The last leadership book Wheelers pdf

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The last leadership book you
will ever need to read
Graham Little
PhD AFNZIM
Redesigning the organization volume 1

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Business team leaders were asked what they really wanted from a
book on management or leadership. They said they wanted guidelines
on how to judge what to do to improve team performance; to make it
easier for themselves, more enjoyable for team members, for the
advice to be systematic, clear, simple, and sound, and above all, that
after applying the advice the team got better results.
When asked about what is meant by sound advice one comment
seemed to sum up all others, “Well, there is so much advice; every
successful person seems to put out a book on ‘how they did it and you
can too’. It is all a bit the same and all a bit different. All a bit too
much, and I am not them and if I was I would be able to write my own
book. So I am left with what do I do, how do I judge what is needed,
what systematic actions are needed, when and by whom? Give me that
and I will buy the whole damn bookstore.”
The key question faced in The last leadership book is, “what
exactly is the link between business strategy and goals and staff
actions?” Having answered this question, it then considers “how that
link is used so that team leaders consistently get better results than
they would otherwise?”
There is no need to buy the bookstore; just buy one copy, read it
and apply it.
Follow the student as she moves from scientific theory to practical
application and deepens insight into business success.
As said by one client: Apply the system and the money just turns
up with people more satisfied in the success.

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OPD theory a global watershed in HR
“The OPD concept as presented is a global watershed for social
science and in particular for the theory and practice of HR.
HR has the opportunity to embrace this new and exciting theory, to
advance the status and impact of HR, and through the better
harnessing of its people to take a huge step forward in the wealth and
hence health of our communities.
HR can lead the way in economic and social development“.
Dr Pieter S. Nel
Professor of Human Resources Management
Unitec New Zealand
Auckland
Professor Extraordinarius, School of Management Sciences,
UNISA, RSA
E mail: pnel@unitec.ac.nz
With OPD the money just turns up
To a new divisional manager…
“Follow OPD advice, identify ideal actions and guide them being
delivered with commitment, the money just turns up.”
Grant Vincent - CEO Hyundai Dealership in Auckland

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Published by
Self Help Guides Limited
PO Box 36656
Northcote
North Shore
Auckland City 0626
New Zealand
A reaching for infinity book.
Copyright © 2011 Graham Little
Second edition, June 2013
ISBN 978-1-877341-05-2
Graham Little asserts the moral right to be identified as the author of
this work.
All rights reserved. Except for purpose of fair reviewing, no part of
this publication may be reproduced or transmitted in any form or by
any means, electronic or mechanical, including photocopying,
recording, or any information storage or retrieval system, now known
or hereafter invented, without permission in writing from the
publisher.
A catalogue record for this book is available from the National
Library of New Zealand

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Contents
Prologue: How to make the most of this book .....................................8
Review questions.....................................................................17
1. Ask a simple question....................................................18
2. Payback and the CEO point of view..............................33
3. The OPD theory.............................................................49
4. The organization design specification ...........................71
5. Getting the concept right................................................99
Intellectual background review questions.............................155
Ashby tools and Ashby diagrams review questions...............155
Review questions...................................................................155
6. What it means to team leaders .....................................159
7. Executive focus and direction......................................204
8. Defining human capital value (HCV)..........................220
9. The emergent culture ...................................................237
10. The role of HR in driving results.................................256
11. Coaching, training, commitment and engagement ......276
12. Personality, role development and ideal actions..........297
13. Identifying and integrating business processes............306
14. The organization in society..........................................314
Epilogue: But, what do I do …?.......................................................332
Appendix 1: Components of OPD-SHRM .......................................341

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Appendix 2: OPD summary of key terms ........................................344
15. Appendix 3: Projected HR Department roles ..............345
Appendix 4: OPD theory management glossary ..............................346
Appendix 5: The redesign of the organization book series ..............359
Appendix 6: Graham Little...............................................................361
Appendix 7: Academic background .................................................367
The examples used to illustrate are composite drawn from many
client interactions. Any similarity to actual circumstance is
unintended.
Ashby tools formatting note: Throughout the book variables are
discussed as linked by an arrow. This arrow is an important aspect of
Ashby diagrams and has the precise meaning ‘has an effect on’. Due
formatting restrictions the arrow is represented by --- >. Please read
this symbol as meaning ‘has an effect on’. So A --- > B, means a
change in A has an effect on B resulting in a change in B.

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Prologue: How to make the most of this
book
This book is the result of a passionate life long belief that what we
think shapes our destiny. The limitations of mind are the bounds of
what we can and will do. Therefore to do anything better we need
begin by building better ideas in mind then seek application of those
ideas.
To be more effective we need think more effectively.
In a recent exchange in a group discussion on the professional
connection web site LinkedIn it was pointed out there were likely 100
theories of organizational development of which about 60 were
practical and useful.
There are not 100 theories of quantum physics. There are not 100
theories of relativity. There are not multiple theories of chemical
valence, geomorphology, photosynthesis, cell division, DNA
replication, etc. Physical science has clear and defined intellectual
tools and clear and definite means of measuring theory against actual
circumstance. Agreed intellectual tools dominate physical science
enforcing precision.
There is no accepted theory of the person; there is no accepted
theory of social development; there are no clear agreed tools for
building theories in social science, there are no clear and definitive
means of assessing theory against circumstance. Lack of agreed
intellectual tools dominates social science enabling proliferation of
opinion.
In physical science multiple theories are unacceptable. Where there
are competing theories then scientists seek to resolve the conflict,
since it is accepted it is unlikely that any set of events occurs by
multiple pathways. In short, there will be one correct theory that will
be indentified by empirical research, theoretical analysis, and
integration of the theory with evidence, insight and theory from other
fields.
All aspects of organizations arise from human effort. Yet

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management theory sits alone and is not considered as an aspect of
human endeavor, it is discussed as if it is something separate from all
other human endeavor. I do not accept that proposition, I argue the
opening sentence, that ‘management and organization’ are aspects of
human effort and that any valid and apt general theory of human effort
must explain and speak to ‘management and organizations’ as a detail
within the overall theory.
The full analysis of a ‘person in their environment’ and the tools
needed and applied is in the book The Origin of Consciousness1
.
Details of the argument and analysis will not be considered here. But
it is important to understand the significance of the analysis.
Imagine we had an apt and accurate general theory of the person
then it must have something to say on all aspects of humanity. To the
extent any theory does not speak to all aspects of humanity is a
measure of the extent that theory is inaccurate and incomplete. Hence
The Origin of Consciousness explores the full range of human
endeavor, substantially redefining what it is to be human –
psychology, mental health and mental illness, cognition and emotion,
social science, perception, mind and brain, nature of the human spirit,
epistemology, causality and quantum physics, consciousness and
evolution of consciousness in the individual and the species, and even
the role of Wikipedia are all redefined or changed with new insights
and understanding.
As a practical manager you are most likely not particularly
interested in ‘Origin’ and its analysis. From a management point of
view nor should you be. From a personal point of view however, you
may be interested in how you came to be, where you came from, why
you are here, how consciousness evolved in you and in the species, the
source of your consciousness and the nature and structure of the very
centre of your psyche I refer to as your spirit.
The next intellectual step in building the analysis in this book is
1
Little, G. R. The Origin of Consciousness, 2013, as at July 2013 the book is
under discussion with publishers, but available in PDF on request at
Graham.little@opdcoach.com.

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from within the improved understanding of people, summarized in
‘Origin’ to derive the nature of organizations and to analyze the link
between the organization and people beginning with an analysis of the
intellectual tools needed. The details are in the book Rollout:
Improving roll out of business strategy2
. This intellectual background
is not discussed in any depth in this book.
If we accept that all aspects of ‘organization and management’ are
created by people, then it becomes essential that you as a practical
manager have confidence that any advice is grounded on in-depth
theoretical understanding of how and why the advice is valid. Once
the theoretical analysis is apt then it must be proved empirically. Then
and only then do we have THE theory, not one among many, none of
which really work but some of which are ‘practical and useful’.
At last, perhaps you may think, we come to the content, scope and
thrust of this book.
The aim of The Last leadership Book You Ever Need to Read is to
present to practical managers the practical consequences of the in-
depth prior analysis. If you seek the intellectual background, then refer
to the two reference texts.
This book is about what you do and what happens, it is the result of
forty years of reflection, research and practical experience3
. Forty
years ago I simply did not accept that social science had to be as
vague and as imprecise as it was and still is. If you read my
philosophy web site you will find this as a very strong theme4
.
Around year 2000 I had developed most of my intellectual position,
and had an extensive practical background in HR, organization
performance, training and development and leadership5
. It was around
2
Little, G. R. Rollout, 2013, on Kindle www.amazon.com/author/grahamlittle.
3
See appendix for background on my intellectual position and depth of practical
experience over some 35 years.
4
www.grlphilosophy.co.nz.
5
Part of this experience was hard won when my business The New Zealand
Business School was liquidated in the long recession (1991-1993) in New Zealand
after the 1987 share market crash. I was bankrupt from 1993-1996, and learned more

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this time I applied the social science intellectual tools I had developed
to the question of the exact nature of the link between an organization
and people. The OPD-theory was born. With a business partner, a
web software technician, we developed the world’s first strategic
human resource management information system (OPD-SHRMIS)
built on the OPD definition of strategic HR, not the then globally
accepted definition that still exists today.
I had no doubt of the intellectual validity of the theory. I made sales
calls, and began implementation with my first client in Auckland mid
2006. The new business was building nicely until 2008, when the
world experienced the global financial crash. By 2011 our revenues
had fallen to 20% of 2007.
Financially 2008 to 2013 was very difficult. But, it has been
rewarding in that in conjunction with the New Zealand based clients
who stayed with us we learned how to turn the theory into practice. I
say ‘we’ since clients contributed greatly to the development and
insight, repeatedly pressing me with ‘get it simpler’, and ‘it’s about
results’. I learned about how hard it is to guide senior people to
seriously shift their thinking and their actions to a new way of ‘seeing’
and doing things. I learned how easy it was to gain intellectual
agreement and how hard it was to convert that into corresponding new
on-the-job habits. The gap in mind between what we know and agree,
and what we do.
Global leadership, management, and human resource management
rests on rather much the same intellectual position it did at the time of
the Hawthorne experiments nearly 100 years ago. It is not integrated
into social science, and to any extent it is integrated the social science
is weak and fragmented.
Think of the last 50 years of literature on ‘management and
organization’. Think of the themes, think of how you currently think
about budgets, financial reports, HR, disciplining, coaching, training,
performance management, the best way of driving results, business
culture, human resource information systems (HRIS), performance
from that experience than I think I have ever learned from anything else.

