SlideShare uma empresa Scribd logo
1 de 13
Baixar para ler offline
Turning Goals into Results
The Power of Catalytic Mechanisms
by Jim Collinsby Jim Collins
Courtesy: Harvard Business ReviewCourtesy: Harvard Business Review
Compiled by:
Syed Muhammad Ijaz, FCA, LLB
Group CFO, City Schools.
Special thanks and assistance by:
• Imran Akram-ACA Senior Manager Finance
•Zarka Farooq-Assistant Manager.
What does that mean
“turning goals into results?”
• Executives have big hairy audacious goals also known as
BHAGsBHAGs. Too that end they put forward ambitious vision
statements, enthusiastic speeches, and aggressive goal oriented
schemes, building layers of bureaucratic tantrum. How much of
these are materialized is very well known to all of us, isn’t it?
• Time and over again, many of the powerful managerial tools
have been invented to codify the apparently impossible dreams
into reality – one of the tools is named as Catalytic Mechanism.
• Catalytic mechanism are the link between the objectives and
performance;
1. They galvanize non- bureaucratic means into one another,
2. They are easy to create and implement,
3. They are the most underutilized and most promising
devices,
Executives can use to achieve their BHAGs – Big, Hairy, Audacious,BHAGs – Big, Hairy, Audacious,
Goals.Goals.
Anatomy of BHAGs
There are three characteristics if a good BHAGs:
Examples of BHAGs
The following example better explains the BHAG its characteristics and catalytic
mechanism;
•Granite Rock, that sells crushed gravels, concrete, sand and asphalt gave their company a
new BHAG, total customer satisfaction.
•This was not at all an easy goal to achieve for a family owned company whose employees
are mostly though sweaty people operating rocks and whose customers are not easily
dazzled.
•Now think how we can achieve this ambitious goal?
•Instead of going for the traditional galvanized leadership methodology, Granite Rock,
opted for the concept of “short pay”.
•The bottom of very invoice reads “if you are not satisfied for any reason, don’t pay us for
it, imply scratch out the line item, write a brief note about the problem and return copy of
this invoice along with your check for the balance”.
•No doubt “short pay” was a critical device for turning BHAG into reality and improving
razor thin margins to profits ratios.
•Granite Rocks was dead serious about the customer satisfaction in a what that goes far
beyond slogans and finally it keep Granite Rock from basking into glory of its remarkable
success.
•Another device “red flag” concept was introduced by Jim Collins in his class which gave
the students the right to use it once for a quarter, since its non transferable and saleable. But
it give opportunity equally to each student to share their views and take part in upfront
discussions.
Characteristics of a Catalytic Mechanisms
Catalytic Mechanisms produces desired
results in unpredictable ways:
• Executives while identifying bold organizational goals, first design plethora of
systems, controls, procedures and practices, this process is named “alignment”.
• Controls that undergird alignment also creates bureaucracy and it should be
news to no one that bureaucracy does not breed extraordinary results, since
bureaucracy leads to predictability and conformity.
• Organizations achieve greatness when they are allowed to do unexpected things
and take initiative for the creativity and think out of the box. That is when
amazing results occur.
Example:
1. Take example of 3M where 15% rule was introduces when the scientists were allowed to
utilize the lab out for 15% of their total time and they come up with big great ideas and see
3M sales increases by 40 folds since then.
• Ultimately, introducing catalytic mechanism leads to better results , variation,
improvement and enhances results.
• Thus, giving up controls and decreasing predictability, you increase the
probability of attaining extraordinary results.
Catalytic Mechanism distributes power for the
benefit of overall system, often to the great
discomfort of those who traditionally hold power;
• With enough powers executives can always get people jump through hoops.
Example:
If increasing market share is the dream, then they will only promote those managers who make
it happen.
• “Short pay” distributes powers to the great discomfort of Granite Rock’s
executives, similarly, “Red Flag” distributes powers to the great discomfort of
teachers but to the ultimate improvement of learning in general.
• Catalytic mechanisms force the right things to happen even though those in
power often have a vested interest in the right things not happening.
• Catalytic mechanism exemplifies the beauty and power of redistributing powers.
• Catalytic mechanism tilts the balance of power away from inertia and towards
change.
• When executives vest people with power and responsibility and step out of the
way, vast reservoirs of energy and competence flow forth.
• Again we have a paradox, the more executives disperse power and responsibility
the more likely the organization is to reach its big hairy audacious goal.
Catalytic Mechanism has teeth;
• Plenty of the organizations state the lofty intentions to empower people few
translates that into results with a mechanism that has teeth like “Red Flag”.
