Evidence-Based Productivity Improvement A Practical Guide to the Productivity Measurement and Enhancement System (ProMES)

Transcription

1 Evidence-Based Productivity Improvement A Practical Guide to the Productivity Measurement and Enhancement System (ProMES) Robert D. Pritchard Professor Emeritus, University of Central Florida Orlando, FL Sallie J. Weaver University of Central Florida Orlando, FL Elissa L. Ashwood Founder and Chief Strategist, Truly Accomplished Pittsburgh, PA \ 1 Routledge j j ^ Taylor & Francis Group New York London

2 Contents Series Foreword Preface Authors xix.xxi xxiii SECTION I: THE PRODUCTIVITY MEASUREMENT AND ENHANCEMENT SYSTEM (ProMES): AN INTRODUCTION AND BACKGROUND 1 The Value of Productivity Measurement 3 Productivity: Why So Important? 3 The Effects of Productivity Growth 4 The Importance of Measuring Productivity 5 General Reasons for the Importance of Productivity Measurement 6 Advantages Occurring Through the Process of Developing Productivity Measures... 6 Beneficial Uses of the Resulting Productivity Measurement 6 2 Organizational Productivity: A Definition and Description 7 Purposes in Measuring Productivity 8 The Purpose Influences the Measurement System 9 The Intent of ProMES 10 3 Criteria for an Optimal Productivity Measurement and Feedback System 11 4 The ProMES Approach: An Overview 17 Steps in the Development of ProMES 18 Step 1: Form the Design Team 19 Step 2: Identify Objectives j 19 Step 3: Develop Indicators 19 Step 4: Develop Contingencies 20 Step 5: Develop Feedback Reports 24 Step 6: Conduct Feedback Meetings 25 Step 7: Monitoring the Project Over Time 25 XI

3 xii Contents 5 Theoretical Background Behind ProMES 27 Theory 27 Connections 28 Motivational Force and Behavioral Intentions 31 The Theory and Organizational Systems 32 Implications From the Theory and How ProMES Incorporates Them 33 Other Conceptual Foundations of ProMES 39 Feedback, 39 Participation in Decision Making 40 Roles, Role Ambiguity, and Role Conflict 40 Goal Setting and Task Strategy 41 Teams 41 6 Comparison of ProMES to the Desirable Characteristics 43 7 Research Evidence Supporting ProMES 49 The Initial ProMES Study 49 Productivity Results 49 Attitude Results 50 Hawthorne Effects 50 Later ProMES Research Questions 50 Can ProMES Be Developed in Different Settings? 52 Does ProMES Improve Productivity? 52 Magnitude of ProMES Effects 57 Effects of Removing ProMES 57 Cost Benefits of ProMES 57 Effects During ProMES Development 58 Comparison Groups 58 Do Improvements Last Over Time? 58 What Factors Are Important in Making ProMES Successful? 59 Other Research on ProMES Success Factors 61 What Are Other Effects of ProMES? 67 Effects on Attitudes 67 Negative Reactions 68 Conflict : 69 Interdependencies 69 Effects on Financial Outcomes 70 What Have We Learned About Why ProMES Works? '. 70 Other Motivational Issues.j. 73 ProMES Improvement Priorities 73 The Effects of Participation 74 ProMES and Team Climate 74 Contingencies and Policy 75 Indicator Types 76 How Long Does It Take to Do ProMES? L 77 Calendar Time to Do ProMES 78

4 Contents xiii What Improvements in the ProMES Process Have Been Developed? 79 Introduction of the System 79 Seeing ProMES as a Continuous Process 81 Using Graphics in Feedback 81 Improvements in Developing Contingencies 81 Conjoint Analysis and Contingencies 84 What Do We Still Need to Know: Future Research on ProMES 86 Psychological Processes in ProMES 86 Effects on Financial Outcomes 86 Streamlining ProMES Development 87 ProMES Throughout the Organization 87 8 Why ProMES Works 91 Structural Features 91 Motivational Features 93 Informational Features 94 SECTION II: HOW TO DO ProMES IN YOUR ORGANIZATION 9 Laying the Foundation: Conditions Necessary for ProMES 97 Conditions Prior to Implementation 97 Necessary Background Knowledge 97 Important Organizational Conditions 97 Important Organizational Attitudes 98 The Importance of'management Support 100 Major Implementation Principles 100 'J 10 Key Decision Points When Starting System Development 105 Preliminary Decisions 105 The Design Team 105 The Target Unit(s) 107 Needed Organizational Resources 108 The Development Process: General Considerations 109 The Importance of Participation 109 Participation Versus Control 109 The Importance of Time.»..' 110 Meeting Schedule 110 Interaction Among the Design Team 110 Preparing the Unit Ill 11 Developing Objectives and Indicators 115 Developing Objectives 115 Objective Identification Process 116 Criteria for Good Objectives 117 Developing Indicators 118 Process of Identifying Indicators 118 Criteria for Good Indicators 119

