New sts workshop lowlands part 2 final
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New sts workshop lowlands part 2 final
- 1. The NEW STS: Advances In Designing Healthy and Innovative Work Systems, Organizations and Networks A workshop sponsored by STS/RT & USI Part Two The STS approach in the Lowlands: Mobilization Human Talent & Productivity 1 Geert van Hootegem Prepared Mind Belgium University of Leuven Pierre van Amelsvoort ST-Groep Netherlands University of Leuven © 2013
- 2. 1. History & Lessons Learned 2. Theoretical Frame: Interaction Network 3. Two sides of the same coin: Quality of working life = Mobilization of Human Talent & Quality of organizations 4. Concepts: Organisational regimes & Design Principles 5. HOW: Design rules & Change Process Session Overview 2
- 3. 3 History – after Durham (‘60-’70) 3
- 4. 4 Work structuring and humanizing the workplace Bottom up experiments with job design on department level Ideological started by department head (pioneers) Supported by academic action research Focus on quality of working life (job satisfaction) Despite success, lack of sustainability! History – after Durham (‘60-’70)
- 5. Lack of SustainabilityLessons Learned: Lack of Diffusion 5
- 6. Lessons Learned: Lack of Diffusion • Lack of active support management and focus on short term success • Isolated: limited design room • Bottom up is not enough (neglected law of Newton)! • Finite focus on quality of working life • (Hidden) Resistance hierarchical levels and support staff • Ideological clash ‘soft’ <> ‘hard’ • No strategic business need to fundamental change • Limited theoretical back bone: try and error, depend on enthusiastic consultants 6
- 7. Evolution of Sociotechnical Systems Three Waves Wave One: 1950’s- 1970’s Wave Three: 1990’s-Present Wave Two: 1970’s- 1990’s
- 8. Theoretical Foundations: Lowlands Approach 8
- 9. Theoretical Foundations: Lowlands Approach Prime = understanding, intervening & predicting organizational behavior Ulbo de Sitter’s (1930-2010) Interaction network theory W. Ross Ashby’s (1903-1972) Law of requisite variety (only variety beats variety) Niklas Luhmann’s (1927-1998) Social system theory (complexity reduction) De Sitter’s “toward new factories and offices” (1982): -Jump job design to organization design -Ideological clash >> theoretical logic: fruitful dialogue and common language -Enrich ODevelopment theory (finite attention to develop human competence) with ODesign theory: OD2 9
- 10. 10 Social systems theory Social systems are systems of communication to interact Membership with formal expectations and arrangements A system is defined by a boundary between itself and its (infinite complex and chaotic) environment The internal system is selecting only limited amount of external information The criterion for selection is meaning (sense making) Social systems are autopoietically closed: Filtering and processing of external information, Selective in adapting! on what is considered meaningful and what is not 10
- 11. 11 Job satisfaction = quality of working life! Age 30 35 40 Jobsatisfaction + - 70-80% are satisfied Irrespective of culture, country, and job characteristics! Satisfaction is an indicator for acceptance given working conditions Subjective approach: All people share the same basic needs? Acceptance of current situation is not an easy start to change (readiness for change) Discovery conflict expetations and reality Acceptance reality Switch from intrinsic to extrinsic motivation 11
- 12. 12 quality control customer family work stationteamleader work station customer customer planning intersection Work as an intersection of job demand and interaction A dynamic, objective view Human beings develops needs, motivation and orientation in interaction with his social environment A balanced interaction network is also a productive network 12
- 13. intersection internal interaction partners external interaction partners F = family F Result of task division Ideal situation: perfect balance (incl. work-life balance)and no waste All material, information and means on the right place, quality and time Match demand and limited means No disturbance Only one problem: Ideal situation doesn’t exist: interference Working as an interaction network 13
- 14. Job demand – job control (regulation) (Karasek) 14 Real life networks interference (job demand) Uncertaincy Lack of (insufficient) material, information , right people and means Unbalance demand and capacity Competitive, conflicting demands Changing demand Custom made demand Human errors Technical disturbance Interference risk is a result of complexity Job control to cope with interference: Productive work Active, challenging work Job demand Job control 14
- 15. Job demand need Job control 15 Internal operational job control Task variety Authority-decision latitude Craftsmanship Access to flexible means Information Meaningful purpose, shared direction External operational job control Coordination/deliberations Support team and community Appreciative feedback leader Natural feedback Influence Strategic job control Participation & co-creation: design for reducing interference risk and decrease inference sensibility Learning and continuous improvement Job demand Job control 15
- 16. Jobcontrol Job demandslow high learning opportunitiesunder-loaded work challenging work over-loaded work boring work stress risks highlow Low strain work challenging work High strain work Passive, boring work Quality of working life 16 (Karasek) 16
- 17. 17 (illegal) Work arrounds Buffers and hidden waste Focus on self interest Safety risks Work-life imbalance Early mental retirement Bullwhip effect Lack of Job Control 17
