OE21 1.1 Senior Leadership

Strategic Objective:

Strategic Objective:

Documents how senior leaders lead the organization

Quality Objective:

Quality Objective:

Defines vision, values, ethics, communication, mission,  success environment

Approved: 20-Dec-17

Approved: DD-MM-YY

Approved by: (Name) Chair, Leadership Focus Team (LFT)

Responsibility:

Responsibility:

Lead: Leadership Focus Team (LFT-IT)  Support: All focus teams, FAC

VALUE ADDED                  

  • Sets and deploys organization mission, vision and values to the workforce and to customers

  • Ensures that senior leaders personal actions reflect a commitment to organization values 

  • Promotes and demonstrates legal and ethical behavior

  • Gets employees and managers engaged and focused on key outcomes and results

  • Creates an organizational environment for success

 

POLICY               1.1 COMMENTARY                

              

The organization has adopted the Baldrige Framework Item 1.1 Senior Leadership, and 7.4a Leadership Results as an internal policy, including the following sub-items:

1.1a. Vision and Values - Senior leadership leads the organization by:

  • Setting vision and values

  • Deploying vision and values to the workforce, suppliers, customers, and other stakeholders

  • Ensuring that senior leaders actions reflect a commitment to our values

 

1.1 b. Communication - Senior leadership communicates with and engages the workforce and key customers, by:

  • Encouraging frank, two-way communications (social media and other means)

  • Communicating key decisions and needs for organizational change

  • Taking a direct role in motivating the workforce toward high performance

  • Motivating the workforce toward a customer and business focus

  • Participating in reward and recognition programs

 

1.1c(1) Mission and Organizational Performance - Senior leadership creates an environment for success by:

  • Setting mission and organizational performance goals

  • Ensuring organizational agility

  • Cultivating organizational learning, innovation, and intelligent risk-taking

  • Establishing a workforce culture that fosters customer engagement

  • Participating in succession planning and development of future leaders

1.1c(2) Creating a Focus on Action - by:

  • Creating a focus on action to improve the organization’s performance

  • Identify needed actions in setting expectations for organizational performance

  • Ensuring a focus on creating and balancing value for customers, workforce and other stakeholders

  • Demonstrating personal accountability for the organization’s actions

 

7.4a(1) Leadership Results - This includes results for senior leaders communication and engagement with the workforce and customers (deployment of vision, values, two-way communication, a focus on action, differences by organization units and customer groups, as appropriate).

PROCESS                  

1.1 Flow Diagram.PNG

 Figure 1.1-1 Senior Leadership Flow Diagram)

KIO2 Strategic Plan Big Picture.PNG

Figure 1.1-2 Strategic Themes (KIOs) to Strategy Action Plans 

Inputs to 1.1 Senior Leadership

  • 2021-2022 Baldrige Framework Criteria Commentary Item 1.1

  • Focus Team Assignments and Commitment

  • B.1-LFT-A Results Excellence Dashboard (.xlsx) 

  • P.1-LFT-S Organizational Profile Part 1 (survey)

  • P.1-LFT-d Organizational Profile Part 1 (doc)

  • 1.1-LFT-S Senior Leadership Results (survey)

  • 4.1-LFT-M Metrics Selection Tables (.xlsx)

Measurement and Analysis Tools and Techniques

  • 1.1-LFT-A Senior Leadership Results Analysis (.xlsx)

Outputs from 1.1 Senior Leadership

  • Milestone 1 - Mission, Vision, Values statements created and approved

  • Milestone 2 - Communications Policy created and approved

  • Milestone 3 - Key Intended Outcome (KIO) goals adopted and approved

  • Milestone 4 - Mission, Vision, Values, Communications Policy and KIOs published on Intranet

  • Milestone 5 - LFT 1.1 Senior Leadership Results Analysis, Trends, and Simple Plan completed

  • Milestone 6 - Initialize LFT Leadership Excellence Strategy Plan and Results (initial KPIs)

1.1 Implementation Instructions

START IMPLEMENTATION

 

Note: Implementation of 1.1 is led by the LFT-IT and approved by the Leadership Focus Team (LFT). Other focus teams (CFT, OFT, and WFT) participate in leadership surveys. When complete, the 1.1 document is reviewed and approved by the LFT (CEO, CFO, etc.)

