CHAPTER 8: DESIGNING AND DEVELOPING STRUCTURE/PROCESS INTERVENTIONS

KEY POINTS

® The HPI practitioner should always start by conducting a gap analysis to determine the current level of organizational performance compared against the desired level of performance.
® Examples of organizational systems include management systems, HR systems, financial systems, political systems, and social systems.
® Process-level interventions can have the most immediate effect on the performance of an organization or job performer
® Four basic components - (1) inputs, (2) process controls, (3) outputs, and (4) resources – comprise a process
® A good job performer when pitted against a bad system or process will fail every time.
ORGANIZATION/STRUCTURAL INTERVENTIONS
· The org structure establishes the operating parameters of the organization and its personnel
· Determine the overall effectiveness and efficiency of an organization:
o Degree of controls
o Hierarchy model
o Standardization of process
· Start by conducting a gap analysis
o Determine the current level of organizational performance
o Focus should involve assessing the overall organizational culture, politics, and business goals
o Solid baseline of current performance levels should be developed
· Examples of Org-level interventions:
o Work redesign
o Reengineering
o Change management
o System engineering
o Job design or redesign
o OD activities
§ Team building
§ Participative management
SYSTEM-LEVEL INTERVENTIONS
· Examples:
o Management Systems
o HR Systems
o Financial Systems
o Political Systems
o Social Systems
· ISO standard is based on 8 core principles:
1. Customer-focused organization
2. Leadership
3. Involvement of people
4. Process approach
5. System approach to management
6. Continuous improvement
7. Factual approach to decision making
8. Mutually beneficial supplier relationships
· A system has definitive outputs
· System outputs are at a higher org level
PROCESS-LEVEL INTERVENTIONS
· Can have the most immediate effect on the performance of an org, dept, or job performer
· Begins with a process-level gap analysis
o Identifies the component or components of a process that need attention
o Provides you with the critical baseline data needed to gauge the return-on-investment of the interventions applied by the HPI practitioner
· Building Blocks for a Process
o Process Inputs: all the individual items that are required to perform the process; typically consumable and are used up in the process.
§ Materials
§ Data
§ Components
§ Information
o Process Controls: the information and physical controls that have been developed for the process
§ Drawings
§ Specifications
§ Procedures
§ Education/training
§ Performer experience
§ Data
§ Competitors
§ Information
o Process Outputs: can be both intended and unintended; defined by determining the desired result of a process
§ Completed purchase orders
§ Finished product
§ Shipped product
§ Received product
§ Paid employees
o Process Resources: the equipment, systems, and human resources required to perform the process
§ Heating , water and electrical systems
§ Physical plant
§ Equipment and machinery
§ Personnel
· Each process can be an input or control for another process or processes
· Helps to understand the potential effects of a process intervention on other process in the performance system
· Can also include:
o Suppliers (front-end)
o Customers (back-end)
· Examples of specific process-level interventions:
o Problem-solving or process improvement models
§ Systematic
§ Focus on a problem
§ Identify root causes
§ Develop and implement solutions and action plans
o Flowcharts
§ Graphic tools for documenting and understanding the flow or sequence of events in a process
o Process control systems
§ Data used as feedback on how a process is performing
· Statistical process control
o Collection, organization and reporting of data and information
§ Develop methods and systems for assembling and reporting
Text Box: “PLAN, DO, CHECK, ACT” MODEL1.    Plan: •    determine the process that needs to be addressed•    determine the improvement opportunity•    analyze and document current process components•    determine and document possible causes of problem•    get agreement on the root cause•    develop cost-effective and implement solutions, action plans, and targets for improvement2.    Do:•    Implement solutions, action plans, and process changes3.    Check:•    Track results•    Analyze results•    Evaluate results4.    Act:•    Reflect and act on lessons learned
Text Box: “PLAN, DO, CHECK, ACT” MODEL1. Plan: • determine the process that needs to be addressed• determine the improvement opportunity• analyze and document current process components• determine and document possible causes of problem• get agreement on the root cause• develop cost-effective and implement solutions, action plans, and targets for improvement2. Do:• Implement solutions, action plans, and process changes3. Check:• Track results• Analyze results• Evaluate results4. Act:• Reflect and act on lessons learned

o Gap Analysis
§ Identifies missing process elements of undocumented procedures
JOB PERFORMER LEVEL INTERVENTIONS
· A good job performer when pitted against bad systems or processes will fail every time
· Process or system overrides the job performer’s actions every time
· Components that affect a job performer’s ability to achieve the desired outcome of a process:
o TIME: the performance clock’s frame; the factors that represent the cultural environment and the relationship of work, worker, and workplace; must be aligned properly to support the performance system.
§ Training: the goal is to provide workers with the knowledge, skills, and abilities to perform their work
§ Incentives and Motivation: the intrinsic and extrinsic factors that affect a person’s will to perform
§ Environment: the extrinsic environmental factors that affect a person’s work and working environment
· Questions to ask:
o Do the workers have the right training?
o Are sufficient incentives to perform present?
o Do the workers have the motivation to perform?
o Is the work environment supporting them?
o Is there a shared commitment and vision that align the work, the worker, and the workplace?