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Army Managerial Leadership

NEW ARMY MANAGEMENT SYSTEMNEW ARMY MANAGEMENT SYSTEM(Version 1.0)

Prepared & PresentedPrepared & Presented byby Dr. Stephen ClementDr. Stephen Clement

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OUR VISION: To be acclaimed as a world-class, properly-designed and well-managed organization by our Soldiers and Stakeholders. In the same way that the Toyota Corporation is known for the “Toyota Way,” we – the Generating Force of the United State Army – will be known for the “Army Way” of doing business.

Our

Efficiency

Lightens

Their

Load

Their

Effectiveness

Ensures

Our

Freedom

OUR PURPOSE: Educating the Army’s senior civilian and military leaders with the knowledge they need to reach their personal managerial leadership goals and to be the leaders who bring to life the “Army Way" of doing business.

Stephen Clement & Roger Harvey

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BUSINESS TRANSFORMATION STRATEGY

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MILITARY ORGANIZATION MANAGEMENT

SCIENCE

TESTINGWar GamesSimulations

Academic&

Consultant’sResearch

Academic&

Consultant’sResearch

PRACTICE Battlefield

U.S. ArmyRio TintoShell Oil

WhirlpoolOthers

Fortune 1000HQDA

THEORY TO PRACTICEStanding The Test of Practice & Time

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(These organizations tend to grow randomly and become bureaucratic)

Roles get added with new funding

• New functionsget added (old ones never go away)

Layers creep in over time

The Growth of Organizations

• FOAs getestablished

Processes &systems become

rigid

Roles & structure get modified to deal with personality issues

Special projects are established and structure does not go away when project is no longer needed

CC

Corps

Div

BCT

Bn

Comp

VIIGen

VILTG

VMG

IVCOL

IIILTC

IICPT

ISoldier

Op Order

ACC

TSC

Grps

Supt

Comp

VIIGen

VILTG

VMG

IVCOL

IIILTC

IICPT

ISoldier

Support Units Maneuver

SituationAwareness

• Unclear roles and accountabilities• Too many organizational layers• Overlap and duplication of functions• Rigid systems and processes• Limited (or no) doctrinal base• Excessive overhead• Resistant to change• Lack of sufficient customer focus

G1 G2 G3 G4

S1 S2 S3 S4

SharedServices

Training PlanRange management

Value-adding

Warfighting Organizations Non- Warfighting Organizations

• Clearly defined roles and accountabilities• Correct number of organizational layers• One command role / org layer• Supportive systems and processes• Solid doctrinal base• Continuous learning - Lessons learned / AARs• Combat adaptive

(Regulated by the crucible of combat)

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Organizational Analysis

Typical organizationalpathologies

1. Focus on the customer2. Concentrate on the core business3. Organize around the work - Eliminate “non-value added” work - The Hog won’t butcher itself - Strategy drives structure4. Differentiate between strategic level staff work and operational work - The present will always drive out the future

Organizational Design Principles

5. Establish the correct number of organizational layers - Align functions at the correct layer6. Establish clear accountabilities, authorities and critical systems - Delegate decision making to the correct organizational level 7. Define the nature of required working relationships8. Develop and implement a change management strategy

Performance Improvement

Industry Best Practices

Organizational

Design

Principles

• Role overlap /crowding• Too many layers• Subordinates not capable of operating at the correct level • Delegation disease• Non-value adding contribution• Excessive overhead

1. Focus on the customer2. Concentrate on the core business3. Organize around the work - Eliminate “non-value added” work - The Hog won’t butcher itself - Strategy drives structure

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Organizations exist to get work done.

That is what they are all about!

UNDERLYING PHILOSOPHY

The essence of work is that it is focused on carrying out assigned tasks and/or missions or providinggoods/services to a specified customer base.

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Task Complexity Organizational Structure

Create a supportive corporate culture, vision and values.

Worldwide networking and data accumulation.

Identify and manage secondorder consequences.

Manage progress on multiple pathways simultaneously.

