Welcome to our 3 rd Special Organizational Design Refresher Webinar

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1 Welcome to our 3 rd Special Organizational Design Refresher Webinar Center for Effective Organizations University of Southern California office: ceo@usc.edu 2016 University of Southern California Presentation only. Not for distribution.

2 Some of Sue s focuses Dr. Susan A. Mohrman CEO Senior Research Scientist Widely known for organization design and effectiveness and large-scale change research The design of knowledge-based firms Knowledge creating systems Sustainability and how to design complex collaborations to foster it Examination of the research process itself How to create academic/company partnerships to yield useful knowledge 2016 University of Southern California Presentation only. Not for distribution.

3 Some of Chris focuses Dr. Christopher G. Worley CEO Senior Research Scientist Strategy formulation and implementation Organization design Longitudinal evaluation of strategic change Agility Sustainability and how to design complex collaborations to foster it 2016 University of Southern California Presentation only. Not for distribution.

4 Focus areas Audra Lee, PhD Talent & Organizational Capability O: (817) C: (817) Consulting to the ReDesign of major A&D aircraft program - specifically leading executive leadership, the Supply Chain Management team and Program Management offices through the 8-step Design process. Developing standard tools and processes to effectively implement designs, including integration of Talent Development strategies. Developing and executing change management plans for Program and Enterprise-wide initiatives utilizing Prosci methodology University of Southern California Presentation only. Not for distribution. (4)

5 What are Organizational Capabilities? The organization s know-how to achieve its intended outcomes and implement its strategy. Composite bundles of competences, skills and technologies, designs and behavioral norms that together deliver valued outcomes. They are not single discrete skills, particular jobs or particular disciplines or the work of isolated units. Embedded in the design of the organization: its work processes, structures, processes, communication channels, human resource systems, problem-solving and decision-making strategies University of Southern California (5)

6 Fundamental Changes in Organizational Capabilities Examples International (Exporter) Global Product Development Solutions Government Contracting Commercial Business High-touch Service Delivery Virtual, Electronically Mediated Service Delivery 2015 University of Southern California SM48T (6)

7 Implications for Complex Design It s the system that is being redesigned not specific sub units in the organization There is a network of redesign activities, held loosely together by integrating processes Design is an iterative process through time, as the organization learns, and as different units make changes that impact the other units in the organization Clear strategic direction provides the basis for alignment of many interdependent design activities throughout the system 2015 University of Southern California (7)

8 F-35 Fast Facts DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

9 DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. F-35 ReDesign for Growth Case for Change Goal: ReDesign the organization and processes to support desired culture and successfully grow the business FUTURE 2021 Full Rate Production Growing Global Customer Base More than 600 Jets Flying Customer-Focused Relationships Delivering Full Life Cycle Services Pre-ReDesign Transitioning from Design phase Low-rate Production 100 Jets in the Field Integrated, Collaborative, Accountable and Decisive Culture Multiple Customer Touch Points, Engineering Centered Need for Improved Integration CUSTOMER FOCUSED INTEGRATED EFFICIENT CUSTOMER FOCUSED INTEGRATED EFFICIENT Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

10 DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. F-35 Program: From To FROM Engineering Emphasis on the system design & demonstration phase. Technical solutions that address a domestic customer s needs. Production Low-Rate Production phase with 7 day production intervals. Developing international production capability. Sustainment Developing integrated sustainment capability. Developing high value business model. Supply Chain Supplier management focused on design needs. Developing cohesive sub-contract management approach. International Development of international program management capability. Variant leads working with Domestic partners. TO Expanded focus on product use on the production floor and in the field. Optimized technical solutions for broader customer use. Full Rate Production with 1.2 day production intervals. Increasing global customer base with 600+ jets flying. Sustaining aircraft world-wide. Operating in a Performance-Based Logistics (PBL) environment. Utilizing collaborative supplier management approaches. Employing demand-based acquisition strategies leveraging procurement efficiencies and driving value/affordability. Holistic Customer Solutions organization providing effective customer engagements across all stakeholders (Services, MODs, Military and Industry) through consistent customer focus approach and successful execution. Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

11 Star Model DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

12 DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. ReDesign Governance: Macro Design Organization Effectiveness Operational Excellence Executive Leadership Steering Committee Focus Group Participants Stress Test Panelists HR Business Partners Project Support Team Focus Area Leads Integrated Design Team (IDT) Engineering Deep Dive Sustainment Deep Dive Supply Chain Deep Dive Production Deep Dive Customer Solutions Deep Dive Development Deep Dive Functions Deep Dives Process Step Outputs Presented to IDT as Mechanism for Vetting & Integration Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

