Designing a Custom Leadership System: Process Design Studio · 2013. 12. 11. · Deep Change -...
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Designing a Custom Leadership System:Process Design Studio
John Latham, PhDDirector, The Monfort Institute andExecutive Professor of ManagementMonfort College of Business at the University of Northern Colorado
[email protected] 970.351.1230
John Latham (c) 2007 - All Rights Reserved
John Latham, PhD
September 20, 2007The Meritage Resort at Napa
Napa, California
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John Latham (c) 2007 - All Rights Reserved
Materials Check
1
For more information visit: www.baldrigeusersguide.com
leader
ship
sy
stem
1.1a Vision and Values - Example Section from the Baldrige User’s Guide
Contents: Baldrige Criteria Questions - The
actual Malcolm Baldrige National Quality
Award Criteria are presented verbatim in the
boxed area labeled Questions. Included are
the actual questions and notes (explanations)
from the Malcolm Baldrige National Quality
Award Criteria.
Foundation - This introduction is a
“common sense” description of what the
criteria in the particular Area to Address are
trying to achieve. The introduction focuses on
what the criteria actually mean and not just
the questions in the criteria. This focus will
help new and experienced users gain a better
understanding of the criteria, their
background as well as their meaning.
Example Key Factors, Processes, and
Results – A mix of business, healthcare, and
education examples are included to help
“bring alive” the key elements of the
particular Areas to Address. These tangible
real world examples are included courtesy of
the individual Baldrige Award recipients and
other world-class organizations. Typically
these examples include graphics and
descriptions of best practices from excellent
organizations.
Worksheets – The "fill-in-the-blank"
worksheets help writers and assessors collect
and organize information about the
organization’s key factors, processes, and
results. Completing these worksheets will help
the writing team develop responses to the
criteria in the form of an award application.
The worksheets are structured and aligned in
a manner that will help the user understand
the breadth and depth of what the criteria are
trying to address. The worksheets presented
in the book are condensed to save space, but
full-size editable (landscape) format
worksheets are available on the CD-ROM
included with the book.
Diagnostic Questions – These
questions help the assessor quickly “take the
temperature" of the organization by providing
a rough estimate score. This portion of the
book can also be used as a survey across
different groups to understand how they feel
the organization is currently performing.
Blueprints – The blueprints provide a
"visual version" of the criteria. These
flowchart diagrams depict the logic flow and
relationships of the elements found in the
particular Area to Address as well as linkages
to other Areas to Address (context a.k.a. key
factors, the system of processes, and the
results).
System Integration (a.k.a. Linkages) –
The system integration sections support the
blueprints by describing the nature of the
relationships, or linkages, to other Areas to
Address. This section provides descriptions of
the linkages depicted in the blueprint and
their relationships to other criteria context
a.k.a. key factors, system of processes, and
the results.
Thoughts for Leaders - Thoughts for
leaders are included for each Area to
Address and typically use brief anecdotes to
bring the concepts alive for the leaders of the
organization. In some cases, they provide
leaders a view of why this portion of the
criteria should be important to them.
John Latham and John Vinyard (c) 2007 - All Rights Reserved
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4
mcb.unco.edu/monfortinstitute
Knowledge forGlobal Excellence
University of Northern Colorado
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Process Design Process
Purpose and Requirements
1
Theories and Concepts
2
Examples
3
Context
4
Design Principles
5
System Perspective
6
Process Description
7
Process Diagnosis
8
Design andDevelop
9
John Latham (c) 2007 - All Rights Reserved
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The Mind of the Process Architect
Anthropologist
Psychologist
Artist
Designer
Economist
Engineer
ProcessArchitect
PracticalDimension
HumanDimension
CreativeDimension
John Latham (c) 2007 - All Rights Reserved
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John Latham (c) 2007 - All Rights Reserved
1. Understand the Purpose(s) and Requirements of the Process
- Understand the purpose(s) and requirements for the process. - Frame the need. - Why do you need this process? - What key capabilities are needed?