• Catalytic mechanism puts a process in place that all but guarantees that the
vision will be fulfilled. A catalytic mechanism has a sharp set of teeth.
Example:
Take an example of a Nucor’s Steel Corporation, to be an organization whose workers and
management share the common goal of being the most efficient, high quality steel operation
in the world, thereby creating job security and corporate prosperity in and industry
ravaged by foreign competition.
• Nucor’s vision may sound warm and fuzzy. Dig deeper, and you will see that it
actually leaves no room for unproductive employees.
Examples:
Powerful mechanism with teeth;
• Five people do the work that ten do at other steel companies and get paid like eight.
Catalytic mechanism ejects
viruses;
• Traditionally controls are designed to get employees to act the “right” way and
do the “right” things even if they are not inclined.
• But catalytic mechanism help organizations to get the right people in the first
place keep them and eject those who do not share the company’s core values.
• “People are your most important asset” is wrong, “right people are your most
important asset”.
• The real challenge is to find people who already share your core values and
create a catalytic mechanism and those who don’t share the core values will self
eject themselves.
• You are a leader if and only if people chose you to be and thus W.L Gore &
associates come up with an idea that most creative and productive work came
when people freely made commitments to one another not when the bosses told
them to do so. This mechanism attracted the right people like magnet and pulled
the wrong ones away.
Catalytic Mechanism produces an ongoing
effect;
• Leaders who feign a crisis, and creates a burning platform without
simultaneously building catalytic mechanism do more harm than good by
creating a syndrome of crisis addiction.
• To produce lasting effects they have to shift from orchestrating a series of
events to building catalytic mechanism.
• Part of failure is based upon the approach to reform , too often buzzwords
rather than catalytic mechanism that produces sustained effects.
• The ongoing effect of a catalytic mechanism in a corporate setting goes like;
CEO of kimberly-clark created his BHAG to transform the company from a mediocre forest
and paper product company onto a world class consumer goods company, for that he
create a catalytic event and a catalytic mechanism, “he sold a big chunk of company’s
paper production mills thus leaving no easy escape route from the dream and committed
company head to head competition with the best consumer products company in world
Proctor and Gamble.”
With entry into disposable diapers kimberly clark entered as a direct rival of P&G
“The beauty of catalytic mechanism unlike the “change or die” is its ongoing
effect as powerful today as it was in past”.
Traditional managerial
device, control or
mechanism.
Catalytic Mechanism Examples of Catalytic
Mechanism
Reduces variation as it
enlarges the organization’s
bureaucracy
Produces desired results in
unpredictable ways
Ref Flag made ferociously opinionated
CEO listen to the challenge of an MBA
student improving the knowledge of
whole class despite of the unexpected
nature of exchange.
Concentrates power in the
hands of authorities who can
force people to obey their
commands
Distributes powers for the
benefit of overall system to the
discomfort of those who have
traditionally holding powers
New government rule allowed a low
level manager to expunge an
immensely wasteful regulation that
required nearly new uniforms to be
burned.
Is understood by employees
and executives alike as merely
an intention
Has sharp set of teeth Short pay at granite rock allows
customers to pay only for the products
that satisfy them.
Attempts to stimulate the right
behaviors from the wrong
people
Attracts the right people and
ejects viruses
W.L.Gore & associates employees can
in effect fir their bosses ensuring non
hierarchical leadership.
Has the short lived impact of a
single event or a fad
Produces an ongoing effect Kimberly clark put itself into head to
head competition with proctor and
gamble to impel better performance in
the comsuner goods arket place such a
strategy is still working 30 years later.
Catalytic Mechanism-Breaking from Tradition;
Principles to follow while forming a catalytic
mechanism;
1. Don’t just add, remove
2. Create, don’t copy
3. Use money but not only money
4. Allow your mechanism to evolve
5. Build an integrated set
• Developing a set of catalytic mechanism should be an organic process, an
ongoing discipline, a habit of mind and action.
• Catalytic mechanism should be catalysts not inhibitors.
• After all, a catalytic mechanism alone will not create greatness they need a
dream to guide them but if you blend huge intangible aspirations with
simple tangible catalytic mechanism then you will have the magic
combination from which sustained excellence grows.
Conclusion:
“If you build castles in the air, your work need not to be lost, that is where they
should be. Now put foundations under them”.
BHAGs are the company’s wildest dreams. Catalytic Mechanisms are their
foundations. Build them both.
That’s it!That’s it!

