Table of Contents
Title Page
Copyright Page
Acknowledgements
ABOUT THE AUTHORS
Introduction
CHAPTER 1 - PROCESS IMPROVEMENT
DEVELOPMENTS IN PROCESS MANAGEMENT
INVESTIGATING BUSINESS PROCESSES
RECORDING THE PROCESSES
CHAPTER 2 - CHANGE MANAGEMENT AND ORGANIZATIONAL DEVELOPMENT
DEVELOPMENTS IN CHANGE MANAGEMENT
CHANGE MANAGEMENT CONSIDERATIONS
CHANGE MANAGEMENT PLANNING
MANAGING CHANGE AND PEOPLE
CHAPTER 3 - PEOPLE-FOCUSED PERFORMANCE MANAGEMENT
DRIVERS FOR PERFORMANCE MANAGEMENT
PERFORMANCE AND COMPETENCY DEVELOPMENT
PERFORMANCE THROUGH EMPOWERMENT
CHAPTER 4 - KNOWLEDGE MANAGEMENT AND PERFORMANCE
DEVELOPMENTS IN KNOWLEDGE MANAGEMENT
ORGANIZATIONS AND KNOWLEDGE MANAGEMENT
PEOPLE AND KNOWLEDGE MANAGEMENT
CHAPTER 5 - ORGANIZATIONAL DEVELOPMENT AND PERFORMANCE THROUGH COLLABORATIVE WORKING
DEVELOPMENTS IN COLLABORATIVE WORKING
SUPPLIER/CUSTOMER PARTNERING CONSIDERATIONS
PARTNERING IN ACTION
REFERENCES
INDEX
This edition first published 2009
© 2009 John Wiley & Sons, Ltd
Registered office
John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom
For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com.
The right of the author to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher.
Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.
Library of Congress Cataloging-in-Publication Data
Burtonshaw-Gunn, Simon A.
Essential tools for organizational performance : tools, models and approaches for managers and consultants / Simon A. Burtonshaw-Gunn and Malik G. Salameh. p. cm.
Includes bibliographical references and index.
eISBN : 978-0-470-68558-7
2. Knowledge management. I. Salameh, Malik G. II. Title.
HD58.8.B8837 2009
658.4′06—dc22
2009015947
A catalogue record for this book is available from the British Library.
Set in 11.5/15pt Bembo by SNP Best-set Typesetter Ltd., Hong Kong
ACKNOWLEDGEMENTS
Having received positive feedback on the publication of the book The Essential Management Toolbox, which offered a collection of models and tools that may be used for a variety of management assignments, the compilation of this sibling book would not have been possible without the fine efforts from all those management authors, research publications and course notes that we have collected over the years to inform and challenge the development of practical approaches to the topics discussed here. While we have drawn on our own writings and experience, we remain naturally still indebted to all those whose work appears in this book, and also to our own teachers and mentors who have aided our understanding on many management topics.
We are grateful to the publishers, individuals and copyright holders who gave their permission to allow previously published work to be used in this book, and while every effort has been made to ascertain copyright and seek permission we apologize in advance for any omissions and would be pleased to correct these in any future edition.
Finally, our huge thanks to all at John Wiley and Sons for their support, encouragement and the opportunity to develop the “Management Toolbox” contents in this way.
ABOUT THE AUTHORS
Professor Simon A. Burtonshaw-Gunn has over 30 years’ working experience in both the public and private sectors covering a range of organizations and industries. As a practising management consultant he has undertaken assignments in Asia, North Africa, the Middle and Far East and Eastern Europe, and currently holds a full-time position as a Principal Management Consultant for the international risk management consultancy company, Risktec Solutions Limited. In addition, he has a pro bono position as a member of the Court at the University of Leeds - a member of the Russell Group Association of the top 20 UK research-intensive universities. To complement this experience he holds two Master’s degrees and a PhD in various strategic management topics together with fellowships of four professional bodies including the Chartered Management Institute (FCMI) and the Institute of Business Consulting (FIBC).
