Corporate Sustainability as a Challenge for Comprehensive Management

Corporate Sustainability as a Challenge for Comprehensive Management

Klaus J. Zink (Editor) Corporate Sustainability as a Challenge for Comprehensive Management Physica-Verlag A Springer Company

Editor: Prof. Dr. Klaus J. Zink Chair of Industrial Management and Human Factors University of Kaiserslautern Gottlieb-Daimler-Straße, Bldg. 42/316 67663 Kaiserslautern Germany kjzink@wiwi.uni-kl.de ISBN 978-3-7908-2045-4 e-isbn 978-3-7908-2046-1 Contributions to Management Science ISSN 1431-1941 Library of Congress Control Number: 2008926104 2008 Physica-Verlag Heidelberg This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permissions for use must always be obtained from Physica-Verlag. Violations are liable for prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMXDesign GmbH, Heidelberg, Germany Printed on acid-free paper 9 8 7 6 5 4 3 2 1 springer.com

Preface Since the Rio Declaration of the United Nations in 1992 sustainability has become a topic of global economic and societal relevance. Generalized sustainability means a reasonable i.e. conservative use of available resources including economic, social and environmental goals. This point of view implies that corporate activities should not concentrate on short-term improvements of a single dimension but strive for a middle to long-term balance between all three dimensions. Corporations and other economically acting organizations need to realize economic, environmental and social objectives with a long-term perspective for the benefit of all stakeholders in order to survive. Referring to corporate sustainability therefore two aspects are of specific relevance: to realize comprehensive management concepts based on a comprehensive change management Comprehensive management concepts are understood as systems approach including the interests of all relevant stakeholders with a mid- or long-term time perspective. As seen before these definition elements are very much related to sustainability. Such concepts can be found e.g. in international excellence models mainly based on a TQM thinking. Many examples in the past showed, that only one third of the companies trying to realize such a holistic approach have been successful. The cause of these failures can be found in the field of human factors in organizational design and management. A comprehensive change management has to involve people and needs to change corporate culture instead of only changing structures and processes. There is a challenge for integration! This topic has been discussed during a symposium organized by the Chair of Human Factors and Industrial Management and the Research Institute for Work and Technology at the University of Kaiserslautern in March 2007. Internationally leading scientists from nearly all parts of the world discussed the item of sustainability from their perspective. Some of them focused mainly on the time perspective, describing the preconditions for a long lasting success e.g. of change projects. Others took the broader

VI Preface perspective based on a stakeholder approach and addressed more than one pillar of the sustainability concept. For a better understanding it might be helpful to explain some more definitions used very often in this book. When we talk about ergonomics we have a broad understanding based on the definition of the International Ergonomics Association, focusing on human-systems interface design with at least two objectives: contributing to the wellbeing of people and enhancing the performance of the system. The term human factors has internationally the same meaning and is here used mainly as human factors in organizational design and management (or human factors in ODAM). For human factors in ODAM during the last years also the term macroergonomics is used. The basis for organizational or business excellence is total quality management (TQM). TQM is mostly understood as the process to reach excellence. Excellence in this context is based on a broad, stakeholder-oriented assessment concept, used by international excellence awards. I am very thankful to all those, who not only came to Kaiserslautern but also took the time to transfer their presentation into a scientific paper for this book. Special thanks go to my associates Dr. Ulrich Steimle and Dipl.-Wirtsch.-Ing. Klaus Fischer, who contributed to the opening paper describing the field of sustainability. Klaus Fischer was the project manager for this publication and he really did an excellent job. Stefanie Holtz and Jens Köhler were responsible for the layout of texts and figures, Sabine Owens helped us to realize a readable English version of this book. Thank you to all of them! My final acknowledgements go to the Springer Publishing Company, which accepted to publish this reader, and Dr. Niels Peter Thomas who supported us in doing so. Kaiserslautern, January 2008 Klaus J. Zink

Contents Preface... V 1 Corporate Sustainability as a Challenge for Comprehensive Management...1 Human Factors, Business Excellence and Corporate Sustainability: Differing Perspectives, Joint Objectives Klaus J. Zink, Ulrich Steimle, Klaus Fischer...3 1 Sustainability as an Economic Principle...4 2 Sustainable Development and Corporate Sustainability...5 3 Satisfaction of Human Needs Joint Objective though Differing Perspectives...9 4 Corporate Sustainability Synergies and Challenges for Comprehensive Management...11 5 Conclusions...15 2 Comprehensive Management Concepts and Sustainable Excellence...19 Performance Excellence: Path to Integrated Management and Sustainable Success Gopal K. Kanji...21 1 Business Excellence...22 2 Systems Approach...24 3 Critical Success Factors Approach...25 4 Kanji s Business Excellence Measurement System and Kanji s Business Scorecard...26 5 Empirical Evidence in Healthcare...28 6 Methodology...30 7 Conclusion...34

