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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
Improving Performance is recognized as the book that launched the Process Improvement revolution. It was the first such approach to bridge the gap between organization strategy and the individual. Now, in this revised and expanded new edition, Gary Rummler reflects on the key needs of organizations faced with today's challenge of managing change in today's complex world. The book shows how to apply the three levels of performance and link performance to strategy, move from annual programs to sustained performance improvement, redesign processes, overcome the seven deadly sins of performance improvement and much more.
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Seitenzahl: 354
Veröffentlichungsjahr: 2012
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Table of Contents
COVER
TITLE
COPYRIGHT
LIST OF FIGURES AND TABLES
Figures
Tables
FOREWORD
PREFACE
Purpose of the Book
Overview of the Chapters
How Is This Third Edition Different?
THE AUTHORS
PART ONE: A FRAMEWORK FOR IMPROVING PERFORMANCE
CHAPTER ONE: VIEWING ORGANIZATIONS AS SYSTEMS
The Traditional (Vertical) View of an Organization
The Systems (Horizontal) View of an Organization
The Organization as an Adaptive System
The Reality of Adaptation
CHAPTER TWO: THREE LEVELS OF PERFORMANCE: ORGANIZATION, PROCESS, AND JOB/PERFORMER
I: The Organization Level
II: The Process Level
III: The Job/Performer Level
The Nine Performance Variables
Organization Level
Process Level
Job/Performer Level
A Holistic View of Performance
Using the Three Levels Framework
PART TWO: EXPLORING THE THREE LEVELS OF PERFORMANCE
CHAPTER THREE: THE ORGANIZATION LEVEL OF PERFORMANCE
Exploring the Organization Level
Understanding and Managing the Organization Level
The Performance Variables at the Organization Level
Summary
CHAPTER FOUR: THE PROCESS LEVEL OF PERFORMANCE
What Is a Process?
Understanding and Managing the Organization Level
Why Look at Processes?
The Performance Variables at the Process Level
Summary
CHAPTER FIVE: THE JOB/PERFORMER LEVEL OF PERFORMANCE
What Is the Job/Performer Level?
Taking Action at the Job/Performer Level
The Performance Variables at the Job/Performer Level
Summary
PART THREE: APPLYING THE THREE LEVELS OF PERFORMANCE
CHAPTER SIX: LINKING PERFORMANCE TO STRATEGY
What Is Strategy?
Why Do Strategies Fail?
The Three Levels of Strategy Implementation
Linking Performance to Strategy: An Example
Summary
CHAPTER SEVEN: MOVING FROM ANNUAL PROGRAMS TO SUSTAINED PERFORMANCE IMPROVEMENT
Four Examples of Flawed Performance Improvement Efforts
Organizationwide Performance Improvement
Two Case Studies
Summary
CHAPTER EIGHT: DIAGNOSING AND IMPROVING PERFORMANCE: A CASE STUDY
The Three Levels Approach to Performance Diagnosis and Improvement
A Situation Requiring Diagnosis
Project Definition and Plan
Organization Improvement
Process Improvement
Job Improvement
Implementation
Summary
CHAPTER NINE: PROJECT DEFINITION: THE TEN ESSENTIAL STEPS
Phase 1: Project Definition
CHAPTER TEN: PROCESS ANALYSIS AND DESIGN: THE TEN ESSENTIAL STEPS
Phase 2: Process Analysis and Design
CHAPTER ELEVEN: OVERCOMING THE SEVEN DEADLY SINS OF PROCESS IMPROVEMENT
CHAPTER TWELVE: MEASURING PERFORMANCE AND DESIGNING A PERFORMANCE MANAGEMENT SYSTEM
Why Measure?
Requirements for Effective Management of the Organization System
Building a Measurement System
Performance Logic
Summary
CHAPTER THIRTEEN: MANAGING PROCESSES AND ORGANIZATIONS AS SYSTEMS
Process Management
Institutionalizing Process Management
Managing the Vertical and Horizontal Organizations
The Role of Top Management
Process Improvement and Management and the Three Levels of Performance
Managing an Organization as a System
Evaluating the System
The Systems Management Processes
The Systems Management Culture
Summary
CHAPTER FOURTEEN: DESIGNING AN ORGANIZATION STRUCTURE THAT WORKS
Designing an Organization Structure
Designing an Organization Structure That Works
Summary
CHAPTER FIFTEEN: CREATING A PERFORMANCE-BASED HUMAN RESOURCE DEVELOPMENT FUNCTION
Two Views of Performance Improvement
Determining Training and Development Needs
Designing Training
Evaluating Training
Designing and Managing the HRD Function
Summary
CHAPTER SIXTEEN: DEVELOPING AN ACTION PLAN FOR PERFORMANCE IMPROVEMENT
Step 1: Organization Level
Step 2: Process Level
Step 3: Job/Performer Level
Summary
INDEX
INSTRUCTOR’S GUIDE
End User License Agreement
List of Illustrations
CHAPTER ONE: VIEWING ORGANIZATIONS AS SYSTEMS
FIGURE 1.1. TRADITIONAL (VERTICAL) VIEW OF AN ORGANIZATION
FIGURE 1.2. THE “SILO” PHENOMENON
FIGURE 1.3. SYSTEMS (HORIZONTAL) VIEW OF AN ORGANIZATION
FIGURE 1.4. AN ORGANIZATION AS AN ADAPTIVE SYSTEM
FIGURE 1.5. THE SUPER-SYSTEM OF COMPUTEC, INC.
