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So You Want to Use the Baldrige Criteria?

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Title: So You Want to Use the Baldrige Criteria?


1
So You Want to Use the Baldrige Criteria?
  • Prepared for TNCPE Customers by Dan Jordan
  • 2009/2010 Criteria

2
Using the Baldrige Criteria
  • Organizational Profile (Level 1 Application)
  • Core Values
  • Categories (Level 2 Application)
  • Items and Areas to Address (Level 3 and Level 4
    Applications)

3
Organizational Profile
  • Purpose
  • Provides an overview of your organization
  • Helps to better understand
  • The context in which your organization operates
  • Key requirements for current and future business
    success and sustainability
  • The needs, opportunities and constraints placed
    on your organizations performance management
    system

4
Organizational Profile
  • P.1 Organizational Description
  • Key organizational characteristics
  • Key Relationships

5
Organizational Profile
  • P.1 Organizational Description
  • P.1a Organizational Environment
  • What do you do?
  • Product offerings goods and services offered
  • Who are you? Why do you exist?
  • Culture shared set of attitudes, values
  • Core competencies areas of greatest expertise
  • Workforce
  • Distinguishing traits
  • Requirements
  • Facilities and equipment
  • Regulatory environment health, safety,
    accreditation, certification, and/or registration

6
Organizational Profile
  • P.1 Organizational Description
  • P.1b Organizational Relationships
  • Stockholders (Governance)
  • Customers / stakeholders
  • Grouping or differentiation
  • Requirements
  • Supply chain
  • Suppliers, partners, collaborators
  • Means of communication
  • Role in innovation
  • Supply chain requirements

7
Organizational Profile
  • P.2 Organizational Challenges
  • P.2a Competitive Environment
  • How do you know how you stack up? (Competitors)
  • What factors differentiate you from your
    competitors?
  • Where do you get comparative and competitive data?

8
Organizational Profile
  • P.2 Organizational Challenges
  • P.2b Strategic Context
  • Strategic challenges
  • Strategic advantages
  • P.2c Performance Improvement System
  • Linked to Organizational Learning
  • How do you systematically improve? (Should be
    data based)
  • Linked to assessment of maturity (Look at
    Scoring Guidelines)

9
Strategic Advantages
  • Marketplace benefits exerting a decisive
    influence on an organizations likelihood of
    success
  • Sources of current and future competitive success
  • Can come from
  • Core competencies
  • Strategically important external resources

10
Force Field Examples
Objectives
Strategic Advantages
Strategic Challenges
Benefits
Pressures
Help you achieve your objectives
Hinder your efforts to achieve your objectives
Benefits
Pressures
Benefits
11
Governance
  • System of management and controls exercised in
    the stewardship of your organization
  • Ensures
  • accountability to stakeholders,
  • transparency of operations,
  • fair treatment of all stakeholders
  • Includes the performance evaluation of senior
    leaders and members of the governance board

12
Core Values
  • Visionary Leadership
  • Customer-Driven Excellence
  • Organizational Personal Learning
  • Valuing Workforce Members and Partners
  • Agility
  • Focus on the Future
  • Managing for Innovation
  • Management by Fact
  • Societal Responsibility
  • Focus on Results and Creating Value
  • Systems Perspective

13
Visionary Leadership
  • Set directions
  • Create customer value
  • Create clear and visible values
  • Create high expectations
  • Personal involvement with workforce
  • Inspire, Motivate, Encourage
  • To contribute, develop and learn, be innovative
  • Serve as role models

14
Customer-Driven Excellence
  • Know what contributes value to customers
  • Product service features and characteristics
  • Modes of customer access
  • Look at current and future components
  • How? Market surveys, focus groups, periodicals,
    customers of customers
  • Understand factors that may influence customer
    overall experience (face of the organization)
  • Recovering from defects
  • Features and characteristics that differentiate
    from competitors
  • Directed toward customer retention, loyalty,
    market share gain, and growth

15
Value
  • Perceived worth of a product, service, process,
    asset, or function relative to cost and to
    possible alternatives
  • Relative worth, utility, or importance