Develop alternate pathways(plans).

Accumulate essential information

Take immediate action,overcome obstacles.I

II

III

IV

V

VI

VII CEO

EVP EVP EVP

BU Pres BU Pres BU Pres

GM GM GM

UnitMgr

UnitMgr

UnitMgr

UnitMgr

UnitMgr

Opr Opr Opr Opr Practical judgment

Cognitive Capacity

Cumulativeprocessing

Parallel Processing

Systems Thinking

Networking and Integration

Synthesis;2nd Order Consequences

CREATING A REQUISITEORGANIZATIONAL STRUCTURE

Generating Preplanned Options

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SUMMARY: GO–00 TASK BY LEVEL

HQDA’s Primary Value – Adding Work

> Envision the Future within AOR > Set Structure, Systems and Processes

> External Affairs > Define Mission

> Policy Application > Establish Values

> Governance > Create Culture

> Resourcing > Formulate & Lead Enterprise Projects

> Command / Manage DRUs > Establish Core Customers Value Proposition

> Initiate Change / Continuous Alignment

> Policy Formulation > Maintain Global Awareness (Political, Environmental, Social, Technical, Informational)

> Strategy Development > Manage Portfolio(s)

> Program Analysis & Integration > Allocate Resources

> Best Business Practices (Networking) > Design: Structure, Systems, and Processes

> Command / Manage DRUs > Prioritize Customer Needs

> Communicate Strategy to Lower Levels

> Strategy Implementation > Manage Operational Unit(s)

> Identify Customer Needs > Manage Resources

> Business Plan & Program Development > Integrate Cross-functions

> Implement Continuous Improvement > Create Supportive Climate

> Formulate Operational Unit Projects

> Program Execution > Manage people, processes, activities, and resources to achieve goals & objectives

> Meet Customer Needs > Integrate Functions

> Implement Continuous Improvement > Measure Customer Satisfaction

> Manage Resources

> Produce Direct Outputs > Increase Productivity

> Interact with Customers > Measure Customer Satisfaction

> Manage to Budget > Eliminate waste

> Implement Continuous Improvement > Apply LSS Principles

> Ensure Quality

CRITICAL TASKS

Level V (DASA; SES-5; MG)

Level IV (SES-6; GS-15; BG/Colonels)

Level III, II, and I

Level VII (USA; VCSA; ASA; GEN)

Level VIII (SA & CSA)

> Envision the Future> Set the Direction of the Whole Enterprise> Manage Strategic Uncertainty> Manage The Enterprise> Secure Resources> Define Measures of Performance

Level VI (PDASA; SES-4; LTG)

CRITICAL TASKS

STRATEGIC

OPERATIONAL

THE

ENTERPRISE

TACTICA

L

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HQDA’s PRIMARY VALUE - ADDING WORK IS STRATEGIC

> Envision the Future within AOR > Set Structure, Systems and Processes

> External Affairs > Define Mission

> Policy Application > Establish Values

> Governance > Create Culture

> Resourcing > Formulate & Lead Enterprise Projects

> Command / Manage DRUs > Establish Core Customers Value Proposition

> Initiate Change / Continuous Alignment

> Policy Formulation > Maintain Global Awareness (Political, Environmental, Social, Technical, Informational)

> Strategy Development > Manage Portfolio(s)

> Program Analysis & Integration > Allocate Resources

> Best Business Practices (Networking) > Design: Structure, Systems, and Processes

> Command / Manage DRUs > Prioritize Customer Needs

> Communicate Strategy to Lower Levels

Level VIII (SA & CSA)

> Envision the Future> Set the Direction of the Whole Enterprise> Manage Strategic Uncertainty> Manage The Enterprise> Secure Resources> Define Measures of Performance

Level VI (PDASA; SES-4; LTG)

CRITICAL TASKS

Level VII (USA; VCSA; ASA; GEN)

STRATEGIC

OPERATIONAL

THE ENTERPRISE

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DRU & OPERATING ACTIVITIES’ PRIMARY VALUE - ADDING WORK IS OPERATIONAL

