Upgrade to Pro — share decks privately, control downloads, hide ads and more …

Improving the Operational Efficiency of the Org...

Improving the Operational Efficiency of the Organization: An Enabling Performing Unit Structure

Dr. Kim W Petersen

March 11, 2024
Tweet

More Decks by Dr. Kim W Petersen

Other Decks in Business

Transcript

  1. Improving Operational Efficiency of the Organization “Developing Capability” 9 Reasons

    Your Organization Should Build Self-Managed Teams 1. Employees Will Develop New Skills 2. Employees Can Try Out New Roles 3. Employees Will Gain Leadership Skills 4. Employees Become Experts 5. Decision-Making Is Improved 6. Employees Become More Motivated 7. Employees Become More Engaged 8. It’s More Efficient 9. It’s More Cost-Effective https://www.personio.com/blog/selfmanagedteams/#:~:text=It's%20More%20Cost%2DEffective,after%20implementing%20self%2Dmanaged%20teams. https://www.betterup.com/blog/self-managed-teams
  2. . “According to the Scrum Guide (2020), Scrum Teams are

    also self-managing, meaning they internally decide who does what, when, and how” Authority Matrix: Four Characteristics of Performing Units
  3. How To Improve the Operational Efficiency of the Organization The

    Three Criterion Dimensions of Unit Effectiveness 1. The unit's productive output (that is, its product or service) meets the standards of quantity, quality, and timeliness of the people who receive, review, or use that output, improve the operational efficiency of the organization. 2. The process of carrying out the work enhances the capability of organization members to work together interdependently in the future, improve the operational efficiency of the organization. 3. The work experiences contribute to the growth and personal well-being of unit members, improve the operational efficiency of the organization.
  4. Effective self-managing units cannot be created simply by: “Exhorting democratic

    ideals” “Tearing down organizational hierarchies” “Instituting one-person, one-vote decision-making processes”
  5. Hackman, J. R. (1986-2). The psychology of self-management in organizations.

    American Psychological Association Certain conditions must be in place for a self-managing unit to have a real chance of achieving a high standing based upon three criterion dimensions discussed previously.
  6. 1. Clear, Engaging Direction 2. An Enabling Performing Unit Structure

    3. A Supportive Organizational Context 4. Available, Expert Coaching 5. Adequate Material Resources Hackman’s Five Conditions That Foster and Support Effective Self-Management Hackman, J. R. (1986-2). The psychology of self-management in organizations. American Psychological Association
  7. Second Condition “An Enabling Performing Unit Structure” • Sent expectations

    regarding the management of performance processes • Composition of the unit • Design of the task
  8. Task Design The first of the process criteria (effort) depends

    significantly on how the work itself is designed Process Criteria of Effectiveness (a) exert sufficient effort to get the task accomplished at acceptable levels of performance (b) bring adequate levels of knowledge and skill to bear on the task work (c) employ task performance strategies that are appropriate to the work and to the setting in which it is being performed (Hackman, 1986) Performers experience the task as meaningful, a state that is fostered when: (a) the task requires use of a variety of relatively high-level skills (b) the task is a whole piece of work with a beginning, end, and readily-discerned outcomes and/or (c) the task has outcomes that are consequential for other people (be they other organization members or external clients). =
  9. Structural Features Certain structural features of performing units that can

    increase the chances that the unit will achieve a high standing on the process criteria. Unit composition • Team size many teams in organizations are far larger than they need to be and, for effectiveness, should be) • Balance between homogeneity and heterogeneity of members’ skills (when people are either too similar to one another or too different from one another, performance problems often develop) • Members’ competence in working cooperatively with other people (some minimum level of social skill is required to accomplish tasks that require coordination among members and to manage the interplay between individual desires and group goals). Sent Expectations About Behavior • Unit members are responsible for regulating their own behavior. • Unit members are obligated to continuously assess the performance situation and to actively plan how they will proceed with the work based on those assessments
  10. 1. Clear, Engaging Direction 2. An Enabling Performing Unit Structure

