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Part I Performance Improvement: Getting It Started 1 Performance Improvement Efforts: They Are Everywhere ..... 3 An Overview' of Todac 's RCealities . .... . .................. Peirformarn,ce Defi.nitiions .. _,, . .......... . ... . . . .. Powcrful Need fo Performance mprovement ............... ..... ..... .. LimitCed Success in Performance Improvenent ......... Organization: A Fortune '00 Comllmunications Company with W o d ie Re ch ... .......... Sp(ecific Rciasons Why Lciteadrs Start Performance Improvement........ 10 Orgalnization: Small1 Consumer Seriices Company 13 A Proces App roa ch:l The First Look ......... ......... .............. .. 14 S u :·! ; ry ....... .. . ... . .......... ... ............ .. _ ...... .. ........ ........ . ........ Suggecstd Action Steps for Organizational or Team Leaders _......... ....... 16 E n d N o t s ..... . .......... .............. ....... .......... .. ...... ... 1 2 Performance Gaps and Deficiencies: An Overview for Facin g R eality . .. . . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . ..... . . . . . . . . .... .. . . . 1 7 Or a fn izaiti)on: Chlitropractic P'ti ncshl ip........ . ................... .18 L,a lership D)efinitions of Their Organization's Pertorman.ce: T h e id e a l C a se ... .... ... . ................. . .......... ............ ..... .. .. ..... 19 -) 0A i z '. I 7I'le r: Wh\ Ii - ...i\....ersr ...... . ............ 20 P'eif<)ormlalnc' at the O()p iriio l Level ............ .... .............. . .... 21 Organiztioin: Ma, Co. Ic.,t One of e o Countfrs iLrgest Retailers (recenitly p iiurchase by Federaited) .......,........... . ............ 2 Goals, Snd.irds. Key Performaince Indicators, aid Models of Effectlive Perfor iantncc: Measures of Performance ........ 24 Iden i ing sAr eas of Performance Improven ment, ... .............................. 25 S (11 I I I ....... ...... ... ................ ........... .. .. .. ...... ..... .... .... ... 2 Sug,gested Action Steps for Organizational or Team Lea m ers, ...................2 E n d N o te s ..... . . . . . . ...... . . .. ..... ... ?7' 3 Deciding on Performance Improvement: Useful Co cepts and T.ools .... .. .. .. . ... , ... .. .... . .. . . .., ... . ..... . . 29 l I . . . .. ... ... .......... .... ............ Orgoanization: Mathcny H-cating and Cooling Service, In ,...... 2 A Pi:tess for Deciding About and Managing Perfornimancelmprovement: .T . .... . ..... . - - -3 0 The Gen turaf Mode& of a ed Cha ge ........... ... ...... ....... ..... 2 O w c O 1cm- - .. . . .. . ... .. .... -32 T h e F (o wr Slagy s . .... ..... . ... ....... ... .. . . . .. .. .. ... . ... ........ ' 33 Stage 1: E tering- and C(ontracting, .. ....-.-........... .. ........ 33 S ta g c I : ; ia i s .... . .. .. . . ..... .......... ..... . .. . .3 4 O f" I I( )arganiati:o-nal Unit: A Large Inforiati(n Tech no)og Stage I[I: Planning and Int nention . ...... . .. .......... . Stagc I\ : Evaluatiot ; ...;n .... ... . ....... ..... . . ...... .......... i 1 A Model of ffrectihve PerfolImnce: The )nia Suncc s Adcin Selps. ........ . . . ...., ....... ... .... ... ... . .. . ..... . ..... . 47 ()rgyninzition: W h rt I ool 1,1n1(, I1 MaChIneI C , ii . . iEnd N ot es . . ... ...... ... . . .... .... ,- 4 Improving Performance for Neŭ Organizations .................... 49 h T h is h a? . ....... ...... ............... . ........... ...... ........ 4 9 Scen rio 1: 111C O\W Sti rt-T 1 ] , it - . - . . ... - .. . ... -p ) n O)r-amiZt im011: A fleahlicAre Srim \id Products Firm . .. 