile
2nd quartile
Top quartile
Top quartile
Percent likelihood that Leadership outcome is top quartile given Supportive leadership is each quartile Percent
Percent likelihood that Leadership outcome is top quartile given Challenging leadership is each quartile Percent
Bottom quartile
Bottom quartile
3rd quartile
3rd quartile
2nd quartile
2nd quartile
Top quartile
Top quartile
Challenging leadership must become a core strength for BT Expanded BT style:
Current BT style:
Authoritative leaders: ▪ Are confident about directing action within clearly defined parameters ▪ Use their position to direct people to work in a certain way ▪ Set a clear expectation of what and how tasks should be done ▪ Concentrate on planning, organising, control and completion of tasks Colleagues feel: ▪ Strong sense of hierarchy ▪ Clear on what’s expected ▪ Disciplined, clear on common standards and how to comply with expectations Appropriate for: ▪ Crisis or time-sensitive situations ▪ Delivering when the process for doing so is familiar and understood ▪ When skills and/or trust is low and delivery – not development – is the key priority
Less of…
More of…
Challenging leaders: ▪ Clarify purpose and engage on it ▪ Direct employees on the asks not tasks ▪ Set accountability boundaries and challenge thinking ▪ Inspire ambition; stretch people to achieve more ▪ Push on the tough issues; set two way deals ▪ Drive change and adoption of new ways of working ▪ Facilitate action, provide steers, clarify as issues arise and express views and concerns Colleagues feel: ▪ Encouraged to achieve more than they thought possible ▪ Accountable and empowered to act within clear boundaries ▪ Motivated to tackle difficult issues and to make change happen ▪ Clear that they are expected to own overall outcomes as well as tasks Appropriate for: ▪ Situations where people need freedom and space to solve complex problem (to fuel business growth or transformation/innovation) ▪ When people need to change the way they think, fell or act to deliver results ▪ When skills and trust exist and development of these is a key priority
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Agility – leadership culture programme Worlds best thinking (not buying a programme from a school) Leaders understand the change required and believe alternatives will get better results Leaders role model and teach Reinforcement through clear measures Need for personal awareness, purpose, and authenticity as step one Need for insight followed by highly facilitated reflection and practice in small peer groups Identify personal blockers to change and how to overcome these Practice in applying new leadership behaviour through coaching
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Leaders at all levels get the same core content Leadership Challenge
Challenging Leadership in Action
Pioneers
Audience: Senior leaders (Band 4 and above)
Audience: Leaders with significant sized teams (Bands 2 and 3)
Audience: First line leaders of operational teams (Band 1 and 2)
Format: One module (2 days)
Format: Leading Self, Leading Others and Leading BT Current under review to align with other programmes (moving from 7 days (3 modules) – 4 days (1 module))
Format: Two modules (2 days) Module 1 – Leading Self Module 2 – Leading Others
Challenging Leadership Immunity to Change Coaching conversations Paradoxical thinking Meritocracy Brilliant teams (includes Team 360)80
Combination of both Module 1 and 2 from Leadership Challenge
As per Challenging Leadership
As per Challenging Leadership (additional content on brilliant teams, leading BT and managing change
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Challenging leadership needed to become our default
Aiming high
Coaching people to succeed
Creating energy
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…and we created a system to support meritocracy Create big roles…
Coach people…
Be spoilt for choice…
…and give people the space to do them
…to deliver and develop
…with development for all
Space to lead
Continuous Improvement
Continuous professional development and rewards
Dynamic Succession and Readiness to move
Leadership Framework and Coaching tool and Readiness to Lead
BT Academy
TRAIN
Critical skills
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Agility – What worked, what didn’t and what more is needed What worked § Clarity, purpose, innovation
What didn’t § Leaders needed more support § Had to develop separate cascade
What more is needed § Reinforcement § Support when times are tough § Customer service in our sights
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Questions