    3. A Supportive Organizational Context 4. Available, Expert Coaching 5. Adequate Material Resources Hackman’s Five Conditions That Foster and Support Effective Self-Management Hackman, J. R. (1986-2). The psychology of self-management in organizations. American Psychological Association
  11. Conclusion Fostering and Supporting Effective Self-Management by “An Enabling Performing

    Unit Structure,” Can Improve the Operational Efficiency of the Organization
  12. References Conklin, J. (2005).Dialogue mapping: Building shared understanding of wicked

    problems. John Wiley & Sons, Inc.. Connors, R., & Smith, T. (2009). How did that happen? Holding people accountable for results the positive, principled way. Penguin. Grint, K. (2010). Leadership: A very short introduction. OUP Oxford Grint, K. (2010). Wicked problems and clumsy solutions: the role of leadership. In The new public leadership challenge (pp. 169-186). Palgrave Macmillan, London Grint, K., & Jones, O. S. (2022). Leadership: Limits and possibilities. Bloomsbury Publishing. Hackman, J. R. (1986-1). The design of work teams. In J. W. Lorsch (Ed.), Handbook of organizational behavior. Englewood Cliffs, NJ: Prentice-Hall. Hackman, J. R. (1986-2). The psychology of self-management in organizations. American Psychological Association Hackman, J. R..& Walton, R. E. (1986). Leading groups in organizations. In P. S. Goodman (Ed.), Designing effective work groups. San Francisco. Jossey- Bass. Rittel, H. (1972). On the planning crisis: Systems analysis of the 'first and second generations’. Bedriftskonomen, 8, 390-396. Pink, D. H. (2011). Drive: The surprising truth about what motivates us. Penguin. Schwaber, K., & Sutherland, J. (2020). The Scrum Guide.
  13. . Authority Matrix: Four Characteristics of Performing Units Note: the

    horizontal axis of the figure is a continuum reflecting increasing amounts of authority held by unit members relative to managers.
  14. The Most Basic Self-Managing Behaviors That Operationalize Self-Management 1. Personal

    Responsibility: People take personal responsibility for the outcomes of their work and show in their behavior that they feel personally accountable for the results of what they do. 2. Monitor: People monitor their own performance continuously, actively seeking data and feedback to learn how well they are accomplishing their tasks 3. Manage: People manage their own performance, taking corrective action at their own initiative to improve their performance. 4. Seek: When people do not have what they need to perform well, they actively seek from the organization the guidance, help, or resources they need for excellent performance—and they do so assertively and constructively. 5. Help: People take initiatives to help people in other areas improve their performance, thereby strengthening the policies and performance of the organization as a whole. And they make sure that their own responsibilities are being met before reaching out to help others.
  15. Hackman, J. R. (1986-2). The psychology of self-management in organizations.

    American Psychological Association In a self-managing unit…. • Members have responsibility not only for executing the task but also for monitoring and managing their own performance • This type of unit is often seen in what Walton calls the “commitment model.” • Managers set the direction for such units but assign to members full authority to do what needs to be done to get the work accomplished.
  16. “Leadership is both more important and a more demanding undertaking

    in self-managing units than it is in traditional organizations” Hackman, J. R. (1986-2). The psychology of self-management in organizations. American Psychological Association
  17. Sent expectations regarding the management of performance processes Core norms

    that regulate member behavior. To foster effective task performance, norms should, at minimum: (a) provide 'for the efficient regulation of member behavior, thereby making coordinated action possible (b) promote active scanning of the task and situation and proactive planning of group performance strategies.
  18. Group Composition. There should be as few members as possible

    given the work that needs to be done, they should have among them the talents required by the task, and they should be balanced on homogeneity/heterogeneity, that is, members should be neither functional replicas of one another, nor so different that they cannot learn from one another). Homogeneity: the quality or state of being all the same or all of the same kind Heterogeneity: the quality or state of being diverse in character or content
  19. Task Structure The task should be clear, consistent with the

    direction of the group, and high on what Hackman and Oldham (1980) call "motivating potential"--i.e., which members share responsibility and accountability, and which provides many opportunities for the team to learn how well it is doing.
  20. An Enabling Performing Unit Structure Group Structure Ample Effort Motivational

    Structure of the group task Sufficient Knowledge and Skill Group Composition Task Appropriate Performance Strategies Group Norms that regulate member behavior and Foster scanning and planning Process Criteria of Effectiveness
  21. Setting The Expectation 1. FORMING 2. COMMUNICATING 3. ALIGNING 4.

