Misalignment can be costing 15%. What is it costing you?

Misalignment can be costing 15%
Misalignment can be costing 15%. What is it costing you?

What is misalignment costing your company?

 

 

What is misalignment costing you?
What is misalignment costing you?

We know of no company that has ever saved themselves into prosperity.  However, we also know of no company that has positioned themselves for long-term success without managing their costs, productivity and most importantly the actions that they take to give them an advantage in the markets that they serve.

In our experience, the primary obstacle is not structure, market conditions or financial pressure, it is misalignment …

•Misalignment of core processes with strategy

•Misalignment of recognition issues that reward activity but negate strategy

•Misalignment of managerial behaviors and attitudes with strategic direction(Inappropriate attitudes render long term success DOA)

•Misalignment of strategies, products and services with what customers really value

The simple logic is that today, misalignment can be costing your company as much as 15% of your gross sales.  Stopping only a fraction of this bleeding would improve your profits, employee and customer satisfaction, successful new product introductions and supplier relationships.  Your unit costs would go down and your competitiveness would go up.

We would like the opportunity to connect the above with your current business situation and to illustrate how our organization might become a resource to you. We unlike traditional consulting firms believe the answers to the challenges and opportunities facing an organization exist within that organization.  It’s our job to help you tap into this creativity and talent to get more from what you already have and fill the performance “GAP”s between your strategies, people, process and customers and where you want to be. Don’t let misalignment impact your profitability.

Charles Wilds – The SOS Group

 

5 People Factors In Organizational Change

Most often the basic considerations for change are efficiency and effectiveness or results of the operation of the organization. Rarely do the people in the organization are given importance in the planned change. If ever, it is more of the new job description, but far from what the staff thought will be the effect on their condition. As a result, resistance in the change occurs even when we thought the change concept is very ideal for the organization.

In this context, assessing how the staff feel towards the plan is an activity that must be done before the start of any change activity. This will provide the management with a “feel” of how the staff view the whole change initiative. Information from this exercise can be used to enable the management to design a program that will respond to resistance from the staff.

One of the tools I found effective is the ADKAR that stands for Awareness, Desire, Knowledge, Ability and Reinforcement.

1. Awareness determines the staff’s level of information on what the change is all about, its objectives and its effects on the staff and the output of the organization. Low level of awareness may later translate to resistance and non-participation.

2. Desire refers to the interest of the staff to take part in the change. High level of desire means high level of participation in the initiative. Low desire will mean resistance and non-participation.

3. Knowledge refers to the information about the new processes and procedures resulting from the change. Adoption by the staff of the new knowledge required is the main issue under this parameter.

4. Ability is the skills required by the staff to cope with the changes. Acquiring new skills, the cost involved, the time required and the effect on the compensation will be the main issues related to this parameter.

5. Finally, Reinforcement is the policy framework that will ensure sustainability of direction and the change initiative.

Covering all these parameters and generating information from the ADKAR tool will allow the organization to address specific issues that may be brought out in the process of implementation. Addressing the issues will lessen the resistance and provide the management with inputs on how to make the change initiative be accepted by the whole organization.

JAY P. SUPETRAN is a development practitioner based in the Philippines working with donor agencies and non-government organizations. Visit his blog at http://www.kalakalan.blogspot.com

Author: Jay Supetran
Article Source: EzineArticles.com

Organizational Development Definition

Organization development definition is not very difficult. It is simply a planned effort to increase the organization’s effectiveness and capability. Organizational development brings changes to the attitudes, values and beliefs of organization, so that people can adapt to new technologies and challenges of the business. OD includes both inventions and innovations along with the involvement of major stakeholders and people in the organization in the process of growth and development.

The other definition for organizational development is when two or more people function together to achieve a common goal i.e. success as defined by the key performance indicators of the organization. Organizational development (OD) is the long range effort to solve the problems in the workplace.

According to practical experience, OD can also be defined as the process of working together with organizations, organization leaders and organization groups in bringing systematic change to the root problems and hence increasing productivity and employee satisfaction. OD offers three things: what we do, how we do and the results we get. By properly understanding all three aspects, you can solve critical aspects of the organization. We can say hundreds of definitions for OD but it can be simply summarize as the process for a group to achieve its goals, mission and vision in the most effective and efficient manner possible.

It can also be defined as the process in which the organization develops the capability and capacity of individual workers and managers most effectively and efficiently to provide mission work that can be sustained in the long term. This definition connects OD with the mission and vision dreamed by the founders. It is a complex strategy that brings changes in each and every aspect of the organization. OD is the process which is designed to produce the particular kind of end result.

OD involves following four components: organizational reflection, system improvement, planning and self-analysis.

