D B A ORGANISATIONAL TRANSFORMATION MODULE PORTFOLIO LSC LONDON STAGE 1PORTFOLIO CONTENTS OT 1 WELCOME 3 OT 2 DBA ORGANISATIONAL TRANSFORMATION MODULE 6 OT 3 DBA MODULE ASSIGNMENT AND ASSESSMENT 12 OT 4 THE STRATEGY TO PERFORMANCE GAP 25 Page OT 5 PERFORMANCE MANAGEMENT 31 OT 6 EMPLOYEE ENGAGEMENT 55 Page 1 OT 7 CULTURE CHANGE 62 OT 8 ORGANISATIONAL TRANSFORMATION -- MALAYSIAN AIRLINES CASE 73 OT 9 STRUCTURE, PROCESSES AND BUSINESS PROCESS RE-ENGINEERING 91Page 2 Page OT 10 SIX SIGMA -- AN OVERVIEW 102 OT 11 ENTERPRISE RESOURCE PLANNING (ERP) 108 OT 12 RELATIONSHIP MANAGEMENT 111 OT 13 DBA REFLECTIVE WORKSHOP FOR EMPLOYABILITY 140 OT 14 DBA ASSIGNMENT GUIDANCE NOTES 142 OT 15 EXTENDED BIBLIOGRAPHY 156OT 1 WELCOME Welcome to this DBA Module ! The pillars upon which the DBA has been designed have Three Themes :  Value  Strategy  Leadership as the critical core competencies required for business management sustainability. This module, devoted to Organisational Tranformation, will have content related to each of these themes, determined through contemporary content reinforced with a major case application. Lectures, Focus Group Discussions and Presentations will be used as the core learning methodology to ensure interactivity among course members and module tutors. Page 3The outcome from the two-month learning cycle for this module will be a significant learning experience summarised through the completion of a 6000-word assignment. The DBA design Figure 1 will put this module into the full programme context for you. We trust that you will find the subject of Organisational Transformation inspiring with very real corporate payoff potential as which in turn presents a new platform for career employability enhancement. Good Luck. Page 4DBA DESIGN STRATEGIC THINKING & CRITICAL ANALYSIS VALUE MANAGEMENT ORGANISATIONAL TRANSFORMATION LEADING INNOVATION & CHANGE STRATEGY ROAD MAPS VALUE CREATION FOR BUSINESS RESEARCH METHODOLOGIES INTERPERSONAL LEADERSHIP DBA GRADUATION STAGE 1 TAUGHT MODULE THEMES – VALUE, STRATEGY, LEADERSHIP STAGE 2 DBA RESEARCH MANAGEMENT REGULAR ACTION LEARNING SEMINARS TO FACILITATE PROGRESSION OF DBA RESEARCH Assessment Outline DOCTORAL THESIS 6000-word assignments for each module comprising : A Company Report An Evidence Review Employability Skills Reflection The DBA Research Proposal Academic Progress Reviews Viva Voce Examination ‘ Oral Defense ’ “ Dr ” Title Figure 1 Page 5 MODULE SYNOPSIS  AIMS AND LEARNING OUTCOMES  INDICATIVE CONTENT  RECOMMENDED AND REQUIRED READING OT 2 DBA ORGANISATIONAL TRANSFORMATION MODULE Page 6ORGANISATIONAL TRANSFORMATION This module is designed to establish the need for significant change as a result of business drivers, which originate from complex social-economic and competitive market environments, requiring organisational transformation to be embraced. Module Synopsis DBA students will be introduced to a range of transformation methodologies for critical assessment as well as the knowhow for application when addressing shareholder performance expectation gaps. Page 7 The perennial ‘strategy to performance gap’ requires relevant interventions to achieve transformational change. In particular, therefore, the module will devote attention to Performance Management Systems, Employee Engagement Systems, Business Process Re-Engineering, Relationship Management with key stakeholders, Team Working, Enterprise Resource Planning and Six Sigma. The communication imperatives of organisational transformation through discussion on digital and social media will be featured. Achieving organisational transformational as well as culture change, through effective project leadership and implementation, will be embedded in this module. This highly interactive module will be delivered through a series of Master Class lectures, focus group discussions, case workshops and presentations.The aim of this module is to enable students to conceptualise environmentally driven organisational transformation, select critically assessed transformation methodologies and then propose contemporary core stakeholder relationship strategies to address perennial shareholder performance gaps. AIMS Page 8 At the end of this module, DBA students will be able to : - LEARNING OUTCOMES • Conceptualise individually and in groups, in relation to an organisational context, critically assessed solutions and methodologies for organisational transformation driven by performance gap realities. • Reflect upon the values and insights gained by reviewing contemporary theories and related evidence to understand comprehensively the domain of organisational transformation. THE CORE THEMES --- VALUE CREATION, LEADERSHIP AND STRATEGY ARE THE ANCHOR FOR THE DBA PROGRAMME.ORGANISATIONAL TRANSFORMATION Indicative Content • Conceptual Frameworks for Transformation in Organisations, A Critique of Contemporary Theory • A Critical Assessment of Systems & Mechanisms for Organisational Transformation Page 9 -- The Strategy to Performance Gap -- Supply Chain Relationship Management -- Customer Relationship Management -- Employee Relationship Management -- Structure, Processes & Business Process Re-Engineering -- Enterprise Resource Planning Systems & Implementation -- Culture Change Necessities, Barriers & the Stakeholder Agenda -- Digital Marketing & Social Media Interventions as a Communication Strategy -- Six Sigma Methodology • Performance Assessment & Transformation -- Performance Management Systems - A Critical Review -- Contemporary Employee Engagement Systems• Connors, R. & Smith, T. (2012), Change The Culture, Change The Game, Portfolio Penguin. 9781591845393 • Cameron, E. & Green, M. (2012), Making Sense of Change Management, Models, Tools & Techniques for Organisational Change, Kogan Page. 9780749464356. RECOMMENDED AND REQUIRED READING • Fullan, M. (2007) Rev Ed., Leading in a Culture of Change, Jossey-Bass. 9780787987664. • Gennard, J. & Judge, G. (2010), Managing Employee Relations, Chartered Institute of Personnel Development. 9781843982562. • Harry, M. S. & Schroeder, R. (2006), Six Sigma, The Breakthrough Management Strategy, Routledge. 9780385494380. • Monk, E. & Wagner, B. (2013), Concepts in Enterprise Resource Planning, International 4th Ed., CengageLearning. 978111182041. • Pyzdek, T. & Keller, P. (2010), Six Sigma Handbook, McGraw-Hill. 9780071623384 Page 10 • Ryan, D. & Jones, C. (2012), Understanding Digital Marketing, Marketing Strategies for Engaging The Digital Generation, Kogan Page. 9780749464271.• The Sloan Management Review • The Journal of Organisational Transformation & Change INDICATIVE JOURNALS • Harvard Business Review Page 11 • Sherman, R. (2012), Supply Chain Transformation, Wiley. 9781118314449 • Uhl, Alex & Gollenia, L. A. (2012), Business Transformation Management Methodology, Gower Press. 9781591845393 STRATEGY ROAD MAPS ASSIGNMENT OT 3 DBA MODULE ASSIGNMENT AND ASSESSMENT PART 1 THE COMPANY REPORT PART 2 THE EVIDENCE REVIEW PART 3 REFLECTION FOR EMPLOYABILITY ENHANCEMENT & LEADERSHIP  ASSIGNMENT MARKING GUIDE WITH THE ASSESSMENT MATRIX Page 12ORGANISATIONAL TRANSFORMATION ASSIGNMENT Based upon discussions held and conclusions drawn from evidence based research, you will now adopt the role of a Strategy Consultant for a selected organisation tasked with addressing a significant performance gap. PART 1 THE COMPANY REPORT You are required to lead a new strategic initiative to propose a conceptual model for organisational transformation through the inclusion of an established methodologies designed to inject value creation opportunities for your client and their key stakeholder relationships. Your brief, within a specified performance domain, is to : - 1. Complete a critically evaluated performance analysis for the selected organisation to thereby establish a comprehensive understanding of current strategy to performance gap(s), against their forecasted strategic ambitions. 2. Propose a future organisational transformation solution through the adoption and implementation of a justified self-determined conceptual model designed to achieve new value addition to address performance shortfalls. Page 13THIS PART OF THE ASSIGNMENT IS A MANAGEMENT REPORT FOR THE BOARD OF YOUR CLIENT ORGANISATION. 3. Against the enduring value propositions for your client’s business to adopt the conceptual model, using your own judgement, review the wider implications if the client organisation does not accept your proposals. PART 2 EVIDENCE REVIEW 1. Prepare a critique of selected literature related to the domain of your conceptual model for organisational transformation, then support your perspectives with other contemporary organisational evidence deemed relevant to achieve meaningful managerial insights and conclusions. 2. Outline potential DBA research perspectives which could be adopted in the future to explore client business transformation for their future sustainability. THIS PART OF THE ASSIGNMENT SHOULD BE SUBMITTED IN THE FORM OF A LITERATURE REVIEW WITH POTENTIAL DBA RESEARCH INDICATIONS. 2000 words Page 14 3000 wordsPART 3 REFLECTION FOR EMPLOYABILITY ENHANCEMENT 1. Realise the critical thinking and core capabilities needed to achieve this consultancy task for the client organisation. 2. Evaluate your current knowledge, skills and competencies to then assess your ability for completing this consultancy assignment. THIS LEARNING LOG IS A ROLLING RECORD MAINTAINED THROUGHOUT THE DBA MODULES THAT WILL BE SUMMARISED AND REVIEWED AT THE END OF STAGE 1 OF THE DBA. Complete your individual learning log of employability skills readiness, through self-reflection on current practice, to : - 3. Review the related leadership skills required for future personal development and career accession. 1000 words Page 15DBA ASSIGNMENT PORTFOLIO FOR EACH MODULE Each module has 3 components for assessment : - 2. The Evidence Review Standardised Assessment Criteria are provided in an Assessment Matrix. These criteria are intended to ensure that the academic rigour for each module is achieved. Marking of each module will be against the assessment criteria and then supplemented with an overall statement of performance with a clear explanation given for areas of future improvement needed as appropriate. MARKING GUIDE 3. Reflection Upon Practice / Application for Employability and Leadership Skills 1. The Company Report Page 16THE COMPANY REPORT This is intended as a consultancy report for a defined organisation. It is intended for a board level consumption to outline the justified changes required as a result of applying a selected framework for value, strategy and leadership to bring about meaningful outcomes for stakeholders. The consultancy report is not an academic document, it is a stand-alone report intended for top management review and potential endorsement. This report should reach professional consulting standards, a skillset which all DBA students should aim and achieve. THE EVIDENCE REVIEW The purpose of the evidence review is to establish the academic underpinning for the company consultancy report. It requires the student to source, screen and select appropriate sources of literature and other contemporary evidence that will anchor a critique to be achieved from which specific academic frameworks related to value, strategy and leadership. Academic research evidence must be apparent and adequately focused so that emergent themes may be considered for DBA research at Stage 2 of the DBA programme. Quality ‘in text’ references will be expected together with a supporting bibliography. Page 17REFLECTION UPON PRACTICE / APPLICATION This section of the assessment is to establish an awareness of the learning which has been achieved in each module. It will be summarised at the end of Stage 1 of the DBA. The purpose is to build employability skills from the reflection undertaken so that personal skillsets are assessed together with an agenda for individual development in accordance with leadership, value creation and strategy implementation. This ‘ log ’ will be retained in each module so that students can assess their competency development needs and assess the progress being made before commencement of Stage 2, the DBA Research. Page 18THE DBA MODULE GENERIC ASSESSMENT MATRIX 2. THE EVIDENCE REVIEW 3. REFLECTION UPON PRACTICE / APPLICATION 1. THE COMPANY CONSULTANCY REPORT Page 19• The Need for Change • Direct Application of Explicit Frameworks for Value, Strategy and Leadership • Explicit Value Propositions for Change • Concise Action Plans Proposed • Clarity of Judgement Excellent Good Satisfactory Less than Satisfactory (1) THE COMPANY CONSULTANCY REPORT 1. Clear Introduction to the Organisational Context 2. Report Structure and Flow 3. Industry / Company Research Applied 4. Situational Analysis and Evaluation in Content Page 20• How the Change will be lead • Stated Outcomes / Benefits for New Organisation • Report Style • Appendices Excellent Good Satisfactory Less than Satisfactory Technical Data Analysis Situational to Company / Industry Page 21Excellent Good Satisfactory Less than Satisfactory (2) EVIDENCE REVIEW • Academic Research Evidence related to explicit frameworks for Value, Strategy & Leadership • Direct ‘ in text ’ citation • Quality of Critique • New Insights Gained • Formation of Judgements • Logical Conclusions • Emergent Themes for Potential DBA Research • Appendices • Quality of Bibliography • Quality of In Text References Page 22Excellent Good Satisfactory Less than Satisfactory (3) REFLECTION UPON PRACTICE / APPLICATION • Ability to form Judgements • Mindset Change • Personal Skillsets Assessment for Leadership, Value Creation and Strategy Implementation • Self Critique of Competencies • Challenges Experienced • Overcoming Difficulties • New Knowledge Acquired • Theory Modification to suit Organisational Environment • Emergent Conclusions for Employability Skills • The Personal Development Agenda Page 23(4) OVERALL COMMENTS STRENGTHS AREAS FOR IMPROVEMENT OVERALL GRADE Page 24OT 4 THE STRATEGY TO PERFORMANCE GAP Forces from the business environment impact upon strategy achievement. This constant pressure represents a perennial challenge for organisations seeking to achieve business performance targets for shareholder value enhancement. Where required the intention is to reduce the performance gap through adjusted strategies, interventions, new value creation, value capture and leadership for the needed changes. Page 25 Organisations which have strategic planning systems in place will conduct monthly and quarterly reviews using variance analysis conventions. It is at this time that the strategy to performance gap is usually revealed. In turn this periodic review process will also create a managerial awareness between strategy and delivered performance. It is commonplace that the results of pre-determined strategies either underachieve or overachieve ; this reality is known as “ the strategy to performance gap ”. It becomes a key driver for the organisational transformational adjustments to be made in order for performance to stay on track.One key theme of this DBA module portfolio is how organisational strategy to performance gaps can be better understood to drive organisational transformation. From where are performance gaps detected ? Results from strategy implementation will be the key indicator of performance. Performance Management and related performance systems are designed to periodically review strategy results as a basis for taking relevant corrective action. Such management disciplines provide an organisational orientation for results attainment through the regular routines imposed. Page 26 Typically, performance gaps will be discovered from undertaking • Financial Gap Analysis • Non-Financial Gap Analysis These analyses should be based upon pre-determined metrics and measurement tools for performance assessment. DBA students should be fully aware of this managerial process.Financial Gap Analysis This will focus upon the major variables of revenue, cost, gross margin and profit contribution assessed through a wide range of financial health metrics to monitor performance. These financial imperatives directly impact shareholder value. Page 27 Non- Financial Gap Analysis This will focus upon organisational performance per se as the fundamental enabler for financial health. Typical sources for underachievement are illustrated below on Page 28. It is a combination of both Financial and Non-Financial analysis that will reveal the facts to provide the basis for corrective action. Hence the