Mullins L.J. Management and organisational behaviour, Seventh edition
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CHAPTER 23 MANAGEMENT DEVELOPMENT AND ORGANISATIONAL EFFECTIVENESS
MANAGEMENT IN ACTION 23.2
A cure for growing pains – Costa Coffee
THE ORGANISATION
While Whitbread itself may be experiencing
difficult times at the moment, at least one
business under its umbrella is currently ex-
periencing almost runaway success. With over
235 outlets, and new ones being opened at a
rate of over one per week, Costa Coffee is the
fastest growing business of its kind and is
already becoming a household name as it
colonises the high streets.
Indeed, the company’s product is served
in over 3,500 outlets, including hotels, restau-
rants and prestigious venues such as the late
Millennium Dome or The London Eye. And, in
an example of the innovative thinking which
has become its stock in trade, Costa has
opened cafes within Waterstones bookstores,
various Homebase outlets, and even the
Abbey National bank.
THE CHALLENGE
Such prodigious growth has natuarlly been
welcomed by Costa Coffee’s operational team, and yet the
company’s drive for expansion had caused some administra-
tive growing pains for the organisation. Costa Coffee’s senior
operations team was confronted with some challenging
development issues as many staff struggled to cope with the
increased management responsibilities placed upon them.
Paul Mildenstein, Operations Director, explained: ‘People
were very focused on the horizontal growth of the company,
rather than the organic base business – it was very much
about “the next unit”.’
Many Operations Managers saw their estate double in size
every quarter, and Senior Store Managers were often unlikely
to report to the same Operations Manager for more than a
few months. Different Operations Managers had recruited
help to deal with their increasingly unwieldy estates. However,
this resulted in each developing their own empire of adminis-
trative staff, many acting with little or no accountability. The
result? Lines of communication were becoming confused and
often stretched to breaking point. And battlefield promotions
saw longer serving staff move into roles for which they were
wholly unprepared.
To rectify this situation, before it could have an impact on
Costa’s success, Paul Mildenstein instigated an organisa-
tional overhaul. His goals were:
■ To profile the different aroles and responsibilities required
to deliver the 3 year business plan.
■ To set in place a new, clearer management structure,
replacing Operations Managers and Senior Store Managers
with Marketing Managers and Retail Development
Managers who would help grow Costa’s market share.
■ To establish a clear management development pro-
gramme to provide personal growth and succession
planning vital to a fast moving vusiness.
■ To ensure a stable platform for Costa’s continued growth.
THE SOLUTION
Mildenstein called in Hertfordshire-based management
consultancy Deacon Rosset, who had already had experience
of the Whitbread organisation, to help him put his plan
into action.
After analysing the situation for itself, Deacon Rosset
decided to use its established Competencies Programme to
determine the different levels of management experience and
skills within the organisation and to identify the areas where
further development was needed. Together with Mildenstein
and his team, the company decided to use five key compe-
tencies as their benchmark for success. These were:
■ Leadership. e.g. Co-ordinating and developing an inclu-
sive team, retaining accountability and ensuring all
members remained focused on the vision.
■ Working with people. e.g. Maintaining the trust and
enthusiasm of colleagues, and coaching to enhance their
teams’ performance.
■ Implementation. e.g. Translating strategies into daily
administrative activities and identifying the resources
which would ensure progress.
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Photo: Café Direct
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PART 8 IMPROVING ORGANISATIONAL PERFORMANCE
■ Thinking. e.g. Analysing results and recognising where
performance could be improved and how.
■ Drive for results. e.g. Determination to set high standards
and show passion and commitment when understanding
how best to achieve success.
Deacon Rosset then used the competencies to design a one-
day development centre for Costa’s ten Operations
Managers, followed by a second day for the 32 Senior Store
Managers. The aim was to assess those taking part and
decide where each could benefit from further development.
IDENTIFYING POTENTIAL
While in many businesses such an announcement could be
expected to provoke anxiety among the managers, at Costa it
was easy for the team to become stakeholders in the
process. As Mildenstein explains: ‘We ensured the develop-
ment centres were non-threatening and that participants
knew we had no plans to change their terms and conditions.
