5 Pilares-Jharr

JAMES HARRINGTON
LOS CINCO PILARES DE LA EXCELENCIA ORGANIZACIONAL

2007
Harrington Institute
The Five Pillars Organizational Excellence

Dr. H. James Harrington
CEO, Harrington Institute San Jose , Cal. USA
007, Harrington itute, Inc.
2007
2007, Harrington Institute, Inc.
2007
Organizational Excellence (OE) is the process of building an organization that EXCELS!
2007
The Pillars of Organizational Excellence
Value to all Stake Holders
Performance Excellence
Structured, Innovative Management

14th Oct 2003 - Dubai 2007 Harrington Institute
7, Harrington Institute,
2007
7, Harrington te, Inc.
2007
2007
Process Management
Element I
7, Harrington ute, Inc.
2007
Two Approaches of Process Management

Micro-level Approach Macro-level Approach
7, Harrington ute, Inc.
2007
Micro-level Approach
Continuous Improvement Ten to fifteen percent per year Area Activity Analysis
2007
Macro-level Approach Fine Methodology
The
Phase I. Define the process. Phase II. Confine the process. Phase III. Refine the process.
2007
Process Management
Typical Tools/Approaches Process Qualification Process Controls Problem Solving Six Sigma Continuous Flow Business Process Imp. Inspection and Test ISO 9000/14000 Information Systems Active Based Costing
2007
2007
Element II
Project Management
2007
Project Management
Processes define how we operate. Projects are the way we improve processes.
2007
Typical Projects
TQM Process Redesign New Information Technology Market Analysis Alliance Partnership Customer Future Needs Analysis Six Sigma
2007
Why do 35 to 65% of the TQM projects fail?

Costs more than planned Missed schedule Poor quality Risks were not managed Rejected by the target users
2007
Project & Program Issues/Solutions

Only 26% of Projects were successful (on-time/on-budget) 40% of all IT projects fail or are cancelled $75 billion spent by US firms on cancelled projects 26% of projects will cost 190% of their original estimate Over 60% of the projects do not produce the projected R.O.I.
Standish Group International, 2007, Harrington Chaos report 1999 2007 Harrington Institute
Institute, Inc.
Benchmarks
World class organizations complete nearly 90% of their projects within 10% of budget and time estimates. I.S. organizations that establish enterprise standards for project management, including a project office, cut their major project cost overruns, delays, and cancellations by 50%.
Gartner Group, 2007, Harrington August 2000 2007 Harrington Institute
Institute, Inc.
Ten Parts of Project Management

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Integration Management Scope Management Time Management Cost Management Quality Management Human Resource Management Communications Management Risk Management Procurement Management Organizational Change Management
2007
2007
Element III
Change Management
2007
More Projects fail due to lack of change management than anything else.
2007
Some 50% to 70% of reengineering attempts fail to deliver the intended dramatic results
Hammer & Champy 1993 page 217
2007
Change Management
Research confirms that as much as 60% of change initiatives and other projects fail as a direct result of a fundamental inability to manage their social implications.
Gartner Group
2007
The Magnitude of IT Driven Change

First-Order Magnitude Second-Order Magnitude Third-Order Magnitude
Tasks Affected
People Affected
Structure/Culture Affected
Culture
Technology
Structure Technology
People
Tasks
2007, Harrington Source: OHara, Watson & Kavan 2007 Harrington Institute Institute, Inc.
The Change Management System
Defining what will change. Defining how to change. Making the change happen.
2007
Get a Clear View of Where You Need To Go
2007
Defining How to Change
2007
Change is a Process
3. Implementation Architecture
Current State
Transition State
Future State
1. Motivation
2. Vision
Three Prerequisites for Change 2007, Harrington Institute, Inc.
2007
Clarifying the Vision: Purpose

What's in it for me?
Why is this change necessary? Why is it important to my organization?
2007
2007
Element IV
Knowledge Management
2007
Knowledge Management
When a person dies, a library is lost.
2007
Knowledge Workers
New hires require 2.5 months to be fully effective Knowledge management system will reduce it by 30% At a loaded cost of $200,000/yr that is $12,500 The cost to keep them current is going up 20% per year Fortune 500 Knowledge Deficit o1999 - $12 billion o2007 - $52 billion o1999 - cost to provide knowledge workers was $5000 each ( now it is $8,000 )
Knowledge Management May-Oct
2007
Knowledge Takes Two Forms
Tacit knowledge undocumented intangible factors embedded in individual experiences Explicit knowledge documented and quantified
2007
Knowledge Management System
Data Warehouse Analysis Information Analysis/ Warehouse Selection Inputs Inputs 2007, Harrington Institute, Inc.
Knowledge Warehouse
U S E R S
Outputs/Users
2007
K. M. Road Map
ACBF's Knowledge Management Road Map
Phase 0
Requirement Definitions Activities
Phase I
Infrastructure Evaluation Activities
Phase II
KM System Analysis Design & Development Activities 6. Benchmark Best of Class 7. Design KM Infrastructure 8. Audit Existing KM Assets and Systems 9. Design KM Team 10. Create the KM Blueprint
Phase III
Deployment
Phase IV
Evaluate and Improve
Activities 12. Deploy Using a Results-Driven Incremental Methodology 13. Manage Change Culture and Reward Structure
Activities 14. Evaluate Performance, Measure ROI and Continuously Improve
1. Prepare 3 Year 4. Analyze Existing KM Vision Infrastructure Statement 5. Align KM and 2. Develop KMS Business Strategy Specification 3. Prepare Project Plan
11. Develop the KM System
2007
Process based Knowledge Mapping Process Phase I Create the knowledge map. Phase II Analyze the map. Phase III Apply the map.
2007
2007
Resource Management (Assets Management)
Element V
2007
Resource Management People Materials Money Time Space
2007
Some of the things that need to be considered in resource management are:

