Decision Making

1. A 3 day seminar to remember
How to MAKE GOOD DECISIONS and
cope with related CHANGE?
Roger Claessens, Prof. UBI
www.rogerclaessens.be
1

2. DECISION MAKING & CHANGE
I WANT YOU TO START WITH A WHITE PAGE
……..BUT NOT A WHITE BRAIN !
2

3. “ All great stories start with a
white page ”
Source: AUDI
3

4. Decision making in the right
environment
A winning corporate culture!
Leadership – Management & Change 4

5. Workshop topics:
1. Accountability
2. Leadership
3. Structured thinking
4. Intuitive thinking
5. Creating consensus
6. Communication
Program 7. Implementation
14,15 & 16/10/2011 8. Change management
9. Conflict & performance
10. Winning

6. Retrieving experience from :
1. The ENRON case
2. The Barings case
3. The subprime crisis case
4. The Too big to fail case
5. The desert case
6. The retail sale of investments case
Program 7. The lean thinking approach
8. The future files statements
14,15 & 16/10/2011
9. The SPIN approach
10. The Jack Welch approach

7. Could your
neighbour introduce
YOU?
7

8. The introductory sentence of the workshop
Failure is simply the opportunity to begin
again more intelligently. (Henri Ford)
8

9. OUR COMMON GOAL
• At the end of the 3 days you should
have your DECISION CHECKLIST
for your future decisions
9

10. Part I
Consequences, Accountability & Corporate Culture

12. 16 YEARS TO GO FROM 10bn TO 65bn &
24 DAYS TO GO BANKRUPT
ENRON IS NOT ABOUT NUMBERS BUT
ABOUT PEOPLE _ IN REALITIY :
A HUMAN TRAGEDY

13. Discussion • What were the
CONSEQUENCES of
the wrong decisions?
• What would have
been CORRECT
decisions?
13

14. WHAT WENT WRONG?
 Senior management unloading stock?
 Substantial contributions to political parties
 Shredded documents
 Manipulating market risk
 Unusual high profits

15. WHAT WENT WRONG?
 Feeling of something unusual going on
 Falsified bank records
 Manipulation of earnings
 Trading beyond stated limits
 Unread reports
 Inappropriate use of legal loopholes

16. WHAT WENT WRONG?
 Booking potential profits at the moment of the
conclusion of a contract
 Hypothetical future value accounting
 Performance evaluation system taken to the
extreme

17. WHAT WENT WRONG?
 Profits without ethics
 Black box accounting
 « You have to do whatever you have to do t
stay there! »
 Stock manipulation
 Abusive public relations

18. WHAT WENT WRONG?
 Convincing anyone else that they are smarter
 Unusual large profits & risk taking
 Abuse of deregulation
 Many un-answered questions

19. WHAT WENT WRONG?
 Pressure to do business at any price or
abuse
 Corruption
 Perception = the reality
 Plenty of warning signs without control
 Conflict of interest – special purpose vehicles

20. WHAT WENT WRONG?
 Ambition versus modesty
 Demonstrated dangers of structured finance
 Lack of independance
 Using company stock to garantee own transactions
 GREED
 Sale – repurchase transactions (warehousing)

21. WHAT WENT WRONG?
 How is it that they reach the numbers?
 Traders run the company
 Absence of whistle blowing procedures
 DEADLY MISTAKE of ARTHUR
ANDERSON = Death of the company itself

22. • « IT WAS ALL TO EASY… »

23. Recommended
23
reading

24. Discussion
What have you
learned from the
ENRON case?

25. Discussion
What would be
appropriate tools
to assure
accountability?

26. 1. Management by objectives
2. Code of conduct
3. Performance evaluation
4. Mission statements
5. Internal and external communication
6. Determine key values
7. Determine behavioural norms
8. Requires leadership
26

27. 1. Good decisions have taken consequences into
account
2. Good decisions entail clearly defined
responsibilities
3. Good decisions require the right corporate
culture
27

28. Accountability is the concept in ethics and
governance with several meanings. It is often
used synonymously with such concepts as
responsibility, answerability, blameworthiness,
liability, and other terms associated with the
expectation of account-giving.
(Source: Wikipedia)
28

29. Corporate governance
Corporate governance is about:
Assuring a correct management and control of a
company, based on laws and rules and
« behaviour » of management and staff!
It implies duties such as:
• An effective and efficient control
• Solvency
• Discipline of all involved

30. Corporate governance
The ten (10) principles of corporate governance
1. Required qualifications of the principal shareholders
2. Adequate management structure
3. Clear guidelines for powers and responsibilities
4. Definition of individual tasks among management
5. Independence of the control functions
6. Required qualities of the managers
7. Financial reward of the managers
8. Strategic objectives, corporate values and avoidance of
conflict of interest
9. Corporate structures and products
10. Publicity in publications

31. Corporate governance
Governance
Action Structure &
Operations
Control
& Audit

32. Part 2 – Leadership

33. 33

35. Barings Bank (1762 to 1995) was the oldest
merchant bank in London until its collapse in
1995 after one of the bank's employees, Nick
Leeson, lost £827 million ($1.3 billion) due to
speculative investing, primarily in futures
contracts, at the bank's Singapore office

36. Discussion • What were the
CONSEQUENCES of
the wrong decisions?
• What would have
been CORRECT
decisions?
36

37. WHAT WENT WRONG?
 The MAJOR error is the lack of Chinese wall
 So superficial
 No “hands-on” management
 Control & audit
 Reporting
 No understanding

38. WHAT WENT WRONG?
 Feeling of something unusual going on
 Falsified bank records
 Manipulation of earnings
 Trading beyond stated limits
 Unread reports
 Inappropriate use of legal loopholes

39. WHAT WENT WRONG?
 Profits without ethics
 Black box accounting
 « You have to do whatever you have to do t
stay there! »
 Stock manipulation
 Abusive public relations

