Performance Leadership Paschane Aplin 2011

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PASS Methods Pertaining to the Theory on Performance Leadership

PASS Methods Pertaining to the Theory on Performance Leadership

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  • 1. Performance Leadership David M. Paschane, Ph.D. Affiliations: Associate Research Professor University of Maryland (UMBC) Principal Consultant APLIN Science and Technology Accepted to the 2012 Workshop on Information and Organizational Architecture, Interdisciplinary Center for Organizational Architecture, Aarhus University, Denmark This paper includes updates to technical details for the implementation of PerformanceArchitectural Science Systems (PASS). PASS is an integrated science and technology discipline for facilitating recursive testing of performance analytics that fit performance leadership and organizational architecture designs through light, agile technology configurations. United States: 202-256-5763, Paschane.Aplin@gmail.com© 2011 David M. Paschane, APLIN Page 1
  • 2. Performance Leadership David M. Paschane, Ph.D. While most organizations have managers for routine activities, and some have leaders for future initiatives, few have leaders for lasting performance capabilities. Such leadership is difficult to nurture and sustain because it is a human skill, herein called “performance leadership,” integrated with the design of organizational architecture. If either the leader or the design are unable to keep pace with the conditions driving change in or about the organization, both can languish; and, if the organization cannot adapt, its alternative actions may reinforce systemic problems in employees or organizational capabilities as a whole. Nearly all the business consulting, literature, and “solutions” in the market of ideas address some component of the difficulty in developing and sustaining performance leadership as an embedded and potentially wide-spread capability.1 The desired capability is one that facilitates employees maturing their skills, the organization adapting to change, and both the employees and the organization managing performance in a dynamic context. Herein, I draw from the experience of studying organizational performance in one of the largest most entrenched bureaucracies, and examine the strengths and weaknesses of disparate methods under various kinds of leadership, where many well-intentioned employees and consultants have applied the market of management ideas and have failed to sustain a lasting change in performance leadership. Instead, cycles of management surges, effective or not, have fallen victim to the powers of bureaucratic culture and structure. Academically, I integrate scientific methods applied to human behavior, organizational development, and system dynamics. The results are a prescribed set of simple scientific methods, called Performance Architectural Science Systems (PASS). I have presented PASS to several groups in the U.S. Federal1 Brickley JA, Smith CW, Zimmerman JL. (1997). Management Fads and Organizational Architecture. Journal ofApplied Corporate Finance, 10(2) 24-39.© 2011 David M. Paschane, APLIN Page 2
  • 3. government, and international colleagues who participate in an online forum called Better Government. While PASS comes from government experiences, it is applicable to any large organization that needs to institutionalize performance leadership, but is constrained by the inevitable and inherited bureaucracy that causes leaders to deliver less than they hoped for in organizational improvement. Performance leadership is a common organizational need. It is also relevant to human development, especially when individuals volunteer to join a group to cause an outcome. Its components include the individual’s commitment to understand organizational performance, the motivation to develop skills that align to organizational goals, and the choice to pursue performance improvement. When we see successful organizations in sports, civics, and business, we also see those who provide performance leadership—those with “skin in the game.” It is not just their dedication that causes the “wins,” it is the dedication of the organization to their performance leadership. The goal of this paper is to look at performance leadership from the point of employees’ inner work life, their internalized attitude and effort, and work out towards the organizational architecture, including the purposeful design of strategy and structure. The intention of the PASS methods is to outline a means of measuring, testing, and experimenting with operational designs that enhance performance, sustain capabilities, and effectively respond to internal and external dynamics. The approach allows leaders of large, complex organizations to manage comprehensive and reliable means of influencing the short and long- term performance in employees and the total organization. In addition to the applied science in PASS, this paper looks at the value of integrating advanced media and agile technology to reinforce the development of performance leadership as it interacts with the organizational architecture. The benefits include distributed intelligence and operational innovation among employees, as well as more organic rather than codified work environments. In total, the organization moves steadily towards becoming a light enterprise and systematically reduces the heavy bureaucracy that has limited its achievements.© 2011 David M. Paschane, APLIN Page 3
  • 4. Performance Leadership David M. Paschane, Ph.D.Performance leadership places employees’ emerging capabilities at the center of organizationalachievement.It is a deliberate response to the natural entropy of large organizations, where operationalcomplexity and the internal2 and external3 drivers of change persistently decay organizationalcapabilities. The typical response to the entropy is increased bureaucratic controls; which inturn, reduce employee-based awareness and inject “systemic organizational weaknesses bycreating subtle sabotage through the resistance of employees that believe they are powerlessin the bureaucracy that manages them.”4The common alternative to bureaucratization5 is to adopt the latest business management fads,despite the evidence that these are insufficient, have poor return on investment, and in somecases produce unwanted consequences;6 including inefficiency, ineffectiveness, and perhapsmost hazardous—demoralization of employees who feel bounded to operational distortionsbecause of misplaced efforts by executives.In contrast to the risks imposed by bureaucratic controls and management fads, performanceleadership development addresses the core of the organization, the employees. By maturingperformance leadership, the organization gains a distributed source of performancemanagement. The capabilities include distributed operational intelligence and countless touchpoints on the conditions affecting total cost and performance. Because performance leadershipreinforces the permission and discretion to improve operations, employees shift their attentionto the long-term, high-rigor means of adding value, even if these are small improvements inroutine tasks. Employees no longer see themselves as a “cog-in-the-wheel,” rather they are2 Common internal drivers of organizational change include missing expertise, emerging expertise, rule changes,quality of work life, staff shortages, new staff, staff exodus, self-management, miss-fitted management, processambiguity, process choke points, and disjointed communications.3 Common external drivers of organizational change include increased customers, customer ambivalence,increased demands, divergent demands, product diversity, market diversity, diffused locations, miss-fittedservices, laggard services, austere budget reviews, contextual dependencies, and mission shifts.4 Kanter, RM. (2010). Powerlessness corrupts. Harvard Business Review, July-August.5 Paschane DM. (2003). A Theoretical Framework for the Medical Geography of Health Service Politics.Dissertation, University of Washington.6 Brickley JA, Smith CW, Zimmerman JL. (1997). Management Fads and Organizational Architecture. Journal ofApplied Corporate Finance, 10(2) 24-39.© 2011 David M. Paschane, APLIN Page 4
