Actually, the HR Core Skills/Core Competencies for 0-2005 do just that; these critical capability-building skill areas are defined in the context of the business and HR's new role - the
Trang 1The newly defined Core Competencies of the HR Function fully integrate the skill areas
included in many previous definitions of the Organization Effectiveness, Organization
Development and Organization Excellence skill bundles For many years these were viewed as separate and distinct skills which some have found difficult to reconcile, define or codify
Actually, the HR Core Skills/Core Competencies for 0-2005 do just that; these critical
capability-building skill areas are defined in the context of the business and HR's new role - the 4-Quadrant Model - and are positioned in business units where they are used by HR practitioners with line leaders and their leadership teams to focus on building individual and organizational capability to enable delivery of business strategies
1 What is Organization Effectiveness
2 O.E and the 0-2005 Transformation
3 O.E and the HR Core Competencies
4 The O.E Toolbox
5 Resource Materials
This site is designed for those charged with/working to build individual and organizational capability to achieve results It includes tools and materials which may be useful to the practitioner If you are aware of other tools which you feel should be included, please let the site owner know under "Feedback"
One last comment about the manner in which OE is managed in P&G We practice OE by developing practitioners in the business, not by employing internal or external consultants which aren't a part of our line businesses HR focuses on developing its own expertise, and the expertise of line leaders, by
applications in doing the work and focusing on hard number results
Trang 24 Quadrant Model This diagram shows how the core competencies of HR integrate into the role of HR
Organization Effectiveness or "OE" is a term used to describe the philosophies, tools and the skills important for developing individuals and organizations capable of competing more effectively The current technology has evolved over time with a number of "schools of
thought" and became valued as important and useful in improving results It embraces working with teams and individuals to understand and improve the work as well as the social and interpersonal relationships and behaviors critical for ensuring that people and groups work together efficiently and effectively to achieve the objectives of the organization: the human side of the enterprise It also includes using group and organizational dynamics to design structures to aid in the achievement of objectives: the organizational side of the enterprise While there are many schools of thought and numerous approaches and techniques, the
Trang 3fundamental elements of OE technology are simple and common It's on those simple,
business-centered approaches that we want to focus
OE Defined
Earlier in its evolution, this same body of knowledge and practice was generally referred to as "OD" or
Organization Development, as it centered on developing people and organizations toward improving business numerics Later in P&G it became known as Organization Excellence This notion split it off from Human Resources (HR) processes focused on People Excellence the areas supporting traditional HR work:
Compensation, Employee Relations, Labor Relations, etc
There has long been a need to clarify and reconcile the concept and names of OE, since many practitioners recognize that there is no "one best" OE philosophy, and many professionals waste time debating which tools and approaches are best This distracts us as focus moves to process rather than the business Recognizing this debate,
HR has identified the various tools, skills and competencies needed to bring this important technology to bear favorably on our business and incorporated them into HR's Core Competencies Click on HR Core Competencies Website for more detail
Importance of OE
The stakes for practitioners of OE work are high, whether the professional is counseling leadership or
implementing and driving a change in support of leadership If the interventions are wrong focus is shifted, the business is disrupted, and people are distracted all costing time, money and a potential loss of competitiveness Costs we cannot well afford
There are historically five fundamental technology bundles and a few, simple, supporting tools foundational in all our OE work These include:
Organization Assessment and Design
Change Management and work re-design
Development of High Performing Teams/ Organizations
Development and Deployment of Business Direction
Consulting Leaders
(Click on the OE toolbox FOR EXAMPLES)
Where is OE Used
All OE work should be focused solely on improving operating results in the business This means reduced costs, reduced cycle time, improvements in productivity or increased creativity and innovation which improve our odds for success via products or systems improvements or enabling market competitiveness OE Technologies are applied to gain individual and organizational improvements in a strategic manner in MDOs, GBUs, GBS or in corporate functions by skilled practitioners assigned to each
Measuring OE Interventions
All OE interventions should answer the question "what problem if addressed will improve operating results?" Once this is identified, clear, numerical measures should be selected to evaluate the outcome of OE work in the context of improving the business For example P&G is reorganizing itself into MDOs, GBUs and GBS to ensure growth to $70B in NOS by 2005 So, OE work to make changes in an MDO, for example, should measure whether NOS is favorably impacted by making the change If they can't be clearly quantified, OE interventions should not be made All OE interventions should have a measure stated like: "Improve NOS from "x" to "y" by 6/30/00 from completing "z" project/change."
