Organ is Ing and Organisational Design

8/4/2019 Organ is Ing and Organisational Design

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Jay Hays

Organising andOrganisational Design

Managementand Organisation


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People need to understand how

their organisations work if they

are to work well within them. p 268

Structures need to adapt to changesin the external environment.



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Success Themes

Empowerment Support for employees

Customer responsiveness

Flexibility in dealing with thedynamic environment

Continuous quality improvements

Managementand Organisation Organising


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Organising

Process of arranging people and

other resources to work together toaccomplish a goal.


Division of labour

Coordinating activities to achievecommon purpose

Allocation of resources

Clarifying jobs and working relationships


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Back to Strategy

Strategy is the grand plan.

It embodies:


the organisations key objectives

the path or approach taken to achievethose objectives


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Strategic Management

The process of formulating andimplementing strategies toaccomplish long-term goals.



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Looking Forward

Understanding the environment

Positioning


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and Positioning


This is where organising comes in.


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You organise to meet

your important ou


This is where organising comes in.


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Organisational Structure

System of


Tasks

Workflow

Relationships Communication Channels


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Skills Matrix

Dispatch Board

PPD

Progress

Plan

Solution

Scorecard

GoalActual

Learning Plan

Pre-MorningNegotiations

Mini-Intervention

Morning

NegotiationsSquads

Ping Ponging

Driver, Rider

Chessmaster

Peritus Process in Perspective

CalendarNon-Dispatched Tasks

Input Log

Closed Log

Dispatcher

User

User

User

Suspend Board User

User


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Organisational Chart

Depicts the formal arrangementand reporting relationships ofthe organisation.


Positions Job Titles

Lines of Authority Lines of

Communications


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Organisational Chart

Depicts the way the organisationis intended to function.


Levels of Management

Major Units and Sub-units


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Informal Structure

The Shadow Organisation


Social Needs

Performance

Informal Learning

The unofficial but critical workingrelationships between people.

interaction


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Organisational Structures

-

Departmentalism


Functional

Divisional

Matrix

The division and linkage of formalteams and departments.


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Functional


People with similar skills and performingsimilar tasks are grouped.

Share technical skills, interests, andresponsibilities.

If each division does its job properly, theorganisation will perform successfully.


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Functional


All about specialisation and the benefits

you get from that (i.e., economies ofscale).

Promotes functional mindset the

functional chimney problem (silooperation).


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Functional Mindset


Cooperation and communication across

the organisation break down).

Impacts ability to effectively solveproblems and make decisions.


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Divisional


Grouping of all people and resources

devoted to the same / similar product orservice, set of customers, and / or region.

Product

Geographical

Process

Customer


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Matrix


Combination of functional and divisional

structures to gain the advantages and

overcome the disadvantages of both.

Two Bosses Two Groups

Basically consists of permanent cross-functional teams.

Promotes learning, sharing, and cooperation.

Functional Structure

Product

Project

Program


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Matrix


Progress toward improving flexibility andproblem-solving through better cross-

functional integration.

Represents a broader movement towardmore horizontal structures that decrease

heirarchy, increase empowerment, andmore fully mobilise the talents of peopleto drive organisational performance. p 276


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Network



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Boundaryless Organisation



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Trends


Shorter Chains of Command

Less Unity of Command

Wider Spans of Control

More Delegation and Empowerment

Decentralisation withCentralisation

Reduced Use of Staff


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Defining the

Destination

Charting

the Course

SelectingExplorers

Setting Off

Preparing

Explorers

Ports o Call

JourneyMilestones

Arrival!

Evaluation& LessonsLearnedHail and

Farewell!

The Journey Metaphor:

Improving Processes in the Time of Cook

Exploring Unchartered Territory

Organisational improvements and[Business] Process Re-design or Re-engineering are organisational change.

Thus, may be more complicated thanmany people assume.



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Defining the

Destination

Charting

the Course

SelectingExplorers

Setting Off

Preparing

Explorers

Ports o Call

JourneyMilestones

Arrival!


Farewell!




Any change in one part of a system(organisation) will effect other partsand, in fact, be influenced by those

other parts.



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Defining the

Destination

Charting

the Course

SelectingExplorers

Setting Off

Preparing

Explorers

Ports o Call

JourneyMilestones

Arrival!


Farewell!




INTERDEPENDENCE



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Defining the

Destination

Charting

the Course

SelectingExplorers

Setting Off

Preparing

Explorers

Ports o Call

JourneyMilestones

Arrival!


Farewell!




