PERFORMANCE

EXCELLENCE

AND

ORGANIZATIONAL

CHANGE

CH

APTE

R 1

1

CADORNA SAWIT

CALAWOD BELA-ONG

Organizations contemplating change

must answer some tough questions, such

as:

•Why is the change necessary?

•What will it do to my organization

(department, job)?

•What problems will I encounter in making the

change? and perhaps the most important

one — What’s in it for me?

CHANGESTRATEGIC VS. PROCESS

is broad in scope and stems from strategic objectives, which are generally externally focused and relate to significant customer, market, product/service, or technological opportunities and challenges.

STRATEGIC CHANGE

PROCESS CHANGE

is narrow in scope and deals with the

operations of an organization. An

accumulation of continuously

improving process changes can lead

to a positive and sustainable culture change.

Culture – the set of beliefs and values

shared by the people in an

organization.

Cultural values often seen in mission

and vision statements

Firms pursuing TQ often need cultural

change

EXCELLENCE CULTUREELEMENTS OF A PERFORMANCE

Visionary leadership

Customer Driven

Organizational and

personal learning

Valuing employees and

partners

Agility

Focus on the future

Managing for innovation

Management by fact

Social responsibility

Focus on results and

creating value

Systems perspective

Reaction to competitive

threat to profitable

survival

An opportunity to

improve

Readiness for change

Sound practices and

implementation strategies

Effective organization

Change can be

accomplished, but it is difficult

Imposed change will be resisted

Full cooperation, commitment,

and participation by all levels of

management is essential

Change takes time

You might not get positive

results at first

Change might go in

unintended directions

SENIOR MANAGEMENT

MIDDLE MANAGEMENT

WORKFORCE

Empower

Create a common vision of

excellence

Create new organizational rules

Implement continuous improvement

Develop and retain peak performers

Change is regarded as a short-term “program”

Compelling results are not obtained quickly

Process not driven by focus on customer, connection

to strategic business issues, and support from senior

management

Structural elements block change

Goals set too low

“Command and control” organizational culture

Training not properly addressed

Focus on products, not processes

Little real empowerment is given

Organization too successful and

complacent

Organization fails to address

fundamental questions

Senior management not personally and visibly

committed

Overemphasis on teams for cross-functional

problems

Employees operate under belief that more

data are always desirable

Management fails to recognize that quality

improvement is personal responsibility

Organization does not see itself as

collection of interrelated processes

BEST PRACTICEBUILDING ON

Cycle time analysis

Process value analysis

Process simplification

Strategic planning

Formal supplier certification

programs

BEST PRACTICES:INFRASTRUCTURE DESIGN

LOW PERFORMERS

•process management fundamentals

•customer response

•training and teamwork

•benchmarking competitors

•cost reduction

•rewards for teamwork and quality

MEDIUM PERFORMERS

•use customer input and market research•select suppliers by quality•flexibility and cycle time reduction•compensation tied to quality and teamwork

HIGH PERFORMERS

•self-managed and cross-functional teams•strategic partnerships•benchmarking world-class companies•senior management compensation tied to quality• rapid response

KNOWLEDGEMANAGEMENT

The process of identifying,

capturing, organizing, and

using knowledge assets to

create and sustain

competitive advantage.

Knowledge assets refer to the

accumulated intellectual

resources that an organization

possesses, including information,

ideas, learning, understanding,

memory, insights, cognitive and

technical skills, and capabilities.

Explicit knowledge includes information

stored in documents or other forms of

media.

Tacit knowledge is information that is

formed around intangible factors resulting

from an individual’s experience, and is

personal and content-specific.

Create a “learning organization”

•Planning

•Execution of plans

•Assessment of progress

•Revision of plans based on

assessment findings

Systematic problem solving

Experimentation with new approaches

Learning from their own experiences and history

Learning from the experiences and best practices of others

Transferring knowledge quickly and efficiently throughout the organization

The ability to identify and transfer best practices within the organization

Process: • Identify and collect internal knowledge and best practices

•Share and understand those practices

•Adapt and apply them to new situations and bringing them up to best-practice performance levels.

Committed leadership

Integration with existing initiatives, business strategy, and performance measurement

Process thinking

Disciplined customer and market intelligence gathering

A bottom line orientation

Leadership in the trenches

Training

Continuous reinforcement and rewards

ORGANIZATIONAL CHANGE, LEARNING &

ORGANIZATIONAL THEORY

REASON FOR CHANGE

•Traditional: productivity or

job satisfaction

•TQ: customer satisfaction

SOURCE OF CHANGE

•BOTH: Top Management

TYPE OF CHANGE

•Traditional: limited in scope

and duration

•TQ: continuous improvement

over a long period of time

Unfreeze attitudes and behavior

Have effective leadership

Manage interdependence

Involve the people

Refreeze to make gains permanent