‘At the development centres themselves, we had mostly
group exercises to see how everyone worked within a team.
All the exercises were relevant to the business plan and were
specifically tailored to examine their individual competencies.’
Taking place in October and November 2000, the
Operations Managers’ development centres consisted of five
exercises, including tests designed to show strategic plan-
ning, marketing and ability to work with cultural change.
Those taking part were assessed and given feedback by
Mildenstein and Deacon Rosset They were then expected to
fill the same overseeing role at the development centre for
their Senior Store Managers.
The latter were asked to take part in six exercises to illus-
trate their potential to be Retail Development Managers within
the new organisational structure. Following the centre, each
was given feedback on their performance and areas for
improvement. Two participants were immediately selected for
secondment to another area of the business in order to pre-
pare them for promotion to Retail Development Manager level
when the organisational change was formally implemented in
March 2001. Others were judged to be still in need of devel-
opment and wre asked to continue as Senior Store Managers
in March, while receiving further development training to help
them make the newly established benchmark.
THE RESULTS
Mildenstein describes himself as ‘really pleased and proud’ at
the way his team has taken the Competency Development
process on board during the development centres. He points
out that many of his Operations Managers found observing
their Senior Store Managers ‘switched on a few light bulbs’
and helped them see the company’s development procedure
with more clarity. ‘Where previously they gave feedback in
terms of performance during appraisals, we now get behav-
ioural coaching to complement the review,’ he said.
In fact, Costa Coffee has now established its new organi-
sational structure, designed to suport the company as it
continues to grow. The Operations Managers have now been
given the new title of Marketing Managers for the 12 different
regions of the UK, including Scotland, The North, The
Midlands and four in London. Each Marketing Manager struc-
ture is to be locked in its current position for the next three
years to ensure continuity as new stores are opened.
However, they don’t just ‘manage’ – they are expected to
select and provide leadership to the Retail Development
Managers and build the company’s brand within their region.
The developmental approach cascades down the man-
agement chain: the new Retail Development Managers are
expected to take responsibilty for opening and managing a
maximum of 8 new stores each, giving the less experienced
the opportunity to grow into their role. Each will need to drive
the operations of the stores, ensure they are properly
resourced and administrated, drive excellence in service
quality and yield the right results. Mildenstein adds: ‘The
Retail Development Managers will need to understand that
success for Costa is not just about the bottom line, it’s about
using our resources wisely and sharing a common language
throughout the organisation. It is obvious that underpinning
all of this is the need for efficient administration with profes-
sional Administrative Management in place.’
THE FUTURE
Mildenstein feels the organisational change is of great poten-
tial significance to Costa Coffee in its expansion ambitions.
While the company is now seen as a market leader (and an
important totem for the Whitbread Organisation as it moves
from breweries and pubs to restaurant and leisure chains) the
competition in this sector is fierce. Coffee Republic, Café
Aroma and, of course, Starbuck’s are all threats to Costa’s
market share, and the latter (backed by American money) has
the potential to flood the market.
‘These companies are not doing anything that we aren’t,’
he believes, ‘but we need to be nimble and play to our key
strength which is our people. The Competency Process has
helped us to do this as well as providing a motivational ex-
perience for the whole company.’
Source: Manager, The British Journal of Administrative Management, May/June
2001, pp. 24–5 and reprinted with permission of Russell Dean, Deacon Rosset
Management Consultancy.
Management in Action 23.2 continued
CHAPTER 23 MANAGEMENT DEVELOPMENT AND ORGANISATIONAL EFFECTIVENESS
MANAGEMENT IN ACTION 23.3
Components of the Management Standards
The Management Standards Centre (MSC) has recently
undertaken a review of World Class National Occupational
Standards for Management and Leadership. The main aim is
to produce a new set of standards which:
■ identify the full range of management and leadership func-
tions/activities typically undertaken in organisations: and
■ describe what individuals need to know, understand and
be able to do in undertaking the identified functions/activi-
ties to the level or ‘standard’ expected in employment.