    INSPECTING Connors, R., & Smith, T. (2009). How did that happen? Holding people accountable for results the positive, principled way. Penguin.
  22. Forming Expectations: Expectations Chain List all the people you will

    hold accountable, in one way or another, to help make that happen. Connors, R., & Smith, T. (2009). How did that happen? Holding people accountable for results the positive, principled way. Penguin.
  23. Forming The Expectation Checklist • Framable: To ensure the expectation

    is consistent with the current vision, strategy, and business priorities. • Obtainable: To ensure the expectation is achievable in terms of current resource and capacity constraints all the way through the Expectations Chain. • Repeatable: To ensure that the expectation is portable and can be clearly communicated through the chain. How repeatable did the company make the expectation? • Measurable: To ensure that you can track progress toward achieving the expectation and measure the ultimate fulfillment of the expectation Connors, R., & Smith, T. (2009). How did that happen? Holding people accountable for results the positive, principled way. Penguin.
  24. The Deliberate Leader Self-Test Discover the extent to which you

    may have already made forming expectations a habit. Connors, R., & Smith, T. (2009). How did that happen?: Holding people accountable for results the positive, principled way. Penguin.
  25. Communicating Expectations Connors, R., & Smith, T. (2009). How did

    that happen? Holding people accountable for results the positive, principled way. Penguin. Communicating key expectations with such clarity that people understand what is expected and why it is important for them to follow through and deliver
  26. Communicating Expectations Connors, R., & Smith, T. (2009). How did

    that happen? Holding people accountable for results the positive, principled way . Penguin. The WHY: make the “WHY” Compelling The WHAT: (1)Expectations using the FORM Checklist (2)Boundaries Discussion (Scope) (3)Support Availability The WHEN: By When (date and time)
  27. CRAFTING A COMPELLING “WHY” 1. Tailor the why to your

    specific audience. 2. Make it short, simple, and clear. 3. Be candid, honest, and forthcoming so people believe it is real and genuine and not just the “company line.” 4. Make it a dialogue, not a monologue. 5. Create “the hook” that catches people’s attention and persuades them to “buy in.” 6. Frame it in a strategic context (how the expectation fits into the big picture). Connors, R., & Smith, T. (2009). How did that happen? Holding people accountable for results the positive, principled way. Penguin.
  28. THE MOST COMMON MISTAKES PEOPLE MAKE WHEN COMMUNICATING EXPECTATIONS Barking

    out “marching orders” without making your directions clear enough that people fully understand and accept them. Barking Assuming people need only one explanation in order to understand what you expect them to deliver. Assuming Failing to form an expectation clearly yourself before communicating it to others. Failing Excluding any explanation about “why” you want something done within a specific time frame. Excluding Asking people to do something, but not clearly explaining when you need it done. Asking Failing to describe the resources available to help people do what you want them to do. Failing Issuing such specific instructions about what to do and how to do it, that people hesitate to “own it” themselves and think out of the box to ensure the result Issuing Connors, R., & Smith, T. (2009). How did that happen? Holding people accountable for results the positive, principled way. Penguin
  29. Aligning Expectations Two levels of Alignment: 1. Complete Alignment Level