Trang 4P&G has decided, based on an analysis of its results, future trends, changing consumers, and
an ever changing global competitive environment, to re-invent or re-design itself OE tools and skills are a critical part of this work to ensure success This change will be accomplished
by a series of OE interventions successfully managed across time HR's role is at the center
of all of this, with every business team, in every business unit
OE in the new age 0-2005
Moving the organization into the digital age has opened tremendous opportunities for HR professionals involved
in making the changes needed to transform our businesses OE technologies are used to manage these changes involving such things as strategy development, organization re-design, transition management and downsizing or upsizing to name a few
Tools for Making Change
In P&G's O-2005 change effort, HR practitioners will apply the basic elements of OE outlined in the HR Core Competencies to varied degrees in most every HR assignment For example, those working in business units like MDOs and GBUs will use tools focused on team effectiveness, strategy development and managing cultural changes centered on aligning people with strategies to improve speed and competitiveness Practitioners o
in roles in the Administration Expert and Employee Champion components of the HR role, like GBS or the Core Functions, may use OE technologies to improve work processes and systems to reduce complexity and costs; thus streamlining cycle time to enhance company competitiveness
OE and HR Core Competencies
Re-balancing the role of HR for 0-2005 using the 4 Quadrant role model has placed emphasis on the few core skills critical for supporting the delivery of hard number results in business units Each competency incorporates
OE technologies in an action oriented, user friendly way to enhance personal and organizational growth to improve contributions
perating
OE has long been a separate skill area with little structure in P&G; yet we have had world class practitioners with pockets of excellence all over the Company Given the changes
needed for competing in the new world of 0-2005, HR has successfully integrated the key
OE technologies into the core work of business units for delivering P&G's business
strategies.
New World HR Competencies
The creation of these new "core" skill bundles integrates all of the "old"/traditional elements included in OE/OD
and Organization Excellence Click on HR Core Competencies.
How OE is Used in Each Competency
OE in Understanding the Business
OE skills are at the heart of this core competency HR professionals must assist in the Development, Deployment, Review and Renewal of Business Strategies and have the organizational skills needed for focusing and aligning people and organizations with these strategies to improve operating results
Trang 5OE in Driving Change and Managing Transformation
This competency incorporates planning, managing and measuring change efforts designed and initiated to close the "gaps" between where the organization is and where it needs to be to deliver business strategies It includes expertise in Organization Assessment, Organization Design and Change Management
OE in Creating and Managing Culture
This competency includes skills needed to create the "culture" to achieve Business Strategies This includes designing organizations, redesigning work processes and systems, creating structures, information,
communication and decision making systems, the development and deployment of people, and the creation of reward and recognition systems to support achieving the business strategies
OE in the Management of HR Practices/Delivering HR Basics
This competency area focuses on providing employee support and the systems and processes involved in day-to-day operations of traditional HR programs, without disruption or distraction to operations It also includes developing High Performing Work Systems and effective management of costs OE tools/skills are used to link HR's work to the business and in managing constant change and improvement
OE in Creating Personal Credibility and Influence
This core skill is fundamental to HR's ability to successfully select and manage organizational interventions with leaders, their leadership teams, and their organizations HR's impact and influence its very ability to lead comes from the personal credibility of its practitioners to contribute successfully in these roles by favorably impacting hard number results via OE tools
To ensure we have resources with the skills needed to create the necessary "fit" between our culture and our strategies, practitioners must be developed in the application of the Core Competencies of HR through training, networking, and actual work experience Applying these competencies holistically ensures the ability to develop capabilities needed for
individuals and organizations to favorably impact hard number results The process for
developing people is managed through the Leadership Learning and Development unit of the core HR Function and directly by practitioners in the Business Units In addition to creating Development Systems to operationalize these skill areas, HR has organized a network of global practitioners and "Mastery" level experts to ensure constancy of purpose and continual improvement This supports the stated mission of HR; Creating the Individual and
Organizational Capabilities needed to achieve Business Results Both the Development
System and the HR Network of Practitioners will ultimately link to the R&D for HR
component in the Core Function of HR, and to practitioners in line business units
OE Tools for Organization Assessment and Design
These are overarching organizational models which guide practitioners in thinking about all aspects of a change, and the interventions to organize and manage each aspect holistically They involve steps or questions helpful in moving to action once the problem or opportunity statement for the change is developed Click here for
examples
Trang 6OE Tools for Managing Change and Redesigning Work
These tools are used to understand and manage the human side of change: the enrollment and empowerment of the organization Other tools focus on helping the practitioner develop and manage a comprehensive transition plan centered on moving a change effort forward Click here for examples
OE Tools for Developing High Performing Teams and Organizations
Understanding personal and organizational interdependencies and behaviors, and the skills needed to enroll, empower and focus people and groups to work together cross functionally to achieve objectives, is a critical competency Also included is information on developing High Performing Organizations (HPO) Click here for examples
