Chapter 22 Using Stakeholder Information Systems Aaron and Roth

 A high percentage of middle managers where leaving a banking organization.  They didn’t know why  Only conducted exit interviews  Not a good idea due to the high emotional content  Assumed it was their compensation system Problem

Covey’s Findings  They were attracting entrepreneurial people.  Asked them to “crunch numbers”  The employees lacked:  Intrinsic Satisfaction  Challenge  Excitement  Restructure the organization around entrepreneurial talent and use systems that reward new ideas

Accounting for People  The information system must deal with the entire workplace environment in order to understand what’s going on.  Organizations need an information system that deals with social problems and challenges.  Most companies use information systems for finances  Why not people?

Making Sense of What’s Happening  Human Resource Accounting:  Helps monitor all employees  Uses personal and organizational profiling surveys and other diagnostics  Shines the light on what is happening with all the stakeholders in organizations:  The people  Their perceptions, motivations, values, habits, and skills  The formal organization  Physical environment, technology, strategy, policies, and procedures  The informal organization or culture  Values and norms from the interaction of people combined with the organization’s physical environment

Conflicts  Rise when the norms of the informal organization conflict with the standards of the formal organization  “Us and Them”  Management wants to control and direct behavior rather than “letting it flow”.  What can we do???  We can gradually create a “win-win” culture.  With sincerity!  Follow these integrated principles:  Fairness  Human relations  Human resources  Meaning  All of this takes time  Although the process may be painful, but in the long run it’s much better than operating in the dark.

Human Resource Accounting  Begins and ends with gathering data  We must think through alternatives  Make decisions  Implement them  Do an assessment or survey  Use the data to make decisions  If problem solving is not done around feedback, people will feel disillusioned.  Company culture will never take surveys seriously

How do we Assess Company Culture?  It’s subjective  We must somehow give ratings  It’s hard to rate by using words  Numbers will always win  Numbers add legitimacy  Think of beauty pageants  How to predict performance:  Conduct pre-test and post-test assessments  For people who go through Covey’s training, the external locus of control shifts internally.  His training also creates the halo effect.  If you measure and record it, people tend to do better.

Start Assessing the Customer  Start a customer information system  Customers are in constant contact with employees.  Long-term returns are higher if there’s “harmony” among everyone.  Management, ownership, AND employees  Employees are often seen as a means to an end  They represent the company to the customer  People get their security from within  In order to improve, you must expose your weaknesses.

 Personal  Interpersonal  Managerial  Organizational In order to have Continuous Improvement, all four are needed. all four are needed.

Put it to work!  Meaningful one-on-one visits  Continue using surveys  Empathic listening  Suggestion systems  Open-door policies  Must receive high marks from the higher- ups and peers.

Completed Staff Work Chapter 23

Delegating  You teach the principles.  They apply them. *In order to do that. You first must carefully select and trust your employees.

The Principle: No Cop-Out  Meaning: Don’t back out of a responsibility or commitment. You’re close to being 100% (not really...but close) independent from your boss.

Kissinger/Ohsone What did they do:  Kozo Ohsone, a manager for Sony Corporation, made a block of wood that was 5 inches square and put it front of his engineers to design a portable audio player.  Henry Kissinger (56th Secretary of State) Asked an important question to his staff: Is this the very best you can do?

Kissinger/Ohsone  What did they have in common. - Staff are independent and distant from them. - Staff are independent and distant from them. - Give staff responsibility. - Give staff responsibility.

Steps to Completed Staff Work 1. Make sure workers understand the task given. 2. Clarify how much control they get. 3. Constant check-ups 4. Give them time, resources, and access to open doors. So they can successfully complete their work. 5. Set a time and place to review the completed staff work.

Bibliography  Covey, Stephen R. Principle Centered- Leadership. New York, NY: Simon & Schuster, 1991