quality of this analysis is important. Most organisations are faced with “ underachievement ” arising from targets not being met (or even stretched targets being imposed which are too ambitious).Typical Sources of Organisational Underachievement Service Delivery Organisational Cohesion Inadequate Leadership Internal and Interpersonal Communication Poor sense of direction Social Intelligence of Staff Strategy Execution Inefficiencies Poor Implementation Planning Enterprise Resource Adequacy and Deployment Non-Compliant Culture Employee Disengagement Insufficient Transparency Competency Shortfalls Poor Employee Value Propositions Page 28 Legacy Information Systems & Technologlies Low Organisational Agility Quality Gaps Ineffective Strategy into Action Decision Taking Customer Loyalty Erosion Supplier Relationship Challenges Channel Constraints Business Model Relevance Under Valued Customer Segment Experience Competitor Value Addition Erosion of Relationship Capital Inefficient Business Processes There are many other sources, but it can now be appreciated that the potential for underachievement and even failure is high. The strategy to performance gap is a managerial reality, it cannot be overlooked.From a top management perspective, a major challenge is to translate well conceived strategy into targeted performance. This can only be achieved through effective realistic planning supported by effective, disciplined, execution processes which deliver needed solutions to convert strategy into action. Strategy Into Action requires : - Page 29 • Managerial Leadership • Strategy Decisions Cascadence • Well-Formulated Rolling Plans, Forecasts Monitored Monthly and Quarterly • Tracking Current Performance Against Longer Term Plans • Basing Forecasted Performance Upon Past Performance Conditions and Competencies • Risk Assessment • Well-Conceived Assumptions • Resource Planning Linked Into Strategy Development • Setting Priorities • Focus Upon Value Creation • Effective and Efficient Communications & Information Flows • Winning Performance Culture • Accountability For Results NOTE : This assumes that ‘strategy’ does not prevail as an abstract concept confused or misunderstood at middle management level, otherwise the strategy to performance gap will remain unattended.FOCUS GROUP Why is the term Strategy misunderstood in organisations ? DISCUSSION Page 30 Why is Strategy determined at top management level often difficult to interpret and implement at middle management level ? If the Strategy to Performance Gap is always negative arising from unrealistic expectations, in your collective opinion does this then foster a “ culture for underachievement ” which in turn handicaps organisational performance ? CAN IT NOW BE APPRECIATED THAT THE STRATEGY TO PERFORMANCE GAP PERSPECTIVE PROVIDES A SOUND BASIS FOR AN ORGANISATIONAL TRANSFORMATION AGENDA ?OT 5 PERFORMANCE MANAGEMENT Page 31  PERFORMANCE MANAGEMENT -- THE CORE PURPOSE  DERIVING VALUE FROM PERFORMANCE MANAGEMENT  A PERFORMANCE MANAGEMENT CYCLE -- FOR THE INDIVIDUAL  PERFORMANCE MANAGEMENT SYSTEMS -- LEADERSHIP INSIGHTS  PERFORMANCE ASSESSMENT FOR ORGANISATIONAL TRANSFORMATION  PERFORMANCE APPRAISAL -- AN EXAMPLE  WINNING PERFORMANCE CULTURESPERFORMANCE MANAGEMENT -- THE CORE PURPOSE The core purpose of Performance Management is to achieve improvements in organisational performance based upon the belief that by developing individuals and teams as human capital that there is measurable payoff for the organisation and its shareholders. In turn, the intended impact of performance management is to achieve cultural change and organisational value enhancement through systems used for skill and competency development across the organisation in order to increase levels of employee engagement as well as interpersonal trust. THESE INTENDED AMBITIONS AND THE ABILITY TO ACHIEVE THEM IS A SIGNIFICANT ONGOING CHALLENGE FOR MOST ORGANISATIONS, HOWEVER PERFORMANCE MANAGEMENT CANNOT BE IGNORED. Page 32DERIVING VALUE FROM PERFORMANCE MANAGEMENT Page 33 In essence this requires : - • Strategic integration and alignment of Human Capital Development to The Vision, Mission and Objectives of the Organisation NOW REFLECT UPON PERFORMANCE MANAGEMENT IN YOUR EMPLOYMENT EXPERIENCE OR AS AN EMPLOYER --- WHERE ARE THE ‘GAPS’ BETWEEN THESE CONDITIONS AND PREVAILING PRACTICE ? • On-going Commitment driven and lead by Top Management • Simplicity in Design, Implementation and Review • Ownership by Line Managers not the HR Department • Effective Introduction through Involvement & Communication between Stakeholder Groups • Focus upon People Development, Performance Improvements and Personal Development Plans IS PERFORMANCE MANAGEMENT CONTINUOUS OR AN ANNUAL RITUAL OF PERFORMANCE APPRAISAL ?Page 34 TO WHAT EXTENT IS INDIVIDUAL AND TEAM DEVELOPMENT ENCOURAGED THROUGH : COACHING COUNSELLING FEEDBACK TRACKING REWARDS & RECOGNITION IS THERE A PREVAILING PERCEPTION ABOUT THE JUSTICE OR INJUSTICE OF PERFORMANCE PRACTISES WHICH CURRENTLY PROVIDE THE BASIS FOR PERFORMANCE REVIEWS ? FOCUS GROUP DISCUSSIONPERFORMANCE MANAGEMENT CYCLE --- FOR THE INDIVIDUAL  JOINT PLANNING Page 35  TAKING ACTION  PERFORMANCE MONITORING & CONTROL  JOINT EVALUATION & REVIEW ORGANISATIONAL STRATEGIC INTENT This cycle is intended to determine and manage expectations (results), build competency and develop capability to improve performance, the basis for this would be determined in each Individual Role Profile for each job positions. Figure 2JOINT PLANNING FOR A PERFORMANCE AGREEMENT (Figure 2) 1. The Individual Role Profile Page 36 This performance agreement will comprise : - 2. Key Performance Indicators (KPI’s) 3. Performance Goals 4. Performance Development Plans A vital element of joint performance planning is to determine or upgrade the role profile for each individual. 5. Personal Development Plans with Learning Goals 1. The Individual Role Profile This will comprise : - • Role Purpose -- why the role exists • KRA’s -- Key Result Areas which are the key output stated expectations of the role to justify the existence of this rolePage 37 KPI’s are the ‘metrics’ which provide a basis for performance evaluation. It is usually the case that KPIs will relate to specific KRA’s and will require a basis for measurement and a measurement device (tool). 2. KPI’s • Role Requirements  Knowledge & Skills -- the essentials  Specific Competencies  Behavioural Expectations & Attitudes to deliver the role These are the ‘results’ which the role is expected to achieve measured through KPI’s for KRA’s. These may be determined, for example by targets and budgets. [They may be additional goals specified in qualitative terms]. 3. Performance Goals NOTE : As this is joint planning for performance, then the goals will embrace the joint outcomes to be achieved between manager and subordinates. This can be easily overlooked when performance is appraised !Page 38 This ‘action’ plan is focused upon an agreed set of specific activities which must be completed to achieve the performance goals. In simple terms, what is needed to be achieved to get the desired results and by when. 4. Performance Development Plans In practice there will be core ongoing activities carried forward through all planning periods to ensure productive output. However as the organisation evolves, develops and innovates, so will the agreed performance development plans. NOTE : THIS WILL HELP TO BUILD A PERFORMANCE BASED CULTURE. This will include both functional and cross-functional actions to achieve the KPI’s within each KRA. Performance Development Plans should be reviewed annually, although achievements should be monitored periodically. This important element of performance management should be treated as a ‘rolling plan’ as the role profile evolves over an agreed timescale. This may require new competencies to also evolve and hence the need for personal development plans to be aligned with the performance development plans.Page 39 The core development areas for individual learning must be agreed so that the competency base requirements to fullfill the role profile are progressively attained and in so doing the performance development plan has the underpinning competency requirements set. Of course these plans will be reviewed and also evolve to achieve organisational development. 5. Personal Development Plans With Learning Goals TAKING ACTION (Figure 2) The activities specified in the performance development plans must now be actioned through relevant processes and policies for implementation, directly related to each KRA. In this way the responsibility and initiatives for taking action is both individual and team based as appropriate. Taking action is a conclusive step from the previous joint planning stages. NOTE : The authority for taking action must be clarified so that decision taking protocols are established. In this way the individual will know the limits of empowerment without recourse to the lines of management. PERFORMANCE MONITORING & CONTROL (Figure 2) Periodic self-monitoring of role profile results attainment is vital. Equally important is giving regular feedback so that guidance for corrective action can be obtained. Under-performance can also be highlighted if the Performance Development Plans are under-achieved.Page 40 Key Questions to focus this component of Periodic Performance Management are : -  How good has the accomplishment been ? In this way, the KPI’s are monitored to ensure the role profile outcomes are in line with expectations.  How good should it have been ?  Can the variation between  and  be measured ?  What, if any, is the need for corrective action ?  When should this intervention be implemented ?  What authorisation is needed ? EVALUATION AND REVIEW (Figure 2) Formal Reviews are needed either on 6-monthly or annual basis to complete the performance management cycle. At this time issues & challenges are highlighted and addressed where needed. This is a time to upgrade or update the demands of the role profile. Primarily this evaluation and review is for the individual. It is the ‘appraisal’ of how well the individual has performed. Often this is simply known as the Performance Appraisal meeting conducted one-to-one within the management hierarchy.Page 41 It is an opportunity for open dialogue, competency assessment and the evaluation of achievements to assess both strengths and weaknesses in performance. This mechanism provides for a formal opportunity to motive the individual for improved performance in the future based upon the achievements to date. It is a time to encourage further development as well as to reinforce expectations of the role profile as being undertaken by the individual. It should be an opportunity for ‘two-way’ communication as well as a final performance assessment for the period. If handled well, it is a time for self-assessment and reflection to be shared with the manager to which the individual reports within the organisation structure. It is this time in the performance management cycle to agree where improvements in the individual are needed. It is to be recognised that this is not always an easy process because it depends upon the quality of the relationship between the manager and the subordinate. It requires skill to manage mutual understanding together with a high degree of openness based upon mutual trust. This can only happen if the prevailing organisational culture is conducive.Page 42 PERFORMANCE MANAGEMENT SYSTEMS (PMS) -- LEADERSHIP INSIGHTS Performance Management as described appears, almost mechanistic, however it is difficult to install, difficult to manage, difficult to appreciate among stakeholders . . . . yet essential to achieve organisational transformation. From where do such difficulties arise for those involved in leading Performance Management ? • The ‘buy-in’ from business units when this is perceived to be an ‘HR Dept’ owned institutional process for Human Capital Development. • Resistance from the documentation (online / offline) required and the related bureaucracy which is perceived as a burden. • Achieving alignment between organisational strategic intent, business unit plans and individual role profiling is often difficult to define and to achieve. • The stage of organisational development and related readiness for PMS. • Prevailing organisational culture, climate, cohesiveness and employee relations. • Some organisations realise that PMS isn’t working well at all. • It is perceived as a huge challenge from design, to implementation and operation.LEADERSHIP INSIGHT Organisational Performance itself is complex, multi-faceted, it is also often difficult to define because it is human activity based and attached to an environmental context of both controllable and incontrollable variables. However it must be lead and must be managed. DON’T FORGET --- THE ULTIMATE METRIC IS SHAREHOLDER VALUE ACHIEVED THROUGH EFFECTIVE AND EFFICIENT STAKEHOLDER ENGAGEMENT. Page 43 If performance can’t be defined, it can’t be measured and therefore it is impossible to manage. • How is individual performance managed in the organisations in which you are currently employed ? FOCUS GROUP REFLECTION What are the shortcomings of the system from the perspective of : • The Individual • The Line Managers • The Human Capital Department • The BoardPage 44 • What therefore are the consequences for leading PMS systems as one element in the formula for organisational transformation ? • What therefore, are the emergent CRITICAL SUCCESS FACTORS for PMS as a core intervention for organisation transformation ? There are a number of valid approaches which are now outlined : - A pragmatic approach is to assess • Knowledge • Skills • Attitudes • Results PERFORMANCE ASSESSMENT FOR ORGANISATIONAL TRANSFORMATION • Responsiveness • Openness A more refined approach is the TRAIT approach which assesses the predispositions of individuals which in turn influence their behaviour in difficult situations. In this way innate abilities can be assessed such as : -Page 45 • Initiative • Resourcefulness • Ability to influence others • Creativity • Self confidence and there could be many more. Historically such pre-determined traits were used as a basis of rating an individual. BUT SUCH APPROACHES ARE OFTEN SUBJECTIVE, GENERALISED AND UNSUBSTANTIATED ! A results based approach is preferred which must be related to measurable outputs and outcomes of what is actually achieved. In this way the value that is really added can be assessed. This more tangible approach provides a more sound basis for recognition and reward. BUT OFTEN . . . how and why such results were achieved or not achieved is overlooked. Therefore to be fair, for each individual a supplementary approach is needed to assess behaviour. The Behavioural Approach assesses their workplace competencies which result in expected or stated performance targets being attained. Where a competency based framework is established and attached to a role profile than the individual can be assessed accordingly. 