OE Tools for Developing and Deploying Business Direction
Numerous tools are available for direction setting These include development of a long term vision statements, and shorter term mission statements which focus on defining the unique contributions of organizations in moving toward the overall vision of a larger unit
Also included are the two basic types of principles involved in OE work: Operating Principles which guide human/organizational interaction in the context of mission and vision achievement, and Design Principles which guide the design of organizations; allowing choices to be made between design options to ensure "fit" toward strategy, mission and vision achievement
Strategy Development, Deployment, review and renewal is also a critical aspect of the role of HR practitioners in line units Click here for examples of each of these tools
OE Tools for Consulting Leaders
TQ tools have long enhanced business performance These tools enable leaders to drive a data based, analytical, problem solving approach with continual improvement Click here for tools useful in consulting leaders
FROM THE GROUND UP
by Edward Lawler, University of Southern California / Center for Effective Organizations
Introduction: The New Realities of Business Competition
• Why is business competition so different today? Four major changes in the business environment:
(1) A boundaryless economy and the globalization of business have brought new competitors with
both new and different management styles and powerful competitive advantages into many markets;
(2) Worldwide labor markets Because work forces in different countries have different skills and
wages, organizations can now draw on a wider variety of workers and working conditions; (3)
Instantly linked information and communication, enabling organizations to be designed and managed
in dramatically different ways; and (4) Agile new companies, who've adopted new organizational
approaches and reached to higher levels of performance
• The way organizations need to be: Focused on new organizational capabilities In order to be successful, organizations must have capabilities that allow them to coordinate and focus behavior in ways that are tuned to the marketplace and produce high levels of performance ways that
differentiate them from their competitors Every organization must understand what capabilities it
Trang 7needs to compete in its market and then develop them by creating the appropriate organizational designs and management systems
• A time for change: Creating order out of chaos One of the reasons that the traditional command-and-control approach has been so effective in the past and so hard to change in the present is
precisely that its elements reinforce each other Leaders, for example, are trained and selected to behave in a hierarchical manner Status symbols reinforce their authority, pay plans reward them for moving up hierarchies, and staff support and information flows allow them to coordinate and make decisions more effectively than anyone else Movement away from this model requires not just a change in their behavior but a change in the whole logic of how the organization is designed,
managed, and structured
Chapter 1: Changing the Assumptions The New Logic Principles for Organizing
• Old Logic Principle: Organization is a secondary source of competitive advantage
New Logic Principle: Organization can be the ultimate competitive advantage
Explanation: The new logic begins with the assumption that management systems, processes, and structures can be the keys to building a competitive advantage if they allow an organization to perform in a way that competitors cannot This contrasts with the traditional bureaucratic model in which the sources of competitive advantage are assumed to include superior financial, human, and natural resources, market access, technology
• Old Logic Principle: Bureaucracy is the most effective source of control
New Logic Principle: Involvement is the most effective source of control
Explanation: The traditional logic (Theory X) argues that control can best be obtained through extrinsic rewards, close supervision, hierarchy, and careful delineation of responsibilities and
accountabilities The new logic calls for replacing bureaucratic controls with the following four components of effective employee involvement: (1) Information about business strategy, processes, quality, customer feedback, events, and business results; (2) Knowledge of the work, the business, and the total work system; (3) Power to act and make decisions about the work in all of its aspects; and (4) Rewards tied to business results, individual growth, capability, and contribution When these four elements are appropriately positioned, involvement can be an effective source of control and organized action
This does not mean that those at the top have any less knowledge, information, power, and rewards;
it does mean that the organization becomes flatter (i.e., fewer levels) and that the information, power, knowledge, and rewards that were in the middle of the organization are pushed down so that they are spread throughout the organization This is what makes effective decision-making and involvement possible at lower levels in an organization
• Old Logic Principle: Top management and technical experts should add most of the value
New Logic Principle: All employees must add significant value
Explanation: The new logic turns the traditional equation of who adds value to the organization's products and services upside down It constantly pushes for individuals throughout the organization
to add more value This is in sharp contrast to the traditional hierarchical organization where
individuals at the lower levels carry out prescribed, routine, low-value-added tasks in a controlled manner while senior management adds major value through their work on organizational design, strategy, and the coordination of the work of different groups and functions
• Old Logic Principle: Hierarchical processes are the key to organizational effectiveness
New Logic Principle: Lateral processes are the key to organizational effectiveness
Explanation: New logic stresses that effective lateral relationships are the key to creating
organizations that can perform well on speed, cost, quality, and innovation It's not that the
traditional logic denies the importance of lateral relationships Quite to the contrary, it views them as