40. WHAT WENT WRONG?
 Convincing anyone else that they are smarter
 Unusual large profits & risk taking
 Many un-answered questions

41. WHAT WENT WRONG?
 Pressure to do business at any price or
abuse
 Corruption
 Perception = the reality
 Plenty of warning signs without control

42. WHAT WENT WRONG?
 Ambition versus modesty
 Demonstrated dangers of structured finance
 Lack of independance
 Using company stock to garantee own transactions
 GREED
 Sale – repurchase transactions (warehousing)

43. Discussion
What have you
learned from the
BARINGS case?

44. CORPORATE CULTURE =
SHARED VALUES & GROUP BEHAVIOUR
NORMS
44

45. ME incorporated =
MY VALUES & MY NORMS
45

46. CORPORATE CULTURE
=
VISIBLE LEVEL
(BRANDING)
&
SHARED VALUES
46

47. A BRAND IS LINKED TO CULTURE
“The culture of a group can be defined as:
• a pattern of shared basic assumptions learned by a group
as it solved its problems of external adaptation and internal
integration,
• which has worked well enough to be considered valid
therefore, to be taught to new members as the correct way
to perceive, think, and feel in relation to those problems”
(Recommended reading: Organisational culture and leadership,
E.H.Schein, Jossey-Bass, 2010)
47

48. CORPORATE CULTURE
Corporate culture
Is a matter of:
 people,
 believes,
 motivation &
 attitude
48

49. What OBJECTIVES should have been reached to
build a corporate culture?
49

50. The objectives to be reached are:
50 A culture of motivation

51. The objectives to be reached are:
NIKE SHOES
“NO GAMES, JUST SPORT”
51 A culture of listening

52. The objectives to be reached are:
For instance, this PC is the
result of a constant search for
excellence:
• BETTER
• FASTER
• CHEAPER
• SMALLER
• SIMPLER
52
A culture of excellence

53. The objectives to be reached are:
What is YOUR corporate
culture?
How do you evaluate it?
What is its decision
making process?
A culture of searching 53

54. Leadership
54

55. « Every day in life,
there is a new
question. That is
what keeps us
going. »
55

56. According to Jack Welch
What leaders do
1. They relentlessly upgrade their team
2. They live and breathe their vision
3. They exude positive energy and optimism
4. They establish trust and transparency
5. They have to courage to take unpopular
decisions
6. They probe and push with a curiosity
7. They set the example
8. They celebrate 56

57. Motivation
In the final analysis a variety of SKILLS will
contribute as much as your formal academic training to
your and the organisation’s SUCCESS
57

58. Assessing Your Ability
No matter what life
throws at you in a day,
always keep FOCUSED
on your goals.
« Does is matter to my
goal?» If not, then
cross it off!
58

59. 1. Good DECISIONS have taken consequences
into account
2. Good decisions entail clearly defined
responsibilities
3. Good decisions require the right corporate
culture
4. Good decisions require leadership
5. Good decisions require the knowledge of the
broader picture
59

60. 1. Strict adherence to (behavioural) norms
2. Internal and external communication
3. Clearly spelled out procedures
4. Efficient and effective controls
5. Efficient reporting
6. Hands on management
7. The qualities of good leaders
60

61. Part 3 – Structured Thinking

62. 62

63. Discussion • What were the
CONSEQUENCES of
the wrong decisions?
• What would have
been CORRECT
decisions?
63

64. WHAT are the characteristics of a good credit?
The five C’s of Credit assessment
– Character - the willingness of the borrower to repay
– Capacity - the ability to repay the debt from cash flow
– Collateral - the security backing the loan
– Capital - the strength of the borrower’s balance-sheet
– Conditions - the sensitivity of the project to outside
factors such as economic cycles and competition

65. WHAT WENT WRONG?
 So superficial
 No “hands-on” management
 Control & audit
 Reporting
 No understanding

66. WHAT WENT WRONG?
 Feeling of something unusual going on
 Unread reports
 Inappropriate use of legal loopholes
 Profits without ethics
 Abusive public relations
 Black box accounting

67. WHAT WENT WRONG?
 Convincing anyone else that they are smarter
 Unusual large profits & risk taking
 Many un-answered questions
 Pressure to do business at any price or
abuse
 Perception = the reality
 No or little values

68. WHAT WENT WRONG?
 Lack of structured thinking
1. Simplification to allow for best & worse case
scenario
2. Visualisation to understand the issues
3. Assuring the understanding of the key issues
4. Right presentation to allow for an educated
decision making
5. Associations are a strong helping hand

69. The subprime crisis
Discussion
In your view:
(1)What could or should have
been done?
(2)Is regulation the answer?
(3)Will it re-occur?
69

70. How would you explain the financial markets?
Discussion
70

71. The power of association
71

72. The power of association
What might be the difference between those
markets?
1. The money market
2. The capital market
3. The foreign exchange market
4. The stock market
5. The futures market
72

73. The power of association
•ASSOCIATION is a helping hand to
your long term memory, i.e.
retaining and retrieving information
•A powerful help is IMAGES - they
speak a thousand words
73

74. Discussion
What is the
ECONOMY
telling us?
74

75. Government Central Bank
Products
& Services
GNP
WHAT?
ENTREPRENEURS HOW? CONSUMERS
FOR WHOM?
Salaries,
interest,
rentals
LABOUR

76. Recommended
reading if you are
interested in the
economic
environment!
76

77. 1. Good decisions have taken consequences into
account
2. Good decisions entail clearly defined
responsibilities
3. Good decisions require the right corporate
culture
4. Good decisions require leadership
5. Good decisions require values
77

78. 6. Good decisions require skills
7. Good decisions require anticipation
8. Good decisions require structured thinking
78

79. A last note on values
« Values are best
demonstrated as
opposed to talk
about it! »
Richard Hytner,
Saachi & Saatchi
79