He was a post-doctoral research fellow for four years at the Manchester Metropolitan University before relinquishing this at the beginning of 2005 to take up the role of a visiting professor at the University of Salford in Greater Manchester. Here he served for three years in the six-star research rated School of the Built Environment before being appointed as the first visiting professor to the Salford Business School in 2007. Professor Burtonshaw-Gunn has been a research examiner for the UK’s Chartered Institute of Purchasing and Supply (CIPS) since 2002 and is one of the founding members of an international academic research group (ISCRiM) with a focus on supply chain risk management. In connection with this group he has presented conference papers in Sweden, the USA, the UK and Hungary together with a number of refereed publications, professional journal articles and chapters in four collaborative management textbooks. On the subject of risk management he has recently published a book covering “Risk and Financial Management in Construction” aimed at industry practitioners and post-graduate students. His popular book The Essential Management Toolbox, covering management tools, models and notes aimed at students, managers and consultants alike, was published by John Wiley and Sons in January 2008.
Dr Malik G. Salameh read Aeronautical Engineering for his first degree, before completing a Master’s degree in Business and Operations Management and then specializing in implementing value-based cultural change within “blue-chip” corporate environments. He holds a PhD in Management and is an active member of a number of professional bodies including the Royal Aeronautical Society (MRAeS), the Chartered Institute of Marketing (MCIM), the Chartered Management Institute (MCMI) and the Chartered Institute of Personnel and Development (MCIPD).
Dr Salameh is a practising management consultant undertaking a wide range of strategic consultancy assignments in the UK and internationally including the Middle and Far East, North Africa, Eastern Europe, North America and Asia. His focus includes supporting senior management teams in all aspects of organizational design and development through to transition and implementation at both tactical and strategic levels. He actively contributes to the continued development of his discipline through publications, attendance at CPD lectures, debates and master classes at Lancaster University Management School, which is among the top MBA schools in the world and the first to be awarded a six star rating in the UK. He has also been selected as post-doctoral examiner for Warwick University Business School in the UK.
Professor Burtonshaw-Gunn and Dr Salameh have undertaken a range of management consultancy assignments together both in the UK and in more challenging international locations where skills, experience and academic knowledge require a wider cultural appreciation, understanding and respect of the external economic, political, religious and business influences. Over the last four years they have published a number of joint articles on a range of business topics with an established house style of combining management theory with practical experience.
INTRODUCTION
This book has been developed from an interest in the use of management tools and models published in January 2008 in The Essential Management Toolbox: Tools, Models and Notes for Managers and Consultants. This supplementary book describes a number of examples and shares the authors’ practical experiences in the use of appropriate management tools and models taken from the Toolbox with a focus on the topic of organizational development and performance.
As an introduction, this book comprises five broad and inter-related chapters commencing with Process Management, leading to Change Management and Organizational Development, then to People-focused Performance Management and the role of Knowledge Management applicable to organizational and individual performance. The final chapter examines the topic of organizational development and performance from closer collaborative-partnered work between organizations.
Figure 0.1 Development of performance management.
These chapters also present a balance between the organizations and individual performance commitment, although clearly both are needed to a greater or lesser extent in each topic.
It should be noted that the book title reflects that the narrative describes a range of tools and models on this important management topic and that the five chapters may be viewed as standalone topics or as elements of a systematic approach to organizational development and performance management. However, in practice, of course, the five topics will not always be applicable to every company.
The book is designed to be one of a series of sibling publications intended to group enabling management tools, techniques and models into related clusters. These publications will give managers, organizational leaders and consultancy practitioners a highly effective means of developing a composite view of an organization and where necessary helping to apply an appropriate level of intervention to drive performance improvement. Other titles are Essential Tools for Management Consulting and Essential Tools for Operations Management.