OD is termed as a growing field that is responsible for many new approaches which includes positive adult development. Does OD bring any effectiveness in organizational profitability? Yes of course. It plays major role in business profit.

Advantages of organizational development

o It improves organizational communication.
o Enhances the intelligence, leadership and managerial ability of the organization.
o OD assists for managerial development, especially for newly appointed managers.
o Sets goals for future and brings new ideas and plans for organizational development.
o Brings effectiveness in terms of business growth and profit.

Given the present situation of businesses at this time, how can you implement this in your organizational setting? How can you deal with problems that arise in organizational change and development?

Visit the Transformational Leadership Blog at http://www.mightyrasing.com to get tips for organizational culture and development. Subscribe to the blog and get FREE LEADERSHIP RESOURCES.

Author: M Rasing
Article Source: EzineArticles.com

Organizational Culture Change – 6 Advantages to Enhance Performance

If you don’t know where you’re going, any road will get you there! What the rabbit said to Alice is also true when reversed. If you don’t know where you are now, you’ll never get where you want to be.

This is what happens to some managers and organizations. They’re working to achieve goals and enhance performance. But 80% of their endeavors generate 20% results or even less. That’s not because their goals aren’t properly set. They are. The only thing lacking is a precise bearing. Standing precisely here, what would be the most effective way to reach that future?

So, having your goals set and preparing to change, spend 15 minutes to assess your organizational culture. Why? Because culture is found to make the difference. It is why up to 70% of organizational culture change programs fail. Wouldn’t it be great to avoid just that? Make your change endeavors more effective, aiming for 20% endeavors generating 80% results, and take your current organizational culture into account. Learn the current potential and possible resistance right here, right now, before your feet. Knowing it is dealing with it. Overcome resistance and mobilize your organization’s potential. It is a powerful starting point for successful change. Leave no sooner than after you’ve done this!

Are you ready? Just follow me!

Fifteen minutes will do for managers and staff to assess their organizational culture quickly, easily and reliably. The Organizational Culture Assessment Instrument (OCAI) is developed by professors Kim Cameron and Robert Quinn and is a validated research method. No wonder that the OCAI is currently used by over 10,000 companies worldwide. How come that this instrument takes only so little time and is still valid?

The Competing Values Framework

Cameron & Quinn learned from statistical analysis that out of a list of thirty-nine indicators of effectiveness for organizations, only two dimensions made the difference. So four quadrants were constructed, corresponding with four organizational culture types that differ strongly on these two dimensions:

  • Internal focus and integration VS External focus and differentiation
  • Stability and control VS Flexibility and discretion

Organizations in the two left quadrants are internally focused, like: What is important for us and how do we want to work? The two quadrants on the right consist of organizations that are externally focused on: What is important for the market, competitors and customers? The upper quadrants desire flexibility, while at the bottom organizations value stability and control.

In short, the four archetypes of culture are:

1. Clan Culture: A friendly, people-oriented working environment where colleagues have a lot in common, similar to a family. They value teamwork and consensus. Executives are seen as mentors or father figures. There is great involvement. Success is defined as addressing the needs of clients and caring for people.

2. Adhocracy Culture: A dynamic and creative working environment. Employees take initiatives and risks. Leaders are seen as innovators. Experiments, innovation and prominence are emphasized. Success is growth and creating new products or services.

3. Market Culture: A results-based organization that emphasizes finishing work and getting things done. People are competitive and focused on goals. Leaders are hard drivers, producers, and rivals at the same time. Market penetration and stock are the definitions of success.

4. Hierarchy Culture: A formalized and structured work environment. Procedures are leading. Leaders are efficiency-based coordinators. Keeping the organization functioning smoothly is most crucial. Reliable delivery, smooth planning and low costs define success.

Of course these descriptions are a bit short and therefore monochrome. They’re just meant to give you a quick glimpse of the four types. You can check a more extensive and nuanced explanation about the OCAI.

Six key features

To find your organization’s core values and thus the dominant culture type, you need to complete a short survey. Just assess the following six features of organizational culture:

  • dominant characteristics
  • organizational leadership
  • management of employees
  • organization glue
  • strategic emphases
  • criteria of success

The organizational culture assessment shows four statements for each of the above key features of culture. By dividing 100 points over these four descriptions, you’ll get a weighed assessment of the current culture mix.

Just like in reality you don’t need to choose just one culture type. Reality is ambivalent and so is organizational culture. The Competing Values Framework states that the values and the corresponding organizational cultures compete with each other. Organizations can spend their money, attention and time only once, so they tend to emphasize certain values. Quinn and Cameron found that flexible organizations are the most effective, which sometimes leads to contradictory behavior. Research shows that there is no single “best” culture type. The best mix of culture types depends on the situation. In a saturated market for instance, you could flourish with a competitive market culture, while this culture would produce opposite effects in a start up company that thrives on innovation, creativity and serving new developing markets.

