If we work in the health care or education sectors for example, mandates are not unusual, and can change given the political winds of Washington or Lansing. So as Bryson discusses in chapter four, if mandates apply we need to identify them, decipher the legalese within them, and clarify both what is and what isn’t allowed. If we’re working in the private sector, then mandates are really dictated by the marketplace, whether we’re involved in a consumer or business to business environment. That’s why Apple for example has a new iphone or ipad every year if not sooner. They’ve determined that their customers demand that level of product development, and that there is a market to make those purchases that often. Unlike say Whirlpool, where we don’t buy major appliances more than several years apart. But depending on the specific products, you can a stove or dishwasher for less than a new ipad as well.
All organizations must be led by a guiding vision (Bennis, 2003), which makes clear to all stakeholders what the purpose for existence is in the first place (Sagawa & Jospin, 2009). The mission statement is the measurement by which all decisions by the board and the executives (for that matter staff as well) are made regarding what is important (Bryson, 1995). For the purposes of this discussion, a vision statement would be a document describing where the organization wants to be while a values statement describes how the organization will achieve the desired outcomes. As such a vision statement may come out of strategic planning and values statement stems from the expectations of the board and staff behavior which falls under governance. A mission statement in addition to providing the core definition of what the organization is internally should also provide clarification to all stakeholders (Schein, 2004). Simplicity provides a branding opportunity that all stakeholders may grasp (Drucker, 2002).
The Drucker Foundation Mission Self Assessment Tool (2002) lists a mission statement for the American Red Cross as “To Serve the Most Vulnerable,” which is clear and concise. The 2010 mission statement was not. If you looked today in 2012, this is much better. It’s simple enough to be clear, but broad enough to allow a variety of services.
Whether you want to talk about Enron, Tyco, and other for-profit ethics failures, or within the non-profit sector the scandals at American Red Cross and the United Way, or even the embezzlements from churches, and local government entities in our region, the scriptural my people die for lack of vision (Proverbs, Isaiah, Jeremiah), or my people die for lack of knowledge (Hosea), it is the lack of clarity in mission, vision and values that is at the heart of organizational problems. It’s also one of the reasons, if you pay attention to Daniel Pink, that he talks about moving away from shareholders, or stockholders, to stakeholders.
Whether we’re talking about public and nonprofit or private organizations, determining who the most important, and most influential stakeholders are is paramount in the early stages or organizational assessment. Remember that Bryson defines A stakeholder as any person, group or organization that can place a claim on an organization’s attention, resources, or output, or is affected by that output.” The research is also clear, whether you’re paying attention to Schein, ….. That when the entire organization is unified by mission, vision and values, that are clearly communicated and lived up to, that anything is possible. Often we find though that organizational leadership has different meanings and practices for mission, vision and values than what’s practiced or understood on the front line of where the customer value zone exists.
It is clear from considerable research that if organizations which are not useful, ethical, and clear about purpose, mission, vision and values that we’ll lose customers, the best and brightest of employees, and the working capital we need to continue to survive.
If you haven’t ever read W. Edward Deming, he’s a fascinating story in part because his theories were rejected in the states, but rebuilt Japan into an innovative and economic power. His work forms the basis of Total Quality Management, out of which comes both Six Sigma and more recently Lean Six Sigma. You’ll find some similarity to a lot of work since then, including Daniel Pink, Howard Gardner, and the work by the Gallup organization among others. These symptoms still heavily exist and led to the global financial crisis we’ve seen in recent years, as well as each of the various financial bubbles that have burst over the past twenty years.
Deming was more about strategic management, than strategic planning itself as an activity, but you can see from his PDCA model. However, Deming’s point should be taken to heart in both cases. With strategic planning and strategic management, you never reach an end finished plan, because you’re continually scanning the environments, measuring the tactics, or activities to see if you’re on target, and then adjusting accordingly. If Michigan State happens to win this year’s NCAA tournament, that doesn’t mean that the coaching staff or the university can say we’ve reached the top. Time to go home. No, they start, after a vacation, working on what’s coming next because we all know that change is the only constant, in our life and our organizations.