80. Part 4 – Intuitive & creative thinking

81. 81

82. 82

83. Intuition is the ability to acquire
knowledge without inference or the use
of reason
83

84. To big to fail
Discussion
What should
have been the
CORRECT
DECISIONS?
84

85. Management
by questions
85

86. 86

87. How does brainstorming work?
87

88. How does brainstorming work?
What motivates YOU ?
88

89. How does brainstorming work?
89

90. How does brainstorming work?
This PC is the
result of a way
of thinking:
Better
Faster
Cheaper
Smaller
Simpler
90

91. How does brainstorming work?
91

92. 92

93. Think Different
Steve Wheeler, University of Plymouth, 2011
Kick start your brain.
New ideas come from
watching something,
talking to people,
experimenting, asking
questions, getting out
of the office
- Steve Jobs
http://steve-jobs-biography.pics-grabber.appspot.com/

94. 94

95. In the final analysis a variety of
SKILLS will contribute as
much as your formal academic
training to your and the
organisation’s SUCCESS
95

96. 6. Good decisions require skills
7. Good decisions require anticipation
8. Good decisions require structured thinking
9. Good decisions require questioning
10.Good decisions may require intuition
96

97. Part 5 – Creating consensus

98. Reaching
consensus
&
communication
98

99. Discussi
on
99

100. Getting out
• You are in the Arizona desert in the hottest time of the year.
Because of a fire, the plane had to land and most of the contents
have been destroyed but fortunately none of the three passengers
and the pilot are hurt. You know that you are about 75 miles from
the nearest town. Fortunately you have some pieces of equipment
and items left that you could use for your survival.
• The decision to make is: either to stay put and wait for help or move
and walk the 75 miles to the nearest town.
• Whatever the decision it needs to be taken unanimously!
100

101. Getting out
• Below is list of available items, you should list them in order of importance
to your survival, one being the most important, and decide what items to
take with you in case you decide to move. You may also take the decision
to stay and wait for potential help but should still list the items in order of
value to your survival:
1. Compass 8. 1 case of rations
2. Small transistor radio 9. Maps of the desert
10. Cushions
3. Shaving mirror
11. 5 litre of an oil/gas
4. Snake repellent mixture
5. 5-liter of water for the four of you 12. 1 bottle of rum
6. 4 square meter of opaque plastic 13. Two boxes of
7. Mosquito netting chocolate
14. 5 meter of ropes
15. One boomerang
101

102. Creating consensus
1. Clearly frame the issue to be decided & determine the
result you desire to achieve (during the meeting).
2. Clearly explain the process of decision making which
will be used.
3. Clearly explain the role of the facilitator.
4. Use a "straw polling" procedure to see how the group is
leaning on an issue and to facilitate the decision making
process.
102

103. Creating consensus
5. The standard for consensus is that the whole group
must agree with the decision. Each individual member
must agree that the decision is what he or she wants.
Do not allow the standard to drop to "I can live with it."
or "I'll go along to get this meeting over with."
Encourage participants to stand their ground.
6. 6. Expect dissent and disagreement during the process
and view this as a positive step towards a high quality
decision. Decisions made without dissent are often of
poor quality.
7. Encourage participants to be direct and concise in all
communications.
103

104. Creating consensus
8. Encourage everyone to actively listen to each person in
the group and to seek to understand other points of
view. Look for the possible merit of each other's
opinions.
9. Encourage everyone to approach the meeting and the
decision in a rational manner rather than an emotional
one.
10. If the meeting gets off track or people become focuses
on their own comfort or emotion, re-focus the group on
the desired result
104

105. 11.Good decisions require consensus
12.Good decisions require a structured approach
and methodology
105

106. Part 6 – Implementation & Communication

107. A picture
speaks a
thousand
words!
107

108. Communication
« Communications
are an essential part
of what you have to
offer to the
stakeholders »
(Michael Dell)
108

109. Communication
• « Corporate communication is a management
function that offers a framework for the effective
coordination of all internal and external
communication with the overall purpose of
establishing and maintaining a favourable reputation
with stakeholders groups upon which the
organisation is dependent. »
(J. Cornelissen)
109

110. Communication
Communication requires
• An emphasis on dialogue and interactivity
• Focus on stakeholders’ needs
• Involvement of all functions and people
• A focus on branding (excellence)
• A focus on how well staff members are regarded
• A focus on the context
• The willingness to be a key driver
• Branding as a key aim
110

111. Communication
The goal of communication
• Is geared towards establishing a favourable corporate
image and reputation with all the stakeholders, so that
they act in a way that is conductive to the success of
the organisation!
• It is the spectre of damaged reputation that lies behind
the urgency of doing and saying the right things, now!
111

112. Workshop
What competencies and skills does a
professional communicator need?

113. The requirements for a professional
communicator (based on a recent UK survey / in order of importance)
Verbal communication
Integrity
Influence, persuasion and diplomacy
Writing and editing skills
Critical judgment
Enthusiasm, motivation and curiosity
Assertiveness and confidence
113

114. The requirements for a professional
communicator (based on a recent UK survey / in order of importance)
(continued)
Reflection, learning from previous experience
Intuition and perception
Creativity
Problem solving
Organisation, planning and task focus
Understanding the business strategy
Presentation skills
Using information technology & e-communications
Budget management
114

115. Communication
• Promises arise from
spoken and written
communication
•It is a matter of gaining a
position in the minds of the
stakeholders
115

116. Communication
There are three concepts that form the
theoretical foundation of corporate
communication:
1. The stakeholders
2. The corporate identity
3. The reputation
• Organisations have realised that now more
than ever they need to listen to and
communicate with a large range of
stakeholders
116

117. Communication- stakeholders
investors
political
governments
groups
suppliers organisation customers
trade
associations communities
employees
117
Source: Corporate communication, J. Cornelissen

118. Communication
Stakeholders
• A stakeholder is any group or individual who
can affect or is affected by the achievement
of the organisation’s purpose and objectives
• The interest can be of an economic or of
moral nature.
• Example of community stakeholders:
consumers, regulators, government,media,
local communities,pressure groups
118