The Management Standards are arranged in a logical
sequence to cover every aspect of management at every
level in an organisation. There are six key roles or functional
groupings divided into a total of 51 draft units.
Managing self and personal skills
1 Manage your own resources
2 Manage your own contribution
3 Manage your continuing personal and professional
development
4 Develop your personal networks
Providing direction
5 Map the environment
6 Develop vision and strategy
7 Develop plans for your area of responsibility
8 Guide the implementation of strategy
9 Lead people
10 Ensure compliance with legal, regulatory, ethical and
social requirements
11 Develop organisational culture
12 Manage risk
13 Promote diversity
Facilitating change
14 Foster innovation
15 Innovate
16 Lead change
17 Plan change
18 Implement change
Working with people
19 Develop productive relationships with colleagues
20 Develop productive relationships with stakeholders
21 Create a productive working environment
22 Plan the workforce
23 Build teams
24 Recruit, select and retain colleagues
25 Provide assignments to colleagues
26 Monitor the performance of colleagues
27 Assess the performance of colleagues
28 Provide learning opportunities for colleagues
Using resources
29 Obtain finance
30 Manage money
31 Manage budgets
32 Procure products and services
33 Obtain contracts to supply products and/or services
34 Manage the sustainable use of resources
35 Manage physical resources
36 Manage the use of technology
37 Provide a safe, healthy and secure working environment
38 Manage information, knowledge and communications
39 Use information to take decisions
Achieving results
40 Produce a business plan
41 Implement the business plan
42 Implement the operational plan
43 Manage a programme of complementary projects
44 Manage projects
45 Manage business processes
46 Build your organisation’s understanding of its market and
customers
47 Develop and review a framework for marketing
48 Create and maintain a customer led organisation
49 Manage the achievement of customer satisfaction
50 Improve organisational performance
51
Deliver products and/or services that meet customer needs
Reproduced with permission. I am grateful to David Weaver, Management
Standards Centre for providing this information.
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PART 8 IMPROVING ORGANISATIONAL PERFORMANCE
MANAGEMENT IN ACTION 23.4
Building organisational competence
European work organisation network
‘Models for the future shaping of company structures and
organisational competence have become one of the deter-
mining factors for the future competitive strength of
European enterprises’ – EU Expert Group on Flexibility and
Work Organisation (p. 5, Social Europe Supplement 1/95).
AIMS
This article has been adopted by the European Work
Organisation Network and is designed to explain the nature
and significance of new forms of work organisation, including
their impact on competitiveness and employment.
WORK ORGANISATION, INNOVATION AND
COMPETITIVENESS
The European Work Organisation Network (EWON) exists to
promote the development and dissemination of new forms
of work organisation. Its aim is to build the organisational
competence which employers and employees need to survive
in an environment which requires continuous innovation
and agility.
As a matter of fact, a number of factors are increasing
competitive pressures for enterprises:*
■ globalisation of competition;
■ de-regulation;
■ rapidly changing technologies;
■ emergence of more demanding customers;
■ over-capacity (in some industries);
■ exposure to pressures from other parts of the supply
chain;
■ maturity of demand (in some industries).
Single enterprises could also have to face possible pressures
linked to the sector (such as the emergence of a new market
opportunity or the loss of a key partner) and to internal
aspects (such as managing fast growth, coping with
high fixed costs, managing seasonality or major fluctuations
in demand).
Consequently, there is continuous pressure to deliver
faster and better products and services at lower prices. But
quality, speed and flexibility will, in the long term, not be
enough to create growth and employment. They have
become ‘entrance factors’ (Porter 1985) in the market-place:
conditions which must be met simply in order to stay in the
game. The basis of competition is shifting away from ‘hard’
factors (such as access to physical or financial resources,
scale economics, or expenditure on research and develop-
ment) and towards ‘soft’ factors (such as core competencies,
speed to market, reputation and service).
The real source of Europe’s potential competitive advan-
tage lies in the capacity to do things differently, in ways which
cannot be easily imitated by our competitors. This means the
continual reinvention of products and services using our rich
European potential of knowledge, skills and experience in a
more imaginative and effective way.