Two Levels of Principles:

Operating Principles

Design Principles



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One Approach to Redesigning Processes

Iterate and Test

Define VisionDesign Future

ProcessModels

FormulateRedesign

Ideas

Case

ForAction ProcessModel



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Start-UpExecutive

Interviews

Executive

Workshop Lab 1 TO BE

CRM

Subsequent

Labs

Preliminary Research on IT Solution

Start-Up Work Wrap-Up

Activities

Introduction to Business Labs

Charter Team

- Membership

- Vision and Mission

- Scope

- Key Objectives and Deliverables

- Team Member Roles & Responsibilities

- Schedule

Team Building / Develop Performance

Thermometers

Logistics

Deliverables

Agreed and Published Charter

Performance Thermometers

Presentation to Executive / Program Manager

Activities

Review of Progress to Date / Critique of

Process and Lessons Learned

Agenda and Objectives for the Day

Distribution of Labour / Assignments

Work Individually and/or in Groups (AM)

Mid-Day Check-In

Work Individually and/or in Groups (PM)

End of Day Check-In / Evening Assignments

Deliverables

Detailed Project Plan; Manage to Plan

Posted Process Maps

Weekly Lab Documentation

Performance Thermometers Updated

Activities

Finalise / Synthesise Work

Evaluate Product and Process Relative to

Start-Up Objectives

Develop Hand-Off Package

Develop and Present Summary of Outcomes

and Experience of Process

Conduct any Required Hand-Off Activity

Determine any Continuity Requirements

Deliverables

Lab Report - All Documentation

Final Presentation to Executive / Program

Manager

Hand-Off Meeting(s) Conducted

P3

P3

=

People, Parameters, Prerogative

STEERING COMMITTEE


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Executive

WorkshopLab 1 Lab 2 Lab 3

Formal

Review

Process

Agreed-Upon:

Principles

Business Model

Key Processes

Objectives

Performance MeasuresCustomer Service Strategies

Critical Success Factors

Considerations

Next Steps / Project Charter

Friday Reviews

Overall Assessment Against

Initial Objectives

Lessons Learned

Future Requirements

Way Forward

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STEERING COMMITTEE

BPR Management Team


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FOXTEL achieves its customer targets yearly from 2001 through

2005. Viewers are delighted with programming and service.

Customer churn is held at world class levels.

FOXTEL is the industry benchmark for cost efficient and service

effective integration of business process and operations.

Staff and managers are proud to be FOXTEL employees. They are

motivated to remain and grow with the Company, and driven to

ensure it continues to succeed. They know what they have to do,

and they have the tools to ensure they do it well.

Future State Description - Proposed


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High-Level Processes

A Cross-Functional View

Selling Pay TV concept to the general public

Customer acquisition and installation

Customer retention and expansion


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Defining theDestination

Chartingthe Course

Selecting

Explorers

Setting Off

Preparing

Explorers

Ports o Call

JourneyMilestones

Arrival!


Farewell!




TheJourney

Metaphor

An image-rich aid to help describe and prepare peopleto undertake a journey no one has ever made before toa place no one has ever been.


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Defining the

Destination

Charting

the Course

Selecting

Explorers

Setting Off

Preparing

Explorers

Ports o CallJourneyMilestones

Arrival!

Evaluation& LessonsLearned

Hail andFarewell!

A Metaphor for Change:The Organisational Change Journey


Issues and Challenges

Preparing / planning for the unknowableIdentifying potential risks andhaving suitable responses

Creating a culture of exploringand the explorer mindset

Keeping in contact with home

Keeping the faith; dealing with mutiny


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Defining the

Destination

Chartingthe Course

SelectingExplorers

Setting Off

PreparingExplorers

Ports o Call

JourneyMilestones

Arrival!


Farewell!




Preparing / planning for the unknowable

Identifying potential risks andhaving suitable responses



Keeping the faith

Dealing with mutiny

Ch iThe Journey Metaphor:


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Defining the

Destination

Charting

the Course

SelectingExplorers

Setting Off

PreparingExplorers

Ports o Call

JourneyMilestones

Arrival!


Farewell!



Preparing / planning for the unknowable

Identifying potential risks andhaving suitable responses



Keeping the faith

Dealing with mutiny

Keeping on Course in UncharteredTerritory

Agree to and understand the destination and process for

getting there (framework)

Vision, Imperative, Objectives

Flexible roadmap and experienced guides

Know where you are at any given time (measure)

Against vision and milestones (roadmap), risks, CSFs, & KPIs)

Document Progress (Map) and Lessons Learned (ships log)

Keep people involved, excited, and fit (participation)

Provide the tools, techniques, and skills people need

Empower with authority and legitimacy

Charge with responsibility

Install / use an infrastructure for people back home


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Defining the

Destination

Charting

the Course

Selecting

Explorers

Setting Off

Preparing

Explorers

Ports o Call

JourneyMilestones

Arrival!