  • 5. emerging leaders who have become their own best performance analysts. They know why thework they do is efficient, effective, and causing desired outcomes. Performance leadership is itsown value multiplier. Employees become recognized experts, and as a result, want to pass theexpertise to others who share their passion for affecting, changing, and sustainingorganizational achievements.The responsibility for developing performance leadership lies with the executive management.This paper outlines how executives can lead an adaptive discipline for comprehensive andreliable maturing of performance leaders, and integrate the employee-based capabilities intothe organizational architecture and strategy.As a discipline for scientific and technological methods, Performance Architectural ScienceSystems (PASS) organizes methods that develop and sustain performance leadership amongemployees. PASS is comprehensive in its scope and flexible enough to fit organizations’ existingoperations. It offers many entry points for implementation, which allows organizations toprioritize their targets for maturing most-needed capabilities.PASS implementation has two major operations. The operation that focuses on the individualemployee developing performance leadership is the Advanced Media Program (AMP). The AMPdelivers the messages and experiences that influence both the employees’ inner work life andtheir expert development. The operation that coordinates performance leadership through andamong executives and the total organization is the Performance Analytics Operation (PAO). ThePAO facilitates the analytic methods that inform the AMP design, diagnose performanceoutcomes, define requirements for the organizational architecture, and organize the content inmanagement guidance, such as concept of operations, performance reports, and strategicplans.The PASS goal is to embed pervasive analytics into the operational structure. This helps preventthe unwanted tendency of organizations ignoring conditions that affect performance, now andin the future. By embedding analytics the organization can pursue long-term, sustainable, net-value achievements based on employees’ emerging capabilities; rather than situational, high-cost, short-term wins. Meanwhile, employees benefit from the cultural effects of embedded© 2011 David M. Paschane, APLIN Page 5
  • 6. analytics—they work towards numerous localized achievements while developing theirpersonal, career-enhancing capabilities.Advanced Media ProgramThe AMP is fundamental to the emergence of performance leadership. It has the responsibilityof affecting complex aspects of how employees understand their commitments, motivations,and choices within organizational goals.Operationally, an AMP creates, manages, and tests messages in multiple formats to affect howemployees’ think about and respond to calls to action. This is a highly valuable and efficientmeans of management. It broadly distributes the outcome-oriented messages that reinforceemployee behavior, while reducing the need to increase managerial layers.The AMP includes the use of multiple channels to deliver messages through videos, graphics,audios, scripts, and photos that affect expectations, affinity, curiosity, commitments, andactions in employees. The internal analyses ensure the messages are dynamically fitting theuniqueness of employee’s interests and roles. Employees are constantly stimulated in ideasthat affect performance leadership.An AMP is largely a training capability. The training achieves four objectives. First, employeeslearn the policies of the organization for developing performance leadership. The policiesdefine and clarify when the organization controls structure and when employees havediscretion to lead performance discovery and improvement. Because of the nature ofperformance improvement, the policies change as the organizational architecture andperformance leadership matures.Second, employees learn the analytic skills and practices for managing their own developmentof performance leadership, and have the opportunity to engage peers in a community ofemerging performance leaders who leverage on-the-job training to advance their careers.Third, the training helps employees internalize messages—ones that they cognitively repeat tothemselves, and as a result, sustain their motivation, focus, and creativity. The internalizationaffects the inner work life of employees and how they interact with each other.© 2011 David M. Paschane, APLIN Page 6
  • 7. Fourth, the training prepares employees for becoming emerging leaders by focusing on howthey are achieving the vision of the organization, changing its operations, and producing betteroutcomes.Because of the online, data-driven dynamics of an AMP, the progress of individual developmentcan support a robust succession plan. Notable progress in performance leadership training canbe further developed with personalized coaching. The intention of the coaching-based training7is to reinforce the emerging performance leader with an awareness of how PASS preparesexecutive management, and leads to a light enterprise.A contemporary example of light enterprise is the executive leadership of Steve Jobs (AppleInc.). Mr. Jobs created an environment where technology, expertise, and analytics drive a visionof better work and coordination, and advanced media influences the strategy and structure oforganizational success. Examples such as these can be instrumental in coaching executive-levelcapabilities in performance leadership. Building on such training, the AMP is responsible forpositively affecting the foundational processes in the inner work life of employees, and thedevelopment of in-house expertise.Inner Work LifeOrganizations are collections of people—individuals who have an inner work lives. The innerwork life is a complex set of processes affecting how individuals understand themselves andinteract with others. While most of the inner work life is hidden, a great deal is revealedthrough patterns in behavior, which ultimately affect work, performance, and the success ofthe organization. The following diagram represents the complexity of the inner work life.7 For an example of content that fits coaching in performance leadership, see McGoff, C. (2011). The Primes.Victory Publishers (ISBN: 192992125X).© 2011 David M. Paschane, APLIN Page 7
  • 8. The triangles represent a whole person with unique expressions, or touch points, where theindividual’s work life behaviorally impacts others.The top triangle represents Expertise, or how one presents value to the organization. It setspersonal expectations for needs of control, esteem, and security; and, as the expertise isdefined and accepted by others, these inner processes are reinforced. If the expertise is wellaligned to the organization, control, esteem, and security are healthy, effective, and supportiveof others in the organization.The left triangle represents Commitment to others in the organization—it aligns one’semotions, thinking, and stories to the collective goal. Commitment from the inner work life isan affinity with others that is repeated to one’s self, and helps sustain the other processes.The triangle on the right is the inner work life that manifests as Integrity. It is the effort onemakes to ensure that plans, actions, and messages lead to an outcome consistent withpromises to the organization, explicit or not.Taken together, the expertise justifies the individual being in the organization, the commitmentaligns the individual’s dedication to the organization, and the integrity aligns the individual tofulfilling calls to action. The inner space is not labeled—it is aspects of the individual that arehidden from external interactions.Meanwhile, evidence of expertise, commitment, and integrity can be observed and measured.They are touch points that affect the organization. The inner work life is foundational toperformance leadership. It is not a one-time agreement at the time of hiring an employee; it iscontinually reinforced by processes in and about the organization.Expert DevelopmentCentral to PASS is the availability of in-house expertise through performance leadership. TheAMP is responsible for managing expert development through a focus on training employees inthe adoption of personal analytic practices that lead to sustainable operational capabilities. Thediagram below illustrates the training objectives of the AMP.© 2011 David M. Paschane, APLIN Page 8