1. Identify the Purpose(s) of the Process – What is the benefit?
2. Identify the key requirements.
3. Identify the “nature” of the process.
BUG p. 105
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John Latham (c) 2007 - All Rights Reserved
NIST’s Definition
The term “leadership system” refers to how leadership is exercised, formally and informally, throughout the organization–the basis for and the way key decisions are made, communicated, and carried out.
It includes structures and mechanisms for decision making ; selection and development of leaders and managers; and reinforcement of values, directions, and performance expectations.
An effective leadership system respects the capabilities and requirements of employees and other stakeholders, and it sets high expectations for performance and performance improvement.
It builds loyalties and teamwork based on the organization’s values and the pursuit of shared goals.
It encourages and supports initiative and appropriate risk taking, subordinates organization to purpose and function, and avoids chains of command that require long decision paths.
An effective leadership system includes mechanisms for the leaders to conduct self-examination, receive feedback, and improve
BUG p. 445
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Criteria and Concepts
Set vision and values
Deploy vision and values - employees, key suppliers and partners and customers
Personal actions reflect commitment
Promote environment - legal and ethical behavior
Create a sustainable organization
Create environment for performance improvement, accomplishing the strategic objectives, innovation, and agility
Create an environment for organizational and employee learning
Personally participate in succession planning and development of future leaders
John Latham (c) 2007 - All Rights ReservedBUG p. 105
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Nature of the Process?
Automated ?
Physical ?
Knowledge ?
Creative ?
Customization ?
John Latham (c) 2007 - All Rights Reserved
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Purpose, Requirements, and Nature
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Knowledge forGlobal Excellence
University of Northern Colorado
- Understand the purpose(s) and requirements for the process. - Frame the need. - Why do you need this process? - What key capabilities are needed?
1. Identify the Purpose(s) of the Process – What is the benefit?
2. Identify the key requirements.
3. Identify the “nature” of the process.
John Latham (c) 2007 - All Rights Reserved
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John Latham (c) 2007 - All Rights Reserved
2. Understand the Key Theories and Concepts that “Inform” this Process
Leading Change - John Kotter
Level 5 Leadership
Deep Change - Robert Quinn
Individual Change - Richard Beckhard
Transformational Leadership
Transactional Leadership
Servant Leadership - Greenleaf
- Understand the key theories and concepts that inform this process. - Identify what we already know about this type of process.
1. Identify the leading theories.2. Identify the empirical evidence – what works and what doesn’t work.3. Identify the leading thinkers and understand their leading edge ideas.
BUG p. 106
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John Kotter
Establish a sense of urgency
Form a powerful guiding coalition
Create a vision
Communicate the vision
Empower others to act on the vision
Plan and create short-term wins
Consolidate improvements and produce still more change
Institutionalize new approaches
John Latham (c) 2007 - All Rights Reserved
Kotter, J. P. (1995). "Leading Change: Why Transformation Efforts Fail." Harvard Business Review 73(2): 59-67.
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Collins’ Findings
First Who (people first, then strategy)
Stockdale Paradox (realistic with unwavering faith)
Buildup-Breakthrough Flywheel
The Hedgehog Concept (know one thing really well)
Technology Accelerators
Culture of Discipline
Level 5 Leadership (humility and resolve)
John Latham (c) 2007 - All Rights Reserved
Collins, J. (2001). "Level 5 Leadership." Harvard Business Review 79(1): 66-76.
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Beckhard’s Change Formula
Dissatisfaction with the status quo (Forces for Change)
x Compelling Vision (Explicit vision) x First Steps (Strategy, Alternatives, Plan of Action) x Believability (Leadership Priority, Adequate Resourcing) > Resistance (Top-Bottom Involvement)
Adapted from: Richard Beckhard & Reuben T. Harris (1987) Organizational Transitions: Managing Complex Change (2nd ed.)
