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The Organizational Alignment Handbook
A Catalyst for Performance Acceleration




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ISBN 9781439877326
Published November 9, 2011 by Productivity Press
282 Pages 52 B/W Illustrations

 
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Book Description

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.

Table of Contents

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
Vision-Centered Organizational Alignment Models 
     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
The Organizational Alignment Cycle
     Typical OAC Application
Organizational Alignment and Organizational Planning
     Approach
     Outcomes
Organizational Alignment and Organizational Change Management

Phase I. Strategic Planning
Introduction to Strategic Planning Phase
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
Introduction to Process and Networks Phase
     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
Introduction to Organizational Structure
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
Introduction
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
Introduction to Rewards and Recognition (R&R) Phase
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
Introduction to Implementation Phase
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 A—Definitions and Abbreviations
Appendix B—Some of the 1100 Plus Improvement Tools

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Author(s)

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, when Systemcorp was purchased by IBM. Prior to this, he served as a principal and one of the leaders in the Process Innovation Group at Ernst & Young; he retired from Ernst & Young when it was purchased by Cap Gemini. Dr. Harrington joined Ernst & Young when Ernst & Young purchased Harrington, Hurd & Rieker, a consulting firm that Dr. Harrington started. Before that, Dr. Harrington was with IBM for over 40 years as a senior engineer and project manager. Dr. Harrington is past chairman and past president of the prestigious International Academy for Quality and of the American Society for Quality Control. He is also an active member of the Global Knowledge Economics Council.

Credentials

H. James Harrington was elected to the honorary level of the International Academy for Quality, which is the highest level of recognition in the quality profession. H. James Harrington is a government-registered Quality Engineer, a Certified Quality and Reliability Engineer by the American Society for Quality Control, and a Permanent Certified Professional Manager by the Institute of Certified Professional Managers. He is a Certified Master Six Sigma Black Belt and received the title of Six Sigma Grand Master. H. James Harrington has an MBA and PhD in engineering management and a BS in electrical engineering.

H. James Harrington’s contributions to performance improvement around the world have brought him many honors. He was appointed the honorary advisor to the China Quality Control Association, and was elected to the Singapore Productivity Hall of Fame in 1990. He has been named lifetime honorary president of the Asia-Pacific Quality Control Organization and honorary director of the Associacion Chilena de Control de Calidad. In 2006 Dr. Harrington accepted the honorary chairman position of Quality Technology Park of Iran.

H. James Harrington has been elected a Fellow of the British Quality Control Organization and the American Society for Quality Control. In 2008 he was elected to be an Honorary Fellow of the Iran Quality Association and Azerbaijan Quality Association. He was also elected an honorary member of the quality societies in Taiwan, Argentina, Brazil, Colombia, and Singapore. He has presented hundreds of papers on performance improvement and organizational management structure at the local, state, national, and international levels.

Recognition

  • The Harrington/Ishikawa Medal, presented yearly by the Asian Pacific Quality Organization, was named after H. James Harrington to recognize his many contributions to the region
  • The Harrington/Neron Medal was named after H. James Harrington in 1997 for his many contributions to the quality movement in Canada
  • The Harrington Best TQM Thesis Award was established in 2004 and named after H. James Harrington by the European Universities Network and e-TQM College
  • Harrington Chair in Performance Excellence was established in 2005 at the Sudan University
  • Harrington Excellence Medal was established in 2007 to recognize an individual who uses the quality tools in a superior manner

H. James Harrington has received many awards, among them the Benjamin L. Lubelsky Award, the John Delbert Award, the Administrative Applications Division Silver Anniversary Award, and the Inspection Division Gold Medal Award. In 1996, he received the ASQC’s Lancaster Award in recognition of his  international activities. In 2001 he received the Magnolia Award in recognition for the many contributions he has made in improving quality in China. In 2002 H. James Harrington was selected by the European Literati Club to receive a lifetime achievement award at the Literati Award for Excellence ceremony in London. The award was given to honor his excellent literature contributions to the advancement of quality and organizational performance. Also, in 2002 H. James Harrington was awarded the International Academy of Quality President’s Award in recognition for outstanding global leadership in quality and competitiveness, and contributions to IAQ as Nominations Committee chair, vice president, and chairman. In 2003 H. James Harrington received the Edwards Medal from the American Society for Quality (ASQ). The Edwards Medal is presented to the individual who has demonstrated the most outstanding leadership in the application of modern quality control methods, especially through the organization and administration of such work. In 2004 he received the Distinguished Service Award, which is ASQ’s highest award for service granted by the ASQ. In 2008 Dr. Harrington was awarded the Sheikh Khalifa Excellence Award (United Arab Emirates) in recognition of his superior performance as an original Quality and Excellence Guru who helped shape modern quality thinking. In 2009 Harrington was selected as the Professional of the Year (2009) by Quality Magazine. Also in 2009 he received the Hamdan Bin Mohammed e-University Medal.

Dr. Harrington is a prolific author, publishing hundreds of technical reports and magazine articles. For the past 8 years he has published a monthly column in Quality Digest Magazine and is syndicated in five other publications. He has authored 35 books and 10 software packages.  