Task 1.1.1 Focus Team Commitment - The Leadership Focus Team (LFT) contacts each Focus Team member established in LFT 1.1 and confirms their commitment and availability for this initiative. As necessary, the LFT makes changes to the Focus Teams to ensure that sufficient capability and capacity of the team members are in place.

 

Task 1.1.2 Mission, Vision, Values, and Ethics Statements - The Leadership Focus Team (LFT), with assistance from the other Focus Teams, review the draft Mission, Vision, Values, and Ethics statements created in OE21 standard P.1 Organizational Description. As necessary, the LFT makes changes to these key statements and creates the final version. The final version is published to the INTRANET.

 

Task 1.1.3 Mission, Vision, Values, and Ethics Statements Deployed - The Leadership Focus Team (LFT), notifies all employees that the Mission, Vision, Values, and Ethics statements are available on the INTRANET.

  • PROGRESS: You have reached Milestone 1 (good work). Input the status [20%] on the organization's OE21 Intranet Main page alongside the title of this standard.

 

Task 1.1.4 Communications Policy - The Leadership Focus Team (LFT), establishes the policy for communication between senior leaders, the workforce, and the customers, including:

  • Use of the INTRANET content for communications of useful content, including: 

    • Announcements

    • Calendars

    • Current Initiatives

    • Employee Directory

    • Employee On-boarding

    • Employee Recognition & Rewards

    • FAQ

    • Forms

    • Ideas and suggestions

    • News 

    • Recognition and Rewards

    • SOP (standard operating procedures)

    • Surveys (special)

    • OE21 Guidelines (27 web pages with tools/survey links

 

  • Use of Social Media for communications

  • Communications of key decisions and needs for organizational change 

  • How senior leaders motivate the workforce toward high performance, a customer and business focus, and by participating in reward and recognition programs (WFT 5.2)

 

Task 1.1.5 Deploy the Communications Policy. When ready, the final version is published to the INTRANET. 

 

Task 1.1.6 Mission and Organization Performance - The Leadership Focus Team (LFT), establishes the policy that links Mission and Organization Performance, including creating an environment for success today and in the future.

PROGRESS: The status (Milestone 2 = 38%) is input on the organization's OE21 Intranet Main page alongside the title of this standard.

  • PROGRESS: You have reached Milestone 2 (good work). Input the status [35%] on the organization's OE21 Intranet Main page alongside the title of this standard.

 

Task 1.1.7 Set Key Intended Outcome Goals (KIOs) - The Key Intended Outcome Goals (KIOs) - also referred to as "Strategic Themes" - are the ultimate measure of Senior Leadership and Organizational success. The five KIOs serve as the highest level strategic goal for each Focus Team. The five suggested KIOs are as follows:

 

  • KIO 1 - Leadership Excellence: This strategic theme is the achievement of high-level leadership results, including the accomplishment of organizational strategy and strategic action plans (the strategic plan). Leadership excellence includes ethical behavior and stakeholder trust in senior leaders, governance, fiscal accountability, regulatory and legal compliance, and organizational citizenship in support of key communities.

 

  • KIO 2 - Customer Excellence: This strategic theme is the achievement of high-level customer results, including customer satisfaction, customer-perceived value, customer satisfaction and dissatisfaction, customer loyalty, retention, positive referral, and overall customer relationships. Each major customer group has its own KPIs

 

  • KIO 3 - Operations Excellence: This strategic theme is the achievement of high-level operations results, including product or service performance (as delivered to customers and critical to customers and target markets). Each major product or service has its own KPIs. The Operations Focus Team (OFT) adds KPIs for process management, project management, administrative/facilities management, and quality & risk management, as appropriate.