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reporting, strategy and roll out of strategy, and engagement, etc.
Where do you think how you think comes from?
What you think is sort of ‘in the air about you’6
, in newspapers,
books, magazines, radio, TV, in discussions with peers, superiors, and
team members, in policy and operation guidelines, courses, degree
programs, conferences, workshops, and discussions at conferences and
workshops and degree programs, etc.
What if current ‘received wisdom’ is wrong? What if it is an
intellectual dead end? When everybody thinks like that how would we
know?
What if to move forward we need go back to basics and begin
again?
How hard do you think it would be to change your thinking so that
it was quite different from what was ‘in the air about you?’
Is it possible for the world, ‘what is in the air about you’, to be
wrong and for one person to be correct?
Albert Einstein when he presented the photo electric effect was
scoffed at. Today it is a cornerstone of physics.
What if there is only one person offering the point of view you are
asked to adopt? I learned how hard it is for people to swim against the
nousphere around them.
Slowly, ever so slowly, with slips in implementation, discussions of
disbelief, too busy doing what has always been done7
… slowly, ever
so slowly the consistently better results eventually won.
What is offered here works, and proven to work with the clients in
Auckland. Empirical proof is itself interesting, in that it is about the
6
I call the ideas ‘in the air about you’, the nousphere (sphere of mind, after
Tielhard de Chardin). It is where personal thinking comes from. See The Origin of
Consciousness for a detailed discussion of the nousphere as a crucial aspect of
culture and its relationship to personal ideas and thought.
7
This always reminded me of the sales person offering a machine gun to the
army fighting a war with swords, with the adjutant saying ‘the general is too busy to
see you just now’.

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individual mind, if it works in one mind it will work in any mind if
and only if the person chooses to make it work. The focus in this
theory is not on the ‘organization’ but in fact on the mind of each
person who is part of the organization. This also an aspect of the prior
analysis, namely what exactly is an ‘organization’, how is it changed,
and how does it move forward?
In summary the organization is a collection of minds, focused a
certain way… that is focused in relation to the strategy which forms
the rationale for the organization to exist at all, I refer to the
organization as resulting in an alignment of minds, or coherence of
minds (as opposed to a diverse collection of people without such
coherence). Improve the quality of the coherence relative to strategy
and results must improve8
.
So, with that background how do you make the most of this book?
Begin by considering whether or not a better idea about getting
better results in organizations is possible. Ask yourself: ‘Is it possible
in principle to build more effective thinking about organizations such
that when applied results improve for all stakeholders?’ Hard to say
‘no’. But how will you know, how will you push past the ideas ‘in the
air about you’…?
Face the question of whether you are reading this book to be
entertained or whether you seek a better way.
I do not wish to put you off, but this book is not intended to
entertain. It is intended to educate and inform of a new way of
thinking about ‘organization and management’ based on a new in-
depth analysis of the fundamentals of ‘organization and management’
which typically have previously been taken for granted.
During and after reading this book I aim to make you THINK in a
manner you have possibly not before applied to the profession of
8
This phrase is a perfect alternative definition of strategic human resource
management as derived from OPD theory with appropriate emphasis on the
psychological link between each mind and the organization strategy as demanding
coherence between mind and strategy. The psychological issues of organization HR
that follow are then about the right of people to accept the coherence or not, etc.

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management, organization design and leadership.
Given how much is ‘in the air about you’, and given that is where
we draw all our ideas from, do you think you can develop new way of
thinking without serious effort and reflection?
Please understand that a better way is possible, but it will not work
for you unless you are willing to change your habits, wrestle with your
thinking, and think harder about how you make your judgments. A
better way inevitably involves doing things differently.
Your choice is exactly the same as the policy choice in many areas
of business. Will you be an early adopter, a leader with any new
technology, or will you stay with tried and true and wait until this new
way of thinking is accepted and becomes the norm ‘in the air about
you’. There are pros and cons, as I am sure are understood.
The advice below is aimed at offering a balance, exploring the new
ideas without yet throwing out the old.
I suggest you accept that you have a pre-existing set of ideas about
‘management and organizations’, deeply ingrained and driving your
habits9
and your judgment. The ideas that you currently use will be ‘in
the air about you’ and you will have acquired them wittingly and
unwittingly from the sources about you.
Second, seek to package up those ideas into one place in your
mind. Even when having discussions or reading, work at seeing and
understanding it is just one part of your mind, one set of ideas, and
that set of ideas is not necessarily correct just because it is common
and popular, or the ideas most used, or the traditional ideas that have
always been used.
Third, retain a balanced skepticism. Think to yourself: “Because it
is how everyone else seems to think does not make it right. Because it
is how we have thought for 50 years or more does not make it right.
Because it is what I read and hear every day does not make it right.
My ideas are just that… ideas … and I can and will change them if
9
See The Origin of Consciousness for a detailed discussion on the nature, source
and functioning of habits.

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better ideas come along10
”. Think about how you will judge the ideas.
“I will form my own judgment of ideas, and work hard at applying
reason not tradition to the evaluation of the ideas”.
Imagine you are beginning again, become a student. Approach the
book as a text book, aim to study it, reflect on it, not merely ‘read’ it.
At the end of each section in the book there are questions that
explore the issues raised in the book, and are designed to assist you to
explore the differences in approach and consequences. Read the
section, then the review questions, then before trying to answer the
questions, re-read the section. I hope the review questions open up the
issues and assist deepen insight into them.
Retain the book in some place convenient, read one section at a
time, answer the questions at the end of each section to ensure you
understand. Seek to build the clarity of what is being discussed in one
part of your mind without, yet, replacing what you have traditionally
done and thought. This is not easy, be prepared to wrestle with some
of your reactions.
In one part of your mind you have ‘packaged’ your existing ideas
about ‘organization and management’. Then in another part of your
mind, package this new approach, the new definitions, so you can
‘see’ clearly the difference between the two, despite they use some of
the same terms, ‘see’ the in-depth difference in definitions and as
result ‘see’ the difference in consequences.
Once you can ‘see’ both the traditional concepts and intellectual
structure and the new OPD theory structure, then you are able to apply
reasoning and empirical evidence to judge the most effective
processes of organization design and operation to achieve the greatest
result. OPD theory is the only way to ensure greatest opportunity for
the greatest result.
The book is about what to do and how to do it with one exception,
the first third of chapter 5 is about the theory and its fundamental base
10
This issue is that of ‘paradigm shifts’ as considered by Kuhn. Again detailed
discussion on the issues in ‘Origin’.

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read it and accept it for what it is. The remainder of chapter five is
important. Each remaining chapter explores the OPD theory design
specification for the organization from the different points of view for
example roles of CEO, VP HR, CFO, operations team leader, VP
Sales, Training and Development Manager, and the place of the
organization in society.
Changing the design specification of the organization changes the
fundamental focus of every role. This is a crucial point, and cannot be
overstated. Changing the organization design specification changes
the relationship between people and the organization, it is not
comparable to merely changing the organization structure, which only
changes the relationship between people in the organization and
changes the goals assigned people. It does not change the fundamental
focus of a role.
By exploring the impact of the design specification in different
roles then the nature of the changes involved are made clearer from
different points of view. Each book in the Redesigning the
organization book series explores in more detail from the point of
view of a specific role the changes arising in that role from applying
OPD theory design specification. After reading the overview in The
last leadership book, greater detail of the changes is available in
various roles in the supporting books in the series.
Given the depth of intellectual analysis underlying OPD theory,
and that it is now proved in clients such it can be stated categorically
that if people choose work success for themselves and apply OPD
theory it will enable greater results and greater satisfaction in the
success than any other HR system or process.
The quality of the intellectual foundations plus the empirical
evidence asserts OPD theory is THE theory of organization design.

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Review questions
It is recommended you keep a note book in which you write the
questions and answers. All answers are in the text.
1. Why must a theory of organization be derived from within a
general theory of the person?
2. Where do our thoughts come from?
3. What are the two books containing prior intellectual analysis
leading to The Last Leadership Book You Ever Need to Read?
4. Describe what is meant by the phrase ‘the organization is a
coherent collection of minds’.
5. Describe the role of strategy in the organization.
6. Describe the steps you can take to objectively assess a way of
thinking different from the current accepted point of view.
7. Can we assume that because we have thought of something one
way for decades, and everyone thinks that way, that it must be
correct?
8. Do you agree that:
8.1. If we have clearer and more accurate thinking we have a
greater chance of greater success.
8.2. To get it clear in our mind it is best we get it clear on paper
first.
8.3. Success begins in mind.
9. Are you committed to your success?
10. Have you organized the time to read and reflect?
11. Have you organized a ‘study note book’?