Addison-Wesley, Reading MA (p. 98) and Richard Beckhard & Wendy Pritchard (1992) Changing the Essence: The Art of Creating and
Leading Fundamental Change In Organizations. Jossey-Bass, San Francisco. (p. 75)
D x V x FS x B > R
John Latham (c) 2007 - All Rights ReservedBUG p. 438
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Robert Quinn
Sustainable Change Requires:
Changing WHAT we do...
Changing HOW WE WORK TOGETHER...
Changing INDIVIDUALLY
John Latham (c) 2007 - All Rights ReservedBUG p. 438
Quinn, R. E. (1996). Deep Change: Discovering the Leader Within. San Francisco, Jossey-Bass.
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Beckhard and Quinn Combined1. Quinn - Successful
change initiatives address the system , the
culture, and the individual.
2. Beckhard - Successful change initiatives
address the five critical elements of the change
formula: D x V x FS x B > R
Dissatisfactionwith the
Status Quo
CompellingVision
First Steps
Believability
Resistanceto Change
Diagnosis
Design
Transformation
Involve
System Culture Individuals
Integrate
John Latham (c) 2007 - All Rights ReservedBUG p. 438
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Key Theories and Concepts ?
mcb.unco.edu/monfortinstitute
Knowledge forGlobal Excellence
University of Northern Colorado
- Understand the key theories and concepts that inform this process. - Identify what we already know about this type of process.
1. Identify the leading theories.2. Identify the empirical evidence – what works and what doesn’t work.3. Identify the leading thinkers and understand their leading edge ideas.
John Latham (c) 2007 - All Rights Reserved
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John Latham (c) 2007 - All Rights Reserved
3. Understand how others have done it - Review Examples to Clarify and Inspire
Creative Thinking“Double-edged Sword”
- Understand how others have done it. - Review example designs to clarify the concepts, applications and inspire the creative thinking.
1. Review conceptual designs during the first round for clarity and inspiration. 2. Use detailed designs when working on the new detailed design in Step 9.
BUG p. 107
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Be Role Models
EmpowerTeams
MotivateEmployees
ContinuouslyImprove
AnalyzePerformance
Develop, Reward,
and Recognize
Set Direction
Organize, Plan, and Align
Perform toPlan
StakeholderRequirements
andExpectations
Learn and Improve
CustomerWork ForceSuppliers
CommunityShareholders
1
2
3
4
5
6
Boeing Airlift and Tanker
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Boeing Aerospace Support
Vision & Values
Set andCommunicate
Direction
Perform to Plan
Reward & Recognize
Organizational& Employee
LearningOrganize, Plan,
and Align
Be RoleModels
EmpowerTeams
ContinuouslyImprove
MotivateEmployees
Analyze& Compare
CorporateCitizen
Innovation
Teamwork
Agility
Sharing &Supportive
Learning
Diversity
Quality
CustomerSatisfaction
Integrity
INVOLVE AND COMMUNICATE
StakeholderRequirements
& Expectations
• Customer• Work force• Suppliers• Community• Shareholders
Safety
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BI
Owners
Office of the President
Strategic Planning Team
Productivity TeamBusiness Team
BI WayBeliefs Purpose
Mission Vision
ACT
PLAN
DO
CHECK
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Los Alamos National Bank
Customers
Community
Employees
Shareholders
Budgeting & PlanningA
lignment &
Im
plementation
Evaluation & Measurements
Ref
inem
ent,
Inte
grat
ion
&
Impr
ovem
ent
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Sunny Fresh Foods
(2) Establish andCommunicate Clear Values
(1) Determine Requirements and Expectations
(3) Set Organizational Direction
(4) Monitor Performance
(5) Analyze Organizational Performance
(6) Recognize, Reward, Improve
(7) Continuous Business Process Improvement
Communication and reinforcement of values
Communication of results, employee
motivation, and process optimization
Communication of Expectations
Continuous business process improvement
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Tata Chemicals
BUG p. 107
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Demonstrate Performance Excellence
Commitment to Workforce Excellence
Clinical O
utcomes
Governance &
Ethics
Leadership Developm
entR
ecruitment
RetentionEmployee Wellness & Safety
Recognition & Reward
Career Enhancement
Educ
atio
nD
iver
sity
Com
mun
icat
ion
Financial Performance Societal Accountability
Stak
ehol
der S
atis
fact
ion
Communicate, Align & Deploy
Measure, Review & Adjust
Learn & InnovateEmployees
Medical Staff Partners
Set Strategic Plan & Goals
Suppliers
Plan for Excellence
Patients
Community
Coaching
Requirements for Excellence
Gro
wth
12
3
4
5
6
78
Bronson
BUG p. 109
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Common Themes and Learnings
mcb.unco.edu/monfortinstitute
Knowledge forGlobal Excellence
University of Northern Colorado
“Double-edged Sword”
- Understand how others have done it. - Review example designs to clarify the concepts, applications and inspire the creative thinking.
