©2006 OLC 1 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence

©2006 OLC 2 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Performance Excellence Enablers and Results The roots on the tree symbolize the enablers for the achievement of excellence. The enablers on the tree roots are examples of individual and organizational capabilities that influence organizational behavior. Organizational behavior influences the effective use of all organizational resources. The results on the branches are indicators of the achievement of organizational excellence. The indicators an organization uses to track results vary, depending upon its goals, objectives, and strategy.

©2006 OLC 3 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Understanding the Capabilities That Enable Organizational Excellence Achieving and sustaining organizational excellence in a dynamic market requires the ability to learning change. Building the capabilities for learning and change is the foundation for organizational excellence. To build the needed competencies, the organization needs resources, leadership and a work environment supportive of learning and change.

©2006 OLC 4 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Organizational Learning and Change: A Water to Steam Analogy

©2006 OLC 5 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Factor Influencing Learning and Change Forces That Inhibit Change Roles/responsibilities that are unclear or unwanted Rigid bureaucracy Fear of the unknown/fear of making mistakes A shared vision of the desired change The belief that the change is beneficial Sufficient employee competencies to achieve change “As Is” Situation “To Be” Situation Learning and Change Jostling for power, interpersonal conflicts Low level of trust Inadequate plan for achieving desired change Visible top management support for the change Adequate resources to achieve the change A culture supportive of learning and change Forces That Enable Change

©2006 OLC 6 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Questioning Change What needs to be changed and why? How can the needed change be achieved, and what are the costs involved? Are the potential benefits sufficient to justify the costs and risks involved? Where can I gain an understanding of the capabilities needed to achieve organizational excellence?

©2006 OLC 7 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Resources for Understanding The Capabilities That Enable Organizational Excellence W. Edwards Deming Stephen Covey Peter Senge 14 Points Seven Habits of Highly Effective People Learning Organizations

©2006 OLC 8 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence W. Edwards Deming’s Perspective “We will learn what we must do to survive. There’s no regulation that says anybody need survive. It is purely voluntary.” W. Edwards Deming “Ultimately improvement has to come from the brains of those working in the system, and they have to be alive enough to use their brains.” W. Edwards Deming

©2006 OLC 9 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence W. Edwards Deming’s 14 Points 1.Create constancy of purpose toward improvement of product and service. 2.Adopt the new philosophy of Win-Win. 3.Cease dependence on mass inspection. 4.End the practice of awarding business on the basis of price tag. 5.Improve constantly and forever the system of production and service to improve quality and productivity.

©2006 OLC 10 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence W. Edwards Deming’s 14 Points (Continued) 6.Institute training on the job. 7.Institute leadership, not supervision. 8.Drive out fear so that everyone may work effectively for the company. 9.Break down barriers between departments. 10.Eliminate slogans, exhortations, and targets.

©2006 OLC 11 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence W. Edwards Deming’s 14 Points (Continued) 11.Eliminate goal setting. 12.Remove barriers that rob hourly workers and managers of their right to pride of workmanship. 13.Institute a vigorous program of education and self- improvement. 14.Put everybody to work to accomplish the transformation.

©2006 OLC 12 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Covey’s Seven Habits of Highly Effective People 1.Be proactive 2.Begin with the end in mind 3.Put first things first 4.Think win/win 5.Seek first to understand, then to be understood 6.Synergize (the whole is greater than the sum of its parts) 7.Sharpen the saw (improvement)

©2006 OLC 13 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Habits Habit is something we do often with ease. Habits are natural, genetic, and difficult to change. We can learn new habits and break old ones. To develop a habit, we need knowledge, skill and attitude. First 3 habits promote self victory. Second 3 habits promote public victory. The last habit simply says you practice all these habits everyday.

©2006 OLC 14 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Principles Embodied in the 7 Habits Excerpted from a FranklinCovey broadcast 1. Be Proactive Responsibility/Initiative 2. Begin with the End in MindVision/Values 3. Put First Things FirstIntegrity/Execution 4. Think Win-WinMutual Respect/Benefit 5. Seek First to Understand,Mutual Understanding Then to be Understood 6. SynergizeCreative Cooperation 7. Sharpen the SawRenewal

©2006 OLC 15 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Peter Senge Making a Case for The Learning Organization It is no longer sufficient to have one person learning for the organization. It’s just not possible any longer to “figure it out” from the top, and have everyone else following the orders of the “grand strategist.” The organizations that will truly excel in the future will be the organizations that discover how to tap people’s commitment and capacity to learn at ALL levels in an organization.

©2006 OLC 16 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Senge’s Five Disciplines of the Learning Organization Personal Mastery Mental Models Shared Vision Team Learning Systems Thinking

©2006 OLC 17 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Senge’s Five Disciplines of the Learning Organization (Continued) 1.Personal Mastery – each individual’s commitment to lifelong learning – beyond the confines of self-interest. 2.Mental Models – reflecting upon, clarifying and improving our internal pictures of the world – breaking through ingrained patterns of thinking and being open to a larger perspective. 3.Shared Vision – building commitment in a group by developing shared images of the future we seek to create, and of the approach that will get us there … creating an environment where self interest is not paramount.

©2006 OLC 18 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Senge’s Five Disciplines of the Learning Organization (Continued) 4.Team Learning – transforming collective thinking so that group intelligence is greater than the sum of individual members’ talents – individuals are motivated to learn for the good of the whole rather than compete on the basis of individual talent and expertise. 5.Systems Thinking – seeing the inter- connectedness of the parts to the whole and understanding how each small action changes the whole.

©2006 OLC 19 Process Management: The Foundation for Achieving Organizational Excellence The Capabilities That Enable Organizational Excellence Learning Organization Definition “A model of strategic change in which everyone is engaged in identifying and solving problems so that the organisation is continuously changing, experimenting and improving, thus increasing its capacity to grow and achieve its purpose.” Rowden R. W. 2001, “The Learning Organisation & Strategic Change,” S.A.M. Advanced Management Journal, Summer 2001, Vol. 66, Issue 3.