Table of Contents
Title Page
Copyright Page
Preface
Preparations Now—Results Some Day
Short-Term Results—Energizer for More
Corporate Improvement Processes—Like Organ Transplants
Multiple Benefits That Are Constantly Expanding
As Timely as Timely Can Be
A Powerful and Well-Tested Methodology
What You’ll Find Ahead
Part One - IMPLEMENTATION CAPABILITY
Chapter 1 - A THOUSAND CURES
Overlooked Opportunity
The Blurred Road Map
Big Gaps and Big Gambles
Being “Right” Is Cold Comfort
Missing in Action: Implementation Capability
Chapter 2 - THE POTENTIAL IS THERE TO RESPOND
Necessity Is the Mother
Zest Unlocks the Floodgates
Wearing the Blindfold
When the Big-Fix Change Methods Hit the Wall
Grassroots Implementation Ability Unlocks the Power
Not a Hurry-Up Tactical Attack
Chapter 3 - START WITH RESULTS, NOT PREPARATIONS
Tactics Atypical
Rapid-Cycle Projects: The Reinforcement of Success
Developing the Capability to Support Large-Scale Changes
Designing a Rapid-Cycle Success: A Disciplined Process
Yin and Yang
Part Two - RAPID RESULTS
Chapter 4 - GAIN RAPID RESULTS ON KEY GOALS
Cash When You Need It
New Recognition for Implementation
Psychological Barriers Inhibit Implementation
The Different Ways to Get Started
Customer Partnering: Rapid Results Across Boundaries
Attaining Hard Results in Soft Areas
Rapid Results in Employee Diversity: The Citigroup Europe Experience
Keeping Connecticut’s Health Workers Healthy
Rapid Results Projects Create an Execution Culture
The Rewards Are Worth the Effort
Chapter 5 - MOBILIZE LARGE NUMBERS OF PEOPLE IN CHANGE
Accelerating Corporate Growth
It Seems So Easy. Why Doesn’t Everyone Do It?
The Work-Out Process: For Mobilizing the Entire Organization
Eagle Star Insurance Turns to Work-Out
Work-Out at Armstrong
Change as Fast as You Want to Make It Happen
Chapter 6 - BUILD YOUR OWN UNIQUE TRANSFORMATION PROCESS
A Radical Departure: Design Each Organization’s Transition Process as a Unique ...
Zurich U.K.—A Case in Point
Strategic Planning Is Continuous
Institutional Modifications to Support the Change Process
Master of Your Fate—Not Victim of Circumstance
Chapter 7 - GEORGIA-PACIFIC TAKES IT ALL THE WAY
How It Began
Expanding the Involvement of People
Five-Year Review: Great Progress but Opportunities to Improve
MIP Brings Synergy to Life
An Amazing Transformation: The Old Town Mill
Ten Years of Progress
Improvement Is Totally Routine
Part Three - USING ENHANCED IMPLEMENTATION CAPABILITY TO EXECUTE LARGE-SCALE CHANGE
Chapter 8 - MAKE ACQUISITIONS AND MERGERS SUCCEED
A Dismal Track Record
Why So Little Success?
Fulfilling the Promise
Developing Acquisition Integration Capability
MeadWestvaco: A Cycle of Success
ArvinMeritor: Putting the Parts Together
Lessons for Large-Scale Changes Within a Company
Conclusion
Chapter 9 - UNLEASH IMPLEMENTATION CAPACITY IN DEVELOPING COUNTRIES
The Bottom Line in Nicaragua—Pigs Are Getting Fatter
Unleashing Leadership Capacity
From Victimhood to Empowerment—View from the Trenches
Turning Leadership Commitment into Action in Eritrea
Migration Across National Boundaries
The Sustainability Challenge
Results Beget Capacity ... and Capacity Begets Results
Chapter 10 - SPARK STRATEGIC MOMENTUM WITH RAPID RESULTS
The Trap of Linear Strategic Planning
Rapid Results Projects Shift the Paradigm
An Electric Utility Faces an Uncertain Future
Electric Distribution: Operational Gains Lead to Strategic Decision Making
Power Generation: Strategic Decision Making Links to Operational Gains
Developmental Strategic Planning in an International Aid Service Provider
A New Paradigm for Strategic Planning
Introducing Strategic Planning into a Customer-Transaction-Driven Business
Chapter 11 - DEVELOP LEADERS THROUGH RESULTS ACHIEVEMENT
Solutions That Miss the Point
Others Have Seen the Power
Building Development into Achievement
Results-Fueled Learning in Formal Development Programs
The Siemens Example
The CEMEX Program
The State of Washington
The Chicken and the Egg in Developing Leaders
Part Four - CONCLUSION
Chapter 12 - CHALLENGE FOR LEADERS:
Step One: Public Commitment to Action and Results
Step Two: Demand Better Results—and Make Certain Your People Produce Them
Step Three: Generate Learning Through Structured Experimentation and Achievement
Behind Every Great Leader ... Is a Great Staff
Blending Short-Term Focus with Long-Term Focus
No Need to Wait
Notes
Acknowledgments
The Authors
Index
Robert H. Schaffer Ronald N. Ashkenas and Associates
Copyright © 2005 by John Wiley & Sons, Inc. All rights reserved.