119. Communication
stakeholder awareness understanding involvement commitment
tactics newsletters discussions consultation collective
reports meetings debate problem
memos advertising solving
free adds educational
campaigns
type of informational persuasive dialogue dialogue
strategy
119
Source: Corporate communication, J. Cornelissen

120. Communication
A communication strategy should be based
upon an assessment of the GAP between
how the issue is currently seen and how
YOU want it to be seen.
DG HR.B.3 - Learning and 120
Development

121. Communication
Formulating the content of a communication strategy
vision reputation
strategic intend
define target
audiences
themed messages
message styles
message media
121
Source: Corporate communication, J. Cornelissen

122. Communication
• Avoid vagueness
• How the message is said is paramount
• Tone and manner of communication are customer
based
• Continuity, consistency
• Altering perceptions is very difficult
• No neglect of consistency & harmony in:
– names
– logo
– colour
– message
122

123. Communication
The challenge is to be brief, structured, focused
123

124. Communication
Communication requires an interface between
what is being said and what is being done
124

125. Communication
Remember the basic structure of any message
INFOR-
SITUATION PROBLEM CONCLUSION
MATION
IMPLICIT EXPLICIT
125

126. 126

127. 127

128. • Internet • Forum - Blog
– Website • Wiki
– Static content – Dynamic content
– 1 webmaster – Community
– Yearly content update – Continuous update
• E-mail • Social networks
– One to one – Collaborative content
– One to many – Many to many communication
128

129. Twitter
Blog Website Facebook
LinkedIn
129

130. “The rise of social media makes it more
important than ever to get the branding
fundamentals right”
“You do not need to rewrite the marketing
playbook but to exploit social media
opportunities while keeping an
UNWAVERING FOCUS on meeting the
customers’ needs”
HBR Dec, 2010
130

131. Good communication means?
131

132. 1. Good decisions have taken consequences into
account
2. Good decisions entail clearly defined
responsibilities
3. Good decisions require the right corporate
culture
4. Good decisions require leadership
5. Good decisions require values
132

133. 6. Good decisions require skills
7. Good decisions require anticipation
8. Good decisions require structured thinking
9. Good decisions require questioning
10.Good decisions may require intuition
133

134. 11.Good decisions require consensus
12.Good decisions require structured
implementation
13.Good decisions require clear communication
134

135. Part 7 – Implementation

136. Implementation
1. Define
2. Measure
3. Analyse
4. Innovate or
Improve
DMAIC 5. Control

137. Define
HR & mgt
customer
leadership planning results
market
processes
Improving the drivers impacts the results

138. Define
Performance indicators
How do we know we
are getting closer?
Where are Where are How do
we? we going? we get
there?
Assessment Planning Processes

139. Define
HR & mgt improved
motivation
customer improved
leadership planning Results
market service
processes
Improving the drivers impacts the results

140. Define
What is a process?
INPUT OUTPUT
•A process is a set of linked or related activities transforming
inputs
•The quality of the process determines the quality of the output

141. Define
• A project needs a project leader
• Determine the role of the key players
• Define the boundaries of the project
• Help clarifying the objectives
• Define which information is needed
• Determine his role (desire to have power over a team is
a no-win situation!)

142. Define
A project leader’s check list:
1. The problem
2. The goal
3. Role expectations
4. People involved
5. Restrictions
6. Reporting
7. Next stage

143. Define
A project will have greater success if:
• The problem is related to a key business issue
• The problem is linked to a clearly defined process
• The internal and external beneficiaries are clearly identified
• The improvements can be demonstrated
• The improvements contribute to the overall performance
• There is sufficient organisational support
• The results are visible with a pay-back period

144. Define
Example of a potential result analysis
Expected Benefit of that Expected
improvement improvement busines impact
Reduce errors Less time 5 % increase
in processing spend fixing in monthly
errors, speed revenues
up work flow

145. Define
A project leader’s chart:
How to DMAIC & define the milestones & create a
milestone plan
What is a milestone? Milestones are:
• Measurement points
• Indicate a logical order
• Directed towards the goal
• Allow for communication
Project start Finish

146. Define
Questions to consider
Project
What issues are you addressing?
What problems do customers have with the process?
Expected business results
What will be the business impact of the improving process?
How will team members benefit from succesful completion of this project?
Focus
What information will be collected?
What areas are inside or outside the scope of the team?
On what specific parts of the process will the team focus?
Deliverables
What must the team deliver to be succesful?
Measures
What will be the primary measure of success
How will measures be tracked?
How much improvement is needed and when?

147. Discussion TASK
How would you make
sure that (retail)
investors take the right
decision when
purchasing mutual
funds?
147

148. Assuring investors make the right decisions
(1) (2)
Customer profiling Product profiling
(3)
A perfect match at
the right price
148

149. Assuring investors make the right decisions
Investments 149

150. Assuring investors make the right decisions
150

151. Assuring investors make the right decisions
(1) (2)
Customer profiling Product profiling
(3)
A perfect match
at the right price
151

152. Assuring investors make the right decisions
152

153. Assuring investors make the right decisions
(1) (2)
Customer profiling Product profiling
(3)
A perfect match at
the right price
153

154. Assuring investors make the right decisions
154

155. Measure
• Measure is about process mapping technique
• Different process require different types of process
maps
• Process mapping should lead to process improvement
• The word « process » generates fear and resistance

156. 156

157. Measure
What is a process map?
• A detailed graphical representation of a process flow
• The identification of specific steps eventually opportunities
for improvement
• Required tool to think about value

158. Measure
Why use process maps?
• To sharpen your ideas
• To have a common understanding
• To examen which activities have the greatest impact
on profits
• To reveal non-value added activities
• To serve as a training tool
• To compare the existing process to an ideal, simulated
process

159. Measure
Basic symbols
First and last steps in a
process
Particular steps in a process
Yes-no decision points
Subroutines or connection
points
Flow of movement of the
process

160. Measure
Example : new employee arrival
Arrival Review policies
Office tour
& procedures
no
Clear Answer questions
?
yes
Fill out forms Forms
processing

161. Measure
Example : new employee arrival
Arrival Review policies
Office tour
& procedures
no
What are Clear Answer questions
possible ?
issues? yes
Fill out forms Forms
processing

162. Measure
• Describe the step by
step process of the
things you do between
the alarm clock ringing
in the morning and the
moment you leave the
house.
• How could you
reduce this process or
gain time?

