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Soft Productivity

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Productivity is about adding value to outcomes achieved and in the way work is done. Productivity can be measured in terms of Cost and Benefit
through both tangible and intangible measures. The concept of productivity continues to evolve and is relevant to all forms of organisation, whether in the public or private sector, or NGO.

There are also a wide range of productivity methods available to add value at the:
Organisational Level
Process Level, and
Role Level
Because Proventive Solutions uses a Human Activity System (HAS) as the foundation for all its productivity methodologies, these productivity methodologies go beyond a focus on "hard" system activities to include "soft" social interactions that also affect the value of what is done and outcomes.

Published in: Business, Technology

Soft Productivity

  1. 1. Soft Productivity Version 18 May 2012
  2. 2. Contents What do we mean by Productivity? HAS Based Soft Productivity Examples of HAS Based Soft Productivity Methodologies 1. Organisational Level  1.1 Strategic planning  1.2 Cultural design  1.3 Organisational non alignment 2. Process Level  2.1 Soft Process Methodology  2.2 Network contribution 3. Role Level  3.1 Team contribution  3.2 Role holder contribution Copyright David Alman 2012
  3. 3. What do we mean by Productivity? Copyright David Alman 2012
  4. 4. What do we mean by Productivity?There are 3 ways of looking at Organisational productivity : 1. As an efficiency measure Output (e.g. service or product) Productivity (How much?) Input (e.g. Resources)2. As a combination of efficiency & effectiveness Effectiveness (Qualitative Measures, asks “How well?”) Input (e.g. Resources) + Activity = Outcome Productivity (based on value to customer) Efficiency (Quantitative Measure, asks “How Much?”) Based on the McGee Productivity Model3. Anything that makes an organisation function better Based on R.D Pritchard Copyright David Alman 2012
  5. 5. What do we mean by Productivity?Contemporary Productivity uses both “waste reduction” & “value adding” approaches Productivity Reduce Increase Process value to Waste customer Waste reduction Value adding Reduce Increase Natural employee Resource value Waste contribution Risk Copyright David Alman 2012
  6. 6. What do we mean by Productivity?Productivity involves optimise value from a system’s resources and outcomes inachieving its purpose:“Productivity is how well a system uses its resources to achieve its goals”R.D PritchardA system is:• A “System” is “any group of interacting, interrelated, or interdependent parts that form a complex whole that has a specific purpose” (D. Kim in Introduction to Systems Thinking).Characteristics of Systems: Systems have a Purpose All parts must be present for a system to carry out its purpose optimally The order in which the parts are arranged affects the performance of a system Systems attempt to maintain stability through feedback.D. H. Kim Copyright David Alman 2012
  7. 7. What do we mean by Productivity?W. Edwards Deming 85/15 rule:85% of employee effectiveness is determined by the systemthey work in, only 15% by their own competence. Copyright David Alman 2012
  8. 8. What do we mean by Productivity? Focus of Productivity Systems - Examples Productivity Internal Focus Customer Focus Sustainability (Internal efficiency) (Internal efficiency & external Focus System Matrix effectiveness) (Internal & external efficiency & effectiveness) Continuous Improvement to system Improvement Improvement Improvement to Improvement activity and interaction value to activity to activity & process, well-being, System Categories to Standards value interaction & natural resource based systems value valueHuman Designed  ISO 9000  Human Performance  Lean  ServiceSystems (e.g. ITIL Systems (HPS) Service Blueprintingengines, software,  Lean manufacturing  Vanguardorganisation  Lean Six Sigma Method  Softstructure designs) Productivity  Organisational  Soft Systems (Proventive SustainabilitySocial Systems (e.g. Methodology (SSM) Solutions) (Proventiveteams, social  Value Network analysis Solutions)networks)Natural Environment  ISO 14000(e.g. eco & energysystems)*The term “soft” productivity covers productivity methodologies that address the value of Social System interactions Copyright David Alman 2012
  9. 9. HAS Based Soft Productivity Copyright David Alman 2012
  10. 10. HAS Based Soft Productivity Soft productivity seeks to optimise value from both human interactions and activities in achieving valued outcomes. It is a systems approach that uses a Human Activity System (HAS) framework across a wide range of methodologies at organisational, process, and role levels. Human Activity System Interactional Activity (Human system System Designed) (Social)Based on a diagram from D Patching inPractical Soft Systems Analysis Copyright David Alman 2012