 

  • KIO 4 -Workforce Excellence: This strategic theme is the achievement of high-level workforce results, including workforce satisfaction, capability, capacity (including staffing levels and skills), and workforce climate (health, safety, security, services, and benefits). Each major workforce group, work unit, department, etc. has its own KPIs.

 

  • KIO 5 -Community Excellence: This strategic theme is the achievement of high-level community results, including community leadership, strategy, the satisfaction of residents and other customers, community engagement, and community results.

 

Task 1.1.8 Set Hierarchy of Results under KIOs - The LFT ensures adherence to the following hierarchy (structure) from KIO down to Sub-KRI:

 

  1. KIO (Key Intended Outcome - Strategic Theme)

  2. Strategic Objectives (one or more per Strategic Goal)

  3. Key Results Indicators (KRIs) - one or more for each Strategic Objective

  4. Sub-KRIs - (Optional) - selected KRIs that require lower-level measures

  • Note 1: KRIs are commonly referred to as KPIs (Key Performance Indicators)

 

  • Note 2: The OE21 Analysis tools include Trends, referred to as Key Results Drivers (KRDs). The KRD(s) are intended to have an indirect but positive effect on KRIs. Example: Ideally, improvements in KRD Customer Satisfaction Trends drive improvements in Customer purchases  (e.g., displayed as KRI Sales by Product).   

  • PROGRESS: You have reached Milestone 3 (good work). Input the status [50%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 1.1.9 Deploy Team Charter -  After completing all previous Tasks, the LFT-IT uses the Team Chart format presented in the 6.2a-OFT-A Process Improvement Workbook (1_Charter tab), to create the Team Charter, then emails it to each Focus Team member and asks for their commitment to execute the Team Charter. The LFT maintains a copy of the approved Team Charter and deploys it to all focus team members.

 

Task 1.1.10 Deploy Mission Statement - The LFT-IT publishes the Mission Statement to the INTRANET.

Task 1.1.11 Deploy Vision Statement - The LFT-IT publishes the Vision Statement to the INTRANET.

 

Task 1.1.12 Deploy Values Statement - The LFT-IT publishes the Values Statement to the INTRANET.

 

Task 1.1.13 Deploy Ethical Behaviors Statement - The LFT-IT publishes the Ethical Behaviors Statement to the INTRANET. The LFT authors or approves useful ethical behavior requirements in the ethical behaviors statement; for example:

 

  • A high percentage of independent board members are assembled and maintained;

  • A very low percentage of ethical conduct or compliance breaches are tolerated;

  • An immediate/effective response to ethical conduct/compliance breaches is required;

  • An organization "ethics hotline" is provided for reporting without a threat of retaliation;

  • Conflicts of interest are not tolerated anywhere in the organization or governance system;

  • Sensitive data and information are protected from the distribution or unauthorized public release

  • Proper use of funds is maintained, according to legal and regulatory requirements; and

  • Measures of ethical behavior violations or instances are reviewed, along with all other performance measures and indicators

 

Task 1.1.14 Notify Employees - The LFT-IT notifies all employees that the Mission, Vision, Values, and Ethical Behavior Statements are available on the organization's INTRANET.

  • PROGRESS: You have reached Milestone 4 (good work). Input the status [60%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 1.1.15 Conduct Senior Leadership Results Assessment - This assessment measures senior leadership results, including:

  • 1.1-LFT-S Senior Leadership Results 

    • Survey Statistics (Target Population, Sample Size, Number of Responses, Emails) 

    • Survey Attributes with Ratings and Comments:

      • People/Organizations that Rated

      • Financial Results References Ratings (1-5), Suggestions

      • Market Results References Ratings (1-5), Suggestions

      • Strategy Results References Ratings (1-5), Suggestions

      • Leadership/Governance Results References Ratings (1-5), Suggestions

      • Customer-focused Results References Ratings (1-5), Suggestions

      • Product/Service/Process Results References Ratings (1-5), Suggestions

      • Workforce-focused Results References Ratings (1-5), Suggestions​

 

Table 1.1-1 presents implementation steps, actions, results, and references for this Task.