Neglecting long-range planningRelying on technology to solve problemsSeeking examples to follow rather than developing solutionsExcuses, such as "our problems are different"Obsolescence in school that management skill can be taught in classesReliance on quality control departments rather than management, supervisors, managers of purchasing, and production workersPlacing blame on workforces who are only responsible for 15% of mistakes where the system designed by management is responsible for 85% of the unintended consequencesRelying on quality inspection rather than improving product qualityYou might say product quality in the manufacturing sector, but all of this applies to the service sector. Health care systems, restaurants, school systems, governments all offer a variation of products, and many at a substandard level.
If you pay attention to Brain Rules and Presentation Zen, which are in the Doc Sharing folder, both in our presentations, and within our writing, the ability to show an image has a much greater impact on clarity and understanding than four or five pages of text. This example from Bryson, which isn’t in your text book comes from purpose clarification for the Defense Language Institute in evaluating the purposes of the coursework. Higher-level purposes help:Act as visions, missions, or goals guiding lower-level actionsGuide knowledge exploration activitiesShow where changes in technologies and stakeholder environments may be neededServe as the basis for strategy formulationExpand the search for options from which strategies and actions might be selected Keep people from “jumping to solutions” and fighting over the wrong thingsShow where loose-coupling makes sense
Higher-level purposes help:Act as visions, missions, or goals guiding lower-level actionsGuide knowledge exploration activitiesShow where changes in technologies and stakeholder environments may be neededServe as the basis for strategy formulationExpand the search for options from which strategies and actions might be selected Keep people from “jumping to solutions” and fighting over the wrong thingsShow where loose-coupling makes sense
Bryson’s use of loosely coupled or tightly coupled systems relates to organizational design and is more easily demonstrated in these two graphics. It’s based on the work by University of Michigan Ross School of Business Professor Karl E. Weick and his work 1995, Sensemaking in Organizations, Sage. 2001, Making Sense of the Organization, Blackwell. 2001, Managing the Unexpected: Assuring High Performance in an Age of Complexity. with co-author Kathleen Sutcliffe, Jossey-Bass.The top graphic comes from: SatuNätti, JukkaOjasalo, (2008) "Loose coupling as an inhibitor of internal customer knowledge transfer: findings from an empirical study in B-to-B professional services", Journal of Business & Industrial Marketing, Vol. 23 Iss: 3, pp.213 – 223.The bottom graphic comes from Marianne Jahre, Carl Johan Hatteland, (2004) "Packages and physical distribution: Implications for integration and standardisation", International Journal of Physical Distribution & Logistics Management, Vol. 34 Iss: 2, pp.123 – 139.If you’ve not had organizational design yet in your class work, don’t have a heart attack. Either someone in your group has, or we will work together as you ask me to develop further materials for you. Your group project work does not include completely re-designing the processes or structure of an organization. And if it did, we’d bring in the expertise to help accomplish it.
If you’ve not had organizational design yet in your class work, don’t have a heart attack. Either someone in your group has, or we will work together as you ask me to develop further materials for you if needed. Every one of you has practical experience in the impact of organizational design and management, so you have practical knowledge you can bring to bear. Your group project work does not include completely re-designing the processes or structure of an organization this point. And if it did, we’d bring in the expertise to help accomplish it. That’s a much longer version of strategic planning than we’re capable of in a ten week class.
Just to wrap up.Everything that the organization does, how it’s designed, what processes we use, all have to fit within the guidelines of our mission. Often they don’t. Which again, is why Daniel Pink suggests establishing a department of why? Bryson concludes the chapter with some examples of mission statements, and we’ve already looked at the changes in the American Red Cross earlier. But it’s time for you to take a breather, walk around the block or do some laundry before we take a look at environmental scanning. Regardless of the organization, planning a product or service that there isn’t need for is a sure way to extinction, or at least short term losses including organizational respect, reputation, and customers.
Quick Update • We’re completely on line the next two weeks working through Bryson and some additional readings. • If you need help, don’t understand, or find instructions confusing, email or call me and we’ll fix
Assignments – Week 2• Watch the presentations.• Read Chapters 4-6 in Bryson and Resource B.• Doc Sharing Week 2 Articles: Applicable Reading.• Discussion Threads
Mandates?• Most employees don’t know what’s mandated by whom or why.• You can’t accomplish what you don’t know.• Confusion causes inaction or wasted resources and frustration. Bryson, 2011
Mandates• Identification (formal and informal)• Interpretation of requirements• Clarification of what’s not allowed (could lead to goals).• Clarify what’s not ruled out. Bryson, 2011
Mission, Vision, Values All organizations are led by a guiding vision (Bennis, 2003) Mission: Reason for existence; Purpose. Vision: Where are we going? Values: How will we behave in achieving the vision & mission?