Hail andFarewell!


Defining the

Destination

Charting

the Course

Selecting

Explorers

PreparingExplorers

A Closer Look at the

Exploration Steps

Context for Change

Vision

Mission

Overall Objectives

Readiness Assessment

Approach

Sponsorship

Values

Principles

1

Chartering Team

Building Teamwork and

Exploring Skills

Establishing Team and

Project Infrastructure

High-Level Project Planning

Understanding Journey Risks

Setting Explorer Criteria

Selecting Team Members

2

A Metaphor for Change:Th O i ti l Ch JA Closer Look at the


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Defining the

Destination

Charting

the Course

Selecting

Explorers

Setting Off

Preparing

Explorers

Ports o Call

JourneyMilestones

Arrival!


Hail andFarewell!

The Organisational Change Journey

Setting Off

Ports o Call

JourneyMilestones

A Closer Look at the

Exploration Steps

Team Assignments &

Division of Labour Detailed Project Planning

Send-Off Celebration

Embarking as Sub-Teams

Sub-Team Check-Ins and

Mini Course Corrections Team Check-Ins

3

Journaling / Trip Logs

Arrival at Journey Milestones or

Major Course Correction

Achievement of High-Level Objectives

and Lessons Learned To Date

Interim Celebration

Re-provisioning and Team Member

Rejuvenation

Reports to the Community

4

A Metaphor for Change:The Organisational Change JourneyA Closer Look at the


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Defining the

Destination

Charting

the Course

Selecting

Explorers

Setting Off

Preparing

Explorers

Ports o Call

JourneyMilestones

Arrival!


Hail andFarewell!

The Organisational Change JourneyA Closer Look at the

Exploration Steps

Evaluation

& LessonsLearned

Formal Evaluation of Project

Against Expected Outcomes Lessons Learned Studies Conducted

(Process and Content)

Evaluation / Lessons Learned Published

for and Shared with Community

Determinations made for Continuationor Follow-On Expedition

Hail andFarewell!

Charting

A Metaphor for Change:The Organisational Change JourneyA Closer Look at the Exploration Steps


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Defining the

Destination

the Course

Selecting

Explorers

Setting Off

Preparing

Explorers

Ports o Call

JourneyMilestones

Arrival!


Hail andFarewell!

Arrival!


Hail andFarewell!

p p

First phase of Exploration

Complete

Report to Community andCelebration of Successful

Journey

5

Formal Evaluation of Project

Against Expected Outcomes

Lessons Learned Studies Conducted

(Process and Content)

Evaluation / Lessons Learned Published

for and Shared with Community

Determinations made for Continuation

or Follow-On Expedition

6

7 Final Team Celebration Honouring Work,

Coming to Closure, Welcoming New

Team Members, and Sending-Off Next Team

Redesign Principles MPOManagement: People and Organisations


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edes g c p es

12. Link parallel activities instead ofintegrating the results

13. Create electronic linkages

14. Substitute information for proximity

15. Link supply and demand processeswith information technology

16. Treat geographically dispersedresources as though they werecentralised

17. Have those who use the output ofthe process perform the process

18. Push out function to customers

19. Push out function to supplier20. Outsource function

21. Bring function in-house

22. Form strategic alliances

1. Organise around outcomes, not tasks2. Put the decision point where the work

is performed, and build control into theprocess

3. Replace functions with trust

4. Eliminate intermediaries

5. Eliminate handoffs

6. Reduce variability of work

7. Predict the environment

8. Delay binding

9. Eliminate redundancy

10. Segregate, eliminate, reduceexceptions

11. Bury information processing in the realwork that produces information

MPOManagement: People and Organisations

Using the Redesign Principles


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Characteristic reengineering moves forimproving process performance

Process design best practice

"Rules of thumb"

Redesign from the outside in whatcould be, not what is

Focus on vision performance targets

Prefer cross-functional solutions

Focus on the value-added, not whodoes what

What they are

How to use them


Redesign principle #1 MPOManagement: People and Organisations


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edes g p c p e #

Organise around outcomes, not tasks

What does the outcome consist of?

Can one person or group perform all or

most of the steps in a process?

What would we have to do to enable one

person or group to perform all or most of

the steps in a process?