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1. Ask a simple question
Once upon a time, a student of management and leadership
reflected on why our understanding of what these things were was not
much beyond what Julius Caesar understood.
“We need superior natural leaders”, she said, “but more, we need to
be able to guide average people in how to achieve superior results
with their team.”
Her partner looked up from studying his Texas steak, glanced about
the downtown LA restaurant, and then offered a word.
“Elaborate…” She nodded; she was used to his direct manner.
“Well, our way of life depends on successful organizations…”
‘No argument there’.
“Economic freedom is an extension of personal freedom, and
cannot be separated from it, so making our organizations more
successful makes communities more financially secure.”
“Yes, so…?”
She smiled wryly, “I’m getting to it.” She said.
He smiled, accepting the rebuke to his impatience.
“Real organizational success, business success, depends on
leadership, and the grand, natural leader just cannot be every where.
Profits often depend most on the qualities and caliber of those on the
first level of management, not the guy at the top level, but the one
closer to the action … to the customer, that’s where the dollars are
really made.”
“Got you, men rule!”
She poked her tongue at him. “The person at the top,” she
emphasized, “is crucial, making the big decisions, the insightful
strategy, but it is the person at the bottom who turns strategy into
dollars.”
He swirled his pinot noir, savoring the bouquet. “Very nice, Mt
Difficulty, Kiwi wine; they may be small and a long way away, but
they know how to do some things really well.” He looked down for a

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time reviewing her comments; in particular, the depth of them, since
he knew that she would be arguing from depth.
“Okay, I see where you are coming from, and agree. So why are we
not more ahead, why cannot we develop leaders that are average
people and have them achieve extraordinary results? Many people
have been thinking about the issues for what … a hundred years?”
She leaned forward. ”Just yesterday I was reading some data on
the links between human resources (HR) stuff and results. It is all
statistical … the best of it seems to be stuff from Sears where they link
a five percent increase in staff attitudes, with a 1.5 percent or so
improvement in customer attitudes that resulted in a 0.5 percent gain
in sales.”
He raised his eyebrows. .“Jeez’, he said, “for Sears, at what; fifty
billion revenues? That’s huge.”
“Yes, shows the potential of the so called ‘soft stuff’, not so ‘soft’
huh?” She sipped her wine, and nodded in appreciation.
“But the scale is not the point, all the data is statistical, why? Why
can’t we have a direct causal link between strategy and staff behavior?
If we did have direct links then manage using that, then it should
greatly increase the impact of the HR stuff on the bottom line. So
maybe an increase of five percent produces a two or three percent gain
in results.”
“You’re the social scientist, firsts from UCLA and all that, but
doesn’t the idea of ‘direct links’ imply all sorts of issues in causality,
and psychology, etc?”.
“Yes, exactly... Globally there is no existing direct, causal
scientific link between staff behavior and strategy. It is all statistical,
and to build such a link, a theory of how the strategy and behavior
interact, implies some very serious intellectual issues in social
science.”
He looked steadily at her. “Why do I get the feeling there is
more?”
“The Prof phoned me late afternoon.”
“They got a topic you’re willing to do at last!”

20
She laughed, embarrassed. “Okay, so I am bit picky.”
“Bit picky! You have turned down what, ten suggested projects for
your thesis?”
She looked at him from under her eyebrows, shyly. “Eight.” she
said quietly.
He smiled and reached across and took her hand. “Okay, what did
the Prof want?”
“He was bit evasive, but wants to see me first thing tomorrow.” She
sounded excited. Her partner nodded, and stared deliberately at her
cleavage. “Talk to me not to them.”
“I was just thinking it’s time to go home.” She laughed and
finished her wine.
There are no simple answers
The Prof leaned back in the chair then swiveled to eye the glowing
Tuesday morning, the trees in full color; he turned back to face her.
“What is needed is a complete solution to the problem of
organization design and leadership. Current global HR best practice is
not strong enough. Along the way, the solution needs to fulfill all
requirements for improving the key organizational parameters
including:
organizational capability,
performance management,
talent identification and management,
business excellence and
human capital value.”
She nodded, sensing he was not quite finished.
“The simple summary is the greater the human capital value the
greater the profits.” He paused.
“The question is” he continued, “how exactly are business goals,
key performance indicators (KPIs) and outputs linked to staff
behavior?”

21
He stopped. She had learned to leave him when like this,
sometimes the gaps infuriated her, but it was how he was, and he was
a very, very good academic, world recognized in this field.
“It really is a simple enough question. Interestingly, there is no
answer; at least none that is clear, simple, and directly usable.
Suggestions abound, but they are all complex, convoluted, and only
marginally science, if science at all. None offers advice that reliably
works. None offers advice that assures results. None are causal -
although we do need talk about what that means in social science - so
that implementing the theory assures the team leader results must
improve.”
“So is that the question we would look at,” she asked.
“No, not exactly,” he said. “if you ask, ‘is human performance a
strategic factor in your profit and loss?’ the typical reply is ‘damn
straight!’” He continued.
“Everyone agrees that what people do makes a difference. But the
nature of the link is unclear. We do not really know how people make
a difference, and as a result we certainly do not know what to do to
strengthen the impact of people on the results. Usually the suggestion
is that if you do more training or mission and values or cultural audits
or involve people more, then results must surely improve. Sometimes
they do improve, sometimes they don’t. If they don’t then obviously
the team leaders involved did not hold their mouth right as the saying
goes, and corrective action is more of the same with the advice to do it
better this time.”
She nodded. “I understand all of that,” she said, with more
impatience than she wanted to show. He looked at her just a little
sheepishly.
“Yes, I do tend to forget you are not an average student. Sorry,
let’s get on. You know the links as they are, are statistical.” She
nodded. “And you are familiar with the data as it exists, Sears say?”
She nodded again.
He paused.
“What exactly is the problem with current global HR structure …”

22
it came out more rushed than she wanted, but she needed to get the
question in before he meandered on.
“Intellectually, just about everything. The key lack is that
management, organizations, and leadership are discussed as if they are
separate from social science, when there is just one actor, people, and
the science of people is social science. Then it gets worse.” He
paused before continuing.
“The emerging clear rule is doing first things first, so to discuss
organizations, which are created by people, we need a general theory
of psychology, and we need to know exactly how human psychology
is linked to our theory of the organizations, but there is the rub, we do
not have a theory of the organization. If we are to create a meaningful
general theory of psychology it needs to be causal, but we have no
idea what cause is, so how can we make something causal if we don’t
know what we are doing…” He rocked back and looked to the
ceiling…
“Well…” He said, “We had none of those answers until these new
papers came out. Suddenly, it all gets very deep intellectually, and the
current crop of global HR academics has to begin to earn their
intellectual keep so to speak.”
“So,” she began, “are those the questions we need to answer?” He
sat up.
“No. they have been answered. Unfortunately, we are beaten to the
punch, so to speak. A paper is out from another mind, who has
defined the exact links. This is new, but the application of the theory
is not, the authors first went to clients and applied it before releasing it
to academe and making it public. So we are not able to build the link,
which it seems is done, but we can research the theory, assess its
validity, check if it works, and that it does deliver as it should. Would
this interest you as a project…?” His voice tailed off as he saw her
become reflective.
She paused, if this theory was correct, she would be in the box seat
to follow it and build her reputation on her research on it; if the theory
was not correct, she could use this thesis as springboard to improve
and develop it.

23
“Yes,” she said with real enthusiasm. “Yes, it sounds perfect. It hits
the exact area of most interest for me and that is also so very weak
globally.”
“Great,” he said, “I will contact a CEO I know of a company using
the system and theory; I will text you details of how to contact him
once I have confirmed and you can go visit with him and perhaps his
team to begin real world research on whether this theory works in
practice. You also need read the background, and begin research on
the intellectual validity of the theory and how it links to the literature.”
The Prof rose and walked around from behind his desk. She rose to
meet him. They hugged.
“I am so pleased to be working on this with you.” he said. “These
old bones are quite excited by this whole thing, and I know how good
and thorough a job you will do.”
“Thanks, I think it’s exciting as well; it’s just great to have
something with real bite in this area.”
She skipped down the stairs and glanced at the note he had given
her before dropping it in her satchel.
She thought of her parents and two brothers, they would be so
pleased. “At last,” they would say, and she knew her partner would be
ecstatic. She reflected on just how much a pain she had been these
last five months.

24
Thesis - initial brief
The background papers by Dr Little and Professor Nel.
OPD Leadership Theory, presented at ANZAM conference
2008. Sustainable Leadership at
http://www.opdcoach.com/article14.pdf
An Integrated Strategic Human Resource Theory to Achieve
Organization Objectives , The International Journal of
Organizational Behavior pp. 4-13 (PDF* 115 kb)
Authors: P.S. Nel & G.R. Little;
http://www.usq.edu.au/~/media/USQ/Business-
Law/Journals/NelLittle%20Paper%201.ashx
Sustainable leadership: The fundamental solution to lasting
superior staff performance, authors P.S. Nel and G.R.
Little
http://www.uunz.ac.nz/pdf/journal/edition1/Journal_pa
rt4.pdf.
By Dr Little.
Cause and psychology papers,
People and profits,
Philosophy writ large all at www.grlphilosophy.co.nz
Articles on OPD-SHRM at
www.opdcoach.com/articles.index.php
Follow up.
Contact to be arranged with company applying the theory and
achieving considerable success.
Proposed thesis questions.
1. Was the new OPD-theory and -SHRM system based on
superior intellectual foundations and hence an
intellectually superior paradigm for HR?
2. Did team leaders understand the new system, did they
‘buy-in’ to using it, and did it deliver better human
performance and hence better results?