16
Organizational Personal Learning
  • Well-executed approach includes sharing
    knowledge via systematic processes
  • Includes continuous improvement and significant
    change
  • Embedded
  • Regular part of daily work
  • Practiced at all levels
  • Results in solving root cause
  • Build and share knowledge
  • Driven by opportunities to effect significant
    meaningful change

17
Organizational Personal Learning
  • Depends on having opportunities for personal
    learning and developing and practicing new skills
  • Directed toward
  • Better products and services
  • Being a more responsive organization
  • Being more adaptive
  • Being more innovative
  • Being more efficient

18
Valuing Workforce Members Partners
  • Valuing people means
  • Committing to engagement
  • Satisfaction
  • Development
  • Well-being
  • Partners (Internal and External)
  • Established to better accomplish overall goals
  • Blending of core competencies or leadership
    capabilities
  • Develop longer term objectives
  • Address key requirements for success
  • Regular communication
  • Approach to evaluate progress
  • Means for adapting to change

19
Engagement
  • Commitment, both emotional and intellectual, to
    accomplishing the work, mission, and vision of
    the organization
  • Engaged workforce find personal meaning and
    motivation in their work and receive positive
    interpersonal and workplace support

20
Agility
  • Capacity for rapid change and flexibility
  • Cycles for introduction of new / improved
    products and services
  • Vital asset cross-trained and empowered workforce

21
Empowered
Giving people the knowledge, authority and
responsibility to make decisions and take actions
to create desired results
22
Focus on the Future
  • Understanding of short- and longer-term factors
    that affect organization and marketplace
  • Requires strong future orientation
  • Requires willingness to make long-term
    commitments to key stakeholders

23
Focus on the Future
  • Included in planning anticipate customer
    expectations, new business opportunities,
    workforce needs, technological development, new
    business models
  • Strategic objectives and resource allocations
    needed to allow for future influences

24
Focus on the Future
  • Includes
  • Developing leaders, workforce, and suppliers
  • Accomplishing effective succession planning
  • Creating opportunities for innovation
  • Anticipating public responsibilities and concerns

25
Managing for Innovation
  • Meaningful change to improve
  • Products,
  • Services,
  • Programs,
  • Processes,
  • Operations, and
  • Business model to create new value for
    stakeholders
  • Part of learning culture
  • Integrated into daily work
  • Supported by performance improvement system
  • Builds on accumulated knowledge of organization
    and its people

26
Innovation
  • Making meaningful change to improve products,
    programs, services, processes or organizational
    effectiveness and to create new value for
    stakeholders
  • Involves the adoption of an idea, process,
    technology, or product that is either new or new
    to its proposed application

27
Management by Fact (1)
  • Measurements
  • Derived from business need and strategy
  • Provide critical data and information about key
    processes, outputs and results
  • Needed for performance management
  • Data should be segmented to facilitate analysis

28
Management by Fact (2)
  • Analysis
  • Extract larger meaning from data and information
  • Uses data to determine trends, projections, and
    cause and effect
  • Supports
  • Planning
  • Review of overall performance
  • Improving operations
  • Accomplishing change management
  • Comparing performance with competitors or best
    practice benchmarks

29
Management by Fact (3)
  • Measures
  • Best represent factors that lead to improved
    customer, operational, financial, and critical
    performance
  • Comprehensive set tied to customer and
    organizational performance requirements
  • Provides clear basis for aligning all processes
    with goals

30
Performance Management
  • Involves consolidation of data from various
    sources asking questions about, and analysis of
    the data and putting the results into practice
  • Continuous and real-time reviews help to identify
    and eliminate problems before they grow.
  • Definition of BPM from Wikipedia

31
Societal Responsibility (1)
  • Stresses
  • Responsibilities to public
  • Ethical behavior
  • The need to practice good citizenship
  • Leaders are role models
  • Protection of health, safety and environment.
    Includes
  • Operations
  • Life cycle of products and services

32
Societal Responsibility (2)
  • Stresses conservation of resources
  • Planning should anticipate adverse impacts from
    products, distribution, transportation, use and
    disposal
  • Local, state, and federal laws and regulations
    treated as opportunities for improvement beyond
    mere compliance

