A Guide to Continuous Improvement Transformation Concepts, Processes, Implementa

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Management for Professionals
2013
A Guide to Continuous Improvement TransformationConcepts, Processes, ImplementationAuthors:

• Aristide van Aartsengel,
• Selahattin Kurtoglu
• …show all 2hide
  

ISBN: 978-3-642-35903-3 (Print) 978-3-642-35904-0  (Online)



Concepts, Processes, Implementation

Series: Management for Professionals

van Aartsengel, Aristide, Kurtoglu, Selahattin

2013, XIII, 204 p. 28 illus.

ISBN 978-3-642-35903-3

  Usually dispatched within 3 to 5 business days.

• About this book
  

•                                         ​Presents a comprehensive description of "Continuous Improvement" transformation and its key characteristics
•                                         Provides guidance on the implementation of a "Continuous Improvement" initiative
•                                         Delivers tools to quickly assess where an enterprise or business stands in terms of strategic management and "continuous Improvement"
  

This book enables enterprise business leaders - from CEOs to supervisors - to understand what "Continuous Improvement" is, why it is probably the best answer to improved business performance in years, and how to put it to work in the unique environment of a specific organization. The book examines what is at the core of "Continuous Improvement" and delves deeper into the elements and constituents necessary to take an organization to the next level to ensure its continued, long-term existence. It provides guidance to enterprise management and to professionals engaged in the implementation of a "Continuous Improvement" initiative and enables them to structure and manage its implementation successfully. It also provides tools to quickly assess where an enterprise business stands in terms of strategic management and "Continuous Improvement".​

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 The Issue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 The Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.3 So You Want to Start a “Continuous Improvement” Initiative . . . 3
1.4 The Purpose of This Book and Our Next Book . . . . . . . . . . . . . . 4
1.4.1 What Makes This Book Different . . . . . . . . . . . . . . . . . . 5
2 Defining ‘Continuous Improvement’ . . . . . . . . . . . . . . . . . . . . . . . . 7
2.1 Setting the Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.2 What Is “Continuous Improvement”? . . . . . . . . . . . . . . . . . . . . . 11
2.2.1 System Thinking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.2.2 Characteristics of Enterprise Business Maturity Stages . . . 17
2.3 How to Realize a State of “Continuous Improvement”? . . . . . . . . 22
2.4 Where Does Your Business Fit? . . . . . . . . . . . . . . . . . . . . . . . . . 27
3 Understanding Leadership Dimension . . . . . . . . . . . . . . . . . . . . . . . 31
3.1 What Is Leadership? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3.2 Leadership Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
3.3 Leadership Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
3.4 Importance of Leadership for the Transformation . . . . . . . . . . . . 36
4 Culture and Values Dimension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
4.1 Enterprise Business Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
4.1.1 Identifying an Enterprise Business Values . . . . . . . . . . . . 41
4.2 Understanding the Resources-Processes-Values Framework . . . . . 42
4.2.1 Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
4.2.2 Processes and Values . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
4.3 Defining an Enterprise Business Culture . . . . . . . . . . . . . . . . . . . 44
4.3.1 Features of Enterprise Business Culture . . . . . . . . . . . . . . 46
5 Strategic Planning and Management . . . . . . . . . . . . . . . . . . . . . . . . 51
5.1 Enterprise Business Intended Strategy . . . . . . . . . . . . . . . . . . . . . 51
5.2 Strategic Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
5.3 Strategic Planning Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
5.3.1 Financial and Shareholders Intended Strategies . . . . . . . . 57
5.3.2 Design Business Intended Strategy . . . . . . . . . . . . . . . . . 57
vii
5.4 Strategic Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
5.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
6 Performance Measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
6.1 Performance Measure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
6.1.1 Major Functions of Performance Measures . . . . . . . . . . . . 66
6.2 Realizing Performance Measurement . . . . . . . . . . . . . . . . . . . . . 69
6.2.1 Create a Positive Context for “Performance Measures” . . . 69
6.2.2 Focus: Select the Right “Performance Measures” . . . . . . . 72
6.2.3 Integration: Align “Performance Measures” . . . . . . . . . . . 73
6.2.4 Interactivity: Develop Dialog on “Performance
Measures” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
6.3 Assessing Performance Measurement Maturation . . . . . . . . . . . . 75
7 Performance Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
7.1 Purpose of Performance Management . . . . . . . . . . . . . . . . . . . . . 77
7.2 The Balanced Scorecard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
8 Alignment and Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
8.1 What Is Alignment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
8.2 How to Realize Alignment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
8.3 Enterprise Business Alignment Process . . . . . . . . . . . . . . . . . . . . 85
8.3.1 Define Overall Alignment Plan . . . . . . . . . . . . . . . . . . . . 87
8.3.2 Review Background Information . . . . . . . . . . . . . . . . . . . 87
8.3.3 Determine Key Differentiator Performance Measures . . . . 88
8.3.4 Determine Operational Performance Concepts . . . . . . . . . 93
8.3.5 Select Projects and Operations . . . . . . . . . . . . . . . . . . . . . 96
8.3.6 Assess Alignment and Implementation . . . . . . . . . . . . . . . 98
8.3.7 Formulate, Approve and Communicate Alignment
Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
8.3.8 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
8.4 Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
8.4.1 Alignment Content and Context . . . . . . . . . . . . . . . . . . . . 102
8.4.2 Assessing Commitment Capabilities . . . . . . . . . . . . . . . . 104
8.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
9 Team Development and Management . . . . . . . . . . . . . . . . . . . . . . . 109
9.1 Defining a Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
9.2 Team Development: The Challenge of Building Teams . . . . . . . . 112
9.2.1 Forming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
9.2.2 Storming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
9.2.3 Norming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
9.2.4 Performing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
9.2.5 Adjourning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
9.3 Realizing Tuckman’s Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
9.3.1 Create an Optimal Environment . . . . . . . . . . . . . . . . . . . 128
9.3.2 Develop Collaborative Problem Solving Capabilities . . . . 130
viii Contents
9.3.3 Encourage Team Members to Assume Leadership Role . . . 138
9.3.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
9.4 Team Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
9.4.1 Forming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
9.4.2 Storming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
9.4.3 Norming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
9.4.4 Performing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
9.4.5 Adjourning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
9.4.6 Resolving Conflict Rationally and Effectively . . . . . . . . . 142
9.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
10 Process Improvement and Management . . . . . . . . . . . . . . . . . . . . . 151
10.1 Characterizing and Defining a Process . . . . . . . . . . . . . . . . . . . 151
10.2 Importance of Business Processes . . . . . . . . . . . . . . . . . . . . . . 153
10.3 Realizing “Process Improvement and Management”
Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
10.3.1 Context of “Process Improvement and Management” . . . 158
10.3.2 Focus of Specific Technical Content . . . . . . . . . . . . . . 163
10.3.3 Integration Management of Specific Technical
Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
10.3.4 Interactivity of “Process Improvement
and Management” . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
10.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
11 Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
11.1 What Is Value Creation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
11.2 How Value Is Created and Destroyed . . . . . . . . . . . . . . . . . . . 178
11.3 Value Creation Through Sustaining and Disruptive Innovation . . . 182
11.3.1 Creating Capabilities to Cope with Disruptive
Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
11.3.2 Creating New Capabilities Internally . . . . . . . . . . . . . 184
11.3.3 Creating Capabilities Through a Spinout
Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
11.4 Value Creation Through Diversification . . . . . . . . . . . . . . . . . 186
12 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
12.1 Improving and Managing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
12.2 Final Admonition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

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