so important that they must be closely controlled and monitored through a hierarchical management and information-system structure Two problems though with this approach: First, individuals tend
to compete with each other to move up the hierarchy; thus, distracting energy and effort from
concentrating on what's important Second, often lack of accountability for important organizational goals as employees are simply engaged in individual activities
Trang 8• Old Logic Principle: Organizations should be designed around functions
New Logic Principle: Organizations should be designed around products and customers
Explanation: The new logic does not say that there is little need for strong expertise in particularly critical functions But it does stress that it is possible to have strong functional expertise and not have a particularly effective organization, because traditional, functionally structured organizations have trouble developing the teamwork and coordination that lead to successful products and services The new logic argues that you have to organize around units that are focused on products and
customers if you want employees with different specialties to work well together This ties directly
to the idea of control coming from customers and the market, the importance of lateral processes, and the need for individuals at all levels to add significant value In order for these aspects of the new logic to work, all employees must be part of units in which everyone can see how their behavior affects organizational performance; they must have a line of sight to the business and its success
• Old Logic Principle: Effective managers are the key to organizational effectiveness
New Logic Principle: Effective leadership is the key to organizational effectiveness
Explanation: At the core of the hierarchical approach is the belief that effective management means defining, evaluating, structuring, and coordinating the work of others At higher levels, management involves setting strategy, making critical business decisions, and defining accountabilities and
responsibilities of others The old logic places little emphasis on leadership, because bureaucratic management systems are designed to operate as substitutes for leadership that tell employees what to
do and provide the motivation to do it Leaders are not needed to make an organization successful
In the new logic, effective leaders substitute for bureaucratic controls and structures They provide a sense of mission, vision, direction, and rationale In the new logic, it is critically important to have leadership throughout the organization, not only at or near the top Flatter, more lateral
organizational structures and a decrease in the number of traditional means of control call for more, not less leadership from everyone
Chapter 2: Achieving High Performance Turning Principles into Practice
• Describes the Galbraith Star Model in terms of the critical elements for designing a High
Performance Organization Uses the components of the Star to structure subsequent chapters
Chapter 3: Business Strategy Creating the Winning Formula
• The Old Way: Formal strategic planning In the old logic, a large corporate staff of strategic
planners and futurists was responsible for developing and communicating corporate strategy to the rest of the organization These experts, who usually were not involved in producing the
organization's services or products, carefully studied them and their positions in the market They then created one-year and longer-term strategic plans that were regularly updated with new numbers and new planning targets and objectives Organizations found this approach costly, and most
attempts to predict future in terms of long-term trends were faulty
• In a high performance organization, effective leaders need to be able to create strategic goals that people want to head toward They add enormous value when they get individuals to take new types
of actions and move in new directions And they do this not by creating bureaucratic controls and procedures but by creating a view of what can be and should be that is attractive to individuals and that fits with their values and goals
• Senior managers need to take the lead in developing strategy, but they cannot and should not do it by themselves The members of the organization need to be involved
• Strategies need to set high aspirations for the organization so that members, individually and
collectively, will feel that they have challenging but reachable goals
• Strategies need to focus on how an organization will win in the future, what its outstanding products and services will be, and how those products and services will satisfy the customer It also needs to reflect the values that will guide how the organization accomplishes its goals and mission
Trang 9• Strategies must provide employees at all levels of the organization with a sense of what the company
is trying to do and where it is trying to go
• Strategies need to present a way to the future and provide emotional and intellectual energy for the journey
• It is up to the leaders in the organization to identify the kinds of capabilities that are needed,
communicate them through mission and value statements, and develop commitment to them
throughout the organization
Chapter 4: Corporate Architecture Structuring for High Performance
• Basic design in old logic organizations hierarchical arrangement of boxes connected with vertical lines; people grouped together by function; CEO is everyone's ultimate customer; Supervisors' main role is to control and to direct the behavior of individuals below him or her and to please managers at higher levels Staff support and service groups (e.g., finance, marketing) play key role because they're asked to review proposals and reco's from individuals throughout the organization They therefore tend to acquire veto power over what business managers can do Corporate staff can be quite large Multi-level wiring diagram
• The overall structure of an organization that fits the new logic has few levels of management relative
to its size It is organized around the customer It puts as many individuals as possible in direct contact with the customer It groups individuals to operate laterally by making individuals or teams responsible for an entire product or customer service encounter; thus, groups are no longer formed primarily according to functional areas
• Staff functions have much more of a service or an advisory nature than a decision-making nature Indeed, these functions may be outsourced, since the services they offer can be purchased on the open market and used as needed