    2. Complyment Alignment Level Connors, R., & Smith, T. (2009). How did that happen? Holding people accountable for results the positive, principled way. Penguin
  30. Inspecting Expectations THE RIGHT QUESTIONS . . . • Focus

    on the issue, not the person (they do not get personal, and they do not contain sarcasm). • Are designed to help people succeed, not to reveal their failures. • Are candid and designed to help people get to the “real” issues. • Help create an environment where people feel respected, professional, on task, and successful. • Avoid an egocentric emphasis, which draws more attention to the questioner than to the issue at hand • Do not belittle or scold in any way (all issues with individual performance are handled privately) Connors, R., & Smith, T. (2009). How did that happen? Holding people accountable for results the positive, principled way . Penguin
  31. Inspect Expectations • Assess the Condition • Provide Needed Support

    • Promote Learning Connors, R., & Smith, T. (2009). How did that happen? Holding people accountable for results the positive, principled way. Penguin
  32. • Orientated Clear direction energizes people; it orients organization members

    toward common objectives, thereby facilitating coordinated action in pursuing them. • Engagement is enhanced when aspirations have three attributes: 1) Consequential 2) Stretches members’ energy and talent 3) Simultaneously rich in imagery and incomplete in detail • Clear direction energizes people… • Provides a criterion… First Condition: “Clear, Engaging Direction” (Cont.)
  33. The Critical Leadership Functions for a Self-Managing Unit Two types

    of behavior: • monitoring— obtaining and interpreting data about performance conditions and events that might affect them • taking action – to create or maintain favorable performance conditions.
  34. There are two types of functions: monitoring & action-taking For

    each of the five enabling conditions: direction, structure, context, coaching, resources Leader Monitoring and Action Log
  35. Selecting Leaders of Self-Managers There are three qualities that might

    be measured when people are being considered for leadership roles—qualities that probably are not trainable in the short term. #1. Courage #2. Emotional Maturity
  36. Selecting Leaders of Self-Managers #3. Clear and Appropriate Personal Values

    • An internalized commitment to both organizational effectiveness and human well-being. • Leaders who are confused about what they personally value find it difficult to choose among competing options for action. • Although almost any clear set of values can be used as the basis for managing one’s own behavior, one cannot be agnostic about the content of those values in considering how to select leaders of self-managers • Only individuals who genuinely value both collective outcomes and the growth and satisfaction of unit members are likely to invent and implement conditions that promote the two values simultaneously—something that surely is necessary if a self-managing unit is to be effective over the long term.
  37. The FORM Checklist: Communicating the Formed Expectation • Framable: To

    ensure the expectation is consistent with the current vision, strategy, and business priorities. • Obtainable: To ensure the expectation is achievable in terms of current resource and capacity constraints all the way through the Expectations Chain. • Repeatable: To ensure that the expectation is portable and can be clearly communicated through the chain. • Measurable: To ensure that you can track progress toward achieving the expectation and measure the ultimate fulfillment of the expectation
  38. The Boundaries Discussion • Understanding the boundaries up front can

    help everyone avoid unpleasant surprises and costly mistakes. • Making sure that people are not inhibited by boundaries that don’t really exist may be as important as spelling out those that do • People often do not clearly understand existing boundaries, even when you might think there’s no chance of confusion • The boundaries discussion will help build a sense of trust and confidence that the “How” will not jeopardize accomplishing the “What.”
  39. The Support Discussion • The support available to those who

    must deliver on the expectation, another important consideration when it comes to “how” it will get done. • Conducting the support discussion up front made all the difference between routine and spectacular results
  40. Making the “When” Concrete • With the “Why” and the

    “What” clarified, you can set about framing your expectations in terms of time. • You should attach a “By When” to every key expectation; otherwise, people may either approach their work too casually or rush it too much, both of which can lead to disappointing results. • Never assume that people grasp the urgency of a particular expectation. As soon as people hear the words “as quickly as possible,” they will almost invariably end up letting you down • Every key expectation requires a specific timeline
  41. Questions Addressed #1. How would one know if members of

    a performing unit were behaving as self-managers? #2. What factors account for the difference between those self- managing units that perform superbly and those whose performance is abysmal? #3. What conditions foster and support a kind of self-management that will contribute both to personal well-being and to the achievement of collective objectives? #4. What are the critical leadership functions for a self-managing unit?