The structure follows the successful Toolbox formula of integrating contemporary management tools, techniques and models with those developed from practical experience of addressing the interconnectedness of a wide range of organizational challenges across multiple industries. While this approach provides the opportunity to discuss some new models, the majority of the figures and models are taken from The Essential Management Toolbox: Tools, Models and Notes for Managers and Consultants. Where the original source is not that of the authors then the source is shown with each model discussed. As with The Essential Management Toolbox and other books in this series, full references are provided to guide the reader to where further information may be found. To assist the reader, each chapter is punctuated by key theme subheadings to aid navigation and provide a logical approach to each topic area together with accompanying explanations intended to facilitate robust analysis, gain commitment and develop momentum.
The intent of writing this title has been again to provide a suitable reference for those currently studying, newly qualified or promoted managers or those business leaders wishing to understand and undertake practical performance improvements relevant to the latest management thinking. The incremental nature of the book content is planned to act as a catalyst in reducing the lead-time to developing practical responses to changes in market dynamics and assist the application of right-sizing throughout any organization’s development lifecycle, with an equal relevance to both the public and private sectors. It should be noted that both “hard” and “soft” management issues are balanced to help emphasize the importance of symbiotic relationships in engaging people, achieving high performance and driving innovation through active knowledge management, all of which has been covered in this text. Finally, the use of the plan-do- review theme is deliberate throughout the book to allow any manager, facilitator or change agent to deliver performance improvement in a structured and effective format.
CHAPTER 1
PROCESS IMPROVEMENT
DEVELOPMENTS IN PROCESS MANAGEMENT
Businesses, whether commercial or not-for-profit organizations, inevitably have a wish to remain in operation; to have sustainable and repeatable business; and to satisfy stakeholders, customers and employees. For many, this brings a need to examine their operations in order to improve and advance such objectives. While organization change is covered in detail in Chapter 2 and the people aspects of performance management and organizational development in Chapter 3, a deliberate starting point for such change may be the examination of current practices and processes. Against this backdrop, process improvement can be regarded as being a systematic effort to provide an understanding of every aspect of a company’s processes in order to reduce rework, variation and needless complexity in order to contribute to its performance through effectiveness and efficiency. It should be noted that process identification and redesign only provides a benefit when it is actually implemented and hence this also suggests a natural link to a change management programme.
Completion of a process improvement examination exercise is often seen to be a traditional springboard for much larger business improvements, which may in turn incrementally develop into a large-scale change management programme and planned organizational development. Indeed, what may begin as a simple local business improvement may grow into other initiatives aimed at delivering more substantial change and hence increased business-wide implications. The evolution through a range of such business programmes is shown in Figure 1.1.
Figure 1.1 The re-engineering spectrum.
(From Business Process Re-engineering: Myth and Reality. Professor Colin Coulson-Thomas, 1996, reproduced with permission of Kogan Page.)
With every organizational change there comes a risk which usually manifests itself through deterioration in business performance; however, a performance management system with associated key performance indicators can be used to help management teams predict and mitigate such an impact. This suggests that process improvement may be made in conjunction with the introduction of a change management programme which may be instigated to realign the culture and business targets. Nevertheless, it should be stressed that the ubiquity of change management initiatives within both public and private sector organizations can quite often leave stakeholders at all levels with “change fatigue”, particularly where the vision, mission and principal objectives become diluted and performance reporting data confused. This said, for any performance-based management system to really add value to the organization it will need to encourage a no-blame culture where it will be safe for individuals to highlight sources of poor performance variance and actually regard these as proactive opportunities for improvement through a step change in their process redesign activities prior to implementation. Common across the re-engineering spectrum of Figure 1.1 is the requirement to understand fully the current processes together with a desire to improve them.
Figure 1.2 Two extremes of undertaking process improvement. (From The Essential Management Toolbox: Tools, Models and Notes for Managers and Consultants. S.A. Burtonshaw-Gunn, 2008, reproducedwith permission.)
Consequently, it is essential that organizations establish a level of openness and engagement throughout the process improvement and change management lifecycle, which transcends policies, procedures and statutory obligations, and carefully consider how critical the involvement of all employees will be in helping deliver process change. While there are a number of approaches to change, there are two extremes of major step change - one being revolution and the other a more gentle, incremental change of evolution with the features of both shown in Figure 1.2