Mais conteúdo relacionado

Destaque

BEPS Webcast #8 - Launch of the 2015 Final Reports
BEPS Webcast #8 - Launch of the 2015 Final ReportsBEPS Webcast #8 - Launch of the 2015 Final Reports
BEPS Webcast #8 - Launch of the 2015 Final ReportsOECDtax
 
Finance bill 2015 16_Changes Proposed in Sales Tax Act, 1990
Finance bill 2015 16_Changes Proposed in Sales Tax Act, 1990Finance bill 2015 16_Changes Proposed in Sales Tax Act, 1990
Finance bill 2015 16_Changes Proposed in Sales Tax Act, 1990Muhammad Ijaz Syed
 
Interpretation of Statutes (English Law)
Interpretation of Statutes (English Law)Interpretation of Statutes (English Law)
Interpretation of Statutes (English Law)Muhammad Ijaz Syed
 
Advanced Taxation (CFAP5) by Fawad Hassan [Lecture1]
Advanced Taxation (CFAP5) by Fawad Hassan [Lecture1]Advanced Taxation (CFAP5) by Fawad Hassan [Lecture1]
Advanced Taxation (CFAP5) by Fawad Hassan [Lecture1]Fawad Hassan
 

Destaque (7)

Inheritance Tax Seminar By Zee Shan Smartfield Accountants In Leicester
Inheritance Tax Seminar By Zee Shan Smartfield Accountants In LeicesterInheritance Tax Seminar By Zee Shan Smartfield Accountants In Leicester
Inheritance Tax Seminar By Zee Shan Smartfield Accountants In Leicester
 
Income tax ordinance (updated upto 01.07.14)
Income tax ordinance (updated upto 01.07.14)Income tax ordinance (updated upto 01.07.14)
Income tax ordinance (updated upto 01.07.14)
 
Finance act 2016 lcci
Finance act 2016 lcciFinance act 2016 lcci
Finance act 2016 lcci
 
BEPS Webcast #8 - Launch of the 2015 Final Reports
BEPS Webcast #8 - Launch of the 2015 Final ReportsBEPS Webcast #8 - Launch of the 2015 Final Reports
BEPS Webcast #8 - Launch of the 2015 Final Reports
 
Finance bill 2015 16_Changes Proposed in Sales Tax Act, 1990
Finance bill 2015 16_Changes Proposed in Sales Tax Act, 1990Finance bill 2015 16_Changes Proposed in Sales Tax Act, 1990
Finance bill 2015 16_Changes Proposed in Sales Tax Act, 1990
 
Interpretation of Statutes (English Law)
Interpretation of Statutes (English Law)Interpretation of Statutes (English Law)
Interpretation of Statutes (English Law)
 
Advanced Taxation (CFAP5) by Fawad Hassan [Lecture1]
Advanced Taxation (CFAP5) by Fawad Hassan [Lecture1]Advanced Taxation (CFAP5) by Fawad Hassan [Lecture1]
Advanced Taxation (CFAP5) by Fawad Hassan [Lecture1]
 

Semelhante a Catalytic mechanism_turninggoalsintoresults

Management Innovation
Management Innovation Management Innovation
Management Innovation Elif Boncuk
 
Agile Organizations with Scrum@Scale
Agile Organizations with Scrum@ScaleAgile Organizations with Scrum@Scale
Agile Organizations with Scrum@ScalePaolo Sammicheli
 