  • 9. The analytic practices include reviewing, documenting, and assessing the effectiveness offormal transactions and informal interactions in a work environment, and monitoring signalsand discovering patterns in performance trends.Formal transactions include work that is completed and handed off to others, work that ends soanother employee can start working on a separate component, or work that is meant to collectand integrate the work of others. The purpose of formal interactions is to limit confusion aboutwork flow; however, the transactions can have unnecessary rigidity that slows performance, oreven undermines the quality of work.The informal interactions are the role-like practices8 that employees adopt to establish andreinforce how they work with others. These roles can become over-emphasized and ineffectivebecause they discourage performance leadership by limiting employees’ attention to the workthat fits their perceived role. The informal role can lessen one’s sense of responsibility for theorganizational whole, and ultimately interfere with the maturity of overall capabilities.Fundamental to PASS is movement away from these self-limiting roles.The AMP also reinforces the analytic practices of recognizing the signals of change inperformance, and discovering work patterns causing performance trends over time. These areskills that can start with basic observation and analyses of irregular performance. The employeedoes not necessarily need official data to recognize irregularities and explore ways of explainingthese through observed patterns in work flow or other operations. All the same, this is an areawhere the employee training can be reinforced with the use of technological applications andplatforms that help monitor performance—assuming these are configured for recursive,adaptive, learning-oriented analytic practices—a trademark of PASS.8 Informal roles include the beggar, caller, cheerleader, consumer, counter, dealer, dictator, dispatcher,documenter, dreamer, driller, dumper, hoarder, inventor, juggler, leader, orator, orchestrator, racer, regulator,reviewer, sculptor, spectator, weightlifter, and writer.© 2011 David M. Paschane, APLIN Page 9
  • 10. Through repetition and dynamic messaging, the four analytic practices eventually become skillsof the in-house expert. They can be specific to a technical area, or generalized to any operation.Besides the expertise, they lead to four sustainable operational capabilities that can be long-term strengths of any organization.First, employees become aware of causality9 in its natural setting. This helps employees learnanalytic practices in familiar operations, and can help motivate their sense of ownership of theoutcomes they produce. Second, regular development of analytic practices can help employeestransfer knowledge to other employees. They gain a detailed knowledge of what goes into thework and what aspects of the work are most important to understand and manage. Third,employees define workload capacity and develop a personal interest in how they can adoptefficient practices—they work smarter and get more out of their effort. Fourth, the value ofwork is sustained because only essential inputs get used, as these deliver the most output.These skills in analytic practices encourage employees to have a stake in understanding andmaximizing value for the organization.The PASS methods for developing in-house experts are simple and measurable. The attention ison impacting maturity of emerging capabilities. It is organized by operational levels andmanagerial functions, as illustrated in the following table. Managerial FunctionsOperational Levels Workflow Workforce Policy Change CommunicationPrimarySecondaryTertiaryThe work environment, regardless of organizational size, is a set of managerial functions thatare applied to a technical operation.To develop in-house experts, the operations are reviewed, documented, and assessed byemployees who are assessing specific managerial functions, namely workflow, workforce,policy, change, and communications, as applied to an operation.9 A limitation for nearly every organization is the management of performance when causality is poorlyunderstood. Too often, managers assume causes of outcomes are well known, causal pathways are easilyunderstood once identified, and awareness of causality is sustained in useful ways once it is articulated.© 2011 David M. Paschane, APLIN Page 10
  • 11. Workflow is the study of how work gets done formally or informally. Workforce is the study ofwho is needed to achieve the work and how to engage them. Policy is the study of the rulesthat direct the work now and in the future. Change is the study of how new actions, events, orrequirements impact the work. Communication is the study of how information is captured,organized, disseminated, and valued internally and externally. In each case, the goal is to studyrather than establish or standardize, as the results can be documented and reused in follow-onmethods. Meanwhile, employees gain knowledge of specific managerial functions.As illustrated in the table, expert development focuses on three operational levels: Primary,secondary, and tertiary.The primary level is that of the individual employee. It is what is feasible for one person, giventhe limitations on available time and operational perspective. The primary level focuses on theorganization in which the individual works, or on personal work as it affects the organization. Inthe latter, specialized applications10 can be used to capture trends in work performance,including decisions, timing, dependencies, effort, readiness, and self-ratings of changes inquality or learning. The AMP can ensure that the primary level of analytic practices is effectivefor training, and not distracting employees from their regular work duties.The secondary operational level for applying analytic practices to managerial functions is theMethod Enhancement Team (MET). The MET is a chartered, limited-duration group that has theresponsibility of studying a managerial function with the intention of preparing the organizationfor routine, more formalized application of analytic practices. The MET would be required toprepare a summary of the analyses and their contribution to the operational capabilities. Thework may result in a set of requirements for configuring and installing a continuousimprovement platform that visually represents the analytic practices based on real-timeinformation. A follow-on assignment may be to have the MET use the platform in recursiveanalyses11, and improve its interpretation of and integration of managerial functions.The MET provides a repeatable opportunity to train new employees in an operation, trainemerging leaders in managerial aspects of the organization, and transfer knowledge from amore experienced employee to the group. Employees who deliver new analytic capability to the10 An example is the use of the Technical Optimization Application in mobile devices to help technicians whoprovide desk-side technology support to their colleagues in business operations. The technician uses theapplication to monitor, trend, and discover their personal performance and how it compares to peers.11 While many organizations will acquire some form of assessment to understand the inner working of a majorfunction, they rarely translate the findings into recursive analyses that can be readily used and modified tomaintain performance analytics. In cases where the assessment is contracted out to a third party, the requirementshould be to prepare parameters for future monitoring according to the initial assessment.© 2011 David M. Paschane, APLIN Page 11