• Taken together, a flat structure and an emphasis on lateral processes can produce organizations that are simultaneously small and large People can feel part of and responsible for a small business unit, but they can count on the advantages of a large corporation when it comes to resources and support services
• Completing the architectural metaphor, the new logic approach suggests a series of low-rise buildings that have considerable open space and flexible, movable partitions The buildings should be grouped together in a campus-like environment or spread around the world and connected by information technology Individuals should be located in buildings according to the customers they serve or the products they create At the center should be a building smaller than the others but similar in layout to house senior management, leaders of corporate staff groups, and representative of key core competencies and organizational capabilities
Chapter 5: Organization Design Matching the Organization to the Business
• The challenges in structuring an organization according to the new logic are clear: Corporations need to be like small businesses in how they involve individuals in the success of the business, and they need to be large when there is an advantage to being large In most cases, this can be done by using a business unit, network, front-back, or project approach to structure, because they all make business units their primary grouping Small business units are critical to providing individuals with
a line of sight from their activities to the market and customer
• The front-back organization: serving internal and external markets In front-back structure, one part
of the organization (the back) is responsible for developing and delivering the products or services of the organization The other half (the front end) is responsible for delivering the products or services
to particular customer groups The front end is usually organized around customers with common interests who are likely to buy related sets of products or services It may also be organized around a particular geographical area
• The network organization: partnerships and alliances In network organizations, separate companies come together to produce and sell particular services or products (Calvin Klein, for example, is a network coordinator that does not manufacture but controls the design and marketing of its products.)
• The project organization: coming together for the short term Knowledgeable individuals brought together for a relatively short time often days or weeks, not years to work on the development and delivery of products or services
Trang 10Chapter 6: Work Design Moving Beyond the Limits of Jobs to Work and Involvement
• In the new logic approach, jobs are obsolete, at least with respect to its traditional meaning of a fixed
set of tasks that are assigned to individuals and recorded through a job description First, the
environment constantly forces organizations to change what they do, and thus individuals must change Second, the new logic argues for individuals to expand their activities constantly, to work outside of what might be encompassed in a traditional job description, and to do more of their work
in teams
• The beginnings of the new logic individual job enrichment If work is to be truly enriched, there must be three requirements: work must be meaningful, its design must allow individuals to control how it is done, and employees need to have feedback on how well they are performing Meeting these requirements usually means an organization has to expand the work of individuals both
horizontally, to include more tasks, and vertically, so an individual does things that supervisors customarily have done
• The nature of supervision is a key factor that needs to change in order for job enrichment to be successful Research evidence shows that lack of decision-making power eliminates the possibility
of intrinsic motivation and the kind of involvement that is critical to the new logic For employees to feel good about performing well and to be involved in their jobs, they need to be in control In many cases, giving individuals control means that supervisors give up substantial amounts of moment-to-moment control over how the work is done
• Five particularly important types of teams: problem-solving teams, work teams, project teams, overlay teams, and management teams They differ in purpose, duration, and membership, and each type of team is suited to a particular set of organizational circumstances and goals (Lawler cites P&G as one of the "leading practitioners of the work team approach", referencing our HPWS in plants He also mentions P&G's Wal-Mart team an example of an overlay team, coordinating
activities with respect to a single large customer.)
Chapter 7: Teams Keys to Making Them Successful
• Goes on to describe effective and ineffective uses of teams Not much application for our specific work
Chapter 8: Human Resources Managing People in New Logic Corporations
• The old logic of jobs meets the new world of competencies In the old logic, jobs are the tools that organizations use to assure themselves that their employees know what to do, know how to do it, and are motivated to do it The value an individual adds to the organization depends on how he or she fits the organization's jobs The employee selection tests are used to identify people who fit existing jobs; training programs are used to develop employees' skills for specific jobs
• The new logic questions the usefulness of focusing on jobs and job-related approaches to human resource management systems It argues that it is time to move toward a focus on people and their skills and competencies, just as it is important to focus on core competencies and organizational capabilities
• Selection: Organizations must choose individuals for how they fit the organization, not for jobs They must offer applicants realistic work previews, obtain input from employees, and create an extensive process that focuses on leadership and management style fit
• Training: There must be a strong organizational commitment to training employees in business skills, leadership skills, and team skills This involves continued skill assessment for everyone
• Careers: Organizations must provide information and training, but individuals must take
responsibility for their own careers in an environment where there will be fewer job changes and more lateral moves
• Stability of employment: There are no employment guarantees, only stability that is based on skills and performance
Chapter 9: Reward Systems Paying for Teamwork, Competencies, and Performance