Monday, March 29, 2010

The Labels Rarely Describe The Contents

The TQM/PQM problem is hardly unique. Most labels describing a number of organization change and improvement efforts have become meaningless. For example, when an executive talks about building a team-based organization, he or she may mean instilling a "teaminess" attitude. Or this might mean using temporary task forces to solve problems. Possibly the executive envisions filling their organization with employee improvement teams (similar to quality circles). Or he or she may want to develop self-directed workteams with no direct supervision. Some times "reengineering" describes layoffs, or traditional "slash and burn" cost cutting exercises. In other cases, reengineering means a change to the organization's structure. Sometimes it means installing new information technology systems. Or reengineering could be a radical revamping of the macro, strategic processes that establish how most work and customer interactions flow across the organization.

Successful change and improvement initiatives are integrated, or "whole" rather than partial and piecemeal. They flow from the organization's basic reason for being, values, vision of the future, and strategies. The effort is intertwined with the organization's operating goals, systems, and measurements. These changes and improvements aren't programs bolted on the side of the organization. These approaches are tightly intertwined and connected to management systems, daily practices, and behavior.

As he continues a long string of successes in building "the new GE", CEO Jack Welch observed, "The winners of the 90's will be those who can develop a culture that allows them to move faster, communicate more clearly, and involve everyone in a focused effort to serve even more demanding customers." At Multifoods, the international food processing giant (brands include Robin Hood and Bicks), Human Resource Vice President, Bob Maddocks finds that "the improvement process isn't separate from good leadership and management practices." He adds, "We want everyone involved in operating the company, focusing on customers, and improving our processes and systems. It's got to become a way of life for all of us."

Whatever labels are used, a "wholistic" or systems approach to change and improvement means reversing the inward focus, management-centredness, and vertical management found in most organizations.

Besides changing direction in any one of these key areas individually, there is an evermore pressing need to integrate all three as an organization-wide system. This can be either an area-by-area evolution or a broad scale simultaneous implementation. For example, an organization might start by focusing on customers, begin managing processes with basic teams, then move toward shared leadership and self-directed teams. Or the change effort may begin by involving employees through teams, focus on customers, and then move to incorporate process management.

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