CHAPTER TWO: THREE LEVELS OF PERFORMANCE: ORGANIZATION, PROCESS, AND JOB/PERFORMER
FIGURE 2.1. THE ORGANIZATION LEVEL OF PERFORMANCE
FIGURE 2.2. THE PROCESS LEVEL OF PERFORMANCE
FIGURE 2.3. THE JOB/PERFORMER LEVEL OF PERFORMANCE
CHAPTER THREE: THE ORGANIZATION LEVEL OF PERFORMANCE
FIGURE 3.1. LAYERS OF ORGANIZATION SYSTEMS IN AN AUTOMOBILE COMPANY
FIGURE 3.2. COMPUTEC, INC., ORGANIZATION CHART
FIGURE 3.3. RELATIONSHIP MAP FOR COMPUTEC, INC.
CHAPTER FOUR: THE PROCESS LEVEL OF PERFORMANCE
FIGURE 4.1. COMPUTEC ORDER FILLING: AN “IS” PROCESS MAP
FIGURE 4.2. COMPUTEC ORDER FILLING: A “SHOULD” PROCESS MAP
FIGURE 4.3. SELECTED PROCESS SUBGOALS FOR COMPUTEC’S ORDER-FILLING PROCESS
CHAPTER FIVE: THE JOB/PERFORMER LEVEL OF PERFORMANCE
FIGURE 5.1. THE HUMAN PERFORMANCE SYSTEM
FIGURE 5.2. HIERARCHY OF PERFORMANCE GOAL SETTING
FIGURE 5.3. FACTORS AFFECTING THE HUMAN PERFORMANCE SYSTEM
CHAPTER SIX: LINKING PERFORMANCE TO STRATEGY
FIGURE 6.1. THE IMPACT OF STRATEGY ON THE COMPONENTS OF AN ORGANIZATION SYSTEM
CHAPTER SEVEN: MOVING FROM ANNUAL PROGRAMS TO SUSTAINED PERFORMANCE IMPROVEMENT
FIGURE 7.1. TOP MANAGEMENT’S ROLE IN A PERFORMANCE IMPROVEMENT EFFORT
CHAPTER EIGHT: DIAGNOSING AND IMPROVING PERFORMANCE: A CASE STUDY
FIGURE 8.1. THE THREE LEVELS PERFORMANCE IMPROVEMENT PROCESS
FIGURE 8.2. PCI RELATIONSHIP MAP
FIGURE 8.3. PCI CLAIM-HANDLING PROCESS
CHAPTER NINE: PROJECT DEFINITION: THE TEN ESSENTIAL STEPS
FIGURE 9.1. PHASE 1 STEPS
FIGURE 9.2. DETERMINANTS OF FULL, PARTIAL, OR NO FACILITATION
FIGURE 9.3. SAMPLE PROCESS
FIGURE 9.4. COMPONENTS OF A STANDARD PRM
FIGURE 9.5. SAMPLE CHART
FIGURE 9.6. SAMPLE CHART WITH PROCESS BOX
FIGURE 9.7. SAMPLE CHART WITH “UPSTREAM” AND “DOWNSTREAM” PROCESSES
FIGURE 9.8. SAMPLE CHART WITH INPUT AND OUTPUT ARROWS
FIGURE 9.9. PRM EXAMPLE 1
FIGURE 9.10. PRM EXAMPLE 2
FIGURE 9.11. SAMPLE GENERAL FRM TEMPLATE
FIGURE 9.12. SAMPLE SPECIFIC FRM TEMPLATE
FIGURE 9.13. FRM EXAMPLE 1
FIGURE 9.14. FRM EXAMPLE 2 (GENERAL FRM)
FIGURE 9.15. FRM EXAMPLE 3 (SPECIFIC FRM)
CHAPTER TEN: PROCESS ANALYSIS AND DESIGN: THE TEN ESSENTIAL STEPS
FIGURE 10.1. THE TEN CORE STEPS OF PHASE 2
FIGURE 10.2. CROSS-FUNCTIONAL PROCESS MAP TEMPLATE
FIGURE 10.3. CROSS-FUNCTIONAL PROCESS MAP LABELED
FIGURE 10.4. CROSS-FUNCTIONAL PROCESS MAP WITH SUBPROCESSES
FIGURE 10.5. CROSS-FUNCTIONAL PROCESS MAP: STEPS
FIGURE 10.6. CROSS-FUNCTIONAL PROCESS MAP: OUTPUT
FIGURE 10.7. CROSS-FUNCTIONAL PROCESS MAP: OUTPUT, CONT.