163. Measure
Value stream mapping
A quantitative tool by which one
describes in detail how a process
should operate to create flow
A value stream mapping is the
foundation for all Lean activities
It focuses on the customer and
what he considers as value
Waste abounds in information
processes, which is the reason
why tracking the right
information is so important

164. Measure
Describe the value stream
map for a credit card
attribution process when
an application for a card is
received by mail.
How much time would it
take?

165. Measure
CREDIT CARD PROCESS
Central mail dept
Credit card dept
Request introduction
Request approval
Physical card creation
Verification card
Credit dept mail sort
Central mail dept

166. 3.1.2 Measure
Answer based on an attribution process of a large
bank (source Process Excellence)
The requests for a credit card are sent by the customer via mail.
Central mail officer opens the envelopes (10 sec.) sorts the requests to the
credit card dept. (5 sec.) and places them in the outbox. The mail is
transmitted the next day to the credit card department. Queue time before
next action 8 hours.
Credit card dept mail sort: requests are sorted per region (5 sec.), a data
stamp is added (2 sec.) and the orders are placed in folders for the credit
analysis (10sec.). The work is performed by the credit admin. Qeueu time
before next step 4 hours.
A junior credit analyst is initiating the request (9min. 15 sec.). Queue time
before next step 4 hours.
The senior analyst check the income of the customer (7 min. 45 sec.), check
the internal (5 min.) and external black list (7 min.) for credit abusers and
approve or refuse the request (4 min.). Queue time before the next step 2
hours.

167. Measure
Answer based on an attribution process of a large bank
(source Process Excellence) – (continued)
The junior credit analyst perform the physical creation of the credit card and
print the letter to send the card to the customer (7.5 min.) and files a hard
copy of the card request (90 sec.). Queue time before next step 1 hour.
The senior analyst verifies the created card: name, number, valid date, (3
min.45 sec.). Queue time before the next step 4 hours.
The credit analyst uses the mainframe computer to perform the work.
The credit department mail sorter puts the letter and card in an enveloppe
and closes the envelope (30 sec.) . Queue time before next step 4 hours
The central mail office posts the letter. Queue time before expedition 8
hours.
Total time of the work flow : 128.717 sec.of which
Total cycle time: 2.717 seconds
Total queue time 2100: 126.000 sec.

168. Measure
Funneling is a technique
used to select the critical,
best one or few items
from a whole list of items.
 The critical
process/input variable
from all variables
 The critical step out of
all steps
 The best solution from
a list over several
solutions

169. Measure
Funneling is a technique used:
 when there are too many variables which might have
an impact on the output of the process
 there are too many solutions to choose from
 it would require too much time and money to analyze
everything
 team members have different ideas about what
happens in a process

170. Measure
Priority matrix
Establishing a priority
matrix equally helps
in determining
priorities

171. Measure
1. List all output variables
Output variables 2. Rank and Weight
3. List all Input and these output
10 shots per
Safe for the
accurate
distance
variables
operator
Process variables
minute
Shot
Weight 10 3 1
Drawback angle 9 0 1
5. Cross-Multiply
Stop position 9 0 0
Weight and
Cup position 9 0 0 relationship factor
Left hand 5 5 9
Right hand 5 5 9
Rubber band 9 5 9
4. Evaluate the Ball type 9 9 0
relationships
Ball number 0 5 9
6. Highlight the
Extra operator 1 9 9
critical few
variables

172. Measure
2. List all selection 3. Discard No Go
Solutions and 1. List all concepts or
criteria and weigh
select the reference solutions
there importance
4. Evaluate every
concept and
criterion versus
the reference
5. Count and and score +
summarize when better, -
weighted sums. when worse and
Calculate the total S when the
score per concept same.
6. Highlight
the best
one

173. Measure
Cause and effect diagram Storm Power
Old
Bulb
Burned
Missing
•A cause and effect diagram
Power Outage Out
Bulb
Power Plant
Broken
graphically displays potential Failure
Is Current
On? Loose
Circuit Breaker
causes of a problem No House
Is Bill
Paid?
Current
Missing
•The layout shows cause-and- Unpaid Bill Wall Switch
Lamp
Turned Off Assembly error
effect relationships between the Doesn’t
Turn On
potential causes Not Plugged In
Switch
Broken
Chewed
by Dog Switch
Missing
Cord Cut
Vandal No Contact
Corroded
Plug/Cord Lamp

174. Measure
Cause and effect diagram
Usual profile develop
Unusual profile analyse
Existing
Customers develop
Usual transact
Profiles/trans analyse
Market Unusual trans
actions
Usual profile acquire
Potential
Unusual profile analyse
Customers
Profiles / Usual transact acquire
Potential analyse
Unusual transact
transactions

175. Measure
Data collection
Collecting and analyzing data
takes time and resources.
It is important to ensure sufficient
data, in quantity and type, is
collected right from the start to
prevent having to collect more
data down the road.

176. Measure
Data collection
 However, do not get
overwhelmed by to much
data. Make sure they can still
be reasonably analyzed and
understood, taking into
account the time and
methods available.
 Part of the challenge is to
decide just how much data
will be sufficient (and
representative) to reach a
perfect balance.