Innovation and creativity 06 innovative organizations
Innovation and creativity 06 innovative organizationsInnovation and creativity 06 innovative organizations
Innovation and creativity 06 innovative organizationsKamal AL MASRI
 
GE's two decade transformation
GE's two decade transformationGE's two decade transformation
GE's two decade transformationAllam Dinesh Reddy
 
Pmi 124796324233 Phpapp01
Pmi 124796324233 Phpapp01Pmi 124796324233 Phpapp01
Pmi 124796324233 Phpapp01jasonhian
 
Launching Catalytic Breakthrough Projects
Launching Catalytic Breakthrough ProjectsLaunching Catalytic Breakthrough Projects
Launching Catalytic Breakthrough ProjectsMasterful Coaching
 
GE’s two Decades Transformation
GE’s two Decades TransformationGE’s two Decades Transformation
GE’s two Decades TransformationKaran Jaidka
 
Agile Organization with Scrum@Scale, Vimar Spa a real example
Agile Organization with Scrum@Scale, Vimar Spa a real exampleAgile Organization with Scrum@Scale, Vimar Spa a real example
Agile Organization with Scrum@Scale, Vimar Spa a real examplePaolo Sammicheli
 
The Importance of Change Within Business
The Importance of Change Within BusinessThe Importance of Change Within Business
The Importance of Change Within BusinessTommy Grice
 
Ignore middle managers at your peril!!!. Why middle managers hold the key to ...
Ignore middle managers at your peril!!!. Why middle managers hold the key to ...Ignore middle managers at your peril!!!. Why middle managers hold the key to ...
Ignore middle managers at your peril!!!. Why middle managers hold the key to ...IQ Business - agility@IQ
 
An Effective Implementation Strategy And The Transition...
An Effective Implementation Strategy And The Transition...An Effective Implementation Strategy And The Transition...
An Effective Implementation Strategy And The Transition...Kelley Hunter
 
Beyond Performance
Beyond Performance Beyond Performance
Beyond Performance GMR Group
 
Challenges and Evolution of Organizational Behaviour
Challenges and Evolution of Organizational BehaviourChallenges and Evolution of Organizational Behaviour
Challenges and Evolution of Organizational BehaviourBhartiSharma238
 
Adaptibility: the new competitive advantage
Adaptibility: the new competitive advantageAdaptibility: the new competitive advantage
Adaptibility: the new competitive advantageShwetanshu Gupta
 
Winning_Group Leadership and change management
Winning_Group Leadership and change managementWinning_Group Leadership and change management
Winning_Group Leadership and change managementSheikhHasinFayez1
 
How To Accelerate Sustainable Growth
How To Accelerate Sustainable GrowthHow To Accelerate Sustainable Growth
How To Accelerate Sustainable GrowthFaisal Hoque
 
Feedback from the frontlines
Feedback from the frontlinesFeedback from the frontlines
Feedback from the frontlinesChelse Benham
 
Creating a Culture of Operational Discipline that leads to Operational Excell...
Creating a Culture of Operational Discipline that leads to Operational Excell...Creating a Culture of Operational Discipline that leads to Operational Excell...
Creating a Culture of Operational Discipline that leads to Operational Excell...Christopher Seifert
 

Semelhante a Catalytic mechanism_turninggoalsintoresults (20)

Management Innovation
Management Innovation Management Innovation
Management Innovation
 
Agile Organizations with Scrum@Scale
Agile Organizations with Scrum@ScaleAgile Organizations with Scrum@Scale
Agile Organizations with Scrum@Scale
 
Innovation and creativity 06 innovative organizations
Innovation and creativity 06 innovative organizationsInnovation and creativity 06 innovative organizations
Innovation and creativity 06 innovative organizations
 
GE's two decade transformation
GE's two decade transformationGE's two decade transformation
GE's two decade transformation
 
Pmi 124796324233 Phpapp01
Pmi 124796324233 Phpapp01Pmi 124796324233 Phpapp01
Pmi 124796324233 Phpapp01
 
Launching Catalytic Breakthrough Projects
Launching Catalytic Breakthrough ProjectsLaunching Catalytic Breakthrough Projects
Launching Catalytic Breakthrough Projects
 