33
Societal Responsibility (3)
  • Good citizenship
  • Leadership and support of publicly important
    purposes
  • Examples
  • Improve education and healthcare in community
  • Pursue environmental excellence
  • Practice resource conservation
  • Perform community service
  • Improve business and industry practices
  • Share nonproprietary information
  • Influences other organizations to partner for
    these purposes

34
Ethical Behavior
  • How an organization ensures that all decisions,
    actions, and stakeholder interactions conform to
    moral and professional principles
  • Principles distinguish right from wrong

35
Focus on Results and Creating Value
  • Results used to create and balance value for key
    stakeholders
  • Builds loyalty
  • Contributes to growing the economy
  • Strategy explicitly should include key
    stakeholder requirements
  • Use a balanced composite of leading and lagging
    performance measures

36
What is Valued and Measured
Undesired
Desired
3
For Customer
P r i o r i t i e s
2
1
Product/Service Attributes Product
performance Customer specs
P r o d u c t
Customer Undesired Outcomes Complaints Lost orders
Customer Desired Outcomes Value add (Loyalty,
Referrals) Cust Satisfaction
4
Process Characteristics Customer
Perspective Delivery reliability Accessibility
Process
Outcome
Producer Desired Outcomes EFO Market share Sales
Producer Undesired Outcomes to Avoid Waste Loss
of customers Financial loss High turnover
Product Attributes Producer Perspective Cost to
produce Meets Technical specifications Ease of
distribution
8
Process Characteristics Producers
Perspective Variability Productivity First
Pass NPV New products
For Producer
7
6
5
How
What
Why
Balance Your Balanced Scorecard Robin Lawton,
Quality Progress, March, 2002. pp.66 - 71
37
Systems Perspective (1)
  • Successful management of overall performance
    requires synthesis, alignment, and integration

38
Systems Perspective (2)
  • Synthesis
  • Looking at the organization as a whole, building
    on key business requirements including core
    competencies, strategic objectives, actions
    plans, and work systems

39
Systems Perspective (3)
  • Alignment
  • Key linkages between key processes
  • Leadership
  • Planning
  • Customer Focus
  • Information Management
  • Workforce Focus
  • Process Management
  • Results

40
Systems Perspective (4)
  • Integration
  • Individual components of performance management
    system operate in a fully interconnected manner
    and deliver anticipated results

41
Categories
  • 1 - Leadership
  • 2 - Strategic Planning
  • 3 - Customer Focus
  • 4 - Information and Knowledge Management
  • 5 - Human Resource Focus
  • 6 - Process Management
  • 7 - Results

42
Items (1)
  • 1.1 Senior Leadership
  • 1.2 Governance and Societal Responsibility
  • 2.1 Strategy Development
  • 2.2 Strategy Deployment
  • 3.1 Customer Engagement
  • 3.2 Voice of the Customer
  • 4.1 Measurement, Analysis, and Improvement of
    Organizational Performance
  • 4.2 Management of Information, Knowledge and
    Information Technology

43
Items (2)
  • 5.1 Workforce Engagement
  • 5.2 Workforce Environment
  • 6.1 Work Systems
  • 6.2 Work Processes
  • 7.1 Product and Service Outcomes
  • 7.2 Customer-Focused Outcomes
  • 7.3 Financial and Market Outcomes
  • 7.4 Workforce-Focused Outcomes
  • 7.5 Process Effectiveness Outcomes
  • 7.6 Leadership Outcomes

44
1 - Leadership
  • Senior leaders personal action guide and sustain
    the organization
  • Organizations governance
  • Organization addresses ethical, legal, and
    societal responsibilities

45
1.1 Senior Leadership
  • For the organization
  • Guide
  • Sustain
  • Communication with workforce
  • What are you communicating?
  • How are you communicating?
  • Encourage high performance

46
High-performance Work - 1
  • Work processes used to
  • Systematically pursue ever-higher levels of
    overall performance (organizational and personal)
  • Includes quality, productivity, innovation rate,
    cycle time performance
  • Focuses on workforce engagement

47
High-performance Work - 2
  • May include empowerment of people (self-directed
    responsibility)
  • Individual and organizational skill building and
    learning
  • Learning from other organizations
  • Flexibility in job design and work assignments
  • Seeks to align or integrate organization
    structure, core competencies, work, jobs,
    workforce development and performance management.