177. Analyse
Tools for analysis - a time plot is a graph of data
ordered in time
140
130
120
Number of days
110
100
90
80
70
0 10 20 30

178. Analyse
The importance of order of 65
The process has a sudden
shift.
60
time 55
• Process conditions can 50
change over time. 45
40
Data from one point in 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41
time are not always
comparable to those at Four points look very different from the
others.
65
another point in time. 60
• If you ignore time-related 55
patterns, your conclusions 50
45
may be false. 40
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41

179. Improve
Adjust Plan
Check Do

180. Improve
• The PDCA Cycle is a set of
activities (Plan, Do, Check,
Adjust) designed to drive
continuous improvement.
Adjust Plan
• Initially implemented in
manufacturing, it has broad
Check Do
applicability in business. First
developed by Walter Shewhart,
it is more commonly called the
Deming cycle in Japan where it
was popularized by Edwards
Deming.

181. Improve
What is the PDCA cycle?
• PLAN: plan ahead for change
• DO: execute the plan, taking small steps in controlled
circumstances
• CHECK: check and study the results.
• ADJUST: take action to standardize or improve the
process, eventually adjust the plan

182. Improve
PLAN
• Analyze what you intend to improve, looking for areas
with opportunities for change.
• The first step is to choose areas offering offer the most
return for the effort you put in.
Plan

183. Improve
DO
• Implement the change you decided on in the plan
phase.
• Implement the corrective action.
Do

184. Improve
CHECK
• This is a crucial step in the PDCA cycle.
• After you have implemented the change for a short
time, you must determine how well it is working: is it
really leading to improvement in the way you had
hoped and planned?
Check

185. Improve
ADJUST
• Implementing and then monitoring the change, you must
decide whether it is worth continuing.
• If it consumed too much time, was difficult to adhere to, or
even led to no improvement, you may consider aborting
the change and planning a new one.
• However, if the change led to a desirable improvement or
outcome, you may consider to proceed or adjust.
• Make the changes a routine part of your activity.
Adjust

186. Improve
The usefulness of the PDCA cycle:
• The PDCA cycle is a valuable process that can be
applied to practically anything
• Offers you the most effective and efficient roadmap to
implementation of a solution.
• The PDCA cycle is designed to be used as a dynamic
model: the completion of one turn of the cycle flows
into the beginning of the next.
• Following in the spirit of continuous improvement, the
process can always be reanalyzed and a new test of
change can begin

187. Improve
When can a PDCA cycle be used?
• For daily routine management (for the individual and/or
the team).
• For project management.
• For implementing solutions.
• For problem solving.
• For continuous development and continuous
improvement.

188. Improve
How to use a PDCA cycle
• This is a schematic representation of the use of the
PDCA cycle in the improvement process.
• As each full PDCA cycle comes to completion, a new
and slightly more complex project can be undertaken.
This rolling over feature is integral to the continuous
improvement process.

189. Control
What ?
Why ? Criteria for a good scorecard
1. Policy deployment
Every measure is a part of a chain of cause and
effect linkages that represent the strategy.
2. Linked to business results
Every measure ultimately ties to business
Balanced results.
Scorecard = a control 3. Well-defined KPI’s
dashboard - Expected outcome
- Performance indicator
- Target
4. The balanced scorecard provides a framework
The strategic objectives/critical goals are to be
linked to any of the 9 boxes of the Process
Excellence Assessment Model.

190. Control
A balanced scorecard
• is a system of linked objectives and performance
measures (KPI's) which collectively describes the
strategy of an organization and how that strategy can be
achieved.
• Balanced :
– Not only financial outcomes

191. Control
A balanced scorecard’s use
• A. Typical measurement system weaknesses
• B. We need measures to manage the three main levels
of an organization :
• Organizational level
• Interdepartmental level
• Individual level.

192. Control
Without measures, managers have no basis for :
• Specifically communicating performance expectations to
subordinates;
• Knowing what is going on in their organization;
• Deploying their strategy down to the lowest level;
• Effectively making and supporting decisions regarding
resources, plans, policies, schedules and structures;
• Providing feedback that compares performance to a
target.

193. Control
Strategy How
vision
Organizational level
Critical goals/objectives X+3
KPI
How
What Target
Items to work on
Interdepartmental level
Critical goals/objectives X+1
KPI How
What Target
Projects/problems/processes
Individual level
Objective on individual level
KPI
What Target
Every measure is a part of a chain of cause and effect linkages
that represents the strategy

194. Control
Examples of a KPI
KPI
Expected outcome Perform. indic Target
Strategy Critical goals
Positive trend in Market share 10 %
no. of customers Brand recognition
who differentiate
us from our com-
Delighted customer Improve brand dominance petitors by the
brand they buy
Critical goals KPI
Expected outcome Perform. indic. Target
Positive trend in On time delivery > 95 %
Enhance customer service to the cust. Vendor scorecard Score of 90-95%
service in terms of time, (# complaints) < 5/year
quality & cost
KPI
Individual goals Expected outcome Perform. indic Target
Multi-skill ness
Positive trend in Multi-skill ness Improvement
flexibility to matrix with 1 level
react quicker
to customer
inquiries

195. 1. Good decisions have taken consequences into
account
2. Good decisions entail clearly defined
responsibilities
3. Good decisions require the right corporate
culture
4. Good decisions require leadership
5. Good decisions require values
195

196. 6. Good decisions require skills
7. Good decisions require anticipation
8. Good decisions require structured thinking
9. Good decisions require questioning
10.Good decisions may require intuition
196

197. 11.Good decisions require consensus
12.Good decisions require structured
implementation
13.Good decisions require clear communication
14.Good decisions require a systematic
implementation & performance measurement
15.Good decisions require a disciplined approach
197

198. Part 8 – Change Management

199. Hans Roslings on CHA NGE
199

200. The
WHY
WHAT
HOW
of Change Management

201. Changing attitudes
Changing attitudes is a challenge
confirmation,
justification rational
opinions,
principles
80% of the
activities of
motivation people
decisions
personality
structure