What would it take to produce the desired

outcome immediately?

Settle auto claims on the spot any time,any place, to reduce the human trauma

Questions

RedesignIdea Example

R d i i i l #2MPOManagement: People and Organisations


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Redesign principle #2

Put the decision point where the work isperformed, and build control into the process

Where do decisions need to be made in theprocess? What decision-expertise is required?

What do we fear might go wrong in the process?

What is really important to monitor?

How can controls help make the decision, rather

than hinder the process?

Determine amount of claim at the accident site

Elevator predictive of down-time

Questions

Service Crew

Otis




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Replace functions with trust

What don't we trust about ourcustomers? Our suppliers? Ourpeople?

What work does this cause?

Can we reduce this work and stillmaintain the integrity of the process?

Replace forms requiring signatures withremote data entry

Questions


Redesign principle #4MPOManagement: People and Organisations


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Redesign principle #4Eliminate intermediaries

Does this process take more than oneperson?

What is each person in a process doing?

Can what some people do be eliminated orbe done by someone else already in theprocess?

Perform on site data entry using portablecomputers

Questions

Customer Mileage Fuel Date

Avis checkout clerk

AVISR

ETURN


Redesign principle #5 MPOManagement: People and Organisations


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Redesign principle #5Eliminate handoffs

Do we interrupt the process flow to give theoutput of their work to someone else?

What output is being handed off?

Can we stop this interruption?

Combine data entry with account validation

Questions

From To

Long delays

Question

Answer to

wrong question In Out

Data

Redesign

Idea Example



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Redesign principle #6Reduce variability of work

Do we handle a wide variety of work? Do

we have to?

Where does similar work go through

different processes that then require us todevelop exception processes?

Can we eliminate the causes of this

variability?

Do not accept shipments that do not show

up on the purchase order system

Questions




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Redesign principle #7Predict the environment

What information will help us better predict what isgoing to happen?

Can we capture it internally?

Technology notifies service centre to senddispatcher before elevator even breaks down

Service Crew

Elevator cab

Service Centre

Questions

Otis


Redesign principle #8Delay binding



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Delay binding

How can we respond more quickly to meet

customer needs? At what point of the process does

customisation of the product begin?

Can we partially complete the product tothat point?

Pre-made sweaters are dyed to orderbased on sales data

From To

Dye

Wool

Knit

Sweater

SellDistri-bute

Knit

Sweater

Dye

Sweater

SellDistri-bute

Questions

Redesign

Idea Example



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Eliminate redundancy

Is the same activity being done by differentpeople?

Are people checking other people's work?

Can the activity(ies) be trusted to be donejust one time by a single person?

Using bar code readers to track wherepackages are

Questions




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Segregate, eliminate, reduce exceptions

Does some of the work require extra

attention? What does our process kick out of the

normal operation stream?

Can we change the content, timing orquality of the work that comes in?

Raise the value amount of a chequeabove which a bank clerk must review asignature

Questions

Redesign

Idea Example



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Redesign principle #11Bury information processing in the real workthat produces information

What information do we get? Do we keep?Do we really need?

How does information change during the

process?

Do we write down what someone says?Why?

Do we type what someone writes down?Why?

Why can't we see what is going on while it

is happening?

Create accident file as part of determiningamount

Questions




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g p pLink parallel activities insteadof integrating the results

Do we "stitch" together the results of manypeople's work with a separate activity?

Can we organise our activities to automateintegration?

Settle claim, set up car rental, authorisepayment and drive the customer home

From To

A B C DA B D

C

Questions




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Redesign principle #13Create electronic linkages

Do we prepare letters, memos or maketelephone calls, and then wait for anoutsider to respond?

Can we use technology to reduce oreliminate these activities?

Provide customer with terminals to reviewfinancial accounts

Questions


R d i i i l #14



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Redesign principle #14Substitute information for proximity

Do we stop and play telephone tag orconvene meetings to resolve something inthe process?

Where do we stop and play telephone tag

or convene meetings to resolve somethingin the process?

Can we achieve resolution faster, withbetter information distribution?

Voice mail systems

Questions


R d i i i l 15



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Redesign principle #15Link supply and demand processeswith information technology

Do the workloads of the processes varysubstantially in volume?

At the end of the day, where do we look to

see how we have done? Where are we surprised?

Can we reduce the level of surprise?

Airline systems that analyse traffic patternsto allow overbooking

Questions


Redesign principle #16Treat geographically dispersed resources



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Treat geographically dispersed resourcesas though they were centralised

How many locations are involved? Howdoes information travel?