51 Sc: enario 2: Mcrgers and t Acq ti.n . . ... . ., S C nrio 3: Significant Change in the Leadersiip of an Existing OC)r1g niztiion Due t the AddKiton or Loss o[ Signicant Lcaders .L.. ŭ-i Organ iz:ion: Landshire Sand ichc I ' inc .......... ...... Scenario 4: A New Departient or L nit ',Vithia rei Oa1i , ,z on SWhen Tat 'nit Will Be P entI'II V i nr i 1tporal rojei A ct l a r t e. . . ............ . ....... .. . .... ... . ........... . ... . SLIC' g -ested Ac tion Steps . . 5 Performance Improvement and Goal Setting: Making the Strategic Vision Happen ............ .......... ...... ... .. 11111iLIC fl ..1 .. 1 7 ( l iiratc istics o Et .. 1 . . ... . . . . . ...... ........ .. . .. S wto u o e s t 1(\ ... S . .... . . . ...,,, ....,... ...... .... ... sc (A ti"Id t, .O'n1p a ll, . .,...............,..,......... .......... BnunwtAs from rganiza (tado T:rd:i Goaail setting .... .........((l............ 1D6 D j niz ho: "Ib ne's B wotherv c . .. _ ... . ...... ........ ............. ...... 6 1 "s ei. . Ca 1e: Lar K a s in Big Organizations..,.......... .......... S. Organiao: " The Prn N isions Pet Specia- (ltly E(tICS 1Sale Feam or Rals on Pturna, Co. (now a) part of Nestle). .6 aa i- > t Goals Dow! n riSo the Idividual.,,.,... Measing Perma : Goals and Key Performancc ndicator ............65 k B-rief Case S1 Iuov: M otg er Model of Effective Performan :ce. ...( ...... _,, (Ayganizoion: An Fngincering Fabricainon and Process Consulting Organization: S ottsdale Securiies, nc. ........................ 8 'F i oln ev o f Feed im c back ....... ........... . .. . ...... . . ... ............... ..... , ........ 69 Organization: A Privately Owned Real Estate Company MaIrlagt : h l i y h )e O wner, ....... .. o ld iNot , . ..., . . .. . . ". , ) . . .: ,. . ........ .. . . .. . ... .... . . .... . .. .. . . . 2 Part II Performance Improvement: Taking Action 6 Strategic Plan for the Organization: Where It XA Starts ........ 7 Connecting Stratgy to Prior Discusshons 7.....-.... Rkc:mmin ded i Process for Creating Organizational or Team Strater .... 7 .Co)rponlet 1 : The St"rategic Timeframc and idenrific:ati( of the D!riving Frce ..... ..................-.. 7 Organization: -ore s Brothers ........ .. ............. 8 :ompo(nnt 2: The Straiegic Concefpt Statement. ........ ...... _..84 Conponen:t 3 Evauation of the Current Stuti ....... )1 m p nent 4: Strategic Obje ctives. ..... .................. ...... 87 "g Goals Revisited and Extended .... .,g..atio : StV tsaie Secur ties, Inc. (now SoAide Inc.) ..... 89 Organiza :/io: e I ium-Size Law Firm (I Rhers, Pterrman, B( 1mkamp & Meiv , P ) .... . ...... ..................... . 90 `rganixation: )Devtloipnent D)partincnt of an Avecrage Sized. M, ................... 9 2 Fn .iol Po tic(- s . . . . . . ............. _2 . 7 Building a Learning Organization: m portaece and M e hods .......Oi.. ... . ... ...... .... ............. ..... ....... Review a nd Linkage .. , ..... ............. , .'>. 5.. ..... . , , ..,. ,.. The earniyg )Orpa izatuionl: A Jr:-ing Poi for PI r'i ancu '11em1i o0 ient ... .. . .. ....... ............ Defining a Lecarning Organization ....... .9...8..., ..... - ... ......-.. -, 98 OrgD anization: Mid-Sized Credit Union ...... .. .......... 100 The Model for Gro-wthi: Lenringi and Skill DeveloCmenl ..........1.. 100 Buildimz Lea1rnina d e In c . . .......... . .... . .... .... .. .. ................ ...... ... ...... ........... 2 7 0 Lan d sh ire In c. . . . .. ...... . ........... .. .. ........ ......... 27 A lliance C redit U n io n ..................... ...... ... ....... . ... . . ..... .... 271 Leatership's Biggest Problen em .. . .................... ........... ..... ..... 273