202. Changing attitudes
Discussion
What are obstacles
to change?

203. Changing attitudes
The wrong attitudes
• Standards are made to be
followed not to be improved.
• Cowboy individualism
• Fear of the unknown
• What is in it for me only?
• « Been there, done that… »

204. Why Do People Resist Change?
• The phrase, “overcoming resistance,” indicates an adversarial
relationship … since resistance is an emotional process, the key
is understanding it:
– People resist change because the change is:
• Perceived by them to be negative, and
• They do not want to deal with the reasons for it
– Resistance is a way of expressing feelings of concern about making a change
– These concerns tend to be:
• Concerns over loss of control
• Concerns over vulnerability
– Your task is to help the person who is resisting change to express these
concerns directly

205. Why Resistance Occurs . . .
• Resistance can occur because
people fear:
– Loss of credibility or reputation Indirect Expressions
– Lack of career or financial of Concerns/
Visible Resistance
advancement
– Possible damage to relationships Real/
with boss Underlying
Concerns
– Loss of employment
– Interpersonal rejection
– Change in job role
– Embarrassment/loss of self-esteem
– Job transfer or demotion
Your task is to encourage the full expression of the
real/underlying concerns.

206. Three Steps to Dealing with Resistance
• Step 1: Identify the form the resistance is taking:
– Trust what you see more than what you hear
– Pick up cues
– Listen to yourself — use your own feelings as a barometer
• Uneasy, bored, irritated
– Listen for repetition/telltale phrases
– Make two good-faith responses
• Step 2: Acknowledge, name the resistance:
– Tell person your perception of the resistance
– Do it in a “win/win” manner; neutral, non-aggressive - “What I think I hear you saying
is . . .”
– Tell the person how the resistance is making you feel
– Be specific, clear, authentic
• Step 3: Be quiet, listen, let the person respond:
– Get him/her talking
– Encourage full expression of the concerns
– Gradually uncover underlying resistance/issue - be aware of other forms of
resistance surfacing

207. Dealing With Resistance: What Not To Do
• Fight the resistance • Expect approval,
encouragement, support
• Go into more data and/or affection
collection
• Lose your confidence
• Reengineer in the attempt
to get a better intervention • Expect to have all the answers
• Avoid the individual • Collude with the individual
• Work more with your • Avoid giving “bad news”
“allies” • Use aggressive language
• Give lots of reasons – “You Dummy” Rule
• Get hooked into the details • Delay/wait one more day

208. Tactics to Minimise Resistance
• Explain why • Provide appropriate training in new skills
and coaching in new values and
• Identify the benefits behaviors
• Invite and answer questions • Encourage self-management
• Give more feedback than usual to ensure
• Solicit participation, and, if possible, people always know where they stand
early involvement
• Allow for resistance. Help people let go
• (“first-draft/strawmodel” of the “old”
reviews, membership in
planning/implementation teams, • Measure results, step back and take a
etc.) look at what is going on. Keep asking “Is
the change working the way we want it
• Avoid surprises to?”
• Encourage people to think and act
• Set standards and clear targets creatively
• Look for any “opportunity” created by the
• Inform/involve informal leaders change
• Recognize and reward efforts • Allow for withdrawal and return of people
• Over communicate who are temporarily resistant

209. Changing attitudes
The right attitudes
• Excellent people and companies focus
primarily on beating themselves
• How can we improve ourselves to do
better tomorrow than we did today?
•Where can we improve the end to end
process?
•You are the only one who can change
YOU = M.B.O.
MANAGEMENT BY OBJECTIVES !

210. Changing attitudes
Changing attitudes
Your
know-how Professional Trust Satisfaction
Status
Appreciation &
Income
Every member of staff is at the beginning of
a personal value chain

211. Changing attitudes
• Transforming corporate
performance by
measuring and managing
the drivers of business
success
•80 % of change
initiatives fail due to
human factors
•An organisation moves
slower than the
individuals who make up
the organisation!

212. Changing attitudes
Discussion
•What do you and your
colleagues truly value?
•What can you do as an
individual in a company
that is embarking upon
a different journey?

213. Changing attitudes
•Change management
means the ability to listen,
the ability to teach and
guide, and the ability to
learn and consider
alternative viewpoints.
•It develops the attitude
that you do not always be
right or have all
the answers.

214. Changing attitudes
Discussion
• How can you
ENFORCE change?
214

215. Changing attitudes
QUANTITATIVE
OBJECTIVES
PERFORMANCE
DESCRIPTION PROFILE IMPROVEMENT
QUALITATIVE
OBJECTIVES
Management by Objectives

216. Changing attitudes
Summary step by step goal setting
1. Determine the goals by means of a swot and
questions
2. Determine qualitative and quantitative goals
3. Plan the implementation in a time frame
4. Control in a time frame
5. Establish accountability
6. Determine alternative actions
7. Communication and information to all involved
Management by Objectives

217. Changing attitudes
• You do not directly motivate people, they are
motivated to fulfil the their basic human needs, which
vary in degree or intensity from individual to individual
• The manager’s task is to create reinforcing conditions
where staff can see “what’s in it” for them on
condition they stretch themselves and gap the
difference between goals and performance.

218. Changing attitudes
• Performance should be reviewed on a continuous
basis. This means that in case of none or weak
performance the employee is counselled immediately.
• However, once a year the performance should be
appraised in a more formal manner.

219. Changing attitudes
• There should be no surprises as to the items
discussed.
• The purpose of the review should not be an in
depth analysis of the past but an assessment of
reached objectives, of the present situation of the
employee and above all it should be forward
looking.
• The goal is to improve on the present
performance, whatever it is.

220. Changing attitudes
MBO should be a win-win situation!

221. Changing attitudes
MBO should be a win-win situation!

222. Changing attitudes
MBO should be a win-win situation!
Bottom up Top down
planning planning

223. What are the qualities of an evaluation
process?
MBO should be a win-win situation!

224. Changing attitudes
The qualities of an
evaluation process
1. Importance of the process
2. Partnership
3. Respect
4. Constructive
5. Objective
6. Specific
MBO should be a win-win situation!

