Rediscovering Value E-Book

Geary A. Rummler

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 253

Veröffentlichungsjahr: 2011

Beschreibung

"To paraphrase a number of philosophers, the major challenge anyexecutive or manager (and especially any CEO) faces is that his orher experience of the reality of the organization is not the sameas the reality itself. How then does an executive: 1) develop amore accurate and complete representation of the organization, 2)identify critical business issues and improvement opportunitiesacross this system, 3) design a way forward, and 4) install thefeedback and measurement mechanisms necessary to ensure theorganizational system delivers the performance and stays on course?This is where this book comes into its own." -- Michael DeNoma president and CEO, Chinatrust Commercial Bank "Every CEO (or executive managing a business) should read andunderstand Rediscovering Value if they want to effectively lead andmanage their company. Leading a company without an understanding ofthe value and resource dimensions and how to manage them is likeflying an airplane without a navigation system. The team at PDL hasdone an unbelievable job of describing the principles of anorganization and how to effectively organize, lead, and manage theenterprise. Our company used PDL's systems approach to planning andmanaging and it was like turning on the lights in a dark room. Ourpeople became process- and work-focused and morale improveddramatically as we moved away from the silo approach of running abusiness. Rediscovering Value is a must-read for anyexecutive." -- Steve Hassenfelt CEO, Granville Capital, Inc. From author of the acclaimed Improving Performance, anexploration of the concept of Value Management and technology,comes the next step resource that introduces the transformationmodel. Rediscovering Value gives a preliminary descriptionof the SOE phase, and covers the dimensions of the model. The bookdissects each phase of the model, and describes what isaccomplished along each dimension, the criteria to reach the nextphase, and the key challenges of each phase (Stabilize, Optimize,Exploit in detail). It lays out the success factors for effectiveprocess design, improvement, and management.

Leseprobe

Contents

List of Figures and Tables

Foreword

Dedication

Acknowledgments

About the Authors

Introduction

Part One: The 3-D Concept

Chapter One: Three Dimensions of an Organization

Some Basic Assumptions About Organizations

The Value Machine

Outline of This Book

Chapter Two: The Value Dimension

Definition of a Process

The Value Creation System

Chapter Three: The Resource Dimension

Silos and Organizational Evolution

Life in the Resource Dimension

Why the Resource Dimension Predominates

The Persistence of Functional Silos

Chapter Four: Managerial Practices in a One-Dimensional Organization

Introduction to Belding

Current Performance Planning System

Current Performance Management System

Performance Management Model

Part Two: The CEO’s Agenda

Chapter Five: Two-Dimension Management

The CEO’s Agenda

Define the Need for Action

Chapter Six: Making the System Visible

The Value Creation Hierarchy

Value Creation Architecture Definition

Chapter Seven: Demonstrating How

The Executive PIP

The Order-to-Cash Process Improvement Project

Chapter Eight: Evolution of a Management System

Management System, Stage I

Pros and Cons of the Stage I Management System

Process Management, Stage II

Chapter Nine: Performance Planned

Performance Planning System

Defining the Roles of Management

The Planning Process

Features of This Planning Process

A Difference in Managerial Behavior

Owens’ Focus in Stage I

Owens’ Approach for Stage II

Chapter Ten: Performance Managed

Performance Managed

The Management Process

Features of This Management Process

Performance Support

The CEO’s Focus In Stage I

The CEO’s Approach in Stage II

The Bottom Line

Chapter Eleven: What It Will Take

What the Leader Must Do

Systemic Changes to Support the 3-D Enterprise

Management Support

Toward 2-D Management

Part Three: A Closer Look at Belding

Chapter Twelve: Belding Case Tools, Stage I

Super-System Map

Cross-Functional Value Creation System Map

Business Process Framework

Value-Resource Detail Chart

Chapter Thirteen: Belding Case Tools, Stage II

Value Creation Architecture Maps

Performance Planned and Managed

Chapter Fourteen: Return to Belding Engineering

Scenario 1

Scenario 2

Scenario 3

Scenario 4

Scenario 5

Scenario 6

The Final Scenario

The Bottom Line

Afterword

Endnotes

Index

Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved.

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Library of Congress Cataloging-in-Publication Data

Rummler, Geary A.

Rediscovering value: leading the 3-D enterprise to sustainable success / Geary A. Rummler, Alan J. Ramias, Cherie L. Wilkins.

p. cm.

Includes bibliographical references and index.

ISBN 978-0-470-19233-7 (cloth)

1. Organizational effectiveness. 2. Industrial management. 3. System analysis. 4. Performance. 5. Value added. I. Ramias, Alan J. II. Wilkins, Cherie L. III. Title.