1. The KPI’s 2. Achievement within each KRA 3. Behaviour in the workplace 4. Level of competency in the fulfilment of the role profile Common Practice today for mature organisations is to assess :Page 46 Ultimately a system of rating and judgement must prevail and simple answers are needed upon : - 1. The achievement of expectations 2. Where expectations are exceeded 3. Where expectations are not met These approaches are then used overtime to track performance, however training is required to ensure rating is consistent overtime and between individuals. This can present considerable morale issues arising from the sensitivities involved. Band  15% Role achievers To classify achievement, the use of a bell-shaped curve (Figure 3) is common practice, but this forces line managers to put their staff into different groups, for example : - Band  15% High achievers Band  70% Achievement as expected    Figure 3INSIGHT INDIVIDUALS KNOW WHERE THEY STAND WITH THEIR LINE MANAGER !! Page 47 The potential for any such distribution can lead to resentment, demotivation and low morale which in turn affects performance as well as staff attrition. Also the comparability between business units is based upon the subjective judgement of the business unit head. BUT it is used to identify high performers and low performers AND may be built into merit pay decisions. [ BUT THEY MAY NOT AGREE ]Page 48 Within the framework of performance assessment, the 9 BOX GRID (Figure 4) is commonly used and accepted to determine talent for talent management as well as for succession management planning. This grid is shown below : - High Potential POTENTIAL FOR GROWTH & LEADERSHIP PERFORMANCE AT WORK Moderate Potential Low Potential HIGH MODERATE LOW Exceeds Expectations Meets Expectations Under Achievement Consistent Stars Future Stars Rough Diamond STRETCH STRETCH / DEVELOP DEVELOP Current Stars Key Players Inconsistent Players STRETCH / DEVELOP DEVELOP OBSERVE High Professionals Solid Professionals Talent Risks DEVELOP OBSERVE OBSERVE / EXIT Figure 4 This grid needs well-conceived calibration and assessment but could be an meaningful extension of the bell-shaped curve above. There are a variety of such models which seek to combine GROWTH POTENTIAL WITH ON THE JOB PERFORMANCE. INSIGHT IF SIGNIFICANT ORGANISATIONAL TRANSFORMATION IS PLANNED FOR THE NEAR FUTURE, THE 9 BOX GRID MAY DETERMINE WHO SHOULD BE DEVELOPED, WHO WILL LEAD AND WHO WILL NOT MAKE A MEANINGFUL CONTRIBUTION. This , if used with care, is a versatile and valuable tool for the assessment of a human capital inventory within business units. The 9 BOX GRIDPage 49 PERFORMANCE APPRAISAL -- AN EXAMPLE An example of typical documentation used for Performance Appraisals is provided below. It is based upon an analytical approach to achieve an overall score for the job performed. This provides the basis for an annual review. The system used has three components : - PART 1 PERFORMANCE RATING SUMMARY PART 2 KEY PERFORMANCE INDICATORS PART 3 COMPETENCIES ASSESSMENTPART 1 Name __________________________________________________________________________ Position ________________________________________ Employee No. ________________________________________ Rank ___________________ Dept ________________________________________ Time in Job _______________ Appraisal Period ______________________________________ PERFORMANCE APPRAISAL --- EXAMPLE PERFORMANCE RATING SUMMARY FROM PART II TOTAL KPI WEIGHTED SCORE FROM 1 TO 5 Page 50 x 80% COMPETENCY WEIGHTED SCORE FROM 1 TO 5 x 20% + TOTAL WEIGHTED SCORE FROM 1 TO 5 = OVERALL PERFORMANCE DEFINITION OF OVERALL JOB PERFORMANCE CATEGORY Outstanding Exceeds Expectations Meets Expectations Below Expectations Unsatisfactory 4.8 - 5.0 4.0 - 4.79 2.5 - 3.99 1.5 - 2.49 < 1.50 TOTAL WEIGHTED * SCORE RANGE TOTAL WEIGHTED * SCORE Agree with this review STAFF MEMBER AND LINE MANAGER SIGN OFF Disagree with this review Employee Signature : _________________________ Date : _________________________ Signature : _________________________ Date : _________________________ Line Managers Comments __________________________DESIGNATED KPI’S FOR EACH KRA Page 51 KRA  % PART II KEY PERFORMANCE INDICATORS [KPI’S] [80% OF OVERALL WEIGHTAGE] KPIS KRA  KPIS KRA  % KPIS KRA  % KPIS TOTAL KRA CALCULATION OF TOTAL KPI WEIGHTED SCORE = [KPI’S  +  +  + ] x 80% KPI Weight % [A] KPI Target KPI Performance Standard Achievement (Actuals) Performance Rating [B] Performance Score [A x B] KRA Sub Total KRA Sub Total KRA Sub Total KRA Sub Total % 100 % * PERFORMANCE * KRA WEIGHT X KPI SCOREPART III COMPETENCIES [ 20% OF OVERALL WEIGHTAGE ] RATING 5 - OUTSTANDING In this way performance is assessed in detail in relation to a pre-agreed performance plan. Page 52 4 - EXCEEDS EXPECTATIONS 3 - MEETS EXPECTATIONS 2 - BELOW EXPECTATIONS 1 - UNSATISFACTORY COMPETENCY WEIGHTED SCORE = TOTAL SCORE x 20% 7 1. LEADERSHIP 2. COMMUNICATION 3. DECISION MAKING 4. TEAMWORK 5. RESULTS DRIVEN 6. BUSINESS ACUMEN 7. CUSTOMER FOCUS COMPETENCIES JUSTIFICATIONS RATING [ 1 TO 5 ] TOTAL SCORETo achieve significant organisational transformation, winning a performance culture will be an enduring ambition. The conditions for such culture are indicated below : - WINNING PERFORMANCE CULTURES Page 53 • Effective Levels of Employee Engagement • A Valued Psychological Contract Between the Organisation and Employees with Enduring Employee Value Propositions • Valued Recognition and Reward • Strong Cascaded Leadership for a Winning Performance Culture • Attribution to the ‘People Agenda’ to determine a basis for HR Engagement • HR Relationship Partners working in the Business Units as a conduit for Information Flows • Performance is defined and understood at all levels of the organisation • Expectations & Accountability are understood • Empowerment • Positive Attitudes • Energised Organisational Climate in the Workplace • Performance Management Systems Aligned to Business Objectives • Learning & Development Aligned to Competency Needs • A Talent Inventory of High Performing Staff to take up key positions • Trust and Teamwork • After reviewing this system for Performance Appraisal, what are your critical observations ? Where do you foresee the difficulties in implementation. What challenging outcomes may be presented for business unit leaders ? FOCUS GROUP DISCUSSION• Where is your Focus Group experience in relation to these fundamental conditions for a winning performance culture? FOCUS GROUP REFLECTION Page 54 • Why do shortfalls exist ? • What strategies are needed to build a winning performance culture to achieve organisational transformation ? • What is the Leadership Agenda ?OT 6 EMPLOYEE ENGAGEMENT Page 55  WHAT IS EMPLOYEE ENGAGEMENT  WHAT ENABLES IMPROVED LEVELS OF ENGAGEMENT  THE CHALLENGES OF EMPLOYEE ENGAGEMENT MEASUREMENT  GALLUP Q12 EMPLOYEE ENGAGEMENT SURVEY  FOCUS GROUP DISCUSSIONPage 56 Organisational Transformation will only be achieved effectively if the level of organisational engagement can support planned change. Organisations globally are now aware of the need to track, monitor and review organisational engagement as one of the critical factors for sustainability. WHAT IS EMPLOYEE ENGAGEMENT ? Employee Engagement is a metric which examines the extent to which employees are fully involved in their work and that they are committed to “ on the job performance ” for their employer. This implies that a percentage may be disengaged, disintegrated, unproductive with a low level of morale. In time such people may leave for other employment or be retrenched. Levels of employee engagement are measured through periodic opinion surveys to monitor the organisational climate in order to detect change which may not be visible to top management and organisational leaders. [ ]Page 57 • Job Satisfaction • Working Environment • Pride as an employee • Satisfaction with the employer in terms of compensation, recognition & reward • Job scope and challenges • Relationships with next line of managers, peers & subordinates • Understanding the contribution made to the organisation • Career prospects • Employee benefits • Intention to remain • Relationship with ‘ the boss ’ • Performance Feedback & Encouragement • Opportunities for meaningful work challenges • Personal Growth for Leadership As can be appreciated employee engagement is about a wide array of factors over and above compensation for the job role & role profile. These ‘conditions’ above will have a direct impact upon the individuals capacity to engage, have motivation to engage and even freedom to engage. Such surveys examine common themes, for example.Page 58 WHAT ENABLES IMPROVED LEVELS OF ENGAGEMENT ? But above all, it is the ‘work environment’ that counts the most so that the organisational energy is sustained. • A sense of urgency • Focus upon determined priorities • A committed level of involvement • Flexibility • Individual initiative by working proactively • A team player • Results orientation • Positive energy • Organisational Integrity based upon core values for behaviour • Open trust • Open communication & transparency • Channels for feedback from the voice of the employee which are visibly acted upon • Empowerment with support • Leadership • Ease of managing up and managing down • Appropriate job anatomy • Learning & Development “ A well-engaged employee ” at any level will display certain characteristics which should be observed when appraising performance, for example : -1. List the factors which restrict levels of organisational engagement. Page 59 2. As a team, discuss these factors together to achieve a consensus of the main contributing conditions for a non-productive level of engagement. Each individual needs a role identity, a sense of purpose to know their contribution and upon this basis their expectations from the employer are built. 3. As a leader, what are the imperatives to ensure superior levels of employee engagement to achieve significant organisational transformation. 4. Now, individually reflect upon such leadership challenges for yourself. As individual members of the group, select an organisation with which you are familiar and attempt the following task : - FOCUS GROUP DISCUSSION [ ]Page 60 GALLUP Q12 EMPLOYEE ENGAGEMENT SURVEY Gallup Q12 is a universal tool used by many organisations to measure employee engagement. This can then be compared with benchmark scores from the Gallop Database. It is used with more than 25 million employees in 189 countries. 1. I know what is expected of me at work. • Are you likely to recommend a friend to work here ? • What is your overall satisfaction with your company as a place to work Yes No 2. I have the methods and equipment I need to do my work right. 3. At work I have the opportunity to do what I do best every day. 4. In the last 7 days, I have received recognition or praise for doing good work. 5. My Supervisor, or someone at work, seems to care about me as a person. 6. There is someone who encourages my development. 7. At work, my opinions seem to count. 8. The mission or purpose of my company makes me feel my job is important. 9. My associate or fellow employees are committed to doing quality work. 10. I have a best friend at work. 11. In the last 6 months, someone has talked to me about my progress. 12. This year I have had opportunities at work to learn. Exceeds Expectations Meets Expectations Does Not Meet Expectations THE CHALLENGES OF EMPLOYEE ENGAGEMENT MEASUREMENT As organisations are challenged with this task, the Gallup organisation have designed a survey to achieve this measurement which is now renowned and adopted worldwide, Gallup Q12. The key questions are now outlined below : -Page 61 1. To delve more deeply, consider the following statements : 2. What adjustments would you make to Q12 to provide a more comprehensive assessment of employee engagement ? 3. Are there other models which could be adopted ? Initially, the Q12 questions appear shallow, but they become more meaningful as these are applied up the organisational hierarchy. Hence these carefully researched questions are powerful. FOCUS GROUP DISCUSSION • “ Such questions cannot simply be addressed with a Yes or No answer ! ” • “ How can the results achieve a meaningful score for year on year comparison ? ” • “ People leave bosses, not organisations where is this covered in Q12 ? ”OT 7 CULTURE CHANGE Page 62  THE FORMAL AND INFORMAL ORGANISATION  HOW DOES ORGANISATIONAL CULTURE CHANGE  WHAT CAN BE CHANGED  FOCUS GROUP DISCUSSIONPage 63 THE FORMAL AND INFORMAL ORGANISATION Organisations are made up of these two basic components (formal and informal) where formally goals are set, strategy is determined, structures are built supported by systems and processes to achieve financial results through asset deployment. BUT how this all happens will depend upon the ‘informal organisation’ which constitutes power, politics, conflict, values, attitudes, beliefs as well as norms of behaviour. This, through leadership styles and organisational behaviour, makes up the ‘way things are done’ ie. The Organisational Culture. There are in fact a multitude of definitions of culture which may provide an insight to the complexities of this phenomenon which constitutes organisation life, but what matters in this DBA context is how Organisational Transformation requires cultural change. This is a common business challenge we need to explore. When the common ingredients which constitute organisational culture can be understood then the need for change and the location of this change is more easily determined. Furthermore these cultural ingredients must be applied to a specific organisation context. Against this backdrop, the desired cultural characters from organisational transformation must now be considered, for example to achieve : -Page 64 1. A Performance Based Organisation 2. A Customer focused business 3. Team Based Orientation 4. Improved Organisational Stability 5. People Centric Orientation 6. Innovation Based Climate 7. Transition towards Privatisation 8. Risk Aversion through progressive corporate governance 9. An Entreprenuerial Orientation Once these characteristics are pre-set as drivers for change then common ingredients for culture change can be prioritised for adjustment to achieve the Organisational Transformation required.Page 65 INSIGHT IS ORGANISATIONAL CULTURE UNDER CONDITIONS OF TRANSFORMATION ALSO IMPACTED BY NATIONAL CULTURES? The seminal work of Hofstede suggests this is the case eg. Long term / short term orientation ; uncertainty avoidance ; individualism vs collectivism ; Power distance and in some societies gender bias. Hofstede’s work has been extended into the GLOBE Study which should be consulted in this respect. National cultures may be an important overlay which has a conditioning effect on organisational culture and by implication an impact upon the change agenda. SHOULD CULTURAL CHANGE LEAD TRANSFORMATION OR BE A CONSEQUENCE OF ORGANISATIONAL TRANSFORMATION WHICH HAS BEEN PRE-DETERMINED ?Page 66 Common Ingredients of Organisation Culture which may require adjustment include : - Identity Visible Artefacts and Symbols Behavioural Patterns Organisational Rituals and Processes The Management Team Organisation Structure Power Bases and Roles Beliefs, Values, Attitudes Ethics Existence of Sub-cultural Groupings Organisational Energy Routines Control Systems for Performance NOTE The complexity is considerable.Page 67 It is therefore important to establish the real need for change, to get the level of ‘buy-in’ needed, but this could be frustrated by : - • A lack of shared values • Different organisational assumptions held • The inability to define where change is needed arising from the difficulty in ‘reading’ the organisation culture • A lack of trust in the proposed changes • Insufficient communication and/or soliciting of prevailing views among those affected • A lack of ownership for the changes • Low levels of employee engagement It is advisable before considering how organisation achieve change is to complete an organisational climate survey or by using an Organisational Culture Assessment Instrument to answer the question “Where are we now ?” . . . as a place to begin to better understand the cultural landscape. Diagnostic tests / surveys will provide useful inputs. HOW DOES ORGANISATIONAL CULTURE CHANGE ? In short, with considerable difficulty, this is owing to the fact that organisational dynamics will interplay between desired change as mandated and emergent change which is what actually happens. This may therefore represent a very real culture change gap.Page 68 • The impact of the organisations history upon the prevailing culture • Patterns of ownership have an impact on culture • The interaction between the Formal and Informal organisation • Attachment to existing artefacts • All in all a change of mindset is required NOTE Unless there is a real crisis then a revolutionary cultural change can rarely be orchestrated. More often change may be incremental and accomplished step by step. Ultimately what must emerge is alignment between the outcomes of organisational transformation and the cultural adjustments which are needed. Otherwise there is a mismatch between future ambitions of the organisation and their ability to achieve them. WHAT CAN BE CHANGED ? If the process of cultural change is difficult and moreover potentially show, what can be changed so that we are realistic rather than optimistic ? The Dobson Guide (1988) offers a valuable approach in 4 Steps. An interpretation of this follows : - The reality may be that a cultural change gap may have to be managed progressively through a series of iterations for alignment with the cultural changes desired because : -Page 69 STEP  Adjust the composition of the workforce through changes in recruitment & selection and policies for redundancy & early severance. Staff retention should focus upon the company talent who actually display company values. Overtime the human capital profile will change, as will the culture. STEP  Reorganisation and redeployment of selected staff