  • 12. organization through the MET12 should be recognized and awarded to encourage theircontinual interest in performance leadership.The tertiary operational level is the long-term MET, which is responsible for the governance ofperformance data, development of evidence-based work plans to change operations, and theroutine communication of performance and plans in visual formats. The tertiary-level MET isinstrumental in sustaining information that affects executive levels, including the developmentof platforms that have bearing on complicated decisions and negotiations.13In each operational level, primary, secondary, and tertiary, there is an opportunity to integrateand cross-references the analytic practices and the resulting operational capabilities. In somecases, organizations may want to use members of METs as experts in a managerial function,such as one person responsible for leading the study of communications across METS.Meanwhile, the AMP reinforces messages about METs progress, and helps sustain the interestand motivation of employees, train their analytic skills, and mature their performanceleadership. The AMP ensures that employees have the necessary “skin in the game” forsustaining the organizations’ in-house expertise for performance capabilities.As it relates to in-house expertise, the maturity curve for performance leadership is illustratedbelow.12 The level of effort of each employee in a MET is 5% to 10% of their full time work.13 An example is the Green IT Model Performance Architecture (see SPARC LLC) that captured extensive energydata from employees’ use and facility operations to provide real-time analyses of cost drivers, and easily identifyopportunities to limit costs through negotiated changes in policies and practices.© 2011 David M. Paschane, APLIN Page 12
  • 13. The curve begins with employees developing awareness of functions and how they operate.Over time and with greater participation, employees develop skills for performance monitoring,and through the use of embedded analytics they make rapid diagnoses of performance trendsand possible forecasts.Eventually, the employees become experts in the total cost and causality of outcomes. Theybecome sensitive to the net value of work so they are able to discount the perceivedachievements by the realistic estimates of unwanted consequences, such as unexpected costsor effects. In total, the maturity of performance leadership is a highly valuable, dispersedcapability of the organization, which leads to reliable understanding of the past work, androbust capability for creating the future organization.The transition from expert development in employees to sustained capabilities in theorganization is a matter of design, through the organizational architecture. The followingsection outlines the role of the Performance Analytics Operation in developing long-lastingorganizational capabilities.Performance Analytics OperationThe application of Performance Architectural Science Systems (PASS) to an organization ispartly about the messaging, training, and experimenting among employees; and, partly aboutthe management of rigorous, organization-wide, embedded analytics in support of executiveleadership. The latter is organized under a Performance Analytics Operation (PAO). The PAOprovides executives the adaptive analytics they need to improve outcomes and organizationalcapabilities by design.The PAO can be instrumental in managing several high-priority activities, including: 1. Evaluating the effectiveness of the AMP, its training, the MET experiences, and the continuous improvement platforms, and recommending changes to designs. 2. Defining requirements for the system integration of platforms to complete integrated performance architectures, drawing from the discovery in model platforms.© 2011 David M. Paschane, APLIN Page 13
  • 14. 3. Identifying weaknesses in the organizational architecture and prescribing initiatives to take corrective actions14 or preparing METs for developing improvement plans. 4. Coordinating methodologists and technologists who collaborate in the engineering of agile configurations of the learning-based analytic information systems. 5. Providing evidence of employees’ needs and accomplishments that inform the development of management guidance, such as strategic plans. 6. Explaining multi-causal conditions affecting performance by drawing from disparate cases, or the patterns that emerge across organizations with similar program goals. 7. Organizing performance credits that attribute achievements to individuals and teams for recognitions and awards, and for the rapid identification of in-house expertise. 8. Preparing organizations for repeatable success by identifying the patterns that have reinforced performance leadership and have reduced risks and unnecessary costs.These are all relevant to the organization’s capacity for performance leadership. Theycharacterize the opportunity executives have to shift their attention from short-term, low-rigorsurge projects to the activities that allow them to develop and sustain performance leadershipamong their employees. It also highlights the need to rethink the meaning of performancemanagement.Performance ManagementToo often, executives think performance management is a dashboard of red, yellow, and greensignals that indicate when a project is off schedule or some other related measure. They willeven go as far as buying an expensive “solution” that promises to automate data feeds andprovide more exciting graphics for monitoring selected metrics. This is not performancemanagement, and it is especially not useful for developing performance leadership.Effective performance management starts with the ability to tell an evidence-based story aboutthe work that is completed, active, and planned. The story needs to demonstrate accountabilitywith the resources previously committed, and show justification for resources requested.14 Corrective actions can include reducing workflow friction, pauses, or requirements; redesign employees’ contactpoints, roles, or training; update agreements in dependent transactions; test alternative policies for workflowmanagement and restrictions; and interpret how formal and informal rules affect work environments.© 2011 David M. Paschane, APLIN Page 14
  • 15. An effective story will build affinity among those who are participating by illustrating the visionfor the work, and clarify the true context and circumstances in which the work is beingcompleted. Technology can be very helpful in telling an effective performance story. Thetechnology should help reveal and illustrate the story while assisting in the rigor, or scientificmethods behind the message.The most important method is the recursive analytics, where the measures are evaluated forhow well they provide useful, testable, and diagnostic information. Did we measure the rightdata at the right time for the purpose of our work? The audience needs to feel confident thatthe performance leader understands the causality in the work, and is willing to adapt the workto the realistic conditions, and manage the discovered factors affecting employees’ work andcausing outcomes.Performance management in PASS builds on the practice of making all work components andcontexts testable by employees. The PAO supports employees’ tests by organizing methods andtechnologies that help mature the analytic skills and activities. The PAO organizes the mobileapplications, continuous improvement platforms, and statistical data structures for employeesto pursue greater understanding of how their work, and tests of work, improves outcomes,including outcomes that vary by customers’ groups and contexts.The PAO manages the use of agile system integration and online user interactivity to optimizethe use of geographic analyses, operations research, performance analytics, customer analytics,decision models, market research, as these are all analytic methods that explain opportunitiesfor employees to improve outcomes. An interesting effect of persistent analytics amongemployees is that the organizational structure becomes more organic than codified—theemployees’ placement and organization is defined more by just-in-time expertise andperformance leadership, rather than bureaucratic controls, power centers, and employee-manager loyalties.The major components of PASS are illustrated below and summarize the integration of scientificand technological methods.© 2011 David M. Paschane, APLIN Page 15