48
1.2 - Governance and Societal Responsibility
  • Governance System
  • Responsibilities to public
  • Ensure ethical behavior
  • Practice good citizenship

49
Guide
  • What does guide mean?
  • Direct, or influence usually to a particular end
  • What do you have to have in order to guide?
  • Vision, Road map
  • Share it
  • Make it real.

50
Sustain
  • Ability to address business needs
  • Agility and strategic management to prepare for
    the future
  • Considers
  • Workforce capability (knowledge, skills,
    abilities and competencies)
  • Workforce capacity (Ability to ensure sufficient
    staffing levels)
  • Core competencies (areas of greatest expertise)
  • Work systems (how work of the organization is
    accomplished)
  • Resource availability Facilities
  • Technology Equipment
  • Knowledge

51
Governance
  • Stewardship of the organization
  • Ensures
  • Accountability to owners/shareholders
  • Transparency of operations
  • Fair treatment of all stakeholders

52
Responsibilities to the Public
  • Stress conservation of resources
  • Planning should anticipate adverse impacts from
    products, distribution, transportation, use and
    disposal
  • Local, state, and federal laws and regulations
    treated as opportunities for improvement beyond
    mere compliance

53
Good Citizenship
  • Leadership and support of publicly important
    purposes
  • Examples
  • Improve education and healthcare in community
  • Pursue environmental excellence
  • Practice resource conservation
  • Perform community service
  • Improve business and industry practices
  • Share nonproprietary information
  • Influences other organizations to partner for
    these purposes

54
Legal Responsibility
  • Compliance to all local, state, and federal laws
    and regulatory requirements
  • Treat requirements as opportunities for
    improvement beyond compliance

55
Societal Responsibility
  • Planning should anticipate adverse impacts from
    products, distribution, transportation, use and
    disposal
  • Leadership and support of publicly important
    purposes, e.g.
  • Improve education and healthcare in community
  • Pursue environmental excellence
  • Practice resource conservation
  • Perform community service
  • Improve business and industry practices
  • Share nonproprietary information
  • Influences other organizations to partner for
    these purposes.

56
2 Strategic Planning
  • Three key aspects of organizational excellence
    important to strategic planning
  • Customer-driven quality is a strategic view of
    quality
  • Operational performance improvements and
    innovation short- and longer-term productivity
  • Organizational and personal learning alignment
    of work processes and learning initiatives

57
2 Strategic Planning
  • A well crafted strategic plan provides a roadmap
    for success and the framework for clear
    communication of what is important

58
2 Strategic Planning
  • How the organization develops strategic
    objectives and action plans (Does not imply the
    need for formal planning systems or specific
    planning cycles)
  • How strategic objectives and action plans are
    deployed
  • How strategic objectives and action plans are
    changed
  • How progress is measured.

59
2.1 Strategy Development
  • Process for developing strategic plan
  • Determine core competencies, strategic
    challenges and strategic advantages
  • Establish strategy and strategic objectives
  • Summary of key strategic objectives and related
    goals

60
Core Competencies
  • Areas of greatest expertise
  • Strategically important capabilities that provide
    an advantage in market-place or service
    environment
  • Frequently challenging for competitors or
    suppliers to imitate

61
Strategic Challenges
  • Pressures that are an unmistakable influence on
    an organizations likelihood of future success
  • External
  • Customer or market needs or expectations
  • Product, service, or technological changes
  • Financial, societal, and other risks or needs
  • Internal
  • Organizational capabilities
  • Human and other resources

62
Strategic Advantages
  • Marketplace benefits exerting an unmistakable
    influence on an organizations likelihood of
    success
  • Sources of current and future competitive success
  • Can come from
  • Core competencies
  • Strategically important external resources

63
Force Field Examples
Objectives
Strategic Advantages
Strategic Challenges
Benefits
Pressures
Help you achieve your objectives
Hinder your efforts to achieve your objectives
Benefits
Pressures
Benefits
64
Goals
  • Performance level
  • Short- and longer-term
  • Ends that guide actions
  • Quantitative are called targets
  • Stretch goals refer to major or breakthrough
    improvements

65
Strategic Objectives
  • Responses to address major change or improvement,
    competitiveness and business advantages
  • Focused on
  • External and internal issues,
  • Significant customer, market, product, service,
    or technological opportunities and challenges
  • Broadly what an organization must achieve to
    remain or become competitive and ensure long-term
    sustainability.