to occupy. Job positions where effective people can be more influential. STEP  Top Management leadership and communication for change which visibly cascades down the organisation through a planned programme of activities to embed the new organisational values. These must be lived, not just mandated. STEP  Change systems need to be institutionalised, especially appraisals, recognition & reward and employee benefits to improve organisational energy. Is this approach brutal, is it directive or even coercive ? Are there alternatives which may work more effectively to reduce a potential degree of resentment or resistance ? FOCUS GROUP DISCUSSION Consider the Cummings & Worley 6-Step approach : -Page 70 STEP 1 Formulate and Communicate a (new) clear Strategic Vision STEP 2 Display a high level of Top Management commitment and create organisational pressure for change STEP 3 New Values and Behaviour must be symbolised through Top and Senior Management action STEP 4 Introduce changes to organisational structure, resourcing information flaws and control systems STEP 5 Select new staff to align with the new values to achieve a ‘fit’ with the new culture. Retrench noncompliant staff through voluntary severance schemes or termination STEP 6 Ensure that all of the above falls within an ethical and legal code of conduct However this again is a top-down approach which may or may not work. Scheins approach is different in that he believes assumptions about the organisation lead to values and values influence behaviour which collectively create culture. BUT before any change programme is planned there is a fundamental need to understand the existing culture and why it has been sustained until now. This means it is necessary to discover and reveal the underlying assumptions which may be conscious and unconscious to determine how the organisation feels, acts, reacts and functions. A more informed basis for change then may be achieved.Page 71 INSIGHT  In turn this may help to understand the ‘cultural risk’ which may be faced when introducing cultural change programs which may fail, and may do. A combined approach using Scheins ideas from the outset followed by a stepped approach may offer a more effective solution. The essence of cultural change is to achieve a new cohesiveness through commonly held shared values which may take considerable time to be realised because employees have a high emotional stake and attachment in the current culture. Potential resistance must be anticipated and outcomes may be unpredictable. INSIGHT  Power, Politics and Authority must be factored into cultural change, where :  Power is based upon position, information control and resourcing decisions,  Politics is defined by actual or desired influence and leverage and  Authority is the right to act or command that others take action.Page 72 SCENARIO  As the new business development director appointed from a competitor organisation from a middle management position. SCENARIO  As the new business development director as an internal appointment from a Senior Management Position as Head of Marketing and Sales, SCENARIO  As the new CEO. In this scenario of loss of business, who are the key stakeholder groups currently or potentially affected. What is their agenda and how will this be attended to with an appropriate strategy which secures their commitment ? As a newly appointed board member in the following scenarios, how would you approach culture change to achieve future business sustainability. The business is losing market share to competitors for the 3rd successive year. FOCUS GROUP DISCUSSIONOT 8 ORGANISATIONAL TRANSFORMATION -- MALAYSIAN AIRLINES CASE Page 73 The case of Malaysian Airlines is both current and relevant to the theme of this DBA Module. The airline is facing the very real challenges of organisational transformation, much of this is in the public domain attracting interest globally. As a DBA candidate, using the lens of Value, Strategy and Leadership with an Organisational Transformation Agenda, you should gain significant insights for application as well as making justified proposals in a consultancy capacity.Page 74 MALAYSIAN AIRLINE SYSTEMS BHD (MAS) --- A DRASTIC CHANGE At a packed press conference, Khazanah Nasional Bhd managing director Tan Sri Azman Mokhtar unveiled a plan to revive Malaysian Airline System Bhd (MAS) resulting from the recent challenges faced by the airline. Point by point, Azman read out the details of the restructuring exercise on which the state-owned investment fund has worked for six months with the goal of turning MAS around in three years. Azman stressed that the implementation of the exercise was conditional upon all of Khazanah’s terms. Khazanah will transfer MAS’ operations to a new company (Newco) post-privatisation. Khazanah will spend RM6 billion on this attempt to save MAS – RM1.4 billion on the privatisation and delisting of the airline, RM1.6 billion on the restructuring and retrenchment scheme while RM3 billion will be injected into Newco over the next three years as the transfer for assets, operations and personnel takes place. This overhaul of MAS will not take place unless Khazanah can wholly own MAS as a private entity. Hypothetically, if the privatisation exercise is not carried out, Khazanah will not be able to drive fresh capital into MAS to sustain its operations. This means the national carrier will eventually be bankrupt. A drastic measure will be to rationalise routes for MAS shifting its focus to regional routes with flight times of under eight hours. The airline will continue to service its long-haul routes through its code-sharing programmes and One World Alliance. MAS will however retain key flights to Europe like its flagship London route. “ We plan to serve routes as far north as Japan, as far south as Australia and as far west as the Middle East, Azman explained. Unfortunately, MAS’s twin tragedies have made the restructuring efforts to revive the national carrier even tougher. They have been dealt a serious blow to customer confidence in the airline and tarnished the brand. In the second quarter ended June 30, the airline reported a 6.7 percentage point drop in load factor to 73.7%, exacerbating losses – RM307.04 million in the quarter, which was 75% worse than in the previous year.Page 75 Therefore, Urgent attention is needed to restore the competitive position of MAS. From a business perspective, this will mean detailed attention to future marketing strategies for defined market segments to drive a successful turnaround. In recent times, customer confidence in MAS has been lost, resulting in customer migration to competitors. In turn this has caused significant erosion to MAS brand value. It is also widely perceived that MAS is not competitively priced on certain flight sectors which has also threatened brand loyalty. It is also widely perceived that MAS is not price competitive on certain flight sectors which has also threatened brand loyalty. Strategy interventions are needed and these must be aligned to the Khazanah turnaround plan to ensure that MAS will become progressively more customer centric, competitive and profitable. The change leadership role within the context of this corporate rescue plan is critical for business success and future shareholder value. The Khazanah Nasional turnaround plan for MAS will require corporate restructuring, the injection of substantial capital, a strategic adjustment to the operating business model, revisions to corporate governance, strengthening safety functions, rightsizing the workforce, reviewing supply contracts, reskilling human resource and redeployments, sustained government support . . . And an improved relationship basis for stakeholder engagement including trade partners and customers. NOTE : Content extracted and adapted from “The Edge”, September 2014, Cover Story pp268 – 70, Benshanelin.Page 76 Airlines often rebrand after a crash -- repainting livery, tweaking logos or even changing their names. But after the loss of its planes, it will not be easy for Malaysia Airlines to survive. It was a sultry evening as Alice Ephraimson-Abt, a bright 23-year old, waited to board the Asian aeroplane that was to take her to start a new life halfway across the world. She grabbed her father, Hans, for one last hug before jumping on to the plane. Just hours later, the passenger jet was shot down by the Russian military. Two hundred and sixty nine innocent people perished in the attack. The Guardian July 29, 2014 By Karl West Is there a future for Malaysia Airlines after flights MH370 and MH17 ? That was in August 1983. But the downing of Korean Air Lines Flight 007 from New York to Seoul 31 years ago has distinct parallels with this month’s killing of 298 passengers on Malaysia Airlines Flight MH17, which was shot down over Ukraine, with many blaming pro-Russian rebel forces. Both incidents sparked global outrage and heightened tensions between Moscow and the West. Both incidents put the airlines involved under extreme commercial pressure. Korean Air Lines survived its brush with disaster, but not without huge changes to the way it looked and operated. The human cost of airline tragedies is well-documented. Hans Ephraimson-Abt, who passed away last year aged 91, went on to become a renowned air crash victim’s crusader after setting up the Air Crash Victims Families Group. But the business cost of recovering from these shocks is often harder to quantify. Both Trans World Airlines (TWA) and Pan American (PanAm) failed as a result of the wounds left by fatal air disasters.Page 77 The latest Malaysia Airlines tragedy comes just four months after an earlier plan, Flight MH370, disappeared en route from Kuala Lumpur to Beijing with 239 passengers on board. Jonny Clark, an aviation brand consultant, says passenger jet disasters live longer in the memory because their recognisable logos and corporate colours are splashed across TV news channels and newspaper front pages. “ When a plan crashes, it’s the company that was flying the plane that crashed -- in this case, Malaysia Airlines. ” Recent reports suggested the management of Malaysia Airlines were weighing plans for a brand overhaul that would have included renaming the carrier, although Clark cautions that this could be “a nail in the coffin”. “ Passengers could see through a superficial name and brand change, especially after the global media coverage of both incidents. ” In the case of Malaysia Airlines, an expensive rebrand might not even be necessary. Clark notes that the carrier had already started repainting older planes with new livery earlier this year : a blue-and-red vertical stripe is now painted halfway along its planes, instead of the stripe that runs along the whole length of older models. Both of the stricken planes still had the old livery, so none of the images of the wreckage in Ukraine, or the reconstructions of the missing plane, have featured the new corporate paint job. After its 1983 tragedy, Korean Air Lines (KAL) opted for a name change, within a year of the attack it has been renamed Korean Air. Perhaps more significantly in the eyes of the customers, its planes were repainted from white to light blue, and the KAL tailfin logo – a red crane enclosed in a red circle – was replaced with a red-and-blue taegeuk, the Korean yin-yang symbol. That distinctive blue livery and tail fin remain to this day. Despite the corporate makeover, Korean Air struggled for years to overcome its poor safety record. In 1999 it suffered three crashes in the space of six months, two of which involved fatalities. This time, there was to be no rebranding -- the airline decided it had to completely change its internal operation.Page 78 It swept away old management hierarchies, hired more non-military pilots and brought in Lufthansa, the German airline giant, to retrain its pilots. It took a long time, but Korean Air’s revamp worked. It is now a top-ranked airline for safety and service. The future of Malaysia Airlines, which has racked up huge financial losses in the last three years, is far less certain. Joseph D’Cruz, airline industry expert and Professor at the Rotman School of Management at the University of Toronto, thinks the latest crash ‘ will reduce sales to the point that it will not be financially viable. ’ A collapse of an airline founded in October 1937 would be a severe blow to national pride. Malaysia Airlines, which is 69% owned by Khazanah Nasional, the state investment fund, flies around 37,000 passengers a day to 80 destinations worldwide and employs about 20,000 people. The mysterious disappearance of Flight MH370 tarnished the airline’s reputation and hammered sales, particularly in China, where customers flocked to rival operators. Shares in the operator have plunged 28% in the last year, and the business is currently valued at £682.5m -- around ten times less than IAG, the group that owns British Airways and Iberia. Long before these crushing blows to public confidence, though, Malaysia Airlines was battered by high costs and falling sales, culminating in a £222m plunge into the red in 2013. It is expected to do even worse this year, after reporting a pre-tax lost of £82m in the first three months. The carrier has struggled to compete against low-cost entrants such as Indonesia’s Lion Air and Malaysia’s AirAsia, and cash-rich Middle Eastern powerhouses such as Etihad and Emirates. Douglas McNeill, investment director at City financier Charles Stanley, says : “ We’ve seen in Europe that is it possible for legacy airlines to compete, but it takes many years and a lot of restructuring. ” Malaysia Airlines was strongly criticised by travellers for the way it handled the disappearance of Flight MH370.Page 79 The reaction to the second disaster has been better ; it is offering refunds to any passengers who are too scared to fly on its planes. It is also waiving all fees and accepting requests to postpone or cancel flights scheduled for this year, even on non-refundable tickets. Whether the gesture is enough to win back the trust of its Chinese customers remains to be seen. The disappearance of MH370 sparked a 60% fall in sales from China in March. Malaysia Airlines faces a long road to redemption. While some airlines have been able to move on from tragedy and regain customers’ trust with little more than a fresh coat of paint, others have had to take far more drastic action. ValuJet, a low cost US operator, rebranded itself as AirTran Airways after a crash in 1996, and managed to shed the perception that it had a bad safety record. Another that was forced to embrace a corporate makeover was SwissAir, following a crash in 1998. Three years later it became Swiss International Airlines. The brand revamp was more subtle than some ; the airline, often known as Swiss, has kept its instantly recognisable tailfin logo of a white cross on a red background. During the seven-year project, it refreshed its planes’ liveries, refurbished its premium-class lounges and upgraded cabins in its long-haul aircraft. Clark thinks Swiss was able to pull through because it retained the support of the public in Switzerland, who viewed the airline as a symbol of national pride ; this perhaps, offers some hope foe Malaysia Airlines. TWA never really recovered after one of its Boeing 747s crashed in 1996 just 12 minutes after its take-off from New York, and the company filed for bankruptcy in 2001. Others were not so fortunate. TWA never really recovered after one of its Boeing 747s exploded and crashed in 1996 just 12 minutes after take-off from New York’s JFK airport on a flight bound for Rome ; the carrier eventually filed for bankruptcy in 2001. Another airline that never managed to pull itself back from the brink was Pan Am. The carrier limped along for a few years after Libya’s 1988 bombing of Flight 103 over Lockerbie in Scotland, which killed 270. It finally collapsed in 1991, following the outbreak of the first Gulf War, which sent fuel prices skyrocketing and depressed the global economy.Page 80 Despite current public concerns about air travel, it is still much safer to fly today than it has ever been. Until this year, Malaysia Airlines had just two fatal accidents in its history, and the last 19 years have been fatality-free. The website planecrashinfo.com shows there were between 25 to 35 air disasters a year throughout the 1960s and 1970s. Last year there were only two. Yet D’Cruz reckons there are no good options left for Malaysia Airlines. The most likely saviour is the Malaysian