Common Elements in System 4 Organizations
- Action rather than further analysis.
- Decisions involving subordinates, not superiors.
- Individual accountability, not rigid policies.
- Recognition of team and individual, not blanket expressions of thanks.
High-Performing Systems (HPS)
- HPS calls for removal of excessive layers of organization.
- Creates climate of participation and communication across functional barriers.
Eight Criteria Used to Examine HPS (part 1 of 2)
Perform excellently against external standard.
Perform excellently against potential.
Perform excellently to some earlier point.
Perform with significantly fewer resources than assumed are needed.
Eight Criteria Used to Examine HPS (part 2 of 2)
Doing substantially better than other systems.
Source of ideas for others.
Fulfills high level for culture within which it exists.
Only system that is able to do what it does.
Characteristics of HPS (part 1 of 2)
- An HPS knows why it exists.
- Commitment to purposes always high.
- Teamwork focused on task.
- Leadership is strong and clear.
Characteristics of HPS (part 2 of 2)
- An HPS is source of new methods.
- Strong consciousness that “we are different.”
- Other subsystems often see HPS as problem because HPS produces its own standards.
- HPS is cohesive unit.
Grid OD Program
- Systematic approach to achieve corporate excellence by changing basic culture of system.
- Starts with focus on managerial styles.
- Moves through phases involving the work team and culture of organization.
Six Grid Phases (part 1 of 3)
Phase 1: Grid seminars.
- Someone in management position attends seminar.
Phase 2: Teamwork development.
- Begins with top manager and continues through entire organization.
Six Grid Phases (part 2 of 3)
Phase 3: Intergroup development.
- Sessions attended by key members of 2 segments where barriers exist.
Phase 4: Development of ideal strategic model.
- Provides skills to move to systematic development.
Six Grid Phases (part 3 of 3)
Phase 5: Implement ideal strategic model.
- Organization divided into planning teams and model is implemented.
Phase 6: Systematic critique.
- Examination of progress toward change goals.
OD Application
The Learning Organization at Lafarge
- Lafarge world’s biggest cement producer.
- Culture traced to its origins in 1833.
- Participative management philosophy includes:
- Key for managers to develop their people.
- Employees share and seek experiences of others.
- Dealing with conflict integral to teamwork.
- Teamwork creates environment of trust and confidence.
- Important element is training.
- Managers required to monitor development of employees.
- Lafarge practices intensive communication so that its worldwide businesses understand operations.
OD Application
Cisco and High-Performing Teams
- Was top-down and highly competitive.
- Cisco initiated massive change.
- Revolutionary change was company’s only chance.
- Cisco examined every part including operations, priorities, and culture.
- Before changes Cisco was described as wild west cowboy culture.
- Executives encouraged to compete with one another.
- Ideas were pursued with little discipline or accountability.
- Market changed.
- Customer expected integrated company.
- Engineering, manufacturing, professional services, and sales must work together.
- Changes permeated entire company.
- New structure is network of councils and boards.
- Council – team who has decision-making authority on >$10 billion opportunities.
- Boards – teams who make decisions on $1 billion opportunities.
- Working groups – deal with specific issues for limited time.
Key Words and Concepts
- Grid OD.
- Defines problem areas for OD.
- Goes through phases designed to pursue systematic change.
- Grid phases.
- Six phases that a typical Grid OD program goes through.
- High-performing system (HPS).
- Removal of excessive layers of structure within organization.
- Encourages participation across barriers.
- Ideal strategic model.
- Phase 4 of Grid OD program. Model developed to achieve excellence.
- Learning organization.
- Continuing capacity to adapt and change.
- Reengineering.
- Radical redesigning processes to achieve drastic improvements in performance.
- Survey research and feedback.
- Collect data and give feedback to allow organizations to diagnose problems.
- System 4 management.
- Continuum from system 1 to system 4.
- System 4 is ideal that organizations attempt to achieve.
- System-level organization.
- Structural design framework for viewing organization.
Preparations for Next Chapter
- Read Chapter 15.
- Prepare for OD Skills Simulation 15.1.
- Prior to class, form teams of six and select roles.
- Complete Step 1.
- Read and analyze Case: The Space Electronics Corporation.
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