This document discusses organizational change and excellence. It addresses questions organizations should consider when contemplating change, such as why change is necessary and how it will impact the organization. There are two types of change: strategic change which stems from external opportunities and challenges, and process change which deals with internal operations. Culture and leadership are also important for achieving excellence. Change is difficult and will face resistance, so full participation is needed for success.

1. PERFORMANCE
EXCELLENCE
AND
ORGANIZATIONAL
CHANGE
CHAPTER11
CADORNA SAWIT
CALAWOD BELA-ONG

2. Organizations contemplating change
must answer some tough questions, such
as:
•Why is the change necessary?
•What will it do to my organization
(department, job)?
•What problems will I encounter in making the
change? and perhaps the most important
one — What’s in it for me?

3. CHANGE
STRATEGIC VS. PROCESS

4. is broad in scope and stems from
strategic objectives, which are
generally externally focused and relate
to significant customer, market,
product/service, or technological
opportunities and challenges.
STRATEGIC CHANGE

5. PROCESS CHANGE
is narrow in scope and deals with the
operations of an organization. An
accumulation of continuously
improving process changes can lead
to a positive and sustainable culture
change.

7. Culture – the set of beliefs and values
shared by the people in an
organization.
Cultural values often seen in mission
and vision statements
Firms pursuing TQ often need cultural
change

8. EXCELLENCE CULTURE
ELEMENTS OF A PERFORMANCE

9. Visionary leadership
Customer Driven
Organizational and
personal learning
Valuing employees and
partners
Agility
Focus on the future
Managing for innovation
Management by fact
Social responsibility
Focus on results and
creating value
Systems perspective

10. Reaction to competitive
threat to profitable
survival
An opportunity to
improve

11. Readiness for change
Sound practices and
implementation strategies
Effective organization

12. Change can be
accomplished, but it is difficult
Imposed change will be resisted
Full cooperation, commitment,
and participation by all levels of
management is essential

13. Change takes time
You might not get positive
results at first
Change might go in
unintended directions

14. SENIOR MANAGEMENT
MIDDLE MANAGEMENT
WORKFORCE

15. Empower
Create a common vision of
excellence
Create new organizational rules
Implement continuous improvement
Develop and retain peak performers

16. Change is regarded as a short-term “program”
Compelling results are not obtained quickly
Process not driven by focus on customer, connection
to strategic business issues, and support from senior
management
Structural elements block change
Goals set too low
“Command and control” organizational culture

17. Training not properly addressed
Focus on products, not processes
Little real empowerment is given
Organization too successful and
complacent
Organization fails to address
fundamental questions
Senior management not personally and visibly
committed

18. Overemphasis on teams for cross-functional
problems
Employees operate under belief that more
data are always desirable
Management fails to recognize that quality
improvement is personal responsibility
Organization does not see itself as
collection of interrelated processes

19. BEST PRACTICE
BUILDING ON

20. Cycle time analysis
Process value analysis
Process simplification
Strategic planning
Formal supplier certification
programs

21. BEST PRACTICES:
INFRASTRUCTURE DESIGN

22. LOW PERFORMERS
•process management fundamentals
•customer response
•training and teamwork
•benchmarking competitors
•cost reduction
•rewards for teamwork and quality

23. MEDIUM PERFORMERS
•use customer input and market
research
•select suppliers by quality
•flexibility and cycle time reduction
•compensation tied to quality and
teamwork

24. HIGH PERFORMERS
•self-managed and cross-functional
teams
•strategic partnerships
•benchmarking world-class
companies
•senior management compensation
tied to quality
•rapid response

25. KNOWLEDGE
MANAGEMENT

26. The process of identifying,
capturing, organizing, and
using knowledge assets to
create and sustain
competitive advantage.
Knowledge assets refer to the
accumulated intellectual
resources that an organization
possesses, including information,
ideas, learning, understanding,
memory, insights, cognitive and
technical skills, and capabilities.

27. Explicit knowledge includes information
stored in documents or other forms of
media.
Tacit knowledge is information that is
formed around intangible factors resulting
from an individual’s experience, and is
personal and content-specific.

28. Create a “learning organization”
•Planning
•Execution of plans
•Assessment of progress
•Revision of plans based on
assessment findings

29. Systematic problem solving
Experimentation with new
approaches
Learning from their own
experiences and history
Learning from the experiences and
best practices of others
Transferring knowledge quickly and
efficiently throughout the organization

30. The ability to identify and transfer
best practices within the
organization
Process:
•Identify and collect internal knowledge
and best practices
•Share and understand those practices
•Adapt and apply them to new situations
and bringing them up to best-practice
performance levels.

31. Committed leadership
Integration with existing initiatives,
business strategy, and
performance measurement
Process thinking
Disciplined customer and
market intelligence gathering

32. A bottom line orientation
Leadership in the trenches
Training
Continuous reinforcement and
rewards

33. ORGANIZATIONAL CHANGE, LEARNING &
ORGANIZATIONAL THEORY

34. REASON FOR CHANGE
•Traditional: productivity or
job satisfaction
•TQ: customer satisfaction

35. SOURCE OF CHANGE
•BOTH: Top Management

36. TYPE OF CHANGE
•Traditional: limited in scope
and duration
•TQ: continuous improvement
over a long period of time

37. Unfreeze attitudes and behavior
Have effective leadership
Manage interdependence
Involve the people
Refreeze to make gains permanent