Published by Jossey-Bass A Wiley Imprint 989 Market Street, San Francisco, CA 94103-1741 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.
Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at 317-572-3986, or fax 317-572-4002.
Jossey-Bass 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
Schaffer, Robert H.
p. cm.
Includes bibliographical references and index.
ISBN-13 978-0-7879-7734-4 (alk. paper) ISBN-10 0-7879-7734-9 (alk. paper)
1. Organizational change—Management. 2. Organizational effectiveness. I. Ashkenas, Ronald N. II. Title.
HD58.8.S298 2005
658.1’6—dc22
2005004546
Preface
This book is addressed to leaders who are impatient with the pace of progress in their organizations. These leaders know they must achieve more—faster. They are unwilling to rationalize that everything will work out OK; instead they are determined to get their organizations performing at a much higher level, executing large-scale changes much more rapidly. If you are one of these leaders, you undoubtedly have been making substantial investments on many fronts—new information systems and automation, R&D, new product development. You may have acquired companies. You have invested energy in creating new views of the business. And you have made many other strategic investments. Yet despite all the progress, you are uneasy that your organization’s pace may not be fast enough to ensure success in the dynamic world of the twenty-first century.
The book describes how the use of rapid results projects can, in a short time, multiply your power to make large-scale changes succeed. These are projects that produce results very quickly and that also introduce new work patterns and enable participants to learn all sorts of lessons about managing change. No matter what kind of shift your organization may need, tens or hundreds of successful rapid-cycle projects occurring simultaneously can deliver tangible results—while at the same time developing the basic capability and confidence to support the whole process.
To understand the approach and to benefit from it, however, you have to take a deep breath and liberate yourself from the layers of management beliefs about what you must do if you want to make major shifts in performance or direction.
Preparations Now—Results Some Day
Virtually everyone who advises managers on how to accelerate the pace of change adheres to the same basic formula: if you want to be rewarded with better performance or more rapid change, you must first lay down the foundations that will enable the changes to take place—later. Install the right IT systems. Recruit better people. Train the people you have. Reorganize. Create the right culture. Develop more innovative products. Develop the right long-term strategies. And straighten out everything else that needs to be straightened out. Once you’ve done it all, results will surely follow. But be prepared to spend lots of time and lots of resources preparing and gearing up. Don’t dare look for gains tomorrow—or even the next day.
Yes, all the experts agree: seeking short-term rewards is a prime sin of management. And managers have been trained to feel slightly ashamed of themselves when they try to attain some immediate benefit. The spirit is captured beautifully in this Request for Proposals our firm received from a potential client: “While the intent [of the project] is to find opportunities to deliver savings next year or even earlier.... Short-term gains that could undermine the long-term organizational capability will not be acceptable” (italics added).
Watch out, this management is saying! We know that if you focus on short-term results they will necessitate moves that are essentially unhealthy. You could be advancing tactical gains at the expense of strategic gains. You could be wasting resources on the wrong efforts. You could be investing in the wrong products or the wrong services. You might be centralizing when you should be decentralizing.
Much better to wait till all the data is assembled, the plans are developed, the systems all speak to each other, the organization is beefed up, and all the other needed improvements are carried out.
Logical! Irrefutable!
Yes, and completely wrong.
Short-Term Results—Energizer for More
Our evidence suggests that the most powerful driver of better performance is better performance itself. That is, if you want to help an organization develop its ability to perform better you can do nothing more effective than help it to experience a tangible success on some of the dimensions it is trying to strengthen.
The process has succeeded in hundreds of organizations. The secret is to turn the “begin-with-preparations-and-wait-patiently-forresults” paradigm upside down and begin at once with results. That means that if you want to enter a completely new market, you start not by doing a market analysis but by making a test probe into that market, right away. If you want to grow faster, you begin not with a study to analyze growth opportunities but by accelerating the growth of one product, or with one customer—now, right away—and do it in a way that strengthens your capacity for larger-scale advance.