25
Let’s deal with the second question…
It was Saturday. The family were having a regular get together at
the Beach House Hotel Hermosa Beach a perfect summer’s day for
dining in the courtyard, watching the in-line skaters, the bikers,
walkers, and of course the volleyball.
The two brothers’ kids had wandered off to the pier as people
settled back to enjoy the perfectly chilled Wither Hills chardonnay.
Finally, the older brother looked over his wine across the table at his
kid sister.
“Been dying to ask, but was told to be sociable first and not to gloat
or pester you too hard.” His wife punched in the arm. He laughed
and ignored her.
“How is it going?”
“Great. Project agreed some initial reading done; will be having
first interviews early next week.”
“I understand it’s about the theory of the link between staff
behavior and strategy.” She looked across at her partner who just
shrugged as if to say don’t look at me, I haven’t been talking, then
smiled wryly as if saying well not much. Her brother continued.
“I know you’re keen on the academic stuff, but the practical
manager is going to ask: What has this got to do with me? What is in
it for me?”
“Exactly, the point of it all.” she replied. “Look at it this way. If
you could be shown a way to manage your team that is easier, clearer,
systematic, and causally links staff actions directly to the goals and
KPIs, and so offers certainty of improving results, then you would use
it. Well, would you…?”
“Yes, of course. But it could depend on how easy it is to use.”
“Let’s assume user friendliness is not a problem. There is some
important background we need cover.” She filled up her wine glass
and sipped, her eyebrows marking her appreciation. She then
continued.
“If you were going to use it, wouldn’t it be better if you knew it

26
was the last system you ever needed to learn; that it was the last
leadership and performance process you ever needed to learn; that this
was the sure and certain process whereby you as team leader could
ensure your team were delivering as well as could be done.”
He looked reflective. “That’s lot of ‘never need learn agains’…?”
“Agreed”, she said. “But what if…”
“Okay, of course all those things would be of benefit.”
“Right,” she replied, “but you would get those benefits if, and only
if, the link, the theory of how staff behavior links to strategy was
valid, which is to say it was a validated causal and scientific theory of
say the status of E=mc².”
Her brother looked skeptical. “But this is social science; statistics
and all that.”
“Right again, you’re not just a pretty face.”
“Get on with it.”
“So to really solve the problem of a scientific and causal link, the
base to the theory must drive deep into social science philosophy,
nature of cause, structure of psychology, how neuro-physiology
interacts with our psychology, is psychology a science, and if so, why,
and how is a science defined…?”
He held his hands up in surrender. “Brings me back to my point as
a practical manager, what is in it for me?”
“We have been over that, and you agreed; what I am outlining now
is what has to be done to get a theory so that you gain the long term
full benefits such a theory offers. “ He looked into his wine. Her
partner, watching the exchange, spoke up.
“Phoned hotel management specially; had them get some fine New
Zealand wines; got hooked on the trip last year, first Mt Difficulty
Pinot Noir, which you had with your steak, and then this, the Wither
Hills chardonnay, which is just a delight perfectly chilled on a warm
summer afternoon.” Her brother raised his glass aloft in salute.
“Okay,” said the brother, “I think I am getting it. You are saying
that the theory of leadership, management, organization development,

27
etc, over the last twenty years are built on a weak intellectual base,
which is why we have had twenty of them in twenty years. By getting
the base right, we can build a theory that will not be superseded, that
will be the right theory of lasting value.” She nodded. The wife of her
younger brother spoke for first time.
“True science meets practical management. In the same way
quality engineering builds better bridges: Serious intellectual effort
providing serious and lasting solutions to long-term practical
problems.”
She looked at her younger brother’s wife with renewed
appreciation. She had not realized the depth of insight, and suddenly
understood what her brother saw in this quiet unassuming woman.
The woman’s husband reached across and kissed her on the cheek.
The group fell quiet. Her elder brother finally spoke.
“That about sums it. I for one am now fascinated to see the
outcome. But remember, I am no intellectual. Just enable me to
believe the work has substance, then show me what to do, and
oh…don’t make it too difficult or too top heavy with admin.” He
paused obviously with more to say; people waited.
“And good luck… of all people you deserve it and management
thinking in your hands is in very good hands.” There were
murmurings of ‘hear hear’. Her partner looked across at her and
beamed with pride, raising his glass to her as she stared shyly into her
lap.
And people turned to other topics as the kids crashed back to the
table.

28
The typical HR problems
It was later Saturday evening. The family had gone home. The
couple sat outside their flat at 1618 The Strand. They had shifted to
Hermosa Beach a year ago, first to be closer to his work, and second
to enjoy the life style. The building was old and a bit tired which kept
the rent down, but the location was to die for, and the neighbors a
most interesting group from composers and movie directors, to
property developers; none wealthy, but none really broke either:
Lively, fun loving, interesting people seeking and building interesting
lives.
The family had adopted Hermosa as its central get together point.
Her partner spoke first.
“Give me more background on the project, what happens now, how
will this fix it and is it broke so it needs fixing?” He looked to her
glass. “Another wine?”
“Yes...okay.”
He poured the wine while she collected her thoughts.
“There are three main HR problems that typically occur. First,
team leaders treat HR processes as ‘necessary admin’; they seldom see
it as adding real value to their team performance. Second, HR
processes are delivered in ‘silos’, so this year it is 360 degree, next
year performance management, then the year after, cultural
development. There is little continuity and little long-term visible,
sustainable result. And finally, the moment team leaders or HR lift
their foot off the pedal results slip back and plateau.”
She watched him counting off the issues. She loved the way he so
rapidly cataloged things in his mind and she knew if she asked in
several months time he would recall exactly those points. He never
needed telling twice.
She continued.
“In almost every organization I have been involved with I have
asked executives, ‘on a scale of 1-10, with 10 high, rate overall human
performance across your organization?’ There is the inevitable ‘it
varies, some good some not so good’, but when pressed for an ‘across

29
the group response’, have I never had below six, and only once have I
been offered above eight. The typical (95% of answers) range is 6.5
to 7.5. The one ‘high’ was a unique family situation that had nothing
to do with the HR processes.”
She paused, and summarized. “There is significant scope to
improve.”
“Okay”, he said, “so while it is not exactly broke, there is also a
very large opportunity to get it better.”
“Exactly,” she said and concluded, “Current HR global best
practice is much, much better than doing nothing, but it is still not
aligned with the needs of the business, and current global HR best
practice does not drive business results.”
He picked up where she stopped. “Current global HR best practice
does not quite deliver.”
She shook her head and mouthed ‘no’. He continued, “It seems to
me bit like a bad problem solving system, working it harder may get
some temporary improvement in results but at the end of the day the
system is broke and needs to be replaced. In the case of HR processes
and systems that demands a return to intellectual basics in a way that
most managers will merely duck for cover, which is why people like
you got to do this.”
She smiled at him. “I’m tired, bed…?” she said.
Now, the third question…
It was Sunday; they were enjoying breakfast at a favorite café on
Pier Avenue.
He sat back with his flat white.
“Can we go to the project again, just for a few minutes?”
“Sure, but you know I love talking about it, so you’re welcome to
open up the topic whenever I don’t.” He smiled at her.
“The questions are: what exactly is the link between strategy and
staff behavior? And how will solving that issue help practical
managers? I understand the second question, about a thorough causal
and scientific theory providing a lasting and effective solution to the

30
problem when applied by team leaders and how that will secure
superior sustainable staff performance. But why hasn’t the first
question been answered before now?”
“Good question,” she replied. “There is no single, simple reason.
In some large part the answer lies in the issues that follow but in
summary.”
She checked them off on her fingers:
“Management has been seen as distinct area of study, which has
been a mistake, since all management is initiated by people and the
study of people is social science.
The intellectual tools for the study of social science have been
weak, too weak to get to grips with the issues of complexity and
interconnectivity of the variables of social science.
The fundamental background has been weak with no in depth
understanding of people, knowledge, and social causation.
Decisions needed to build an effective link between staff behavior
and strategy required confidence in relation to issues of psychology,
epistemology and social science causation that few management
theorists would tackle and which left their work shallow and
intellectually vulnerable.
The very nature of science has been poorly understood, in
particular what we need do as scientists if we are to build secure,
lasting theory with solid intellectual foundations as opposed to
building on weak foundations.”
He nodded, reflective, then summarized.
“Management theory has been treated as if it is separate from social
science, and for various reason academics and management thinkers
have followed each other down what amounts to an intellectual dead
end. The upshot is they have not grasped these issues and dealt fully
with them.”
“Yes exactly”, she said, “Management is part of social science,
hence is eroded and beset with all the issues and complexities of social
science which include the issues that beset science itself. To do it
properly is demanding. But then that’s the fun of it.”

31
They sat for some time in companionable silence sipping their
coffees.
“What’s next?” He asked.
“I’m digging into the reading, it is dour stuff, but powerful
conceptually, not at all easy to get one’s mind around it. And next
week, I meet the CEO of a company headquartered in San Diego
using this new system, so I will explore performance reality before
drilling further into the intellectual issues.”

32
Review questions
1. Do you agree:
1.1. Organizations will benefit by developing effective leaders at
all levels in organizations, not merely at the top.
1.2. If we improve organization performance then the economy
will improve, which will improve community wealth and
hence health.
1.3. Human performance is a crucial strategic factor in the results
(Profit and loss, for example).
1.4. A key purpose of organizational theory is to identify the
simple, clear HR processes that enable team leaders to achieve
better results in their team than they would otherwise.
1.5. The HR processes for team leaders need to be simple to use
and get the result.
2. There are multiple theories in social science. As a matter of
principle is that the correct position or will there eventually be just
one theory.
3. Describe the principle of ‘first things first’ as you would apply it
in developing a business plan for a new product.
4. Describe the principle of ‘first things first’ as it might apply in
intellectual effort, for example in developing HR processes for
team leaders that enable better team performance.
5. Do you agree that current HR processes are effective, but have
intrinsic limitations? To overcome the limitations it is necessary to
return to the fundamentals in social science and to rebuild
understanding from a secure intellectual base.