government. Reports suggest Khazanah Nasional, the sovereign wealth fund, is working on an emergency rescue by buying up the shares it does not already own. Taking Malaysia Airlines off the stock market would pave the way for Khazanah to perform radical surgery. Khazanah owns stakes in about 50 firms, valued at $40bn, across sectors as diverse as banks, telecoms, hospitals and theme parks. According to sources quoted by Reuters, the restructuring plan could be revealed next month. It would involve a sale of the profitable engineering arm, plus the airport services or budget airline subsidiaries. Other costsaving measures would be driven through, including slashing its bloated payroll and installing a new management team, The airline and Khazanah commented that the reports were “ speculation ”. The next move by Malaysia’s power brokers will be decisive in determining whether the airline can indeed rise from the ashes. [Source : www.theguardian.com/world/2014/jul/29/is-there-a-future-for-malaysia-airlines]Wall Street Journal (Online) July 18, 2014 MALAYSIA AIRLINES FACES A DIFFICULT FUTURE ; THE TWO CRASHES IN FIVE MONTHS COULD DEAL A CRIPPLING REPUTATIONAL AND FINANCIAL BLOW TO THE AIRLINE Malaysia Airlines has lost two planes carrying 537 people, in the space of five months. Now, the big question for the carrier’s survival is : Will passengers keep taking their flights ? By Gaurav Raghuvanshi and, Jeffrey Ng Aviation and crisis-management experts say the fate of Malaysia’s flagship carrier will hinge on how it weathers what’s expected to be another sharp drop in bookings after its latest air disaster, when Flight 17 from Amsterdam to Kuala Lumpur crashed Thursday in the battle-torn region of Donestk in eastern Ukraine. U.S. intelligence agencies say they believe the plane was struck by a ground-to-air missile. The crash took place at the height of the holiday travel season for Europeans, who accounted for over half of the passengers aboard, and during the Islamic month of Ramadan, a busy travel period for Muslims. The Boeing 777 -- the airline’s main long-haul workhorse – was completely full, carrying 298 people. The airline had already been reeling from the March disappearance of Flight 370, which vanished about an hour after taking off from Kuala Lumpur to Beijing with 239 people aboard. Taken together, that is the biggest casualty toll suffered by any airline over such a short time span. Page 81“ A double tragedy of this nature after such a short period is unheard of in the industry, ” said Vivian Lines, global vice chairman and crisis-management expert at Hill + Knowlton Strategies in Singapore. “ They were the wrong airline in the wrong place at the wrong time. ” The disasters could deal a crippling reputational and financial blow to Malaysia Airlines’ listed parent, Malaysian Airline System Bhd, which is 69%-owned by the Malaysia state investment firm. The airline had already been suffering from years of poor performance. A high cost base and robust labor unions that represent its 20,000 strong workforce have eroded the airline’s competitiveness against the region’s leaner and highly profitable low-cost carriers. Malaysian Airline System Bhd, reported a net loss of 443 million ringgit (S139.5 million) in the first quarter, widening from a loss of 279 million in the same quarter last year. In 2013, the company reported a loss of 1.17 billion ringgit, its third consecutive year in the red. At the end of the first quarter, the company had $1.06 billion in cash-on-hand and $3.7 billion in total debt, according to data from S&P Capital IQ. Total debt has more than doubled from $1.78 billion at the end of 2011. If the company continues to incur losses, which is widely forecast, some analysts say they expects its current cash levels to allow the airline to run operations until the end of next year, before it would need to consider seeking a capital bailout from the state. Malaysia Airlines’ yields -- how much money the carrier makes per passenger for each kilometer flown, and an important measure of profitability -- were already falling after the first disaster, said Ian Douglas, senior lecturer of aviation at the University of New South Wales. If spooked passengers avoid the airline’s flights, those yields could fall further. Page 82After a boom in passenger numbers during 2013, Malaysia Airlines’ passenger growth has been decelerating steadily since February, according to the company’s monthly traffic data. Following the disappearance of Flight 370 in March, the carrier registered a year-on-year decline in passenger numbers of 4% in May to 1.3 million, its first fall in traffic since September 2012. Still, airline executives have said traffic had begun to improve in recent weeks. Reflecting the loss of consumer confidence, Mr. Douglas says several of his friends in Australia have cancelled travel on Malaysia Airlines, rebooking on rival Singapore Airlines Ltd. After Thursday’s crash. That is “ even though they know the loss of the aircraft could have happened to any carrier flying from Western Europe towards Southeast Asia, ” he said. “ The business implications for Malaysia Airlines are very, very significant, ” said Jonathan Galaviz, partner at consulting firm Global Market Advisors. “ The Malaysia Airlines brand is heavily damaged, even if it’s not the airline’s fault. “ The unprecedented nature of the disasters makes it difficult for analysts to assess the airline’s ability to overcome its woes. But the biggest challenge for the airline, they say., will be how it could keep its passenger figures up without substantial discounting, a strategy it is recently resorted to fill more seats. “ Before [the latest crash] it was just a cost issue…now I would question that there’s going to be a revenue problem as well, ” as demand will likely plummet despite the peak travel season, says Daniel Tsang, founder at Aspire Aviation, a Hong Kong-based consultancy. “ The dire situation of the airline right now is jus the tip of the iceberg that has been brewing for the last decade, ” he said. Page 83To be sure, industry watchers expect the Malaysian government to step in if the situation gets too bad. Earlier this month, people with knowledge of the airline’s restructuring process said that the Malaysian state investment firm, Khazanah Nasional Bhd., was considering taking the company private, it would be easier for its management to push tough decisions without being questioned by shareholders. Page 84 Analysts said the best course of action may be to let the airline fail, and then to rebuild it from the ground up. “ Starting from scratch, while radical, will be a very sustainable measure over the long run, ” said Mr. Tsang. Several premium carriers, including Swiss International Air Lines with its predecessor Swissair, and Japan Airlines Co. have in recent years gone through similar restructuring programs in hopes to rebuilding financial strength. Malaysian Airline System’s Kuala Lumpur-traded stock was lately trading down over 11% after falling as much as 18% earlier in the session. The stock price is down around 25% since the disappearance of Flight 370 in March. For now, Malaysia Airlines needs to concentrate on handling Thursday’s crash better than it did the disappearance of Flight MH370 in March, said Hill + Knowlton’s Mr. Lines. This time, it should be easier to figure out what happened -- something that is still a mystery in the case of Flight 370 and to comfort the families of victims, he said. Key players seem to have learned lessons from the first disaster as well : Malaysia’s prime minister was on television making a clear, public statement soon after the crash, an improvement over the confused and delayed March response from officials and the airline. Longer term, Malaysia Airlines has to reassure passengers that it is safe to travel on its planes, something that could require a complete overhaul of the company and the brand, Mr. Lines said. Source : http://search.proquest.com/docview/1545787093?accountid=135175The Sydney Morning Herald Business Day September 9, 2014 MALAYSIA AIRLINES SAYS AUSTRALIAN CUSTOMERS ARE COMING BACK Malaysia Airlines is pointing to signs of recovery in passenger demand following MH17 tragedy over Ukraine in July, with its flights heading from Australia and New Zealand to Kuala Lumpur now averaging at least 70 per cent full. Malaysia Airlines regional senior vice president Lee Poh Kait said the resurgence in bookings was a result of “unrelenting support” from travel agents combined with outstanding fare deals and positive community sentiment toward the airline. “This region is our main market outside of Malaysia,” he said. “We are determined to rebuild confidence in Malaysia Airlines as one of the best full-service carriers in the world. We appreciate the support of the travel trade, our passengers and valued employees, especially our award-winning cabin crew. ” By Jamie Freed Malaysia Airlines last month increased commission rates to travel agents to 11 per cent from 6 per cent for tickets booked for September 15. It is also offering “spring sensation” flights to Kuala Lumpur with return economy class tickets from as little as $798 from Melbourne and $813 from Sydney until September 21. In the immediate aftermath of the MH17 tragedy, Malaysia Airlines has offered full refunds to passengers with tickets booked that no longer wanted to fly on the airline. Page 85Including the mysterious disappearance of MH370 in March, 537 passengers and crew have died on Malaysia Airlines flights this year, marring a longstanding strong record for safety. The airline is poised to be de-listed from the Malaysian bourse following an offer from its major shareholder Khazanah Nasional, a state-owned investment fund. A restructuring plan will involve the loss of 6000 jobs at the carrier. The Dutch Safety Board is due to release a preliminary report into the MH17 incident at 6pm Sydney time on Tuesday. To-date, evidence suggests the flight was shot down by pro-separatists rebels in eastern Ukraine. Source : http://www.smh.com.au/business/aviation/malaysia-airlines-says-australian-customers-are-coming-back- 20140909-10egmx.html Page 86Gulliver Business Travel The Economist Dec 1, 2014 MALAYSIA AIRLINES : MUCH ATWITTER ABOUT NOTHING Malaysia Airlines which has lost two aeroplanes in tragic circumstances during the past year announced a $170m thirdquarter loss on Friday. But the airline’s continuing struggles -- which have forced Malaysia’s government and sovereign wealth fund to announce plans essentially to nationalise the flag carrier – have been overshadowed in recent news coverage by a series of inconsequential stories about the company’s tweets. “In a Twitter Post, Malaysia Airlines Sends the Wrong Message,” The New York Times (http://www.nytimes.com/2014/11/9/world/asia/malaysia-airlines-tweet-sends-wrong-message.html?r=0 assessed on 10th December, 2014) “Malaysia Airlines apologises for tweet, posts loss.” USA Today (http://www/usatoday.com/story/todayinthesky/2014/11/28/malaysia-airlines-apologizes-for-tweet-postsloss/19611871/accessed on 10th December, 2014). • A September advertising campaign and free-ticket giveaway that asked customers to submit their “ultimate bucket lists”. (A “bucket list”, the Times helpfully explains, is used by some people to refer to a list of things they wan to do before they die…ie. “kick the bucket” Page 87• A September tweet, using the hashtag #flyinghigh, which advises : “If you fell down yesterday, don’t stay down. Get up as quick as you can.” • A October tweet, highlighting the airline’s new slogan, “keepflying”, reading : “It does not matter how slowly you go as long as you do not stop.” • The latest offense on Thursday, was a tweet that read “Want to go somewhere, but don’t know where ?” The offensive thing about these items isn’t that they recall the loss of MH370, still missing in the Indian Ocean, or the downing of MH17 over Ukraine. It’s that they’re utterly banal. Only the most thick-skinned and histrionic of Malaysia Airlines’ customers could conceivably claim to be offended by this pablum. At worst, these promotions highlight the airline’s marketers’ lack of creativity. The carrier’s problem isn’t bad tweets, it is that it lost two airliners. Investigators may ultimately determine that neither disaster was the airline’s fault. But people are instinctively terrified of air travel and disasters – especially mysterious ones such as the loss of MH370 – naturally stick in people’s minds. Malaysia Airlines wouldn’t be the first carrier to find it could not recover from the knock-on effects of such a tragedy. The Malaysian government obviously feels compelled to try to save the airline. But if even the faintest echoes cause people instantly to associate the airline with death and destruction, saving it as a business --- especially under its current name – may already be a lost cause. Source : http://www.economist.com/blogs/gulliver/2014/12/malaysia-airlines Page 88POTENTIAL ADDITIONAL INFORMATION http://www.dailymail.co.uk/travel/travel_news/article-2736560/Struggling-Malaysia-Airlines-slashes-priceslong-haul-routes-London-gives-away-free-flights-customers-crew-desert-following-twin-disasters.html Raghuvanshi, G. (2014, Apr 05). Malaysia airlines says priority is families of the missing, though ticket sales fall; company, struggling even before flight 370 disappears, suspends advertising. Wall Street Journal (Online) Retrieved from http://search.proquest.com/docview/1512701001?accountid=135175 Chiu, J. (2014, Mar 10). Missing flight to add to malaysia airlines' financial woes; flag carrier has been unprofitable for the past three years. Wall Street Journal (Online)Retrieved from http://search.proquest.com/docview/1505236350?accountid=135175 http://au.ibtimes.com/articles/560768/20140728/malaysia-airlines-mh17-mh370-crash-missileflights.htm#.VIgaNNKUe1M Page 89Page 90 FOCUS GROUP In your role as strategy consultants : - DISCUSSION 1. Discuss and produce a consensus upon the main challenges to be faced in achieving the desired transition which Khazanah plans for Malaysia Airlines. 2. How would you propose that the leadership of this major project be addressed ? 3. How in your opinion should this change project be to achieve organisational performance objectives throughout significant structural and cultural changes ? 4. As a group produce a roadmap to lead to this change project to deliver the desired outcomes ? 5. How would you use digital communications and social media to keep stakeholders informed of the milestones achieved ? 