GE’s two Decades Transformation
GE’s two Decades TransformationGE’s two Decades Transformation
GE’s two Decades Transformation
 
Six Sigma Essay
Six Sigma EssaySix Sigma Essay
Six Sigma Essay
 
Agile Organization with Scrum@Scale, Vimar Spa a real example
Agile Organization with Scrum@Scale, Vimar Spa a real exampleAgile Organization with Scrum@Scale, Vimar Spa a real example
Agile Organization with Scrum@Scale, Vimar Spa a real example
 
Good togreat
Good togreatGood togreat
Good togreat
 
The Importance of Change Within Business
The Importance of Change Within BusinessThe Importance of Change Within Business
The Importance of Change Within Business
 
Ignore middle managers at your peril!!!. Why middle managers hold the key to ...
Ignore middle managers at your peril!!!. Why middle managers hold the key to ...Ignore middle managers at your peril!!!. Why middle managers hold the key to ...
Ignore middle managers at your peril!!!. Why middle managers hold the key to ...
 
An Effective Implementation Strategy And The Transition...
An Effective Implementation Strategy And The Transition...An Effective Implementation Strategy And The Transition...
An Effective Implementation Strategy And The Transition...
 
Beyond Performance
Beyond Performance Beyond Performance
Beyond Performance
 
Challenges and Evolution of Organizational Behaviour
Challenges and Evolution of Organizational BehaviourChallenges and Evolution of Organizational Behaviour
Challenges and Evolution of Organizational Behaviour
 
Adaptibility: the new competitive advantage
Adaptibility: the new competitive advantageAdaptibility: the new competitive advantage
Adaptibility: the new competitive advantage
 
Winning_Group Leadership and change management
Winning_Group Leadership and change managementWinning_Group Leadership and change management
Winning_Group Leadership and change management
 
How To Accelerate Sustainable Growth
How To Accelerate Sustainable GrowthHow To Accelerate Sustainable Growth
How To Accelerate Sustainable Growth
 
Feedback from the frontlines
Feedback from the frontlinesFeedback from the frontlines
Feedback from the frontlines
 
Creating a Culture of Operational Discipline that leads to Operational Excell...
Creating a Culture of Operational Discipline that leads to Operational Excell...Creating a Culture of Operational Discipline that leads to Operational Excell...
Creating a Culture of Operational Discipline that leads to Operational Excell...
 

Mais de Muhammad Ijaz Syed

Jurisdiction of courts under cpc 1908
Jurisdiction of courts under cpc 1908Jurisdiction of courts under cpc 1908
Jurisdiction of courts under cpc 1908Muhammad Ijaz Syed
 
Benamitransactions(prohibition)act2017
Benamitransactions(prohibition)act2017Benamitransactions(prohibition)act2017
Benamitransactions(prohibition)act2017Muhammad Ijaz Syed
 
ANTI-MONEY LAUNDERING ACT, 2010
ANTI-MONEY LAUNDERING ACT, 2010 ANTI-MONEY LAUNDERING ACT, 2010
ANTI-MONEY LAUNDERING ACT, 2010 Muhammad Ijaz Syed
 
Employees' Old age Benefit Act, 1976
Employees' Old age Benefit Act, 1976Employees' Old age Benefit Act, 1976
Employees' Old age Benefit Act, 1976Muhammad Ijaz Syed
 
Sales Tax Act, 1990 Scope and Chargeability
Sales Tax Act, 1990 Scope and ChargeabilitySales Tax Act, 1990 Scope and Chargeability
Sales Tax Act, 1990 Scope and ChargeabilityMuhammad Ijaz Syed
 
Shared Service Centers - A way of internal outsourcing
Shared Service Centers - A way of internal outsourcingShared Service Centers - A way of internal outsourcing
Shared Service Centers - A way of internal outsourcingMuhammad Ijaz Syed
 
Financial Statement Analysis Lecture1 1
Financial Statement Analysis Lecture1 1Financial Statement Analysis Lecture1 1
Financial Statement Analysis Lecture1 1Muhammad Ijaz Syed
 