  • 16. The performance component is largely Operations Research (OR) for discovering causes ofoutcomes, including operational friction, and how these can be reused in algorithms of a modelperformance architecture.The architectural component relies on System Itegration (SI) to fit, use, and reuse recursiveanalyses on emerging data. The SI requirements are largely agile configurations andprogramming for leaders to learn as they operate tasks.The science in PASS is primarily the use of visualization and contextualization of intended andunintended causes of outcomes and their variation. These methods are described herein asGeographical Analytics (GA), and they include spatial studies, human geography, geographicinformation systems, and others.15 They are largely used to make strategic inferences about thecontextual conditions that affect outcomes. GA can provide significant insight and is especiallyuseful for large or multi-unit organizations because it easily allows “layered” knowledgewithout full-course data sharing.The systems component of PASS is User Interactivity (UX), where the facilitation of in-houselearning and external customer analyses facilitate behavioral commitment, cognitiveawareness, and intuitive learning. The interaction of these four components gives PASStremendous flexibility for refining analyses that fir the organization’s maturity of performanceleadership.15 GA is also useful in monitoring and explaining the relationships of organizational efforts and the variability that isin customer or constituent demography, expenditure distributions, infrastructural locations, workforce locations,customer utilization, customer outcomes, and jurisdictional alignments.© 2011 David M. Paschane, APLIN Page 16
  • 17. As performance management becomes more adaptive, analytic, and employee-centered, theexecutive leadership can focus on questions that pertain to outcome complexities, such ashuman behavior, organizational development, and system dynamics. Examples of thesequestions are listed below and they require an organization-wide view of performance.Human Behavior: How are employees behaving in different circumstances and contexts? What information triggers employees’ activities and achievements? What behaviors do employees encouraged, allowed, or tolerate, or not?Organizational Development: What official or unofficial roles and rules affect teams or groups? How are formal or informal processes sustained, changed, or overlooked? What self-preservation or resistance to change is tolerated or challenged?System Dynamics: How are interdependent commitments to transactions sustained or broken? What affects the capacity to transform or utilize information and analyses? What drives the constructs or believes reinforcing or changing systemic patterns?The answers to these questions help executives develop performance leaders, sustain analyticcapabilities, and design organizational architectures.Organizational ArchitectureIdeally, an Organizational Architecture (OA) is an intentional design that reinforces performancecapabilities, has measurable components, and is adaptable to changing requirements. An OA isthe structure and practice that organize work among groups of employees and theirinteractions with external groups. Too often the OA is the result of many ad hoc decisions.Because of the lack of broad-view design, these decisions create practices, policies, and rules ofbehavior that tend to be laden with inefficiencies, ineffectiveness, and unnecessary friction orconstraints. The common, pejorative term for this state of OA is “bureaucratic,” where theemphasis is on codified rules and structures to create order with little regard of their effect onthe needs of the organization to adapt to internal and external changes. In contrast, an OA canbe designed to amplify performance leadership. The design may contain the same reporting© 2011 David M. Paschane, APLIN Page 17
  • 18. hierarchies and orderly grouping of work that are characteristic of the bureaucratic model, buttheir effectiveness is by design rather than convention.The continuous redesign of the OA is a major responsibility of the executive, supported by theanalytic work of the PAO, where the goal is to rethink the opportunities to shift knowledge,information, and discretion to the employees for better performance leadership. As notedrecently, “many of the traditional bureaucratic approaches to management need to bediscarded,”16 so we can understand the OA and design it for the development of performanceleadership.To be useful to employees, the OA components must be understandable and lend themselvesto routine measurement. Herein, I use two metaphors to define and communicate the OA andits interrelationships with employees, functions, and structures of the organization.The two metaphors are a Driver and a Car. The Driver components of OA represent theemployee (or contractor) relationships to the organization, and they affect the inner work lifedescribed above. The Car components characterize the structural functions of the organization.In the Driver metaphor, I assume that the individual is a potential performance leader. Therelationship with the organization is based on specific agreements that affect the metaphoricalHeart, Mind, and Body of the Driver.The agreements vary by the experience of the Driver, and these are illustrated below in threelevels. The first level is the novice Driver (earl-career), followed by the advanced Driver (mid-management), and then the expert Driver (executive). The diagram below illustrates the firstmetaphor as it relates to employee experience.16 Lawler E. (2011). Designing High Performance Organizations, Working Paper, University of Southern California.© 2011 David M. Paschane, APLIN Page 18
  • 19. First, the Heart of the Driver is where the individual makes a connection to the Car because ofits unique experience and the continual reinforcement of the driving experience. The Heartrepresents the agreement the individual has with the organization, in terms of the discretion tolearn, plan, and change the work environment—to “own” it. The discretion-control policy of theorganization defines the scope of these agreements and how they change over the course ofthe employee’s development and the maturity of organizational capabilities.In the novice Driver, this is the individual discovery of what can be improved and how theorganization allows for such improvements. For the advanced Driver, the agreements are basedon the chartered teams (i.e., METs) and their approved role in identifying opportunities toimprove work conditions. The expert Driver draws from the other levels to deliver the strategicplan, a composite of opportunities to improve the work environment and achieveorganizational goals. Each level has an experiential (Heart) connection to the organizationbecause of agreements define discretion for creating the future organization.Second, the metaphorical Mind of the Driver is where the individual requires stimulatingfeedback from the Car, as a means of understanding the road and the required handling of theCar. The metaphor represents the interactions of the individual employee with performanceinformation. As noted earlier, the individual Driver can learn from the performancearchitecture, as it is organized to deliver primary analytics (e.g., self-evaluation), secondaryanalytics (e.g., operational evaluation), or tertiary analytics (e.g., organizational evaluation).Just as a Driver’s road experience advances from novice, to advanced, to expert, the requiredinformation changes in levels of the performance leader.Third, the metaphorical Body of the Driver must feel secure and relatively comfortable in theCar. If the Body is not well supported, the Driver is distracted and unable to concentrate ondriving the Car. The metaphor represents the promotion conditions that affect the employee, interms of meeting needs and expectations of reward for commitment to performanceleadership.The novice Driver, or earl-career employee is a manager of a portfolio of personalachievements, including the participation in primary level analyses of operations. The portfolioevaluation is the basis of reward because it represents a commitment to developingperformance leadership, and the work conditions that the individual has affected. The portfoliodocuments and characterizes the emerging expertise, and reward is based on the improvedvalue of the individual to the organization.© 2011 David M. Paschane, APLIN Page 19