5 xiv Contents Types of Indicators 121 Finalizing Indicators and the Indicator Information Form 123 Indicator Information Form 124 Getting Management Approval Developing Contingencies 127 Developing Contingencies 127 An Extended Example 128 Identifying Minimums, Maximums, and the Zero Point 128 Establishing Effectiveness Values 129 Sample Contingencies ". 134 Management Approval 136 Why Contingencies Are Nonlinear 136 Summary: Developing Contingencies The Feedback System 139 Design of the Feedback Reports 139 Content of Feedback Report 140 Historical Data 140 Priorities 141 Importance of Graphic Feedback 142 Comparing Units 142 Generating the Feedback Report 144 Feedback Meetings Getting the Complete Picture: Aggregation Across Units 145 Horizontal Aggregation 145 Units Doing the Same Work 145 Units Doing Different Work 146 Vertical Aggregation 147 The Aggregation Process 148 Aggregating to Next Level 151 Special Issues 151 An Example Application Tips on Implementing ProMES 153 What to Expect During the Process 153 Relative Difficulty of Each Step 153 Predictable Patterns in the Role of the Facilitator 154 ProMES as a Self-Correcting Process 155 Other Issues to Expect 155 Controllability of Indicators 156 Recommendations for Increasing Output Measure Controllability 157 Conclusions About Measure Controllability 159 Suggestions for Initial Implementation 159 Periodic Review 160 Existing Organizational Problems 161 Other Interventions 161

6 Contents xv 16 Automating Data Collection and Feedback Reporting 163 Using a Self-Developed System 163 Commercially Available ProMES Software 164 ProMES Navigator 164 System Setup 164 Feedback Report Features 165 SECTION III: QUESTIONS AND ANSWERS ABOUT ProMES 17 Questions and Answers About ProMES: General Issues 175 Alternate Features and Applications 175 Can Productivity Measurement Be Used for Individual Performance Appraisal? How Would ProMES Be Different in a Service Organization? 176 Using ProMES With Unions 178 Must Data From a Productivity Measurement System Be Reconcilable With Profitability Data? 179 How Can ProMES Be Used to Evaluate Other Interventions? 179 How Can You Compare the Performance of Different Units Using ProMES? 180 In What Kind of Situation Will ProMES Not Work? 180 General Implementation Questions 181 Is It Worth Doing ProMES in a Unit That Already Has Measures and Feeds These Back to Unit Personnel? 181 Should the Meetings to Develop the System Be Done on Company Time? 181 Is There a Problem With the Facilitators Becoming Consultants? 182 Are There Faster Ways to Do the System With Multiple Groups? Questions and Answers About ProMES: Measurement 185 General Measurement Questions 185 How Do You Deal With the Trade-Off Between the Completeness of the System and the Difficulty of Getting the Measures? 185 How Do You Deal With Resistance to Measurement? 186 How Do You Deal With the Point That Because of the Contingencies ProMES Is a Subjective Measurement System? 188 How Do You Deal With an Overly Directive Supervisor During the Process of System Development? Is It Ever Appropriate to Meet With Only a Part of the Design Team? 189 How Do You Deal With Feelings of Lack of Progress in the Design Team? 189 Interdependency Issues 189 How Do You Deal With Interdependenties Between Units? 189 Is There a Dilemma Between Having Indicator Controllability and Dealing With Interdependence? 191 Indicator Issues 192 What Should the Facilitator Do if Incumbents and Supervisors Cannot Agree on a Measure? 192 Is the Variability of an Indicator an Important Factor to Consider? 192 Is It a Problem if Indicators Are Not Independent? 193 Controllability of Indicators and Chained Outcomes 194

