Organizational Processes for TPP: Session 11 - [email protected]
Transcript of Organizational Processes for TPP: Session 11 - [email protected]
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Organizational Processes for TPP: Session 11
Organizational Change and Support Functions
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Session Design
• Introduction (5 min.) • Organizational Change (10-15 min.) • Dispute Resolution Systems (30-45 min.) • Systems Change Debates (30-45 min.) • Break (10 min.) • Negotiated Change (10-15 min.) • Cross-Functional Alignment (30-45 min.) • Skill Module(s) (30-45 min.)
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Organizational Change
• Large-scale system change initiatives: • Knowledge Management Systems • Team-Based Work Systems • Organizational Re-Design/Re-Structuring • Flow/Lean Manufacturing Systems • New Finance Systems • Joint Ventures and Strategic Alliances • Total quality initiatives • Work/Family Initiatives • Centralized Purchasing/Acquisition Reform • Dispute Resolution Systems
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
The Organizational Development (OD) Role – Selected Competencies
• Change management • Organization design • Team effectiveness • Problem solving tools
and techniques • Relationship building • Conflict resolution • Decision making
processes • Mutual gains
negotiations principles • Project management
• Constructing sharedvisions
• Strategic planning process
• Joint implementation • Leadership
development • Stakeholder alignment • Boundary spanning • Feedback and
evaluation methods • Sustaining change • Systems thinking
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
A Spectrum of OD Roles Basic Skills Competent Expert Master
Facilitator . . . . . . . . . . . . . . . . . . . . . Process Expert
Trainer . . . . . . . . . . . . . . . . . . . . . .Trainer of Trainers
Mediator . . . . . . . . . . . . . Shuttle Diplomat
“Thermometer”. . . . . . . . Moral/Ethical Sounding Board
Strategic Planner . . . . . . . . . . . . . . . . . Strategic Visionary
Systems Thinker. . . . . . . . . . . . . . . . . . Systems Designer
Organizational Assessor . . . . . . Organizational Architect
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Sample OD Wisdom
• Resistance to change is not irrational
• Training is not the solution to all problems
• Disconnects are data
• Leadership is necessary, but not sufficient
• The big 3: Strategy, Structure, Process
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Selected Aspects of Dispute Resolution Systems
• Informal resolution • Complaint systems • Open door policies • Survey and feedback systems • Training interventions • Affinity groups • Coaching and mentoring systems • Ombuds offices • Grievance procedures • Mediation • Arbitration • Adjudicatory processes
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Concurrent Layers of Conflict Resolution
Countless inappropriate, disrespectful, complicated, and conflictual situations
Informal efforts by co-workers, supervisors, union representatives and others to address the issues in these difficult situations
Formal leadership efforts at all levels to anticipate and prevent difficult situations
The grievance procedure and other dispute resolution forums
External adjudication
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Functional and dysfunctional systems for dispute resolution
A Dysfunctional System A Functional System
PowerPower Power
Rights Rights
Interests Interests
Source: Getting Disputes Resolved: ning Systems to Cut the Costs of Conflict, by William Ury, Jeanne Brett and Stephen Goldberg (Jossey-Bass, 1988)
Contract Administration
Desig
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Systems Change -- Top Down
• Concept of “Re-engineering” – Many meanings, from a pretext for restructuring
and downsizing to a systematic review of operations -- if it’s not broke, break it
• Roots private and public sectors, including “re-inventing government”
• First driven by economic crisis, now seen as a process for system change
• GE “workout” process as a proto-type
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
System Change -- Bottom Up • Concept of “Kaizen”
– Many meanings, from tangible improvement activities to an underlying philosophy and a way of life -- you are never done improving
• Roots in post WWII Japan – First seen piecemeal -- quality circles (QC), statistical
process control (SPC), just-in-time (JIT) delivery – Increasingly seen from a systems perspective -- Total
Quality Management (TQM), Total Preventative Maintenance (TPM), Continuous Quality Improvement (CQI), Toyota Production System (TPS)
• Kaizen-teian systems -- many small improvements build capability for system change
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Systems Change -- Pilot/Diffusion
• Concept of “Pilot Experiments” – Many types of pilots
• Pilot teams, facilities, business units – Selecting where to pilot
• “If it will work here, it will work anywhere” • “Begin with small successes” • “Target bottleneck/priority areas”
– Plan for lessons from the pilot experiment to guide subsequent diffusion
– Issue of managing multiple concurrent pilots
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Systems Change -- Wall-to-Wall
• Concept of “Wall-to-Wall” – Requires unfreezing event or bold leadership – System-wide shifts in policy or fundamental
changes in external context – Gradual diffusion is not an option – the entire
organization must change – Requires substantial planning and resources
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
System Change Debates
• Two debates: – Direction of change:
engineering – Scope of change:
wall • Debate format:
– Opening Statements (1 min.) • Within team consultation (1 minute)
– Rebuttal (2 min.) • Within team consultation (1 minutes)
– Closing Statements (1 min.)