Traditional ways of organising workplaces and traditional
styles of management cannot achieve this. But likewise many
models of change which we have come to see throughout
Europe are driven by a narrow focus on cost.
Cost competition means optimising production processes,
reducing the workforce to a minimum (downsizing) and out-
sourcing all tasks which are not supposed to belong to the
company’s ‘core business’.
Companies focused on cost competition are stuck in old
markets; therefore they have to cope with stagnation or even
falling customer demand, together with a permanent
decrease in price of their products or services.
Competitive strategies based on innovation are also con-
cerned about costs, but this is not the main focus of
organisational change. Indeed cutting costs too severely can
endanger the ability to innovate, to deliver quickly and flexibly
and to create new markets.
ORGANISATIONAL COMPETENCE
Process innovation is the key to innovative products and
services. New forms of work organisation offer the chance to
improve the capability for innovation and to enter growth
markets which are not dominated by cost competition.
Building the organisational competence needed to achieve
this requires fundamental and sustained changes throughout
the company. But there are no blueprints. Each company
must learn to adapt organisational structures, skills and
cultures in ways which reflect their individual circumstances
and potential.
Critically, this is not a management fad nor is it an off-the-
shelf model which can be superimposed on an existing
structure. Rather it is about the fundamental capacity of com-
panies to learn, to adapt and to be innovative,
Central to this capacity is a convergence between quality
of working life and performance.
A great deal of research has been undertaken throughout
Europe to define the types of work organisation associated
with high levels of organisational competence. Detailed
studies and action research commissioned by DW identify
the following.
DRIVERS FOR CHANGE
A high percentage of companies attempting to build new
forms of work organisation are driven by crisis and/or by
pressure from customers. In many cases these circumstances
limit both the scope and sustainability of change. In such
CHAPTER 23 MANAGEMENT DEVELOPMENT AND ORGANISATIONAL EFFECTIVENESS
989
cases change is typically cost driven and fails to expand the
full capacity of the company to innovate and to build new
markets. Change may also fail to win the full commitment of
employees and may fail to become embedded in company
practice and culture.
It is essential, therefore, to rise above the contingent cir-
cumstances in planning and implementing change.
Successful change is likely to be driven by a strategic com-
mitment to a combination of the following:
■ Improving competitiveness through, for example, faster
development cycles, customisation, adding value to exist-
ing products and services, etc.
■ Improving agility through reduced cycle times, reductions
in work-in-progress, effective partnerships with suppliers
etc.
■ Enhancing quality both through the adoption of formal
standards and through changes in organisational culture.
■ Improving innovative capacity by fostering human compe-
tencies and by ensuring that work organisation and
technology are designed to enhance skills and creativity.
■ Reducing labour recruitment, retention and absenteeism
problems by enhancing quality of working life, workplace
partnership, more effective dialogue between manage-
ment and employees, etc.
■ Improving industrial relations by building effective dialogue
structures and development coalitions, including interme-
diary organisations and research institutes.
THE NATURE OF CHANGE
What changes are actually happening in the workplace to
achieve these strategic commitments? Drawing on evidence
from leading-edge companies across Europe, these include:
■ Workplace partnership as organisational development.
Traditional approaches to change have often been recipe
driven. Companies are offered solutions (often consul-
tancy driven) based on alleged ‘best practice’ models; the
success of implementation is measured in relation to its
conformity with the benchmark standard. However
employees find it hard to ‘own’ solutions they have little
part in designing or planning, and necessary culture
change can be slow to achieve. More sophisticated
approaches build workplace partnership as a precondition
for organisational change. These vary widely in content,
but are typically based on formal agreements between
management, trade unions and workforces on the creation
of structures and processes designed to build trust and
dialogue. This dialogue itself becomes the motor for inno-
vation in work organisation.
■ Knowledge management. Both during change processes
and in resolving day-to-day issues the aim must be to
unlock the full range of knowledge and experience available
at all levels of the workforce, drawing on a strong sense of
employee well-being and sustained motivation. This is a
valuable collective resource for change and innovation.