FIGURE 10.8. MAPPING CONVENTIONS
FIGURE 10.9. EXAMPLE: “SHOULD” DESIGN SPECIFICATIONS
FIGURE 10.10. REMOTE JOB ENTRY
FIGURE 10.11. CENTRALIZED FRONT END
FIGURE 10.12. VENDOR OPTION
FIGURE 10.13. SAMPLE MACRO PROCESS BLOCKS
FIGURE 10.14. MACRO PROCESS BLOCKS WITH OUTPUTS, OUTPUT REQUIREMENTS, AND ASSUMPTIONS
FIGURE 10.15. LINEAR PROCESS MAP WITH OUTPUTS, REQUIREMENTS, AND ASSUMPTIONS
FIGURE 10.16. HIGH-LEVEL VIEW, CROSS-FUNCTIONAL PROCESS MAP OF MAJOR PROCESS STEPS
FIGURE 10.17. EXAMPLE: MEASURES CHAIN
FIGURE 10.18. SAMPLE STEPS FOR COMPLETING THE CROSS-FUNCTIONAL ROLE/RESPONSIBILITY MATRIX
FIGURE 10.19. A MODEL FOR TROUBLESHOOTING OR DESIGNING AN EFFECTIVE HUMAN PERFORMANCE SYSTEM
FIGURE 10.20. EXAMPLE: READINESS AND DISRUPTION MATRIX
FIGURE 10.21. EXAMPLE: READINESS AND DISRUPTION MATRIX HIGHLIGHTING CLUSTERS
FIGURE 10.22. EXAMPLE: COMPLETED IMPLEMENTATION STRATEGY MATRIX
CHAPTER TWELVE: MEASURING PERFORMANCE AND DESIGNING A PERFORMANCE MANAGEMENT SYSTEM
FIGURE 12.1. MEASURING THE THREE LEVELS OF PERFORMANCE WITHIN THE ORGANIZATION SYSTEM
FIGURE 12.2. COMPUTEC PRODUCT DEVELOPMENT AND INTRODUCTION: “SHOULD” PROCESS MAP AND SAMPLE GOALS
FIGURE 12.3. OUTPUT MEASURES
FIGURE 12.4. COMPUTEC PRODUCT DEVELOPMENT AND INTRODUCTION: “SHOULD” PROCESS MAP AND SAMPLE FUNCTIONAL GOALS
FIGURE 12.5. A THREE LEVELS PERFORMANCE MEASUREMENT/MANAGEMENT SYSTEM
FIGURE 12.6. PERFORMANCE MANAGEMENT SYSTEM
FIGURE 12.7. COMPONENTS OF AN ORGANIZATION PERFORMANCE MANAGEMENT SYSTEM
CHAPTER THIRTEEN: MANAGING PROCESSES AND ORGANIZATIONS AS SYSTEMS
FIGURE 13.1. THE RUMMLER-BRACHE PROCESS IMPROVEMENT AND MANAGEMENT METHODOLOGY
FIGURE 13.2. MANAGING THE ORGANIZATION AS A SYSTEM
CHAPTER FOURTEEN: DESIGNING AN ORGANIZATION STRUCTURE THAT WORKS
FIGURE 14.1. ACE COPIERS, INC., ORIGINAL ORGANIZATION CHART
FIGURE 14.2. ACE COPIERS, INC., “IS” RELATIONSHIP MAP AND DISCONNECTS
FIGURE 14.3. ACE COPIERS PRODUCT DEVELOPMENT: PARTIAL “SHOULD” PROCESS MAP
FIGURE 14.4. NEW ACE COPIERS ORGANIZATION CHART
FIGURE 14.5. ACE COPIERS “SHOULD” RELATIONSHIP MAP
CHAPTER FIFTEEN: CREATING A PERFORMANCE-BASED HUMAN RESOURCE DEVELOPMENT FUNCTION
FIGURE 15.1. THE “VACUUM” VIEW OF PERFORMANCE
FIGURE 15.2. TWO APPROACHES TO TRAINING-NEEDS ANALYSIS
FIGURE 15.3. FOUR TYPES OF EVALUATION
FIGURE 15.4. MODEL OF A PERFORMANCE-FOCUSED TRAINING FUNCTION
List of Tables
CHAPTER TWO: THREE LEVELS OF PERFORMANCE: ORGANIZATION, PROCESS, AND JOB/PERFORMER
TABLE 2.1. THE NINE PERFORMANCE VARIABLES
TABLE 2.2. THE NINE PERFORMANCE VARIABLES WITH QUESTIONS
CHAPTER FOUR: THE PROCESS LEVEL OF PERFORMANCE
TABLE 4.1. EXAMPLES OF BUSINESS PROCESSES
TABLE 4.2. SELECTED FUNCTIONAL GOALS BASED ON COMPUTEC ORDER-FILLING PROCESS GOALS
CHAPTER FIVE: THE JOB/PERFORMER LEVEL OF PERFORMANCE
TABLE 5.1. ROLE/RESPONSIBILITY MATRIX FOR FINANCE FUNCTION AND CUSTOMER ORDER PROCESS
CHAPTER SIX: LINKING PERFORMANCE TO STRATEGY
TABLE 6.1. STRATEGY’S POSITION IN THE NINE PERFORMANCE VARIABLES
CHAPTER EIGHT: DIAGNOSING AND IMPROVING PERFORMANCE: A CASE STUDY
TABLE 8.1. PCI ORGANIZATION ANALYSIS AND IMPROVEMENT WORKSHEET