13 DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. F-35 ReDesign: 8 Step Design Process Common Processes, Tools & Templates Utilized Across 6 Design Teams and 3 Functional Units Ensures Consistency Between Simultaneous Designs Enables Tracking of Design Deliverable Completion Integrated Team Approach Allows for Integration of Design Elements Across All Teams Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

14 DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. Eight Step Process Example: Step 3 Develop Design Criteria Participation in Process Step Education Sessions Standard Definitions, Processes, Tools & Templates Understanding Inputs & Outputs (Deliverables) for Each Step Common Facilitator Guidance (Activity Steps) for Each Step Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

15 F-35 Design Criteria DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. Sustain full life cycle services for all customers Listen & act on customer expectations Make business-based decisions at the lowest level of accountability Drive horizontal integration Deliver low-cost solutions Expand international business with clear accountabilities Each Design Team Developed Design Criteria Consistent with and in Support of the Overall F-35 Program Design Criteria Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

16 DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. Eight Step Process Example: Step 4 Develop Structure Options Understanding Inputs & Outputs (Deliverables) for Each Step Common Facilitator Guidance (Activity Steps) for Each Step Standard Definitions, Processes, Tools & Templates Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

17 DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. F-35 ReDesign for Growth: Simultaneous Design Completed Simultaneous Design Around the Star for ALL Organizations and the Organization as a Whole Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

18 DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. F-35 ReDesign for Growth: Simultaneous Design Completed Simultaneous Design Around the Star for ALL Organizations and the Organization as a Whole Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

19 Star Model DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

20 DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. Program-wide Lateral Designs Integrated Design Team (IDT) Identified Program-wide Lateral Designs Enabling Effective & Efficient Operations Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

21 Project Managers IMO Steering Committee DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. ReDesign Governance: Implementation/Detail Design Phase Deputy GM VP, HR F-35 VP, Customer Solutions VP, Aero VP, Eng VP, Customer Solutions VP, Development VP, Production BU Roles & Responsibilities: Receives status updates from the IMO Leads, makes project decisions when necessary and discusses escalated risks and mitigation strategies Meeting Cadence: Weekly Meetings Tues. (9-10am) Project Manager Org Eff. IMO Leader Change Mgmt. Communications Lateral Integrator HR/COE Project Scheduler Roles & Responsibilities: Led by the Senior Manager, the IMO is tasked with working with the PM Council to diligently plan and coordinate the continued design work as well the implementation of ReDesign Meeting Cadence: Bi-Weekly Monday (10-11am) & Thursday (2:00 3:30 pm) Implementation Project Management Council Roles & Responsibilities: Chaired by the IMO Senior Manager, this council (made up of each organization s project manager) will discuss integration points(intra/inter), decide on coordination matters, report status and make requests to the IMO Meeting Cadence: Weekly Meeting Thurs. (10 12pm) Deputy Office Sust. Customer Solutions Quality Eng. SCM F&BO Dev. HR A/C Prod. Roles & Responsibilities: Responsible for developing and executing the implementation plan for each organization, tracking to key milestones, assessing business measures, tracking risks and implementing mitigation strategies, and communicate to senior leadership Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

22 DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. IMO Organizational Structure Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

23 DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. Current Focus: Design Close-out &Stand-up Planning Standard Processes, Tools & Templates We are here Step 8 Phases Detailed Design Standup Planning Standup Continuous Improvement Design for sub-units at lower levels Organization-internal laterals Detailed process development Updates to Blueprints Plans for Staffing, Learning & Development, Rewards, Change Management/ Communications Policy/Process Documentation Executing standup plan Conducting chartering sessions (leadership teams, organizations, laterals) Immediate feedback (shortly after standup) Ongoing feedback (periodic) Updates to Blueprints Implementing changes to designs Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Webinar Feb

24 Certificate in Organization Design More Information at Upcoming seminars include: Strategic Organization Design Workshop April 12-15, 2016 (hosted at UPS Corporate Headquarters Atlanta, GA) Beyond Change Management June 14-16, 2016 (Los Angeles) Advanced Topics in Organization Design October 11-14, 2016 (Los Angeles) Strategic Organization Design Workshop November 15-18, 2016 (Los Angeles) 2016 University of Southern California Presentation only. Not for distribution.