33
2. Payback and the CEO point of view
She did not think she had seen a man so, well so big. His office
was huge, but totally in scale with the man. At least six foot six and
she guessed two fifty pounds, with the taut laughter lines of someone
fit. She was reminded of her partner’s new obsession with things New
Zealand, that football team, that silly game without pads and piles in
the middle, rugby, yes those forwards they had met in that mount
place, on the beach; the All Blacks.
His deep voice came from the bottom of his frame, yet was gentle
and she felt it reached her soul. She understood exactly why he was
CEO; he could never be anything else.
She looked beyond him out the window over Kethner Boulevard.
The harbor was a distant peek of blue between the buildings.
“Glass of water?” he was saying.
“Err, no thank you.” She felt somewhat intimidated. He smiled.
“Great view isn’t it, sometimes I wonder how I get any work done,
better sitting just contemplating.” She nodded. “I really appreciate
your taking an interest in us.” She stared at him quizzically.
“Yes.” He said. “We are not top of many people’s list, despite the
fact we are doing very, very well, now, and to hear about why, is why
you are here; right?” The warmth and openness of his smile began to
disarm her. She decided she trusted him. She visibly relaxed. He
nodded.
“Good.” he said. “Now, let’s get to the point. From the point of
view of a CEO … no can’t speak for all CEOs, so from my point of
view it is about results, and for us that’s the numbers.” He paused,
and sipped his water.
The job of CEO is to get results
“I see my accountability as very clear, get numbers, for all
stakeholders – so shareholders, bank, staff, customers, and
community. Sometimes you have to walk fine lines between
competing pressures, but that’s how it is, and the calls are mine, if I
get it wrong too often …” he looked up and smiled at her … “then I

34
guess there are those who will do something about that.” Then with
sly grin, “Or try to.” They both laughed.
"What I like about the way we manage now, after this theory we
are here to discuss was implemented, is that it shifts my focus, it just
feels right. The concept is wonderfully simple, for each goal there are
actions that need to be delivered in order to achieve the goal; you
can’t play top tennis without practice, or if you don’t have a
backhand.” She nodded; she was familiar with the goal-action
principle. He continued.
“Well, if we identify the goals to be achieved in every role relative
to the strategy, then there are actions that need to be delivered, called
ideal actions. If sound decisions prioritizing ideal actions are made,
and if their aptness is sound, and if we get the ideal actions delivered,
then presto, the money turns up.” She laughed at his enthusiasm.
“Sounds like magic,” she said.
Leaders must be educated in the details before they can use the
theory
“I know,” he replied, “I wanted to bring that out, but damn it, it
works. It is magic, when I think of all the leadership nonsense and
stuff I have read over the years, this works, and the idea is brutally
simple. At first we thought it all too high level thinking then as we
became familiar we saw it’s not.”
He paused. “You familiar with frames?” she nodded. He
continued. “The theory is correctly seen as conceptually ‘high
level’’’, he signed the quotation marks as he continued.
“And is often dismissed as a result. This is a common mistake
which fails to realize we all work psychologically via frames, and the
high level frame needs to be supported by the person understanding all
the key issues that go with the concept.” He paused to make sure she
was keeping up.
He continued.
“We call this ‘packing’ the concept with everything a leader needs
to know to get top results from their team. The concept itself is high
level, and without the ‘packing’, without all the stuff derived from the

35
theory, it is not very useful except for people who know instinctively
how to translate a high level concept into practical action, and most
people are not able to do that. So we came to better understand what
is ‘education’, and what is ‘training’. Education is that which goes in
memory, providing the background ‘packing’, to the concept. We
found our education needed to be repeated several times, where
leaders deduced all the consequences of the theory, and then ‘packed’
it back into the theory in memory, and then…” he stressed the
‘packed’, “…they could use the theory to improve performance in
their team.”
“You call that education, not training?” she asked.
“Yes”, he replied. “Strictly it is. It is memory, study, knowing the
details in your mind, before you can use the theory with impact and
effect. Training is the detail of how to use and apply that knowledge.
Both education and training are essential...” He sipped his water. She
made notes.
“So,” he went on, “implementation is a lot more difficult than
suggested by the very simple concept. It takes lots of education, for
unless it is consolidated in leader minds, they revert back to old stuff
that does not work as well, or revert to what they think leadership
should be and that never works very well. Then it takes lots of
training and coaching to ensure thorough implementation.”
The business is driven by human behavior
“But what I like most,” he rocked back in his chair, “is that it
places the whole thrust of the organization, its success and its ability
to satisfy all stakeholders, squarely on the people, beginning with
me.” He rocked forward and he met her eyes with an intense,
enquiring gaze.
“People choose to contribute or they don’t.” she said.
He smiled.
“Exactly,” he said. “So the cultural issues get very, very simple,
and that choice is the very base of it. HR becomes the central driver
of results across the organization, in a crucial partnering role with
every team leader, with the HR Department delegated the task of

36
following through and ensuring all team leaders are fully educated in
the concept, then trained in implementation, then monitoring they are
doing it to standard.” She nodded making a few notes; she was
familiar with these ideas and the much strengthened and intrinsic role
of HR under the new theory. She wondered about the translation of
the philosophy into the organization.
“Another important point,” she looked up at him, “HR emerges as
the process of rolling out strategy, and is not intrinsically implicated in
the formulation of strategy. HR is after the strategic event.” She
nodded.
“Yes,” she said, “I understand that; that under the theory strategic
HR is about aligning human performance with the strategy and is not
about integrating HR processes into the strategic decision”.
“HR, when bought to account in strategy is a cost line; the cost of
acquiring, training and retaining the staff needed.” He nodded again
smiling.
Social accountability
“You mentioned community as one of your stakeholders…?” Her
voice tailed off. He nodded.
“We have a clear and simple view of our social role which is in
complete overlap with our owner’s expectations. And much of the
clarity has emerged from the OPD-SHRM11
system which is a strategic
HR system for sure, but the system rests on well developed
philosophy of both society and of psychology.” He paused and sipped
his water.
“The philosophy is important to you?”
“Crucial.” he replied. “It is very much my job to instill a
philosophical base into the place, not by way of intellectual lecture,
but by being verbal ready, being able at any moment to justify and
relate what we do to the community in which we live.”
He paused again, ‘Not yet.’ He said aloud. She looked at him with
11
Ongoing Professional Development – Strategic Human Resource Management

37
raised eyebrows. “I am going to use some power points, but have
decided to do this part verbally. Sorry, my talking aloud to myself can
be disconcerting, tend to get lot of good natured banter over it from
my team.” She smiled.
“Makes for openness which makes for trust,” she said. “So I do not
mind it at all, but can understand how your team might tease you.” He
nodded.
“Thank you, they do,” as he chuckled to himself.
“Social obligations we see as two fold. First, to be a good citizen.
That changes as the norms and wants of the community change.
However, we do not see ourselves as ever leading any social change,
in fact, we conserve yesterday’s norms, and today’s norms only
become part of our norms when the community has really made up its
mind. So we sit somewhere just past yesterday but not quite up to
today, so to speak.” He looked at her questioningly.
“I understand exactly.” She replied. He continued.
“And that is exactly how it should be; we conserve society,
securing that which is, while the activists push and protest so shaping
that which will be. For our people, they may protest, but when at
work they must accept the corporate conservation role and do a good
job.” He again sipped his water. She sat and reflected on social ethics
and ethical structures and this link between corporate social ethics and
those of the individual. He picked up on her thinking.
“There are very real psychological tensions here for those who
protest and simultaneously work in a corporate organization. It is rare
to find those who can handle it, and even rarer to find those who can
work alongside them and handle the duality.” He looked grave, and
then nodded as in closing the topic.
“The second responsibility is to stay in business, and that is where
the numbers really matter. Our owners want good returns, we need
capital to replace plant, and we need more capital to develop new
ideas and new aspects of our business.”
“We need to make this capital through making profits. Over the
years, there really has been a lot of nonsense written and talked on

38
this. Profits unequivocally belong to the business. Now there is
always tension over the distribution of those profits. Not so much
paying fair wages, but that can happen, rather it is ‘paying more’
because we can afford it. Corporate executives and owners can get
greedy, so some power structures – such as legislation, regulation and
unions - that moderate against that greed are useful, although at times
a pain in the butt. Personally, in this American system of ours, I think
we have a bit to learn in these areas.” He sipped the water.
“The fundamental social obligation is to make profits to sustain the
business, and to ensure continuity of employment so wages and
expenses continue to be the foundation of community wealth.
Moreover, without wealth there is limited health. Do you know New
Zealand?” He asked.
She looked up in marked surprise. “Yes I do, we visited there
fifteen months ago.”
“I did too; have a friend who runs a similar white wear company
headquartered in Auckland. Well, we holidayed on some Polynesian
islands; three families moved about on a charter yacht. We visited
with several island families, and couple of times had this sort of
discussion. I was amazed at how they understood these questions very
clearly. The reason was very simple; they all could relate personal
experience or that of family or a close friend who had their life style
devastated when the copra company or fishing company or fish
packing plant left the village. They knew exactly what is like for a
community to loose the core of its wages and expenses. We have lost
this insight; it is not personal any more. But we better get it back if
we are to continue to grow in this emerging world of huge Asian
economies.”
Financial payback
They talked on social obligations, and then she asked.
“What got you started with OPD-SHRM?”
“You’re right, we get ahead of ourselves. That is simple; our Vice
President HR went to a seminar. He came back reflective and
wondering about this link between soft stuff and hard stuff. The

