Transformation - PowerPoint PPT Presentation

1 / 34
About This Presentation
Title:

Transformation

Description:

emphasizes training and retraining, coaching & development (job, team, pass-offs, ... Lots of room for growth personal growth and development ... – PowerPoint PPT presentation

Number of Views:62
Avg rating:3.0/5.0
Slides: 35
Provided by: ODM1
Category:

less

Transcript and Presenter's Notes

Title: Transformation


1
Transformation/ Execution System The Overview
2
Inputs
Outputs
TRANSFORMATION (Execution)
Environmental Drivers
Outcomes/Results From High Performance / Exemplar
Organizations
1. External/ Global Business
Environment (15)

THE ORGANIZATION DESIGN PUZZLE (9)
1. Macro Organizational Structures (4)
Organizational Effectiveness (5) The Balanced
Scoreboard (KPIs)
2. Internal Businesses Environment
Corporate Business (8)
8. Shared Leadership Decision Making
FIT
2. The Job/Work
A. Core Capabilities Competencies
7. Recognition and Financial Reward Systems
1. Customers 2. Employees 3. Organizational
Innovation 4. Societal

3. Technologies
B. Culture(s)
6. People and Human Resource Systems
C. Vision Direction (12) (VDSP)
5. Financial/ Business
4. Information and Knowledge Systems

D. Organizational Strategies
5. Micro Team Design
E. Goals/ Objectives (for the 5 KPIs)
9. Organizational Processes (Individual, Group,
Organizational and Business Processes (Total
Quality, Business Processes, etc.)
F. Business Models
G. Mutuality Sup- pliers,Customers
Employees (Union if present)
(Feedback)
Figure 1. Overall open systems theory (OST) model
for Organizational Analysis and Diagnosis
F. Transformation/ Change Processes
________________ Source Modified from Macy, et
al., (1995). Presented to the National Academy
of Management, Vancouver, Canada, August.
3
The Building Blocks of Exemplar Organizations
56
3
4
2
7
8
1
Information/Knowledge Systems Technology
Shared Leadership Decision Making
Job/Work Characteristics
Human Resource Systems
Micro Structure
Macro Structure
Recognition Reward Systems
Execution System
External Business Environment
Transformation/ Execution System
Change Process
The Foundation Blocks
Mutuality
Strategies (Now Future)
Vision Direction Future State 5 years out
all 12 dimensions
Organization Culture - NOW
____________________________ Source B.A. Macy,
Successful Strategic Change, Berrett-Koehler
Publishers, San Francisco, CA (forthcoming)
4
Summary Characteristics of High Performance /
Exemplar Organizations (HPS/HPO/HPWS)
Inputs

Transformation/
Results/Outcomes

Action-levers
  • External Business Environment
  • Ability to predict changes in External Business
  • Environment before Competitors
  • Overall
  • Adaptive to the changing business
  • environment
  • Meets the needs of the customers,
  • financial stakeholders, employees
  • and community.
  • Fit and alignment between Core
  • Values, Culture and Strategies and
  • Outcomes
  • Widespread information (confidential)
  • sharing with employees
  • Financial
  • 10 Sales Growth per year
  • Return on Sales 10 or greater
  • per year
  • Return on Assets 7 or greater
  • per year
  • Return on Capital Employed 11 or
  • See 25 design trends at the Firm S.B.U. Levels
  • See the 26 trends at the Product Supply
  • Level
  • Combination of Customer/Commercial,
  • Technologies, Organizational and Human
  • Resource Action-levers
  • Corporate/S.B.U./Functions/Depts. Team-
  • based Systems
  • Value/ Chain Design (Horizontal Demand and
  • Supply-Chain)
  • Much de-centralization with some
  • centralization
  • Innovative Financial Reward and Recognition
  • Systems
  • Shared Leadership (leaders NOT manages)
  • Alignment between the various Structures,
  • Systems, and Processes
  • State of the Art E-Learning Systems
  • State of the Art (NOT proven) advanced
  • 1. Buyer Power Power shifts to buyers
  • (customers - away from the firm) they
  • know they have power --- they have
  • learned how to use it.
  • Result Organizations are being
  • designed around customers and/or
  • market segments
  • 2. Product/Service/Variety Greater products/
  • service/ variety/flexibility and
    customization
  • Result More issues/much finer Market
  • segments more people brought into
  • decision making lower level decentralization
  • 3. Constant ChangeAll employees and
  • Management must be able to re-learn and
  • re-decide combination of product/service
  • variety customization causes more
  • decisions (faster expand people