  11. 11. What is Organisational HealthThe generic Human Activity System (HAS) model shown below integratesHuman Designed activity systems (Means) and Social interaction systems(Relations & Meaning) to achieve its Purpose. Means e.g. processes, policies, plans, organisational structures, management systems, Meaning e.g. “world view”, paradigms. beliefs, values, Purpose e.g. Clarity of goals, aims, attitudes – culture & targets climate: the way we do things around here Relations e.g. Social interactions and networks between individuals and groups, behaviours, conflicts. Copyright David Alman 2012
  12. 12. HAS Based Soft Productivity What Kinds of problems can I address with a HAS? Process Issues: • I can reduce work delays & queues • I can improve work productivity • I can improve effectiveness of reports • I can I improve employee competencies • I can I cut costs Attitude Issues Purpose IssuesI can improve underlying attitudes • I can meet customer needs & expectationsaffecting: • I can improve customer satisfaction • Customer service? • I can improve clarity of purpose • Work practices? • Relationships? Relationship Issues I can improve cooperation & coordination: • With people I work with • Between teams & other employees • With & between management • With customers Copyright David Alman 2012
  13. 13. Examples of Soft Productivity SystemsSoft Productivity Systemscan be identified at or 1. Organisationalbetween:• Organisation• Process, and• Role levels. 2. Process 3. Role 3.1 Group 3.2 Employee Copyright David Alman 2012
  14. 14. Examples of Soft Productivity SystemsExamples at organisational, process, and roles levels Level Subject issue examples 1.1 Strategic Planning 1.2. Cultural Design 1. Organisational 1.3 Organisational non alignment 2. Process 2.1. Soft Service methodology 2.2. Network Contribution 3.1 Group Role 3.1 Team contribution 3.2 Employee Role 3.2 Role holder contribution Copyright David Alman 2012
  15. 15. 1. Organisational Level1.1 Strategic Planning Example Adding Value by identifying where to best invest resources Copyright David Alman 2012
  16. 16. 1.1 Strategic Planning using a Cost/Outcome AnalysisExample a Value based Cost/Outcome approach to a Corporate Performance Management (CPM)Framework, using an Issues Tree, reflecting HAS factors. See next slide for more detailed exampleof an Issue Tree (Excluding KQIs) Corporate Performance Management Budgetary Key Performance Key Quality (CPM) Framework Framework Indicators Indicators KPIs/ Targets KQIs Issue Tree Performance Improvement Issue Tree Projects – Cost Effectiveness Outcome Achievements Cost /Outcome HAS Factors: Relations (customer requirements) = KQIs Purpose = CPM KPIs & Targets Value Process = CPM & Budget Framework Attitude = Value sought from cost/outcome Copyright David Alman 2012
  17. 17. 1.1 Strategic Planning using a Cost/Outcome AnalysisMore detailed Planning “Issue Tree” KPIs(excluding KQIs) used to identify best  Patient intake (up)value to invest resources Maximize access to care  Provider capacity (up)  Specialty Services (up – as valued) Patient Health KPIs  Preventive service utilization (up) Maximize utilization of  Emergency Services (down) preventive services  Inpatient hospital services (down) Value  Pharm. utilization (up – as valued) KPIs Optimize service cost  Maximize recovery capability management  Optimize patient to service value  Maximize eligibility accuracy Cost Effectiveness KPIs  Improve record management Improve support services  Streamline provider relations  Call centre management *Based on material developed by Andrea L Dodge Chief Administrative Officer, Executive Office of Health and Human Services. Commonwealth of Massachusetts. Copyright David Alman 2012
  18. 18. 1. Organisational Level:1.2 Cultural designAdding Value by improving alignment in work activities and relations Copyright David Alman 2012
  19. 19. 1.2 Cultural Design Generic Organisational Cultural Designs using HAS Factors for internal alignment System Factors Relationship Bureaucratic Performance Empowered Networked (HAS) Alignment Organisation Organisation Organisation Organisation Organisation Purpose Interpersonal Compliance Better Smarter Differentiated Means: Plans, if any, linked to Compliance failure & Goal, objective, & Cross functional – lateral Orchestrated networks Organisational level initiating actions. risk management focus measurement focus – and “outside in”. Planning inherent in rather than Trends and decision making, with opportunities for measurement used to continual review and improvement. identify improvement improvement, with Structure “top-down”, opportunities