225. Changing attitudes
How can you be sure the system works?
• By being fair, by rewarding those who really want
to move forward and by penalising those who do
not. It is a system whereby you either move
upwards or outwards but where there is no room
for mediocrity.
• Average performance pushes overall performance
downwards.
• You want to move upwards, not downwards.

226. Changing attitudes
You want to move upwards, not downwards.

227. Changing attitudes
• The ultimate goal is to be
seen to be better than the
others or at least different
than the others!
• It is the responsibility of
everybody, irrespective of
that person’s position in
the organisation.

228. CHANGE
Discussion
• What kind of
CHANGE is ahead of
us?
• What does it take to
ADAPT?
228

229. CHANGE
1. Aging
2. Power shift eastwards
3. Global connectivity
4. GRIN technologies
5. Environment
Genetics, Robotics, Internet,
229
Nanotechnology

230. Leading Change
insight
wisdom
perspective
A Brief Visual Narrative by Adam Walz

231. Mastering delicate situations
• The more you are
structured the more
chances you have to
reach a solution.
• « Lay back! » You are not
being blamed personally!
• YOU are NOT part of
the problem,
you try to resolve it

232. Mastering delicate situations
• You are looking for a solution in the capacity of a
consultant
• The customer is neither always right nor wrong. It
does not matter. What matters is that you are a
professional solving a problem
• Remember that you are the best advertisement!

233. Mastering delicate situations
• Always take objections very seriously
• Be conscious about your attitude
• Isolate each objection and address them one by one
• Always finish a conversation on a positive note
• Go to the very end
• Conclude with closed questions (yes or no)

234. The attitudes of wisdom
• What matters is concluding
• A customer complaint represents an opportunity
• Think about the marketing aspects of a complaint. A
complaint is a piece of marketing information
• One can commit an error but not twice the same.

235. The attitudes of wisdom
• Never be on the defensive side, you are a
consultant, who is looking for a mutually acceptable
solution
• Never be critical, the only criticism is constructive
criticism
• Never promise what you cannot deliver

236. The attitudes of wisdom
• Learn from each situation what you can make
out of it, knowledge means survival!!!
• Good luck, whatever your level of
professionalism, you do need some luck!

237. Workplace Change
and
Transition
Redirecting your thoughts and overcoming
fear
By Catherine Adenle
http://catherinescareercorner.com

238. Part 9 – Winning

239. CORPORATE CULTURE =
SHARED VALUES & GROUP BEHAVIOUR
NORMS
239

240. ME incorporated =
MY VALUES & MY NORMS
240

241. CORPORATE CULTURE
=
VISIBLE LEVEL
(BRANDING)
&
SHARED VALUES
241

242. Would YOU
love to be the
first one that
comes to mind?
242

243. 243

244. 244

245. The 20 steps for good DECISIONS
1. Examine every alternative
2. Use previous decisions if the are still applicable
3. Make long term decisions with the short term in mind
4. Change decisions that are no longer appropriate
5. Consider the implications of each decision
6. Try to foresee and prepare for any changes
7. Always ask what can go wrong with your decision
8. Always consider the possible outcomes
9. Always try to balance intuition and logic
10. Avoid making decision that have a large element of
chance in them
245

246. The 20 steps for good DECISIONS
11. Follow a precedent when it works
12. Challenge the company culture if need be
13. Be aware of politics behind decisions
14. Weigh the impact of decisions on people
15. Do not be afraid to delegate the process
16. Do not be afraid of rejection, think about an alternative
17. Build your trust in decision making
18. Never make decisions under pressure
19. If it proves to be a wrong decision, take fast action
20. Never postpone vital decisions – make them quickly
246

247. Other final points
• Decision making is not an exact science,
• Behind data there are men and women!
• Thinking is not a tidy process but it should be done with
a sense of order
• Remember that solutions are the seed of new problems
• Bad decisions are unforced errors but if you want to win
their number should be limited
• It is always worthwhile to listen to people
• A problem is a solution in disguise
• Brainstorming: reverse brainstorming = in how many
ways can this idea fail?
247

248. Other final points
• We need critical input from others to remove the filters
from our eyes
• Remember the mental roadblocks:
– Lack of facts
– Lack of conviction
– Lack of a starting point
– Lack of perspective
– Lack of motivation
248

249. Other final points
• IF YOU TRULY WANT TO DEVELOP YOUR
THINKING SKILLS, YOUR TASK IS ESSENTIALLY
ONE OF SELF-DEVELOPMENT
249

250. Other final points
• A STRONG MESSAGE HAS TO BE DELIVERED
BY THE NUMBER ONE
• DATA WITH A SOUL IS A STORY
250

251. WHAT YOU COULD DO AFTER A….
251
GOOD DECISION

252. contact@rogerclaessens.be
252

253. ACTION
1. Fix a meeting with you in your agenda on a regular
basis
2. Act as if you are rowing with a large team even if you
are only a few
3. Have goals and performance evaluations even if you
are a ME incorporated
4. Have the PC- development approach: faster, better,
simpler, cheaper!
5. Give yourself a tap on the shoulder occasionally
253
253

254. www.europa.eu
www.economist.com
www.connectwiththeeuropeans.eu
www.wikipedea.com
www.marketingmagazine.co.uk
www.cim.co.uk
www.amazon.co
www.ec.europa.eu
254

255. « Corporate reputations, branding and HR », G.Martin & S.Hetrick, BH,2006
« Corporate communication »,J.Cornelissen, Sage, 2008
« Growing brand loyalty », R. Evans, Lafferty, 1997
« The black swan », N.Taleb, Pinguin 2007
« Marketing management » Kotler, Dubois, Publi Union, 2000
« eBrands », Phil Carpenter, Harvard School Press, 2001
« Organisational culture and leadership », Edgar H, Schein, Jossey-Bass, 2010
255