Source Barry A. Macy, Successful Strategic
Change, Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
5
Summary Characteristics of High Performance /
Exemplar Organizations (HPS/HPO/HPWS)
Inputs
Transformation/

Results/Outcomes

Action-levers
Customers (Continued) 98.5 or greater
Delivery Time Average Quality Improvement
Per Year of 5.5 Joint
Marketing/Advertising E-Learning Systems
from the Firm to the Customer
Stable to decreases in Supplier prices
Seamless systems and processes between
Firm and Customer Scrap as a of total
thru-put of 1.4 or below per year
Employees Hiring for Fit A
learning environment--heaving investment
in increasing employees capabilities High
Creativity and Product/Service
Innovation High Trust Growth and
Development 160 hours of Learning/developm
ent/ training per employee per year
Multi-skilled High job satisfaction (85 or
better) Preseneeism Rate of 98 or greater
Turnover (quit rate) of 4 or less
Empowerment/Significant Decision Making
Grievance Rate of 3 or less Zero
Arbitration Rate OSHA Accident Rate below
1.0 Fun Community Adopt a
school/hospital/public works Significant
financial funding Zero spills and
releases Leaders are highly visible in
community leadership roles
  • Horizontal Decision Making at the
  • Lowest Possible Level
  • Self-directed Work Teams (at Top-Middle-
  • Bottom of the organization)
  • Cross-functional/horizontal Customer Business
  • Development Account Teams
  • Semi-Autonomous and Autonomous Self-
  • directed White and Blue Collar teams
  • Extensive Learning Environment and
  • Training/Re-training Systems High
  • Investment in People
  • Participative Design (self-designed)
  • Close ties/direct and formalized partnerships
  • with customers (internal and external).
  • Close ties/direct and formalized partnerships
  • with vendors/suppliers (reduction in number
  • and certification).
  • Integrated and simultaneous efforts to improve
  • quality, cost, delivery and speed (product
  • Constant Change handled extremely well
  • Internal Business Environment
  • - Clear, concise VDSP (Future State -
  • 5 yrs. out)
  • - Breakthrough goals NOT incremental
  • goals
  • - Shared VDSP
  • - VDSP communicated, shared
  • commitment and implemented
  • - Balanced Scoreboard (Customers,
  • Financial Stakeholders, Employees
  • and Community)
  • - 10 year Breakthrough Goals (internal)
  • 250 improvement in Volume per
  • Employee
  • 250 improvement in Sales per
  • Employee
  • 290 improvement in Earnings per

Source Barry A. Macy, Successful Strategic
Change, Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
6
A High Performance Exemplar Organization A
Strategic Balance Between Business and People
Needs
  • Employment Assurances
  • Work Challenge
  • Broad Learning Environment
  • Belonging
  • Opportunities for Growth
  • Recognition
  • Empowerment
  • Skill/Ability Utilization
  • Pay
  • Speed to Marketplace
  • Product Quality
  • Customer Service
  • Delivery Time
  • Customer Responsiveness
  • Costs
  • Efficiency/Productivity
  • Flexibility
  • Excellence/Benchmarking
  • Responsive
  • Future Oriented