39
numbers looked very interesting at a stage when we were struggling to
serve our owners, and generate the capital we needed.”
“We have over four thousand employees: Two manufacturing
plants in USA, one in Mexico; Distribution and sales offices
throughout USA, Europe, Australasia, and are developing them in
Asia. Our revenues are over two point five billion; our profit to sales
back then struggling downward at five percent, yes, I was interested in
stopping the rot and gaining a substantial profit increase.”
“I can say it all worked, and today nearly three years on revenues
are growing just short of double digit, and our profit to sales is over
nine percent and we will improve on that in the coming twelve
months. Lots of factors, but the central, biggest of them is the OPD-
SHRM system and philosophy. The key thing that happened was it
challenged us, demanding we think clearer and better. We did, in
time, and the numbers tell the rest.”
“Reading between the lines, it sounds to me that there was quite a
bit underneath.” He smiled with a knowing wink and gesture that
said, yes, you will see.
Governance and HR management
He paused.
“Yes”, he clearly said to himself. He looked at her. “Before going
on I think there is a sort of orientation that needs to be given by the
Vice President Human Resources (VP HR). It really is his thunder; he
was the one who got all fired up by it. Mind you, it increased the
clout of HR”, he looked away and smiled to himself, “but with your
ongoing involvement with us that will unfold for you. I am sure I
think a briefing by him useful.” He rose, and moved to the door,
“Come on he is sort of expecting you.”
The formalities over, the CEO left and the VP HR settled back.
“I take it I am to give you the overview of where HR fits in the
overall scheme of organization design and development.” She
nodded, he continued,” we will be spending more time together later,
certainly now, the boss has accepted you, you do come with an
impressive reputation,” she looked up startled, “but,” he said, “that’s

40
for the boss to cover that with you. So let’s start.” He paused and
clearly collected his thoughts.
“Human performance is a strategic factor in profit and loss, few
would disagree, and HR is arguably the most researched but least
understood of all the strategic factors that dominate long-term
business success. Because of this lack of understanding relative to all
the major strategic factors – sales, operations, marketing, and finance;
human resources offer the greatest potential to improve profits at the
same and even lower revenue levels.”
The reality of current global HR understanding
“So,” he continued, “we can ask that if HR is so fiercely researched
why is it not better understood and managed?”
“Before fully addressing this question, a brief summary of some of
the facts of current global HR application”.
He switched on the data projector.

41
Current global state of HR
Global HR best practice consists of a range of unconnected
activities with strategic HR having limited impact due
poor definition and weak underlying processes.
Research shows a number of problems.
Team leaders find HR an admin chore that does not add value.
HR activities are delivered in uncoordinated silos as latest new
initiative, and frequently achieve limited long term
sustainable results.
Once team leaders lift ‘foot of pedal’, performance slips back
and plateaus.
Why?
Background fact: Globally there is no clear scientific and
causal link between strategy and staff behavior
(including a definition of SHRM).
Proposition: If we had such a link team leaders could be
guided to use it to achieve sustainable staff
performance.
“Yes,” she said, “the Prof has covered much of this with me…”
“Would have expected so… Now… Much lip service is given to
‘leadership’, and there is a strong view (83%) that improved
leadership effort will get a better result.” He paused then continued.
“Our surveys12
have shown that only 74% of team leaders think
12
This information is on the credibility and understanding of strategic HR, and is
part of the OPD Human Performance and Organizational Capability Audit. This
particular data is from 12 surveys in Auckland from 2004 to 2006, average of 4
members of the executive team, and two senior team leaders per company. Surveys
since have shown no significant change. Companies from retail, service, and
manufacturing, eight companies in range 120-370 staff, 3 in range 550-800 staff and
I over 1500 staff. The data was thin when subdivided, but indications are that there
is no noticeable variation between industry type, company size or management

42
that the current HR processes will in fact deliver improved team
results. But even they, despite offering positive survey results, are not
fully committed to doing for example the annual performance
appraisal, and when interviewed individually, in fact hold mixed
views as to its usefulness in improving team results. Only 69% are
actually clear on HR processes and how to implement them. Overall,
a significant number, 25 to 30% of team leaders believe leadership
important but do not believe current HR processes will deliver.”
“The survey results go a long way toward accounting for the
current facts and the mixed bag of global HR application.” He
concluded.
“We have had a wrestle to get all team leaders committed to full
implementation of HR processes? We have had a wrestle to get our
directors advocates of HR as a primary business profit center? They
did not ‘see’ it.” He paused and glanced up.
“You understand buy and burgle don’t you…” she smiled at him.
“Yes.” He nodded.
“Good. Current global HR is very much better than doing nothing,
but clearly there are issues, from all points of view, academicians,
senior executives, HR practitioners, and team leaders.”
“Why?” he leaned forward, “that was the issue, why? Again, if HR
is so fiercely researched why is it not better understood and
managed?”
Finding an answer
He continued.
“HR research effectively began with the Hawthorn experiments
early last century. Idea, after idea has been offered, all offering
improved practice, yet none grasping the essence, none quite filling
the gap, always leaving the field open for the next big idea.
level; This we interpreted as indicating management understanding drawn from the
current global understanding of HR and leadership to achieve greatest human
performance, and is independent of industry or company size.

43
Unfortunately this provides the guide to finding the answer to our
question; the only common factor through the whole period, from say
1920 to 2010, has been the intrinsic method, the ‘thinking framework’
which orientated all researchers and executives and within which all
questions and hence all results were framed.” He paused … she
nodded, she was familiar with this, but had not expected this level of
grasp in a commercial business. He went on.
“I say ‘unfortunately’ since this necessarily involves quite
intellectual issues, not normally the domain of the practical manager,
certainly not the domain of the practical team leader, but does involve
the most senior executives and directors.”
The issue
He got up and went to the flip board and lifted the top cover sheet:
Human performance as a strategic factor in profit and loss can
be greatly improved to deliver greatly increased profits but if and
only if the directors and senior executives actively grasp and ‘see’
the alternative design specifications and then select and direct
team leaders to implement the theory that is both superior and
sustainable.
He sat down.
“In short, it is the directorates that must come to terms with the
intellectual issues of ‘organization design and development’ then
make a selection based on their understanding of the options. From
the choice arise the HR processes and the choice itself then orientates
team leaders to implement those processes.”
She asked the question to which she knew the answer.
“Why do businesses need even think about it? Why is the global
academic community not offering this so called new and superior
approach to organization design and development?”
He looked at her, and smiled.
“I think you know the answer to that, but a fair question, the
answer is that in due course they will come to do exactly that. Right
now however, while the insight into the alternative design

44
specification is new and not well known, the world tends to continue
to do what it has always done. The old design specification produces
limited results that are better than doing nothing, but due its intrinsic
limitations, will not, and cannot produce the level of result that can be
achieved with the alternative design specification.”
“Albert Einstein offered the insight that we become what we think
about most of the time. We certainly act according to what we think
about and what we ‘see’. This stuff is a challenge to boards and
directors, to show that to fully gain the potential of people in their
business it is essential they ‘see’ how to do that, and doing more of the
same, more of what has always been done in the way it has been done
will not achieve that.”
“Directors need improved theory of organizational design if the
true potential of people in every business is to be unleashed. For the
moment, this will take them into intellectual areas in which they are
not fully comfortable, and may even regard as ‘soft-stuff’ and a waste
of time for hard headed men and women committed to improving the
profits of their businesses. In this judgment they would be wrong,
thereby limiting their business to doing what it has always done and
generating the results it has always got.”
Same cultural choice from top to bottom
“I am sure you understand what happens if a CEO comes into
policy conflict with the Board?” He looked quizzically at her.
“Yes,” she said, “if the CEO loses such a wrestle then they either
comply and deliver or resign.” He nodded.
“Exactly.” He said. “Now imagine each team has its own board of
directors, the team leader and those they report to constitute that
board, along with team members, and it is this board that sets the ideal
actions for the team.”
“This set of ideal actions is the ‘policy’ of the team, with the team
leader accountable for implementing that policy. Further, that these
ideal actions captured over time represent the collective judgment of
several capable managers on the best way to achieve the greatest result
in the role.” She nodded she understood.

45
“Secondly,” he went on, “We have found there is not several ways
to skin a cat, what with processes, safety, security, quality … etc …
there number of ways to achieve a KPI reduces sharply. In fact so far
we have found it reduces to just one way. People either do that or they
do not… and,” he said holding up his index finger, “They need do it to
standard.”
“Now,” he went on, “Imagine yourself a team member who
disagrees with some ideal actions in their role, but the collective
judgment of the board is that those ideal actions are correct. What do
you think should happen?” she paused reflective.
“The person must either comply and deliver, or resign.” She said.
He nodded.
“It’s not how it is universally seen at the moment, but it is
balanced, fair, and essentially asks people to do exactly as the CEO
must do; to assume full responsibility for their behavior at work.” He
paused.
“The second question,” he continued, “is what if they do not
comply and perform.” He paused; it was clear he did not expect and
answer from her. “We have got lot tougher on that over the last two
years. We are keen to work with people, getting ideas on how to do
things better, but at some point judgments have to be made as to the
best way to get the greatest result - the ideal actions, and people agree
that these ideal actions are the best way to get greatest result. Once
agreed, we expect people to get on with it in a focused and disciplined
manner, if they choose not to …” He stopped and spread his hands
wide.
They discussed the issues for another twenty minutes, before the
VP HR guided her back to the CEO office. He warmly shook her
hand as she expressed her gratitude, and he an obvious sincerity to
meet again and continue the discussions.

