THE ORGANIZATIONAL ALIGNMENT HANDBOOK

Transcription

1 THE ORGANIZATIONAL ALIGNMENT HANDBOOK A Catalyst for Performance Acceleration H. James Harrington Frank Voehl CRC Press Taylor & Francis Croup Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an Informa business A PRODUCTIVITY PRESS BOOK

2 Contents The Management for Results Handbook Series Preface Acknowledgment About the Author H. James Harrington About the Author Frank Voehl Other Books by H. James Harrington and/or Frank Voehl xiii xvii xxiii xxv xxix xxxi Chapter 1 Overview 1 Why Organizational Alignment? 1 The Organizational Alignment Functional Model 2 Key Implementation Challenges 5 Gauging Effectiveness 6 Now Ask Yourself These Questions: 7 Harnessing the Energy of Alignment: With Albert ("Butch") Einstein and Jack ("Sundance") Welch 9 The Concept of Organizational Alignment 10 Lessons from "Butch" Einstein 14 Lessons from "Sundance" Welch 14 Two Lessons from Butch and Sundance 15 Organizational Alignment Outcomes 16 Challenges to Implementation 18 New Sources of Competitive Advantage 20 Working This New Aligned Way 21 Focusing the Alignment Strategy 22 Bose Shows the Way 24 Chapter 2 Alignment Considerations 27 Vision-Centered Organizational Alignment Models 27 Approach 28 Outcomes 28 Key Implementation Challenges 29 Gauging Effectiveness 30 vit

3 viii Contents Macro-Alignment/Micro-Alignment and Culture Change: Key Components 32 Goals and Values 33 Results Are What We Are After 34 Key Implementation Challenges 36 Gauging Effectiveness 38 Organizational Alignment Readiness and Culture 40 Who Is Doing It? 42 Outcomes 43 Key Challenges 44 Organizational Alignment and t-business Strategy 46 Approach 47 Outcomes 49 Chapter 3 The Organizational Alignment Methodology 53 The Organizational Alignment Cycle 53 Typical OAC Application 55 Organizational Alignment and Organizational Planning 57 Approach 58 Outcomes 59 Organizational Alignment and Organizational Change Management 61 Chapter 4 Phase I. Strategic Planning 65 Introduction to Strategic Planning Phase 66 Organization's Master Plan (OMP) 66 Setting Direction 70 Denning Expectations (Measurements) 73 Defining Actions 74 Approach to Developing a Business Plan 74 Outline of a Typical Business Plan 75 Approach to Developing a Strategic Business Plan 77 Strategic Business Plans versus Strategic Improvement Plans 79 Developing a Strategic Improvement Plan 79 Activity 1. Assessing the Organization 80

4 Contents ix Activity 2. Developing Vision Statements for Each ofthekbds 80 Activity 3. Developing a Set of Performance Goals 80 Activity 4. Denning Desired Behaviors 80 Activity 5. Preparing 3- to 5-Year Improvement Plans for Each of the Vision Statements 80 Creating the Strategic Plan 81 Annual Business Plan 83 Summary 83 Chapter 5 Phase II. Processes and Networks 85 Introduction to Process and Networks Phase 86 Defining Major or Core Processes 87 Process Improvement Rules 89 Process Improvement Approaches 91 Major Networks 92 Organizational Alignment and Knowledge Mapping 93 Key Processes and Network Implementation Challenges 98 Summary 100 Chapter 6 Phase III. Organizational Structure Design 101 Introduction to Organizational Structure Design Phase 102 The Strategic Perspective 102 Restructuring Principles 103 Design Criteria 109 Realignment Principles and Design Criteria 109 List of Activities to Help Define the Design 109 Measurement System 112 Key Performance Indicators 113 Restructuring Approach 114 The Roadmap for Organizational Restructuring 116 The Alignment Process 116 Activity 1. Assessment 117 Communication Maps 117

5 x Contents Interface Study 118 Organizational Restructuring Workshop 119 Activity 2. Analysis 120 Activity 3. Redesign 122 The Operations and Tactical Perspective 123 Purpose of the Perspective 123 Approach for Designing an Organizational Structure 124 Option 1. Functional 126 Option 2. Vertical 127 Option 3. Bureaucratic 127 Option 4. Decentralized 127 Option 5. Product 128 Option 6. Customer 128 Option 7. Geography 129 Option 8. Case Management Network 129 Option 9. Process-Based Network 130 Option 10. Front-Back Hybrid 130 Span of Control and Organizational Structure 131 What Is the Correct Span of Control? 131 Balancing Managerial Work Load 132 Restructuring Challenges 133 Restructuring Effectiveness 134 Impact 134 Activity 4. Documentation 135 Activity 5. Implementation 137 Key Implementation Challenges 137 Summary of Organizational Restructuring 141 Chapter 7 Phase IV. Staffing 143 Introduction 144 The Two Approaches to Solving the Skill Mix Problem 144 Denning Skills Requirements 146 Outsourcing 148 Present Employees 150 Management Skills 150 Summary 152

6 Contents xi Chapter 8 Phase V. Rewards and Recognition System Design 155 Introduction to Rewards and Recognition (R&R) Phase Key Objectives 158 Seven Major Types of R&R 159 Financial Compensation 159 Challenges with Commissions 161 Challenges with Piecework Pay 161 Challenges with Employee Stock Plans 162 Challenges with Cash Bonuses and Gain Sharing Monetary Awards 165 Personal Public Recognition ; 166 Group Public Recognition 167 Private Recognition 168 Peer Recognition 169 Organizational Awards 169 Implementing the R&R System 170 Summary 172 Chapter 9 Phase VI. Implementation 173 Introduction to Implementation Phase 174 Organizational Change Management 175 Murphy's Laws Related to Change Management 178 The Seven Phases of the Change Management Methodology 178 Phase I Clarify the Project 178 Phase II Announce the Project 179 Phase III Conduct the Diagnosis 179 Phase IV Develop an Implementation Plan 179 Phase V Execute the Plan 180 Phase VI Monitor Progress and Problems 180 Phase VII Evaluate the Final Results 180 Change Management Tools 180 Area Activity Analysis (AAA) 181 What Is Area Activity Analysis (AAA)? 185 Organizational Alignment and Communications 189 Key Implementation Issues 191 Gauging Effectiveness 192

7 xii Contents The Management Cycle and Alignment 196 Key Implementation Challenges 198 Organizational Alignment and Business Performance Management 199 Outcomes 201 Gauging Effectiveness 202 Outsourcing 204 Key Implementation Challenges 206 Open-Ended Questions 208 Chapter 10 Epilogue., 209 Appendix A Definitions and Abbreviations 215 Appendix B Some of the 1100 Plus Improvement Tools 223 Index 239