HD58.9.R86 2011

658.4–dc22

2010045734

LIST OF FIGURES AND TABLES

FiguresFigure 1.1The Four Key Requirements of a BusinessFigure 1.2The Value MachineFigure 2.1The Components of a ProcessFigure 2.2Value Creation SystemFigure 2.3Value Creation System with Customer Service EmphasisFigure 2.4An Organization’s Value DimensionFigure 3.1The Dilbert Reality of Functional SilosFigure 3.2The Two Views of an OrganizationFigure 4.1The Belding Engineering Corporate StructureFigure 4.2Current Belding Management Planning SystemFigure 4.3Belding New Product Development ProcessFigure 4.4Performance Planned and Managed SystemFigure 5.1Owens’ List of Major Problems at BeldingFigure 5.2Owens’ List of Action StepsFigure 6.1The Value Creation HierarchyFigure 6.2Level 1: Enterprise/BusinessFigure 6.3Level 2: Value Creation SystemFigure 6.4Level 3: Processing Sub-SystemsFigure 6.5Level 4: Single ProcessFigure 6.6Level 5: The Performer LevelFigure 7.1Cross-Functional Process MapFigure 9.1Management Domain Chart FormatFigure 9.2Management Planning Calendar FormatFigure 10.1Belding CEO AgendaFigure 10.2Metrics Linked to a DashboardFigure 10.3Belding Tracker SystemFigure 10.4The Sales Manager’s Instrument PanelFigure 10.5Performance Managed Calendar FormatFigure 10.6Human Performance SystemFigure 10.7The Manager’s Role in Performance SupportFigure 11.1Belding CEO AgendaFigure 12.1Belding Super-System MapFigure 12.2Cross-Functional Value Creation System MapFigure 12.3Business Process FrameworkFigure 12.4Value-Resource Detail ChartFigure 13.1Belding Value-Resource MapFigure 13.2“Launched” Processing Sub-System MapFigure 13.3“Job Designed” ProcessFigure 13.4Measures Chain for Belding’s Job Designed ProcessFigure 13.5Performance Planned and Managed HierarchyFigure 13.6Belding Management System ToolsFigure 13.7Belding Performance Planned CalendarFigure 13.8Belding Performance Managed CalendarFigure 13.9Sample Performance Trackers at BeldingFigure 13.10Tracker System and Management CalendarFigure 13.11New Measurement SystemFigure 13.12Sample Tracker with User’s GuideFigure 13.13Troubleshooting Logic DiagramFigure 13.14Sample Meeting AgendaFigure 14.1Scenario 1: BeforeFigure 14.2Rework TrackerFigure 14.3Region One Sales TrackerFigure 14.4Scenario 2: BeforeFigure 14.5Product Delivered TrackerFigure 14.6Opportunity Pipeline TrackerFigure 14.7Belding Sales TrackerFigure 14.8Scenario 3: BeforeFigure 14.9Scenario 3: AfterFigure 14.10Scenario 4: BeforeFigure 14.11First-Level Priority ResetsFigure 14.12Second-Level Priority ResetsFigure 14.13Third-Level Priority ResetsFigure 14.14Scenario 5: BeforeFigure 14.15Belding Change Control Management SystemFigure 14.16Scenario 6: BeforeFigure 14.17Scenario 6: AfterFigure 14.18Final Scenario: BeforeFigure 14.19Revenue and Earnings TrackerFigure 14.20Belding Performance Indicators ModelTablesTable 4.1Function Performance MetricsTable 4.2New Product Development Function GoalsTable 4.3New Product Development Function Goals vs. Actual ResultsTable 8.1Performance Management RoutineTable 9.1Management Planning SequenceTable 10.1Human Performance System Variables vs. Managerial TasksTable 10.2Implementing and Managing the Human Performance SystemTable 13.1Belding Management Domain Matrix (Excerpt)Table 13.2Sample Management Guide with Questions to Ask (Excerpt)

To Geary Rummler, my partner, friend, and wise guide through many years; to my partners at PDL, Cherie Wilkins, and Rick Rummler, whose loyalty and dedication to our team keep me in the game; and to my dear wife, Lory, who keeps my days bright.

—Alan J. Ramias

To Geary, my mentor, partner, and friend, who set me on this path, and to Chip, my husband and silent partner, who walks it all with me.

—Cherie L. Wilkins

FOREWORD

I met Geary Rummler in 1991 while a member of one of several task forces pressed into service at Citibank to pull the bank back from the abyss it was being pulled into during those difficult days. I came to know of RBG (as the firm was called then) from exceptional comments about Geary and his approach in interviews with senior executives from Motorola, GE, and ABB. The interviews were part of an urgent benchmarking exercise we were conducting to determine how successful organizations had survived their life-threatening challenges.

Answering my subsequent phone call for help, Geary pressed a team of three consultants, one of whom was his son Rick, into service two days later. Diagnosis and then the actions to fix the largest mortgage business in the United States were under way within a matter of weeks, and we expanded the use of the tools across the bank over the following eighteen months.

Success there with the tools and approach was followed by success in dealing with performance and strategic challenges at Hutchison Whampoa in Hong Kong, particularly in the retail division as it attempted to move into China.

The thinking of Geary and his partners has continued to evolve and improve over the past two decades. The notions and methods around the 3-D Enterprise presented in this latest work expand on their systemic model of an organization and offer managers and executives a robust approach and toolkit for dealing with complex performance challenges in this extraordinary world in which we all now live.

Improving the performance of an organization is not easy. To paraphrase a number of philosophers, the major challenge any executive or manager (and especially any CEO) faces is that his or her experience of the reality of the organization is not the same as the reality itself. How then does an executive: (1) develop a more accurate and complete representation of the organization; (2) identify critical business issues and improvement opportunities across this system; (3) design a way forward; and (4) install the feedback and measurement mechanisms necessary to ensure the organizational system delivers the performance and stays on course?

This is where this book comes into its own. This approach is not simplification on the near side of complexity (the kind of simplification that Einstein said he would pay nothing for); but rather it’s perhaps closer to simplification on the far side of complexity (that he stated he would pay anything for).

As we have seen in this latest financial crisis, complex systems fail in unpredictable ways. Executives need to rethink the way in which we are managing organizations; giving focus and time to the management of each dimension—resources and value. This balanced approach to management is essential to being able to adapt and succeed in these volatile economic times.

Geary Rummler was the real deal in providing managers tools to improve performance. And, amazingly, across decades of management fads and “one-book wonders,” he remained the real deal up until his untimely death in 2008. I’m thankful that he’s been followed by his partners, Alan Ramias, Cherie Wilkins, and son Rick Rummler.

Michael DeNoma

President and CEO

Chinatrust Bank, Taiwan