1. Review conceptual designs during the first round for clarity and inspiration. 2. Use detailed designs when working on the new detailed design in Step 9.
John Latham (c) 2007 - All Rights Reserved
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John Latham (c) 2007 - All Rights Reserved
4. Understand the Organization’s Unique Context
- Understand the organization's unique context.
- Identify the key organizational factors that impact the design of the particular process.
1. Know your organization.
2. Know your stakeholders and what they want.
3. Know your environment - competitors and strategic advantages and challenges.
BUG p. 114
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Context - Key Factors
Mission, Vision, Values - Setting values and direction
Ownership structure and organization
Products and Services - tends to drive the types of employees.
Workforce profile is a key input to developing, deploying, and reinforcing the vision and values. In addition, the workforce profile is also a key input when creating the organization environment for innovation, agility, etc.
Culture - values - Tree example v. Boeing example
Strategic Challenges
Performance improvement system described in the profile should be consistent with the environment that is created to support employee and organizational learning and continuous improvement.
John Latham (c) 2007 - All Rights Reserved
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Key Factors ?
mcb.unco.edu/monfortinstitute
Knowledge forGlobal Excellence
University of Northern Colorado
- Understand the organization's unique context.
- Identify the key organizational factors that impact the design of the particular process.
1. Know your organization.
2. Know your stakeholders and what they want.
3. Know your environment - competitors and strategic advantages and challenges.
John Latham (c) 2007 - All Rights Reserved
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John Latham (c) 2007 - All Rights Reserved
5. Identify the Role Model Characteristics that you want embedded into the Design
Visionary Leadership
Systems Perspective
Focus on the Future
Social Responsibility
Customer-Driven Excellence
Agility
Focus on Results and Creating Value
Valuing Employees and Partners
Organizational and Personal Learning
Management by Fact
Managing for Innovation
- Identify the role model characteristics that you want embedded into the design.
1. Choose from established performance excellence principles.
2. Identify new principles unique to your organization, strategy, etc.
BUG p. 11 - 24
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Role Model Characteristics
Structure includes parent organization
Two-way communication - many methods
Lead by example
No tolerance policy - ethical and legal violations
MBWA - Senior leaders spend a portion of each day in the departments
Mission, Vision, values prominently displayed - Visual!
Deployed down to each department - with performance plans, measures, etc...
John Latham (c) 2007 - All Rights Reserved
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Design Principles ?
mcb.unco.edu/monfortinstitute
Knowledge forGlobal Excellence
University of Northern Colorado - Identify the role model characteristics that you want embedded into the design.
1. Choose from established performance excellence principles.
2. Identify new principles unique to your organization, strategy, etc.
John Latham (c) 2007 - All Rights Reserved
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John Latham (c) 2007 - All Rights Reserved
6. Understand how the Process fits in the Larger Organization System
- Understand the organization (enterprise) system.