TABLE 8.2. PCI PROCESS ANALYSIS AND IMPROVEMENT WORKSHEET
TABLE 8.3. PCI CLAIMS SUPERVISOR JOB MODEL
TABLE 8.4. PCI JOB ANALYSIS WORKSHEET
TABLE 8.5. PCI PERFORMANCE SYSTEM DESIGN WORKSHEET
CHAPTER NINE: PROJECT DEFINITION: THE TEN ESSENTIAL STEPS
TABLE 9.1. SIGNIFICANCE OF RELATED PROCESSES
TABLE 9.2. PROJECT GOALS EXAMPLE 1
TABLE 9.3. PROJECT GOALS EXAMPLE 2
TABLE 9.4. EXAMPLE OF A PARTIAL PROCESS INVENTORY
TABLE 9.5. EXAMPLE: PROJECT PLAN
CHAPTER TEN: PROCESS ANALYSIS AND DESIGN: THE TEN ESSENTIAL STEPS
TABLE 10.1. EXAMPLE: ORDER FULFILLMENT PROCESS DISCONNECT LIST
TABLE 10.2. OUTPUT SPECIFICATIONS
TABLE 10.3. INPUT SPECIFICATIONS
TABLE 10.4. PROCESS SPECIFICATIONS
TABLE 10.5. “COULD BE” PRIORITIZATION WORKSHEET
TABLE 10.6. EXAMPLE: “COULD BE” PRIORITIZATION WORKSHEET
TABLE 10.7. EXAMPLE: CROSS-FUNCTIONAL ROLE/RESPONSIBILITY MATRIX
TABLE 10.8. EXAMPLE: HUMAN PERFORMANCE SYSTEM CHECKLIST
TABLE 10.9. RECOMMENDATION ANALYSIS WORKSHEET
TABLE 10.10. EXPECTED RESULTS
TABLE 10.11. EXPECTED COSTS
TABLE 10.12. RISKS
TABLE 10.13. IMPLEMENTATION STRATEGY ANALYSIS WORKSHEET
TABLE 10.14. IMPLEMENTATION STRATEGY MATRIX
CHAPTER TWELVE: MEASURING PERFORMANCE AND DESIGNING A PERFORMANCE MANAGEMENT SYSTEM
TABLE 12.1. EXAMPLES OF “SOUND MEASURES”
TABLE 12.2. COMPUTEC PRODUCT DEVELOPMENT AND INTRODUCTION: PERFORMANCE TRACKER
TABLE 12.3. ROLE/RESPONSIBILITY MATRIX FOR THE COMPUTEC PRODUCT DEVELOPMENT AND INTRODUCTION PROCESS
TABLE 12.5. ROLE/RESPONSIBILITY MATRIX FOR THE COMPUTEC MARKETING FUNCTION: NEW PRODUCT DEVELOPMENT AND INTRODUCTION
TABLE 12.6. PORTION OF A JOB MODEL FOR THE COMPUTEC MARKET RESEARCH ANALYST
CHAPTER THIRTEEN: MANAGING PROCESSES AND ORGANIZATIONS AS SYSTEMS
TABLE 13.1. COMPARISON OF THE TRADITIONAL (VERTICAL) AND SYSTEMS (HORIZONTAL) CULTURES
TABLE 13.2. SYSTEMS MANAGEMENT QUESTIONS
CHAPTER FOURTEEN: DESIGNING AN ORGANIZATION STRUCTURE THAT WORKS
TABLE 14.1. ACE COPIERS PRODUCT DEVELOPMENT ROLE/RESPONSIBILITY MATRIX
CHAPTER FIFTEEN: CREATING A PERFORMANCE-BASED HUMAN RESOURCE DEVELOPMENT FUNCTION
TABLE 15.1. TRAINING’S ROLE IN THE NINE PERFORMANCE VARIABLES
Guide
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IMPROVING PERFORMANCE
How to Manage the White Space on the Organization Chart
THIRD EDITION
Geary A. Rummler
Alan P. Brache
Copyright © 2013 by John Wiley & Sons, Inc. All rights reserved.
Jacket design by Jeff Puda.
Published by Jossey-Bass
A Wiley Imprint
One Montgomery Street, Suite 1200, San Francisco, CA 94104-4594—www.josseybass.com
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, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Readers should be aware that Internet Web sites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read.
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Library of Congress Cataloging-in-Publication Data
Rummler, Geary A.
Improving performance : how to manage the white space on the organization chart / Geary A. Rummler, Alan P. Brache. — Updated ed., 3rd ed.
p. cm.
Includes index.
ISBN 978-1-118-14370-4 (cloth); ISBN 978-1-118-22559-2 (ebk.); ISBN 978-1-118-23902-5 (ebk.); ISBN 978-1-118-26367-9 (ebk.)
