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Managing ChangeManaging Change

Lecture 6Lecture 6Continuous ImprovementContinuous Improvement

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Lecture OutlineLecture Outline

The role of learningThe role of learningValue management Value management The learning organizationThe learning organizationBenefits & disadvantages of Benefits & disadvantages of

continuous improvementcontinuous improvement

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THE ROLE OF LEARNINGTHE ROLE OF LEARNING

Change is constant, ongoing and Change is constant, ongoing and inevitable.inevitable.

Change and learning are inextricably Change and learning are inextricably boundbound

LearningLearning – acquiring new skills, – acquiring new skills, behaviours and attitudes.behaviours and attitudes.

Learning Change

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Continuous ImprovementContinuous Improvement

A process of gradual, ongoing change and A process of gradual, ongoing change and learning that involves everyone in the learning that involves everyone in the organization.organization.

Ongoing process of adjustment & modification Ongoing process of adjustment & modification rather than a series of radical changes.rather than a series of radical changes.

Involves answering 3 questions:Involves answering 3 questions:

- Where are we now?- Where are we now?

- Where do we want to be?- Where do we want to be?

- What do we need to do to get there? - What do we need to do to get there?

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Continuous Improvement Continuous Improvement (cont.)(cont.)

Also known as Also known as Kaizen.Kaizen. Change through continuous improvement is Change through continuous improvement is

brought about by employees of an organization brought about by employees of an organization at all levels, & focuses on their own work at all levels, & focuses on their own work processes and practices.processes and practices.

The key to continuous improvement is that the The key to continuous improvement is that the change is initiated & agreed by a team that is change is initiated & agreed by a team that is designed to increase efficiency & effectiveness designed to increase efficiency & effectiveness & thus increase customer satisfaction.& thus increase customer satisfaction.

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VALUE MANAGEMENTVALUE MANAGEMENT

Not a single method, but a framework within Not a single method, but a framework within which proven methods are systematically brought which proven methods are systematically brought together to identify better value from projects, together to identify better value from projects, products & services.products & services.

Help organizations achieve best performance in Help organizations achieve best performance in their class through a carefully designed & their class through a carefully designed & systematic strategy.systematic strategy.

Links organizational objectives with the Links organizational objectives with the operations that deliver the required business operations that deliver the required business results.results.

Link external influences with performance inside Link external influences with performance inside the organization.the organization.

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Essentials to Implementation of Essentials to Implementation of Value Management ProjectsValue Management Projects

Management commitment to the approach.Management commitment to the approach. Adequate resources in terms of time & Adequate resources in terms of time &

people.people. Teamwork that involves not only staff & Teamwork that involves not only staff &

management but also customers & suppliers.management but also customers & suppliers. Careful planning.Careful planning. The use of techniques such as flowcharting, The use of techniques such as flowcharting,

functional analysis & financial analysis.functional analysis & financial analysis.

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The Value Management The Value Management FrameworkFramework

1.1. Planning phasePlanning phase2.2. Information stageInformation stage3.3. Analysis phaseAnalysis phase4.4. Creative phaseCreative phase5.5. Evaluation phaseEvaluation phase6.6. Reporting phaseReporting phase7.7. Implementation phaseImplementation phase8.8. Follow-up phaseFollow-up phase

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LEARNING ORGANIZATIONLEARNING ORGANIZATION

AuthorAuthor DefinitionDefinition

Senge (1990)Senge (1990) ““Learning organizations are organizations where people Learning organizations are organizations where people continually expand their capacity to create the results continually expand their capacity to create the results they truly desire, where new and expansive patterns of they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to free, and where people are continually learning how to learn together.” (p.3)learn together.” (p.3)

Pedler et al. Pedler et al. (1991)(1991)

“ “A learning company is an organization that facilitates the A learning company is an organization that facilitates the learning of all of its members and continuously learning of all of its members and continuously transforms itself.” (p.1)transforms itself.” (p.1)

Watkins &Watkins &Marsick Marsick

(1993)(1993)

““A learning organization is one that learns continuously and A learning organization is one that learns continuously and transforms itself… it proactively uses learning in an transforms itself… it proactively uses learning in an integrated way to support and catalyze growth for integrated way to support and catalyze growth for individuals, teams, entire organizations, and the individuals, teams, entire organizations, and the institutions and communities with which they are linked” institutions and communities with which they are linked” (p.8)(p.8)

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Senge’s 5 Learning Senge’s 5 Learning Organization DisciplinesOrganization Disciplines

Systems thinkingSystems thinking Personal masteryPersonal mastery Mental modelsMental models Shared visionShared vision Team learningTeam learning

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Roles of Managers in Learning Roles of Managers in Learning OrganizationsOrganizations

Encouraging employees to be open to Encouraging employees to be open to new ideas.new ideas.

