Systems Analysis: Organizations are systems.

2 Types We commonly think of at least 2 things when we think of systems in organizations: 1.Most commonly we think of systematic solutions i.e., a solution that is automated, built into existing practices, or supported in such a way so that it will continue (“I need a system of organization”). 2.Less commonly, we think of systems as the things that impact; and are impacted by the pinpoint we select to improve.

3 Levels of Organizations 1.Performer level Performance management view 2.Process level Product or service creation view 3.Organizational level Total organization view

The Organizational Level From Rummler & Brache, 1995

The Organizational Level From Rummler & Brache, 1995 Inputs Processing system Receiving system

The Organizational Level: The TPS View Processing System Receiving System InputOutput Internal Feedback External Feedback From Brethower, 2000; Sasson & Austin, in press

A TPS Example in Education Elementary School (K-6) Middle School Children, Teachers, Curriculum Resources Competent Students Internal Feedback External Feedback

Processing System Process 3 Process 2 Process 1 Dept 1 Dept 2Dept 3Dept 4Dept 5Dept 6Dept 7 Functions (Silos) Processes

Ed Example - Processing System Subject 3 Subject 2 Subject 1 Grade1 Grade2Grade3Grade4Grade5Grade6 Functions (Silos) Processes

OBM Network Newsletter Production Process

Total Performance System Components - 1 Mission: The major purpose or reason for being a performance system Input: Information, technology, people, money, or material that initiates or is a resource for a work process Processing system: A system that processes inputs, generating at least one output valued by an external receiver

Total Performance System Components - 2 Internal Feedback: Information about the performance of individuals, work groups, or processes that is used to guide performance Output: Information, money, material, or added value that is produced by a work task or process Receiving system: A set of systems that are closely linked to a processing system and receive its outputs External Feedback: Information from customers and other external sources, used to guide performance

The Process Level Process = “A series of steps designed to produce a product or service” Steps can be shared Across people Across departments Across organizations At least three different types of processes are critical to a system’s health

Customer Processes Result in a product or service that is received by an organization’s customers –Preparing meals at a restaurant –Producing parts for an automobile that is sold to an auto manufacturer –Making payments to clients for an insurance claim

Administrative Processes Produce products or services that are invisible to the external customer but essential to the effective operation of a business –Balancing a cash register at the end of the day –Paying bills –Sending out paychecks –Hiring/promoting/firing

Management Processes Processes that result in products or services that ensure adequate performance of customer and administrative processes –Performance measurement –Goal setting –Performance Feedback –Resource Allocation –Rewards –Job Analysis and Design

OBM Network Newsletter Production Process

Process Management and Process Mapping When people, departments, or organizations share steps of a task, there is potential for “disconnects” –People may not know how their contribution benefits the end result of the process –Participants in the process may not know the goal or ultimate result of their work –People may make the wrong kind of contribution or spend time producing extra products that are not needed –A person might hold up the process by not completing their portion of the work

Minimizing “Disconnects” A process must be understood before it can be managed or adjusted effectively Implementing a new process requires planning for relationships and responsibilities People participating in a process must get feedback from internal co-workers about their individual contributions People participating in a process must get feedback from those who receive the services/products they produce

Mapping out a Process (“Is” map) Who are the participating parties (people, departments, organizations)? What is the end result/product/service of the process? Who receives the output of the process? THEN MAP: how does this process get accomplished currently (not how we wish it was accomplished, but how it IS accomplished) OR, how would we like this process to be accomplished (“should” map)

INPUTOUTPUT PERFORMER CONSEQUENCES FEEDBACK 2. TASK SUPPORT  Can the performer easily recognize the input requiring action?  Can the task be done without interference from other tasks?  Are job procedures and work flow logical?  Are adequate resources available for performance (time, tools, staff, information)? 1. PERFORMANCE SPECIFICATIONS  Do performance standards exist?  Do performers know the desired output and performance standards?  Do performers consider the standards attainable? 3. CONSEQUENCES  Are consequences aligned to support organizational performance?  Are consequences meaningful from performer's viewpoint?  Are consequences timely? 4. FEEDBACK  Do performers receive information about their performance?  Is the information they receive: - relevant? - accurate? - timely? - specific? - easy to understand? 5. SKILLS/KNOWLEDGE  Do performers have the necesssary skills and knowledge to perform?  Do performers know why desired performance is important? 6. INDIVIDUAL CAPACITY  Are performers physically, mentally, and emotionally able to perform? The Performer Level From Rummler & Brache, 1995

Performer-Level Analysis Dimensions 1.Performance specifications 2.Task support 3.Consequences 4.Feedback 5.Skills/knowledge 6.Capacity