About the Author—Frank Voehl

Present Responsibilities

Frank Voehl is the Director of Process Innovation at Nova Southeastern University, where he is also a Senior Professor of Executive Education. He also serves as the chairman and president of Strategy Associates, Inc. and a senior consultant and chancellor for the Harrington Institute. He also serves as the chairman of the board for a number of businesses and as a master black belt instructor and technology advisor at the University of Central Florida in Orlando. He is recognized as one of the world leaders in applying quality measurement and Lean Six Sigma Methodologies to business processes.

Previous Experience

Frank Voehl has extensive knowledge of NRC, FDA, GMP, & NASA quality system requirements. He is an expert in ISO-9000, QS-9000, ISO-14000, and Six Sigma Quality System Standards and processes. He has degrees from St. John’s University and advanced studies at NYU, as well as a Doctor of Divinity degree. Since 1986, he has been responsible for overseeing the implementation of Quality Management systems with organizations in such diverse industries as telecommunications and utilities; federal, state, and local government agencies; public administration and safety; pharmaceuticals; insurance and banking; manufacturing; and institutes of higher learning. In 2002 he joined the Harrington Group as the chief operating officer (COO) and executive vice president. He has held executive management positions with Florida Power and Light and FPL Group, where he was the founding general manager and COO of QualTec Quality Services for 7 years. He has written and published or co-published over 25 books and hundreds of technical papers on business management, quality improvement, logistics, and teambuilding, and has received numerous awards for community leadership, service to third-world countries, and student mentoring.

Credentials

The Bahamas National Quality Award was developed in 1991 by Voehl to recognize the many contributions of companies in the Caribbean region, and he is an honorary member of its board of judges. In 1980 the City of Yonkers, New York, declared March 7 as Frank Voehl Day, honoring him for his many contributions on behalf of the youth in the city where he lived and performed volunteer work. In 1985 he was named Father of the Year in Broward County, Florida. He also serves as president of the Broward County St. Vincent de Paul Society, whose mission is to serve the poor and needy.

Frank’s contributions to quality improvement around the world have brought him many honors and awards, including ASQ’s Distinguished Service Medal, the Caribbean Center for Excellence Founders Award, the Community Quality Distinguished Service Award, the Czech Republic Outstanding Service Award on behalf of its business community leaders, FPL’s Pioneer Lead Facilitator Award, the Florida SFMA Partners in Productivity Award, and many others. He was appointed the honorary advisor to the Bahamas Quality Control Association, and he was elected to the Eastern Europe Quality Hall of Fame. He has been named honorary director of the Association Venezuela de Control de Calidad by Banco Consolidado.

Other Books by H. James Harrington and/or Frank Voehl

H. James Harrington and Frank Voehl have published hundreds of technical reports and magazine articles. They have authored over 45 books, most of which are listed here:

The Improvement Process; 1987—one of 1987’s bestselling business books
Poor-Quality Cost; 1987
Excellence—The IBM Way; 1988
The Quality/Profit Connection; 1988
Business Process Improvement; 1991—the first book on process redesign
The Mouse Story; 1991
Of Tails and Teams; 1994
Total Improvement Management; 1995
High Performance Benchmarking; 1996
The Complete Benchmarking Workbook; 1996
ISO 9000 and Beyond; 1996
The Business Process Improvement Workbook; 1997
The Creativity Toolkit—Provoking Creativity in Individuals and Organizations; 1998
Statistical Analysis Simplified—The Easy-to-Understand Guide to SPC and Data Analysis; 1998
Area Activity Analysis—Aligning Work Activities and Measurements to Enhance Business Performance; 1998
Reliability Simplified—Going beyond Quality to Keep Customers for Life; 1999
ISO 14000 Implementation—Upgrading Your EMS Effectively; 1999
Performance Improvement Methods—Fighting the War on Waste; 1999
Simulation Modeling Methods—An Interactive Guide to Results-Based Decision Making; 2000
Project Change Management—Applying Change Management to Improvement Projects; 2000
E-Business Project Manager; 2002
Process Management Excellence—The Art of Excelling in Process Management; 2005
Project Management Excellence—The Art of Excelling in Project Management; 2005
Change Management Excellence—The Art of Excelling in Change Management; 2005
Knowledge Management Excellence—The Art of Excelling in Knowledge Management; 2005
Resource Management Excellence—The Art of Excelling in Resource Management; 2005
Six Sigma Statistics Simplified; 2006
Improving Healthcare Quality and Cost with Six Sigma; 2006
Six Sigma Green Belt Workbook; 2007
• Six Sigma Yellow Belt Workbook; 2007
Making Teams Hum; 2007
Advanced Performance Improvement Approaches: Waging the War on Waste II; 2007
ISO 9000: An Implementation Guide for Small to Mid-Sized Businesses (with Peter Jackson and David Ashton, St. Lucie Press, 1994)
Deming: The Way We Knew Him (CRC Press, 1995)
Handbook for TQM Implementation (St. Lucie Press, 1994)
Teambuilding: A Structured Learning Approach (with Peter Mears, CRC Press, 1995)
The Executive Guide to Implementing Quality Management Systems (with Peter Mears, CRC Press, 1995)
Macrologistics Management: A Catalyst for Organizational Change (with Martin Stein, CRC Press, 1997)
Total Quality in Information Systems and Technology (with Jack Woodall and Deborah K. Rebuck, CRC Press, 1996)
Problem Solving for Results (with Bill Roth and James Ryder, St. Lucie Press/CRC Press, 1996)

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Author - H. James  Harrington
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H. James Harrington

CEO, Harrington Institute, Inc.
Los Gatos, California, USA

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