Kaizen versus re-
Pilot/diffusion versus wall-to-
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Bargaining Strategies
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Strategies for Negotiated Change • Change strategies and negotiation blind sides
– Top-down re-engineering • Forcing process makes recovery afterwards
difficult – Bottom-up process improvement
• Fostering process makes subsequent conflict difficult
– Pilot-experiment and diffusion • Diffusion depends on a combination of forcing
and fostering
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Risky links between tactics with strategy
Assertive
Divide and conquer
Hard Forcing Claiming value
Empathetic
Internal consensus
Soft Fostering
Creating value
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Promising links between tactics and strategy
Empathy and Assertiveness
Appreciating internal differences
Robust Fostering and Restrained Forcing
Creating value and Claiming Value
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Analysis of Negotiation Blind Sides and Process Improvement Initiatives
• Discussion of forcing and fostering aspects of implementation
• Identification of potential blind sides • Construction of mitigation plans • Reports to the full group and discussion
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Cross-Functional Alignment
• What are examples of misalignment across functions in an organization?
• What are examples of alignment across functions in an organization?
• What experience, if any, have you had with successful efforts to increase alignment across functions?
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Support-Function Exercise: Operating Facilities by Industry
• Utilities – Large electric
power plant
• Aerospace – Rocket engine test
and assemblyfacility
• Pharmaceuticals – Pharmaceutical
manufacturing plant
• IT/Telecom – Production facility for
network switching components
• Automotive Group 1 – Auto assembly plant
• Automotive Group 2 – Fuel cell R&D lab
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Support-Function Exercise: Roles
• In your industry cluster, form 5 sub-groups for the following support functions: – Human Resources – Finance – Materials/Purchasing – Quality – Maintenance/Engineering
• Assess what you understand to be the “current state” and the “desired state” for this support function in operating settings in this industry – for each the three roles listed in the following support material.
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Support-Function Analysis
• Three Potential Roles – Regulator/Enforcer
• Policies, laws, contractual agreements – Service Provider
• Administration of programs and activities – Change Agent
• Systems change implementation and procedural fairness
Adapted from conceptual framework developed by Russ Eisenstat and further developed by Jan Klein.
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Sample Activities/Competencies -- HR
Role
Regulator/Enforcer
Service Provider
Change Agent
Sample Activities
EEO, OSHA, ADA, Collective Bargaining Contract
Benefits, Recruiting, Compensation, Technical training
Champion for effective Work Groups, OD, Culture change
Sample Competencies
Legal/technical Detail oriented Risk adverse
Procedure oriented Consistent
Innovative/flexible Proactive Risk taking
Adapted from Jan Klein,“The Evolution of HR Professionals from Traditional Managers to Change Agents in Strategic Partnership for High Performance,” Work In America Institute 1995
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Sample Activities/Competencies -- Finance
Role
Regulator/Enforcer
Service Provider
Change Agent
Sample Activities
Budget compliance, tax and audit regulations
Payroll and information systems, financial reports
Champion for Total Cost, Linking ERP and process improvement, Work Group analysis of performance data
Sample Competencies
Legal/technical Detail oriented Risk adverse
Procedure oriented Consistent
Innovative/flexible Proactive Risk taking
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Sample Activities/Competencies – Materials/Purchasing
Role
Regulator/Enforcer
Service Provider
Change Agent
Sample Activities
Material storage rules and regulations, Global purchasing terms and condition
Delivery of parts and materials, Schedule management
Champion for Material Flow and Just-In-Time Delivery
Sample Competencies
Legal/technical Detail oriented Risk adverse
Procedure oriented Consistent
Innovative/flexible Proactive Risk taking
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Sample Activities/Competencies -- Quality
Role
Regulator/Enforcer
Service Provider
Change Agent
Sample Activities
QS 9000 and other quality standards
Quality data; Training in quality skills and tools
Champion for total quality systems and related initiatives
Sample Competencies
Legal/technical Detail oriented Risk adverse
Procedure oriented Consistent
Innovative/flexible Proactive Risk taking
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Sample Activities/Competencies – Maintenance/Engineering
Role
Regulator/Enforcer
Service Provider
Change Agent
Sample Activities
Scheduled maintenance, ISO14000
Equipment repair
Champion for total productivemaintenance
Sample Competencies
Legal/technical Detail oriented Risk adverse
Procedure oriented Consistent
Innovative/flexible Proactive Risk taking
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Functional Analysis Exercise Current State Daily Operations
Activity Time/ResourceAllocation
Regulator/Enforcer ______ %
Service Provider ______ %
Change Agent ______ %
Total:
Future State Daily Operations
Activity Time/ResourceAllocation
Regulator/Enforcer ______ %
Service Provider ______ %
Change Agent ______ %
Total: 100% 100%
Materials Developed by Joel Cutcher-Gershenfeld and Thomas Kochan (MIT) for use in ESD.140 “Organizational Processes”
Implications
• For Support Functions: – What are specific implications for support functions in your
industry? – What are the system barriers that will make this difficult for
each support function? – What specific skill-building activities would be helpful in this
process? – How will you ensure continuity as leaders and staff change?
• For Line Management: – What are line management’s reciprocal responsibilities in
order for it to be a good “customer” for the support functions?
• For Policy Makers: – What are the implications for public policy in your industry?