46
Review questions
1. Do you agree:
1.1. The role of the CEO is to get results.
1.2. The CEO is responsible to the Board for overseeing
implementation of strategy.
1.3. For every goal there are actions called ideal actions that must
be acted out if the goal is to be achieved. It is called the goal--
->action principle.
1.4. Ideal actions offer greatest chance of greatest success. Doing
them does not guarantee success, not doing them guarantees
failure.
1.5. An organization is formed to achieve the strategy.
1.6. Every role in the organization is defined by goals derived
from strategy. Therefore we can describe an organization as a
collection of goals.
1.7. It now follows that in every role there are ideal actions
derived from the goals that define the role.
1.8. If the ideal actions are delivered then we get the goals, and if
we get the goals we achieve the strategy.
1.9. We see with our mind not with our eyes. Buy and burgle
conveys the idea that we see with our mind. So if we look at a
house to ‘buy’ we see things relative to buying the house, and
if we look at the house to burgle we see things relative to
burgling the house.
1.10. A ‘frame’ is a structure in our mind it is how we work as a
species. What is on a frame is our ‘theory’ about what we are
looking at or thinking about. Frames are an essential structure
of our psychology, what is on a frame is ‘us’, our unique point
of view, thought or attitude.
1.11. We know more than we think, the issue is recall not

47
storage. ‘Packing’ is the idea of having a simple word or term
on a fame that we easily recall, then we can use that to access
the detail stored in memory. We ‘pack’ into our brain the
insights and ideas we need, and use a simple up front frame to
enable access to what is packed when we need it. ‘Packing’
results in ‘nested frames’, all linked to the top frame which is
‘orientates’ us to the insight and information we have packed.
1.12. We can learn to make better use of our frames and the
process of packing.
1.13. We can manage our minds making better use of our brains
if we choose.
2. Consider an operational role in your company. Think of the KPIs.
Now imagine the ideal actions derived from the KPIs that must be
acted out if the KPIs are to be achieved. Now consider the impact
on the ideal actions of the operations processes, policy on safety,
security and quality, the planning processes and the requirements
of teams that this role must serve and satisfy. Question: Within
this complexity, how many sets of ideal actions do you think will
fully get the job done?
3. Reflect on the quote and answer the final question: “Now,” he
went on, “Imagine yourself a team member who disagrees with
some ideal actions in their role, but the collective judgment … is
that those ideal actions are correct. What do you think should
happen?”
4. Is it essential for people to choose to be successful in their job?
Consider the reasons for your answer, and then for each reason,
give a counter reason. On balance of the arguments, which answer,
‘yes’ or ‘no’ is the correct one to adopt. What should happen if
they choose not to be successful in their job?
5. Who is accountable for the organization design strategy
implemented in the organization? Will the nature of the
organization design strategy influence the results?

48
6. Describe the goal ---- > action principle.
6.1. Discuss how goal --- >action principle is the link between the
‘hard and soft’ in organizations.
6.2. Comment on how the goal --- > action principle that makes
HR the crucial function for roll out of strategy, and turns HR
into a proactive driver of organization success.
7. Do you agree: The CEO is responsible for the roll out of strategy,
therefore it is the CEO who retains responsibility for signing off
on the goals (KPIs) and resulting ideal actions in every role. How
do you think this can happen in practice?
8. Quote: “Social obligations we see as two fold. First, to be a good
citizen. That changes as the norms and wants of the community
change. However, we do not see ourselves as ever leading any
social change, in fact, we conserve yesterday’s norms, and today’s
norms only become part of our norms when the community has
really made up its mind. So we sit somewhere just past yesterday
but not quite up to today, so to speak.”
8.1. Do you think moral/ethical considerations important?
8.2. Do you think this moral/ethical position appropriate? What
should it mean today as regards:
8.2.1. Size of profits and distribution of profits? The size of
the income gap between the floor sweeper and the CEO?
8.2.2. Global warming, the environment, and pollution?
8.2.3. Staff safety?
9. Do you think the owners/board of directors should have the
absolute and unfettered right to move a business off shore and
thereby seriously reducing the economic base of the community in
which the company was operating?

49
3. The OPD theory
They settled back into the CEO’s office.
“As discussed over coffee, you will meet several Executives and
the OPD consultant, they will introduce more details. I will just give
it from my point of view.”
“That’s just fine, in fact more than I expected, thank you.”
He nodded.
“Regard it as part of a wish in me to see things improved that need
improved.” He paused, and then went on.
“Now, a couple of key issues. You understand we see with our
minds more than our eyes.” She nodded she understood. “Good,
second, the organization is separate from people.” She nodded.
“I accept that, but I do need work it through.” She added.
“No problem, you can do that. Third, for every goal there are
actions needing to be acted out if the goal is to be achieved. This is
called goal-action principle. It is exactly as in sport, with ideal actions
underlying every goal – and these ideal actions are not in fairyland,
rather they are actions that ensure greatest result.”
“Yes,” she said, “I have read some of the literature, and the paper
on the theory.”
“Okay, having got this far, then the rest falls out.” He changed the
data slide.
Architecture
“We have the cascade of goals from strategy through the
organization structure; this is all called the architecture. Again, the
Consultant and the VP HR will take you through details. It means that
for every strategy and or goals-KPIs there are ideal actions that
underlie the strategy that need to be acted out if the strategy is to be
achieved.”
“You call setting up the architecture ‘leadership 1’”. She asked.
“Yes. Although strictly we don’t call it that, it is called that in the
OPD-theory.”

50
“And,” she said, “ideal actions are such that doing them does not
guarantee success, but not doing them guarantees failure.”
“Exactly. Let’s move on. Get overview from CEO point of view. ”
Linking the architecture to psychology
“The admin or architecture is important, in particular getting it
clear on paper first.” She nodded agreement.
“I know you are meeting with the OPD Regional Manager and
consultant, so I won’t go over what I know they will discuss. It is very
important to understand this diagram is very precise. This is called an
Ashby diagram, built using Ashby tools. As I said, I do not want to go
into detail, but every aspect is precise. Think of the boxes as frames,
and the arrows between the boxes mean ‘has an effect on’. The box
and the link I show I want people to ‘see’ the organization, and then in
each box they insert the details of their team, their people, their level
of human performance… etc. This is the theory, the detail inserted by
each team leader is then the application of the theory to the empirical
circumstance of their team. It is exactly the same as for all science.”
She read over the power point. He waited until she looked to him.
“This is the first stage”, he said, “called building the architecture. It
begins with strategy then goals are cascaded from strategy and the
organization role structure is defined at the same time. Goals are
grouped ‘like with like’ to create teams and roles in team, with roles
then defining jobs.”

51
She nodded she understood. He bought up the next slide.
Strategy
Teamstructure,
rolesinteams.
Idealactionstoachievegoals
Thebehavioralstructureisthecollectionofidealactions
underlyingthestrategy
Goals,KPIs
Leadershipactions1
Setuparchitecture
TheOPDtheory
architecture

52
Strategy
Teamstructure,
rolesinteams.
Thebehavioralstructureisthecollectionofideal
actionsunderlyingthestrategy
Goals,KPIs
Psychologicaltargets
Leadershipactions1
Setuparchitecture
Leadershipactions2
Buildperformanceculture
Engagement
Clarityofgoals,KPIs.
Visualizationofideal
actions.
Commitment
Personalchoice.
Professionalism.
Teamleadersupport.
Buildownframeof
professionalmind.
Buildframeof
referenceforwork.
Managecommunity
frameofreference.
TheOPDtheory
linkingarchitectureto
psychology

53
“This is the next step, leadership 2”. He said.
“But”, he stressed, “it is only real when in mind and being used.
This is the issue of ‘seeing’ with minds not eyes. So this is the
manner of how we need ‘see’. The key links to psychology;
‘engagement’ as people visualizing the ideal actions, a very different
definition and ‘commitment’ being people committing to their own
success, not committing to the company or the team leader, with a lot
of emphasis on professionalism. I want to talk more about that in
minute.”
“Leadership 2 is the leadership effort at linking the ideal actions on
paper with the minds of people who have to do the ideal actions?”
She asked.
“Exactly,” he said, “the consultant and my people will go over the
details in practice. So, from my point of view, what is this stuff? Well
it is the tools, the way I want every team leader to ‘see’ how what a
team needs to do to get results link to the psychology of the people
who must do it. The OPD-SHRM system is a set of tools whereby the
OPD-theory is applied into every team.” He sat back and viewed her
across his desk.
“Only when the theory is acted upon is it made real, and it will only
be acted upon when it is the way the leaders ‘see’ what it is they need
do.” She said.
“Exactly! Now, if you think you have got it there is more I would
like to share, again, this stuff is my POV, the CEO perspective.”
“Okay, I’ve got it, there are details and questions I would like ask,
but I am sure other people will explain exactly how it happens.”
“Good. Let’s talk about what I use as the paradigm, because this is
bit complicated but it is critical that this is properly understood.”
Strategic human resource management information systems
(SHRMIS)
“You will be familiar with HRIS systems.” She nodded, “Well, we
use that to generate traditional HR statistics, absenteeism, turnover,
sickness and accident, overtime, etc. None of that drives performance,
it merely administers performance, but it is important. It reflects

54
aspects of what people do, we use it and make decisions based on it.
But, when we want to change any of the numbers, we use the OPD-
SHRM system which is both organization design structure and
cultural and implementation system. This is clearer in the idea of the
performance stack, which we will look at shortly. For now, it is
important to understand where SHRMIS fits within the theory; this is
part of the ‘packing’ of the theory.” He sipped his glass of water
before continuing.
“There are a number of processes that arise directly from the
theory; they are not ad hoc, and are driven by the theory. Therefore, if
a team leader is applying those processes then they are implementing
the theory in their team. Would you agree?”
“Yes.” She looked at him, reflectively, “Then obviously one of the
key issues across the organization is ensuring all team leaders are in
fact implementing the key OPD-SHRM processes in their team. I
would imagine you would still have issues with the quality of the
implementation, but a useful start point is knowing that team leaders
are doing it.” He smiled and changed the power point slide pointing
to the additional box, SHRMIS KPIs.
“This,” he said, “is the SHRMIS system, monitoring the extent the
team leaders are delivering those processes consistent with the theory,
and so ensuring their team has best chance of greatest success. It is
called leadership 3, the final stage of monitoring and feedback.”