- How does this process fit within the larger organization system?
1. Identify key inputs.
2. Identify key outputs.
3. Identify key interconnections and relationships with other processes and parts of the system.
Baldrige User's Guide
114
BLUEPRINT
Visionand
Values
Createthe
Environment
DesiredOrganization
Characteristics
Lead
ersh
ip S
yste
m –
Vis
ion
and
Valu
es
SetVision & Values
1.1a (1)
DeployVision & Values
1.1a (1)
ReinforceThrough
Role Model Behavior1.1a (1)
Createan Environment
1.1a(3)
Mission,Vision &Values
PerformanceReview
Participation
AccomplishMission & Strategic
Objectives
P.1a
2.1a 4.1b
PromoteEnvironment That Fosters
& Requires Legal & Ethical Behavior
1.1a(2)
Mission,Vision &Values
2.1b
1.2b
P.2c
5.1bStrategic
Objectives
Vision & Values
Senior LeaderBehavior
Createa Sustainable Organization
1.1a(3)
PerformanceImprovement
System
Succession Planning &
Development1.1a(3)
LeadershipInvolvement
Demonstrate commitment to living the organization’s values
1.2a
GovernanceSystem
1.2c
Mission,Vision &Values
Innovation OrganizationalAgility
Organization& Workforce
Learning
Organizational PerformanceImprovement
Environment
- Workforce- Key Suppliers, Partners, and Collaborators- Customers- Other Stakeholders
7.6a
Competitive orRole ModelPerformanceLeadership
5.1b
LeadershipSystem
P.1a
WorkforceProfile
BUG p. 114
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Integration Points
1.2a – Senior Leadership and Board Performance Review process.
1.2b – Legal and ethical behavior consistent with the stated values, directions, and expectations.
1.2c – The mission, vision, and values are all key inputs to determining areas of emphasis for community support and involvement.
2.1a – The mission, vision, and values are key considerations when developing strategies described in 2.1a.
2.1b – The actual strategic objectives and the timetable for accomplishing them as described in 2.1b is an important input to creating an environment to foster the accomplishment of strategic objectives.
4.1b – Leaders participation in the performance reviews is also important for reinforcing the direction and priorities.
5.1b – Succession planning
5.1b - Leadership development
Integrated with the listening and learning approaches to improve employee learning
Integrated with the employee recognition program
John Latham (c) 2007 - All Rights ReservedBUG p. 115
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Key System Linkages
LeadershipSystem
GovernanceSystem
StrategicMgmtSystem
CustomerFocus
Measures& Reviews
Workforce
ProcessMgmt
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Key System Integration Points ?
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- Understand the organization (enterprise) system.
- How does this process fit within the larger organization system?
1. Identify key inputs.
2. Identify key outputs.
3. Identify key interconnections and relationships with other processes and parts of the system.
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7. Understand the Current Process and System
2. Descriptions
1. Mapping- Understand the current process and system.
- Describe the key characteristics of the existing process.
1. Develop a Diagram of “As Is” process (e.g., flowchart).
2. Develop a Table of the details behind each phase, step, etc. - Who, What, Where, When, Why and How + Inputs and Outputs.
BUG p. 111
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Current Process Design
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- Understand the current process and system.
- Describe the key characteristics of the existing process.
1. Develop a Diagram of “As Is” process (e.g., flowchart).
2. Develop a Table of the details behind each phase, step, etc. - Who, What, Where, When, Why and How + Inputs and Outputs.
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8. Understand the Quality and Convenience of the Current Process
- Understand the quality and convenience of the current process.
1. Identify strengths and opportunities for improvement.
2. Identify the maturity level - approach, deployment, learning, and integration.
3. Identify process participant perceptions - what is it like to experience or execute this process? Is it convenient?
BUG p. 113
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Maturity Model - Simple View
Operations are characterized by activities rather than by processes, and they are largely responsive to immediate needs or problems.
