1st Edition

The Organizational Alignment Handbook A Catalyst for Performance Acceleration

By H. James Harrington, Frank Voehl Copyright 2012
    282 Pages 52 B/W Illustrations
    by Productivity Press

    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.

    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 
         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?
         Key Challenges
    Organizational Alignment and e-Business Strategy

    The Organizational Alignment Methodology
    The Organizational Alignment Cycle
         Typical OAC Application
    Organizational Alignment and Organizational Planning
    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

    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

    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
    Activity 4. Documentation
    Activity 5. Implementation
         Key Implementation Challenges
         Summary of Organizational Restructuring

    Phase IV. Staffing
    The Two Approaches to Solving the Skill
    Mix Problem
    Defining Skills Requirements
    Present Employees
    Management Skills

    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

    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
         Gauging Effectiveness
         Key Implementation Challenges
         Open-Ended Questions

    Appendix A—Definitions and Abbreviations
    Appendix B—Some of the 1100 Plus Improvement Tools


    About the Author: H. James Harrington In Amy Zuckerman's book, Tech Trending, Dr. Harrington was referred to as the quintessential tech trender. The New York Times referred to him as having a knack for synthesis and an open mind about packaging his knowledge and experience in new ways ? characteristics that may matter more as prerequisites for new-economy success than technical wizardry. Well-known business management practices author, Tom Peters, stated, I fervently hope that Harrington?s readers will not only benefit from the thoroughness of his effort but will also ?smell? the fundamental nature of the challenge for change that he mounts. William Clinton, past president of the United States, appointed Dr. Harrington to serve as an Ambassador of Good Will. It has been said about him, He writes the books that other consultants use. Harrington Institute was featured on a half-hour TV program, Heartbeat of America, which focuses on outstanding small businesses that make America strong. The host, William Shatner, stated, You [Dr. Harrington] manage an entrepreneurial company that moves America forward. You are obviously successful.Dr. H. James Harrington now serves as the chief executive officer (CEO) for the Harrington Institute and Harrington Middle East. He also serves as the chairman of the board for a number of businesses. Dr. Harrington is recognized as one of the world leaders in applying performance improvement methodologies to business processes. He has an excellent record of coming into an organization, working as its CEO or chief operating officer (COO), resulting in a major improvement in its financial and quality performance.Previous Experience In February 2002 Dr. Harrington retired as the COO of Systemcorp A.L.G., the leading supplier of knowledge management and project management software solutions, whe