1. Industrial productivity. 2. Performance. 3. Organizational effectiveness. I. Brache, Alan P., 1950– II. Title.
HD56.R86 2013
658.4'02—dc23
2012030713
LIST OF FIGURES AND TABLES
Figures
1.1. Traditional (Vertical) View of an Organization
1.2. The “Silo” Phenomenon
1.3. Systems (Horizontal) View of an Organization
1.4. An Organization as an Adaptive System
1.5. The Super-System of Computec, Inc.
2.1. The Organization Level of Performance
2.2. The Process Level of Performance
2.3. The Job/Performer Level of Performance
3.1. Layers of Organization Systems in an Automobile Company
3.2. Computec, Inc., Organization Chart
3.3. Relationship Map for Computec, Inc.
4.1. Computec Order Filling: An “IS” Process Map
4.2. Computec Order Filling: A “SHOULD” Process Map
4.3. Selected Process Subgoals for Computec’s Order-Filling Process
5.1. The Human Performance System
5.2. Hierarchy of Performance Goal Setting
5.3. Factors Affecting the Human Performance System
6.1. The Impact of Strategy on the Components of an Organization System
7.1. Top Management’s Role in a Performance Improvement Effort
8.1. The Three Levels Performance Improvement Process
8.2. PCI Relationship Map
8.3. PCI Claim-Handling Process
9.1. Phase 1 Steps
9.2. Determinants of Full, Partial, or No Facilitation
9.3. Sample Process
9.4. Components of a Standard PRM
9.5. Sample Chart
9.6. Sample Chart with Process Box
9.7. Sample Chart with “Upstream” and “Downstream” Processes
9.8. Sample Chart with Input and Output Arrows
9.9. PRM Example 1
9.10. PRM Example 2
9.11. Sample General FRM Template
9.12. Sample Specific FRM Template
9.13. FRM Example 1
9.14. FRM Example 2 (General FRM)
9.15. FRM Example 3 (Specific FRM)
10.1. The Ten Core Steps of Phase 2
10.2. Cross-Functional Process Map Template
10.3. Cross-Functional Process Map Labeled
10.4. Cross-Functional Process Map with Subprocesses
10.5. Cross-Functional Process Map: Steps
10.6. Cross-Functional Process Map: Output
10.7. Cross-Functional Process Map: Output, cont.
10.8. Mapping Conventions
10.9. Example: “SHOULD” Design Specifications
10.10. Remote Job Entry
10.11. Centralized Front End
10.12. Vendor Option
10.13. Sample Macro Process Blocks
10.14. Macro Process Blocks with Outputs, Output Requirements, and Assumptions
10.15. Linear Process Map with Outputs, Requirements, and Assumptions
10.16. High-Level View, Cross-Functional Process Map of Major Process Steps
10.17. Example: Measures Chain
10.18. Sample Steps for Completing the Cross-Functional Role/Responsibility Matrix
10.19. A Model for Troubleshooting or Designing an Effective Human Performance System
10.20. Example: Readiness and Disruption Matrix
10.21. Example: Readiness and Disruption Matrix Highlighting Clusters
10.22. Example: Completed Implementation Strategy Matrix
12.1. Measuring the Three Levels of Performance Within the Organization System
12.2. Computec Product Development and Introduction: “SHOULD” Process Map and Sample Goals
12.3. Output Measures
12.4. Computec Product Development and Introduction: “SHOULD” Process Map and Sample Functional Goals
12.5. A Three Levels Performance Measurement/Management System
12.6. Performance Management System
12.7. Components of an Organization Performance Management System
13.1. The Rummler-Brache Process Improvement and Management Methodology
13.2. Managing the Organization as a System
14.1. Ace Copiers, Inc., Original Organization Chart
14.2. Ace Copiers, Inc., “IS” Relationship Map and Disconnects
14.3. Ace Copiers Product Development: Partial “SHOULD” Process Map
14.4. New Ace Copiers Organization Chart
14.5. Ace Copiers “SHOULD” Relationship Map
15.1. The “Vacuum” View of Performance
15.2. Two Approaches to Training-Needs Analysis
15.3. Four Types of Evaluation
15.4. Model of a Performance-Focused Training Function
Tables
2.1. The Nine Performance Variables
2.2. The Nine Performance Variables with Questions
4.1. Examples of Business Processes
4.2. Selected Functional Goals Based on Computec Order-Filling Process Goals
5.1. Role/Responsibility Matrix for Finance Function and Customer Order Process
6.1. Strategy’s Position in the Nine Performance Variables
8.1. PCI Organization Analysis and Improvement Worksheet
8.2. PCI Process Analysis and Improvement Worksheet
8.3. PCI Claims Supervisor Job Model
8.4. PCI Job Analysis Worksheet
8.5. PCI Performance System Design Worksheet
9.1. Significance of Related Processes
9.2. Project Goals Example 1
9.3. Project Goals Example 2
9.4. Example of a Partial Process Inventory
9.5. Example: Project Plan
10.1. Example: Order Fulfillment Process Disconnect List
10.2. Output Specifications
10.3. Input Specifications
10.4. Process Specifications
10.5. “COULD BE” Prioritization Worksheet
10.6. Example: “COULD BE” Prioritization Worksheet
10.7. Example: Cross-Functional Role/Responsibility Matrix
10.8. Example: Human Performance System Checklist
10.9. Recommendation Analysis Worksheet
10.10. Expected Results
10.11. Expected Costs
10.12. Risks
10.13. Implementation Strategy Analysis Worksheet
10.14. Implementation Strategy Matrix
12.1. Examples of “Sound Measures”
12.2. Computec Product Development and Introduction: Performance Tracker
12.3. Role/Responsibility Matrix for the Computec Product Development and Introduction Process
12.4. Portion of the Computec Marketing Function Model
12.5. Role/Responsibility Matrix for the Computec Marketing Function: New Product Development and Introduction
12.6. Portion of a Job Model for the Computec Market Research Analyst
13.1. Comparison of the Traditional (Vertical) and Systems (Horizontal) Cultures
13.2. Systems Management Questions
14.1. Ace Copiers Product Development Role/Responsibility Matrix
15.1. Training’s Role in the Nine Performance Variables
FOREWORD
Improving Performance: How to Manage the White Space on the Organization Chart was the first book written on the mechanics of process improvement, the nuts and bolts of how you actually do it.
The methodology in the book was so embraced by readers that Rummler and Brache became the godfathers of process improvement. They helped spawn a cottage industry of business process management analysts, software vendors, consultants, authors, and conferences.
Today, there are dizzying numbers of process improvement methodologies and technologies competing with one another. But in the light of day, practically all of them owe their origin to their predecessor, the Rummler-Brache methodology.