Direct Employee Involvement/ Empowerment Process
(Changing their work, work processes, work
structure and business processes)
B.A. Macy, Successful Strategic Change. San
Francisco, CA Berrett-Koehler Publications
(forthcoming)
7
Traditional Organization
Power
Information
Knowledge
Rewards
Outcome Lower Performance
Performance
High Performance Work System
Power
Information
Knowledge
Rewards
Outcome Higher Performance
Performance
8
High Performance Business Center (SBU) Model
Capability
Purpose
Business Effectiveness Operations
Effectiveness People Effectiveness
Authority
Commitment
Emp Purpose x (Capability x Commitment x
Authority)
9
Benchmarking the Best Practices
Transformation/Execution Elements
  • Organizational Structure (G.O./Businesses/Units/Te
    ams)
  • 11 total firm levels/layers in the firm of 90K
    employees (4 levels within each S.B.U.
  • 5 within each Product Supply 2
    levels at Corp. office Average worksite levels/
  • layers 4 Site Mgr. to wage)
  • 5 firm levels/layers for employee size of 10-15K
    people
  • Average of 16 S.B.U.s per firm only 7 have no
    S.B.U.s
  • Most S.B.U.s are Global/some still regional
  • Some centralization/Great De-centralization in
    organization Decision Making
  • Much smaller G.O./Corporate Office (30-50
    reduction)
  • Within an S.B.U. average of 2 sub-businesses
    with an average of 17 total
  • total products per S.B.U. (2 Business
    Teams 17 Product Teams within
  • the S.B.U.)
  • One or more of the 8 common types of
    organizational structure
  • Coordination, interface and communication across
    the S.B.U.s/Units (NOT
  • thru G.O./Corp. Office)
  • Many S.B.U.s/Business Units/Enterprise Teams
    with P/L responsibility
  • 54 have aligned Profit/Loss Centers (Non-Matrix)
  • 60 have only solid line reporting while 40
    have Matrix reporting

( Mean 48,000 employees, 102 Multi-international
firms Average employees per worksite of New
Design (619) Redesign (859) 44 worksites per
firm data-based upon BENCHMARKING THE BEST
PRACTICES, SURVEY OF INNOVATIVE ORGANIZATIONS
(SIO), Texas Center of Innovative Organizations,
Texas Tech University, 2001
Source Barry A. Macy, Successful Strategic
Change, Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
10
21st Century Organization Design
Markets/ Sales Orgs. MDOs
GBUs
-Bus. A -Western Europe
-Bus. B -Central or Eastern Europe
-Bus. C -Middle East Africa
-Bus. D -Northern Asia
-Bus. E -Greater China
-Bus. F -North America
-Bus. -Latin America
8
-South America
-Others
11
21st Century Organization Design
Global Business Services (GBS) In/ Outsourcing
Corporate Functions/ Expertise Centers
12
21st Century Organization Design
Markets/ Sales Orgs. MDOs
GBUs
-Bus. A -Western Europe
-Bus. B -Central or Eastern Europe
-Bus. C -Middle East Africa
-Bus. D -Northern Asia
-Bus. E -Greater China
-Bus. F -North America
-Bus. -Latin America
8
-South America
-Others
Global Business Services (GBS) In/ Outsourcing
Corporate Functions/ Expertise Centers
13
Benchmarking the Best Practices
Transformation/Execution Elements
  • 2. Tasks/Jobs/Work
  • Work is usually organized around teams see
    Best Practice Transformation/
  • Execution element 5
  • Clear accountabilities and responsibilities
    according to objective personal and
  • Business KPIs
  • Decision making authority delegated per
    accountabilities and responsibilities
  • Great autonomy/Freedom to make decisions, solve
    problems and implement
  • new ideas
  • Achievements are celebrated in terms of
    recognition and financial rewards
  • Feedback comes 3600 suppliers, external
    customers, internal customers,
  • peer groups/team members and boss
  • Work in usually a self-directed work team no
    immediate boss (coach,
  • advisor, coordinator)
  • Lots of job variety (broad jobs not narrow)
  • Challenging/Interesting work
  • Location anywhere (at firms office, home, close
    to customer, close to
  • supplier, etc.
  • Lots of room for growth personal growth and
    development

( Mean 48,000 employees, 102 Multi-international
firms data-based upon BENCHMARKING THE BEST
PRACTICES, SURVEY OF INNOVATIVE ORGANIZATIONS
(SIO), Texas Center of Innovative Organizations,
Texas Tech University, 2001
Source Barry A. Macy, Successful Strategic
Change, Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
14
  • Some Characteristics of the New Work/Tasks
  • Broad, (versus Narrow)
  • Multi-skilled linked tasks (not jobs)
  • Set-up the Macro Structure first, micro team
  • structure 2nd, Then the multi-skilled tasks for
  • individuals to perform within a team

15
Specific IT Characteristics
  • Majority of this function will be outsourced
  • by the year 2010 unless it is a core
  • competency (I.e., Dell, Microsoft, IBM, etc.)