66
2.2 Strategy Deployment
  • Convert strategic objectives into action plans
  • Summarize action plans and key related
    performance measures or indicators
  • Project organizations future performance
    relative to comparisons

67
Action Plan
  • Include details of resource commitments and time
    horizons for accomplishment
  • Used in deploying strategic objectives and
    creating organization-wide understanding
  • Includes creating aligned measures for all
    departments and units

68
Summarize Action Plans and Key Performance
Measures
  • What do you have to have in place to respond to
    this?
  • Project Management Plan
  • Steps to achieve (activities)
  • Means of measuring progress
  • On activities
  • On results
  • Goals

69
Projections and Comparisons
  • Intended to improve organizations ability to
  • Understand and track changing, competitive
    performance factors
  • Enable organization to compare rate of
    improvement and change relative to competitors
  • Key diagnostic management tool

70
Considerations
  • What must you consider when defining key
    performance measures for action plans in order to
    make key comparisons?
  • They are related to goals
  • They are related to measures of importance to
    customers and other key stakeholders

71
3 Customer Focus
  • How organization engages customers
  • How you build a customer-focused culture
  • How you listen to the voice of the customer
  • How you use information to improve and identify
    opportunities for innovation

72
Voice of the Customer
  • Process for capturing customer-related
    information
  • Requirements
  • Expectations
  • Desires
  • Includes gathering and integrating customer data
    (affecting purchasing decisions)
  • Surveys
  • Focus groups
  • Warranty data
  • Complaints

73
Innovation
Making meaningful change to improve products,
programs, services, processes or organizational
effectiveness and to create new value for
stakeholders Involves the adoption of an idea,
process, technology, or product that is either
new or new to its proposed application
74
3.1 Customer Engagement
  • Identify and design products to meet customer and
    market
  • Requirements
  • Expectations
  • Define processes to support use of your products
    and provide access the organization
  • Create a customer-focused culture

75
Customer Engagement
  • Customers commitment to your brand and product
    offerings
  • Based on your ability to serve customers needs
    and build relationships
  • Includes customers
  • Loyalty
  • Retention
  • Willingness to do business
  • Willingness to refer others to you

76
3.2 Voice of the Customer
Define process requirements
  • Get information you can use (Listen)
  • Help manage key product, service and business
    processes
  • Help determine cost and revenue implications for
    setting improvement goals and priorities for
    change
  • Obtain customer satisfaction and dissatisfaction
    data
  • Determine for customers and markets
  • Requirements
  • Expectations

Whats it worth?
77
Customer Satisfaction and Dissatisfaction
  • Satisfaction
  • Requirements
  • Needs
  • Expectations
  • Preferences
  • Dissatisfaction
  • Complaints
  • Win/loss analysis

78
4 Measurement, Analysis, and Knowledge
Management
  • Measurement
  • Numerical information that quantifies outcomes
  • Analysis
  • Examination of facts and data to provide a basis
    for effective decisions
  • Knowledge
  • Accumulated intellectual resources of the
    organization (what you know and what you have
    learned)

79
4 Measurement, Analysis, and Knowledge
Management
  • Data, information and knowledge assets
  • Select
  • Gather
  • Analyze
  • Manage
  • Improve
  • Review performance
  • Use the review to improve performance
  • Manage information technology.

80
4.1 Measurement, Analysis, and Improvement of
Organizational Performance
  • Measure performance
  • Are you measuring the right things?
  • Aligned with mission, strategy, values, and
    behavior
  • Are you measuring the right things right?
  • Demonstrate improvement
  • So what?
  • Numerically define the meaning of success

81
4.1 Measurement, Analysis, and Improvement of
Organizational Performance
  • Examine facts and data to provide a basis for
    effective decisions
  • Involves gaining a deeper understanding of data
    and information
  • Used to support
  • Evaluation
  • Decision making
  • Improvement
  • Innovation

82
Types of Analyses (Examples)
  • Correlate product and service improvements with
    key customer indicators (satisfaction, retention,
    market share)
  • Financial benefits derived from improvements in
    workforce safety, absenteeism and turnover
  • Relationships among product and service
    performance indicators and financial indicators
    such as operating costs, revenues, asset
    utilization, and value added per employee.