55
Strategy
Teamstructure,
rolesinteams.
Goals,KPIs
OPD-SHRMIS
Monitoringteam
leader
implementationof
OPD-SHRM
processes
Psychologicaltargets
Leadershipactions1
Setuparchitecture
Leadershipactions2
Buildperformanceculture
Leadershipactions3
Maintainforsuperior
performance
Engagement
Clarityofgoals,
KPIs.
Visualizationof
idealactions.
Commitment
Personalchoice.
Professionalism.
Teamleader
support.
Buildownframeof
professionalmind.
Buildframeof
referenceforwork.
Managecommunity
frameofreference
TheOPDtheoryofstrategic
humanresourcemanagement

56
SHRMIS is new aspect to the HR industry
“In effect,” he said, “this represents a new way of looking at HR;
previous ideas on HR metrics were all about consequences, HRIS
after the event. SHRMIS is about results, what HR does and needs to
do to align staff behavior with strategy prior to action. It is
fundamentally different, and we use it all the time, it drives the
organization. We then also use HRIS and actual results, these basic
metrics tell us about the quality of what team leaders have done,
whereas SHRMIS metrics tell us what they need to do and are doing
now.”
“With SHRMIS we can see if necessary processes that will deliver
results are being implemented and actual results give us insight into
the quality with which they are being implemented. The comment
about no red, relates to the bar graph used to view SHRMIS metrics in
a team, the standard is in red, then when the processes delivered to
standard it is blue, so if any there is red on graph in a team, then that
team leader has not implemented the processes. We check this first.”
He paused.
“If any issues arise in results, then we check to ensure all the
SHRMIS KPIs are to standard. Then, we look at the HRIS metrics,
which tells us bit more on things like turnover, absenteeism, then
someone goes in to assess what is going on. There are two outcomes:
first is the OPD-SHRM system implemented to standard, including
commercial issues and that could include the judgments on the ideal
actions. Second, if not implemented to standard, then this is
immediately addressed.” He paused, and then went on.
Leadership processes are the same at all organization levels
“Intrinsic to the theory is that the processes needed to get best
result from a team are exactly same at top, say for the CEO as they are
at bottom for the lowest level of supervisor. The content for the team
alters, becoming more complex and demanding intellectually, but the
leadership processes are the same. This has important consequences,
for example, there is a standard leadership-training course, which is
about implementing the OPD-SHRMIS processes to standard in a
team. These skills are refreshed every two years. Second, it has

57
enormous consequences on our talent management; those with talent
are those who can get a team to perform using the processes and their
development depends on their intellectual capacity. But the
foundation is the ability to get results with a team; if they are not able
or not willing to settle in and do this, then they go no further.” She
made notes as he waited for her.
The OPD executive paradigm
He changed the slide in the data projector.
“Here is the paradigm, at least the one I use. It is merely a
simplified version of the full theory. The bit we have not covered, and
will not today, is the bit about strategic HR information systems,
measuring team leaders are doing it and the dashboard showing if they
are doing it to standard and effectively. It is not complicated; all the
items in the previous theory are measurable. Therefore, what is here is
what I keep firmly in mind when thinking about staff and staff
performance. This guides how I think and so guides what I do. And
seeing it is the way team leaders right thought the organization ‘see’
it; there is thorough psychological and verbal overlap.”
“ Okay,” she summarized, “The shared way of seeing is what
makes the theory the paradigm.”
“Exactly.” he replied, “Prof, a very good long standing friend of
mine said you wouldn’t miss much.” She blushed.
“And he said you were delightfully coy about your own talents. A
very endearing trait, but remember to make sure you are assertive
enough to move yourself forward. Although the number of projects
you declined suggests to me you know exactly how to do that and
keep people on your side.” She stared at him in some amazement. He
laughed.
“I’m CEO of a two billion dollar company. You really think you’re
sitting here without my researching you?” He threw his head back
and laughed a deep belly laugh as she joined him.

58
Strategy
Monitor
SHRM
processes
done and
done to
standard
Guide
people to
do it
Goal/KPI
cascade
Ideal actions
The OPD-SHRM paradigm

59
Business development systems
“So you begin to see into how it works; in effect it is a device
orientating team leaders to better see what to do to get superior results.
This is a core, fundamental issue. I saw it as the way we work as a
species; we see the world via thoughts or views or theory we hold
about the circumstances … that is what sold me. But we needed to go
through the selection process, so first we investigated other business
development frameworks. We were already using Lean and Six Sigma.
Both worked fine, but had their limitations. We also knew of business
process re-engineering, balanced scorecard, and others. We spent bit
of time delving into all of them. We ended up with this, and we
agreed with it.” He handed across a sheet of paper with a diagram
relating the OPD-SHRM system with other business development
systems.
She read the diagram and notes.
”We concurred, that where OPD works to build an executive and
leadership paradigm which provides the tools to implement it across
all aspects of business, the other processes do not. In addition, the
HRIS systems do not get close to delivering SHRM as defined by the
OPD-theory. I forgot to mention that, under the theory, strategic HR
is defined as aligning staff behavior with strategy via the behavioral
structure, remember the set of ideal actions that must underlie every
strategy.” She nodded, thinking she was getting tired; she was excited
by all this, but her brain was beginning to get soggy. He watched her,
knew she becoming tired.
“Let’s go to the café and have a half hour break.”
“Thank you, a break and stretch would be great.”
“The final thing about business processes theory” he said as they
approached the lift, “Is that it is not some naïve either/or. We have
found the OPD-SHRM system gives clarity and focus to the
application of both Lean and Six Sigma. Since implementing OPD-
SHRM, we have improved both by integrating the processes into the
ideal actions in roles. More people doing the right thing more often.”

60
Relationship of OPD with typical business improvement frameworks
The business excellence framework
Covers organizational wide activity
Leadershi
p
Strategi
c
plannin
g
Busines
s
results
Measuremen
t
and analysis
Process
managemen
t
Custome
r and
market
focus
HR
focus
OPD-SHRM
Focus on aligning staff actions with strategy
Provides structure and complete set of tools for delivery of strategic HR
Clarifies, coordinates, integrates and improves application of tools in all business areas
ISO 2000
Focus on process and quality
Admi
n
of
HR
SAP
IBM
Oracle
People
Soft
Balanced score card
Focus on measurement
Six sigma
Focus on process
variation and reduction
Lean
Focus on process, accuracy and quality
Business process re-engineering
Focus on process development
Theory of constraints
Focus on process constraints and removal
Other tools: Operations, planning, market, or financial tools to assist
analysis and implementation. Boston matrix, leadership development, fiscal
payback theory, operations research theory
Base table source NZ Ministry of Economic Development
All other systems of business development only cover some range of the necessary
business activities.
Only OPD provides a clear and definite link between strategy and staff behavior.
The existing global HR systems administer HR they do not drive the alignment of
staff behavior with the goals/KPIs.
OPD provides a complete strategic HR system to enable team leaders fully achieve
sustainable leadership with their team enabling superior results.

61
The performance stack
They settled back into the CEO’s office.
“It was good to meet some of your team.” She said.
“Yes, I thought the opportunity may occur; they would all be
delighted to talk with you, so phone and arrange meetings as you
need. If you have any issues, just let me know.” She smiled.
“Thank you.” Thinking that while everyone is committed, there are
always issues the CEO needs nudge along.
“You will be pleased to know we are getting to the end of what I
feel I need go over with you.”
“It is exciting, really, just a lot to take in, and I cannot describe how
grateful I am of the amount of time you have given me.” He waved
her away.
“We already dealt with that; I am delighted to be of real assistance.
The last concept arises from the definition of strategic HR under the
OPD-theory. It spells out the relationship between SHRM as defined
in the theory with every other measurement. In effect, it says that to
achieve change in any other measurement, MIS (management
information systems) , FIS (financial information systems), and HRIS,
it can only be via the SHRM processes. Now this is huge, it in effect
makes HR the fundamental driver of the business results.” He
watched her carefully.
He handed her the sheet of paper on which was the performance
stack diagram. She read over it carefully.

62
The performance stack
Financial/management IS:
Performance monitoring to enable
better decisions leading to applying
OPD-SHRM to realign behavior.
Financial analytics
(MIS, FIS)
HRIS: Reporting on regular HR
statistics, for example absenteeism,
accidents, and leave.
HR analytics
(HRIS)
OPD-SHRM and OPD-SHRMIS:
SHRM defined (from the theory) as the
alignment of staff behavior with
strategy; provision of SHRM processes
as tools to enabling team leaders to
drive alignment, and provision of
SHRMIS to monitor if team leaders are
applying the SHRM.
SHRMIS:
Monitoring delivery
of SHRM
SHRM: Aligning
staff behavior with
strategy
Strategy creation, formulation and
review
Strategy

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