16
Benchmarking the Best Practices
Transformation/Execution Elements
  • 3. Technologies
  • Advanced access and use of
  • Linked, integrated and distributed Computer
    Systems
  • Flexible Manufacturing System
  • Robotics
  • Automation
  • CAD/CAM
  • Just-In-Time Systems
  • Automated Control Systems
  • Lab-on-chip

( Mean 48,000 employees, 102 Multi-international
firms Average employees per worksite of New
Design (619) Redesign (859) 44 worksites per
firm data-based upon BENCHMARKING THE BEST
PRACTICES, SURVEY OF INNOVATIVE ORGANIZATIONS
(SIO), Texas Center of Innovative Organizations,
Texas Tech University, 2001
Source Barry A. Macy, Successful Strategic
Change, Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
17
Benchmarking the Best Practices
Transformation/Execution Elements
  • 4. IS/IT Systems
  • Linked, integrated and distributed Computer
    Systems
  • E-mail for all employees
  • Inter/Intra Net available for all employees
  • Electronic (real-time) information/communication
    between key suppliers, the
  • firm and key customers
  • EDI / SAP / Consilient Lateral Information
    Systems (Supplier Firm Customers)
  • B to B, B to C, and Value Webs
  • Electronic Networks
  • Linked and integration Value Chain IS Systems

( Mean 48,000 employees, 102 Multi-international
firms Average employees per worksite of New
Design (619) Redesign (859) 44 worksites per
firm data-based upon BENCHMARKING THE BEST
PRACTICES, SURVEY OF INNOVATIVE ORGANIZATIONS
(SIO), Texas Center of Innovative Organizations,
Texas Tech University, 2001
Source Barry A. Macy, Successful Strategic
Change, Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
18
Benchmarking the Best Practices
Transformation/Execution Elements
  • 5. Micro Structure Team Design (below the five
    types of Macro Structure)
  • Average Firm found to have 15 different type of
    teams Average of 23 semi-
  • autonomous or Autonomous SDWTs per firm
    Worksite average of 14 other types
  • of work teams total of 37 work teams
    per worksite.
  • Most work is organized around self-managed work
    team comprised of ( 6-28
  • employees average team size of 17)
  • Mostly semi-autonomous work teams with some
    autonomous work teams
  • (Average Age 9 yrs)
  • Heavy use of cross-functional work teams
  • 69 of firms have formalized leadership roles
    eight formalized leadership
  • roles within each SDWTs (roles are
    rotate every 9-18 months perform
  • leadership roles while they carry out
    their regular job)
  • Self-directed work teams are accountable/responsib
    le to perform business activities

( Mean 48,000 employees, 102 Multi-international
firms Average employees per worksite of New
Design (619) Redesign (859) 44 worksites per
firm data-based upon BENCHMARKING THE BEST
PRACTICES, SURVEY OF INNOVATIVE ORGANIZATIONS
(SIO), Texas Center of Innovative Organizations,
Texas Tech University, 2001
19
Benchmarking the Best Practices
Transformation/Execution Elements
  • 5. Micro Structure Team Design (below the five
    types of Macro Structure) (cont)
  • Most (52) SDWTs designed across a process
    (technology) are across one shift
  • (only 13 across all shifts)
    coaches/coordinators/advisors accountabilities
    are
  • designed this way.
  • 100 of the coaches/coordinators/advisory for the
    SDWTs work on the team shift
  • (for 9-18 months).
  • Average number of Coaches/Advisors/Coordinators
    per worksite 24
  • SDWTs resulted from 1.) Redesign (59) 2.)
    New design (25) and,
  • 3.) Team Evolution (24)
  • 61 of average total worksite in self-managed
    work teams
  • 39 of white-collar professional workforce at
    worksites in self-managed work teams