- 18. 11,5 4,5 7 low high Job demand Jobcontrol Passive work Low strain work Active work High strain work high Quality of working life and absenteeism 18
- 19. Regulationcapacity lowhigh m anaging director production m anager departm ent head supervisor forem an operator traditional utilisation of potential unused potential available potential Quality of working life 19
- 20. 20 Quality of working and healthy aging Malta Denmark Sweden Finland Slovenië Austria United Kingdom Hungary Belgium Luxembourg Netherlands Germany Ireland Cyprus Estland Romania Greece Italie Czechia Spain Portugal Poland France Lithuania Latvia Slovakia Bulgaria
- 21. Design and quality of organisation(al) health organization design division executing tasks (PS) separation execute – control (CS) complex interaction network need for central control & standards high interference risk high interference sensibility Unability to cope with interference at the source 21
- 22. 22 Quality of organization Businessdemand uncertaincy Effective control (regulation) Static central control Dynamic local (distributed) control Stressed organisation Organised anarchy Classic bureaucracy High:custom made Low:repetitive production Productive, humane organisation 22
- 23. Business demand as starting point Efficiency Efficiency Quality + Flexibility + Flexibility Flexibility Innovation + Service Sustainability + Innovation Quality Quality Quality 1960 1970 1980 1990 2000 Efficiency Efficienc y Efficiency 2010 War on talent + 23
- 24. Price Bureaucratic Regime Product variationlow high Uncertainty lowhigh Price + Quality Quality driven Regime Price + Quality + Flexibility and time Flexible Regime Price + Quality + Flexibility and time + Product / service innovation Network Regime In search of the most effective regime labour market policies sustainability 24
- 25. Interaction network culture people structure systems A whole system approach: Organisational regime government market technology competitors employer representatives trade unions strategy 25
- 26. Bureaucratic regime Principle 1 Simplification Division of work processes into small taks 26
- 27. Principle 2 Separation of thinking and doing Bureaucratic regime 27
- 28. Principle 3 Command and control tree Bureaucratic regime 28
- 30. Functional concentration of activities & central control illusion Every department is confronted with total variety and lack of customer focus Departmental focus on control utilization of means Only at central level total overview and illusion of control 30
- 31. Principle 4 Control by strict rules and procedures Sorry, It’s not on my work instruction You must a 237/654/9B/654M form sent to department 39 Bureaucratic regime 31
- 32. Detailed rules & procedures Strictly budget driven Simple jobs Narrow tasks Closed supervision Specialised tasks Separate think - do Command and control Central decision making Focus on hierarchical authority Power based Top down Structure Culture Systems People Bureaucratic regime 32
- 33. Structure Culture Systems People Horizontal coordination and meetings Quality Circles On line process control Quality circles Less hierarchical Reduced power distance Integration quality control Problem solving skills Consulting meetings Quality driven regime 33
- 35. 35 Quality Evidence/Effectbased Custommade Costcutting New laws Market driven uncertaincy Flexibiluty Responsibily riscmanagement Innovation speed International competion technology 35
- 36. Stressed organisation: Functional concentration of activities & central control illusion 36
- 37. Effects………. Moeizame communicatie Slow and high cost communication lines…….. 37
- 38. Effects………. Complex workflows and a meetings, meetings…………. Expensive overhead 38
- 41. Oh, no… they produced it as I designed it……… Effects………. 41
- 42. Effects………. Control illusion and fingerpointing with hidden elbow room and work arounds……. 42
- 43. Silo’s: long troughput times Effects………. 43
- 44. Take away responsibilties and simple jobs Powerlessness Alienation Distrust Helplessness Early mental retirement Effects………. 44
- 45. Businessdemand Effective control Static central control Dynamic local control Stressed organisation Productive, humane organisation Organised anarchy Classic bureaucracy highlow Stressed organisation 45 Complex/lack of communication Untransparent credits and cost Isolated silo’s and hidden waste Slow responsiveness and long throughput times Risk avoiding culture and internal focus High coordination cost (management) Disconnection management and employees Focus on exploitation & Neglect exploration and innovation Unhealthy high strain work and work-life imbalance 45
- 46. 46 46
- 47. Businessdemand Effective control Static central control Dynamic local control Stressed organisation Productive, humane organisation Organised anarchy Classic bureaucracy highlow 47 1. Focus on first effectiveness second efficiency: added value 2. Respect diversity and reduction of complexity: a) Focus on custom families (product, market, technology combinations) in stead of task specialization (reduce variety subsystem) b) Reduce number of transfer points (interference risk) 3. Human scale: a) Work teams 8 – 12 b) Working communities 40 c) Strategic units 200 4. Self organisation: Increase local control and support and healthy hierachy: horizontal coordination and reduce number of hierarchical layers (decrease interference sensibility) with specific added value 5. Minimal critical specification based on trust and craftsmanship 6. Aligned systems (planning and control, HR practice, technology) 7. Result only work environment 8. Human talent mobilization 9. Direct democracy: Strategic participation/partnership and co- creation Design principles 47