6. If ‘publicity’ from social media sources can be anticipated, what actions can be taken to reduce any negative impact which may arise ?OT 9 STRUCTURE, PROCESSES, BUSINESS PROCESS RE-ENGINEERING Page 91  ORGANISATION STRUCTURING  THE ROLE OF STRUCTURE  PROCESSES  CRITICAL QUESTIONS  BUSINESS PROCESS RE-ENGINEERING  MOTIVATION FOR BR AND BPRPage 92 ORGANISATION STRUCTURING Organisation structure and restructuring cannot be considered in isolation, there are important interdependencies to consider, for example : - • The relationship between structure, strategic intent and strategy • Cross-functional Dependencies • Strategic Business Control • Resource Deployment • Strategic Planning for Value Creation and Value Capture • Competitive Differentiation • Customer Service Levels • Leadership and Organisational Cohesion to achieve business objectives and shareholder return NOTE But how often is this considered proactively and how often is reflective adjustment needed ? INSIGHT The complexity of and consequences arising from the structural dynamics of the organisation are a very real challenge to map and an even greater challenge to manage. There is never a perfect structure.Page 93 WHAT IS THE ROLE OF STRUCTURE ? The role of structure is to absorb the pressures placed upon the organisation for performance improvement and sustainability. • Overall performance and the requirement for preserving shareholder value / stakeholder relationships • Competitive leadership • Decision making efficiencies and Organisational Agility • Collaboration • Rationalisation and Right Sizing • For pulling together rather than pulling apart The message is clear, the purpose served by structure needs to be defined and then evaluated against the agenda for organisational transformation strategy, so that structural alignment can be achieved between strategy and structure anchored to the size of the organisation. Organisations need to adapt, evolve and change their structures to meet with anticipated or actual environmental turbulence. It is important to guard against structural inertia which may arise by simply seeking to avoid disturbance to the prevailing organisational dynamics. Such pressures include : -The need for restructuring throughout an organisation’s life-cycle is inevitable to allow new energy to flow, otherwise organisations stagnate and productivity diminishes. Page 94 Among the group members there will be experience of structural change based upon an agenda for organisational transformation. FOCUS GROUP DISCUSSION Based upon shared experience, what do you consider to be the essential conditions for such change to be effective ? PROCESSES Processes are the way in which inputs are converted into outputs. Processes are the means by which transformation takes place. A strategy can be created but without an implementation process in place for execution it simply remains a ‘great idea’. Without processes business simply cannot function. “ Management is focused upon improved results from new ideas without adequate attention to the process needed for achievement. These are left to assumptions or even wishful thinking. ” Discuss. FOCUS GROUP DISCUSSION Any strategy has to be lead, but it also has to be ‘thought through’ from end to end to ensure organisational capability, competency and resourcing . . . AND PROCESS READINESS.Page 95 NOTE : Value can be created from new strategies but it can only be captured through well conceived time efficient processes. A critical periodic review is essential to track : - How many organisations undertake process mapping to ensure that core processes can absorb new strategy implementation or are equipped for additional load ? CRITICAL QUESTION Processes, both functional and cross-functional are a major source of organisational cohesion and productivity outcomes. Process audits are therefore needed to assure process performance adequacy for current and projected levels of productivity. Where does the responsibility and authority lie in the organisation for process reviews ? Is this a normal part of a management review or an outcome from planned change or a reaction to changes that are not working arising from process inefficiencies or even failure ? CRITICAL QUESTION • Process Effectiveness • Process Efficiency and where appropriate, metrics and measurement tools are required as a basis for setting standards and monitoring performance.Page 96 New Processes need consultation often on a team basis to diagnose and prescribe what is really needed, then these will need to be tested, refined and mandated within levels of authority agreed for action, review and performance. Such protocols will achieve a sense of process discipline, provided all communication remains transparent. It is not surprising that the original work on Business Process Reengineering took root, even as a wake up call for management that we need to ensure our processes are in order to achieve business intentions and planned outcomes. NOTE : In some industries where corporate governance has continued to prevail this places pressure upon process protocol design and the need for re-evaluation.Page 97 The focus for BPR was to achieve radical improvements in costs, quality and service by going back to the drawing board and rebuilding business process from scratch. When combined with Business Reengineering (BR) then an integrated approach is achieved, ie. BPR + BR. The three founding principles of BR and BPR is dedication to : • CUSTOMERS • THE COMPETITION • THE NEED TO CHANGE In this way, Hammer and Champy were very clear, a dedicated effort to be given to the business competitiveness in defined markets and then to the processes which in turn will add value to the customer experience. BUSINESS PROCESS REENGINEERING (BPR) The seminal work which lead to BPR becoming widely known was purported by Hammer and Champy Davenport & Prashad. To do this, the approach is not to ask “Where are we now ? ” but to ask “ Why do we do business this way ? ”. BR and BPR challenges the status quo.Page 98 The underlying premise arises from precedents set back in the history of the organisation which may not be relevant (or effective) today. For progressive organisations, the basis for a new rationality may be needed based upon using information technology related to how the business must work rather than how it used to function. To do this business process modelling is required with an IT interface. Today original process ideas have been intensified by the pace of IT innovation, the Internet and Cloud Computing in both B2B and B2C environments. These have fuelled a continuous reengineering agenda for organisations seeking progression through relevance, efficiency and to achieve rightsizing with attendant cost reduction. The outcome is to create value by doing more with less through an IT backbone driven by top management intentions to change the way in which business is conducted. Certainly BR and BPR will give the needed shake-up which may be required for future sustainability. NOTE : The BR Agenda is often Organisational Transformation Change across the entire business, whereas the BPR Agenda is focused upon process redesign or elimination. In turn the operating culture of the organisation will require adaptation, but this can only be achieved with strong dedicated leadership. NOTE :Page 99 Key Questions to be faced : From a Top Management leadership perspective, the emerging mindset is to challenge the status quo. MOTIVATION FOR BR AND BPR The adoption of BR and BPR must be based upon an established need. Such need is often driven by crisis or economic / business downturn where the need for survival becomes a powerful driver for organisational transformation. This in turn increases organisational energy and commitment for change even though their may be issues along the way in terms of employee moral and human capital adjustment. Some observers may agree that this process of reengineering is top down desired to improve profits and shareholder value, it could be viewed as brutal because the deep searching process required is potentially destabilising. • Why are things done this way ? • What assumptions form the basis of why things are done this way ? • Are these assumptions valid today ? • Do our core assumptions need to be changed ? • If so does the business need to be re-engineered for relevance and sustainability ? • If this is required, do the business core processes need to be challenged in the same way to improve efficiency ? • Do we need a new business formula for cost optimisation, quality, competitiveness, customer connectivity, speed and profitability.Page 100 INSIGHT Yes BR and BPR comprises fundamental rethinking the business end to end. 1. ORGANISATION - PREPARATION An assessment and forecast for the business environment, the competitive business context and performance to-date to establish the need for change. THE STEPS 2. RETHINK THE WAY THE - Analyse and challenge core processes and redesign as needed by using the questions stated above with the objective to simplify and eliminate. This may produce a radical outcome. BUSINESS FUNCTIONS 3. RESTRUCTURE THE - This will cause disruptions, destabilise those affected to create an ORGANISATION AROUND insecure environment within which to introduce change. THE NEW CORE BUSINESS PROCESSES 4. IMPLEMENT NEW - An IT backbone will be required to enable the change. In time IT will MEASUREMENT SYSTEMS become the driver for progressive re-engineering. AND INFORMATION FLOWS 5. ENSURE TOP MANAGEMENT - BR and BPR needs visible, consistent, committed involvement from the LEADERSHIP AND DIRECT top supported by cross-functional terms. INVOLVEMENTPage 101 The result is the future catches us unaware, unready and even unwilling to change. Therefore BPR with a future orientation is essential. • THINGS URGENT PREVAIL AND THINGS IMPORTANT GET NEGLECTED NOTE : In more recent times, the essence of BR and BPR has been supplemented if not superceded by the Balanced Score Card, Six Sigma and then designed to achieve Organisational Transformation in a less dramatic and radical way. THESE WILL BE FEATURED IN OTHER DBA MODULES. INSIGHT For BPR to work, total commitment is needed for new core competencies as well as new core processes. An awareness of the future, rather than just the current should become a new managerial mindset. Attention to ‘today’ only may have emerged because : - • MANAGERS MAY ACT, BUT FAIL TO THINK • BUILDING A FUTURE IS NOT IN A CURRENT FRAME OF REFERENCINGOT 10 SIX SIGMA -- AN OVERVIEW Page 102 THE DMAIC 5 STEP MODEL The Six Sigma Methodology may be adopted as an organisational initiative to measure and analyse business processes in these key areas : - Each with the ambition to achieve zero defects where possible AND change the way in which business are managed. 1. Customer Satisfaction 2. Cycle Time Reduction 3. Defect Reduction The Six Sigma focus therefore is about : - 1. Organisational Transformation 2. Strategic Improvement 3. Problem Solving 1. Define 2. Measure 3. Analyse 4. Improve 5. Control Using the DMAIC methodology to achieve change.Page 103 1. Define To unfold these steps as an incremental problem-solving process, the following explanation should provide a basic orientation : • What is the business case, why are we looking into this domain ? • What is the specific problem or opportunity ? • What are the constraints within which we must work ? • Where are the boundaries, what is the scope ? This stage is intended to produce a ‘DMAIC charter’ to achieve focus. Typical questions to raise would be, for example : - This will produce a blueprint for the project. Now it is vital to determine who the project is for . . . WHO IS THE CUSTOMER and can we translate the Voice of the Customer into specific requirements. • Who is involved as team players and stakeholders ? • When can each phase of DMAIC be achieved ? NOTE : This may be the most challenging phase.Page 104 2. Measure Measurement requires Three measurement categories are needed : -  Data collection to validate the ‘Define stage’. This may offer early insights into causes for the problem or opportunity situation.  A process view to be taken.  Output measures, the end results which impact the business as outcomes.  Operational Processes for tracking performance or under performance.  Input quality measures which will affect the outputs. 3. Analyse Analysis is undertaken to get a more detailed understanding of the processes and the problem / opportunity in order to determine the unbiased ‘ROOT CAUSE’. Typical Root Cause Analysis may be concluded under headings such as people, technology, materials, methods used, environmental factors and so on depending upon the context, but ultimately the root cause analysis processes will achieve focus through the collection of evidence and data using a series of analysis tools.Page 105 4. Improve This step is to plan to take action for resolution of the problem / opportunity so that results can be achieved. Reflection back to Stage 1 ‘Define’ is essential to ensure the DMAIC methodology is still in alignment with the actual intentions or ‘charter’. It is possible that ‘redefinition’ may be needed in light of the analysis stage --- also that alternative ‘solutions’ may be offered which will require criteria for evaluation to be applied [eg. resolution time, cost, benefits, customer value added]. Improvement proposals are submitted to those who own the definition stage in the problem / opportunity domain. Authorisation is then given for implementation, ‘IMPROVE MOVES TO IMPLEMENT’ and usually screened through pilot testing until the solution is refined for adoption. 5. Control Control is needed to reinforce the new way of working so that the solution remains on track. Critical Measures are determined to support the monitoring stage as well as a response plan for handling issues if they arise. This stage helps to ‘institutionalise’ the changes which have been implemented and the people involved accept ownership of the new ways of working. This completes the DMAIC methodology, simple but searching and usually effective depending upon the ‘Define’ stage and the management of the Six Sigma techniques throughout the organisation.Page 106 THE UNDERLYING SIX SIGMA FORMULA The foundation stone of Six Sigma is the following formula Y = f ( X s ) which means : The output of any process ( Y ) is a function ( f ) of the inputs ( X s ) WHAT IS SIGMA ? The terms SIGMA is derived from the bell-shaped curve known as the Normal Distribution whereby the shape of the curve is governed by the distribution of data beneath it. The variability of this data is measured in terms of a number of standard deviations from the measurement of central tendency known as the mean. Sigma is the term which represents this standard deviation. Thus using this metaphor, any deviation from an idea position (the mean) is a defect to be corrected. Therefore process defects can be measured against their ideal in terms of multiples of sigma. Hence this is where there are opportunities for improvement. So therefore it is essential to understand the inputs that are driving the outputs. In this way a defect presents an opportunity. The levels of Sigma 1 to 6 reduces the probability of defects. [This would be important in precision manufacturing terms for example].Page 107 In business process terms, this translates to the levels of efficiency with which the business is working. In Sigma terms, if business are operating at quality levels of say 3 to 4 Sigma (out of 6), then the business is not operating at optimal levels owing to the defects in the system of processes. This approach can be applied to mechanical processes, but is more challenging in human activity systems. While intended as a statistical measurement, the “ concept ” of 6 Sigma is potentially more valuable than the precise calculation from an organisational transformation perspective. In this case, zero defects may be an ambition but not a reality. • How would an organisation assess its willingness and readiness to invest in and adopt Six Sigma as a methodology for process improvements for customer experience improvements ? SEARCHING QUESTIONS • How can Six Sigma be sustained as an ongoing organisational commitment to organisational transformation ?OT 11 ENTERPRISE RESOURCE PLANNING (ERP) Page 108 ERP Systems are software packages which are designed to enable organisations to integrate their business processes with accessible information relevant to planning, organising, decision making & control for effective resource acquisition and deployment across all business functions. The business becomes more visible by providing real time information. 1. A Strategic Plan for the Business 2. A Change Management System in Place 3. A Communication Plan for ERP Intervention 4. An ERP Team of internal staff and external Consultant 5. ERP Project Management End-to-End 6. Top Management Leadership 7. Systems Analysis, Software Choice and Technical Implementation 8. Post Installation Support For an Organisational Transformation Project, typically ERP implementation will require : - For some organisations, this will be a first time intervention, for others it may be the need to upgrade.Page 109 With the emergence of digital technologies, ERP systems are in high demand with many vendors competing in this market space, especially with the emergence of Cloud Computing as well as organisational at pressures to improve productivity, business controls, agility and shareholder value. 1. Operational - customer service improvements, cost and time reduction to business process and real data quality improvements The claims of well-conceived ERP Systems is that the key benefits are : - Now the challenge is to determine how ERP Systems can be featured in a model for Organisation Transformation. 