Stimulating & encouraging open Stimulating & encouraging open communication.communication.

Understanding how the systems in their Understanding how the systems in their organizations operate.organizations operate.

Helping the staff to form a shared vision Helping the staff to form a shared vision & work together to achieve their goals.& work together to achieve their goals.

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Organizational LearningOrganizational Learning

The way firms build, supplement and The way firms build, supplement and organise knowledge and routines around organise knowledge and routines around their activities and within their cultures. their activities and within their cultures. (Dodgson, 1993)(Dodgson, 1993)

Learning HowLearning How – developing processes – developing processes that transfer & improve skills.that transfer & improve skills.

Learning WhyLearning Why – using diagnostic skills to – using diagnostic skills to look at the reasons why things happen. look at the reasons why things happen.

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BENEFITS of BENEFITS of Continuous ImprovementContinuous Improvement

It is a change that the team can control, It is a change that the team can control, so people feel that they can influence so people feel that they can influence what happens.what happens.

Decisions are made by those who are Decisions are made by those who are directly involved with customers.directly involved with customers.

It can create strong team alliances & a It can create strong team alliances & a sense of purpose.sense of purpose.

It can empower team members & give It can empower team members & give them a strong sense of ownership.them a strong sense of ownership.

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DISADVANTAGES of DISADVANTAGES of Continuous ImprovementContinuous Improvement

It demands a strong commitment from team It demands a strong commitment from team members to working for the good of the members to working for the good of the organization as a whole.organization as a whole.

Team decisions can take longer & be harder Team decisions can take longer & be harder to implement than those of a management to implement than those of a management board, particularly if the team is quite large.board, particularly if the team is quite large.

The success of the team operations depends The success of the team operations depends to some extent on good team leadership.to some extent on good team leadership.

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Additional ReadingsAdditional Readings

http://www.ivm.org.uk/vm_whatis.htmhttp://www.ivm.org.uk/vm_whatis.htm Mohd Fairuz, A.R., Chong, S.C. & Chew, K.W. (2008). Mohd Fairuz, A.R., Chong, S.C. & Chew, K.W. (2008).

Internet usage in learning organisations: Malaysia’s Internet usage in learning organisations: Malaysia’s perspective, perspective, International Journal of Innovation andInternational Journal of Innovation and Learning, Learning, 5(2), 132-154.5(2), 132-154.

Mohd Fairuz, A.R., Chong, S.C. & Chew, K.W. (2008). Mohd Fairuz, A.R., Chong, S.C. & Chew, K.W. (2008). Learning organisation disciplines and internet usage: an Learning organisation disciplines and internet usage: an empirical study from Malaysia, empirical study from Malaysia, International Journal of International Journal of Management and Enterprise Development, Management and Enterprise Development, 5(4), 462-483.5(4), 462-483.

Mohd Fairuz, A.R., Chong, S.C. & Talha, M. (2005). Mohd Fairuz, A.R., Chong, S.C. & Talha, M. (2005). Internet Usage and Learning Organisations: A Study on Internet Usage and Learning Organisations: A Study on MSC Status Companies, MSC Status Companies, International Journal of International Journal of Knowledge, Culture and Change ManagementKnowledge, Culture and Change Management, 5(8), 133-, 5(8), 133-144.144.

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ReferencesReferences

Dodgson, M. (1999). Globalisation. Paper presented at the National Innovation Summit, Melbourne, 9-11 February 2000 [Online]. Available: http://www.ist.gov.au/industry/Framework/body_background_reading.html.Pedler, M., Burgoyne, J. & Boydell, T. (1991). The learning company: a strategy for sustainable development. London: McGraw-Hill.Senge, P.M. (1990). The Fifth Discipline: The art and practice of the Learning Organization. New York: Doubleday.Watkins, K. & Marsick, V., (Eds.). (1993). Sculpting the learning organization: Lessons in the art and science of systematic change. San Francisco: Jossey-Bass.