Mission Clarity?The American Red Cross, a humanitarianorganization led by volunteers and guided byits Congressional Charter and the FundamentalPrinciples of the International Red CrossMovement, will provide relief to victims ofdisaster and help people prevent, preparefor, and respond to emergencies (2010).The American Red Cross prevents andalleviates human suffering in the face ofemergencies by mobilizing the power ofvolunteers and the generosity of donors (2012).
Lost Organizations - Ethics A lack of vision for whatthey were there toaccomplish, a lack ofvalues anchoring theirwork. And from that, a lackof understanding of how toincorporate the results-focus of vision and valuesinto the heart of everythingthey do. Because visionand values are all about endresults (Gottlieb, 2007).
One Key To Success• “The key to success for public and nonprofit organizations (and for communities) is the satisfaction of key stakeholders.” Bryson, 2011• Doesn’t that apply to for-profits as well?
The Department of “Why?” • Start with purpose • Construction of a “purpose network” or “purpose expansion” • Choose the purpose that fits your new sense of purpose • Let that purpose be your guide • Always keep asking yourself, “What is our real purpose here?” • Change your purpose when it’s appropriate, but not whimsically. Bryson, 2011
You Get What You Measure • Purpose exploration shows the connections between: – Actions and outcomes – Means and ends – Influences and results Bryson, 2011
Deming – Org Diseases• Lack of constancy of purpose• Emphasis on short-term profits• Evaluation by performance, merit rating, or annual review of performance• Mobility of management• Running a company on visible figures alone• Excessive medical costs• Excessive costs of warranty, fueled by lawyers
Deming - Obstacles• Neglecting long-range planning• Technology dependency• Examples over solutions• Making Excuses• Believing management skills can be taught in classes• Reliance on quality control rather than employees• Blaming workforces (15%) for mistakes when Org Design & management (85%) causes unintended consequences• Inspection over product quality
Higher Purpose Levels• Act as visions, missions, or goals guiding lower-level actions• Guide knowledge exploration activities• Show where changes be needed• Serve as the basis for strategy formulation• Expand the search for options from which strategies and actions might be selected• Keep people from “jumping to solutions” and fighting over the wrong things Bryson, 2011
Lower Purpose Levels• Serve as the basis for strategic programming• Guide knowledge exploitation activities in fairly stable technological and stakeholder environments• Provide the focus for process management and improvement activities (TQM, ISO 9000, Six Sigma, Lean Six Sigma, etc.)• Show where tight-coupling makes sense – around key processes• Show where most people’s attention should be focused most of the time Bryson, 2011
Organizational Design?• Consider the organizational change you’ve been through at current or previous employers, at Siena Heights, and even in organizations you volunteer at.• What was the experience like and did it work?
Mission = Purpose • Who are we? • What need are we meeting? • How do we know what the needs are? • What do we respond to stakeholders? • What is our philosophy, values and purpose? • How are we unique? Bryson, 2011
References• Barbara C. Crosby and John M. Bryson, Leadership for the Common Good, 2nd Edition (San Francisco: Jossey-Bass, 2005)• John M. Bryson, Strategic Planning for Public and Nonprofit Organizations, 3rd Edition (San Francisco: Jossey-Bass, 2004)• John M. Bryson, “What To Do When Stakeholders Matter,” Public Management Review, 6(1), 2004, pp. 21-53.• John M. Bryson and Farnum K. Alston, Creating and Implementing Your Strategic Plan, 2nd Edition (San Francisco: Jossey-Bass, 2004)• Colin Eden and Fran Ackermann, Making Strategy (Thousand Oaks, CA: Sage, 1998)• Gerald Nadler and Shozo Hibino, Breakthrough Thinking, 1998.• Paul C. Nutt and Robert W. Backoff, Strategic Management for Public and Third Sector Organizations (San Francisco: Jossey- Bass, 1992)