2. Managerial - improved resource management, performance control and faster decision making 3. Strategic - supports the strategic plan and review processes for competitive advantage 4. IT Infrastructure - build the capacity for business agility 5. Organisational - supports Human Capital Development through empowerment and culture change, employee morale and broadened employee skills migrationsPage 110 FOCUS GROUP TASK  View Oracles Cloud Applications ERP Cloud Solutions Oracle ERP For Mid-size Companies  Research Top ERP Vendors to evaluate Software Options and Ratings Hint Use Top ERP Software Vendors Report 2015 Edition  Assess how will such ERP Systems, using Digital Technologies change the way we achieve Organisational Transformation ? FOCUS GROUP DISCUSSIONOT 12 RELATIONSHIP MANAGEMENT Page 111  RELATIONSHIP CAPITAL  NEW STAKEHOLDER RELATIONSHIPS  MANAGING DEPENDENCIES  RELATIONSHIP MANAGEMENT AND VALUE PROPOSITIONS  VALUE CHAIN BASED RELATIONSHIPS  STAKEHOLDER GROUPS AND RELATIONSHIP MANAGEMENT  THE IMPORTANCE OF TRUST  CRITICAL FACTORS FOR RELATIONSHIP MANAGEMENT FAILURE  TEAMS, TEAMWORKING AND ORGANISATION COHESION  LEADING TEAMSPage 112 One critically important key to Organisational Transformation is the relationship capital which has been built to thereby provide a sound platform for sustainable business relationships. It is from this perspective that multifaceted dimensions of relationship capital cannot be overlooked. RELATIONSHIP CAPITAL Relationship Capital probably underpins the entire stability of the organisation, it could be explained as the ‘goodwill’ upon which business has been built to achieve trust bonds with all key stakeholder groups. When it is realised that relationship capital is built upon the sum total of relationships throughout the business network, comprising customers, suppliers, employees, partners, regulating bodies and so on . . . and yet it cannot be effectively measured or even adequately resourced, then this intangible component of business cannot be neglected. Organisations in turbulent business environments with intensifying competition and related market uncertainties will depend upon their relationship capital for survival, provided that the ‘engagement’ dynamics remain positive, valued and effectively integrated. WITHOUT RELATIONSHIP CAPITAL IN BUSINESS, NOTHING MOVES.Page 113 Felt Relationships are complex opportunities to learn achieved through mutual emotional exchanges which build dependencies and trust. FOCUS GROUP DISCUSSION Forming relationships and then sustaining relationships requires different levels of energy and commitment. Relationship as an emotional concept needs nourishment to remain valued, otherwise the relationship becomes merely transactional or temporary. From your collective focus group experience : - • As leaders where can relationship capital be potentially eroded ? • As strategists, how may value creation and value capture evolve from a relationship platform to build equity into corporate and market identities. • As an employee, map the relationship dependencies which prevail in the workplace. • As an entrepreneur, how does the concept of relationship capital fit into the business model ?It is well-accepted that new relationships may move through a series of dynamics which are acknowledged but sometimes difficult to read, understand and leverage. These were initially modelled by Tuckman (1965) for performance outcomes from team-based project work. Page 114 FORMING STORMING NORMING PERFORMING ADJOURNING * This classical model can be applied to the relationship management with New Stakeholder groups as role clarity emerges into role congruence for win-win outcomes. NEW STAKEHOLDER RELATIONSHIPS NOTE : This simplistic causal process may not be so sequential as proposed. * Added later and even some may add ‘ mourning’ when regret sets in after the adjourning stage.1. At the Forming Stage Page 115 Assess & consider why could stakeholder relationship dynamics experience difficulties which in turn frustrate the building of relationship capital, in the following stages. FOCUS GROUP DISCUSSION SCENARIO  2. At the Storming Stage 3. Never Proceed Beyond the Storming Stage And Move to Adjournment 4. Face Difficulty at the Performing Stage and Lead to Early Adjournment SCENARIO  What are the emergent findings from Scenario  and Scenario  for Relationship Capital Adequacy for Business Security. Now apply your conclusions to stakeholder relationship management challenges.• Political Leadership at Country Level Page 116 From the learning which has evolved in focus group discussions, you are required to demonstrate application skills. APPLICATION SKILLS DISCUSSION WITHIN YOUR LOCAL CONTEXT, SELECT ONE SCENARIO FROM THOSE BELOW : • A Business Strategic Alliance for Growth Ambitions • As a New Senior Manager leading a Core Business Strategic Unit • As the CEO of An Established Business with an ageing Top Management Team challenged by a changing cultural climate driven by reduced levels of Employee Engagement now affecting business performance Now refer back to the stages in building relationship capital and potentially eroding it to make conclusions about stakeholder relationship management challenges.Consider how relationships are formed. At this forming stage, stakeholders intending a working relationship are INDEPENDENT. Page 117 • WHAT HAS HAPPENED • WHY HAS THIS HAPPENED • WHAT ARE THE IMPLICATIONS FOR THE FUTURE As the relationship builds overtime and shared performance is achieved then a stage of MUTUAL INTERDEPENDENCE emerges. MANAGING DEPENDENCIES If this dynamic is secure, this state will hold for the desired future. However if the conditions which surround the relationship change, it is feasible that the state of MUTUAL INTERDEPENDENCE moves to TOTAL DEPENDENCE UPON ONE STAKEHOLDER FROM THE OTHER. APPLICATION SKILLS DISCUSSION • Can you now propose relationship management scenarios where this phenomenon has occurred ? • What are the implications for managing relationship management ? • What are the implications for leading stakeholder relationships ?Page 118 • Management Control • Level of Involvement • The Shifting of the Power Base • Impact Upon Business Futures Now extend your discussion to the implications for : • Could you therefore posture a conclusion for managing dependencies to receive relationship capital gains. • Is there a direct causal relationship between relationship capital and shareholder value ? Now be prepared to present your ideas for open discussion.Page 119 For Mutual Interdependencies to prevail, these will be dependant upon meaningful, relevant, actionable shared value propositions which will form the basis of a trust bond for relationship continuance. • For a selected organisation, complete the matrix from group discussions as a basis for the analysis of mutual interdependencies between an organisation and key specified stakeholders. NOTE : The need is for business cohesion to achieve targeted performance RELATIONSHIP MANAGEMENT AND VALUE PROPOSITIONS FOCUS GROUP DISCUSSION How can a two-way exchange of Value Propositions be achieved ? Organisation Based Value Propositions for Stakeholders Specified Stakeholder Propositions for the Organisation  Customer Relationship Management  Employee Relationship Management  Supplier Relationship Management • _______________ • _______________ • _______________ • _______________ • _______________ • _______________ • _______________ • _______________ • _______________ • _______________ • _______________ • _______________ Key Business Stakeholder Relationships CRM ERM SRMPage 120 • How would you propose to track the sustainable relevance of these value proposition between organisations and key stakeholder groups ? • For your selected organisation using the three domains of CRM, ERM and SRM, state where the trust bond may be challenged and then consider the consequences which may arise. • What are the implications now for Leadership, Strategy and Value, the pillars of the DBA programme ?Page 121 Porters Generic Value Chain, Figure 5 below is a well-known model designed to show how financial value is created to produce a margin which in turn contributes to shareholder value. VALUE CHAIN BASED RELATIONSHIPS PORTER’S VALUE CHAIN -- A GENERIC APPROACH SUPPORT ACTIVITIES PRIMARY ACTIVITIES Infrastructure of the firm Human resource management Technology development Procurement In bound logistics Operations Outbound logistics Marketing and sales Service margin margin 1. How is value created ? 2. How is the value captured ? 3. Where are the key value-based dependencies ? SEARCHING QUESTIONS Figure 5How can these Value Chain Based Relationships create Competitive Advantage ? INFRASTRUCTURE RESEARCH, DEVELOPMENT, DESIGN HUMAN RESOURCE DEVELOPMENT SUPPORT ACTIVITIES PRIMARY ACTIVITIES PURCHASING, INVENTORY HOLDING, MATERIAL HANDLING PRODUCTION WAREHOUSING & DISTRIBUTION SALES & MARKETING DEALER SUPPORT & CUSTOMER SERVICE Market leading corporate reputation. MIS that supports innovation and responsiveness to customer needs through close internal coordination, customer centric culture Quality and reliability of components and material Just in time Inventory Systems Preferred Supply Chain Relationships Fast manufacturing, Defect-free manufacturing. Ability to produce to customer specification Partnership with key customers. Fast delivery. Efficient order processing. Sufficient inventories to meet unexpected orders. Key account management. Iconic Advertising that enhances brand reputation. Effective sales force. Superior Quality sales literature & support Database ICT linkages with Customers Unique product features. Fast new product development. Design for reliability / serviceability. Training that supports the channel. Total commitment to customer service Training for customers. Fast, reliable repairs. Availability of spare parts. Training for dealers. Customer credit terms v . v . v . Consider Figure 6 below. Figure 6 Page 122Page 123 1. From a relationship management perspective, what is missing ? 2. From where could value creation ambitions become eroded and value capture potential be reduced ? 3. Can we move beyond the Generic Value Chain to create new frameworks for Organisational Transformation ? SEARCHING QUESTIONS FOR PORTERS GENERIC VALUE CHAINIntegration of Value Chain Synergies among Key Stakeholder Groups CRM Customer Relationship Management ERM Employee Relationship Management SCM Supply Chain Management Supplier Value Chain Organisational Value Chain Customer Value Chain Employee Value Chain Competitor’s Value Chain Figure 7 SCM CRM ERM CRM Page 124Page 125 1. What are the key causes of disintegration ? 2. What are the key messages derived from Figure 7 for Organisational Transformation Intentions ? 3. How should Value Chain Synergies be strategised for Value Creation and Value for Capture ? 4. What insights does the Value Chain concept provide for top management ? SEARCHING QUESTIONS Moving forward, to achieve organisation transformation relationship synergies, it is important to determine the critical success factors attached to CRM, ERM and SRM. Examples of these now follow : -Page 126 1. Measurable Business Ambitions For CRM 2. Business Operations and IT Operations Alignment 3. Executive Leadership and Buy-in 4. The Business Objectives Arise CRM Functionality, eg. Profit, Customer Value, Security Systems Performance, Cost Reduction 5. Minimise Customisation 6. Trained Experience Consultants 7. Involve The System Users in the CRM Solution Design 8. Invest in Training for User Empowerment 9. Use A Phased Roll-Out 10. Track, Monitor and Measure Performance CRM SYSTEMS CRITICAL SUCCESS FACTORS • Revenue Growth • Customer Satisfaction Increase • Increase in Employee Productivity TANGIBLE OUTCOMES Adapted from Oracle Siebal CRM SolutionsPage 127 1. Top Management Commitment 2. Design an Effective SCM Strategy 3. Devote Resources to the Supply Chain 4. Logistics Synchronisation 5. IT as the Backbone 6. Information Sharing with Supply Chain Measures 7. Demand Forecasts at the Point of Purchase 8. Trust Development with Supply Chain Partner 9. Just In Time Capability & Production Flexibility 10. Reliable Suppliers as “Partners” in Business 11. Leverage Core Strengths with Suppliers 12. Long Term Vision for Sustainability SUPPLY CHAIN MANAGEMENT CRITICAL SUCCESS FACTORS Adapted from 11MB Management Review June 2015 Kumar R, Singh R K, Shankar RPage 128 EMPLOYEE RELATIONSHIP MANAGEMENT CRITICAL SUCCESS FACTORS FOCUS GROUP DISCUSSION Here is the Missing Link between CRM and SCM Systems. What therefore are your views upon the 10 Critical Success Factors that will achieve the Operating Human Capital Bonds the organisation needs between CRM and SCM Systems ? 1. What key insights does the Value Chain concept provide for managing organisations during transformation ? FURTHER CRITICAL QUESTIONS 2. How can Competitive Differentiation be realistically measured and managed through a Value Chain concept.Page 129 When planning Organisational Transformation from a relationship management perspective, a simple but effective analysis tool could be applied for addressing the needs of stakeholder groups. STAKEHOLDER GROUPS AND RELATIONSHIP MANAGEMENT Step 1. Identify All Stakeholders Step 2. Decide Key Influential Stakeholders Step 3. Map the relationship among these stakeholders A pragmatic Road Map approach should suffice for planning, ie. : - Step 4. Consider the impact of planned Organisational Transformation upon • Each stakeholder • Stakeholder Relationships And then consider this impact in terms of Future Opportunity Future Threats for Relationship Management.Page 130 Step 5. Now review the Opinion Leadership Forces key stakeholder groups exert on the organisation. Step 6. Develop and lead a Relationship Strategy based upon the Net Value provided by each stakeholder group. NOTE The above analysis may be based upon assumptions, these assumptions should be minimised so that the analysis is based upon verified hard facts. NOTE The step-by-step approach may be easy to lay out but be much more complex to implement. Mapping the influence and inter-relationships of key stakeholder groups is a wise move !Page 131 The dynamics of organisational transformation dislodge individuals and even teams to often create a situation of disequilibrium, uncertainty and even insecurity because the status quo has been destabilised. If this is known in advance then such impact can be minimised by building trust and confidence in the changes which are needed. THE IMPORTANCE OF TRUST The role of the leader here is to build, secure and retain trust bonds with all key stakeholder groups through open transparency with frequent planned communication. In a climate of suspicion or mistrust, change will be slow to occur, moreover it will not be internalised. The value of organisational transformation has to be ‘felt’, this can only be based upon trust and a shared vision for the future. Barriers to trust will emerge, eg. sense of loss, individual self-interest, lack of team spirit, poor organisational cohesion, lack of connection with the benefits to be gained . . . and so on. Therefore secure leadership is needed, with position power, to orchestrate the needed change as well as to build the levels of commitment required. It is important to remember that trust is a most sensitive emotion, it takes time to build and only moments to lose.Page 132 1. Where within the dynamics of Organisational Transformation are trust bonds most fragile ? FOCUS GROUP DISCUSSION 2. How can your discoveries be managed to achieve the support needed to achieve change ? 3. Modify the conceptual model for Trust Bonding (Figure 8).Page 133 UNCERTAINTY ENGAGEMENT CONFIDENCE ASPIRED TRUST SECURED TRUST INDEPENDENCE INTERDEPENDENCE IDENTITY TIME RATIONAL HARD FACTORS EMOTIONAL SOFT FACTORS ALIGNMENT LOYALTY BONDING Figure 8 AN INITIAL CONCEPTUAL MODEL : TRUST BONDS FOR ORGANISATIONAL TRANSFORMATIONPage 134 If critical factors of failure can be anticipated, then these may become critical factors for success if these are wellplanned for and managed accordingly. CRITICAL FACTORS FOR RELATIONSHIP MANAGEMENT FAILURE IN ORGANISATIONAL TRANSFORMATION 1. Consider one of the following scenarios and then agree where the potential for failure may exist. FOCUS GROUP DISCUSSION Scenario  The Khazanah plans for Malaysian Airlines Organisation Transformation (see DBA Module Case Portfolio). Scenario  As a new start-up entrepreneur with a great business idea intent upon career transformation from employee to self-employed. This now presents an ‘emotionally charged’ commercial opportunity involving a significant personal financial investment. The verbal support of friends & colleagues has been secured ; the family has encouraged this career change. Scenario  In your local context a known merger or acquisition in the early stages of organisational transformation. 2. Agree where the priorities reside to avoid failure and how a failure prevention strategy can be crafted. 