- 48. Mmmmmh… complexity… “sooo delicious!?” 48
- 49. Focus on customer family, market & technology combination 49
- 50. Reduced organisational complexity: Conditions for local control The variety of the whole system stays the same. Every unit is confronted with less variety and has customer focus: emotional connection and human feedback mechnanism Departmental focus on control customer flow Local overview and control 50
- 51. Flexible regime Structure Culture Small units with a whole task Decentralised control Small central control staff Cross functional teams Systems Just in time Result driven: mutual goal setting Flexible work arrangements Focus on business process Management and staff: support and facilitate Trust based control People Multi skilled Self management Teamwork 51
- 52. Network regime Structure Culture Mini companies Temporarily structures Networking Strategic partnering Systems Focus on time to market People Custom oriented people = business partner Stake holder involvement Broad competences Human capital Entrepreneurs Participation in strategic issues 52
- 53. Customer focussed Human talent is seen as business capital High involvement Partnership Speeding up product innovation process Mini companies Temporal structures Networking Price Quality Flexibility Product innovation Transformation process is leading Managers and staff dept. have a supporting and facilitating role Multi-skilling Teamwork Self management Just in time Minimal specification Local differentiation Result driven Business line oriented Small units with a whole task and decentralised control Price Quality Flexibility CulturePeopleSystemsStructureBusiness demands 53
- 54. Culture Focus on hierarchical authority Power based: Command and control Less hierarchical Reduced power distance Transformation process is leading Managers and staff dept. have a supporting and facilitating role Customer focussed Human talent is seen as business capital People Narrow tasks Simple and routine work Integration of quality control Group meetings Quality awareness Multi-skilling Teamwork Self management High involvement Partnership Systems Detailed rules and procedures Budget driven Quality circles Statistical process control Just in time Minimal specification Local differentiation Result driven Speeding up product innovation process Structure Specialisation Division of labour Horizontal meetings Business line oriented Small units with a whole task and decentralised control Mini companies Temporal structures Networking Business demands Price Price Quality Hierarchy Price Quality Flexibility Price Quality Flexibility Product innovation Bridging the gap: example 54
- 55. people culture structure systems Ontwerpen & ontwikkelen Guiding principles & leadership Strategic choices Organisational behaviour viabilityproductivity involvement Managementofchange Conservatingmechanism An integral approach Quality of organisation Quality of working relations Quality of working life 55
- 56. Price Bureaucratic Regime Product variationlow high Uncertainty lowhigh Price + Quality Quality driven Regime Price + Quality + Flexibility and time Flexible Regime Price + Quality + Flexibility and time + Product / service innovation Network Regime In search of the most effective regime labour market policies sustainability 56
- 57. Design sequence rules: PCS From the whole to the parts + macro structure macro structure meso structure micro structure micro structure meso structure ‘production’structure Controlstructure From the parts to the w hole (Information)systems Mission vision goals strategy guiding principles Organisation design 1 2 3 4 5 57
- 58. IV Realising I (explore/ discovering) Diagnosing Common Awareness III Designing Co-creation Ownership II (Imaging) Visioning Shared Direction Dialogue Self organisation Co-creation Education Change as a non-lineair cycle process 58
- 59. Characteristics of change proces Every change process is unique Mixed interventions Design teams Large scale conferences Support self organization and co- creation In-company training and education Open education Iterative approach Mix top down and bottom up Create a common vision, awareness and readiness to change Strategic design: design team of key positions with consultation whole system Operational design: (emergent) co- creation of involved stakeholders 5959
- 60. 1. What have you learned? 2. What is common with the traditional approach (part 1) 3. What are the differences? 4. Futher questions or remarks Dialogue in small groups 60
- 61. Original STS Lowlands Lowlands Approach Context Efficiency Repetitive manufacturing Surplus labor market Efficiency, quality, flexibility, innovation Custom made (knowledge work) Future war on talent/ healthy aging; shortage labor market Objective Humanization of work Business demand: Quality of working life Quality of organisation(al) health Quality of working relations Subject Job design (micro level) Organisation design and designing Concepts Open Systems Joint optimalisation social & technical system Bottom up change Design and change as a strategic competing (meaningful-sense making) factor Division of labor: twin structure concept (production & control structure) Education for self organization, co-creation, top-down and bottom-up Summary 61
Editor's Notes
- Quality of working life is in modern configurations an important issue. In traditional organisations unused potential had lead to lack of involvement. In the flexible and network organisations taks variety and regulation capacity are of great importance to cope with the business demands and to improve quality of working life.