83
4.1 Measurement, Analysis, and Improvement of
Organizational Performance
  • Regular review of organizational performance
    against an objective or objectives
  • Internal
  • Comparative data
  • Best practices and performance from
    benchmarking
  • Translate review findings into priorities for
    continuous and breakthrough improvement
  • Using a systematic, fact-based evaluation and
    improvement process (Plan, Do, Check, Act or
    similar)
  • Involves sharing opportunities with
  • Workforce
  • Suppliers
  • Collaborators
  • Partners.

84
4.2 Management of Information, Knowledge, and
Information Technology
  • Right information or is it just data?
  • Quality of information
  • Accurate
  • Integrity
  • Timely
  • Security and Confidentiality
  • Availability/accessible to the right resources
  • Workforce
  • Suppliers
  • Partners
  • Collaborators
  • Customers

85
4.2 Management of Information, Knowledge, and
Information Technology
  • Organizational knowledge that is needed to
  • Do the work
  • Improve processes, products, services
  • Keep current with changing business needs and
    directions
  • Develop innovative solutions
  • Collection of what you know and what you have
    learned as an organization

86
4.2 Management of Information, Knowledge, and
Information Technology
  • Collection and transfer of knowledge between
  • Workforce
  • Customers
  • Suppliers
  • Partners
  • Collaborators
  • Identification and sharing of best practices
  • Information for strategic planning.

87
4.2 Management of Information, Knowledge, and
Information Technology
  • Software
  • Value add
  • Ease of use
  • Integration
  • Infrastructure
  • Hardware
  • Reliability
  • Security
  • Ease of use
  • Connectivity
  • Availability
  • Reliability
  • Security

88
5 Workforce Focus
  • Addresses key workforce practices
  • Objective is to utilize workforce potential
    aligned with
  • Overall mission
  • Strategy
  • Action plans
  • How do you
  • Engage the workforce
  • Manage the workforce (work/job design)
  • Develop the workforce (training, education,
    experience)

89
5 Workforce Focus
  • How do you assess
  • Workforce capability
  • Workforce capacity
  • How do you build workforce environment conducive
    to high performance.

90
High-performance Work - 1
  • Work processes used to
  • Systematically pursue ever-higher levels of
    overall performance (organizational and personal)
  • Includes quality, productivity, innovation rate,
    cycle time performance
  • Focuses on workforce engagement

91
High-performance Work - 2
  • May include empowerment of people (self-directed
    responsibility)
  • Individual and organizational skill building and
    learning
  • Learning from other organizations
  • Flexibility in job design and work assignments
  • Seeks to align or integrate organization
    structure, core competencies, work, jobs,
    workforce development and performance management.

92
5.1Workforce Engagement (1)
  • How do you achieve high performance by
  • Engaging your workforce
  • Compensating your workforce
  • Rewarding your workforce
  • How do you develop your workforce, including
    leaders, to achieve high performance

93
5.1 - Workforce Engagement (2)
  • How do you assess to what extent the workforce is
    committed to the organization (engaged)
  • How do you use the results of the assessment to
    achieve higher performance
  • Relationship of assessment findings to key
    business results

94
5.2 Workforce Environment
  • Management of workforce capability
  • Management of workforce capacity
  • How organization maintains a safe, secure and
    supportive work climate.

95
Workforce Engagement
  • Commitment of the workforce (emotional and
    intellectual) to accomplishing the work, mission
    and vision
  • Engaged workers
  • Find personal meaning and motivation in the work
  • Receive positive interpersonal and workplace
    support
  • Key Factors
  • Training and career development
  • Effective recognition and reward systems
  • Family friendliness.