■ Business units and divisions which reflect key market
segments or production processes. In other words
the organisational structure should follow the client or
product rather than traditional functional demarcations
such as design, marketing, finance, etc. In particular this
means the creation of multifunctional management
teams which emphasise the interconnections between
functional specialisms.
■ Semi-autonomous group working. Multiskilled teams
can have high levels of discretion for the day-to-day pro-
duction of goods and services including scheduling,
meeting targets, liaison with customers and suppliers and
team development. Typically this will lead to a reduction in
the layers of management.
■ Reduction in job demarcations. Especially within the
context of teamworking, demarcations between jobs
are reduced as much as possible to ensure greater versa-
tility, the self-regulation of work groups and possibilities
for learning.
■ Balancing individual competence with organisational
development. Improving workforce skills is insufficient if
employees remain in tightly defined jobs with insufficient
opportunities for discretion and versatility. Likewise new
organisational structures can fail if they place demands
which exceed the skill levels of individual workers. Skills
enhancement and lifelong learning, which are often
increased significantly, nonetheless need to be developed
in balance with organisational change.
■ Rethinking the role of middle and front-line managers.
Semi-autonomous teams fail to achieve their full potential
where the role of middle and front line managers remains
unchanged. Managers accustomed to playing a policing
role feel threatened by empowerment, and can con-
sciously or unconsciously subvert change. However the
redeployment of these staff in team development and con-
tinuous improvement, as well as in overall support and
longer-term planning roles, can have lasting benefits.
■ Innovation as a core task. Traditionally the development
of new products and processes was undertaken by spe-
cialist R&D teams, often remote from the point of
production and consumption. Increasingly however pro-
duction teams are involved in the process of innovation by
integrating R&D staff within the production environment,
through continuous improvement programmes, by other
forms of workplace partnership and by liaising directly
with buyers and customers.
■ Strengthening partnerships across organisational
boundaries. New forms of work practices and cultures
enhance the potential for innovation and improvement not
just within organisations but by enhancing multi-level col-
laboration between organisations. This challenge needs to
be met both through formal planning and through innova-
tive organisational solutions such as virtual teamworking
and inter-agency approaches to continuous improvement.
■ Mainstreaming quality. Introducing quality as a perform-
ance measure for semi-autonomous work groups helps to
create a ‘quality culture’ rather than ‘quality control’.
■ Adding human and organisational dimensions to the
design, selection and implementation of new technolo-
gies. Technologies must operate within a specific context
based on organisational structures, cultures and work
practices. Ensuring an effective ‘fit’ means that the design
and implementation of technological systems has to
reflect the organisational principles of the company and to
recognise the human factors involved in their operation.
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PART 8 IMPROVING ORGANISATIONAL PERFORMANCE
■ Rethinking performance measures. Measuring the per-
formance of managers and employees purely against short
term productivity targets is destructive of teamworking,
innovation and quality. Other measures such as customer
satisfaction, organisational learning, innovation and waste
reduction also constitute critical dimensions of competitive-
ness and should be measured with equal rigour.
■ New reward systems. Payment systems need to reflect
performance across this wider range of factors, not just
productivity. Team or company based approaches to gain-
sharing reflect a culture of trust, unlike individually-based
reward systems.
New forms of work organisation using these approaches to
change can typically be measured against a series of benefits
for company performance and employees:
■ An enhanced rate of innovation in products, services and
processes.
■ Expansion into new markets.
■ Improved operating efficiency, particularly in relation to the
ability to deal with short production runs and customised
service provision.
■ Improved adaptability to cope with new market demands
through enhanced process and product innovation capacity.
■ The reduction of unnecessary costs such as those associ-
ated with work-in-progress, waste and labour turnover.
■ Improvements in customer satisfaction.
■ Improved industrial relations.
■ Improvements in quality of working life through job enrich-
ment and empowerment.
■ Improved workforce skills, social competencies and
employability.
■ Enhanced motivation and employee performance through
extended involvement and job security.