lessons shared openly functional & vertical. Means: Process level Processes informal, or Standard operating Performance Shared – collective- Ideas focus on new partially documented – procedures documented. management systems, knowledge and systems services and products. ad hoc. with independent used collaboratively to Measurement “Ritualistic” practices. reviews. increase and continually comprehensively used Use of process customise & improve and reviewed to build on improvement initiatives services & products. continuous improvement Means: Role level Responsibilities generic. Generalised performance Performance measures & Employee Transfer of knowledge Individual contribution in objectives & feedback. accountability linked to empowerment. inherent, supported by performing practices. owners. Training for personal mentoring and individual Training uncoordinated. Generic training. Training focused on development & development. raising role competence. performance improvement. Relations Relationship focused Directive leadership Coaching leadership Inspiring leadership style. Visionary leadership leadership style. style. style. Collaborative based style. Informal or respect Compliance focus. Performance relations and Network based relations. based relations focus. Rule based. management focus. empowerment. Mutual gain and benefit. Meaning e.g. values Good faith and good will Compliance, risk averse. Achievement, teamwork. Innovation and respect Imagination and assumed. for others. relationships.Based on Terry Lee, in The Power of Culture, and Copyright David Alman 2012other writers on Maturity Models.
  20. 20. 1. Organisational Level:1.3 Organisational non alignment Adding Value by improving alignment in work activities and relations Copyright David Alman 2012
  21. 21. 1.3 Organisational Non Alignment Example of multileveled non alignment issues Organization Structure Function A Function B Function C Processes 1, 2, 3 Processes 4, 5, 6 Processes X1, X2, X3 Employees X1, X2, X3 Teams 1, 2, 3, 4, 5 Team 6, Employees 1, 2Using a HAS (refer to Organisational Health Audit on next slide) to address non alignmentissues within organisations identified around: Organizational Structure e.g. Area affected by a lack of accountability; Function C e.g. Service Function area providing poor service; Functions A & B e.g. Area with poor coordination across Functions that have interdependent processes (1,2,3,4,5 & 6) in providing delivery to external customers; Team 6 e.g. Unsatisfactory team performance. Copyright David Alman 2012
  22. 22. 1.3 Organisational Non AlignmentUsing a HAS based Organisational Health Audit to assess alignment issues (Example) 1.1 Transactions (Cause) 1.2 Impact (Effect) 2.2 Cost Benefit Analysis Overall Overall Perceived cost/risk benefit value to recipients1. Situations/ events/activities:2. HAS Gap Analysis.2.1 Underlying cause(s) such as:Purpose e.g. goals, aims, targets;Means e.g. Reporting structure, role design ; Practicese.g. management systems, processes, procedures,standards, training , Rights e.g. policies, rules,accountability;Relations e.g. employee & group relations, leadershipstyles;Meaning e.g. values, beliefs, norms, attitudes.3. Recommendations: Copyright David Alman 2012
  23. 23. 2. Process Level 2.1 Soft Service MethodologyAdding value and reducing waste in Role activities and interactions within a “system” Copyright David Alman 2012
  24. 24. 2.1 Soft Service MethodologySoft Service Methodology (SPM) looks at Role value based on the effect “hard” processactivities and “soft” people interactions has on the overall system’s productivity. HAS Processes Role activity Role activity Role activity “waste” & “gaps” “waste” & “gaps” “waste” & Gaps” Role 1 Role 2 Role 3 HAS Attitudes Valued activities Valued activities Valued activities HAS Purpose: and interactions and interactions and interactions Customer Satisfaction Role interaction Role interaction Role interaction “waste” & “gaps” “waste” & “gaps” “waste” & “gaps” HAS RelationshipsThe Soft Service Methodology involves:• Clarifying the Purpose of what is needed to improve operational performance.• Improving the value of Role activities by reducing “waste” from non valued adding activities and “gaps” where the system fails to address a customer service requirement.• Improving the value of Role interactions by addressing “waste” resulting in non and low valued contribution, and “gaps” in the network of interactions that could improve service. Copyright David Alman 2012
  25. 25. 2.1 Soft Service Methodology Mapping to identify “gaps” and “waste” in activities and interactionsHow do role activities & interactions work together to provide services? Any “gaps” or “waste”? Copyright David Alman 2012