The Rummler-Brache approach to process improvement is the gold standard. It’s a systematic, disciplined framework that does more than just isolate process performance. The methodology addresses all three levels of performance: organization, process, and job performer. And it’s all linked to support the strategy and goals of the organization.
Over the years, I’ve been amazed by the cult-like devotion to the methodology that many of its practitioners have demonstrated. Initially, I thought they were all a little too enthusiastic, sort of like Trekkies at a Star Trek convention. However, since I’ve seen Rummler-Brache principles applied, I get it. The passion out there for the methodology is really a passion for what it delivers: hard results.
The authors provide a clear blueprint on how to achieve sustainable, tangible improvements. This third edition of the book reveals the latest enhancements to that blueprint: tools to create project deliverables for an accelerated project.
The book is a classic and worth revisiting, especially in the current competitive climate, when organizations must make the right systemic changes in tighter time frames.
Joe AbergerPresident, PRITCHETT, LP
PREFACE
Managers face an awesome challenge in this competitive and constantly changing environment, and this is not a passing phenomenon. As customer demands, global competition, and regulatory scrutiny have increased, it has become clear that the current instability in our marketplaces is not going away. Change is and will continue to be the only constant.
The call to arms, chronicled in numerous books and articles, is widely understood by American businesspeople. Our concern is not managers’ failure to understand the problem; it is their failure to do anything substantive to address it. We wrote this book because we have a framework and a set of tools that can substantively address the problem. There are plenty of books on management and organization behavior. However, we find that most of them fail to present tools (leaving the reader saying, “I’m a believer, but what do I do tomorrow?”) or they provide tools that deal with only one aspect of a multidimensional need. In our review of management literature, training courses, and consultant services, we have encountered some very valuable theories, hints, and tools. However, we have not come across a single methodology for the improvement of organization performance that is conceptually sound, practical, experience-based, and comprehensive. We immodestly believe that our approach, based on Three Levels of Performance, meets these criteria and, by doing so, provides a blueprint for managing change.
Our second reason for writing this book is our desire to capture our fifty years of combined experience in improving organization performance. We both started in the field of training (before it became human resource development). Like many other people in our position, we were quick to realize that training is only one variable that affects human performance. Early in our careers, we began learning about the environmental and managerial variables that influence performance. We then turned our attention to the impact of organization strategy on performance and developed a technology for documenting, improving, and managing the business processes that bridge the gap between organization strategy and the individual.
With the evolution of Process Management, and more recently, of “managing organizations as systems,” we believe we have a comprehensive approach that addresses the major variables in the system that influence the quality, quantity, and cost of performance. Through the application of Process Management, we have learned that managers (particularly at senior levels) should concentrate as much or more on the flow of products, paper, and information between departments as on the activities within departments. Process Management provides a methodology for managing this white space between the boxes on the organization chart.
Purpose of the Book
The purpose of this book is to explain the underpinnings of our Three Levels framework and to demonstrate the tools through which the framework is applied and by which the white space can be managed. We have written it for performance improvement specialists (who may be professionals in human resource development, industrial engineering, quality, or systems analysis) and for line and staff managers who want to examine a process that can bring about significant performance improvement. We expect that performance improvement specialists will most often constitute the first wave of readers in an organization and that they will recommend all or part of the book to the managers who are their customers. In addition, business and organization behavior professors may find that our approach presents a different perspective.
American management has a tendency to manage by executive summary. A director gets a one-page summary of an issue, a vice president gets a paragraph, and the president gets a three-item list. At a recent conference on improving American manufacturing’s ability to compete in the global market, one conferee criticized a session by saying, “If an idea can’t be summarized in one page, it doesn’t have any merit.” We do not see how U.S. companies will ever beat their global competitors with that view of executive information and analysis.
We are opposed to the “get it to one page” school of management. Managers who are successful over the long haul understand their businesses in detail. As a result, the Three Levels approach has a fair amount of rigor. It is practical, involving a series of straightforward questions and steps. The process has been validated, through application to companies and agencies of all kinds, in all parts of the world. It can even be fun, because teams improve the quality of work life as well as improving productivity and the quality of products and services. But often it is not simple because the challenge is not simple. Any manager or performance improvement specialist who is looking for a quick-fix formula or for the latest program to keep employees stimulated is liable to be disappointed by this book.
Overview of the Chapters
Chapter One contrasts the traditional functional view of the organization (as represented by the organization chart) with the more descriptive and useful systems view. We describe the system components that must be managed to establish an organization that is competitive, adaptive (reactively and proactively), and focused on continuous performance improvement.
The second chapter introduces the Three Levels of Performance and presents the Nine Performance Variables that determine the effectiveness and efficiency of an organization. At each of the Three Levels—the Organization Level, the Process Level, and the Job/Performer Level—this chapter describes the three Performance Needs—Goals, Design, and Management—and shows how they can be used by executives, managers, and analysts.
One of the Three Levels of Performance is explored in each of the next three chapters. Chapter Three provides a set of questions for diagnosing the effectiveness of the Goals, Design, and Management at the Organization Level. It illustrates the use of these questions in a sample company and presents the Relationship Map as a tool for understanding and improving performance at this level.
Chapter Four gives the reader tools for understanding and improving the Goals, Design, and Management of the cross-functional processes through which an organization provides products and services to customers. This chapter continues the examination of the company introduced in Chapter Three and presents the Process Map as a methodology for meeting the needs at this Level of Performance.