Risk And Uncertainty Lecture 2
Risk And Uncertainty Lecture 2Risk And Uncertainty Lecture 2
Risk And Uncertainty Lecture 2Muhammad Ijaz Syed
 
Ip Ps Related Legal Provisions In
Ip Ps Related Legal Provisions InIp Ps Related Legal Provisions In
Ip Ps Related Legal Provisions InMuhammad Ijaz Syed
 

Mais de Muhammad Ijaz Syed (20)

Jurisdiction of courts under cpc 1908
Jurisdiction of courts under cpc 1908Jurisdiction of courts under cpc 1908
Jurisdiction of courts under cpc 1908
 
Audit the practical side
Audit the practical sideAudit the practical side
Audit the practical side
 
Benamitransactions(prohibition)act2017
Benamitransactions(prohibition)act2017Benamitransactions(prohibition)act2017
Benamitransactions(prohibition)act2017
 
Aml 2010 benami_2017_taxbar
Aml 2010 benami_2017_taxbarAml 2010 benami_2017_taxbar
Aml 2010 benami_2017_taxbar
 
ANTI-MONEY LAUNDERING ACT, 2010
ANTI-MONEY LAUNDERING ACT, 2010 ANTI-MONEY LAUNDERING ACT, 2010
ANTI-MONEY LAUNDERING ACT, 2010
 
Employees' Old age Benefit Act, 1976
Employees' Old age Benefit Act, 1976Employees' Old age Benefit Act, 1976
Employees' Old age Benefit Act, 1976
 
Public procurement rules 2004
Public procurement rules 2004Public procurement rules 2004
Public procurement rules 2004
 
CORPORATIZATION
CORPORATIZATIONCORPORATIZATION
CORPORATIZATION
 
Sales Tax Act, 1990 Scope and Chargeability
Sales Tax Act, 1990 Scope and ChargeabilitySales Tax Act, 1990 Scope and Chargeability
Sales Tax Act, 1990 Scope and Chargeability
 
Shared Service Centers - A way of internal outsourcing
Shared Service Centers - A way of internal outsourcingShared Service Centers - A way of internal outsourcing
Shared Service Centers - A way of internal outsourcing
 
Bullet Points Budget 2010 11
Bullet Points Budget 2010 11Bullet Points Budget 2010 11
Bullet Points Budget 2010 11
 
Taxation Of Derivatives
Taxation Of DerivativesTaxation Of Derivatives
Taxation Of Derivatives
 
Financial Statement Analysis Lecture1 1
Financial Statement Analysis Lecture1 1Financial Statement Analysis Lecture1 1
Financial Statement Analysis Lecture1 1
 
Risk And Uncertainty Lecture 2
Risk And Uncertainty Lecture 2Risk And Uncertainty Lecture 2
Risk And Uncertainty Lecture 2
 
Analysis Of Leverage
Analysis Of LeverageAnalysis Of Leverage
Analysis Of Leverage
 
Wppf
WppfWppf
Wppf
 
Trade Policy 2009 10
Trade Policy 2009 10Trade Policy 2009 10
Trade Policy 2009 10
 
Salestax
SalestaxSalestax
Salestax
 
Ip Ps Related Legal Provisions In
Ip Ps Related Legal Provisions InIp Ps Related Legal Provisions In
Ip Ps Related Legal Provisions In
 
Income Tax Ordinance 2001
Income Tax Ordinance 2001Income Tax Ordinance 2001
Income Tax Ordinance 2001
 

Último

MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptxChapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptxesiyasmengesha
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Trauma Training Service for First Responders
Trauma Training Service for First RespondersTrauma Training Service for First Responders
Trauma Training Service for First RespondersBPOQe
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyfashionfound007
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 

Último (20)

MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptxChapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
Trauma Training Service for First Responders
Trauma Training Service for First RespondersTrauma Training Service for First Responders
Trauma Training Service for First Responders
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the company
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 

