DMA. Building the Healthy Organisation

Transcription

1 DMA Building the Healthy Organisation

2 Most large, apparently successful companies are profoundly unhealthy Peter Senge,, 1997

3 Why do organisations become unhealthy? What causes excessive hierarchy?! Anticipating future growth! The arrogance of profit! Job evaluation systems! Impact of titles! Emphasis on control! Promotion from within! Parochial thinking! Horizontal overload! Confusion between line & support roles

4 What causes too little hierarchy?! Down with Hierarchy! Excessive cost reduction! Guesswork! Teamwork! Problem of rapid growth

5 Proposition unhealthy Organisations are unhealthy because they lack well-defined and clear DECISION MAKING ACCOUNTABILITY (DMA) DMA is to the organisation what DNA is to the body. It is the genetic code of organisational life. It maps the path to organisational health and effectiveness.

6 ACCOUNTABILITY Answerable to higher authority for results, service. Requires personal judgement Is not shared (teamwork is) Has consequences (rewards)

7 The DMA Approach offers a fully integrated approach to building a truly healthy organisation: " Optimal structure " Clear accountability " Appropriate empowerment " Outstanding performance linked to appropriate competencies & skills " Motivational rewards " Career opportunities linked to potential " Supportive culture

8 Decision Making Accountability Three Key Principles 1. All organised work, managerial or non-managerial, falls into a hierarchy of discrete levels. At each successive level:! The objectives to be achieved and the decisions, which have to be taken, become broader in nature! The range of environmental circumstances become more complex, extensive and change in quality! The discretion and authority required increase! More time is required to assess the impact of these decisions.

9 Decision Making Accountability 2. At each level of work, the balance of major tasks will fall into that level. This balance or burden of accountability will tend to have a common time-frame.

10 Decision Making Accountability 3. Each accountability level above the first requires one and only one layer of management. The Golden Rule of DMA A layer of management is required only where the manager is accountable for making decisions that cannot be taken by subordinates and that are different from those of the boss.

11 The DMA Model Resource Complexity Change Problem Solving Nature of Work Seven DMA Elements Natural Work Team Time Frame External Interaction

12 The DMA Model Line Jobs Level 3 Level 2 Level 1

13 The DMA Model Line Jobs The line job-holder is the boss, who is individually accountable for the performance of subordinates in lower accountability levels and has the authority to select staff and assign tasks, set objectives and timeframes, appraise performance and change plans, responsibilities and, if necessary, staff. It is the line job that is a value-adding adding layer on the spine of accountability.

14 The DMA Model Line and Support Jobs Line Jobs Support Jobs Level 3 Level 2 Level 1

15 The DMA Model Reasons for Support Jobs # Exceptionally large numbers of subordinates # Widely dispersed subordinates # Multi-shift operations requiring continuous supervision # An absence of essential, specialist know-how at certain levels

16 The DMA Solution Set DMA Level Management Layer Nature of Contribution Potential Pay Scale 6 V Strategic 7 5 IV 6 4 III 5 $ 3 II 4 2 I 3 Y 1 Operational

17 The Integrated DMA Solution Set Structure Culture Culture Resourcing Rewards DMA Performance Succession Careers Potential

18 DMA COMPETENCIES MODEL COMPETENCY Definition: A set of behaviours, which contribute to the effective performance of an individual at a given level of accountability.

19 DMA COMPETENCIES MODEL # Comprises sets of behavioural indicators describing the behaviours associated with effective performance at each level of accountability. # These behaviours derive from the changing nature of accountabilities at each level, depending upon the seven DMA elements.

20 DMA COMPETENCIES MODEL DMA Element Nature of Work & Time Resource Complexity Problem Solving Change Natural Work Team External Interaction DMA Competency 1. Setting Direction 2. Leading Resources 3. Analysing & Decision-making 4. Creating Change 5. Influencing Colleagues 6. Managing the Environment + Generic customer-specific, value-based competencies

21 DMA COMPETENCIES MODEL 1. SETTING DIRECTION Short-term Operational Low Level 2. LEADING RESOURCES Continuous lmprovement Low Level Range Range Long-term Strategic High Level Reconfiguration High Level

22 1. SETTING DIRECTION (Sample Behavioural Indicators) DIFFERENTIATING BEHAVIOURS LEVEL 2 Sets specific short-term work objectives. Identifies techniques and routines to achieve short-term success. LEVEL 3 Sees the total concrete picture and the overall goal for an operating unit or head office department. Integrates potentially conflicting sub-goals or objectives. LEVEL 4 Looks ahead, develops a comprehensive view and anticipates future needs and opportunities. Specifies and manages key milestones to ensure the achievement of longer term objectives. LEVEL 5 Sets and clarifies strategy and new directions, which call for significant change in the scope and pace of business activities. Balances both new and existing business activities to ensure effective strategy implementation. LEVEL 6 Contributes to the creation of values for the business as a whole and acts as a role model. Focuses on a strategic planning horizon and develops vision, goals and long-term plans for a significant part of the overall business.

23 Use of DMA Competencies Performance Management Career Planning Personal Development DMA Competencies Recruitment & Selection Succession Planning Potential Assessment

24 Building the Healthy Organisation Benefits of the DMA Approach $ Comprehensive $ Fully integrated $ Consistent $ Field-tested $ IT supported $ LEADING EDGE DMA