RESOURCING CHANGE
These changes, and the benefits associated with them, are
hard to achieve. Since there can never be a blueprint for
building organisational competence, employers have to be
prepared for a process of continuous experimentation, learn-
ing and adjustment. This involves:
■ balancing the use of expertise with learning: external advi-
sors can be useful as a means of facilitating change, but
cannot provide ‘correct’ answers;
■ learning from others: sharing lessons with other com-
panies stimulates new thinking about change at all levels
of the organisation;
■ involving everyone: ensuring that change draws on all the
skills and knowledge available within the company and that
the process generates the widest possible commitment;
■ accessing knowledge and support: the ability to draw on
specialist services to enhance the understanding and
resources available to change agents.
CONCLUSION
Despite tangible benefits and a growing knowledge base, the
spread of new forms of work organisation has been con-
strained by a number of factors:
■ A poor knowledge base. Research is fragmented, and
there are too few bridges between academics and practi-
tioners. Change agents have limited awareness of and
access to ‘evidence-based’ approaches to work organ-
isation. There are few mechanisms for ensuring collective
and cumulative learning about emerging approaches to
work organisation.
■ There is limited capacity in the field. Too few agencies,
programmes and initiatives concerned with work organisa-
tion exist across Europe as a whole; those that do exist
are often isolated from each other and there is little shar-
ing of expertise and experience.
■ Public policy is equally fragmented. Several parts of
Europe lack a national policy framework or infrastructure
relating to the development and dissemination of new
forms of work organisation.
■ Dissemination is weak. There are few focused attempts to
raise awareness of the role of work organisation in achiev-
ing competitiveness, or to raise the standard of
organisational change attempted by companies.
The European Network on Work Organisation is established
and chaired by the European Commission, Directorate-General
V, Employment, Industrial Relations and Social Affairs, Social
dialogue, social rights and equality, adaptation to industrial
change, work organisation and the information society, Rue de
la Loi 200, B-1049 Brussels, Belgium. Tel (+ 32-2) 296.11.11
Fax: (+32-2)296.9791. Internet http://europa.eu.int/commdg05/
index_en.htm
* Adapted from ‘New Forms of Work Organisation: Case Studies’ (June 1998
report), financed by and prepared for the use of the European Commission, DGV,
by Business Decisions Ltd.
(Reprinted from ACAS, QWL News and Abstracts, No. 140, Autumn 1999, pp.
8–12 with permission of Richard Nobbs, Service of Information and Publications,
European Work Organisation Network.)
Management in Action 23.4 continued
CHAPTER 23 MANAGEMENT DEVELOPMENT AND ORGANISATIONAL EFFECTIVENESS
1 Discuss fully the importance of effective management to organisation development.
2 Outline the main elements of an integrated model of managerial behaviour and develop-
ment. Use this model to examine the nature of management development in your own
organisation.
3 Explain fully what areas of need you would include in designing a management develop-
ment programme for an organisation of your choice.
4 Discuss critically the main features of:
(i) Continuing Professional Development (CPD); and
(ii) the learning organisation.
Debate their relevance and applications to an organisation of your choice.
5 What are your views on the nature of management education, training and development
in Britain? Comment critically on the apparent effectiveness of management education,
training and development in your own organisation.
6 Summarise clearly what you believe are the main factors which affect organisational
effectiveness.
7 Discuss critically the relevance and applications to organisational effectiveness of :
(i) Total Quality Management; and
(ii) business process re-engineering.
Support your discussion with practical examples.
8 Relate critically the concepts and ideas of ‘Tomorrow’s Company’ and the ‘EFQM
Excellence Model’ to practices in your own organisation.
9 Explain what you see as the main attributes for organisational success and give ex-
amples from your own or some other organisation. Discuss the importance of innovation
as a key factor in organisational effectiveness.
10 Detail the questions you would ask, and the specific criteria you would apply, in attempt-
ing to evaluate the performance and effectiveness of your own organisation, or some
other organisation of your choice.