Chapter Five uses the sample organization from Chapter Three to explore the role of people in improving organization and process performance. It presents the Human Performance System as a tool for understanding and meeting the Performance Needs (Goals, Design, and Management) of individuals and work teams.
The remaining chapters discuss the application of the systems view of the organization and the Three Levels framework to a variety of performance improvement opportunities faced by most North American corporations today. Chapter Six examines the role of the systems view in ensuring that top management has answered all eleven questions that must be addressed to establish a clear, viable strategy. It goes on to show how the Nine Performance Variables can help in implementing that strategy.
Through four examples, Chapter Seven shows how quality, productivity, cycle time, customer focus, and culture change efforts can fail if they do not address all Three Levels of Performance. It goes on to examine two performance improvement efforts that have benefited from covering all Three Levels.
Chapter Eight provides human resource, industrial engineering, and systems analysts with a comprehensive process for diagnosing organization Performance Needs before prescribing “solutions,” such as training, reorganization, and developing management information systems. A case study illustrates each of the fourteen steps in this performance improvement process.
Chapters Nine and Ten describe the Process Improvement methodology that companies such as AT&T, Caterpillar, GTE, and Motorola have used to improve quality and customer satisfaction and reduce cycle time and costs. Chapter Eleven describes the traps we have seen that lessen the return organizations realize on their investment in process redesign.
Measuring performance and designing a performance management system is the focus of Chapter Twelve. This chapter addresses the “what,” “why,” and “how” of establishing a measurement system that encompasses all Three Levels of Performance. Examples illustrate establishing measures, developing a performance tracking system, and using measures as the basis for planning, feedback, performance improvement, and rewards.
Chapter Thirteen describes how to use measurement as the basis for the continuous management of processes, once they have been redesigned. It then shows how to integrate these Process Management efforts into enterprisewide “managing the organization as a system.” Readers are given a description of how the systems culture differs from the traditional hierarchical culture and a set of questions for diagnosing the effectiveness of the organization system in which they work.
Chapter Fourteen presents a nine-step process for designing an organization structure that supports—rather than inhibits—the efficient delivery of high-quality products and services that meet customer needs. Using Relationship and Process Maps (introduced in Chapters Three and Four), a viable organization structure is developed for a sample company.
Chapter Fifteen draws on our experience working with human resource development professionals and shows how the Three Levels approach can help these professionals make a more substantial contribution to organization performance. It describes how the Three Levels tools can help in needs analysis, training design, and evaluation, and how they can transform the training operation into the organization’s “performance department.”
The final chapter describes a three-step process for getting started on a Three Levels project. It also provides examples of how the Three Levels tools have been unbundled and used to address specific issues and to help develop a customer-focused, participative, low-conflict, accountability-based culture.
How Is This Third Edition Different?
For readers familiar with the previous editions of this book:
Chapters Nine
and
Ten
are new. These fifty-plus pages are packed with useful, proven process improvement project tools.
The remaining chapters have changed only moderately or slightly.
THE AUTHORS
Geary A. Rummler was cofounder of the Rummler-Brache Group (RBG). He received his BA degree, his MBA degree, and his PhD degree from the University of Michigan.
Rummler was a pioneer in the application of instructional and performance technologies to organizations, and he brought this experience to the issue of organization effectiveness. His clients in the private sector included the sales, service, and manufacturing functions of the aircraft, automobile, steel, food, rubber, office equipment, pharmaceutical, telecommunications, chemical, and petroleum industries, as well as the retail banking and airline industries. He also worked with such federal agencies as the Internal Revenue Service, the Social Security Administration, the Office of Housing and Urban Development, the General Accounting Office, and the Department of Transportation. His research and consulting took him to Europe, Japan, Korea, Malaysia, China, and Mexico.
Alan P. Brache is cofounder of the Rummler-Brache Group. His consulting, training, and writing have focused on Process Improvement and Management, which is a methodology for implementing strategy and resolving critical issues through the identification, documentation, analysis, design, measurement, and continuous improvement of business processes. Much of his recent work has involved using Process Improvement and Management as a tool for strategy implementation, designing measurement systems, and installing infrastructures for continuous improvement.
Rummler-Brache is a registered trademark. The Rummler-Brache Group is a consulting and training firm specializing in the design and development of organization performance systems for business and governmental organizations. RBG works with large and medium-sized companies in both the manufacturing and service sectors. Its clients include banking, pharmaceutical, telecommunications, insurance, technology, government, health care, utilities, petrochemical, and consumer products companies. Our firm measures the results of a specific project in terms of quality improvement, cost reduction, and/or cycle time reduction. We measure the success of a client relationship not only in terms of project results but also in terms of the degree to which the organization has institutionalized the RBG methodology and has transformed itself into a process-managed company.
We provide a technology, a set of tools, an experience base, and facilitation. Our methodology has been applied to processes that include product development, order fulfillment, hiring, procurement, manufacturing, sales, financial planning, distribution, and accounting.
RBG believes that while an outside consultant can provide tools, experience, best practices, and perspective, the changes and the results should be owned by the client organization. To achieve that objective, RBG works through internal teams and supplements its consulting with training that ultimately enables its clients to be self-sufficient.