VIII Contents Developing Sustainable Competitive Advantage through Operational Excellence and Adaptation Excellence with Value-Innovations Kostas N. Dervitsiotis...37 1 Environmental Changes and Systemic Thinking...37 2 The Character of a Value-Innovation...38 3 The Development of Sustainable Competitive Advantage...39 4 Analyzing the Value-Innovation Process...42 5 The Process Steps for Knowledge Creation Leading to Value- Innovations...46 6 Assessment of Proposed Value-Innovations for the Exploration of Emerging Opportunities with Staged Investments...49 7 Key Metrics to Assess the Quality of the Value-Innovation Process 51 8 Leadership Aiming for a Balance Between Short- and Long-term Goals...52 9 Conclusions...53 Sustainable Improvement: Six Sigma Lessons Learned after Five Years of Training and Consulting Xavier Tort-Martorell, Pere Grima, Lluis Marco...57 1 Sustainable Improvement...57 2 UPC s Open Enrollment Course...59 3 Lessons Learned from Black Belt Training in Open Enrollment Courses...62 4 In Company Black Belt Training and Coaching...65 5 Two Questions Concerning the Survival of Six Sigma...71 6 Conclusions...73 A Strategy for Building Sustainable Innovation Excellence A Danish Study Su Mi Dahlgaard-Park, Jens J. Dahlgaard...77 1 Literature Study, Model Building and Simplification...78 2 A People Oriented Quality Strategy for Building Sustainable Organizational Excellence...80 3 Epistemology and Ontology behind the 4P Model...83 4 Questionnaire Design and a Simple Approach for Measuring Innovation Excellence...87 5 Using the Simple Approach to Prioritize Improvement Areas...88 6 Discussion and Conclusions...90

Contents IX The Impact of Cultural Issues and Interpersonal Behavior on Sustainable Excellence and Competitiveness: An Analysis of the Italian Context Vittorio Cesarotti, Caterina Spada...95 1 Relevance of the Findings for Ergonomics Theory...95 2 Corporate Sustainability: Definitions and Models...96 3 A Management Model for Corporate Sustainability...98 4 From Corporate Sustainability to Sustainable Excellence...98 5 Sustainable Excellence and Cultural Issues...100 6 Sustainable Excellence and Cultural Issues: The Italian Case...102 7 Working on the Cultural Leverages...109 8 Conclusion...111 3 Human Factors in Organizational Design and Management Creating Sustainability...115 Building Sustainable Human-Centered Systems: A Grand Challenge for the Human Factors and Ergonomics Discipline in the Conceptual Age Waldemar Karwowski...117 1 Sustainability in the World of Technology, Science, and Engineering...117 2 Grand Challenges and Opportunities for Engineering...121 3 Grand Challenges and Opportunities for the Human Factors and Ergonomics Discipline in the 21st Century...122 4 Business and Social Sustainability: Constraints and Opportunities.123 5 Building Sustainable Human-Centered Society...124 6 Conclusions...125 Achieving Sustainability through Macroergonomic Change Management and Participation Andrew S. Imada...129 1 Sustainable Development...129 2 The Challenge to Sustainability...130 3 The Ergonomic Alternative...132 4 Conclusions...136

X Contents Continuous Technology Implementation and Sustainability of Sociotechnical Change: A Case Study of Advanced Intravenous Infusion Pump Technology Implementation in a Hospital Pascale Carayon, Tosha B. Wetterneck, Ann Schoofs Hundt, Steve Rough, Mark Schroeder...139 1 Introduction...140 2 Background...141 3 Case Study...144 4 Discussion...146 5 Conclusion...148 The Influence of Project Duration and Focus on Involvement in Participatory Processes Peter Vink...153 1 Introduction...153 2 Method...158 3 Results...160 4 Discussion...164 The Role of Ergonomics in Securing Sustainability in Developing Countries Patricia Ann Scott...171 1 Potentials to Reverse the Negative Spiral...171 2 Basic Scenario in Industrially Developing Countries...172 3 Basic Requirements for Sustainable Change...175 4 Securing Sustainability...177 5 Conclusions...179 Participation as Precondition for Sustainable Success: Effective Workplace Improvement Procedures in Small-scale Sectors in Developing Countries Kazutaka Kogi...183 1 Relevance of Participatory Workplace Improvement Procedures.183 2 Subject of Investigation...185 3 Results and Discussion...186 4 Conclusions...196

Contents XI The Future of Work in a Sustainable Society Colin G. Drury...199 1 From World through Work to Ergonomics...199 2 Sustainability at the World Level...200 3 Growth, Limits and Perception at the World Level...202 4 Changes in the World of Work...205 5 Adapting to a Sustainable Reality: HFE Roles...208 4 Sustainability as Challenge for Human Factors and Integrated Management Systems...215 Social Responsibility, Strategic Management and Comprehensive Corporate Development: Old Roots, New Issues? Philippe Hermel...217 1 Numerous and Varied Concepts, but a Basis of Common Concerns: What Are We Faced with?...218 2 Old Roots: A Useful Journey Back to a Quarter of a Century Ago.221 3 What Differs 25 Years Later?...223 4 Conclusion...227 Human Factors and Comprehensive Management Concepts: A Need for Integration Based on Corporate Sustainability Klaus J. Zink...231 1 Some History...231 2 Stakeholder-Orientation as a Common Frame?...235 3 Relationship between Total Quality Management and Human Factors in the Past...237 4 Integration in Concepts of Sustainability as a Common Challenge.240 5 Conclusion...248 About the Authors...255