module l eadership: p erformance-based m anagement
DESCRIPTION
MODULE L EADERSHIP: P ERFORMANCE-BASED M ANAGEMENT. T OPIC O VERVIEW. This topic covers key leadership issues: Designing a performance-based management action plan Identifying and overcoming resistances to the plan including negotiating the implementation of the plan - PowerPoint PPT PresentationTRANSCRIPT
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MODULE
LEADERSHIP: PERFORMANCE-BASED
MANAGEMENT
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TOPIC OVERVIEW
This topic covers key leadership issues:
• Designing a performance-based management action plan
• Identifying and overcoming resistances to the plan– including negotiating the implementation of the plan
• Identifying factors that enhance the success of an action plan
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INSTITUTIONAL REFORM PROCESSES
We will look at a hypothetical case study:
• Leading change at ‘State TV’ - Core, 4-step SWOT analysis
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• Our aim is to help State TV make a profit, consistent with achieving social objectives
(Suppose old-style senior managers dominate State TV too much, making State TV’s programmes less attractive to the viewing audience.)
– We need to improve the performance of such managers.
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ASSUMPTIONS
Let’s assume that:
• the products that State TV currently sells are of low quality, and audience numbers in a key market segment are low
• State TV is losing money
• A reform-minded official seeks your advice on how to reform State TV
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THE PROFILE
WHAT is State TV:
• monopoly, state-owned company
• losses funded by govt
• managed by govt staff, suffers the heavy hand of the broadcasting Minister in some daily operations
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WHO are the stakeholders:
• Govt (as owner) sets multiple objectives for State TV
• Minister (accountable to Govt to ensure govt objectives are met)
• State TV staff (manage, promotion based mainly on seniority)
• Customers (act as revenue source)
• SKY TV (an international competitor that may enter the market)
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WHY change:
• State TV is making losses• Govt budget problems• Govt is thinking about a privatisation program (to
reduce govt debt)
WHEN to reform:
• ASAP
HOW to reform State TV:
• You will consider three options– Commercialisation, corporatisation and
privatisation
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4-STEP SWOT
1. Conduct basic SWOT (SWOT 1)
2. Cut some less important elements in
basic SWOT, if possible (SWOT 2)
- avoid leadership overload
3. Link elements in SWOT 2 to build map of cause-and-effect relationships: (+), (-)
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4. Identify key support & blockage points in the map that impact on your action plan; act on & report the risks
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1. SWOT 1 Analysis
To get an early idea of how useful each of the options are, we’ll undertake a preliminary SWOT analysis (SWOT 1):
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Our initial SWOT analysis has identified the specific, key strengths, weaknesses, etc.
But it hasn’t told us:
– How serious or important each of these specific factors is
– How the factors might link to each other
So we need to dig deeper. Suppose we do more interviews with stakeholders and find:
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Audience • mainly 55+ years old, not so many
• Largest potential audience (18-40 y.o.) not watch much State TV. Have spending power, seek quality
Managers• Senior – always follow orders from the Minister,
unimaginative, inflexible with subordinates, old fashioned programming ideas
• Middle – most understand the market well, innovative,
but have little power. Some very unimaginative, rigid
Minister• Currently following Govt’s multiple objectives, but is
gradually starting to realise that there is a problem
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2. SWOT 2
Based on this new, deeper information (and the earlier How, When, Why,.. info), now revise your SWOT 1 results to cut out any less important elements
• SWOT 2 (reduced version of SWOT 1)– Retain only the most important elements
from SWOT 1 & modify any of the retained elements in line with the new info:
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CLASS SYNTHESIS OF SWOT 2
S
MONOPOLY
STAFF
(middle)
W
STAFF
(senior & middle)
O AUDIENCE
(advertising)
MINISTER
SKY TV
GOVT BUDGET PROB.
TMULT. OBJECTIVES
MINISTER
SKY TV
GOVT BUDGET PROB.
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3. LINKAGES IN SWOT 2: Map
Eg:• Sky TV disciplines the managers of State TV to
perform better– Show directional arrow– Assign a (+) or (-) sign
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Senior Manager Performance ↑
Another Example:
Govt budget problem
+
Minister ?
(reform)
•
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4. IDENTIFY HOT POINTS
• Identify key areas in the map that may support or block your reform plans
• Assess the risks from any: – Blockages
• Individual decision-making biases from above• Information filtering as plans go to higher levels• Group decision-making biases
– Changes in your assumptions
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Dealing with Hot Points
Eg: Will the Minister support the reform?
• Assessment: The Minister’s input or support will depend on:
– Position (the stance that the Minister will take)– Salience (the importance of the issue to the
Minister)– Clout (the Minister’s power or authority)
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• Do we need to change the Minister’s input?
– How to change the probability that the Minister will support you?
– Assess probability of winning & effort needed
Finally report the risks.
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SUMMARY
• Work backwards (imagine the solution and then work backwards to see the steps/elements that must be in place for the solution to be reached).
• Consider multiple paths to reach your objective– Brainstorming, …
• Investigate enabling elements or inputs• Note time horizons in the risks• Consider the elements of leadership that
would help you
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Since our profiling (How, when, what,…), SWOT 1 & 2 analysis, and linkage maps have given us a good background feeling for the issues, we’re now ready to start digging much deeper into our reform options (commercialisation, corporatisation & privatisation)
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LIMITS OF COMMERCIALISATION
• Bias towards political and bureaucratic control remains– Govt interference in daily operations– Low, govt-controlled prices might remain to
reduce the profits of State TV
• Weak monitoring
• Weak incentives to perform better
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So might need to move to next step – CORPORATISATION – to raise the performance and profitability of a state enterprise via:
– Changes in ownership structure and incentives– Corporate governance structure, emphasising
performance standards– Much stronger focus on commercial and financial
performance
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GROUP DISCUSSIONS
1. How to reduce the staff at State TV, while also increasing efficiency? (‘Produce more with less’)
- The best ways to do it?
- How to change the work styles and ways
of thinking of the managers?
- Reform fast or slow?
2. Which State TV activities should be subsidised by the Govt, and which should have cost recovery?
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3. How to measure staff performance in State TV?
4. How do you cope with a co-worker who is a slacker?
(A person who wants to work as little as possible)
5. State TV is a monopoly. Can devolution of decision-making be harmful to some stakeholders?
How could we reduce the problem?
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6. Should State TV have multiple objectives or a single objective?