3. How and where do you agree that ‘ the importance of service ’ will fit into your chosen scenario to build the organisational energy required for moving forward with confidence .Page 135 TEAMS, TEAM WORKING AND ORGANISATIONAL COHESION FOR TRANSFORMATION • Why have organisations adopted team working ? • How effective are these teams ? • Do teams have a positive effect upon organisational performance ? BUT There are important questions for reflecting but furthermore : - To achieve Organisational Transformation, the impact of teams and team working to achieve cohesive change cannot go unmentioned. It would be few organisations that would not adopt some form of team working among employees, some directed others self-managed or formally designated. • Do you believe that teams and team working have simply evolved or have been created as a deliberate management strategy to improve work output ? • How do team dynamics work ? • Are teams in themselves part of a formula for Organisational Transformation ? • Is there an important link between team working and the sharing of organisational knowledge ? • Do teams modify the organisational culture ?Page 136 • The team members which makes up the group • Collective Responsibility • Group Cohesion • Information communication • Willingness • Acceptance of task responsibilities within the team • Mutual support, to give and receive For teams to work effectively, there are recognised team competencies required. Awareness of these competencies may help when planning new teams within the organisation tasked with a transformation agenda. 1. NORMATIVE • The knowledge base • Collective wisdom • Problem solving abilities • An intention for improving upon the status quo • Capacity for learning • Balancing team based responsibilities with normal job scope and routines 2. TECHNICAL • Open information exchange • Decision Making Processes based upon collective judgement • Leadership • Team Motivation and Motivation • Coordination and Conviviality • Routes and Rituals • Reporting Line for Results 3. GOVERNANCEPage 137 • The Specialist • The Resource person who can network outside the team • Dependable to complete the task and implement • The Source of credible ideas • The Problem Solver • The Coordinator • The Strategic Thinker • Conscientious LEADING TEAMS To observe the roles and behaviour within the team is an important skillset, therefore who is If these is achieved then teams become knowledge based units for performance not just groups of people who are assigned a specific task !! As a team leader, it is important to recognise that teams develop more time before they conform to perform during the time the team is together. These roles may be combined in individuals or be distinct qualities of team members. As a team leader, these are to be recognised and managed to achieve best outcomes. In addition behaviour in teams must be observed with care for effective leadership. Attention to : - • Task based behaviour and processes • Group maintenance behaviour and interaction • Self-orientation by group members to establish position power . . . all are important.Page 138 1. The need for structure and clear roles to be established related to the tasks in hand and terms of reference. In your role as a leader, the team needs an ‘identity’ for recognition and emotional attachment from the outset. Leaders must also recognise how team cohesiveness is achieved. Cohesiveness (or lack of cohesiveness) will emerge overtime, the leader must be observant and cognisant at all times so that the leadership style can be adjusted to retain effective control of the team until they are fully experienced to take responsibility. 2. The source(s) of knowledge -- who in the team has the information, skills, expertise, experience. 3. The emotional bond between team members and acceptance among all for each of the team members [this can be a major challenge ]. 4. The source of influence, alliances and potential conflict. 5. Jockeying for position power. The leadership role in teams tasked with organisational transformation may move from a more traditional group leadership approach to more enlightened approach as the team gains confidence and begins to show results. Then the leadership role may become more facilitative.Page 139 As a leader, attention should be given to the gender mix of the group as this may have an impact upon team performance. • All Female • All Male • Mixed Gender FOCUS GROUP From your experience, how do you consider the performance outputs of teams that are : DISCUSSION What therefore are conclusions from this discussion ? And now, the leader must be aware of the cross-cultural overlays which may have a part to play in team working, team cohesiveness and team productivity, some of these for example : - Power Distance - The respects for status, hierarchy, conformity, resistant attitude towards autonomy & responsibility Collectivism and Individualism - Group Interest V Individual Self Interest Determination ‘V’ Free Will - The future is pre-determined V the future is self-determined “ Doing ” ‘V’ Being Orientated - Accomplishment through working hard V work avoidance in preference for social needs As a leader, it is vital to realise all of the above dynamics because all teams are not created equal.OT 13 DBA REFLECTIVE WORKSHOP FOR EMPLOYABILITY AND LEADERSHIP SKILLS Page 140Page 141 At the end of this module, as a group, you are required to reflect upon the learning achieved which may in turn influence employability & leadership skills. Therefore consider the following when making a Reflective Assessment. • Insights gained • Value of these Insights • Application Potential • The Challenges of Introducing the Learning Acquired into the Workplace • Where the Most Significant Impact can be created • Your Overall Assessment of the Contribution and the literature PREPARE FOR A ‘ROUND TABLE’ DISCUSSION IN WHICH YOU ALL WILL PARTICIPATE.OT 14 DBA ASSIGNMENT GUIDANCE NOTES  INTRODUCTION  APPROACH  STYLE  DBA ASSESSMENT FOR EACH MODULE  CONFIDENTIALITY  LENGTH AND FORMAT FOR SUBMISSIONS  USE OF LITERATURE PROTOCOLS  PLAGIARISM AND COLLUSION  GENERAL ASSESSMENT CRITERIA  ASSESSMENT PROCEDURES FOR ASSIGNMENTS Page 142INTRODUCTION These notes are intended as a set of simple guidelines for course members who are aiming to complete the DBA through a series of progressive stages, each of which has the requirement for type-written original assignments to be submitted for Stage 1. A separate document will be available for Stage 2 the completing of the DBA Dissertation. Page 143DBA ASSIGNMENT GUIDANCE -- CONTENTS 1. Approach 2. Style 3. The DBA Assessment Portfolio 4. Confidentiality 5. Length and Format for Submission 6. Format for Submission 7. Use of Literature and Online/Offline Sources 8. Plagiarism and Collusion 9. Assessment Criteria 10. Assessment Procedures Page 144Demonstrate application in context Provide an opportunity for insight learning Improve capacity for personal development by re-aligning individual patterns of thinking Broaden and deepen knowledge as well as managerial skills for value creation strategy and leadership Appreciate the potential for corporate pay-off Each assignment is designed to provide a connection between theory and practice to enable the writer to reflect upon how practice should be modified or even how theory can be developed to support practice. Remember that the best theories are grounded in best practice and best practice progressively modifies and also creates new theory. This organisational scenario will then be used to : - Produce a platform for potential DBA research Page 1452. STYLE Describe briefly the models, concepts and methodologies to be used as deemed appropriate. Basic ideas can be treated as assumed common knowledge. A well-structured style is required throughout. Managerial report format is appropriate, but should not be limited to bullet points alone. The style should : - Use the literature to connect the contributions made from relevant sources to your own thoughts. Discuss the potential application to your employing organisation, where possible, and where appropriate develop sound arguments. Produce a justified outcome or set of insights from the applications made for each component of the assessment module. Page 146An opportunity for each DBA Course Member at their current stage of managerial progression to make sound connection between the business environment by using frameworks for thinking delivered in each subject module. IT IS Have an Introduction to the company, the industry and the market place In general, a good assignment will : - Involve each individual student through the submission of independent views, from the various perspectives taken Have supportive appendices about the company, industry, market information and data relevant to the question being attempted Use third party sources to form an evaluation and set of opinions Page 1473. THE DBA ASSESSMENT PORTFOLIO FOR EACH MODULE Each taught module has 3 components for assessment. 1. The Company Report This is a consultancy report for a selected organisation directed for board level attention based upon applied core models and methodologies which have been delivered and discussed during the module. 2. The Evidence Review This part of the assessment portfolio requires a critical review of the literature and other contemporary evidence directly related to the body of theory which has been applied in the company report. It is the supporting evidence which will relate to the themes of value strategy and leadership. Harvard Academic Referencing Protocols will be expected throughout this evidence review, for which an independent document will be provided to each students as a guide. Page 1483. Reflection Upon Practice / Application This is an employability skills review which is intended to highlight the learning which has been achieved during the learning cycle of each module. Through this process, progress can be logged and competency needs highlighted on a progressive basis. These reflection reports will be summarised at the end of Stage Two so that personal skillset acquisition and residual needs can be captured. Employability Skills and Leadership Development should be the main focus of this part of the assessment. 4. CONFIDENTIALITY All assignments will be treated as confidential as a matter of policy and will not be released to third parties. Any release must be supported by written approval of the author. This is a code of conduct strictly adhered to, to enable course members to maximise the benefits of submitting course assignments through an applied learning approach. Page 1495. LENGTH AND FORMAT FOR SUBMISSION Course assignments are intended to be 6000 words, allocated to these components : - 1. The Company Consultancy Report 2. The Evidence Review 3. The Employability Skills Reflection Report The coversheet as well as words in tables/charts/diagrams and the appendices are NOT included in the word count. Part of the assessment process is designed for students to be able to assemble and present their work within a word constraint, even though they may be tempted to continue writing out of pure enthusiasm ! Page 1506. FORMAT FOR SUBMISSION Submission is on-line, using the ‘turn it in’ system. Document Page Margins : Top 2cm, Bottom 2cm, Left 3cm, Right 2cm All other layout aspects, such as headings, are up to the student to implement as desired. Header/Footer : Top 1cm, Bottom 1cm Wordcount : 6000 words Text Blocks Font : Times, Times New Roman, or similar Serif font Font size : 12 pt Line spacing : 1.5 The following format is suggested : - Page 1517. USE OF LITERATURE AND ONLINE/OFFLINE SOURCES Correct protocols for academic referencing must be applied to conform with established international standards. Each student is required to adopt the Harvard System, the explanation for which is available on the student portal as well as in supplementary course notes. Students who fail to acknowledge the contribution of third parties and/or sources of information commit plagiarism. This is a very serious offence. 8. PLAGIARISM AND COLLUSION Students who are in any doubt about how to handle certain materials are asked to seek the guidance of the Course Director or his appointed nominee. Notes on Plagiarism will appear on each module assignment. Page 1529. GENERAL ASSESSMENT CRITERIA The assessment criteria applied will depend upon the type of assignment being set, but in general for written assignments, the following criteria will provide a guide : - 1. Research and Analysis • Introduction 2. Academic Sources Applied 3. Linking Theory to Practice 4. The Quality of Written Conventions • Concise content • Effective Coverage of the subject • A Structured sequential flow • Clear Outcomes & Conclusions 5. Protocols for academic referencing 6. Supporting Appendices Page 153The Module Tutor and Module Markers 7. The word count to be within limits prescribed 8. Copies of assignments and marks are kept at each campus office and are aggregated for each examination board. The Director of the DBA London School of Commerce The External Examiner The final Examination Board 9. The process of achieving DBA STAGE ONE will pass through a process of assessment by : - 10. Each DBA taught module will be assessed using a series of assessment criteria within a template referred to as “ The Assessment Matrix ”. (See OT 3) Page 15410. ASSESSMENT PROCEDURES The process of assessment is as follows : - 1. Assignments are to be submitted by the set deadline, late submissions will not be allowed, no request for extension will be entertained. Assignments handed in late will not be accepted. 2. Assignments are marked and the assessment grade is returned to the course member in after an examination board has confirmed the marks awarded. 3. The Course Director will monitor tutor grading of assessed work. 4. Any marks released before an examination board will be treated as provisional because they must be subjected to moderation at the London School of Commerce and also by the Final University Examination Board. Page 155OT 15 EXTENDED BIBLIOGRAPHY Page 156 • Brue, G. (2015), Making Six Sigma for Managers, 2nd Edition, McGraw-Hill. 9780071838634. • CIPD (2004), Managing the Psychological Contract, December, London : CIPD. • Cooper, C. (1998) Editorial : ‘ The Changing Psychological Contract at Work, Work & Stress, 12(2), pp 97-100. • Donaldson, T., and Preston, L. E. (1995), ‘ The Stakeholder Theory of the Corporation : Concepts, Evidence and Implications ’, Academy of Management Review 20 (1), 65-91. • Belbin, B. (1998a), Recipes for Organisational Effectiveness : mad, bad, or just dangerous to know. Career Development International, 3(3), 100-6. • Burnes, B. and New, S. (1997), Collaboration in Customer-Supplier Relationships : Strategic Operations and the Function of Rhetoric. International Journal of Purchasing and Materials Management, 33(4), 10-17. • Burnes, B. (2003), Managing Change and Changing Managers : from ABC to XYZ. Journal of Management Development, 22(7), 627-42. • Gilmour, D. and Radford, A. (2007), ‘ Using Organization Development to Enhance Shareholder Value : delivering business results in BP Castrol Marine, Organization Development Journal, 25(3), pp 97-102. • Hamel, G. and Prahalad, C. K. (2002), ‘ Competing for the Future ’ in Henry, J. and Mayle, D. (2002), ‘ Managing Innovation and Change, London : Sage, 23-35.Page 157 • Van Dooren, W., Bockart, G., Halligan, J. (2015), Performance Management in the Public Sector, 2nd Edition, Routledge. 7790415738101. • Hope, J., Player, S. (2012), Beyond Performance Management, Harvard Business Press Books. • Hofstede, G. (1993), ‘ Cultural Constraints in Management Theories ’, Academy of Management Executive, February, pp 81-94. • Prahalad, CK and Hamel, G. (1990), The Core Competence of the Corporation, Harvard Business Review, May/June, 71-91. • Mintzberg, H. (1987), Crafting Strategy, Harvard Business Review, 19(2), 66-75. • Mintzberg, H (2007), Tracking Strategies : Toward a General Theory, Oxford University Press : Oxford. • Senge, P. M. (2006), The Fifth Discipline : The Art and Practice of the Learning Organization, 2nd Edition, New York : Random House Books. This is a classic introduction to organizational learning and the learning organization. • Schein, EH. (1989), Organizational Culture : What It Is and How To Change It. In P Evans, T Doz and A Laurent (eds) : Human Resource Management in International Firms, Macmillan : London. • Schein, EH. (2009), The Corporate Culture Survival Guide. 2nd Edition, San Francisco, CA : Jossey-Bass. A Practical Account of Edgar Schein’s influential standpoint on diagnosing and changing culture.