Can information substitute for proximity?

Do historical assumptions regarding whatneeds to be done locally still hold?

Do historical assumptions regarding whatneeds to be done centrally still hold?

Put the adjuster "on wheels" with mobilecommunications and information systems

From To

Questions


Redesign principle #17H h h h f h



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Have those who use the output of theprocess perform the process

What outputs are created during theprocess? Do we need all the outputs?

Who uses them after creation? What dothey do with them?

Can these users perform part or all of theprocess?

Adjuster settles claim at the accident site

Can hedo it?

Questions




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Redesign principle #18Push out function to customers

What do we get and give to customers in

the process?

What tasks would our customer be willing

to do?

Can we change the process so the

customer sees improved service as a

result of the customer doing more?

Use ATMs to reduce clerical staff

Questions

Redesign

Idea Example



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Redesign principle #19Push out function to suppliers

Do we pay others to help us in theprocess?

What tasks can we arrange for oursuppliers to do?

What tools from our processes do we needto give our suppliers?

Can we use incentives to get suppliers todo more of the processes or supply usbetter

Have supplier ship directly to factory,instead of warehouse

Questions

Redesign

Idea Example

R d i i i l 20



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Redesign principle #20Outsource function

Is there work that requires schedules,expertise, or equipment that is unique inthe organisation?

Are there pieces of a process that are

performed substantially better by others?

Can we integrate our processes with thebest providers in the open market?

Use printing and mailing companies toproduce statements

Questions





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Redesign principle #21Bring function in-house

Do we pay outsiders?

Where do we rely on outsiders and sufferadversely in terms of cost, time or quality?

Can we stop relying on outsiders and

perform activities internally?

Replace EDP services bureau with an in-house function

Questions



Form strategic alliancesMPOManagement: People and Organisations


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and virtual organisation

Are there ways to involve otherorganisations who are not in our businessto develop a hybrid process that is good forcustomers and both parties?

Are there outsiders who can help usoperate our processes?

Can we work with outsiders to deliver morevalue to our customers?

Airlines, hotels, and credit cards link up forfrequent travellers

Hotel

Customer

Questions


Defining the

Destination

Charting

the Course

SelectingSetting Off

Ports o Call

JourneyMilestones

Arrival!



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DestinationExplorers

Preparing

Explorers

Milestones


Hail andFarewell!

Part Two

Merging the ExplorerMetaphor and the

Introduction of BPR


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DefiningDestination

Planning &Preparation

SettingOff

PortsOCall

ArrivalEvaluation

&

Lessons Learned

Change as a Continuous Journey

Clear

Commitment

and Direction

Clear

Framework

and Process

Clear

Purposeful

Activity

Clear Solutions &

Solution Progress

Clear

Completion

Clear

Recognition and

Acknowledgment

OUTCOMES

A more straight-forward version of the change process as a journey.

Shown below each step are the outcomes of the respective steps.


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Agree

Objectives

& Principles

IdentifyProcesses

PrioritiseProcesses

Form

Solution Team

Define

End Point

Draft[Ideal]

Process

Revision &

Formalisation

RealityCheck

Install

Infrastructure

Charter Team

Steps in the BPI /BPR Process

BPI / BPR is also a journey; and may start pretty much the same.

Subsequent steps are more definable than the steps in the general change

journey, each requiring thorough detail and operational understanding.

DefiningDestination


SettingOff

PortsOC ll

ArrivalEvaluation

&


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Destination Preparation Off OCall Lessons Learned

Agree

Objectives

& Principles

IdentifyProcesses

PrioritiseProcesses

Form

Solution Team

Define

End Point

Draft[Ideal]

Process

Revision &

Formalisation

RealityCheck

Install

Infrastructure

Charter Team



When shown together, it is evident that the two journeys have much in common.

DefiningDestination


SettingOff

PortsOCall

ArrivalEvaluation

&


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Destination Preparation Off OCall Lessons Learned

Agree

Objectives

& Principles

Identify

Processes

Prioritise

Processes

Form

Solution Team

Define

End Point

Draft[Ideal]

Process

Revision &

Formalisation

RealityCheck

Install

Infrastructure

Charter Team


The arrows superimposed in blue-grey show the more obvious connections.


Ineithercase,

theimportanceofaninfrastructure

forimplementingandseeingchange

through

cannotbestre

ssedhighlyenough.Infrastructure

includes:

ProjectMana

gement

Measuremen

tandReportingSystem

Organ is Ing and Organisational Design

Documents

Transcript of Organ is Ing and Organisational Design