Reacting to Problems
The organization is at the beginning stages of conducting operations by processes with repeatability, evaluation, and improvement, and some coordination among organizational units.
Early Systematic Approach
Operations are characterized by processes that are repeatable and regularly evaluated for improvement, with learnings shared and with coordination among organizational units.
Aligned Approach
Operations are characterized by processes that are repeatable and regularly evaluated for change and improvement in collaboration with other affected units. Efficiencies across units are sought and achieved.
Integrated Approach
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Process Maturity Model
Effective systematic approach fully responsive to multiple requirements
Fully deployed - no significant gaps or
weaknesses
Fact-based systematic E&I, org Learning, analysis, and sharing key org-wide tools
Well integrated with org needs - key factors and
processes
Effective systematic approach - Multiple
requirements
Well deployed - no significant gaps
Fact-based systematic E&I and org learning are key
management tools
Integrated with org needs - key factors and and
processes
Effective systematic approach - Overall
requirements
Well deployed - deployment may vary is some areas
Fact-based systematic evaluation and
improvement process
Aligned with org needs - key factors and processes
Effective systematic approach - basic
requirements
Deployed - some areas in early stages of deployment
Beginning systematic approach to evaluate and
improve key processes
Early stages of alignment with org needs - key
factors and processes
Beginning of a systematic approach - basic
requirements
Early stages of deployment in most areas - inhibits
progress
Early stages of transitioning from
reacting to problems to improvement orientation
Approach is aligned with other processes - primarily
via joint problem solving
No systematic approach Little or no deploymentImprovement orientation no evident - reacting to
problems
No organizational alignment - processes operate independently
Approach Deployment Learning Integration
6
5
4
3
2
1
90 - 100%
70 - 85%
50 - 65%
30 -45%
10 - 25%
0 - 5%
MBNQA
BUG p. 41
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Dimensions of Assessment
Quality
Convenience
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Diagnosis of Current Process
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- Understand the quality and convenience of the current process.
1. Identify strengths and opportunities for improvement.
2. Identify the maturity level - approach, deployment, learning, and integration.
3. Identify process participant perceptions - what is it like to experience or execute this process? Is it convenient?
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Process Design Framework
Purpose and Requirements
Theories and Concepts Examples
ProcessDiagnosis
Design andDevelop Context
Process Description
System Perspective
Design Principles
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Design
Develop
Imagine!Ideal
DoableConcept
DetailedDesign
Prototype Develop &Deploy
Reflect &Improve
9. Design and Develop
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Making the Leap!
Discovery
Diagnosis Design
Development
Critical Thinking Creative Thinking
The Wall
Left Brain Right Brain???
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1. As Is
Doable
2. Ideal
Desired Path
3. Doable’
Desired Path
UnlimitedResources &Technology
BudgetedResources &Technology
Imagination
Improvement
Imagine the “Ideal” Design
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Example Posters
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Ideal Design ?
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Next Steps
Detailed Design
Limited Deployment - Prototype
Develop
Training
Full Deployment
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2. Descriptions
1. Mapping
Detailed Design
Da Vinci Method
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Beckhard and Quinn Combined1. Quinn - Successful
change initiatives address the system , the
culture, and the individual.
2. Beckhard - Successful change initiatives
address the five critical elements of the change
formula: D x V x FS x B > R
Dissatisfactionwith the
Status Quo
CompellingVision
First Steps
Believability
Resistanceto Change
Diagnosis
Design
Transformation
Involve
System Culture Individuals
Integrate
John Latham (c) 2007 - All Rights ReservedBUG p. 438
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Conditions for Studio Success
People - attitude and diversity - 7 to 10
Facilitation - with ROE
Variety of Media - Low and High Tech
Structure - just enough and no more
Environment - no fear & no inhibitions
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Resources
www.baldrigeusersguide.com
www.mcb.unco.edu/monfortinstitute