Catalytic mechanism_turninggoalsintoresults

  • 1. Turning Goals into Results The Power of Catalytic Mechanisms by Jim Collinsby Jim Collins Courtesy: Harvard Business ReviewCourtesy: Harvard Business Review Compiled by: Syed Muhammad Ijaz, FCA, LLB Group CFO, City Schools. Special thanks and assistance by: • Imran Akram-ACA Senior Manager Finance •Zarka Farooq-Assistant Manager.
  • 2. What does that mean “turning goals into results?” • Executives have big hairy audacious goals also known as BHAGsBHAGs. Too that end they put forward ambitious vision statements, enthusiastic speeches, and aggressive goal oriented schemes, building layers of bureaucratic tantrum. How much of these are materialized is very well known to all of us, isn’t it? • Time and over again, many of the powerful managerial tools have been invented to codify the apparently impossible dreams into reality – one of the tools is named as Catalytic Mechanism. • Catalytic mechanism are the link between the objectives and performance; 1. They galvanize non- bureaucratic means into one another, 2. They are easy to create and implement, 3. They are the most underutilized and most promising devices, Executives can use to achieve their BHAGs – Big, Hairy, Audacious,BHAGs – Big, Hairy, Audacious, Goals.Goals.
  • 3. Anatomy of BHAGs There are three characteristics if a good BHAGs:
  • 4. Examples of BHAGs The following example better explains the BHAG its characteristics and catalytic mechanism; •Granite Rock, that sells crushed gravels, concrete, sand and asphalt gave their company a new BHAG, total customer satisfaction. •This was not at all an easy goal to achieve for a family owned company whose employees are mostly though sweaty people operating rocks and whose customers are not easily dazzled. •Now think how we can achieve this ambitious goal? •Instead of going for the traditional galvanized leadership methodology, Granite Rock, opted for the concept of “short pay”. •The bottom of very invoice reads “if you are not satisfied for any reason, don’t pay us for it, imply scratch out the line item, write a brief note about the problem and return copy of this invoice along with your check for the balance”. •No doubt “short pay” was a critical device for turning BHAG into reality and improving razor thin margins to profits ratios. •Granite Rocks was dead serious about the customer satisfaction in a what that goes far beyond slogans and finally it keep Granite Rock from basking into glory of its remarkable success. •Another device “red flag” concept was introduced by Jim Collins in his class which gave the students the right to use it once for a quarter, since its non transferable and saleable. But it give opportunity equally to each student to share their views and take part in upfront discussions.
  • 5. Characteristics of a Catalytic Mechanisms
  • 6. Catalytic Mechanisms produces desired results in unpredictable ways: • Executives while identifying bold organizational goals, first design plethora of systems, controls, procedures and practices, this process is named “alignment”. • Controls that undergird alignment also creates bureaucracy and it should be news to no one that bureaucracy does not breed extraordinary results, since bureaucracy leads to predictability and conformity. • Organizations achieve greatness when they are allowed to do unexpected things and take initiative for the creativity and think out of the box. That is when amazing results occur. Example: 1. Take example of 3M where 15% rule was introduces when the scientists were allowed to utilize the lab out for 15% of their total time and they come up with big great ideas and see 3M sales increases by 40 folds since then. • Ultimately, introducing catalytic mechanism leads to better results , variation, improvement and enhances results. • Thus, giving up controls and decreasing predictability, you increase the probability of attaining extraordinary results.
  • 7. Catalytic Mechanism distributes power for the benefit of overall system, often to the great discomfort of those who traditionally hold power; • With enough powers executives can always get people jump through hoops. Example: If increasing market share is the dream, then they will only promote those managers who make it happen. • “Short pay” distributes powers to the great discomfort of Granite Rock’s executives, similarly, “Red Flag” distributes powers to the great discomfort of teachers but to the ultimate improvement of learning in general. • Catalytic mechanisms force the right things to happen even though those in power often have a vested interest in the right things not happening. • Catalytic mechanism exemplifies the beauty and power of redistributing powers. • Catalytic mechanism tilts the balance of power away from inertia and towards change. • When executives vest people with power and responsibility and step out of the way, vast reservoirs of energy and competence flow forth. • Again we have a paradox, the more executives disperse power and responsibility the more likely the organization is to reach its big hairy audacious goal.