REVIEW AND DISCUSSION QUESTIONS
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PART 8 IMPROVING ORGANISATIONAL PERFORMANCE
Critically analyse your own (or some other chosen) organisation in terms of the McKinsey 7-S
Framework (page 961). Describe fully each of the seven components:
■ Strategy
■ Structure
■ Systems
■ Style
■ Staff
■ Skills, and
■ Shared Values
as they relate to the organisation; the fit among the components and the extent to which they
are interconnected.
What conclusions do you draw from your analysis?
Assessing your organisation
These questions are designed to help you reflect on how well your company is doing, and to
generate ideas for improvement. If you would like to benchmark yourself against other com-
panies, please contact The Centre for Tomorrow’s Company.
TERMINOLOGY
The term ‘Company’ relates to business here, but you can adapt and interpret the question-
naire for other forms of organisation such as firm, partnership, public service,
non-profit-making etc. ‘Customers’ include clients, consumers, end-users, intermediaries,
wholesalers, and distributors, subscribers, members and trustees. ‘Employees’ include staff,
colleagues, associates, people, volunteer helpers, self-employed contractors and trade
unions. ‘Suppliers’ include conventional suppliers as well as business partners and joint ven-
tures. ‘Investors’ include private and institutional shareholders, lending banks, donors and
funders. ‘Community’ encompasses local, national, worldwide and governmental; and from a
social, philanthropic and environmental standpoint.
QUESTIONS
aPurpose and vision
1 Do the directors have a shared understanding of the company’s purpose, one that is
couched in other than purely financial or commercial terms, and do they believe in it?
2 Is the company embarked on a journey that is founded in a vision of the company’s
future, which is communicated and shared with the company’s stakeholders?
3 How meaningful to the company’s various stakeholder groups are the purpose
and vision?
ASSIGNMENT 1
ASSIGNMENT 2
CHAPTER 23 MANAGEMENT DEVELOPMENT AND ORGANISATIONAL EFFECTIVENESS
993
bValues and beliefs
4 Is there a clear set of shared values, standards, business ethics, etc., which form
the basis for actions, decisions and behaviour by the company and those acting in
its name?
5 Is there consistency from top to bottom between stated values and actual behaviours,
i.e. are the espoused values being lived out in practice?
6 When did you last review your company’s statement of philosophy, values and behav-
iour standards?
7 Has the leadership built a robust and sustainable culture that has the capacity to live
on beyond the tenure of the present leader(s)?
cLeadership development
8 What leadership development provision is made for those with the potential for senior
management positions?
9 Does the organisation offer:
– early opportunities to practise leadership;
– mentoring and feedback to develop self-awareness in current and potential leaders;
– opportunities to reflect on and develop a template of values to inform future lead-
ers’ decision-making?
dLeadership succession
10 How does the organisation help current leaders to be objective about their own life-
cycle, recognising when they have become part of the problem rather than part of the
solution, and knowing when it is in the company’s best interest for them to step aside
to make way for a successor?
11 How objective is the present leadership about the possibility of handing power over to
those with a different approach (i.e. not selecting in one’s own image).
eSharing the fruits of success
12 Does the leadership have a clear rationale for remuneration and the sharing of the
fruits of success in line with the company’s stated values?
13 Is the rationale widely understood, communicated and respected throughout the
company?
14 Do share-based bonus schemes or their equivalent apply to everyone in the
company?
15 Does your company submit directors’ remuneration to shareholders for their approval?
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PART 8 IMPROVING ORGANISATIONAL PERFORMANCE
fYour own leadership competence and development
16 Are you confident in your own ability to:
– engage stakeholders in the development of vision and strategy?
– maintain dialogue and manage the relationship with all stakeholders?
–identify and make provision for future leaders?
– surround yourself with people who will complement your own strengths?
– be open to challenge and to the opinions of others?
– coach and mentor others?
– engage in lifelong learning, and help others to learn?
– take appropriate risks?
– help people change?
– enable people to confront uncomfortable realities?
17
Where does most scope exist to improve capability and performance in terms of the
tomorrow’s company model of leadership, for you personally and for the wider leadership?
18 How clear are you concerning the kind of organisation you want to lead?
19 How aware are you of your own leadership style, alternative models of leadership and
the range of options available, and the conscious choices you have made?
Assignment 2 continued