( Mean 48,000 employees, 102 Multi-international
firms Average employees per worksite of New
Design (619) Redesign (859) 44 worksites per
firm data-based upon BENCHMARKING THE BEST
PRACTICES, SURVEY OF INNOVATIVE ORGANIZATIONS
(SIO), Texas Center of Innovative Organizations,
Texas Tech University, 2001
20
Some Characteristics of Teams
  • Race and Gender Diverse
  • Average Team Membership 17
  • Average of 1 coach for 2 teams
  • Vertical Teams and Cross-functional Teams
  • Average of 5,000 teams per Fortune 200 firm

21
Benchmarking the Best Practices
Transformation/Execution Elements
  • 6. Human Resource Systems and People
  • Some to most firms employees are commercially
    Astute
  • 48 of the firms hiring (all) by Targeted
    (behavioral) Selection
  • 3600 Performance Appraisals are becoming
    common-place
  • Individual Development Plan / Individual Business
    Plan
  • Peer Evaluation
  • Vast majority of the firms have 1 or 2
    classifications for their blue-collar
  • employees
  • Employees are multi-skilled (blue and
    white-collar)
  • Career Development Systems for all full-time
    employees
  • 15-20 of the workforce are contract (called
    999ers) contract 3rd party
  • Training/Re-training per Employee Per Year of 140
    hrs. to 222 hrs. (depending
  • up industry average is 160 hrs. per
    employee per year (mostly cross-
  • functional/multi-skill)
  • 48 of firms have a non-traditional work
    schedule
  • Leveraging diversity (race x gender) in teams
  • Mentoring Systems for all
  • 45 of firms have an all salaried workforce

( Mean 48,000 employees, 102 Multi-international
firms Average employees per worksite of New
Design (619) Redesign (859) 44 worksites per
firm data-based upon BENCHMARKING THE BEST
PRACTICES, SURVEY OF INNOVATIVE ORGANIZATIONS
(SIO), Texas Center of Innovative Organizations,
Texas Tech University, 2001
Source Barry A. Macy, Successful Strategic
Change, Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
22
Some Current HRM Practices
  • 40 of entire HR function currently being
  • outsourced
  • Going from an employee transactions-
  • based to a business transformation based
  • By 2010, 60-75 of HR will be outsourced
  • (NOT in Private Organizations!)
  • Lots of Outsourcing!

23
Benchmarking the Best Practices
Transformation/Execution Elements
  • 7. Financial Reward Systems and Recognition
  • Share the Wealth with all employees Company
    Core Value Philosophy
  • Average of 2 financial reward systems (company
    level business level and
  • Individual level) beyond basic wage
  • Average company profit sharing per employee per
    year 3,613
  • Average business success sharing per employee per
    year 2,109
  • Stock and stock options for all employees
  • Extra time-off with pay is the most common
    financial reward (average of
  • 1 week per employee per year in addition
    to vacation)
  • Recognition Status, Equality, Promotion,
    Development, Jobs/Tasks/Work

( Mean 48,000 employees, 102 Multi-international
firms Average employees per worksite of New
Design (619) Redesign (859) 44 worksites per
firm data-based upon BENCHMARKING THE BEST
PRACTICES, SURVEY OF INNOVATIVE ORGANIZATIONS
(SIO), Texas Center of Innovative Organizations,
Texas Tech University, 2001
Source Barry A. Macy, Successful Strategic
Change, Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
24
Some Organizations (like MM Mars) have 3-4
separate Financial Rewards Systems for every
employee in the Business
  • Profit sharing company level
  • Success sharing business level
  • Gain-sharing office/site level
  • Base compensation/pay-for-
  • contribution/pay-for-versatility