  • 20. The advanced Driver, or mid-level manager is evaluated by performance achievement credits.The credits are based on teams’ achievements, measured in standard period increments, andweighted by standard impact roles. The achievements follow the portfolio structure in that theyinclude categories of how analytic work has created new offerings, new capabilities, andcapability improvements. The credits establish evidence for promotions and identify expertisefor cross-organizational planning of teams to achieve common goals.The expert Driver, or executive-level manager, is evaluated by capability impacts. These arechanges in the capabilities developed in the organization. They represent how well theexecutive has matured the intersection of analytic and performance capabilities in theemployees and their teams.Overall, the Driver metaphor provides definition of the OA in terms of the employees atdifferent levels of experience and responsibility, as they have discretion through agreements(Heart), interactions with performance analyses (Mind), and evaluated for promotions orrewards (Body). The PAO is responsible for regular reviews of the Employee-Organizationcomponents of the OA, and how these affect performance leadership.The OA also includes the Structure-Organization components. This metaphor is the Car. The Carincludes the Engine, Interior, and Chassis, which corresponds to technical operations, customerengagement, and managerial functions, respectively.In the Car metaphor, the Engine is where value is dependent on the repetition of operations.The Engine must be fine-tuned and maintained. Just like the Engine, the core technicaloperations of the organization drive value. The core operations require close observation toimprove the total, metaphorical machinery. The recursive analyses diagnose what conditionsaffect a high-speed, low-drag configuration of human effort and technological automation.Likewise, comparative analyses are used to understand technical operations; as they comparean alternative model or an idealized, de-contextualized model. These models help illustratewhich improvements are possible if the technical operations are separated from the frictioncurrently in the organizational structure. The comparative analyses tests for futureconfigurations of operations with greater optimization. The performance leaders’ work intechnical operations (Engine) tends to produce or rely on experts in engineering andmechanical skills. These are employees who enjoy opportunities to mature the precision andoptimization of the core operations.© 2011 David M. Paschane, APLIN Page 20
  • 21. The second element in the Car metaphor is the Interior, which is the lasting image andexperience of the Car—it is the aesthetics that keeps the Driver engaged and attentive to thedetails of the experience. The Interior represents customers’ engagement with theorganization.Employees create the engagement, monitor it, experience it, and redesign the experience sothat it has the desired effects. An organization has internal and external customers, and all ofthese experience the engagement through the design of messages, symbols, andcommunication dynamics.The customer engagement cannot assume one-size-fits-all, rather it should use personaanalytics to define individual interests and customer groups for effective impacts. Themessaging of the AMP, discussed above is relevant to how performance leadership affectscustomer engagements; especially those are designed for internal customers. The emergingexperts in customer engagement are creative, entrepreneurial, and passionate aboutresponding to others. They analyze the variations in the market of customers, and identify waysthat the experience can be adjusted for different contexts.Lastly, the Car includes the Chassis, which metaphorically holds the Engine and Interiortogether. The Chassis supports the Car and sets parameters on what is possible in theperformance of the Car. Likewise, the organization has managerial functions that are much likethe Car’s Chassis.The managerial functions were discussed above in the training of performance leaders. Theyinclude the workflow, workforce, policy, change, and communication of the organization. Theyare the formal and informal rules that govern transactions between employees andorganizational units. Like the Car, the Chassis can be changed by unforeseen events.The goal of performance leadership is to put continuous attention on the managerial functions;especially, as these facilitate the development of high-performance teams and desiredoutcomes. The experts in managerial functions are the organizers and orchestrators, those whosee opportunities for recreating how employees work together to achieve common goals. Theirattention is on the “pressure points” in pivotal aspects of work, as they monitor transactionsand their value throughout the organization.© 2011 David M. Paschane, APLIN Page 21
  • 22. Employee-Organization OAStructure-Organization OA Discretion-Control Performance Architecture Promotion ConditionsTechnical Operations EC-MM-EX / Expertise EC-MM-EX / Expertise EC-MM-EX / ExpertiseCustomer Engagement EC-MM-EX / Expertise EC-MM-EX / Expertise EC-MM-EX / ExpertiseManagerial Functions EC-MM-EX / Expertise EC-MM-EX / Expertise EC-MM-EX / ExpertiseThe table above summarizes the six components of the Employee-Organization and Structure-Organization of OA. Through this format the components are examined as they affect or areaffected by the employees, given their changing level of experience (early career [EC], mid-management [MM], and executive [EX]) and emerging expertise.The OA is dynamic, yet the PASS methods make the applied analytics effective and useful fordeveloping performance leadership. These components are central to performancemanagement because they affect individuals’ performance. If they are ignored, organizationssuffer from the systemic weaknesses that ad hoc decisions impose on employees and theirpossible achievements.Agile TechnologyEmerging technologies have made it easier for organizations to manage performance whiledeveloping performance leaders. Agile technologies are especially important in the applicationof PASS to an organization, as it allows for analytic discovery and testing.In order for the PAO to apply scientific methods to the dynamic activities of the AMP and thecomprehensive components of OA, agile technologies need to include the mobile devices,online experience, and information configurations that are quickly adapted to the improvementand strategic needs of employees. The role of agile technology is to configure performancearchitectures that simplify the complexity, organize the variability, and personalize the utility ininformation affecting performance leadership.Technology leaders can make the mistake of delivering technology according to fads in themarket. Instead, they should focus on performance architecture, and how employees becomeperformance leaders.1717 Sauer and Willcocks note problems for technologists include understanding the linkages between particulartechnologies and their organizational implications, making the right trade-offs between competing organizationalpotentialities, and retaining and developing the organizational potential of the technology over time. See Sauer C.,Willcocks L. (2003). Establishing the Business of the Future: The Role of Organizational Architecture andInformation Technologies. European Management Journal, 21 (4), 497-508.© 2011 David M. Paschane, APLIN Page 22