The success of this methodology exposes as fiction one of the few universally accepted “truths” of organization management—the notion that a short-term focus is always bad. That old saw is the legacy of too many panicky short-term moves that have damaged companies—like cutting R&D or eliminating customer services. We have discovered that short-term thrusts can be powerfully beneficial if they are executed intelligently and if they are designed as stepping-stones toward major strategic gains. Short-term thrusts are bad only when stupidly conceived or stupidly executed.
This book, reflecting decades of successful experience, extols and glorifies short-term successes—not as an alternative to a long-term strategic perspective but as a vital, though frequently missing, element of corporate progress.
Corporate Improvement Processes—Like Organ Transplants
Everyone knows that in organ transplantation the health of the replacement organ and the skill of the surgeon doing the operation mean nothing unless steps are taken to ensure that the introduced organ will work compatibly with the hundreds of other physical, chemical, and biological systems in the receiving body. Without this compatibility the transplant will fail.
This concept applies equally to the introduction of large-scale organization change and improvement. When a new improvement effort—a new business strategy, a major cost improvement program, or a new technology—is transplanted into the organization, its success depends on the capacity of the organization to establish the hundreds or thousands of new work patterns and communications flows necessary to absorb the new transplant.
Unfortunately, improvement efforts are typically inserted into the body of organizations with little or no consideration for compatibility. If the transplant is seen as a key to improvement, it is installed even though the organization may contain dozens of processes that will not work well with it or that may outright reject it. This top-down, big-fix approach to implanting major change frequently fails because of the lack of absorption capability throughout the organization.
Rapid-cycle projects reverse the process: they achieve quick results in a way that helps participants learn how to mesh new approaches into the broader organization patterns. And they quickly develop the organization’s capacity to absorb all sorts of transplants without generating chaos. They help to eliminate the long lag times and deadly inertia that often impede urgently needed progress. And they engage people in the learning and discovery needed to make change stick. That’s how they open the pathway to larger and more far-reaching changes.
Multiple Benefits That Are Constantly Expanding
By expanding implementation capability at every level, rapid results projects enable the organization to carry out large-scale change quickly and effectively. They can also make a number of other vital contributions:
• They provide a method for translating large-scale conceptual and strategic visions into workable actions. Companies often create bold and ambitious strategic visions, but achieving them seems too complex and risky. So action is delayed. The rapid results approach allows companies to move forward with action and get some benefits quickly in a low-risk fashion no matter how complex the overall goals being pursued.
• They develop powerful leadership skills by providing experience in new modes of achieving results and new modes of collaboration.
• They engage large numbers of people—not just a few experts—in working on improvement and innovation.
• They encourage the testing of new forms of partnership with customers and suppliers, along with new kinds of collaboration across organization boundaries.
As increasing numbers of these rapid-cycle projects are carried out, a go-for-it feeling begins to develop throughout the organization. Out of big, amorphous goals, short-term targets are set. Team accountabilities are specified. Work plans are developed. As projects succeed, participants absorb the learning and move on to more ambitious and sophisticated undertakings. And as implementation capability expands, so does the organization’s capacity to master its strategic direction. In other words, the culture of the enterprise begins to shift—even though the focus is on tangible results and not on culture change.
Some people who are not familiar with the approach have reacted to the description of rapid-cycle projects by saying, “Oh yes, you pluck the low-hanging fruit”—implying that the approach is based on exploiting things that are easy to do. But while we see nothing wrong with accomplishing easy goals, the rapid results process helps people to carve off achievable steps from difficult goals as a step toward achieving those goals. The book describes how that occurs—how, for example, Avery Dennison used the approach to achieve $50 million of new sales within a year and radically modified its growth strategies as a result. Georgia-Pacific achieved many hundreds of millions of dollars of measurable annual improvement, plus carrying out a number of strategic shifts. One oil company reduced operating costs by $250 million, and an insurance company captured $60 million in improvements using the approach.1
No, rapid results projects go way beyond low-hanging fruit.
As Timely as Timely Can Be
We believe that achieving more rapid results and learning from those successes is one of the most critical challenges facing leaders of organizations today. Throughout the industrialized world, many of the familiar pathways to success from the 1980s and 1990s seem unworkable in the twenty-first century. Large numbers of companies throughout the world are struggling. Many more senior managers are engaging in fraud and deception in a desperate effort to succeed. Large numbers of employees and managers at all levels are anxious about their futures. Governments seem less able to stimulate their economies or develop the infrastructure necessary to support economic growth.
