The Organizational Alignment Handbook: A Catalyst for Performance Acceleration, 1st Edition (Hardback) book cover

The Organizational Alignment Handbook

A Catalyst for Performance Acceleration, 1st Edition

By H. James Harrington, Frank Voehl

Productivity Press

282 pages | 52 B/W Illus.

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pub: 2011-11-09
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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

About the Authors

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)

About the Series

Management Handbooks for Results

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Subject Categories

BISAC Subject Codes/Headings:
BUS042000
BUSINESS & ECONOMICS / Management Science
BUS053000
BUSINESS & ECONOMICS / Quality Control
TEC020000
TECHNOLOGY & ENGINEERING / Manufacturing