Organizational Development

2. To Build the Right Leader
 According to Jim Collins author of “Level 5 Leadership: The Triumph
of Humility and Fierce Resolve”, the essential ingredient for taking a
company to greatness is having a "Level 5" leader, an executive in
whom extreme personal humility blends paradoxically with intense
professional will.
 What we find in a level 5 leader is humility, will, ferocious resolve,
and the tendency to give credit to others while assigning blame to
themselves.
 Obviously if we are talking about a level 5 leader there must be at
least 4 other levels. Leaders at the four other levels can produce
different levels of success but can never take a company to a
sustained level of excellence.
 A level 5 leader is not the only component needed to attaining
greatness in a company however, but we will get to that later.
 So what is the Level 5 Hierarchy?

3. The Level 5 Hierarchy
 Level 5 leaders are a study in duality: Modest and Willful, Shy and
Fearless.
The Level 5 Hierarchy-
 Level 1- Highly Capable Individual- Makes productive contributions
through talent, knowledge, skills, and good work habits.
 Level 2- Contributing Team Member- Contributes to the achievement of
group objectives; works effectively with others in a group setting.
 Level 3- Competent Manager- Organizes people and resources toward
the effective and efficient pursuit of predetermined objectives.
 Level 4- Effective Leader- Catalyzes commitment to and vigorous pursuit
of a clear and compelling vision; stimulates the group to high
performance standards.
 Level 5- Executive- Builds enduring greatness through a paradoxical
combination of personal humility plus professional will.
(Ref.1)

4. You must have someone to Lead…
 Just as his words told us the mix for our leader Jim Collins also
gives us another step and writes “Great leaders do not start with
strategy and vision; they start with getting the right people first
getting the wrong people out and strategy second”. (Ref.1)
 This mix is one of that thrives in both formal and informal means of
business for success. Why fight what works? According to Author
Kathy Williams “Informal relationships rather than formal
management structures are where work really gets done, problems
are solved, and companies gain competitive advantage, particularly
at large companies” (Ref.2).
 When surveyed employees indicated they preferred a peer at work to
turn to when they need to get something done, and they do so
because they respect that person's knowledge and experience.
 Utilizing a formal structure gives a business its “clinical” structure
with rules and regulations. It is the framework of a business while
the informal organization within is the lifeblood, fluid and running
as needed to keep things successful and productive.

5. Making the Transformation
 Organizational transformation is a transition between organizational
states that differ substantially in crucial features such as strategy
and structure (Ref. 3).
 During this transformation we find ourselves in the midst of
multiple and simultaneous major changes at the same time.
 Tushman and Romanelli examined some areas of change in
strategic orientation using a set of choices as key reference for
organizational activities in five specific domains (Ref. 3):
1. Core values and beliefs
2. Business unit strategy
3. Distribution of power
4. Structure
5. Control systems
 A main purpose for making these major transformations is to
address performance gaps. As Cyert and March 1967 explain it “The
prospect that performance could fall short from aspiration levels-
either because of expected diminishing performance due to
environmental threats or because of higher aspirations raised by
new opportunities-will likely impel decision makers to search for and
implement new organizational routines” (Ref. 3).

6. Don’t forget the other guy
 When conducting our transformation and making our strategic
plan we must remember its not just our organizations needs to
take into account. We must define the needs of the customers
and the advantages of the competition.
 Jole Urbany gives us three very important fundamentals in this
regard in his book “Grow by focusing on what matters:
Competitive strategy in 3 circles” (Ref. 6) he lists-
1. The first principle is defining advantage from a perspective of
customer value.
2. The second principle is developing insight about opportunity in a
way that differentiates from the competition.
3. The third principle centers around developing distinctive
capabilities, resources, and assets to execute the positioning
strategy

7. The Perfect Plan
 With a leader, a workforce, and organizational transformation we
now need a plan. Strategic planning is a commonly used
management process, employed by managers in both the private
and public sector to determine the allocation of resources in order
to develop financial and strategic performance (Ref. 4).
 It is generally agreed upon that strategic planning consists of
three components:
1. Formulation- Which involves setting objectives and assessing
external and internal environments.
2. Evaluation
3. Selecting strategic alternatives
 Rhyne, 1987 points out that “A balanced approach has been
found to be associated with greater long term financial success”
(Ref. 4).

8. The Final Product
 Organizational climate, culture, and leadership. The need for each
and the balance of the three are major factors of success.
1. For the leadership it is shown in the efficiency of the management
and the affirmative qualities of the manager which effects the
employee's motivation and thus results in production shifts.
2. The culture of your workforce will dictate the efficiency of your
organization which depends on the efficiency, dedication and
honesty of its workers. If the members of the team are efficient, then
they will work with more enthusiasm. Then the organization will be
able to achieve its goals.
3. Finally you must have a favorable climate for your employees to be
motivated to work in. Denison, 1996 lists four attributes of an
organizations climate (Ref. 5):
a) a Supportive climate
b) a climate of risk taking
c) a climate of cohesiveness
d) a climate with the motivation to achieve

9. Closing
Once again I leave you with words of wisdom from a
great mind. John Quincy Adams said” If your actions
inspire others to dream more, do more, and become
more, you are a leader”.
Thank you for your time, good day.

10. References
• (Ref.1) Jim Collins, Level 5 Leadership: The Triumph of Humility
and Fierce Resolve, Harvard Business Review 83.7,8 (Jul/Aug
2005)
• (Ref.2) Kathy Williams, Employees Turn to "Informal
Organization“, Strategic Finance 89.3 (Sep 2007)
• (Ref.3) Daniel J Wischnevsk, Fariborz Damanpour,
Organizational Transformation and Performance: An Examination
of Three Perspectives, Journal of Managerial Issues 18.1 (Spring
2006)
• (Ref.4) David Jennings, John J Disney, Designing the strategic
planning process: does psychological type matter?, Management
Decision 44.5 (2006)
• (Ref.5) Prabhjot Kaur Mahal, Organizational Culture and
Organizational Climate as a Determinant of Motivation, IUP
Journal of Management Research 8.10 (Oct 2009)
• (Ref.6) Joel E. Urbany, Grow by focusing on what matters:
Competitive strategy in 3 circles, Publication Date: 2010 Credo E-
Books