1st Edition
The Organizational Alignment Handbook A Catalyst for Performance Acceleration
In the same way that a well-defined approach is needed to develop an effective strategic plan, an equally well-designed approach is needed to support the alignment of your organization's structure, management concepts, systems, processes, networks, knowledge nets, training, hiring, and reward systems. Examining top-down, bottom-up, and core planning and execution processes, The Organizational Alignment Handbook: A Catalyst for Performance Acceleration provides a systematic approach for establishing the infrastructure needed to support a successful transformation and make your strategic plan a reality.
Bridging the gap between macro and micro approaches with a single unified theory, the book provides the understanding needed to assess the effectiveness of your organization’s current management system. It explains how to identify potential projects, introduce new practices, plan for resource allocation, and define and recommend decision governance. Identifying the capability constraints you must resolve in order for your company to thrive in an increasingly competitive business environment, the book explains:
- How the organizational master plan fits into alignment activities
- How strategic planning process and outcomes can be made part of the performance plan for individuals
- How to use controllable factors as the foundation for your master plan
- How to develop a set of vision statements that defines how your organization will function in the future
The management skills your organization currently possesses might be effective in today’s environment, but are they the skills needed to meet strategic objectives in the future? This book outlines a step-by-step approach for achieving organization-wide alignment of processes, applications, and systems, and to ensure acceptance of the results by all stakeholders. It includes examples of organizations implementing the strategies discussed as well as a review of the activities you need to follow to minimize the time it takes to reach your performance objectives today and in the future.
Overview
Why Organizational Alignment?
The Organizational Alignment Functional Model
Key Implementation Challenges
Gauging Effectiveness
Now Ask Yourself These Questions:
Harnessing the Energy of Alignment: With Albert ("Butch") Einstein and Jack ("Sundance") Welch
The Concept of Organizational Alignment
Lessons from "Butch" Einstein
Lessons from "Sundance" Welch
Two Lessons from Butch and Sundance
Organizational Alignment Outcomes
Challenges to Implementation
New Sources of Competitive Advantage
Working This New Aligned Way
Focusing the Alignment Strategy
Bose Shows the Way
Alignment Considerations
Approach
Outcomes
Key Implementation Challenges
Gauging Effectiveness
Macro-Alignment/Micro-Alignment and Culture
Change: Key Components
Goals and Values
Results Are What We Are After
Key Implementation Challenges
Gauging Effectiveness
Organizational Alignment Readiness and Culture
Who Is Doing It?
Outcomes
Key Challenges
Organizational Alignment and e-Business Strategy
Approach
Outcomes
The Organizational Alignment Methodology
Typical OAC Application
Organizational Alignment and Organizational Planning
Approach
Outcomes
Organizational Alignment and Organizational Change Management
Phase I. Strategic Planning
Organization’s Master Plan (OMP)
Setting Direction
Defining Expectations (Measurements)
Defining Actions
Approach to Developing a Business Plan
Outline of a Typical Business Plan
Approach to Developing a Strategic Business Plan
Strategic Business Plans versus Strategic Improvement Plans
Developing a Strategic Improvement Plan
Activity 1. Assessing the Organization
Activity 2. Developing Vision Statements for each of the KBDs
Activity 3. Developing a Set of Performance Goals.....