  • 23. One relevant technology strategy is the convergence of communications that operate ondifferent devices and systems so that employees have convenient and quick interactionswithout interference or distractions in their work.Another strategy is to offer every employee the ability to register, store, and share theirportfolios and performance achievement credits, and their active PASS efforts while usingmobile and virtual devices. Such a technology configuration is ideal for the light enterprise thatencourages employees to focus their efforts on affecting the organization’s mission rather thansimply being under supervision for an eight-hour-day. Technologists can organize performanceanalytics as a remote technology service, so that individuals, teams, and executives can easilyleverage the capabilities of digital visualization,18 monitoring and forecasting, standardizereporting,19 and other analytic work functions in the physical places where they are mosteffective at their work. The future of work will not be a lengthy policy guiding employees’behavior; rather, it will be pushing out a mobile application asking for employees to test itsutility in creating a better organization.Contemporary, popular technologies, such as social (e.g., Facebook) and consumer (e.g.,Amazon) media, offer highly intuitive, insightful, and responsive systems. Meanwhile,organizations tolerate difficult and time consuming systems that reinforce their ownbureaucracy. The PASS approach to technology is to test emerging functionality in agile, limitedconfigurations where employees can fit the technology to the organization’s emergingperformance leadership. The tests help ensure that the focus is on the value of theperformance analytics, rather than the growth of technology systems.Management GuidanceThe sustainability of performance leadership is partly due to the ways in which PASS supportsthe development of management guidance, including Concepts of Operations (CONOPS),Performance Reports, and Strategic Plans. The PASS methods generate significant evidence-18 Visualization through information maps is a highly valued capability in managing the strategy of teams andorganizations. The digital versions can capture a complex story about objectives and goals while keeping theviewer engaged in the overall process (see Maga Design). The map configuration can store a variety of key artifactsbehind icons, including budget execution, workflows, teaming, target descriptions, use case, white papers, workplans, and other relevant information. The one-page map of a plan can help limit misunderstanding among teamsand keep all participants focused on the causality of performance.19 The U.S. Federal government is testing an example of standardized reporting that will allow each agency toprovide performance data to structured reports for searching and downloading stored data that is managed by therespective agencies.© 2011 David M. Paschane, APLIN Page 23
  • 24. based content for these deliverables, discovered through routine analyses and employees’participation.The PASS methods help individuals and teams integrate their work plans into the CONOPS fortraining their peers, modify performance achievements, and define the possible initiatives forimproved performance and performance capability. The integration of PASS helps leadersmanage complexity and develop the most effective management guidance.20 The graphic belowillustrates a six-stage cycle in the application of PASS to such deliverables.The cycle starts at the top of the diagram with the definition of the organization; specifically,the attributes outlined herein; from employees’ inner work life to components of theorganizational architecture. The definitions provide a current awareness of the capabilities ofthe organization.The cycle continues with testing of analytic models. These are the embedded analyses, basedon employees’ distributed performance intelligence. The models include the emergingContinuous Improvement Platforms developed by METs and the Model PerformanceArchitectures developed by the PAO.At this early stage in the cycle the organization is organic and allows for flexibility in teamingand testing of expertise and capabilities. The likely performance measures are relatively simple.They include temporal, contextual, causal, economical, operational, and cultural conditionsaffecting performance. The throughputs are measured for their volume, quality, fit, and20 See related themes in Martin R. (2007). How Successful Leaders Think. Harvard Business Review, June.© 2011 David M. Paschane, APLIN Page 24
  • 25. timeliness. Friction in transactions is graded for their effects, and trending data is normalized todescribe the first and second thresholds that indicated inconsistencies in performance.Next, the cycle includes testing the contextual fit of models. This includes the tests of how themarkets of customers or constituents are affected differently because of contextual conditions.It also includes the fit of models to the context of organizational units, given their interactionsand transactions with other units. The employees learn how performance in the components ofthe OA are contingent on the context they are applied. This stage is where much of the risk ofprojects is identified and resolved with minimal investment. The teams learn the factors thatwill affect future work.The cycle then produces work plans defined by the METs, in cooperation with the executivesand the PAO. The work plans outline the evidence developed in support of changes to theorganization, based on the tested models and their fit to various contexts. This midpoint in thecycle is when individual discretion decreases and the organization beings controlling the newOA for purposes of managing changes. This stage includes updating the CONOPS based on theresults of the work plans.Next, the cycle includes testing of improvement effects. The PAO examines the effects of allprevious tests and those of the changes prescribed in the work plans. As the work plans areexecuted, they provide significant insight into the conditions that affect the organizationaloutcomes, and they illustrate to employees the achievements of their performance leadership.This stage produces much of the content that goes into the Performance Reports.Lastly, the cycle defines the future state of the organization. The purpose of the stage is toforecast the capability that will emerge from on-going and planned initiatives, and how thesewill change the capabilities of the organization and its employees. This stage corresponds withthe Strategic Plan and its updates, and is appropriate for producing visualized information mapsof the past and future work, and how it affects performance.As illustrated by the arrow, the application of PASS continues the cycle. The methodology canbe tailored to fit an annual schedule, or it may be used in faster cycles within a year, such asevery quarter or month. Taken together, the PASS application cycle provides executives asimple, sustainable, and systematic means of using evidence-based strategies that offer areliable and feasible set of actions for the future.Too often executives will describe a new initiative for their organization as something in the“early stages,” but in truth, there is no such thing. Once an initiative is defined for an© 2011 David M. Paschane, APLIN Page 25