  • 8. Catalytic Mechanism has teeth; • Plenty of the organizations state the lofty intentions to empower people few translates that into results with a mechanism that has teeth like “Red Flag”. • Catalytic mechanism puts a process in place that all but guarantees that the vision will be fulfilled. A catalytic mechanism has a sharp set of teeth. Example: Take an example of a Nucor’s Steel Corporation, to be an organization whose workers and management share the common goal of being the most efficient, high quality steel operation in the world, thereby creating job security and corporate prosperity in and industry ravaged by foreign competition. • Nucor’s vision may sound warm and fuzzy. Dig deeper, and you will see that it actually leaves no room for unproductive employees. Examples: Powerful mechanism with teeth; • Five people do the work that ten do at other steel companies and get paid like eight.
  • 9. Catalytic mechanism ejects viruses; • Traditionally controls are designed to get employees to act the “right” way and do the “right” things even if they are not inclined. • But catalytic mechanism help organizations to get the right people in the first place keep them and eject those who do not share the company’s core values. • “People are your most important asset” is wrong, “right people are your most important asset”. • The real challenge is to find people who already share your core values and create a catalytic mechanism and those who don’t share the core values will self eject themselves. • You are a leader if and only if people chose you to be and thus W.L Gore & associates come up with an idea that most creative and productive work came when people freely made commitments to one another not when the bosses told them to do so. This mechanism attracted the right people like magnet and pulled the wrong ones away.
  • 10. Catalytic Mechanism produces an ongoing effect; • Leaders who feign a crisis, and creates a burning platform without simultaneously building catalytic mechanism do more harm than good by creating a syndrome of crisis addiction. • To produce lasting effects they have to shift from orchestrating a series of events to building catalytic mechanism. • Part of failure is based upon the approach to reform , too often buzzwords rather than catalytic mechanism that produces sustained effects. • The ongoing effect of a catalytic mechanism in a corporate setting goes like; CEO of kimberly-clark created his BHAG to transform the company from a mediocre forest and paper product company onto a world class consumer goods company, for that he create a catalytic event and a catalytic mechanism, “he sold a big chunk of company’s paper production mills thus leaving no easy escape route from the dream and committed company head to head competition with the best consumer products company in world Proctor and Gamble.” With entry into disposable diapers kimberly clark entered as a direct rival of P&G “The beauty of catalytic mechanism unlike the “change or die” is its ongoing effect as powerful today as it was in past”.
  • 11. Traditional managerial device, control or mechanism. Catalytic Mechanism Examples of Catalytic Mechanism Reduces variation as it enlarges the organization’s bureaucracy Produces desired results in unpredictable ways Ref Flag made ferociously opinionated CEO listen to the challenge of an MBA student improving the knowledge of whole class despite of the unexpected nature of exchange. Concentrates power in the hands of authorities who can force people to obey their commands Distributes powers for the benefit of overall system to the discomfort of those who have traditionally holding powers New government rule allowed a low level manager to expunge an immensely wasteful regulation that required nearly new uniforms to be burned. Is understood by employees and executives alike as merely an intention Has sharp set of teeth Short pay at granite rock allows customers to pay only for the products that satisfy them. Attempts to stimulate the right behaviors from the wrong people Attracts the right people and ejects viruses W.L.Gore & associates employees can in effect fir their bosses ensuring non hierarchical leadership. Has the short lived impact of a single event or a fad Produces an ongoing effect Kimberly clark put itself into head to head competition with proctor and gamble to impel better performance in the comsuner goods arket place such a strategy is still working 30 years later. Catalytic Mechanism-Breaking from Tradition;
  • 12. Principles to follow while forming a catalytic mechanism; 1. Don’t just add, remove 2. Create, don’t copy 3. Use money but not only money 4. Allow your mechanism to evolve 5. Build an integrated set • Developing a set of catalytic mechanism should be an organic process, an ongoing discipline, a habit of mind and action. • Catalytic mechanism should be catalysts not inhibitors. • After all, a catalytic mechanism alone will not create greatness they need a dream to guide them but if you blend huge intangible aspirations with simple tangible catalytic mechanism then you will have the magic combination from which sustained excellence grows. Conclusion: “If you build castles in the air, your work need not to be lost, that is where they should be. Now put foundations under them”. BHAGs are the company’s wildest dreams. Catalytic Mechanisms are their foundations. Build them both.