25
Benchmarking the Best Practices
Transformation/Execution Elements
  • 8. Shared Leadership Decision Making
  • Re-distribution of Power Control (tied to Macro
    Structure and Values,
  • Philosophies and principles)
  • Organized around teams (Top-Middle-Bottom),
    Vertical and Horizontal
  • teams
  • Re-distribution of power and control (67 of the
    firm has no first line
  • supervisors 50 have No 2nd line
    managers 45 have no Team Leader
  • 85 of the firms have cut 25 of their
    supervisory/managerial workforce in
  • the last 10 years).
  • Shared accountability/responsibility
  • Everyone is expected to be a Leader however,
    only 33 of the former
  • supervisors/managers can perform the new
    role of Coach/Advisor/
  • Coordinator

( Mean 48,000 employees, 102 Multi-international
firms Average employees per worksite of New
Design (619) Redesign (859) 44 worksites per
firm data-based upon BENCHMARKING THE BEST
PRACTICES, SURVEY OF INNOVATIVE ORGANIZATIONS
(SIO), Texas Center of Innovative Organizations,
Texas Tech University, 2001
Source Barry A. Macy, Successful Strategic
Change, Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
26
Characteristics of Shared Leadership and
Decision Making
  • 66 of current supervisors/managers, etc.
  • cannot perform the new role of coach
  • (Why?)