Activity 4. Defining Desired Behaviors
Activity 5. Preparing 3- to 5-Year Improvement Plans for Each of the Vision Statements
Creating the Strategic Plan
Annual Business Plan
Summary
Phase II. Processes and Networks
Defining Major or Core Processes
Process Improvement Rules
Process Improvement Approaches
Major Networks
Organizational Alignment and Knowledge Mapping
Key Processes and Network Implementation Challenges
Summary
Phase III. Organizational Structure Design
Design Phase
The Strategic Perspective
Restructuring Principles
Design Criteria
Realignment Principles and Design Criteria
List of Activities to Help Define the Design
Measurement System
Key Performance Indicators
Restructuring Approach
The Roadmap for Organizational Restructuring
The Alignment Process
Activity 1. Assessment
Communication Maps
Interface Study
Organizational Restructuring Workshop
Activity 2. Analysis
Activity 3. Redesign
The Operations and Tactical Perspective
Purpose of the Perspective
Approach for Designing an Organizational Structure
Option 1. Functional
Option 2. Vertical
Option 3. Bureaucratic
Option 4. Decentralized
Option 5. Product
Option 6. Customer
Option 7. Geography
Option 8. Case Management Network
Option 9. Process-Based Network
Option 10. Front-Back Hybrid
Span of Control and Organizational Structure
What Is the Correct Span of Control?
Balancing Managerial Work Load
Restructuring Challenges
Restructuring Effectiveness
Impact
Activity 4. Documentation
Activity 5. Implementation
Key Implementation Challenges
Summary of Organizational Restructuring
Phase IV. Staffing
The Two Approaches to Solving the Skill
Mix Problem
Defining Skills Requirements
Outsourcing
Present Employees
Management Skills
Summary
Phase V. Rewards and Recognition System Design
Key Objectives
Seven Major Types of R&R
Financial Compensation
Challenges with Commissions
Challenges with Piecework Pay
Challenges with Employee Stock Plans
Challenges with Cash Bonuses and Gain Sharing
Monetary Awards
Personal Public Recognition
Group Public Recognition
Private Recognition
Peer Recognition
Organizational Awards
Implementing the R&R System
Summary
Phase VI. Implementation
Organizational Change Management
Murphy’s Laws Related to Change Management
The Seven Phases of the Change Management Methodology
Phase I—Clarify the Project
Phase II—Announce the Project
Phase III—Conduct the Diagnosis
Phase IV—Develop an Implementation Plan
Phase V—Execute the Plan
Phase VI—Monitor Progress and Problems
Phase VII—Evaluate the Final Results
Change Management Tools
Area Activity Analysis (AAA)
What Is Area Activity Analysis (AAA)?
Organizational Alignment and Communications
Key Implementation Issues
Gauging Effectiveness
The Management Cycle and Alignment
Key Implementation Challenges
Organizational Alignment and Business Performance Management
Outcomes
Gauging Effectiveness
Outsourcing
Key Implementation Challenges
Open-Ended Questions
Epilogue
Appendix B—Some of the 1100 Plus Improvement Tools
Biography
About the Author: H. James Harrington In Amy Zuckerman's book, Tech Trending, Dr. Harrington was referred to as the quintessential tech trender. The New York Times referred to him as having a knack for synthesis and an open mind about packaging his knowledge and experience in new ways ? characteristics that may matter more as prerequisites for new-economy success than technical wizardry. Well-known business management practices author, Tom Peters, stated, I fervently hope that Harrington?s readers will not only benefit from the thoroughness of his effort but will also ?smell? the fundamental nature of the challenge for change that he mounts. William Clinton, past president of the United States, appointed Dr. Harrington to serve as an Ambassador of Good Will. It has been said about him, He writes the books that other consultants use. Harrington Institute was featured on a half-hour TV program, Heartbeat of America, which focuses on outstanding small businesses that make America strong. The host, William Shatner, stated, You [Dr. Harrington] manage an entrepreneurial company that moves America forward. You are obviously successful.Dr. H. James Harrington now serves as the chief executive officer (CEO) for the Harrington Institute and Harrington Middle East. He also serves as the chairman of the board for a number of businesses. Dr. Harrington is recognized as one of the world leaders in applying performance improvement methodologies to business processes. He has an excellent record of coming into an organization, working as its CEO or chief operating officer (COO), resulting in a major improvement in its financial and quality performance.Previous Experience In February 2002 Dr. Harrington retired as the COO of Systemcorp A.L.G., the leading supplier of knowledge management and project management software solutions, whe