7 xvi Contents Contingency Issues 195 What if the Design Team Comes Up With Linear Contingencies? 195 Why Do You Use the Term Effectiveness on the Vertical Axis of a Contingency? What Do You Do if There Are Ties When Contingencies Are Ranked? 196 Is It Important That the Intervals on the Contingencies Be Equal in Size? 196 Is There an Issue About the Size of the Increase in Determining Priorities? Questions and Answers About ProMES: Feedback Reports and Meetings 199 Developing the Feedback Reports '. 199 How Many Levels up the Organization Should Feedback Reports Be Given? Who Should Do the Data Collection and Preparation of the Feedback Reports? Can I Automate or Computerize the Feedback Reports? 200 Should Information That Is Not Part of the System Ever Be Put Into the Feedback Reports? 200 Using the Feedback Reports 201 How Can I Overcome a Negative or Evaluative Tone in the Feedback Meetings? How Important Is Competition in Such a System? 201 How Do You Ensure You Are Getting Accurate Indicator Data? 201 How Do You Avoid Personnel "Gaming" the System? 202 SECTION IV: OTHER PRODUCTIVITY IMPROVEMENT TECHNIQUES AND OTHER ProMES APPLICATIONS 20 ProMES and Other Productivity Improvement Techniques 205 Feedback, Goal Setting, and Incentives 205 Definition^. 205 Productivity Measurement Is Critical 206 Goal Setting 206 Incentives 207 Balanced Scorecard 208 Six Sigma Other Applications of ProMES 211 Use With Top Management 211 Management Information Systems..i. 212 Performance Appraisal Ratings 212 Criterion Development 213 Improvement Priorities 215 Policy Transparency f. 216 Mission Customization 216 Relating the Overall Criterion to Financial Value 216 Assessment Centers 217 Pay-For-Performance 217 Enhancing Training Effectiveness Through Dynamic Feedback 218 Process 218 Research Objectives 221 Approach 221

8 Contents xvii ProMES for One's Own Life: I-Count-Ability 222 Advantages of I-Count-Ability 223 Healthy Behavior 223 Rehabilitation 226 Corporate Social Performance 227 Concluding Statement 231 Appendix A: Scholarly Work on ProMES 233 Books (Chronological Order) 233 Chapters From 1995 Book 233 Chapters From 2002 Book 234 Dissertations (Chronological Order) 236 Articles and Chapters (Chronological Order) 236 Presentations (Chronological Order) 239 Appendix B: Description of the Indicator Classification System Categories Quantity Priorities Quality Customer Satisfaction Employee Attitudes and Behaviors Skills and Abilities Reporting and Paperwork Safety Maintenance '. : Other Not Enough Information 246 Appendix C: Examples of ProMES Objectives and Indicators 247 Warehouse: Receiving Unit 247 Warehouse: Storage and Issue 248 Warehouse: Pickup and Delivery Unit 249 Warehouse: Inspection 249 Container Terminal in New South Wales 250 Hungarian Confectionery 251 Organizational Consultants ;; 252 A Work Unit in an Electronic Assembly Plant 253 Advanced Manufacturing Facility for Electrical Circuit Breakers Advanced Manufacturing Facility for Electrical Circuit Breakers II 254 Outdoor Equipment Manufacturing f. 254 Work Group in a Chemical Products Plant 255 Assembly Line Group in a Chemical Products Plant (Group II) 256 Computer Service Technicians: An Australian Application 257 Installation, Repair, and Servicing of Office Equipment 257 Individual and Group Measures in a Service Setting 258 University Teaching Effectiveness 259 Bank Bank II 260

9 xviii Contents Clerical Staff: Oil Distribution Company 261 Sales Staff: Small Oil Distribution Company 261 Textile Manufacturing 262 Commercial Painters 262 Substance Abuse Counseling in a Criminal Justice Setting 263 Appendix D: ProMES Contingency Worksheet 265 Appendix E: Template for Developing Contingencies 267 References 269 Author Index 285 Subject Index 289