Good Governance Staff Resources Product and Service Mix Suppliers and Alliance Partners Financial Status R&D
2007
Boards need to be watchdogs, not lapdogs.
2007
RESOURCE MANAGEMENT
Outsourcing Empowerment Training Activity Based Costing Just-in-time Acquisitions Skills Inventory Product Planning Strategic Planning
2007
Impact of Pushing/Pulling
2007
Organization Charts (Old and New Look)

Employees
Top Mgmt
First Level Management
Middle Management
Middle Management
First Level Management Employees
Top Mgmt
Upside-Down Organization Chat Hierarchical Organization Chart (New Look) (Old Look) 2007, Harrington
Institute, Inc.
2007
Preferred Organizational Model

RESOURCES F I R S T L E V E L M G T EXTERNAL CUSTOMERS 2007, Harrington Institute, Inc.
2007
T O P M G T
M I D D L E M G T
E M P L O Y E E S
The Three Purposes of Business Planning

Directions
Expectations
Actions
2007
Business Planning Elements and Timing

PURPOSE Direction 11 OUTPUTS Visions Mission Values Strategic focus Critical success factors Business Objectives Performance Goals Strategies Tactics Budgets Performance Plans TIME FRAME 10 - 20 years Open-ended Open-ended 5 years 3 years 5-10 years 1-5 years 1-5 years 1-3 years 1-3 years 3-12 months
2007
Expectations (measurements Actions
ORGANIZATIONAL ALIGNMENT
Strategy
Rewords Systems
Structure
People Practices
Processes & Capabilities
2007
If we are not customer-driven, our car wont be either.

Donald E. Petersen Fords past chairman
2007
Being good is good. Being the best is great!
2007
2007
Excellence
can be attained if you. Care more
than others think is wise.
Risk more
than others think is safe.
Dream more
than others think is practical.
Expect more
than others think is possible.
2007
Organization Excellence can be explained by focusing on any one of the five parts, but when all five become interrelated watch out! Great things happen. Profits, market share, morale, customer satisfaction, and stock prices soar.
2007
Have a quality day with a high degree of reliability

.
2007
Principles of Good Governance

(continued)
Board Activities
Meet without management being present. Evaluate their own performance. Audit Committee should meet at least 4 times per year. Be frugal on executive pay. Be decisive when plan CEO succession. Be quick to react to troubles.
2007
Best Versus Worst Governance Companies
Stock outperformed 2 to 1 Retained value
Best Worst
51.7 % -12.9 %
2007
In the post-Enron days, governance has become critical.

Sanjay Kumar, CEO Computer Associates
2007
Best Boards
3M Apria Healthcare Colgate Palmolive General Electric Home Depot Intel Johnson & Johnson Medtronic Pfizer 2007, Harrington 2007 Harrington Texas InstrumentsInstitute Institute, Inc.
Boards That Need Help

Apple Conseco Dillards Gap Kmart Qwest Tyson Foods Xerox AT&T Ford HP
2007
64
2007
Questions Issues Concerns
65
2007

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JAMES HARRINGTON

LOS CINCO PILARES DE LA EXCELENCIA ORGANIZACIONAL

The Five Pillars Organizational Excellence

007, Harrington itute, Inc.

2007, Harrington Institute, Inc.

Organizational Excellence (OE) is the process of building an organization that EXCELS!

2007, Harrington Institute, Inc.

The Pillars of Organizational Excellence

Value to all Stake Holders

Structured, Innovative Management

2007, Harrington Institute, Inc.

7, Harrington te, Inc.

2007, Harrington Institute, Inc.

7, Harrington ute, Inc.

Two Approaches of Process Management

7, Harrington ute, Inc.

2007, Harrington Institute, Inc.

Macro-level Approach Fine Methodology

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

Why do 35 to 65% of the TQM projects fail?

2007, Harrington Institute, Inc.

Project & Program Issues/Solutions

Ten Parts of Project Management

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

The Magnitude of IT Driven Change

The Change Management System

2007, Harrington Institute, Inc.

Get a Clear View of Where You Need To Go

2007, Harrington Institute, Inc.

Defining How to Change

2007, Harrington Institute, Inc.

Three Prerequisites for Change 2007, Harrington Institute, Inc.

Clarifying the Vision: Purpose

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

When a person dies, a library is lost.

2007, Harrington Institute, Inc.

Knowledge Takes Two Forms

Knowledge Management System

Activities 14. Evaluate Performance, Measure ROI and Continuously Improve

11. Develop the KM System

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

Resource Management (Assets Management)

2007, Harrington Institute, Inc.

Resource Management People Materials Money Time Space

2007, Harrington Institute, Inc.

Some of the things that need to be considered in resource management are:

Boards need to be watchdogs, not lapdogs.

2007, Harrington Institute, Inc.

2007, Harrington Institute, Inc.

Organization Charts (Old and New Look)