The Rummler-Brache Group can be reached at:
800-992-8849
www.RummlerBrache.com
PART ONEA FRAMEWORK FOR IMPROVING PERFORMANCE
CHAPTER ONEVIEWING ORGANIZATIONS AS SYSTEMS
Adapt or die.
—UNKNOWN
The Traditional (Vertical) View of an Organization
Many managers don’t understand their businesses. Given the recent “back to basics” and “stick to the knitting” trend, they may understand their products and services. They may even understand their customers and their competition. However, they often don’t understand at a sufficient level of detail how their businesses get products developed, made, sold, and distributed. We believe that the primary reason for this lack of understanding is that most managers (and nonmanagers) have a fundamentally flawed view of their organizations.
When we ask a manager to draw a picture of his or her business (be it an entire company, a business unit, or a department), we typically get something that looks like the traditional organization chart shown in Figure 1.1. While it may have more tiers of boxes and different labels, the picture inevitably shows the vertical reporting relationships of a series of functions.
FIGURE 1.1.TRADITIONAL (VERTICAL) VIEW OF AN ORGANIZATION
As a picture of a business, what’s missing from Figure 1.1? First of all, it doesn’t show the customers. Second, we can’t see the products and services we provide to the customers. Third, we get no sense of the work flow through which we develop, produce, and deliver the product or service. Thus, Figure 1.1 doesn’t show what we do, whom we do it for, or how we do it. Other than that, it’s a great picture of a business. But, you may say, an organization chart isn’t supposed to show those things. Fine. Where’s the picture of the business that does show those things?
In small or new organizations, this vertical view is not a major problem because everybody in the organization knows each other and needs to understand other functions. However, as time passes and the organization becomes more complex as the environment changes and technology becomes more complicated, this view of the organization becomes a liability.
The danger lies in the fact that when managers see their organizations vertically and functionally (as in Figure 1.1), they tend to manage them vertically and functionally. More often than not, a manager of several units manages those units on a one-to-one basis. Goals are established for each function independently. Meetings between functions are limited to activity reports.
In this environment, subordinate managers tend to perceive other functions as enemies, rather than as partners in the battle against the competition. “Silos”—tall, thick, windowless structures, like those in Figure 1.2—are built around departments. These silos usually prevent interdepartmental issues from being resolved between peers at low and middle levels. A cross-functional issue around scheduling or accuracy, for example, is escalated to the top of a silo. The manager at that level addresses it with the manager at the top of the other silo. Both managers then communicate the resolution down to the level at which the work gets done.
FIGURE 1.2.THE “SILO” PHENOMENON
The silo culture forces managers to resolve lower-level issues, taking their time away from higher-priority customer and competitor concerns. Individual contributors, who could be resolving these issues, take less responsibility for results and perceive themselves as mere implementers and information providers. This scenario is not even the worst case. Often, function heads are so at odds that cross-functional issues don’t get addressed at all. In this environment, one often hears of things falling between the cracks or disappearing “into a black hole.”
As each function strives to meet its goals, it optimizes (gets better and better at “making its numbers”). However, this functional optimization often contributes to the suboptimization of the organization as a whole. For example, marketing and sales can achieve its goals and become a corporate hero by selling lots of products. If those products can’t be designed or delivered on schedule or at a profit, that’s research and development’s, manufacturing’s, or distribution’s problem; sales did its job. Research and development can look good by designing technically sophisticated products. If they can’t be sold, that’s sales’ problem. If they can’t be made at a profit, that’s manufacturing’s problem. Finally, manufacturing can be a star if it meets its yield and scrap goals. If the proliferation of finished goods sends inventory costs through the roof, that’s the concern of distribution, or marketing, or perhaps finance. In each of these situations, a department excels against traditional measures and, in so doing, hurts the organization as a whole.
In the good old days of a seller’s market, it didn’t matter. A company could introduce products at its own pace, meet only its own internal quality goals, and set prices that guaranteed adequate margins. There were no serious consequences to the evolution of functional silos like those illustrated in the examples. Those days are over. Today’s reality requires most organizations to compete in a buyer’s market. We need a different way to look at, think about, and manage organizations.
The Systems (Horizontal) View of an Organization
A different perspective is represented by the horizontal, or systems, view of an organization, illustrated in Figure 1.3. This high-level picture of a business:
Includes the three ingredients missing from the organization chart depicted in
Figure 1.1
: the customer, the product, and the flow of work
Enables us to see how work actually gets done, which is through processes that cut across functional boundaries
Shows the internal customer-supplier relationships through which products and services are produced
FIGURE 1.3.SYSTEMS (HORIZONTAL) VIEW OF AN ORGANIZATION
In our experience, the greatest opportunities for performance improvement often lie in the functional interfaces—those points at which the baton (for example, “production specs”) is being passed from one department to another. Examples of key interfaces include the passing of new product ideas from marketing to research and development, the handoff of a new product from research and development to manufacturing, and the transfer of customer billing information from sales to finance. Critical interfaces (which occur in the “white space” on an organization chart) are visible in the horizontal view of an organization.
An organization chart has two purposes:
It shows which people have been grouped together for operating efficiency and for human resource development.
It shows reporting relationships.
For these purposes, the organization chart is a valuable administrative convenience. However, it should not be confused with the “what,” “why,” and “how” of the business; all too often, it’s the organization chart, not the business, that’s being managed. Managers’ failure to recognize the horizontal organization explains their most common answer to the question “What do you do?” They say (to refer to Figure 1.1