  • 26. organization, it is part of a continuous analytic process, as shown above. The initiative is bestdescribed as to how it fits the process of maturing an organization—it is a test of what ispossible, given the current understanding of the organization’s capability.Future StudiesGovernments are often criticized for their bureaucratic designs and effects. In response, severalnations have launched plans to enhance government productivity, increase accountability, andimprove outcomes.21 These government methods warrant further study, and examination oftheir effects on performance leadership. Cross-agency government programs are complicatedby their entrenched systems and respective organizational designs; nevertheless, theapplication of PASS can provide leaders an opportunity to mature operations with insight intothe causality of outcomes.A case in point is the Government Performance and Results Act Modernization Act of 2010 (P.L.111-352),22 which will require all U.S. Federal programs to report their performance to acommon database for cross-agency analytics. This development and application of performancemanagement will require significant analyses on the effects of these practices on performanceleadership and potential capabilities within agencies.PASS is a multi-scalar discipline based on the theory that executives decide the levels at whichbureaucratic effects, organizational designs, and performance leadership are developed andapplied to the dependencies organizations have on internal behavior and external systems.Because PASS methods are highly integrated they are well suited for complex, systemic issueswhere solutions may require facilitated cooperation between business, government, andacademic leaders. Recent global events highlight the needs for a PASS approach to performancemanagement in government, including the growing interest in Effective Education to reduceunemployment, Emergency Preparedness for unpredictable events, and Foreclosure Preventionin housing markets.There are many other examples of where PASS would be instrumental in supporting recursiveanalyses on complex, systemic conditions affecting disparate operations in government. Oneexample is the management of Patient Agency in emerging Healthcare Infrastructures; whileassumed to be simple, these are complex human systems that have dynamic effects on patientoutcomes, and can benefit from reliable and visible performance architectures. Because Patient21 Kettle DF. (2000). The Global Public Management Revolution: A Report on the Transformation of Governance.Brookings Institution Press.22 See an analysis by the Government Accountability Office at http://www.gao.gov/products/GAO-11-466T.© 2011 David M. Paschane, APLIN Page 26
  • 27. Agency and Healthcare Infrastructures affect each other they require the use of recursiveanalytics to ensure both are optimized to have positive effects on disparate systems.Another example is the growth of Remote Workforces and Workforce Transitions. Both requirea means of facilitating the maturity of performance leadership and the use of dynamicinformation platforms. In remote workforces the need is to sustain the value of work that is notimmediately supervised by managers. In workforce transitions, such as separating militaryveterans, the need is to define work value in terms of the business operations of potentialfuture employers. The systems that support Remote Workforces can also become theinformation platforms that support successful Workforce Transitions.A common need for PASS is where organizations manage operational inputs, such as EnergyConservation.An example at the U.S. Department of Veterans Affairs is a performance architecture thatincludes robust algorithms for consequences of individual and situational energy consumptionand policy. The comprehensive monitoring of energy use, policy and scenario data per facilitysupports simplified representation of trending cost curves and other signals that communicatereal-time and future results of behavior and policy change. The projected cost savings is 40% ofenergy cost associated with computer systems and 20% savings associated with buildingmanagement.Performance architectures can be applied to other inputs, such as office space, vehicles, andequipment.Internationally, governments have an interest in studying policies that affect aging populations,and the opportunity to promote Vigorous Aging. Every ten years the U.S. Federal governmentworks with local governments, non-profits, businesses, and international delegates to examinethe emerging trends in services and policies that affect aging and the associated affects onhealth and life outcomes—an international event called the White House Conference on Aging.The next Conference23 is an opportunity to apply PASS to disparate programmatic efforts andestablish a baseline understanding of the causes of outcomes. The baseline would provide theNation a means of analyzing proposed aging policies and programs. Previous Conferences wereunable to establish a sustainable performance architecture that would make the informationuseful across disparate contexts and organizations.23 The next White House Conference on Aging will likely begin planning in 2012.© 2011 David M. Paschane, APLIN Page 27
  • 28. The most likely place for any organization to begin its concentration of performance leadershipis in its own Technology Services. Because PASS integrates analytic disciplines and applies themthrough agile technologies, it is beneficial to the organization if the Chief Information Officerand Chief Performance Officer work together in the application of PASS. The employees whosupport Technology Services can be early adopters and manage a mix of routine and testabledevices and systems. The organization can rely on the technicians to optimize services amongdisparate customers and within complex management functions. As the technologists becomeaccustomed to PASS methods, they also lead the management of agile approaches to analyticoperations.ConclusionsThe application of PASS makes visible the numerous interdependent working relationships inorganizations, and the need for coordination of resources, policies, individual development,technology, and means of understanding customers’ contexts. The ultimate goal is to create alight enterprise, one that matures performance leadership in all its employees. In turn, theemployees improve the performance of the organization. In contrast, a thick bureaucracy24 isone that creates friction and inflexibility, and feeds systemic problems of under-motivated andunderutilized employees, waste, inefficiency, and general tolerance of ineffectiveness.Executives not only guide OA designs, they lead employees in the use to analytics, anddemonstrate how analytics help the organization achieve goals. The PASS discipline alsosustains capabilities when organizations experience frequent turn-over of executives. The wide-spread participation of employees prepares executives to apply a “zoom framework,” wherethey can gain a broader, deeper awareness of how the context affects the organization.25Meanwhile, the employees benefit from the “information, power, knowledge, and rewardsthat…are pushed down so that they are spread throughout the organization.” 26 I suggest thatthe most important work of an executive is to improve the organization’s performanceleadership capability. It is a legacy that does not diminish after leaving the organization—it is aninvestment in the employees and their analytic skills.The future of performance leadership is in the ability of disparate people to collaborate in theachievement of goals regardless of their experience, employment, or expertise. Performance24 The “thick bureaucracy” reference is to the unwanted effects of bureaucratic models, such as when the structureis dehumanizing, conflicts with the organizations’ mission, or impedes progress. See Riggio, RE. (2010). WhenBureaucracy Kills Leadership and Your Organization. www.pshaychologytoday.com.25 Kanter RM. (2011). Zoom In, Zoom Out. Harvard Business Review, March.26 Lawler E. (2011). Designing High Performance Organizations, Working Paper, University of Southern California.© 2011 David M. Paschane, APLIN Page 28
  • 29. leaders will lead change where the evidence demonstrates its need and transformations wherecreative thinking makes a sustainable difference.© 2011 David M. Paschane, APLIN Page 29