A_1.1 senior leadership results.PNG

Table 1.1-1 Implementation of 1.1 Senior Leadership Results Assessment

Table 1.1-1 Notes:

  • The LFT and OE21 Facilitator implement this assessment 

  • The decision on integrating the 1.1-LFT-A Action Plan into the 2.0-LFT-P Leadership Excellence Strategy Plan depends upon whether or not the 1.1 Action Plan has "strategic value" for the organization.   

Suggested Best Practice: Correlation of KRD and KRI: 

 

During monthly performance reviews, when 2.0-LFT-M Leadership Excellence Results trends are reviewed, the KRD (key results drivers) Trends are correlated with the KRI (key results indicators). The correlation goal is to determine if KRD trend improvements lead to KRI trend improvements. 

PROGRESS: You have reached Milestone 5 (good work). Input the status [85%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 1.1.16 - Integrate Analysis Action Plans into Leadership Excellence Action Plan - The measurement and analysis tools (.xlsx) used in this standard may include tasks added to the (Plan) tabs, or other analysis observations that should require actions. If necessary, these new tasks should be integrated into the 2.0-LFT-P Leadership Excellence Strategy Plan. This integration of new tasks may require the approval of the added tasks, labor, and non-labor resources, schedules, and revised budgets for the Leadership Excellence Strategy Plan.  

Task 1.1.17 - Select 1.1 Senior Leadership Metrics.

  • NOTICE: If the organization has an existing Performance Measurement System (PMS), then the internal process is followed for selection, input, and review of measures associated with this OE21 standard. The following guidelines are suggested for the selection of metrics: 

Guideline 1 - Select Key Results Indicators (KRI). The KRIs are commonly called Key Performance Indicators (KPI).

 

Examples of KRIs for 1.1 Senior Leadership (Financial Results):

  • Income from Sales 

  • Costs of sales and marketing

  • Other costs of goods sold (COGS)

  • Profitability (by product, service, or program)

  • Earnings per Share (public companies)

  • Current Assets or Liabilities

  • Financial Ratios (Return on Sales, Current Ratio, Quick Ratio, etc.)

  • Other financial measures

  • Examples of KRIs for 1.1 Senior Leadership (Market Results):

  • Market Share Ownership

  • Market Share Growth

  • New Market Penetration

  • Sales Campaign Performance

  • Other market measures

Guideline 2 - Table 1.1-2  provides Metrics selection and review implementation steps, actions, references, and instructions guides.

A_1.1 senior leadership Metrics.PNG

Table 1.1-2 Implementation of 1.1 Senior Leadership Metrics Selection and Review

Task 1.1.18 Review 1.1 Senior Leadership Metrics - Conduct regular (at least monthly) reviews of Standard 1.1 Measures. Reviews for KRIs are critical to show whether overall organization performance is moving toward target levels and key intended outcomes (KIO) for Leadership Excellence.  

 

Correlation: Where possible, the KRD (drivers) are correlated with KRI (indicators) to determine if and how much the KRD Action Plans are helping boost KRI performance. 

At this point, regular performance reviews are conducted and attended by all OE21 Focus Teams. 

  • Figure 1.1-3 provides an example KRI for 1.1 Senior Leadership (Financial).

  • Figure 1.1-4 provides an example KRD for 1.1 Senior Leadership Results Analysis. 

  • PROGRESS: You have reached Milestone 6 (congratulations). Input the status [100%] on the organization's OE21 Intranet Main page alongside the title of this standard.

KRI 1.1a.PNG

Figure 1.1-3 Example Key Results Indicator (KPI) for 1.1 Senior Leadership Results (PMS)

1.1 KRD.PNG

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Figure 1.1-4 Example Key Results Driver (KRD) for 1.1 Senior Leadership Results (Trends)