- Untill now I only have looked from a business point of view. The reality is more complex, because we alsoo have to deal with labourmarket issues, policies. I hope it is clear that the different strategic choices different organisation models requires. The are 4 different configurations, I wil shar with you: 1234 The changing demands and change of configurations requires workplace innovation, in terms of renewal and development. An other important remark is that not all the different business lines have the same time table. For instance… It is a danger to speak as a fad or mode about productinnovation as the reality for instance just begin with phase 3!
- In stead of a one sided approach workplace innovation need an integral approach of the interpendent domensions as 1234. The different configuration can now be descriped in this four perspectives.
- These principles have had consequences for both the culture and people. The culture can be recognised in the habit that people are looking to their boss and copying his behaviour. The position in the chrismas tree is important, and not what you are doing. A lot of symbols reinforce this power based culture. The space of an office, number of windows and the cloths you supposed to wear. People have simple jobs with narow tasks and they perform their jobs with close supervision. There is a lot of criticism about the Tayloristic configuration, but we have to realise that this model has brought us an enormous growth of productivity!! So don’t trow it away to easily. Technics like time and motion studies could still be of great value in the back offices of public services with a mass production business line
- In the quality drive organisation in fact the structure does not change a lot, but to garantee quality the different element of the chain should be in right balance. This is done by meetings and meetings…. People in the workplacesses are involved by quality circles for solving problems. The have learned to analyse and improve the processes. On line process conrol systems are in place to monitor and manage the quality aspects. Also the culture is changed a bit. You may use the frontname of you boss when you speak to eachother. You can also say that the power distance has become smaller. In the job of people we see the integration of the quality control tasks. Employees have regular consulting meetings and are well trained in problemsolving skills.
- What happens if an organisation as mentioned before has also to cope with flexibility and time pressure? We can predict to regconise the following botlle necks…..
- The first field of trouble is the slow or difficult communication. This is a symptom of the internal complexity. To get things done you need 5 to 10 people. People from different departments with different perspectives. You all know the joke if ….
- The complexity is produced by the architecture of our organisations and the choices we once have made in divide the activities in the workflow.
- Everbody is working very hard to do their job. But the weak point of the chain can be found between the elements. In organisations unther pressure people tend to fall back in their own team or department. And the law of reducing your own missery occur… This law teach us that to survive in case of trouble you have to report at last as 10 reason why that problems isnt yours but the problem of an other department.
- This slide say enough about the innovationpower….
- In the end their is always a solution the BOSS who is working 60 – 80 hours per week and already has two suite cases for all the reports
- A succesfull strategy to reduce the need for cooperation is building in silo’s. this strategy effects in long throughput times. Products or dossiers are more waiting in a que than inproduction…
- The lack of regulation capacity and small simple jobs has consequences for peoples behaviour. Taking away the responsibilities of employees resulted in …..
- In the flexible configuration the business line is the base for the organisational building blocks. The building blocks are small units with a whole task in stead of task division. Decentralised conrol is implemented and only a small control staff remained central. Coordination and control take place by cross functional teams. The systems can be characterised by…. These organistions have a culture where everybody is focussed on the whole business line and management en staff support and facilitate the productione processes. The people are multi-skilled, work in self management teams
- In the network coonfiguration mini companies and external partners work together in temporarily structures. The structure as control mechanismn is less powerfull and culture is more and more important to create a whole system in which people are seen as a business partner. Stake holders are involved in the important decision making processes. Employees have developped broad competences and participate in strategic issues. They are the human capital and act as entrepreneurs.
- The challenge for innovation the workplace is bridging the gap on 4 pillars people, culture, structure and systems. These 4 pillars are connected together in a metaphor with a robe. We call this an integral approach. A one sided approach will not give the desired results and will give tension on the robe. To get al real innovation of the workplace a transition on all the pillars is need to get results on productivity, involvement and viability. And off course is the length of the gap based on strategic choice which is made on the current and future market demands. Bridging the gap is not only a process of developing organisation concepts, but also a process of change. Rethinking and implementing new organisation concepts, needs also rethinking the strategy of change management.
- Untill now I only have looked from a business point of view. The reality is more complex, because we alsoo have to deal with labourmarket issues, policies. I hope it is clear that the different strategic choices different organisation models requires. The are 4 different configurations, I wil shar with you: 1234 The changing demands and change of configurations requires workplace innovation, in terms of renewal and development. An other important remark is that not all the different business lines have the same time table. For instance… It is a danger to speak as a fad or mode about productinnovation as the reality for instance just begin with phase 3!