96
Workforce Capability
  • Ability to accomplish work processes through
  • Knowledge
  • Skills
  • Abilities
  • Competencies
  • Capability may include ability to
  • Build and sustain relationships with customers
  • Innovate and transition to new technologies
  • Develop new products, services and work processes
  • Meet changing business, market and regulatory
    demands.

97
Workforce Capacity
  • Ability to ensure sufficient staffing levels to
    execute work processes and successfully deliver
    products and services
  • Includes ability to meet seasonal and varying
    demand levels

98
High-performance Work - 1
  • Work processes used to
  • Systematically pursue ever-higher levels of
    overall performance (organizational and personal)
  • Includes quality, productivity, innovation rate,
    cycle time performance
  • Focuses on workforce engagement

99
High-performance Work - 2
  • May include empowerment of people (self-directed
    responsibility)
  • Individual and organizational skill building and
    learning
  • Learning from other organizations
  • Flexibility in job design and work assignments
  • Seeks to align or integrate organization
    structure, core competencies, work, jobs,
    workforce development and performance management.

100
Empowered
Giving people the knowledge, authority and
responsibility to make decisions and take actions
to create desired results
101
6 Process Management
  • Work systems design and implementation
  • Key process design, management and improvement
  • Readiness for emergencies.

For work systems to deliver customer value and
achieve organizational success and sustainability
102
6.1 Work Systems
  • How you design work systems
  • How you determine key processes
  • For what end?
  • Deliver customer value
  • Prepare for potential emergencies
  • Achieve organizational success
  • Achieve organizational sustainability.

103
6.2 Work Processes
Includes support processes
  • For work processes, how you
  • Design key work processes
  • Implement or put into place key work processes to
    meet design requirements
  • Manage or operate day-to-day to ensure
    requirements are met
  • Incorporation of input from customers, suppliers,
    partners, and collaborators
  • Key measures used
  • Improve key work processes
  • Better performance
  • Reduced variability
  • Share learnings

104
Work Systems
  • How the work of organization is accomplished
  • Involves (Supply Chain)
  • Workforce
  • Key suppliers and partners
  • Contractors
  • Collaborators
  • Blend the internal work processes of the
    organization with those resources outside the
    organization to develop, produce, and deliver
    products

105
7 Results (1)
  • Results indicators can be leading and/or lagging
  • Lagging indicators focus on the past. (Financial
    measures are most familiar)
  • Leading indicators can predict the outcome of
    lagging indicators
  • Example Process performance measures
    (Temperature, throughput, cycle time) can predict
    the product outcome (specification,
    characteristics, etc.)
  • Knowing which indicators are leading and which
    are lagging can help an organization analyze
    cause and effect relationships
  • Example Relating your workforce engagement
    findings to key business results (cause and
    effect)

106
7 Results (2)
  • Performance and improvement in all key areas
  • Product and service outcomes
  • Customer-focused outcomes
  • Financial and market outcomes
  • Workforce-focused outcomes
  • Process-effectiveness outcomes
  • Leadership outcomes
  • Examined relative to competitors and/or other
    organizations providing similar products or
    services

107
7.1 Product and Service Outcomes
  • Key product, program and service features
  • Information gathered from customers using
    processes defined in Item 3.1 and 3.2
  • Measures address factors that affect customer
    preference usually noted in Organizational
    Profile (P.1)
  • Segmentation by
  • Product and service types and groups
  • Customer groups
  • Market segments
  • Appropriate comparative data.

108
7.2 Customer-Focused Outcomes (1)
  • Customer Satisfaction and Dissatisfaction
  • Information gathered from customers using
    processes defined in Item 3.2
  • Data could include
  • Retention, gains, and customer losses
  • Complaints and complaint management
  • Warranty claims
  • Customer-perceived value based on quality and
    price
  • Customer assessment of access and ease of use
  • Awards and ratings
  • Recognition from customers

109
7.2 Customer-Focused Outcomes (2)
  • Segmentation by
  • Product and service types and groups
  • Customer groups
  • Market segments
  • Appropriate comparative data

110
7.3 Financial and Market Outcomes (1)
  • Aim is to understand your financial
    sustainability and marketplace challenges and
    opportunities
  • Measures are those usually tracked by senior
    leaders and reported in 4.1 and financial
    management approaches described in 2.2

111
7.3 Financial and Market Outcomes (2)
  • Aggregate measures on financial return might
    include
  • Return on investment
  • Operating margins
  • Profitability
  • Measures of financial viability might include
  • Liquidity
  • Debt-to-equity ratio
  • Days cash on hand
  • Asset utilization
  • Cash flow
  • Segmentation by customer or market segments
  • Appropriate comparative data.