27
Organizational Innovation A Combined and
Integrated Strategy Works Best
How to Improve Performance? Solid research
evidence shows that workforce productivity and
organizational effectiveness can be increased at
least 30 to 40 percent with a different work
management paradigmcalled a High Performance
Organization. The research, conducted by Barry
Macy at the Texas Center for Innovative
Organizations, Texas Tech University, was based
on analyses that started with roughly 1900
organizational performance improvement studies
conducted between 1961 and 1991. Macy
identified a list of sixty-one action levers,
defined to include technologies, equipment,
organizational structure changes, quantity
processes, and human resource practices, that
are related to organizational performance. Total
Quality Management is an example of the levers on
the list. Gain sharing is another. The big
increases in performance are realized when
several of the action-levers are used as an
integrated improvement strategy. One of the
problems is and has been that organizations have
jumped on the bandwagon for one of the levers,
treated as a fad, and focused on it in isolation.
That helps to explain the failure of TQM and
reengineering and business/work process redesign.
In combination, the action-levers are elements
of a work paradigm that is very different from
the traditional work management model. For
example, Quality Management would have been a
more powerful lever if it had been connected with
a supportive reward system. Macys research
confirms what is intuitively apparent the
problem is complicated, but the potential for
improvement easily justifies a commitment to
change the way work and business processes are
organized.
Source Adopted from H. Risher (Ed.), Aligning
Pay and Results, American Management Association,
1999, p. 15, 303-304.
28
Organizational Innovation A Combined and
Integrated Strategy Works Best
Raising the Bar of Performance It seems at times
that every organization is trying to raise the
bar of performance. They are performing at one
level and would like to raise the bar to a higher
level. New technologies, systems, structures,
and processes are in some cases required to reach
the new level, but at its core this is a people
management problem. The increases in performance
that Barry Macy found in his research 30 to 40
percent (see Chapter 1, p. 15) are attributable
to a new organizational paradigm that enables
people and their organization to perform at
higher levels. Finding ways to raise the bar
can be a decided competitive advantage. Pay by
itself is not going to accomplish this. If work
and business processes, systems, and structures,
are unchanged, a new reward system, such as a
group incentive plan, may well generate better
results, but its likely to be limited. In the
past that was a common strategy. Employees will
work somewhat harder for at least some period of
time, but the big increases in performance are
not attributable to speed or work effort.
Working harder (i.e, increased effort) will not
generate 30 40 percent increase in performance.
Furthermore, if the work unit has a history of
poor employer-employee relations or simply poor
management, it is unlikely that the employees
will jump on the bandwagon simply because a new
carrot is dangled in front of them. They may
also lack the knowledge or skills to adapt their
behavior to new work and business processes.
They could also have Inadequate equipment or
resources available. To reiterate, Barry Macy
identified a list of some sixty-one
Action-levers that have been shown to affect
financial results over a 30-year period. Pay is
only but one of the levers.
Source Adopted from H. Risher (Ed.), Aligning
Pay and Results, American Management Association,
1999, p. 15, 303-304.
29
Organizational Innovation A Combined and
Integrated Strategy Works Best
Raising the Bar of Performance (cont) Macys
research shows that the action-levers are more
powerful when used in combination (structure,
human resources, technologies, and total quality)
as the basis for an integrated organizational
transformation strategy. And that is the
direction in which companies are heading. The
changes related to this shift in strategy are
documented in the 1998 State-of-the- Art and
Practice Council Report, a research project
sponsored by the Human Resource Planning Society
that looked at the thinking and practices in
leading companies where human resources
strategies and practices were acknowledged to
provide competitive advantage. The researchers
found that the focus on productivity had shifted
to a broader definition of improved performance
increasing shareholder value. Significantly, the
CEO and COOs contacted for the study mentioned
people as frequently as, if not more so than, the
human resources executives when they outlined
their major business priorities. Those companies
were redesigning their basic organization
architectures to align strategy,
structure,systems, processes, staffing, and
culture to create an organization that is
organized to succeed and that translates into
increased shareholder value. A focal goal of
their efforts was the creation of a high
performance organization (HPO) with an adaptive
culture that encourages leadership, teamwork,
learning,and accountability.
Source Adopted from H. Risher (Ed.), Aligning
Pay and Results, American Management Association,
1999, p. 15, 303-304.
30
75 CURRENT COMMON ACTION LEVERS FROM NORTH
AMERICAN INNOVATION EFFORTS 1991 - 2006
4. TOTAL QUALITY LEADERSHIP (TQL)
ACTION LEVERS
2. HUMAN RESOURCES ACTION-LEVERS
3. TECHNOLOGY ACTION-LEVERS
1. ORGANIZATIONAL CAPACITY ACTION-LEVERS
18. Employee Recognition Systems
32. CAD/CAM
1. MBO (Management by Objectives)
46. TQM Core Values/ Charter Developed
2. Behavior Modification/ Reinforcement
Systems
33. Robotics 34. Non-Computerized Materials
Handling/ Work Flow Processes 35. Flexible
Manufacturing Systems 36. Just-In-Time
Systems 37. Statistical Process Control Systems
(TQM) 38. MIS/Decision Support Systems 39.
Automated Control/Measurement Manufacturing
Systems 40. Computer Network/Electronic Mail 41.
Office Automation/Work Processors 42. Capital
Investment in New Plant, Buildings,
Offices, etc. 43. Computerized Materials
Handling/ Work Flow Processes 44.
Computerization 45. Paperless Office/Factory 45.1
External Benchmarking Deployment
19. Multi-Skill
47. Cost of Quality Monitoring
20. Career Development Systems
48. Formalized Focus on External Customer
3. Structured Feedback from Performance
Appraisal Process
21. Management Development/Education
49. Formalized Focus on Internal Customer
22. General Employee Education Systems
4. Formal Supervisory Feedback System
50. Formal External Customer Partnerships
5. Physical Layout
23. Special Employment Testing
51. Formal Supplier/Vendor Partnerships
6. Human Factors Design
24. Special Selection/Assessment Procedures
52. Formalized Customer Information Shared
and disseminated with employees
7. Multiskill/Common JobClassification
25. Job Enrichment/Enlargement/Task
Variety System
53. Produce for Customer Order (Not for
Inventory)
8. Job Rotation/Cross Training Systems
54. Line Employees inspection of Raw
Materials
Involvement Groups/Committees