  26. 26. 2.1 Soft Service MethodologyStages in a Soft Service MethodologyStep 1 Identify Purpose Step 2 Identify Role improvements Step 3 Develop Improvement ProgramIdentify Purpose, Needs Identify role activity and interactions Develop& Expectations “waste” and “gaps” affecting value. Improvement PlanIdentify: Identify: Identify improvements and:a) The purpose of the a) Non productive “waste” and “gaps” in a) Ensure performance service – from a customer role activities measurements measure perspective b) Non or low value “waste” and lost value improvements sought.b) Customer service needs & “gaps” in role contribution to other expectations. roles and customer b) Action plan implements sought changes in system processes, and network contacts. State Identify value of role process activities inPurpose Identify Review and develop the service system. of the customer measures of service performanceService complaints e.g. KQIs related KPIs and targets. Identify value of role interactions in the Service network. Develop Performance Improvement Plan, identifying Cost Benefits of changes proposed Copyright David Alman 2012
  27. 27. 2. Process Level 2.2 Network ContributionAdding Value by improving the way Roles contribute value to each other Copyright David Alman 2012
  28. 28. 2.2 Network ContributionValue Network Analysis (VNA) can be applied to analysing the value ofinteractions between roles to determine if changes are needed. “Disconnects” low value contribution Customer Account Manager Product Expert “Imbalance” between input and output contribution. “Value Reciprocity” between roles Service Co-ordinator “Overburdened” High Value contribution Customer Technology Manager Senior Technical Advisor HAS Network Transaction Analysis Interactions Values Purpose Process Patterns e.g. Contribution value e.g. Norms Copyright David Alman 2012
  29. 29. 2.2 Network ContributionWhat to look for in Network “Patterns” shown on the previous slide.• Imbalances: Is there an appropriate balance of Tangible/Intangible inputs and outputs for different Roles and in the network as a whole?• Overburdened Roles and Participants: Are there particular Roles or Participants that are unduly carrying the burden of network interactions where disruption could put the network at risk?• Work arounds: Are there patterns of intangibles that might indicate something is not working in the formal processes or a Role is not functioning as effectively as it could?• Value Reciprocity: Are there reciprocal value relationships between Roles?• Disconnects: Are there missing or dead links? Where does a value flow get stuck or break down? Where does a Role fail to transform inputs to appropriate outputs?• Interdependencies: What are the structural interdependencies?Drawn from Value Insights Help Library “Reciprocity in a Value Network” Copyright David Alman 2012
  30. 30. 3. Role Level 3.1 Team ContributionAdding Value to Teams by improving the way roles contribute Copyright David Alman 2012
  31. 31. 3.1 Team Contribution Example Teamwork comparison Successful Teams Poor Teamwork (High connectivity also (Low connectivity also shown in variable rates) shown in variable rates) Role Purpose External focus Internal focus Role Processes Inquiry of issues Advocacy of position Role RelationsHAS Role Perceived Value Others issues Self issuesPurpose Value of outcome focus Role ValuesProcesses Value of deliverable & transaction outputsRelations Value of interactional contributions Positive bias Negative biasValue Value of orientation and Norms Source concept based on material by Marcial Losada Copyright David Alman 2012
  32. 32. 3. Role Level3.2 Role holder contributionAdding Value to a Role by improving the way a role can contribute Copyright David Alman 2012
  33. 33. 3.2 Role Holder Contribution Example Employee Role Value Role Purpose Contribution in “exchanges” Significant others requirements of the role using HAS factors (in bold). Are expectations Shared, Uncertain, or Conflicting? Role Processes Role Holder Significant others view of: Role Relations Perceptions Significant others view • Role Deliverables Of : • Role Transactions of relationship: • Competence • Value of interactional • Empowerment contribution • RecognitionRole Perceived ValuePurpose Value of role purposeProcesses Value of processes and competences in delivering outcomesRelations Value of interactional Role Values contribution Significant others acceptance of work attitudesValues Value of Work Norms Copyright David Alman 2012
  34. 34. For further advice please contact David Alman at Proventive Solutions Contact details can be found on the Contact Page at proventivesolutions.com.auPlease Note: This PowerPoint provides generic advice, details on application can vary. Copyright David Alman 2012

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