112
7.4 Workforce-Focused Outcomes (1)
  • Aim is to demonstrate how well you have been
    creating and maintaining a productive, engaging,
    and caring work environment
  • Results address
  • Processes described in Category 5
  • Key work process needs described in Category 6
  • Human resource plans described in Item 2.2

113
7.4 Workforce-Focused Outcomes (2)
  • Measures for workforce engagement and
    satisfaction might include
  • Improvement in local decision making
  • Organizational culture (e.g. extent and success
    of self-direction)
  • Workforce and leader development (effectiveness,
    not just extent)
  • Outcome measures might be
  • Increased workforce retention resulting from
    establishing a peer recognition program, or
  • The number of promotions resulting from
    leadership development program
  • Both reflect cause and effect

114
7.4 Workforce-Focused Outcomes (3)
  • Generic factors might include
  • Safety
  • Absenteeism
  • Turnover
  • Satisfaction
  • Complaints (grievances)
  • Local or regional comparisons appropriate

115
7.4 Workforce-Focused Outcomes (4)
  • Organization-specific factors
  • Extent of training, re-training, or
    cross-training to meet capability and capacity
    needs
  • Extent of self-direction
  • Extent of volunteer involvement in process
    activities

116
7.5 Process Effectiveness Outcomes (1)
  • Aim is to achieve work system and work process
    effectiveness and efficiency
  • Results address key operational requirements
    presented in Item 6.1 and 6.2
  • Measures track key processes and operational
    improvement
  • Results should provide
  • Key information for analysis and review of
    organizational performance (Item 4.1)
  • Explanation for product and service outcomes
    (Item 7.1), customer-focused outcomes (Item 7.2),
    and financial and market outcomes (Item 7.3)
    (cause and effect process outcomes should
    influence outcomes in 7.1, 7.2, and 7.3)

117
7.5 Process Effectiveness Outcomes (2)
  • Measures for work system performance might
    include
  • Just-in-time delivery
  • Acceptance results for externally provided
    products, services, processes
  • Supplier and partner performance
  • Product, service, and work system innovation
    rates and results
  • Response times for emergency drills or exercises
  • Results for contingency exercises

118
7.5 Process Effectiveness Outcomes (3)
  • Measures for process effectiveness and efficiency
    might include
  • Performance that demonstrates improved cost
    savings or higher productivity (Could be linked
    to Six Sigma initiative results)
  • Internal responsiveness indicators (cycle times,
    production flexibility, lead times, set-up times,
    time to market)
  • Improvements in support processes
  • Reduced emission levels,
  • Waste stream reductions
  • Recycling

119
7.6 Leadership Outcomes (1)
  • Aim is to maintain a fiscally sound, ethical
    organization that is a good citizen in its
    community
  • Results related to accomplishment of strategy and
    action plans linked to
  • Strategic objectives and goals - Item 2.1b(1)
  • Key action plan performance measures Item
    2.2a(6)
  • Performance projections or key action plan
    performance measures Item 2.2b

120
7.6 Leadership Outcomes (2)
  • Measures for ethical behavior (Item 1.2 Note 4)
    might include
  • Percentage of independent board members
  • Instances of ethical conduct breaches and
    responses
  • Survey results on workforce perceptions of
    organization ethics
  • Ethics hotline use
  • Results of ethics reviews and audits

121
7.6 Leadership Outcomes (3)
  • Measures of fiscal accountability might include
  • Financial statement issues and risks
  • Internal and external auditor recommendations and
    responses
  • Measures of regulatory and legal compliance
    related to Item 1.2b (1)
  • Measures of organizational citizenship should
    support key communities discussed in Item 1.2c
    and might include
  • Efforts to strengthen local community services
  • Performing community service
  • Improving industry and business practices
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