26. Team Building/Group Process Training
Forces/Employee
9. Formalized Task
55. Line Employees inspection of Work-in-
Process
27. Work/Manufacturing Cells (Process
Improvement teams)
10. Non-Traditional Work Schedules
56. Line Employees inspection of FINALS
11. Semi-Autonomous Teams
28. Job talks/Open Forums/Monthly
Meetings/Employee Breakfast Meetings
57. SPC/SQC/TQC Training
12. Autonomous Teams
58. Vendor/Supplier delivery of Raw Materials
Just-in-Time
29. Open Information/Communication
Systems
13. Other Hierarchical Changes 13.1 Strategic
Organization Unit (S.B.U.) 13.2 Horizontal
Design (Matrix (i.e. Matrix
Cross-functional Teams) 13.3 Horizontal Design
(Non-matrix - aligned- de-centralized
(i.e., Aligned cross-functional teams)
13.4 Focused Factory, Product Alignment
(Non-matrix decentralized) 13.5 Focused Factory
(Matrix) 13.6 Process/Area Teams 13.7 Other
Restructuring
59. Customer ordering from Finished Goods
Inventory
30. Peer Review/Performance Appraisals 31.
Other Team Configurations (Quality
Improvement Teams, Natural Work Teams,
QCs, HP Teams, etc.) 31.1 External Benchmarking
Deployment
60. Customer Complaints directed to employees
who made product/produced service
Boxed items indicate significant association with
financial improvement
61. ISO 9000 Certification 62. NOA Baldridge
Assessment 63. Policy Deployment 64. Quality
Function Deployment 65. External Benchmarking
Deployment
Adopted From Macy, B.A. Izumi, H.A. (1993)
Organizational Change, Design and Work
Innovation A Meta-Analysis of 131 North American
Field Studies - 1961-1991. In R. Woodman W.
Pasmore (eds.) Research in Organizational Change
and Development JAI Press Inc. Vol 7.
14. Goal Setting/ Stewardship/Measurement
Systems of Performance Indicators
15. Innovative Financial Reward (Pay
Systems)
16. Status Equality (No Perks)
17. All Salaried Workforce 17.1Co-Location of
Aligned Resources 17.2 External Benchmarking
Deployment
31
Alternative Design Features, Processes For
Change, Strategies and Goals
(Feedback)
Lean/Flat Structure (business team / product
alignment)
Innovative Pay Systems
Flexible Tasks/Roles and Multi- Skilled Employees
Integration of Technology and People
Clear Mission And Shared Vision / Philosophy
Training/Re-Training and Development/Learning
Top-Down/Bottom-Up Goal Setting Stewardship
Mutuality of Employee - Management Relationships
Business / Economics Education / Training
Dual Goals 1. financial/ Business 2.
Investment in People/ Employee
Engagement 3. Customer Satisfaction 4.
Societal/ Community Improvement 5.
Innovation Improvement
Business Support Group, Site Team, Design
Team(s) and Implementation Team(s)
Market Responsiveness
____________________________ Source B.A. Macy,
Successful Strategic Change, Berrett-Koehler
Publishers, San Francisco, CA (forthcoming)
Status Equality
Recognition Systems
Performance Mgt. System/ Career Movement System
Rapid Job Rotation / Cross Training
Provide (Reasonable) Employment Assurances
Semi-Autonomous or Autonomous SDWTs
Extensive and Open Communications
Careful and Rigid Assessment/ Selection of
Employees
Meaningful / Valid Financial And Operating
Information Regarding Team and Site
Good to Excellent Physical Facilities,
Equipment Technology
Decentralization of Staff/ Functions
(Feedback)
Framework for New Start-Ups and Re-design Efforts
for HPO
32
DESIGNING AN EXEMPLAR HIGH PERFORMANCE ORGANIZATI
ON
____________ Source Barry A. Macy, Successful
Strategic Change, Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
33
Successful Transformation to an HPO is a Matter
of Beliefs
Do you believe the future is a BRICK WALL or an
OPEN DOOR?
____________ Source Barry A. Macy, Successful
Strategic Change, Berrett-Koehler Publishers, San
Francisco, CA (forthcoming)
34
At the end of the day, you bet on PEOPLE --
not on organizational STRATEGIES and STRUCTURES!!
____________________________ Source B.A. Macy,
Successful Strategic Change, Berrett-Koehler
Publishers, San Francisco, CA (forthcoming)
Write a Comment
User Comments (0)
About PowerShow.com