Paradoxically, every day that passes sees the power and speed of information technology rapidly expanding. Yet human capabilities remain virtually unchanged. Any approach to change needs to help human organizations break free of human limitations and must be keyed to the speed and excitement of the Internet age. This means change methods that have human scale with Internet speed.
Strongly as we advocate rapid-cycle successes as critical to achieving this accelerated pace, we do not suggest that they take the place of the other key elements—strategy, technology, human resource management. What the rapid-cycle projects do is to help create an environment where all the elements can be brought into play effectively and with mutual reinforcement. It is a mode of change that begins with a result—a result that can be achieved in weeks or months at the most. Each project is used to test innovations and build the capability of individuals and the organization as a whole. And it introduces a sense of speed.
A rapid-cycle success, in short, is an adrenaline-charged change—fast-moving, exciting, energizing, and ultimately transforming—the perfect complement to the age of speed.
A Powerful and Well-Tested Methodology
Unlike most of the literature about change management, this book describes methodologies that have been validated and revalidated in the crucible of real organization change over many years. The authors have devoted most of their professional lives to developing these approaches and using them to help organizations of every size and description to improve performance and speed the pace of change. During the time that the process has taken shape in hundreds of applications, the authors have constantly written about the ideas as they were evolving—in five earlier books and more than 150 articles.2Rapid Results! brings it all together. It captures the essential lessons from the decades of dedicated effort.
The book will show you that you can have your cake and eat it too. It describes how you can attain rapid results with quick paybacks and do it in a way that will develop your fundamental capacity to achieve the longest-term and most far-reaching gains. Yes, the pursuit of immediate gratification, properly conducted, can open the door to long-term success.
How the Book Was Written
This book is a shared undertaking by members of Robert H. Schaffer & Associates. Robert Schaffer and Ronald Ashkenas took the lead in conceiving the book and designing its structure. The associates with the greatest expertise in each topic area, including Schaffer and Ashkenas, were the main authors of the appropriate chapters. These include Suzanne C. Francis, Nadim F. Matta, Matthew K. McCreight, Keith E. Michaelson, Robert A. Neiman, and Harvey A. Thomson. Schaffer did the major share of working with these colleagues to ensure that you will be reading a single book—not a collection of writings—and Ashkenas provided overall editorial guidance.
Many of the case illustrations in the book involved projects in which RHS&A participated as consultants. We have not described our role (or that of other consultants) in the cases because this book emphasizes the method, not the consulting help. Almost all the case illustrations are, with the subject’s consent, identified. We have maintained anonymity where an organization is being criticized unless the information has already been published.
What You’ll Find Ahead
Part One, the first three chapters, lays out the basic concepts about rapid-cycle projects—what they are, how they differ from other improvement processes, and why they possess unique power to stimulate success.
Then Part Two describes how rapid results projects create a strong foundation for carrying out major changes in direction and large-scale advances in operational performance. We show how, by developing the many dimensions of implementation capability in an organization, rapid results projects multiply the return from available resources while expanding overall change capability.
The chapters in Part Three describe how to use the expanded (and continuously expanding) capability that is the product of rapid results projects in implementing major strategic or operational shifts. With examples from both companies and countries, we show how to attack large-scale changes by building on a foundation of confidence and learning generated by many rapid-cycle projects.
And finally, Chapter Twelve describes how senior leaders of organizations, with the help of their staff and consulting resources, can shift their own personal work strategies to fully exploit the opportunities for major return outlined in the book.
July 2005Stamford, Connecticut
ROBERT H. SCHAFFER RONALD N. ASHKENAS
Part One
IMPLEMENTATION CAPABILITY
Strengthening the Weakest Link
Part One sheds a spotlight on the importance of implementation capacity—the ability to make the hundreds or thousands of changes at the grassroots level that must occur for large-scale change to succeed. It describes the power of projects that achieve rapid results and that simultaneously build the capacity of the organization to achieve even more results.
It describes why these projects not only energize and stimulate people at every level but also develop the organization’s fundamental implementation capacity.
1
A THOUSAND CURES
Which One Is Right?
Like a broken record, business authors, journalists, government leaders, and economists continue to warn that the pace of change is accelerating, and that managers need to move faster, get ahead of the curve, be more proactive, reduce cycle times, speed up production. Speed is everything. Speed is winning. Speed is surviving.
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!