> Strategy Implementation > Manage Operational Unit(s)

> Identify Customer Needs > Manage Resources

> Business Plan & Program Development > Integrate Cross-functions

> Implement Continuous Improvement > Create Supportive Climate

> Formulate Operational Unit Projects

> Program Execution > Manage people, processes, activities, and resources to achieve goals & objectives

> Meet Customer Needs > Integrate Functions

> Implement Continuous Improvement > Measure Customer Satisfaction

> Manage Resources

> Produce Direct Outputs > Increase Productivity

> Interact with Customers > Measure Customer Satisfaction

> Manage to Budget > Eliminate waste

> Implement Continuous Improvement > Apply LSS Principles

> Ensure Quality

CRITICAL TASKS

Level V (DASA; SES-5; MG)

Level IV (SES-6; GS-15; BG/Colonels)

Level III, II, and I

OPERATIONAL

ERPRISE

TACTICA

L

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1. Focus on the Customer

• Seek-out and Listen to the “Voice-of-Your-Customer”

2. Concentrate on the Core Business

• Distinguish Core and Context Functions / Processes

• Prioritize, Focus, and Align the Organization Around the Core

3. Organize Around the Work

• Eliminate “Non-Valued” Work

• The Hog Won’t Butcher Itself

• Strategy Drives Structure

4. Differentiate Between Strategic Level Staff Work and Operational Work

• Staff Work Produces Output that Flows up to the Boss

• Operational Work Produces Direct Output for the Customer

5. Establish the Correct Number of Organization Levels

• Align Functions at the Correct Organizational Level

• Eliminate Duplicate Positions at the Same Level

6. Establish Clear Accountabilities and Authorities

• Delegate Decision-Making Authority to the Proper Organization Level

7. Define the Nature of Required Working Relationships

ORGANIZATIONAL DESIGN PRINCIPLES

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POLICY– STRATEGY– EXECUTIONExample: TBI & PTSD

VII

VI

V

IV

III

II

I

VIII

Policy Formulation(Framing the Issue)

Analysis

Approval Strategy

Analysis

Programs

Execution

Evaluation

Stakeholder Issues / Concerns / Emerging Problems

1

2

3

4

5

6

7

L.T. Acute Care• TBI• PTSD

• Outsource• Treat In-House• Ignore

VeteransAdministration

• TBI Centers of Excellence

• Tele-Medicine• TBI Centers

Partner w/U of Maryland

TBI Center

Stakeholder Concern

PolicyFormulation

PolicyApplication Strategy Programs

POLICY APPLICATION

Redo

Redo

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Level Tasks

TimeHorizon(Span)

StrategicBalance

VIII

> Envision the future >Manage Strategic Uncertainty > Manage the Enterprise> Secure Resources >Set the Direction of the Whole

Enterprise

50 + Yrs

VII

> Envision the Future within AOR > External Affairs> Policy Application > Governance> Resourcing > Cmd/Man DRUs

20 + Yrs

VI

> Communicate Strategy to Lower Levels > Strategy Development> Program Analysis & Integration > Cmd/Man DRUs> Best Business Practices (Networking) > Policy Formulation

10 + Yrs

V

> Bus Plan & Program Development > Strategy Implementation> Identify Customer Needs> Implement Continuous Improvement

5 - 10 Yrs

IV> Implement Continuous Improvement > Program Execution> Meet Customer Needs > Manage Resources 2 - 5 Yrs

III> Implement Continuous Improvement > Manage to Budget> Produce Direct Outputs > Interact with Customers 1 - 2 Yrs

II> Implement Continuous Improvement > Supervise> Production Planning > Product Direct Outputs

3 Mos – 1 Yr

I> Implement Continuous Improvement> Hands-on Work > Produce Direct Outputs

Less than

3 Mos

Strategic Options

(Uncertainty)

CommittedPrograms

REQUISITE UNCERTAINTY and TIME HORIZONBy Task