Last updated: July 2009

Transcription

1 Effective Organizational Processes Last updated: July 2009

2 Table of contents Designing effective organizations: overview When are processes the problem/answer? Basic principles and how to approach the work TBG Effective Organizational Processes 2

3 Effective organization design considers five, interrelated components Clear vision and priorities Cohesive leadership team Clear roles and accountabilities for decisions Organizational structure that supports objectives 5. Culture Organizational and individual talent necessary for success Performance measures and incentives aligned to objectives Superior execution of programmatic work processes Effective and efficient support processes and systems High performance values and behaviors Capacity to change Source: Bain & Company organizational toolkit and Bridgespan analysis TBG Effective Organizational Processes 3

4 Principles of effective organizational design Consider all five components of the wheel : A common misstep is to focus on structure alone (boxes and reporting lines) as the solution 1 Align the five components to one another: One element that doesn t fit can limit the performance of the whole system 2 Align strategy and organization to one another: Organizational strengths and weaknesses influence the range of feasible strategies; in turn, organizations should evolve with any new strategic direction 3 TBG Effective Organizational Processes 4

5 Organizations should consider strategic and organizational challenges in parallel Strategic questions What is the current situation? What are the viable options? How should the strategy be implemented? Organization questions What are organizational strengths and weaknesses? What options can current capacities support? What near-term changes are required, no matter what the strategy is? What organizational changes are needed? TBG Effective Organizational Processes 5

6 Table of contents Designing effective organizations: overview When are processes the problem/answer? Basic principles and how to approach the work TBG Effective Organizational Processes 6

7 A process is a series of work steps directed to a particular end or output Example: School staffing process Subprocesses: Needs assessment Candidate identification Initial screen Interviews Closing Work tasks: Identify schools needs and potential sources of new staff Attract sufficient number of high quality applicants Review candidates based upon agreed upon criteria Conduct interviews of high potential candidates Make timely and competitive offers TBG Effective Organizational Processes 7

8 When work processes are effective... Staff spend their time in activities that most create impact and value Staff understand their role in the process, and how it contributes to the ultimate output 5. Culture Activities and hand-offs from one step to the next are well-defined Staff have the requisite skills and resources (budget, FTE) A system is in place to measure the quality of output, provide feedback, and improve How do teams determine if processes are a problem or need to be changed? Organizational Diagnostic Survey asks staff to rate organization on these dimensions Leadership/staff interviews can surface challenges as well TBG Effective Organizational Processes 8

9 When work processes are ineffective... Likely root causes Symptoms of an ineffective organization Leadership Decisionmaking & structure People Work processes & systems Culture Lack of coordination: work unfinished, teams isolated, out-of step Excessive conflict: Needless friction among internal groups Unclear roles: Functions overlap and/or fall through the cracks Gap in skills or misused resources: Missing or underutilized skills or resources Poor work flow: Disruptions, cumbersome processes Reduced responsiveness: Slow reactions to environmental shifts Conflicting communications: external stakeholders confused, complaining Low staff morale: lack of confidence or drive; poor teaming Note: People causes of excessive conflict are typically related to poor performance measures or incentives, not lack of talent or skill per se. Source: Strategic Organization Design: An Integrated Approach, Mercer Delta Consulting (2000); Interview with Peter Thies, Equinox Organizational Consulting; Bridgespan analysis TBG Effective Organizational Processes 9

10 Processes are a powerful, but often overlooked, lever within organizations Working effectively and efficiently across organizational boundaries is essential; in most organizations, work gets done across multiple departments or stakeholder groups before reaching a customer Without effective work processes, no organizational structure can succeed; ; conversely, well-designed processes can make any structure more effective However, many non-profits have never defined the processes that are core to their work or considered their potential impact on organizational performance TBG Effective Organizational Processes 10

11 Table of contents Designing effective organizations: overview When are processes the problem/answer? Basic principles and how to approach the work TBG Effective Organizational Processes 11

12 Basic principles of process improvement Don t get bogged down by detail; any process can be broken down into a handful of sub-processes - capture those on a single page Prioritize the problems that matter; don t get overwhelmed by all the things that could be improved focus on the 2-3 areas where change will have the most impact Implementation is as essential as design; keep this in mind when thinking of who to engage and how pilots are often an effective way to launch implementation and refine the design TBG Effective Organizational Processes 12

13 How to approach the work 1 Identify process as a barrier to effectiveness 2 Map the current process (high-level) 3 Evaluate the current process, prioritize challenges, and identify where re-design makes sense 4 Re-design process with key client stakeholders 5 Develop implementation plan; if possible, begin piloting new process TBG Effective Organizational Processes 13

14 Detail on approach (1 of 3) Key questions Identify process as a barrier Can the organization achieve its goals with its current processes? - Are staff spending their time on activities that add value? - Are their work tasks, roles, and hand-off s clearly defined? Do they have the necessary resources and skills? - Are there measures in place to ensure quality? Map the current process What are the 4-5 sub-processes that result in the final output? What are the key work tasks within each sub-process? Who is responsible for each? Potential activities Use Organizational Diagnostic Survey and stakeholder interviews to surface process challenges Watchout: Every process can be improved; that doesn t mean every process is worth a full re-design Collect any existing process maps; where they don t exist... Use input (e.g., initial interviews or working team meeting) to create a process map, preferably on a single page Watchout: Don t feel compelled to capture every nuance of the organization s process; this should be a 2-3 day (not 2-3 week) task TBG Effective Organizational Processes 14

15 Detail on approach (2 of 3) Key questions Evaluate process; prioritize areas for re-design What are the problems with the current process? Where do things go awry? Given the organization s strategic priorities, where is the greatest opportunity for impact? Re-design with key stakeholders How will the new process differ from the current one? (consider output, work steps, roles, and resources) What, if any, benchmarks exist for this process? Activities Review map of current process with key stakeholders to flag points of challenge or confusion Perform basic economic or other analyses to size the payoff (biggest bang for effort) Prioritize areas for re-design Watchout: To surface root causes, it may be necessary to re-map major pain points in greater detail Identify benchmark processes; where appropriate, visit or talk with benchmarked orgs Create a strawman of the new process with client working team Review with key stakeholders to pressure test and refine Watchout: Remember that the new process must be realistic and owned by the client in order to be implemented; avoid designing in a vacuum TBG Effective Organizational Processes 15

16 Detail on approach (3 of 3) Develop implementation plan / pilot Key questions Does the organization currently have the capacity to implement the re-designed process? How well does this process align to other elements of the organization design? Where might it cause friction? Activities Get agreement on and document major steps required to implement new process Assign ownership to steps, including communication across the organization If possible, begin piloting the process! Watchout: One of the key challenges in implementing a new process is breaking old habits; be sure to build in necessary training and early check-ins to monitor how the new process is going TBG Effective Organizational Processes 16