You can find your unique culture mix of for instance, people-oriented clan culture and results-oriented market culture. Knowing your specific mix of internal focus and flexibility (clan culture) versus external focus and stability (market culture), you can prepare a successful pathway to the preferred situation.

In the assessment you also define the preferred situation. Just rate the six key aspects of organizational culture again, but this time you keep the preferred future in mind. You divide 100 points while you imagine it’s five years from now and the desired situation has come true.

The outcome!

Now you know where you stand and where you want to go! In just 15 minutes an entire team or organization can assess their starting point and their goal.

Before there was an automated version of the OCAI, it was a lot of work to calculate the profiles by hand. Nowadays, there’s an online automated OCAI tool available that is free for individual participants and at a very reasonable price for teams and organizations.

Using this online tool, every participant receives their personal profiles of current and preferred culture by email. A team of participants can discuss their personal profiles and create a joint profile as a basis for their change program.

In case of large corporations with a great number of participants, you can work with the collective profile, constructed by averaging all the individual results. This provides a clear, quantified starting point for change.

A culture profile gives a lot of quantified information:

  1. The dominant culture and its strength
  2. The difference between present and preferred culture
  3. The congruency of the six features
  4. Comparison with the average for the sector or industry group
  5. The developmental phase of the organization

ad 1: Imagine that you have a very dominant market culture (48 out of 100 points): this indicates that people experience a culture of competition and getting things done.

ad 2: For instance, you see that employees would prefer 10 points more of a people oriented clan culture. The difference between current and preferred profiles indicates your organization’s readiness to change (or their current discontent) and gives an impression what kind of change or approach would be motivating.

ad 3: Congruence means that the 6 key features of culture align, so that they all emphasize, for instance, market culture. Mostly this works smoothly, while incongruence means that there are inconsistencies that can take a lot of time, energy and so on.

ad 4 and 5: It’s interesting to compare your culture profile with your economic sector and see how mature your organization is. Cultures evolve over time from extreme flexibility to more stability and an external orientation.

Qualitative fine tuning

Once you have this quantified picture, you might color and detail it with some qualitative information. Instead of doing interviews through the organization, as some consultants tend to do, you could simply settle for an OCAI workshop. Interviews are not only a lot of work but also produce loads of information that is difficult to standardize or combine to a meaningful whole. Working with your results in an OCAI workshop is adding qualitative information, fine-tuning your profile, understanding it better and working on consensus about the current and preferred situation. When this is accomplished, you mobilize people’s readiness to change. That’s a lot of potential to work with. It’s great energy to start a change, I can tell from experience.

In my next article I will tell you how you can work with your results and start your change program effectively with the OCAI workshops.

6 Advantages to Performance

Conclusively, diagnosing and changing organizational culture can actually pay off if it’s done correctly. Don’t neglect culture since it’s such an important factor. Let culture work for you and enhance performance.

As a consultant guiding organizational change I got enthusiastic about using the Organizational Culture Assessment Instrument. A discriminate factor for success that beforehand was considered “vague” and impossible to manage, was made easy to grasp and even utilize, mobilizing employees beyond their “normal” resistance to change.

The OCAI has 6 advantages that help organizations enhance performance:

  1. It’s focused: it measures the six key dimensions that were found to make a difference in organizational success.
  2. It’s timely: both assessing and developing a change strategy can be accomplished in a reasonable period.
  3. It’s involving: either by including all personnel or those who give direction and guide change.
  4. It’s quantitative: based on figures, completed by qualitative information when working with the results to establish the desired changes.
  5. It’s manageable: it can be implemented by a (management) team; outside consultants aren’t necessarily needed.
  6. It’s valid: the OCAI is validated and people recognize their outcomes.

So if you’re planning a roadmap to change, spend 15 minutes on your current position. Any traveler can tell what a big advantage you gain to take the best possible road, avoid roadblocks and actually reach your preferred future.Use these 6 advantages of the OCAI and enhance organizational performance.

Marcella Bremer MScBA is a consultant, trainer and writer in the field of organizational culture. She’s always been fascinated by the human mind and human behavior. She explores the field of change, leadership, management and organizational culture.

She’s especially fond of the Organizational Culture Assessment Instrument because it works quickly and easily. The OCAI can be found online for teams and organizations and is also used for research purposes.

It’s free for individual respondents, so assess your organizational culture today in 15 minutes at OCAI online.

Author: Marcella Bremer
Article Source: EzineArticles.com